Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Investor Presentation (November 2022)
23 slides from Starwood Property Trust's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
INVESTOR PRESENTATION November 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including without limitation, statements concerning the Company’s operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of th
Slide 3: Starwood Property Trust Today
Starwood Property Trust Today A leading diversified finance company with a core focus on the real estate and P infrastructure sectors and a market capitalization of $6.3B ; sector leading annualized total 1 returns of 10.7% per year since inception 1 Highly flexible investment platform backed by app
Slide 4: STWD Primary Investment Cylinders
STWD Primary Investment Cylinders 2009 2013 2014 2016 2018 Commercial CMBS Special CMBS Loan Real Estate Residential Infrastructure Lending Investing Servicing Origination Lending Lending Originate Invest in new Workout Originate fixed- Invest in high- Originate, Originate primarily issue and defaul
Slide 5: Diversified, Complementary and Scalable Platforms
Diversified, Complementary and Scalable Platforms 1 2 Portfolio Breakdown Distributable Earnings Breakdown 3 REIS Infrastructure Lending 6% Residential Lending 7% 8% Infrastructure Lending 9% Property 9% Property 11% 3 Commercial Lending REIS Commercial Lending 64% 21% 55% Residential Lending 10% Da
Slide 6: Starwood Capital Group
Starwood Capital Group A Leading Global Real Estate Investment Firm Starwood Capital Group Profile Affiliated Business • Founded in 1991 by Barry Sternlicht Real Estate Equity Performing Real Estate Debt Energy • Current assets under management of $125B • Acquired over $235B of assets over the past
Slide 7: Starwood Global Footprint
Starwood Global Footprint New York City Amsterdam Chicago Luxembourg Tokyo San Francisco Greenwich London Arlington Washington, D.C. Hong Kong Los Angeles Atlanta Miami Dallas ~4,500 professionals in 16 offices Sydney Data as of September 30, 2022 STARWOOD PROPERTY TRUST, INC 7
Slide 8: Commercial Lending Overview
Commercial Lending Leading Provider of First Mortgage and Mezzanine Loans Overview 1 2 STWD Competitive Advantages ($M) Portfolio Size vs. W.A. LTV US$ (B) • Reputation, scale and market Size W.A. LTV knowledge $18,000 66% • Information advantage from 65% $16,000 64% affiliation with Starwood Capita
Slide 9: Commercial Lending: Diversified Loan Portfolio with Strong Fundamentals
Commercial Lending Diversified Loan Portfolio with Strong Fundamentals 1 1 1 Carrying Value by Loan Type Carrying Value by Region Carrying Value by Property Type 4 CMBS Retail Other Preferred equity Southwest Industrial 4% 2% 8% 1% 16% Northeast 5% Subordinated 16% mortgages 1% Mid-Atlantic Resident
Slide 10: Commercial Lending Portfolio Transformation
Commercial Lending Portfolio Transformation • 66% of our portfolio represents post-COVID originations, with an evolving collateral mix that has more multifamily and industrial and less retail and office December 31, 2019 POST-COVID TRANSFORMATION September 30, 2022 Post-COVID Originations* 38% 23% 1
Slide 11: Investment Process Overview
Investment Process In-Depth Underwriting and Management of Real Estate Credit Risk Overview i ORIGINATION • Sources deals from borrowers, banks and brokerage community • Compensation linked to loan performance ii CREDIT / UNDERWRITING • Performs independent due diligence on market, property and spon
Slide 12: Residential Lending Segment Overview
Residential Lending Segment Overview Platform and Portfolio Overview Acquisition Programs • In 2016, Starwood Property Trust commenced its strategy of investing in non-agency residential Full Documentation Alternative Documentation mortgage loans to high quality borrowers at low LTVs Program targets
Slide 13: Infrastructure Lending Segment
Infrastructure Lending Platform and Portfolio Overview Segment Key Portfolio Metrics ▪ Full-service platform across loan origination, underwriting, capital markets and asset management No. of Loans 46 ▪ Domain expertise in the thermal and renewable power and downstream, midstream and upstream oil &
Slide 14: Property Segment Overview
Property Segment Overview Multifamily Portfolio High Quality Stabilized Assets with Attractive Current Return Profile • Focused on investing in high quality real estate with: ◦ Stable current cash-on-cash returns ◦ Potential for capital appreciation Worthington – West Palm Windchase – Orlando, FL (3
Slide 15: Property Segment Portfolio
Property Segment Portfolio ($M) Asset Q3'22 Net Weighted Net Carrying Net Occupancy Investment (1) Specific Operating Average Value Investment (2) Rate Financing Income Lease Term Wholly-owned: Medical Office Portfolio $ 765 $ 596 $ 169 $ 10.9 92% 5.8 years Master Lease Portfolio 344 193 151 6.6 100
Slide 16: Investing & Servicing Segment Overview
21% Investing & Servicing Segment Overview Special Servicer Market Share ($B) Leading CMBS Investor, Special Servicer and Conduit Originator • One of the largest CMBS special servicers in the U.S. SPECIAL • Named special servicer on 186 trusts with SERVICING OF a collateral balance of $107.4B CMBS L
Slide 17: Investing & Servicing Segment Advantages
Investing & Servicing Segment Advantages The Power of Experience Underwriting Process • The longest serving investor in subordinate • The segment has deployed over $15B of CMBS; persevered through every real estate capital since 2013 cycle since 1991 • In evaluating a new CMBS investment, STWD • Sen
Slide 18: Conservative Balance Sheet
Conservative Balance Sheet Utilize a Combination of Secured Asset-Level, Unsecured and Off-Balance Sheet Debt Debt-to-Equity Ratios Capitalization 3.8x ($B) Unsecured Debt $2.4 Off-Balance Equity Market 3 Sheet Woodstar Fund Debt Capitalization $1.0 $5.6 2.4x On-Balance Sheet 1 Adjusted On Balance S
Slide 19: Total Debt Capacity
Total Debt Capacity $24B of total capacity, not including capacity that would result from selling A-notes or issuing CLOs or securitizations $ millions Debt Obligations Maximum Facility (1) Available Type (1) Drawn Size Capacity Asset Specific Financing: Large Loans, Commercial $ 13,485 $ 8,243 $ 5,
Slide 20: Corporate Debt Maturity Schedule
Corporate Debt Maturity Schedule Pro Forma for $600M New Sustainability Term Loan B Issuance ($M) $1,400 $1,200 $1,183 $1,100 $1,000 $783 $600 Term Loan B freely New $800 redeemable at par Sustainability Term Loan B $600 $550 $500 $300 $400 $400 $400 $500 $200 $250 $0 2023 2024 2025 2026 2027 Conver
Slide 21: Interest Rate Sensitivity
Interest Rate Sensitivity Our Investment Portfolios are Positively Correlated to Rising Rates Annual Net Interest Income ($M) $80 Commercial Lending Portfolio is 99% Floating Infrastructure Lending Portfolio is 97% Floating $63 $60 $42 $40 $21 $20 $0 $(10) $(20) 1.50% Increase 1.00% Increase 0.50% I
Slide 22: Corporate Responsibility Overview
Corporate Responsibility Overview Our company strives to make a big difference by focusing on the main ways we can improve both people’s lives and our planet. Environmental Social Governance • Environmental risk assessment for new • Social impact investments in the U.S. • Award winning disclosure an
Slide 23: STWD: A Premier Multi-Cylinder Platform
STWD: A Premier Multi-Cylinder Platform Scaling Existing Businesses Developing New Building the Premier Businesses Internally Multi-Cylinder Finance Company Primarily Focused Exploring on the Real Estate and New Asset Classes Infrastructure Industries Geographic Expansion Future growth opportunities
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