Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Investor Presentation (May 2019)
21 slides from Starwood Property Trust's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
INVESTOR PRESENTATION MAY 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including, without limitation, statements concerning our operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private
Slide 3: Starwood Property Trust Today
Starwood Property Trust Today Aofleading diversified real estate finance company with a market capitalization approximately $6.4B 1 Highly flexible investment platform backed by 350 dedicated employees and leveraging Starwood Capital Group’s approximately 4,000 person organization Total capita
Slide 4: STWD Primary Investment Cylinders
STWD Primary Investment Cylinders 2009 2013 2014 2016 2018 Commercial CMBS Special CMBS Loan Owned Residential Infrastructure Lending Investing Servicing Origination Real Estate Lending Lending Originate primarily Invest in new issue Workout defaulted Originate fixed- Invest in high- Originate, Orig
Slide 5: Diversified, Complementary and Scalable Platforms
Diversified, Complementary and Scalable Platforms Portfolio Breakdown1 Earnings Breakdown2 Infrastructure Infrastructure Lending, 12% Lending, 8% Commercial Property, 20% Lending, 54% Property, 19% Commercial Lending, 45% SMC (REIS), 2% REO (REIS), 2% REO (REIS), 4% CMBS (REIS), Special Residential
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 in excess of $60B • Acquired over $100B of assets over
Slide 7: Starwood Global Footprint
Starwood Global Footprint New York City Amsterdam Chicago Luxembourg San Francisco Greenwich London Charlotte Washington, D.C. Hong Kong Atlanta Miami Los Angeles Nearly 4,000 professionals in 13 offices and over 7,000 additional employees affiliated with Starwood Property Trust office multiple port
Slide 8: Commercial Lending Overview
Commercial Lending Leading Provider of First Mortgage and Mezzanine Loans Overview ($M) STWD Competitive Advantages Portfolio Size1 vs. W.A. LTV2 $9,000 Portfolio Size ($M) W.A. LTV 70% • Reputation, scale and market knowledge $8,000 66% • Information advantage from $7,000 affiliation with Starwood
Slide 9: Commercial Lending Hypothetical Loan Origination and Structuring Process
66 Commercial Lending Hypothetical Loan Origination and Structuring Process 1. Originate Whole Loan 2. Either Retain First Mortgage or Split Into Sr/Jr Originate a 75% LTV first mortgage at a rate of L + 3.25% Senior tranche has a 56% LTV while the junior tranche remains at 75% LTV $100M $75M A $56M
Slide 10: Commercial Lending Diversified Loan Portfolio With Strong Fundamentals
Commercial Lending Diversified Loan Portfolio With Strong Fundamentals Carrying Value by Loan Type Carrying Value by Region1 Carrying Value by Property Type1 Preferred Other Industrial Other Subordinated CMBS equity 2% Land 1% 3% South West mortgages 7% 2% 2% 14% North East Mezzanine 1% 28% Multi-fa
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: Infrastructure Lending Segment
Infrastructure Lending Platform and Portfolio Overview Segment Key Portfolio Metrics • Full-service platform, including seasoned leadership team and 18 employees across loan No. of Loans 49 origination, underwriting, capital markets and asset management Total Commitments/Funded Balance $2.2/$1.8B •
Slide 13: Property Segment Overview
Property Segment Overview High Quality Stabilized Assets with 75 St Stephens Green Dublin Portfolio Attractive Current Return Profile • Focused on investing in high quality real estate with: • Stable current cash-on-cash returns • Potential for capital appreciation • Longer duration of cash flows Bl
Slide 14: Property Segment Portfolio
Property Segment Portfolio ($ M) Net Carrying Weighted Asset Specific Net Occupancy Investment (1) Average Value Financing Investment Rate Lease Term Wholly-Owned: Various, U.S. - Medical Office $ 760 $ 487 $ 273 93.3% 6.3 years Dublin, Ireland - Office 494 341 153 99.0% 9.3 years Dublin, Ireland -
Slide 15: Investing & Servicing Segment Overview
21% Investing & Servicing Segment Overview Leading CMBS Investor, Special Servicer Special Servicer Market Share ($B) and Conduit Originator $120 40.0% CMBS 1.0 UBP $100 CMBS 2.0/3.0 UBP 30.0% • One of the largest CMBS special servicers $80 in the U.S. Active SS Market Share $60 20.0% SPECIAL SERVIC
Slide 16: Investing & Servicing Segment Advantages
21% Investment & Servicing Segment Advantages The Power of Experience Underwriting Process • The longest serving investor in subordinate • Since 2013 the segment has deployed over CMBS; persevered through every real estate $10.5B of capital cycle since 1991 • In evaluating a new CMBS investment, STW
Slide 17: Interest Rate Exposure
Interest Rate Exposure Well Positioned for Both Higher and Lower Interest Rate Environments Variable Rate Assets & Liabilities1 Net Interest Income Per Share - Sensitivity to Changes in Libor1 ($M) $9,398 $0.20 $0.13 $2,122 $0.10 $0.08 $0.06 Variable Rate Net Equity Assets $0.00 ($7,276) $0.00 2.0%
Slide 18: Conservative Balance Sheet
Conservative Balance Sheet Utilize a Combination of Secured Asset-Level, Unsecured and Off Balance Sheet Debt Debt-To-Equity Ratios1 Capitalization 2.9x Unsecured Debt 2.1x $1.9 Equity Market Capitalization $6.3 Secured Debt $9.2 Excluding Off Balance Including Off Balance Sheet Leverage Sheet Lever
Slide 19: Total Debt Capacity
Total Debt Capacity Over $17.2 Billion of On-Balance Sheet Debt Capacity Across 43 Different Facilities Debt Obligations US$ (M) Maximum Available (13) (1) Type Facility Size Drawn Capacity Asset Specific Financing: Large Loans, Commercial $ 7,074 $ 4,143 $ 2,931 I nfrastructure Lending Segment 2,02
Slide 20: Corporate Debt Maturity Schedule
Corporate Debt Maturity Schedule $ millions $1,500M $1,500 Freely prepayable Dec ’21 $1,000 Dec ’21 11 months in between $500M $500 $250M Feb ’21 Mar ’25 Apr ’23 $0 2019 2020 2021 2022 2023 2024 2025 Convertible Notes Outstanding Senior Unsecured Q1’21 Senior Unsecured Q4’21 Term Loan A Senior Unsec
Slide 21: STWD: A Premier Multi-Cylinder Platform
STWD: A Premier Multi-Cylinder Platform Scaling Existing Businesses Developing Building the Premier New Businesses Multi-Cylinder Finance Internally Company Primarily Focused Exploring on the Real Estate and New Asset Classes Infrastructure Industries Geographic Expansion Future growth opportunities
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