Starwood Property Trust Inc. · NYSE:STWD
Starwood Property Trust — Q1 2025 Earnings Presentation
45 slides from Starwood Property Trust's earnings presentation, May 9, 2025
Slide 1: Q1 2025 Supplemental Reporting Information
SUPPLEMENTAL Q1 REPORTING 2025 INFORMATION
Slide 2: Table of Contents
Table of Contents Press Release Page 1 Highlights Page 7 Commercial and Residential Lending Segment Page 10 Infrastructure Lending Segment Page 18 Property Segment Page 19 Investing and Servicing Segment Page 22 Capitalization Page 24 Appendix Page 30 Cover photo: $190M first mortgage participation
Slide 3: Press Release
PRESS RELEASE
Slide 4: Starwood Property Trust Reports Results for Quarter Ended March 31, 2025
For Immediate Release Starwood Property Trust Reports Results for Quarter Ended March 31, 2025 – Quarterly GAAP Earnings of $0.33 and Distributable Earnings (DE) of $0.45 per Diluted Share – – Invested $2.3 Billion, Including $1.4 Billion in Commercial Lending and Record $0.7 Billion in Infrastructu
Slide 5: Webcast and Conference Call Information
Webcast and Conference Call Information The Company will host a live webcast and conference call on Friday, May 9, 2025, at 10:00 a.m. Eastern Time. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any nec
Slide 6: Contact information
Additional information can be found on the Company’s website at www.starwoodpropertytrust.com. Contact: Zachary Tanenbaum Starwood Property Trust Phone: 203-422-7788 Email: ztanenbaum@starwood.com 3
Slide 7: Condensed Consolidated Statement of Operations by Segment
Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended March 31, 2025 (Amounts in thousands) Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment
Slide 8: Definition of Distributable Earnings and Reconciliation
Definition of Distributable Earnings Distributable Earnings, a non-GAAP financial measure, is used to compute the Company’s incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company’s purposes, Distributable Earnings is defined as GAAP
Slide 9: Condensed Consolidated Balance Sheet by Segment
Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of March 31, 2025 (Amounts in thousands) Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs
Slide 10: Highlights
HIGHLIGHTS
Slide 11: STWD Highlights
STWD Highlights Leading diverse global multi-cylinder platform, built to thrive in all market environments $26.3B of total assets with an adjusted debt- Strong Balance Sheet to-equity ratio of 2.25x and undepreciated book value per share of $19.76 Consistent Dividend Paid quarterly dividend of $0.48
Slide 12: Q1 2025 Highlights
Q1 2025 Highlights • GAAP book value per share of $18.87 and undepreciated book value per share of $19.76 ◦ GAAP book value reflects $1.99 per share cumulative reduction for CECL reserves and property impairments • GAAP earnings of $0.33 and Distributable Earnings ("DE") of $0.45 per diluted share •
Slide 13: Total Assets $26.3B
Total Assets Ø U.S. office represents only 9% of our diversified $26.3B asset base Int'l O Commercial ffice 2 U.S. Office 9% Multifamily 19% Loans 55% % In ta ngi bl Ot es he 1% r 3% Ca sh l 6% &A /R Hote 3% REIS CM $26.3B BS 4% Mixed Use 6% Infrastructure Ind Lending 10% ust ria l 6% Re 2% Re side
Slide 14: Commercial and Residential Lending Segment
COMMERCIAL AND RESIDENTIAL LENDING SEGMENT
Slide 15: Commercial Lending Portfolio
Commercial Lending Portfolio Q1 Activity Loan Risk Rating • $1.4B originations ($886M funded) • $250M follow on fundings • $363M repayments Not • $45M foreclosure on a previously 5-rated loan 5 Rated 1 • $38M nonaccrual loan repaid for $1M DE gain (Investment (6 loans) Securities) (1 loan) 4 (10 loa
Slide 16: Commercial Lending Characteristics and Top Loans
Top 10 Loans by Largest Property Types Multifamily Office Hotel International 15% Characteristics 10% 27% U.S. Property 6% $5.0B $0.5B 26% $1.6B 14% 19% 64% 13% 25% $2.5B 100% 81% Southeast Southwest West Leisure Extended Stay Mid-Atlantic Northeast International Class A Class B Business / Group $ m
Slide 17: Collateral Diversification
Collateral Diversification Our commercial loan portfolio has transformed over time, with multifamily becoming our largest property type Multifamily Office Hotel Mixed Use Industrial Residential Retail Other 100% 80% 60% 40% 20% —% 0 2 4 1 2 4 1 3 5 0 2 3 0 2 4 1 3 4 0 1 3 3'2 2'2 1'2 1'2 4'2 3'2 3'2
Slide 18: Commercial Portfolio Geographic Diversification
Commercial Portfolio Geographic Diversification 2% Manhattan U.S. Northeast 17 % Southeast 15 % Southwest 15 % West 13 % Mid-Atlantic 8% Midwest 2% Europe Australia Bahamas / Bermuda Europe: International UK 13 % Ireland 3% Germany 3% Other Europe 2% Australia 7% Bahamas/Bermuda 2% NOTE: Amounts are
Slide 19: Commercial Lending Metrics
Commercial Lending Metrics (2) Mezzanine Subordinated First Mortgages Lending CMBS (2) Preferred Equity Total CRE ($ millions) Loans Mortgages $13,911 $310 $239 $32 $57 $14,549 Carrying Value Carrying Value $13,070 $310 $128 $27 $18 $13,553 on Accrual Unlevered Return for Assets on 8.2% 8.6% 10.4% 1
Slide 20: Top Commercial Lending Commitments
Top 10 Commercial Lending Commitments(4) $ millions Origination Fully Extended Loan Loan Type Location Property Type UPB Date Maturity Date Commitment Senior Jun 2022 Jun 2029 Various, Australia Casino Hotel* $ 860.1 $ 860.1 Senior Feb 2021 Feb 2028 Various, UK Mixed Use 662.7 662.7 Senior/Mezz Jan
Slide 21: Foreclosed Assets
Foreclosed Assets Ø $514M net carrying value of commercial assets previously foreclosed Location Property Type Carrying Value ($ millions) (per sq ft) Los Angeles, California Mixed Use $ 150 $ 131 New York City, New York Residential (Luxury Co-Op) 113 2,033 Dallas, Texas Multifamily 87 181 Nashville
Slide 22: Residential Portfolio
Residential Portfolio $ millions Ø Recorded $7M net unrealized fair value decrease: – Loans: $43M increase – RMBS: $8M increase – Interest Rate Hedges: $58M decrease to FMV of $43M Ø Repayments of $55M on loans and $10M on RMBS Asset Carrying Values Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 202
Slide 23: Infrastructure Lending Segment
INFRASTRUCTURE LENDING SEGMENT 25
Slide 24: Portfolio Metrics and Activity
Portfolio Metrics and Activity Q1 Activity • Record $677M new commitments ($601M funded) • $436M repayments $2.8B Total Portfolio (5) Geographic Location Sector Power 55% Northeast Southwest 35% 22% Midwest Other - U.S. 1% 16% Upstream Mid-Atlantic 1% West 1% Midstream 6% 29% Int'l 3% Southeast 16%
Slide 25: Property Segment
PROPERTY SEGMENT 25
Slide 26: Investment Portfolio
Investment Portfolio $ millions Significant Activity During the Quarter: Ø Woodstar Fund portfolio increases to 99% occupancy Ø Unrealized fair value decreases of $16M ($13M, net of 20.6% non-controlling interests) in the Woodstar Fund investments Net Asset Q1'25 Net Net Operating Occupancy Investme
Slide 27: Woodstar Fund
Woodstar Fund (the "Fund") $ millions Ø The Fund, which was formed in Q4 2021, holds the 15,057 affordable housing units comprising the Woodstar I and Woodstar II portfolios and is accounted for under ASC 946, Financial Services – Investment Companies, with its investments reported on our consolidat
Slide 28: Portfolio Snapshot
Portfolio Snapshot $ millions, sq. ft. in thousands Medical Office Woodstar Fund D.C. Multifamily Conversion Gross Gross Region % Occupancy Sq. Ft. Region % Occupancy Units Region Sq. Ft. investment investment Northeast 30% $ 228 100% 430 North Florida 6% 92% 1,230 Mid Atlantic $ 116 375 Texas 20% 1
Slide 29: Investing and Servicing Segment
INVESTING AND SERVICING SEGMENT 21
Slide 30: Investment Portfolio
Investment Portfolio $ millions Significant Activity During the Quarter: Ø Securitized $268M of conduit loans in four transactions Ø Received principal collections of $62M and acquired CMBS for a purchase price of $12M Ø Active servicing portfolio increased from $9.2B to $9.6B Ø Obtained one new ser
Slide 31: CMBS and Special Servicing
CMBS and Special Servicing (8) Owned CMBS by Vintage LNR Special Servicer $ millions $ billions Named SS: 193 $107.0B 250 CMBS Trusts Loan Balance 200 150 Named SS Balance 150 100 100 50 50 '18 '22 '18 '21 '25 '17 '21 '24 '17 '20 '24 '16 '20 '23 '16 '19 '23 '19 '22 Q3 Q1 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q
Slide 32: Capitalization
CAPITALIZATION 27
Slide 33: Capitalization Overview
Capitalization Overview Credit Metrics Adjusted Debt-to-Equity Ratios Ba2 / BB / BB+ Current Corporate Issuer Rating $4.9B Total Unencumbered Assets 2.70x Off-Balance 1.69x 2.25x Sheet Fixed Charge Coverage Ratio On-Balance Sheet 1.77x* Unencumbered Assets to Unsecured Debt $26.2B Total Capitalizati
Slide 34: Capitalization Overview, continued
Capitalization Overview, continued $ billions Ø 94% of commercial lending debt and 84% of consolidated debt has no capital markets mark-to-market provisions Total Debt Outstanding Margin Call Provisions (including off-balance sheet) (including off-balance sheet) Secured Debt Spread and Credit $12.5
Slide 35: Book Value per Share Bridge
Book Value per Share Bridge $0.89 $19.76 $18.87 Q1'25 Q1'25 Q1'25 GAAP Accumulated Undepreciated Book Value Depreciation & Amortization Book Value 23 26
Slide 36: Financing Facilities
Financing Facilities $ millions $24.8B $9.5B 23 Max Facility Size Available Capacity Counterparties Debt Obligations Maximum Facility (11) Available Type (11) Drawn Size Capacity Asset Specific Financing: Large Loans, Commercial $ 12,754 $ 6,495 $ 6,259 Infrastructure Lending Segment 2,076 966 1,110
Slide 37: Financial Capacity
Financial Capacity Total Available Capital + Available On-BS Financing (12) $ $ 1,469 8,462 $ millions Total Potential Liquidity $ 9,931 2,400 2,100 $390 $(148) 1,800 $(225) 1,500 $1,280 $1,452 $1,469 1,200 900 600 300 $172 0 Cash & Approved and Current liquidity 90-day 90-day expected Working capit
Slide 38: Share Count
Share Count shares in thousands 2025 2024 Q1 Q4 Number of Shares, GAAP EPS: Basic — Average shares outstanding 335,059 334,517 Effect of dilutive securities — Convertible Notes — — Effect of dilutive securities — Other 397 453 Diluted — Average shares outstanding 335,456 334,970 Shares Outstanding 3
Slide 39: Appendix
APPENDIX 34
Slide 40: Company Information
Company Information Starwood Property Trust, an affiliate of global private investment firm Starwood Capital Group Global L.P., is the largest commercial mortgage real estate investment trust in the United States. Additional information may be found on the Company’s website, www.starwoodpropertytrus
Slide 41: Footnotes
Footnotes 1. Excludes $367M of the commercial portfolio which are classified as CMBS or preferred equity investments and are not risk rated. 2. Contiguous mezzanine loans of $1,112M are included in the first mortgage balance as of March 31, 2025. 3. Unlevered returns are calculated using applicable
Slide 42: Calculation Methodologies
Calculation Methodologies Distributable Earnings: Distributable Earnings is a non-GAAP measure. We calculate Distributable Earnings as GAAP net income (loss) excluding the following: (i) non-cash equity compensation expense; (ii) the incentive fee due under our management agreement; (iii) acquisitio
Slide 43: Ratings Criteria
Ratings Criteria Rating Characteristics 1 ▪ Sponsor capability and financial condition – Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience. ▪ Loan collateral and performance relative to underwriting – The collateral has surpasse
Slide 44: Special Note Regarding Forward-Looking Statements
Special Note Regarding 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
Slide 45: NYSE: STWD
NYSE: STWD
Starwood Property Trust — Q1 2025 Earnings Presentation on 6ix