Starwood Property Trust Inc.NYSE: STWD

Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2024

· Issued by Starwood Property Trust Inc. via PR Newswire
Watch Starwood Property Trust explain itStarwood Property Trust Inc. (STWD) Q2 2026 Earnings Call · Replay · Aug 6

– GAAP EPS of $0.15 for the Quarter and $1.10 for the Year and Distributable EPS for the Quarter of $0.48 and $2.02 for the Year –

– Invested $1.6 Billion in the Quarter, $5.1 Billion for the Year and $1.5 Billion After Year End –

– Executed $2.3 Billion of Corporate Debt in the Quarter, Extending Average Maturity to 3.5 Years –

–  Current Liquidity of $1.8 Billion –

– Paid Dividend of $0.48 per Share for the 62nd Straight Quarter –

MIAMI BEACH, Fla., Feb. 27, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2024.  The Company's fourth quarter 2024 GAAP net income was $51.6 million, inclusive of a $52.4 million credit loss provision, and Distributable Earnings (a non-GAAP financial measure) was $166.7 million. The Company's full year 2024 GAAP net income was $359.9 million, inclusive of a $197.4 million credit loss provision, and Distributable Earnings was $675.0 million.

"Having a low leverage multi-cylinder platform has allowed us to invest every quarter for 15 years despite volatile and disruptive market conditions, successfully deploying over $100 billion of capital. With capital markets continuing to thaw, we expect to significantly increase our pace of investment in 2025 and have already closed $1.5 billion so far this year," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

"With significant liquidity and proven access to capital at record low spreads, we are well positioned to grow across our investing cylinders. Our success is not reliant on any one of our many businesses. We have $1.5 billion of harvestable unrealized property gains and high return on equity divisions, including our special servicer (the largest named servicer in the U.S.) and our conduit (the largest non-bank contributor into CMBS in 2024)," added Jeffrey DiModica, President of Starwood Property Trust.

Supplemental Schedules

The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders.  Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com.

Webcast and Conference Call Information

The Company will host a live webcast and conference call on Thursday, February 27, 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 necessary audio software.  The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website.  The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in.

To Participate via Telephone Conference Call:

Dial in at least 15 minutes prior to start time.
Domestic:  1-877-407-9039
International:  1-201-689-8470

Conference Call Playback:

Domestic:  1-844-512-2921
International:  1-412-317-6671
Passcode:  13750198

The playback can be accessed through March 13, 2025.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of December 31, 2024, the Company has successfully deployed over $102 billion of capital since inception and manages a portfolio of over $25 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions.  Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC.

In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.

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

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the three months ended December 31, 2024

(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Revenues:

Interest income from loans

$            321,378

$           61,119

$              —

$           5,889

$              —

$      388,386

$                 —

$        388,386

Interest income from investment securities

26,638

115

—

22,978

—

49,731

(35,359)

14,372

Servicing fees

64

—

—

24,067

—

24,131

(6,481)

17,650

Rental income

6,506

—

16,347

4,860

—

27,713

—

27,713

Other revenues

2,349

2,152

198

1,006

563

6,268

—

6,268

Total revenues

356,935

63,386

16,545

58,800

563

496,229

(41,840)

454,389

Costs and expenses:

Management fees

187

—

—

—

41,020

41,207

—

41,207

Interest expense

182,958

35,891

9,647

9,918

72,283

310,697

(208)

310,489

General and administrative

11,160

5,355

727

28,092

4,103

49,437

—

49,437

Costs of rental operations

4,586

—

6,174

2,930

—

13,690

—

13,690

Depreciation and amortization

3,304

13

5,840

1,768

251

11,176

—

11,176

Credit loss provision, net

51,267

1,158

—

—

—

52,425

—

52,425

Other expense

14

341

—

234

—

589

—

589

Total costs and expenses

253,476

42,758

22,388

42,942

117,657

479,221

(208)

479,013

Other income (loss):

Change in net assets related to consolidated VIEs

—

—

—

—

—

—

31,870

31,870

Change in fair value of servicing rights

—

—

—

2,408

—

2,408

(184)

2,224

Change in fair value of investment securities, net

4,428

—

—

(14,303)

—

(9,875)

10,385

510

Change in fair value of mortgage loans, net

(99,184)

—

—

24,785

—

(74,399)

—

(74,399)

Income from affordable housing fund investments

—

—

91,837

—

—

91,837

—

91,837

Earnings (loss) from unconsolidated entities

1,306

2,108

—

427

—

3,841

(439)

3,402

Gain on sale of investments and other assets, net

346

—

—

86

—

432

—

432

Gain (loss) on derivative financial instruments, net

184,713

93

50

3,325

(49,231)

138,950

—

138,950

Foreign currency (loss) gain, net

(97,800)

(666)

102

—

—

(98,364)

—

(98,364)

Loss on extinguishment of debt

—

(846)

—

—

(293)

(1,139)

—

(1,139)

Other (loss) income, net

(2,676)

491

207

—

—

(1,978)

—

(1,978)

Total other income (loss)

(8,867)

1,180

92,196

16,728

(49,524)

51,713

41,632

93,345

Income (loss) before income taxes

94,592

21,808

86,353

32,586

(166,618)

68,721

—

68,721

Income tax benefit (provision)

9,814

(155)

—

(7,558)

—

2,101

—

2,101

Net income (loss)

104,406

21,653

86,353

25,028

(166,618)

70,822

—

70,822

Net (income) loss attributable to non-controlling interests

(4)

—

(23,191)

4,016

—

(19,179)

—

(19,179)

Net income (loss) attributable to Starwood Property Trust, Inc.

$            104,402

$           21,653

$        63,162

$          29,044

$    (166,618)

$        51,643

$                 —

$          51,643

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 net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings

For the three months ended December 31, 2024

(Amounts in thousands except per share data)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Total

Net income (loss) attributable to Starwood Property Trust, Inc.

$             104,402

$               21,653

$               63,162

$               29,044

$            (166,618)

$               51,643

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

—

4,660

—

—

4,660

Non-controlling interests attributable to unrealized gains/losses

—

—

15,579

(9,463)

—

6,116

Non-cash equity compensation expense

2,430

490

82

1,330

5,952

10,284

Management incentive fee

—

—

—

—

12,731

12,731

Depreciation and amortization

3,446

2

5,941

1,870

—

11,259

Interest income adjustment for securities

4,361

—

—

9,990

—

14,351

Consolidated income tax (benefit) provision associated with fair value adjustments

(9,814)

155

—

7,558

—

(2,101)

Other non-cash items

4

—

277

(117)

—

164

Reversal of GAAP unrealized and realized (gains) / losses on:

Loans

99,184

—

—

(24,785)

—

74,399

Credit loss provision, net

51,267

1,158

—

—

—

52,425

Securities

(4,428)

—

—

14,303

—

9,875

Woodstar Fund investments

—

—

(91,837)

—

—

(91,837)

Derivatives

(184,713)

(93)

(50)

(3,325)

49,231

(138,950)

Foreign currency

97,800

666

(102)

—

—

98,364

Earnings from unconsolidated entities

(1,306)

(2,108)

—

(427)

—

(3,841)

Sales of properties

—

—

—

(86)

—

(86)

Recognition of Distributable realized gains / (losses) on:

Loans

(286)

—

—

25,953

—

25,667

Securities

(254)

—

—

(11,633)

—

(11,887)

Woodstar Fund investments

—

—

16,100

—

—

16,100

Derivatives

43,141

65

(411)

8,335

(11,515)

39,615

Foreign currency

(13,846)

(101)

102

—

—

(13,845)

Earnings (loss) from unconsolidated entities

1,305

(111)

—

305

—

1,499

Sales of properties

—

—

—

86

—

86

Distributable Earnings (Loss)

$             192,693

$               21,776

$               13,503

$               48,938

$            (110,219)

$             166,691

Distributable Earnings (Loss) per Weighted Average Diluted Share

$                   0.55

$                   0.06

$                   0.04

$                   0.14

$                 (0.31)

$                   0.48

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations by Segment

For the year ended December 31, 2024

(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Revenues:

Interest income from loans

$         1,424,188

$         255,645

$             —

$           18,234

$             —

$   1,698,067

$                 —

$      1,698,067

Interest income from investment securities

116,808

506

—

93,641

—

210,955

(144,150)

66,805

Servicing fees

425

—

—

72,579

—

73,004

(17,805)

55,199

Rental income

18,325

—

69,210

20,463

—

107,998

—

107,998

Other revenues

6,804

4,842

772

3,842

2,514

18,774

—

18,774

Total revenues

1,566,550

260,993

69,982

208,759

2,514

2,108,798

(161,955)

1,946,843

Costs and expenses:

Management fees

756

—

—

—

144,421

145,177

—

$         145,177

Interest expense

845,082

151,120

44,972

36,870

271,483

1,349,527

(834)

1,348,693

General and administrative

60,163

19,980

4,428

99,499

15,166

199,236

—

199,236

Costs of rental operations

13,163

—

23,483

11,591

—

48,237

—

48,237

Depreciation and amortization

9,653

56

23,535

7,057

1,005

41,306

—

41,306

Credit loss provision, net

194,260

3,140

—

—

—

197,400

—

197,400

Other expense

785

516

35

687

—

2,023

—

2,023

Total costs and expenses

1,123,862

174,812

96,453

155,704

432,075

1,982,906

(834)

1,982,072

Other income (loss):

Change in net assets related to consolidated VIEs

—

—

—

—

—

—

75,706

75,706

Change in fair value of servicing rights

—

—

—

887

—

887

2,119

3,006

Change in fair value of investment securities, net

76

—

—

(83,748)

—

(83,672)

84,686

1,014

Change in fair value of mortgage loans, net

3,597

—

—

72,283

—

75,880

—

75,880

Income from affordable housing fund investments

—

—

102,141

—

—

102,141

—

102,141

Earnings (loss) from unconsolidated entities

11,599

1,414

—

1,473

—

14,486

(1,390)

13,096

Gain on sale of investments and other assets, net

305

—

92,003

8,402

—

100,710

—

100,710

Gain (loss) on derivative financial instruments, net

196,349

152

1,492

3,454

(43,513)

157,934

—

157,934

Foreign currency (loss) gain, net

(73,830)

(187)

89

—

—

(73,928)

—

(73,928)

Gain (loss) on extinguishment of debt

173

(1,466)

(2,254)

(100)

(293)

(3,940)

—

(3,940)

Other (loss) income, net

(10,013)

531

(949)

50

—

(10,381)

—

(10,381)

Total other income (loss)

128,256

444

192,522

2,701

(43,806)

280,117

161,121

441,238

Income (loss) before income taxes

570,944

86,625

166,051

55,756

(473,367)

406,009

—

406,009

Income tax (provision) benefit

(9,116)

259

—

(16,575)

—

(25,432)

—

(25,432)

Net income (loss)

561,828

86,884

166,051

39,181

(473,367)

380,577

—

380,577

Net (income) loss attributable to non-controlling interests

(14)

—

(38,201)

17,571

—

(20,644)

—

(20,644)

Net income (loss) attributable to Starwood Property Trust, Inc.

$            561,814

$           86,884

$     127,850

$           56,752

$    (473,367)

$      359,933

$                 —

$         359,933

Reconciliation of Net Income to Distributable Earnings

For the year ended December 31, 2024

(Amounts in thousands except per share data)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Total

Net income (loss) attributable to Starwood Property Trust, Inc.

$         561,814

$           86,884

$         127,850

$           56,752

$       (473,367)

$         359,933

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

—

18,638

—

—

18,638

Non-controlling interests attributable to unrealized gains/losses

—

—

6,551

(34,961)

—

(28,410)

Non-cash equity compensation expense

9,750

1,975

370

6,127

23,564

41,786

Management incentive fee

—

—

—

—

35,324

35,324

Depreciation and amortization

10,239

17

23,896

7,440

—

41,592

Interest income adjustment for securities

20,252

—

—

35,593

—

55,845

Consolidated income tax provision (benefit) associated with fair value adjustments

9,116

(259)

—

16,575

—

25,432

Other non-cash items

14

—

1,111

(940)

—

185

Reversal of GAAP unrealized and realized (gains) / losses on:

Loans

(3,597)

—

—

(72,283)

—

(75,880)

Credit loss provision, net

194,260

3,140

—

—

—

197,400

Securities

(76)

—

—

83,748

—

83,672

Woodstar Fund investments

—

—

(102,141)

—

—

(102,141)

Derivatives

(196,349)

(152)

(1,492)

(3,454)

43,513

(157,934)

Foreign currency

73,830

187

(89)

—

—

73,928

Earnings from unconsolidated entities

(11,599)

(1,414)

—

(1,473)

—

(14,486)

Sales of properties

—

—

(92,003)

(8,402)

—

(100,405)

Recognition of Distributable realized gains / (losses) on:

Loans

(5,235)

—

—

73,214

—

67,979

Realized credit loss

—

(1,546)

—

—

—

(1,546)

Securities

(9,556)

—

—

(48,711)

—

(58,267)

Woodstar Fund investments

—

—

70,346

—

—

70,346

Derivatives

144,325

334

8,283

9,354

(43,265)

119,031

Foreign currency

(26,055)

(46)

89

—

—

(26,012)

Earnings (loss) from unconsolidated entities

5,577

(437)

—

1,338

—

6,478

Sales of properties

—

—

39,150

3,323

—

42,473

Distributable Earnings (Loss)

$         776,710

$           88,683

$         100,559

$         123,240

$       (414,231)

$         674,961

Distributable Earnings (Loss) per Weighted Average Diluted Share

$               2.32

$               0.27

$               0.30

$               0.37

$             (1.24)

$               2.02

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of December 31, 2024

(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Assets:

Cash and cash equivalents

$            19,743

$       122,134

$       24,717

$         11,946

$     199,291

$   377,831

$              —

$       377,831

Restricted cash

147,502

21,986

1,133

5,543

—

176,164

—

176,164

Loans held-for-investment, net

12,895,064

2,541,949

—

—

—

15,437,013

—

15,437,013

Loans held-for-sale

2,394,624

—

—

121,384

—

2,516,008

—

2,516,008

Investment securities

909,762

17,273

—

1,225,024

—

2,152,059

(1,618,801)

533,258

Properties, net

650,966

—

657,246

65,466

—

1,373,678

—

1,373,678

Investments of consolidated affordable housing fund

—

—

2,073,533

—

—

2,073,533

—

2,073,533

Investments in unconsolidated entities

26,441

54,105

—

33,640

—

114,186

(14,816)

99,370

Goodwill

—

119,409

—

140,437

—

259,846

—

259,846

Intangible assets

10,637

—

22,101

63,711

—

96,449

(35,745)

60,704

Derivative assets

174,507

—

115

898

—

175,520

—

175,520

Accrued interest receivable

150,474

13,961

—

684

2,648

167,767

—

167,767

Other assets

206,103

8,190

52,243

8,700

92,993

368,229

—

368,229

VIE assets, at fair value

—

—

—

—

—

—

38,937,576

38,937,576

Total Assets

$      17,585,823

$    2,899,007

$  2,831,088

$    1,677,433

$     294,932

$  25,288,283

$  37,268,214

$   62,556,497

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$          185,303

$         30,157

$       13,232

$         57,624

$     148,268

$   434,584

$              —

$       434,584

Related-party payable

—

—

—

—

38,958

38,958

—

38,958

Dividends payable

—

—

—

—

163,383

163,383

—

163,383

Derivative liabilities

67,452

—

—

—

27,438

94,890

—

94,890

Secured financing agreements, net

7,912,536

760,299

479,732

591,094

1,428,227

11,171,888

(20,331)

11,151,557

Collateralized loan obligations and single asset securitization, net

1,966,865

1,229,561

—

—

—

3,196,426

—

3,196,426

Unsecured senior notes, net

—

—

—

—

2,994,682

2,994,682

—

2,994,682

VIE liabilities, at fair value

—

—

—

—

—

—

37,288,545

37,288,545

Total Liabilities

10,132,156

2,020,017

492,964

648,718

4,800,956

18,094,811

37,268,214

55,363,025

Temporary Equity: Redeemable non-controlling interests

—

—

426,695

—

—

426,695

—

426,695

Permanent Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

—

—

—

—

3,449

3,449

—

3,449

Additional paid-in capital

1,363,238

619,428

(398,205)

(706,746)

5,445,048

6,322,763

—

6,322,763

Treasury stock

—

—

—

—

(138,022)

(138,022)

—

(138,022)

Retained earnings (accumulated deficit)

6,076,720

259,562

2,102,389

1,613,151

(9,816,499)

235,323

—

235,323

Accumulated other comprehensive income

13,594

—

—

—

—

13,594

—

13,594

Total Starwood Property Trust, Inc. Stockholders' Equity

7,453,552

878,990

1,704,184

906,405

(4,506,024)

6,437,107

—

6,437,107

Non-controlling interests in consolidated subsidiaries

115

—

207,245

122,310

—

329,670

—

329,670

Total Permanent Equity

7,453,667

878,990

1,911,429

1,028,715

(4,506,024)

6,766,777

—

6,766,777

Total Liabilities and Equity

$      17,585,823

$    2,899,007

$  2,831,088

$    1,677,433

$     294,932

$  25,288,283

$  37,268,214

$   62,556,497

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-the-quarter-and-year-ended-december-31-2024-302386847.html

SOURCE Starwood Property Trust, Inc.