– 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 Infrastructure Lending –

– Closed $1.3 Billion After Quarter End, Including $0.9 Billion in Commercial Lending –

– Issued $500 Million of Corporate Debt, Extending Average Maturity to 3.7 Years –

– Current Liquidity of $1.5 Billion –

– Paid Quarterly Dividend of $0.48 per Share for Over a Decade –

MIAMI BEACH, Fla., May 9, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended March 31, 2025. The Company's first quarter 2025 GAAP net income was $112.3 million, and Distributable Earnings (a non-GAAP financial measure) was $156.3 million.

"We entered 2025 with significant financial flexibility, diversified business lines, and a solid investment portfolio that we expect to grow significantly this year, with commercial lending originations to date already surpassing all of last year. Our pipeline across businesses continues to be very active. Dislocation in securitized markets, as we are seeing today, always creates outsized opportunities for us," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

"With $18 billion of capital raised since our IPO, we have a demonstrated ability to access capital markets across varied market conditions. We also continue to benefit from our diverse business model, high levels of liquidity, no corporate debt maturities for over a year, $4.9 billion of unencumbered assets and $1.5 billion of unrealized property gains which we can harvest to create incremental distributable earnings," 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 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 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.

Story Continues

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:  13750625
The playback can be accessed through May 23, 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 March 31, 2025, the Company has successfully deployed over $104 billion of capital since inception and manages a portfolio of over $26 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, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

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: [email protected]

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

Lending

Segment  Infrastructure

Lending

Segment  Property

Segment  Investing

and Servicing

Segment  Corporate  Subtotal  Securitization

VIEs  Total Revenues:  Interest income from loans $                       290,299  $           60,456  $           —  $           3,168  $             —  $   353,923  $                 —  $  353,923 Interest income from investment securities 23,889  154  —  28,174  —  52,217  (39,996)  12,221 Servicing fees 65  —  —  21,829  —  21,894  (4,434)  17,460 Rental income 8,203  —  16,315  4,665  —  29,183  —  29,183 Other revenues 3,010  1,015  234  1,039  95  5,393  —  5,393 Total revenues 325,466  61,625  16,549  58,875  95  462,610  (44,430)  418,180 Costs and expenses:  Management fees 180  —  —  —  40,583  40,763  —  40,763 Interest expense 165,551  35,154  8,977  8,133  74,538  292,353  (195)  292,158 General and administrative 14,606  5,018  1,414  22,501  4,608  48,147  —  48,147 Costs of rental operations 5,518  —  6,018  3,284  —  14,820  —  14,820 Depreciation and amortization 3,607  10  5,865  1,751  251  11,484  —  11,484 Credit loss (reversal) provision, net (25,759)  760  —  —  —  (24,999)  —  (24,999) Other expense (25)  1,923  (82)  35  —  1,851  —  1,851 Total costs and expenses 163,678  42,865  22,192  35,704  119,980  384,419  (195)  384,224 Other income (loss):  Change in net assets related to consolidated VIEs —  —  —  —  —  —  28,691  28,691 Change in fair value of servicing rights —  —  —  (114)  —  (114)  867  753 Change in fair value of investment securities, net 7,397  —  —  (22,629)  —  (15,232)  15,059  (173) Change in fair value of mortgage loans, net 42,574  —  —  15,830  —  58,404  —  58,404 Income from affordable housing fund investments —  —  3,910  —  —  3,910  —  3,910 Earnings (loss) from unconsolidated entities 1,296  (622)  —  245  —  919  (382)  537 (Loss) gain on derivative financial instruments, net (65,838)  (19)  (98)  (1,073)  27,339  (39,689)  —  (39,689) Foreign currency gain (loss), net 34,616  236  (61)  —  —  34,791  —  34,791 Other (loss) income, net (489)  —  (828)  4  —  (1,313)  —  (1,313) Total other income (loss) 19,556  (405)  2,923  (7,737)  27,339  41,676  44,235  85,911 Income (loss) before income taxes 181,344  18,355  (2,720)  15,434  (92,546)  119,867  —  119,867 Income tax provision (294)  (133)  —  (3,339)  —  (3,766)  —  (3,766) Net income (loss) 181,050  18,222  (2,720)  12,095  (92,546)  116,101  —  116,101 Net (income) loss attributable to non-controlling interests (3)  —  (5,084)  1,241  —  (3,846)  —  (3,846) Net income (loss) attributable to Starwood Property Trust, Inc. $                       181,047  $           18,222  $     (7,804)  $          13,336  $     (92,546)  $   112,255  $                 —  $  112,255

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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings

For the three months ended March 31, 2025

(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. $                            181,047  $                              18,222  $                            (7,804)  $                              13,336  $                           (92,546)  $                            112,255 Add / (Deduct):  Non-controlling interests attributable to Woodstar II Class A Units —  —  4,659  —  —  4,659 Non-controlling interests attributable to unrealized gains/losses —  —  (3,374)  (4,503)  —  (7,877) Non-cash equity compensation expense 2,792  600  109  1,397  8,452  13,350 Management incentive fee —  —  —  —  10,061  10,061 Depreciation and amortization 3,742  —  5,971  1,852  —  11,565 Interest income adjustment for loans and securities 6,216  —  —  15,162  —  21,378 Consolidated income tax provision associated with fair value adjustments 294  133  —  3,339  —  3,766 Other non-cash items 3  —  295  (366)  —  (68) Reversal of GAAP unrealized and realized (gains) / losses on:  Loans (42,574)  —  —  (15,830)  —  (58,404) Credit loss (reversal) provision, net (25,759)  760  —  —  —  (24,999) Securities (7,397)  —  —  22,629  —  15,232 Woodstar Fund investments —  —  (3,910)  —  —  (3,910) Derivatives 65,838  19  98  1,073  (27,339)  39,689 Foreign currency (34,616)  (236)  61  —  —  (34,791) (Earnings) loss from unconsolidated entities (1,296)  622  —  (245)  —  (919) Recognition of Distributable realized gains / (losses) on:  Loans  (180)  —  —  14,707  —  14,527 Securities  (31)  —  —  (2,533)  —  (2,564) Woodstar Fund investments —  —  20,321  —  —  20,321 Derivatives 29,041  53  (97)  (1,024)  (7,034)  20,939 Foreign currency  386  (33)  (61)  —  —  292 Earnings (loss) from unconsolidated entities 1,296  (108)  —  606  —  1,794 Distributable Earnings (Loss) $                            178,802  $                              20,032  $                            16,268  $                              49,600  $                         (108,406)  $                            156,296 Distributable Earnings (Loss) per Weighted Average Diluted Share $                                  0.51  $                                  0.06  $                                0.05  $                                  0.14  $                               (0.31)  $                                  0.45

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet by Segment

As of March 31, 2025

(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 $                   19,249  $              161,387  $                32,113  $                22,109  $             205,722  $             440,580  $                        —  $             440,580 Restricted cash 96,106  19,306  1,158  349  134,852  251,771  —  251,771 Loans held-for-investment, net 13,813,048  2,708,931  —  —  —  16,521,979  —  16,521,979 Loans held-for-sale 2,375,642  —  —  70,994  —  2,446,636  —  2,446,636 Investment securities 871,299  17,158  —  1,148,978  —  2,037,435  (1,539,976)  497,459 Properties, net 695,579  —  652,965  64,690  —  1,413,234  —  1,413,234 Investments of consolidated affordable housing fund —  —  2,065,498  —  —  2,065,498  —  2,065,498 Investments in unconsolidated entities 26,612  53,483  —  33,265  —  113,360  (14,898)  98,462 Goodwill —  119,409  —  140,437  —  259,846  —  259,846 Intangible assets 9,914  —  21,438  63,323  —  94,675  (34,878)  59,797 Derivative assets 82,602  —  17  4  2,349  84,972  —  84,972 Accrued interest receivable 128,296  14,029  —  338  28  142,691  —  142,691 Other assets 213,713  3,478  54,472  9,033  129,108  409,804  —  409,804 VIE assets, at fair value —  —  —  —  —  —  37,470,618  37,470,618 Total Assets $            18,332,060  $           3,097,181  $           2,827,661  $           1,553,520  $             472,059  $        26,282,481  $          35,880,866  $        62,163,347 Liabilities and Equity  Liabilities:  Accounts payable, accrued expenses and other liabilities $                 297,370  $                36,186  $                13,966  $                29,395  $             102,978  $             479,895  $                        —  $             479,895 Related-party payable —  —  —  —  36,538  36,538  —  36,538 Dividends payable —  —  —  —  165,039  165,039  —  165,039 Derivative liabilities 52,248  —  —  —  20,727  72,975  —  72,975 Secured financing agreements, net 8,942,642  961,524  480,322  527,359  1,546,810  12,458,657  (20,219)  12,438,438 Collateralized loan obligations and single asset securitization, net 1,935,109  1,230,187  —  —  —  3,165,296  —  3,165,296 Unsecured senior notes, net —  —  —  —  2,747,330  2,747,330  —  2,747,330 VIE liabilities, at fair value —  —  —  —  —  —  35,901,085  35,901,085 Total Liabilities 11,227,369  2,227,897  494,288  556,754  4,619,422  19,125,730  35,880,866  55,006,596 Temporary Equity: Redeemable non-controlling interests —  —  426,835  —  —  426,835  —  426,835 Permanent Equity:  Starwood Property Trust, Inc. Stockholders' Equity:  Common stock —  —  —  —  3,468  3,468  —  3,468 Additional paid-in capital 834,079  591,500  (395,292)  (746,610)  6,060,216  6,343,893  —  6,343,893 Treasury stock —  —  —  —  (138,022)  (138,022)  —  (138,022) Retained earnings (accumulated deficit) 6,257,767  277,784  2,094,585  1,626,488  (10,073,025)  183,599  —  183,599 Accumulated other comprehensive income 12,727  —  —  —  —  12,727  —  12,727 Total Starwood Property Trust, Inc. Stockholders' Equity 7,104,573  869,284  1,699,293  879,878  (4,147,363)  6,405,665  —  6,405,665 Non-controlling interests in consolidated subsidiaries 118  —  207,245  116,888  —  324,251  —  324,251 Total Permanent Equity 7,104,691  869,284  1,906,538  996,766  (4,147,363)  6,729,916  —  6,729,916 Total Liabilities and Equity $            18,332,060  $           3,097,181  $           2,827,661  $           1,553,520  $             472,059  $        26,282,481  $          35,880,866  $        62,163,347Cision

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SOURCE Starwood Property Trust, Inc.

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