EX-99.1 2 stwd_pressrelease-ye2024.htm EX-99.1

Exhibit 99.1

For Immediate Release                                 

Starwood Property Trust Reports Results for the

Quarter and Year Ended December 31, 2024

– 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, FL, February 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.

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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.

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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

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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

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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

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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

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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

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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

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