Starwood Property Trust Reports Results for Quarter Ended September 30, 2024

PR Newswire

GREENWICH, Conn., Nov. 6, 2024

-- Quarterly GAAP Earnings of $0.23 and Distributable Earnings (DE) of $0.48 per Diluted Share --

-- Originated or Acquired $2.1 Billion of Assets in the Quarter and $3.5 Billion Year-To-Date --

-- Received Repayments of $1.6 Billion in the Quarter and $3.7 Billion Year-To-Date --

-- Raised $800 Million of Capital Bringing Liquidity to a Record $1.8 Billion --

-- Undepreciated Book Value Per Share of $20.22 --

-- Paid Dividend of $0.48 per Share --

GREENWICH, Conn., Nov. 6, 2024 /PRNewswire/ -- Starwood Property Trust, Inc. $(STWD)$ today announced operating results for the fiscal quarter ended September 30, 2024. The Company's third quarter 2024 GAAP net income was $76.1 million, inclusive of a $66.4 million credit loss provision, and Distributable Earnings (a non-GAAP financial measure) was $159.0 million.

"STWD's differentiated multi-cylinder business model, created exactly to help us weather storms, has served us well. To date, we are the only company in the United States categorized as a commercial mortgage REIT that did not reduce its dividend, either in the pandemic or because of the Fed's rapid increase in rates. While we remain among the dominant large real estate loan lenders in the nation, our commercial lending book is roughly 60% of our total assets today. Our other cylinders, particularly infrastructure lending, conduit and special servicing, have contributed an increasing share to our performance. We also used this period to significantly reduce our leverage, which is a full turn or more below many of our peers. Like most of our peers, we have had, and are likely to continue to have, restructurings in our loan book as the cycle moves on, but it is gratifying that knowing this, we are still able to move to full offense again," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.

"After successfully accessing the equity and debt markets for the third time this year, which were met with record demand, we have $1.8 billion of liquidity, our highest level ever, and a leverage ratio of just 2.1x. We invested over $2.0 billion in the quarter, our highest volume since the Fed began raising rates in 2022. With record liquidity and a robust pipeline, along with additional access to capital via our $4.6 billion of unencumbered assets and over $4.00 per share of unrealized gains in our property book, we are well positioned to increase our investment pace as transaction volumes return to the real estate markets, " 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 Wednesday, November 6, 2024, 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: 13742861

The playback can be accessed through November 20, 2024.

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 September 30, 2024, the Company has successfully deployed over $100 billion of capital since inception and manages a portfolio of $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, 2023, 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 September 30, 2024.

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 September 30, 2024 
 (Amounts in thousands) 
 
                           Commercial and 
                             Residential            Infrastructure                      Investing 
                               Lending                  Lending         Property       and Servicing                                   Securitization 
                               Segment                  Segment          Segment          Segment         Corporate      Subtotal            VIEs           Total 
                   ------------------------------  -----------------  -------------  ----------------  ---------------  -----------  -------------------  ---------- 
Revenues: 
 Interest income 
  from loans       $                      349,589  $          63,910  $          --  $          5,258  $            --   $  418,757  $                --   $ 418,757 
 Interest income 
  from investment 
  securities                               29,392                123             --            24,882               --       54,397             (37,170)      17,227 
 Servicing fees                               109                 --             --            15,448               --       15,557              (3,730)      11,827 
 Rental income                              4,267                 --         16,352             5,360               --       25,979                   --      25,979 
 Other revenues                             2,149              1,410            212             1,338              641        5,750                   --       5,750 
                   ------------------------------  -----------------  -------------  ----------------  ---------------  -----------  -------------------  ---------- 
   Total revenues                         385,506             65,443         16,564            52,286              641      520,440             (40,900)     479,540 
                   ------------------------------  -----------------  -------------  ----------------  ---------------  -----------  -------------------  ---------- 
Costs and 
expenses: 
 Management fees                              185                 --             --                --           27,254       27,439                   --      27,439 
 Interest expense                         209,464             38,381         10,375            10,160           69,687      338,067                (208)     337,859 
 General and 
  administrative                           14,430              4,440          1,236            24,249            3,699       48,054                   --      48,054 
 Costs of rental 
  operations                                3,140                 --          6,057             2,936               --       12,133                   --      12,133 
 Depreciation and 
  amortization                              2,264                 14          5,914             1,745              251       10,188                   --      10,188 
 Credit loss 

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