Business and Organization

12 Months Ended

Dec. 31, 2011

Business and Organization

Business and Organization

1. Business and Organization

        Starwood Property Trust, Inc. ("the Trust," together with its subsidiaries, "we" or the "Company") is a Maryland corporation that commenced operations ("Inception") on August 17, 2009 upon the completion of our initial public offering. We are focused primarily on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments. We also invest in residential mortgage-backed securities ("RMBS"). We are externally managed and advised by SPT Management, LLC (the "Manager").

        We are organized and conduct our operations to qualify as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements.

        We are organized as a holding company that conducts our business primarily through three wholly-owned subsidiaries. In 2009, we formed joint ventures (the "Joint Ventures") with Starwood Hospitality Fund II ("Hotel II") and Starwood Opportunity Fund VIII ("SOF VIII") in accordance with the co-investment and allocation agreement with our Manager. The Joint Ventures are owned 75% (and controlled) by us and are therefore consolidated into our consolidated financial statements. As of December 31, 2011, the investments held by the Joint Ventures had been sold and there were no remaining substantive operations.

        As of December 31, 2011, investments with collateral in the hospitality, retail, and office property sectors represented 39.9%, 21.0%, and 20.1% of our investment portfolio, respectively. Such allocations could materially change in the future.