Segment and Geographic Data (Tables)

3 Months Ended

Mar. 31, 2016

Segment Data

Schedule of results of operations by business segment

The table below presents our results of operations for the three months ended March 31, 2016 by business segment (amounts in thousands):

			Investing								Investing
	Lending		and Servicing		Property						and Servicing
	Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Revenues:
Interest income from loans	$	114,658	$	2,874	$	—	$	—	$	117,532	$	—	$	117,532
Interest income from investment securities		9,628		47,626		—		—		57,254		(37,851)		19,403
Servicing fees		159		36,218		—		—		36,377		(11,686)		24,691
Rental income		—		6,475		26,202		—		32,677		—		32,677
Other revenues		23		1,342		6		—		1,371		(181)		1,190
Total revenues		124,468		94,535		26,208		—		245,211		(49,718)		195,493
Costs and expenses:
Management fees		375		18		—		24,528		24,921		42		24,963
Interest expense		22,335		3,238		4,949		25,998		56,520		—		56,520
General and administrative		3,922		25,294		555		2,850		32,621		177		32,798
Acquisition and investment pursuit costs		338		355		592		—		1,285		—		1,285
Costs of rental operations		—		3,062		9,593		—		12,655		—		12,655
Depreciation and amortization		—		3,051		15,709		—		18,760		—		18,760
Loan loss allowance, net		(761)		—		—		—		(761)		—		(761)
Other expense		—		100		—		—		100		—		100
Total costs and expenses		26,209		35,118		31,398		53,376		146,101		219		146,320
Income (loss) before other income (loss), income taxes and non-controlling interests		98,259		59,417		(5,190)		(53,376)		99,110		(49,937)		49,173
Other income (loss):
Change in net assets related to consolidated VIEs		—		—		—		—		—		(4,167)		(4,167)
Change in fair value of servicing rights		—		(8,670)		—		—		(8,670)		1,931		(6,739)
Change in fair value of investment securities, net		(214)		(51,528)		—		—		(51,742)		52,495		753
Change in fair value of mortgage loans held-for-sale, net		—		6,891		—		—		6,891		—		6,891
Earnings from unconsolidated entities		468		1,377		2,429		—		4,274		(209)		4,065
Gain on sale of investments and other assets, net		245		—		—		—		245		—		245
Loss on derivative financial instruments, net		(3,026)		(11,245)		(10,447)		—		(24,718)		—		(24,718)
Foreign currency (loss) gain, net		(1,822)		1,460		(16)		—		(378)		—		(378)
Other income, net		—		43		422		1,550		2,015		—		2,015
Total other income (loss)		(4,349)		(61,672)		(7,612)		1,550		(72,083)		50,050		(22,033)
Income (loss) before income taxes		93,910		(2,255)		(12,802)		(51,826)		27,027		113		27,140
Income tax provision		(75)		(19)		—		—		(94)		—		(94)
Net income (loss)		93,835		(2,274)		(12,802)		(51,826)		26,933		113		27,046
Net (income) loss attributable to non-controlling interests		(350)		74		—		—		(276)		(113)		(389)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	93,485	$	(2,200)	$	(12,802)	$	(51,826)	$	26,657	$	—	$	26,657

The table below presents our results of operations for the three months ended March 31, 2015 by business segment (amounts in thousands):

			Investing								Investing
	Lending		and Servicing		Property						and Servicing
	Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Revenues:
Interest income from loans	$	113,472	$	4,957	$	—	$	—	$	118,429	$	—	$	118,429
Interest income from investment securities		22,296		24,696		—		—		46,992		(19,248)		27,744
Servicing fees		84		50,948		—		—		51,032		(22,775)		28,257
Rental income		—		2,672		—		—		2,672		—		2,672
Other revenues		79		1,930		—		—		2,009		(262)		1,747
Total revenues		135,931		85,203		—		—		221,134		(42,285)		178,849
Costs and expenses:
Management fees		388		18		—		27,512		27,918		50		27,968
Interest expense		21,523		2,119		—		26,892		50,534		—		50,534
General and administrative		4,858		29,189		2		1,029		35,078		186		35,264
Acquisition and investment pursuit costs		773		213		—		200		1,186		—		1,186
Costs of rental operations		—		1,698		—		—		1,698		—		1,698
Depreciation and amortization		—		4,085		—		—		4,085		—		4,085
Loan loss allowance, net		317		—		—		—		317		—		317
Other expense		—		375		—		—		375		—		375
Total costs and expenses		27,859		37,697		2		55,633		121,191		236		121,427
Income (loss) before other income (loss), income taxes and non-controlling interests		108,072		47,506		(2)		(55,633)		99,943		(42,521)		57,422
Other income (loss):
Change in net assets related to consolidated VIEs		—		—		—		—		—		47,861		47,861
Change in fair value of servicing rights		—		(4,875)		—		—		(4,875)		3,333		(1,542)
Change in fair value of investment securities, net		(339)		8,313		—		—		7,974		(8,473)		(499)
Change in fair value of mortgage loans held-for-sale, net		—		21,131		—		—		21,131		—		21,131
Earnings from unconsolidated entities		855		2,724		2,641		—		6,220		(130)		6,090
Gain on sale of investments and other assets, net		98		17,100		—		—		17,198		—		17,198
Gain (loss) on derivative financial instruments, net		32,863		(8,007)		(233)		—		24,623		—		24,623
Foreign currency (loss) gain, net		(29,336)		(1,171)		200		—		(30,307)		—		(30,307)
Loss on extinguishment of debt		—		—		—		(5,292)		(5,292)		—		(5,292)
Other income, net		—		31		—		14		45		—		45
Total other income (loss)		4,141		35,246		2,608		(5,278)		36,717		42,591		79,308
Income (loss) before income taxes		112,213		82,752		2,606		(60,911)		136,660		70		136,730
Income tax benefit (provision)		30		(15,981)		—		—		(15,951)		—		(15,951)
Net income (loss)		112,243		66,771		2,606		(60,911)		120,709		70		120,779
Net income attributable to non-controlling interests		(346)		—		—		—		(346)		(70)		(416)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	111,897	$	66,771	$	2,606	$	(60,911)	$	120,363	$	—	$	120,363

Schedule of condensed consolidated balance sheet by business segment

The table below presents our condensed consolidated balance sheet as of March 31, 2016 by business segment (amounts in thousands):

			Investing								Investing
	Lending		and Servicing		Property						and Servicing
	Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Assets:
Cash and cash equivalents	$	103,942	$	70,684	$	15,486	$	144,062	$	334,174	$	1,045	$	335,219
Restricted cash		31,474		11,710		5,191		—		48,375		—		48,375
Loans held-for-investment, net		6,169,937		17,717		—		—		6,187,654		—		6,187,654
Loans held-for-sale		—		154,225		—		—		154,225		—		154,225
Loans transferred as secured borrowings		88,512		—		—		—		88,512		—		88,512
Investment securities		552,640		1,012,618		—		—		1,565,258		(915,894)		649,364
Properties, net		—		172,289		982,686		—		1,154,975		—		1,154,975
Intangible assets		—		147,495		60,346		—		207,841		(27,365)		180,476
Investment in unconsolidated entities		30,311		52,463		121,297		—		204,071		(7,434)		196,637
Goodwill		—		140,437		—		—		140,437		—		140,437
Derivative assets		33,237		2,911		790		—		36,938		—		36,938
Accrued interest receivable		35,451		469		—		—		35,920		52		35,972
Other assets		14,640		70,562		27,132		1,737		114,071		(2,211)		111,860
VIE assets, at fair value		—		—		—		—		—		85,115,662		85,115,662
Total Assets	$	7,060,144	$	1,853,580	$	1,212,928	$	145,799	$	10,272,451	$	84,163,855	$	94,436,306
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	28,501	$	51,774	$	42,329	$	15,962	$	138,566	$	720	$	139,286
Related-party payable		—		689		—		23,468		24,157		—		24,157
Dividends payable		—		—		—		114,839		114,839		—		114,839
Derivative liabilities		12,551		2,106		1,545		—		16,202		—		16,202
Secured financing agreements, net		2,723,567		397,884		712,782		646,727		4,480,960		—		4,480,960
Convertible senior notes, net		—		—		—		1,329,072		1,329,072		—		1,329,072
Secured borrowings on transferred loans		89,905		—		—		—		89,905		—		89,905
VIE liabilities, at fair value		—		—		—		—		—		84,151,022		84,151,022
Total Liabilities		2,854,524		452,453		756,656		2,130,068		6,193,701		84,151,742		90,345,443
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		2,422		2,422		—		2,422
Additional paid-in capital		2,276,386		1,173,852		456,658		304,008		4,210,904		—		4,210,904
Treasury stock		—		—		—		(92,104)		(92,104)		—		(92,104)
Accumulated other comprehensive income (loss)		33,569		(4,395)		4,283		—		33,457		—		33,457
Retained earnings (accumulated deficit)		1,884,190		218,873		(4,669)		(2,198,595)		(100,201)		—		(100,201)
Total Starwood Property Trust, Inc. Stockholders’ Equity		4,194,145		1,388,330		456,272		(1,984,269)		4,054,478		—		4,054,478
Non-controlling interests in consolidated subsidiaries		11,475		12,797		—		—		24,272		12,113		36,385
Total Equity		4,205,620		1,401,127		456,272		(1,984,269)		4,078,750		12,113		4,090,863
Total Liabilities and Equity	$	7,060,144	$	1,853,580	$	1,212,928	$	145,799	$	10,272,451	$	84,163,855	$	94,436,306

The table below presents our condensed consolidated balance sheet as of December 31, 2015 by business segment (amounts in thousands):

			Investing								Investing
	Lending		and Servicing		Property						and Servicing
	Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Assets:
Cash and cash equivalents	$	83,836	$	62,649	$	2,944	$	218,408	$	367,837	$	978	$	368,815
Restricted cash		9,775		8,826		4,468		—		23,069		—		23,069
Loans held-for-investment, net		5,973,079		—		—		—		5,973,079		—		5,973,079
Loans held-for-sale		—		203,865		—		—		203,865		—		203,865
Loans transferred as secured borrowings		86,573		—		—		—		86,573		—		86,573
Investment securities		511,966		1,038,200		—		—		1,550,166		(825,219)		724,947
Properties, net		—		150,497		768,728		—		919,225		—		919,225
Intangible assets		—		152,278		61,121		—		213,399		(11,829)		201,570
Investment in unconsolidated entities		30,827		53,145		122,454		—		206,426		(7,225)		199,201
Goodwill		—		140,437		—		—		140,437		—		140,437
Derivative assets		33,412		2,087		9,592		—		45,091		—		45,091
Accrued interest receivable		34,028		286		—		—		34,314		—		34,314
Other assets		7,938		71,505		23,657		1,436		104,536		(2,057)		102,479
VIE assets, at fair value		—		—		—		—		—		76,675,689		76,675,689
Total Assets	$	6,771,434	$	1,883,775	$	992,964	$	219,844	$	9,868,017	$	75,830,337	$	85,698,354
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	18,822	$	90,399	$	25,427	$	21,468	$	156,116	$	689	$	156,805
Related-party payable		—		423		—		40,532		40,955		—		40,955
Dividends payable		—		—		—		114,947		114,947		—		114,947
Derivative liabilities		5,190		6		—		—		5,196		—		5,196
Secured financing agreements, net		2,341,897		422,260		568,738		647,804		3,980,699		—		3,980,699
Convertible senior notes, net		—		—		—		1,323,795		1,323,795		—		1,323,795
Secured borrowings on transferred loans		88,000		—		—		—		88,000		—		88,000
VIE liabilities, at fair value		—		—		—		—		—		75,817,014		75,817,014
Total Liabilities		2,453,909		513,088		594,165		2,148,546		5,709,708		75,817,703		81,527,411
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		2,410		2,410		—		2,410
Additional paid-in capital		2,477,987		1,146,926		394,465		173,466		4,192,844		—		4,192,844
Treasury stock		—		—		—		(72,381)		(72,381)		—		(72,381)
Accumulated other comprehensive income (loss)		37,242		(3,714)		(3,799)		—		29,729		—		29,729
Retained earnings (accumulated deficit)		1,790,705		221,073		8,133		(2,032,197)		(12,286)		—		(12,286)
Total Starwood Property Trust, Inc. Stockholders’ Equity		4,305,934		1,364,285		398,799		(1,928,702)		4,140,316		—		4,140,316
Non-controlling interests in consolidated subsidiaries		11,591		6,402		—		—		17,993		12,634		30,627
Total Equity		4,317,525		1,370,687		398,799		(1,928,702)		4,158,309		12,634		4,170,943
Total Liabilities and Equity	$	6,771,434	$	1,883,775	$	992,964	$	219,844	$	9,868,017	$	75,830,337	$	85,698,354