Starwood Property Trust, Inc. and Subsidiaries

Schedule III—Real Estate and Accumulated Depreciation

December 31, 2016

(Dollars in thousands)


			Initial Cost				Costs		Gross Amounts Carried at
			to Company				Capitalized		December 31, 2016
Property Type /					Depreciable		Subsequent to				Depreciable					Accumulated		Acquisition
Geographic Location	Encumbrances		Land		Property		Acquisition(1)		Land		Property		Total			Depreciation(3)		Date
Individually Significant Properties
Office—Dublin, Ireland	$	75,859	$	34,356	$	67,115	$	—	$	34,356	$	67,115	$	101,471		$	(3,217)	Jul-15
Aggregated Properties
Office—U.S., North East (7 properties)		157,492		11,283		181,744		—		11,283		181,744		193,027			(45)	Dec-16
Office—U.S., West (6 properties)		72,874		13,422		107,852		—		13,422		107,852		121,274			(35)	Dec-16
Office—U.S., South East (9 properties)		104,797		29,771		151,980		372		29,771		152,352		182,123			(1,165)	May-16 to Dec-16
Office—U.S., Midwest (7 properties)		69,715		3,237		99,648		—		3,237		99,648		102,885			(27)	Dec-16
Office—U.S., South West (8 properties)		104,194		16,888		127,060		—		16,888		127,060		143,948			(38)	Dec-16
Office—Ireland (11 properties)		222,681		110,372		194,408		399		110,372		194,807		305,179			(10,679)	May-15
Multi-family—U.S., South East (40 properties)		446,762		150,436		480,261		13,062		150,465		493,294		643,759			(20,690)	Oct-15 to Oct-16
Multi-family—U.S., South West (1 property)		—		665		2,413		—		665		2,413		3,078			(192)	Sep-14
Multi-family—Ireland (1 property)		10,705		7,987		8,489		—		7,987		8,489		16,476			(466)	May-15
Retail—U.S., North East (3 properties)		22,780		7,457		24,804		869		7,457		25,673		33,130			(992)	May-15 to Nov 15
Retail—U.S., West (2 properties)		—		1,339		2,911		528		1,339		3,439		4,778			(106)	Dec-15
Retail—U.S., South East (3 properties)		11,353		7,368		9,303		385		7,368		9,688		17,056			(461)	Jul-15 to Sept-16
Retail—U.S., Midwest (2 properties)		12,300		7,655		10,523		937		7,655		11,460		19,115			(452)	Nov-15 to May-16
Retail—U.S., South West (3 properties)		31,807		10,108		26,620		294		10,108		26,914		37,022			(1,654)	Oct-14 to Sep-15
Retail—U.S., Mid Atlantic (2 properties)		10,600		12,675		10,830		193		12,675		11,023		23,698			(283)	Mar-16 to May-16
Industrial—U.S., Midwest (1 property)		—		717		2,603		272		717		2,875		3,592			(248)	Apr-14
Self-storage—U.S., North East (1 property)		9,800		2,202		11,498		67		2,202		11,565		13,767			(337)	Dec-15
Mixed Use—U.S., West (1 property)		8,667		1,002		14,323		6		1,002		14,329		15,331			(361)	Feb-16
Mixed Use—U.S., South East (1 property)		5,000		1,520		3,572		484		1,520		4,056		5,576			(117)	Dec-15
	$	1,377,386	$	430,460	$	1,537,957	$	17,868	$	430,489	$	1,555,796	$	1,986,285	(2)	$	(41,565)

Notes to Schedule III:

(1)

No costs subsequent to acquisition are capitalized to land.

(2)

The aggregate cost for federal income tax purposes is $2.2 billion.

(3)

Depreciation is computed based upon estimated useful lives as described in Note 7 of our Consolidated Financial Statements.

The following schedule presents our real estate activity during the years ended December 31, 2016, 2015 and 2014 (in thousands):


	2016		2015		2014
Beginning balance, January 1	$	928,060	$	40,497	$	754,981
Additions during the year:
Acquisitions (1)		1,048,985		900,247		96,901
Acquisitions through foreclosure		7,248		12,548		7,897
Improvements		15,766		2,056		1,872
Total additions		1,071,999		914,851		106,670
Deductions during the year:
Spin-off of SWAY		—		—		(819,239)
Costs of real estate sold		—		(18,421)		(1,915)
Foreign currency translation		(13,774)		(8,867)		—
Total deductions		(13,774)		(27,288)		(821,154)
Ending balance, December 31	$	1,986,285	$	928,060	$	40,497

(1)

Refer to Note 16 of our Consolidated Financial Statements for a discussion of property acquisitions from related parties.

The following schedule presents activity within accumulated depreciation during the years ended December 31, 2016, 2015 and 2014 (in thousands):


	2016		2015		2014
Beginning balance, January 1	$	8,835	$	643	$	5,767
Depreciation expense		33,350		8,802		2,183
Spin-off of SWAY		—		—		(7,221)
Disposition/write-offs		—		(539)		(86)
Foreign currency translation		(620)		(71)		—
Ending balance, December 31	$	41,565	$	8,835	$	643