Segment Data (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017 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	$	109,046	$	2,837	$	—	$	—	$	111,883	$	—	$	111,883
Interest income from investment securities		12,719		34,836		—		—		47,555		(32,331)		15,224
Servicing fees		210		30,081		—		—		30,291		(16,189)		14,102
Rental income		—		12,189		44,853		—		57,042		—		57,042
Other revenues		79		464		45		—		588		(119)		469
Total revenues		122,054		80,407		44,898		—		247,359		(48,639)		198,720
Costs and expenses:
Management fees		454		18		—		23,862		24,334		50		24,384
Interest expense		19,957		4,358		10,207		31,607		66,129		(269)		65,860
General and administrative		4,211		22,580		1,381		2,170		30,342		87		30,429
Acquisition and investment pursuit costs		515		(16)		172		—		671		—		671
Costs of rental operations		—		5,487		15,391		—		20,878		—		20,878
Depreciation and amortization		17		5,054		17,157		—		22,228		—		22,228
Loan loss allowance, net		(305)		—		—		—		(305)		—		(305)
Other expense		—		758		—		—		758		—		758
Total costs and expenses		24,849		38,239		44,308		57,639		165,035		(132)		164,903
Income (loss) before other income (loss), income taxes and non-controlling interests		97,205		42,168		590		(57,639)		82,324		(48,507)		33,817
Other income (loss):
Change in net assets related to consolidated VIEs		—		—		—		—		—		69,170		69,170
Change in fair value of servicing rights		—		(9,637)		—		—		(9,637)		1,204		(8,433)
Change in fair value of investment securities, net		172		19,045		—		—		19,217		(20,388)		(1,171)
Change in fair value of mortgage loans held-for-sale, net		—		10,593		—		—		10,593		—		10,593
Earnings from unconsolidated entities		470		1,017		2,461		—		3,948		(961)		2,987
Loss on sale of investments and other assets, net		(56)		—		—		—		(56)		—		(56)
(Loss) gain on derivative financial instruments, net		(4,535)		697		(511)		—		(4,349)		—		(4,349)
Foreign currency gain, net		4,863		1		—		—		4,864		—		4,864
Loss on extinguishment of debt		—		—		—		(5,916)		(5,916)		—		(5,916)
Other income, net		—		365		—		—		365		—		365
Total other income (loss)		914		22,081		1,950		(5,916)		19,029		49,025		68,054
Income (loss) before income taxes		98,119		64,249		2,540		(63,555)		101,353		518		101,871
Income tax (provision) benefit		(215)		1,198		—		—		983		—		983
Net income (loss)		97,904		65,447		2,540		(63,555)		102,336		518		102,854
Net (income) loss attributable to non-controlling interests		(354)		376		—		—		22		(518)		(496)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	97,550	$	65,823	$	2,540	$	(63,555)	$	102,358	$	—	$	102,358

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 (loss) income, income taxes and non-controlling interests		98,259		59,417		(5,190)		(53,376)		99,110		(49,937)		49,173
Other (loss) income:
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 (loss) income		(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

Schedule of condensed consolidated balance sheet by business segment

The table below presents our condensed consolidated balance sheet as of March 31, 2017 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	$	654	$	46,711	$	15,048	$	158,869	$	221,282	$	1,236	$	222,518
Restricted cash		19,784		10,349		9,883		—		40,016		—		40,016
Loans held-for-investment, net		6,210,717		20,102		—		—		6,230,819		—		6,230,819
Loans held-for-sale		189,334		150,932		—		—		340,266		—		340,266
Loans transferred as secured borrowings		35,000		—		—		—		35,000		—		35,000
Investment securities		714,699		1,015,146		—		—		1,729,845		(999,674)		730,171
Properties, net		—		277,253		1,660,715		—		1,937,968		—		1,937,968
Intangible assets		—		111,728		123,399		—		235,127		(33,033)		202,094
Investment in unconsolidated entities		31,125		53,974		125,307		—		210,406		(8,583)		201,823
Goodwill		—		140,437		—		—		140,437		—		140,437
Derivative assets		26,594		1,713		42,733		—		71,040		—		71,040
Accrued interest receivable		31,950		809		—		—		32,759		—		32,759
Other assets		17,775		51,043		40,373		1,497		110,688		(2,709)		107,979
VIE assets, at fair value		—		—		—		—		—		60,185,851		60,185,851
Total Assets	$	7,277,632	$	1,880,197	$	2,017,458	$	160,366	$	11,335,653	$	59,143,088	$	70,478,741
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	23,132	$	43,985	$	57,615	$	25,750	$	150,482	$	923	$	151,405
Related-party payable		—		94		—		25,903		25,997		—		25,997
Dividends payable		—		—		—		126,048		126,048		—		126,048
Derivative liabilities		1,113		454		—		—		1,567		—		1,567
Secured financing agreements, net		2,485,056		450,181		1,207,281		296,099		4,438,617		(23,700)		4,414,917
Unsecured senior notes, net		—		—		—		2,033,384		2,033,384		—		2,033,384
Secured borrowings on transferred loans		35,000		—		—		—		35,000		—		35,000
VIE liabilities, at fair value		—		—		—		—		—		59,147,068		59,147,068
Total Liabilities		2,544,301		494,714		1,264,896		2,507,184		6,811,095		59,124,291		65,935,386
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		2,648		2,648		—		2,648
Additional paid-in capital		2,391,134		917,208		713,255		668,101		4,689,698		—		4,689,698
Treasury stock		—		—		—		(92,104)		(92,104)		—		(92,104)
Accumulated other comprehensive income (loss)		46,825		(396)		(6,362)		—		40,067		—		40,067
Retained earnings (accumulated deficit)		2,284,352		456,742		45,669		(2,925,463)		(138,700)		—		(138,700)
Total Starwood Property Trust, Inc. Stockholders’ Equity		4,722,311		1,373,554		752,562		(2,346,818)		4,501,609		—		4,501,609
Non-controlling interests in consolidated subsidiaries		11,020		11,929		—		—		22,949		18,797		41,746
Total Equity		4,733,331		1,385,483		752,562		(2,346,818)		4,524,558		18,797		4,543,355
Total Liabilities and Equity	$	7,277,632	$	1,880,197	$	2,017,458	$	160,366	$	11,335,653	$	59,143,088	$	70,478,741

The table below presents our condensed consolidated balance sheet as of December 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	$	7,085	$	38,798	$	7,701	$	560,790	$	614,374	$	1,148	$	615,522
Restricted cash		17,885		8,202		9,146		—		35,233		—		35,233
Loans held-for-investment, net		5,827,553		20,442		—		—		5,847,995		—		5,847,995
Loans held-for-sale		—		63,279		—		—		63,279		—		63,279
Loans transferred as secured borrowings		35,000		—		—		—		35,000		—		35,000
Investment securities		776,072		990,570		—		—		1,766,642		(959,024)		807,618
Properties, net		—		277,612		1,667,108		—		1,944,720		—		1,944,720
Intangible assets		—		125,327		128,159		—		253,486		(34,238)		219,248
Investment in unconsolidated entities		30,874		56,376		124,977		—		212,227		(7,622)		204,605
Goodwill		—		140,437		—		—		140,437		—		140,437
Derivative assets		45,282		1,186		42,893		—		89,361		—		89,361
Accrued interest receivable		25,831		2,393		—		—		28,224		—		28,224
Other assets		13,470		59,503		29,569		1,866		104,408		(2,645)		101,763
VIE assets, at fair value		—		—		—		—		—		67,123,261		67,123,261
Total Assets	$	6,779,052	$	1,784,125	$	2,009,553	$	562,656	$	11,135,386	$	66,120,880	$	77,256,266
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	20,769	$	68,603	$	81,873	$	26,003	$	197,248	$	886	$	198,134
Related-party payable		—		440		—		37,378		37,818		—		37,818
Dividends payable		—		—		—		125,075		125,075		—		125,075
Derivative liabilities		3,388		516		—		—		3,904		—		3,904
Secured financing agreements, net		2,258,462		426,683		1,196,830		295,851		4,177,826		(23,700)		4,154,126
Unsecured senior notes, net		—		—		—		2,011,544		2,011,544		—		2,011,544
Secured borrowings on transferred loans		35,000		—		—		—		35,000		—		35,000
VIE liabilities, at fair value		—		—		—		—		—		66,130,592		66,130,592
Total Liabilities		2,317,619		496,242		1,278,703		2,495,851		6,588,415		66,107,778		72,696,193
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		2,639		2,639		—		2,639
Additional paid-in capital		2,218,671		883,761		696,049		892,699		4,691,180		—		4,691,180
Treasury stock		—		—		—		(92,104)		(92,104)		—		(92,104)
Accumulated other comprehensive income (loss)		44,903		(437)		(8,328)		—		36,138		—		36,138
Retained earnings (accumulated deficit)		2,186,727		390,994		43,129		(2,736,429)		(115,579)		—		(115,579)
Total Starwood Property Trust, Inc. Stockholders’ Equity		4,450,301		1,274,318		730,850		(1,933,195)		4,522,274		—		4,522,274
Non-controlling interests in consolidated subsidiaries		11,132		13,565		—		—		24,697		13,102		37,799
Total Equity		4,461,433		1,287,883		730,850		(1,933,195)		4,546,971		13,102		4,560,073
Total Liabilities and Equity	$	6,779,052	$	1,784,125	$	2,009,553	$	562,656	$	11,135,386	$	66,120,880	$	77,256,266