Segment Data (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 by business segment (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	$	170,593	$	18,808	$	—	$	1,174	$	—	$	190,575	$	—	$	190,575
Interest income from investment securities		18,385		564		—		20,940		—		39,889		(28,279)		11,610
Servicing fees		124		—		—		12,456		—		12,580		(4,178)		8,402
Rental income		1,339		—		65,104		9,895		—		76,338		—		76,338
Other revenues		90		93		40		82		—		305		—		305
Total revenues		190,531		19,465		65,144		44,547		—		319,687		(32,457)		287,230
Costs and expenses:
Management fees		315		—		—		222		38,188		38,725		11		38,736
Interest expense		44,295		8,841		15,832		5,449		29,148		103,565		(191)		103,374
General and administrative		11,333		3,442		1,023		18,440		4,311		38,549		87		38,636
Acquisition and investment pursuit costs		185		—		—		—		—		185		—		185
Costs of rental operations		477		—		23,960		4,308		—		28,745		—		28,745
Depreciation and amortization		307		100		18,100		3,967		—		22,474		—		22,474
Credit loss (reversal) provision, net		(529)		573		—		—		—		44		—		44
Other expense		31		—		583		71		—		685		—		685
Total costs and expenses		56,414		12,956		59,498		32,457		71,647		232,972		(93)		232,879
Other income (loss):
Change in net assets related to consolidated VIEs		—		—		—		—		—		—		39,745		39,745
Change in fair value of servicing rights		—		—		—		745		—		745		(1,541)		(796)
Change in fair value of investment securities, net		(2,050)		—		—		7,170		—		5,120		(5,426)		(306)
Change in fair value of mortgage loans, net		(10,714)		—		—		1,236		—		(9,478)		—		(9,478)
Earnings (loss) from unconsolidated entities		1,753		(254)		—		589		—		2,088		(354)		1,734
Gain on sale of investments and other assets, net		17,693		—		—		—		—		17,693		—		17,693
Gain (loss) on derivative financial instruments, net		26,141		684		4,724		9,283		(6,843)		33,989		—		33,989
Foreign currency (loss) gain, net		(11,594)		(49)		25		(63)		—		(11,681)		—		(11,681)
Loss on extinguishment of debt		(68)		(307)		(141)		—		—		(516)		—		(516)
Other income, net		—		21		—		—		—		21		—		21
Total other income (loss)		21,161		95		4,608		18,960		(6,843)		37,981		32,424		70,405
Income (loss) before income taxes		155,278		6,604		10,254		31,050		(78,490)		124,696		60		124,756
Income tax provision		(1,505)		(92)		—		(633)		—		(2,230)		—		(2,230)
Net income (loss)		153,773		6,512		10,254		30,417		(78,490)		122,466		60		122,526
Net income attributable to non-controlling interests		(3)		—		(5,077)		(6,008)		—		(11,088)		(60)		(11,148)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	153,770	$	6,512	$	5,177	$	24,409	$	(78,490)	$	111,378	$	—	$	111,378

The table below presents our results of operations for the three months ended March 31, 2020 by business segment (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	$	192,381	$	22,413	$	—	$	2,633	$	—	$	217,427	$	—	$	217,427
Interest income from investment securities		18,628		701		—		24,800		—		44,129		(28,889)		15,240
Servicing fees		172		—		—		6,442		—		6,614		(1,821)		4,793
Rental income		78		—		63,961		10,107		—		74,146		—		74,146
Other revenues		178		143		122		513		—		956		(2)		954
Total revenues		211,437		23,257		64,083		44,495		—		343,272		(30,712)		312,560
Costs and expenses:
Management fees		351		—		—		239		40,107		40,697		31		40,728
Interest expense		53,950		13,117		17,121		7,194		28,805		120,187		(162)		120,025
General and administrative		8,132		4,423		1,078		20,684		4,301		38,618		84		38,702
Acquisition and investment pursuit costs		860		17		12		20		—		909		—		909
Costs of rental operations		778		—		22,852		4,584		—		28,214		—		28,214
Depreciation and amortization		415		70		19,288		4,207		—		23,980		—		23,980
Credit loss provision, net		40,217		8,452		—		—		—		48,669		—		48,669
Other expense		77		—		311		—		—		388		—		388
Total costs and expenses		104,780		26,079		60,662		36,928		73,213		301,662		(47)		301,615
Other income (loss):
Change in net assets related to consolidated VIEs		—		—		—		—		—		—		(45,493)		(45,493)
Change in fair value of servicing rights		—		—		—		318		—		318		(711)		(393)
Change in fair value of investment securities, net		(27,879)		—		—		(47,216)		—		(75,095)		77,599		2,504
Change in fair value of mortgage loans, net		(35,517)		—		—		19,383		—		(16,134)		—		(16,134)
Earnings (loss) from unconsolidated entities		51		—		—		620		—		671		(574)		97
Gain on sale of investments and other assets, net		—		296		—		—		—		296		—		296
Gain (loss) on derivative financial instruments, net		30,805		(1,001)		(30,223)		(19,106)		29,235		9,710		—		9,710
Foreign currency (loss) gain, net		(34,001)		(473)		(19)		7		—		(34,486)		—		(34,486)
Loss on extinguishment of debt		—		(170)		—		—		—		(170)		—		(170)
Other income, net		—		—		50		76		—		126		—		126
Total other income (loss)		(66,541)		(1,348)		(30,192)		(45,918)		29,235		(114,764)		30,821		(83,943)
Income (loss) before income taxes		40,116		(4,170)		(26,771)		(38,351)		(43,978)		(73,154)		156		(72,998)
Income tax benefit		4,422		145		—		2,162		—		6,729		—		6,729
Net income (loss)		44,538		(4,025)		(26,771)		(36,189)		(43,978)		(66,425)		156		(66,269)
Net (income) loss attributable to non-controlling interests		(3)		—		(5,111)		4,770		—		(344)		(156)		(500)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	44,535	$	(4,025)	$	(31,882)	$	(31,419)	$	(43,978)	$	(66,769)	$	—	$	(66,769)

Schedule of consolidated balance sheet by business segment

The table below presents our condensed consolidated balance sheet as of March 31, 2021 by business segment (amounts in thousands):

	Commercial and
	Residential		Infrastructure				Investing
	Lending		Lending		Property		and Servicing						Securitization
	Segment		Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Assets:
Cash and cash equivalents	$	56,629	$	7,873	$	39,791	$	29,064	$	217,049	$	350,406	$	784	$	351,190
Restricted cash		69,882		27,973		6,672		14,197		—		118,724		—		118,724
Loans held-for-investment, net		10,733,752		1,586,808		—		933		—		12,321,493		—		12,321,493
Loans held-for-sale		587,037		89,368		—		168,226		—		844,631		—		844,631
Investment securities		969,968		34,951		—		1,106,000		—		2,110,919		(1,432,632)		678,287
Properties, net		93,718		—		1,954,880		196,150		—		2,244,748		—		2,244,748
Intangible assets		—		—		38,833		70,857		—		109,690		(42,918)		66,772
Investment in unconsolidated entities		47,514		24,840		—		44,435		—		116,789		(15,882)		100,907
Goodwill		—		119,409		—		140,437		—		259,846		—		259,846
Derivative assets		13,088		—		162		320		24,459		38,029		—		38,029
Accrued interest receivable		97,853		3,310		—		274		408		101,845		(132)		101,713
Other assets		61,677		7,107		85,740		44,719		9,646		208,889		(16)		208,873
VIE assets, at fair value		—		—		—		—		—		—		62,367,110		62,367,110
Total Assets	$	12,731,118	$	1,901,639	$	2,126,078	$	1,815,612	$	251,562	$	18,826,009	$	60,876,314	$	79,702,323
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	37,206	$	16,010	$	44,184	$	24,110	$	56,614	$	178,124	$	91	$	178,215
Related-party payable		—		—		—		—		36,135		36,135		—		36,135
Dividends payable		—		—		—		—		138,906		138,906		—		138,906
Derivative liabilities		33,190		1,310		—		305		—		34,805		—		34,805
Secured financing agreements, net		6,502,059		1,259,813		1,871,026		653,222		631,655		10,917,775		(21,843)		10,895,932
Collateralized loan obligations, net		931,178		—		—		—		—		931,178		—		931,178
Unsecured senior notes, net		—		—		—		—		1,735,658		1,735,658		—		1,735,658
VIE liabilities, at fair value		—		—		—		—		—		—		60,896,709		60,896,709
Total Liabilities		7,503,633		1,277,133		1,915,210		677,637		2,598,968		13,972,581		60,874,957		74,847,538
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		—		2,943		2,943		—		2,943
Additional paid-in capital		1,074,553		599,666		25,905		(298,098)		3,823,011		5,225,037		—		5,225,037
Treasury stock		—		—		—		—		(138,022)		(138,022)		—		(138,022)
Accumulated other comprehensive income		41,654		—		—		—		—		41,654		—		41,654
Retained earnings (accumulated deficit)		4,111,160		24,840		(40,641)		1,285,229		(6,035,338)		(654,750)		—		(654,750)
Total Starwood Property Trust, Inc. Stockholders’ Equity		5,227,367		624,506		(14,736)		987,131		(2,347,406)		4,476,862		—		4,476,862
Non-controlling interests in consolidated subsidiaries		118		—		225,604		150,844		—		376,566		1,357		377,923
Total Equity		5,227,485		624,506		210,868		1,137,975		(2,347,406)		4,853,428		1,357		4,854,785
Total Liabilities and Equity	$	12,731,118	$	1,901,639	$	2,126,078	$	1,815,612	$	251,562	$	18,826,009	$	60,876,314	$	79,702,323

The table below presents our condensed consolidated balance sheet as of December 31, 2020 by business segment (amounts in thousands):

	Commercial and
	Residential		Infrastructure				Investing
	Lending		Lending		Property		and Servicing						Securitization
	Segment		Segment		Segment		Segment		Corporate		Subtotal		VIEs		Total
Assets:
Cash and cash equivalents	$	160,007	$	4,440	$	32,080	$	19,546	$	346,372	$	562,445	$	772	$	563,217
Restricted cash		93,445		45,113		7,192		13,195		—		158,945		—		158,945
Loans held-for-investment, net		9,673,625		1,412,440		—		1,008		—		11,087,073		—		11,087,073
Loans held-for-sale		841,963		120,540		—		90,332		—		1,052,835		—		1,052,835
Investment securities		1,014,402		35,681		—		1,112,145		—		2,162,228		(1,425,570)		736,658
Properties, net		103,896		—		1,969,414		197,843		—		2,271,153		—		2,271,153
Intangible assets		—		—		40,370		71,123		—		111,493		(41,376)		70,117
Investment in unconsolidated entities		54,407		25,095		—		44,664		—		124,166		(16,112)		108,054
Goodwill		—		119,409		—		140,437		—		259,846		—		259,846
Derivative assets		6,595		—		41		147		33,772		40,555		—		40,555
Accrued interest receivable		87,922		2,091		—		123		5,978		96,114		(134)		95,980
Other assets		61,638		4,531		69,859		44,579		10,148		190,755		(7)		190,748
VIE assets, at fair value		—		—		—		—		—		—		64,238,328		64,238,328
Total Assets	$	12,097,900	$	1,769,340	$	2,118,956	$	1,735,142	$	396,270	$	18,117,608	$	62,755,901	$	80,873,509
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	41,104	$	12,144	$	43,630	$	45,309	$	64,583	$	206,770	$	75	$	206,845
Related-party payable		—		—		—		5		39,165		39,170		—		39,170
Dividends payable		—		—		—		—		137,959		137,959		—		137,959
Derivative liabilities		39,082		1,718		—		524		—		41,324		—		41,324
Secured financing agreements, net		5,893,999		1,240,763		1,794,609		606,100		632,719		10,168,190		(22,000)		10,146,190
Collateralized loan obligations, net		930,554		—		—		—		—		930,554		—		930,554
Unsecured senior notes, net		—		—		—		—		1,732,520		1,732,520		—		1,732,520
VIE liabilities, at fair value		—		—		—		—		—		—		62,776,371		62,776,371
Total Liabilities		6,904,739		1,254,625		1,838,239		651,938		2,606,946		13,256,487		62,754,446		76,010,933
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock		—		—		—		—		2,921		2,921		—		2,921
Additional paid-in capital		1,192,584		496,387		98,882		(322,992)		3,744,878		5,209,739		—		5,209,739
Treasury stock		—		—		—		—		(138,022)		(138,022)		—		(138,022)
Accumulated other comprehensive income (loss)		44,057		—		—		(64)		—		43,993		—		43,993
Retained earnings (accumulated deficit)		3,956,405		18,328		(44,832)		1,260,819		(5,820,453)		(629,733)		—		(629,733)
Total Starwood Property Trust, Inc. Stockholders’ Equity		5,193,046		514,715		54,050		937,763		(2,210,676)		4,488,898		—		4,488,898
Non-controlling interests in consolidated subsidiaries		115		—		226,667		145,441		—		372,223		1,455		373,678
Total Equity		5,193,161		514,715		280,717		1,083,204		(2,210,676)		4,861,121		1,455		4,862,576
Total Liabilities and Equity	$	12,097,900	$	1,769,340	$	2,118,956	$	1,735,142	$	396,270	$	18,117,608	$	62,755,901	$	80,873,509