Segment Data (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Results of Operations by Business Segment

The table below presents our results of operations for the three months ended September 30, 2021 by business segment (amounts in thousands):


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	179,486	$	21,566	$	—	$	2,200	$	—	$	203,252	$	—	$	203,252
Interest income from investment securities	16,043		540		—		25,140		—		41,723		(31,026)		10,697
Servicing fees	99		—		—		15,447		—		15,546		(5,073)		10,473
Rental income	1,358		—		66,673		9,481		—		77,512		—		77,512
Other revenues	59		66		54		173		—		352		—		352
Total revenues	197,045		22,172		66,727		52,441		—		338,385		(36,099)		302,286
Costs and expenses:
Management fees	286		—		—		(1,239)		24,680		23,727		—		23,727
Interest expense	52,066		9,381		17,002		5,652		31,651		115,752		(221)		115,531
General and administrative	9,178		3,307		913		21,022		4,372		38,792		72		38,864
Acquisition and investment pursuit costs	158		—		—		56		—		214		—		214
Costs of rental operations	438		—		26,634		4,444		—		31,516		—		31,516
Depreciation and amortization	312		101		17,882		3,746		—		22,041		—		22,041
Credit loss provision (reversal), net	19		(582)		—		—		—		(563)		—		(563)
Other expense	—		—		—		23		—		23		—		23
Total costs and expenses	62,457		12,207		62,431		33,704		60,703		231,502		(149)		231,353
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		28,049		28,049
Change in fair value of servicing rights	—		—		—		(410)		—		(410)		2,647		2,237
Change in fair value of investment securities, net	(8,682)		—		—		2,870		—		(5,812)		5,513		(299)
Change in fair value of mortgage loans, net	22,464		—		—		9,263		—		31,727		—		31,727
Earnings (loss) from unconsolidated entities	1,666		399		—		153		—		2,218		(176)		2,042
Loss on sale of investments and other assets, net	(47)		—		—		—		—		(47)		—		(47)
Gain (loss) on derivative financial instruments, net	38,016		87		(318)		3,992		35		41,812		—		41,812
Foreign currency (loss) gain, net	(26,820)		(168)		(16)		1		—		(27,003)		—		(27,003)
Loss on extinguishment of debt	—		(18)		—		—		(481)		(499)		—		(499)
Other loss, net	(964)		—		—		—		—		(964)		—		(964)
Total other income (loss)	25,633		300		(334)		15,869		(446)		41,022		36,033		77,055
Income (loss) before income taxes	160,221		10,265		3,962		34,606		(61,149)		147,905		83		147,988
Income tax (provision) benefit	(5,652)		488		—		(2,337)		—		(7,501)		—		(7,501)
Net income (loss)	154,569		10,753		3,962		32,269		(61,149)		140,404		83		140,487
Net income attributable to non-controlling interests	(3)		—		(4,691)		(7,108)		—		(11,802)		(83)		(11,885)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	154,566	$	10,753	$	(729)	$	25,161	$	(61,149)	$	128,602	$	—	$	128,602

The table below presents our results of operations for the three months ended September 30, 2020 by business segment (amounts in thousands):


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	149,972	$	17,835	$	—	$	1,597	$	—	$	169,404	$	—	$	169,404
Interest income from investment securities	21,385		635		—		23,587		—		45,607		(33,421)		12,186
Servicing fees	110		—		—		13,749		—		13,859		(4,311)		9,548
Rental income	2,014		—		63,925		10,039		—		75,978		—		75,978
Other revenues	66		101		48		98		—		313		(2)		311
Total revenues	173,547		18,571		63,973		49,070		—		305,161		(37,734)		267,427
Costs and expenses:
Management fees	297		—		—		221		22,596		23,114		13		23,127
Interest expense	38,422		8,914		16,180		5,425		27,040		95,981		—		95,981
General and administrative	12,483		3,568		1,094		18,813		3,436		39,394		84		39,478
Acquisition and investment pursuit costs	757		62		—		65		—		884		—		884
Costs of rental operations	643		—		24,302		4,577		—		29,522		—		29,522
Depreciation and amortization	430		87		19,130		3,934		—		23,581		—		23,581
Credit loss provision (reversal), net	782		(4,369)		—		—		—		(3,587)		—		(3,587)
Other expense	77		—		95		—		—		172		—		172
Total costs and expenses	53,891		8,262		60,801		33,035		53,072		209,061		97		209,158
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		58,585		58,585
Change in fair value of servicing rights	—		—		—		3,960		—		3,960		(3,326)		634
Change in fair value of investment securities, net	13,611		—		—		3,249		—		16,860		(17,059)		(199)
Change in fair value of mortgage loans, net	59,402		—		—		1,982		—		61,384		—		61,384
Earnings (loss) from unconsolidated entities	3,253		(80)		—		358		—		3,531		(339)		3,192

(Loss) gain on derivative financial instruments, net	(28,577)		110		(313)		38		645		(28,097)		—		(28,097)
Foreign currency gain, net	25,302		110		14		26		—		25,452		—		25,452

Other (loss) income, net	—		—		(1)		358		—		357		—		357
Total other income (loss)	72,991		140		(300)		9,971		645		83,447		37,861		121,308
Income (loss) before income taxes	192,647		10,449		2,872		26,006		(52,427)		179,547		30		179,577
Income tax (provision) benefit	(16,700)		(86)		—		1,943		—		(14,843)		—		(14,843)
Net income (loss)	175,947		10,363		2,872		27,949		(52,427)		164,704		30		164,734
Net income attributable to non-controlling interests	(3)		—		(5,072)		(7,795)		—		(12,870)		(30)		(12,900)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	175,944	$	10,363	$	(2,200)	$	20,154	$	(52,427)	$	151,834	$	—	$	151,834

The table below presents our results of operations for the nine months ended September 30, 2021 by business segment (amounts in thousands):


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	515,776	$	61,545	$	—	$	5,778	$	—	$	583,099	$	—	$	583,099
Interest income from investment securities	51,618		1,659		—		71,748		—		125,025		(92,070)		32,955
Servicing fees	333		—		—		44,268		—		44,601		(14,862)		29,739
Rental income	4,116		—		197,187		29,666		—		230,969		—		230,969
Other revenues	223		228		138		3,032		—		3,621		—		3,621
Total revenues	572,066		63,432		197,325		154,492		—		987,315		(106,932)		880,383
Costs and expenses:
Management fees	901		—		—		(793)		91,584		91,692		21		91,713
Interest expense	144,717		27,916		49,697		16,890		89,970		329,190		(632)		328,558
General and administrative	30,922		10,281		2,964		65,182		13,172		122,521		244		122,765
Acquisition and investment pursuit costs	522		249		—		35		—		806		—		806
Costs of rental operations	1,348		—		76,516		13,128		—		90,992		—		90,992
Depreciation and amortization	930		301		53,883		11,878		—		66,992		—		66,992
Credit loss (reversal) provision, net	(12,957)		594		—		—		—		(12,363)		—		(12,363)
Other expense	31		—		583		94		—		708		—		708
Total costs and expenses	166,414		39,341		183,643		106,414		194,726		690,538		(367)		690,171
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		80,303		80,303
Change in fair value of servicing rights	—		—		—		795		—		795		1,945		2,740
Change in fair value of investment securities, net	(20,134)		—		—		(2,545)		—		(22,679)		23,582		903
Change in fair value of mortgage loans, net	24,079		—		—		44,037		—		68,116		—		68,116
Earnings from unconsolidated entities	5,415		75		—		235		—		5,725		277		6,002
Gain on sale of investments and other assets, net	16,627		27		—		9,723		—		26,377		—		26,377
Gain (loss) on derivative financial instruments, net	59,212		883		4,034		7,544		(5,881)		65,792		—		65,792
Foreign currency loss, net	(35,699)		(279)		(16)		(63)		—		(36,057)		—		(36,057)
Loss on extinguishment of debt	(289)		(1,264)		(141)		(22)		(481)		(2,197)		—		(2,197)
Other (loss) income, net	(6,468)		23		—		29		—		(6,416)		—		(6,416)
Total other income (loss)	42,743		(535)		3,877		59,733		(6,362)		99,456		106,107		205,563
Income (loss) before income taxes	448,395		23,556		17,559		107,811		(201,088)		396,233		(458)		395,775
Income tax benefit (provision)	886		338		—		(7,602)		—		(6,378)		—		(6,378)
Net income (loss)	449,281		23,894		17,559		100,209		(201,088)		389,855		(458)		389,397
Net (income) loss attributable to non-controlling interests	(10)		—		(14,682)		(18,873)		—		(33,565)		458		(33,107)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	449,271	$	23,894	$	2,877	$	81,336	$	(201,088)	$	356,290	$	—	$	356,290

The table below presents our results of operations for the nine months ended September 30, 2020 by business segment (amounts in thousands):


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	492,489	$	59,374	$	—	$	6,071	$	—	$	557,934	$	—	$	557,934
Interest income from investment securities	57,358		2,019		—		73,311		—		132,688		(90,618)		42,070
Servicing fees	424		—		—		28,782		—		29,206		(8,207)		20,999
Rental income	2,782		—		191,452		28,600		—		222,834		—		222,834
Other revenues	298		344		228		891		—		1,761		(5)		1,756
Total revenues	553,351		61,737		191,680		137,655		—		944,423		(98,830)		845,593
Costs and expenses:
Management fees	987		—		—		680		85,257		86,924		46		86,970
Interest expense	134,243		31,709		49,243		18,796		83,670		317,661		(162)		317,499
General and administrative	29,230		12,328		3,453		54,490		11,105		110,606		251		110,857
Acquisition and investment pursuit costs	2,195		1,179		12		(3)		—		3,383		—		3,383
Costs of rental operations	2,409		—		71,857		13,102		—		87,368		—		87,368
Depreciation and amortization	1,275		246		57,571		11,890		—		70,982		—		70,982
Credit loss provision, net	52,293		2,991		—		—		—		55,284		—		55,284
Other expense	230		—		432		—		—		662		—		662
Total costs and expenses	222,862		48,453		182,568		98,955		180,032		732,870		135		733,005
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		64,353		64,353
Change in fair value of servicing rights	—		—		—		9,606		—		9,606		(11,934)		(2,328)
Change in fair value of investment securities, net	(8,814)		—		—		(36,026)		—		(44,840)		47,972		3,132
Change in fair value of mortgage loans, net	56,895		—		—		22,805		—		79,700		—		79,700
Earnings (loss) from unconsolidated entities	3,975		(1,198)		—		30,504		—		33,281		(1,216)		32,065
(Loss) gain on sale of investments and other assets, net	(961)		296		—		7,433		—		6,768		—		6,768
(Loss) gain on derivative financial instruments, net	(9,508)		(1,328)		(35,150)		(22,896)		34,397		(34,485)		—		(34,485)
Foreign currency (loss) gain, net	(1,757)		(53)		(53)		2		—		(1,861)		—		(1,861)
Loss on extinguishment of debt	(22)		(170)		(2,185)		—		—		(2,377)		—		(2,377)
Other income, net	—		—		240		447		—		687		—		687
Total other income (loss)	39,808		(2,453)		(37,148)		11,875		34,397		46,479		99,175		145,654
Income (loss) before income taxes	370,297		10,831		(28,036)		50,575		(145,635)		258,032		210		258,242
Income tax (provision) benefit	(15,535)		3		—		8,716		—		(6,816)		—		(6,816)
Net income (loss)	354,762		10,834		(28,036)		59,291		(145,635)		251,216		210		251,426
Net income attributable to non-controlling interests	(10)		—		(15,294)		(11,191)		—		(26,495)		(210)		(26,705)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	354,752	$	10,834	$	(43,330)	$	48,100	$	(145,635)	$	224,721	$	—	$	224,721

Schedule of Consolidated Balance Sheet by Business Segment

The table below presents our condensed consolidated balance sheet as of September 30, 2021 by business segment (amounts in thousands):


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Assets:
Cash and cash equivalents	$	19,626	$	16,695	$	32,162	$	29,027	$	175,197	$	272,707	$	609	$	273,316
Restricted cash	60,183		23,628		6,807		19,854		—		110,472		—		110,472
Loans held-for-investment, net	11,603,370		1,688,847		—		781		—		13,292,998		—		13,292,998
Loans held-for-sale	1,813,458		84,253		—		285,808		—		2,183,519		—		2,183,519
Investment securities	927,411		33,323		—		1,128,921		—		2,089,655		(1,418,768)		670,887
Properties, net	124,691		—		1,928,853		175,318		—		2,228,862		—		2,228,862
Intangible assets	—		—		35,958		68,596		—		104,554		(39,432)		65,122
Investment in unconsolidated entities	45,129		25,170		—		38,239		—		108,538		(14,538)		94,000
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Derivative assets	31,835		36		96		78		20,521		52,566		—		52,566
Accrued interest receivable	101,539		4,372		—		1,887		447		108,245		(119)		108,126
Other assets	159,296		4,186		77,928		34,054		19,298		294,762		(92)		294,670
VIE assets, at fair value	—		—		—		—		—		—		62,346,480		62,346,480
Total Assets	$	14,886,538	$	1,999,919	$	2,081,804	$	1,923,000	$	215,463	$	21,106,724	$	60,874,140	$	81,980,864
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	55,572	$	10,064	$	48,663	$	44,405	$	51,321	$	210,025	$	55	$	210,080
Related-party payable	—		—		—		—		23,378		23,378		—		23,378
Dividends payable	—		—		—		—		139,738		139,738		—		139,738
Derivative liabilities	14,924		419		—		272		—		15,615		—		15,615
Secured financing agreements, net	7,206,946		905,343		1,873,053		763,555		774,812		11,523,709		(21,657)		11,502,052
Collateralized loan obligations and single asset securitization, net	2,209,270		404,960		—		—		—		2,614,230		—		2,614,230
Unsecured senior notes, net	—		—		—		—		1,733,684		1,733,684		—		1,733,684
VIE liabilities, at fair value	—		—		—		—		—		—		60,894,975		60,894,975
Total Liabilities	9,486,712		1,320,786		1,921,716		808,232		2,722,933		16,260,379		60,873,373		77,133,752
Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		2,961		2,961		—		2,961
Additional paid-in capital	929,932		636,911		17,137		(377,386)		4,063,671		5,270,265		—		5,270,265
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Accumulated other comprehensive income	40,486		—		—		—		—		40,486		—		40,486
Retained earnings (accumulated deficit)	4,429,290		42,222		(65,568)		1,342,156		(6,436,080)		(687,980)		—		(687,980)
Total Starwood Property Trust, Inc. Stockholders’ Equity	5,399,708		679,133		(48,431)		964,770		(2,507,470)		4,487,710		—		4,487,710
Non-controlling interests in consolidated subsidiaries	118		—		208,519		149,998		—		358,635		767		359,402
Total Equity	5,399,826		679,133		160,088		1,114,768		(2,507,470)		4,846,345		767		4,847,112
Total Liabilities and Equity	$	14,886,538	$	1,999,919	$	2,081,804	$	1,923,000	$	215,463	$	21,106,724	$	60,874,140	$	81,980,864

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


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization 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