Segment and Geographic Data (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Results of Operations by Business Segment

The table below presents our results of operations for the year ended December 31, 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	$	705,499	$	85,057	$	—	$	9,735	$	—	$	800,291	$	—	$	800,291
Interest income from investment securities	67,589		2,190		—		96,771		—		166,550		(121,382)		45,168
Servicing fees	453		—		—		58,896		—		59,349		(20,610)		38,739
Rental income	5,486		—		234,840		38,505		—		278,831		—		278,831
Other revenues	294		293		198		6,278		—		7,063		(4)		7,059
Total revenues	779,321		87,540		235,038		210,185		—		1,312,084		(141,996)		1,170,088
Costs and expenses:
Management fees	948		—		—		(793)		167,594		167,749		24		167,773
Interest expense	206,353		37,671		59,970		22,543		119,402		445,939		(852)		445,087
General and administrative	42,000		14,557		8,067		88,879		17,472		170,975		327		171,302
Acquisition and investment pursuit costs	893		250		(60)		101		—		1,184		—		1,184
Costs of rental operations	1,769		—		92,190		17,708		—		111,667		—		111,667
Depreciation and amortization	1,243		402		65,833		15,523		—		83,001		—		83,001
Credit loss (reversal) provision, net	(3,560)		11,895		—		—		—		8,335		—		8,335
Other expense	31		—		583		94		—		708		—		708
Total costs and expenses	249,677		64,775		226,583		144,055		304,468		989,558		(501)		989,057
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		162,333		162,333
Change in fair value of servicing rights	—		—		—		4,319		—		4,319		(741)		3,578
Change in fair value of investment securities, net	(8,277)		—		—		28,221		—		19,944		(20,331)		(387)
Change in fair value of mortgage loans, net	13,836		—		—		55,214		—		69,050		—		69,050
Income from affordable housing fund investments	—		—		6,425		—		—		6,425		—		6,425
Earnings (loss) from unconsolidated entities	6,984		1,160		—		815		—		8,959		(207)		8,752
Gain on sale of investments and other assets, net	16,584		189		—		22,211		—		38,984		—		38,984
Gain (loss) on derivative financial instruments, net	73,209		1,253		10,155		8,288		(10,542)		82,363		—		82,363
Foreign currency loss, net	(36,045)		(183)		—		(64)		—		(36,292)		—		(36,292)
Loss on extinguishment of debt	(289)		(1,264)		(5,281)		(113)		(481)		(7,428)		—		(7,428)
Other (loss) income, net	(7,407)		23		—		70		—		(7,314)		—		(7,314)
Total other income (loss)	58,595		1,178		11,299		118,961		(11,023)		179,010		141,054		320,064
Income (loss) before income taxes	588,239		23,943		19,754		185,091		(315,491)		501,536		(441)		501,095
Income tax (provision) benefit	(1,201)		306		—		(7,775)		1		(8,669)		—		(8,669)
Net income (loss)	587,038		24,249		19,754		177,316		(315,490)		492,867		(441)		492,426
Net (income) loss attributable to non-controlling interests	(14)		—		(20,121)		(24,993)		—		(45,128)		441		(44,687)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	587,024	$	24,249	$	(367)	$	152,323	$	(315,490)	$	447,739	$	—	$	447,739

The table below presents our results of operations for the year ended 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
Revenues:
Interest income from loans	$	665,503	$	77,851	$	—	$	8,589	$	—	$	751,943	$	—	$	751,943
Interest income from investment securities	78,490		2,637		—		93,823		—		174,950		(120,538)		54,412
Servicing fees	549		—		—		41,806		—		42,355		(12,721)		29,634
Rental income	4,706		—		255,452		37,670		—		297,828		—		297,828
Other revenues	412		499		293		1,139		—		2,343		(5)		2,338
Total revenues	749,660		80,987		255,745		183,027		—		1,269,419		(133,264)		1,136,155
Costs and expenses:
Management fees	796		—		—		901		125,372		127,069		58		127,127
Interest expense	176,230		40,913		65,390		24,303		113,313		420,149		(386)		419,763
General and administrative	41,972		15,673		4,542		80,039		15,312		157,538		336		157,874
Acquisition and investment pursuit costs	2,406		1,183		12		(29)		—		3,572		—		3,572
Costs of rental operations	3,186		—		97,136		17,354		—		117,676		—		117,676
Depreciation and amortization	1,708		342		76,246		16,109		—		94,405		—		94,405
Credit loss provision (reversal), net	47,256		(4,103)		—		—		—		43,153		—		43,153
Other expense	307		—		531		—		—		838		—		838
Total costs and expenses	273,861		54,008		243,857		138,677		253,997		964,400		8		964,408
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		78,258		78,258
Change in fair value of servicing rights	—		—		—		11,415		—		11,415		(15,130)		(3,715)
Change in fair value of investment securities, net	(15,108)		—		—		(51,403)		—		(66,511)		71,904		5,393
Change in fair value of mortgage loans, net	76,897		—		—		56,227		—		133,124		—		133,124

Earnings (loss) from unconsolidated entities	8,779		(767)		—		30,845		—		38,857		(1,540)		37,317
(Loss) gain on sale of investments and other assets, net	(961)		306		—		7,965		—		7,310		—		7,310
(Loss) gain on derivative financial instruments, net	(58,664)		(1,499)		(34,392)		(21,269)		33,646		(82,178)		—		(82,178)
Foreign currency gain (loss), net	42,205		207		(14)		(3)		—		42,395		—		42,395
Loss on extinguishment of debt	(22)		(959)		(2,185)		—		(488)		(3,654)		—		(3,654)
Other (loss) income, net	—		—		(166)		447		—		281		—		281
Total other income (loss)	53,126		(2,712)		(36,757)		34,224		33,158		81,039		133,492		214,531
Income (loss) before income taxes	528,925		24,267		(24,869)		78,574		(220,839)		386,058		220		386,278
Income tax (provision) benefit	(21,091)		(117)		—		1,011		—		(20,197)		—		(20,197)
Net income (loss)	507,834		24,150		(24,869)		79,585		(220,839)		365,861		220		366,081
Net income attributable to non-controlling interests	(14)		—		(20,394)		(13,764)		—		(34,172)		(220)		(34,392)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	507,820	$	24,150	$	(45,263)	$	65,821	$	(220,839)	$	331,689	$	—	$	331,689

The table below presents our results of operations for the year ended December 31, 2019 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	$	610,316	$	99,580	$	—	$	14,117	$	—	$	724,013	$	—	$	724,013
Interest income from investment securities	81,255		6,318		—		117,663		—		205,236		(128,607)		76,629
Servicing fees	423		—		—		69,962		—		70,385		(16,089)		54,296
Rental income	—		—		287,094		50,872		—		337,966		—		337,966
Other revenues	1,038		751		409		1,317		26		3,541		(26)		3,515
Total revenues	693,032		106,649		287,503		253,931		26		1,341,141		(144,722)		1,196,419
Costs and expenses:
Management fees	1,495		—		—		72		117,404		118,971		161		119,132
Interest expense	222,118		62,836		76,838		33,621		113,964		509,377		(648)		508,729
General and administrative	29,481		18,260		6,232		87,115		13,681		154,769		343		155,112
Acquisition and investment pursuit costs	1,351		75		217		(587)		—		1,056		—		1,056
Costs of rental operations	2,691		—		95,370		24,921		—		122,982		—		122,982
Depreciation and amortization	1,091		83		92,561		19,587		—		113,322		—		113,322
Credit loss provision, net	2,616		4,510		—		—		—		7,126		—		7,126
Other expense	307		—		1,693		365		—		2,365		—		2,365
Total costs and expenses	261,150		85,764		272,911		165,094		245,049		1,029,968		(144)		1,029,824
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		236,309		236,309
Change in fair value of servicing rights	—		—		—		(1,468)		—		(1,468)		(2,172)		(3,640)
Change in fair value of investment securities, net	(1,084)		—		—		89,206		—		88,122		(87,289)		833
Change in fair value of mortgage loans, net	10,462		—		—		61,139		—		71,601		—		71,601

Earnings (loss) from unconsolidated entities	10,649		—		(114,362)		4,166		—		(99,547)		(1,807)		(101,354)
Gain on sale of investments and other assets, net	4,619		3,041		119,746		60,622		—		188,028		—		188,028
(Loss) gain on derivative financial instruments, net	(20,325)		(3,349)		(1,284)		(7,414)		26,062		(6,310)		—		(6,310)
Foreign currency gain (loss), net	17,342		205		37		(2)		—		17,582		—		17,582
Loss on extinguishment of debt	(857)		(11,357)		(4,745)		(845)		(1,466)		(19,270)		—		(19,270)
Other (loss) income, net	—		(50)		(100)		16		(73)		(207)		—		(207)
Total other income (loss)	20,806		(11,510)		(708)		205,420		24,523		238,531		145,041		383,572
Income (loss) before income taxes	452,688		9,375		13,884		294,257		(220,500)		549,704		463		550,167
Income tax (provision) benefit	(4,818)		89		(393)		(8,110)		—		(13,232)		—		(13,232)
Net income (loss)	447,870		9,464		13,491		286,147		(220,500)		536,472		463		536,935
Net income attributable to non-controlling interests	(392)		—		(21,630)		(4,786)		—		(26,808)		(463)		(27,271)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	447,478	$	9,464	$	(8,139)	$	281,361	$	(220,500)	$	509,664	$	—	$	509,664

Schedule of Consolidated Balance Sheet by Business Segment

The table below presents our consolidated balance sheet as of December 31, 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	$	65,064	$	17,011	$	14,136	$	26,700	$	93,861	$	216,772	$	590	$	217,362
Restricted cash	39,853		43,408		954		20,337		—		104,552		—		104,552
Loans held-for-investment, net	13,499,520		2,027,426		—		9,903		—		15,536,849		—		15,536,849
Loans held-for-sale	2,590,005		—		—		286,795		—		2,876,800		—		2,876,800
Investment securities	1,155,452		31,923		—		1,165,395		—		2,352,770		(1,491,786)		860,984
Properties, net	124,503		—		887,553		154,331		—		1,166,387		—		1,166,387
Investments of consolidated affordable housing fund	—		—		1,040,309		—		—		1,040,309		—		1,040,309
Investments in unconsolidated entities	44,938		26,255		—		34,160		—		105,353		(15,256)		90,097
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	—		—		34,619		71,064		—		105,683		(42,119)		63,564
Derivative assets	34,265		128		8		391		13,424		48,216		—		48,216
Accrued interest receivable	106,251		3,207		—		947		5,988		116,393		(131)		116,262
Other assets	68,908		14,265		43,420		40,395		21,800		188,788		(162)		188,626
VIE assets, at fair value	—		—		—		—		—		—		61,280,543		61,280,543
Total Assets	$	17,728,759	$	2,283,032	$	2,020,999	$	1,950,855	$	135,073	$	24,118,718	$	59,731,679	$	83,850,397
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	57,267	$	8,917	$	14,757	$	58,920	$	49,779	$	189,640	$	56	$	189,696
Related-party payable	—		—		—		—		76,371		76,371		—		76,371
Dividends payable	—		—		—		—		147,624		147,624		—		147,624
Derivative liabilities	12,870		260		—		291		—		13,421		—		13,421
Secured financing agreements, net	9,097,985		1,225,548		787,396		714,237		773,244		12,598,410		(21,560)		12,576,850
Collateralized loan obligations and single asset securitization, net	2,210,798		405,318		—		—		—		2,616,116		—		2,616,116
Unsecured senior notes, net	—		—		—		—		1,828,590		1,828,590		—		1,828,590
VIE liabilities, at fair value	—		—		—		—		—		—		59,752,922		59,752,922
Total Liabilities	11,378,920		1,640,043		802,153		773,448		2,875,608		17,470,172		59,731,418		77,201,590
Temporary Equity: Redeemable non-controlling interests	—		—		214,915		—		—		214,915		—		214,915
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,123		3,123		—		3,123
Additional paid-in capital	1,735,397		600,412		(365,922)		(388,196)		4,091,685		5,673,376		—		5,673,376
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Accumulated other comprehensive income	40,953		—		—		—		—		40,953		—		40,953
Retained earnings (accumulated deficit)	4,573,374		42,577		1,161,334		1,413,142		(6,697,321)		493,106		—		493,106
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,349,724		642,989		795,412		1,024,946		(2,740,535)		6,072,536		—		6,072,536
Non-controlling interests in consolidated subsidiaries	115		—		208,519		152,461		—		361,095		261		361,356
Total Permanent Equity	6,349,839		642,989		1,003,931		1,177,407		(2,740,535)		6,433,631		261		6,433,892
Total Liabilities and Equity	$	17,728,759	$	2,283,032	$	2,020,999	$	1,950,855	$	135,073	$	24,118,718	$	59,731,679	$	83,850,397

The table below presents our 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

Investments in unconsolidated entities	54,407		25,095		—		44,664		—		124,166		(16,112)		108,054
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	—		—		40,370		71,123		—		111,493		(41,376)		70,117
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

Permanent 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 Permanent 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