Segment Data

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Data

Segment DataIn its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis prior to the impact of consolidating securitization VIEs under ASC 810. The segment information within this Note is reported on that basis.

The table below presents our results of operations for the three months ended March 31, 2022 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	$	202,470	$	26,983	$	—	$	4,166	$	—	$	233,619	$	—	$	233,619
Interest income from investment securities	20,836		747		—		27,389		—		48,972		(34,989)		13,983
Servicing fees	136		—		—		14,071		—		14,207		(4,215)		9,992
Rental income	1,686		—		22,365		7,529		—		31,580		—		31,580
Other revenues	52		68		50		4,654		—		4,824		(6)		4,818
Total revenues	225,180		27,798		22,415		57,809		—		333,202		(39,210)		293,992
Costs and expenses:
Management fees	277		—		—		—		55,018		55,295		—		55,295
Interest expense	68,602		11,930		6,081		6,210		33,842		126,665		(214)		126,451
General and administrative	11,602		3,511		1,056		23,443		4,628		44,240		81		44,321
Acquisition and investment pursuit costs	499		1		5		(83)		—		422		—		422
Costs of rental operations	519		—		5,001		3,770		—		9,290		—		9,290
Depreciation and amortization	294		105		8,219		3,029		—		11,647		—		11,647
Credit loss reversal, net	(3,299)		(359)		—		—		—		(3,658)		—		(3,658)
Other expense	—		—		55		—		—		55		—		55
Total costs and expenses	78,494		15,188		20,417		36,369		93,488		243,956		(133)		243,823
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		26,749		26,749
Change in fair value of servicing rights	—		—		—		(217)		—		(217)		1,301		1,084
Change in fair value of investment securities, net	(2,105)		—		—		(9,291)		—		(11,396)		11,041		(355)
Change in fair value of mortgage loans, net	(116,228)		—		—		(9,555)		—		(125,783)		—		(125,783)
Income from affordable housing fund investments	—		—		234,041		—		—		234,041		—		234,041
(Loss) earnings from unconsolidated entities	(1,340)		345		—		151		—		(844)		(66)		(910)
Gain on sale of investments and other assets, net	86,610		—		—		11,858		—		98,468		—		98,468
Gain (loss) on derivative financial instruments, net	118,395		632		17,546		27,863		(37,168)		127,268		—		127,268
Foreign currency (loss) gain, net	(27,254)		(28)		1		—		—		(27,281)		—		(27,281)
Loss on extinguishment of debt	(206)		(469)		—		(148)		—		(823)		—		(823)
Other (loss) income, net	(788)		—		—		—		—		(788)		25		(763)
Total other income (loss)	57,084		480		251,588		20,661		(37,168)		292,645		39,050		331,695
Income (loss) before income taxes	203,770		13,090		253,586		42,101		(130,656)		381,891		(27)		381,864
Income tax benefit (provision)	5,140		4		—		(2,694)		—		2,450		—		2,450
Net income (loss)	208,910		13,094		253,586		39,407		(130,656)		384,341		(27)		384,314
Net income attributable to non-controlling interests	(3)		—		(52,411)		(7,328)		—		(59,742)		27		(59,715)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	208,907	$	13,094	$	201,175	$	32,079	$	(130,656)	$	324,599	$	—	$	324,599

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 Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization 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 consolidated balance sheet as of March 31, 2022 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	$	58,377	$	38,762	$	20,077	$	27,836	$	118,573	$	263,625	$	584	$	264,209
Restricted cash	13,142		27,401		950		26,371		41,701		109,565		—		109,565
Loans held-for-investment, net	14,107,316		2,136,118		—		9,823		—		16,253,257		—		16,253,257
Loans held-for-sale	2,299,153		—		—		385,359		—		2,684,512		—		2,684,512
Investment securities	1,207,667		49,198		—		1,155,469		—		2,412,334		(1,543,145)		869,189
Properties, net	104,901		—		880,392		137,064		—		1,122,357		—		1,122,357
Investments of consolidated affordable housing fund	—		—		1,264,160		—		—		1,264,160		—		1,264,160
Investments in unconsolidated entities	43,349		27,061		—		33,878		—		104,288		(15,038)		89,250
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	—		—		33,292		69,674		—		102,966		(40,818)		62,148
Derivative assets	58,904		161		486		1,318		—		60,869		—		60,869
Accrued interest receivable	114,367		6,274		—		1,745		1,556		123,942		(141)		123,801
Other assets	135,095		10,229		59,100		33,857		23,146		261,427		(235)		261,192
VIE assets, at fair value	—		—		—		—		—		—		57,763,543		57,763,543
Total Assets	$	18,142,271	$	2,414,613	$	2,258,457	$	2,022,831	$	184,976	$	25,023,148	$	56,164,750	$	81,187,898
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	102,124	$	15,347	$	11,503	$	32,297	$	34,834	$	196,105	$	40	$	196,145
Related-party payable	—		—		—		—		56,615		56,615		—		56,615
Dividends payable	—		—		—		—		148,743		148,743		—		148,743
Derivative liabilities	10,990		225		—		145		27,349		38,709		—		38,709
Secured financing agreements, net	8,294,408		924,242		787,977		774,460		771,944		11,553,031		(21,460)		11,531,571
Collateralized loan obligations and single asset securitization, net	2,985,637		812,258		—		—		—		3,797,895		—		3,797,895
Unsecured senior notes, net	—		—		—		—		2,322,630		2,322,630		—		2,322,630
VIE liabilities, at fair value	—		—		—		—		—		—		56,185,937		56,185,937
Total Liabilities	11,393,159		1,752,072		799,480		806,902		3,362,115		18,113,728		56,164,517		74,278,245
Temporary Equity: Redeemable non-controlling interests	—		—		261,685		—		—		261,685		—		261,685
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,144		3,144		—		3,144
Additional paid-in capital	1,931,043		606,871		(373,851)		(388,580)		3,933,544		5,709,027		—		5,709,027
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Accumulated other comprehensive income	35,669		—		—		—		—		35,669		—		35,669
Retained earnings (accumulated deficit)	4,782,282		55,670		1,362,509		1,445,221		(6,975,805)		669,877		—		669,877
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,748,994		662,541		988,658		1,056,641		(3,177,139)		6,279,695		—		6,279,695
Non-controlling interests in consolidated subsidiaries	118		—		208,634		159,288		—		368,040		233		368,273
Total Permanent Equity	6,749,112		662,541		1,197,292		1,215,929		(3,177,139)		6,647,735		233		6,647,968
Total Liabilities and Equity	$	18,142,271	$	2,414,613	$	2,258,457	$	2,022,831	$	184,976	$	25,023,148	$	56,164,750	$	81,187,898

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