10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-34436

__________________________________________________

Starwood Property Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	27-0247747
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
591 West Putnam Avenue
Greenwich, Connecticut	06830
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:

(203) 422-7700

___________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	STWD	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the issuer’s common stock, $0.01 par value, outstanding as of November 4, 2022 was 309,584,298.

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Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements, including without limitation, statements concerning our operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words “believe,” “expect,” “anticipate” and other similar expressions. Forward-looking statements do not guarantee future performance, which may be materially different from that expressed in, or implied by, any such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their respective dates.

These forward-looking statements are based largely on our current beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control, and which could materially affect actual results, performance or achievements. Factors that may cause actual results to vary from our forward-looking statements include, but are not limited to:

•factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 and this Quarterly Report on Form 10-Q, including those set forth under the captions “Risk Factors”, “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”;

•the severity and duration of the pandemic of the novel strain of coronavirus (“COVID-19”), actions that may be taken by governmental authorities, businesses and others to contain the COVID-19 pandemic, including variants and resurgences, or to treat its impact and the adverse impacts that the COVID-19 pandemic has had, and will likely continue to have, on the global economy, on the borrowers underlying our real estate-related assets and infrastructure loans and tenants of our owned properties, including their ability to make payments on their loans or to pay rent, as the case may be, and on our operations and financial performance;

•defaults by borrowers in paying debt service on outstanding indebtedness;

•impairment in the value of real estate property securing our loans or in which we invest;

•availability of mortgage origination and acquisition opportunities acceptable to us;

•potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements;

•our ability to achieve the benefits that we anticipate from the prior acquisition of the project finance origination, underwriting and capital markets business of GE Capital Global Holdings, LLC;

•national and local economic and business conditions, including continued disruption from the COVID-19 pandemic;

•the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states) that affect the normal and peaceful course of international relations (such as the Russian invasion of Ukraine);

•general and local commercial and residential real estate property conditions;

•changes in federal government policies;

•changes in federal, state and local governmental laws and regulations;

•increased competition from entities engaged in mortgage lending and securities investing activities;

•changes in interest rates; and

•the availability of, and costs associated with, sources of liquidity.

In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained in this Quarterly Report on Form 10-Q will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.

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TABLE OF CONTENTS

		Page
Part I	Financial Information
Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	11
	Note 1 Business and Organization	11
	Note 2 Summary of Significant Accounting Policies	12
	Note 3 Acquisitions and Divestitures	18
	Note 4 Loans	19
	Note 5 Investment Securities	24
	Note 6 Properties	27
	Note 7 Investments of Consolidated Affordable Housing Fund	29
	Note 8 Investments in Unconsolidated Entities	30
	Note 9 Goodwill and Intangibles	31
	Note 10 Secured Borrowings	33
	Note 11 Unsecured Senior Notes	37
	Note 12 Loan Securitization/Sale Activities	39
	Note 13 Derivatives and Hedging Activity	40
	Note 14 Offsetting Assets and Liabilities	42
	Note 15 Variable Interest Entities	42
	Note 16 Related-Party Transactions	44
	Note 17 Stockholders’ Equity and Non-Controlling Interests	46
	Note 18 Earnings per Share	48
	Note 19 Accumulated Other Comprehensive Income	49
	Note 20 Fair Value	50
	Note 21 Income Taxes	58
	Note 22 Commitments and Contingencies	59
	Note 23 Segment Data	60
	Note 24 Subsequent Events	66
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	67
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	102
Item 4.	Controls and Procedures	104
Part II	Other Information
Item 1.	Legal Proceedings	105
Item 1A.	Risk Factors	105
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105
Item 3.	Defaults Upon Senior Securities	105
Item 4.	Mine Safety Disclosures	105
Item 5.	Other Information	105
Item 6.	Exhibits	106

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands, except share data)

	As of September 30,		As of December 31,
	2022		2021
Assets:
Cash and cash equivalents	$	339,710	$	217,362
Restricted cash	121,570		104,552
Loans held-for-investment, net of credit loss allowances of $92,611 and $67,270 ($53,176 and $59,225 held at fair value)	18,103,822		15,536,849
Loans held-for-sale, at fair value	2,205,684		2,876,800
Investment securities, net of credit loss allowances of $3,928 and $8,610 ($146,572 and $177,848 held at fair value)	890,128		860,984
Properties, net	1,217,426		1,166,387
Investments of consolidated affordable housing fund, at fair value	1,669,265		1,040,309
Investments in unconsolidated entities	83,164		90,097
Goodwill	259,846		259,846
Intangible assets ($18,014 and $16,780 held at fair value)	73,096		63,564
Derivative assets	251,171		48,216
Accrued interest receivable	154,148		116,262
Other assets	418,458		188,626
Variable interest entity (“VIE”) assets, at fair value	54,215,370		61,280,543
Total Assets	$	80,002,858	$	83,850,397
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	562,461	$	189,696
Related-party payable	26,146		76,371
Dividends payable	150,196		147,624
Derivative liabilities	82,766		13,421
Secured financing agreements, net	13,495,902		12,576,850
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Unsecured senior notes, net	2,326,988		1,828,590
VIE liabilities, at fair value	52,501,845		59,752,922
Total Liabilities	72,837,300		77,201,590
Commitments and contingencies (Note 22)
Temporary Equity: Redeemable non-controlling interests	344,373		214,915
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 per share, 500,000,000 shares authorized, 317,032,314 issued and 309,583,623 outstanding as of September 30, 2022 and 312,268,944 issued and 304,820,253 outstanding as of December 31, 2021	3,170		3,123
Additional paid-in capital	5,779,687		5,673,376
Treasury stock (7,448,691 shares)	(138,022)		(138,022)
Retained earnings	779,188		493,106
Accumulated other comprehensive income	22,776		40,953
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,446,799		6,072,536
Non-controlling interests in consolidated subsidiaries	374,386		361,356
Total Permanent Equity	6,821,185		6,433,892
Total Liabilities and Equity	$	80,002,858	$	83,850,397

________________________________________________________

Note: In addition to the VIE assets and liabilities which are separately presented, our condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 include assets of $4.5 billion and $3.1 billion, respectively, and liabilities of $3.7 billion and $2.6 billion, respectively, related to consolidated collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered to be VIEs. The CLOs’ and SASB’s assets can only be used to settle obligations of the CLOs and SASB, and the CLOs’ and SASB’s liabilities do not have recourse to Starwood Property Trust, Inc. Refer to Note 15 for additional discussion of VIEs.

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited, amounts in thousands, except per share data)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:
Interest income from loans	$	328,354	$	203,252	$	823,123	$	583,099
Interest income from investment securities	19,019		10,697		48,308		32,955
Servicing fees	8,427		10,473		30,972		29,739
Rental income	32,932		77,512		96,036		230,969
Other revenues	1,809		352		11,680		3,621
Total revenues	390,541		302,286		1,010,119		880,383
Costs and expenses:
Management fees	27,356		23,727		114,275		91,713
Interest expense	222,423		115,531		501,492		328,558
General and administrative	45,495		38,864		134,821		122,765
Acquisition and investment pursuit costs	1,213		214		2,152		806
Costs of rental operations	12,206		31,516		32,094		90,992
Depreciation and amortization	12,611		22,041		36,498		66,992
Credit loss provision (reversal), net	15,343		(563)		20,123		(12,363)
Other expense	—		23		1,313		708
Total costs and expenses	336,647		231,353		842,768		690,171
Other income (loss):
Change in net assets related to consolidated VIEs	37,146		28,049		72,268		80,303
Change in fair value of servicing rights	515		2,237		1,234		2,740
Change in fair value of investment securities, net	(83)		(299)		(1,683)		903
Change in fair value of mortgage loans, net	(87,474)		31,727		(326,737)		68,116
Income from affordable housing fund investments	117,527		—		658,733		—
(Loss) earnings from unconsolidated entities	(2,044)		2,042		911		6,002
Gain (loss) on sale of investments and other assets, net	13,453		(47)		112,059		26,377
Gain on derivative financial instruments, net	206,070		41,812		461,921		65,792
Foreign currency loss, net	(107,318)		(27,003)		(213,201)		(36,057)
Loss on extinguishment of debt	(212)		(499)		(1,035)		(2,197)
Other loss, net	(56,391)		(964)		(90,963)		(6,416)
Total other income	121,189		77,055		673,507		205,563
Income before income taxes	175,083		147,988		840,858		395,775
Income tax benefit (provision)	48,755		(7,501)		48,999		(6,378)
Net income	223,838		140,487		889,857		389,397
Net income attributable to non-controlling interests	(29,276)		(11,885)		(158,409)		(33,107)
Net income attributable to Starwood Property Trust, Inc.	$	194,562	$	128,602	$	731,448	$	356,290
Earnings per share data attributable to Starwood Property Trust, Inc.:
Basic	$	0.62	$	0.44	$	2.35	$	1.23
Diluted	$	0.61	$	0.44	$	2.30	$	1.22

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, amounts in thousands)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	223,838	$	140,487	$	889,857	$	389,397
Other comprehensive income (loss) (net change by component):
Available-for-sale securities	(6,194)		(824)		(18,177)		(3,571)
Foreign currency translation	—		—		—		64
Other comprehensive loss	(6,194)		(824)		(18,177)		(3,507)
Comprehensive income	217,644		139,663		871,680		385,890
Less: Comprehensive income attributable to non-controlling interests	(29,276)		(11,885)		(158,409)		(33,107)
Comprehensive income attributable to Starwood Property Trust, Inc.	$	188,368	$	127,778	$	713,271	$	352,783

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Equity

For the Three Months Ended September 30, 2022 and 2021

(Unaudited, amounts in thousands, except share data)

	Temporary Equity		Common stock			Additional Paid-in Capital		Treasury Stock			Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Total Starwood Property Trust, Inc. Stockholders’ Equity		Non- Controlling Interests		Total Permanent Equity
			Shares	Par Value				Shares	Amount
Balance, June 30, 2022	$	322,753	316,660,535	$	3,167	$	5,766,533	7,448,691	$	(138,022)	$	733,348	$	28,970	$	6,393,996	$	380,391	$	6,774,387
Proceeds from DRIP Plan	—		10,568	—		235		—	—		—		—		235		—		235
Proceeds from employee stock purchase plan	—		34,625	—		625		—	—		—		—		625		—		625
Share-based compensation	—		218,212	2		9,701		—	—		—		—		9,703		—		9,703
Manager fees paid in stock	—		108,374	1		2,593		—	—		—		—		2,594		—		2,594
Net income	23,795		—	—		—		—	—		194,562		—		194,562		5,481		200,043
Dividends declared, $0.48 per share	—		—	—		—		—	—		(148,722)		—		(148,722)		—		(148,722)
Other comprehensive loss, net	—		—	—		—		—	—		—		(6,194)		(6,194)		—		(6,194)
Distributions to non-controlling interests	(2,175)		—	—		—		—	—		—		—		—		(11,486)		(11,486)
Balance, September 30, 2022	$	344,373	317,032,314	$	3,170	$	5,779,687	7,448,691	$	(138,022)	$	779,188	$	22,776	$	6,446,799	$	374,386	$	6,821,185
Balance, June 30, 2021	$	—	295,257,898	$	2,952	$	5,248,490	7,448,691	$	(138,022)	$	(677,375)	$	41,310	$	4,477,355	$	374,345	$	4,851,700
Proceeds from DRIP Plan	—		8,161	—		209		—	—		—		—		209		—		209
Redemption of Class A Units	—		465,679	5		9,617		—	—		—		—		9,622		(9,622)		—
Equity offering costs	—		—	—		(5)		—	—		—		—		(5)		—		(5)
Share-based compensation	—		243,201	3		9,449		—	—		—		—		9,452		—		9,452
Manager fees paid in stock	—		97,151	1		2,505		—	—		—		—		2,506		—		2,506
Net income	—		—	—		—		—	—		128,602		—		128,602		11,885		140,487
Dividends declared, $0.48 per share	—		—	—		—		—	—		(139,207)		—		(139,207)		—		(139,207)
Other comprehensive loss, net	—		—	—		—		—	—		—		(824)		(824)		—		(824)
Contributions from non-controlling interests	—		—	—		—		—	—		—		—		—		52		52
Distributions to non-controlling interests	—		—	—		—		—	—		—		—		—		(17,258)		(17,258)
Balance, September 30, 2021	$	—	296,072,090	$	2,961	$	5,270,265	7,448,691	$	(138,022)	$	(687,980)	$	40,486	$	4,487,710	$	359,402	$	4,847,112

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Equity (Continued)

For the Nine Months Ended September 30, 2022 and 2021

(Unaudited, amounts in thousands, except share data)

	Temporary Equity		Common stock			Additional Paid-in Capital		Treasury Stock			Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Total Starwood Property Trust, Inc. Stockholders’ Equity		Non- Controlling Interests		Total Permanent Equity
			Shares	Par Value				Shares	Amount
Balance, December 31, 2021	$	214,915	312,268,944	$	3,123	$	5,673,376	7,448,691	$	(138,022)	$	493,106	$	40,953	$	6,072,536	$	361,356	$	6,433,892
Proceeds from ATM Agreement	—		1,415,564	14		33,307		—	—		—		—		33,321		—		33,321
Proceeds from DRIP Plan	—		33,037	—		770		—	—		—		—		770		—		770
Proceeds from employee stock purchase plan	—		34,625	—		625		—	—		—		—		625		—		625
Equity offering costs	—		—	—		(756)		—	—		—		—		(756)		—		(756)
Share-based compensation	—		1,455,814	15		29,688		—	—		—		—		29,703		—		29,703
Manager fees paid in stock	—		1,824,330	18		42,677		—	—		—		—		42,695		—		42,695
Net income	134,298		—	—		—		—	—		731,448		—		731,448		24,111		755,559
Dividends declared, $1.44 per share	—		—	—		—		—	—		(445,366)		—		(445,366)		—		(445,366)
Other comprehensive loss, net	—		—	—		—		—	—		—		(18,177)		(18,177)		—		(18,177)
Contributions from non-controlling interests	—		—	—		—		—	—		—		—		—		21,926		21,926
Distributions to non-controlling interests	(4,840)		—	—		—		—	—		—		—		—		(33,007)		(33,007)
Balance, September 30, 2022	$	344,373	317,032,314	$	3,170	$	5,779,687	7,448,691	$	(138,022)	$	779,188	$	22,776	$	6,446,799	$	374,386	$	6,821,185
Balance, December 31, 2020	$	—	292,091,601	$	2,921	$	5,209,739	7,448,691	$	(138,022)	$	(629,733)	$	43,993	$	4,488,898	$	373,678	$	4,862,576
Cumulative effect of convertible notes accounting standard update adopted January 1, 2021	—		—	—		(3,755)		—	—		2,219		—		(1,536)		—		(1,536)
Proceeds from DRIP Plan	—		29,331	—		697		—	—		—		—		697		—		697
Redemption of Class A Units	—		853,681	9		17,729		—	—		—		—		17,738		(17,738)		—
Equity offering costs	—		—	—		(27)		—	—		—		—		(27)		—		(27)
Share-based compensation	—		2,400,946	24		29,335		—	—		—		—		29,359		—		29,359
Manager fees paid in stock	—		696,531	7		16,547		—	—		—		—		16,554		—		16,554
Net income	—		—	—		—		—	—		356,290		—		356,290		33,107		389,397
Dividends declared, $1.44 per share	—		—	—		—		—	—		(416,756)		—		(416,756)		—		(416,756)
Other comprehensive loss, net	—		—	—		—		—	—		—		(3,507)		(3,507)		—		(3,507)
Contributions from non-controlling interests	—		—	—		—		—	—		—		—		—		5,590		5,590
Distributions to non-controlling interests	—		—	—		—		—	—		—		—		—		(35,235)		(35,235)
Balance, September 30, 2021	$	—	296,072,090	$	2,961	$	5,270,265	7,448,691	$	(138,022)	$	(687,980)	$	40,486	$	4,487,710	$	359,402	$	4,847,112

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)

	For the Nine Months Ended September 30,
	2022		2021
Cash Flows from Operating Activities:
Net income	$	889,857	$	389,397
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs, premiums and discounts on secured borrowings	34,705		32,141
Amortization of discounts and deferred financing costs on unsecured senior notes	6,560		5,387
Accretion of net discount on investment securities	(9,725)		(10,090)
Accretion of net deferred loan fees and discounts	(47,468)		(44,523)
Share-based compensation	29,703		29,359
Manager fees paid in stock	42,695		16,554
Change in fair value of investment securities	1,683		(903)
Change in fair value of consolidated VIEs	39,138		26,990
Change in fair value of servicing rights	(1,234)		(2,740)
Change in fair value of loans	326,737		(68,116)
Change in fair value of affordable housing fund investments	(628,956)		—
Change in fair value of derivatives	(465,986)		(70,661)
Foreign currency loss, net	213,201		36,057
Gain on sale of investments and other assets	(112,059)		(26,377)
Impairment charges on properties and related intangibles	55		—
Credit loss provision (reversal), net	20,123		(12,363)
Depreciation and amortization	39,911		67,653
Earnings from unconsolidated entities	(911)		(6,002)
Distributions of earnings from unconsolidated entities	4,935		1,623
Loss on extinguishment of debt	837		2,197
Origination and purchase of loans held-for-sale, net of principal collections	(3,641,067)		(3,027,235)
Proceeds from sale of loans held-for-sale	3,992,896		2,333,767
Changes in operating assets and liabilities:
Related-party payable	(50,225)		(15,792)
Accrued and capitalized interest receivable, less purchased interest	(131,678)		(105,039)
Other assets	(200,496)		(27,236)
Accounts payable, accrued expenses and other liabilities	491,503		14,199
Net cash provided by (used in) operating activities	844,734		(461,753)
Cash Flows from Investing Activities:
Origination, purchase and funding of loans held-for-investment	(5,007,398)		(5,635,707)
Proceeds from principal collections on loans	1,840,317		3,173,764
Proceeds from loans sold	71,008		267,349
Purchase and funding of investment securities	(86,058)		—
Proceeds from principal collections on investment securities	19,431		77,855
Proceeds from sales of real estate	166,424		60,969
Purchases and additions to properties and other assets	(17,295)		(17,259)
Investments in unconsolidated entities	(461)		—
Distribution of capital from unconsolidated entities	3,375		25,555
Cash resulting from initial consolidation of entities	617		—
Payments for purchase or termination of derivatives	(14,965)		(14,699)
Proceeds from termination of derivatives	168,607		44,742
Net cash used in investing activities	(2,856,398)		$	(2,017,431)

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited, amounts in thousands)

	For the Nine Months Ended September 30,
	2022		2021
Cash Flows from Financing Activities:
Proceeds from borrowings	$	11,603,576	$	11,654,848
Principal repayments on and repurchases of borrowings	(8,751,730)		(8,566,856)
Payment of deferred financing costs	(48,847)		(46,196)
Proceeds from common stock issuances	34,716		697
Payment of equity offering costs	(756)		(27)
Payment of dividends	(442,794)		(414,977)
Contributions from non-controlling interests	21,926		5,590
Distributions to non-controlling interests	(37,847)		(35,235)
Issuance of debt of consolidated VIEs	—		69,399
Repayment of debt of consolidated VIEs	(290,132)		(608,435)
Distributions of cash from consolidated VIEs	64,555		83,785
Net cash provided by financing activities	2,152,667		2,142,593
Net increase (decrease) in cash, cash equivalents and restricted cash	141,003		(336,591)
Cash, cash equivalents and restricted cash, beginning of period	321,914		722,162
Effect of exchange rate changes on cash	(1,637)		(1,783)
Cash, cash equivalents and restricted cash, end of period	$	461,280	$	383,788
Supplemental disclosure of cash flow information:
Cash paid for interest	$	423,326	$	276,783
Income taxes (refunded) paid, net	(8,613)		7,036
Supplemental disclosure of non-cash investing and financing activities:
Dividends declared, but not yet paid	$	150,942	$	140,465
Consolidation of VIEs (VIE asset/liability additions)	4,361,325		4,427,479
Deconsolidation of VIEs (VIE asset/liability reductions)	730,012		935,855
Net assets acquired through foreclosure, control or conversion to equity interest:
Assets acquired, less cash	145,330		36,308
Liabilities assumed	95,796		—
Lease liabilities arising from obtaining right-of-use assets	29,821		—
Loan principal collections temporarily held at master servicer	3,061		119,925
Reclassification of loans held-for-investment to loans held-for-sale	63,962		237,132
Reclassification of loans held-for-sale to loans held-for-investment	—		124,932
Transfer of loans from VIE assets to residential loans upon redemption of consolidated RMBS trusts	—		432,926
Redemption of Class A Units for common stock	—		17,738
Unsettled derivative transactions	—		4,047

See notes to condensed consolidated financial statements.

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Starwood Property Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of September 30, 2022

(Unaudited)

1. Business and Organization

Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering. We are focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in the United States (“U.S.”), Europe and Australia. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions.

We have four reportable business segments as of September 30, 2022 and we refer to the investments within these segments as our target assets:

•Real estate commercial and residential lending (the “Commercial and Residential Lending Segment”)—engages primarily in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages (“residential loans”), subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”) and other real estate and real estate-related debt investments in the U.S., Europe and Australia (including distressed or non-performing loans). Our residential loans are secured by a first mortgage lien on residential property and primarily consist of non-agency residential loans that are not guaranteed by any U.S. Government agency or federally chartered corporation.

•Infrastructure lending (the “Infrastructure Lending Segment”)—engages primarily in originating, acquiring, financing and managing infrastructure debt investments.

•Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, that are held for investment.

•Real estate investing and servicing (the “Investing and Servicing Segment”)—includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts.

Our segments exclude the consolidation of securitization variable interest entities (“VIEs”).

We are organized and conduct our operations to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements.

We are organized as a holding company and conduct our business primarily through our various wholly-owned subsidiaries. We are externally managed and advised by SPT Management, LLC (our “Manager”) pursuant to the terms of a management agreement. Our Manager is controlled by Barry Sternlicht, our Chairman and Chief Executive Officer. Our Manager is an affiliate of Starwood Capital Group Global L.P., a privately-held private equity firm founded by Mr. Sternlicht.

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2. Summary of Significant Accounting Policies

Balance Sheet Presentation of Securitization Variable Interest Entities

We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.

Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs.

The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation.

Refer to the segment data in Note 23 for a presentation of our business segments without consolidation of these VIEs.

Basis of Accounting and Principles of Consolidation

The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (our “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results for the full year.

Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, (iii) became significant since December 31, 2021 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”).

Variable Interest Entities

In addition to the securitization VIEs, we have financed pools of our loans through collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered VIEs. We also hold interests in certain other entities which are considered VIEs as the limited partners of those entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership.

We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We

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consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE.

To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE.

To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us.

Our purchased investment securities include unrated and non-investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation.

For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation.

We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change.

We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our condensed consolidated statements of operations. The residual difference shown on our condensed consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs.

We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our condensed consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.”

Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to non-performance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing

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REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP.

In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust.

REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 1% of our consolidated securitization VIE assets, with the remaining 99% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually.

Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities.

For these reasons, the assets of our securitization VIEs are presented in the aggregate.

Fair Value Option

The guidance in ASC 825, Financial Instruments, provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method.

We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for residential loans held-for-investment were made in order to maintain consistency across all our residential loans. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments.

Fair Value Measurements

We measure our mortgage-backed securities, investments of consolidated affordable housing fund, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements.

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Loans Held-for-Investment

Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless the loans are credit deteriorated or we have elected to apply the fair value option at purchase.

Loans Held-For-Sale

Our loans that we intend to sell or liquidate in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase.

Investment Securities

We designate our debt investment securities as held-to-maturity (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the condensed consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below.

Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings.

Credit Losses

Loans and Debt Securities Measured at Amortized Cost

ASC 326, Financial Instruments – Credit Losses, became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and our HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our condensed consolidated balance sheets), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible.

As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 4 for further discussion of our methodologies.

We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral.

Available-for-Sale Debt Securities

Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis.

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Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment.

Investments of Consolidated Affordable Housing Fund

On November 5, 2021, we established Woodstar Portfolio Holdings, LLC (the “Woodstar Fund”), an investment fund which holds our Woodstar multifamily affordable housing portfolios consisting of 59 properties with 15,057 units located in Central and South Florida. As managing member of the Woodstar Fund, we manage interests purchased by third party investors seeking capital appreciation and an ongoing return, for which we earn (i) a management fee based on each investor’s share of total Woodstar Fund equity; and (ii) an incentive distribution if the Woodstar Fund’s returns exceed an established threshold. In connection with the establishment of the Woodstar Fund, we entered into subscription and other related agreements with certain third party institutional investors to sell, through a feeder fund structure, an aggregate 20.6% interest in the Woodstar Fund for an initial aggregate subscription price of $216.0 million, which was adjusted to $214.2 million post-closing. The Woodstar Fund has an initial term of eight years.

Effective with the third party interest sale, the Woodstar Fund has the characteristics of an investment company under ASC 946, Financial Services – Investment Companies. Accordingly, the Woodstar Fund is required to carry the investments in its properties at fair value, with a cumulative effect adjustment between the fair value and previous carrying value of its investments recognized in stockholders’ equity as of November 5, 2021, the date of the Woodstar Fund’s change in status to an investment company. Because we are the primary beneficiary of the Woodstar Fund, which is a VIE (as discussed in Note 15), we consolidate the accounts of the Woodstar Fund into our consolidated financial statements, retaining the fair value basis of accounting for its investments. Realized and unrealized changes in the fair value of the Woodstar Fund’s property investments, and distributions thereon, are recognized in the “Income from affordable housing fund investments” caption within the other income (loss) section of our condensed consolidated statements of operations for the three and nine months ended September 30, 2022. See Note 7 for further details regarding the Woodstar Fund’s investments and related income and Note 17 with respect to its contingently redeemable non-controlling interests which are classified as “Temporary Equity” in our condensed consolidated balance sheets.

Revenue Recognition

Interest Income

Interest income on performing loans and financial instruments is accrued based on the outstanding principal amount and contractual terms of the instrument. For loans where we do not elect the fair value option, origination fees and direct loan origination costs are also recognized in interest income over the loan term as a yield adjustment using the effective interest method. When we elect the fair value option, origination fees and direct loan costs are recorded directly in income and are not deferred. Discounts or premiums associated with the purchase of non-performing loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections.

We cease accruing interest on non-performing loans at the earlier of (i) the loan becoming significantly past due or (ii) management concluding that a full recovery of all interest and principal is doubtful. Interest income on non-accrual loans in which management expects a full recovery of the loan’s outstanding principal balance is only recognized when received in cash. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and management believes all future principal and interest will be received according to the contractual loan terms.

For loans acquired with deteriorated credit quality, interest income is only recognized to the extent that our estimate of undiscounted expected principal and interest exceeds our investment in the loan. Such excess, if any, is recognized as interest income on a level-yield basis over the life of the loan.

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Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss).

Servicing Fees

We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under-performing and non-performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met.

Rental Income

Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor.

Foreign Currency Translation

Our assets and liabilities denominated in foreign currencies are translated into U.S. dollars using foreign currency exchange rates at the end of the reporting period. Income and expenses are translated at the average exchange rates for each reporting period. The effects of translating the assets, liabilities and income of our foreign investments held by entities with a U.S. dollar functional currency are included in foreign currency gain (loss) in the consolidated statements of operations or other comprehensive income (“OCI”) for debt securities available-for-sale for which the fair value option has not been elected. The effects of translating the assets, liabilities and income of our foreign investments held by entities with functional currencies other than the U.S. dollar are included in OCI. Realized foreign currency gains and losses and changes in the value of foreign currency denominated monetary assets and liabilities are included in the determination of net income and are reported as foreign currency gain (loss) in our condensed consolidated statements of operations.

Earnings Per Share

We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our senior convertible notes (the “Convertible Notes”) (see Notes 11 and 18) and (iv) non-controlling interests that are redeemable with our common stock (see Note 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.

Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 17). Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the three and nine months ended September 30, 2022 and 2021, the two-class method resulted in the most dilutive EPS calculation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our investments, which has a significant impact on the amount of income that we record and/or disclose. The fair value of assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants

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would discount the expected cash flows. Amounts ultimately realized from our investments may vary significantly from the fair values presented.

We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2022. Actual results may ultimately differ from those estimates.

Recent Accounting Developments

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and on January 11, 2021, issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope, both of which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. These ASUs are effective through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve.

On March 31, 2022, the FASB issued ASU 2022-2, Troubled Debt Restructurings and Vintage Disclosures (Topic 326). ASU 2022-2 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU is effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. Early adoption is permitted. We do not expect the application of this ASU to materially impact our consolidated financial statements as our operating practice is generally not to enter into TDRs for troubled loans.

3. Acquisitions and Divestitures

Investing and Servicing Segment Property Portfolio ("REIS Equity Portfolio")

During the three months ended September 30, 2022, we sold an operating property for $19.5 million. In connection with this sale, we recognized a total gain of $13.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2022, we sold two operating properties for $54.0 million. In connection with these sales, we recognized a total gain of $25.4 million within gain on sale of investments and other assets in our condensed consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the nine months ended September 30, 2021, we sold an operating property for $30.9 million. In connection with this sale, we recognized a gain of $9.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

Commercial and Residential Lending Segment

During the nine months ended September 30, 2022, we sold a distribution facility located in Orlando, Florida that was previously acquired in April 2019 through foreclosure of a loan with a carrying value of $18.5 million. The property was sold for $114.8 million and we recognized a gain of $86.6 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2021, we sold an operating property relating to a grocery distribution facility located in Montgomery, Alabama that was previously acquired in March 2019 through foreclosure of a loan with a carrying value of $9.0 million ($20.9 million unpaid principal balance net of an $8.3 million allowance and $3.6 million of unamortized discount) at the foreclosure date. The operating property was sold for $31.2 million and we recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

During the three and nine months ended September 30, 2022 and 2021, we had no significant acquisitions of properties or businesses.

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4. Loans

Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option for either. The following tables summarize our investments in mortgages and loans as of September 30, 2022 and December 31, 2021 (dollars in thousands):

September 30, 2022	Carrying Value		Face Amount		Weighted Average Coupon (1)		Weighted Average Life (“WAL”) (years)(2)
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	15,174,120	$	15,263,633	6.8	%	1.9
Subordinated mortgages (4)	69,793		70,966		12.5	%	2.0
Mezzanine loans (3)	438,457		435,818		11.6	%	1.0
Other	58,694		59,850		8.2	%	1.6
Total commercial loans	15,741,064		15,830,267
Infrastructure first priority loans	2,402,193		2,433,586		7.7	%	4.0
Residential loans, fair value option (5)	53,176		54,569		5.8	%	N/A	(6)
Total loans held-for-investment	18,196,433		18,318,422
Loans held-for-sale:
Residential, fair value option (5)	2,125,827		2,340,929		4.7	%	N/A	(6)
Commercial, fair value option	79,857		82,223		4.2	%	7.3
Total loans held-for-sale	2,205,684		2,423,152
Total gross loans	20,402,117		$	20,741,574
Credit loss allowances:
Commercial loans held-for-investment	(64,862)
Infrastructure loans held-for-investment	(27,749)
Total allowances	(92,611)
Total net loans	$	20,309,506
December 31, 2021
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	12,991,099	$	13,067,524	4.5	%	1.9
Subordinated mortgages (4)	70,771		72,371		10.0	%	2.8
Mezzanine loans (3)	417,504		415,155		9.4	%	1.4
Other	17,424		19,029		8.2	%	2.1
Total commercial loans	13,496,798		13,574,079
Infrastructure first priority loans	2,048,096		2,071,912		4.4	%	4.3
Residential loans, fair value option	59,225		60,133		6.0	%	N/A	(6)
Total loans held-for-investment	15,604,119		15,706,124
Loans held-for-sale:
Residential, fair value option	2,590,005		2,525,910		4.2	%	N/A	(6)
Commercial, fair value option	286,795		289,761		4.0	%	9.0
Total loans held-for-sale	2,876,800		2,815,671
Total gross loans	18,480,919		$	18,521,795
Credit loss allowances:
Commercial loans held-for-investment	(46,600)
Infrastructure loans held-for-investment	(20,670)
Total allowances	(67,270)
Total net loans	$	18,413,649

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______________________________________________________________________________________________________________________

(1)Calculated using applicable index rates as of September 30, 2022 and December 31, 2021 for variable rate loans and excludes loans for which interest income is not recognized.

(2)Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition.

(3)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.2 billion and $1.4 billion being classified as first mortgages as of September 30, 2022 and December 31, 2021, respectively.

(4)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.

(5)During the nine months ended September 30, 2022, $0.3 million of residential loans held-for-investment were reclassified into loans held-for-sale.

(6)Residential loans have a weighted average remaining contractual life of 29.1 years and 29.4 years as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands):

September 30, 2022	Carrying Value		Weighted-average Spread Above Index
Commercial loans	$	15,006,961	4.0	%
Infrastructure loans	2,402,193		3.9	%
Total variable rate loans held-for-investment	$	17,409,154	3.9	%

Credit Loss Allowances

As discussed in Note 2, we do not have a history of realized credit losses on our HFI loans and HTM securities, so we have subscribed to third party database services to provide us with industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios.

For our commercial loans, we utilize a loan loss model that is widely used among banks and commercial mortgage REITs and is marketed by a leading CMBS data analytics provider. It employs logistic regression to forecast expected losses at the loan level based on a commercial real estate loan securitization database that contains activity dating back to 1998. We provide specific loan-level inputs which include loan-to-stabilized-value (“LTV”) and debt service coverage ratio (DSCR) metrics, as well as principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates and future fundings. We also select from a group of independent five-year macroeconomic forecasts included in the model that are updated regularly based on current economic trends. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our commercial loans, as set forth in the credit quality indicator table below. A lower LTV ratio typically indicates a lower credit loss risk.

The macroeconomic forecasts do not differentiate among property types or asset classes. Instead, these forecasts reference general macroeconomic growth factors which apply broadly across all assets. For instance, although the office sector has been adversely affected by the increase in remote working arrangements, the broad macroeconomic forecasts do not account for such differentiation. Accordingly, we have selected a more adverse macroeconomic recovery forecast related to office properties in determining our credit loss allowance.

For our infrastructure loans, we utilize a database of historical infrastructure loan performance that is shared among a consortium of banks and other lenders and compiled by a major bond credit rating agency. The database is representative of industry-wide project finance activity dating back to 1983. We derive historical loss rates from the database filtered by industry, sub-industry, term and construction status for each of our infrastructure loans. Those historical loss rates reflect global

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economic cycles over a long period of time as well as average recovery rates. We categorize the results between the power and oil and gas industries, which we consider the most significant indicator of credit quality for our infrastructure loans, as set forth in the credit quality indicator table below.

As discussed in Note 2, we use a discounted cash flow or collateral value approach, rather than the industry loan loss approach described above, to determine credit loss allowances for any credit deteriorated loans.

We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the collateral. In addition, we consider the overall economic environment, real estate or industry sector, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.

The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of September 30, 2022 (dollars in thousands):

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Total		Total Amortized Cost Basis		Credit Loss Allowance
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Commercial loans:
Credit quality indicator:
LTV < 60%	$	1,697,121	$	2,540,666	$	459,943	$	892,348	$	373,102	$	680,512	$	—	$	6,643,692	$	5,272
LTV 60% - 70%	1,694,971		3,805,828		238,557		1,096,130		457,696		68,455		—		7,361,637		19,204
LTV > 70%	100,444		333,874		228,133		429,098		313,469		267,098		—		1,672,116		35,461
Credit deteriorated	—		—		—		—		—		4,925		—		4,925		4,925
Defeased and other	42,138		—		—		—		—		16,556		—		58,694		—
Total commercial	$	3,534,674	$	6,680,368	$	926,633	$	2,417,576	$	1,144,267	$	1,037,546	$	—	$	15,741,064	$	64,862
Infrastructure loans:
Credit quality indicator:
Power	$	93,258	$	222,453	$	81,611	$	288,355	$	387,126	$	409,170	$	5,488	$	1,487,461	$	5,695
Oil and gas	87,946		359,963		10,284		286,506		84,587		50,189		1,969		881,444		5,553
Credit deteriorated	—		—		—		—		—		33,288		—		33,288		16,501
Total infrastructure	$	181,204	$	582,416	$	91,895	$	574,861	$	471,713	$	492,647	$	7,457	$	2,402,193	$	27,749
Residential loans held-for-investment, fair value option															53,176		—
Loans held-for-sale															2,205,684		—
Total gross loans															$	20,402,117	$	92,611

Non-Credit Deteriorated Loans

As of September 30, 2022, we had the following loans with a combined amortized cost basis of $505.4 million that were 90 days or greater past due at September 30, 2022: (i) a $204.3 million senior loan on a retail and entertainment project in New Jersey, of which $7.3 million was converted into equity interests (see Note 8); (ii) a $222.8 million senior loan on an office building in California; (iii) a $37.8 million leasehold mortgage loan on a luxury resort in California destroyed by wildfire; (iv) $31.3 million of residential loans; and (v) a $9.2 million loan on a hospitality asset in New York that our Investing and Servicing Segment acquired as nonperforming in October 2021. Loans on nonaccrual as of September 30, 2022 include (i) - (iv) above. None of these loans are considered credit deteriorated as we presently expect to recover all amounts due.

Credit Deteriorated Loans

As of September 30, 2022, we had the following loans with a combined amortized cost basis of $38.2 million which were deemed credit deteriorated and are on nonaccrual status: (i) a $33.3 million senior loan participation secured by a natural gas-fired power plant in Massachusetts, for which interest collections were current as of September 30, 2022 but for which we

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recorded a credit loss allowance of $16.5 million ($6.4 million during the three and nine months ended September 30, 2022 and $10.1 million in 2021) based on our share of the estimated fair value of the asset; and (ii) a $4.9 million subordinated loan secured by a department store in Chicago which is fully reserved.

Foreclosures and Equity Control

In May 2022, we obtained control over the pledged equity interests of a mezzanine borrower entity related to an office building located in Texas, which resulted in our consolidating the mezzanine borrower entity including the underlying property collateral and related debt. The net carrying value of our loans related to this property totaled $50.2 million and consisted of first mortgage and mezzanine loans which are now eliminated in consolidation. In connection with the consolidation of the mezzanine borrower entity, we recorded properties of $110.8 million, lease intangible assets of $15.4 million, net working capital of $11.8 million and third-party first mortgage debt of $87.8 million in accordance with the asset acquisition provisions of ASC 805, Business Combinations.

The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands):

	Funded Commitments Credit Loss Allowance
	Loans Held-for-Investment				Total Funded Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure
Credit loss allowance at December 31, 2021	$	46,600	$	20,670	$	67,270
Credit loss provision, net	18,262		7,079		25,341
Credit loss allowance at September 30, 2022	$	64,862	$	27,749	$	92,611

	Unfunded Commitments Credit Loss Allowance (1)
	Loans Held-for-Investment
Nine Months Ended September 30, 2022	Commercial		Infrastructure		CMBS (2)		Total
Credit loss allowance at December 31, 2021	$	6,692	$	145	$	—	$	6,837
Credit loss (reversal) provision, net	(431)		(145)		40		(536)
Credit loss allowance at September 30, 2022	$	6,261	$	—	$	40	$	6,301
Memo: Unfunded commitments as of September 30, 2022 (3)	$	2,463,418	$	—	$	32,494	$	2,495,912

______________________________________________________________________________________________________________________

(1)Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.

(2)See Note 5 for further details.

(3)Represents amounts expected to be funded (see Note 22).

Loan Portfolio Activity

The activity in our loan portfolio was as follows (amounts in thousands):

	Held-for-Investment Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2021	$	13,450,198	$	2,027,426	$	59,225	$	2,876,800	$	18,413,649
Acquisitions/originations/additional funding	4,410,306		597,092		—		3,793,467		8,800,865
Capitalized interest (1)	85,454		373		1,445		402		87,674
Basis of loans sold (2)	(6,330)		—		—		(4,056,511)		(4,062,841)
Loan maturities/principal repayments	(1,558,907)		(246,127)		(6,663)		(146,184)		(1,957,881)
Discount accretion/premium amortization	40,179		7,289		—		—		47,468
Changes in fair value	—		—		(485)		(326,252)		(326,737)
Foreign currency translation gain/(loss), net	(612,669)		(4,530)		—		—		(617,199)
Credit loss provision, net	(18,262)		(7,079)		—		—		(25,341)
Transfer to/from other asset classifications or between segments	(113,767)		—		(346)		63,962		(50,151)		(3)
Balance at September 30, 2022	$	15,676,202	$	2,374,444	$	53,176	$	2,205,684	$	20,309,506

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	Held-for-Investment Loans
Nine Months Ended September 30, 2021	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2020	$	9,583,949	$	1,412,440	$	90,684	$	1,052,835	$	12,139,908
Acquisitions/originations/additional funding	5,242,378		393,329		—		3,151,361		8,787,068
Capitalized interest (1)	89,830		—		2,068		2,062		93,960
Basis of loans sold (2)	(243,378)		—		—		(2,358,790)		(2,602,168)
Loan maturities/principal repayments	(2,897,747)		(211,695)		(26,341)		(250,662)		(3,386,445)
Discount accretion/premium amortization	40,367		3,652		—		504		44,523
Changes in fair value	—		—		1,837		66,279		68,116
Foreign currency translation loss, net	(75,094)		(840)		—		—		(75,934)
Credit loss reversal (provision), net	13,238		(1,124)		—		—		12,114
Loan foreclosure and conversion to equity interest	(36,308)		—		—		—		(36,308)		(4)
Transfer to/from other asset classifications or between segments	(204,583)		93,085		23,251		519,930		431,683		(5)
Balance at September 30, 2021	$	11,512,652	$	1,688,847	$	91,499	$	2,183,519	$	15,476,517

______________________________________________________________________________________________________________________

(1)Represents accrued interest income on loans whose terms do not require current payment of interest.

(2)See Note 12 for additional disclosure on these transactions.

(3)Represents the net carrying value of first mortgage and contiguous mezzanine loans related to an office building in Texas that is eliminated as a result of consolidating the net assets of the mezzanine borrower entity upon obtaining control over its pledged equity interests in May 2022 (see discussion above).

(4)Includes (i) a $29.0 million credit deteriorated loan related to a residential conversion project which was foreclosed in April 2021 and (ii) $7.3 million of a commercial loan that was converted to equity interests in March 2021 (see Note 8) pursuant to a consensual transfer under pre-existing equity pledges of additional collateral.

(5)Net transfers represent residential loans transferred from VIE assets upon redemption of two consolidated RMBS trusts.

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5. Investment Securities

Investment securities were comprised of the following as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Carrying Value as of
	September 30, 2022		December 31, 2021
RMBS, available-for-sale	$	116,577	$	143,980
RMBS, fair value option (1)	418,480		250,424
CMBS, fair value option (1), (2)	1,280,975		1,263,606
HTM debt securities, amortized cost net of credit loss allowance of $3,928 and $8,610	743,556		683,136
Equity security, fair value	9,343		11,624
Subtotal—Investment securities	2,568,931		2,352,770
VIE eliminations (1)	(1,678,803)		(1,491,786)
Total investment securities	$	890,128	$	860,984

______________________________________________________________________________________________________________________

(1)Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810.

(2)Includes $200.0 million and $182.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of September 30, 2022 and December 31, 2021, respectively.

Purchases, sales, principal collections and redemptions for all investment securities were as follows (amounts in thousands):

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Three Months Ended September 30, 2022
Purchases/fundings	$	—	$	—	$	—	$	—	$	—	$	—
Sales	—		—		—		—		—		—
Principal collections	3,412		16,914		5,118		609		(21,802)		4,251
Three Months Ended September 30, 2021
Purchases	$	—	$	33,009	$	8,383	$	—	$	(41,392)	$	—
Sales	—		—		27,111				(27,111)		—
Principal collections	7,881		14,204		706		752		(14,555)		8,988
Redemptions	—		26,753		—		—		(26,753)		—

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Nine Months Ended September 30, 2022
Purchases/fundings	$	—	$	226,152	$	63,681	$	86,058	$	(289,833)	$	86,058
Sales	—		—		—		—		—		—
Principal collections	16,200		58,843		6,394		2,549		(64,555)		19,431
Nine Months Ended September 30, 2021
Purchases	$	—	$	112,693	$	62,465	$	—	$	(175,158)	$	—
Sales	—		30,684		38,715				(69,399)		—
Principal collections	22,995		42,235		4,429		53,321		(45,125)		77,855
Redemptions	—		38,729		—		—		(38,729)		—

______________________________________________________________________________________________________________________

(1)Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows.

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RMBS, Available-for-Sale

The Company classified all of its RMBS not eliminated in consolidation as available-for-sale as of September 30, 2022 and December 31, 2021. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”).

The tables below summarize various attributes of our investments in available-for-sale RMBS as of September 30, 2022 and December 31, 2021 (amounts in thousands):

							Unrealized Gains or (Losses) Recognized in AOCI
	Amortized Cost		Credit Loss Allowance		Net Basis		Gross Unrealized Gains		Gross Unrealized Losses		Net Fair Value Adjustment		Fair Value
September 30, 2022
RMBS	$	93,801	$	—	$	93,801	$	23,314	$	(538)	$	22,776	$	116,577
December 31, 2021
RMBS	$	103,027	$	—	$	103,027	$	41,052	$	(99)	$	40,953	$	143,980

	Weighted Average Coupon (1)		WAL  (Years) (2)
September 30, 2022
RMBS	3.7	%	7.2

______________________________________________________________________________________________________________________

(1)Calculated using the September 30, 2022 one-month LIBOR rate of 3.143% for floating rate securities.

(2)Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments.

As of September 30, 2022, approximately $102.6 million, or 88%, of RMBS were variable rate. We purchased all of the RMBS at a discount, a portion of which is accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of this accretable discount.

We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021, and $0.8 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively, recorded as management fees in the accompanying condensed consolidated statements of operations.

The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of September 30, 2022 and December 31, 2021, and for which an allowance for credit losses has not been recorded (amounts in thousands):

	Estimated Fair Value				Unrealized Losses
	Securities with a loss less than 12 months		Securities with a loss greater than 12 months		Securities with a loss less than 12 months		Securities with a loss greater than 12 months
As of September 30, 2022
RMBS	$	8,544	$	—	$	(538)	$	—
As of December 31, 2021
RMBS	$	2,478	$	—	$	(99)	$	—

As of September 30, 2022 and December 31, 2021, there were nine securities and one security, respectively, with unrealized losses reflected in the table above. After evaluating the securities, we concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, if any, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our net amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported.

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CMBS and RMBS, Fair Value Option

As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for certain CMBS and RMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of September 30, 2022, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.3 billion and $2.9 billion, respectively. As of September 30, 2022, the fair value and unpaid principal balance of RMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $418.5 million and $326.3 million, respectively. The $1.7 billion total fair value balance of CMBS and RMBS represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $20.7 million at September 30, 2022) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities.

As of September 30, 2022, $97.1 million of our CMBS were variable rate and none of our RMBS were variable rate.

HTM Debt Securities, Amortized Cost

The table below summarizes our investments in HTM debt securities as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Amortized Cost Basis		Credit Loss Allowance		Net Carrying Amount		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
September 30, 2022
CMBS	$	556,989	$	(109)	$	556,880	$	54	$	(30,800)	$	526,134
Preferred interests	120,696		(748)		119,948		125		(7,607)		112,466
Infrastructure bonds	69,799		(3,071)		66,728		588		(1,631)		65,685
Total	$	747,484	$	(3,928)	$	743,556	$	767	$	(40,038)	$	704,285
December 31, 2021
CMBS	$	538,506	$	(3,140)	$	535,366	$	195	$	(25,029)	$	510,532
Preferred interests	118,409		(2,562)		115,847		450		(2,449)		113,848
Infrastructure bonds	34,831		(2,908)		31,923		561		—		32,484
Total	$	691,746	$	(8,610)	$	683,136	$	1,206	$	(27,478)	$	656,864

The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total HTM Credit Loss Allowance
Nine Months Ended September 30, 2022
Credit loss allowance at December 31, 2021	$	3,140	$	2,562	$	2,908	$	8,610
Credit loss (reversal) provision, net	(3,031)		(1,814)		163		(4,682)
Credit loss allowance at September 30, 2022	$	109	$	748	$	3,071	$	3,928

The table below summarizes the maturities of our HTM debt securities by type as of September 30, 2022 (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total
Less than one year	$	314,060	$	90,822	$	—	$	404,882
One to three years	25,323		29,126		—		54,449
Three to five years	217,497		—		37,881		255,378
Thereafter	—		—		28,847		28,847
Total	$	556,880	$	119,948	$	66,728	$	743,556

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Equity Security, Fair Value

During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. The fair value of the investment remeasured in USD was $9.3 million and $11.6 million as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, our shares represent an approximate 2% interest in SEREF.

6. Properties

Our properties are held within the following portfolios:

Medical Office Portfolio

The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $764.8 million and debt of $595.9 million as of September 30, 2022.

Master Lease Portfolio

The Master Lease Portfolio is comprised of 16 retail properties geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Florida, Texas and Minnesota. These properties, which we acquired in September 2017, collectively comprise 1.9 million square feet and were leased back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. The Master Lease Portfolio includes total gross properties of $343.8 million and debt of $193.3 million as of September 30, 2022.

Investing and Servicing Segment Property Portfolio

The REIS Equity Portfolio is comprised of 11 commercial real estate properties and one equity interest in an unconsolidated commercial real estate property which were acquired from CMBS trusts during the previous six years. The REIS Equity Portfolio includes total gross properties and lease intangibles of $199.3 million and debt of $144.1 million as of September 30, 2022.

Commercial and Residential Lending Segment Property Portfolio

The Commercial and Residential Lending Segment Portfolio represents properties acquired through loan foreclosure or exercise of control over a mezzanine loan borrower’s pledged equity interests. This portfolio includes total gross properties and lease intangibles of $231.4 million and debt of $87.8 million as of September 30, 2022.

Woodstar Portfolios

Refer to Note 7 for a discussion of our Woodstar I and Woodstar II Portfolios which are not included in the table below.

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The table below summarizes our properties held as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Depreciable Life	September 30, 2022		December 31, 2021
Property Segment
Land and land improvements	0 - 15 years	$	175,856	$	175,810
Buildings and building improvements	0 - 45 years	853,238		851,274
Furniture & fixtures	3 - 5 years	375		260
Investing and Servicing Segment
Land and land improvements	0 - 15 years	35,313		41,771
Buildings and building improvements	3 - 40 years	134,036		149,399
Furniture & fixtures	2 - 5 years	3,253		3,143
Commercial and Residential Lending Segment
Land and land improvements	N/A	33,680		9,691
Buildings and building improvements	0 - 24 years	77,938		12,408
Construction in progress	N/A	105,039		104,088
Properties, cost		1,418,728		1,347,844
Less: accumulated depreciation		(201,302)		(181,457)
Properties, net		$	1,217,426	$	1,166,387

______________________________________________________________________________________________________________________

During the three months ended September 30, 2022, we sold an operating property for $19.5 million. In connection with this sale, we recognized a total gain of $13.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2022, we sold two operating properties within the REIS Equity Portfolio for $54.0 million and recognized a total gain of $25.4 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the nine months ended September 30, 2021, we sold an operating property within the REIS Equity Portfolio for $30.9 million and recognized a gain of $9.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

During the nine months ended September 30, 2022, we sold an operating property within the Commercial and Residential Lending Segment for $114.8 million and recognized a gain of $86.6 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2021, we sold an operating property within the Commercial and Residential Lending Segment for $31.2 million and recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. Refer to Note 3 for further discussion.

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7. Investments of Consolidated Affordable Housing Fund

As discussed in Note 2, we established the Woodstar Fund effective November 5, 2021, an investment fund which holds our Woodstar multifamily affordable housing portfolios. The Woodstar portfolios consist of the following:

Woodstar I Portfolio

The Woodstar I Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar I Portfolio, with the final 14 communities acquired during the year ended December 31, 2016. The Woodstar I Portfolio includes properties at fair value of $1.5 billion and debt at fair value of $710.6 million as of September 30, 2022.

Woodstar II Portfolio

The Woodstar II Portfolio is comprised of 27 affordable housing communities with 6,109 units concentrated primarily in Central and South Florida. We acquired eight of the 27 affordable housing communities in December 2017, with the final 19 communities acquired during the year ended December 31, 2018. The Woodstar II Portfolio includes properties at fair value of $1.3 billion and debt at fair value of $479.0 million as of September 30, 2022.

Income from the Woodstar Fund’s investments reflects the following components for the three and nine months ended September 30, 2022 (in thousands):

	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
Distributions from affordable housing fund investments	$	7,112	$	29,777
Unrealized change in fair value of investments (1)	110,415		628,956
Income from affordable housing fund investments	$	117,527	$	658,733

______________________________________________________________________________________________________________________

(1)The fair value of the Woodstar Fund’s investments are dependent upon the real estate and capital markets, which are cyclical in nature. Property and investment values are affected by, among other things, capitalization rates, the availability of capital, occupancy, rental rates and interest and inflation rates.

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8. Investments in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Participation / Ownership % (1)	Carrying value as of
		September 30, 2022		December 31, 2021
Equity method investments:
Equity interest in a natural gas power plant	10%	$	28,886	$	26,255
Investor entity which owns equity in an online real estate company	50%	5,365		5,206
Equity interest in and advances to a residential mortgage originator (2)	N/A	10,999		20,327
Various	25% - 50%	14,923		12,528
		60,173		64,316
Other equity investments:
Equity interest in a servicing and advisory business	2%	12,955		12,955
Investment funds which own equity in a loan servicer and other real estate assets (3)	4% - 6%	940		4,194
Investor entities which own equity interests in two entertainment and retail centers (4)	15%	7,320		7,320
Various	1% - 3%	1,776		1,312
		22,991		25,781
		$	83,164	$	90,097

______________________________________________________________________________________________________________________

(1)None of these investments are publicly traded and therefore quoted market prices are not available.

(2)Included a $4.5 million subordinated loan as of December 31, 2021, which was converted to an equity interest on July 1, 2022.

(3)During the nine months ended September 30, 2022, we received distributions of $7.3 million, of which $3.3 million were considered returns of capital which reduced the carrying value of two of our investments.

(4)In March 2021, we obtained equity interests in two investor entities that own interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. The interests were obtained in order to facilitate repayment of a portion of that loan for which these interests represented underlying collateral. The interests are entitled to preferred treatment in the distribution waterfall and are intended to repay us the $7.3 million principal amount of the loan plus interest. See further discussion in Note 4.

There were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of September 30, 2022.

During the three and nine months ended September 30, 2022, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election or (ii) any indicators of impairment.

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9. Goodwill and Intangibles

Goodwill

Goodwill is tested for impairment annually in the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Infrastructure Lending Segment

The Infrastructure Lending Segment’s goodwill of $119.4 million at both September 30, 2022 and December 31, 2021 represents the excess of consideration transferred over the fair value of net assets acquired on September 19, 2018 and October 15, 2018. The goodwill recognized is attributable to value embedded in the acquired Infrastructure Lending Segment’s lending platform.

LNR Property LLC (“LNR”)

The Investing and Servicing Segment’s goodwill of $140.4 million at both September 30, 2022 and December 31, 2021 represents the excess of consideration transferred over the fair value of net assets of LNR acquired on April 19, 2013. The goodwill recognized is attributable to value embedded in LNR’s existing platform, which includes a network of commercial real estate asset managers, work-out specialists, underwriters and administrative support professionals as well as proprietary historical performance data on commercial real estate assets.

Intangible Assets

Servicing Rights Intangibles

In connection with the LNR acquisition, we identified domestic servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. As of September 30, 2022 and December 31, 2021, the balance of the domestic servicing intangible was net of $41.6 million and $42.1 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of September 30, 2022 and December 31, 2021, the domestic servicing intangible had a balance of $59.6 million and $58.9 million, respectively, which represents our economic interest in this asset.

Lease Intangibles

In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties.

The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	As of September 30, 2022						As of December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Domestic servicing rights, at fair value	$	18,014	$	—	$	18,014	$	16,780	$	—	$	16,780
In-place lease intangible assets	100,450		(62,442)		38,008		94,712		(62,721)		31,991
Favorable lease intangible assets	26,649		(9,575)		17,074		23,746		(8,953)		14,793
Total net intangible assets	$	145,113	$	(72,017)	$	73,096	$	135,238	$	(71,674)	$	63,564

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The following table summarizes the activity within intangible assets for the nine months ended September 30, 2022 (amounts in thousands):

	Domestic Servicing Rights		In-place Lease Intangible Assets		Favorable Lease Intangible Assets		Total
Balance as of January 1, 2022	$	16,780	$	31,991	$	14,793	$	63,564
Acquisition (1)	—		11,910		3,520		15,430
Amortization	—		(5,327)		(1,197)		(6,524)
Impairment (2)	—		(43)		(4)		(47)
Sales	—		(523)		(38)		(561)
Changes in fair value due to changes in inputs and assumptions	1,234		—		—		1,234
Balance as of September 30, 2022	$	18,014	$	38,008	$	17,074	$	73,096

_________________________________________________

(1)    Represents lease intangibles related to an office building in Texas that are consolidated upon exercising control over a mezzanine loan borrower’s pledged equity interests in May 2022 (see Note 4).

(2)     Impairment of intangible lease assets is recognized within other expense in our condensed consolidated statement of operations.

The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands):

2022 (remainder of)	$	2,390
2023	8,629
2024	6,932
2025	5,827
2026	4,301
Thereafter	27,003
Total	$	55,082

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10. Secured Borrowings

Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of September 30, 2022 and December 31, 2021 (dollars in thousands):

													Outstanding Balance at
	Current Maturity		Extended Maturity (a)		Weighted Average Pricing		Pledged Asset Carrying Value			Maximum Facility Size			September 30, 2022			December 31, 2021
Repurchase Agreements:
Commercial Loans	Jun 2023 to Jun 2027	(b)	Sep 2025 to Dec 2030	(b)	Index + 2.09%	(c)	$	10,854,556		$	12,291,964	(d)	$	7,971,502		$	6,556,438
Residential Loans	May 2023 to Dec 2023		May 2023 to Dec 2024		Index + 2.10%		1,633,554			2,502,614			1,407,163			1,744,225
Infrastructure Loans	Sep 2024		Sep 2026		SOFR + 2.07%		379,346			650,000			316,737			379,095
Conduit Loans	Feb 2023 to Jun 2025		Feb 2024 to Jun 2026		SOFR + 2.28%		79,857			350,000			60,941			174,130
CMBS/RMBS	Jun 2023 to Apr 2032	(e)	Jun 2023 to Oct 2032	(e)	(f)		1,485,618			1,113,025			787,020		(g)	688,146
Total Repurchase Agreements							14,432,931			16,907,603			10,543,363			9,542,034
Other Secured Financing:
Borrowing Base Facility	Nov 2024		Oct 2026		SOFR + 2.11%		23,226			750,000		(h)	2,000			213,478
Commercial Financing Facilities	Dec 2023 to Aug 2025		Aug 2027 to Dec 2030		Index + 1.77%		348,619			445,295		(i)	271,918			167,476
Residential Financing Facility	Mar 2024		Mar 2027		SOFR + 2.45%		545,450			500,000			179,418			102,018
Infrastructure Financing Facilities	Jun 2025 to Oct 2025		Jun 2027 to Jul 2032		Index + 2.16%		1,002,010			1,550,000			790,995			855,646
Property Mortgages - Fixed rate	Nov 2024 to Sep 2029	(j)	N/A		4.48%		381,440			275,800			275,800			272,522
Property Mortgages - Variable rate	Nov 2022 to Mar 2025		N/A		(k)		767,293			733,750			730,315			712,493
Term Loan and Revolver	(l)		N/A		(l)		N/A		(l)	932,763			782,763			788,753
Total Other Secured Financing							3,068,038			5,187,608			3,033,209			3,112,386
							$	17,500,969		$	22,095,211		13,576,572			12,654,420
Unamortized net discount													(13,281)			(13,350)
Unamortized deferred financing costs													(67,389)			(64,220)
													$	13,495,902		$	12,576,850

______________________________________________________________________________________________________________________

(a)Subject to certain conditions as defined in the respective facility agreement.

(b)For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions.

(c)Certain facilities with an outstanding balance of $2.7 billion as of September 30, 2022 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to USD LIBOR or SOFR.

(d)Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.3 billion, subject to certain conditions. The $12.3 billion amount includes such upsizes.

(e)Certain facilities with an outstanding balance of $368.9 million as of September 30, 2022 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender’s consent. These facilities carry no maximum facility size.

(f)A facility with an outstanding balance of $263.9 million as of September 30, 2022 has a weighted average fixed annual interest rate of 3.27%. All other facilities are variable rate with a weighted average rate of Index + 1.96%.

(g)Includes: (i) $263.9 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $43.2 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15).

(h)The maximum facility size as of September 30, 2022 of $650.0 million is scheduled to decline to $450.0 million as of December 31, 2022 and may be increased to $750.0 million, subject to certain conditions.

(i)Certain facilities with an aggregate initial maximum facility size of $345.3 million may be increased to $445.3 million, subject to certain conditions. The $445.3 million amount includes such upsizes.

(j)The weighted average maturity is 4.8 years as of September 30, 2022.

(k)Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of Index + 2.26%.

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(l)Consists of: (i) a $782.8 million term loan facility that matures in July 2026, of which $388.0 million has an annual interest rate of LIBOR + 2.50% and $394.8 million has an annual interest rate of LIBOR + 3.25%, subject to a 0.75% LIBOR floor, and (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.50%. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.0 billion as of September 30, 2022.

The above table no longer reflects property mortgages of the Woodstar Portfolios which, as discussed in Notes 2 and 7, are now reflected within “Investments of consolidated affordable housing fund” on our condensed consolidated balance sheets.

In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations.

In March 2022, we amended a Residential Loans credit facility to increase the available borrowings to $500.0 million from $250.0 million and extend the initial maturity for 18 months to March 2024 with a three-year extension option. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

In June 2022, we entered into a credit facility to finance loans within the Infrastructure Lending Segment. The maximum facility size is $500.0 million and carries a three-year revolving period with two one-year extension options. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

During the nine months ended September 30, 2022, we entered into commercial credit facilities of $1.4 billion. In addition, we amended several commercial credit facilities resulting in an aggregate net upsize of $974.7 million.

Our secured financing agreements contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 71% of these agreements, do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For the 29% of repurchase agreements which do permit valuation adjustments based on capital market events, approximately 7% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreement.

For the three and nine months ended September 30, 2022, approximately $9.5 million and $28.3 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021, approximately $8.6 million and $26.9 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations.

As of September 30, 2022, Morgan Stanley Bank, N.A. held collateral sold under certain of our repurchase agreements with carrying values that exceeded the respective repurchase obligations by $694.6 million. The weighted average extended maturity of those repurchase agreements is 3.8 years.

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Collateralized Loan Obligations and Single Asset Securitization

Commercial and Residential Lending Segment

In February 2022, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2022-FL3. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of two years. During the three and nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $72.0 million of additional interests into the CLO.

In July 2021, we contributed into a single asset securitization, STWD 2021-HTS, a previously originated $230.0 million first mortgage and mezzanine loan on a portfolio of 41 extended stay hotels with $210.1 million of third party financing.

In May 2021, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2021-FL2. On the closing date, the CLO issued $1.3 billion of notes and preferred shares, of which $1.1 billion of notes was purchased by third party investors. We retained $70.1 million of notes, along with preferred shares with a liquidation preference of $127.5 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $241.2 million of additional interests into the CLO.

In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion of notes and preferred shares, of which $936.4 million of notes was purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, the reinvestment period expired, and we repaid CLO debt in the amount of $180.9 million.

Infrastructure Lending Segment

In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $101.4 million of additional interests into the CLO.

In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF1. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $76.3 million of additional interests into the CLO.

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The following table is a summary of our CLOs and our SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

September 30, 2022	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2022-FL3
Collateral assets	46	$	992,000	$	1,010,268	Index + 3.55%	(a)	February 2026	(b)
Financing	1	842,500		843,028		SOFR + 1.91%	(c)	November 2038	(d)
STWD 2021-HTS
Collateral assets	1	230,000		230,923		LIBOR + 3.84%	(a)	April 2026	(b)
Financing	1	210,091		208,735		LIBOR + 2.69%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	26	1,276,650		1,282,627		Index + 4.11%	(a)	May 2025	(b)
Financing	1	1,077,375		1,071,725		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	16	919,107		921,634		Index + 3.76%	(a)	December 2024	(b)
Financing	1	755,482		754,079		SOFR + 1.65%	(c)	July 2038	(d)
STWD 2021-SIF2
Collateral assets	31	492,805		508,186		Index + 3.72%	(a)	March 2027	(b)
Financing	1	410,000		407,034		SOFR + 2.11%	(c)	January 2033	(d)
STWD 2021-SIF1
Collateral assets	31	493,066		508,667		Index + 3.73%	(a)	September 2026	(b)
Financing	1	410,000		406,395		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	4,403,628	$	4,462,305
Financing		$	3,705,448	$	3,690,996

December 31, 2021	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2021-HTS
Collateral assets	1	$	230,000	$	230,587	LIBOR + 4.12%	(a)	April 2026	(b)
Financing	1	210,091		208,057		LIBOR + 2.48%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	25	1,272,133		1,279,678		LIBOR + 4.22%	(a)	February 2025	(b)
Financing	1	1,077,375		1,069,691		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	24	1,092,887		1,103,513		LIBOR + 4.19%	(a)	November 2024	(b)
Financing	1	936,375		933,049		SOFR + 1.63%	(c)	July 2038	(d)
STWD 2021-SIF1
Collateral assets	31	491,299		506,666		LIBOR + 3.91%	(a)	March 2026	(b)
Financing	1	410,000		405,319		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	3,086,319	$	3,120,444
Financing		$	2,633,841	$	2,616,116

______________________________________________________________________________________________________________________________

(a)Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. Of the loans financed by the STWD 2021-FL2 CLO as of September 30, 2022, 7% earned fixed-rate weighted average interest of 7.42%. Of the investments financed by the STWD 2021-SIF2 CLO as of September 30, 2022, 5% earned fixed-rate weighted average interest of 7.75%. Of the investments financed by the STWD 2021-SIF1 CLO as of September 30, 2022, 3% earned fixed-rate weighted average interest of 6.01%.

(b)Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets.

(c)Represents the weighted-average cost of financing incurred during the respective year-to-date period, inclusive of deferred issuance costs.

(d)Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date.

We incurred $37.9 million of issuance costs in connection with the CLOs and SASB, which are amortized on an effective yield basis over the estimated life of the CLOs and SASB. For the three and nine months ended September 30, 2022, approximately $2.7 million and $7.8 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021,

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approximately $1.8 million and $3.9 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. As of September 30, 2022 and December 31, 2021, our unamortized issuance costs were $21.0 million and $17.7 million, respectively.

The CLOs and SASB are considered VIEs, for which we are deemed the primary beneficiary. We therefore consolidate the CLOs and SASB. Refer to Note 15 for further discussion.

Maturities

Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands):

	Repurchase Agreements		Other Secured Financing		CLOs and SASB (a)		Total
2022 (remainder of)	$	267,383	$	7,646	$	106,346	$	381,375
2023	2,095,210		730,849		675,675		3,501,734
2024	1,041,311		124,602		432,055		1,597,968
2025	1,960,316		274,879		741,493		2,976,688
2026	2,832,539		995,455		1,588,716		5,416,710
Thereafter	2,346,604		899,778		161,163		3,407,545
Total	$	10,543,363	$	3,033,209	$	3,705,448	$	17,282,020

______________________________________________________________________________________________________________________

(a)For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature.

11. Unsecured Senior Notes

The following table is a summary of our unsecured senior notes outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Coupon Rate			Effective Rate (1)		Maturity Date	Remaining Period of Amortization	Carrying Value at
								September 30, 2022		December 31, 2021
2023 Senior Notes	5.50	%		5.71	%	11/1/2023	1.1 years	300,000		300,000
2023 Convertible Notes	4.38	%		4.57	%	4/1/2023	0.5 years	250,000		250,000
2024 Senior Notes	3.75	%		3.94	%	12/31/2024	2.3 years	400,000		400,000
2025 Senior Notes	4.75	%	(2)	5.04	%	3/15/2025	2.5 years	500,000		500,000
2026 Senior Notes	3.63	%		3.77	%	7/15/2026	3.8 years	400,000		400,000
2027 Senior Notes	4.38	%	(3)	4.49	%	1/15/2027	4.3 years	500,000		—
Total principal amount								2,350,000		1,850,000
Unamortized discount—Convertible Notes								(235)		(578)
Unamortized discount—Senior Notes								(9,954)		(10,067)
Unamortized deferred financing costs								(12,823)		(10,765)
Total carrying amount								$	2,326,988	$	1,828,590

______________________________________________________________________________________________________________________

(1)Effective rate includes the effects of underwriter purchase discount.

(2)The coupon on the 2025 Senior Notes is 4.75%.  At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%.

(3)The coupon on the 2027 Senior Notes is 4.375%.  At closing, we swapped the notes to a floating rate of SOFR + 2.95%.

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Our unsecured senior notes contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

Senior Notes

On January 25, 2022, we issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes mature on January 15, 2027. Prior to July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to July 15, 2025, we may redeem up to 40% of the 2027 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings.

Convertible Senior Notes

On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”) which remain outstanding at September 30, 2022 and mature on April 1, 2023.

We recognized interest expense of $2.9 million and $8.7 million, respectively, during the three and nine months ended September 30, 2022 and 2021 from our Convertible Notes.

The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2022 (amounts in thousands, except rates):

	September 30, 2022
	Conversion	Conversion
	Rate (1)	Price (2)
2023 Convertible Notes	38.5959	$	25.91

______________________________________________________________________________________________________________________

(1)The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture).

(2)As of September 30, 2022, the market price of the Company’s common stock was $18.22.

The if-converted value of the 2023 Convertible Notes was less than their principal amount by $74.2 million at September 30, 2022 as the closing market price of the Company’s common stock of $18.22 was less than the implicit conversion price of $25.91 per share. The if-converted value of the principal amount of the 2023 Convertible Notes was $175.8 million as of September 30, 2022. As of September 30, 2022, the net carrying amount and fair value of the 2023 Convertible Notes was $249.7 million and $245.0 million, respectively.

Upon conversion of the 2023 Convertible Notes, settlement may be made in common stock, cash or a combination of both, at the option of the Company.

Conditions for Conversion

Prior to October 1, 2022, the 2023 Convertible Notes did not satisfy any of the specified conditions for conversion. On or after October 1, 2022, holders of the 2023 Convertible Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date.

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12. Loan Securitization/Sale Activities

As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control.

Loan Securitizations

Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets.

In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold.

The following summarizes the face amount and proceeds of commercial and residential loans securitized for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

	Commercial Loans				Residential Loans
	Face Amount		Proceeds		Face Amount		Proceeds
For the Three Months Ended September 30,
2022	$	33,000	$	30,957	$	—	$	—
2021	349,225		364,287		469,663		491,901
For the Nine Months Ended September 30,
2022	$	1,038,889	$	1,022,754	$	1,905,829	$	1,913,459
2021	738,866		775,374		1,417,641		1,465,576

The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option.

Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party.

Commercial and Residential Loan Sales

Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization. The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands):

	Loan Transfers Accounted for as Sales
	Commercial Loans				Residential Loans
For the Three Months Ended September 30,	Face amount (1)		Proceeds (1)		Face Amount (2)		Proceeds (2)
2022	$	63,656	$	64,539	$	1,152	$	1,141
2021	35,700		35,356		—		—
For the Nine Months Ended September 30,
2022	$	70,636	$	71,008	$	1,057,013	$	1,056,683
2021	268,370		264,846		89,801		92,817

______________________________________________________________________________________________________________________

(1)During the three and nine months ended September 30, 2022, we sold $63.7 million of whole loan interests for proceeds of $64.5 million. During the nine months ended September 30, 2022, we also sold $7.0 million of senior interests in a first mortgage loan for proceeds of $6.5 million. During the three months ended September 30, 2021, we sold $35.7 million of senior interests in first mortgage loans for proceeds of $35.4 million. During the nine months

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ended September 30, 2021, we sold $245.8 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $243.3 million and $21.5 million, respectively.

(2)In February 2022, we sold $745.0 million of agency-eligible residential loans at face amount which was subject to a post-closing contingent sales price adjustment based on the gain or loss to the purchaser/securitization underwriter, less underwriting costs, if those loans were sold into a future securitization. Given spread widening which occurred in the residential markets since the initial sale, in lieu of the buyer executing a securitization or sale of the loans, we entered into a forward settlement agreement to acquire the remaining balance of these loans at par in June 2022. The loan purchase was subject to a financing contingency, whereby the seller was to provide us financing under a mutually agreed repurchase agreement within 120 days. If such mutually agreed financing was not completed, we would not be obligated to complete the forward settlement, and the previous post-closing contingency referenced above would have been reinstated. In October 2022, the seller provided us financing under a mutually agreed repurchase agreement and the forward settlement was completed. As of September 30, 2022, we estimated the amount of the future securitization contingency to be $88.4 million based on the fair market value of the loans at this date. As a result, we recorded a contingency loss of $55.7 million and $88.4 million within other loss, net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

During the three and nine months ended September 30, 2022, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $0.3 million and $0.1 million, respectively. During the nine months ended September 30, 2021, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $1.1 million. During the three months ended September 30, 2021, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were not material.

Infrastructure Loan Sales

There were no sales of loans by the Infrastructure Lending Segment during the three and nine months ended September 30, 2022. During the nine months ended September 30, 2021, the Infrastructure Lending Segment sold loans held-for-sale with an aggregate face amount of $2.5 million, for proceeds of $2.5 million, recognizing immaterial gains. There were no sales of loans by the Infrastructure Lending Segment during the three months ended September 30, 2021.

13. Derivatives and Hedging Activity

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both our business operations and economic conditions. Refer to Note 14 to the consolidated financial statements included in our Form 10-K for further discussion of our risk management objectives and policies.

Designated Hedges

The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of September 30, 2022 and December 31, 2021, the Company did not have any designated hedges.

Non-designated Hedges and Derivatives

We have entered into the following types of non-designated hedges and derivatives:

•Foreign exchange (“Fx”) forwards whereby we agree to buy or sell a specified amount of foreign currency for a specified amount of USD at a future date, economically fixing the USD amounts of foreign denominated cash flows we expect to receive or pay related to certain foreign denominated loan investments;

•Interest rate contracts which hedge a portion of our exposure to changes in interest rates;

•Credit instruments which hedge a portion of our exposure to the credit risk of our commercial loans held-for-sale; and

•Interest rate swap guarantees whereby we guarantee the interest rate swap obligations of certain Infrastructure Lending borrowers. Our interest rate swap guarantees were assumed in connection with the acquisition of the Infrastructure Lending Segment.

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The following table summarizes our non-designated derivatives as of September 30, 2022 (notional amounts in thousands):

Type of Derivative	Number of Contracts	Aggregate Notional Amount	Notional Currency	Maturity
Fx contracts – Buy Euros ("EUR")	17	65,538	EUR	October 2022 - June 2023
Fx contracts – Buy Pounds Sterling ("GBP")	6	46,517	GBP	October 2022 - October 2024
Fx contracts – Buy Australian dollar ("AUD")	3	5,008	AUD	October 2022 - August 2023
Fx contracts – Sell EUR	226	655,523	EUR	October 2022 - April 2026
Fx contracts – Sell GBP	208	621,465	GBP	October 2022 - April 2027
Fx contracts – Sell AUD	94	672,142	AUD	October 2022 - January 2026
Fx contracts – Sell Swiss Franc ("CHF")	27	15,128	CHF	October 2022 - November 2025
Interest rate swaps – Paying fixed rates	40	3,505,347	USD	April 2024 - June 2032
Interest rate swaps – Receiving fixed rates	2	970,000	USD	March 2025 - January 2027
Interest rate caps	6	758,000	USD	November 2022 - April 2025
Interest rate caps	1	61,000	GBP	April 2024
Credit instruments	3	49,000	USD	September 2058 - August 2061
Interest rate swap guarantees	4	267,162	USD	October 2022 - June 2025
Total	637

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Fair Value of Derivatives in an Asset Position (1) as of				Fair Value of Derivatives in a Liability Position (2) as of
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Interest rate contracts	$	7,888	$	17,728	$	73,600	$	16
Interest rate swap guarantees	—		—		—		260
Foreign exchange contracts	242,398		30,478		9,166		12,870
Credit instruments	885		10		—		275
Total derivatives	$	251,171	$	48,216	$	82,766	$	13,421

___________________________________________________

(1)Classified as derivative assets in our condensed consolidated balance sheets.

(2)Classified as derivative liabilities in our condensed consolidated balance sheets.

The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income for the Three Months Ended September 30,				Amount of Gain (Loss) Recognized in Income for the Nine Months Ended September 30,
		2022		2021		2022		2021
Interest rate contracts	Gain (loss) on derivative financial instruments	$	78,508	$	7,993	$	218,698	$	20,808
Interest rate swap guarantees	Gain (loss) on derivative financial instruments	—		(65)		260		431
Foreign exchange contracts	Gain (loss) on derivative financial instruments	127,358		33,796		242,042		44,857
Credit instruments	Gain (loss) on derivative financial instruments	204		88		921		(304)
		$	206,070	$	41,812	$	461,921	$	65,792

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14. Offsetting Assets and Liabilities

The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting, which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands):

			(ii)   Gross Amounts Offset in the Statement of Financial Position		(iii) = (i) - (ii) Net Amounts Presented in the Statement of Financial Position		(iv) Gross Amounts Not Offset in the Statement of Financial Position
	(i) Gross Amounts Recognized						Financial Instruments		Cash Collateral Received / Pledged		(v) = (iii) - (iv) Net Amount
As of September 30, 2022
Derivative assets	$	251,171	$	—	$	251,171	$	82,766	$	52,317	$	116,088
Derivative liabilities	$	82,766	$	—	$	82,766	$	82,766	$	—	$	—
Repurchase agreements	10,543,363		—		10,543,363		10,543,363		—		—
	$	10,626,129	$	—	$	10,626,129	$	10,626,129	$	—	$	—
As of December 31, 2021
Derivative assets	$	48,216	$	—	$	48,216	$	12,870	$	21,290	$	14,056
Derivative liabilities	$	13,421	$	—	$	13,421	$	12,870	$	291	$	260
Repurchase agreements	9,542,034		—		9,542,034		9,542,034		—		—
	$	9,555,455	$	—	$	9,555,455	$	9,554,904	$	291	$	260

15. Variable Interest Entities

Investment Securities

As discussed in Note 2, we evaluate all of our investments and other interests in entities for consolidation, including our investments in CMBS, RMBS and our retained interests in securitization transactions we initiated, all of which are generally considered to be variable interests in VIEs.

Securitization VIEs consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to us as the primary beneficiary. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation.

VIEs in which we are the Primary Beneficiary

The inclusion of the assets and liabilities of securitization VIEs in which we are deemed the primary beneficiary has no economic effect on us. Our exposure to the obligations of securitization VIEs is generally limited to our investment in these entities. We are not obligated to provide, nor have we provided, any financial support for any of these consolidated structures.

As discussed in Note 10, we have refinanced various pools of our commercial and infrastructure loans held-for-investment through five CLOs and one SASB, which are considered to be VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs and SASB in our financial statements as we have both (i) the power to direct the activities in our role as collateral manager, collateral advisor, or controlling class representative that most significantly impact the CLOs’ and SASB's economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the CLOs and SASB that could be potentially significant through the subordinate interests we own.

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The following table details the assets and liabilities of our consolidated CLOs and SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	39,924	$	15,297
Loans held-for-investment	4,369,537		3,073,572
Investment securities	36,934		11,426
Accrued interest receivable	15,848		8,936
Other assets	62		11,213
Total Assets	$	4,462,305	$	3,120,444
Liabilities
Accounts payable, accrued expenses and other liabilities	$	13,153	$	3,335
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Total Liabilities	$	3,704,149	$	2,619,451

Assets held by the CLOs and SASB are restricted and can be used only to settle obligations of the CLOs and SASB, including the subordinate interests owned by us. The liabilities of the CLOs and SASB are non-recourse to us and can only be satisfied from the assets of the CLOs and SASB.

We also hold controlling interests in other non-securitization entities that are considered VIEs. The Woodstar Fund, Woodstar Feeder Fund, L.P. and one of the Woodstar Fund’s indirect investees, SPT Dolphin Intermediate LLC (“SPT Dolphin”), the entity which holds the Woodstar II Portfolio, are each VIEs because the third party interest holders do not carry kick-out rights or substantive participating rights. We were deemed to be the primary beneficiary of those VIEs because we possess both the power to direct the activities of the VIEs that most significantly impact their economic performance and a significant economic interest in each entity. The Woodstar Fund had total assets of $1.7 billion, including its indirect investment in SPT Dolphin, and no significant liabilities as of September 30, 2022. As of September 30, 2022, Woodstar Feeder Fund, L.P. and its consolidated subsidiary which is also considered a VIE, Woodstar Feeder REIT, LLC, had a $0.5 billion investment in the Woodstar Fund, had no significant liabilities and had temporary equity of $0.3 billion consisting of the contingently redeemable non-controlling interests of the third party investors (see Note 17).

We also hold a 51% controlling interest in a joint venture (the “CMBS JV”) within our Investing and Servicing Segment, which is considered a VIE because the third party interest holder does not carry kick-out rights or substantive participating rights. We are deemed the primary beneficiary of the CMBS JV. This VIE had total assets of $369.5 million and liabilities of $89.0 million as of September 30, 2022. Refer to Note 17 for further discussion.

In addition to the above non-securitization entities, we have smaller VIEs with total assets of $76.6 million and liabilities of $34.4 million as of September 30, 2022.

VIEs in which we are not the Primary Beneficiary

In certain instances, we hold a variable interest in a VIE in the form of CMBS, but either (i) we are not appointed, or do not serve as, special servicer or servicing administrator or (ii) an unrelated third party has the rights to unilaterally remove us as special servicer without cause. In these instances, we do not have the power to direct activities that most significantly impact the VIE’s economic performance. In other cases, the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant. For these structures, we are not deemed to be the primary beneficiary of the VIE, and we do not consolidate these VIEs.

As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of September 30, 2022, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $20.7 million on a fair value basis.

As of September 30, 2022, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances, excluding the notional value of interest-only securities, of $4.7 billion. The

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corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations.

We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $11.9 million as of September 30, 2022, within investments in unconsolidated entities on our consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments.

16. Related-Party Transactions

Management Agreement

We are party to a management agreement (the “Management Agreement”) with our Manager. Under the Management Agreement, our Manager, subject to the oversight of our board of directors, is required to manage our day to day activities, for which our Manager receives a base management fee and is eligible for an incentive fee and stock awards. Our Manager’s personnel perform certain due diligence, legal, management and other services that outside professionals or consultants would otherwise perform. As such, in accordance with the terms of our Management Agreement, our Manager is paid or reimbursed for the documented costs of performing such tasks, provided that such costs and reimbursements are in amounts no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. Refer to Note 17 to the consolidated financial statements included in our Form 10-K for further discussion of this agreement.

Base Management Fee. For the three months ended September 30, 2022 and 2021, approximately $21.7 million and $19.2 million, respectively, was incurred for base management fees. For the nine months ended September 30, 2022 and 2021, approximately $64.9 million and $57.5 million, respectively, was incurred for base management fees. As of September 30, 2022 and December 31, 2021, there were $21.7 million and $20.3 million, respectively, of unpaid base management fees included in related-party payable in our condensed consolidated balance sheets.

Incentive Fee. For the three months ended September 30, 2022 and 2021, approximately $0.9 million and $1.0 million, respectively, was incurred for incentive fees. For the nine months ended September 30, 2022 and 2021, approximately $35.1 million and $19.1 million, respectively, was incurred for incentive fees. As of September 30, 2022 and December 31, 2021, there were $0.9 million and $51.2 million of unpaid incentive fees included in related-party payable in our condensed consolidated balance sheets.

Expense Reimbursement. For the three months ended September 30, 2022 and 2021, approximately $2.8 million and $1.8 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, approximately $6.4 million and $4.8 million, respectively, was incurred for executive compensation and other reimbursable expenses. As of September 30, 2022 and December 31, 2021, there were $3.5 million and $4.9 million, respectively, of unpaid reimbursable executive compensation and other expenses included in related-party payable in our condensed consolidated balance sheets.

Equity Awards. In certain instances, we issue RSAs to certain employees of affiliates of our Manager who perform services for us. During the nine months ended September 30, 2022 and 2021, we granted 200,972 and 981,951 RSAs, respectively, at a grant date fair value of $4.8 million and $19.6 million, respectively. There were no RSAs granted during the three months ended September 30, 2022 and 2021. Expenses related to the vesting of awards to employees of affiliates of our Manager were $1.9 million and $2.2 million during the three months ended September 30, 2022 and 2021, respectively, and are reflected in general and administrative expenses in our condensed consolidated statements of operations. Expenses related to the vesting of awards to employees of affiliates of our Manager were $6.8 million and $6.7 million during the nine months ended September 30, 2022 and 2021, respectively. These shares generally vest over a three-year period. Compensation expense related to the Starwood Property Trust, Inc. Employee Stock Purchase Plan (refer to Note 17) for employees of affiliates of our Manager were not material during the three and nine months ended September 30, 2022, and are reflected in general and administrative expenses in our condensed consolidated statements of operations.

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Manager Equity Plan

In April 2022, the Company’s shareholders approved the Starwood Property Trust, Inc. 2022 Manager Equity Plan (the “2022 Manager Equity Plan”) which replaces the Starwood Property Trust, Inc. 2017 Manager Equity Plan (the “2017 Manager Equity Plan”). In November 2020, we granted 1,800,000 RSUs to our Manager under the 2017 Manager Equity Plan. In September 2019, we granted 1,200,000 RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted 775,000 RSUs to our Manager under the 2017 Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of $4.5 million within management fees in our condensed consolidated statements of operations for both the three months ended September 30, 2022 and 2021. For the nine months ended September 30, 2022 and 2021, we recognized $13.5 million and $14.9 million, respectively, related to these awards. Refer to Note 17 for further discussion.

Investments in Loans and Securities

In March 2022, we originated a new loan on the development and recapitalization of luxury rental cabins with a total commitment of $200.0 million, of which $120.4 million was outstanding as of September 30, 2022. The loan bears interest at SOFR + 6.50% plus fees and has a term of 24 months with three one-year extension options. The proceeds were partially used to repay an existing $99.0 million first mortgage loan that we originated in February 2020. Certain members of our executive team and board of directors own equity interests in the borrower.

During the three and nine months ended September 30, 2022, the Company acquired $118.9 million and $1.1 billion, respectively, of loans from a residential mortgage originator in which it holds an equity interest. Additionally, as of September 30, 2022, the Company had outstanding residential mortgage loan purchase commitments of $51.6 million to this residential mortgage originator. Refer to Note 8 for further discussion. During the nine months ended September 30, 2022, the Company received proceeds of $4.4 million from the sale of loans to the residential mortgage originator. No proceeds were received from the sale of loans to the residential mortgage originator during the three months ended September 30, 2022.

Lease Arrangements

In March 2020, we entered into an office lease agreement with an entity which is controlled by our Chairman and CEO through majority equity ownership of the entity. The leased premises serve as our new Miami Beach office following the expiration of our former lease in Miami Beach. The lease, as amended in September 2022, is for 64,424 square feet of office space, commenced July 1, 2022 and has an initial term of 15 years from the monthly lease payment commencement date of November 1, 2022. The lease payments are based on an annual base rate of $52.00 per square foot that increases by 3% each anniversary following commencement, plus our pro rata share of building operating expenses. Prior to the execution of this lease, we engaged an independent third party leasing firm and external counsel to advise the independent directors of our board of directors on market terms for the lease.  The terms of the lease and subsequent amendment were approved by our independent directors. In April 2020, we provided a $1.9 million cash security deposit to the landlord. During the three and nine months ended September 30, 2022, we made payments to the landlord of $1.0 million and $2.9 million, respectively, for reimbursements relating to tenant improvements under the terms of the lease. During the three and nine months ended September 30, 2022, we recognized $1.0 million of rent expense with respect to this lease within general and administrative expenses in our condensed consolidated statements of operations. Upon the July 1, 2022 commencement of the lease, we recorded a $29.8 million right-of-use asset and corresponding lease liability within “Other assets” and “Accounts payable, accrued expenses and other liabilities,” respectively, on our condensed consolidated balance sheet representing the present value of the minimum required lease payments over the term of the lease.

Other Related-Party Arrangements

Highmark Residential (“Highmark”), an affiliate of our Manager, provides property management services for properties within our Woodstar I and Woodstar II Portfolios. Fees paid to Highmark are calculated as a percentage of gross receipts and are at market terms. During the three months ended September 30, 2022 and 2021, property management fees to Highmark of $1.4 million and $1.3 million, respectively, were recognized within our Woodstar Portfolios. During the nine months ended September 30, 2022 and 2021, property management fees to Highmark were $4.1 million and $2.8 million, respectively.

Refer to Note 17 to the consolidated financial statements included in our Form 10-K for further discussion of related-party agreements.

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17. Stockholders’ Equity and Non-Controlling Interests

During the nine months ended September 30, 2022, our board of directors declared the following dividends:

Declaration Date	Record Date	Ex-Dividend Date	Payment Date	Amount		Frequency
9/16/22	9/30/22	9/29/22	10/14/22	$	0.48	Quarterly
6/15/22	6/30/22	6/29/22	7/15/22	0.48		Quarterly
3/14/22	3/31/22	3/30/22	4/15/22	0.48		Quarterly

ATM Agreement

In May 2022, we entered into a Starwood Property Trust, Inc. Common Stock Sales Agreement (the “ATM Agreement”) with a syndicate of financial institutions to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. Sales of shares under the ATM Agreement are made by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of sale or at negotiated prices. The ATM Agreement replaces a similar agreement previously entered into in May 2014 with Merrill Lynch, Pierce, Fenner and Smith Incorporated. During the nine months ended September 30, 2022, we issued 1,415,564 shares of common stock under our ATM Agreement for gross proceeds of $33.3 million at an average share price of $23.54 and paid related commission costs of $0.7 million. There were no shares issued under the ATM Agreement during the three months ended September 30, 2022. During the three and nine months ended September 30, 2021, there were no shares issued under our previous ATM agreement.

Dividend Reinvestment and Direct Stock Purchase Plan

During the nine months ended September 30, 2022 and 2021, shares issued under the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”) were not material.

Employee Stock Purchase Plan

In April 2022, the Company’s shareholders approved the Starwood Property Trust, Inc. Employee Stock Purchase Plan (the “ESPP”) which allows eligible employees to purchase common stock of the Company at a discounted purchase price. The discounted purchase price of a share of the Company's common stock is 85% of the fair market value (closing market price) at the lower of the beginning or the end of the quarterly offering period. Participants may purchase shares not exceeding an aggregate fair market value of $25,000 in any calendar year. The maximum aggregate number of shares subject to issuance in accordance with the ESPP is 2,000,000 shares.

During the three and nine months ended September 30, 2022, 34,625 shares of common stock were purchased by participants at a discounted purchase price of $18.04 per share. The Company recognized $0.1 million of compensation expense related to its ESPP during such periods based on the estimated fair value of the discounted purchase options granted to the participants as of the beginning of the quarterly offering period determined using the Black-Scholes option pricing model.

As of September 30, 2022, there were 2.0 million shares of common stock available for future issuance through the ESPP.

Equity Plans

In April 2022, the Company’s shareholders approved the 2022 Manager Equity Plan and the Starwood Property Trust, Inc. 2022 Equity Plan (the “2022 Equity Plan”), which allow for the issuance of up to 18,700,000 stock options, stock appreciation rights, RSAs, RSUs or other equity-based awards or any combination thereof to the Manager, directors, employees, consultants or any other party providing services to the Company. The 2022 Manager Equity Plan succeeds and replaces the 2017 Manager Equity Plan and the 2022 Equity Plan succeeds and replaces the Starwood Property Trust, Inc. 2017 Equity Plan (the “2017 Equity Plan”).

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The table below summarizes our share awards granted or vested under the 2017 Manager Equity Plan (none under the 2022 Manager Equity Plan) during the nine months ended September 30, 2022 and 2021 (dollar amounts in thousands):

Grant Date	Type	Amount Granted	Grant Date Fair Value		Vesting Period
November 2020	RSU	1,800,000	$	30,078	3 years
September 2019	RSU	1,200,000	29,484		(1)
April 2018	RSU	775,000	16,329		3 years

______________________________________________________________________________________________________________________

(1)Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period.

Schedule of Non-Vested Shares and Share Equivalents (1)

	2022 Equity Plan	2022 Manager Equity Plan	Total	Weighted Average Grant Date Fair Value (per share)
Balance as of January 1, 2022	2,406,730	1,295,277	3,702,007	$	18.90
Granted	829,805	—	829,805	23.54
Vested	(646,771)	(695,277)	(1,342,048)	18.55
Forfeited	(69,268)	—	(69,268)	19.49
Balance as of September 30, 2022	2,520,496	600,000	3,120,496	20.27

(1)    Equity-based award activity for awards granted under the 2017 Equity Plan is reflected within the 2022 Equity Plan column, and for awards granted under the 2017 Manager Equity Plan, within the 2022 Manager Equity Plan column.

As of September 30, 2022, there were 18.7 million shares of common stock available for future grants under the 2022 Manager Equity Plan and the 2022 Equity Plan.

Non-Controlling Interests in Consolidated Subsidiaries

As discussed in Note 2, on November 5, 2021 we sold a 20.6% non-controlling interest in the Woodstar Fund to third party investors for net cash proceeds of $214.2 million. Under the Woodstar Fund operating agreement, such interests are contingently redeemable by us, at the option of the interest holder, for cash at liquidation fair value if any assets remain upon termination of the Woodstar Fund. The Woodstar Fund operating agreement specifies an eight-year term with two one-year extension options, the first at our option and the second subject to consent of an advisory committee representing the non-controlling interest holders. Accordingly, these contingently redeemable non-controlling interests have been classified as “Temporary Equity” in our condensed consolidated balance sheets and represent the fair value of the Woodstar Fund’s net assets allocable to those interests. During the three and nine months ended September 30, 2022, net income attributable to these non-controlling interests was $23.8 million and $134.3 million, respectively.

In connection with our Woodstar II Portfolio acquisitions, we issued 10.2 million Class A Units in our subsidiary, SPT Dolphin, and rights to receive an additional 1.9 million Class A Units if certain contingent events occur. As of September 30, 2022, all of the 1.9 million contingent Class A Units were issued. The Class A Units are redeemable for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. There were 9.8 million Class A Units outstanding as of September 30, 2022. The outstanding Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our consolidated balance sheets, the balance of which was $208.5 million as of September 30, 2022 and December 31, 2021.

To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, we recognized net income attributable to non-controlling interests of $4.7 million and $14.1 million, respectively, associated with these Class A Units. During the three and nine months ended September 30, 2021, we recognized net income attributable to non-controlling interests of $4.7 million and $14.7 million, respectively, associated with these Class A Units.

As discussed in Note 15, we hold a 51% controlling interest in the CMBS JV within our Investing and Servicing Segment. Because the CMBS JV is deemed a VIE for which we are the primary beneficiary, the 49% interest of our joint venture partner is reflected as a non-controlling interest in consolidated subsidiaries on our condensed consolidated balance sheets, and any net income attributable to this 49% joint venture interest is reflected within net income attributable to non-

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controlling interests in our condensed consolidated statement of operations. The non-controlling interests in the CMBS JV were $146.6 million and $131.9 million as of September 30, 2022 and December 31, 2021, respectively. During the three and nine months ended September 30, 2022, net (loss) income attributable to these non-controlling interests was $(0.4) million and $4.5 million, respectively. During the three and nine months ended September 30, 2021, net income attributable to these non-controlling interests was $6.7 million and $16.7 million, respectively.

18. Earnings per Share

The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Basic Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Basic earnings	$	191,633	$	126,967	$	715,775	$	350,939
Diluted Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Add: Interest expense on Convertible Notes	2,906		2,901		8,724		8,717
Add: Undistributed earnings to participating shares	1,818		—		11,629		—
Less: Undistributed earnings reallocated to participating shares	(1,763)		—		(11,280)		—
Diluted earnings	$	194,594	$	129,868	$	724,848	$	359,656
Number of Shares:
Basic — Average shares outstanding	306,704		285,676		304,908		284,577
Effect of dilutive securities — Convertible Notes	9,649		9,649		9,649		9,649
Effect of dilutive securities — Contingently issuable shares	23		19		23		19
Effect of dilutive securities — Unvested non-participating shares	199		104		161		148
Diluted — Average shares outstanding	316,575		295,448		314,741		294,393
Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.62	$	0.44	$	2.35	$	1.23
Diluted	$	0.61	$	0.44	$	2.30	$	1.22

As of September 30, 2022 and 2021, participating shares of 12.4 million and 13.3 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at both September 30, 2022 and 2021 included 9.8 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17.

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19. Accumulated Other Comprehensive Income

The changes in AOCI by component are as follows (amounts in thousands):

	Cumulative Unrealized Gain (Loss) on Available-for- Sale Securities		Foreign Currency Translation		Total
Three Months Ended September 30, 2022
Balance at July 1, 2022	$	28,970	$	—	$	28,970
OCI before reclassifications	(6,194)		—		(6,194)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(6,194)		—		(6,194)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Three Months Ended September 30, 2021
Balance at July 1, 2021	$	41,310	$	—	$	41,310
OCI before reclassifications	(822)		—		(822)
Amounts reclassified from AOCI	(2)		—		(2)
Net period OCI	(824)		—		(824)
Balance at September 30, 2021	$	40,486	$	—	$	40,486
Nine Months Ended September 30, 2022
Balance at January 1, 2022	$	40,953	$	—	$	40,953
OCI before reclassifications	(18,177)		—		(18,177)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(18,177)		—		(18,177)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Nine Months Ended September 30, 2021
Balance at January 1, 2021	$	44,057	$	(64)	$	43,993
OCI before reclassifications	(3,569)		—		(3,569)
Amounts reclassified from AOCI	(2)		64		62
Net period OCI	(3,571)		64		(3,507)
Balance at September 30, 2021	$	40,486	$	—	$	40,486

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20. Fair Value

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level III—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

Valuation Process

We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

Pricing Verification—We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market.

Unobservable Inputs—Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs.

Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date.

Fair Value on a Recurring Basis

We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows:

Loans held-for-sale, commercial

We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available.

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Loans held-for-sale and loans held-for-investment, residential

We measure the fair value of our residential loans held-for-sale and held-for-investment based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III.

RMBS

RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III.

CMBS

CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable.

Equity security

The equity security is publicly registered and traded in the U.S. and its market price is listed on the London Stock Exchange. The security has been classified within Level I.

Woodstar Fund Investments

The fair value of investments held by the Woodstar Fund is determined based on observable and unobservable market inputs. The initial fair value of the Woodstar Fund's investments at its November 5, 2021 establishment date was determined by reference to the purchase price paid by third party investors, which was consistent with both a recent external appraisal as well as our extensive marketing efforts to sell interests in the Woodstar Fund, plus working capital.

For the properties, the third party appraisal applied the income capitalization approach with corroborative support from the sales comparison approach. The cost approach was not employed, as it is typically not emphasized by potential investors in the multifamily affordable housing sector. The income capitalization approach estimates an income stream for a property over a 10-year period and discounts this income plus a reversion (presumed sale) into a present value at a risk adjusted discount rate. Terminal capitalization rates and discount rates utilized in this approach are derived from market transactions as well as other financial and industry data.

For secured financing, the third party appraisal discounted the contractual cash flows at the interest rate at which such arrangements would bear if executed in the current market. The fair value of investment level working capital is assumed to approximate carrying value due to its primarily short-term monetary nature. The fair value of interest rate derivatives is determined using the methodology described in the Derivatives discussion below.

Internal valuations at interim quarter ends are prepared by management. The valuation of properties is based on a direct income capitalization approach, whereby a direct capitalization market rate is applied to annualized in-place net operating income at the portfolio level. The direct capitalization rate is initially calibrated to the implied rate from the latest appraisal and

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adjusted for subsequent changes in current market capitalization rates for sales of comparable multifamily properties. The valuations of secured financing agreements, working capital and interest rate derivatives are consistent with the methodologies described in the paragraph above.

Given the significance of the unobservable inputs used in the respective valuations, the Woodstar Fund’s investments have been classified within Level III of the fair value hierarchy.

Domestic servicing rights

The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy.

Derivatives

The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

The valuation of over the counter derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2022 and December 31, 2021, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy.

Liabilities of consolidated VIEs

Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels.

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For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable.

Assets of consolidated VIEs

The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy.

Fair Value Only Disclosed

We determine the fair value of our financial instruments and assets where fair value is disclosed as follows:

Loans held-for-investment

We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy.

HTM debt securities

We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies and infrastructure bonds using the same methodology described for our loans held-for-investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis.

Secured financing agreements, CLOs and SASB

The fair value of the secured financing agreements, CLOs and SASB are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy.

Unsecured senior notes

The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II of the fair value hierarchy.

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Fair Value Disclosures

The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,258,860	$	—	$	70,389	$	2,188,471
RMBS	116,577		—		—		116,577
CMBS	20,652		—		—		20,652
Equity security	9,343		9,343		—		—
Woodstar Fund investments	1,669,265		—		—		1,669,265
Domestic servicing rights	18,014		—		—		18,014
Derivative assets	251,171		—		251,171		—
VIE assets	54,215,370		—		—		54,215,370
Total	$	58,559,252	$	9,343	$	321,560	$	58,228,349
Financial Liabilities:
Derivative liabilities	$	82,766	$	—	$	82,766	$	—
VIE liabilities	52,501,845		—		47,008,848		5,492,997
Total	$	52,584,611	$	—	$	47,091,614	$	5,492,997

	December 31, 2021
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,936,025	$	—	$	—	$	2,936,025
RMBS	143,980		—		—		143,980
CMBS	22,244		—		—		22,244
Equity security	11,624		11,624		—		—
Woodstar Fund investments	1,040,309		—		—		1,040,309
Domestic servicing rights	16,780		—		—		16,780
Derivative assets	48,216		—		48,216		—
VIE assets	61,280,543		—		—		61,280,543
Total	$	65,499,721	$	11,624	$	48,216	$	65,439,881
Financial Liabilities:
Derivative liabilities	$	13,421	$	—	$	13,421	$	—
VIE liabilities	59,752,922		—		54,972,701		4,780,221
Total	$	59,766,343	$	—	$	54,986,122	$	4,780,221

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The changes in financial assets and liabilities classified as Level III are as follows for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Three Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2022 balance	$	2,197,501	$	124,439	$	20,965	$	1,558,850	$	17,499	$	57,993,563	$	(5,980,634)	$	55,932,183
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(87,474)		—		(84)		110,415		515		(3,778,193)		824,214		(2,930,607)
Net accretion	—		1,744		—		—		—		—		—		1,744
Included in OCI	—		(6,194)		—		—		—		—		—		(6,194)
Purchases / Originations	186,397		—		—		—		—		—		—		186,397
Sales	(1,266)		—		—		—		—		—		—		(1,266)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(37,998)		(3,412)		(229)		—		—		—		(4,887)		(46,526)
Transfers into Level III	1,700		—		—		—		—		—		(573,303)		(571,603)
Transfers out of Level III	(70,389)		—		—		—		—		—		241,613		171,224
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		—		—		—
Deconsolidation of VIEs	—		—		—		—		—		—		—		—
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(92,162)	$	1,744	$	(84)	$	110,415	$	515	$	(3,778,193)	$	824,214	$	(2,933,551)
Included in OCI	$	—	$	(6,194)	$	—	$	—	$	—	$	—	$	—	$	(6,194)

Three Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2021 balance	$	767,821	$	154,704	$	18,965	$	—	$	13,705	$	63,493,796	$	(4,836,192)	$	59,612,799
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	31,727		—		(790)		—		2,237		(1,601,734)		580,581		(987,979)
Net accretion	—		2,584		—		—		—		—		—		2,584
Included in OCI	—		(824)		—		—		—		—		—		(824)
Purchases / Originations	1,783,772		—		—		—		—		—		—		1,783,772
Sales	(856,187)		—		—		—		—		—		—		(856,187)
Issuances	—		—		—		—		—		—		(27,112)		(27,112)
Cash repayments / receipts	(50,395)		(7,881)		(356)		—		—		—		(351)		(58,983)
Transfers into Level III	4,414		—		—		—		—		—		(112,562)		(108,148)
Transfers out of Level III	(133,863)		—		—		—		—		—		349,922		216,059
Transfers within Level III	258,927		—		—						(258,927)		—		—
Consolidation of VIEs	—		—		—		—		—		1,649,200		(520,325)		1,128,875
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	12,571	$	2,582	$	409	$	—	$	2,237	$	(1,601,734)	$	580,581	$	(1,003,354)
Included in OCI	$	—	$	(822)	$	—	$	—	$	—	$	—	$	—	$	(822)

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Nine Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2022 balance	$	2,936,025	$	143,980	$	22,244	$	1,040,309	$	16,780	$	61,280,543	$	(4,780,221)	$	60,659,660
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(326,737)		—		(1,441)		628,956		1,234		(10,696,486)		1,746,436		(8,648,038)
Net accretion	—		6,974		—		—		—		—		—		6,974
Included in OCI	—		(18,177)		—		—		—		—		—		(18,177)
Purchases / Originations	3,793,467		—		—		—		—		—		—		3,793,467
Sales	(3,588,953)		—		—		—		—		—		—		(3,588,953)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(152,847)		(16,200)		(681)		—		—		—		(5,712)		(175,440)
Transfers into Level III	1,847		—		—		—		—		—		(1,203,420)		(1,201,573)
Transfers out of Level III	(474,331)		—		—		—		—		—		559,062		84,731
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		4,361,325		(1,810,101)		2,551,224
Deconsolidation of VIEs	—		—		530		—		—		(730,012)		959		(728,523)
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(258,652)	$	6,641	$	(911)	$	628,956	$	1,234	$	(10,696,486)	$	1,746,436	$	(8,572,782)
Included in OCI	$	—	$	(17,771)	$	—	$	—	$	—	$	—	$	—	$	(17,771)

Nine Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2021 balance	$	1,022,979	$	167,349	$	19,457	$	—	$	13,202	$	64,238,328	$	(2,019,876)	$	63,441,439
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	68,116		—		(98)		—		2,740		(4,952,071)		647,555		(4,233,758)
Net accretion	—		7,800		—		—		—		—		—		7,800
Included in OCI	—		(3,571)		—		—		—		—		—		(3,571)
Purchases / Originations	3,151,346		—		—		—		—		—		—		3,151,346
Sales	(2,333,767)		—		—		—		—		—		—		(2,333,767)
Issuances	—		—		—		—		—		—		(38,715)		(38,715)
Cash repayments / receipts	(153,723)		(22,995)		(1,540)		—		—		—		(2,889)		(181,147)
Transfers into Level III	4,413		—		—		—		—		—		(2,953,709)		(2,949,296)
Transfers out of Level III	(384,549)		—		—		—		—		—		864,153		479,604
Transfers within Level III	431,401		—		—		—		—		(431,401)		—		—
Consolidation of VIEs	—		—		—		—		—		4,427,479		(1,062,558)		3,364,921
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	13,234	$	7,793	$	1,102	$	—	$	2,740	$	(4,952,071)	$	647,555	$	(4,279,647)
Included in OCI	$	—	$	(3,563)	$	—	$	—	$	—	$	—	$	—	$	(3,563)

Amounts were transferred from Level II to Level III due to a decrease in the observable relevant market activity and amounts were transferred from Level III to Level II due to an increase in the observable relevant market activity.

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The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands):

	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets not carried at fair value:
Loans	$	18,050,646	$	17,843,579	$	15,477,624	$	15,526,235
HTM debt securities	743,556		704,285		683,136		656,864
Financial liabilities not carried at fair value:
Secured financing agreements, CLOs and SASB	$	17,186,898	$	16,953,413	$	15,192,966	$	15,266,440
Unsecured senior notes	2,326,988		2,119,427		1,828,590		1,893,065

The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands):

	Carrying Value at September 30, 2022		Valuation Technique	Unobservable Input	Range (Weighted Average) as of (1)
					September 30, 2022	December 31, 2021
Loans under fair value option	$	2,188,471	Discounted cash flow, market pricing	Coupon (d)	2.8% - 9.3% (4.7%)	2.6% - 9.2% (4.2%)
				Remaining contractual term (d)	5.5 - 39.8 years (29.0 years)	6.3 - 39.9 years (27.4 years)
				FICO score (a)	585 - 900 (745)	582 - 829 (748)
				LTV (b)	5% - 93% (68%)	1% - 94% (66%)
				Purchase price (d)	80.0% - 108.6% (101.8%)	80.0% - 108.6% (102.3%)
RMBS	116,577		Discounted cash flow	Constant prepayment rate (a)	3.0% - 13.0% (5.9%)	4.8% - 19.2% (9.9%)
				Constant default rate (b)	1.3% - 4.4% (2.0%)	0.8% - 6.0% (2.1%)
				Loss severity (b)	0% - 98% (18%) (f)	0% - 86% (26%) (f)
				Delinquency rate (c)	7% - 29% (16%)	10.4% - 35% (19%)
				Servicer advances (a)	29% - 78% (54%)	19% - 83% (52%)
				Annual coupon deterioration (b)	0% - 3.2% (0.1%)	0% - 1.7% (0.1%)
				Putback amount per projected total collateral loss (e)	0% - 8% (0.6%)	0% - 8% (0.5%)
CMBS	20,652		Discounted cash flow	Yield (b)	0% - 186.7% (9.0%)	0% - 613.6% (9.3%)
				Duration (c)	0 - 8.0 years (3.0 years)	0 - 7.2 years (5.2 years)
Woodstar Fund investments	1,669,265		Discounted cash flow	Discount rate - properties (b)	N/A	5.8% - 6.3% (6.0%)
				Discount rate - debt (a)	5.3% - 6.6% (5.7%)	2.6% - 3.3% (2.9%)
				Terminal capitalization rate (b)	N/A	4.8% - 5.3% (4.9%)
				Direct capitalization rate (b)	4.2% (4.2%)	4.1% - 4.2% (4.2%) (Implied)
Domestic servicing rights	18,014		Discounted cash flow	Debt yield (a)	8.00% (8.00%)	7.30% (7.30%)
				Discount rate (b)	15% (15%)	15% (15%)
VIE assets	54,215,370		Discounted cash flow	Yield (b)	0% - 486.8% (14.8%)	0% - 615.3% (13.0%)
				Duration (c)	0 - 11.0 years (2.9 years)	0 - 11.0 years (3.2 years)
VIE liabilities	5,492,997		Discounted cash flow	Yield (b)	0% - 486.8% (9.2%)	0% - 615.3% (6.4%)
				Duration (c)	0 - 11.0 years (2.0 years)	0 - 11.0 years (2.3 years)

______________________________________________________________________________________________________________________

(1)Unobservable inputs were weighted by the relative carrying value of the instruments as of September 30, 2022 and December 31, 2021.

Information about Uncertainty of Fair Value Measurements

(a)Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.

(b)Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement.

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(c)Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question.

(d)This unobservable input is not subject to variability as of the respective reporting dates.

(e)Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio.

(f)3% and 18% of the portfolio falls within a range of 45% - 80% as of September 30, 2022 and December 31, 2021, respectively.

21. Income Taxes

Certain of our domestic subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT.

Our TRSs engage in various real estate-related operations, including special servicing of commercial real estate, originating and securitizing mortgage loans, and investing in entities which engage in real estate-related operations. As of September 30, 2022 and December 31, 2021, approximately $2.7 billion and $3.2 billion, respectively, of assets were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs.

The following table is a reconciliation of our U.S. federal income tax provision determined using our statutory federal tax rate to our reported income tax provision (benefit) for the three and nine months ended September 30, 2022 and 2021 (dollars in thousands):

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2022				2021				2022				2021
Federal statutory tax rate	$	36,768	21.0	%	$	31,078	21.0	%	$	176,580	21.0	%	$	83,113	21.0	%
REIT and other non-taxable income	(75,642)		(43.1)	%	(24,527)		(16.6)	%	(213,073)		(25.3)	%	(73,046)		(18.5)	%
State income taxes	(12,772)		(7.3)	%	2,153		1.5	%	(11,990)		(1.4)	%	3,308		0.8	%
Federal benefit of state tax deduction	2,682		1.5	%	(452)		(0.3)	%	2,518		0.3	%	(695)		(0.2)	%
Intra-entity transfers	—		—	%	(312)		(0.2)	%	(3,868)		(0.5)	%	(6,364)		(1.5)	%
Other	209		0.1	%	(439)		(0.3)	%	834		0.1	%	62		—	%
Effective tax rate	$	(48,755)	(27.8)	%	$	7,501	5.1	%	$	(48,999)	(5.8)	%	$	6,378	1.6	%

For the three and nine months ended September 30, 2022, we have utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate our interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that due to market dislocation and volatility, particularly with respect to the Company's residential assets that are housed in TRSs, the use of the discrete method is more appropriate at this time than the annual effective tax rate method due to the high degree of uncertainty in estimating annual pretax earnings.

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22. Commitments and Contingencies

As of September 30, 2022, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $2.8 billion, of which we expect to fund $2.5 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Additionally, as of September 30, 2022, our Commercial and Residential Lending Segment had outstanding residential loan purchase commitments of $51.6 million.

As discussed in Note 12, in February 2022, our Commercial and Residential Lending Segment sold $745.0 million of agency-eligible residential loans at face amount which was subject to a post-closing contingent sales price adjustment based on the gain or loss to the purchaser/securitization underwriter, less underwriting costs, if those loans were sold into a future securitization. Given spread widening which occurred in the residential markets since the initial sale, in lieu of the buyer executing a securitization or sale of the loans, we entered into a forward settlement agreement to acquire the remaining balance of these loans at par in June 2022. The loan purchase was subject to a financing contingency, whereby the seller was to provide us financing under a mutually agreed repurchase agreement within 120 days. If such mutually agreed financing was not completed, we would not be obligated to complete the forward settlement, and the previous post-closing contingency referenced above would have been reinstated. In October 2022, the seller provided us financing under a mutually agreed repurchase agreement and the forward settlement was completed. As of September 30, 2022, we estimated the amount of the future securitization contingency to be $88.4 million based on the fair market value of the loans at this date. As a result, we recorded a contingency loss of $55.7 million and $88.4 million within other loss, net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2022, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $138.6 million under revolvers and letters of credit (“LCs”). As of September 30, 2022, $8.8 million of revolvers and LCs were outstanding. Additionally, as of September 30, 2022, our Infrastructure Lending Segment had outstanding loan purchase commitments of $18.2 million.

In connection with the Infrastructure Lending Segment acquisition, we assumed guarantees of certain borrowers’ performance under existing interest rate swaps. As of September 30, 2022, we had four outstanding guarantees on interest rate swaps maturing between October 2022 and June 2025. Refer to Note 13 for further discussion.

Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower.

Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.

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23. Segment Data

In 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 September 30, 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	$	284,197	$	43,018	$	—	$	1,139	$	—	$	328,354	$	—	$	328,354
Interest income from investment securities	28,560		1,204		—		27,585		—		57,349		(38,330)		19,019
Servicing fees	142		—		—		11,830		—		11,972		(3,545)		8,427
Rental income	1,944		—		22,886		8,102		—		32,932		—		32,932
Other revenues	138		129		54		1,491		—		1,812		(3)		1,809
Total revenues	314,981		44,351		22,940		50,147		—		432,419		(41,878)		390,541
Costs and expenses:
Management fees	227		—		—		—		27,129		27,356		—		27,356
Interest expense	145,107		22,500		9,266		6,601		39,166		222,640		(217)		222,423
General and administrative	16,458		3,588		933		20,046		4,384		45,409		86		45,495
Acquisition and investment pursuit costs	1,164		2		—		47		—		1,213		—		1,213
Costs of rental operations	2,633		—		5,793		3,780		—		12,206		—		12,206
Depreciation and amortization	1,629		101		8,161		2,720		—		12,611		—		12,611
Credit loss provision, net	8,401		6,942		—		—		—		15,343		—		15,343
Total costs and expenses	175,619		33,133		24,153		33,194		70,679		336,778		(131)		336,647
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		37,146		37,146
Change in fair value of servicing rights	—		—		—		357		—		357		158		515
Change in fair value of investment securities, net	16,398		—		—		(21,412)		—		(5,014)		4,931		(83)
Change in fair value of mortgage loans, net	(90,159)		—		—		2,685		—		(87,474)		—		(87,474)
Income from affordable housing fund investments	—		—		117,527		—		—		117,527		—		117,527
(Loss) earnings from unconsolidated entities	(4,044)		1,892		—		602		—		(1,550)		(494)		(2,044)
(Loss) gain on sale of investments and other assets, net	(288)		—		—		13,741		—		13,453		—		13,453
Gain (loss) on derivative financial instruments, net	220,296		331		10,262		6,849		(31,668)		206,070		—		206,070
Foreign currency (loss) gain, net	(107,087)		(253)		22		—		—		(107,318)		—		(107,318)
Loss on extinguishment of debt	—		—		—		(212)		—		(212)		—		(212)
Other loss, net	(56,391)		—		—		—		—		(56,391)		—		(56,391)
Total other income (loss)	(21,275)		1,970		127,811		2,610		(31,668)		79,448		41,741		121,189
Income (loss) before income taxes	118,087		13,188		126,598		19,563		(102,347)		175,089		(6)		175,083
Income tax benefit (provision)	53,099		2		—		(4,346)		—		48,755		—		48,755
Net income (loss)	171,186		13,190		126,598		15,217		(102,347)		223,844		(6)		223,838
Net income attributable to non-controlling interests	(3)		—		(28,486)		(793)		—		(29,282)		6		(29,276)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	171,183	$	13,190	$	98,112	$	14,424	$	(102,347)	$	194,562	$	—	$	194,562

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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

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The table below presents our results of operations for the nine months ended September 30, 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	$	714,222	$	100,097	$	—	$	8,804	$	—	$	823,123	$	—	$	823,123
Interest income from investment securities	71,987		3,124		—		75,964		—		151,075		(102,767)		48,308
Servicing fees	420		—		—		41,517		—		41,937		(10,965)		30,972
Rental income	4,674		—		67,879		23,483		—		96,036		—		96,036
Other revenues	251		287		152		10,999		3		11,692		(12)		11,680
Total revenues	791,554		103,508		68,031		160,767		3		1,123,863		(113,744)		1,010,119
Costs and expenses:
Management fees	758		—		—		—		113,517		114,275		—		114,275
Interest expense	301,935		49,431		22,421		19,202		109,150		502,139		(647)		501,492
General and administrative	39,905		10,730		2,964		66,603		14,354		134,556		265		134,821
Acquisition and investment pursuit costs	2,401		3		7		(259)		—		2,152		—		2,152
Costs of rental operations	4,978		—		16,010		11,106		—		32,094		—		32,094
Depreciation and amortization	3,106		310		24,559		8,523		—		36,498		—		36,498
Credit loss provision, net	13,027		7,096		—		—		—		20,123		—		20,123
Other expense	1,251		—		55		7		—		1,313		—		1,313
Total costs and expenses	367,361		67,570		66,016		105,182		237,021		843,150		(382)		842,768
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		72,268		72,268
Change in fair value of servicing rights	—		—		—		683		—		683		551		1,234
Change in fair value of investment securities, net	(5,019)		—		—		(38,853)		—		(43,872)		42,189		(1,683)
Change in fair value of mortgage loans, net	(327,743)		—		—		1,006		—		(326,737)		—		(326,737)
Income from affordable housing fund investments	—		—		658,733		—		—		658,733		—		658,733
(Loss) earnings from unconsolidated entities	(2,598)		2,631		—		2,501		—		2,534		(1,623)		911
Gain on sale of investments and other assets, net	86,460		—		—		25,599		—		112,059		—		112,059
Gain (loss) on derivative financial instruments, net	465,831		1,228		33,162		43,719		(82,019)		461,921		—		461,921
Foreign currency (loss) gain, net	(212,672)		(570)		41		—		—		(213,201)		—		(213,201)
Loss on extinguishment of debt	(206)		(469)		—		(360)		—		(1,035)		—		(1,035)
Other (loss) income, net	(90,988)		—		—		—		—		(90,988)		25		(90,963)
Total other income (loss)	(86,935)		2,820		691,936		34,295		(82,019)		560,097		113,410		673,507
Income (loss) before income taxes	337,258		38,758		693,951		89,880		(319,037)		840,810		48		840,858
Income tax benefit (provision)	57,682		7		—		(8,690)		—		48,999		—		48,999
Net income (loss)	394,940		38,765		693,951		81,190		(319,037)		889,809		48		889,857
Net income attributable to non-controlling interests	(10)		—		(148,379)		(9,972)		—		(158,361)		(48)		(158,409)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	394,930	$	38,765	$	545,572	$	71,218	$	(319,037)	$	731,448	$	—	$	731,448

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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

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The table below presents our consolidated balance sheet as of September 30, 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	$	76,654	$	59,925	$	32,464	$	43,172	$	124,945	$	337,160	$	2,550	$	339,710
Restricted cash	6,230		33,410		978		3,789		77,163		121,570		—		121,570
Loans held-for-investment, net	15,719,718		2,374,444		—		9,660		—		18,103,822		—		18,103,822
Loans held-for-sale	2,125,827		—		—		79,857		—		2,205,684		—		2,205,684
Investment securities	1,318,372		66,728		—		1,183,831		—		2,568,931		(1,678,803)		890,128
Properties, net	214,896		—		868,454		134,076		—		1,217,426		—		1,217,426
Investments of consolidated affordable housing fund	—		—		1,669,265		—		—		1,669,265		—		1,669,265
Investments in unconsolidated entities	34,319		29,347		—		35,494		—		99,160		(15,996)		83,164
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	14,302		—		30,829		69,532		—		114,663		(41,567)		73,096
Derivative assets	249,120		242		321		1,488		—		251,171		—		251,171
Accrued interest receivable	143,352		9,177		412		1,412		—		154,353		(205)		154,148
Other assets	254,353		4,332		77,207		27,033		55,907		418,832		(374)		418,458
VIE assets, at fair value	—		—		—		—		—		—		54,215,370		54,215,370
Total Assets	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	404,982	$	41,457	$	12,105	$	43,658	$	60,171	$	562,373	$	88	$	562,461
Related-party payable	—		—		—		—		26,146		26,146		—		26,146
Dividends payable	—		—		—		—		150,196		150,196		—		150,196
Derivative liabilities	8,943		223		—		—		73,600		82,766		—		82,766
Secured financing agreements, net	10,250,349		1,095,459		789,138		612,409		769,814		13,517,169		(21,267)		13,495,902
Collateralized loan obligations and single asset securitization, net	2,877,567		813,429		—		—		—		3,690,996		—		3,690,996
Unsecured senior notes, net	—		—		—		—		2,326,988		2,326,988		—		2,326,988
VIE liabilities, at fair value	—		—		—		—		—		—		52,501,845		52,501,845
Total Liabilities	13,541,841		1,950,568		801,243		656,067		3,406,915		20,356,634		52,480,666		72,837,300
Temporary Equity: Redeemable non-controlling interests	—		—		344,373		—		—		344,373		—		344,373
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,170		3,170		—		3,170
Additional paid-in capital	1,624,104		665,104		(381,226)		(575,971)		4,447,676		5,779,687		—		5,779,687
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	4,968,304		81,342		1,706,906		1,484,360		(7,461,724)		779,188		—		779,188
Accumulated other comprehensive income	22,776		—		—		—		—		22,776		—		22,776
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,615,184		746,446		1,325,680		908,389		(3,148,900)		6,446,799		—		6,446,799
Non-controlling interests in consolidated subsidiaries	118		—		208,634		165,325		—		374,077		309		374,386
Total Permanent Equity	6,615,302		746,446		1,534,314		1,073,714		(3,148,900)		6,820,876		309		6,821,185
Total Liabilities and Equity	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858

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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)
Retained earnings (accumulated deficit)	4,573,374		42,577		1,161,334		1,413,142		(6,697,321)		493,106		—		493,106
Accumulated other comprehensive income	40,953		—		—		—		—		40,953		—		40,953
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

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24. Subsequent Events

On November 3, 2022, we priced a term loan facility totaling $600.0 million that carries a five-year term and an annual interest rate of SOFR + 3.25%, subject to a 0.50% SOFR floor, and an issue discount of 3.0%. The transaction is expected to close on November 18, 2022.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the information included elsewhere in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (our “Form 10-K”). This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ significantly from the results discussed in the forward-looking statements. See “Special Note Regarding Forward-Looking Statements” at the beginning of this Quarterly Report on Form 10-Q.

Overview

Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering. We are focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in the United States (“U.S.”), Europe and Australia. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions.

We have four reportable business segments as of September 30, 2022 and we refer to the investments within these segments as our target assets:

•Real estate commercial and residential lending (the “Commercial and Residential Lending Segment”)—engages primarily in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages (“residential loans”), subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”) and other real estate and real estate-related debt investments in the U.S., Europe and Australia (including distressed or non-performing loans). Our residential loans are secured by a first mortgage lien on residential property and primarily consist of non-agency residential loans that are not guaranteed by any U.S. Government agency or federally chartered corporation.

•Infrastructure lending (the “Infrastructure Lending Segment”)—engages primarily in originating, acquiring, financing and managing infrastructure debt investments.

•Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, that are held for investment.

•Real estate investing and servicing (the “Investing and Servicing Segment”)—includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts.

Our segments exclude the consolidation of securitization variable interest entities (“VIEs”).

Refer to Note 1 of our condensed consolidated financial statements included herein (the “Condensed Consolidated Financial Statements”) for further discussion of our business and organization.

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Developments During the Third Quarter of 2022

Commercial and Residential Lending Segment

•Originated $935.5 million of commercial investments during the quarter, including the following:

◦$324.2 million of first mortgage and mezzanine loans for the acquisition of a 1,684 unit portfolio of six multifamily properties located in Florida, Texas, Tennessee, South Carolina and Georgia, of which the Company funded $305.3 million.

◦$282.9 million first mortgage and mezzanine loan to refinance the existing debt and fund construction of a multi-story industrial facility located in New York, of which the Company funded $122.7 million.

◦$226.0 million first mortgage and mezzanine loan for the acquisition and refinancing of a 41-property, 4,967-key hotel portfolio located in Florida, Georgia, Massachusetts, North Carolina, South Carolina and Virginia, of which the Company funded $195.0 million.

◦A$122.0 million ($84.8 million) first mortgage loan for the development and construction of a 17-story student housing tower located in Australia, of which the Company funded $16.7 million.

•Funded $210.6 million of previously originated commercial loan commitments.

•Received gross proceeds of $524.4 million ($385.6 million, net of debt repayments) from maturities and principal repayments on our commercial loans.

•Sold a $63.7 million loan on a hotel in San Francisco.

Infrastructure Lending Segment

•Acquired $222.9 million of infrastructure loans and funded $1.7 million of pre-existing infrastructure loan commitments.

•Received proceeds of $98.5 million from principal repayments on our infrastructure loans and bonds.

Investing and Servicing Segment

•Originated commercial conduit loans of $70.6 million.

•Received proceeds of $31.0 million from sales of previously originated commercial conduit loans and priced $70.5 million of previously originated commercial conduit loans in a securitization that settled subsequent to September 30, 2022.

•Obtained eight new special servicing assignments for CMBS trusts with a total unpaid principal balance of $5.7 billion, bringing our total named special servicing portfolio to $107.4 billion.

•Sold commercial real estate for gross proceeds of $19.5 million and recognized a gain of $13.7 million.

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Developments During the Nine Months Ended September 30, 2022

Commercial and Residential Lending Segment

•In February 2022, we refinanced a pool of our commercial loans held-for-investment through a collateralized loan obligation ("CLO"), STWD 2022-FL3. The CLO has a contractual maturity of November 2038 and a weighted average cost of financing of SOFR + 1.91%, inclusive of the amortization of deferred issuance costs. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes, along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash for a period of two years.

•Originated or acquired $5.0 billion of commercial loans during the period, including the following:

◦A$1.3 billion ($960.5 million) first mortgage loan for the acquisition of three of the largest hotel and gaming resorts located across Australia, which the Company fully funded.

◦$324.2 million of first mortgage and mezzanine loans for the acquisition of a 1,684 unit portfolio of six multifamily properties located in Florida, Texas, Tennessee, South Carolina and Georgia, of which the Company funded $305.3 million.

◦$282.9 million first mortgage and mezzanine loan to refinance the existing debt and fund construction of a multi-story industrial facility located in New York, of which the Company funded $122.7 million.

◦$263.6 million of first mortgage loans for the acquisition of a 1,828 unit portfolio of eight multifamily properties located in Texas, of which the Company funded $241.5 million.

◦$250.0 million participation in a first mortgage loan for the construction of 235 luxury residences, a 136-key hotel and 78,000 square feet of commercial space located in New York, of which the Company funded $157.6 million.

◦$226.0 million first mortgage and mezzanine loan for the acquisition and refinancing of a 41-property, 4,967-key hotel portfolio located in Florida, Georgia, Massachusetts, North Carolina, South Carolina and Virginia, of which the Company funded $195.0 million.

◦$200.0 million first mortgage loan to refinance existing debt on a 22 property luxury cabin portfolio and finance the acquisition of 18 future properties located across the U.S., of which the Company funded $120.4 million.

◦€162.7 million ($186.2 million) first mortgage loan for the acquisition of a 382,000 square foot office and retail property located in Germany, which the Company has not yet funded.

◦$174.1 million first mortgage loan for the acquisition and renovation of two garden-style multifamily properties located in Florida, of which the Company funded $166.1 million.

◦$165.0 million first mortgage and mezzanine loan for the construction of a 65-story, 100% pre-sold residential project located in South Florida, of which the Company funded $17.8 million.

•Funded $598.9 million of previously originated commercial loan commitments.

•Received gross proceeds of $1.6 billion ($0.9 billion, net of debt repayments) from maturities and principal repayments on our commercial loans.

•Sold a $63.7 million loan on a hotel in San Francisco and also received gross proceeds of $6.5 million from sales of senior interests in first mortgage loans.

•Sold commercial real estate in Florida that was previously acquired through foreclosure in April 2019 for gross proceeds of $114.8 million and recognized a gain of $86.6 million.

•Entered into commercial credit facilities of $1.4 billion. Amended several commercial credit facilities resulting in an aggregate net upsize of $974.7 million.

•Acquired $3.0 billion of residential loans.

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•Received proceeds of $3.0 billion, including retained RMBS of $226.2 million, from the securitization and sales of $3.0 billion of residential loans.

•Amended certain of our residential loan repurchase facilities to increase available non-mark-to-market capacity by $250.0 million to $800.0 million. The margin call provisions under these facilities do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

Infrastructure Lending Segment

•In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. The CLO has a contractual maturity of January 2033 and a weighted average cost of financing of SOFR + 2.11%, inclusive of the amortization of deferred issuance costs. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes was purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash for a period of three years.

•Acquired $650.1 million of infrastructure loans and bonds and funded $24.7 million of pre-existing infrastructure loan commitments.

•Received proceeds of $248.7 million from principal repayments on our infrastructure loans and bonds.

•Entered into a credit facility with a maximum facility size of $500.0 million and a three-year revolving period with two one-year extension options. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

Investing and Servicing Segment

•Originated commercial conduit loans of $831.9 million.

•Received proceeds of $1.0 billion from sales of previously originated commercial conduit loans and priced $70.5 million of previously originated commercial conduit loans in a securitization that settled subsequent to September 30, 2022.

•Acquired CMBS for a purchase price of $63.7 million, of which $17.1 million related to non-controlling interests.

•Obtained 23 new special servicing assignments for CMBS trusts with a total unpaid principal balance of $20.5 billion, bringing our total named special servicing portfolio to $107.4 billion.

•Sold two operating properties for gross proceeds of $54.0 million and recognized a total gain of $25.4 million.

Corporate

•Issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”) and swapped the notes to a floating rate of SOFR + 2.95%.

•Entered into a Starwood Property Trust, Inc. Common Stock Sales Agreement (the “ATM Agreement”) with a syndicate of financial institutions to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. During the nine months ended September 30, 2022, we issued 1.4 million shares under the ATM Agreement for gross proceeds of $33.3 million at an average share price of $23.54.

Subsequent Events

Refer to Note 24 to the Consolidated Financial Statements for disclosure regarding significant transactions that occurred subsequent to September 30, 2022.

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Results of Operations

The discussion below is based on accounting principles generally accepted in the United States of America (“GAAP”) and therefore reflects the elimination of certain key financial statement line items related to the consolidation of securitization variable interest entities (“VIEs”), particularly within revenues and other income, as discussed in Note 2 to the Condensed Consolidated Financial Statements. For a discussion of our results of operations excluding the impact of Accounting Standards Codification (“ASC”) Topic 810 as it relates to the consolidation of securitization VIEs, refer to the section captioned “Non-GAAP Financial Measures.”

The following table compares our summarized results of operations for the three months ended September 30, 2022 and June 30, 2022 and for the nine months ended September 30, 2022 and 2021 by business segment (amounts in thousands):

	For the Three Months Ended						For the Nine Months Ended				$ Change
Revenues:	September 30, 2022		June 30, 2022		$ Change		September 30, 2022		September 30, 2021
Commercial and Residential Lending Segment	$	314,981	$	251,393	$	63,588	$	791,554	$	572,066	$	219,488
Infrastructure Lending Segment	44,351		31,359		12,992		103,508		63,432		40,076
Property Segment	22,940		22,676		264		68,031		197,325		(129,294)
Investing and Servicing Segment	50,147		52,811		(2,664)		160,767		154,492		6,275
Corporate	—		3		(3)		3		—		3
Securitization VIE eliminations	(41,878)		(32,656)		(9,222)		(113,744)		(106,932)		(6,812)
	390,541		325,586		64,955		1,010,119		880,383		129,736
Costs and expenses:
Commercial and Residential Lending Segment	175,619		113,248		62,371		367,361		166,414		200,947
Infrastructure Lending Segment	33,133		19,249		13,884		67,570		39,341		28,229
Property Segment	24,153		21,446		2,707		66,016		183,643		(117,627)
Investing and Servicing Segment	33,194		35,619		(2,425)		105,182		106,414		(1,232)
Corporate	70,679		72,854		(2,175)		237,021		194,726		42,295
Securitization VIE eliminations	(131)		(118)		(13)		(382)		(367)		(15)
	336,647		262,298		74,349		842,768		690,171		152,597
Other income (loss):
Commercial and Residential Lending Segment	(21,275)		(122,744)		101,469		(86,935)		42,743		(129,678)
Infrastructure Lending Segment	1,970		370		1,600		2,820		(535)		3,355
Property Segment	127,811		312,537		(184,726)		691,936		3,877		688,059
Investing and Servicing Segment	2,610		11,024		(8,414)		34,295		59,733		(25,438)
Corporate	(31,668)		(13,183)		(18,485)		(82,019)		(6,362)		(75,657)
Securitization VIE eliminations	41,741		32,619		9,122		113,410		106,107		7,303
	121,189		220,623		(99,434)		673,507		205,563		467,944
Income (loss) before income taxes:
Commercial and Residential Lending Segment	118,087		15,401		102,686		337,258		448,395		(111,137)
Infrastructure Lending Segment	13,188		12,480		708		38,758		23,556		15,202
Property Segment	126,598		313,767		(187,169)		693,951		17,559		676,392
Investing and Servicing Segment	19,563		28,216		(8,653)		89,880		107,811		(17,931)
Corporate	(102,347)		(86,034)		(16,313)		(319,037)		(201,088)		(117,949)
Securitization VIE eliminations	(6)		81		(87)		48		(458)		506
	175,083		283,911		(108,828)		840,858		395,775		445,083
Income tax benefit (provision)	48,755		(2,206)		50,961		48,999		(6,378)		55,377
Net income attributable to non-controlling interests	(29,276)		(69,418)		40,142		(158,409)		(33,107)		(125,302)
Net income attributable to Starwood Property Trust, Inc.	$	194,562	$	212,287	$	(17,725)	$	731,448	$	356,290	$	375,158

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Three Months Ended September 30, 2022 Compared to the Three Months Ended June 30, 2022

Commercial and Residential Lending Segment

Revenues

For the three months September 30, 2022, revenues of our Commercial and Residential Lending Segment increased $63.6 million to $315.0 million, compared to $251.4 million for the three months ended June 30, 2022. This increase was primarily due to an increase in interest income from loans of $56.6 million and investment securities of $6.0 million. The increase in interest income from loans reflects (i) a $58.3 million increase from commercial loans reflecting higher average index rates and loan balances partially offset by lower prepayment related income and (ii) a $1.7 million decrease from residential loans principally due to lower average loan balances partially offset by higher average coupon rates. The increase in interest income from investment securities was primarily due to higher average index rates on commercial investments and higher RMBS investment balances and yields.

Costs and Expenses

For the three months ended September 30, 2022, costs and expenses of our Commercial and Residential Lending Segment increased $62.4 million to $175.6 million, compared to $113.2 million for the three months ended June 30, 2022. This increase was primarily due to a $56.9 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio. The increase in interest expense was primarily due to higher average index rates and borrowings outstanding.

Net Interest Income (amounts in thousands)

	For the Three Months Ended
	September 30, 2022		June 30, 2022		Change
Interest income from loans	$	284,197	$	227,555	$	56,642
Interest income from investment securities	28,560		22,591		5,969
Interest expense	(145,107)		(88,226)		(56,881)
Net interest income	$	167,650	$	161,920	$	5,730

For the three months ended September 30, 2022, net interest income of our Commercial and Residential Lending Segment increased $5.7 million to $167.6 million, compared to $161.9 million for the three months ended June 30, 2022. This increase reflects the increase in interest income, partially offset by the increase in interest expense on our secured financing facilities, both as discussed in the sections above.

During the three months ended September 30, 2022 and June 30, 2022, the weighted average unlevered yields on the Commercial and Residential Lending Segment’s loans and investment securities, excluding retained RMBS and loans for which interest income is not recognized, were as follows:

	For the Three Months Ended
	September 30, 2022		June 30, 2022
Commercial	6.7	%	5.4	%
Residential	4.9	%	4.8	%
Overall	6.5	%	5.4	%

The weighted average unlevered yield on our commercial loans increased primarily due to higher average index rates partially offset by lower prepayment related income. The weighted average unlevered yield on our residential loans increased slightly primarily due to higher average coupon rates.

During the three months ended September 30, 2022 and June 30, 2022, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of interest rate hedging costs and the amortization of deferred financing fees, were 4.3% and 2.9%, respectively. The increase in borrowing rates primarily reflects higher index rates.

Other Loss

For the three months ended September 30, 2022, other loss of our Commercial and Residential Lending Segment decreased $101.4 million to $21.3 million compared to $122.7 million for the three months ended June 30, 2022. This decrease was primarily due to (i) a $93.1 million increase in net gains on derivatives, (ii) a $35.7 million favorable change in fair value of investment securities, principally related to RMBS, and (iii) a $31.2 million lesser decrease in fair value of residential loans,

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partially offset by (iv) a $28.8 million increase in foreign currency loss and (v) a $23.0 million higher loss contingency provision related to residential loans sold in February 2022 (refer to Note 22 to the Condensed Consolidated Financial Statements). The increase in net gains on derivatives in the third quarter of 2022 reflects a $56.3 million increased gain on interest rate swaps principally related to residential loans and a $36.8 million increased gain on foreign currency hedges. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The increased gain on foreign currency hedges and the increase in foreign currency loss reflect the strengthening of the U.S. dollar against the pound sterling (“GBP”), Euro (“EUR”) and Australian dollar (“AUD”) in the third quarter of 2022 compared to a lesser strengthening of the U.S. dollar against those currencies in the second quarter of 2022.

Infrastructure Lending Segment

Revenues

For the three months ended September 30, 2022, revenues of our Infrastructure Lending Segment increased $13.0 million to $44.4 million, compared to $31.4 million for the three months ended June 30, 2022. This was primarily due to an increase in interest income from loans of $12.9 million reflecting higher average index rates and loan balances.

Costs and Expenses

For the three months ended September 30, 2022, costs and expenses of our Infrastructure Lending Segment increased $13.9 million to $33.1 million, compared to $19.2 million for the three months ended June 30, 2022. The increase was primarily due to a $7.5 million increase in interest expense associated with the various secured financing facilities used to fund this segment’s investment portfolio and a $6.4 million increase in credit loss provision. The increase in interest expense was primarily due to higher average index rates and borrowings outstanding. The increase in the credit loss provision was primarily due to an increase in the specific reserve for a credit-deteriorated loan.

Net Interest Income (amounts in thousands)

	For the Three Months Ended
	September 30, 2022		June 30, 2022		Change
Interest income from loans	$	43,018	$	30,096	$	12,922
Interest income from investment securities	1,204		1,173		31
Interest expense	(22,500)		(15,001)		(7,499)
Net interest income	$	21,722	$	16,268	$	5,454

For the three months ended September 30, 2022, net interest income of our Infrastructure Lending Segment increased $5.4 million to $21.7 million, compared to $16.3 million for the three months ended June 30, 2022. The increase reflects the increase in interest income, partially offset by the increase in interest expense on the secured financing facilities, both as discussed in the sections above.

During the three months ended September 30, 2022 and June 30, 2022, the weighted average unlevered yields on the Infrastructure Lending Segment’s loans and investment securities held-for-investment were 7.0% and 5.5%, respectively.

During the three months ended September 30, 2022 and June 30, 2022, the Infrastructure Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 4.6% and 3.4%, respectively.

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Other Income

For the three months ended September 30, 2022, other income of our Infrastructure Lending Segment increased $1.6 million to $2.0 million, compared to $0.4 million for the three months ended June 30, 2022. This increase was primarily due to a $1.5 million increase in earnings from an unconsolidated entity.

Property Segment

Change in Results by Portfolio (amounts in thousands)

	$ Change from prior period
	Revenues		Costs and  expenses		Gain (loss) on derivative financial instruments		Other income (loss)		Income (loss) before  income taxes
Master Lease Portfolio	$	—	$	17	$	—	$	—	$	(17)
Medical Office Portfolio	264		2,763		4,907		—		2,408
Woodstar Fund	—		(11)		—		(189,636)		(189,625)
Other/Corporate	—		(62)		—		3		65
Total	$	264	$	2,707	$	4,907	$	(189,633)	$	(187,169)

See Notes 6 and 7 to the Condensed Consolidated Financial Statements for a description of the above-referenced Property Segment portfolios and fund.

Revenues

For the three months ended September 30, 2022, revenues of our Property Segment increased $0.2 million to $22.9 million, compared to $22.7 million for the three months ended June 30, 2022.

Costs and Expenses

For the three months ended September 30, 2022, costs and expenses of our Property Segment increased $2.7 million to $24.1 million, compared to $21.4 million for the three months ended June 30, 2022. The increase is primarily due to an increase of $2.2 million in interest expense reflecting higher index rates on variable rate borrowings.

Other Income

For the three months ended September 30, 2022, other income of our Property Segment decreased $184.7 million to $127.8 million compared to $312.5 million for the three months ended June 30, 2022. The decrease is primarily due to (i) a $189.6 million decrease in income attributable to investments of the Woodstar Fund, reflecting lower unrealized increases in fair value during the third quarter of 2022, partially offset by (ii) a $4.9 million increased gain on derivatives which primarily hedge our interest rate risk on borrowings secured by our Medical Office Portfolio.

Investing and Servicing Segment

Revenues

For the three months ended September 30, 2022, revenues of our Investing and Servicing Segment decreased $2.7 million to $50.1 million, compared to $52.8 million for the three months ended June 30, 2022. The decrease primarily reflects a $7.2 million decrease in servicing and other fees, partially offset by a $4.2 million net increase in interest income reflecting higher recoveries on CMBS investments but reduced interest on lower average balances of conduit loans.

Costs and Expenses

For the three months ended September 30, 2022, costs and expenses of our Investing and Servicing Segment decreased $2.4 million to $33.2 million, compared to $35.6 million for the three months ended June 30, 2022. The decrease primarily reflects lower incentive compensation due to lower securitization volume in the third quarter of 2022.

Other Income

For the three months ended September 30, 2022, other income of our Investing and Servicing Segment decreased $8.4 million to $2.6 million, compared to $11.0 million for the three months ended June 30, 2022. The decrease in other income was primarily due to (i) a $13.3 million greater decrease in fair value of CMBS investments, (ii) a $5.2 million lesser increase in fair

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value of conduit loans and (iii) a $2.2 million decrease in net gains on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments, all partially offset by (iv) a $13.7 million gain on sale of an operating property in the third quarter of 2022.

Corporate and Other Items

Corporate Costs and Expenses

For the three months ended September 30, 2022, corporate expenses decreased $2.2 million to $70.7 million, compared to $72.9 million for the three months ended June 30, 2022. This decrease was primarily due to (i) a decrease of $4.2 million in management fees principally due to lower incentive fees and (ii) a $1.0 million decrease in general and administrative expenses reflecting lower project related professional fees, partially offset by (iii) a $3.0 million increase in interest expense attributable to higher index rates on our term loan.

Corporate Other Loss

For the three months ended September 30, 2022, corporate other loss increased $18.5 million to $31.7 million, compared to $13.2 million for the three months ended June 30, 2022. This increase was due to a greater loss on our fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.

Securitization VIE Eliminations

Securitization VIE eliminations primarily reclassify interest income and servicing fee revenues to other income (loss) for the CMBS and RMBS VIEs that we consolidate as primary beneficiary. Such eliminations have no overall effect on net income (loss) attributable to Starwood Property Trust. The reclassified revenues, along with applicable changes in fair value of investment securities and servicing rights, comprise the other income (loss) caption “Change in net assets related to consolidated VIEs,” which represents our beneficial interest in those consolidated VIEs. The magnitude of the securitization VIE eliminations is merely a function of the number of CMBS and RMBS trusts consolidated in any given period, and as such, is not a meaningful indicator of operating results. The eliminations primarily relate to CMBS trusts for which the Investing and Servicing Segment is deemed the primary beneficiary and, to a much lesser extent, some CMBS and RMBS trusts for which the Commercial and Residential Lending Segment is deemed the primary beneficiary.

Income Tax Benefit (Provision)

Our consolidated income taxes principally relate to the taxable nature of our loan servicing and loan securitization businesses which are housed in taxable REIT subsidiaries (“TRSs”). For the three months ended September 30, 2022, our income tax provision decreased $51.0 million to a benefit of $48.8 million compared to a provision of $2.2 million for the three months ended June 30, 2022 due to tax losses of our TRSs in the third quarter of 2022 and use of the discrete method compared to taxable income of our TRSs in the second quarter of 2022 and use of the annual effective tax rate method. The tax losses in the third quarter of 2022 were primarily attributable to net unrealized losses on our residential loans.

Net Income Attributable to Non-controlling Interests

During the three months ended September 30, 2022, net income attributable to non-controlling interests decreased $40.1 million to $29.3 million, compared to $69.4 million during the three months ended June 30, 2022. The decrease was primarily due to non-controlling interests in lower income of the Woodstar Fund in the third quarter of 2022.

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Nine Months Ended September 30, 2022 Compared to the Nine Months Ended September 30, 2021

Commercial and Residential Lending Segment

Revenues

For the nine months ended September 30, 2022, revenues of our Commercial and Residential Lending Segment increased $219.5 million to $791.6 million, compared to $572.1 million for the nine months ended September 30, 2021. This increase was primarily due to increases in interest income from loans of $198.4 million and investment securities of $20.4 million. The increase in interest income from loans reflects (i) a $155.8 million increase from commercial loans, reflecting higher average balances and index rates, partially offset by the timing effect of certain loans being placed on nonaccrual, and (ii) a $42.6 million increase from residential loans principally due to higher average balances reflecting the timing of purchases and securitizations, partially offset by lower average coupon rates. The increase in interest income from investment securities was primarily due to higher commercial and RMBS average investment balances and the effect of higher index rates on certain commercial investments.

Costs and Expenses

For the nine months ended September 30, 2022, costs and expenses of our Commercial and Residential Lending Segment increased $201.0 million to $367.4 million, compared to $166.4 million for the nine months ended September 30, 2021. This increase was primarily due to (i) a $157.2 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio, (ii) a $26.0 million increase in credit loss provision from a reversal of $13.0 million in the nine months of 2021 to a provision of $13.0 million in nine months of 2022 and (iii) a $9.0 million increase in primarily legal related general and administrative expenses. The increase in interest expense was primarily due to higher average borrowings outstanding and higher average index rates. The credit loss provision in the nine months of 2022 was primarily due to rising index rates and its potential effect on borrower cash flows in our estimate of current expected credit losses (“CECL”).

Net Interest Income (amounts in thousands)

	For the Nine Months Ended September 30,
	2022		2021		Change
Interest income from loans	$	714,222	$	515,776	$	198,446
Interest income from investment securities	71,987		51,618		20,369
Interest expense	(301,935)		(144,717)		(157,218)
Net interest income	$	484,274	$	422,677	$	61,597

For the nine months ended September 30, 2022, net interest income of our Commercial and Residential Lending Segment increased $61.6 million to $484.3 million, compared to $422.7 million for the nine months ended September 30, 2021. This increase reflects the increase in interest income, partially offset by the increase in interest expense on our secured financing facilities, both as discussed in the sections above.

During the nine months ended September 30, 2022 and 2021, the weighted average unlevered yields on the Commercial and Residential Lending Segment’s loans and investment securities, excluding retained RMBS and loans for which interest income is not recognized, were as follows:

	For the Nine Months Ended September 30,
	2022		2021
Commercial	5.9	%	5.9	%
Residential	4.6	%	5.2	%
Overall	5.7	%	5.9	%

The weighted average unlevered yield on our commercial loans remained unchanged despite higher index rates primarily due to repayment of loans with higher LIBOR floors being replaced by newer loans with lower floating rate floors. The unlevered yield on our residential loans decreased due to lower weighted average coupons which resulted from market spread tightening as well as a change in the composition of our residential loan portfolio to include agency loans which generally carry a lower coupon than non-agency loans.

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During the nine months ended September 30, 2022 and 2021, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of interest rate hedging costs and the amortization of deferred financing fees, were 3.3% and 2.5%, respectively. The increase in borrowing rates primarily reflects higher index rates, partially offset by decreases in weighted average spreads particularly due to increased use of lower cost CLO financing.

Other Income (Loss)

For the nine months ended September 30, 2022, other income of our Commercial and Residential Lending Segment decreased $129.6 million to a loss of $86.9 million, compared to income of $42.7 million for the nine months ended September 30, 2021. This decrease primarily reflects (i) a $351.8 million unfavorable change in fair value of residential loans, (ii) a $177.0 million increase in foreign currency loss and (iii) an $88.4 million estimated loss contingency related to residential loans sold in February 2022 (refer to Note 22 to the Condensed Consolidated Financial Statements), all partially offset by (iv) a $406.6 million increase in net gains on derivatives and (v) a $69.8 million increased gain on sale of foreclosed properties. The unfavorable change in fair value of residential loans was principally related to a rapid rise in interest rates and widening of credit spreads in the nine months of 2022, which resulted in mark-to-market losses on our fixed coupon residential loans. The increased gains on derivatives during the nine months ended September 30, 2022 reflect a $209.2 million increased gain on interest rate swaps principally related to residential loans, which partially offsets the unfavorable change in fair value of those loans, and a $197.4 million increased gain on foreign currency hedges. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The increased gain on foreign currency hedges and the increase in foreign currency loss reflect the strengthening of the U.S. dollar against the GBP, EUR and AUD during the nine months of 2022 compared to a lesser overall strengthening of the U.S. dollar against those currencies during the nine months of 2021.

Infrastructure Lending Segment

Revenues

For the nine months ended September 30, 2022, revenues of our Infrastructure Lending Segment increased $40.1 million to $103.5 million, compared to $63.4 million for the nine months ended September 30, 2021. This increase was primarily due to an increase in interest income from loans of $38.6 million, principally due to higher average loan balances and index rates.

Costs and Expenses

For the nine months ended September 30, 2022, costs and expenses of our Infrastructure Lending Segment increased $28.3 million to $67.6 million, compared to $39.3 million for the nine months ended September 30, 2021. The increase was primarily due to (i) a $21.5 million increase in interest expense associated with the various secured financing facilities used to fund this segment’s investment portfolio and (ii) a $6.5 million increase in credit loss provision. The increase in interest expense was primarily due to higher average borrowings outstanding and higher average index rates. The increase in the credit loss provision was primarily due to an increase in the specific reserve for a credit-deteriorated loan.

Net Interest Income (amounts in thousands)

	For the Nine Months Ended September 30,
	2022		2021		Change
Interest income from loans	$	100,097	$	61,545	$	38,552
Interest income from investment securities	3,124		1,659		1,465
Interest expense	(49,431)		(27,916)		(21,515)
Net interest income	$	53,790	$	35,288	$	18,502

For the nine months ended September 30, 2022, net interest income of our Infrastructure Lending Segment increased $18.5 million to $53.8 million, compared to $35.3 million for the nine months ended September 30, 2021. The increase reflects the increase in interest income, partially offset by the increase in interest expense on the secured financing facilities, both as discussed in the sections above.

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During the nine months ended September 30, 2022 and 2021, the weighted average unlevered yields on the Infrastructure Lending Segment’s loans and investment securities held-for-investment were 5.9% and 4.9%, respectively. During the nine months ended September 30, 2021, the weighted average unlevered yield on the Infrastructure Lending Segment’s loans held-for-sale was 2.8%. There were no loans held-for-sale during the nine months ended September 30, 2022.

During the nine months ended September 30, 2022 and 2021, the Infrastructure Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 3.6% and 2.8%, respectively.

Other Income (Loss)

For the nine months ended September 30, 2022 and 2021, other income of our Infrastructure Lending Segment increased $3.3 million to income of $2.8 million, compared to a loss of $0.5 million for the nine months ended September 30, 2021. The increase primarily reflects a $2.6 million increase in earnings from an unconsolidated entity and a $0.8 million lower loss on extinguishment of debt.

Property Segment

Change in Results by Portfolio (amounts in thousands)

	$ Change from prior period
	Revenues		Costs and  expenses		Gain (loss) on derivative  financial instruments		Other income (loss)		Income (loss) before  income taxes
Master Lease Portfolio	$	—	$	(34)	$	—	$	—	$	34
Medical Office Portfolio	87		2,849		29,184		—		26,422
Woodstar I Portfolio	(74,557)		(67,750)		(55)		—		(6,862)
Woodstar II Portfolio	(54,824)		(52,943)		—		141		(1,740)
Woodstar Fund	—		1,507		—		658,733		657,226
Other/Corporate	—		(1,256)		—		56		1,312
Total	$	(129,294)	$	(117,627)	$	29,129	$	658,930	$	676,392

Revenues

For the nine months ended September 30, 2022, revenues of our Property Segment decreased $129.3 million to $68.0 million, compared to $197.3 million for the nine months ended September 30, 2021. The decrease is primarily due to the conversion of the Woodstar Portfolios to the Woodstar Fund on November 5, 2021.

Costs and Expenses

For the nine months ended September 30, 2022, costs and expenses of our Property Segment decreased $117.6 million to $66.0 million, compared to $183.6 million for the nine months ended September 30, 2021, primarily due to the Woodstar Fund conversion referred to above.

Other Income

For the nine months ended September 30, 2022, other income of our Property Segment increased $688.0 million to $691.9 million, compared to $3.9 million for the nine months ended September 30, 2021. The increase is primarily due to (i) $658.7 million of income attributable to investments of the Woodstar Fund, including $613.0 million of unrealized increases in fair value, during the nine months of 2022 and (ii) a $29.1 million increased gain on derivatives which primarily hedge our interest rate risk on borrowings secured by our Medical Office Portfolio

Investing and Servicing Segment

Revenues

For the nine months ended September 30, 2022, revenues of our Investing and Servicing Segment increased $6.3 million to $160.8 million, compared to $154.5 million for the nine months ended September 30, 2021. The increase in revenues was primarily due to (i) a $7.2 million increase in interest income from CMBS investments and conduit loans and (ii) a $7.9 million increase in other fee income related to the origination of certain loans contributed into CMBS transactions, partially

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offset by (iii) a $6.2 million decrease in rental income principally reflecting fewer properties held and (iv) a $2.7 million decrease in servicing fees.

Costs and Expenses

For the nine months ended September 30, 2022, costs and expenses of our Investing and Servicing Segment decreased $1.2 million to $105.2 million, compared to $106.4 million for the nine months ended September 30, 2021.

Other Income

For the nine months ended September 30, 2022, other income of our Investing and Servicing Segment decreased $25.4 million to $34.3 million, compared to $59.7 million for the nine months ended September 30, 2021. The decrease in other income was primarily due to (i) a $43.0 million lesser increase in fair value of conduit loans and (ii) a $36.3 million greater decrease in fair value of CMBS investments, partially offset by (iii) a $36.2 million increased gain on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments and (iv) a $15.9 million increased gain on sales of operating properties.

Corporate and Other Items

Corporate Costs and Expenses

For the nine months ended September 30, 2022, corporate expenses increased $42.3 million to $237.0 million, compared to $194.7 million for the nine months ended September 30, 2021. This increase was primarily due to increases of (i) $21.9 million in management fees, primarily reflecting higher incentive fees principally related to operating property sales, and (ii) $19.2 million in interest expense on higher average outstanding term loan and unsecured senior note balances, as well as higher index rates on our term loan.

Corporate Other Loss

For the nine months ended September 30, 2022, corporate other loss increased $75.6 million to $82.0 million, compared to $6.4 million for the nine months ended September 30, 2021. This increase was primarily due to a greater loss on fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.

Securitization VIE Eliminations

Refer to the preceding comparison of the three months ended September 30, 2022 to the three months ended June 30, 2022 for a discussion of the effect of securitization VIE eliminations.

Income Tax Benefit (Provision)

Our consolidated income taxes principally relate to the taxable nature of our loan servicing and loan securitization businesses which are housed in TRSs. For the nine months ended September 30, 2022, our income taxes decreased $55.4 million to a benefit of $49.0 million, compared to a provision of $6.4 million for the nine months ended September 30, 2021 due to tax losses of our TRSs in the nine months of 2022 compared to taxable income of our TRSs in the nine months of 2021. The tax losses in the nine months of 2022 were primarily attributable to net unrealized losses on our residential loans.

Net Income Attributable to Non-controlling Interests

For the nine months ended September 30, 2022, net income attributable to non-controlling interests increased $125.3 million to $158.4 million, compared to $33.1 million for the nine months ended September 30, 2021. The increase was primarily due to non-controlling interests in earnings of the Woodstar Fund during the nine months of 2022.

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Non-GAAP Financial Measures

Distributable Earnings is a non-GAAP financial measure. We calculate Distributable Earnings as GAAP net income (loss) excluding the following:

(i)non-cash equity compensation expense;

(ii)incentive fees due under our management agreement;

(iii)depreciation and amortization of real estate and associated intangibles;

(iv)acquisition costs associated with successful acquisitions;

(v)any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period; and

(vi)any deductions for distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein.

The CECL reserve has been excluded from Distributable Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Distributable Earnings. We expect to only recognize such potential credit losses in Distributable Earnings if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be determined if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan.

We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. As a REIT, we generally must distribute annually at least 90% of our REIT taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring our dividends. We also use Distributable Earnings (previously defined as “Core Earnings”) to compute the incentive fee due under our management agreement.

Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of our GAAP cash flows from operations, a measure of our liquidity, taxable income, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.

As discussed in Note 2 to the Consolidated Financial Statements, consolidation of securitization variable interest entities (“VIEs”) results in the elimination of certain key financial statement line items, particularly within revenues and other income, including unrealized changes in fair value of loans and investment securities. These line items are essential to understanding the true financial performance of our business segments and the Company as a whole. For this reason, as referenced in Note 2 to our Condensed Consolidated Financial Statements, we present business segment data in Note 23 without consolidation of these VIEs. This is how we manage our business and is the basis for all data reviewed with our board of directors, investors and analysts. This presentation also allows for a more transparent reconciliation of the unrealized gain (loss) adjustments below to the segment data presented in Note 23.

The weighted average diluted share count applied to Distributable Earnings for purposes of determining Distributable Earnings per share (“EPS”) is computed using the GAAP diluted share count, adjusted for the following:

(i)Unvested stock awards – Currently, unvested stock awards are excluded from the denominator of GAAP EPS. The related compensation expense is also excluded from Distributable Earnings. In order to effectuate dilution from these awards in the Distributable Earnings computation, we adjust the GAAP diluted share count to include these shares.

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(ii)Convertible Notes – Conversion of our Convertible Notes is an event that is contingent upon numerous factors, none of which are in our control, and is an event that may or may not occur. Consistent with the treatment of other unrealized adjustments to Distributable Earnings, we adjust the GAAP diluted share count to exclude the potential shares issuable upon conversion until a conversion occurs.

(iii)Subsidiary equity – The intent of a February 2018 amendment to our management agreement (the “Amendment”) is to treat subsidiary equity in the same manner as if parent equity had been issued. The Class A Units issued in connection with the acquisition of assets in our Woodstar II Portfolio are currently excluded from our GAAP diluted share count, with the subsidiary equity represented as non-controlling interests in consolidated subsidiaries on our GAAP balance sheet. Consistent with the Amendment, we adjust GAAP diluted share count to include these subsidiary units.    

The following table presents our diluted weighted average shares used in our GAAP EPS calculation reconciled to our diluted weighted average shares used in our Distributable EPS calculation (amounts in thousands):

	For the Three Months Ended		For the Nine Months Ended
	September 30, 2022	June 30, 2022	September 30, 2022	September 30, 2021
Diluted weighted average shares - GAAP EPS	316,575	314,962	314,741	294,393
Add: Unvested stock awards	3,210	3,486	3,464	4,274
Add: Woodstar II Class A Units	9,773	9,773	9,773	10,282
Less: Convertible Notes dilution	(9,649)	(9,649)	(9,649)	(9,649)
Diluted weighted average shares - Distributable EPS	319,909	318,572	318,329	299,300

The definition of Distributable Earnings allows management to make adjustments, subject to the approval of a majority of our independent directors, in situations where such adjustments are considered appropriate in order for Distributable Earnings to be calculated in a manner consistent with its definition and objective. No adjustments to the definition of Distributable Earnings became effective during the nine months ended September 30, 2022.

The following table summarizes our quarterly Distributable Earnings per weighted average diluted share for the nine months ended September 30, 2022 and 2021:

	Distributable Earnings For the Three-Month Periods Ended
	March 31,		June 30,		September 30,
2022	$	0.76	$	0.51	$	0.51
2021	0.50		0.51		0.52

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The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended September 30, 2022, by business segment (amounts in thousands, except per share data). Refer to the footnotes following the Distributable Earnings reconciliation table for the nine months ended September 30, 2021.

	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Revenues	$	314,981	$	44,351	$	22,940	$	50,147	$	—	$	432,419
Costs and expenses	(175,619)		(33,133)		(24,153)		(33,194)		(70,679)		(336,778)
Other income (loss)	(21,275)		1,970		127,811		2,610		(31,668)		79,448
Income (loss) before income taxes	118,087		13,188		126,598		19,563		(102,347)		175,089
Income tax benefit (provision)	53,099		2		—		(4,346)		—		48,755
Income attributable to non-controlling interests	(3)		—		(28,486)		(793)		—		(29,282)
Net income (loss) attributable to Starwood Property Trust, Inc.	171,183		13,190		98,112		14,424		(102,347)		194,562
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		4,691		—		—		4,691
Non-controlling interests attributable to unrealized gains/losses	—		—		21,111		(4,019)		—		17,092
Non-cash equity compensation expense	1,660		338		75		1,458		6,172		9,703
Management incentive fee	—		—		—		—		895		895
Acquisition and investment pursuit costs	(22)		—		(82)		—		—		(104)
Depreciation and amortization	1,728		90		8,232		2,841		—		12,891
Interest income adjustment for securities	1,280		—		—		2,746		—		4,026
Extinguishment of debt, net	—		—		—		—		(246)		(246)
Consolidated income tax benefit associated with  fair value adjustments	(53,099)		(2)		—		4,346		—		(48,755)
Other non-cash items	55,522		—		344		76		—		55,942
Reversal of GAAP unrealized and realized (gains) / losses on: (1)
Loans	90,159		—		—		(2,685)		—		87,474
Credit loss provision, net	8,401		6,942		—		—		—		15,343
Securities	(16,398)		—		—		21,412		—		5,014
Woodstar Fund investments	—		—		(117,527)		—		—		(117,527)
Derivatives	(220,296)		(331)		(10,262)		(6,849)		31,668		(206,070)
Foreign currency	107,087		253		(22)		—		—		107,318
Loss (earnings) from unconsolidated entities	4,044		(1,892)		—		(602)		—		1,550
Sales of properties	—		—		—		(13,741)		—		(13,741)
Recognition of Distributable realized gains / (losses) on:
Loans (2)	(470)		—		—		3,078		—		2,608
Securities (4)	(1)		—		—		(5,341)		—		(5,342)
Woodstar Fund investments (5)	—		—		14,855		—		—		14,855
Derivatives (6)	9,144		18		1,345		2,923		(1,109)		12,321
Foreign currency (7)	(2,579)		(57)		22		—		—		(2,614)
(Loss) earnings from unconsolidated entities (8)	(3,846)		1,893		—		913		—		(1,040)
Sales of properties (9)	—		—		—		12,424		—		12,424
Distributable Earnings (Loss)	$	153,497	$	20,442	$	20,894	$	33,404	$	(64,967)	$	163,270
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	0.48	$	0.06	$	0.07	$	0.10	$	(0.20)	$	0.51

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The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended June 30, 2022, by business segment (amounts in thousands, except per share data). Refer to the footnotes following the Distributable Earnings reconciliation table for the nine months ended September 30, 2021.

	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Revenues	$	251,393	$	31,359	$	22,676	$	52,811	$	3	$	358,242
Costs and expenses	(113,248)		(19,249)		(21,446)		(35,619)		(72,854)		(262,416)
Other income (loss)	(122,744)		370		312,537		11,024		(13,183)		188,004
Income (loss) before income taxes	15,401		12,480		313,767		28,216		(86,034)		283,830
Income tax (provision) benefit	(557)		1		—		(1,650)		—		(2,206)
Income attributable to non-controlling interests	(4)		—		(67,482)		(1,851)		—		(69,337)
Net income (loss) attributable to Starwood Property Trust, Inc.	14,840		12,481		246,285		24,715		(86,034)		212,287
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		4,691		—		—		4,691
Non-controlling interests attributable to unrealized gains/losses	—		—		60,043		(1,910)		—		58,133
Non-cash equity compensation expense	2,036		345		76		1,424		6,026		9,907
Management incentive fee	—		—		—		—		5,271		5,271
Acquisition and investment pursuit costs	(39)		—		(82)		—		—		(121)
Depreciation and amortization	1,229		96		8,250		2,895		—		12,470
Interest income adjustment for securities	2,573		—		—		3,723		—		6,296
Extinguishment of debt, net	—		—		—		—		(247)		(247)
Other non-cash items	32,666		—		336		80		—		33,082
Reversal of GAAP unrealized and realized (gains) / losses on: (1)
Loans	121,356		—		—		(7,876)		—		113,480
Credit loss provision, net	7,925		513		—		—		—		8,438
Securities	19,312		—		—		8,150		—		27,462
Woodstar Fund investments	—		—		(307,165)		—		—		(307,165)
Derivatives	(127,140)		(265)		(5,354)		(9,007)		13,183		(128,583)
Foreign currency	78,331		289		(18)		—		—		78,602
Earnings from unconsolidated entities	(2,786)		(394)		—		(1,748)		—		(4,928)
Recognition of Distributable realized gains / (losses) on:
Loans (2)	(36,343)		—		—		7,753		—		(28,590)
Securities (4)	(333)		—		—		(4,413)		—		(4,746)
Woodstar Fund investments (5)	—		—		15,175		—		—		15,175
Derivatives (6)	38,905		(25)		(788)		7,436		2,510		48,038
Foreign currency (7)	(2,117)		(31)		18		—		—		(2,130)
Earnings from unconsolidated entities (8)	2,903		394		—		2,375		—		5,672
Distributable Earnings (Loss)	$	153,318	$	13,403	$	21,467	$	33,597	$	(59,291)	$	162,494
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	0.48	$	0.04	$	0.07	$	0.11	$	(0.19)	$	0.51

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Three Months Ended September 30, 2022 Compared to the Three Months Ended June 30, 2022

Commercial and Residential Lending Segment

The Commercial and Residential Lending Segment’s Distributable Earnings increased by $0.2 million, from $153.3 million during the second quarter of 2022 to $153.5 million in the third quarter of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $316.4 million, costs and expenses were $164.0 million, other income was $1.1 million and there was no income tax provision.

Revenues, consisting principally of interest income on loans, increased by $62.3 million in the third quarter of 2022, primarily due to an increase in interest income from loans of $56.6 million and investment securities of $4.7 million. The increase in interest income from loans reflects (i) a $58.3 million increase from commercial loans, reflecting higher average index rates and loan balances partially offset by lower prepayment related income and (ii) a $1.7 million decrease from residential loans principally due to lower average loan balances partially offset by higher average coupon rates. The increase in interest income from investment securities was primarily due to higher average index rates on commercial investments and higher RMBS investment balances and yields.

Costs and expenses increased by $61.8 million in the third quarter of 2022, primarily due to a $56.9 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio reflecting higher average index rates and borrowings outstanding.

Other income decreased by $0.9 million in the third quarter of 2022.

Income taxes, which principally relate to the taxable nature of this segment’s residential loan securitization activities which are housed in TRSs, decreased $0.6 million in the third quarter of 2022.

Infrastructure Lending Segment

The Infrastructure Lending Segment’s Distributable Earnings increased by $7.0 million, from $13.4 million during the second quarter of 2022 to $20.4 million in the third quarter of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $44.3 million, costs and expenses were $25.8 million and other income was $1.9 million.

Revenues, consisting principally of interest income on loans, increased by $13.0 million in the third quarter of 2022, primarily due to an increase in interest income from loans of $12.9 million reflecting higher average index rates and loan balances.

Costs and expenses increased by $7.5 million in the third quarter of 2022, primarily due to an increase in interest expense reflecting higher average index rates and borrowings outstanding.

Other income increased by $1.5 million in the third quarter of 2022, primarily due to an increase in earnings from an unconsolidated entity.

Property Segment

Distributable Earnings by Portfolio (amounts in thousands)

	For the Three Months Ended
	September 30, 2022		June 30, 2022		Change
Master Lease Portfolio	$	4,300	$	4,317	$	(17)
Medical Office Portfolio	5,155		5,532		(377)
Woodstar Fund, net of non-controlling interests	12,117		12,300		(183)
Other/Corporate	(678)		(682)		4
Distributable Earnings	$	20,894	$	21,467	$	(573)

The Property Segment’s Distributable Earnings decreased by $0.6 million, from $21.5 million during the second quarter of 2022 to $20.9 million in the third quarter of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $23.3 million, costs and expenses were $16.0 million, other income was $16.3 million and the deduction of income attributable to non-controlling interests in the Woodstar Fund was $2.7 million.

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Revenues increased by $0.2 million in the third quarter of 2022.

Costs and expenses increased by $2.7 million in the third quarter of 2022, primarily due to a $2.2 million increase in interest expense reflecting higher index rates on variable rate borrowings.

Other income increased by $1.8 million in the third quarter of 2022 primarily due to a $2.1 million favorable change in realized gain (loss) on derivatives which primarily hedge our interest rate risk on borrowings secured by our Medical Office Portfolio.

Income attributable to non-controlling interests in the Woodstar Fund decreased $0.1 million in the third quarter of 2022.

Investing and Servicing Segment

The Investing and Servicing Segment’s Distributable Earnings decreased by $0.2 million, from $33.6 million during the second quarter of 2022 to $33.4 million in the third quarter of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $53.0 million, costs and expenses were $28.9 million, other income was $14.1 million, there was no income tax provision and the deduction of income attributable to non-controlling interests was $4.8 million.

Revenues decreased by $3.6 million in the third quarter of 2022, primarily due to a $7.2 million decrease in servicing and other fees, partially offset by a $3.3 million net increase in interest income reflecting higher recoveries on CMBS investments but reduced interest on lower average balances of conduit loans. The treatment of CMBS interest income on a GAAP basis is complicated by our application of the ASC 810 consolidation rules. In an attempt to treat these securities similar to the trust’s other investment securities, we compute distributable interest income pursuant to an effective yield methodology. In doing so, we segregate the portfolio into various categories based on the components of the bonds’ cash flows and the volatility related to each of these components. We then accrete interest income on an effective yield basis using the components of cash flows that are reliably estimable. Other minor adjustments are made to reflect management’s expectations for other components of the projected cash flow stream.

Costs and expenses decreased by $2.4 million in the third quarter of 2022, primarily reflecting lower incentive compensation due to lower securitization volume in the third quarter of 2022.

Other income includes profit realized upon securitization of loans by our conduit business, gains on sales of CMBS and operating properties, gains and losses on derivatives that were either effectively terminated or novated, and earnings from unconsolidated entities. These items are typically offset by a decrease in the fair value of our domestic servicing rights intangible which reflects the expected amortization of this deteriorating asset, net of increases in fair value due to the attainment of new servicing contracts. Derivatives include instruments which hedge interest rate risk and credit risk on our conduit loans and CMBS investments. For GAAP purposes, the loans, CMBS and derivatives are accounted for at fair value, with all changes in fair value (realized or unrealized) recognized in earnings. The adjustments to Distributable Earnings outlined above are also applied to the GAAP earnings of our unconsolidated entities. Other income increased by $0.4 million in the third quarter of 2022.

Income taxes, which principally relate to the taxable nature of this segment’s loan servicing and loan securitization businesses which are housed in TRSs, decreased $1.6 million in the third quarter of 2022.

Income attributable to non-controlling interests increased $1.0 million, primarily due to non-controlling interests related to the sale of an operating property in the third quarter of 2022.

Corporate

Corporate loss increased by $5.7 million, from $59.3 million during the second quarter of 2022 to $65.0 million in the third quarter of 2022, primarily due to (i) a $3.0 million increase in interest expense attributable to higher index rates on our term loan and (ii) a $3.6 million decrease in realized gains on fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.

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The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the nine months ended September 30, 2022, by business segment (amounts in thousands, except per share data):

	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Revenues	$	791,554	$	103,508	$	68,031	$	160,767	$	3	$	1,123,863
Costs and expenses	(367,361)		(67,570)		(66,016)		(105,182)		(237,021)		(843,150)
Other income (loss)	(86,935)		2,820		691,936		34,295		(82,019)		560,097
Income (loss) before income taxes	337,258		38,758		693,951		89,880		(319,037)		840,810
Income tax benefit (provision)	57,682		7		—		(8,690)		—		48,999
Income attributable to non-controlling interests	(10)		—		(148,379)		(9,972)		—		(158,361)
Net income (loss) attributable to Starwood Property Trust, Inc.	394,930		38,765		545,572		71,218		(319,037)		731,448
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		14,073		—		—		14,073
Non-controlling interests attributable to unrealized gains/losses	—		—		126,056		(3,373)		—		122,683
Non-cash equity compensation expense	6,113		980		209		4,157		18,244		29,703
Management incentive fee	—		—		—		—		35,121		35,121
Acquisition and investment pursuit costs	(359)		—		(242)		(169)		—		(770)
Depreciation and amortization	3,191		281		24,774		8,888		—		37,134
Interest income adjustment for securities	6,343		—		—		4,761		—		11,104
Extinguishment of debt, net	—		—		—		—		(739)		(739)
Consolidated income tax benefit associated with  fair value adjustments	(53,099)		(2)		—		4,346		—		(48,755)
Other non-cash items	88,191		—		1,136		278		—		89,605
Reversal of GAAP unrealized and realized (gains) / losses on: (1)
Loans	327,743		—		—		(1,006)		—		326,737
Credit loss provision, net	13,027		7,096		—		—		—		20,123
Securities	5,019		—		—		38,853		—		43,872
Woodstar Fund investments	—		—		(658,733)		—		—		(658,733)
Derivatives	(465,831)		(1,228)		(33,162)		(43,719)		82,019		(461,921)
Foreign currency	212,672		570		(41)		—		—		213,201
Loss (earnings) from unconsolidated entities	2,598		(2,631)		—		(2,501)		—		(2,534)
Sales of properties	(86,610)		—		—		(25,599)		—		(112,209)
Recognition of Distributable realized gains / (losses) on:
Loans (2)	(73,021)		—		—		270		—		(72,751)
Securities (4)	(3,102)		—		—		(9,728)		—		(12,830)
Woodstar Fund investments (5)	—		—		45,689		—		—		45,689
Derivatives (6)	82,165		(59)		(1,102)		33,772		5,006		119,782
Foreign currency (7)	(4,874)		24		41		—		—		(4,809)
(Loss) earnings from unconsolidated entities (8)	(2,182)		2,632		—		3,758		—		4,208
Sales of properties (9)	84,738		—		—		12,601		—		97,339
Distributable Earnings (Loss)	$	537,652	$	46,428	$	64,270	$	96,807	$	(179,386)	$	565,771
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	1.69	$	0.15	$	0.20	$	0.30	$	(0.56)	$	1.78

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The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the nine months ended September 30, 2021, by business segment (amounts in thousands, except per share data):

	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Revenues	$	572,066	$	63,432	$	197,325	$	154,492	$	—	$	987,315
Costs and expenses	(166,414)		(39,341)		(183,643)		(106,414)		(194,726)		(690,538)
Other income (loss)	42,743		(535)		3,877		59,733		(6,362)		99,456
Income (loss) before income taxes	448,395		23,556		17,559		107,811		(201,088)		396,233
Income tax benefit (provision)	886		338		—		(7,602)		—		(6,378)
Income attributable to non-controlling interests	(10)		—		(14,682)		(18,873)		—		(33,565)
Net income (loss) attributable to Starwood Property Trust, Inc.	449,271		23,894		2,877		81,336		(201,088)		356,290
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		14,682		—		—		14,682
Non-controlling interests attributable to unrealized gains/losses	—		—		—		5,061		—		5,061
Non-cash equity compensation expense	5,427		1,163		142		3,179		19,448		29,359
Management incentive fee	—		—		—		—		19,107		19,107
Acquisition and investment pursuit costs	(458)		—		(266)		(58)		—		(782)
Depreciation and amortization	750		272		54,080		11,299		—		66,401
Interest income adjustment for securities	(2,332)		—		—		11,405		—		9,073
Extinguishment of debt, net	—		—		—		—		(739)		(739)
Consolidated income tax benefit associated with  fair value adjustments	(6,495)		—		—		405		—		(6,090)
Other non-cash items	12		—		(881)		585		413		129
Reversal of GAAP unrealized and realized (gains) / losses on: (1)
Loans	(24,079)		—		—		(44,037)		—		(68,116)
Credit loss (reversal) provision, net	(12,957)		594		—		—		—		(12,363)
Securities	20,134		—		—		2,545		—		22,679
Derivatives	(59,212)		(883)		(4,034)		(7,544)		5,881		(65,792)
Foreign currency	35,699		279		16		63		—		36,057
Earnings from unconsolidated entities	(5,415)		(75)		—		(235)		—		(5,725)
Sales of properties	(17,693)		—		—		(9,723)		—		(27,416)
Recognition of Distributable realized gains / (losses) on:
Loans (2)	44,625		—		—		44,436		—		89,061
Realized credit loss (3)	(7,757)		—		—		—		—		(7,757)
Securities (4)	(32,042)		—		—		(2,422)		—		(34,464)
Derivatives (6)	695		(185)		(5,412)		3,152		7,370		5,620
Foreign currency (7)	10,131		(54)		(16)		(63)		—		9,998
Earnings from unconsolidated entities (8)	9,468		75		—		2,001		—		11,544
Sales of properties (9)	8,298		—		—		4,975		—		13,273
Distributable Earnings (Loss)	$	416,070	$	25,080	$	61,188	$	106,360	$	(149,608)	$	459,090
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	1.39	$	0.08	$	0.20	$	0.36	$	(0.50)	$	1.53

______________________________________________________________________________________________________________________

(1)The reconciling items in this section are exactly equivalent to the amounts recognized within GAAP net income (before the consolidation of VIEs), each of which can be agreed back to the respective lines within Note 23 to our Condensed Consolidated Financial Statements. They reflect both unrealized and realized (gains) and losses. For added transparency and consistency of presentation, the entire amount recognized in GAAP income is reversed in this section, and the realized components of these amounts are reflected in the next section entitled “Recognition of Distributable realized gains / (losses).”

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(2)Represents the realized portion of GAAP gains (losses) on residential and commercial conduit loans carried under the fair value option that were sold during the period. The amount is calculated as the difference between (i) the net proceeds received in connection with a securitization or sale of loans and (ii) such loans’ historical cost basis.

(3)Represents loan losses that are deemed nonrecoverable, which is generally upon a realization event, such as when a loan is repaid, or in the case of foreclosure, when the underlying asset is sold. Non-recoverability may also be determined if, in our determination, it is nearly certain that amounts due will not be collected. The amount is calculated as the difference between the cash received and the book value of the asset.

(4)Represents the realized portion of GAAP gains (losses) on CMBS and RMBS carried under the fair value option that are sold or impaired during the period. Upon sale, the difference between the cash proceeds received and the historical cost basis of the security is treated as a realized gain or loss for Distributable Earnings purposes. We consider a CMBS or an RMBS credit loss to be realized when such amounts are deemed nonrecoverable. Non-recoverability is generally at the time the underlying assets within the securitization are liquidated, but non-recoverability may also be determined if, in our determination, it is nearly certain that all amounts due will not be collected. The amount is calculated as the difference between the cash received and the historical cost basis of the security.

(5)Represents GAAP income from the Woodstar Fund investments excluding unrealized changes in the fair value of its underlying assets and liabilities. The amount is calculated as the difference between the Woodstar Fund’s GAAP net income and its unrealized gains (losses), which represents changes in working capital and actual cash distributions received.

(6)Represents the realized portion of GAAP gains or losses on the termination or settlement of derivatives that are accounted for at fair value. Derivatives are only treated as realized for Distributable Earnings when they are terminated or settled, and cash is exchanged. The amount of cash received or paid to terminate or settle the derivative is the amount treated as realized for Distributable Earnings purposes at the time of such termination or settlement.

(7)Represents the realized portion of foreign currency gains (losses) related to assets and liabilities denominated in a foreign currency. Realization occurs when the foreign currency is converted back to USD. The amount is calculated as the difference between the foreign exchange rate at the time the asset was placed on the balance sheet and the foreign exchange rate at the time cash is received and is offset by any gains or losses on the related foreign currency derivative at settlement.

(8)Represents GAAP earnings (loss) from unconsolidated entities excluding non-cash items and unrealized changes in fair value recorded on the books and records of the unconsolidated entities. The difference between GAAP and Distributable Earnings for these entities principally relates to depreciation and unrealized changes in the fair value of mortgage loans and securities.

(9)Represents the realized gain (loss) on sales of properties held at depreciated cost. Because depreciation is a non-cash expense that is excluded from Distributable Earnings, GAAP gains upon sale of a property are higher, and GAAP losses are lower, than the respective realized amounts reflected in Distributable Earnings. The amount is calculated as net sales proceeds less undepreciated cost, adjusted for any noncontrolling interest.

Nine Months Ended September 30, 2022 Compared to the Nine Months Ended September 30, 2021

Commercial and Residential Lending Segment

The Commercial and Residential Lending Segment’s Distributable Earnings increased by $121.6 million, from $416.1 million during the nine months of 2021 to $537.7 million in the nine months of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $798.2 million, costs and expenses were $345.7 million, other income was $80.6 million and income tax benefit was $4.6 million.

Revenues, consisting principally of interest income on loans, increased by $228.4 million in the nine months of 2022, primarily due to increases in interest income from loans of $198.4 million and investment securities of $29.0 million. The increase in interest income from loans reflects (i) a $155.8 million increase from commercial loans, reflecting higher average balances and index rates, partially offset by the timing effect of certain loans being placed on nonaccrual, and (ii) a $42.6 million increase from residential loans principally due to higher average balances reflecting the timing of purchases and securitizations, partially offset by lower average coupon rates. The increase in interest income from investment securities was primarily due to higher commercial and RMBS average investment balances and the effect of higher index rates on certain commercial investments.

Costs and expenses increased by $164.2 million in the nine months of 2022, primarily due to a $157.2 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio. The increase in interest expense was primarily due to higher average borrowings outstanding and higher average index rates.

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Other income increased by $47.2 million in the nine months of 2022, primarily due to (i) a $76.4 million increased gain on sale of foreclosed properties and (ii) a $28.9 million decrease in recognized losses on RMBS investments, partially offset by (iii) a $46.0 million unfavorable change in gain (loss) on residential loan sales and securitizations, net of related interest rate derivatives, and (iv) a $15.0 million unfavorable change in Distributable Earnings (Loss) from an unconsolidated residential mortgage originator.

Income taxes principally relate to the taxable nature of this segment’s residential loan securitization activities which are housed in TRSs. Income taxes decreased $10.2 million to a benefit of $4.6 million in the nine months of 2022 compared to a provision of $5.6 million in the nine months of 2021. This decrease was primarily due to a significant reduction in securitization activity during the nine months of 2022 resulting from elevated market volatility during the period, as compared to a more normalized securitization environment in 2021. This market dislocation resulted in our holding more residential loans and recording net unrealized losses on those loans during the nine months of 2022, which led to a corresponding income tax benefit in the period.

Infrastructure Lending Segment

The Infrastructure Lending Segment’s Distributable Earnings increased by $21.3 million, from $25.1 million during the nine months of 2021 to $46.4 million in the nine months of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $103.5 million, costs and expenses were $59.2 million and other income was $2.1 million.

Revenues, consisting principally of interest income on loans, increased by $40.1 million in the nine months of 2022, primarily due to an increase in interest income from loans of $38.6 million, principally due to higher average loan balances and index rates.

Costs and expenses increased by $21.9 million in the nine months of 2022, primarily due to an increase in interest expense reflecting higher average borrowings outstanding and higher average index rates.

Other income increased by $3.5 million from a loss in the nine months of 2021 to income in the nine months of 2022, primarily due to a $2.6 million increase in earnings from an unconsolidated entity and a $0.8 million lower loss on extinguishment of debt.

Property Segment

Distributable Earnings by Portfolio (amounts in thousands)

	For the Nine Months Ended September 30,
	2022		2021		Change
Master Lease Portfolio	$	12,959	$	12,925	$	34
Medical Office Portfolio	16,342		15,382		960
Woodstar I Portfolio	—		18,633		(18,633)
Woodstar II Portfolio	—		16,518		(16,518)
Woodstar Fund, net of non-controlling interests	37,136		—		37,136
Other/Corporate	(2,167)		(2,270)		103
Distributable Earnings	$	64,270	$	61,188	$	3,082

The Property Segment’s Distributable Earnings increased by $3.1 million, from $61.2 million during the nine months of 2021 to $64.3 million in the nine months of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $69.2 million, costs and expenses were $41.4 million, other income was $44.7 million and the deduction of income attributable to non-controlling interests in the Woodstar Fund was $8.2 million.

Revenues decreased by $127.3 million in the nine months of 2022, primarily due to the conversion of the Woodstar Portfolios to the Woodstar Fund on November 5, 2021.

Costs and expenses decreased by $88.4 million in the nine months of 2022, primarily due to the Woodstar Fund conversion referred to above.

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Other income increased by $50.2 million from a loss in the nine months of 2021 to income in the nine months of 2022 primarily due to $45.7 million of Distributable Earnings (before non-controlling interests of $8.2 million) from the Woodstar Fund investments in the nine months of 2022.

Investing and Servicing Segment

The Investing and Servicing Segment’s Distributable Earnings decreased by $9.6 million from $106.4 million during the nine months of 2021 to $96.8 million in the nine months of 2022. After making adjustments for the calculation of Distributable Earnings, revenues were $166.0 million, costs and expenses were $92.5 million, other income was $41.0 million, income tax provision was $4.3 million and the deduction of income attributable to non-controlling interests was $13.4 million.

Revenues decreased by $0.8 million in the nine months of 2022.

Costs and expenses increased by $0.2 million in the nine months of 2022.

Other income decreased by $11.9 million in the nine months of 2022, primarily due to (i) a $44.2 million decrease in realized gains on conduit loans, partially offset by (ii) a $30.6 million increase in realized gains on derivatives, principally related to conduit loans.

Income taxes, which principally relate to the taxable nature of this segment’s loan servicing and loan securitization businesses which are housed in TRSs, decreased $2.9 million due to lower taxable income of those TRSs during the nine months of 2022.

Income attributable to non-controlling interests decreased $0.4 million.

Corporate

Corporate loss increased by $29.8 million, from $149.6 million during the nine months of 2021 to $179.4 million in the nine months of 2022, primarily due to (i) a $19.6 million increase in interest expense on higher average outstanding term loan and unsecured senior note balances, (ii) a $7.3 million increase in base management fees and (iii) a $2.4 million decrease in realized gains on fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet our cash requirements, including ongoing commitments to repay borrowings, fund and maintain our assets and operations, make new investments where appropriate, pay dividends to our stockholders, and other general business needs. We closely monitor our liquidity position and believe that we have sufficient current liquidity and access to additional liquidity to meet our financial obligations for at least the next 12 months. Our strategy for managing liquidity and capital resources has not changed since December 31, 2021. Refer to our Form 10-K for a description of these strategies.

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Sources of Liquidity

Our primary sources of liquidity are as follows:

Cash Flows for the Nine Months Ended September 30, 2022 (amounts in thousands)

	GAAP		VIE Adjustments		Excluding Securitization VIEs
Net cash provided by operating activities	$	844,734	$	(1,960)	$	842,774
Cash Flows from Investing Activities:
Origination, purchase and funding of loans held-for-investment	(5,007,398)		—		(5,007,398)
Proceeds from principal collections and sale of loans	1,911,325		—		1,911,325
Purchase and funding of investment securities	(86,058)		(289,833)		(375,891)
Proceeds from sales and collections of investment securities	19,431		64,555		83,986
Proceeds from sales of real estate	166,424		—		166,424
Purchases and additions to properties and other assets	(17,295)		—		(17,295)
Net cash flows from other investments and assets	157,173		—		157,173
Net cash used in investing activities	(2,856,398)		(225,278)		(3,081,676)
Cash Flows from Financing Activities:
Proceeds from borrowings	11,603,576		—		11,603,576
Principal repayments on and repurchases of borrowings	(8,751,730)		(299)		(8,752,029)
Payment of deferred financing costs	(48,847)		—		(48,847)
Proceeds from common stock issuances, net of offering costs	33,960		—		33,960
Payment of dividends	(442,794)		—		(442,794)
Contributions from non-controlling interests	21,926		—		21,926
Distributions to non-controlling interests	(37,847)		—		(37,847)
Repayment of debt of consolidated VIEs	(290,132)		290,132		—
Distributions of cash from consolidated VIEs	64,555		(64,555)		—
Net cash provided by financing activities	2,152,667		225,278		2,377,945
Net increase in cash, cash equivalents and restricted cash	141,003		(1,960)		139,043
Cash, cash equivalents and restricted cash, beginning of period	321,914		(590)		321,324
Effect of exchange rate changes on cash	(1,637)		—		(1,637)
Cash, cash equivalents and restricted cash, end of period	$	461,280	$	(2,550)	$	458,730

The discussion below is on a non-GAAP basis, after removing adjustments principally resulting from the consolidation of the securitization VIEs under ASC 810. These adjustments principally relate to (i) the purchase of CMBS, RMBS, loans and real estate from consolidated VIEs, which are reflected as repayments of VIE debt on a GAAP basis and (ii) sales, principal collections and redemptions of CMBS and RMBS related to consolidated VIEs, which are reflected as VIE distributions on a GAAP basis. There is no significant net impact to overall cash resulting from these consolidations. Refer to Note 2 to the Condensed Consolidated Financial Statements for further discussion.

Cash and cash equivalents increased by $139.0 million during the nine months ended September 30, 2022, reflecting net cash provided by financing activities of $2.4 billion and operating activities of $842.8 million, partially offset by net cash used in investing activities of $3.1 billion.

Net cash provided by operating activities of $842.8 million during the nine months ended September 30, 2022 related primarily to cash interest income of $641.3 million from our loans and $139.5 million from our investment securities, sales and principal collections, net of purchases and originations, of loans held-for-sale of $351.8 million and net change in operating assets and liabilities of $269.9 million. Net rental income provided cash of $61.4 million and servicing fees provided cash of $41.8 million. Offsetting these cash inflows was cash interest expense of $424.0 million, management fees of $107.0 million and general and administrative expenses of $90.6 million.

Net cash used in investing activities of $3.1 billion for the nine months ended September 30, 2022 related primarily to the origination and acquisition of loans held-for-investment of $5.0 billion and the purchase and funding of investment

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securities of $375.9 million, partially offset by proceeds received from principal collections and sales of loans of $1.9 billion and investment securities of $84.0 million and sales of operating properties for $166.4 million.

Net cash provided by financing activities of $2.4 billion for the nine months ended September 30, 2022 related primarily to borrowings on our debt, net of repayments and deferred loan costs, of $2.8 billion, partially offset by dividend distributions of $442.8 million.

Our Investment Portfolio

The following is a review of our investment portfolio by segment.

Commercial and Residential Lending Segment

The following table sets forth the amount of each category of investments we owned across various property types within our Commercial and Residential Lending Segment as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Face Amount		Carrying Value			Asset Specific Financing		Net Investment		Unlevered Return on Asset (6)
September 30, 2022
First mortgages (1)	$	15,253,973	$	15,164,460		$	11,087,584	$	4,076,876	5.9	%
Subordinated mortgages (2)	70,966		69,793			—		69,793		13.9	%
Mezzanine loans (1)	435,818		438,457			—		438,457		12.7	%
Residential loans, fair value option	54,569		53,176			33,020		20,156		5.8	%	(5)
Other loans	59,850		58,694			—		58,694		13.3	%
Loans held-for-sale, fair value option, residential	2,340,929		2,125,827			1,552,502		573,325		4.7	%	(5)
RMBS, available-for-sale	205,834		116,577			80,046		36,531		11.4	%
RMBS, fair value option	326,274		418,480		(3)	104,074		314,406		9.9	%
CMBS, fair value option	102,900		97,144		(3)	49,798		47,346		5.3	%
HTM debt securities (4)	674,501		677,685			133,142		544,543		6.8	%
Credit loss allowance	—		(65,719)			—		(65,719)
Equity security	10,200		9,343			—		9,343
Investments in unconsolidated entities	N/A		34,319			—		34,319
Properties, net	N/A		214,896			87,750		127,146
	$	19,535,814	$	19,413,132		$	13,127,916	$	6,285,216
December 31, 2021
First mortgages (1)	$	13,057,621	$	12,981,196		$	9,116,486	$	3,864,710	5.2	%
Subordinated mortgages (2)	72,371		70,771			—		70,771		11.8	%
Mezzanine loans (1)	415,155		417,504			—		417,504		10.9	%
Residential loans, fair value option	60,133		59,225			36,934		22,291		6.0	%	(5)
Other loans	19,029		17,424			—		17,424		13.3	%
Loans held-for-sale, fair value option, residential	2,525,910		2,590,005			1,808,372		781,633		4.2	%	(5)
RMBS, available-for-sale	221,806		143,980			97,354		46,626		11.8	%
RMBS, fair value option	127,437		250,424		(3)	37,213		213,211		12.6	%
CMBS, fair value option	102,900		98,211		(3)	49,798		48,413		5.2	%
HTM debt securities (4)	655,557		656,915			113,143		543,772		6.7	%
Credit loss allowance	—		(52,302)			—		(52,302)
Equity security	12,366		11,624			—		11,624
Investments in unconsolidated entities	N/A		44,938			—		44,938
Properties, net	N/A		124,503			49,483		75,020
	$	17,270,285	$	17,414,418		$	11,308,783	$	6,105,635

__________________________________________

(1)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this

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methodology resulted in mezzanine loans with carrying values of $1.2 billion and $1.4 billion being classified as first mortgages as of September 30, 2022 and December 31, 2021, respectively.

(2)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.

(3)Eliminated in consolidation against VIE liabilities pursuant to ASC 810.

(4)CMBS held-to-maturity (“HTM”) and mandatorily redeemable preferred equity interests in commercial real estate entities.

(5)Represents the weighted average coupon of residential mortgage loans.

(6)Calculated using applicable index rates for variable rate investments as of the respective period end and excludes loans for which interest income is not recognized.

As of September 30, 2022 and December 31, 2021, our Commercial and Residential Lending Segment’s investment portfolio, excluding residential loans, RMBS, properties and other investments, had the following characteristics based on carrying values:

Collateral Property Type	September 30, 2022		December 31, 2021
Multifamily	33.6	%	27.3	%
Office	23.4	%	29.5	%
Hotel	16.5	%	19.0	%
Mixed Use	9.6	%	11.5	%
Industrial	5.5	%	5.6	%
Residential	1.8	%	1.6	%
Retail	1.7	%	2.1	%
Other	7.9	%	3.4	%
	100.0	%	100.0	%

Geographic Location	September 30, 2022		December 31, 2021
U.S. Regions:
South East	16.9	%	12.9	%
North East	16.3	%	20.0	%
South West	15.8	%	13.0	%
West	12.4	%	15.1	%
Mid Atlantic	9.4	%	10.8	%
Midwest	2.8	%	3.4	%
International:
United Kingdom	12.7	%	15.8	%
Other Europe	4.8	%	5.1	%
Bahamas/Bermuda	1.8	%	2.1	%
Australia	7.1	%	1.8	%
	100.0	%	100.0	%

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Infrastructure Lending Segment

The following table sets forth the amount of each category of investments we owned within our Infrastructure Lending Segment as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Face Amount		Carrying Value		Asset Specific Financing		Net Investment		Unlevered Return on Asset (1)
September 30, 2022
First priority infrastructure loans and HTM securities	$	2,513,394	$	2,471,992	$	1,908,888	$	563,104	7.0	%
Credit loss allowance	—		(30,820)		—		(30,820)
Investments in unconsolidated entities	—		29,347		—		29,347
	$	2,513,394	$	2,470,519	$	1,908,888	$	561,631
December 31, 2021
First priority infrastructure loans and HTM securities	$	2,116,836	$	2,082,927	$	1,630,866	$	452,061	5.1	%
Credit loss allowance	—		(23,578)		—		(23,578)
Investments in unconsolidated entities	—		26,255		—		26,255
	$	2,116,836	$	2,085,604	$	1,630,866	$	454,738

__________________________________________

(1)Calculated using applicable index rates for variable rate investments as of the respective period end and excludes loans for which interest income is not recognized.

As of September 30, 2022 and December 31, 2021, our Infrastructure Lending Segment’s investment portfolio had the following characteristics based on carrying values:

Collateral Type	September 30, 2022		December 31, 2021
Natural gas power	61.7	%	61.0	%
Midstream/downstream oil & gas	37.0	%	33.2	%
Renewable power	—	%	1.8	%
Other thermal power	1.3	%	4.0	%
	100.0	%	100.0	%

Geographic Location	September 30, 2022		December 31, 2021
U.S. Regions:
North East	39.4	%	41.5	%
South West	21.3	%	19.5	%
Midwest	21.0	%	18.9	%
South East	7.4	%	8.8	%
West	4.6	%	4.3	%
Other	2.0	%	2.1	%
Mid-Atlantic	1.8	%	1.6	%
International:
Mexico	1.7	%	2.0	%
Other	0.8	%	1.3	%
	100.0	%	100.0	%

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Property Segment

The following table sets forth the amount of each category of investments held within our Property Segment as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
Properties, net	$	868,454	$	887,553
Lease intangibles, net	29,609		33,151
Woodstar Fund	1,669,265		1,040,309
	$	2,567,328	$	1,961,013

The following table sets forth our net investment and other information regarding the Property Segment’s properties and lease intangibles as of September 30, 2022 (dollars in thousands):

	Carrying Value		Asset Specific Financing		Net Investment		Occupancy Rate		Weighted Average Remaining Lease Term
Office—Medical Office Portfolio	$	764,832	$	595,851	$	168,981	91.5	%	5.8 years
Retail—Master Lease Portfolio	343,790		193,287		150,503		100.0	%	19.6 years
Subtotal—undepreciated carrying value	1,108,622		789,138		319,484
Accumulated depreciation and amortization	(210,559)		—		(210,559)
Net carrying value	$	898,063	$	789,138	$	108,925

As of September 30, 2022 and December 31, 2021, our Property Segment’s investment portfolio had the following geographic characteristics based on carrying values:

Geographic Location	September 30, 2022		December 31, 2021
South East	80.7	%	77.4	%
South West	5.3	%	6.2	%
Midwest	5.1	%	6.0	%
North East	4.9	%	5.7	%
West	4.0	%	4.7	%
	100.0	%	100.0	%

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Investing and Servicing Segment

The following table sets forth the amount of each category of investments we owned within our Investing and Servicing Segment as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Face Amount		Carrying Value			Asset Specific Financing			Net Investment
September 30, 2022
CMBS, fair value option	$	2,781,327	$	1,183,831	(1)	$	407,931	(2)	$	775,900
Intangible assets - servicing rights	N/A		59,581		(3)	—			59,581
Lease intangibles, net	N/A		9,723			—			9,723
Loans held-for-sale, fair value option, commercial	82,223		79,857			60,329			19,528
Loans held-for-investment	9,660		9,660			—			9,660
Investments in unconsolidated entities	N/A		35,494		(4)	—			35,494
Properties, net	N/A		134,076			144,149			(10,073)
	$	2,873,210	$	1,512,222		$	612,409		$	899,813
December 31, 2021
CMBS, fair value option	$	2,694,413	$	1,165,395	(1)	$	380,004	(2)	$	785,391
Intangible assets - servicing rights	N/A		58,899		(3)	—			58,899
Lease intangibles, net	N/A		11,342			—			11,342
Loans held-for-sale, fair value option, commercial	289,761		286,795			173,430			113,365
Loans held-for-investment	9,903		9,903			—			9,903
Investments in unconsolidated entities	N/A		34,160		(4)	—			34,160
Properties, net	N/A		154,331			160,803			(6,472)
	$	2,994,077	$	1,720,825		$	714,237		$	1,006,588

______________________________________________

(1)Includes $1.16 billion and $1.14 billion of CMBS eliminated in consolidation against VIE liabilities pursuant to ASC 810 as of September 30, 2022 and December 31, 2021. Also includes $200.0 million and $182.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of September 30, 2022 and December 31, 2021, respectively.

(2)Includes $43.2 million and $35.8 million of non-controlling interests in the consolidated entities which hold certain debt balances as of September 30, 2022 and December 31, 2021, respectively.

(3)Includes $41.6 million and $42.1 million of servicing rights intangibles eliminated in consolidation against VIE assets pursuant to ASC 810 as of September 30, 2022 and December 31, 2021, respectively.

(4)Includes $16.0 million and $15.3 million of investments in unconsolidated entities eliminated in consolidation against VIE assets pursuant to ASC 810 as of September 30, 2022 and December 31, 2021, respectively.

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Our REIS Equity Portfolio, as described in Note 6 to the Condensed Consolidated Financial Statements, had the following characteristics based on carrying values as of September 30, 2022 and December 31, 2021, respectively:

Property Type	September 30, 2022		December 31, 2021
Retail	44.4	%	37.9	%
Office	27.5	%	37.4	%
Mixed Use	10.4	%	9.0	%
Self-storage	9.2	%	8.0	%
Multifamily	6.1	%	5.4	%
Hotel	2.4	%	2.3	%
	100.0	%	100.0	%

Geographic Location	September 30, 2022		December 31, 2021
North East	35.7	%	31.8	%
West	20.0	%	18.1	%
Mid Atlantic	19.4	%	14.5	%
Midwest	11.1	%	10.1	%
South West	7.7	%	6.6	%
South East	6.1	%	18.9	%
	100.0	%	100.0	%

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New Credit Facilities and Amendments

Refer to Note 10 of our Condensed Consolidated Financial Statements for a detailed discussion of new credit facilities and amendments to existing credit facilities executed since December 31, 2021.

Secured Borrowings

The following table is a summary of our secured borrowings as of September 30, 2022 (dollars in thousands):

	Current Maturity		Extended Maturity (a)		Weighted Average Pricing		Pledged Asset Carrying Value			Maximum Facility Size			Outstanding Balance			Approved but Undrawn Capacity (b)		Unallocated Financing Amount (c)
Repurchase Agreements:
Commercial Loans	Jun 2023 to Jun 2027	(d)	Sep 2025 to Dec 2030	(d)	Index + 2.09%	(e)	$	10,854,556		$	12,291,964	(f)	$	7,971,502		$	77,706	$	4,242,756
Residential Loans	May 2023 to Dec 2023		May 2023 to Dec 2024		Index + 2.10%		1,633,554			2,502,614			1,407,163			—		1,095,451
Infrastructure Loans	Sep 2024		Sep 2026		SOFR + 2.07%		379,346			650,000			316,737			—		333,263
Conduit Loans	Feb 2023 to Jun 2025		Feb 2024 to Jun 2026		SOFR + 2.28%		79,857			350,000			60,941			—		289,059
CMBS/RMBS	Jun 2023 to Apr 2032	(g)	Jun 2023 to Oct 2032	(g)	(h)		1,485,618			1,113,025			787,020		(i)	—		326,005
Total Repurchase Agreements							14,432,931			16,907,603			10,543,363			77,706		6,286,534
Other Secured Financing:
Borrowing Base Facility	Nov 2024		Oct 2026		SOFR + 2.11%		23,226			750,000		(j)	2,000			15,415		732,585
Commercial Financing Facilities	Dec 2023 to Aug 2025		Aug 2027 to Dec 2030		Index + 1.77%		348,619			445,295		(k)	271,918			—		173,377
Residential Financing Facility	Mar 2024		Mar 2027		SOFR + 2.45%		545,450			500,000			179,418			302,739		17,843
Infrastructure Financing Facilities	Jun 2025 to Oct 2025		Jun 2027 to Jul 2032		Index + 2.16%		1,002,010			1,550,000			790,995			—		759,005
Property Mortgages - Fixed rate	Nov 2024 to Sep 2029	(l)	N/A		4.48%		381,440			275,800			275,800			—		—
Property Mortgages - Variable rate	Nov 2022 to Mar 2025		N/A		(m)		767,293			733,750			730,315			—		3,435
Term Loan and Revolver	(n)		N/A		(n)		N/A		(n)	932,763			782,763			150,000		—
STWD 2022-FL3 CLO	Nov 2038		N/A		SOFR + 1.64%		1,010,268			842,500			842,500			—		—
STWD 2021-HTS SASB	Apr 2034		N/A		LIBOR + 2.22%		230,923			210,091			210,091			—		—
STWD 2021-FL2 CLO	Apr 2038		N/A		LIBOR + 1.50%		1,282,627			1,077,375			1,077,375			—		—
STWD 2019-FL1 CLO	Jul 2038		N/A		SOFR + 1.40%		921,634			755,482			755,482			—		—
STWD 2021-SIF2 CLO	Jan 2033		N/A		SOFR + 1.89%		508,186			410,000			410,000			—		—
STWD 2021-SIF1 CLO	Apr 2032		N/A		LIBOR + 1.81%		508,667			410,000			410,000			—		—
Total Other Secured Financing							7,530,343			8,893,056			6,738,657			468,154		1,686,245
							$	21,963,274		$	25,800,659		$	17,282,020		$	545,860	$	7,972,779
Unamortized net discount													(6,771)
Unamortized deferred financing costs													(88,351)
													$	17,186,898

___________________________________________

(a)Subject to certain conditions as defined in the respective facility agreement.

(b)Approved but undrawn capacity represents the total draw amount that has been approved by the lenders related to those assets that have been pledged as collateral, less the drawn amount.

(c)Unallocated financing amount represents the maximum facility size less the total draw capacity that has been approved by the lenders.

(d)For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions.

(e)Certain facilities with an outstanding balance of $2.7 billion as of September 30, 2022 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to USD LIBOR and SOFR.

(f)Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.3 billion, subject to certain conditions. The $12.3 billion amount includes such upsizes.

(g)Certain facilities with an outstanding balance of $368.9 million as of September 30, 2022 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size.

(h)A facility with an outstanding balance of $263.9 million as of September 30, 2022 has a weighted average fixed annual interest rate of 3.27%. All other facilities are variable rate with a weighted average rate of Index + 1.96%.

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(i)Includes: (i) $263.9 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $43.2 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15 to the Condensed Consolidated Financial Statements).

(j)The maximum facility size as of September 30, 2022 of $650.0 million is scheduled to decline to $450.0 million as of December 31, 2022 and may be increased to $750.0 million, subject to certain conditions.

(k)Certain facilities with an aggregate initial maximum facility size of $345.3 million may be increased to $445.3 million, subject to certain conditions. The $445.3 million amount includes such upsizes.

(l)The weighted average maturity is 4.8 years as of September 30, 2022.

(m)Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of Index + 2.26%.

(n)Consists of: (i) a $782.8 million term loan facility that matures in July 2026, of which $388.0 million has an annual interest rate of LIBOR + 2.50% and $394.8 million has an annual interest rate of LIBOR + 3.25%, subject to a 0.75% LIBOR floor, and (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.50%. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.0 billion as of September 30, 2022.

The above table no longer reflects property mortgages of the Woodstar Portfolios which, as discussed in Notes 2 and 7 to the Condensed Consolidated Financial Statements, are now reflected within “Investments of consolidated affordable housing fund” on our condensed consolidated balance sheets.

Refer to Note 10 to the Condensed Consolidated Financial Statements for further disclosure regarding the terms of our secured financing arrangements.

Variance between Average and Quarter-End Credit Facility Borrowings Outstanding

The following table compares the average amount outstanding under our secured financing agreements during each quarter and the amount outstanding as of the end of each quarter, together with an explanation of significant variances (amounts in thousands):

Quarter Ended	Quarter-End Balance	Weighted-Average Balance During Quarter	Variance	Explanations for Significant Variances
December 31, 2021	15,288,261	14,428,687	859,574	(a)
March 31, 2022	15,419,344	15,645,668	(226,324)	(b)
June 30, 2022	17,008,158	16,151,019	857,139	(c)
September 30, 2022	17,282,020	17,521,495	(239,475)	(d)

_____________________________________________

(a)Variance primarily due to (i) late quarter draws on commercial, residential and infrastructure loan facilities given the majority of the quarter’s loan closings were back-ended to the last half of the quarter; offset by (ii) the accounting for the Woodstar Fund, which requires property level debt to be presented net within investments of consolidated affordable housing fund.

(b)Variance primarily due to sales and securitizations that occurred late in the quarter.

(c)Variance primarily due to late quarter timing of loan pledges and advances.

(d)Variance primarily due to late quarter timing of debt pay downs from excess cash.

Borrowings under Unsecured Senior Notes

During the three months ended September 30, 2022 and 2021, the weighted average effective borrowing rate on our unsecured senior notes was 4.7% and 5.0%, respectively. During the nine months ended September 30, 2022 and 2021, the weighted average effective borrowing rate on our unsecured senior notes was 4.8% and 5.2%, respectively. The effective borrowing rate includes the effects of underwriter purchase discount.

Refer to Note 11 to the Condensed Consolidated Financial Statements for further disclosure regarding the terms of our unsecured senior notes.

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Scheduled Principal Repayments on Investments and Overhang on Financing Facilities

The following scheduled and/or projected principal repayments on our investments were based on amounts outstanding and extended contractual maturities of those investments as of September 30, 2022. The projected and/or required repayments of financing were based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands):

	Scheduled Principal Repayments on Loans and HTM Securities		Scheduled/Projected Principal Repayments on RMBS and CMBS		Projected/Required Repayments of Financing		Scheduled Principal Inflows Net of Financing Outflows
Fourth Quarter 2022	$	730,880	$	6,145	$	(381,375)	$	355,650
First Quarter 2023	321,536		6,093		(189,566)		138,063
Second Quarter 2023	702,348		35,943		(1,591,264)		(852,973)		(1)
Third Quarter 2023	548,068		3,507		(774,100)		(222,525)		(2)
Total	$	2,302,832	$	51,688	$	(2,936,305)	$	(581,785)

__________________________________________________

(1)Shortfall primarily relates to $850.0 million of repayments under a Residential Loans repurchase facility that carries a one-year term which we can extend every three months with the lender’s consent.

(2)Shortfall primarily relates to $355.8 million of repayments under a securities facility which carries a rolling 12-month term that we have historically extended, and intend to continue to extend with the lender’s consent.

In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations.

Issuances of Equity Securities

We may raise funds through capital market transactions by issuing capital stock. There can be no assurance, however, that we will be able to access the capital markets at any particular time or on any particular terms. We have authorized 100,000,000 shares of preferred stock and 500,000,000 shares of common stock. At September 30, 2022, we had 100,000,000 shares of preferred stock available for issuance and 190,416,377 shares of common stock available for issuance.

Other Potential Sources of Financing

In the future, we may also use other sources of financing to fund the acquisition of our target assets and maturities of our unsecured senior notes, including other secured as well as unsecured forms of borrowing and sale of senior loan interests and other assets.

Leverage Policies

Our strategies with regards to use of leverage have not changed significantly since December 31, 2021. Refer to our Form 10-K for a description of our strategies regarding use of leverage.

Cash Requirements

Dividends

U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. We generally intend to distribute substantially all of our taxable income (which does not necessarily equal our GAAP net income) to our stockholders each year, if and to the extent authorized by our board of directors. Before we pay any dividend, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating and debt service requirements. If our cash available for distribution is less than our net taxable income, we could be required to sell assets or borrow funds to make cash distributions or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities. Refer to our Form 10-K for a detailed dividend history.

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The Company’s board of directors declared the following dividends during the nine months ended September 30, 2022:

Declaration Date	Record Date	Payment Date	Amount		Frequency
9/16/22	9/30/22	10/14/22	$	0.48	Quarterly
6/15/22	6/30/22	7/15/22	$	0.48	Quarterly
3/14/22	3/31/22	4/15/22	$	0.48	Quarterly

Contractual Obligations and Commitments

Our material contractual obligations and commitments as of September 30, 2022 are as follows (amounts in thousands):

	Total		Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years
Secured financings (a)	$	13,576,572	$	1,424,638	$	3,149,865	$	6,861,816	$	2,140,253
CLOs and SASB (b)	3,705,448		721,732		906,976		1,979,332		97,408
Unsecured senior notes	2,350,000		250,000		1,200,000		900,000		—
Future loan commitments:
Commercial Lending (c)	2,495,912		1,644,136		801,840		49,936		—
Residential Lending (d)	51,600		51,600		—		—		—
Infrastructure Lending (e)	156,730		156,730		—		—		—

__________________________________________________

(a)Represents the contractual maturity of the respective credit facility, inclusive of available extension options.  If investments that have been pledged as collateral repay earlier than the contractual maturity of the debt, the related portion of the debt would likewise require earlier repayment. Refer to Note 10 to the Consolidated Financial Statements for the expected maturities by year.

(b)Represents the fully extended maturity of the underlying collateral.

(c)Excludes $314.3 million of loan funding commitments in which management projects the Company will not be obligated to fund in the future due to repayments made by the borrower earlier than, or in excess of, expectations.

(d)Represents outstanding residential loan purchase commitments.

(e)Represents contractual commitments of $138.6 million under revolvers and letters of credit and $18.2 million of outstanding infrastructure loan purchase commitments.

The table above does not include interest payable, amounts due under our management agreement, amounts due under our derivative agreements or amounts due under guarantees as those contracts do not have fixed and determinable payments.

Our secured financings, CLOs and SASB consist primarily of matched-term funding for our loans and investment securities and long-term mortgages on our owned properties. Repayments of such facilities are generally made from proceeds from maturities, prepayments or sales of such investments and operating cash flows from owned properties. In the normal course of business, we are in discussions with our lenders to extend, amend or replace any financing facilities which contain near term expirations.

Our unsecured senior notes are expected to be repaid from a combination of available cash on hand, approved but undrawn capacity under our secured financing agreements, and/or equity issuances or other potential sources of financing, as discussed above, including issuances of new unsecured senior notes.

Our future loan commitments are expected to be primarily matched-term funded under secured financing agreements with any difference funded from available cash on hand or other potential sources of financing discussed above.

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Critical Accounting Estimates

Refer to the section of our Form 10-K entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” for a full discussion of our critical accounting estimates. Our critical accounting estimates have not materially changed since December 31, 2021.

Recent Accounting Developments

Refer to Note 2 to the Condensed Consolidated Financial Statements for a discussion of recent accounting developments and the expected impact to the Company.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We seek to manage our risks related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value while, at the same time, seeking to provide an opportunity to stockholders to realize attractive risk-adjusted returns through ownership of our capital stock. While we do not seek to avoid risk completely, we believe the risk can be quantified from historical experience and seek to actively manage that risk, to earn sufficient compensation to justify taking those risks and to maintain capital levels consistent with the risks we undertake. Our strategies for managing risk and our exposure to such risks, as described in Item 7A of our Form 10-K, have not changed materially since December 31, 2021 except as described below.

Credit Risk

Our loans and investments are subject to credit risk. The performance and value of our loans and investments depend upon the owners’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay interest and principal due to us. To monitor this risk, our asset management team reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary.

We seek to further manage credit risk associated with our Investing and Servicing Segment loans held-for-sale through the purchase of credit instruments. The following table presents our credit instruments as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Face Value of Loans Held-for-Sale		Aggregate Notional Value of Credit Instruments		Number of Credit Instruments
September 30, 2022	$	11,700	$	49,000	3
December 31, 2021	$	289,761	$	49,000	3

Interest Rate Risk

Interest rates are highly sensitive to many factors, including fiscal and monetary policies and domestic and international economic and political considerations, as well as other factors beyond our control. We are subject to interest rate risk in connection with our investments and the related financing obligations. In general, we seek to match the interest rate characteristics of our investments with the interest rate characteristics of any related financing obligations such as repurchase agreements, bank credit facilities, term loans, revolving facilities and securitizations. In instances where the interest rate characteristics of an investment and the related financing obligation are not matched, we mitigate such interest rate risk through the utilization of interest rate derivatives of the same duration. The following table presents financial instruments where we have utilized interest rate derivatives to hedge interest rate risk and the related interest rate derivatives as of September 30, 2022 and December 31, 2021 (dollars in thousands):

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	Face Value of Hedged Instruments		Aggregate Notional Value of Credit Instruments		Number of Credit Instruments
Instrument hedged as of September 30, 2022
Loans held-for-sale	$	2,352,629	$	2,709,000	33
RMBS, available-for-sale	205,834		85,000		2
CMBS, fair value option	88,193		58,800		2
HTM debt securities	12,580		12,580		1
Secured financing agreements	676,626		1,466,043		9
Unsecured senior notes	1,000,000		970,000		2
	$	4,335,862	$	5,301,423	49
Instrument hedged as of December 31, 2021
Loans held-for-sale	$	2,815,671	$	2,135,800	62
RMBS, available-for-sale	221,806		85,000		2
CMBS, fair value option	79,651		71,000		2
HTM debt securities	14,283		14,283		1
Secured financing agreements	754,620		1,425,396		10
Unsecured senior notes	500,000		470,000		1
	$	4,386,031	$	4,201,479	78

The following table summarizes the estimated annual change in net investment income for our variable rate investments and our variable rate debt assuming increases or decreases in LIBOR or other applicable index rates and adjusted for the effects of our interest rate hedging activities (amounts in thousands):

Income (Expense) Subject to Interest Rate Sensitivity	Variable rate investments and indebtedness (1)		0.25% Decrease		0.50% Increase		1.00% Increase		1.50% Increase
Investment income from variable rate investments	$	18,216,117	$	(45,497)	$	91,081	$	182,161	$	273,242
Interest expense from variable rate debt, net of interest rate derivatives	(13,330,018)		35,390		(70,241)		(140,207)		(209,904)
Net investment income from variable rate instruments	$	4,886,099	$	(10,107)	$	20,840	$	41,954	$	63,338

______________________________________________________________________________________________________________________

(1)Includes the notional value of interest rate derivatives.

LIBOR Transition Risk

The United Kingdom’s Financial Conduct Authority (the authority that regulates LIBOR) stopped compelling banks to submit rates for the calculation of LIBOR and the LIBOR administrator ceased publication of non-U.S. dollar LIBOR after December 31, 2021. However, for U.S. dollar LIBOR, the relevant date has been deferred to June 30, 2023. Regulators emphasized that, despite any continued publication of U.S. dollar LIBOR through June 30, 2023, no new contracts using U.S. dollar LIBOR should be entered into after December 31, 2021. As indicated in the Interest Rate Risk section above, a substantial portion of our loans, investment securities, borrowings and interest rate derivatives are indexed to LIBOR or similar reference rates. Our U.S. dollar LIBOR-based loan agreements and borrowing arrangements generally specify alternative reference rates such as the prime rate, federal funds rate or secured overnight financing rate (“SOFR”). Our foreign denominated loan agreements and borrowing arrangements now generally specify the sterling overnight index average (“SONIA”) instead of GBP LIBOR and the bank bill swap rate (“BBSW” or “BBSY”) instead of AUD LIBOR.

As of September 30, 2022, daily compounded SONIA is utilized as the floating benchmark rate on $2.1 billion of our loans and $1.6 billion of our debt outstanding, while SOFR is utilized as the floating benchmark rate on $4.6 billion of our loans and $7.3 billion of our debt outstanding.

At this time, it is not possible to predict how markets will respond to SOFR, SONIA, or other alternative reference rates as the transition away from USD LIBOR and GBP LIBOR proceeds. The resulting changes to benchmark interest rates could increase our financing costs and/or result in mismatches between the interest rates of our investments and the corresponding financings.

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Foreign Currency Risk

Our loans and investments that are denominated in a foreign currency are also subject to risks related to fluctuations in exchange rates. We generally mitigate this exposure by matching the currency of our foreign currency assets to the currency of the borrowings that finance those assets. As a result, we substantially reduce our exposure to changes in portfolio value related to changes in foreign exchange rates.

We intend to hedge our net currency exposures in a prudent manner. However, our currency hedging strategies may not eliminate all of our currency risk due to, among other things, uncertainties in the timing and/or amount of payments received on the related investments, and/or unequal, inaccurate, or unavailable hedges to perfectly offset changes in future exchange rates. Additionally, we may be required under certain circumstances to collateralize our currency hedges for the benefit of the hedge counterparty, which could adversely affect our liquidity.

Consistent with our strategy of hedging foreign currency exposure on certain investments, we typically enter into a series of forwards to fix the U.S. dollar amount of foreign currency denominated cash flows (interest income and principal payments) we expect to receive from our foreign currency denominated investments. Accordingly, the notional values and expiration dates of our foreign currency hedges approximate the amounts and timing of future payments we expect to receive on the related investments.

The following table represents our assets and liabilities that are denominated in foreign currencies as well as our expected future net interest receipts (amounts in thousands):

	September 30, 2022
	GBP		EUR		AUD		CHF
Foreign currency assets	£	1,905,878	€	769,864	A$	1,836,859	Fr.	41,130
Foreign currency liabilities	(1,404,087)		(252,864)		(1,368,374)		(29,611)
Foreign currency contracts - notional, net	(574,948)		(589,985)		(667,134)		(15,128)
Expected future net interest cash flows	73,157		72,985		198,649		3,609
Net exposure to exchange rate fluctuations	£	—	€	—	A$	—	Fr.	—
Net exposure to exchange rate fluctuations in USD (1)	$	—	$	—	$	—	$	—

______________________________________________________________________________________________________________________

(1)     Represents the U.S. dollar equivalent using the GBP closing rate of 1.1160, EUR closing rate of 0.9803, AUD closing rate of 0.6402 and CHF closing rate of 1.0134 as of September 30, 2022.

Substantially all of our net asset exposure to the GBP, EUR, AUD and CHF has been hedged with foreign currency forward contracts as of September 30, 2022, as indicated in the table above. Refer to Note 13 of the Condensed Consolidated Financial Statements for further detail regarding our foreign currency derivatives and their contractual maturities.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer, as appropriate, to allow timely decisions regarding required disclosures.

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting. No change in internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during the quarter ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1.    Legal Proceedings.

Currently, no material legal proceedings are pending or, to our knowledge, threatened or contemplated against us, that could have a material adverse effect on our business, financial position or results of operations.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously disclosed in our Form 10-K.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of securities during the three months ended September 30, 2022.

Issuer Purchases of Equity Securities

There were no purchases of common stock during the three months ended September 30, 2022.

Item 3.    Defaults Upon Senior Securities.

None.

Item 4.    Mine Safety Disclosures.

Not applicable.

Item 5.    Other Information.

None.

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Item 6.    Exhibits.

(a)Index to Exhibits

INDEX TO EXHIBITS

Exhibit No.	Description
31.1	Certification pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	STARWOOD PROPERTY TRUST, INC.
Date: November 9, 2022	By:	/s/ BARRY S. STERNLICHT
		Barry S. Sternlicht Chief Executive Officer Principal Executive Officer
Date: November 9, 2022	By:	/s/ RINA PANIRY
		Rina Paniry Chief Financial Officer, Treasurer, Chief Accounting Officer and Principal Financial Officer

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EX-31.1

Exhibit 31.1

Certification Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Barry S. Sternlicht, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Starwood Property Trust, Inc. for the period ended September 30, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2022	/s/ BARRY S. STERNLICHT
	Barry S. Sternlicht
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Rina Paniry, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Starwood Property Trust, Inc. for the period ended September 30, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2022	/s/ RINA PANIRY
	Rina Paniry
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with Starwood Property Trust, Inc.’s (the “Company”) Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”), I, Barry S. Sternlicht, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2022	/s/ BARRY S. STERNLICHT
	Barry S. Sternlicht
	Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with Starwood Property Trust, Inc.’s (the “Company”) Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”), I, Rina Paniry, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2022	/s/ RINA PANIRY
	Rina Paniry
	Chief Financial Officer

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-34436
Entity Registrant Name	Starwood Property Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-0247747
Entity Address, Address Line One	591 West Putnam Avenue
Entity Address, City or Town	Greenwich
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06830
City Area Code	203
Local Phone Number	422-7700
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	STWD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		309,584,298
Entity Central Index Key	0001465128
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 339,710	$ 217,362
Restricted cash	121,570	104,552
Loans held-for-investment, net of credit loss allowances of $92,611 and $67,270 ($53,176 and $59,225 held at fair value)	18,103,822	15,536,849
Loans held-for-sale, at fair value	2,205,684	2,876,800
Investment securities, net of credit loss allowances of $3,928 and $8,610 ($146,572 and $177,848 held at fair value)	890,128	860,984
Properties, net	1,217,426	1,166,387
Investments in unconsolidated entities	83,164	90,097
Goodwill	259,846	259,846
Intangible assets ($18,014 and $16,780 held at fair value)	73,096	63,564
Derivative assets	251,171	48,216
Accrued interest receivable	154,148	116,262
Other assets	418,458	188,626
Variable interest entity (“VIE”) assets, at fair value	54,215,370	61,280,543
Total Assets	80,002,858	83,850,397
Liabilities:
Accounts payable, accrued expenses and other liabilities	562,461	189,696
Related-party payable	26,146	76,371
Dividends payable	150,196	147,624
Derivative liabilities	82,766	13,421
Secured financing agreements, net	13,495,902	12,576,850
Collateralized loan obligations and single asset securitization, net	3,690,996	2,616,116
Unsecured senior notes, net	2,326,988	1,828,590
VIE liabilities, at fair value	52,501,845	59,752,922
Total Liabilities	72,837,300	77,201,590
Commitments and contingencies (Note 22)
Temporary Equity: Redeemable non-controlling interests	344,373	214,915
Starwood Property Trust, Inc. Stockholders’ Equity:
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 per share, 500,000,000 shares authorized, 317,032,314 issued and 309,583,623 outstanding as of September 30, 2022 and 312,268,944 issued and 304,820,253 outstanding as of December 31, 2021	3,170	3,123
Additional paid-in capital	5,779,687	5,673,376
Treasury stock (7,448,691 shares)	(138,022)	(138,022)
Retained earnings	779,188	493,106
Accumulated other comprehensive income	22,776	40,953
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,446,799	6,072,536
Non-controlling interests in consolidated subsidiaries	374,386	361,356
Total Permanent Equity	6,821,185	6,433,892
Total Liabilities and Equity	80,002,858	83,850,397
Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	1,669,265	$ 1,040,309
Total Assets	76,600
Liabilities:
Total Liabilities	$ 34,400

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Allowance for credit losses	$ 92,611	$ 67,270
Loans held-for-investment, net, held at fair value	53,176	59,225
Credit loss allowance	3,928	8,610
Investment securities	146,572	177,848
Intangible assets held at fair value	$ 18,014	$ 16,780
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	317,032,314	312,268,944
Common stock, shares outstanding (in shares)	309,583,623	304,820,253
Treasury stock, shares (in shares)	7,448,691	7,448,691
VIE assets	$ 80,002,858	$ 83,850,397
VIE liabilities	72,837,300	77,201,590
CLOs and SASB
VIE assets	4,500,000	3,100,000
VIE liabilities	$ 3,700,000	$ 2,600,000

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Interest income from loans	$ 328,354	$ 203,252	$ 823,123	$ 583,099
Interest income from investment securities	19,019	10,697	48,308	32,955
Servicing fees	8,427	10,473	30,972	29,739
Rental income	32,932	77,512	96,036	230,969
Other revenues	1,809	352	11,680	3,621
Total revenues	390,541	302,286	1,010,119	880,383
Costs and expenses:
Management fees	27,356	23,727	114,275	91,713
Interest expense	222,423	115,531	501,492	328,558
General and administrative	45,495	38,864	134,821	122,765
Acquisition and investment pursuit costs	1,213	214	2,152	806
Costs of rental operations	12,206	31,516	32,094	90,992
Depreciation and amortization	12,611	22,041	36,498	66,992
Credit loss provision (reversal), net	15,343	(563)	20,123	(12,363)
Other expense	0	23	1,313	708
Total costs and expenses	336,647	231,353	842,768	690,171
Other income (loss):
Change in net assets related to consolidated VIEs	37,146	28,049	72,268	80,303
Change in fair value of servicing rights	515	2,237	1,234	2,740
Change in fair value of investment securities, net	(83)	(299)	(1,683)	903
Change in fair value of mortgage loans, net	(87,474)	31,727	(326,737)	68,116
(Loss) earnings from unconsolidated entities	(2,044)	2,042	911	6,002
Gain (loss) on sale of investments and other assets, net	13,453	(47)	112,059	26,377
Gain on derivative financial instruments, net	206,070	41,812	461,921	65,792
Foreign currency loss, net	(107,318)	(27,003)	(213,201)	(36,057)
Loss on extinguishment of debt	(212)	(499)	(1,035)	(2,197)
Other loss, net	(56,391)	(964)	(90,963)	(6,416)
Total other income	121,189	77,055	673,507	205,563
Income before income taxes	175,083	147,988	840,858	395,775
Income tax benefit (provision)	48,755	(7,501)	48,999	(6,378)
Net income	223,838	140,487	889,857	389,397
Net income attributable to non-controlling interests	(29,276)	(11,885)	(158,409)	(33,107)
Net income attributable to Starwood Property Trust, Inc.	$ 194,562	$ 128,602	$ 731,448	$ 356,290
Earnings per share data attributable to Starwood Property Trust, Inc.:
Basic (in dollars per share)	$ 0.62	$ 0.44	$ 2.35	$ 1.23
Diluted (in dollars per share)	$ 0.61	$ 0.44	$ 2.30	$ 1.22
Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	$ 117,527	$ 0	$ 658,733	$ 0

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 223,838	$ 140,487	$ 889,857	$ 389,397
Other comprehensive income (loss) (net change by component):
Available-for-sale securities	(6,194)	(824)	(18,177)	(3,571)
Foreign currency translation	0	0	0	64
Other comprehensive loss	(6,194)	(824)	(18,177)	(3,507)
Comprehensive income	217,644	139,663	871,680	385,890
Less: Comprehensive income attributable to non-controlling interests	(29,276)	(11,885)	(158,409)	(33,107)
Comprehensive income attributable to Starwood Property Trust, Inc.	$ 188,368	$ 127,778	$ 713,271	$ 352,783

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Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Total Starwood Property Trust, Inc. Stockholders’ Equity	Total Starwood Property Trust, Inc. Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjustment	Common stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment	Treasury Stock​	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income	Non- Controlling Interests
Beginning balance at Dec. 31, 2020	$ 0
Ending balance at Sep. 30, 2021	0
Beginning balance (in shares) at Dec. 31, 2020					292,091,601
Beginning balance at Dec. 31, 2020	4,862,576	$ (1,536)	$ 4,488,898	$ (1,536)	$ 2,921	$ 5,209,739	$ (3,755)	$ (138,022)	$ (629,733)	$ 2,219	$ 43,993	$ 373,678
Beginning balance (in shares) at Dec. 31, 2020								7,448,691
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan (in shares)					29,331
Proceeds from DRIP Plan	697		697			697
Redemption of Class A Units (in shares)					853,681
Redemption of Class A Units	0		17,738		$ 9	17,729						(17,738)
Equity offering costs	(27)		(27)			(27)
Share-based compensation (in shares)					2,400,946
Share-based compensation	29,359		29,359		$ 24	29,335
Manager fee paid in stock (in shares)					696,531
Manager fees paid in stock	16,554		16,554		$ 7	16,547
Net income	389,397		356,290						356,290			33,107
Dividends declared	(416,756)		(416,756)						(416,756)
Other comprehensive loss, net	(3,507)		(3,507)								(3,507)
Contributions from non-controlling interests	5,590											5,590
Distributions to non-controlling interests	(35,235)											(35,235)
Ending balance (in shares) at Sep. 30, 2021					296,072,090
Ending balance at Sep. 30, 2021	4,847,112		4,487,710		$ 2,961	5,270,265		$ (138,022)	(687,980)		40,486	359,402
Ending balance (in shares) at Sep. 30, 2021								7,448,691
Beginning balance at Jun. 30, 2021	0
Ending balance at Sep. 30, 2021	0
Beginning balance (in shares) at Jun. 30, 2021					295,257,898
Beginning balance at Jun. 30, 2021	4,851,700		4,477,355		$ 2,952	5,248,490		$ (138,022)	(677,375)		41,310	374,345
Beginning balance (in shares) at Jun. 30, 2021								7,448,691
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan (in shares)					8,161
Proceeds from DRIP Plan	209		209			209
Redemption of Class A Units (in shares)					465,679
Redemption of Class A Units	0		9,622		$ 5	9,617						(9,622)
Equity offering costs	(5)		(5)			(5)
Share-based compensation (in shares)					243,201
Share-based compensation	9,452		9,452		$ 3	9,449
Manager fee paid in stock (in shares)					97,151
Manager fees paid in stock	2,506		2,506		$ 1	2,505
Net income	140,487		128,602						128,602			11,885
Dividends declared	(139,207)		(139,207)						(139,207)
Other comprehensive loss, net	(824)		(824)								(824)
Contributions from non-controlling interests	52											52
Distributions to non-controlling interests	(17,258)											(17,258)
Ending balance (in shares) at Sep. 30, 2021					296,072,090
Ending balance at Sep. 30, 2021	4,847,112		4,487,710		$ 2,961	5,270,265		$ (138,022)	(687,980)		40,486	359,402
Ending balance (in shares) at Sep. 30, 2021								7,448,691
Beginning balance at Dec. 31, 2021	214,915
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income	134,298
Distributions to non-controlling interests	4,840
Ending balance at Sep. 30, 2022	$ 344,373
Beginning balance (in shares) at Dec. 31, 2021	304,820,253				312,268,944
Beginning balance at Dec. 31, 2021	$ 6,433,892		6,072,536		$ 3,123	5,673,376		$ (138,022)	493,106		40,953	361,356
Beginning balance (in shares) at Dec. 31, 2021	7,448,691							7,448,691
Increase (Decrease) in Stockholders' Equity
Proceeds from ATM Agreement (in shares)					1,415,564
Proceeds from ATM Agreement	$ 33,321		33,321		$ 14	33,307
Proceeds from DRIP Plan (in shares)					33,037
Proceeds from DRIP Plan	770		770			770
Proceeds from employee stock purchase plan (in shares)					34,625
Proceeds from employee stock purchase plan	625		625			625
Equity offering costs	(756)		(756)			(756)
Share-based compensation (in shares)					1,455,814
Share-based compensation	29,703		29,703		$ 15	29,688
Manager fee paid in stock (in shares)					1,824,330
Manager fees paid in stock	42,695		42,695		$ 18	42,677
Net income	755,559		731,448						731,448			24,111
Dividends declared	(445,366)		(445,366)						(445,366)
Other comprehensive loss, net	(18,177)		(18,177)								(18,177)
Contributions from non-controlling interests	21,926											21,926
Distributions to non-controlling interests	$ (33,007)											(33,007)
Ending balance (in shares) at Sep. 30, 2022	309,583,623				317,032,314
Ending balance at Sep. 30, 2022	$ 6,821,185		6,446,799		$ 3,170	5,779,687		$ (138,022)	779,188		22,776	374,386
Ending balance (in shares) at Sep. 30, 2022	7,448,691							7,448,691
Beginning balance at Jun. 30, 2022	$ 322,753
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income	23,795
Distributions to non-controlling interests	(2,175)
Ending balance at Sep. 30, 2022	344,373
Beginning balance (in shares) at Jun. 30, 2022					316,660,535
Beginning balance at Jun. 30, 2022	6,774,387		6,393,996		$ 3,167	5,766,533		$ (138,022)	733,348		28,970	380,391
Beginning balance (in shares) at Jun. 30, 2022								7,448,691
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan (in shares)					10,568
Proceeds from DRIP Plan	235		235			235
Proceeds from employee stock purchase plan (in shares)					34,625
Proceeds from employee stock purchase plan	625		625			625
Share-based compensation (in shares)					218,212
Share-based compensation	9,703		9,703		$ 2	9,701
Manager fee paid in stock (in shares)					108,374
Manager fees paid in stock	2,594		2,594		$ 1	2,593
Net income	200,043		194,562						194,562			5,481
Dividends declared	(148,722)		(148,722)						(148,722)
Other comprehensive loss, net	(6,194)		(6,194)								(6,194)
Distributions to non-controlling interests	$ (11,486)											(11,486)
Ending balance (in shares) at Sep. 30, 2022	309,583,623				317,032,314
Ending balance at Sep. 30, 2022	$ 6,821,185		$ 6,446,799		$ 3,170	$ 5,779,687		$ (138,022)	$ 779,188		$ 22,776	$ 374,386
Ending balance (in shares) at Sep. 30, 2022	7,448,691							7,448,691

XML

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares				3 Months Ended		9 Months Ended
	Sep. 16, 2022	Jun. 15, 2022	Mar. 14, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 1.44	$ 1.44

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net income	$ 889,857	$ 389,397
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs, premiums and discounts on secured borrowings	34,705	32,141
Amortization of discounts and deferred financing costs on unsecured senior notes	6,560	5,387
Accretion of net discount on investment securities	(9,725)	(10,090)
Accretion of net deferred loan fees and discounts	(47,468)	(44,523)
Share-based compensation	29,703	29,359
Manager fees paid in stock	42,695	16,554
Change in fair value of investment securities	1,683	(903)
Change in fair value of consolidated VIEs	39,138	26,990
Change in fair value of servicing rights	(1,234)	(2,740)
Change in fair value of loans	326,737	(68,116)
Change in fair value of affordable housing fund investments	(628,956)	0
Change in fair value of derivatives	(465,986)	(70,661)
Foreign currency loss, net	213,201	36,057
Gain on sale of investments and other assets	(112,059)	(26,377)
Impairment charges on properties and related intangibles	55	0
Credit loss provision (reversal), net	20,123	(12,363)
Depreciation and amortization	39,911	67,653
Earnings from unconsolidated entities	(911)	(6,002)
Distributions of earnings from unconsolidated entities	4,935	1,623
Loss on extinguishment of debt	837	2,197
Origination and purchase of loans held-for-sale, net of principal collections	(3,641,067)	(3,027,235)
Proceeds from sale of loans held-for-sale	3,992,896	2,333,767
Changes in operating assets and liabilities:
Related-party payable	(50,225)	(15,792)
Accrued and capitalized interest receivable, less purchased interest	(131,678)	(105,039)
Other assets	(200,496)	(27,236)
Accounts payable, accrued expenses and other liabilities	491,503	14,199
Net cash provided by (used in) operating activities	844,734	(461,753)
Cash Flows from Investing Activities:
Origination, purchase and funding of loans held-for-investment	(5,007,398)	(5,635,707)
Proceeds from principal collections on loans	1,840,317	3,173,764
Proceeds from loans sold	71,008	267,349
Purchase and funding of investment securities	(86,058)	0
Proceeds from principal collections on investment securities	19,431	77,855
Proceeds from sales of real estate	166,424	60,969
Purchases and additions to properties and other assets	(17,295)	(17,259)
Investments in unconsolidated entities	(461)	0
Distribution of capital from unconsolidated entities	3,375	25,555
Cash resulting from initial consolidation of entities	617	0
Payments for purchase or termination of derivatives	(14,965)	(14,699)
Proceeds from termination of derivatives	168,607	44,742
Net cash used in investing activities	(2,856,398)	(2,017,431)
Cash Flows from Financing Activities:
Proceeds from borrowings	11,603,576	11,654,848
Principal repayments on and repurchases of borrowings	(8,751,730)	(8,566,856)
Payment of deferred financing costs	(48,847)	(46,196)
Proceeds from common stock issuances	34,716	697
Payment of equity offering costs	(756)	(27)
Payment of dividends	(442,794)	(414,977)
Contributions from non-controlling interests	21,926	5,590
Distributions to non-controlling interests	(37,847)	(35,235)
Issuance of debt of consolidated VIEs	0	69,399
Repayment of debt of consolidated VIEs	(290,132)	(608,435)
Distributions of cash from consolidated VIEs	64,555	83,785
Net cash provided by financing activities	2,152,667	2,142,593
Net increase (decrease) in cash, cash equivalents and restricted cash	141,003	(336,591)
Cash, cash equivalents and restricted cash, beginning of period	321,914	722,162
Effect of exchange rate changes on cash	(1,637)	(1,783)
Cash, cash equivalents and restricted cash, end of period	461,280	383,788
Supplemental disclosure of cash flow information:
Cash paid for interest	423,326	276,783
Income taxes (refunded) paid, net	(8,613)	7,036
Supplemental disclosure of non-cash investing and financing activities:
Dividends declared, but not yet paid	150,942	140,465
Consolidation of VIEs (VIE asset/liability additions)	4,361,325	4,427,479
Deconsolidation of VIEs (VIE asset/liability reductions)	730,012	935,855
Net assets acquired through foreclosure, control or conversion to equity interest:
Assets acquired, less cash	145,330	36,308
Liabilities assumed	95,796	0
Lease liabilities arising from obtaining right-of-use assets	29,821	0
Loan principal collections temporarily held at master servicer	3,061	119,925
Reclassification of loans held-for-investment to loans held-for-sale	63,962	237,132
Reclassification of loans held-for-sale to loans held-for-investment	0	124,932
Transfer of loans from VIE assets to residential loans upon redemption of consolidated RMBS trusts	0	432,926
Redemption of Class A Units for common stock	0	17,738
Unsettled derivative transactions	$ 0	$ 4,047

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Business and Organization

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Organization

Business and Organization

Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering. We are focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in the United States (“U.S.”), Europe and Australia. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions.

We have four reportable business segments as of September 30, 2022 and we refer to the investments within these segments as our target assets:

•Real estate commercial and residential lending (the “Commercial and Residential Lending Segment”)—engages primarily in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages (“residential loans”), subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”) and other real estate and real estate-related debt investments in the U.S., Europe and Australia (including distressed or non-performing loans). Our residential loans are secured by a first mortgage lien on residential property and primarily consist of non-agency residential loans that are not guaranteed by any U.S. Government agency or federally chartered corporation.

•Infrastructure lending (the “Infrastructure Lending Segment”)—engages primarily in originating, acquiring, financing and managing infrastructure debt investments.

•Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, that are held for investment.

•Real estate investing and servicing (the “Investing and Servicing Segment”)—includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts.

Our segments exclude the consolidation of securitization variable interest entities (“VIEs”).

We are organized and conduct our operations to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements.

We are organized as a holding company and conduct our business primarily through our various wholly-owned subsidiaries. We are externally managed and advised by SPT Management, LLC (our “Manager”) pursuant to the terms of a management agreement. Our Manager is controlled by Barry Sternlicht, our Chairman and Chief Executive Officer. Our Manager is an affiliate of Starwood Capital Group Global L.P., a privately-held private equity firm founded by Mr. Sternlicht.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Balance Sheet Presentation of Securitization Variable Interest Entities

We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.

Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs.

The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation.

Refer to the segment data in Note 23 for a presentation of our business segments without consolidation of these VIEs.

Basis of Accounting and Principles of Consolidation

The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (our “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results for the full year.

Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, (iii) became significant since December 31, 2021 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”).

Variable Interest Entities

In addition to the securitization VIEs, we have financed pools of our loans through collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered VIEs. We also hold interests in certain other entities which are considered VIEs as the limited partners of those entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership.

We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We

consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE.

To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE.

To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us.

Our purchased investment securities include unrated and non-investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation.

For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation.

We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change.

We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our condensed consolidated statements of operations. The residual difference shown on our condensed consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs.

We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our condensed consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.”

Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to non-performance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing

REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP.

In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust.

REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 1% of our consolidated securitization VIE assets, with the remaining 99% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually.

Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities.

For these reasons, the assets of our securitization VIEs are presented in the aggregate.

Fair Value Option

The guidance in ASC 825, Financial Instruments, provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method.

We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for residential loans held-for-investment were made in order to maintain consistency across all our residential loans. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments.

Fair Value Measurements

We measure our mortgage-backed securities, investments of consolidated affordable housing fund, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements.

Loans Held-for-Investment

Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless the loans are credit deteriorated or we have elected to apply the fair value option at purchase.

Loans Held-For-Sale

Our loans that we intend to sell or liquidate in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase.

Investment Securities

We designate our debt investment securities as held-to-maturity (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the condensed consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below.

Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings.

Credit Losses

Loans and Debt Securities Measured at Amortized Cost

ASC 326, Financial Instruments – Credit Losses, became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and our HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our condensed consolidated balance sheets), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible.

As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 4 for further discussion of our methodologies.

We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral.

Available-for-Sale Debt Securities

Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis.

Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment.

Investments of Consolidated Affordable Housing Fund

On November 5, 2021, we established Woodstar Portfolio Holdings, LLC (the “Woodstar Fund”), an investment fund which holds our Woodstar multifamily affordable housing portfolios consisting of 59 properties with 15,057 units located in Central and South Florida. As managing member of the Woodstar Fund, we manage interests purchased by third party investors seeking capital appreciation and an ongoing return, for which we earn (i) a management fee based on each investor’s share of total Woodstar Fund equity; and (ii) an incentive distribution if the Woodstar Fund’s returns exceed an established threshold. In connection with the establishment of the Woodstar Fund, we entered into subscription and other related agreements with certain third party institutional investors to sell, through a feeder fund structure, an aggregate 20.6% interest in the Woodstar Fund for an initial aggregate subscription price of $216.0 million, which was adjusted to $214.2 million post-closing. The Woodstar Fund has an initial term of eight years.

Effective with the third party interest sale, the Woodstar Fund has the characteristics of an investment company under ASC 946, Financial Services – Investment Companies. Accordingly, the Woodstar Fund is required to carry the investments in its properties at fair value, with a cumulative effect adjustment between the fair value and previous carrying value of its investments recognized in stockholders’ equity as of November 5, 2021, the date of the Woodstar Fund’s change in status to an investment company. Because we are the primary beneficiary of the Woodstar Fund, which is a VIE (as discussed in Note 15), we consolidate the accounts of the Woodstar Fund into our consolidated financial statements, retaining the fair value basis of accounting for its investments. Realized and unrealized changes in the fair value of the Woodstar Fund’s property investments, and distributions thereon, are recognized in the “Income from affordable housing fund investments” caption within the other income (loss) section of our condensed consolidated statements of operations for the three and nine months ended September 30, 2022. See Note 7 for further details regarding the Woodstar Fund’s investments and related income and Note 17 with respect to its contingently redeemable non-controlling interests which are classified as “Temporary Equity” in our condensed consolidated balance sheets.

Revenue Recognition

Interest Income

Interest income on performing loans and financial instruments is accrued based on the outstanding principal amount and contractual terms of the instrument. For loans where we do not elect the fair value option, origination fees and direct loan origination costs are also recognized in interest income over the loan term as a yield adjustment using the effective interest method. When we elect the fair value option, origination fees and direct loan costs are recorded directly in income and are not deferred. Discounts or premiums associated with the purchase of non-performing loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections.

We cease accruing interest on non-performing loans at the earlier of (i) the loan becoming significantly past due or (ii) management concluding that a full recovery of all interest and principal is doubtful. Interest income on non-accrual loans in which management expects a full recovery of the loan’s outstanding principal balance is only recognized when received in cash. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and management believes all future principal and interest will be received according to the contractual loan terms.

For loans acquired with deteriorated credit quality, interest income is only recognized to the extent that our estimate of undiscounted expected principal and interest exceeds our investment in the loan. Such excess, if any, is recognized as interest income on a level-yield basis over the life of the loan.

Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss).

Servicing Fees

We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under-performing and non-performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met.

Rental Income

Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor.

Foreign Currency Translation

Our assets and liabilities denominated in foreign currencies are translated into U.S. dollars using foreign currency exchange rates at the end of the reporting period. Income and expenses are translated at the average exchange rates for each reporting period. The effects of translating the assets, liabilities and income of our foreign investments held by entities with a U.S. dollar functional currency are included in foreign currency gain (loss) in the consolidated statements of operations or other comprehensive income (“OCI”) for debt securities available-for-sale for which the fair value option has not been elected. The effects of translating the assets, liabilities and income of our foreign investments held by entities with functional currencies other than the U.S. dollar are included in OCI. Realized foreign currency gains and losses and changes in the value of foreign currency denominated monetary assets and liabilities are included in the determination of net income and are reported as foreign currency gain (loss) in our condensed consolidated statements of operations.

Earnings Per Share

We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our senior convertible notes (the “Convertible Notes”) (see Notes 11 and 18) and (iv) non-controlling interests that are redeemable with our common stock (see Note 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.

Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 17). Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the three and nine months ended September 30, 2022 and 2021, the two-class method resulted in the most dilutive EPS calculation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our investments, which has a significant impact on the amount of income that we record and/or disclose. The fair value of assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants

would discount the expected cash flows. Amounts ultimately realized from our investments may vary significantly from the fair values presented.

We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2022. Actual results may ultimately differ from those estimates.

Recent Accounting Developments

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and on January 11, 2021, issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope, both of which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. These ASUs are effective through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve.

On March 31, 2022, the FASB issued ASU 2022-2, Troubled Debt Restructurings and Vintage Disclosures (Topic 326). ASU 2022-2 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU is effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. Early adoption is permitted. We do not expect the application of this ASU to materially impact our consolidated financial statements as our operating practice is generally not to enter into TDRs for troubled loans.

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Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Investing and Servicing Segment Property Portfolio ("REIS Equity Portfolio")

During the three months ended September 30, 2022, we sold an operating property for $19.5 million. In connection with this sale, we recognized a total gain of $13.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2022, we sold two operating properties for $54.0 million. In connection with these sales, we recognized a total gain of $25.4 million within gain on sale of investments and other assets in our condensed consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the nine months ended September 30, 2021, we sold an operating property for $30.9 million. In connection with this sale, we recognized a gain of $9.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

Commercial and Residential Lending Segment

During the nine months ended September 30, 2022, we sold a distribution facility located in Orlando, Florida that was previously acquired in April 2019 through foreclosure of a loan with a carrying value of $18.5 million. The property was sold for $114.8 million and we recognized a gain of $86.6 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2021, we sold an operating property relating to a grocery distribution facility located in Montgomery, Alabama that was previously acquired in March 2019 through foreclosure of a loan with a carrying value of $9.0 million ($20.9 million unpaid principal balance net of an $8.3 million allowance and $3.6 million of unamortized discount) at the foreclosure date. The operating property was sold for $31.2 million and we recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

During the three and nine months ended September 30, 2022 and 2021, we had no significant acquisitions of properties or businesses.

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Loans

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Loans

Loans

Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option for either. The following tables summarize our investments in mortgages and loans as of September 30, 2022 and December 31, 2021 (dollars in thousands):

September 30, 2022	Carrying Value		Face Amount		Weighted Average Coupon (1)		Weighted Average Life (“WAL”) (years)(2)
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	15,174,120	$	15,263,633	6.8	%	1.9
Subordinated mortgages (4)	69,793		70,966		12.5	%	2.0
Mezzanine loans (3)	438,457		435,818		11.6	%	1.0
Other	58,694		59,850		8.2	%	1.6
Total commercial loans	15,741,064		15,830,267
Infrastructure first priority loans	2,402,193		2,433,586		7.7	%	4.0
Residential loans, fair value option (5)	53,176		54,569		5.8	%	N/A	(6)
Total loans held-for-investment	18,196,433		18,318,422
Loans held-for-sale:
Residential, fair value option (5)	2,125,827		2,340,929		4.7	%	N/A	(6)
Commercial, fair value option	79,857		82,223		4.2	%	7.3
Total loans held-for-sale	2,205,684		2,423,152
Total gross loans	20,402,117		$	20,741,574
Credit loss allowances:
Commercial loans held-for-investment	(64,862)
Infrastructure loans held-for-investment	(27,749)
Total allowances	(92,611)
Total net loans	$	20,309,506
December 31, 2021
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	12,991,099	$	13,067,524	4.5	%	1.9
Subordinated mortgages (4)	70,771		72,371		10.0	%	2.8
Mezzanine loans (3)	417,504		415,155		9.4	%	1.4
Other	17,424		19,029		8.2	%	2.1
Total commercial loans	13,496,798		13,574,079
Infrastructure first priority loans	2,048,096		2,071,912		4.4	%	4.3
Residential loans, fair value option	59,225		60,133		6.0	%	N/A	(6)
Total loans held-for-investment	15,604,119		15,706,124
Loans held-for-sale:
Residential, fair value option	2,590,005		2,525,910		4.2	%	N/A	(6)
Commercial, fair value option	286,795		289,761		4.0	%	9.0
Total loans held-for-sale	2,876,800		2,815,671
Total gross loans	18,480,919		$	18,521,795
Credit loss allowances:
Commercial loans held-for-investment	(46,600)
Infrastructure loans held-for-investment	(20,670)
Total allowances	(67,270)
Total net loans	$	18,413,649

______________________________________________________________________________________________________________________

(1)Calculated using applicable index rates as of September 30, 2022 and December 31, 2021 for variable rate loans and excludes loans for which interest income is not recognized.

(2)Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition.

(3)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.2 billion and $1.4 billion being classified as first mortgages as of September 30, 2022 and December 31, 2021, respectively.

(4)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.

(5)During the nine months ended September 30, 2022, $0.3 million of residential loans held-for-investment were reclassified into loans held-for-sale.

(6)Residential loans have a weighted average remaining contractual life of 29.1 years and 29.4 years as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands):

September 30, 2022	Carrying Value		Weighted-average Spread Above Index
Commercial loans	$	15,006,961	4.0	%
Infrastructure loans	2,402,193		3.9	%
Total variable rate loans held-for-investment	$	17,409,154	3.9	%

Credit Loss Allowances

As discussed in Note 2, we do not have a history of realized credit losses on our HFI loans and HTM securities, so we have subscribed to third party database services to provide us with industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios.

For our commercial loans, we utilize a loan loss model that is widely used among banks and commercial mortgage REITs and is marketed by a leading CMBS data analytics provider. It employs logistic regression to forecast expected losses at the loan level based on a commercial real estate loan securitization database that contains activity dating back to 1998. We provide specific loan-level inputs which include loan-to-stabilized-value (“LTV”) and debt service coverage ratio (DSCR) metrics, as well as principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates and future fundings. We also select from a group of independent five-year macroeconomic forecasts included in the model that are updated regularly based on current economic trends. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our commercial loans, as set forth in the credit quality indicator table below. A lower LTV ratio typically indicates a lower credit loss risk.

The macroeconomic forecasts do not differentiate among property types or asset classes. Instead, these forecasts reference general macroeconomic growth factors which apply broadly across all assets. For instance, although the office sector has been adversely affected by the increase in remote working arrangements, the broad macroeconomic forecasts do not account for such differentiation. Accordingly, we have selected a more adverse macroeconomic recovery forecast related to office properties in determining our credit loss allowance.

For our infrastructure loans, we utilize a database of historical infrastructure loan performance that is shared among a consortium of banks and other lenders and compiled by a major bond credit rating agency. The database is representative of industry-wide project finance activity dating back to 1983. We derive historical loss rates from the database filtered by industry, sub-industry, term and construction status for each of our infrastructure loans. Those historical loss rates reflect global

economic cycles over a long period of time as well as average recovery rates. We categorize the results between the power and oil and gas industries, which we consider the most significant indicator of credit quality for our infrastructure loans, as set forth in the credit quality indicator table below.

As discussed in Note 2, we use a discounted cash flow or collateral value approach, rather than the industry loan loss approach described above, to determine credit loss allowances for any credit deteriorated loans.

We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the collateral. In addition, we consider the overall economic environment, real estate or industry sector, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.

The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of September 30, 2022 (dollars in thousands):

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Total		Total Amortized Cost Basis		Credit Loss Allowance
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Commercial loans:
Credit quality indicator:
LTV < 60%	$	1,697,121	$	2,540,666	$	459,943	$	892,348	$	373,102	$	680,512	$	—	$	6,643,692	$	5,272
LTV 60% - 70%	1,694,971		3,805,828		238,557		1,096,130		457,696		68,455		—		7,361,637		19,204
LTV > 70%	100,444		333,874		228,133		429,098		313,469		267,098		—		1,672,116		35,461
Credit deteriorated	—		—		—		—		—		4,925		—		4,925		4,925
Defeased and other	42,138		—		—		—		—		16,556		—		58,694		—
Total commercial	$	3,534,674	$	6,680,368	$	926,633	$	2,417,576	$	1,144,267	$	1,037,546	$	—	$	15,741,064	$	64,862
Infrastructure loans:
Credit quality indicator:
Power	$	93,258	$	222,453	$	81,611	$	288,355	$	387,126	$	409,170	$	5,488	$	1,487,461	$	5,695
Oil and gas	87,946		359,963		10,284		286,506		84,587		50,189		1,969		881,444		5,553
Credit deteriorated	—		—		—		—		—		33,288		—		33,288		16,501
Total infrastructure	$	181,204	$	582,416	$	91,895	$	574,861	$	471,713	$	492,647	$	7,457	$	2,402,193	$	27,749
Residential loans held-for-investment, fair value option															53,176		—
Loans held-for-sale															2,205,684		—
Total gross loans															$	20,402,117	$	92,611

Non-Credit Deteriorated Loans

As of September 30, 2022, we had the following loans with a combined amortized cost basis of $505.4 million that were 90 days or greater past due at September 30, 2022: (i) a $204.3 million senior loan on a retail and entertainment project in New Jersey, of which $7.3 million was converted into equity interests (see Note 8); (ii) a $222.8 million senior loan on an office building in California; (iii) a $37.8 million leasehold mortgage loan on a luxury resort in California destroyed by wildfire; (iv) $31.3 million of residential loans; and (v) a $9.2 million loan on a hospitality asset in New York that our Investing and Servicing Segment acquired as nonperforming in October 2021. Loans on nonaccrual as of September 30, 2022 include (i) - (iv) above. None of these loans are considered credit deteriorated as we presently expect to recover all amounts due.

Credit Deteriorated Loans

As of September 30, 2022, we had the following loans with a combined amortized cost basis of $38.2 million which were deemed credit deteriorated and are on nonaccrual status: (i) a $33.3 million senior loan participation secured by a natural gas-fired power plant in Massachusetts, for which interest collections were current as of September 30, 2022 but for which we

recorded a credit loss allowance of $16.5 million ($6.4 million during the three and nine months ended September 30, 2022 and $10.1 million in 2021) based on our share of the estimated fair value of the asset; and (ii) a $4.9 million subordinated loan secured by a department store in Chicago which is fully reserved.

Foreclosures and Equity Control

In May 2022, we obtained control over the pledged equity interests of a mezzanine borrower entity related to an office building located in Texas, which resulted in our consolidating the mezzanine borrower entity including the underlying property collateral and related debt. The net carrying value of our loans related to this property totaled $50.2 million and consisted of first mortgage and mezzanine loans which are now eliminated in consolidation. In connection with the consolidation of the mezzanine borrower entity, we recorded properties of $110.8 million, lease intangible assets of $15.4 million, net working capital of $11.8 million and third-party first mortgage debt of $87.8 million in accordance with the asset acquisition provisions of ASC 805, Business Combinations.

The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands):

	Funded Commitments Credit Loss Allowance
	Loans Held-for-Investment				Total Funded Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure
Credit loss allowance at December 31, 2021	$	46,600	$	20,670	$	67,270
Credit loss provision, net	18,262		7,079		25,341
Credit loss allowance at September 30, 2022	$	64,862	$	27,749	$	92,611

	Unfunded Commitments Credit Loss Allowance (1)
	Loans Held-for-Investment
Nine Months Ended September 30, 2022	Commercial		Infrastructure		CMBS (2)		Total
Credit loss allowance at December 31, 2021	$	6,692	$	145	$	—	$	6,837
Credit loss (reversal) provision, net	(431)		(145)		40		(536)
Credit loss allowance at September 30, 2022	$	6,261	$	—	$	40	$	6,301
Memo: Unfunded commitments as of September 30, 2022 (3)	$	2,463,418	$	—	$	32,494	$	2,495,912

______________________________________________________________________________________________________________________

(1)Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.

(2)See Note 5 for further details.

(3)Represents amounts expected to be funded (see Note 22).

Loan Portfolio Activity

The activity in our loan portfolio was as follows (amounts in thousands):

	Held-for-Investment Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2021	$	13,450,198	$	2,027,426	$	59,225	$	2,876,800	$	18,413,649
Acquisitions/originations/additional funding	4,410,306		597,092		—		3,793,467		8,800,865
Capitalized interest (1)	85,454		373		1,445		402		87,674
Basis of loans sold (2)	(6,330)		—		—		(4,056,511)		(4,062,841)
Loan maturities/principal repayments	(1,558,907)		(246,127)		(6,663)		(146,184)		(1,957,881)
Discount accretion/premium amortization	40,179		7,289		—		—		47,468
Changes in fair value	—		—		(485)		(326,252)		(326,737)
Foreign currency translation gain/(loss), net	(612,669)		(4,530)		—		—		(617,199)
Credit loss provision, net	(18,262)		(7,079)		—		—		(25,341)
Transfer to/from other asset classifications or between segments	(113,767)		—		(346)		63,962		(50,151)		(3)
Balance at September 30, 2022	$	15,676,202	$	2,374,444	$	53,176	$	2,205,684	$	20,309,506

	Held-for-Investment Loans
Nine Months Ended September 30, 2021	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2020	$	9,583,949	$	1,412,440	$	90,684	$	1,052,835	$	12,139,908
Acquisitions/originations/additional funding	5,242,378		393,329		—		3,151,361		8,787,068
Capitalized interest (1)	89,830		—		2,068		2,062		93,960
Basis of loans sold (2)	(243,378)		—		—		(2,358,790)		(2,602,168)
Loan maturities/principal repayments	(2,897,747)		(211,695)		(26,341)		(250,662)		(3,386,445)
Discount accretion/premium amortization	40,367		3,652		—		504		44,523
Changes in fair value	—		—		1,837		66,279		68,116
Foreign currency translation loss, net	(75,094)		(840)		—		—		(75,934)
Credit loss reversal (provision), net	13,238		(1,124)		—		—		12,114
Loan foreclosure and conversion to equity interest	(36,308)		—		—		—		(36,308)		(4)
Transfer to/from other asset classifications or between segments	(204,583)		93,085		23,251		519,930		431,683		(5)
Balance at September 30, 2021	$	11,512,652	$	1,688,847	$	91,499	$	2,183,519	$	15,476,517

______________________________________________________________________________________________________________________

(1)Represents accrued interest income on loans whose terms do not require current payment of interest.

(2)See Note 12 for additional disclosure on these transactions.

(3)Represents the net carrying value of first mortgage and contiguous mezzanine loans related to an office building in Texas that is eliminated as a result of consolidating the net assets of the mezzanine borrower entity upon obtaining control over its pledged equity interests in May 2022 (see discussion above).

(4)Includes (i) a $29.0 million credit deteriorated loan related to a residential conversion project which was foreclosed in April 2021 and (ii) $7.3 million of a commercial loan that was converted to equity interests in March 2021 (see Note 8) pursuant to a consensual transfer under pre-existing equity pledges of additional collateral.

(5)Net transfers represent residential loans transferred from VIE assets upon redemption of two consolidated RMBS trusts.

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Investment Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Investment securities were comprised of the following as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Carrying Value as of
	September 30, 2022		December 31, 2021
RMBS, available-for-sale	$	116,577	$	143,980
RMBS, fair value option (1)	418,480		250,424
CMBS, fair value option (1), (2)	1,280,975		1,263,606
HTM debt securities, amortized cost net of credit loss allowance of $3,928 and $8,610	743,556		683,136
Equity security, fair value	9,343		11,624
Subtotal—Investment securities	2,568,931		2,352,770
VIE eliminations (1)	(1,678,803)		(1,491,786)
Total investment securities	$	890,128	$	860,984

______________________________________________________________________________________________________________________

(1)Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810.

(2)Includes $200.0 million and $182.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of September 30, 2022 and December 31, 2021, respectively.

Purchases, sales, principal collections and redemptions for all investment securities were as follows (amounts in thousands):

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Three Months Ended September 30, 2022
Purchases/fundings	$	—	$	—	$	—	$	—	$	—	$	—
Sales	—		—		—		—		—		—
Principal collections	3,412		16,914		5,118		609		(21,802)		4,251
Three Months Ended September 30, 2021
Purchases	$	—	$	33,009	$	8,383	$	—	$	(41,392)	$	—
Sales	—		—		27,111				(27,111)		—
Principal collections	7,881		14,204		706		752		(14,555)		8,988
Redemptions	—		26,753		—		—		(26,753)		—

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Nine Months Ended September 30, 2022
Purchases/fundings	$	—	$	226,152	$	63,681	$	86,058	$	(289,833)	$	86,058
Sales	—		—		—		—		—		—
Principal collections	16,200		58,843		6,394		2,549		(64,555)		19,431
Nine Months Ended September 30, 2021
Purchases	$	—	$	112,693	$	62,465	$	—	$	(175,158)	$	—
Sales	—		30,684		38,715				(69,399)		—
Principal collections	22,995		42,235		4,429		53,321		(45,125)		77,855
Redemptions	—		38,729		—		—		(38,729)		—

______________________________________________________________________________________________________________________

(1)Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows.

RMBS, Available-for-Sale

The Company classified all of its RMBS not eliminated in consolidation as available-for-sale as of September 30, 2022 and December 31, 2021. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”).

The tables below summarize various attributes of our investments in available-for-sale RMBS as of September 30, 2022 and December 31, 2021 (amounts in thousands):

							Unrealized Gains or (Losses) Recognized in AOCI
	Amortized Cost		Credit Loss Allowance		Net Basis		Gross Unrealized Gains		Gross Unrealized Losses		Net Fair Value Adjustment		Fair Value
September 30, 2022
RMBS	$	93,801	$	—	$	93,801	$	23,314	$	(538)	$	22,776	$	116,577
December 31, 2021
RMBS	$	103,027	$	—	$	103,027	$	41,052	$	(99)	$	40,953	$	143,980

	Weighted Average Coupon (1)		WAL  (Years) (2)
September 30, 2022
RMBS	3.7	%	7.2

______________________________________________________________________________________________________________________

(1)Calculated using the September 30, 2022 one-month LIBOR rate of 3.143% for floating rate securities.

(2)Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments.

As of September 30, 2022, approximately $102.6 million, or 88%, of RMBS were variable rate. We purchased all of the RMBS at a discount, a portion of which is accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of this accretable discount.

We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021, and $0.8 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively, recorded as management fees in the accompanying condensed consolidated statements of operations.

The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of September 30, 2022 and December 31, 2021, and for which an allowance for credit losses has not been recorded (amounts in thousands):

	Estimated Fair Value				Unrealized Losses
	Securities with a loss less than 12 months		Securities with a loss greater than 12 months		Securities with a loss less than 12 months		Securities with a loss greater than 12 months
As of September 30, 2022
RMBS	$	8,544	$	—	$	(538)	$	—
As of December 31, 2021
RMBS	$	2,478	$	—	$	(99)	$	—

As of September 30, 2022 and December 31, 2021, there were nine securities and one security, respectively, with unrealized losses reflected in the table above. After evaluating the securities, we concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, if any, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our net amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported.

CMBS and RMBS, Fair Value Option

As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for certain CMBS and RMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of September 30, 2022, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.3 billion and $2.9 billion, respectively. As of September 30, 2022, the fair value and unpaid principal balance of RMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $418.5 million and $326.3 million, respectively. The $1.7 billion total fair value balance of CMBS and RMBS represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $20.7 million at September 30, 2022) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities.

As of September 30, 2022, $97.1 million of our CMBS were variable rate and none of our RMBS were variable rate.

HTM Debt Securities, Amortized Cost

The table below summarizes our investments in HTM debt securities as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Amortized Cost Basis		Credit Loss Allowance		Net Carrying Amount		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
September 30, 2022
CMBS	$	556,989	$	(109)	$	556,880	$	54	$	(30,800)	$	526,134
Preferred interests	120,696		(748)		119,948		125		(7,607)		112,466
Infrastructure bonds	69,799		(3,071)		66,728		588		(1,631)		65,685
Total	$	747,484	$	(3,928)	$	743,556	$	767	$	(40,038)	$	704,285
December 31, 2021
CMBS	$	538,506	$	(3,140)	$	535,366	$	195	$	(25,029)	$	510,532
Preferred interests	118,409		(2,562)		115,847		450		(2,449)		113,848
Infrastructure bonds	34,831		(2,908)		31,923		561		—		32,484
Total	$	691,746	$	(8,610)	$	683,136	$	1,206	$	(27,478)	$	656,864

The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total HTM Credit Loss Allowance
Nine Months Ended September 30, 2022
Credit loss allowance at December 31, 2021	$	3,140	$	2,562	$	2,908	$	8,610
Credit loss (reversal) provision, net	(3,031)		(1,814)		163		(4,682)
Credit loss allowance at September 30, 2022	$	109	$	748	$	3,071	$	3,928

The table below summarizes the maturities of our HTM debt securities by type as of September 30, 2022 (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total
Less than one year	$	314,060	$	90,822	$	—	$	404,882
One to three years	25,323		29,126		—		54,449
Three to five years	217,497		—		37,881		255,378
Thereafter	—		—		28,847		28,847
Total	$	556,880	$	119,948	$	66,728	$	743,556

Equity Security, Fair Value

During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. The fair value of the investment remeasured in USD was $9.3 million and $11.6 million as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, our shares represent an approximate 2% interest in SEREF.

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Properties

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Properties

Properties

Our properties are held within the following portfolios:

Medical Office Portfolio

The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $764.8 million and debt of $595.9 million as of September 30, 2022.

Master Lease Portfolio

The Master Lease Portfolio is comprised of 16 retail properties geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Florida, Texas and Minnesota. These properties, which we acquired in September 2017, collectively comprise 1.9 million square feet and were leased back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. The Master Lease Portfolio includes total gross properties of $343.8 million and debt of $193.3 million as of September 30, 2022.

Investing and Servicing Segment Property Portfolio

The REIS Equity Portfolio is comprised of 11 commercial real estate properties and one equity interest in an unconsolidated commercial real estate property which were acquired from CMBS trusts during the previous six years. The REIS Equity Portfolio includes total gross properties and lease intangibles of $199.3 million and debt of $144.1 million as of September 30, 2022.

Commercial and Residential Lending Segment Property Portfolio

The Commercial and Residential Lending Segment Portfolio represents properties acquired through loan foreclosure or exercise of control over a mezzanine loan borrower’s pledged equity interests. This portfolio includes total gross properties and lease intangibles of $231.4 million and debt of $87.8 million as of September 30, 2022.

Woodstar Portfolios

Refer to Note 7 for a discussion of our Woodstar I and Woodstar II Portfolios which are not included in the table below.

The table below summarizes our properties held as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Depreciable Life	September 30, 2022		December 31, 2021
Property Segment
Land and land improvements	0 - 15 years	$	175,856	$	175,810
Buildings and building improvements	0 - 45 years	853,238		851,274
Furniture & fixtures	3 - 5 years	375		260
Investing and Servicing Segment
Land and land improvements	0 - 15 years	35,313		41,771
Buildings and building improvements	3 - 40 years	134,036		149,399
Furniture & fixtures	2 - 5 years	3,253		3,143
Commercial and Residential Lending Segment
Land and land improvements	N/A	33,680		9,691
Buildings and building improvements	0 - 24 years	77,938		12,408
Construction in progress	N/A	105,039		104,088
Properties, cost		1,418,728		1,347,844
Less: accumulated depreciation		(201,302)		(181,457)
Properties, net		$	1,217,426	$	1,166,387

______________________________________________________________________________________________________________________

During the three months ended September 30, 2022, we sold an operating property for $19.5 million. In connection with this sale, we recognized a total gain of $13.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2022, we sold two operating properties within the REIS Equity Portfolio for $54.0 million and recognized a total gain of $25.4 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the nine months ended September 30, 2021, we sold an operating property within the REIS Equity Portfolio for $30.9 million and recognized a gain of $9.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.

During the nine months ended September 30, 2022, we sold an operating property within the Commercial and Residential Lending Segment for $114.8 million and recognized a gain of $86.6 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the nine months ended September 30, 2021, we sold an operating property within the Commercial and Residential Lending Segment for $31.2 million and recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. Refer to Note 3 for further discussion.

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Investments of Consolidated Affordable Housing Fund

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments of Consolidated Affordable Housing Fund

Investments of Consolidated Affordable Housing Fund

As discussed in Note 2, we established the Woodstar Fund effective November 5, 2021, an investment fund which holds our Woodstar multifamily affordable housing portfolios. The Woodstar portfolios consist of the following:

Woodstar I Portfolio

The Woodstar I Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar I Portfolio, with the final 14 communities acquired during the year ended December 31, 2016. The Woodstar I Portfolio includes properties at fair value of $1.5 billion and debt at fair value of $710.6 million as of September 30, 2022.

Woodstar II Portfolio

The Woodstar II Portfolio is comprised of 27 affordable housing communities with 6,109 units concentrated primarily in Central and South Florida. We acquired eight of the 27 affordable housing communities in December 2017, with the final 19 communities acquired during the year ended December 31, 2018. The Woodstar II Portfolio includes properties at fair value of $1.3 billion and debt at fair value of $479.0 million as of September 30, 2022.

Income from the Woodstar Fund’s investments reflects the following components for the three and nine months ended September 30, 2022 (in thousands):

	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
Distributions from affordable housing fund investments	$	7,112	$	29,777
Unrealized change in fair value of investments (1)	110,415		628,956
Income from affordable housing fund investments	$	117,527	$	658,733

______________________________________________________________________________________________________________________

(1)The fair value of the Woodstar Fund’s investments are dependent upon the real estate and capital markets, which are cyclical in nature. Property and investment values are affected by, among other things, capitalization rates, the availability of capital, occupancy, rental rates and interest and inflation rates.

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Investments in Unconsolidated Entities​

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities​

Investments in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Participation / Ownership % (1)	Carrying value as of
		September 30, 2022		December 31, 2021
Equity method investments:
Equity interest in a natural gas power plant	10%	$	28,886	$	26,255
Investor entity which owns equity in an online real estate company	50%	5,365		5,206
Equity interest in and advances to a residential mortgage originator (2)	N/A	10,999		20,327
Various	25% - 50%	14,923		12,528
		60,173		64,316
Other equity investments:
Equity interest in a servicing and advisory business	2%	12,955		12,955
Investment funds which own equity in a loan servicer and other real estate assets (3)	4% - 6%	940		4,194
Investor entities which own equity interests in two entertainment and retail centers (4)	15%	7,320		7,320
Various	1% - 3%	1,776		1,312
		22,991		25,781
		$	83,164	$	90,097

______________________________________________________________________________________________________________________

(1)None of these investments are publicly traded and therefore quoted market prices are not available.

(2)Included a $4.5 million subordinated loan as of December 31, 2021, which was converted to an equity interest on July 1, 2022.

(3)During the nine months ended September 30, 2022, we received distributions of $7.3 million, of which $3.3 million were considered returns of capital which reduced the carrying value of two of our investments.

(4)In March 2021, we obtained equity interests in two investor entities that own interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. The interests were obtained in order to facilitate repayment of a portion of that loan for which these interests represented underlying collateral. The interests are entitled to preferred treatment in the distribution waterfall and are intended to repay us the $7.3 million principal amount of the loan plus interest. See further discussion in Note 4.

There were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of September 30, 2022.

During the three and nine months ended September 30, 2022, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election or (ii) any indicators of impairment.

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Goodwill and Intangibles

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Goodwill and Intangibles

Goodwill

Goodwill is tested for impairment annually in the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Infrastructure Lending Segment

The Infrastructure Lending Segment’s goodwill of $119.4 million at both September 30, 2022 and December 31, 2021 represents the excess of consideration transferred over the fair value of net assets acquired on September 19, 2018 and October 15, 2018. The goodwill recognized is attributable to value embedded in the acquired Infrastructure Lending Segment’s lending platform.

LNR Property LLC (“LNR”)

The Investing and Servicing Segment’s goodwill of $140.4 million at both September 30, 2022 and December 31, 2021 represents the excess of consideration transferred over the fair value of net assets of LNR acquired on April 19, 2013. The goodwill recognized is attributable to value embedded in LNR’s existing platform, which includes a network of commercial real estate asset managers, work-out specialists, underwriters and administrative support professionals as well as proprietary historical performance data on commercial real estate assets.

Intangible Assets

Servicing Rights Intangibles

In connection with the LNR acquisition, we identified domestic servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. As of September 30, 2022 and December 31, 2021, the balance of the domestic servicing intangible was net of $41.6 million and $42.1 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of September 30, 2022 and December 31, 2021, the domestic servicing intangible had a balance of $59.6 million and $58.9 million, respectively, which represents our economic interest in this asset.

Lease Intangibles

In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties.

The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	As of September 30, 2022						As of December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Domestic servicing rights, at fair value	$	18,014	$	—	$	18,014	$	16,780	$	—	$	16,780
In-place lease intangible assets	100,450		(62,442)		38,008		94,712		(62,721)		31,991
Favorable lease intangible assets	26,649		(9,575)		17,074		23,746		(8,953)		14,793
Total net intangible assets	$	145,113	$	(72,017)	$	73,096	$	135,238	$	(71,674)	$	63,564

The following table summarizes the activity within intangible assets for the nine months ended September 30, 2022 (amounts in thousands):

	Domestic Servicing Rights		In-place Lease Intangible Assets		Favorable Lease Intangible Assets		Total
Balance as of January 1, 2022	$	16,780	$	31,991	$	14,793	$	63,564
Acquisition (1)	—		11,910		3,520		15,430
Amortization	—		(5,327)		(1,197)		(6,524)
Impairment (2)	—		(43)		(4)		(47)
Sales	—		(523)		(38)		(561)
Changes in fair value due to changes in inputs and assumptions	1,234		—		—		1,234
Balance as of September 30, 2022	$	18,014	$	38,008	$	17,074	$	73,096

_________________________________________________

(1)    Represents lease intangibles related to an office building in Texas that are consolidated upon exercising control over a mezzanine loan borrower’s pledged equity interests in May 2022 (see Note 4).

(2)     Impairment of intangible lease assets is recognized within other expense in our condensed consolidated statement of operations.

The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands):

2022 (remainder of)	$	2,390
2023	8,629
2024	6,932
2025	5,827
2026	4,301
Thereafter	27,003
Total	$	55,082

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Secured Borrowings

9 Months Ended

Sep. 30, 2022

Secured Debt [Abstract]

Secured Borrowings

Secured Borrowings

Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of September 30, 2022 and December 31, 2021 (dollars in thousands):

													Outstanding Balance at
	Current Maturity		Extended Maturity (a)		Weighted Average Pricing		Pledged Asset Carrying Value			Maximum Facility Size			September 30, 2022			December 31, 2021
Repurchase Agreements:
Commercial Loans	Jun 2023 to Jun 2027	(b)	Sep 2025 to Dec 2030	(b)	Index + 2.09%	(c)	$	10,854,556		$	12,291,964	(d)	$	7,971,502		$	6,556,438
Residential Loans	May 2023 to Dec 2023		May 2023 to Dec 2024		Index + 2.10%		1,633,554			2,502,614			1,407,163			1,744,225
Infrastructure Loans	Sep 2024		Sep 2026		SOFR + 2.07%		379,346			650,000			316,737			379,095
Conduit Loans	Feb 2023 to Jun 2025		Feb 2024 to Jun 2026		SOFR + 2.28%		79,857			350,000			60,941			174,130
CMBS/RMBS	Jun 2023 to Apr 2032	(e)	Jun 2023 to Oct 2032	(e)	(f)		1,485,618			1,113,025			787,020		(g)	688,146
Total Repurchase Agreements							14,432,931			16,907,603			10,543,363			9,542,034
Other Secured Financing:
Borrowing Base Facility	Nov 2024		Oct 2026		SOFR + 2.11%		23,226			750,000		(h)	2,000			213,478
Commercial Financing Facilities	Dec 2023 to Aug 2025		Aug 2027 to Dec 2030		Index + 1.77%		348,619			445,295		(i)	271,918			167,476
Residential Financing Facility	Mar 2024		Mar 2027		SOFR + 2.45%		545,450			500,000			179,418			102,018
Infrastructure Financing Facilities	Jun 2025 to Oct 2025		Jun 2027 to Jul 2032		Index + 2.16%		1,002,010			1,550,000			790,995			855,646
Property Mortgages - Fixed rate	Nov 2024 to Sep 2029	(j)	N/A		4.48%		381,440			275,800			275,800			272,522
Property Mortgages - Variable rate	Nov 2022 to Mar 2025		N/A		(k)		767,293			733,750			730,315			712,493
Term Loan and Revolver	(l)		N/A		(l)		N/A		(l)	932,763			782,763			788,753
Total Other Secured Financing							3,068,038			5,187,608			3,033,209			3,112,386
							$	17,500,969		$	22,095,211		13,576,572			12,654,420
Unamortized net discount													(13,281)			(13,350)
Unamortized deferred financing costs													(67,389)			(64,220)
													$	13,495,902		$	12,576,850

______________________________________________________________________________________________________________________

(a)Subject to certain conditions as defined in the respective facility agreement.

(b)For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions.

(c)Certain facilities with an outstanding balance of $2.7 billion as of September 30, 2022 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to USD LIBOR or SOFR.

(d)Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.3 billion, subject to certain conditions. The $12.3 billion amount includes such upsizes.

(e)Certain facilities with an outstanding balance of $368.9 million as of September 30, 2022 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender’s consent. These facilities carry no maximum facility size.

(f)A facility with an outstanding balance of $263.9 million as of September 30, 2022 has a weighted average fixed annual interest rate of 3.27%. All other facilities are variable rate with a weighted average rate of Index + 1.96%.

(g)Includes: (i) $263.9 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $43.2 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15).

(h)The maximum facility size as of September 30, 2022 of $650.0 million is scheduled to decline to $450.0 million as of December 31, 2022 and may be increased to $750.0 million, subject to certain conditions.

(i)Certain facilities with an aggregate initial maximum facility size of $345.3 million may be increased to $445.3 million, subject to certain conditions. The $445.3 million amount includes such upsizes.

(j)The weighted average maturity is 4.8 years as of September 30, 2022.

(k)Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of Index + 2.26%.

(l)Consists of: (i) a $782.8 million term loan facility that matures in July 2026, of which $388.0 million has an annual interest rate of LIBOR + 2.50% and $394.8 million has an annual interest rate of LIBOR + 3.25%, subject to a 0.75% LIBOR floor, and (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.50%. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.0 billion as of September 30, 2022.

The above table no longer reflects property mortgages of the Woodstar Portfolios which, as discussed in Notes 2 and 7, are now reflected within “Investments of consolidated affordable housing fund” on our condensed consolidated balance sheets.

In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations.

In March 2022, we amended a Residential Loans credit facility to increase the available borrowings to $500.0 million from $250.0 million and extend the initial maturity for 18 months to March 2024 with a three-year extension option. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

In June 2022, we entered into a credit facility to finance loans within the Infrastructure Lending Segment. The maximum facility size is $500.0 million and carries a three-year revolving period with two one-year extension options. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

During the nine months ended September 30, 2022, we entered into commercial credit facilities of $1.4 billion. In addition, we amended several commercial credit facilities resulting in an aggregate net upsize of $974.7 million.

Our secured financing agreements contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 71% of these agreements, do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For the 29% of repurchase agreements which do permit valuation adjustments based on capital market events, approximately 7% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreement.

For the three and nine months ended September 30, 2022, approximately $9.5 million and $28.3 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021, approximately $8.6 million and $26.9 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations.

As of September 30, 2022, Morgan Stanley Bank, N.A. held collateral sold under certain of our repurchase agreements with carrying values that exceeded the respective repurchase obligations by $694.6 million. The weighted average extended maturity of those repurchase agreements is 3.8 years.

Collateralized Loan Obligations and Single Asset Securitization

Commercial and Residential Lending Segment

In February 2022, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2022-FL3. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of two years. During the three and nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $72.0 million of additional interests into the CLO.

In July 2021, we contributed into a single asset securitization, STWD 2021-HTS, a previously originated $230.0 million first mortgage and mezzanine loan on a portfolio of 41 extended stay hotels with $210.1 million of third party financing.

In May 2021, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2021-FL2. On the closing date, the CLO issued $1.3 billion of notes and preferred shares, of which $1.1 billion of notes was purchased by third party investors. We retained $70.1 million of notes, along with preferred shares with a liquidation preference of $127.5 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $241.2 million of additional interests into the CLO.

In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion of notes and preferred shares, of which $936.4 million of notes was purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, the reinvestment period expired, and we repaid CLO debt in the amount of $180.9 million.

Infrastructure Lending Segment

In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $101.4 million of additional interests into the CLO.

In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF1. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $76.3 million of additional interests into the CLO.

The following table is a summary of our CLOs and our SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

September 30, 2022	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2022-FL3
Collateral assets	46	$	992,000	$	1,010,268	Index + 3.55%	(a)	February 2026	(b)
Financing	1	842,500		843,028		SOFR + 1.91%	(c)	November 2038	(d)
STWD 2021-HTS
Collateral assets	1	230,000		230,923		LIBOR + 3.84%	(a)	April 2026	(b)
Financing	1	210,091		208,735		LIBOR + 2.69%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	26	1,276,650		1,282,627		Index + 4.11%	(a)	May 2025	(b)
Financing	1	1,077,375		1,071,725		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	16	919,107		921,634		Index + 3.76%	(a)	December 2024	(b)
Financing	1	755,482		754,079		SOFR + 1.65%	(c)	July 2038	(d)
STWD 2021-SIF2
Collateral assets	31	492,805		508,186		Index + 3.72%	(a)	March 2027	(b)
Financing	1	410,000		407,034		SOFR + 2.11%	(c)	January 2033	(d)
STWD 2021-SIF1
Collateral assets	31	493,066		508,667		Index + 3.73%	(a)	September 2026	(b)
Financing	1	410,000		406,395		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	4,403,628	$	4,462,305
Financing		$	3,705,448	$	3,690,996

December 31, 2021	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2021-HTS
Collateral assets	1	$	230,000	$	230,587	LIBOR + 4.12%	(a)	April 2026	(b)
Financing	1	210,091		208,057		LIBOR + 2.48%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	25	1,272,133		1,279,678		LIBOR + 4.22%	(a)	February 2025	(b)
Financing	1	1,077,375		1,069,691		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	24	1,092,887		1,103,513		LIBOR + 4.19%	(a)	November 2024	(b)
Financing	1	936,375		933,049		SOFR + 1.63%	(c)	July 2038	(d)
STWD 2021-SIF1
Collateral assets	31	491,299		506,666		LIBOR + 3.91%	(a)	March 2026	(b)
Financing	1	410,000		405,319		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	3,086,319	$	3,120,444
Financing		$	2,633,841	$	2,616,116

______________________________________________________________________________________________________________________________

(a)Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. Of the loans financed by the STWD 2021-FL2 CLO as of September 30, 2022, 7% earned fixed-rate weighted average interest of 7.42%. Of the investments financed by the STWD 2021-SIF2 CLO as of September 30, 2022, 5% earned fixed-rate weighted average interest of 7.75%. Of the investments financed by the STWD 2021-SIF1 CLO as of September 30, 2022, 3% earned fixed-rate weighted average interest of 6.01%.

(b)Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets.

(c)Represents the weighted-average cost of financing incurred during the respective year-to-date period, inclusive of deferred issuance costs.

(d)Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date.

We incurred $37.9 million of issuance costs in connection with the CLOs and SASB, which are amortized on an effective yield basis over the estimated life of the CLOs and SASB. For the three and nine months ended September 30, 2022, approximately $2.7 million and $7.8 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021,

approximately $1.8 million and $3.9 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. As of September 30, 2022 and December 31, 2021, our unamortized issuance costs were $21.0 million and $17.7 million, respectively.

The CLOs and SASB are considered VIEs, for which we are deemed the primary beneficiary. We therefore consolidate the CLOs and SASB. Refer to Note 15 for further discussion.

Maturities

Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands):

	Repurchase Agreements		Other Secured Financing		CLOs and SASB (a)		Total
2022 (remainder of)	$	267,383	$	7,646	$	106,346	$	381,375
2023	2,095,210		730,849		675,675		3,501,734
2024	1,041,311		124,602		432,055		1,597,968
2025	1,960,316		274,879		741,493		2,976,688
2026	2,832,539		995,455		1,588,716		5,416,710
Thereafter	2,346,604		899,778		161,163		3,407,545
Total	$	10,543,363	$	3,033,209	$	3,705,448	$	17,282,020

______________________________________________________________________________________________________________________

(a)For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature.

Unsecured Senior Notes

The following table is a summary of our unsecured senior notes outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Coupon Rate			Effective Rate (1)		Maturity Date	Remaining Period of Amortization	Carrying Value at
								September 30, 2022		December 31, 2021
2023 Senior Notes	5.50	%		5.71	%	11/1/2023	1.1 years	300,000		300,000
2023 Convertible Notes	4.38	%		4.57	%	4/1/2023	0.5 years	250,000		250,000
2024 Senior Notes	3.75	%		3.94	%	12/31/2024	2.3 years	400,000		400,000
2025 Senior Notes	4.75	%	(2)	5.04	%	3/15/2025	2.5 years	500,000		500,000
2026 Senior Notes	3.63	%		3.77	%	7/15/2026	3.8 years	400,000		400,000
2027 Senior Notes	4.38	%	(3)	4.49	%	1/15/2027	4.3 years	500,000		—
Total principal amount								2,350,000		1,850,000
Unamortized discount—Convertible Notes								(235)		(578)
Unamortized discount—Senior Notes								(9,954)		(10,067)
Unamortized deferred financing costs								(12,823)		(10,765)
Total carrying amount								$	2,326,988	$	1,828,590

______________________________________________________________________________________________________________________

(1)Effective rate includes the effects of underwriter purchase discount.

(2)The coupon on the 2025 Senior Notes is 4.75%.  At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%.

(3)The coupon on the 2027 Senior Notes is 4.375%.  At closing, we swapped the notes to a floating rate of SOFR + 2.95%.

Our unsecured senior notes contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

Senior Notes

On January 25, 2022, we issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes mature on January 15, 2027. Prior to July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to July 15, 2025, we may redeem up to 40% of the 2027 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings.

Convertible Senior Notes

On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”) which remain outstanding at September 30, 2022 and mature on April 1, 2023.

We recognized interest expense of $2.9 million and $8.7 million, respectively, during the three and nine months ended September 30, 2022 and 2021 from our Convertible Notes.

The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2022 (amounts in thousands, except rates):

	September 30, 2022
	Conversion	Conversion
	Rate (1)	Price (2)
2023 Convertible Notes	38.5959	$	25.91

______________________________________________________________________________________________________________________

(1)The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture).

(2)As of September 30, 2022, the market price of the Company’s common stock was $18.22.

The if-converted value of the 2023 Convertible Notes was less than their principal amount by $74.2 million at September 30, 2022 as the closing market price of the Company’s common stock of $18.22 was less than the implicit conversion price of $25.91 per share. The if-converted value of the principal amount of the 2023 Convertible Notes was $175.8 million as of September 30, 2022. As of September 30, 2022, the net carrying amount and fair value of the 2023 Convertible Notes was $249.7 million and $245.0 million, respectively.

Upon conversion of the 2023 Convertible Notes, settlement may be made in common stock, cash or a combination of both, at the option of the Company.

Conditions for Conversion

Prior to October 1, 2022, the 2023 Convertible Notes did not satisfy any of the specified conditions for conversion. On or after October 1, 2022, holders of the 2023 Convertible Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date.

XML

Unsecured Senior Notes

9 Months Ended

Sep. 30, 2022

Debt Instruments [Abstract]

Unsecured Senior Notes

Secured Borrowings

Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of September 30, 2022 and December 31, 2021 (dollars in thousands):

													Outstanding Balance at
	Current Maturity		Extended Maturity (a)		Weighted Average Pricing		Pledged Asset Carrying Value			Maximum Facility Size			September 30, 2022			December 31, 2021
Repurchase Agreements:
Commercial Loans	Jun 2023 to Jun 2027	(b)	Sep 2025 to Dec 2030	(b)	Index + 2.09%	(c)	$	10,854,556		$	12,291,964	(d)	$	7,971,502		$	6,556,438
Residential Loans	May 2023 to Dec 2023		May 2023 to Dec 2024		Index + 2.10%		1,633,554			2,502,614			1,407,163			1,744,225
Infrastructure Loans	Sep 2024		Sep 2026		SOFR + 2.07%		379,346			650,000			316,737			379,095
Conduit Loans	Feb 2023 to Jun 2025		Feb 2024 to Jun 2026		SOFR + 2.28%		79,857			350,000			60,941			174,130
CMBS/RMBS	Jun 2023 to Apr 2032	(e)	Jun 2023 to Oct 2032	(e)	(f)		1,485,618			1,113,025			787,020		(g)	688,146
Total Repurchase Agreements							14,432,931			16,907,603			10,543,363			9,542,034
Other Secured Financing:
Borrowing Base Facility	Nov 2024		Oct 2026		SOFR + 2.11%		23,226			750,000		(h)	2,000			213,478
Commercial Financing Facilities	Dec 2023 to Aug 2025		Aug 2027 to Dec 2030		Index + 1.77%		348,619			445,295		(i)	271,918			167,476
Residential Financing Facility	Mar 2024		Mar 2027		SOFR + 2.45%		545,450			500,000			179,418			102,018
Infrastructure Financing Facilities	Jun 2025 to Oct 2025		Jun 2027 to Jul 2032		Index + 2.16%		1,002,010			1,550,000			790,995			855,646
Property Mortgages - Fixed rate	Nov 2024 to Sep 2029	(j)	N/A		4.48%		381,440			275,800			275,800			272,522
Property Mortgages - Variable rate	Nov 2022 to Mar 2025		N/A		(k)		767,293			733,750			730,315			712,493
Term Loan and Revolver	(l)		N/A		(l)		N/A		(l)	932,763			782,763			788,753
Total Other Secured Financing							3,068,038			5,187,608			3,033,209			3,112,386
							$	17,500,969		$	22,095,211		13,576,572			12,654,420
Unamortized net discount													(13,281)			(13,350)
Unamortized deferred financing costs													(67,389)			(64,220)
													$	13,495,902		$	12,576,850

______________________________________________________________________________________________________________________

(a)Subject to certain conditions as defined in the respective facility agreement.

(b)For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions.

(c)Certain facilities with an outstanding balance of $2.7 billion as of September 30, 2022 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to USD LIBOR or SOFR.

(d)Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.3 billion, subject to certain conditions. The $12.3 billion amount includes such upsizes.

(e)Certain facilities with an outstanding balance of $368.9 million as of September 30, 2022 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender’s consent. These facilities carry no maximum facility size.

(f)A facility with an outstanding balance of $263.9 million as of September 30, 2022 has a weighted average fixed annual interest rate of 3.27%. All other facilities are variable rate with a weighted average rate of Index + 1.96%.

(g)Includes: (i) $263.9 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $43.2 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15).

(h)The maximum facility size as of September 30, 2022 of $650.0 million is scheduled to decline to $450.0 million as of December 31, 2022 and may be increased to $750.0 million, subject to certain conditions.

(i)Certain facilities with an aggregate initial maximum facility size of $345.3 million may be increased to $445.3 million, subject to certain conditions. The $445.3 million amount includes such upsizes.

(j)The weighted average maturity is 4.8 years as of September 30, 2022.

(k)Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of Index + 2.26%.

(l)Consists of: (i) a $782.8 million term loan facility that matures in July 2026, of which $388.0 million has an annual interest rate of LIBOR + 2.50% and $394.8 million has an annual interest rate of LIBOR + 3.25%, subject to a 0.75% LIBOR floor, and (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.50%. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.0 billion as of September 30, 2022.

The above table no longer reflects property mortgages of the Woodstar Portfolios which, as discussed in Notes 2 and 7, are now reflected within “Investments of consolidated affordable housing fund” on our condensed consolidated balance sheets.

In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations.

In March 2022, we amended a Residential Loans credit facility to increase the available borrowings to $500.0 million from $250.0 million and extend the initial maturity for 18 months to March 2024 with a three-year extension option. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

In June 2022, we entered into a credit facility to finance loans within the Infrastructure Lending Segment. The maximum facility size is $500.0 million and carries a three-year revolving period with two one-year extension options. The margin call provisions under this facility do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks.

During the nine months ended September 30, 2022, we entered into commercial credit facilities of $1.4 billion. In addition, we amended several commercial credit facilities resulting in an aggregate net upsize of $974.7 million.

Our secured financing agreements contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 71% of these agreements, do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For the 29% of repurchase agreements which do permit valuation adjustments based on capital market events, approximately 7% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreement.

For the three and nine months ended September 30, 2022, approximately $9.5 million and $28.3 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021, approximately $8.6 million and $26.9 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations.

As of September 30, 2022, Morgan Stanley Bank, N.A. held collateral sold under certain of our repurchase agreements with carrying values that exceeded the respective repurchase obligations by $694.6 million. The weighted average extended maturity of those repurchase agreements is 3.8 years.

Collateralized Loan Obligations and Single Asset Securitization

Commercial and Residential Lending Segment

In February 2022, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2022-FL3. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of two years. During the three and nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $72.0 million of additional interests into the CLO.

In July 2021, we contributed into a single asset securitization, STWD 2021-HTS, a previously originated $230.0 million first mortgage and mezzanine loan on a portfolio of 41 extended stay hotels with $210.1 million of third party financing.

In May 2021, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2021-FL2. On the closing date, the CLO issued $1.3 billion of notes and preferred shares, of which $1.1 billion of notes was purchased by third party investors. We retained $70.1 million of notes, along with preferred shares with a liquidation preference of $127.5 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $241.2 million of additional interests into the CLO.

In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion of notes and preferred shares, of which $936.4 million of notes was purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, the reinvestment period expired, and we repaid CLO debt in the amount of $180.9 million.

Infrastructure Lending Segment

In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $101.4 million of additional interests into the CLO.

In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF1. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the nine months ended September 30, 2022, we utilized the reinvestment feature, contributing $76.3 million of additional interests into the CLO.

The following table is a summary of our CLOs and our SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

September 30, 2022	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2022-FL3
Collateral assets	46	$	992,000	$	1,010,268	Index + 3.55%	(a)	February 2026	(b)
Financing	1	842,500		843,028		SOFR + 1.91%	(c)	November 2038	(d)
STWD 2021-HTS
Collateral assets	1	230,000		230,923		LIBOR + 3.84%	(a)	April 2026	(b)
Financing	1	210,091		208,735		LIBOR + 2.69%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	26	1,276,650		1,282,627		Index + 4.11%	(a)	May 2025	(b)
Financing	1	1,077,375		1,071,725		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	16	919,107		921,634		Index + 3.76%	(a)	December 2024	(b)
Financing	1	755,482		754,079		SOFR + 1.65%	(c)	July 2038	(d)
STWD 2021-SIF2
Collateral assets	31	492,805		508,186		Index + 3.72%	(a)	March 2027	(b)
Financing	1	410,000		407,034		SOFR + 2.11%	(c)	January 2033	(d)
STWD 2021-SIF1
Collateral assets	31	493,066		508,667		Index + 3.73%	(a)	September 2026	(b)
Financing	1	410,000		406,395		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	4,403,628	$	4,462,305
Financing		$	3,705,448	$	3,690,996

December 31, 2021	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2021-HTS
Collateral assets	1	$	230,000	$	230,587	LIBOR + 4.12%	(a)	April 2026	(b)
Financing	1	210,091		208,057		LIBOR + 2.48%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	25	1,272,133		1,279,678		LIBOR + 4.22%	(a)	February 2025	(b)
Financing	1	1,077,375		1,069,691		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	24	1,092,887		1,103,513		LIBOR + 4.19%	(a)	November 2024	(b)
Financing	1	936,375		933,049		SOFR + 1.63%	(c)	July 2038	(d)
STWD 2021-SIF1
Collateral assets	31	491,299		506,666		LIBOR + 3.91%	(a)	March 2026	(b)
Financing	1	410,000		405,319		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	3,086,319	$	3,120,444
Financing		$	2,633,841	$	2,616,116

______________________________________________________________________________________________________________________________

(a)Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. Of the loans financed by the STWD 2021-FL2 CLO as of September 30, 2022, 7% earned fixed-rate weighted average interest of 7.42%. Of the investments financed by the STWD 2021-SIF2 CLO as of September 30, 2022, 5% earned fixed-rate weighted average interest of 7.75%. Of the investments financed by the STWD 2021-SIF1 CLO as of September 30, 2022, 3% earned fixed-rate weighted average interest of 6.01%.

(b)Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets.

(c)Represents the weighted-average cost of financing incurred during the respective year-to-date period, inclusive of deferred issuance costs.

(d)Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date.

We incurred $37.9 million of issuance costs in connection with the CLOs and SASB, which are amortized on an effective yield basis over the estimated life of the CLOs and SASB. For the three and nine months ended September 30, 2022, approximately $2.7 million and $7.8 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2021,

approximately $1.8 million and $3.9 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. As of September 30, 2022 and December 31, 2021, our unamortized issuance costs were $21.0 million and $17.7 million, respectively.

The CLOs and SASB are considered VIEs, for which we are deemed the primary beneficiary. We therefore consolidate the CLOs and SASB. Refer to Note 15 for further discussion.

Maturities

Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands):

	Repurchase Agreements		Other Secured Financing		CLOs and SASB (a)		Total
2022 (remainder of)	$	267,383	$	7,646	$	106,346	$	381,375
2023	2,095,210		730,849		675,675		3,501,734
2024	1,041,311		124,602		432,055		1,597,968
2025	1,960,316		274,879		741,493		2,976,688
2026	2,832,539		995,455		1,588,716		5,416,710
Thereafter	2,346,604		899,778		161,163		3,407,545
Total	$	10,543,363	$	3,033,209	$	3,705,448	$	17,282,020

______________________________________________________________________________________________________________________

(a)For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature.

Unsecured Senior Notes

The following table is a summary of our unsecured senior notes outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Coupon Rate			Effective Rate (1)		Maturity Date	Remaining Period of Amortization	Carrying Value at
								September 30, 2022		December 31, 2021
2023 Senior Notes	5.50	%		5.71	%	11/1/2023	1.1 years	300,000		300,000
2023 Convertible Notes	4.38	%		4.57	%	4/1/2023	0.5 years	250,000		250,000
2024 Senior Notes	3.75	%		3.94	%	12/31/2024	2.3 years	400,000		400,000
2025 Senior Notes	4.75	%	(2)	5.04	%	3/15/2025	2.5 years	500,000		500,000
2026 Senior Notes	3.63	%		3.77	%	7/15/2026	3.8 years	400,000		400,000
2027 Senior Notes	4.38	%	(3)	4.49	%	1/15/2027	4.3 years	500,000		—
Total principal amount								2,350,000		1,850,000
Unamortized discount—Convertible Notes								(235)		(578)
Unamortized discount—Senior Notes								(9,954)		(10,067)
Unamortized deferred financing costs								(12,823)		(10,765)
Total carrying amount								$	2,326,988	$	1,828,590

______________________________________________________________________________________________________________________

(1)Effective rate includes the effects of underwriter purchase discount.

(2)The coupon on the 2025 Senior Notes is 4.75%.  At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%.

(3)The coupon on the 2027 Senior Notes is 4.375%.  At closing, we swapped the notes to a floating rate of SOFR + 2.95%.

Our unsecured senior notes contain certain financial tests and covenants. As of September 30, 2022, we were in compliance with all such covenants.

Senior Notes

On January 25, 2022, we issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes mature on January 15, 2027. Prior to July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to July 15, 2025, we may redeem up to 40% of the 2027 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings.

Convertible Senior Notes

On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”) which remain outstanding at September 30, 2022 and mature on April 1, 2023.

We recognized interest expense of $2.9 million and $8.7 million, respectively, during the three and nine months ended September 30, 2022 and 2021 from our Convertible Notes.

The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2022 (amounts in thousands, except rates):

	September 30, 2022
	Conversion	Conversion
	Rate (1)	Price (2)
2023 Convertible Notes	38.5959	$	25.91

______________________________________________________________________________________________________________________

(1)The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture).

(2)As of September 30, 2022, the market price of the Company’s common stock was $18.22.

The if-converted value of the 2023 Convertible Notes was less than their principal amount by $74.2 million at September 30, 2022 as the closing market price of the Company’s common stock of $18.22 was less than the implicit conversion price of $25.91 per share. The if-converted value of the principal amount of the 2023 Convertible Notes was $175.8 million as of September 30, 2022. As of September 30, 2022, the net carrying amount and fair value of the 2023 Convertible Notes was $249.7 million and $245.0 million, respectively.

Upon conversion of the 2023 Convertible Notes, settlement may be made in common stock, cash or a combination of both, at the option of the Company.

Conditions for Conversion

Prior to October 1, 2022, the 2023 Convertible Notes did not satisfy any of the specified conditions for conversion. On or after October 1, 2022, holders of the 2023 Convertible Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date.

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Loan Securitization/Sale Activities

9 Months Ended

Sep. 30, 2022

Loan Securitization/Sale Activities

Loan Securitization/Sale Activities

Loan Securitization/Sale Activities

As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control.

Loan Securitizations

Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets.

In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold.

The following summarizes the face amount and proceeds of commercial and residential loans securitized for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

	Commercial Loans				Residential Loans
	Face Amount		Proceeds		Face Amount		Proceeds
For the Three Months Ended September 30,
2022	$	33,000	$	30,957	$	—	$	—
2021	349,225		364,287		469,663		491,901
For the Nine Months Ended September 30,
2022	$	1,038,889	$	1,022,754	$	1,905,829	$	1,913,459
2021	738,866		775,374		1,417,641		1,465,576

The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option.

Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party.

Commercial and Residential Loan Sales

Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization. The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands):

	Loan Transfers Accounted for as Sales
	Commercial Loans				Residential Loans
For the Three Months Ended September 30,	Face amount (1)		Proceeds (1)		Face Amount (2)		Proceeds (2)
2022	$	63,656	$	64,539	$	1,152	$	1,141
2021	35,700		35,356		—		—
For the Nine Months Ended September 30,
2022	$	70,636	$	71,008	$	1,057,013	$	1,056,683
2021	268,370		264,846		89,801		92,817

______________________________________________________________________________________________________________________

(1)During the three and nine months ended September 30, 2022, we sold $63.7 million of whole loan interests for proceeds of $64.5 million. During the nine months ended September 30, 2022, we also sold $7.0 million of senior interests in a first mortgage loan for proceeds of $6.5 million. During the three months ended September 30, 2021, we sold $35.7 million of senior interests in first mortgage loans for proceeds of $35.4 million. During the nine months

ended September 30, 2021, we sold $245.8 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $243.3 million and $21.5 million, respectively.

(2)In February 2022, we sold $745.0 million of agency-eligible residential loans at face amount which was subject to a post-closing contingent sales price adjustment based on the gain or loss to the purchaser/securitization underwriter, less underwriting costs, if those loans were sold into a future securitization. Given spread widening which occurred in the residential markets since the initial sale, in lieu of the buyer executing a securitization or sale of the loans, we entered into a forward settlement agreement to acquire the remaining balance of these loans at par in June 2022. The loan purchase was subject to a financing contingency, whereby the seller was to provide us financing under a mutually agreed repurchase agreement within 120 days. If such mutually agreed financing was not completed, we would not be obligated to complete the forward settlement, and the previous post-closing contingency referenced above would have been reinstated. In October 2022, the seller provided us financing under a mutually agreed repurchase agreement and the forward settlement was completed. As of September 30, 2022, we estimated the amount of the future securitization contingency to be $88.4 million based on the fair market value of the loans at this date. As a result, we recorded a contingency loss of $55.7 million and $88.4 million within other loss, net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

During the three and nine months ended September 30, 2022, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $0.3 million and $0.1 million, respectively. During the nine months ended September 30, 2021, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $1.1 million. During the three months ended September 30, 2021, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were not material.

Infrastructure Loan Sales

There were no sales of loans by the Infrastructure Lending Segment during the three and nine months ended September 30, 2022. During the nine months ended September 30, 2021, the Infrastructure Lending Segment sold loans held-for-sale with an aggregate face amount of $2.5 million, for proceeds of $2.5 million, recognizing immaterial gains. There were no sales of loans by the Infrastructure Lending Segment during the three months ended September 30, 2021.

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Derivatives and Hedging Activity

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activity

Derivatives and Hedging Activity

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both our business operations and economic conditions. Refer to Note 14 to the consolidated financial statements included in our Form 10-K for further discussion of our risk management objectives and policies.

Designated Hedges

The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of September 30, 2022 and December 31, 2021, the Company did not have any designated hedges.

Non-designated Hedges and Derivatives

We have entered into the following types of non-designated hedges and derivatives:

•Foreign exchange (“Fx”) forwards whereby we agree to buy or sell a specified amount of foreign currency for a specified amount of USD at a future date, economically fixing the USD amounts of foreign denominated cash flows we expect to receive or pay related to certain foreign denominated loan investments;

•Interest rate contracts which hedge a portion of our exposure to changes in interest rates;

•Credit instruments which hedge a portion of our exposure to the credit risk of our commercial loans held-for-sale; and

•Interest rate swap guarantees whereby we guarantee the interest rate swap obligations of certain Infrastructure Lending borrowers. Our interest rate swap guarantees were assumed in connection with the acquisition of the Infrastructure Lending Segment.

The following table summarizes our non-designated derivatives as of September 30, 2022 (notional amounts in thousands):

Type of Derivative	Number of Contracts	Aggregate Notional Amount	Notional Currency	Maturity
Fx contracts – Buy Euros ("EUR")	17	65,538	EUR	October 2022 - June 2023
Fx contracts – Buy Pounds Sterling ("GBP")	6	46,517	GBP	October 2022 - October 2024
Fx contracts – Buy Australian dollar ("AUD")	3	5,008	AUD	October 2022 - August 2023
Fx contracts – Sell EUR	226	655,523	EUR	October 2022 - April 2026
Fx contracts – Sell GBP	208	621,465	GBP	October 2022 - April 2027
Fx contracts – Sell AUD	94	672,142	AUD	October 2022 - January 2026
Fx contracts – Sell Swiss Franc ("CHF")	27	15,128	CHF	October 2022 - November 2025
Interest rate swaps – Paying fixed rates	40	3,505,347	USD	April 2024 - June 2032
Interest rate swaps – Receiving fixed rates	2	970,000	USD	March 2025 - January 2027
Interest rate caps	6	758,000	USD	November 2022 - April 2025
Interest rate caps	1	61,000	GBP	April 2024
Credit instruments	3	49,000	USD	September 2058 - August 2061
Interest rate swap guarantees	4	267,162	USD	October 2022 - June 2025
Total	637

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Fair Value of Derivatives in an Asset Position (1) as of				Fair Value of Derivatives in a Liability Position (2) as of
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Interest rate contracts	$	7,888	$	17,728	$	73,600	$	16
Interest rate swap guarantees	—		—		—		260
Foreign exchange contracts	242,398		30,478		9,166		12,870
Credit instruments	885		10		—		275
Total derivatives	$	251,171	$	48,216	$	82,766	$	13,421

___________________________________________________

(1)Classified as derivative assets in our condensed consolidated balance sheets.

(2)Classified as derivative liabilities in our condensed consolidated balance sheets.

The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income for the Three Months Ended September 30,				Amount of Gain (Loss) Recognized in Income for the Nine Months Ended September 30,
		2022		2021		2022		2021
Interest rate contracts	Gain (loss) on derivative financial instruments	$	78,508	$	7,993	$	218,698	$	20,808
Interest rate swap guarantees	Gain (loss) on derivative financial instruments	—		(65)		260		431
Foreign exchange contracts	Gain (loss) on derivative financial instruments	127,358		33,796		242,042		44,857
Credit instruments	Gain (loss) on derivative financial instruments	204		88		921		(304)
		$	206,070	$	41,812	$	461,921	$	65,792

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Offsetting Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Offsetting [Abstract]

Offsetting Assets and Liabilities

Offsetting Assets and Liabilities

The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting, which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands):

			(ii)   Gross Amounts Offset in the Statement of Financial Position		(iii) = (i) - (ii) Net Amounts Presented in the Statement of Financial Position		(iv) Gross Amounts Not Offset in the Statement of Financial Position
	(i) Gross Amounts Recognized						Financial Instruments		Cash Collateral Received / Pledged		(v) = (iii) - (iv) Net Amount
As of September 30, 2022
Derivative assets	$	251,171	$	—	$	251,171	$	82,766	$	52,317	$	116,088
Derivative liabilities	$	82,766	$	—	$	82,766	$	82,766	$	—	$	—
Repurchase agreements	10,543,363		—		10,543,363		10,543,363		—		—
	$	10,626,129	$	—	$	10,626,129	$	10,626,129	$	—	$	—
As of December 31, 2021
Derivative assets	$	48,216	$	—	$	48,216	$	12,870	$	21,290	$	14,056
Derivative liabilities	$	13,421	$	—	$	13,421	$	12,870	$	291	$	260
Repurchase agreements	9,542,034		—		9,542,034		9,542,034		—		—
	$	9,555,455	$	—	$	9,555,455	$	9,554,904	$	291	$	260

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Variable Interest Entities

9 Months Ended

Sep. 30, 2022

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities

Investment Securities

As discussed in Note 2, we evaluate all of our investments and other interests in entities for consolidation, including our investments in CMBS, RMBS and our retained interests in securitization transactions we initiated, all of which are generally considered to be variable interests in VIEs.

Securitization VIEs consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to us as the primary beneficiary. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation.

VIEs in which we are the Primary Beneficiary

The inclusion of the assets and liabilities of securitization VIEs in which we are deemed the primary beneficiary has no economic effect on us. Our exposure to the obligations of securitization VIEs is generally limited to our investment in these entities. We are not obligated to provide, nor have we provided, any financial support for any of these consolidated structures.

As discussed in Note 10, we have refinanced various pools of our commercial and infrastructure loans held-for-investment through five CLOs and one SASB, which are considered to be VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs and SASB in our financial statements as we have both (i) the power to direct the activities in our role as collateral manager, collateral advisor, or controlling class representative that most significantly impact the CLOs’ and SASB's economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the CLOs and SASB that could be potentially significant through the subordinate interests we own.

The following table details the assets and liabilities of our consolidated CLOs and SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	39,924	$	15,297
Loans held-for-investment	4,369,537		3,073,572
Investment securities	36,934		11,426
Accrued interest receivable	15,848		8,936
Other assets	62		11,213
Total Assets	$	4,462,305	$	3,120,444
Liabilities
Accounts payable, accrued expenses and other liabilities	$	13,153	$	3,335
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Total Liabilities	$	3,704,149	$	2,619,451

Assets held by the CLOs and SASB are restricted and can be used only to settle obligations of the CLOs and SASB, including the subordinate interests owned by us. The liabilities of the CLOs and SASB are non-recourse to us and can only be satisfied from the assets of the CLOs and SASB.

We also hold controlling interests in other non-securitization entities that are considered VIEs. The Woodstar Fund, Woodstar Feeder Fund, L.P. and one of the Woodstar Fund’s indirect investees, SPT Dolphin Intermediate LLC (“SPT Dolphin”), the entity which holds the Woodstar II Portfolio, are each VIEs because the third party interest holders do not carry kick-out rights or substantive participating rights. We were deemed to be the primary beneficiary of those VIEs because we possess both the power to direct the activities of the VIEs that most significantly impact their economic performance and a significant economic interest in each entity. The Woodstar Fund had total assets of $1.7 billion, including its indirect investment in SPT Dolphin, and no significant liabilities as of September 30, 2022. As of September 30, 2022, Woodstar Feeder Fund, L.P. and its consolidated subsidiary which is also considered a VIE, Woodstar Feeder REIT, LLC, had a $0.5 billion investment in the Woodstar Fund, had no significant liabilities and had temporary equity of $0.3 billion consisting of the contingently redeemable non-controlling interests of the third party investors (see Note 17).

We also hold a 51% controlling interest in a joint venture (the “CMBS JV”) within our Investing and Servicing Segment, which is considered a VIE because the third party interest holder does not carry kick-out rights or substantive participating rights. We are deemed the primary beneficiary of the CMBS JV. This VIE had total assets of $369.5 million and liabilities of $89.0 million as of September 30, 2022. Refer to Note 17 for further discussion.

In addition to the above non-securitization entities, we have smaller VIEs with total assets of $76.6 million and liabilities of $34.4 million as of September 30, 2022.

VIEs in which we are not the Primary Beneficiary

In certain instances, we hold a variable interest in a VIE in the form of CMBS, but either (i) we are not appointed, or do not serve as, special servicer or servicing administrator or (ii) an unrelated third party has the rights to unilaterally remove us as special servicer without cause. In these instances, we do not have the power to direct activities that most significantly impact the VIE’s economic performance. In other cases, the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant. For these structures, we are not deemed to be the primary beneficiary of the VIE, and we do not consolidate these VIEs.

As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of September 30, 2022, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $20.7 million on a fair value basis.

As of September 30, 2022, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances, excluding the notional value of interest-only securities, of $4.7 billion. The

corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations.

We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $11.9 million as of September 30, 2022, within investments in unconsolidated entities on our consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments.

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Related-Party Transactions

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

Management Agreement

We are party to a management agreement (the “Management Agreement”) with our Manager. Under the Management Agreement, our Manager, subject to the oversight of our board of directors, is required to manage our day to day activities, for which our Manager receives a base management fee and is eligible for an incentive fee and stock awards. Our Manager’s personnel perform certain due diligence, legal, management and other services that outside professionals or consultants would otherwise perform. As such, in accordance with the terms of our Management Agreement, our Manager is paid or reimbursed for the documented costs of performing such tasks, provided that such costs and reimbursements are in amounts no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. Refer to Note 17 to the consolidated financial statements included in our Form 10-K for further discussion of this agreement.

Base Management Fee. For the three months ended September 30, 2022 and 2021, approximately $21.7 million and $19.2 million, respectively, was incurred for base management fees. For the nine months ended September 30, 2022 and 2021, approximately $64.9 million and $57.5 million, respectively, was incurred for base management fees. As of September 30, 2022 and December 31, 2021, there were $21.7 million and $20.3 million, respectively, of unpaid base management fees included in related-party payable in our condensed consolidated balance sheets.

Incentive Fee. For the three months ended September 30, 2022 and 2021, approximately $0.9 million and $1.0 million, respectively, was incurred for incentive fees. For the nine months ended September 30, 2022 and 2021, approximately $35.1 million and $19.1 million, respectively, was incurred for incentive fees. As of September 30, 2022 and December 31, 2021, there were $0.9 million and $51.2 million of unpaid incentive fees included in related-party payable in our condensed consolidated balance sheets.

Expense Reimbursement. For the three months ended September 30, 2022 and 2021, approximately $2.8 million and $1.8 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, approximately $6.4 million and $4.8 million, respectively, was incurred for executive compensation and other reimbursable expenses. As of September 30, 2022 and December 31, 2021, there were $3.5 million and $4.9 million, respectively, of unpaid reimbursable executive compensation and other expenses included in related-party payable in our condensed consolidated balance sheets.

Equity Awards. In certain instances, we issue RSAs to certain employees of affiliates of our Manager who perform services for us. During the nine months ended September 30, 2022 and 2021, we granted 200,972 and 981,951 RSAs, respectively, at a grant date fair value of $4.8 million and $19.6 million, respectively. There were no RSAs granted during the three months ended September 30, 2022 and 2021. Expenses related to the vesting of awards to employees of affiliates of our Manager were $1.9 million and $2.2 million during the three months ended September 30, 2022 and 2021, respectively, and are reflected in general and administrative expenses in our condensed consolidated statements of operations. Expenses related to the vesting of awards to employees of affiliates of our Manager were $6.8 million and $6.7 million during the nine months ended September 30, 2022 and 2021, respectively. These shares generally vest over a three-year period. Compensation expense related to the Starwood Property Trust, Inc. Employee Stock Purchase Plan (refer to Note 17) for employees of affiliates of our Manager were not material during the three and nine months ended September 30, 2022, and are reflected in general and administrative expenses in our condensed consolidated statements of operations.

Manager Equity Plan

In April 2022, the Company’s shareholders approved the Starwood Property Trust, Inc. 2022 Manager Equity Plan (the “2022 Manager Equity Plan”) which replaces the Starwood Property Trust, Inc. 2017 Manager Equity Plan (the “2017 Manager Equity Plan”). In November 2020, we granted 1,800,000 RSUs to our Manager under the 2017 Manager Equity Plan. In September 2019, we granted 1,200,000 RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted 775,000 RSUs to our Manager under the 2017 Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of $4.5 million within management fees in our condensed consolidated statements of operations for both the three months ended September 30, 2022 and 2021. For the nine months ended September 30, 2022 and 2021, we recognized $13.5 million and $14.9 million, respectively, related to these awards. Refer to Note 17 for further discussion.

Investments in Loans and Securities

In March 2022, we originated a new loan on the development and recapitalization of luxury rental cabins with a total commitment of $200.0 million, of which $120.4 million was outstanding as of September 30, 2022. The loan bears interest at SOFR + 6.50% plus fees and has a term of 24 months with three one-year extension options. The proceeds were partially used to repay an existing $99.0 million first mortgage loan that we originated in February 2020. Certain members of our executive team and board of directors own equity interests in the borrower.

During the three and nine months ended September 30, 2022, the Company acquired $118.9 million and $1.1 billion, respectively, of loans from a residential mortgage originator in which it holds an equity interest. Additionally, as of September 30, 2022, the Company had outstanding residential mortgage loan purchase commitments of $51.6 million to this residential mortgage originator. Refer to Note 8 for further discussion. During the nine months ended September 30, 2022, the Company received proceeds of $4.4 million from the sale of loans to the residential mortgage originator. No proceeds were received from the sale of loans to the residential mortgage originator during the three months ended September 30, 2022.

Lease Arrangements

In March 2020, we entered into an office lease agreement with an entity which is controlled by our Chairman and CEO through majority equity ownership of the entity. The leased premises serve as our new Miami Beach office following the expiration of our former lease in Miami Beach. The lease, as amended in September 2022, is for 64,424 square feet of office space, commenced July 1, 2022 and has an initial term of 15 years from the monthly lease payment commencement date of November 1, 2022. The lease payments are based on an annual base rate of $52.00 per square foot that increases by 3% each anniversary following commencement, plus our pro rata share of building operating expenses. Prior to the execution of this lease, we engaged an independent third party leasing firm and external counsel to advise the independent directors of our board of directors on market terms for the lease.  The terms of the lease and subsequent amendment were approved by our independent directors. In April 2020, we provided a $1.9 million cash security deposit to the landlord. During the three and nine months ended September 30, 2022, we made payments to the landlord of $1.0 million and $2.9 million, respectively, for reimbursements relating to tenant improvements under the terms of the lease. During the three and nine months ended September 30, 2022, we recognized $1.0 million of rent expense with respect to this lease within general and administrative expenses in our condensed consolidated statements of operations. Upon the July 1, 2022 commencement of the lease, we recorded a $29.8 million right-of-use asset and corresponding lease liability within “Other assets” and “Accounts payable, accrued expenses and other liabilities,” respectively, on our condensed consolidated balance sheet representing the present value of the minimum required lease payments over the term of the lease.

Other Related-Party Arrangements

Highmark Residential (“Highmark”), an affiliate of our Manager, provides property management services for properties within our Woodstar I and Woodstar II Portfolios. Fees paid to Highmark are calculated as a percentage of gross receipts and are at market terms. During the three months ended September 30, 2022 and 2021, property management fees to Highmark of $1.4 million and $1.3 million, respectively, were recognized within our Woodstar Portfolios. During the nine months ended September 30, 2022 and 2021, property management fees to Highmark were $4.1 million and $2.8 million, respectively.

Refer to Note 17 to the consolidated financial statements included in our Form 10-K for further discussion of related-party agreements.

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Stockholders' Equity and Non-Controlling Interests

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Non-Controlling Interests

Stockholders’ Equity and Non-Controlling Interests

During the nine months ended September 30, 2022, our board of directors declared the following dividends:

Declaration Date	Record Date	Ex-Dividend Date	Payment Date	Amount		Frequency
9/16/22	9/30/22	9/29/22	10/14/22	$	0.48	Quarterly
6/15/22	6/30/22	6/29/22	7/15/22	0.48		Quarterly
3/14/22	3/31/22	3/30/22	4/15/22	0.48		Quarterly

ATM Agreement

In May 2022, we entered into a Starwood Property Trust, Inc. Common Stock Sales Agreement (the “ATM Agreement”) with a syndicate of financial institutions to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. Sales of shares under the ATM Agreement are made by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of sale or at negotiated prices. The ATM Agreement replaces a similar agreement previously entered into in May 2014 with Merrill Lynch, Pierce, Fenner and Smith Incorporated. During the nine months ended September 30, 2022, we issued 1,415,564 shares of common stock under our ATM Agreement for gross proceeds of $33.3 million at an average share price of $23.54 and paid related commission costs of $0.7 million. There were no shares issued under the ATM Agreement during the three months ended September 30, 2022. During the three and nine months ended September 30, 2021, there were no shares issued under our previous ATM agreement.

Dividend Reinvestment and Direct Stock Purchase Plan

During the nine months ended September 30, 2022 and 2021, shares issued under the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”) were not material.

Employee Stock Purchase Plan

In April 2022, the Company’s shareholders approved the Starwood Property Trust, Inc. Employee Stock Purchase Plan (the “ESPP”) which allows eligible employees to purchase common stock of the Company at a discounted purchase price. The discounted purchase price of a share of the Company's common stock is 85% of the fair market value (closing market price) at the lower of the beginning or the end of the quarterly offering period. Participants may purchase shares not exceeding an aggregate fair market value of $25,000 in any calendar year. The maximum aggregate number of shares subject to issuance in accordance with the ESPP is 2,000,000 shares.

During the three and nine months ended September 30, 2022, 34,625 shares of common stock were purchased by participants at a discounted purchase price of $18.04 per share. The Company recognized $0.1 million of compensation expense related to its ESPP during such periods based on the estimated fair value of the discounted purchase options granted to the participants as of the beginning of the quarterly offering period determined using the Black-Scholes option pricing model.

As of September 30, 2022, there were 2.0 million shares of common stock available for future issuance through the ESPP.

Equity Plans

In April 2022, the Company’s shareholders approved the 2022 Manager Equity Plan and the Starwood Property Trust, Inc. 2022 Equity Plan (the “2022 Equity Plan”), which allow for the issuance of up to 18,700,000 stock options, stock appreciation rights, RSAs, RSUs or other equity-based awards or any combination thereof to the Manager, directors, employees, consultants or any other party providing services to the Company. The 2022 Manager Equity Plan succeeds and replaces the 2017 Manager Equity Plan and the 2022 Equity Plan succeeds and replaces the Starwood Property Trust, Inc. 2017 Equity Plan (the “2017 Equity Plan”).

The table below summarizes our share awards granted or vested under the 2017 Manager Equity Plan (none under the 2022 Manager Equity Plan) during the nine months ended September 30, 2022 and 2021 (dollar amounts in thousands):

Grant Date	Type	Amount Granted	Grant Date Fair Value		Vesting Period
November 2020	RSU	1,800,000	$	30,078	3 years
September 2019	RSU	1,200,000	29,484		(1)
April 2018	RSU	775,000	16,329		3 years

______________________________________________________________________________________________________________________

(1)Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period.

Schedule of Non-Vested Shares and Share Equivalents (1)

	2022 Equity Plan	2022 Manager Equity Plan	Total	Weighted Average Grant Date Fair Value (per share)
Balance as of January 1, 2022	2,406,730	1,295,277	3,702,007	$	18.90
Granted	829,805	—	829,805	23.54
Vested	(646,771)	(695,277)	(1,342,048)	18.55
Forfeited	(69,268)	—	(69,268)	19.49
Balance as of September 30, 2022	2,520,496	600,000	3,120,496	20.27

(1)    Equity-based award activity for awards granted under the 2017 Equity Plan is reflected within the 2022 Equity Plan column, and for awards granted under the 2017 Manager Equity Plan, within the 2022 Manager Equity Plan column.

As of September 30, 2022, there were 18.7 million shares of common stock available for future grants under the 2022 Manager Equity Plan and the 2022 Equity Plan.

Non-Controlling Interests in Consolidated Subsidiaries

As discussed in Note 2, on November 5, 2021 we sold a 20.6% non-controlling interest in the Woodstar Fund to third party investors for net cash proceeds of $214.2 million. Under the Woodstar Fund operating agreement, such interests are contingently redeemable by us, at the option of the interest holder, for cash at liquidation fair value if any assets remain upon termination of the Woodstar Fund. The Woodstar Fund operating agreement specifies an eight-year term with two one-year extension options, the first at our option and the second subject to consent of an advisory committee representing the non-controlling interest holders. Accordingly, these contingently redeemable non-controlling interests have been classified as “Temporary Equity” in our condensed consolidated balance sheets and represent the fair value of the Woodstar Fund’s net assets allocable to those interests. During the three and nine months ended September 30, 2022, net income attributable to these non-controlling interests was $23.8 million and $134.3 million, respectively.

In connection with our Woodstar II Portfolio acquisitions, we issued 10.2 million Class A Units in our subsidiary, SPT Dolphin, and rights to receive an additional 1.9 million Class A Units if certain contingent events occur. As of September 30, 2022, all of the 1.9 million contingent Class A Units were issued. The Class A Units are redeemable for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. There were 9.8 million Class A Units outstanding as of September 30, 2022. The outstanding Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our consolidated balance sheets, the balance of which was $208.5 million as of September 30, 2022 and December 31, 2021.

To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, we recognized net income attributable to non-controlling interests of $4.7 million and $14.1 million, respectively, associated with these Class A Units. During the three and nine months ended September 30, 2021, we recognized net income attributable to non-controlling interests of $4.7 million and $14.7 million, respectively, associated with these Class A Units.

As discussed in Note 15, we hold a 51% controlling interest in the CMBS JV within our Investing and Servicing Segment. Because the CMBS JV is deemed a VIE for which we are the primary beneficiary, the 49% interest of our joint venture partner is reflected as a non-controlling interest in consolidated subsidiaries on our condensed consolidated balance sheets, and any net income attributable to this 49% joint venture interest is reflected within net income attributable to non-

controlling interests in our condensed consolidated statement of operations. The non-controlling interests in the CMBS JV were $146.6 million and $131.9 million as of September 30, 2022 and December 31, 2021, respectively. During the three and nine months ended September 30, 2022, net (loss) income attributable to these non-controlling interests was $(0.4) million and $4.5 million, respectively. During the three and nine months ended September 30, 2021, net income attributable to these non-controlling interests was $6.7 million and $16.7 million, respectively.

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Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Basic Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Basic earnings	$	191,633	$	126,967	$	715,775	$	350,939
Diluted Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Add: Interest expense on Convertible Notes	2,906		2,901		8,724		8,717
Add: Undistributed earnings to participating shares	1,818		—		11,629		—
Less: Undistributed earnings reallocated to participating shares	(1,763)		—		(11,280)		—
Diluted earnings	$	194,594	$	129,868	$	724,848	$	359,656
Number of Shares:
Basic — Average shares outstanding	306,704		285,676		304,908		284,577
Effect of dilutive securities — Convertible Notes	9,649		9,649		9,649		9,649
Effect of dilutive securities — Contingently issuable shares	23		19		23		19
Effect of dilutive securities — Unvested non-participating shares	199		104		161		148
Diluted — Average shares outstanding	316,575		295,448		314,741		294,393
Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.62	$	0.44	$	2.35	$	1.23
Diluted	$	0.61	$	0.44	$	2.30	$	1.22

As of September 30, 2022 and 2021, participating shares of 12.4 million and 13.3 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at both September 30, 2022 and 2021 included 9.8 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The changes in AOCI by component are as follows (amounts in thousands):

	Cumulative Unrealized Gain (Loss) on Available-for- Sale Securities		Foreign Currency Translation		Total
Three Months Ended September 30, 2022
Balance at July 1, 2022	$	28,970	$	—	$	28,970
OCI before reclassifications	(6,194)		—		(6,194)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(6,194)		—		(6,194)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Three Months Ended September 30, 2021
Balance at July 1, 2021	$	41,310	$	—	$	41,310
OCI before reclassifications	(822)		—		(822)
Amounts reclassified from AOCI	(2)		—		(2)
Net period OCI	(824)		—		(824)
Balance at September 30, 2021	$	40,486	$	—	$	40,486
Nine Months Ended September 30, 2022
Balance at January 1, 2022	$	40,953	$	—	$	40,953
OCI before reclassifications	(18,177)		—		(18,177)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(18,177)		—		(18,177)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Nine Months Ended September 30, 2021
Balance at January 1, 2021	$	44,057	$	(64)	$	43,993
OCI before reclassifications	(3,569)		—		(3,569)
Amounts reclassified from AOCI	(2)		64		62
Net period OCI	(3,571)		64		(3,507)
Balance at September 30, 2021	$	40,486	$	—	$	40,486

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Fair Value

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level III—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

Valuation Process

We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

Pricing Verification—We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market.

Unobservable Inputs—Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs.

Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date.

Fair Value on a Recurring Basis

We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows:

Loans held-for-sale, commercial

We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available.

Loans held-for-sale and loans held-for-investment, residential

We measure the fair value of our residential loans held-for-sale and held-for-investment based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III.

RMBS

RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III.

CMBS

CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable.

Equity security

The equity security is publicly registered and traded in the U.S. and its market price is listed on the London Stock Exchange. The security has been classified within Level I.

Woodstar Fund Investments

The fair value of investments held by the Woodstar Fund is determined based on observable and unobservable market inputs. The initial fair value of the Woodstar Fund's investments at its November 5, 2021 establishment date was determined by reference to the purchase price paid by third party investors, which was consistent with both a recent external appraisal as well as our extensive marketing efforts to sell interests in the Woodstar Fund, plus working capital.

For the properties, the third party appraisal applied the income capitalization approach with corroborative support from the sales comparison approach. The cost approach was not employed, as it is typically not emphasized by potential investors in the multifamily affordable housing sector. The income capitalization approach estimates an income stream for a property over a 10-year period and discounts this income plus a reversion (presumed sale) into a present value at a risk adjusted discount rate. Terminal capitalization rates and discount rates utilized in this approach are derived from market transactions as well as other financial and industry data.

For secured financing, the third party appraisal discounted the contractual cash flows at the interest rate at which such arrangements would bear if executed in the current market. The fair value of investment level working capital is assumed to approximate carrying value due to its primarily short-term monetary nature. The fair value of interest rate derivatives is determined using the methodology described in the Derivatives discussion below.

Internal valuations at interim quarter ends are prepared by management. The valuation of properties is based on a direct income capitalization approach, whereby a direct capitalization market rate is applied to annualized in-place net operating income at the portfolio level. The direct capitalization rate is initially calibrated to the implied rate from the latest appraisal and

adjusted for subsequent changes in current market capitalization rates for sales of comparable multifamily properties. The valuations of secured financing agreements, working capital and interest rate derivatives are consistent with the methodologies described in the paragraph above.

Given the significance of the unobservable inputs used in the respective valuations, the Woodstar Fund’s investments have been classified within Level III of the fair value hierarchy.

Domestic servicing rights

The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy.

Derivatives

The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

The valuation of over the counter derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2022 and December 31, 2021, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy.

Liabilities of consolidated VIEs

Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels.

For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable.

Assets of consolidated VIEs

The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy.

Fair Value Only Disclosed

We determine the fair value of our financial instruments and assets where fair value is disclosed as follows:

Loans held-for-investment

We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy.

HTM debt securities

We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies and infrastructure bonds using the same methodology described for our loans held-for-investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis.

Secured financing agreements, CLOs and SASB

The fair value of the secured financing agreements, CLOs and SASB are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy.

Unsecured senior notes

The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II of the fair value hierarchy.

Fair Value Disclosures

The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,258,860	$	—	$	70,389	$	2,188,471
RMBS	116,577		—		—		116,577
CMBS	20,652		—		—		20,652
Equity security	9,343		9,343		—		—
Woodstar Fund investments	1,669,265		—		—		1,669,265
Domestic servicing rights	18,014		—		—		18,014
Derivative assets	251,171		—		251,171		—
VIE assets	54,215,370		—		—		54,215,370
Total	$	58,559,252	$	9,343	$	321,560	$	58,228,349
Financial Liabilities:
Derivative liabilities	$	82,766	$	—	$	82,766	$	—
VIE liabilities	52,501,845		—		47,008,848		5,492,997
Total	$	52,584,611	$	—	$	47,091,614	$	5,492,997

	December 31, 2021
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,936,025	$	—	$	—	$	2,936,025
RMBS	143,980		—		—		143,980
CMBS	22,244		—		—		22,244
Equity security	11,624		11,624		—		—
Woodstar Fund investments	1,040,309		—		—		1,040,309
Domestic servicing rights	16,780		—		—		16,780
Derivative assets	48,216		—		48,216		—
VIE assets	61,280,543		—		—		61,280,543
Total	$	65,499,721	$	11,624	$	48,216	$	65,439,881
Financial Liabilities:
Derivative liabilities	$	13,421	$	—	$	13,421	$	—
VIE liabilities	59,752,922		—		54,972,701		4,780,221
Total	$	59,766,343	$	—	$	54,986,122	$	4,780,221

The changes in financial assets and liabilities classified as Level III are as follows for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Three Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2022 balance	$	2,197,501	$	124,439	$	20,965	$	1,558,850	$	17,499	$	57,993,563	$	(5,980,634)	$	55,932,183
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(87,474)		—		(84)		110,415		515		(3,778,193)		824,214		(2,930,607)
Net accretion	—		1,744		—		—		—		—		—		1,744
Included in OCI	—		(6,194)		—		—		—		—		—		(6,194)
Purchases / Originations	186,397		—		—		—		—		—		—		186,397
Sales	(1,266)		—		—		—		—		—		—		(1,266)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(37,998)		(3,412)		(229)		—		—		—		(4,887)		(46,526)
Transfers into Level III	1,700		—		—		—		—		—		(573,303)		(571,603)
Transfers out of Level III	(70,389)		—		—		—		—		—		241,613		171,224
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		—		—		—
Deconsolidation of VIEs	—		—		—		—		—		—		—		—
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(92,162)	$	1,744	$	(84)	$	110,415	$	515	$	(3,778,193)	$	824,214	$	(2,933,551)
Included in OCI	$	—	$	(6,194)	$	—	$	—	$	—	$	—	$	—	$	(6,194)

Three Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2021 balance	$	767,821	$	154,704	$	18,965	$	—	$	13,705	$	63,493,796	$	(4,836,192)	$	59,612,799
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	31,727		—		(790)		—		2,237		(1,601,734)		580,581		(987,979)
Net accretion	—		2,584		—		—		—		—		—		2,584
Included in OCI	—		(824)		—		—		—		—		—		(824)
Purchases / Originations	1,783,772		—		—		—		—		—		—		1,783,772
Sales	(856,187)		—		—		—		—		—		—		(856,187)
Issuances	—		—		—		—		—		—		(27,112)		(27,112)
Cash repayments / receipts	(50,395)		(7,881)		(356)		—		—		—		(351)		(58,983)
Transfers into Level III	4,414		—		—		—		—		—		(112,562)		(108,148)
Transfers out of Level III	(133,863)		—		—		—		—		—		349,922		216,059
Transfers within Level III	258,927		—		—						(258,927)		—		—
Consolidation of VIEs	—		—		—		—		—		1,649,200		(520,325)		1,128,875
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	12,571	$	2,582	$	409	$	—	$	2,237	$	(1,601,734)	$	580,581	$	(1,003,354)
Included in OCI	$	—	$	(822)	$	—	$	—	$	—	$	—	$	—	$	(822)

Nine Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2022 balance	$	2,936,025	$	143,980	$	22,244	$	1,040,309	$	16,780	$	61,280,543	$	(4,780,221)	$	60,659,660
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(326,737)		—		(1,441)		628,956		1,234		(10,696,486)		1,746,436		(8,648,038)
Net accretion	—		6,974		—		—		—		—		—		6,974
Included in OCI	—		(18,177)		—		—		—		—		—		(18,177)
Purchases / Originations	3,793,467		—		—		—		—		—		—		3,793,467
Sales	(3,588,953)		—		—		—		—		—		—		(3,588,953)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(152,847)		(16,200)		(681)		—		—		—		(5,712)		(175,440)
Transfers into Level III	1,847		—		—		—		—		—		(1,203,420)		(1,201,573)
Transfers out of Level III	(474,331)		—		—		—		—		—		559,062		84,731
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		4,361,325		(1,810,101)		2,551,224
Deconsolidation of VIEs	—		—		530		—		—		(730,012)		959		(728,523)
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(258,652)	$	6,641	$	(911)	$	628,956	$	1,234	$	(10,696,486)	$	1,746,436	$	(8,572,782)
Included in OCI	$	—	$	(17,771)	$	—	$	—	$	—	$	—	$	—	$	(17,771)

Nine Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2021 balance	$	1,022,979	$	167,349	$	19,457	$	—	$	13,202	$	64,238,328	$	(2,019,876)	$	63,441,439
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	68,116		—		(98)		—		2,740		(4,952,071)		647,555		(4,233,758)
Net accretion	—		7,800		—		—		—		—		—		7,800
Included in OCI	—		(3,571)		—		—		—		—		—		(3,571)
Purchases / Originations	3,151,346		—		—		—		—		—		—		3,151,346
Sales	(2,333,767)		—		—		—		—		—		—		(2,333,767)
Issuances	—		—		—		—		—		—		(38,715)		(38,715)
Cash repayments / receipts	(153,723)		(22,995)		(1,540)		—		—		—		(2,889)		(181,147)
Transfers into Level III	4,413		—		—		—		—		—		(2,953,709)		(2,949,296)
Transfers out of Level III	(384,549)		—		—		—		—		—		864,153		479,604
Transfers within Level III	431,401		—		—		—		—		(431,401)		—		—
Consolidation of VIEs	—		—		—		—		—		4,427,479		(1,062,558)		3,364,921
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	13,234	$	7,793	$	1,102	$	—	$	2,740	$	(4,952,071)	$	647,555	$	(4,279,647)
Included in OCI	$	—	$	(3,563)	$	—	$	—	$	—	$	—	$	—	$	(3,563)

Amounts were transferred from Level II to Level III due to a decrease in the observable relevant market activity and amounts were transferred from Level III to Level II due to an increase in the observable relevant market activity.

The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands):

	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets not carried at fair value:
Loans	$	18,050,646	$	17,843,579	$	15,477,624	$	15,526,235
HTM debt securities	743,556		704,285		683,136		656,864
Financial liabilities not carried at fair value:
Secured financing agreements, CLOs and SASB	$	17,186,898	$	16,953,413	$	15,192,966	$	15,266,440
Unsecured senior notes	2,326,988		2,119,427		1,828,590		1,893,065

The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands):

	Carrying Value at September 30, 2022		Valuation Technique	Unobservable Input	Range (Weighted Average) as of (1)
					September 30, 2022	December 31, 2021
Loans under fair value option	$	2,188,471	Discounted cash flow, market pricing	Coupon (d)	2.8% - 9.3% (4.7%)	2.6% - 9.2% (4.2%)
				Remaining contractual term (d)	5.5 - 39.8 years (29.0 years)	6.3 - 39.9 years (27.4 years)
				FICO score (a)	585 - 900 (745)	582 - 829 (748)
				LTV (b)	5% - 93% (68%)	1% - 94% (66%)
				Purchase price (d)	80.0% - 108.6% (101.8%)	80.0% - 108.6% (102.3%)
RMBS	116,577		Discounted cash flow	Constant prepayment rate (a)	3.0% - 13.0% (5.9%)	4.8% - 19.2% (9.9%)
				Constant default rate (b)	1.3% - 4.4% (2.0%)	0.8% - 6.0% (2.1%)
				Loss severity (b)	0% - 98% (18%) (f)	0% - 86% (26%) (f)
				Delinquency rate (c)	7% - 29% (16%)	10.4% - 35% (19%)
				Servicer advances (a)	29% - 78% (54%)	19% - 83% (52%)
				Annual coupon deterioration (b)	0% - 3.2% (0.1%)	0% - 1.7% (0.1%)
				Putback amount per projected total collateral loss (e)	0% - 8% (0.6%)	0% - 8% (0.5%)
CMBS	20,652		Discounted cash flow	Yield (b)	0% - 186.7% (9.0%)	0% - 613.6% (9.3%)
				Duration (c)	0 - 8.0 years (3.0 years)	0 - 7.2 years (5.2 years)
Woodstar Fund investments	1,669,265		Discounted cash flow	Discount rate - properties (b)	N/A	5.8% - 6.3% (6.0%)
				Discount rate - debt (a)	5.3% - 6.6% (5.7%)	2.6% - 3.3% (2.9%)
				Terminal capitalization rate (b)	N/A	4.8% - 5.3% (4.9%)
				Direct capitalization rate (b)	4.2% (4.2%)	4.1% - 4.2% (4.2%) (Implied)
Domestic servicing rights	18,014		Discounted cash flow	Debt yield (a)	8.00% (8.00%)	7.30% (7.30%)
				Discount rate (b)	15% (15%)	15% (15%)
VIE assets	54,215,370		Discounted cash flow	Yield (b)	0% - 486.8% (14.8%)	0% - 615.3% (13.0%)
				Duration (c)	0 - 11.0 years (2.9 years)	0 - 11.0 years (3.2 years)
VIE liabilities	5,492,997		Discounted cash flow	Yield (b)	0% - 486.8% (9.2%)	0% - 615.3% (6.4%)
				Duration (c)	0 - 11.0 years (2.0 years)	0 - 11.0 years (2.3 years)

______________________________________________________________________________________________________________________

(1)Unobservable inputs were weighted by the relative carrying value of the instruments as of September 30, 2022 and December 31, 2021.

Information about Uncertainty of Fair Value Measurements

(a)Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.

(b)Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement.

(c)Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question.

(d)This unobservable input is not subject to variability as of the respective reporting dates.

(e)Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio.

(f)3% and 18% of the portfolio falls within a range of 45% - 80% as of September 30, 2022 and December 31, 2021, respectively.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Certain of our domestic subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT.

Our TRSs engage in various real estate-related operations, including special servicing of commercial real estate, originating and securitizing mortgage loans, and investing in entities which engage in real estate-related operations. As of September 30, 2022 and December 31, 2021, approximately $2.7 billion and $3.2 billion, respectively, of assets were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs.

The following table is a reconciliation of our U.S. federal income tax provision determined using our statutory federal tax rate to our reported income tax provision (benefit) for the three and nine months ended September 30, 2022 and 2021 (dollars in thousands):

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2022				2021				2022				2021
Federal statutory tax rate	$	36,768	21.0	%	$	31,078	21.0	%	$	176,580	21.0	%	$	83,113	21.0	%
REIT and other non-taxable income	(75,642)		(43.1)	%	(24,527)		(16.6)	%	(213,073)		(25.3)	%	(73,046)		(18.5)	%
State income taxes	(12,772)		(7.3)	%	2,153		1.5	%	(11,990)		(1.4)	%	3,308		0.8	%
Federal benefit of state tax deduction	2,682		1.5	%	(452)		(0.3)	%	2,518		0.3	%	(695)		(0.2)	%
Intra-entity transfers	—		—	%	(312)		(0.2)	%	(3,868)		(0.5)	%	(6,364)		(1.5)	%
Other	209		0.1	%	(439)		(0.3)	%	834		0.1	%	62		—	%
Effective tax rate	$	(48,755)	(27.8)	%	$	7,501	5.1	%	$	(48,999)	(5.8)	%	$	6,378	1.6	%

For the three and nine months ended September 30, 2022, we have utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate our interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that due to market dislocation and volatility, particularly with respect to the Company's residential assets that are housed in TRSs, the use of the discrete method is more appropriate at this time than the annual effective tax rate method due to the high degree of uncertainty in estimating annual pretax earnings.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

As of September 30, 2022, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $2.8 billion, of which we expect to fund $2.5 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Additionally, as of September 30, 2022, our Commercial and Residential Lending Segment had outstanding residential loan purchase commitments of $51.6 million.

As discussed in Note 12, in February 2022, our Commercial and Residential Lending Segment sold $745.0 million of agency-eligible residential loans at face amount which was subject to a post-closing contingent sales price adjustment based on the gain or loss to the purchaser/securitization underwriter, less underwriting costs, if those loans were sold into a future securitization. Given spread widening which occurred in the residential markets since the initial sale, in lieu of the buyer executing a securitization or sale of the loans, we entered into a forward settlement agreement to acquire the remaining balance of these loans at par in June 2022. The loan purchase was subject to a financing contingency, whereby the seller was to provide us financing under a mutually agreed repurchase agreement within 120 days. If such mutually agreed financing was not completed, we would not be obligated to complete the forward settlement, and the previous post-closing contingency referenced above would have been reinstated. In October 2022, the seller provided us financing under a mutually agreed repurchase agreement and the forward settlement was completed. As of September 30, 2022, we estimated the amount of the future securitization contingency to be $88.4 million based on the fair market value of the loans at this date. As a result, we recorded a contingency loss of $55.7 million and $88.4 million within other loss, net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2022, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $138.6 million under revolvers and letters of credit (“LCs”). As of September 30, 2022, $8.8 million of revolvers and LCs were outstanding. Additionally, as of September 30, 2022, our Infrastructure Lending Segment had outstanding loan purchase commitments of $18.2 million.

In connection with the Infrastructure Lending Segment acquisition, we assumed guarantees of certain borrowers’ performance under existing interest rate swaps. As of September 30, 2022, we had four outstanding guarantees on interest rate swaps maturing between October 2022 and June 2025. Refer to Note 13 for further discussion.

Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower.

Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.

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Segment Data

9 Months Ended

Sep. 30, 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 September 30, 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	$	284,197	$	43,018	$	—	$	1,139	$	—	$	328,354	$	—	$	328,354
Interest income from investment securities	28,560		1,204		—		27,585		—		57,349		(38,330)		19,019
Servicing fees	142		—		—		11,830		—		11,972		(3,545)		8,427
Rental income	1,944		—		22,886		8,102		—		32,932		—		32,932
Other revenues	138		129		54		1,491		—		1,812		(3)		1,809
Total revenues	314,981		44,351		22,940		50,147		—		432,419		(41,878)		390,541
Costs and expenses:
Management fees	227		—		—		—		27,129		27,356		—		27,356
Interest expense	145,107		22,500		9,266		6,601		39,166		222,640		(217)		222,423
General and administrative	16,458		3,588		933		20,046		4,384		45,409		86		45,495
Acquisition and investment pursuit costs	1,164		2		—		47		—		1,213		—		1,213
Costs of rental operations	2,633		—		5,793		3,780		—		12,206		—		12,206
Depreciation and amortization	1,629		101		8,161		2,720		—		12,611		—		12,611
Credit loss provision, net	8,401		6,942		—		—		—		15,343		—		15,343
Total costs and expenses	175,619		33,133		24,153		33,194		70,679		336,778		(131)		336,647
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		37,146		37,146
Change in fair value of servicing rights	—		—		—		357		—		357		158		515
Change in fair value of investment securities, net	16,398		—		—		(21,412)		—		(5,014)		4,931		(83)
Change in fair value of mortgage loans, net	(90,159)		—		—		2,685		—		(87,474)		—		(87,474)
Income from affordable housing fund investments	—		—		117,527		—		—		117,527		—		117,527
(Loss) earnings from unconsolidated entities	(4,044)		1,892		—		602		—		(1,550)		(494)		(2,044)
(Loss) gain on sale of investments and other assets, net	(288)		—		—		13,741		—		13,453		—		13,453
Gain (loss) on derivative financial instruments, net	220,296		331		10,262		6,849		(31,668)		206,070		—		206,070
Foreign currency (loss) gain, net	(107,087)		(253)		22		—		—		(107,318)		—		(107,318)
Loss on extinguishment of debt	—		—		—		(212)		—		(212)		—		(212)
Other loss, net	(56,391)		—		—		—		—		(56,391)		—		(56,391)
Total other income (loss)	(21,275)		1,970		127,811		2,610		(31,668)		79,448		41,741		121,189
Income (loss) before income taxes	118,087		13,188		126,598		19,563		(102,347)		175,089		(6)		175,083
Income tax benefit (provision)	53,099		2		—		(4,346)		—		48,755		—		48,755
Net income (loss)	171,186		13,190		126,598		15,217		(102,347)		223,844		(6)		223,838
Net income attributable to non-controlling interests	(3)		—		(28,486)		(793)		—		(29,282)		6		(29,276)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	171,183	$	13,190	$	98,112	$	14,424	$	(102,347)	$	194,562	$	—	$	194,562

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 consolidated balance sheet as of September 30, 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	$	76,654	$	59,925	$	32,464	$	43,172	$	124,945	$	337,160	$	2,550	$	339,710
Restricted cash	6,230		33,410		978		3,789		77,163		121,570		—		121,570
Loans held-for-investment, net	15,719,718		2,374,444		—		9,660		—		18,103,822		—		18,103,822
Loans held-for-sale	2,125,827		—		—		79,857		—		2,205,684		—		2,205,684
Investment securities	1,318,372		66,728		—		1,183,831		—		2,568,931		(1,678,803)		890,128
Properties, net	214,896		—		868,454		134,076		—		1,217,426		—		1,217,426
Investments of consolidated affordable housing fund	—		—		1,669,265		—		—		1,669,265		—		1,669,265
Investments in unconsolidated entities	34,319		29,347		—		35,494		—		99,160		(15,996)		83,164
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	14,302		—		30,829		69,532		—		114,663		(41,567)		73,096
Derivative assets	249,120		242		321		1,488		—		251,171		—		251,171
Accrued interest receivable	143,352		9,177		412		1,412		—		154,353		(205)		154,148
Other assets	254,353		4,332		77,207		27,033		55,907		418,832		(374)		418,458
VIE assets, at fair value	—		—		—		—		—		—		54,215,370		54,215,370
Total Assets	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	404,982	$	41,457	$	12,105	$	43,658	$	60,171	$	562,373	$	88	$	562,461
Related-party payable	—		—		—		—		26,146		26,146		—		26,146
Dividends payable	—		—		—		—		150,196		150,196		—		150,196
Derivative liabilities	8,943		223		—		—		73,600		82,766		—		82,766
Secured financing agreements, net	10,250,349		1,095,459		789,138		612,409		769,814		13,517,169		(21,267)		13,495,902
Collateralized loan obligations and single asset securitization, net	2,877,567		813,429		—		—		—		3,690,996		—		3,690,996
Unsecured senior notes, net	—		—		—		—		2,326,988		2,326,988		—		2,326,988
VIE liabilities, at fair value	—		—		—		—		—		—		52,501,845		52,501,845
Total Liabilities	13,541,841		1,950,568		801,243		656,067		3,406,915		20,356,634		52,480,666		72,837,300
Temporary Equity: Redeemable non-controlling interests	—		—		344,373		—		—		344,373		—		344,373
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,170		3,170		—		3,170
Additional paid-in capital	1,624,104		665,104		(381,226)		(575,971)		4,447,676		5,779,687		—		5,779,687
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	4,968,304		81,342		1,706,906		1,484,360		(7,461,724)		779,188		—		779,188
Accumulated other comprehensive income	22,776		—		—		—		—		22,776		—		22,776
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,615,184		746,446		1,325,680		908,389		(3,148,900)		6,446,799		—		6,446,799
Non-controlling interests in consolidated subsidiaries	118		—		208,634		165,325		—		374,077		309		374,386
Total Permanent Equity	6,615,302		746,446		1,534,314		1,073,714		(3,148,900)		6,820,876		309		6,821,185
Total Liabilities and Equity	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858

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)
Retained earnings (accumulated deficit)	4,573,374		42,577		1,161,334		1,413,142		(6,697,321)		493,106		—		493,106
Accumulated other comprehensive income	40,953		—		—		—		—		40,953		—		40,953
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

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Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn November 3, 2022, we priced a term loan facility totaling $600.0 million that carries a five-year term and an annual interest rate of SOFR + 3.25%, subject to a 0.50% SOFR floor, and an issue discount of 3.0%. The transaction is expected to close on November 18, 2022.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Balance Sheet Presentation of Securitization Variable Interest Entities

Balance Sheet Presentation of Securitization Variable Interest Entities

We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.

Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs.

The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation.

Basis of Accounting and Principles of Consolidation

Basis of Accounting and Principles of Consolidation

The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (our “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the operating results for the full year.

Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, (iii) became significant since December 31, 2021 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”).

Variable Interest Entities

Variable Interest Entities

In addition to the securitization VIEs, we have financed pools of our loans through collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered VIEs. We also hold interests in certain other entities which are considered VIEs as the limited partners of those entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership.

We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We

consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE.

To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE.

To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us.

Our purchased investment securities include unrated and non-investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation.

For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation.

We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change.

We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our condensed consolidated statements of operations. The residual difference shown on our condensed consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs.

We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our condensed consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.”

Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to non-performance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing

REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP.

In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust.

REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 1% of our consolidated securitization VIE assets, with the remaining 99% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually.

Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities.

For these reasons, the assets of our securitization VIEs are presented in the aggregate.

Fair Value Option

Fair Value Option

The guidance in ASC 825, Financial Instruments, provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method.

We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for residential loans held-for-investment were made in order to maintain consistency across all our residential loans. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments.

Fair Value Measurements

Fair Value Measurements

We measure our mortgage-backed securities, investments of consolidated affordable housing fund, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements.

Valuation Process

We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

Pricing Verification—We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market.

Unobservable Inputs—Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs.

Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date.

Fair Value on a Recurring Basis

We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows:

Loans held-for-sale, commercial

We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available.

Loans held-for-sale and loans held-for-investment, residential

We measure the fair value of our residential loans held-for-sale and held-for-investment based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III.

RMBS

RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III.

CMBS

CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable.

Equity security

The equity security is publicly registered and traded in the U.S. and its market price is listed on the London Stock Exchange. The security has been classified within Level I.

Woodstar Fund Investments

The fair value of investments held by the Woodstar Fund is determined based on observable and unobservable market inputs. The initial fair value of the Woodstar Fund's investments at its November 5, 2021 establishment date was determined by reference to the purchase price paid by third party investors, which was consistent with both a recent external appraisal as well as our extensive marketing efforts to sell interests in the Woodstar Fund, plus working capital.

For the properties, the third party appraisal applied the income capitalization approach with corroborative support from the sales comparison approach. The cost approach was not employed, as it is typically not emphasized by potential investors in the multifamily affordable housing sector. The income capitalization approach estimates an income stream for a property over a 10-year period and discounts this income plus a reversion (presumed sale) into a present value at a risk adjusted discount rate. Terminal capitalization rates and discount rates utilized in this approach are derived from market transactions as well as other financial and industry data.

For secured financing, the third party appraisal discounted the contractual cash flows at the interest rate at which such arrangements would bear if executed in the current market. The fair value of investment level working capital is assumed to approximate carrying value due to its primarily short-term monetary nature. The fair value of interest rate derivatives is determined using the methodology described in the Derivatives discussion below.

Internal valuations at interim quarter ends are prepared by management. The valuation of properties is based on a direct income capitalization approach, whereby a direct capitalization market rate is applied to annualized in-place net operating income at the portfolio level. The direct capitalization rate is initially calibrated to the implied rate from the latest appraisal and

adjusted for subsequent changes in current market capitalization rates for sales of comparable multifamily properties. The valuations of secured financing agreements, working capital and interest rate derivatives are consistent with the methodologies described in the paragraph above.

Given the significance of the unobservable inputs used in the respective valuations, the Woodstar Fund’s investments have been classified within Level III of the fair value hierarchy.

Domestic servicing rights

The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy.

Derivatives

The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

The valuation of over the counter derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2022 and December 31, 2021, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy.

Liabilities of consolidated VIEs

Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels.

For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable.

Assets of consolidated VIEs

The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy.

Fair Value Only Disclosed

We determine the fair value of our financial instruments and assets where fair value is disclosed as follows:

Loans held-for-investment

We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy.

HTM debt securities

We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies and infrastructure bonds using the same methodology described for our loans held-for-investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis.

Secured financing agreements, CLOs and SASB

The fair value of the secured financing agreements, CLOs and SASB are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy.

Unsecured senior notes

The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II of the fair value hierarchy.

Loans Held-for-Investment

Loans Held-for-Investment

Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless the loans are credit deteriorated or we have elected to apply the fair value option at purchase.

Loans Held-For-Sale

Loans Held-For-Sale

Our loans that we intend to sell or liquidate in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase.

Investment Securities

Investment Securities

We designate our debt investment securities as held-to-maturity (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the condensed consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below.

Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings.

Credit Losses

Credit Losses

Loans and Debt Securities Measured at Amortized Cost

ASC 326, Financial Instruments – Credit Losses, became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and our HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our condensed consolidated balance sheets), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible.

As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 4 for further discussion of our methodologies.

We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral.

Available-for-Sale Debt Securities

Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis.

Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment.

Revenue Recognition

Revenue Recognition

Interest Income

Interest income on performing loans and financial instruments is accrued based on the outstanding principal amount and contractual terms of the instrument. For loans where we do not elect the fair value option, origination fees and direct loan origination costs are also recognized in interest income over the loan term as a yield adjustment using the effective interest method. When we elect the fair value option, origination fees and direct loan costs are recorded directly in income and are not deferred. Discounts or premiums associated with the purchase of non-performing loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections.

We cease accruing interest on non-performing loans at the earlier of (i) the loan becoming significantly past due or (ii) management concluding that a full recovery of all interest and principal is doubtful. Interest income on non-accrual loans in which management expects a full recovery of the loan’s outstanding principal balance is only recognized when received in cash. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and management believes all future principal and interest will be received according to the contractual loan terms.

For loans acquired with deteriorated credit quality, interest income is only recognized to the extent that our estimate of undiscounted expected principal and interest exceeds our investment in the loan. Such excess, if any, is recognized as interest income on a level-yield basis over the life of the loan.

Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss).

Servicing Fees

We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under-performing and non-performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met.

Rental Income

Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor.

Foreign Currency Translation

Foreign Currency Translation

Our assets and liabilities denominated in foreign currencies are translated into U.S. dollars using foreign currency exchange rates at the end of the reporting period. Income and expenses are translated at the average exchange rates for each reporting period. The effects of translating the assets, liabilities and income of our foreign investments held by entities with a U.S. dollar functional currency are included in foreign currency gain (loss) in the consolidated statements of operations or other comprehensive income (“OCI”) for debt securities available-for-sale for which the fair value option has not been elected. The effects of translating the assets, liabilities and income of our foreign investments held by entities with functional currencies other than the U.S. dollar are included in OCI. Realized foreign currency gains and losses and changes in the value of foreign currency denominated monetary assets and liabilities are included in the determination of net income and are reported as foreign currency gain (loss) in our condensed consolidated statements of operations.

Earnings Per Share

Earnings Per Share

We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our senior convertible notes (the “Convertible Notes”) (see Notes 11 and 18) and (iv) non-controlling interests that are redeemable with our common stock (see Note 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.

Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 17). Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the three and nine months ended September 30, 2022 and 2021, the two-class method resulted in the most dilutive EPS calculation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our investments, which has a significant impact on the amount of income that we record and/or disclose. The fair value of assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants

would discount the expected cash flows. Amounts ultimately realized from our investments may vary significantly from the fair values presented.We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2022.

Recent Accounting Developments

Recent Accounting Developments

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and on January 11, 2021, issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope, both of which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. These ASUs are effective through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve.

On March 31, 2022, the FASB issued ASU 2022-2, Troubled Debt Restructurings and Vintage Disclosures (Topic 326). ASU 2022-2 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU is effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. Early adoption is permitted. We do not expect the application of this ASU to materially impact our consolidated financial statements as our operating practice is generally not to enter into TDRs for troubled loans.

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Loans (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Investments in Mortgages and Loans by Subordination Class

The following tables summarize our investments in mortgages and loans as of September 30, 2022 and December 31, 2021 (dollars in thousands):

September 30, 2022	Carrying Value		Face Amount		Weighted Average Coupon (1)		Weighted Average Life (“WAL”) (years)(2)
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	15,174,120	$	15,263,633	6.8	%	1.9
Subordinated mortgages (4)	69,793		70,966		12.5	%	2.0
Mezzanine loans (3)	438,457		435,818		11.6	%	1.0
Other	58,694		59,850		8.2	%	1.6
Total commercial loans	15,741,064		15,830,267
Infrastructure first priority loans	2,402,193		2,433,586		7.7	%	4.0
Residential loans, fair value option (5)	53,176		54,569		5.8	%	N/A	(6)
Total loans held-for-investment	18,196,433		18,318,422
Loans held-for-sale:
Residential, fair value option (5)	2,125,827		2,340,929		4.7	%	N/A	(6)
Commercial, fair value option	79,857		82,223		4.2	%	7.3
Total loans held-for-sale	2,205,684		2,423,152
Total gross loans	20,402,117		$	20,741,574
Credit loss allowances:
Commercial loans held-for-investment	(64,862)
Infrastructure loans held-for-investment	(27,749)
Total allowances	(92,611)
Total net loans	$	20,309,506
December 31, 2021
Loans held-for-investment:
Commercial loans:
First mortgages (3)	$	12,991,099	$	13,067,524	4.5	%	1.9
Subordinated mortgages (4)	70,771		72,371		10.0	%	2.8
Mezzanine loans (3)	417,504		415,155		9.4	%	1.4
Other	17,424		19,029		8.2	%	2.1
Total commercial loans	13,496,798		13,574,079
Infrastructure first priority loans	2,048,096		2,071,912		4.4	%	4.3
Residential loans, fair value option	59,225		60,133		6.0	%	N/A	(6)
Total loans held-for-investment	15,604,119		15,706,124
Loans held-for-sale:
Residential, fair value option	2,590,005		2,525,910		4.2	%	N/A	(6)
Commercial, fair value option	286,795		289,761		4.0	%	9.0
Total loans held-for-sale	2,876,800		2,815,671
Total gross loans	18,480,919		$	18,521,795
Credit loss allowances:
Commercial loans held-for-investment	(46,600)
Infrastructure loans held-for-investment	(20,670)
Total allowances	(67,270)
Total net loans	$	18,413,649

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(1)Calculated using applicable index rates as of September 30, 2022 and December 31, 2021 for variable rate loans and excludes loans for which interest income is not recognized.

(2)Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition.

(3)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.2 billion and $1.4 billion being classified as first mortgages as of September 30, 2022 and December 31, 2021, respectively.

(4)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.

(5)During the nine months ended September 30, 2022, $0.3 million of residential loans held-for-investment were reclassified into loans held-for-sale.

(6)Residential loans have a weighted average remaining contractual life of 29.1 years and 29.4 years as of September 30, 2022 and December 31, 2021, respectively.

Schedule of Variable Rate Loans Held-for-Investment

As of September 30, 2022, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands):

September 30, 2022	Carrying Value		Weighted-average Spread Above Index
Commercial loans	$	15,006,961	4.0	%
Infrastructure loans	2,402,193		3.9	%
Total variable rate loans held-for-investment	$	17,409,154	3.9	%

Schedule of Risk Ratings by Class of Loan

The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of September 30, 2022 (dollars in thousands):

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Total		Total Amortized Cost Basis		Credit Loss Allowance
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Commercial loans:
Credit quality indicator:
LTV < 60%	$	1,697,121	$	2,540,666	$	459,943	$	892,348	$	373,102	$	680,512	$	—	$	6,643,692	$	5,272
LTV 60% - 70%	1,694,971		3,805,828		238,557		1,096,130		457,696		68,455		—		7,361,637		19,204
LTV > 70%	100,444		333,874		228,133		429,098		313,469		267,098		—		1,672,116		35,461
Credit deteriorated	—		—		—		—		—		4,925		—		4,925		4,925
Defeased and other	42,138		—		—		—		—		16,556		—		58,694		—
Total commercial	$	3,534,674	$	6,680,368	$	926,633	$	2,417,576	$	1,144,267	$	1,037,546	$	—	$	15,741,064	$	64,862
Infrastructure loans:
Credit quality indicator:
Power	$	93,258	$	222,453	$	81,611	$	288,355	$	387,126	$	409,170	$	5,488	$	1,487,461	$	5,695
Oil and gas	87,946		359,963		10,284		286,506		84,587		50,189		1,969		881,444		5,553
Credit deteriorated	—		—		—		—		—		33,288		—		33,288		16,501
Total infrastructure	$	181,204	$	582,416	$	91,895	$	574,861	$	471,713	$	492,647	$	7,457	$	2,402,193	$	27,749
Residential loans held-for-investment, fair value option															53,176		—
Loans held-for-sale															2,205,684		—
Total gross loans															$	20,402,117	$	92,611

Schedule of Activity in Allowance for Loan Losses

The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands):

	Funded Commitments Credit Loss Allowance
	Loans Held-for-Investment				Total Funded Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure
Credit loss allowance at December 31, 2021	$	46,600	$	20,670	$	67,270
Credit loss provision, net	18,262		7,079		25,341
Credit loss allowance at September 30, 2022	$	64,862	$	27,749	$	92,611

	Unfunded Commitments Credit Loss Allowance (1)
	Loans Held-for-Investment
Nine Months Ended September 30, 2022	Commercial		Infrastructure		CMBS (2)		Total
Credit loss allowance at December 31, 2021	$	6,692	$	145	$	—	$	6,837
Credit loss (reversal) provision, net	(431)		(145)		40		(536)
Credit loss allowance at September 30, 2022	$	6,261	$	—	$	40	$	6,301
Memo: Unfunded commitments as of September 30, 2022 (3)	$	2,463,418	$	—	$	32,494	$	2,495,912

______________________________________________________________________________________________________________________

(1)Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.

(2)See Note 5 for further details.

(3)Represents amounts expected to be funded (see Note 22).

Schedule of Activity in Loan Portfolio

The activity in our loan portfolio was as follows (amounts in thousands):

	Held-for-Investment Loans
Nine Months Ended September 30, 2022	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2021	$	13,450,198	$	2,027,426	$	59,225	$	2,876,800	$	18,413,649
Acquisitions/originations/additional funding	4,410,306		597,092		—		3,793,467		8,800,865
Capitalized interest (1)	85,454		373		1,445		402		87,674
Basis of loans sold (2)	(6,330)		—		—		(4,056,511)		(4,062,841)
Loan maturities/principal repayments	(1,558,907)		(246,127)		(6,663)		(146,184)		(1,957,881)
Discount accretion/premium amortization	40,179		7,289		—		—		47,468
Changes in fair value	—		—		(485)		(326,252)		(326,737)
Foreign currency translation gain/(loss), net	(612,669)		(4,530)		—		—		(617,199)
Credit loss provision, net	(18,262)		(7,079)		—		—		(25,341)
Transfer to/from other asset classifications or between segments	(113,767)		—		(346)		63,962		(50,151)		(3)
Balance at September 30, 2022	$	15,676,202	$	2,374,444	$	53,176	$	2,205,684	$	20,309,506

	Held-for-Investment Loans
Nine Months Ended September 30, 2021	Commercial		Infrastructure		Residential		Held-for-Sale Loans		Total Loans
Balance at December 31, 2020	$	9,583,949	$	1,412,440	$	90,684	$	1,052,835	$	12,139,908
Acquisitions/originations/additional funding	5,242,378		393,329		—		3,151,361		8,787,068
Capitalized interest (1)	89,830		—		2,068		2,062		93,960
Basis of loans sold (2)	(243,378)		—		—		(2,358,790)		(2,602,168)
Loan maturities/principal repayments	(2,897,747)		(211,695)		(26,341)		(250,662)		(3,386,445)
Discount accretion/premium amortization	40,367		3,652		—		504		44,523
Changes in fair value	—		—		1,837		66,279		68,116
Foreign currency translation loss, net	(75,094)		(840)		—		—		(75,934)
Credit loss reversal (provision), net	13,238		(1,124)		—		—		12,114
Loan foreclosure and conversion to equity interest	(36,308)		—		—		—		(36,308)		(4)
Transfer to/from other asset classifications or between segments	(204,583)		93,085		23,251		519,930		431,683		(5)
Balance at September 30, 2021	$	11,512,652	$	1,688,847	$	91,499	$	2,183,519	$	15,476,517

______________________________________________________________________________________________________________________

(1)Represents accrued interest income on loans whose terms do not require current payment of interest.

(2)See Note 12 for additional disclosure on these transactions.

(3)Represents the net carrying value of first mortgage and contiguous mezzanine loans related to an office building in Texas that is eliminated as a result of consolidating the net assets of the mezzanine borrower entity upon obtaining control over its pledged equity interests in May 2022 (see discussion above).

(4)Includes (i) a $29.0 million credit deteriorated loan related to a residential conversion project which was foreclosed in April 2021 and (ii) $7.3 million of a commercial loan that was converted to equity interests in March 2021 (see Note 8) pursuant to a consensual transfer under pre-existing equity pledges of additional collateral.

(5)Net transfers represent residential loans transferred from VIE assets upon redemption of two consolidated RMBS trusts.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities

Investment securities were comprised of the following as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Carrying Value as of
	September 30, 2022		December 31, 2021
RMBS, available-for-sale	$	116,577	$	143,980
RMBS, fair value option (1)	418,480		250,424
CMBS, fair value option (1), (2)	1,280,975		1,263,606
HTM debt securities, amortized cost net of credit loss allowance of $3,928 and $8,610	743,556		683,136
Equity security, fair value	9,343		11,624
Subtotal—Investment securities	2,568,931		2,352,770
VIE eliminations (1)	(1,678,803)		(1,491,786)
Total investment securities	$	890,128	$	860,984

______________________________________________________________________________________________________________________

(1)Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810.

(2)Includes $200.0 million and $182.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of September 30, 2022 and December 31, 2021, respectively.

Schedule of Purchases, Sales and Principal Collections for all Investment Securities

Purchases, sales, principal collections and redemptions for all investment securities were as follows (amounts in thousands):

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Three Months Ended September 30, 2022
Purchases/fundings	$	—	$	—	$	—	$	—	$	—	$	—
Sales	—		—		—		—		—		—
Principal collections	3,412		16,914		5,118		609		(21,802)		4,251
Three Months Ended September 30, 2021
Purchases	$	—	$	33,009	$	8,383	$	—	$	(41,392)	$	—
Sales	—		—		27,111				(27,111)		—
Principal collections	7,881		14,204		706		752		(14,555)		8,988
Redemptions	—		26,753		—		—		(26,753)		—

	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option		HTM Securities		Securitization VIEs (1)		Total
Nine Months Ended September 30, 2022
Purchases/fundings	$	—	$	226,152	$	63,681	$	86,058	$	(289,833)	$	86,058
Sales	—		—		—		—		—		—
Principal collections	16,200		58,843		6,394		2,549		(64,555)		19,431
Nine Months Ended September 30, 2021
Purchases	$	—	$	112,693	$	62,465	$	—	$	(175,158)	$	—
Sales	—		30,684		38,715				(69,399)		—
Principal collections	22,995		42,235		4,429		53,321		(45,125)		77,855
Redemptions	—		38,729		—		—		(38,729)		—

______________________________________________________________________________________________________________________

(1)Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows.

Schedule of Investments in Available-for-Sale RMBS

The tables below summarize various attributes of our investments in available-for-sale RMBS as of September 30, 2022 and December 31, 2021 (amounts in thousands):

							Unrealized Gains or (Losses) Recognized in AOCI
	Amortized Cost		Credit Loss Allowance		Net Basis		Gross Unrealized Gains		Gross Unrealized Losses		Net Fair Value Adjustment		Fair Value
September 30, 2022
RMBS	$	93,801	$	—	$	93,801	$	23,314	$	(538)	$	22,776	$	116,577
December 31, 2021
RMBS	$	103,027	$	—	$	103,027	$	41,052	$	(99)	$	40,953	$	143,980

	Weighted Average Coupon (1)		WAL  (Years) (2)
September 30, 2022
RMBS	3.7	%	7.2

______________________________________________________________________________________________________________________

(1)Calculated using the September 30, 2022 one-month LIBOR rate of 3.143% for floating rate securities.

(2)Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments.

Schedule of Gross Unrealized Losses and Estimated Fair Value of Securities With No Recorded Allowance for Credit Loss

The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of September 30, 2022 and December 31, 2021, and for which an allowance for credit losses has not been recorded (amounts in thousands):

	Estimated Fair Value				Unrealized Losses
	Securities with a loss less than 12 months		Securities with a loss greater than 12 months		Securities with a loss less than 12 months		Securities with a loss greater than 12 months
As of September 30, 2022
RMBS	$	8,544	$	—	$	(538)	$	—
As of December 31, 2021
RMBS	$	2,478	$	—	$	(99)	$	—

Schedule of Investments in HTM Securities

The table below summarizes our investments in HTM debt securities as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Amortized Cost Basis		Credit Loss Allowance		Net Carrying Amount		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
September 30, 2022
CMBS	$	556,989	$	(109)	$	556,880	$	54	$	(30,800)	$	526,134
Preferred interests	120,696		(748)		119,948		125		(7,607)		112,466
Infrastructure bonds	69,799		(3,071)		66,728		588		(1,631)		65,685
Total	$	747,484	$	(3,928)	$	743,556	$	767	$	(40,038)	$	704,285
December 31, 2021
CMBS	$	538,506	$	(3,140)	$	535,366	$	195	$	(25,029)	$	510,532
Preferred interests	118,409		(2,562)		115,847		450		(2,449)		113,848
Infrastructure bonds	34,831		(2,908)		31,923		561		—		32,484
Total	$	691,746	$	(8,610)	$	683,136	$	1,206	$	(27,478)	$	656,864

Schedule of Activity in Credit Loss Allowance for HTM Debt Securities

The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total HTM Credit Loss Allowance
Nine Months Ended September 30, 2022
Credit loss allowance at December 31, 2021	$	3,140	$	2,562	$	2,908	$	8,610
Credit loss (reversal) provision, net	(3,031)		(1,814)		163		(4,682)
Credit loss allowance at September 30, 2022	$	109	$	748	$	3,071	$	3,928

Schedule of Maturities of Our HTM Debt Securities

The table below summarizes the maturities of our HTM debt securities by type as of September 30, 2022 (amounts in thousands):

	CMBS		Preferred Interests		Infrastructure Bonds		Total
Less than one year	$	314,060	$	90,822	$	—	$	404,882
One to three years	25,323		29,126		—		54,449
Three to five years	217,497		—		37,881		255,378
Thereafter	—		—		28,847		28,847
Total	$	556,880	$	119,948	$	66,728	$	743,556

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Properties (Tables)

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Schedule of Properties

The table below summarizes our properties held as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Depreciable Life	September 30, 2022		December 31, 2021
Property Segment
Land and land improvements	0 - 15 years	$	175,856	$	175,810
Buildings and building improvements	0 - 45 years	853,238		851,274
Furniture & fixtures	3 - 5 years	375		260
Investing and Servicing Segment
Land and land improvements	0 - 15 years	35,313		41,771
Buildings and building improvements	3 - 40 years	134,036		149,399
Furniture & fixtures	2 - 5 years	3,253		3,143
Commercial and Residential Lending Segment
Land and land improvements	N/A	33,680		9,691
Buildings and building improvements	0 - 24 years	77,938		12,408
Construction in progress	N/A	105,039		104,088
Properties, cost		1,418,728		1,347,844
Less: accumulated depreciation		(201,302)		(181,457)
Properties, net		$	1,217,426	$	1,166,387

______________________________________________________________________________________________________________________

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Investments of Consolidated Affordable Housing Fund (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investment Income

Income from the Woodstar Fund’s investments reflects the following components for the three and nine months ended September 30, 2022 (in thousands):

	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
Distributions from affordable housing fund investments	$	7,112	$	29,777
Unrealized change in fair value of investments (1)	110,415		628,956
Income from affordable housing fund investments	$	117,527	$	658,733

______________________________________________________________________________________________________________________

(1)The fair value of the Woodstar Fund’s investments are dependent upon the real estate and capital markets, which are cyclical in nature. Property and investment values are affected by, among other things, capitalization rates, the availability of capital, occupancy, rental rates and interest and inflation rates.

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Investments in Unconsolidated Entities​ (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investments in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Participation / Ownership % (1)	Carrying value as of
		September 30, 2022		December 31, 2021
Equity method investments:
Equity interest in a natural gas power plant	10%	$	28,886	$	26,255
Investor entity which owns equity in an online real estate company	50%	5,365		5,206
Equity interest in and advances to a residential mortgage originator (2)	N/A	10,999		20,327
Various	25% - 50%	14,923		12,528
		60,173		64,316
Other equity investments:
Equity interest in a servicing and advisory business	2%	12,955		12,955
Investment funds which own equity in a loan servicer and other real estate assets (3)	4% - 6%	940		4,194
Investor entities which own equity interests in two entertainment and retail centers (4)	15%	7,320		7,320
Various	1% - 3%	1,776		1,312
		22,991		25,781
		$	83,164	$	90,097

______________________________________________________________________________________________________________________

(1)None of these investments are publicly traded and therefore quoted market prices are not available.

(2)Included a $4.5 million subordinated loan as of December 31, 2021, which was converted to an equity interest on July 1, 2022.

(3)During the nine months ended September 30, 2022, we received distributions of $7.3 million, of which $3.3 million were considered returns of capital which reduced the carrying value of two of our investments.

(4)In March 2021, we obtained equity interests in two investor entities that own interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. The interests were obtained in order to facilitate repayment of a portion of that loan for which these interests represented underlying collateral. The interests are entitled to preferred treatment in the distribution waterfall and are intended to repay us the $7.3 million principal amount of the loan plus interest. See further discussion in Note 4.

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Goodwill and Intangibles (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangibles Assets

The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	As of September 30, 2022						As of December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Domestic servicing rights, at fair value	$	18,014	$	—	$	18,014	$	16,780	$	—	$	16,780
In-place lease intangible assets	100,450		(62,442)		38,008		94,712		(62,721)		31,991
Favorable lease intangible assets	26,649		(9,575)		17,074		23,746		(8,953)		14,793
Total net intangible assets	$	145,113	$	(72,017)	$	73,096	$	135,238	$	(71,674)	$	63,564

Schedule of Activity Within Intangible Assets

The following table summarizes the activity within intangible assets for the nine months ended September 30, 2022 (amounts in thousands):

	Domestic Servicing Rights		In-place Lease Intangible Assets		Favorable Lease Intangible Assets		Total
Balance as of January 1, 2022	$	16,780	$	31,991	$	14,793	$	63,564
Acquisition (1)	—		11,910		3,520		15,430
Amortization	—		(5,327)		(1,197)		(6,524)
Impairment (2)	—		(43)		(4)		(47)
Sales	—		(523)		(38)		(561)
Changes in fair value due to changes in inputs and assumptions	1,234		—		—		1,234
Balance as of September 30, 2022	$	18,014	$	38,008	$	17,074	$	73,096

_________________________________________________

(1)    Represents lease intangibles related to an office building in Texas that are consolidated upon exercising control over a mezzanine loan borrower’s pledged equity interests in May 2022 (see Note 4).

(2)     Impairment of intangible lease assets is recognized within other expense in our condensed consolidated statement of operations.

Schedule of Future Amortization Expense

The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands):

2022 (remainder of)	$	2,390
2023	8,629
2024	6,932
2025	5,827
2026	4,301
Thereafter	27,003
Total	$	55,082

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Secured Borrowings (Tables)

9 Months Ended

Sep. 30, 2022

Secured Debt [Abstract]

Schedule of Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of September 30, 2022 and December 31, 2021 (dollars in thousands):

													Outstanding Balance at
	Current Maturity		Extended Maturity (a)		Weighted Average Pricing		Pledged Asset Carrying Value			Maximum Facility Size			September 30, 2022			December 31, 2021
Repurchase Agreements:
Commercial Loans	Jun 2023 to Jun 2027	(b)	Sep 2025 to Dec 2030	(b)	Index + 2.09%	(c)	$	10,854,556		$	12,291,964	(d)	$	7,971,502		$	6,556,438
Residential Loans	May 2023 to Dec 2023		May 2023 to Dec 2024		Index + 2.10%		1,633,554			2,502,614			1,407,163			1,744,225
Infrastructure Loans	Sep 2024		Sep 2026		SOFR + 2.07%		379,346			650,000			316,737			379,095
Conduit Loans	Feb 2023 to Jun 2025		Feb 2024 to Jun 2026		SOFR + 2.28%		79,857			350,000			60,941			174,130
CMBS/RMBS	Jun 2023 to Apr 2032	(e)	Jun 2023 to Oct 2032	(e)	(f)		1,485,618			1,113,025			787,020		(g)	688,146
Total Repurchase Agreements							14,432,931			16,907,603			10,543,363			9,542,034
Other Secured Financing:
Borrowing Base Facility	Nov 2024		Oct 2026		SOFR + 2.11%		23,226			750,000		(h)	2,000			213,478
Commercial Financing Facilities	Dec 2023 to Aug 2025		Aug 2027 to Dec 2030		Index + 1.77%		348,619			445,295		(i)	271,918			167,476
Residential Financing Facility	Mar 2024		Mar 2027		SOFR + 2.45%		545,450			500,000			179,418			102,018
Infrastructure Financing Facilities	Jun 2025 to Oct 2025		Jun 2027 to Jul 2032		Index + 2.16%		1,002,010			1,550,000			790,995			855,646
Property Mortgages - Fixed rate	Nov 2024 to Sep 2029	(j)	N/A		4.48%		381,440			275,800			275,800			272,522
Property Mortgages - Variable rate	Nov 2022 to Mar 2025		N/A		(k)		767,293			733,750			730,315			712,493
Term Loan and Revolver	(l)		N/A		(l)		N/A		(l)	932,763			782,763			788,753
Total Other Secured Financing							3,068,038			5,187,608			3,033,209			3,112,386
							$	17,500,969		$	22,095,211		13,576,572			12,654,420
Unamortized net discount													(13,281)			(13,350)
Unamortized deferred financing costs													(67,389)			(64,220)
													$	13,495,902		$	12,576,850

______________________________________________________________________________________________________________________

(a)Subject to certain conditions as defined in the respective facility agreement.

(b)For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions.

(c)Certain facilities with an outstanding balance of $2.7 billion as of September 30, 2022 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to USD LIBOR or SOFR.

(d)Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.3 billion, subject to certain conditions. The $12.3 billion amount includes such upsizes.

(e)Certain facilities with an outstanding balance of $368.9 million as of September 30, 2022 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender’s consent. These facilities carry no maximum facility size.

(f)A facility with an outstanding balance of $263.9 million as of September 30, 2022 has a weighted average fixed annual interest rate of 3.27%. All other facilities are variable rate with a weighted average rate of Index + 1.96%.

(g)Includes: (i) $263.9 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $43.2 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15).

(h)The maximum facility size as of September 30, 2022 of $650.0 million is scheduled to decline to $450.0 million as of December 31, 2022 and may be increased to $750.0 million, subject to certain conditions.

(i)Certain facilities with an aggregate initial maximum facility size of $345.3 million may be increased to $445.3 million, subject to certain conditions. The $445.3 million amount includes such upsizes.

(j)The weighted average maturity is 4.8 years as of September 30, 2022.

(k)Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of Index + 2.26%.

(l)Consists of: (i) a $782.8 million term loan facility that matures in July 2026, of which $388.0 million has an annual interest rate of LIBOR + 2.50% and $394.8 million has an annual interest rate of LIBOR + 3.25%, subject to a 0.75% LIBOR floor, and (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.50%. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.0 billion as of September 30, 2022.

Schedule of Collateralized Loan Obligations

The following table is a summary of our CLOs and our SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

September 30, 2022	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2022-FL3
Collateral assets	46	$	992,000	$	1,010,268	Index + 3.55%	(a)	February 2026	(b)
Financing	1	842,500		843,028		SOFR + 1.91%	(c)	November 2038	(d)
STWD 2021-HTS
Collateral assets	1	230,000		230,923		LIBOR + 3.84%	(a)	April 2026	(b)
Financing	1	210,091		208,735		LIBOR + 2.69%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	26	1,276,650		1,282,627		Index + 4.11%	(a)	May 2025	(b)
Financing	1	1,077,375		1,071,725		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	16	919,107		921,634		Index + 3.76%	(a)	December 2024	(b)
Financing	1	755,482		754,079		SOFR + 1.65%	(c)	July 2038	(d)
STWD 2021-SIF2
Collateral assets	31	492,805		508,186		Index + 3.72%	(a)	March 2027	(b)
Financing	1	410,000		407,034		SOFR + 2.11%	(c)	January 2033	(d)
STWD 2021-SIF1
Collateral assets	31	493,066		508,667		Index + 3.73%	(a)	September 2026	(b)
Financing	1	410,000		406,395		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	4,403,628	$	4,462,305
Financing		$	3,705,448	$	3,690,996

December 31, 2021	Count	Face Amount		Carrying Value		Weighted Average Spread		Maturity
STWD 2021-HTS
Collateral assets	1	$	230,000	$	230,587	LIBOR + 4.12%	(a)	April 2026	(b)
Financing	1	210,091		208,057		LIBOR + 2.48%	(c)	April 2034	(d)
STWD 2021-FL2
Collateral assets	25	1,272,133		1,279,678		LIBOR + 4.22%	(a)	February 2025	(b)
Financing	1	1,077,375		1,069,691		LIBOR + 1.78%	(c)	April 2038	(d)
STWD 2019-FL1
Collateral assets	24	1,092,887		1,103,513		LIBOR + 4.19%	(a)	November 2024	(b)
Financing	1	936,375		933,049		SOFR + 1.63%	(c)	July 2038	(d)
STWD 2021-SIF1
Collateral assets	31	491,299		506,666		LIBOR + 3.91%	(a)	March 2026	(b)
Financing	1	410,000		405,319		LIBOR + 2.15%	(c)	April 2032	(d)
Total
Collateral assets		$	3,086,319	$	3,120,444
Financing		$	2,633,841	$	2,616,116

______________________________________________________________________________________________________________________________

(a)Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. Of the loans financed by the STWD 2021-FL2 CLO as of September 30, 2022, 7% earned fixed-rate weighted average interest of 7.42%. Of the investments financed by the STWD 2021-SIF2 CLO as of September 30, 2022, 5% earned fixed-rate weighted average interest of 7.75%. Of the investments financed by the STWD 2021-SIF1 CLO as of September 30, 2022, 3% earned fixed-rate weighted average interest of 6.01%.

(b)Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets.

(c)Represents the weighted-average cost of financing incurred during the respective year-to-date period, inclusive of deferred issuance costs.

(d)Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date.

Schedule of Five-Year Principal Repayments for Secured Financings

The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands):

	Repurchase Agreements		Other Secured Financing		CLOs and SASB (a)		Total
2022 (remainder of)	$	267,383	$	7,646	$	106,346	$	381,375
2023	2,095,210		730,849		675,675		3,501,734
2024	1,041,311		124,602		432,055		1,597,968
2025	1,960,316		274,879		741,493		2,976,688
2026	2,832,539		995,455		1,588,716		5,416,710
Thereafter	2,346,604		899,778		161,163		3,407,545
Total	$	10,543,363	$	3,033,209	$	3,705,448	$	17,282,020

______________________________________________________________________________________________________________________

(a)For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature.

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Unsecured Senior Notes (Tables)

9 Months Ended

Sep. 30, 2022

Debt Instruments [Abstract]

Schedule of Unsecured Convertible Senior Notes Outstanding

The following table is a summary of our unsecured senior notes outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	Coupon Rate			Effective Rate (1)		Maturity Date	Remaining Period of Amortization	Carrying Value at
								September 30, 2022		December 31, 2021
2023 Senior Notes	5.50	%		5.71	%	11/1/2023	1.1 years	300,000		300,000
2023 Convertible Notes	4.38	%		4.57	%	4/1/2023	0.5 years	250,000		250,000
2024 Senior Notes	3.75	%		3.94	%	12/31/2024	2.3 years	400,000		400,000
2025 Senior Notes	4.75	%	(2)	5.04	%	3/15/2025	2.5 years	500,000		500,000
2026 Senior Notes	3.63	%		3.77	%	7/15/2026	3.8 years	400,000		400,000
2027 Senior Notes	4.38	%	(3)	4.49	%	1/15/2027	4.3 years	500,000		—
Total principal amount								2,350,000		1,850,000
Unamortized discount—Convertible Notes								(235)		(578)
Unamortized discount—Senior Notes								(9,954)		(10,067)
Unamortized deferred financing costs								(12,823)		(10,765)
Total carrying amount								$	2,326,988	$	1,828,590

______________________________________________________________________________________________________________________

(1)Effective rate includes the effects of underwriter purchase discount.

(2)The coupon on the 2025 Senior Notes is 4.75%.  At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%.

(3)The coupon on the 2027 Senior Notes is 4.375%.  At closing, we swapped the notes to a floating rate of SOFR + 2.95%.

Schedule of Conversion Attributes on Convertible Notes Outstanding

The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2022 (amounts in thousands, except rates):

	September 30, 2022
	Conversion	Conversion
	Rate (1)	Price (2)
2023 Convertible Notes	38.5959	$	25.91

______________________________________________________________________________________________________________________

(1)The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture).

(2)As of September 30, 2022, the market price of the Company’s common stock was $18.22.

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Loan Securitization/Sale Activities (Tables)

9 Months Ended

Sep. 30, 2022

Loan Securitization/Sale Activities

Schedule of Face Amount and Proceeds of Loans

The following summarizes the face amount and proceeds of commercial and residential loans securitized for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

	Commercial Loans				Residential Loans
	Face Amount		Proceeds		Face Amount		Proceeds
For the Three Months Ended September 30,
2022	$	33,000	$	30,957	$	—	$	—
2021	349,225		364,287		469,663		491,901
For the Nine Months Ended September 30,
2022	$	1,038,889	$	1,022,754	$	1,905,829	$	1,913,459
2021	738,866		775,374		1,417,641		1,465,576

Schedule of Loans Sold

The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands):

	Loan Transfers Accounted for as Sales
	Commercial Loans				Residential Loans
For the Three Months Ended September 30,	Face amount (1)		Proceeds (1)		Face Amount (2)		Proceeds (2)
2022	$	63,656	$	64,539	$	1,152	$	1,141
2021	35,700		35,356		—		—
For the Nine Months Ended September 30,
2022	$	70,636	$	71,008	$	1,057,013	$	1,056,683
2021	268,370		264,846		89,801		92,817

______________________________________________________________________________________________________________________

(1)During the three and nine months ended September 30, 2022, we sold $63.7 million of whole loan interests for proceeds of $64.5 million. During the nine months ended September 30, 2022, we also sold $7.0 million of senior interests in a first mortgage loan for proceeds of $6.5 million. During the three months ended September 30, 2021, we sold $35.7 million of senior interests in first mortgage loans for proceeds of $35.4 million. During the nine months

ended September 30, 2021, we sold $245.8 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $243.3 million and $21.5 million, respectively. (2)In February 2022, we sold $745.0 million of agency-eligible residential loans at face amount which was subject to a post-closing contingent sales price adjustment based on the gain or loss to the purchaser/securitization underwriter, less underwriting costs, if those loans were sold into a future securitization. Given spread widening which occurred in the residential markets since the initial sale, in lieu of the buyer executing a securitization or sale of the loans, we entered into a forward settlement agreement to acquire the remaining balance of these loans at par in June 2022. The loan purchase was subject to a financing contingency, whereby the seller was to provide us financing under a mutually agreed repurchase agreement within 120 days. If such mutually agreed financing was not completed, we would not be obligated to complete the forward settlement, and the previous post-closing contingency referenced above would have been reinstated. In October 2022, the seller provided us financing under a mutually agreed repurchase agreement and the forward settlement was completed. As of September 30, 2022, we estimated the amount of the future securitization contingency to be $88.4 million based on the fair market value of the loans at this date. As a result, we recorded a contingency loss of $55.7 million and $88.4 million within other loss, net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

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Derivatives and Hedging Activity (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Non-Designated Derivatives

The following table summarizes our non-designated derivatives as of September 30, 2022 (notional amounts in thousands):

Type of Derivative	Number of Contracts	Aggregate Notional Amount	Notional Currency	Maturity
Fx contracts – Buy Euros ("EUR")	17	65,538	EUR	October 2022 - June 2023
Fx contracts – Buy Pounds Sterling ("GBP")	6	46,517	GBP	October 2022 - October 2024
Fx contracts – Buy Australian dollar ("AUD")	3	5,008	AUD	October 2022 - August 2023
Fx contracts – Sell EUR	226	655,523	EUR	October 2022 - April 2026
Fx contracts – Sell GBP	208	621,465	GBP	October 2022 - April 2027
Fx contracts – Sell AUD	94	672,142	AUD	October 2022 - January 2026
Fx contracts – Sell Swiss Franc ("CHF")	27	15,128	CHF	October 2022 - November 2025
Interest rate swaps – Paying fixed rates	40	3,505,347	USD	April 2024 - June 2032
Interest rate swaps – Receiving fixed rates	2	970,000	USD	March 2025 - January 2027
Interest rate caps	6	758,000	USD	November 2022 - April 2025
Interest rate caps	1	61,000	GBP	April 2024
Credit instruments	3	49,000	USD	September 2058 - August 2061
Interest rate swap guarantees	4	267,162	USD	October 2022 - June 2025
Total	637

Schedule of Fair Value of Derivatives

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	Fair Value of Derivatives in an Asset Position (1) as of				Fair Value of Derivatives in a Liability Position (2) as of
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Interest rate contracts	$	7,888	$	17,728	$	73,600	$	16
Interest rate swap guarantees	—		—		—		260
Foreign exchange contracts	242,398		30,478		9,166		12,870
Credit instruments	885		10		—		275
Total derivatives	$	251,171	$	48,216	$	82,766	$	13,421

___________________________________________________

(1)Classified as derivative assets in our condensed consolidated balance sheets.

(2)Classified as derivative liabilities in our condensed consolidated balance sheets.

Schedule of Effect of Derivative Financial Instruments

The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income for the Three Months Ended September 30,				Amount of Gain (Loss) Recognized in Income for the Nine Months Ended September 30,
		2022		2021		2022		2021
Interest rate contracts	Gain (loss) on derivative financial instruments	$	78,508	$	7,993	$	218,698	$	20,808
Interest rate swap guarantees	Gain (loss) on derivative financial instruments	—		(65)		260		431
Foreign exchange contracts	Gain (loss) on derivative financial instruments	127,358		33,796		242,042		44,857
Credit instruments	Gain (loss) on derivative financial instruments	204		88		921		(304)
		$	206,070	$	41,812	$	461,921	$	65,792

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Offsetting Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Offsetting [Abstract]

Schedule of Offsetting Assets and Liabilities

The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting, which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands):

			(ii)   Gross Amounts Offset in the Statement of Financial Position		(iii) = (i) - (ii) Net Amounts Presented in the Statement of Financial Position		(iv) Gross Amounts Not Offset in the Statement of Financial Position
	(i) Gross Amounts Recognized						Financial Instruments		Cash Collateral Received / Pledged		(v) = (iii) - (iv) Net Amount
As of September 30, 2022
Derivative assets	$	251,171	$	—	$	251,171	$	82,766	$	52,317	$	116,088
Derivative liabilities	$	82,766	$	—	$	82,766	$	82,766	$	—	$	—
Repurchase agreements	10,543,363		—		10,543,363		10,543,363		—		—
	$	10,626,129	$	—	$	10,626,129	$	10,626,129	$	—	$	—
As of December 31, 2021
Derivative assets	$	48,216	$	—	$	48,216	$	12,870	$	21,290	$	14,056
Derivative liabilities	$	13,421	$	—	$	13,421	$	12,870	$	291	$	260
Repurchase agreements	9,542,034		—		9,542,034		9,542,034		—		—
	$	9,555,455	$	—	$	9,555,455	$	9,554,904	$	291	$	260

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Variable Interest Entities

Schedule of Assets and Liabilities of Our Consolidated CLO

The following table details the assets and liabilities of our consolidated CLOs and SASB as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	39,924	$	15,297
Loans held-for-investment	4,369,537		3,073,572
Investment securities	36,934		11,426
Accrued interest receivable	15,848		8,936
Other assets	62		11,213
Total Assets	$	4,462,305	$	3,120,444
Liabilities
Accounts payable, accrued expenses and other liabilities	$	13,153	$	3,335
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Total Liabilities	$	3,704,149	$	2,619,451

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Stockholders' Equity and Non-Controlling Interests (Tables)

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule of Dividends Declared by Board of Directors

During the nine months ended September 30, 2022, our board of directors declared the following dividends:

Declaration Date	Record Date	Ex-Dividend Date	Payment Date	Amount		Frequency
9/16/22	9/30/22	9/29/22	10/14/22	$	0.48	Quarterly
6/15/22	6/30/22	6/29/22	7/15/22	0.48		Quarterly
3/14/22	3/31/22	3/30/22	4/15/22	0.48		Quarterly

Schedule of Share Awards Granted Under the Manager Equity Plan

The table below summarizes our share awards granted or vested under the 2017 Manager Equity Plan (none under the 2022 Manager Equity Plan) during the nine months ended September 30, 2022 and 2021 (dollar amounts in thousands):

Grant Date	Type	Amount Granted	Grant Date Fair Value		Vesting Period
November 2020	RSU	1,800,000	$	30,078	3 years
September 2019	RSU	1,200,000	29,484		(1)
April 2018	RSU	775,000	16,329		3 years

______________________________________________________________________________________________________________________

(1)Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period.

Schedule of Non-Vested Shares and Share Equivalents

	2022 Equity Plan	2022 Manager Equity Plan	Total	Weighted Average Grant Date Fair Value (per share)
Balance as of January 1, 2022	2,406,730	1,295,277	3,702,007	$	18.90
Granted	829,805	—	829,805	23.54
Vested	(646,771)	(695,277)	(1,342,048)	18.55
Forfeited	(69,268)	—	(69,268)	19.49
Balance as of September 30, 2022	2,520,496	600,000	3,120,496	20.27

(1)    Equity-based award activity for awards granted under the 2017 Equity Plan is reflected within the 2022 Equity Plan column, and for awards granted under the 2017 Manager Equity Plan, within the 2022 Manager Equity Plan column.

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Reconciliation of Net Income and Number of Shares Used in Computation of Earnings Per Share

The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Basic Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Basic earnings	$	191,633	$	126,967	$	715,775	$	350,939
Diluted Earnings
Income attributable to STWD common stockholders	$	194,562	$	128,602	$	731,448	$	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)		(1,635)		(15,673)		(5,351)
Add: Interest expense on Convertible Notes	2,906		2,901		8,724		8,717
Add: Undistributed earnings to participating shares	1,818		—		11,629		—
Less: Undistributed earnings reallocated to participating shares	(1,763)		—		(11,280)		—
Diluted earnings	$	194,594	$	129,868	$	724,848	$	359,656
Number of Shares:
Basic — Average shares outstanding	306,704		285,676		304,908		284,577
Effect of dilutive securities — Convertible Notes	9,649		9,649		9,649		9,649
Effect of dilutive securities — Contingently issuable shares	23		19		23		19
Effect of dilutive securities — Unvested non-participating shares	199		104		161		148
Diluted — Average shares outstanding	316,575		295,448		314,741		294,393
Earnings Per Share Attributable to STWD Common Stockholders:
Basic	$	0.62	$	0.44	$	2.35	$	1.23
Diluted	$	0.61	$	0.44	$	2.30	$	1.22

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of Changes in AOCI by Component

The changes in AOCI by component are as follows (amounts in thousands):

	Cumulative Unrealized Gain (Loss) on Available-for- Sale Securities		Foreign Currency Translation		Total
Three Months Ended September 30, 2022
Balance at July 1, 2022	$	28,970	$	—	$	28,970
OCI before reclassifications	(6,194)		—		(6,194)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(6,194)		—		(6,194)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Three Months Ended September 30, 2021
Balance at July 1, 2021	$	41,310	$	—	$	41,310
OCI before reclassifications	(822)		—		(822)
Amounts reclassified from AOCI	(2)		—		(2)
Net period OCI	(824)		—		(824)
Balance at September 30, 2021	$	40,486	$	—	$	40,486
Nine Months Ended September 30, 2022
Balance at January 1, 2022	$	40,953	$	—	$	40,953
OCI before reclassifications	(18,177)		—		(18,177)
Amounts reclassified from AOCI	—		—		—
Net period OCI	(18,177)		—		(18,177)
Balance at September 30, 2022	$	22,776	$	—	$	22,776
Nine Months Ended September 30, 2021
Balance at January 1, 2021	$	44,057	$	(64)	$	43,993
OCI before reclassifications	(3,569)		—		(3,569)
Amounts reclassified from AOCI	(2)		64		62
Net period OCI	(3,571)		64		(3,507)
Balance at September 30, 2021	$	40,486	$	—	$	40,486

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis

The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,258,860	$	—	$	70,389	$	2,188,471
RMBS	116,577		—		—		116,577
CMBS	20,652		—		—		20,652
Equity security	9,343		9,343		—		—
Woodstar Fund investments	1,669,265		—		—		1,669,265
Domestic servicing rights	18,014		—		—		18,014
Derivative assets	251,171		—		251,171		—
VIE assets	54,215,370		—		—		54,215,370
Total	$	58,559,252	$	9,343	$	321,560	$	58,228,349
Financial Liabilities:
Derivative liabilities	$	82,766	$	—	$	82,766	$	—
VIE liabilities	52,501,845		—		47,008,848		5,492,997
Total	$	52,584,611	$	—	$	47,091,614	$	5,492,997

	December 31, 2021
	Total		Level I		Level II		Level III
Financial Assets:
Loans under fair value option	$	2,936,025	$	—	$	—	$	2,936,025
RMBS	143,980		—		—		143,980
CMBS	22,244		—		—		22,244
Equity security	11,624		11,624		—		—
Woodstar Fund investments	1,040,309		—		—		1,040,309
Domestic servicing rights	16,780		—		—		16,780
Derivative assets	48,216		—		48,216		—
VIE assets	61,280,543		—		—		61,280,543
Total	$	65,499,721	$	11,624	$	48,216	$	65,439,881
Financial Liabilities:
Derivative liabilities	$	13,421	$	—	$	13,421	$	—
VIE liabilities	59,752,922		—		54,972,701		4,780,221
Total	$	59,766,343	$	—	$	54,986,122	$	4,780,221

Schedule of Changes in Financial Assets and Liabilities Classified as Level III

The changes in financial assets and liabilities classified as Level III are as follows for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

Three Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2022 balance	$	2,197,501	$	124,439	$	20,965	$	1,558,850	$	17,499	$	57,993,563	$	(5,980,634)	$	55,932,183
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(87,474)		—		(84)		110,415		515		(3,778,193)		824,214		(2,930,607)
Net accretion	—		1,744		—		—		—		—		—		1,744
Included in OCI	—		(6,194)		—		—		—		—		—		(6,194)
Purchases / Originations	186,397		—		—		—		—		—		—		186,397
Sales	(1,266)		—		—		—		—		—		—		(1,266)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(37,998)		(3,412)		(229)		—		—		—		(4,887)		(46,526)
Transfers into Level III	1,700		—		—		—		—		—		(573,303)		(571,603)
Transfers out of Level III	(70,389)		—		—		—		—		—		241,613		171,224
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		—		—		—
Deconsolidation of VIEs	—		—		—		—		—		—		—		—
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(92,162)	$	1,744	$	(84)	$	110,415	$	515	$	(3,778,193)	$	824,214	$	(2,933,551)
Included in OCI	$	—	$	(6,194)	$	—	$	—	$	—	$	—	$	—	$	(6,194)

Three Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
July 1, 2021 balance	$	767,821	$	154,704	$	18,965	$	—	$	13,705	$	63,493,796	$	(4,836,192)	$	59,612,799
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	31,727		—		(790)		—		2,237		(1,601,734)		580,581		(987,979)
Net accretion	—		2,584		—		—		—		—		—		2,584
Included in OCI	—		(824)		—		—		—		—		—		(824)
Purchases / Originations	1,783,772		—		—		—		—		—		—		1,783,772
Sales	(856,187)		—		—		—		—		—		—		(856,187)
Issuances	—		—		—		—		—		—		(27,112)		(27,112)
Cash repayments / receipts	(50,395)		(7,881)		(356)		—		—		—		(351)		(58,983)
Transfers into Level III	4,414		—		—		—		—		—		(112,562)		(108,148)
Transfers out of Level III	(133,863)		—		—		—		—		—		349,922		216,059
Transfers within Level III	258,927		—		—						(258,927)		—		—
Consolidation of VIEs	—		—		—		—		—		1,649,200		(520,325)		1,128,875
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	12,571	$	2,582	$	409	$	—	$	2,237	$	(1,601,734)	$	580,581	$	(1,003,354)
Included in OCI	$	—	$	(822)	$	—	$	—	$	—	$	—	$	—	$	(822)

Nine Months Ended September 30, 2022	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2022 balance	$	2,936,025	$	143,980	$	22,244	$	1,040,309	$	16,780	$	61,280,543	$	(4,780,221)	$	60,659,660
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	(326,737)		—		(1,441)		628,956		1,234		(10,696,486)		1,746,436		(8,648,038)
Net accretion	—		6,974		—		—		—		—		—		6,974
Included in OCI	—		(18,177)		—		—		—		—		—		(18,177)
Purchases / Originations	3,793,467		—		—		—		—		—		—		3,793,467
Sales	(3,588,953)		—		—		—		—		—		—		(3,588,953)
Issuances	—		—		—		—		—		—		—		—
Cash repayments / receipts	(152,847)		(16,200)		(681)		—		—		—		(5,712)		(175,440)
Transfers into Level III	1,847		—		—		—		—		—		(1,203,420)		(1,201,573)
Transfers out of Level III	(474,331)		—		—		—		—		—		559,062		84,731
Transfers within Level III	—		—		—		—		—		—		—		—
Consolidation of VIEs	—		—		—		—		—		4,361,325		(1,810,101)		2,551,224
Deconsolidation of VIEs	—		—		530		—		—		(730,012)		959		(728,523)
September 30, 2022 balance	$	2,188,471	$	116,577	$	20,652	$	1,669,265	$	18,014	$	54,215,370	$	(5,492,997)	$	52,735,352
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2022:
Included in earnings	$	(258,652)	$	6,641	$	(911)	$	628,956	$	1,234	$	(10,696,486)	$	1,746,436	$	(8,572,782)
Included in OCI	$	—	$	(17,771)	$	—	$	—	$	—	$	—	$	—	$	(17,771)

Nine Months Ended September 30, 2021	Loans at Fair Value		RMBS		CMBS		Woodstar Fund Investments		Domestic Servicing Rights		VIE Assets		VIE Liabilities		Total
January 1, 2021 balance	$	1,022,979	$	167,349	$	19,457	$	—	$	13,202	$	64,238,328	$	(2,019,876)	$	63,441,439
Total realized and unrealized gains (losses):
Included in earnings:
Change in fair value / gain on sale	68,116		—		(98)		—		2,740		(4,952,071)		647,555		(4,233,758)
Net accretion	—		7,800		—		—		—		—		—		7,800
Included in OCI	—		(3,571)		—		—		—		—		—		(3,571)
Purchases / Originations	3,151,346		—		—		—		—		—		—		3,151,346
Sales	(2,333,767)		—		—		—		—		—		—		(2,333,767)
Issuances	—		—		—		—		—		—		(38,715)		(38,715)
Cash repayments / receipts	(153,723)		(22,995)		(1,540)		—		—		—		(2,889)		(181,147)
Transfers into Level III	4,413		—		—		—		—		—		(2,953,709)		(2,949,296)
Transfers out of Level III	(384,549)		—		—		—		—		—		864,153		479,604
Transfers within Level III	431,401		—		—		—		—		(431,401)		—		—
Consolidation of VIEs	—		—		—		—		—		4,427,479		(1,062,558)		3,364,921
Deconsolidation of VIEs	—		—		5,684		—		—		(935,855)		35,450		(894,721)
September 30, 2021 balance	$	1,806,216	$	148,583	$	23,503	$	—	$	15,942	$	62,346,480	$	(4,530,589)	$	59,810,135
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2021:
Included in earnings	$	13,234	$	7,793	$	1,102	$	—	$	2,740	$	(4,952,071)	$	647,555	$	(4,279,647)
Included in OCI	$	—	$	(3,563)	$	—	$	—	$	—	$	—	$	—	$	(3,563)

Schedule of Fair Value of Financial Instruments not Carried at Fair Value

The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands):

	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets not carried at fair value:
Loans	$	18,050,646	$	17,843,579	$	15,477,624	$	15,526,235
HTM debt securities	743,556		704,285		683,136		656,864
Financial liabilities not carried at fair value:
Secured financing agreements, CLOs and SASB	$	17,186,898	$	16,953,413	$	15,192,966	$	15,266,440
Unsecured senior notes	2,326,988		2,119,427		1,828,590		1,893,065

Schedule of Quantitative Information for Level 3 Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis

The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands):

	Carrying Value at September 30, 2022		Valuation Technique	Unobservable Input	Range (Weighted Average) as of (1)
					September 30, 2022	December 31, 2021
Loans under fair value option	$	2,188,471	Discounted cash flow, market pricing	Coupon (d)	2.8% - 9.3% (4.7%)	2.6% - 9.2% (4.2%)
				Remaining contractual term (d)	5.5 - 39.8 years (29.0 years)	6.3 - 39.9 years (27.4 years)
				FICO score (a)	585 - 900 (745)	582 - 829 (748)
				LTV (b)	5% - 93% (68%)	1% - 94% (66%)
				Purchase price (d)	80.0% - 108.6% (101.8%)	80.0% - 108.6% (102.3%)
RMBS	116,577		Discounted cash flow	Constant prepayment rate (a)	3.0% - 13.0% (5.9%)	4.8% - 19.2% (9.9%)
				Constant default rate (b)	1.3% - 4.4% (2.0%)	0.8% - 6.0% (2.1%)
				Loss severity (b)	0% - 98% (18%) (f)	0% - 86% (26%) (f)
				Delinquency rate (c)	7% - 29% (16%)	10.4% - 35% (19%)
				Servicer advances (a)	29% - 78% (54%)	19% - 83% (52%)
				Annual coupon deterioration (b)	0% - 3.2% (0.1%)	0% - 1.7% (0.1%)
				Putback amount per projected total collateral loss (e)	0% - 8% (0.6%)	0% - 8% (0.5%)
CMBS	20,652		Discounted cash flow	Yield (b)	0% - 186.7% (9.0%)	0% - 613.6% (9.3%)
				Duration (c)	0 - 8.0 years (3.0 years)	0 - 7.2 years (5.2 years)
Woodstar Fund investments	1,669,265		Discounted cash flow	Discount rate - properties (b)	N/A	5.8% - 6.3% (6.0%)
				Discount rate - debt (a)	5.3% - 6.6% (5.7%)	2.6% - 3.3% (2.9%)
				Terminal capitalization rate (b)	N/A	4.8% - 5.3% (4.9%)
				Direct capitalization rate (b)	4.2% (4.2%)	4.1% - 4.2% (4.2%) (Implied)
Domestic servicing rights	18,014		Discounted cash flow	Debt yield (a)	8.00% (8.00%)	7.30% (7.30%)
				Discount rate (b)	15% (15%)	15% (15%)
VIE assets	54,215,370		Discounted cash flow	Yield (b)	0% - 486.8% (14.8%)	0% - 615.3% (13.0%)
				Duration (c)	0 - 11.0 years (2.9 years)	0 - 11.0 years (3.2 years)
VIE liabilities	5,492,997		Discounted cash flow	Yield (b)	0% - 486.8% (9.2%)	0% - 615.3% (6.4%)
				Duration (c)	0 - 11.0 years (2.0 years)	0 - 11.0 years (2.3 years)

______________________________________________________________________________________________________________________

(1)Unobservable inputs were weighted by the relative carrying value of the instruments as of September 30, 2022 and December 31, 2021.

Information about Uncertainty of Fair Value Measurements

(a)Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.

(b)Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement.

(c)Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question.

(d)This unobservable input is not subject to variability as of the respective reporting dates.

(e)Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio.

(f)3% and 18% of the portfolio falls within a range of 45% - 80% as of September 30, 2022 and December 31, 2021, respectively.

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Tax Rate Reconciliation

The following table is a reconciliation of our U.S. federal income tax provision determined using our statutory federal tax rate to our reported income tax provision (benefit) for the three and nine months ended September 30, 2022 and 2021 (dollars in thousands):

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2022				2021				2022				2021
Federal statutory tax rate	$	36,768	21.0	%	$	31,078	21.0	%	$	176,580	21.0	%	$	83,113	21.0	%
REIT and other non-taxable income	(75,642)		(43.1)	%	(24,527)		(16.6)	%	(213,073)		(25.3)	%	(73,046)		(18.5)	%
State income taxes	(12,772)		(7.3)	%	2,153		1.5	%	(11,990)		(1.4)	%	3,308		0.8	%
Federal benefit of state tax deduction	2,682		1.5	%	(452)		(0.3)	%	2,518		0.3	%	(695)		(0.2)	%
Intra-entity transfers	—		—	%	(312)		(0.2)	%	(3,868)		(0.5)	%	(6,364)		(1.5)	%
Other	209		0.1	%	(439)		(0.3)	%	834		0.1	%	62		—	%
Effective tax rate	$	(48,755)	(27.8)	%	$	7,501	5.1	%	$	(48,999)	(5.8)	%	$	6,378	1.6	%

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Segment Data (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Results of Operations by Business Segment

The table below presents our results of operations for the three months ended September 30, 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	$	284,197	$	43,018	$	—	$	1,139	$	—	$	328,354	$	—	$	328,354
Interest income from investment securities	28,560		1,204		—		27,585		—		57,349		(38,330)		19,019
Servicing fees	142		—		—		11,830		—		11,972		(3,545)		8,427
Rental income	1,944		—		22,886		8,102		—		32,932		—		32,932
Other revenues	138		129		54		1,491		—		1,812		(3)		1,809
Total revenues	314,981		44,351		22,940		50,147		—		432,419		(41,878)		390,541
Costs and expenses:
Management fees	227		—		—		—		27,129		27,356		—		27,356
Interest expense	145,107		22,500		9,266		6,601		39,166		222,640		(217)		222,423
General and administrative	16,458		3,588		933		20,046		4,384		45,409		86		45,495
Acquisition and investment pursuit costs	1,164		2		—		47		—		1,213		—		1,213
Costs of rental operations	2,633		—		5,793		3,780		—		12,206		—		12,206
Depreciation and amortization	1,629		101		8,161		2,720		—		12,611		—		12,611
Credit loss provision, net	8,401		6,942		—		—		—		15,343		—		15,343
Total costs and expenses	175,619		33,133		24,153		33,194		70,679		336,778		(131)		336,647
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		37,146		37,146
Change in fair value of servicing rights	—		—		—		357		—		357		158		515
Change in fair value of investment securities, net	16,398		—		—		(21,412)		—		(5,014)		4,931		(83)
Change in fair value of mortgage loans, net	(90,159)		—		—		2,685		—		(87,474)		—		(87,474)
Income from affordable housing fund investments	—		—		117,527		—		—		117,527		—		117,527
(Loss) earnings from unconsolidated entities	(4,044)		1,892		—		602		—		(1,550)		(494)		(2,044)
(Loss) gain on sale of investments and other assets, net	(288)		—		—		13,741		—		13,453		—		13,453
Gain (loss) on derivative financial instruments, net	220,296		331		10,262		6,849		(31,668)		206,070		—		206,070
Foreign currency (loss) gain, net	(107,087)		(253)		22		—		—		(107,318)		—		(107,318)
Loss on extinguishment of debt	—		—		—		(212)		—		(212)		—		(212)
Other loss, net	(56,391)		—		—		—		—		(56,391)		—		(56,391)
Total other income (loss)	(21,275)		1,970		127,811		2,610		(31,668)		79,448		41,741		121,189
Income (loss) before income taxes	118,087		13,188		126,598		19,563		(102,347)		175,089		(6)		175,083
Income tax benefit (provision)	53,099		2		—		(4,346)		—		48,755		—		48,755
Net income (loss)	171,186		13,190		126,598		15,217		(102,347)		223,844		(6)		223,838
Net income attributable to non-controlling interests	(3)		—		(28,486)		(793)		—		(29,282)		6		(29,276)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	171,183	$	13,190	$	98,112	$	14,424	$	(102,347)	$	194,562	$	—	$	194,562

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 nine months ended September 30, 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	$	714,222	$	100,097	$	—	$	8,804	$	—	$	823,123	$	—	$	823,123
Interest income from investment securities	71,987		3,124		—		75,964		—		151,075		(102,767)		48,308
Servicing fees	420		—		—		41,517		—		41,937		(10,965)		30,972
Rental income	4,674		—		67,879		23,483		—		96,036		—		96,036
Other revenues	251		287		152		10,999		3		11,692		(12)		11,680
Total revenues	791,554		103,508		68,031		160,767		3		1,123,863		(113,744)		1,010,119
Costs and expenses:
Management fees	758		—		—		—		113,517		114,275		—		114,275
Interest expense	301,935		49,431		22,421		19,202		109,150		502,139		(647)		501,492
General and administrative	39,905		10,730		2,964		66,603		14,354		134,556		265		134,821
Acquisition and investment pursuit costs	2,401		3		7		(259)		—		2,152		—		2,152
Costs of rental operations	4,978		—		16,010		11,106		—		32,094		—		32,094
Depreciation and amortization	3,106		310		24,559		8,523		—		36,498		—		36,498
Credit loss provision, net	13,027		7,096		—		—		—		20,123		—		20,123
Other expense	1,251		—		55		7		—		1,313		—		1,313
Total costs and expenses	367,361		67,570		66,016		105,182		237,021		843,150		(382)		842,768
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		72,268		72,268
Change in fair value of servicing rights	—		—		—		683		—		683		551		1,234
Change in fair value of investment securities, net	(5,019)		—		—		(38,853)		—		(43,872)		42,189		(1,683)
Change in fair value of mortgage loans, net	(327,743)		—		—		1,006		—		(326,737)		—		(326,737)
Income from affordable housing fund investments	—		—		658,733		—		—		658,733		—		658,733
(Loss) earnings from unconsolidated entities	(2,598)		2,631		—		2,501		—		2,534		(1,623)		911
Gain on sale of investments and other assets, net	86,460		—		—		25,599		—		112,059		—		112,059
Gain (loss) on derivative financial instruments, net	465,831		1,228		33,162		43,719		(82,019)		461,921		—		461,921
Foreign currency (loss) gain, net	(212,672)		(570)		41		—		—		(213,201)		—		(213,201)
Loss on extinguishment of debt	(206)		(469)		—		(360)		—		(1,035)		—		(1,035)
Other (loss) income, net	(90,988)		—		—		—		—		(90,988)		25		(90,963)
Total other income (loss)	(86,935)		2,820		691,936		34,295		(82,019)		560,097		113,410		673,507
Income (loss) before income taxes	337,258		38,758		693,951		89,880		(319,037)		840,810		48		840,858
Income tax benefit (provision)	57,682		7		—		(8,690)		—		48,999		—		48,999
Net income (loss)	394,940		38,765		693,951		81,190		(319,037)		889,809		48		889,857
Net income attributable to non-controlling interests	(10)		—		(148,379)		(9,972)		—		(158,361)		(48)		(158,409)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	394,930	$	38,765	$	545,572	$	71,218	$	(319,037)	$	731,448	$	—	$	731,448

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

Schedule of Consolidated Balance Sheet by Business Segment

The table below presents our consolidated balance sheet as of September 30, 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	$	76,654	$	59,925	$	32,464	$	43,172	$	124,945	$	337,160	$	2,550	$	339,710
Restricted cash	6,230		33,410		978		3,789		77,163		121,570		—		121,570
Loans held-for-investment, net	15,719,718		2,374,444		—		9,660		—		18,103,822		—		18,103,822
Loans held-for-sale	2,125,827		—		—		79,857		—		2,205,684		—		2,205,684
Investment securities	1,318,372		66,728		—		1,183,831		—		2,568,931		(1,678,803)		890,128
Properties, net	214,896		—		868,454		134,076		—		1,217,426		—		1,217,426
Investments of consolidated affordable housing fund	—		—		1,669,265		—		—		1,669,265		—		1,669,265
Investments in unconsolidated entities	34,319		29,347		—		35,494		—		99,160		(15,996)		83,164
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	14,302		—		30,829		69,532		—		114,663		(41,567)		73,096
Derivative assets	249,120		242		321		1,488		—		251,171		—		251,171
Accrued interest receivable	143,352		9,177		412		1,412		—		154,353		(205)		154,148
Other assets	254,353		4,332		77,207		27,033		55,907		418,832		(374)		418,458
VIE assets, at fair value	—		—		—		—		—		—		54,215,370		54,215,370
Total Assets	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	404,982	$	41,457	$	12,105	$	43,658	$	60,171	$	562,373	$	88	$	562,461
Related-party payable	—		—		—		—		26,146		26,146		—		26,146
Dividends payable	—		—		—		—		150,196		150,196		—		150,196
Derivative liabilities	8,943		223		—		—		73,600		82,766		—		82,766
Secured financing agreements, net	10,250,349		1,095,459		789,138		612,409		769,814		13,517,169		(21,267)		13,495,902
Collateralized loan obligations and single asset securitization, net	2,877,567		813,429		—		—		—		3,690,996		—		3,690,996
Unsecured senior notes, net	—		—		—		—		2,326,988		2,326,988		—		2,326,988
VIE liabilities, at fair value	—		—		—		—		—		—		52,501,845		52,501,845
Total Liabilities	13,541,841		1,950,568		801,243		656,067		3,406,915		20,356,634		52,480,666		72,837,300
Temporary Equity: Redeemable non-controlling interests	—		—		344,373		—		—		344,373		—		344,373
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,170		3,170		—		3,170
Additional paid-in capital	1,624,104		665,104		(381,226)		(575,971)		4,447,676		5,779,687		—		5,779,687
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	4,968,304		81,342		1,706,906		1,484,360		(7,461,724)		779,188		—		779,188
Accumulated other comprehensive income	22,776		—		—		—		—		22,776		—		22,776
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,615,184		746,446		1,325,680		908,389		(3,148,900)		6,446,799		—		6,446,799
Non-controlling interests in consolidated subsidiaries	118		—		208,634		165,325		—		374,077		309		374,386
Total Permanent Equity	6,615,302		746,446		1,534,314		1,073,714		(3,148,900)		6,820,876		309		6,821,185
Total Liabilities and Equity	$	20,157,143	$	2,697,014	$	2,679,930	$	1,729,781	$	258,015	$	27,521,883	$	52,480,975	$	80,002,858

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)
Retained earnings (accumulated deficit)	4,573,374		42,577		1,161,334		1,413,142		(6,697,321)		493,106		—		493,106
Accumulated other comprehensive income	40,953		—		—		—		—		40,953		—		40,953
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

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Business and Organization (Details)	9 Months Ended
	Sep. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable business segments	4
Minimum annual REIT taxable income distributable to stockholders (as a percent)	90.00%

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Summary of Significant Accounting Policies (Details)			9 Months Ended
	Nov. 06, 2021 USD ($)	Nov. 05, 2021 USD ($) unit property	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
REO assets as a percent of consolidated VIE assets			1.00%
Loans as a percent of consolidated VIE assets			99.00%
Permitted reinvestment under static investment in VIEs			$ 0
Number of properties in portfolio investment | property		59
Number of units in portfolio investment | unit		15,057
Contributions from non-controlling interests			$ 21,926,000	$ 5,590,000
Woodstar Fund
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of interest sold		20.60%
Contributions from non-controlling interests	$ 214,200,000	$ 216,000,000
Fund term		8 years

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Acquisitions and Divestitures - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) property	Sep. 30, 2021 USD ($)	Apr. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)
Business Acquisition [Line Items]
Allowance	$ 92,611	$ 92,611
Loan Transfers Accounted for as Sales
Business Acquisition [Line Items]
Loan with related allowance, unpaid principal					$ 20,900
Loan Transfers Accounted for as Sales | Orlando, Florida
Business Acquisition [Line Items]
Loans with no related allowance				$ 18,500
Loan Transfers Accounted for as Sales | Montgomery Alabama
Business Acquisition [Line Items]
Loans with related allowance					9,000
Allowance					8,300
Unamortized discount					$ 3,600
Operating properties | Investing and Servicing Segment
Business Acquisition [Line Items]
Proceeds from sale of operating properties	19,500	54,000	$ 30,900
Gain on sale of property	$ 13,700	$ 25,400
Number of properties sold | property		2
Gain on sale of property attributable to noncontrolling interest		$ 600
Operating properties | Loan Transfers Accounted for as Sales
Business Acquisition [Line Items]
Gain on sale of property			9,700
Operating properties | Loan Transfers Accounted for as Sales | Orlando, Florida
Business Acquisition [Line Items]
Proceeds from sale of operating properties		114,800
Gain on sale of property		86,600
Operating properties | Loan Transfers Accounted for as Sales | Montgomery Alabama
Business Acquisition [Line Items]
Proceeds from sale of operating properties		114,800	31,200
Gain on sale of property		$ 86,600	$ 17,700

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Loans - Held for Investment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Investments in loans
Carrying Value	$ 20,402,117	$ 18,480,919
Face Amount	20,741,574	18,521,795
Credit loss allowances	(92,611)	(67,270)
Total net loans	20,309,506	$ 18,413,649	$ 15,476,517	$ 12,139,908
Commercial Portfolio Segment
Investments in loans
Carrying Value	15,741,064
Infrastructure Portfolio Segment
Investments in loans
Carrying Value	$ 2,402,193
Residential Portfolio Segment
Investments in loans
Weighted Average Life	29 years 1 month 6 days	29 years 4 months 24 days
Reclassification to held-for-sale	$ 300
Loans held for investment
Investments in loans
Carrying Value	18,196,433	$ 15,604,119
Face Amount	18,318,422	15,706,124
Credit loss allowances	(92,611)	(67,270)
Loans held for investment | Commercial Portfolio Segment
Investments in loans
Carrying Value	15,741,064	13,496,798
Face Amount	15,830,267	13,574,079
Credit loss allowances	(64,862)	(46,600)
Total net loans	15,676,202	13,450,198	11,512,652	9,583,949
Loans held for investment | Infrastructure Portfolio Segment
Investments in loans
Carrying Value	2,402,193	2,048,096
Face Amount	$ 2,433,586	$ 2,071,912
Weighted Average Life	4 years	4 years 3 months 18 days
Credit loss allowances	$ (27,749)	$ (20,670)
Total net loans	2,374,444	2,027,426	1,688,847	1,412,440
Loans held for investment | Residential Portfolio Segment
Investments in loans
Total net loans	$ 53,176	$ 59,225	91,499	90,684
Loans held for investment | Weighted-average | Infrastructure Portfolio Segment
Investments in loans
Weighted Average Coupon	7.70%	4.40%
Loans under fair value option
Investments in loans
Carrying Value	$ 2,205,684	$ 2,876,800
Face Amount	2,423,152	2,815,671
Total net loans	2,205,684	2,876,800	$ 2,183,519	$ 1,052,835
Loans under fair value option | Residential, fair value option
Investments in loans
Carrying Value	2,125,827	2,590,005
Face Amount	2,340,929	2,525,910
Loans under fair value option | Residential, fair value option
Investments in loans
Carrying Value	79,857	286,795
Face Amount	$ 82,223	$ 289,761
Weighted Average Life	7 years 3 months 18 days	9 years
Loans under fair value option | Weighted-average | Residential, fair value option
Investments in loans
Weighted Average Coupon	4.70%	4.20%
Loans under fair value option | Weighted-average | Residential, fair value option
Investments in loans
Weighted Average Coupon	4.20%	4.00%
First mortgage loan participation | Loans held for investment
Investments in loans
Carrying Value	$ 15,174,120	$ 12,991,099
Face Amount	$ 15,263,633	$ 13,067,524
Weighted Average Life	1 year 10 months 24 days	1 year 10 months 24 days
First mortgage loan participation | Loans held for investment | Weighted-average
Investments in loans
Weighted Average Coupon	6.80%	4.50%
Subordinated mortgages | Loans held for investment
Investments in loans
Carrying Value	$ 69,793	$ 70,771
Face Amount	$ 70,966	$ 72,371
Weighted Average Life	2 years	2 years 9 months 18 days
Subordinated mortgages | Loans held for investment | Weighted-average
Investments in loans
Weighted Average Coupon	12.50%	10.00%
Mezzanine Loans
Investments in loans
Total net loans	$ 1,200,000	$ 1,400,000
Mezzanine Loans | Loans held for investment
Investments in loans
Carrying Value	438,457	417,504
Face Amount	$ 435,818	$ 415,155
Weighted Average Life	1 year	1 year 4 months 24 days
Mezzanine Loans | Loans held for investment | Weighted-average
Investments in loans
Weighted Average Coupon	11.60%	9.40%
Other | Loans held for investment
Investments in loans
Carrying Value	$ 58,694	$ 17,424
Face Amount	$ 59,850	$ 19,029
Weighted Average Life	1 year 7 months 6 days	2 years 1 month 6 days
Other | Loans held for investment | Weighted-average
Investments in loans
Weighted Average Coupon	8.20%	8.20%
Residential loans, fair value option | Loans held for investment
Investments in loans
Carrying Value	$ 53,176	$ 59,225
Face Amount	54,569	$ 60,133
Residential loans, fair value option | Loans held for investment | Residential Portfolio Segment
Investments in loans
Carrying Value	$ 53,176
Residential loans, fair value option | Loans held for investment | Weighted-average
Investments in loans
Weighted Average Coupon	5.80%	6.00%

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Loans - Variable Rate Loans Held for Investment (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Variable rate loans held-for-investment
Carrying Value	$ 17,409,154
Weighted-average Spread Above Index	3.90%
Commercial loans
Variable rate loans held-for-investment
Carrying Value	$ 15,006,961
Weighted-average Spread Above Index	4.00%
Infrastructure loans
Variable rate loans held-for-investment
Carrying Value	$ 2,402,193
Weighted-average Spread Above Index	3.90%

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Loans - Risk Ratings by Class of Loan (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments in loans
Loans held-for-investment	$ 20,402,117	$ 18,480,919
Credit Loss Allowance	92,611
Total loans held-for-investment
Investments in loans
Loans held-for-investment	18,196,433	15,604,119
Loans under fair value option
Investments in loans
Loans held-for-investment	2,205,684	2,876,800
Credit Loss Allowance	0
Residential loans, fair value option | Total loans held-for-investment
Investments in loans
Loans held-for-investment	53,176	59,225
Credit deteriorated
Investments in loans
Loans held-for-investment	38,200
Commercial Portfolio Segment
Investments in loans
2022	3,534,674
2021	6,680,368
2020	926,633
2019	2,417,576
2018	1,144,267
Prior	1,037,546
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	15,741,064
Credit Loss Allowance	64,862
Commercial Portfolio Segment | Total loans held-for-investment
Investments in loans
Loans held-for-investment	15,741,064	13,496,798
Commercial Portfolio Segment | LTV less than 60%
Investments in loans
2022	1,697,121
2021	2,540,666
2020	459,943
2019	892,348
2018	373,102
Prior	680,512
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	6,643,692
Credit Loss Allowance	5,272
Commercial Portfolio Segment | LTV 60% - 70%
Investments in loans
2022	1,694,971
2021	3,805,828
2020	238,557
2019	1,096,130
2018	457,696
Prior	68,455
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	7,361,637
Credit Loss Allowance	19,204
Commercial Portfolio Segment | LTV > 70%
Investments in loans
2022	100,444
2021	333,874
2020	228,133
2019	429,098
2018	313,469
Prior	267,098
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	1,672,116
Credit Loss Allowance	35,461
Commercial Portfolio Segment | Credit deteriorated
Investments in loans
2022	0
2021	0
2020	0
2019	0
2018	0
Prior	4,925
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	4,925
Credit Loss Allowance	4,925
Commercial Portfolio Segment | Defeased and other
Investments in loans
2022	42,138
2021	0
2020	0
2019	0
2018	0
Prior	16,556
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	58,694
Credit Loss Allowance	0
Infrastructure Portfolio Segment
Investments in loans
2022	181,204
2021	582,416
2020	91,895
2019	574,861
2018	471,713
Prior	492,647
Revolving Loans Amortized Cost Total	7,457
Loans held-for-investment	2,402,193
Credit Loss Allowance	27,749
Infrastructure Portfolio Segment | Total loans held-for-investment
Investments in loans
Loans held-for-investment	2,402,193	$ 2,048,096
Infrastructure Portfolio Segment | Credit deteriorated
Investments in loans
2022	0
2021	0
2020	0
2019	0
2018	0
Prior	33,288
Revolving Loans Amortized Cost Total	0
Loans held-for-investment	33,288
Credit Loss Allowance	16,501
Infrastructure Portfolio Segment | Power
Investments in loans
2022	93,258
2021	222,453
2020	81,611
2019	288,355
2018	387,126
Prior	409,170
Revolving Loans Amortized Cost Total	5,488
Loans held-for-investment	1,487,461
Credit Loss Allowance	5,695
Infrastructure Portfolio Segment | Oil and gas
Investments in loans
2022	87,946
2021	359,963
2020	10,284
2019	286,506
2018	84,587
Prior	50,189
Revolving Loans Amortized Cost Total	1,969
Loans held-for-investment	881,444
Credit Loss Allowance	5,553
Residential Portfolio Segment
Investments in loans
Credit Loss Allowance	0
Residential Portfolio Segment | Residential loans, fair value option | Total loans held-for-investment
Investments in loans
Loans held-for-investment	$ 53,176

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Loans - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		$ 20,402,117		$ 20,402,117		$ 18,480,919
Allowance for credit losses		92,611		92,611		$ 67,270
Texas Mezzanine Borrower
Financing Receivable, Allowance for Credit Loss [Line Items]
Net consideration transferred	$ 50,200
Properties	110,800
Lease intangibles	15,400
Net working capital	11,800
Third-party first mortgage debt	$ 87,800
Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		15,741,064		15,741,064
Infrastructure Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		2,402,193		2,402,193
Credit deteriorated
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		38,200		38,200
Credit deteriorated | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		4,925		4,925
Credit deteriorated | Infrastructure Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		33,288		33,288
Allowance for credit losses		16,500		16,500
Increase in credit loss allowance		6,400	$ 10,100	6,400	$ 10,100
Credit deteriorated | Senior Loans | Infrastructure Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual status		4,900		4,900
90 days or greater past due | Non-Credit Deterioration
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		505,400		505,400
Past due loan converted to equity interests		7,300		7,300
90 days or greater past due | Non-Credit Deterioration | Residential Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		31,300		31,300
90 days or greater past due | Non-Credit Deterioration | Senior Loans | New Jersey | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		204,300		204,300
90 days or greater past due | Non-Credit Deterioration | Senior Loans | California | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		222,800		222,800
90 days or greater past due | Non-Credit Deterioration | Senior Loans | New York | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Carrying Value		9,200		9,200
90 days or greater past due | Non-Credit Deterioration | Leasehold Mortgage Loan | California | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual status		37,800		37,800
90 days or greater past due | Credit deteriorated | Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual status		$ 33,300		$ 33,300

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Loans - Activity in Portfolio (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($) trust	Dec. 31, 2021 USD ($)	Apr. 30, 2021 USD ($)
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			$ 67,270
Credit loss (reversal) provision, net			25,341	$ (12,114)
Credit loss allowance at the end of the period	$ 92,611		92,611
Activity in loan portfolio
Balance at the beginning of the period			18,413,649	12,139,908
Acquisitions/originations/additional funding			8,800,865	8,787,068
Capitalized Interest			87,674	93,960
Basis of loans sold			(4,062,841)	(2,602,168)
Loan maturities/principal repayments			(1,957,881)	(3,386,445)
Discount accretion/premium amortization			47,468	44,523
Changes in fair value	(87,474)	$ 31,727	(326,737)	68,116
Foreign currency translation gain/(loss), net			(617,199)	(75,934)
Credit loss reversal (provision), net			(25,341)	12,114
Loan foreclosure and conversion to equity interest				(36,308)
Transfer to/from other asset classifications or between segments			(50,151)	431,683
Balance at the end of the period	20,309,506	15,476,517	20,309,506	$ 15,476,517
Carrying Value	20,402,117		20,402,117		$ 18,480,919
Number of trusts redeemed | trust				2
90 days or greater past due | Non-Credit Deterioration
Activity in loan portfolio
Carrying Value	505,400		505,400
Past due loan converted to equity interests	7,300		7,300
Funded commitments
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			67,270
Credit loss (reversal) provision, net			25,341
Credit loss allowance at the end of the period	92,611		92,611
Activity in loan portfolio
Credit loss reversal (provision), net			(25,341)
Unfunded commitments
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			6,837
Credit loss (reversal) provision, net			(536)
Credit loss allowance at the end of the period	6,301		6,301
Unfunded commitments	2,495,912		2,495,912
Activity in loan portfolio
Credit loss reversal (provision), net			536
CMBS
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			0
Credit loss (reversal) provision, net			40
Credit loss allowance at the end of the period	40		40
Unfunded commitments	32,494		32,494
Activity in loan portfolio
Credit loss reversal (provision), net			(40)
Total loans held-for-investment
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			67,270
Credit loss allowance at the end of the period	92,611		92,611
Activity in loan portfolio
Carrying Value	18,196,433		18,196,433		15,604,119
Total loans held-for-investment | First mortgage loan participation
Activity in loan portfolio
Carrying Value	15,174,120		15,174,120		12,991,099
Loans under fair value option
Activity in allowance for loan losses
Credit loss (reversal) provision, net			0	$ 0
Activity in loan portfolio
Balance at the beginning of the period			2,876,800	1,052,835
Acquisitions/originations/additional funding			3,793,467	3,151,361
Capitalized Interest			402	2,062
Basis of loans sold			(4,056,511)	(2,358,790)
Loan maturities/principal repayments			(146,184)	(250,662)
Discount accretion/premium amortization			0	504
Changes in fair value			(326,252)	66,279
Foreign currency translation gain/(loss), net			0	0
Credit loss reversal (provision), net			0	0
Loan foreclosure and conversion to equity interest				0
Transfer to/from other asset classifications or between segments			63,962	519,930
Balance at the end of the period	2,205,684	2,183,519	2,205,684	2,183,519
Carrying Value	2,205,684		2,205,684		2,876,800
Commercial Portfolio Segment
Activity in loan portfolio
Carrying Value	15,741,064		15,741,064
Commercial Portfolio Segment | Funded commitments
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			46,600
Credit loss (reversal) provision, net			18,262
Credit loss allowance at the end of the period	64,862		64,862
Activity in loan portfolio
Credit loss reversal (provision), net			(18,262)
Commercial Portfolio Segment | Loans Held-For-Investment
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			6,692
Credit loss (reversal) provision, net			(431)
Credit loss allowance at the end of the period	6,261		6,261
Unfunded commitments	2,463,418		2,463,418
Activity in loan portfolio
Credit loss reversal (provision), net			431
Commercial Portfolio Segment | Total loans held-for-investment
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			46,600
Credit loss (reversal) provision, net			18,262	(13,238)
Credit loss allowance at the end of the period	64,862		64,862
Activity in loan portfolio
Balance at the beginning of the period			13,450,198	9,583,949
Acquisitions/originations/additional funding			4,410,306	5,242,378
Capitalized Interest			85,454	89,830
Basis of loans sold			(6,330)	(243,378)
Loan maturities/principal repayments			(1,558,907)	(2,897,747)
Discount accretion/premium amortization			40,179	40,367
Changes in fair value			0	0
Foreign currency translation gain/(loss), net			(612,669)	(75,094)
Credit loss reversal (provision), net			(18,262)	13,238
Loan foreclosure and conversion to equity interest				(36,308)
Transfer to/from other asset classifications or between segments			(113,767)	(204,583)
Balance at the end of the period	15,676,202	11,512,652	15,676,202	11,512,652
Carrying Value	15,741,064		15,741,064		13,496,798
Infrastructure Portfolio Segment
Activity in loan portfolio
Carrying Value	2,402,193		2,402,193
Infrastructure Portfolio Segment | Funded commitments
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			20,670
Credit loss (reversal) provision, net			7,079
Credit loss allowance at the end of the period	27,749		27,749
Activity in loan portfolio
Credit loss reversal (provision), net			(7,079)
Infrastructure Portfolio Segment | Loans Held-For-Investment
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			145
Credit loss (reversal) provision, net			(145)
Credit loss allowance at the end of the period	0		0
Unfunded commitments	0		0
Activity in loan portfolio
Credit loss reversal (provision), net			145
Infrastructure Portfolio Segment | Total loans held-for-investment
Activity in allowance for loan losses
Credit loss allowance at beginning of the period			20,670
Credit loss (reversal) provision, net			7,079	1,124
Credit loss allowance at the end of the period	27,749		27,749
Activity in loan portfolio
Balance at the beginning of the period			2,027,426	1,412,440
Acquisitions/originations/additional funding			597,092	393,329
Capitalized Interest			373	0
Basis of loans sold			0	0
Loan maturities/principal repayments			(246,127)	(211,695)
Discount accretion/premium amortization			7,289	3,652
Changes in fair value			0	0
Foreign currency translation gain/(loss), net			(4,530)	(840)
Credit loss reversal (provision), net			(7,079)	(1,124)
Loan foreclosure and conversion to equity interest				0
Transfer to/from other asset classifications or between segments			0	93,085
Balance at the end of the period	2,374,444	1,688,847	2,374,444	1,688,847
Carrying Value	2,402,193		2,402,193		$ 2,048,096
Residential Portfolio Segment | First mortgage loan participation | New York
Activity in loan portfolio
Carrying Value						$ 29,000
Residential Portfolio Segment | 90 days or greater past due | Non-Credit Deterioration
Activity in loan portfolio
Carrying Value	31,300		31,300
Residential Portfolio Segment | Total loans held-for-investment
Activity in allowance for loan losses
Credit loss (reversal) provision, net			0	0
Activity in loan portfolio
Balance at the beginning of the period			59,225	90,684
Acquisitions/originations/additional funding			0	0
Capitalized Interest			1,445	2,068
Basis of loans sold			0	0
Loan maturities/principal repayments			(6,663)	(26,341)
Discount accretion/premium amortization			0	0
Changes in fair value			(485)	1,837
Foreign currency translation gain/(loss), net			0	0
Credit loss reversal (provision), net			0	0
Loan foreclosure and conversion to equity interest				0
Transfer to/from other asset classifications or between segments			(346)	23,251
Balance at the end of the period	$ 53,176	$ 91,499	$ 53,176	$ 91,499

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Investment Securities - Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Pledged Asset Carrying Value	$ 116,577	$ 143,980
Credit loss allowance	3,928	8,610
HTM debt securities	747,484	691,746
Total investment securities	890,128	860,984
VIE eliminations
Debt Securities, Available-for-sale [Line Items]
Equity security	(1,678,803)	(1,491,786)
CMBS
Debt Securities, Available-for-sale [Line Items]
Credit loss allowance	109	3,140
HTM debt securities	556,989	538,506
CMBS | Non- Controlling Interests
Debt Securities, Available-for-sale [Line Items]
Equity security	200,000	182,600
Before consolidation of securitization VIEs
Debt Securities, Available-for-sale [Line Items]
HTM debt securities	743,556	683,136
Equity security, fair value	9,343	11,624
Total investment securities	2,568,931	2,352,770
Before consolidation of securitization VIEs | RMBS
Debt Securities, Available-for-sale [Line Items]
Pledged Asset Carrying Value	116,577	143,980
Equity security	418,480	250,424
Before consolidation of securitization VIEs | CMBS
Debt Securities, Available-for-sale [Line Items]
Equity security	$ 1,280,975	$ 1,263,606

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Investment Securities - Purchases and Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	$ 0	$ 0	$ 86,058	$ 0
Sales	0	0	0	0
Principal collections	4,251	8,988	19,431	77,855
Redemptions		0		0
Held-to-maturity
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	0	0	86,058	0
Sales	0		0
Principal collections	609	752	2,549	53,321
Redemptions		0		0
VIE eliminations
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	0	(41,392)	(289,833)	(175,158)
Sales	0	(27,111)	0	(69,399)
Principal collections	(21,802)	(14,555)	(64,555)	(45,125)
Redemptions		(26,753)		(38,729)
RMBS | Available-for-sale
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	0	0	0	0
Sales	0	0	0	0
Principal collections	3,412	7,881	16,200	22,995
Redemptions		0		0
RMBS | Fair value option
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	0	33,009	226,152	112,693
Sales	0	0	0	30,684
Principal collections	16,914	14,204	58,843	42,235
Redemptions		26,753		38,729
CMBS | Fair value option
Debt Securities, Available-for-sale [Line Items]
Purchases/fundings	0	8,383	63,681	62,465
Sales	0	27,111	0	38,715
Principal collections	$ 5,118	706	$ 6,394	4,429
Redemptions		$ 0		$ 0

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Investment Securities - Available-for-Sale RMBS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 93,801	$ 103,027
Credit Loss Allowance	0	0
Net Basis	93,801	103,027
Gross Unrealized Gains	23,314	41,052
Gross Unrealized Losses	(538)	(99)
Net Fair Value Adjustment	22,776	40,953
Fair Value	$ 116,577	$ 143,980
One-month LIBOR | Available-for-sale
Debt Securities, Available-for-sale [Line Items]
Effective variable rate basis	3.143%
RMBS | B- Rating | Available-for-sale
Debt Securities, Available-for-sale [Line Items]
Weighted Average Coupon	3.70%
WAL (Years)	7 years 2 months 12 days

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Investment Securities - Narrative (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Dec. 31, 2012 shares	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Cost of third party management	$ 200,000	$ 300,000	$ 800,000	$ 900,000
Number of securities with unrealized losses | security	9		9			1
Fair value option
Debt Securities, Available-for-sale [Line Items]
Fair value of mortgage backed securities	$ 1,700,000,000		$ 1,700,000,000
SEREF
Debt Securities, Available-for-sale [Line Items]
Number of shares acquired (in shares) | shares					9,140,000
Equity security, fair value	9,300,000		$ 9,300,000			$ 11,600,000
Ownership percentage			2.00%
VIE eliminations
Debt Securities, Available-for-sale [Line Items]
Fair value of investment securities before consolidation of VIEs eliminated against VIE liabilities	20,700,000		$ 20,700,000
RMBS
Debt Securities, Available-for-sale [Line Items]
Portion of securities with variable rate	$ 102,600,000		$ 102,600,000
RMBS | Available-for-sale
Debt Securities, Available-for-sale [Line Items]
Portion of securities with variable rate (as a percent)	88.00%		88.00%
RMBS | Fair value option
Debt Securities, Available-for-sale [Line Items]
Portion of securities with variable rate	$ 0		$ 0
Unpaid principal balance of investment securities before consolidation of VIEs	326,300,000		326,300,000
Fair value of investment securities before consolidation of VIEs	418,500,000		418,500,000
CMBS | Fair value option
Debt Securities, Available-for-sale [Line Items]
Portion of securities with variable rate	97,100,000		97,100,000
Unpaid principal balance of investment securities before consolidation of VIEs	2,900,000,000		2,900,000,000
Fair value of investment securities before consolidation of VIEs	$ 1,300,000,000		$ 1,300,000,000

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Investment Securities - AFS and Fair Value Option (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Estimated Fair Value
Securities with a loss less than 12 months	$ 8,544	$ 2,478
Securities with a loss greater than 12 months	0	0
Unrealized Losses
Securities with a loss less than 12 months	(538)	(99)
Securities with a loss greater than 12 months	$ 0	$ 0

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Investment Securities - HTM (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
HTM Securities
Amortized Cost Basis	$ 747,484	$ 691,746
Credit Loss Allowance	(3,928)	(8,610)
Net Carrying Amount	743,556	683,136
Gross Unrealized Holding Gains	767	1,206
Gross Unrealized Holding Losses	(40,038)	(27,478)
Fair Value	704,285	656,864
Activity in credit loss allowance for HTM debt securities
Credit loss allowance at December 31, 2021	8,610
Credit loss (reversal) provision, net	(4,682)
Credit loss allowance at September 30, 2022	3,928
HTM preferred equity interests
Less than one year	404,882
One to three years	54,449
Three to five years	255,378
Thereafter	28,847
Total	743,556
CMBS
HTM Securities
Amortized Cost Basis	556,989	538,506
Credit Loss Allowance	(109)	(3,140)
Net Carrying Amount	556,880	535,366
Gross Unrealized Holding Gains	54	195
Gross Unrealized Holding Losses	(30,800)	(25,029)
Fair Value	526,134	510,532
Activity in credit loss allowance for HTM debt securities
Credit loss allowance at December 31, 2021	3,140
Credit loss (reversal) provision, net	(3,031)
Credit loss allowance at September 30, 2022	109
HTM preferred equity interests
Less than one year	314,060
One to three years	25,323
Three to five years	217,497
Thereafter	0
Total	556,880
Preferred interests
HTM Securities
Amortized Cost Basis	120,696	118,409
Credit Loss Allowance	(748)	(2,562)
Net Carrying Amount	119,948	115,847
Gross Unrealized Holding Gains	125	450
Gross Unrealized Holding Losses	(7,607)	(2,449)
Fair Value	112,466	113,848
Activity in credit loss allowance for HTM debt securities
Credit loss allowance at December 31, 2021	2,562
Credit loss (reversal) provision, net	(1,814)
Credit loss allowance at September 30, 2022	748
HTM preferred equity interests
Less than one year	90,822
One to three years	29,126
Three to five years	0
Thereafter	0
Total	119,948
Infrastructure bonds
HTM Securities
Amortized Cost Basis	69,799	34,831
Credit Loss Allowance	(3,071)	(2,908)
Net Carrying Amount	66,728	31,923
Gross Unrealized Holding Gains	588	561
Gross Unrealized Holding Losses	(1,631)	0
Fair Value	65,685	$ 32,484
Activity in credit loss allowance for HTM debt securities
Credit loss allowance at December 31, 2021	2,908
Credit loss (reversal) provision, net	163
Credit loss allowance at September 30, 2022	3,071
HTM preferred equity interests
Less than one year	0
One to three years	0
Three to five years	37,881
Thereafter	28,847
Total	$ 66,728

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Properties - Narrative (Details) ft² in Millions, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017 ft² property	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) property	Sep. 30, 2021 USD ($)	Dec. 31, 2016 ft² Item
Operating properties | Loan Transfers Accounted for as Sales
Real Estate Properties [Line Items]
Gain on sale of property				$ 9.7
Operating properties | Investing and Servicing Segment
Real Estate Properties [Line Items]
Proceeds from sale of operating properties		$ 19.5	$ 54.0	30.9
Gain on sale of property		13.7	$ 25.4
Number of properties sold | property			2
Gain on sale of property attributable to noncontrolling interest			$ 0.6
Operating properties | Montgomery Alabama | Loan Transfers Accounted for as Sales
Real Estate Properties [Line Items]
Proceeds from sale of operating properties			114.8	31.2
Gain on sale of property			86.6	17.7
Medical Office Portfolio
Real Estate Properties [Line Items]
Number of acquired properties closed | Item					34
Area of property | ft²					1.9
Total gross properties and lease intangibles		764.8	764.8
Debt		595.9	595.9
Master Lease Portfolio
Real Estate Properties [Line Items]
Total gross properties and lease intangibles		343.8	343.8
Debt		193.3	193.3
Number of retail properties acquired | property	16
Number of square feet of properties | ft²	1.9
Term of master lease agreements	24 years 7 months 6 days
Master Lease Portfolio | Minimum | Retail Properties | Geographic Concentration Risk | Utah, Florida, Texas and Minnesota
Real Estate Properties [Line Items]
Concentration risk (as a percent)	50.00%
REIS Equity Portfolio
Real Estate Properties [Line Items]
Total gross properties and lease intangibles		199.3	199.3
Debt		144.1	$ 144.1
Number of retail properties acquired | property			11
Number of equity interests in unconsolidated commercial real estate properties | property			1
REIS Equity Portfolio | Operating properties
Real Estate Properties [Line Items]
Proceeds from sale of operating properties		19.5	$ 54.0	30.9
Gain on sale of property		13.7	$ 25.4	$ 9.7
Number of properties sold | property			2
Commercial and Residential Lending Segment Property Portfolio
Real Estate Properties [Line Items]
Total gross properties and lease intangibles		231.4	$ 231.4
Debt		$ 87.8	$ 87.8

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Properties - Properties Held (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
Properties, cost	$ 1,418,728	$ 1,347,844
Less: accumulated depreciation	(201,302)	(181,457)
Properties, net	1,217,426	1,166,387
Property Segment
Real Estate Properties [Line Items]
Land and land improvements	175,856	175,810
Buildings and building improvements	853,238	851,274
Furniture & fixtures	$ 375	260
Property Segment | Minimum
Real Estate Properties [Line Items]
Land and land improvements, useful life	0 years
Building and building improvements, useful life	0 years
Furniture & fixtures, useful life	3 years
Property Segment | Maximum
Real Estate Properties [Line Items]
Land and land improvements, useful life	15 years
Building and building improvements, useful life	45 years
Furniture & fixtures, useful life	5 years
Investing and Servicing Segment
Real Estate Properties [Line Items]
Land and land improvements	$ 35,313	41,771
Buildings and building improvements	134,036	149,399
Furniture & fixtures	$ 3,253	3,143
Investing and Servicing Segment | Minimum
Real Estate Properties [Line Items]
Land and land improvements, useful life	0 years
Building and building improvements, useful life	3 years
Furniture & fixtures, useful life	2 years
Investing and Servicing Segment | Maximum
Real Estate Properties [Line Items]
Land and land improvements, useful life	15 years
Building and building improvements, useful life	40 years
Furniture & fixtures, useful life	5 years
Loan Transfers Accounted for as Sales
Real Estate Properties [Line Items]
Land and land improvements	$ 33,680	9,691
Buildings and building improvements	77,938	12,408
Construction in progress	$ 105,039	$ 104,088
Loan Transfers Accounted for as Sales | Minimum
Real Estate Properties [Line Items]
Building and building improvements, useful life	0 years
Loan Transfers Accounted for as Sales | Maximum
Real Estate Properties [Line Items]
Building and building improvements, useful life	24 years

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Investments of Consolidated Affordable Housing Fund - Narrative (Details) - Primary beneficiary $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) affordable_housing_community affordable_housing_unit	Dec. 31, 2018 affordable_housing_community	Dec. 31, 2017 affordable_housing_community	Dec. 31, 2016 affordable_housing_community	Dec. 31, 2015 affordable_housing_community	Dec. 31, 2021 USD ($)
Investments in and Advances to Affiliates [Line Items]
Investments of consolidated affordable housing fund, at fair value	$ 1,669,265					$ 1,040,309
Woodstar I Portfolio
Investments in and Advances to Affiliates [Line Items]
Number of affordable housing communities in portfolio | affordable_housing_community	32
Number of affordable housing units in portfolio | affordable_housing_unit	8,948
Number of affordable housing communities acquired in portfolio | affordable_housing_community				14	18
Investments of consolidated affordable housing fund, at fair value	$ 1,500,000
Debt fair value	$ 710,600
Woodstar II Portfolio
Investments in and Advances to Affiliates [Line Items]
Number of affordable housing communities in portfolio | affordable_housing_community	27
Number of affordable housing units in portfolio | affordable_housing_unit	6,109
Number of affordable housing communities acquired in portfolio | affordable_housing_community		19	8
Investments of consolidated affordable housing fund, at fair value	$ 1,300,000
Debt fair value	$ 479,000

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Investments of Consolidated Affordable Housing Fund - Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments in and Advances to Affiliates [Line Items]
Unrealized change in fair value of investments	$ 110,415		$ 628,956
Primary beneficiary
Investments in and Advances to Affiliates [Line Items]
Distributions from affordable housing fund investments	7,112		29,777
Income from affordable housing fund investments	$ 117,527	$ 0	$ 658,733	$ 0

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Investments in Unconsolidated Entities​ (Details)	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2021 USD ($) Item entity	Sep. 30, 2022 USD ($) investment Item	Sep. 30, 2022 USD ($) investment Item	Dec. 31, 2021 USD ($)
Equity method investments:
Equity method, Carrying value		$ 60,173,000	$ 60,173,000	$ 64,316,000
Other equity investments:
Other equity investments, carrying value		22,991,000	22,991,000	25,781,000
Investment in unconsolidated entities		$ 83,164,000	$ 83,164,000	90,097,000
Number of publicly traded investments | Item		0	0
Carrying value over (under) equity in net assets		$ 0	$ 0
Equity interest in a natural gas power plant
Equity method investments:
Equity method, Participation / Ownership %		10.00%	10.00%
Equity method, Carrying value		$ 28,886,000	$ 28,886,000	26,255,000
Investor entity which owns equity in an online real estate company
Equity method investments:
Equity method, Participation / Ownership %		50.00%	50.00%
Equity method, Carrying value		$ 5,365,000	$ 5,365,000	5,206,000
Equity interest in and advances to a residential mortgage originator
Equity method investments:
Equity method, Carrying value		10,999,000	10,999,000	20,327,000
Various
Equity method investments:
Equity method, Carrying value		$ 14,923,000	$ 14,923,000	12,528,000
Other equity investments:
Investment in unconsolidated entities	$ 7,300,000
Number of investor entities | entity	2
Number of shopping malls | Item	2
Equity interest in a servicing and advisory business
Other equity investments:
Cost method, Participation / Ownership %		2.00%	2.00%
Other equity investments, carrying value		$ 12,955,000	$ 12,955,000	12,955,000
Investment funds which own equity in a loan servicer and other real estate assets
Other equity investments:
Other equity investments, carrying value		940,000	940,000	4,194,000
Received a capital distribution		7,300,000	7,300,000
Decrease in equity securities related to proceeds		$ 3,300,000	$ 3,300,000
Number of investments | investment		2	2
Investor entities which own equity interests in two entertainment and retail centers
Other equity investments:
Cost method, Participation / Ownership %		15.00%	15.00%
Other equity investments, carrying value		$ 7,320,000	$ 7,320,000	7,320,000
Various
Other equity investments:
Other equity investments, carrying value		$ 1,776,000	$ 1,776,000	1,312,000
Subordinated Loans | Equity interest in and advances to a residential mortgage originator
Equity method investments:
Equity method, Carrying value				$ 4,500,000
Minimum | Various
Equity method investments:
Equity method, Participation / Ownership %		25.00%	25.00%
Minimum | Investment funds which own equity in a loan servicer and other real estate assets
Other equity investments:
Cost method, Participation / Ownership %		4.00%	4.00%
Minimum | Various
Other equity investments:
Cost method, Participation / Ownership %		1.00%	1.00%
Maximum | Various
Equity method investments:
Equity method, Participation / Ownership %		50.00%	50.00%
Maximum | Investment funds which own equity in a loan servicer and other real estate assets
Other equity investments:
Cost method, Participation / Ownership %		6.00%	6.00%
Maximum | Various
Other equity investments:
Cost method, Participation / Ownership %		3.00%	3.00%

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Goodwill and Intangibles - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 259,846	$ 259,846
Domestic servicing rights, at fair value | Before consolidation of securitization VIEs
Goodwill [Line Items]
Servicing rights intangibles	59,600	58,900
VIE eliminations | Domestic servicing rights, at fair value
Goodwill [Line Items]
Servicing rights intangibles	41,600	42,100
Infrastructure Lending Segment
Goodwill [Line Items]
Goodwill	119,400	119,400
Investing and Servicing Segment
Goodwill [Line Items]
Goodwill	$ 140,400	$ 140,400

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Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Gross Carrying Value	$ 145,113	$ 135,238
Accumulated Amortization	(72,017)	(71,674)
Net Carrying Value	73,096	63,564
In-place Lease Intangible Assets
Goodwill [Line Items]
Gross Carrying Value	100,450	94,712
Accumulated Amortization	(62,442)	(62,721)
Net Carrying Value	38,008	31,991
Favorable Lease Intangible Assets
Goodwill [Line Items]
Gross Carrying Value	26,649	23,746
Accumulated Amortization	(9,575)	(8,953)
Net Carrying Value	17,074	14,793
Domestic servicing rights, at fair value
Goodwill [Line Items]
Gross Carrying Value	18,014	16,780
Net Carrying Value	$ 18,014	$ 16,780

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Goodwill and Intangibles - Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Intangible Assets, Net (Excluding Goodwill) [Roll Forward]
Balance as of January 1, 2022	$ 63,564
Acquisition	15,430
Amortization	(6,524)
Impairment	(47)
Sales	(561)
Changes in fair value due to changes in inputs and assumptions	1,234
Balance as of September 30 , 2022	73,096
In-place Lease Intangible Assets
Intangible Assets, Net (Excluding Goodwill) [Roll Forward]
Balance as of January 1, 2022	31,991
Acquisition	11,910
Amortization	(5,327)
Impairment	(43)
Sales	(523)
Changes in fair value due to changes in inputs and assumptions	0
Balance as of September 30 , 2022	38,008
Favorable Lease Intangible Assets
Intangible Assets, Net (Excluding Goodwill) [Roll Forward]
Balance as of January 1, 2022	14,793
Acquisition	3,520
Amortization	(1,197)
Impairment	(4)
Sales	(38)
Changes in fair value due to changes in inputs and assumptions	0
Balance as of September 30 , 2022	17,074
Domestic servicing rights, at fair value
Intangible Assets, Net (Excluding Goodwill) [Roll Forward]
Balance as of January 1, 2022	16,780
Acquisition	0
Amortization	0
Impairment	0
Sales	0
Changes in fair value due to changes in inputs and assumptions	1,234
Balance as of September 30 , 2022	$ 18,014

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Goodwill and Intangibles - Future Expected Amortization (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (remainder of)	$ 2,390
2023	8,629
2024	6,932
2025	5,827
2026	4,301
Thereafter	27,003
Total	$ 55,082

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Secured Borrowings - Secured Financing Agreements (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Secured Borrowings
Pledged Asset Carrying Value	$ 116,577		$ 143,980
Secured financing agreements, net	13,495,902		12,576,850
Revolving credit facility
Secured Borrowings
Maximum borrowing capacity	150,000
Equity interests in certain subsidiaries used to secure facilities	5,000,000
Borrowing Base Facility
Secured Borrowings
Maximum Facility Size	650,000
Maximum facility size subject to certain conditions	750,000
Borrowing Base Facility | Forecast
Secured Borrowings
Maximum Facility Size		$ 450,000
Commercial Financing Facilities
Secured Borrowings
Maximum Facility Size	$ 345,300
Property Mortgages - Fixed rate
Secured Borrowings
Maturity period	4 years 9 months 18 days
Term Loan Facility
Secured Borrowings
Maximum borrowing capacity	$ 782,800
Floor interest rate (as a percent)	0.75%
SOFR | Revolving credit facility
Secured Borrowings
Coupon Rate	2.50%
LIBOR + 2.50% | Term Loan Facility
Secured Borrowings
Pricing margin	2.50%
Maximum borrowing capacity	$ 388,000
LIBOR + 3.25% | Term Loan Facility
Secured Borrowings
Pricing margin	3.25%
Maximum borrowing capacity	$ 394,800
Secured Borrowings
Secured Borrowings
Maximum Facility Size	22,095,211
Long term debt, gross	13,576,572		12,654,420
Unamortized net discount	(13,281)		(13,350)
Unamortized deferred financing costs	(67,389)		(64,220)
Secured financing agreements, net	13,495,902		12,576,850
Secured Borrowings | Borrowing Base Facility
Secured Borrowings
Maximum Facility Size	750,000
Long term debt, gross	2,000		213,478
Secured Borrowings | Commercial Financing Facilities
Secured Borrowings
Maximum Facility Size	445,295
Long term debt, gross	271,918		167,476
Secured Borrowings | Residential Financing Facility
Secured Borrowings
Maximum Facility Size	500,000
Long term debt, gross	179,418		102,018
Secured Borrowings | Infrastructure Financing Facilities
Secured Borrowings
Maximum Facility Size	1,550,000
Long term debt, gross	$ 790,995		855,646
Secured Borrowings | Property Mortgages - Fixed rate
Secured Borrowings
Coupon Rate	4.48%
Maximum Facility Size	$ 275,800
Long term debt, gross	275,800		272,522
Secured Borrowings | Property Mortgages - Variable rate
Secured Borrowings
Maximum Facility Size	733,750
Long term debt, gross	730,315		712,493
Secured Borrowings | Term Loan and Revolver
Secured Borrowings
Maximum Facility Size	932,763
Long term debt, gross	782,763		788,753
Secured Borrowings | Total Other Secured Financing
Secured Borrowings
Maximum Facility Size	5,187,608
Long term debt, gross	3,033,209		3,112,386
Secured Borrowings | First Mortgage and Mezzanine
Secured Borrowings
Long term debt, gross	600,000
Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	17,500,969
Secured Borrowings | Asset Pledged as Collateral | Borrowing Base Facility
Secured Borrowings
Pledged Asset Carrying Value	23,226
Secured Borrowings | Asset Pledged as Collateral | Commercial Financing Facilities
Secured Borrowings
Pledged Asset Carrying Value	348,619
Secured Borrowings | Asset Pledged as Collateral | Residential Financing Facility
Secured Borrowings
Pledged Asset Carrying Value	545,450
Secured Borrowings | Asset Pledged as Collateral | Infrastructure Financing Facilities
Secured Borrowings
Pledged Asset Carrying Value	1,002,010
Secured Borrowings | Asset Pledged as Collateral | Property Mortgages - Fixed rate
Secured Borrowings
Pledged Asset Carrying Value	381,440
Secured Borrowings | Asset Pledged as Collateral | Property Mortgages - Variable rate
Secured Borrowings
Pledged Asset Carrying Value	767,293
Secured Borrowings | Asset Pledged as Collateral | Total Other Secured Financing
Secured Borrowings
Pledged Asset Carrying Value	$ 3,068,038
Secured Borrowings | LIBOR | First Mortgage and Mezzanine
Secured Borrowings
Coupon Rate	3.34%
Secured Borrowings | LIBOR | First Mortgage and Mezzanine | Weighted-average
Secured Borrowings
Pricing margin	2.07%
Secured Borrowings | Index | Commercial Financing Facilities
Secured Borrowings
Pricing margin	1.77%
Secured Borrowings | Index | Infrastructure Financing Facilities
Secured Borrowings
Pricing margin	2.16%
Secured Borrowings | SOFR | Borrowing Base Facility
Secured Borrowings
Pricing margin	2.11%
Secured Borrowings | SOFR | Residential Financing Facility
Secured Borrowings
Pricing margin	2.45%
Line of Credit | Commercial Financing Facilities
Secured Borrowings
Line of credit capacity if conditions are met	$ 445,300
Commercial Loans
Secured Borrowings
Maximum Facility Size	11,700,000
Secured financing agreements, net	2,700,000
Line of credit capacity if conditions are met	$ 12,300,000
Commercial Loans | Index | Weighted-average
Secured Borrowings
Pricing margin	2.26%
Commercial Loans | Secured Borrowings
Secured Borrowings
Maximum Facility Size	$ 12,291,964
Long term debt, gross	7,971,502		6,556,438
Commercial Loans | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	$ 10,854,556
Commercial Loans | Secured Borrowings | Index
Secured Borrowings
Pricing margin	2.09%
Residential Loans | Secured Borrowings
Secured Borrowings
Maximum Facility Size	$ 2,502,614
Long term debt, gross	1,407,163		1,744,225
Residential Loans | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	$ 1,633,554
Residential Loans | Secured Borrowings | Index
Secured Borrowings
Pricing margin	2.10%
Infrastructure Loans | Secured Borrowings
Secured Borrowings
Maximum Facility Size	$ 650,000
Long term debt, gross	316,737		379,095
Infrastructure Loans | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	$ 379,346
Infrastructure Loans | Secured Borrowings | SOFR
Secured Borrowings
Pricing margin	2.07%
Conduit Loans | Secured Borrowings
Secured Borrowings
Maximum Facility Size	$ 350,000
Long term debt, gross	60,941		174,130
Conduit Loans | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	$ 79,857
Conduit Loans | Secured Borrowings | SOFR
Secured Borrowings
Pricing margin	2.28%
CMBS/RMBS
Secured Borrowings
Coupon Rate	3.27%
Secured financing agreements, net	$ 263,900
Amount outstanding on a repurchase facility not subject to margin calls	263,900
Amount outstanding on repurchase facility	$ 43,200
Pro rata share owned by a non-controlling partner in a consolidated joint venture	49.00%
CMBS/RMBS | Certain Facilities
Secured Borrowings
Secured financing agreements, net	$ 368,900
Rolling maturity period	11 months
Maturity period	12 months
CMBS/RMBS | Index | Weighted-average
Secured Borrowings
Coupon Rate	1.96%
CMBS/RMBS | Secured Borrowings
Secured Borrowings
Maximum Facility Size	$ 1,113,025
Long term debt, gross	787,020		688,146
CMBS/RMBS | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	1,485,618
Total Repurchase Agreements | Secured Borrowings
Secured Borrowings
Maximum Facility Size	16,907,603
Long term debt, gross	10,543,363		$ 9,542,034
Total Repurchase Agreements | Secured Borrowings | Asset Pledged as Collateral
Secured Borrowings
Pledged Asset Carrying Value	$ 14,432,931

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Secured Borrowings - Narrative (Details)	1 Months Ended					3 Months Ended		9 Months Ended
	Jun. 30, 2022 USD ($) extension	Mar. 31, 2022 USD ($)	Feb. 28, 2022 USD ($)	Jan. 31, 2022 USD ($)	Jul. 31, 2021 USD ($) hotel	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	May 31, 2021 USD ($)	Apr. 30, 2021 USD ($)	Aug. 31, 2019 USD ($)
Secured Borrowings
Principal amount of notes purchased by third-party investors					$ 210,100,000
RMBS
Secured Borrowings
Securitizations of loans					$ 230,000,000
Number of hotels | hotel					41
Residential Loan Credit Facility
Secured Borrowings
Maximum borrowing capacity		$ 500,000,000	$ 250,000,000
Initial maturity extension		18 months
Extension term		3 years
STWD 2022-FL3
Secured Borrowings
Face Amount			1,000,000,000
Principal amount of notes purchased by third-party investors			842,500,000
Long term debt, gross			82,500,000
Liquidation preference			$ 75,000,000
CLO contribution period			2 years
Additional contribution to CLO						$ 72,000,000		$ 72,000,000
STWD 2021-FL2
Secured Borrowings
Face Amount											$ 1,300,000,000
Principal amount of notes purchased by third-party investors											1,100,000,000
Long term debt, gross											70,100,000
Liquidation preference											$ 127,500,000
Additional contribution to CLO								241,200,000
STWD 2019-FL1
Secured Borrowings
Face Amount													$ 1,100,000,000
Principal amount of notes purchased by third-party investors													936,400,000
Long term debt, gross													86,600,000
Liquidation preference													$ 77,000,000
Repayments of debt								180,900,000
STWD 2021-SIF2
Secured Borrowings
Face Amount				$ 500,000,000
Principal amount of notes purchased by third-party investors				410,000,000
Liquidation preference				$ 90,000,000
CLO contribution period				3 years
Additional contribution to CLO								101,400,000
STWD 2021-SIF1
Secured Borrowings
Face Amount												$ 500,000,000
Principal amount of notes purchased by third-party investors												410,000,000
Liquidation preference												$ 90,000,000
Additional contribution to CLO								76,300,000
CLOs and SASB
Secured Borrowings
Amortization of deferred financing costs						2,700,000	$ 1,800,000	7,800,000	$ 3,900,000
Incurred debt issuance costs								37,900,000
Deferred financing costs, net of amortization						21,000,000		21,000,000		$ 17,700,000
Morgan Stanley Bank, N.A.
Secured Borrowings
Amount at risk						$ 694,600,000		$ 694,600,000
Weighted average extended maturities								3 years 9 months 18 days
Line of Credit | Infrastructure Credit Facility
Secured Borrowings
Maximum borrowing capacity	$ 500,000,000
Extension term	1 year
Maturity period	3 years
Number of extensions | extension	2
Line of Credit | Commercial Loans Repurchase Facilities
Secured Borrowings
Increase in borrowing capacity, new facilities								$ 1,400,000,000
Increase in borrowing capacity, existing facilities								$ 974,700,000
Repurchase Agreements
Secured Borrowings
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks						71.00%		71.00%
Percentage of repurchase agreements containing margin call provisions for general capital market activity						29.00%		29.00%
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale						7.00%		7.00%
Secured Borrowings
Secured Borrowings
Amortization of deferred financing costs						$ 9,500,000	$ 8,600,000	$ 28,300,000	$ 26,900,000
Long term debt, gross						$ 13,576,572,000		$ 13,576,572,000		$ 12,654,420,000

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Secured Borrowings - Collateralized Loan Obligations (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) Item	Dec. 31, 2021 USD ($) Item	Feb. 28, 2022 USD ($)	Jan. 31, 2022 USD ($)	May 31, 2021 USD ($)	Apr. 30, 2021 USD ($)	Aug. 31, 2019 USD ($)
Summary of CLO
Carrying Value	$ 3,690,996	$ 2,616,116
Collateral assets
Summary of CLO
Face Amount	4,403,628	3,086,319
Carrying Value	4,462,305	3,120,444
Financing
Summary of CLO
Face Amount	3,705,448	2,633,841
Carrying Value	$ 3,690,996	$ 2,616,116
STWD 2022-FL3
Summary of CLO
Face Amount			$ 1,000,000
STWD 2022-FL3 | Collateral assets
Summary of CLO
Count | Item	46
Face Amount	$ 992,000
Carrying Value	$ 1,010,268
STWD 2022-FL3 | Financing
Summary of CLO
Count | Item	1
Face Amount	$ 842,500
Carrying Value	$ 843,028
STWD 2022-FL3 | Index | Collateral assets
Summary of CLO
Weighted Average Spread	3.55%
STWD 2022-FL3 | SOFR | Financing
Summary of CLO
Weighted Average Spread	1.91%
STWD 2021-SIF2
Summary of CLO
Face Amount				$ 500,000
Percent of outstanding loan	5.00%
Debt, weighted average interest rate	7.75%
STWD 2021-SIF2 | Collateral assets
Summary of CLO
Count | Item	31
Face Amount	$ 492,805
Carrying Value	$ 508,186
STWD 2021-SIF2 | Financing
Summary of CLO
Count | Item	1
Face Amount	$ 410,000
Carrying Value	$ 407,034
STWD 2021-SIF2 | LIBOR | Collateral assets
Summary of CLO
Weighted Average Spread	3.72%
STWD 2021-SIF2 | SOFR | Financing
Summary of CLO
Weighted Average Spread	2.11%
STWD 2021-HTS | Collateral assets
Summary of CLO
Count | Item	1	1
Face Amount	$ 230,000	$ 230,000
Carrying Value	$ 230,923	$ 230,587
STWD 2021-HTS | Financing
Summary of CLO
Count | Item	1	1
Face Amount	$ 210,091	$ 210,091
Carrying Value	$ 208,735	$ 208,057
STWD 2021-HTS | LIBOR | Collateral assets
Summary of CLO
Weighted Average Spread	3.84%	4.12%
STWD 2021-HTS | LIBOR | Financing
Summary of CLO
Weighted Average Spread	2.69%	2.48%
STWD 2021-FL2
Summary of CLO
Face Amount					$ 1,300,000
Percent of outstanding loan	7.00%
Debt, weighted average interest rate	7.42%
STWD 2021-FL2 | Collateral assets
Summary of CLO
Count | Item	26	25
Face Amount	$ 1,276,650	$ 1,272,133
Carrying Value	$ 1,282,627	$ 1,279,678
STWD 2021-FL2 | Financing
Summary of CLO
Count | Item	1	1
Face Amount	$ 1,077,375	$ 1,077,375
Carrying Value	$ 1,071,725	$ 1,069,691
STWD 2021-FL2 | Index | Collateral assets
Summary of CLO
Weighted Average Spread	4.11%
STWD 2021-FL2 | LIBOR | Collateral assets
Summary of CLO
Weighted Average Spread		4.22%
STWD 2021-FL2 | LIBOR | Financing
Summary of CLO
Weighted Average Spread	1.78%	1.78%
STWD 2019-FL1
Summary of CLO
Face Amount							$ 1,100,000
STWD 2019-FL1 | Collateral assets
Summary of CLO
Count | Item	16	24
Face Amount	$ 919,107	$ 1,092,887
Carrying Value	$ 921,634	$ 1,103,513
STWD 2019-FL1 | Financing
Summary of CLO
Count | Item	1	1
Face Amount	$ 755,482	$ 936,375
Carrying Value	$ 754,079	$ 933,049
STWD 2019-FL1 | LIBOR | Collateral assets
Summary of CLO
Weighted Average Spread	3.76%	4.19%
STWD 2019-FL1 | SOFR | Financing
Summary of CLO
Weighted Average Spread	1.65%	1.63%
STWD 2021-SIF1
Summary of CLO
Face Amount						$ 500,000
Percent of outstanding loan	3.00%
Debt, weighted average interest rate	6.01%
STWD 2021-SIF1 | Collateral assets
Summary of CLO
Count | Item	31	31
Face Amount	$ 493,066	$ 491,299
Carrying Value	$ 508,667	$ 506,666
STWD 2021-SIF1 | Financing
Summary of CLO
Count | Item	1	1
Face Amount	$ 410,000	$ 410,000
Carrying Value	$ 406,395	$ 405,319
STWD 2021-SIF1 | Index | Collateral assets
Summary of CLO
Weighted Average Spread	3.73%
STWD 2021-SIF1 | LIBOR | Collateral assets
Summary of CLO
Weighted Average Spread		3.91%
STWD 2021-SIF1 | LIBOR | Financing
Summary of CLO
Weighted Average Spread	2.15%	2.15%

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Secured Borrowings - Principal Repayments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
CLOs and SASB
Repayment of secured financings
2022 (remainder of)	$ 106,346
2023	675,675
2024	432,055
2025	741,493
2026	1,588,716
Thereafter	161,163
Total	3,705,448
Secured Borrowings
Repayment of secured financings
2022 (remainder of)	381,375
2023	3,501,734
2024	1,597,968
2025	2,976,688
2026	5,416,710
Thereafter	3,407,545
Total	17,282,020
Repurchase Agreements
Repayment of secured financings
2022 (remainder of)	267,383
2023	2,095,210
2024	1,041,311
2025	1,960,316
2026	2,832,539
Thereafter	2,346,604
Total	10,543,363
Other Secured Financing
Repayment of secured financings
2022 (remainder of)	7,646
2023	730,849
2024	124,602
2025	274,879
2026	995,455
Thereafter	899,778
Total	$ 3,033,209

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Unsecured Senior Notes - Unsecured Convertible Senior Notes Outstanding (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Jan. 25, 2022	Dec. 31, 2021	Mar. 29, 2017
Unsecured Senior Notes
Total carrying amount	$ 2,326,988		$ 1,828,590
Unsecured Senior Notes
Unsecured Senior Notes
Long term debt, gross	2,350,000		1,850,000
Unamortized deferred financing costs	(12,823)		(10,765)
Unamortized discount—Convertible Notes
Unsecured Senior Notes
Unamortized discount	(235)		(578)
Unamortized discount—Senior Notes
Unsecured Senior Notes
Unamortized discount	$ (9,954)		(10,067)
2023 Senior Notes
Unsecured Senior Notes
Coupon Rate	5.50%
Effective Rate	5.71%
Remaining Period of Amortization	1 year 1 month 6 days
Long term debt, gross	$ 300,000		300,000
2023 Convertible Notes
Unsecured Senior Notes
Coupon Rate	4.38%			4.375%
Effective Rate	4.57%
Remaining Period of Amortization	6 months
Long term debt, gross	$ 250,000		250,000
2024 Senior Notes
Unsecured Senior Notes
Coupon Rate	3.75%
Effective Rate	3.94%
Remaining Period of Amortization	2 years 3 months 18 days
Long term debt, gross	$ 400,000		400,000
2025 Senior Notes
Unsecured Senior Notes
Coupon Rate	4.75%
Effective Rate	5.04%
Remaining Period of Amortization	2 years 6 months
Long term debt, gross	$ 500,000		500,000
2026 Senior Notes
Unsecured Senior Notes
Coupon Rate	3.63%
Effective Rate	3.77%
Remaining Period of Amortization	3 years 9 months 18 days
Long term debt, gross	$ 400,000		400,000
2027 Senior Notes
Unsecured Senior Notes
Coupon Rate	4.375%	4.375%
Effective Rate	4.49%
Remaining Period of Amortization	4 years 3 months 18 days
Long term debt, gross	$ 500,000		$ 0
LIBOR | 2025 Senior Notes
Unsecured Senior Notes
Long term debt, gross	$ 470,000
Pricing margin	2.53%
SOFR | 2027 Senior Notes
Unsecured Senior Notes
Pricing margin	2.95%

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Unsecured Senior Notes - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
	Jan. 25, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 29, 2017
Unsecured Senior Notes
Interest expense		$ 222,423,000	$ 115,531,000	$ 501,492,000	$ 328,558,000
Closing share price (in dollars per share)		$ 18.22		$ 18.22
Convertible Senior Notes
Unsecured Senior Notes
Interest expense		$ 2,900,000	$ 2,900,000	$ 8,700,000	$ 8,700,000
2027 Senior Notes
Unsecured Senior Notes
Face amount	$ 500,000,000
Coupon rate	4.375%	4.375%		4.375%
2027 Senior Notes | Redemption period one
Unsecured Senior Notes
Redemption percentage	100.00%
2027 Senior Notes | Redemption period two
Unsecured Senior Notes
Redemption percentage	100.00%
2027 Senior Notes | Redemption period three
Unsecured Senior Notes
Redemption percentage	40.00%
2023 Convertible Notes
Unsecured Senior Notes
Face amount						$ 250,000,000
Coupon rate		4.38%		4.38%		4.375%
Amount by which if-converted value of the Notes are less than principal amount				$ 74,200,000
Conversion price (in dollars per share)		$ 25.91		$ 25.91
If-converted value		$ 175,800,000		$ 175,800,000
Convertible notes carrying value		249,700,000		249,700,000
Convertible notes fair value		$ 245,000,000		$ 245,000,000

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Unsecured Senior Notes - Conversion Attributes on Convertible Notes Outstanding (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares
Unsecured Senior Notes
Principal amount of notes, basis for conversion | $	$ 1,000
Closing share price (in dollars per share)	$ 18.22
2023 Convertible Notes
Unsecured Senior Notes
Conversion Rate	38.5959
Conversion price (in dollars per share)	$ 25.91

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Loan Securitization/Sale Activities - Loans (Details) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2022	Feb. 28, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investing and Servicing Segment | Commercial Loans
Loan Transfer Activities
Face Amount			$ 33,000,000	$ 349,225,000	$ 1,038,889,000	$ 738,866,000
Proceeds			30,957,000	364,287,000	1,022,754,000	775,374,000
Investing and Servicing Segment | Residential Loans
Loan Transfer Activities
Face Amount			0	469,663,000	1,905,829,000	1,417,641,000
Proceeds			0	491,901,000	1,913,459,000	1,465,576,000
Loan Transfers Accounted for as Sales | Commercial Loans
Loan Transfers Accounted for as Sales
Face amount			63,656,000	35,700,000	70,636,000	268,370,000
Proceeds			64,539,000	35,356,000	71,008,000	264,846,000
Loan Transfers Accounted for as Sales | Residential Loans
Loan Transfers Accounted for as Sales
Face amount			1,152,000	0	1,057,013,000	89,801,000
Proceeds			1,141,000	0	1,056,683,000	92,817,000
Loan Transfers Accounted for as Sales | Residential Loans | Agency-Eligible Residential Loan
Loan Transfers Accounted for as Sales
Face amount		$ 745,000,000
Financing term	120 days
Estimate of disposition strategy on loans			88,400,000		88,400,000
Contingency expense			55,700,000		88,400,000
First Mortgage Loans
Loan Transfers Accounted for as Sales
Face amount				35,700,000	7,000,000	245,800,000
Proceeds from sale of mortgage loans				35,400,000	6,500,000	243,300,000
Whole Loan Interest
Loan Transfers Accounted for as Sales
Face amount			63,700,000		63,700,000	22,600,000
Proceeds from sale of mortgage loans			64,500,000		64,500,000	21,500,000
Infrastructure Lending Segment
Loan Transfer Activities
Face Amount			$ 0	$ 0	$ 0	2,500,000
Proceeds						$ 2,500,000

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Loan Securitization/Sale Activities - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Loan Transfers Accounted for as Sales
Loan Transfer Activities
Net gains (losses) on the sale of loan qualifying for sales treatment	$ (300,000)	$ 0	$ (100,000)	$ (1,100,000)
Infrastructure Lending Segment
Loan Transfer Activities
Net gains (losses) on the sale of loan qualifying for sales treatment				0
Loans held-for-sale face amount	$ 0	$ 0	$ 0	2,500,000
Proceeds				$ 2,500,000

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Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) € in Thousands, £ in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands	Sep. 30, 2022 EUR (€) contract	Sep. 30, 2022 GBP (£) contract	Sep. 30, 2022 AUD ($) contract	Sep. 30, 2022 CHF (SFr) contract	Sep. 30, 2022 USD ($) contract
Derivatives
Number of Contracts	637	637	637	637	637
Foreign exchange contracts | EUR | Long
Derivatives
Number of Contracts	17	17	17	17	17
Aggregate Notional Amount | €	€ 65,538
Foreign exchange contracts | EUR | Short
Derivatives
Number of Contracts	226	226	226	226	226
Aggregate Notional Amount | €	€ 655,523
Foreign exchange contracts | GBP | Long
Derivatives
Number of Contracts	6	6	6	6	6
Aggregate Notional Amount | £		£ 46,517
Foreign exchange contracts | GBP | Short
Derivatives
Number of Contracts	208	208	208	208	208
Aggregate Notional Amount | £		£ 621,465
Foreign exchange contracts | AUD | Long
Derivatives
Number of Contracts	3	3	3	3	3
Aggregate Notional Amount | $			$ 5,008
Foreign exchange contracts | AUD | Short
Derivatives
Number of Contracts	94	94	94	94	94
Aggregate Notional Amount | $			$ 672,142
Foreign exchange contracts | CHF | Short
Derivatives
Number of Contracts	27	27	27	27	27
Aggregate Notional Amount | SFr				SFr 15,128
Interest rate swaps – Paying fixed rates | USD
Derivatives
Number of Contracts	40	40	40	40	40
Aggregate Notional Amount | $					$ 3,505,347
Interest rate swaps – Receiving fixed rates | USD
Derivatives
Number of Contracts	2	2	2	2	2
Aggregate Notional Amount | $					$ 970,000
Interest rate caps | GBP
Derivatives
Number of Contracts	1	1	1	1	1
Aggregate Notional Amount | £		£ 61,000
Interest rate caps | USD
Derivatives
Number of Contracts	6	6	6	6	6
Aggregate Notional Amount | $					$ 758,000
Credit instruments | USD
Derivatives
Number of Contracts	3	3	3	3	3
Aggregate Notional Amount | $					$ 49,000
Interest rate swap guarantees | USD
Derivatives
Number of Contracts	4	4	4	4	4
Aggregate Notional Amount | $					$ 267,162

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Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	$ 251,171	$ 48,216
Fair Value of Derivatives in a Liability Position	82,766	13,421
Interest rate contracts
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	7,888	17,728
Fair Value of Derivatives in a Liability Position	73,600	16
Interest rate swap guarantees
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	0	0
Fair Value of Derivatives in a Liability Position	0	260
Foreign exchange contracts
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	242,398	30,478
Fair Value of Derivatives in a Liability Position	9,166	12,870
Credit instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	885	10
Fair Value of Derivatives in a Liability Position	$ 0	$ 275

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Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivatives
Gain on derivative financial instruments, net	$ 206,070	$ 41,812	$ 461,921	$ 65,792
Interest rate contracts
Derivatives
Gain on derivative financial instruments, net	78,508	7,993	218,698	20,808
Interest rate swap guarantees
Derivatives
Gain on derivative financial instruments, net	0	(65)	260	431
Foreign exchange contracts
Derivatives
Gain on derivative financial instruments, net	127,358	33,796	242,042	44,857
Credit instruments
Derivatives
Gain on derivative financial instruments, net	$ 204	$ 88	$ 921	$ (304)

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Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivative assets
Gross Amounts Recognized	$ 251,171	$ 48,216
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	251,171	48,216
Derivative Assets, Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	82,766	12,870
Derivative Assets, Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received/Pledged	52,317	21,290
Total net derivative assets	116,088	14,056
Derivative liabilities
Gross Amounts Recognized	82,766	13,421
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	82,766	13,421
Derivative Liabilities, Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	82,766	12,870
Derivative Liabilities, Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received/Pledged	0	291
Total net derivative liabilities	0	260
Repurchase agreements
Gross Amounts Recognized	10,543,363	9,542,034
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	10,543,363	9,542,034
Repurchase Agreements, Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	10,543,363	9,542,034
Repurchase Agreements, Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received/Pledged	0	0
Total net repurchase agreements	0	0
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract]
Gross Amounts Recognized	10,626,129	9,555,455
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	10,626,129	9,555,455
Liabilities, Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	10,626,129	9,554,904
Liabilities, Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received/Pledged	0	291
Total net liabilities	$ 0	$ 260

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Variable Interest Entities - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) collateralized_loan_obligation loan	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Variable interest entities
Number of CLOs | collateralized_loan_obligation	5
Number of SASBs | loan	1
VIE assets	$ 80,002,858,000		$ 83,850,397,000
VIE liabilities	72,837,300,000		77,201,590,000
Temporary equity	344,373,000	$ 322,753,000	214,915,000	$ 0	$ 0	$ 0
Investments in unconsolidated entities	$ 83,164,000		$ 90,097,000
CMBS JV
Variable interest entities
Ownership percentage	51.00%
Primary beneficiary
Variable interest entities
VIE assets	$ 76,600,000
VIE liabilities	34,400,000
Primary beneficiary | CMBS Venture Holdings
Variable interest entities
VIE assets	369,500,000
VIE liabilities	89,000,000
Primary beneficiary | SPT Dolphin
Variable interest entities
VIE assets	1,700,000,000
VIE liabilities	0
Primary beneficiary | Woodstar Feeder Fund, L.P.
Variable interest entities
VIE assets	500,000,000
VIE liabilities	0
Temporary equity	300,000,000
Not primary beneficiary
Variable interest entities
Maximum risk of loss related to VIEs, on fair value basis	20,700,000
Not primary beneficiary | Measurement Period Adjustments
Variable interest entities
Investments in unconsolidated entities	11,900,000
Not primary beneficiary | Securitization SPEs
Variable interest entities
Long term debt, gross	$ 4,700,000,000

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Variable Interest Entities - Assets and Liabilities of Consolidated CLO (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 339,710	$ 217,362
Loans held-for-investment	20,402,117	18,480,919
Investment securities	890,128	860,984
Accrued interest receivable	154,148	116,262
Other assets	418,458	188,626
Total Assets	80,002,858	83,850,397
Liabilities
Accounts payable, accrued expenses and other liabilities	562,461	189,696
Carrying Value	3,690,996	2,616,116
Total Liabilities	72,837,300	77,201,590
Loans held for investment
Assets:
Loans held-for-investment	18,196,433	15,604,119
Primary beneficiary
Assets:
Total Assets	76,600
Liabilities
Total Liabilities	34,400
CLOs and SASB | Primary beneficiary
Assets:
Cash and cash equivalents	39,924	15,297
Investment securities	36,934	11,426
Accrued interest receivable	15,848	8,936
Other assets	62	11,213
Total Assets	4,462,305	3,120,444
Liabilities
Accounts payable, accrued expenses and other liabilities	13,153	3,335
Carrying Value	3,690,996	2,616,116
Total Liabilities	3,704,149	2,619,451
CLOs and SASB | Primary beneficiary | Loans held for investment
Assets:
Loans held-for-investment	$ 4,369,537	$ 3,073,572

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Related-Party Transactions - Management Agreement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related-Party Transactions
Granted (in shares)			829,805
2022 Manager Equity Plan
Related-Party Transactions
Granted (in shares)			0
Employee Stock
Related-Party Transactions
Share-based expense	$ 100,000		$ 100,000
S P T Management L L C
Related-Party Transactions
Management fee expense	21,700,000	$ 19,200,000	64,900,000	$ 57,500,000
Base management fee payable	21,700,000		21,700,000		$ 20,300,000
Accrued incentive fee	900,000	1,000,000	35,100,000	19,100,000
Unpaid incentive fee	900,000		900,000		51,200,000
Executive compensation expense	2,800,000	$ 1,800,000	6,400,000	$ 4,800,000
Unpaid reimbursable compensation	$ 3,500,000		$ 3,500,000		$ 4,900,000
S P T Management L L C | Restricted Stock Awards
Related-Party Transactions
Granted (in shares)	0	0	200,972	981,951
Grant date values			$ 4,800,000	$ 19,600,000
Share-based expense	$ 1,900,000	$ 2,200,000	$ 6,800,000	$ 6,700,000
S P T Management L L C | Restricted Stock Awards | 2022 Manager Equity Plan
Related-Party Transactions
Award vesting period			3 years
S P T Management L L C | Employee Stock
Related-Party Transactions
Share-based expense	$ 0		$ 0

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Related-Party Transactions - Manager Equity Plan (Details) - USD ($) $ in Millions	1 Months Ended			3 Months Ended		9 Months Ended
	Nov. 30, 2020	Sep. 30, 2019	Apr. 30, 2018	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related-Party Transactions
Granted (in shares)						829,805
2022 Manager Equity Plan
Related-Party Transactions
Granted (in shares)						0
Restricted stock units | 2022 Manager Equity Plan
Related-Party Transactions
Granted (in shares)	1,800,000	1,200,000	775,000
Share-based expense				$ 4.5	$ 4.5	$ 13.5	$ 14.9

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Related-Party Transactions - Investments in Loans and Securities (Details)	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2022 USD ($) Item	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Related-Party Transactions
Acquisitions/originations/additional funding			$ 8,800,865,000	$ 8,787,068,000
First mortgage loan participation
Related-Party Transactions
Repayments of mortgage loans on real estate	$ 99,000,000
Affiliated Entity | Residential Mortgage Originator
Related-Party Transactions
Proceeds from sale of receivables		$ 0	4,400,000
Affiliated Entity | Residential Mortgage Originator | Residential Loans
Related-Party Transactions
Acquisitions/originations/additional funding		118,900,000	1,100,000,000
Loan purchase commitment		51,600,000	51,600,000
Development and Recapitalization of Luxury Rental Cabins | Affiliated Entity
Related-Party Transactions
Loans payable		$ 120,400,000	$ 120,400,000
Loan number of extension options | Item	3
Loan extension term	1 year
Development and Recapitalization of Luxury Rental Cabins | Affiliated Entity | SOFR
Related-Party Transactions
Loans payable, basis spread	6.50%
Loans Payable | Development and Recapitalization of Luxury Rental Cabins | Affiliated Entity
Related-Party Transactions
Face amount	$ 200,000,000
Maturity period	24 months

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Related-Party Transactions - Lease Arrangements (Details) - Office Lease Agreement with Affiliate of Chairman and CEO - Affiliates of Chairman and CEO $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2022 ft² $ / sqft	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jul. 01, 2022 USD ($)	Apr. 30, 2020 USD ($)
Related-Party Transactions
Area of office space | ft²	64,424
Term of master lease agreements	15 years	15 years	15 years
Annual base rent (in usd per sq ft) | $ / sqft	52.00
Percent increase in base rent	3.00%
Security deposit					$ 1.9
Rent payments		$ 1.0	$ 2.9
Rent expense		$ 1.0	$ 1.0
Operating lease, right-of-use asset				$ 29.8

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Related-Party Transactions - Other Related-Party Arrangements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Highmark Residential
Related-Party Transactions
Payments to related party	$ 1.4	$ 1.3	$ 4.1	$ 2.8

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Stockholders' Equity and Non-Controlling Interests - Declared Dividends (Details) - $ / shares				3 Months Ended		9 Months Ended
	Sep. 16, 2022	Jun. 15, 2022	Mar. 14, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stockholders' Equity Note [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 1.44	$ 1.44

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Stockholders' Equity and Non-Controlling Interests - Narrative (Details) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 06, 2021 USD ($)	Nov. 05, 2021 USD ($)	Apr. 30, 2022 USD ($) shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2022 USD ($) extension $ / shares shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2021 USD ($)	Dec. 31, 2018 shares	May 31, 2022 USD ($)
Equity Incentive Plans
Number of shares issued (in shares) | shares							0
Commission costs under ATM agreement						$ 756	$ 27
Contributions from non-controlling interests						21,926	5,590
Net income				$ 23,795		134,298
Net income attributable to non-controlling interests				$ 29,276	$ 11,885	$ 158,409	33,107
ATM Agreement
Equity Incentive Plans
Authorized value of stock under ATM agreement										$ 500,000
Number of shares issued (in shares) | shares				0	0	1,415,564
Proceeds from ATM Agreement						$ 33,300
Sale of stock average price (in dollars per share) | $ / shares				$ 23.54		$ 23.54
Commission costs under ATM agreement						$ 700
Employee Stock
Equity Incentive Plans
Purchase price of fair market value			85.00%
Maximum purchase value per calendar year			$ 25
Number of shares of authorized for issuance (in shares) | shares			2,000,000
Number of shares issued for future grants (in shares) | shares				34,625		34,625
Purchase price (in dollars per share) | $ / shares				$ 18.04		$ 18.04
Share-based expense				$ 100		$ 100
Common stock available for future issuance (in shares) | shares				2,000,000		2,000,000
Woodstar Fund
Equity Incentive Plans
Percentage of interest sold		20.60%
Contributions from non-controlling interests	$ 214,200	$ 216,000
Initial term						8 years
Number of extension options | extension						2
Extension term						1 year
CMBS JV
Equity Incentive Plans
Non-controlling interest				$ 146,600		$ 146,600		$ 131,900
CMBS JV | Joint Venture Partner
Equity Incentive Plans
Ownership percentage				49.00%		49.00%
CMBS JV
Equity Incentive Plans
Ownership percentage				51.00%		51.00%
Class A Units
Equity Incentive Plans
Number of units outstanding (in shares) | shares				9,800,000		9,800,000
Woodstar II Portfolio | Class A Units
Equity Incentive Plans
Net income attributable to non-controlling interests				$ 4,700	$ 4,700	$ 14,100	14,700
Woodstar II Portfolio | Class A Units | CMBS JV
Equity Incentive Plans
Net income attributable to non-controlling interests				$ (400)	$ 6,700	$ 4,500	$ 16,700
Subsidiaries | Woodstar II Portfolio
Equity Incentive Plans
Conversion of stock ratio						1
Subsidiaries | Woodstar II Portfolio | Class A Units
Equity Incentive Plans
Shares issued (in shares) | shares									10,200,000
Right to receive additional shares (in shares) | shares						1,900,000			1,900,000
Subsidiaries | Woodstar II Portfolio | Class A Units | Non- Controlling Interests
Equity Incentive Plans
Redemption of units						$ 208,500		$ 208,500
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan
Equity Incentive Plans
Number of shares of authorized for issuance (in shares) | shares			18,700,000
Common stock available for future grants (in shares) | shares				18,700,000		18,700,000

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Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($) $ in Thousands	1 Months Ended			9 Months Ended
	Nov. 30, 2020	Sep. 30, 2019	Apr. 30, 2018	Sep. 30, 2022
Equity Incentive Plans
Granted (in shares)				829,805
2022 Manager Equity Plan
Equity Incentive Plans
Granted (in shares)				0
Restricted stock units | 2022 Manager Equity Plan
Equity Incentive Plans
Granted (in shares)	1,800,000	1,200,000	775,000
Awards granted, fair value	$ 30,078	$ 29,484	$ 16,329
Award vesting period	3 years		3 years
Restricted stock units | 2022 Manager Equity Plan | Vested immediately on the grant date
Equity Incentive Plans
Granted (in shares)		218,898
Restricted stock units | 2022 Manager Equity Plan | Remaining vesting
Equity Incentive Plans
Award vesting period		3 years

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Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	3,702,007
Granted (in shares)	829,805
Vested (in shares)	(1,342,048)
Forfeited (in shares)	(69,268)
Balance at the end of the period (in shares)	3,120,496
Weighted Average Grant Date Fair Value (per share)
Balance at the beginning of period (in dollars per share) | $ / shares	$ 18.90
Granted (in dollars per share) | $ / shares	23.54
Vested (in dollars per share) | $ / shares	18.55
Forfeited (in dollars per share) | $ / shares	19.49
Balance at the end of period (in dollars per share) | $ / shares	$ 20.27
2022 Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	2,406,730
Granted (in shares)	829,805
Vested (in shares)	(646,771)
Forfeited (in shares)	(69,268)
Balance at the end of the period (in shares)	2,520,496
2022 Manager Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	1,295,277
Granted (in shares)	0
Vested (in shares)	(695,277)
Forfeited (in shares)	0
Balance at the end of the period (in shares)	600,000

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Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Basic Earnings
Income attributable to STWD common stockholders	$ 194,562	$ 128,602	$ 731,448	$ 356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)	(1,635)	(15,673)	(5,351)
Basic earnings	191,633	126,967	715,775	350,939
Diluted Earnings
Income attributable to STWD common stockholders	194,562	128,602	731,448	356,290
Less: Income attributable to participating shares not already deducted as non-controlling interests	(2,929)	(1,635)	(15,673)	(5,351)
Add: Undistributed earnings to participating shares	1,818	0	11,629	0
Less: Undistributed earnings reallocated to participating shares	(1,763)	0	(11,280)	0
Diluted earnings	$ 194,594	$ 129,868	$ 724,848	$ 359,656
Number of Shares:
Basic - Average shares outstanding (in shares)	306,704	285,676	304,908	284,577
Effect of dilutive securities - Contingently issuable shares (in shares)	23	19	23	19
Effect of dilutive securities - Unvested non-participating shares (in shares)	199	104	161	148
Diluted - Average shares outstanding (in shares)	316,575	295,448	314,741	294,393
Earnings Per Share Attributable to STWD Common Stockholders:
Basic (in dollars per share)	$ 0.62	$ 0.44	$ 2.35	$ 1.23
Diluted (in dollars per share)	$ 0.61	$ 0.44	$ 2.30	$ 1.22
Unamortized discount—Convertible Notes
Diluted Earnings
Add: Interest expense on Convertible Notes	$ 2,906	$ 2,901	$ 8,724	$ 8,717
Number of Shares:
Effect of dilutive securities - Convertible Notes (in shares)	9,649	9,649	9,649	9,649

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Earnings per Share - Dilutive and Antidilutive securities (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Class A Units
Antidilutive securities and effect of dilutive securities
Number of anti-dilutive common shares excluded from the calculation of diluted income per share (in shares)	9.8	9.8
Restricted stock
Antidilutive securities and effect of dilutive securities
Number of anti-dilutive common shares excluded from the calculation of diluted income per share (in shares)	12.4	13.3

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Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Changes in AOCI by component
Beginning balance	$ 6,774,387	$ 4,851,700	$ 6,433,892	$ 4,862,576
OCI before reclassifications	(6,194)	(822)	(18,177)	(3,569)
Amounts reclassified from AOCI	0	(2)	0	62
Net period OCI	(6,194)	(824)	(18,177)	(3,507)
Ending balance	6,821,185	4,847,112	6,821,185	4,847,112
Cumulative Unrealized Gain (Loss) on Available-for- Sale Securities
Changes in AOCI by component
Beginning balance	28,970	41,310	40,953	44,057
OCI before reclassifications	(6,194)	(822)	(18,177)	(3,569)
Amounts reclassified from AOCI	0	(2)	0	(2)
Net period OCI	(6,194)	(824)	(18,177)	(3,571)
Ending balance	22,776	40,486	22,776	40,486
Foreign Currency Translation
Changes in AOCI by component
Beginning balance	0	0	0	(64)
OCI before reclassifications	0	0	0	0
Amounts reclassified from AOCI	0	0	0	64
Net period OCI	0	0	0	64
Ending balance	0	0	0	0
Accumulated Other Comprehensive Income
Changes in AOCI by component
Beginning balance	28,970	41,310	40,953	43,993
Ending balance	$ 22,776	$ 40,486	$ 22,776	$ 40,486

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Fair Value - Narrative (Details)	9 Months Ended
	Sep. 30, 2022
Woodstar Fund
Assets and liabilities measured at fair value
Term including extensions	10 years

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Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial Assets:
Pledged Asset Carrying Value	$ 116,577	$ 143,980
Domestic servicing rights	18,014	16,780
Derivative assets	251,171	48,216
VIE assets	80,002,858	83,850,397
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	82,766	13,421
VIE liabilities	72,837,300	77,201,590
Fair value measurements on recurring basis
Financial Assets:
Equity security	9,343	11,624
Derivative assets	251,171	48,216
Total	58,559,252	65,499,721
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	82,766	13,421
Total	52,584,611	59,766,343
Fair value measurements on recurring basis | Loans under fair value option
Financial Assets:
Loans under fair value option	2,258,860	2,936,025
Fair value measurements on recurring basis | RMBS
Financial Assets:
Pledged Asset Carrying Value	116,577	143,980
Fair value measurements on recurring basis | CMBS
Financial Assets:
Pledged Asset Carrying Value	20,652	22,244
Fair value measurements on recurring basis | Woodstar Fund investments
Financial Assets:
Woodstar Fund investments	1,669,265	1,040,309
Fair value measurements on recurring basis | Domestic servicing rights, at fair value
Financial Assets:
Domestic servicing rights	18,014	16,780
Fair value measurements on recurring basis | Level I
Financial Assets:
Equity security	9,343	11,624
Derivative assets	0	0
Total	9,343	11,624
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	0	0
Total	0	0
Fair value measurements on recurring basis | Level I | Loans under fair value option
Financial Assets:
Loans under fair value option	0	0
Fair value measurements on recurring basis | Level I | RMBS
Financial Assets:
Pledged Asset Carrying Value	0	0
Fair value measurements on recurring basis | Level I | CMBS
Financial Assets:
Pledged Asset Carrying Value	0	0
Fair value measurements on recurring basis | Level I | Woodstar Fund investments
Financial Assets:
Woodstar Fund investments	0	0
Fair value measurements on recurring basis | Level I | Domestic servicing rights, at fair value
Financial Assets:
Domestic servicing rights	0	0
Fair value measurements on recurring basis | Level II
Financial Assets:
Equity security	0	0
Derivative assets	251,171	48,216
Total	321,560	48,216
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	82,766	13,421
Total	47,091,614	54,986,122
Fair value measurements on recurring basis | Level II | Loans under fair value option
Financial Assets:
Loans under fair value option	70,389	0
Fair value measurements on recurring basis | Level II | RMBS
Financial Assets:
Pledged Asset Carrying Value	0	0
Fair value measurements on recurring basis | Level II | CMBS
Financial Assets:
Pledged Asset Carrying Value	0	0
Fair value measurements on recurring basis | Level II | Woodstar Fund investments
Financial Assets:
Woodstar Fund investments	0	0
Fair value measurements on recurring basis | Level II | Domestic servicing rights, at fair value
Financial Assets:
Domestic servicing rights	0	0
Fair value measurements on recurring basis | Level III
Financial Assets:
Equity security	0	0
Derivative assets	0	0
Total	58,228,349	65,439,881
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	0	0
Total	5,492,997	4,780,221
Fair value measurements on recurring basis | Level III | Loans under fair value option
Financial Assets:
Loans under fair value option	2,188,471	2,936,025
Fair value measurements on recurring basis | Level III | RMBS
Financial Assets:
Pledged Asset Carrying Value	116,577	143,980
Fair value measurements on recurring basis | Level III | CMBS
Financial Assets:
Pledged Asset Carrying Value	20,652	22,244
Fair value measurements on recurring basis | Level III | Woodstar Fund investments
Financial Assets:
Woodstar Fund investments	1,669,265	1,040,309
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value
Financial Assets:
Domestic servicing rights	18,014	16,780
Primary beneficiary
Financial Assets:
Woodstar Fund investments	1,669,265	1,040,309
VIE assets	76,600
Liabilities, Fair Value Disclosure [Abstract]
VIE liabilities	34,400
Primary beneficiary | Fair value measurements on recurring basis | VIE assets
Financial Assets:
VIE assets	54,215,370	61,280,543
Primary beneficiary | Fair value measurements on recurring basis | VIE liabilities
Liabilities, Fair Value Disclosure [Abstract]
VIE liabilities	52,501,845	59,752,922
Primary beneficiary | Fair value measurements on recurring basis | Level I | VIE assets
Financial Assets:
VIE assets	0	0
Primary beneficiary | Fair value measurements on recurring basis | Level I | VIE liabilities
Liabilities, Fair Value Disclosure [Abstract]
VIE liabilities	0	0
Primary beneficiary | Fair value measurements on recurring basis | Level II | VIE assets
Financial Assets:
VIE assets	0	0
Primary beneficiary | Fair value measurements on recurring basis | Level II | VIE liabilities
Liabilities, Fair Value Disclosure [Abstract]
VIE liabilities	47,008,848	54,972,701
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE assets
Financial Assets:
VIE assets	54,215,370	61,280,543
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE liabilities
Liabilities, Fair Value Disclosure [Abstract]
VIE liabilities	$ 5,492,997	$ 4,780,221

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Fair Value - Level III (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total realized and unrealized gains (losses):
Net accretion			$ 9,725	$ 10,090
Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	$ 55,932,183	$ 59,612,799	60,659,660	63,441,439
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	(2,930,607)	(987,979)	(8,648,038)	(4,233,758)
Net accretion	1,744	2,584	6,974	7,800
Included in OCI	(6,194)	(824)	(18,177)	(3,571)
Purchases / Originations	186,397	1,783,772	3,793,467	3,151,346
Sales	(1,266)	(856,187)	(3,588,953)	(2,333,767)
Issuances	0	(27,112)	0	(38,715)
Cash repayments / receipts	(46,526)	(58,983)	(175,440)	(181,147)
Transfers into Level III	(571,603)	(108,148)	(1,201,573)	(2,949,296)
Transfers out of Level III	171,224	216,059	84,731	479,604
Transfers within Level III	0	0	0	0
Consolidation of VIEs	0	1,128,875	2,551,224	3,364,921
Deconsolidation of VIEs	0	(894,721)	(728,523)	(894,721)
Balance at the end of the period	52,735,352	59,810,135	52,735,352	59,810,135
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	(2,933,551)	(1,003,354)	(8,572,782)	(4,279,647)
Included in OCI	(6,194)	(822)	(17,771)	(3,563)
Level III | Loans under fair value option
Changes in financial assets classified as Level III
Balance at the beginning of the period	2,197,501	767,821	2,936,025	1,022,979
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	(87,474)	31,727	(326,737)	68,116
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	186,397	1,783,772	3,793,467	3,151,346
Sales	(1,266)	(856,187)	(3,588,953)	(2,333,767)
Issuances	0	0	0	0
Cash repayments / receipts	(37,998)	(50,395)	(152,847)	(153,723)
Transfers into Level III	1,700	4,414	1,847	4,413
Transfers out of Level III	(70,389)	(133,863)	(474,331)	(384,549)
Transfers within Level III	0	258,927	0	431,401
Consolidation of VIEs	0	0	0	0
Deconsolidation of VIEs	0	0	0	0
Balance at the end of the period	2,188,471	1,806,216	2,188,471	1,806,216
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	(92,162)	12,571	(258,652)	13,234
Included in OCI	0	0	0	0
Level III | RMBS
Changes in financial assets classified as Level III
Balance at the beginning of the period	124,439	154,704	143,980	167,349
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	0	0	0	0
Net accretion	1,744	2,584	6,974	7,800
Included in OCI	(6,194)	(824)	(18,177)	(3,571)
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Cash repayments / receipts	(3,412)	(7,881)	(16,200)	(22,995)
Transfers into Level III	0	0	0	0
Transfers out of Level III	0	0	0	0
Transfers within Level III	0	0	0	0
Consolidation of VIEs	0	0	0	0
Deconsolidation of VIEs	0	0	0	0
Balance at the end of the period	116,577	148,583	116,577	148,583
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	1,744	2,582	6,641	7,793
Included in OCI	(6,194)	(822)	(17,771)	(3,563)
Level III | CMBS
Changes in financial assets classified as Level III
Balance at the beginning of the period	20,965	18,965	22,244	19,457
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	(84)	(790)	(1,441)	(98)
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Cash repayments / receipts	(229)	(356)	(681)	(1,540)
Transfers into Level III	0	0	0	0
Transfers out of Level III	0	0	0	0
Transfers within Level III	0	0	0	0
Consolidation of VIEs	0	0	0	0
Deconsolidation of VIEs	0	5,684	530	5,684
Balance at the end of the period	20,652	23,503	20,652	23,503
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	(84)	409	(911)	1,102
Included in OCI	0	0	0	0
Level III | Woodstar Fund investments
Changes in financial assets classified as Level III
Balance at the beginning of the period	1,558,850	0	1,040,309	0
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	110,415	0	628,956	0
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Cash repayments / receipts	0	0	0	0
Transfers into Level III	0	0	0	0
Transfers out of Level III	0	0	0	0
Transfers within Level III	0		0	0
Consolidation of VIEs	0	0	0	0
Deconsolidation of VIEs	0	0	0	0
Balance at the end of the period	1,669,265	0	1,669,265	0
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	110,415	0	628,956	0
Included in OCI	0	0	0	0
Level III | Domestic servicing rights, at fair value
Changes in financial assets classified as Level III
Balance at the beginning of the period	17,499	13,705	16,780	13,202
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	515	2,237	1,234	2,740
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Cash repayments / receipts	0	0	0	0
Transfers into Level III	0	0	0	0
Transfers out of Level III	0	0	0	0
Transfers within Level III	0		0	0
Consolidation of VIEs	0	0	0	0
Deconsolidation of VIEs	0	0	0	0
Balance at the end of the period	18,014	15,942	18,014	15,942
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	515	2,237	1,234	2,740
Included in OCI	0	0	0	0
Level III | VIE assets
Changes in financial assets classified as Level III
Balance at the beginning of the period	57,993,563	63,493,796	61,280,543	64,238,328
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	(3,778,193)	(1,601,734)	(10,696,486)	(4,952,071)
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	0	0	0
Cash repayments / receipts	0	0	0	0
Transfers into Level III	0	0	0	0
Transfers out of Level III	0	0	0	0
Transfers within Level III	0	(258,927)	0	(431,401)
Consolidation of VIEs	0	1,649,200	4,361,325	4,427,479
Deconsolidation of VIEs	0	(935,855)	(730,012)	(935,855)
Balance at the end of the period	54,215,370	62,346,480	54,215,370	62,346,480
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	(3,778,193)	(1,601,734)	(10,696,486)	(4,952,071)
Included in OCI	0	0	0	0
Level III | VIE liabilities
Changes in financial assets classified as Level III
Balance at the beginning of the period	(5,980,634)	(4,836,192)	(4,780,221)	(2,019,876)
Total realized and unrealized gains (losses):
Change in fair value / gain on sale	824,214	580,581	1,746,436	647,555
Net accretion	0	0	0	0
Included in OCI	0	0	0	0
Purchases / Originations	0	0	0	0
Sales	0	0	0	0
Issuances	0	(27,112)	0	(38,715)
Cash repayments / receipts	(4,887)	(351)	(5,712)	(2,889)
Transfers into Level III	(573,303)	(112,562)	(1,203,420)	(2,953,709)
Transfers out of Level III	241,613	349,922	559,062	864,153
Transfers within Level III	0	0	0	0
Consolidation of VIEs	0	(520,325)	(1,810,101)	(1,062,558)
Deconsolidation of VIEs	0	35,450	959	35,450
Balance at the end of the period	(5,492,997)	(4,530,589)	(5,492,997)	(4,530,589)
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract]
Included in earnings	824,214	580,581	1,746,436	647,555
Included in OCI	$ 0	$ 0	$ 0	$ 0

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Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial assets not carried at fair value:
HTM debt securities	$ 747,484	$ 691,746
Financial liabilities not carried at fair value:
Unsecured senior notes	2,326,988	1,828,590
Carrying Value
Financial assets not carried at fair value:
Loans	18,050,646	15,477,624
HTM debt securities	743,556	683,136
Financial liabilities not carried at fair value:
Secured financing agreements, CLOs and SASB	17,186,898	15,192,966
Unsecured senior notes	2,326,988	1,828,590
Fair Value
Financial assets not carried at fair value:
Loans	17,843,579	15,526,235
HTM debt securities	704,285	656,864
Financial liabilities not carried at fair value:
Secured financing agreements, CLOs and SASB	16,953,413	15,266,440
Unsecured senior notes	$ 2,119,427	$ 1,893,065

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Fair Value - Significant Unobservable Inputs (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) score	Dec. 31, 2021 USD ($) score
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Pledged Asset Carrying Value	$ 116,577	$ 143,980
Domestic servicing rights	18,014	16,780
VIE assets	80,002,858	83,850,397
VIE liabilities	72,837,300	77,201,590
Fair value measurements on recurring basis | Loans under fair value option
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	2,258,860	2,936,025
Fair value measurements on recurring basis | RMBS
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Pledged Asset Carrying Value	116,577	143,980
Fair value measurements on recurring basis | CMBS
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Pledged Asset Carrying Value	20,652	22,244
Fair value measurements on recurring basis | Woodstar Fund investments
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Woodstar Fund investments	1,669,265	1,040,309
Fair value measurements on recurring basis | Domestic servicing rights, at fair value
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	18,014	16,780
Fair value measurements on recurring basis | Level III | Loans under fair value option
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	$ 2,188,471	$ 2,936,025
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option, duration	5 years 6 months	6 years 3 months 18 days
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.028	0.026
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | FICO score
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option | score	585	582
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | LTV
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.05	0.01
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | Purchase price
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.800	0.800
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option, duration	39 years 9 months 18 days	39 years 10 months 24 days
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.093	0.092
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | FICO score
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option | score	900	829
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | LTV
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.93	0.94
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | Purchase price
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	1.086	1.086
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option, duration	29 years	27 years 4 months 24 days
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.047	0.042
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | FICO score
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option | score	745	748
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | LTV
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	0.68	0.66
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | Purchase price
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loans under fair value option	1.018	1.023
Fair value measurements on recurring basis | Level III | RMBS
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Pledged Asset Carrying Value	$ 116,577	$ 143,980
Loss severity for specified percentage of portfolio (as a percent)	3.00%	18.00%
Fair value measurements on recurring basis | Level III | RMBS | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loss severity for specified percentage of portfolio (as a percent)	45.00%
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Constant prepayment rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.030	0.048
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Constant default rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.013	0.008
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Loss severity
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0	0
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Delinquency rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.07	0.104
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Servicer advances
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.29	0.19
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Annual coupon deterioration
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0	0
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Putback amount per projected total collateral loss
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0	0
Fair value measurements on recurring basis | Level III | RMBS | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Loss severity for specified percentage of portfolio (as a percent)		80.00%
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Constant prepayment rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.130	0.192
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Constant default rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.044	0.060
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Loss severity
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.98	0.86
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Delinquency rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.29	0.35
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Servicer advances
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.78	0.83
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Annual coupon deterioration
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.032	0.017
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Putback amount per projected total collateral loss
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.08	0.08
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Constant prepayment rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.059	0.099
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Constant default rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.020	0.021
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Loss severity
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.18	0.26
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Delinquency rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.16	0.19
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Servicer advances
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.54	0.52
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Annual coupon deterioration
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.001	0.001
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Putback amount per projected total collateral loss
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.006	0.005
Fair value measurements on recurring basis | Level III | CMBS
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Pledged Asset Carrying Value	$ 20,652	$ 22,244
Fair value measurements on recurring basis | Level III | CMBS | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
CMBS, term	0 years	0 days
Fair value measurements on recurring basis | Level III | CMBS | Minimum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0	0
Fair value measurements on recurring basis | Level III | CMBS | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
CMBS, term	8 years	7 years 2 months 12 days
Fair value measurements on recurring basis | Level III | CMBS | Maximum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	1.867	6.136
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
CMBS, term	3 years	5 years 2 months 12 days
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.090	0.093
Fair value measurements on recurring basis | Level III | Woodstar Fund investments
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Woodstar Fund investments	$ 1,669,265	$ 1,040,309
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Direct capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.042
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Discount rate - properties
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.058
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Discount rate - debt
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.053	0.026
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Terminal capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.048
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Direct capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.041
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Discount rate - properties
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.063
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Discount rate - debt
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.066	0.033
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Terminal capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.053
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Direct capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.042
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Discount rate - properties
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.060
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Discount rate - debt
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.057	0.029
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Terminal capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input		0.049
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Direct capitalization rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Available-for-sale securities, measurement input	0.042	0.042
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	$ 18,014	$ 16,780
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	0.0800	0.0730
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Discount rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	0.15	0.15
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Weighted-average | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	0.0800	0.0730
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Weighted-average | Discount rate
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Domestic servicing rights	0.15	0.15
Fair value measurements on recurring basis | Level III | VIE assets | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	0 years	0 days
Fair value measurements on recurring basis | Level III | VIE assets | Minimum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE assets	0	0
Fair value measurements on recurring basis | Level III | VIE assets | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	11 years	11 years
Fair value measurements on recurring basis | Level III | VIE assets | Maximum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE assets	4.868	6.153
Fair value measurements on recurring basis | Level III | VIE assets | Weighted-average
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	2 years 10 months 24 days	3 years 2 months 12 days
Fair value measurements on recurring basis | Level III | VIE assets | Weighted-average | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE assets	0.148	0.130
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	0 years	0 days
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE liabilities	0	0
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	11 years	11 years
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE liabilities	4.868	6.153
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE duration (in years)	2 years	2 years 3 months 18 days
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average | Debt yield
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE liabilities	0.092	0.064
Primary beneficiary
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Woodstar Fund investments	$ 1,669,265	$ 1,040,309
VIE assets	76,600
VIE liabilities	34,400
Primary beneficiary | Fair value measurements on recurring basis | VIE assets
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE assets	54,215,370	61,280,543
Primary beneficiary | Fair value measurements on recurring basis | VIE liabilities
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE liabilities	52,501,845	59,752,922
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE assets
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE assets	54,215,370	61,280,543
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE liabilities
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
VIE liabilities	$ 5,492,997	$ 4,780,221

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Income Taxes
VIE assets	$ 80,002,858	$ 83,850,397
Investing and Servicing Segment | TRS entities
Income Taxes
VIE assets	$ 2,700,000	$ 3,200,000

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Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of statutory tax to effective tax
Federal statutory tax rate	$ 36,768	$ 31,078	$ 176,580	$ 83,113
REIT and other non-taxable income	(75,642)	(24,527)	(213,073)	(73,046)
State income taxes	(12,772)	2,153	(11,990)	3,308
Federal benefit of state tax deduction	2,682	(452)	2,518	(695)
Intra-entity transfers	0	(312)	(3,868)	(6,364)
Other	209	(439)	834	62
Effective tax rate	$ (48,755)	$ 7,501	$ (48,999)	$ 6,378
Reconciliation of statutory tax rate to effective tax rate
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%
REIT and other non-taxable income	(43.10%)	(16.60%)	(25.30%)	(18.50%)
State income taxes	(7.30%)	1.50%	(1.40%)	0.80%
Federal benefit of state tax deduction	1.50%	(0.30%)	0.30%	(0.20%)
Intra-entity transfers	0.00%	(0.20%)	(0.50%)	(1.50%)
Other	0.10%	(0.30%)	0.10%	0.00%
Effective tax rate	(27.80%)	5.10%	(5.80%)	1.60%

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Commitments and Contingencies - Narrative (Details) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2022	Feb. 28, 2022 USD ($)	Sep. 30, 2022 USD ($) contract	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) contract	Sep. 30, 2021 USD ($)
Commitments and Contingencies
Number of Contracts | contract			637		637
Interest rate swap guarantees | USD
Commitments and Contingencies
Number of Contracts | contract			4		4
Loan Transfers Accounted for as Sales | Residential Loans
Commitments and Contingencies
Face amount of assets transferred			$ 1,152	$ 0	$ 1,057,013	$ 89,801
Loan Transfers Accounted for as Sales | Agency-Eligible Residential Loan | Residential Loans
Commitments and Contingencies
Face amount of assets transferred		$ 745,000
Financing term	120 days
Estimate of disposition strategy on loans			88,400		88,400
Contingency expense			55,700		88,400
Commitments | Loan Transfers Accounted for as Sales
Commitments and Contingencies
Value of loans with future funding commitments			2,800,000		2,800,000
Value of loans with future funding commitments expected to fund			2,500,000		2,500,000
Outstanding			51,600		51,600
Commitments | Infrastructure Lending Segment
Commitments and Contingencies
Value of loans with future funding commitments			138,600		138,600
Outstanding			18,200		18,200
Revolvers and letters of credit | Infrastructure Lending Segment
Commitments and Contingencies
Outstanding			$ 8,800		$ 8,800

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Segment Data - Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Interest income from loans	$ 328,354	$ 203,252	$ 823,123	$ 583,099
Interest income from investment securities	19,019	10,697	48,308	32,955
Servicing fees	8,427	10,473	30,972	29,739
Rental income	32,932	77,512	96,036	230,969
Other revenues	1,809	352	11,680	3,621
Total revenues	390,541	302,286	1,010,119	880,383
Costs and expenses:
Management fees	27,356	23,727	114,275	91,713
Interest expense	222,423	115,531	501,492	328,558
General and administrative	45,495	38,864	134,821	122,765
Acquisition and investment pursuit costs	1,213	214	2,152	806
Costs of rental operations	12,206	31,516	32,094	90,992
Depreciation and amortization	12,611	22,041	36,498	66,992
Credit loss provision (reversal), net	15,343	(563)	20,123	(12,363)
Other expense	0	23	1,313	708
Total costs and expenses	336,647	231,353	842,768	690,171
Other income (loss):
Change in net assets related to consolidated VIEs	37,146	28,049	72,268	80,303
Change in fair value of servicing rights	515	2,237	1,234	2,740
Change in fair value of investment securities, net	(83)	(299)	(1,683)	903
Change in fair value of mortgage loans, net	(87,474)	31,727	(326,737)	68,116
(Loss) earnings from unconsolidated entities	(2,044)	2,042	911	6,002
Gain (loss) on sale of investments and other assets, net	13,453	(47)	112,059	26,377
Gain (loss) on derivative financial instruments, net	206,070	41,812	461,921	65,792
Foreign currency (loss) gain, net	(107,318)	(27,003)	(213,201)	(36,057)
Loss on extinguishment of debt	(212)	(499)	(1,035)	(2,197)
Contingency expense	(56,391)	(964)	(90,963)	(6,416)
Total other income	121,189	77,055	673,507	205,563
Income before income taxes	175,083	147,988	840,858	395,775
Income tax (provision) benefit	48,755	(7,501)	48,999	(6,378)
Net income	223,838	140,487	889,857	389,397
Net income attributable to non-controlling interests	(29,276)	(11,885)	(158,409)	(33,107)
Net income attributable to Starwood Property Trust, Inc.	194,562	128,602	731,448	356,290
Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	117,527	0	658,733	0
Operating Segments and Corporate
Revenues:
Interest income from loans	328,354	203,252	823,123	583,099
Interest income from investment securities	57,349	41,723	151,075	125,025
Servicing fees	11,972	15,546	41,937	44,601
Rental income	32,932	77,512	96,036	230,969
Other revenues	1,812	352	11,692	3,621
Total revenues	432,419	338,385	1,123,863	987,315
Costs and expenses:
Management fees	27,356	23,727	114,275	91,692
Interest expense	222,640	115,752	502,139	329,190
General and administrative	45,409	38,792	134,556	122,521
Acquisition and investment pursuit costs	1,213	214	2,152	806
Costs of rental operations	12,206	31,516	32,094	90,992
Depreciation and amortization	12,611	22,041	36,498	66,992
Credit loss provision (reversal), net	15,343	(563)	20,123	(12,363)
Other expense		23	1,313	708
Total costs and expenses	336,778	231,502	843,150	690,538
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	357	(410)	683	795
Change in fair value of investment securities, net	(5,014)	(5,812)	(43,872)	(22,679)
Change in fair value of mortgage loans, net	(87,474)	31,727	(326,737)	68,116
(Loss) earnings from unconsolidated entities	(1,550)	2,218	2,534	5,725
Gain (loss) on sale of investments and other assets, net	13,453	(47)	112,059	26,377
Gain (loss) on derivative financial instruments, net	206,070	41,812	461,921	65,792
Foreign currency (loss) gain, net	(107,318)	(27,003)	(213,201)	(36,057)
Loss on extinguishment of debt	(212)	(499)	(1,035)	(2,197)
Contingency expense	(56,391)	(964)	(90,988)	(6,416)
Total other income	79,448	41,022	560,097	99,456
Income before income taxes	175,089	147,905	840,810	396,233
Income tax (provision) benefit	48,755	(7,501)	48,999	(6,378)
Net income	223,844	140,404	889,809	389,855
Net income attributable to non-controlling interests	(29,282)	(11,802)	(158,361)	(33,565)
Net income attributable to Starwood Property Trust, Inc.	194,562	128,602	731,448	356,290
Operating Segments and Corporate | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	117,527		658,733
Operating segment | Loan Transfers Accounted for as Sales
Revenues:
Interest income from loans	284,197	179,486	714,222	515,776
Interest income from investment securities	28,560	16,043	71,987	51,618
Servicing fees	142	99	420	333
Rental income	1,944	1,358	4,674	4,116
Other revenues	138	59	251	223
Total revenues	314,981	197,045	791,554	572,066
Costs and expenses:
Management fees	227	286	758	901
Interest expense	145,107	52,066	301,935	144,717
General and administrative	16,458	9,178	39,905	30,922
Acquisition and investment pursuit costs	1,164	158	2,401	522
Costs of rental operations	2,633	438	4,978	1,348
Depreciation and amortization	1,629	312	3,106	930
Credit loss provision (reversal), net	8,401	19	13,027	(12,957)
Other expense		0	1,251	31
Total costs and expenses	175,619	62,457	367,361	166,414
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	0	0	0	0
Change in fair value of investment securities, net	16,398	(8,682)	(5,019)	(20,134)
Change in fair value of mortgage loans, net	(90,159)	22,464	(327,743)	24,079
(Loss) earnings from unconsolidated entities	(4,044)	1,666	(2,598)	5,415
Gain (loss) on sale of investments and other assets, net	(288)	(47)	86,460	16,627
Gain (loss) on derivative financial instruments, net	220,296	38,016	465,831	59,212
Foreign currency (loss) gain, net	(107,087)	(26,820)	(212,672)	(35,699)
Loss on extinguishment of debt	0	0	(206)	(289)
Contingency expense	(56,391)	(964)	(90,988)	(6,468)
Total other income	(21,275)	25,633	(86,935)	42,743
Income before income taxes	118,087	160,221	337,258	448,395
Income tax (provision) benefit	53,099	(5,652)	57,682	886
Net income	171,186	154,569	394,940	449,281
Net income attributable to non-controlling interests	(3)	(3)	(10)	(10)
Net income attributable to Starwood Property Trust, Inc.	171,183	154,566	394,930	449,271
Operating segment | Loan Transfers Accounted for as Sales | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	0		0
Operating segment | Infrastructure Lending Segment
Revenues:
Interest income from loans	43,018	21,566	100,097	61,545
Interest income from investment securities	1,204	540	3,124	1,659
Servicing fees	0	0	0	0
Rental income	0	0	0	0
Other revenues	129	66	287	228
Total revenues	44,351	22,172	103,508	63,432
Costs and expenses:
Management fees	0	0	0	0
Interest expense	22,500	9,381	49,431	27,916
General and administrative	3,588	3,307	10,730	10,281
Acquisition and investment pursuit costs	2	0	3	249
Costs of rental operations	0	0	0	0
Depreciation and amortization	101	101	310	301
Credit loss provision (reversal), net	6,942	(582)	7,096	594
Other expense		0	0	0
Total costs and expenses	33,133	12,207	67,570	39,341
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	0	0	0	0
Change in fair value of investment securities, net	0	0	0	0
Change in fair value of mortgage loans, net	0	0	0	0
(Loss) earnings from unconsolidated entities	1,892	399	2,631	75
Gain (loss) on sale of investments and other assets, net	0	0	0	27
Gain (loss) on derivative financial instruments, net	331	87	1,228	883
Foreign currency (loss) gain, net	(253)	(168)	(570)	(279)
Loss on extinguishment of debt	0	(18)	(469)	(1,264)
Contingency expense	0	0	0	23
Total other income	1,970	300	2,820	(535)
Income before income taxes	13,188	10,265	38,758	23,556
Income tax (provision) benefit	2	488	7	338
Net income	13,190	10,753	38,765	23,894
Net income attributable to non-controlling interests	0	0	0	0
Net income attributable to Starwood Property Trust, Inc.	13,190	10,753	38,765	23,894
Operating segment | Infrastructure Lending Segment | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	0		0
Operating segment | Property Segment
Revenues:
Interest income from loans	0	0	0	0
Interest income from investment securities	0	0	0	0
Servicing fees	0	0	0	0
Rental income	22,886	66,673	67,879	197,187
Other revenues	54	54	152	138
Total revenues	22,940	66,727	68,031	197,325
Costs and expenses:
Management fees	0	0	0	0
Interest expense	9,266	17,002	22,421	49,697
General and administrative	933	913	2,964	2,964
Acquisition and investment pursuit costs	0	0	7	0
Costs of rental operations	5,793	26,634	16,010	76,516
Depreciation and amortization	8,161	17,882	24,559	53,883
Credit loss provision (reversal), net	0	0	0	0
Other expense		0	55	583
Total costs and expenses	24,153	62,431	66,016	183,643
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	0	0	0	0
Change in fair value of investment securities, net	0	0	0	0
Change in fair value of mortgage loans, net	0	0	0	0
(Loss) earnings from unconsolidated entities	0	0	0	0
Gain (loss) on sale of investments and other assets, net	0	0	0	0
Gain (loss) on derivative financial instruments, net	10,262	(318)	33,162	4,034
Foreign currency (loss) gain, net	22	(16)	41	(16)
Loss on extinguishment of debt	0	0	0	(141)
Contingency expense	0	0	0	0
Total other income	127,811	(334)	691,936	3,877
Income before income taxes	126,598	3,962	693,951	17,559
Income tax (provision) benefit	0	0	0	0
Net income	126,598	3,962	693,951	17,559
Net income attributable to non-controlling interests	(28,486)	(4,691)	(148,379)	(14,682)
Net income attributable to Starwood Property Trust, Inc.	98,112	(729)	545,572	2,877
Operating segment | Property Segment | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	117,527		658,733
Operating segment | Investing and Servicing Segment
Revenues:
Interest income from loans	1,139	2,200	8,804	5,778
Interest income from investment securities	27,585	25,140	75,964	71,748
Servicing fees	11,830	15,447	41,517	44,268
Rental income	8,102	9,481	23,483	29,666
Other revenues	1,491	173	10,999	3,032
Total revenues	50,147	52,441	160,767	154,492
Costs and expenses:
Management fees	0	(1,239)	0	(793)
Interest expense	6,601	5,652	19,202	16,890
General and administrative	20,046	21,022	66,603	65,182
Acquisition and investment pursuit costs	47	56	(259)	35
Costs of rental operations	3,780	4,444	11,106	13,128
Depreciation and amortization	2,720	3,746	8,523	11,878
Credit loss provision (reversal), net	0	0	0	0
Other expense		23	7	94
Total costs and expenses	33,194	33,704	105,182	106,414
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	357	(410)	683	795
Change in fair value of investment securities, net	(21,412)	2,870	(38,853)	(2,545)
Change in fair value of mortgage loans, net	2,685	9,263	1,006	44,037
(Loss) earnings from unconsolidated entities	602	153	2,501	235
Gain (loss) on sale of investments and other assets, net	13,741	0	25,599	9,723
Gain (loss) on derivative financial instruments, net	6,849	3,992	43,719	7,544
Foreign currency (loss) gain, net	0	1	0	(63)
Loss on extinguishment of debt	(212)	0	(360)	(22)
Contingency expense	0	0	0	29
Total other income	2,610	15,869	34,295	59,733
Income before income taxes	19,563	34,606	89,880	107,811
Income tax (provision) benefit	(4,346)	(2,337)	(8,690)	(7,602)
Net income	15,217	32,269	81,190	100,209
Net income attributable to non-controlling interests	(793)	(7,108)	(9,972)	(18,873)
Net income attributable to Starwood Property Trust, Inc.	14,424	25,161	71,218	81,336
Operating segment | Investing and Servicing Segment | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	0		0
Corporate
Revenues:
Interest income from loans	0	0	0	0
Interest income from investment securities	0	0	0	0
Servicing fees	0	0	0	0
Rental income	0	0	0	0
Other revenues	0	0	3	0
Total revenues	0	0	3	0
Costs and expenses:
Management fees	27,129	24,680	113,517	91,584
Interest expense	39,166	31,651	109,150	89,970
General and administrative	4,384	4,372	14,354	13,172
Acquisition and investment pursuit costs	0	0	0	0
Costs of rental operations	0	0	0	0
Depreciation and amortization	0	0	0	0
Credit loss provision (reversal), net	0	0	0	0
Other expense		0	0	0
Total costs and expenses	70,679	60,703	237,021	194,726
Other income (loss):
Change in net assets related to consolidated VIEs	0	0	0	0
Change in fair value of servicing rights	0	0	0	0
Change in fair value of investment securities, net	0	0	0	0
Change in fair value of mortgage loans, net	0	0	0	0
(Loss) earnings from unconsolidated entities	0	0	0	0
Gain (loss) on sale of investments and other assets, net	0	0	0	0
Gain (loss) on derivative financial instruments, net	(31,668)	35	(82,019)	(5,881)
Foreign currency (loss) gain, net	0	0	0	0
Loss on extinguishment of debt	0	(481)	0	(481)
Contingency expense	0	0	0	0
Total other income	(31,668)	(446)	(82,019)	(6,362)
Income before income taxes	(102,347)	(61,149)	(319,037)	(201,088)
Income tax (provision) benefit	0	0	0	0
Net income	(102,347)	(61,149)	(319,037)	(201,088)
Net income attributable to non-controlling interests	0	0	0	0
Net income attributable to Starwood Property Trust, Inc.	(102,347)	(61,149)	(319,037)	(201,088)
Corporate | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	0		0
Securitization VIEs
Revenues:
Interest income from loans	0	0	0	0
Interest income from investment securities	(38,330)	(31,026)	(102,767)	(92,070)
Servicing fees	(3,545)	(5,073)	(10,965)	(14,862)
Rental income	0	0	0	0
Other revenues	(3)	0	(12)	0
Total revenues	(41,878)	(36,099)	(113,744)	(106,932)
Costs and expenses:
Management fees	0	0	0	21
Interest expense	(217)	(221)	(647)	(632)
General and administrative	86	72	265	244
Acquisition and investment pursuit costs	0	0	0	0
Costs of rental operations	0	0	0	0
Depreciation and amortization	0	0	0	0
Credit loss provision (reversal), net	0	0	0	0
Other expense		0	0	0
Total costs and expenses	(131)	(149)	(382)	(367)
Other income (loss):
Change in net assets related to consolidated VIEs	37,146	28,049	72,268	80,303
Change in fair value of servicing rights	158	2,647	551	1,945
Change in fair value of investment securities, net	4,931	5,513	42,189	23,582
Change in fair value of mortgage loans, net	0	0	0	0
(Loss) earnings from unconsolidated entities	(494)	(176)	(1,623)	277
Gain (loss) on sale of investments and other assets, net	0	0	0	0
Gain (loss) on derivative financial instruments, net	0	0	0	0
Foreign currency (loss) gain, net	0	0	0	0
Loss on extinguishment of debt	0	0	0	0
Contingency expense	0	0	25	0
Total other income	41,741	36,033	113,410	106,107
Income before income taxes	(6)	83	48	(458)
Income tax (provision) benefit	0	0	0	0
Net income	(6)	83	48	(458)
Net income attributable to non-controlling interests	6	(83)	(48)	458
Net income attributable to Starwood Property Trust, Inc.	0	$ 0	0	$ 0
Securitization VIEs | Primary beneficiary
Other income (loss):
Income from affordable housing fund investments	$ 0		$ 0

XML

Segment Data - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and Cash Equivalents, at Carrying Value	$ 339,710		$ 217,362
Restricted cash	121,570		104,552
Loans held-for-investment, net	18,103,822		15,536,849
Loans held-for-sale	2,205,684		2,876,800
Investment securities	890,128		860,984
Properties, net	1,217,426		1,166,387
Investments in unconsolidated entities	83,164		90,097
Goodwill	259,846		259,846
Intangible assets	73,096		63,564
Derivative assets	251,171		48,216
Interest Receivable	154,148		116,262
Other Assets	418,458		188,626
VIE assets, at fair value	54,215,370		61,280,543
Total Assets	80,002,858		83,850,397
Liabilities:
Accounts Payable and Accrued Liabilities	562,461		189,696
Related-party payable	26,146		76,371
Dividends payable	150,196		147,624
Derivative liabilities	82,766		13,421
Secured financing agreements, net	13,495,902		12,576,850
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Unsecured senior notes, net	2,326,988		1,828,590
VIE liabilities, at fair value	52,501,845		59,752,922
Total Liabilities	72,837,300		77,201,590
Temporary Equity: Redeemable non-controlling interests	344,373		214,915
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	3,170		3,123
Additional paid-in capital	5,779,687		5,673,376
Treasury stock	(138,022)		(138,022)
Retained earnings (accumulated deficit)	779,188		493,106
Accumulated other comprehensive income	22,776		40,953
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,446,799		6,072,536
Non-controlling interests in consolidated subsidiaries	374,386		361,356
Total Permanent Equity	6,821,185	$ 6,774,387	6,433,892	$ 4,847,112	$ 4,851,700	$ 4,862,576
Total Liabilities and Equity	80,002,858		83,850,397
Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	1,669,265		1,040,309
Total Assets	76,600
Liabilities:
Total Liabilities	34,400
Infrastructure Lending Segment
Assets:
Goodwill	119,400		119,400
Investing and Servicing Segment
Assets:
Goodwill	140,400		140,400
Operating Segments and Corporate
Assets:
Cash and Cash Equivalents, at Carrying Value	337,160		216,772
Restricted cash	121,570		104,552
Loans held-for-investment, net	18,103,822		15,536,849
Loans held-for-sale	2,205,684		2,876,800
Investment securities	2,568,931		2,352,770
Properties, net	1,217,426		1,166,387
Investments in unconsolidated entities	99,160		105,353
Goodwill	259,846		259,846
Intangible assets	114,663		105,683
Derivative assets	251,171		48,216
Interest Receivable	154,353		116,393
Other Assets	418,832		188,788
VIE assets, at fair value	0		0
Total Assets	27,521,883		24,118,718
Liabilities:
Accounts Payable and Accrued Liabilities	562,373		189,640
Related-party payable	26,146		76,371
Dividends payable	150,196		147,624
Derivative liabilities	82,766		13,421
Secured financing agreements, net	13,517,169		12,598,410
Collateralized loan obligations and single asset securitization, net	3,690,996		2,616,116
Unsecured senior notes, net	2,326,988		1,828,590
VIE liabilities, at fair value	0		0
Total Liabilities	20,356,634		17,470,172
Temporary Equity: Redeemable non-controlling interests	344,373		214,915
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	3,170		3,123
Additional paid-in capital	5,779,687		5,673,376
Treasury stock	(138,022)		(138,022)
Retained earnings (accumulated deficit)	779,188		493,106
Accumulated other comprehensive income	22,776		40,953
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,446,799		6,072,536
Non-controlling interests in consolidated subsidiaries	374,077		361,095
Total Permanent Equity	6,820,876		6,433,631
Total Liabilities and Equity	27,521,883		24,118,718
Operating Segments and Corporate | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	1,669,265		1,040,309
Operating segment | Loan Transfers Accounted for as Sales
Assets:
Cash and Cash Equivalents, at Carrying Value	76,654		65,064
Restricted cash	6,230		39,853
Loans held-for-investment, net	15,719,718		13,499,520
Loans held-for-sale	2,125,827		2,590,005
Investment securities	1,318,372		1,155,452
Properties, net	214,896		124,503
Investments in unconsolidated entities	34,319		44,938
Goodwill	0		0
Intangible assets	14,302		0
Derivative assets	249,120		34,265
Interest Receivable	143,352		106,251
Other Assets	254,353		68,908
VIE assets, at fair value	0		0
Total Assets	20,157,143		17,728,759
Liabilities:
Accounts Payable and Accrued Liabilities	404,982		57,267
Related-party payable	0		0
Dividends payable	0		0
Derivative liabilities	8,943		12,870
Secured financing agreements, net	10,250,349		9,097,985
Collateralized loan obligations and single asset securitization, net	2,877,567		2,210,798
Unsecured senior notes, net	0		0
VIE liabilities, at fair value	0		0
Total Liabilities	13,541,841		11,378,920
Temporary Equity: Redeemable non-controlling interests	0		0
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	0		0
Additional paid-in capital	1,624,104		1,735,397
Treasury stock	0		0
Retained earnings (accumulated deficit)	4,968,304		4,573,374
Accumulated other comprehensive income	22,776		40,953
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,615,184		6,349,724
Non-controlling interests in consolidated subsidiaries	118		115
Total Permanent Equity	6,615,302		6,349,839
Total Liabilities and Equity	20,157,143		17,728,759
Operating segment | Loan Transfers Accounted for as Sales | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	0		0
Operating segment | Infrastructure Lending Segment
Assets:
Cash and Cash Equivalents, at Carrying Value	59,925		17,011
Restricted cash	33,410		43,408
Loans held-for-investment, net	2,374,444		2,027,426
Loans held-for-sale	0		0
Investment securities	66,728		31,923
Properties, net	0		0
Investments in unconsolidated entities	29,347		26,255
Goodwill	119,409		119,409
Intangible assets	0		0
Derivative assets	242		128
Interest Receivable	9,177		3,207
Other Assets	4,332		14,265
VIE assets, at fair value	0		0
Total Assets	2,697,014		2,283,032
Liabilities:
Accounts Payable and Accrued Liabilities	41,457		8,917
Related-party payable	0		0
Dividends payable	0		0
Derivative liabilities	223		260
Secured financing agreements, net	1,095,459		1,225,548
Collateralized loan obligations and single asset securitization, net	813,429		405,318
Unsecured senior notes, net	0		0
VIE liabilities, at fair value	0		0
Total Liabilities	1,950,568		1,640,043
Temporary Equity: Redeemable non-controlling interests	0		0
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	0		0
Additional paid-in capital	665,104		600,412
Treasury stock	0		0
Retained earnings (accumulated deficit)	81,342		42,577
Accumulated other comprehensive income	0		0
Total Starwood Property Trust, Inc. Stockholders’ Equity	746,446		642,989
Non-controlling interests in consolidated subsidiaries	0		0
Total Permanent Equity	746,446		642,989
Total Liabilities and Equity	2,697,014		2,283,032
Operating segment | Infrastructure Lending Segment | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	0		0
Operating segment | Property Segment
Assets:
Cash and Cash Equivalents, at Carrying Value	32,464		14,136
Restricted cash	978		954
Loans held-for-investment, net	0		0
Loans held-for-sale	0		0
Investment securities	0		0
Properties, net	868,454		887,553
Investments in unconsolidated entities	0		0
Goodwill	0		0
Intangible assets	30,829		34,619
Derivative assets	321		8
Interest Receivable	412		0
Other Assets	77,207		43,420
VIE assets, at fair value	0		0
Total Assets	2,679,930		2,020,999
Liabilities:
Accounts Payable and Accrued Liabilities	12,105		14,757
Related-party payable	0		0
Dividends payable	0		0
Derivative liabilities	0		0
Secured financing agreements, net	789,138		787,396
Collateralized loan obligations and single asset securitization, net	0		0
Unsecured senior notes, net	0		0
VIE liabilities, at fair value	0		0
Total Liabilities	801,243		802,153
Temporary Equity: Redeemable non-controlling interests	344,373		214,915
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	0		0
Additional paid-in capital	(381,226)		(365,922)
Treasury stock	0		0
Retained earnings (accumulated deficit)	1,706,906		1,161,334
Accumulated other comprehensive income	0		0
Total Starwood Property Trust, Inc. Stockholders’ Equity	1,325,680		795,412
Non-controlling interests in consolidated subsidiaries	208,634		208,519
Total Permanent Equity	1,534,314		1,003,931
Total Liabilities and Equity	2,679,930		2,020,999
Operating segment | Property Segment | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	1,669,265		1,040,309
Operating segment | Investing and Servicing Segment
Assets:
Cash and Cash Equivalents, at Carrying Value	43,172		26,700
Restricted cash	3,789		20,337
Loans held-for-investment, net	9,660		9,903
Loans held-for-sale	79,857		286,795
Investment securities	1,183,831		1,165,395
Properties, net	134,076		154,331
Investments in unconsolidated entities	35,494		34,160
Goodwill	140,437		140,437
Intangible assets	69,532		71,064
Derivative assets	1,488		391
Interest Receivable	1,412		947
Other Assets	27,033		40,395
VIE assets, at fair value	0		0
Total Assets	1,729,781		1,950,855
Liabilities:
Accounts Payable and Accrued Liabilities	43,658		58,920
Related-party payable	0		0
Dividends payable	0		0
Derivative liabilities	0		291
Secured financing agreements, net	612,409		714,237
Collateralized loan obligations and single asset securitization, net	0		0
Unsecured senior notes, net	0		0
VIE liabilities, at fair value	0		0
Total Liabilities	656,067		773,448
Temporary Equity: Redeemable non-controlling interests	0		0
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	0		0
Additional paid-in capital	(575,971)		(388,196)
Treasury stock	0		0
Retained earnings (accumulated deficit)	1,484,360		1,413,142
Accumulated other comprehensive income	0		0
Total Starwood Property Trust, Inc. Stockholders’ Equity	908,389		1,024,946
Non-controlling interests in consolidated subsidiaries	165,325		152,461
Total Permanent Equity	1,073,714		1,177,407
Total Liabilities and Equity	1,729,781		1,950,855
Operating segment | Investing and Servicing Segment | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	0		0
Corporate
Assets:
Cash and Cash Equivalents, at Carrying Value	124,945		93,861
Restricted cash	77,163		0
Loans held-for-investment, net	0		0
Loans held-for-sale	0		0
Investment securities	0		0
Properties, net	0		0
Investments in unconsolidated entities	0		0
Goodwill	0		0
Intangible assets	0		0
Derivative assets	0		13,424
Interest Receivable	0		5,988
Other Assets	55,907		21,800
VIE assets, at fair value	0		0
Total Assets	258,015		135,073
Liabilities:
Accounts Payable and Accrued Liabilities	60,171		49,779
Related-party payable	26,146		76,371
Dividends payable	150,196		147,624
Derivative liabilities	73,600		0
Secured financing agreements, net	769,814		773,244
Collateralized loan obligations and single asset securitization, net	0		0
Unsecured senior notes, net	2,326,988		1,828,590
VIE liabilities, at fair value	0		0
Total Liabilities	3,406,915		2,875,608
Temporary Equity: Redeemable non-controlling interests	0		0
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	3,170		3,123
Additional paid-in capital	4,447,676		4,091,685
Treasury stock	(138,022)		(138,022)
Retained earnings (accumulated deficit)	(7,461,724)		(6,697,321)
Accumulated other comprehensive income	0		0
Total Starwood Property Trust, Inc. Stockholders’ Equity	(3,148,900)		(2,740,535)
Non-controlling interests in consolidated subsidiaries	0		0
Total Permanent Equity	(3,148,900)		(2,740,535)
Total Liabilities and Equity	258,015		135,073
Corporate | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	0		0
Securitization VIEs
Assets:
Cash and Cash Equivalents, at Carrying Value	2,550		590
Restricted cash	0		0
Loans held-for-investment, net	0		0
Loans held-for-sale	0		0
Investment securities	(1,678,803)		(1,491,786)
Properties, net	0		0
Investments in unconsolidated entities	(15,996)		(15,256)
Goodwill	0		0
Intangible assets	(41,567)		(42,119)
Derivative assets	0		0
Interest Receivable	(205)		(131)
Other Assets	(374)		(162)
VIE assets, at fair value	54,215,370		61,280,543
Total Assets	52,480,975		59,731,679
Liabilities:
Accounts Payable and Accrued Liabilities	88		56
Related-party payable	0		0
Dividends payable	0		0
Derivative liabilities	0		0
Secured financing agreements, net	(21,267)		(21,560)
Collateralized loan obligations and single asset securitization, net	0		0
Unsecured senior notes, net	0		0
VIE liabilities, at fair value	52,501,845		59,752,922
Total Liabilities	52,480,666		59,731,418
Temporary Equity: Redeemable non-controlling interests	0		0
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	0		0
Additional paid-in capital	0		0
Treasury stock	0		0
Retained earnings (accumulated deficit)	0		0
Accumulated other comprehensive income	0		0
Total Starwood Property Trust, Inc. Stockholders’ Equity	0		0
Non-controlling interests in consolidated subsidiaries	309		261
Total Permanent Equity	309		261
Total Liabilities and Equity	52,480,975		59,731,679
Securitization VIEs | Primary beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	$ 0		$ 0

XML

Subsequent Events - Narrative (Details) - Term Loan Facility - USD ($) $ in Millions		9 Months Ended
	Nov. 03, 2022	Sep. 30, 2022
Subsequent Events
Maximum borrowing capacity		$ 782.8
Floor interest rate (as a percent)		0.75%
Subsequent Event | Line of Credit
Subsequent Events
Maximum borrowing capacity	$ 600.0
Maturity period	5 years
Issue discount percent	3.00%
Subsequent Event | Secured Overnight Financing Rate (SOFR) | Line of Credit
Subsequent Events
Pricing margin	3.25%
Floor interest rate (as a percent)	0.50%

XML

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]