Segment Data

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Data

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

The table below presents our results of operations for the three months ended March 31, 2023 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	$	375,601	$	54,760	$	—	$	547	$	—	$	430,908	$	—	$	430,908
Interest income from investment securities	32,521		1,338		—		22,785		—		56,644		(38,007)		18,637
Servicing fees	159		—		—		9,834		—		9,993		(2,737)		7,256
Rental income	1,981		—		23,695		6,613		—		32,289		—		32,289
Other revenues	344		216		103		383		278		1,324		—		1,324
Total revenues	410,606		56,314		23,798		40,162		278		531,158		(40,744)		490,414
Costs and expenses:
Management fees	218		—		—		—		39,322		39,540		—		39,540
Interest expense	226,393		32,818		12,599		7,429		56,272		335,511		(210)		335,301
General and administrative	11,893		3,964		952		20,047		5,252		42,108		—		42,108
Acquisition and investment pursuit costs	207		8		—		54		—		269		—		269
Costs of rental operations	2,451		—		5,549		3,666		—		11,666		—		11,666
Depreciation and amortization	1,631		30		8,108		2,647		—		12,416		—		12,416
Credit loss provision, net	30,790		12,404		—		—		—		43,194		—		43,194
Other expense	832		—		—		16		—		848		—		848
Total costs and expenses	274,415		49,224		27,208		33,859		100,846		485,552		(210)		485,342
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		41,138		41,138
Change in fair value of servicing rights	—		—		—		(50)		—		(50)		354		304
Change in fair value of investment securities, net	14,866		—		—		(14,459)		—		407		(325)		82
Change in fair value of mortgage loans, net	8,262		—		—		639		—		8,901		—		8,901
Income from affordable housing fund investments	—		—		12,965		—		—		12,965		—		12,965
Earnings (loss) from unconsolidated entities	939		1,740		—		679		—		3,358		(633)		2,725
Gain on sale of investments and other assets, net	—		—		—		190		—		190		—		190
(Loss) gain on derivative financial instruments, net	(34,363)		(51)		(1,217)		(3,467)		6,270		(32,828)		—		(32,828)
Foreign currency gain, net	14,930		75		14		—		—		15,019		—		15,019
Loss on extinguishment of debt	(61)		—		—		—		—		(61)		—		(61)
Other loss, net	(2,541)		—		—		—		—		(2,541)		—		(2,541)
Total other income (loss)	2,032		1,764		11,762		(16,468)		6,270		5,360		40,534		45,894
Income (loss) before income taxes	138,223		8,854		8,352		(10,165)		(94,298)		50,966		—		50,966
Income tax benefit	6,557		46		—		2,192		—		8,795		—		8,795
Net income (loss)	144,780		8,900		8,352		(7,973)		(94,298)		59,761		—		59,761
Net income attributable to non-controlling interests	(3)		—		(6,978)		(806)		—		(7,787)		—		(7,787)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	144,777	$	8,900	$	1,374	$	(8,779)	$	(94,298)	$	51,974	$	—	$	51,974

The table below presents our results of operations for the three months ended March 31, 2022 by business segment (amounts in thousands):

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

The table below presents our consolidated balance sheet as of March 31, 2023 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	$	13,903	$	30,948	$	27,742	$	16,910	$	306,296	$	395,799	$	—	$	395,799
Restricted cash	9,872		33,848		943		4,632		86,342		135,637		—		135,637
Loans held-for-investment, net	16,085,101		2,357,831		—		9,492		—		18,452,424		—		18,452,424
Loans held-for-sale	2,733,358		—		—		77,531		—		2,810,889		—		2,810,889
Investment securities	1,257,966		20,841		—		1,149,916		—		2,428,723		(1,655,836)		772,887
Properties, net	464,183		—		860,220		119,576		—		1,443,979		—		1,443,979
Investments of consolidated affordable housing fund	—		—		1,762,162		—		—		1,762,162		—		1,762,162
Investments in unconsolidated entities	24,955		48,819		—		33,178		—		106,952		(13,883)		93,069
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	11,273		—		28,442		65,785		—		105,500		(38,704)		66,796
Derivative assets	90,967		219		3,025		2,408		—		96,619		—		96,619
Accrued interest receivable	171,304		8,408		967		1,356		60		182,095		(288)		181,807
Other assets	218,197		3,658		57,323		20,850		56,048		356,076		—		356,076
VIE assets, at fair value	—		—		—		—		—		—		50,526,390		50,526,390
Total Assets	$	21,081,079	$	2,623,981	$	2,740,824	$	1,642,071	$	448,746	$	28,536,701	$	48,817,679	$	77,354,380
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	154,121	$	19,433	$	13,601	$	23,093	$	67,082	$	277,330	$	—	$	277,330
Related-party payable	—		—		—		—		39,583		39,583		—		39,583
Dividends payable	—		—		—		—		152,267		152,267		—		152,267
Derivative liabilities	21,283		146		—		—		56,978		78,407		—		78,407
Secured financing agreements, net	11,097,202		1,048,486		790,299		591,279		1,340,784		14,868,050		(21,062)		14,846,988
Collateralized loan obligations and single asset securitization, net	2,858,185		814,598		—		—		—		3,672,783		—		3,672,783
Unsecured senior notes, net	—		—		—		—		2,331,445		2,331,445		—		2,331,445
VIE liabilities, at fair value	—		—		—		—		—		—		48,838,686		48,838,686
Total Liabilities	14,130,791		1,882,663		803,900		614,372		3,988,139		21,419,865		48,817,624		70,237,489
Temporary Equity: Redeemable non-controlling interests	—		—		364,418		—		—		364,418		—		364,418
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,197		3,197		—		3,197
Additional paid-in capital	1,702,444		631,627		(415,147)		(639,082)		4,546,667		5,826,509		—		5,826,509
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	5,227,875		109,691		1,779,019		1,505,340		(7,951,235)		670,690		—		670,690
Accumulated other comprehensive income	19,851		—		—		—		—		19,851		—		19,851
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,950,170		741,318		1,363,872		866,258		(3,539,393)		6,382,225		—		6,382,225
Non-controlling interests in consolidated subsidiaries	118		—		208,634		161,441		—		370,193		55		370,248
Total Permanent Equity	6,950,288		741,318		1,572,506		1,027,699		(3,539,393)		6,752,418		55		6,752,473
Total Liabilities and Equity	$	21,081,079	$	2,623,981	$	2,740,824	$	1,642,071	$	448,746	$	28,536,701	$	48,817,679	$	77,354,380

The table below presents our consolidated balance sheet as of December 31, 2022 by business segment (amounts in thousands):

	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Assets:
Cash and cash equivalents	$	68,593	$	31,153	$	31,194	$	39,023	$	91,098	$	261,061	$	—	$	261,061
Restricted cash	18,556		31,133		981		5,259		65,143		121,072		—		121,072
Loans held-for-investment, net	16,038,930		2,352,932		—		9,577		—		18,401,439		—		18,401,439
Loans held-for-sale	2,763,458		—		—		21,136		—		2,784,594		—		2,784,594
Investment securities	1,250,893		66,204		—		1,165,628		—		2,482,725		(1,666,921)		815,804
Properties, net	463,492		—		864,778		121,716		—		1,449,986		—		1,449,986
Investments of consolidated affordable housing fund	—		—		1,761,002		—		—		1,761,002		—		1,761,002
Investments in unconsolidated entities	25,326		47,078		—		33,030		—		105,434		(13,542)		91,892
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	11,908		—		29,613		66,310		—		107,831		(39,058)		68,773
Derivative assets	101,082		122		1,803		5,614		—		108,621		—		108,621
Accrued interest receivable	151,852		9,856		863		1,105		5,120		168,796		(275)		168,521
Other assets	170,177		3,614		54,313		12,929		56,444		297,477		—		297,477
VIE assets, at fair value	—		—		—		—		—		—		52,453,041		52,453,041
Total Assets	$	21,064,267	$	2,661,501	$	2,744,547	$	1,621,764	$	217,805	$	28,309,884	$	50,733,245	$	79,043,129
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	146,897	$	20,656	$	11,716	$	46,377	$	73,353	$	298,999	$	—	$	298,999
Related-party payable	—		—		—		—		41,186		41,186		—		41,186
Dividends payable	—		—		—		—		151,511		151,511		—		151,511
Derivative liabilities	21,523		105		—		—		69,776		91,404		—		91,404
Secured financing agreements, net	10,804,970		1,042,679		789,719		543,256		1,342,074		14,522,698		(21,166)		14,501,532
Collateralized loan obligations and single asset securitization, net	2,862,211		814,013		—		—		—		3,676,224		—		3,676,224
Unsecured senior notes, net	—		—		—		—		2,329,211		2,329,211		—		2,329,211
VIE liabilities, at fair value	—		—		—		—		—		—		50,754,355		50,754,355
Total Liabilities	13,835,601		1,877,453		801,435		589,633		4,007,111		21,111,233		50,733,189		71,844,422
Temporary Equity: Redeemable non-controlling interests	—		—		362,790		—		—		362,790		—		362,790
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,181		3,181		—		3,181
Additional paid-in capital	2,124,496		683,258		(405,955)		(646,662)		4,051,950		5,807,087		—		5,807,087
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	5,083,100		100,790		1,777,643		1,514,119		(7,706,415)		769,237		—		769,237
Accumulated other comprehensive income	20,955		—		—		—		—		20,955		—		20,955
Total Starwood Property Trust, Inc. Stockholders’ Equity	7,228,551		784,048		1,371,688		867,457		(3,789,306)		6,462,438		—		6,462,438
Non-controlling interests in consolidated subsidiaries	115		—		208,634		164,674		—		373,423		56		373,479
Total Permanent Equity	7,228,666		784,048		1,580,322		1,032,131		(3,789,306)		6,835,861		56		6,835,917
Total Liabilities and Equity	$	21,064,267	$	2,661,501	$	2,744,547	$	1,621,764	$	217,805	$	28,309,884	$	50,733,245	$	79,043,129