Segment and Geographic Data

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Data

Segment and Geographic 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 year ended December 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	$	1,557,631	$	236,884	$	—	$	9,589	$	—	$	1,804,104	$	—	$	1,804,104
Interest income from investment securities	135,130		1,805		—		92,147		—		229,082		(152,558)		76,524
Servicing fees	553		—		—		44,895		—		45,448		(12,327)		33,121
Rental income	8,369		—		93,459		25,838		—		127,666		—		127,666
Other revenues	2,527		1,296		713		2,335		1,622		8,493		—		8,493
Total revenues	1,704,210		239,985		94,172		174,804		1,622		2,214,793		(164,885)		2,049,908
Costs and expenses:
Management fees	496		—		—		—		141,047		141,543		—		141,543
Interest expense	971,028		141,016		54,522		34,611		235,776		1,436,953		(846)		1,436,107
General and administrative	55,782		15,569		4,155		87,619		17,087		180,212		—		180,212
Acquisition and investment pursuit costs	1,128		17		(5)		(215)		—		925		—		925
Costs of rental operations	8,777		—		22,806		13,259		—		44,842		—		44,842
Depreciation and amortization	7,206		103		31,960		9,788		84		49,141		—		49,141
Credit loss provision, net	225,720		18,008		—		—		—		243,728		—		243,728
Other expense	1,730		—		23		67		—		1,820		—		1,820
Total costs and expenses	1,271,867		174,713		113,461		145,129		393,994		2,099,164		(846)		2,098,318
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		181,688		181,688
Change in fair value of servicing rights	—		—		—		401		—		401		1,193		1,594
Change in fair value of investment securities, net	69,259		—		—		(51,889)		—		17,370		(16,603)		767
Change in fair value of mortgage loans, net	25,874		—		—		36,828		—		62,702		—		62,702
Income from affordable housing fund investments	—		—		291,244		—		—		291,244		—		291,244
Earnings (loss) from unconsolidated entities	4,410		5,702		—		8,849		—		18,961		(2,239)		16,722
(Loss) gain on sale of investments and other assets, net	(112)		—		—		25,841		—		25,729		—		25,729
(Loss) gain on derivative financial instruments, net	(25,206)		123		2,111		(4,348)		(11,285)		(38,605)		—		(38,605)
Foreign currency gain (loss), net	60,644		201		(11)		—		—		60,834		—		60,834
Loss on extinguishment of debt	(804)		—		—		(434)		—		(1,238)		—		(1,238)
Other (loss) income, net	(135,576)		—		(5)		29		—		(135,552)		—		(135,552)
Total other income (loss)	(1,511)		6,026		293,339		15,277		(11,285)		301,846		164,039		465,885
Income (loss) before income taxes	430,832		71,298		274,050		44,952		(403,657)		417,475		—		417,475
Income tax benefit (provision)	990		590		—		(898)		—		682		—		682
Net income (loss)	431,822		71,888		274,050		44,054		(403,657)		418,157		—		418,157
Net income attributable to non-controlling interests	(14)		—		(77,156)		(1,774)		—		(78,944)		—		(78,944)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	431,808	$	71,888	$	196,894	$	42,280	$	(403,657)	$	339,213	$	—	$	339,213

The table below presents our results of operations for the year ended 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
Revenues:
Interest income from loans	$	1,058,326	$	150,230	$	—	$	9,965	$	—	$	1,218,521	$	—	$	1,218,521
Interest income from investment securities	102,125		3,681		—		99,043		—		204,849		(139,791)		65,058
Servicing fees	558		—		—		54,836		—		55,394		(15,035)		40,359
Rental income	6,467		—		91,587		30,209		—		128,263		—		128,263
Other revenues	504		451		245		11,258		69		12,527		(12)		12,515
Total revenues	1,167,980		154,362		91,832		205,311		69		1,619,554		(154,838)		1,464,716
Costs and expenses:
Management fees	592		—		—		—		154,959		155,551		—		155,551
Interest expense	501,126		79,137		33,938		26,686		157,097		797,984		(863)		797,121
General and administrative	52,701		14,187		4,069		85,478		18,777		175,212		288		175,500
Acquisition and investment pursuit costs	3,634		3		7		(244)		—		3,400		—		3,400
Costs of rental operations	7,833		—		21,868		14,414		—		44,115		—		44,115
Depreciation and amortization	4,720		387		32,714		11,472		—		49,293		—		49,293
Credit loss provision, net	39,780		6,877		—		—		—		46,657		—		46,657
Other expense	1,251		—		55		8		—		1,314		—		1,314
Total costs and expenses	611,637		100,591		92,651		137,814		330,833		1,273,526		(575)		1,272,951
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		124,001		124,001
Change in fair value of servicing rights	—		—		—		(2,051)		—		(2,051)		3,061		1,010
Change in fair value of investment securities, net	11,818		—		—		(43,179)		—		(31,361)		29,157		(2,204)
Change in fair value of mortgage loans, net	(352,412)		—		—		6,190		—		(346,222)		—		(346,222)
Income from affordable housing fund investments	—		—		755,736		—		—		755,736		—		755,736
(Loss) earnings from unconsolidated entities	(11,242)		3,982		—		2,871		—		(4,389)		(1,934)		(6,323)
Gain on sale of investments and other assets, net	86,532		—		—		51,079		—		137,611		—		137,611
Gain (loss) on derivative financial instruments, net	338,994		1,235		35,081		41,692		(82,987)		334,015		—		334,015
Foreign currency (loss) gain, net	(96,651)		(317)		12		—		—		(96,956)		—		(96,956)
Loss on extinguishment of debt	(209)		(469)		—		(507)		—		(1,185)		—		(1,185)
Other (loss) income, net	(92,632)		—		(1,103)		—		—		(93,735)		25		(93,710)
Total other income (loss)	(115,802)		4,431		789,726		56,095		(82,987)		651,463		154,310		805,773
Income (loss) before income taxes	440,541		58,202		788,907		123,592		(413,751)		997,491		47		997,538
Income tax benefit (provision)	69,199		12		—		(7,688)		—		61,523		—		61,523
Net income (loss)	509,740		58,214		788,907		115,904		(413,751)		1,059,014		47		1,059,061
Net income attributable to non-controlling interests	(14)		—		(172,598)		(14,927)		—		(187,539)		(47)		(187,586)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	509,726	$	58,214	$	616,309	$	100,977	$	(413,751)	$	871,475	$	—	$	871,475

The table below presents our results of operations for the year ended December 31, 2021 by business segment (amounts in thousands):

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

The table below presents our consolidated balance sheet as of December 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	$	8,823	$	56,300	$	19,957	$	22,011	$	87,569	$	194,660	$	—	$	194,660
Restricted cash	23,902		28,693		1,016		5,175		58,526		117,312		—		117,312
Loans held-for-investment, net	15,069,389		2,495,660		—		9,200		—		17,574,249		—		17,574,249
Loans held-for-sale	2,604,594		—		—		41,043		—		2,645,637		—		2,645,637
Investment securities	1,147,829		19,042		—		1,147,550		—		2,314,421		(1,578,859)		735,562
Properties, net	431,155		—		555,455		59,774		—		1,046,384		—		1,046,384
Properties held-for-sale	—		—		290,937		—		—		290,937		—		290,937
Investments of consolidated affordable housing fund	—		—		2,012,833		—		—		2,012,833		—		2,012,833
Investments in unconsolidated entities	19,151		52,691		—		33,134		—		104,976		(14,600)		90,376
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	13,415		—		25,432		63,985		—		102,832		(37,865)		64,967
Derivative assets	55,559		84		5,638		2,156		—		63,437		—		63,437
Accrued interest receivable	180,441		12,485		1,502		1,369		5,070		200,867		—		200,867
Other assets	301,436		3,486		50,459		15,828		49,564		420,773		—		420,773
VIE assets, at fair value	—		—		—		—		—		—		43,786,356		43,786,356
Total Assets	$	19,855,694	$	2,787,850	$	2,963,229	$	1,541,662	$	200,729	$	27,349,164	$	42,155,032	$	69,504,196
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	106,236	$	45,232	$	12,225	$	44,452	$	85,297	$	293,442	$	—	$	293,442
Related-party payable	—		—		—		—		44,816		44,816		—		44,816
Dividends payable	—		—		—		—		152,888		152,888		—		152,888
Derivative liabilities	54,066		—		—		—		48,401		102,467		—		102,467
Secured financing agreements, net	10,368,668		1,088,965		598,350		495,857		1,336,913		13,888,753		(20,757)		13,867,996
Collateralized loan obligations and single asset securitization, net	2,674,938		816,354		—		—		—		3,491,292		—		3,491,292
Unsecured senior notes, net	—		—		—		—		2,158,888		2,158,888		—		2,158,888
Debt related to properties held-for-sale	—		—		193,691		—		—		193,691		—		193,691
VIE liabilities, at fair value	—		—		—		—		—		—		42,175,734		42,175,734
Total Liabilities	13,203,908		1,950,551		804,266		540,309		3,827,203		20,326,237		42,154,977		62,481,214
Temporary Equity: Redeemable non-controlling interests	—		—		414,348		—		—		414,348		—		414,348
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,208		3,208		—		3,208
Additional paid-in capital	1,121,413		664,621		(437,169)		(705,176)		5,220,981		5,864,670		—		5,864,670
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	5,514,906		172,678		1,974,539		1,556,399		(8,712,641)		505,881		—		505,881
Accumulated other comprehensive income	15,352		—		—		—		—		15,352		—		15,352
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,651,671		837,299		1,537,370		851,223		(3,626,474)		6,251,089		—		6,251,089
Non-controlling interests in consolidated subsidiaries	115		—		207,245		150,130		—		357,490		55		357,545
Total Permanent Equity	6,651,786		837,299		1,744,615		1,001,353		(3,626,474)		6,608,579		55		6,608,634
Total Liabilities and Equity	$	19,855,694	$	2,787,850	$	2,963,229	$	1,541,662	$	200,729	$	27,349,164	$	42,155,032	$	69,504,196

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

Revenues generated from foreign sources were $455.6 million, $275.3 million and $177.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. The majority of our revenues generated from foreign sources are derived from the United Kingdom and Australia. Refer to Schedules III and IV for a detailed listing of the properties and loans held by the Company, including their respective geographic locations.