Segment Data

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 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	$	394,472	$	66,398	$	—	$	2,622	$	—	$	463,492	$	—	$	463,492
Interest income from investment securities	31,405		138		—		21,144		—		52,687		(34,481)		18,206
Servicing fees	128		—		—		13,039		—		13,167		(3,478)		9,689
Rental income	3,565		—		20,775		4,507		—		28,847		—		28,847
Other revenues	983		392		127		748		604		2,854		—		2,854
Total revenues	430,553		66,928		20,902		42,060		604		561,047		(37,959)		523,088
Costs and expenses:
Management fees	192		—		—		—		45,822		46,014		—		46,014
Interest expense	236,149		38,973		13,298		8,317		59,429		356,166		(210)		355,956
General and administrative	16,828		5,955		1,263		23,467		3,150		50,663		—		50,663
Costs of rental operations	2,025		—		5,707		2,612		—		10,344		—		10,344
Depreciation and amortization	1,949		14		5,855		1,749		251		9,818		—		9,818
Credit loss provision, net	34,977		862		—		—		—		35,839		—		35,839
Other expense	730		—		—		(56)		—		674		—		674
Total costs and expenses	292,850		45,804		26,123		36,089		108,652		509,518		(210)		509,308
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		10,086		10,086
Change in fair value of servicing rights	—		—		—		(3,381)		—		(3,381)		3,609		228
Change in fair value of investment securities, net	(6,991)		—		—		(16,458)		—		(23,449)		24,364		915
Change in fair value of mortgage loans, net	(40,677)		—		—		11,664		—		(29,013)		—		(29,013)
Income from affordable housing fund investments	—		—		9,448		—		—		9,448		—		9,448
Earnings from unconsolidated entities	7,345		327		—		313		—		7,985		(310)		7,675
(Loss) gain on sale of investments and other assets, net	(41)		—		92,003		—		—		91,962		—		91,962
Gain (loss) on derivative financial instruments, net	110,952		122		1,721		3,012		(13,868)		101,939		—		101,939
Foreign currency (loss) gain, net	(41,818)		(84)		32		—		—		(41,870)		—		(41,870)
Gain (loss) on extinguishment of debt	315		(560)		(1,209)		—		—		(1,454)		—		(1,454)
Other (loss) income, net	(2,676)		40		—		6		—		(2,630)		—		(2,630)
Total other income (loss)	26,409		(155)		101,995		(4,844)		(13,868)		109,537		37,749		147,286
Income (loss) before income taxes	164,112		20,969		96,774		1,127		(121,916)		161,066		—		161,066
Income tax (provision) benefit	(721)		128		—		(613)		—		(1,206)		—		(1,206)
Net income (loss)	163,391		21,097		96,774		514		(121,916)		159,860		—		159,860
Net (income) loss attributable to non-controlling interests	(3)		—		(6,225)		700		—		(5,528)		—		(5,528)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	163,388	$	21,097	$	90,549	$	1,214	$	(121,916)	$	154,332	$	—	$	154,332

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
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	1,039		8		—		70		—		1,117		—		1,117
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 consolidated balance sheet as of March 31, 2024 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	$	9,602	$	137,049	$	29,103	$	8,340	$	143,269	$	327,363	$	—	$	327,363
Restricted cash	11,506		41,394		1,031		6,862		64,548		125,341		—		125,341
Loans held-for-investment, net	14,221,471		2,376,191		—		9,200		—		16,606,862		—		16,606,862
Loans held-for-sale	2,518,600		47,149		—		123,619		—		2,689,368		—		2,689,368
Investment securities	1,113,081		18,422		—		1,124,724		—		2,256,227		(1,540,154)		716,073
Properties, net	434,365		—		551,502		58,698		—		1,044,565		—		1,044,565

Investments of consolidated affordable housing fund	—		—		2,008,937		—		—		2,008,937		—		2,008,937
Investments in unconsolidated entities	25,371		53,018		—		33,154		—		111,543		(14,616)		96,927
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets	12,724		—		24,505		60,293		—		97,522		(34,255)		63,267
Derivative assets	73,830		216		4,280		4,590		—		82,916		—		82,916
Accrued interest receivable	179,147		11,750		1,484		1,939		178		194,498		—		194,498
Other assets	186,807		5,745		61,505		17,296		48,500		319,853		—		319,853
VIE assets, at fair value	—		—		—		—		—		—		41,633,853		41,633,853
Total Assets	$	18,786,504	$	2,810,343	$	2,682,347	$	1,589,152	$	256,495	$	26,124,841	$	40,044,828	$	66,169,669
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	127,023	$	24,337	$	10,730	$	28,936	$	68,972	$	259,998	$	—	$	259,998
Related-party payable	—		—		—		—		44,226		44,226		—		44,226
Dividends payable	—		—		—		—		153,174		153,174		—		153,174
Derivative liabilities	22,074		—		—		261		52,312		74,647		—		74,647
Secured financing agreements, net	9,051,746		1,069,519		598,850		521,399		1,335,623		12,577,137		(20,650)		12,556,487
Collateralized loan obligations and single asset securitization, net	2,406,928		816,939		—		—		—		3,223,867		—		3,223,867
Unsecured senior notes, net	—		—		—		—		2,751,666		2,751,666		—		2,751,666

VIE liabilities, at fair value	—		—		—		—		—		—		40,065,423		40,065,423
Total Liabilities	11,607,771		1,910,795		609,580		550,596		4,405,973		19,084,715		40,044,773		59,129,488
Temporary Equity: Redeemable non-controlling interests	—		—		415,485		—		—		415,485		—		415,485
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,234		3,234		—		3,234
Additional paid-in capital	1,486,260		705,773		(615,052)		(663,588)		4,972,459		5,885,852		—		5,885,852
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	5,678,294		193,775		2,065,089		1,557,613		(8,987,149)		507,622		—		507,622
Accumulated other comprehensive income	14,061		—		—		—		—		14,061		—		14,061
Total Starwood Property Trust, Inc. Stockholders’ Equity	7,178,615		899,548		1,450,037		894,025		(4,149,478)		6,272,747		—		6,272,747
Non-controlling interests in consolidated subsidiaries	118		—		207,245		144,531		—		351,894		55		351,949
Total Permanent Equity	7,178,733		899,548		1,657,282		1,038,556		(4,149,478)		6,624,641		55		6,624,696
Total Liabilities and Equity	$	18,786,504	$	2,810,343	$	2,682,347	$	1,589,152	$	256,495	$	26,124,841	$	40,044,828	$	66,169,669

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, net	—		—		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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details