Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2024

– GAAP EPS of $0.15 for the Quarter and $1.10 for the Year and Distributable EPS for the Quarter of $0.48 and $2.02 for the Year – – Invested $1.6 Billion in the Quarter, $5.1 Billion for the Year and $1.5 Billion After Year End – – Executed $2.3 Billion of Corporate Debt in the Quarter, Extending Average Maturity to 3.5 Years – – Current Liquidity of $1.8 Billion – – Paid Dividend of $0.48 per Share for the 62nd Straight Quarter – , /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2024. The Company's fourth quarter 2024 GAAP net income was $51.6 million, inclusive of a $52.4 million credit loss provision, and Distributable Earnings (a non-GAAP financial measure) was $166.7 million. The Company's full year 2024 GAAP net income was $359.9 million, inclusive of a $197.4 million credit loss provision, and Distributable Earnings was $675.0 million. "Having a low leverage multi-cylinder platform has allowed us to invest every quarter for 15 years despite volatile and disruptive market conditions, successfully deploying over $100 billion of capital. With capital markets continuing to thaw, we expect to significantly increase our pace of investment in 2025 and have already closed $1.5 billion so far this year," commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "With significant liquidity and proven access to capital at record low spreads, we are well positioned to grow across our investing cylinders. Our success is not reliant on any one of our many businesses. We have $1.5 billion of harvestable unrealized property gains and high return on equity divisions, including our special servicer (the largest named servicer in the U.S.) and our conduit (the largest non-bank contributor into CMBS in 2024)," added Jeffrey DiModica, President of Starwood Property Trust. Supplemental Schedules The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders. Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com. Webcast and Conference Call Information The Company will host a live webcast and conference call on Thursday, February 27, 2025, at 10:00 a.m. Eastern Time. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website. The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. To Participate via Telephone Conference Call: Dial in at least 15 minutes prior to start time.Domestic: 1-877-407-9039 International: 1-201-689-8470 Conference Call Playback: Domestic: 1-844-512-2921International: 1-412-317-6671Passcode: 13750198 The playback can be accessed through March 13, 2025. About Starwood Property Trust, Inc. Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of December 31, 2024, the Company has successfully deployed over $102 billion of capital since inception and manages a portfolio of over $25 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com. Forward-Looking Statements Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC. In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein 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. Additional information can be found on the Company's website at www.starwoodpropertytrust.com. Contact:Zachary TanenbaumStarwood Property TrustPhone: 203-422-7788Email: [email protected] Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended December 31, 2024 (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 $ 321,378 $ 61,119 $ — $ 5,889 $ — $ 388,386 $ — $ 388,386 Interest income from investment securities 26,638 115 — 22,978 — 49,731 (35,359) 14,372 Servicing fees 64 — — 24,067 — 24,131 (6,481) 17,650 Rental income 6,506 — 16,347 4,860 — 27,713 — 27,713 Other revenues 2,349 2,152 198 1,006 563 6,268 — 6,268 Total revenues 356,935 63,386 16,545 58,800 563 496,229 (41,840) 454,389 Costs and expenses: Management fees 187 — — — 41,020 41,207 — 41,207 Interest expense 182,958 35,891 9,647 9,918 72,283 310,697 (208) 310,489 General and administrative 11,160 5,355 727 28,092 4,103 49,437 — 49,437 Costs of rental operations 4,586 — 6,174 2,930 — 13,690 — 13,690 Depreciation and amortization 3,304 13 5,840 1,768 251 11,176 — 11,176 Credit loss provision, net 51,267 1,158 — — — 52,425 — 52,425 Other expense 14 341 — 234 — 589 — 589 Total costs and expenses 253,476 42,758 22,388 42,942 117,657 479,221 (208) 479,013 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 31,870 31,870 Change in fair value of servicing rights — — — 2,408 — 2,408 (184) 2,224 Change in fair value of investment securities, net 4,428 — — (14,303) — (9,875) 10,385 510 Change in fair value of mortgage loans, net (99,184) — — 24,785 — (74,399) — (74,399) Income from affordable housing fund investments — — 91,837 — — 91,837 — 91,837 Earnings (loss) from unconsolidated entities 1,306 2,108 — 427 — 3,841 (439) 3,402 Gain on sale of investments and other assets, net 346 — — 86 — 432 — 432 Gain (loss) on derivative financial instruments, net 184,713 93 50 3,325 (49,231) 138,950 — 138,950 Foreign currency (loss) gain, net (97,800) (666) 102 — — (98,364) — (98,364) Loss on extinguishment of debt — (846) — — (293) (1,139) — (1,139) Other (loss) income, net (2,676) 491 207 — — (1,978) — (1,978) Total other income (loss) (8,867) 1,180 92,196 16,728 (49,524) 51,713 41,632 93,345 Income (loss) before income taxes 94,592 21,808 86,353 32,586 (166,618) 68,721 — 68,721 Income tax benefit (provision) 9,814 (155) — (7,558) — 2,101 — 2,101 Net income (loss) 104,406 21,653 86,353 25,028 (166,618) 70,822 — 70,822 Net (income) loss attributable to non-controlling interests (4) — (23,191) 4,016 — (19,179) — (19,179) Net income (loss) attributable to Starwood Property Trust, Inc. $ 104,402 $ 21,653 $ 63,162 $ 29,044 $ (166,618) $ 51,643 $ — $ 51,643 Definition of Distributable Earnings Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding Distributable Earnings. Reconciliation of Net Income to Distributable Earnings For the three months ended December 31, 2024 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $ 104,402 $ 21,653 $ 63,162 $ 29,044 $ (166,618) $ 51,643 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 4,660 — — 4,660 Non-controlling interests attributable to unrealized gains/losses — — 15,579 (9,463) — 6,116 Non-cash equity compensation expense 2,430 490 82 1,330 5,952 10,284 Management incentive fee — — — — 12,731 12,731 Depreciation and amortization 3,446 2 5,941 1,870 — 11,259 Interest income adjustment for securities 4,361 — — 9,990 — 14,351 Consolidated income tax (benefit) provision associated with fair value adjustments (9,814) 155 — 7,558 — (2,101) Other non-cash items 4 — 277 (117) — 164 Reversal of GAAP unrealized and realized (gains) / losses on: Loans 99,184 — — (24,785) — 74,399 Credit loss provision, net 51,267 1,158 — — — 52,425 Securities (4,428) — — 14,303 — 9,875 Woodstar Fund investments — — (91,837) — — (91,837) Derivatives (184,713) (93) (50) (3,325) 49,231 (138,950) Foreign currency 97,800 666 (102) — — 98,364 Earnings from unconsolidated entities (1,306) (2,108) — (427) — (3,841) Sales of properties — — — (86) — (86) Recognition of Distributable realized gains / (losses) on: Loans (286) — — 25,953 — 25,667 Securities (254) — — (11,633) — (11,887) Woodstar Fund investments — — 16,100 — — 16,100 Derivatives 43,141 65 (411) 8,335 (11,515) 39,615 Foreign currency (13,846) (101) 102 — — (13,845) Earnings (loss) from unconsolidated entities 1,305 (111) — 305 — 1,499 Sales of properties — — — 86 — 86 Distributable Earnings (Loss) $ 192,693 $ 21,776 $ 13,503 $ 48,938 $ (110,219) $ 166,691 Distributable Earnings (Loss) per Weighted Average Diluted Share $ 0.55 $ 0.06 $ 0.04 $ 0.14 $ (0.31) $ 0.48 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the year ended December 31, 2024 (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 $ 1,424,188 $ 255,645 $ — $ 18,234 $ — $ 1,698,067 $ — $ 1,698,067 Interest income from investment securities 116,808 506 — 93,641 — 210,955 (144,150) 66,805 Servicing fees 425 — — 72,579 — 73,004 (17,805) 55,199 Rental income 18,325 — 69,210 20,463 — 107,998 — 107,998 Other revenues 6,804 4,842 772 3,842 2,514 18,774 — 18,774 Total revenues 1,566,550 260,993 69,982 208,759 2,514 2,108,798 (161,955) 1,946,843 Costs and expenses: Management fees 756 — — — 144,421 145,177 — $ 145,177 Interest expense 845,082 151,120 44,972 36,870 271,483 1,349,527 (834) 1,348,693 General and administrative 60,163 19,980 4,428 99,499 15,166 199,236 — 199,236 Costs of rental operations 13,163 — 23,483 11,591 — 48,237 — 48,237 Depreciation and amortization 9,653 56 23,535 7,057 1,005 41,306 — 41,306 Credit loss provision, net 194,260 3,140 — — — 197,400 — 197,400 Other expense 785 516 35 687 — 2,023 — 2,023 Total costs and expenses 1,123,862 174,812 96,453 155,704 432,075 1,982,906 (834) 1,982,072 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 75,706 75,706 Change in fair value of servicing rights — — — 887 — 887 2,119 3,006 Change in fair value of investment securities, net 76 — — (83,748) — (83,672) 84,686 1,014 Change in fair value of mortgage loans, net 3,597 — — 72,283 — 75,880 — 75,880 Income from affordable housing fund investments — — 102,141 — — 102,141 — 102,141 Earnings (loss) from unconsolidated entities 11,599 1,414 — 1,473 — 14,486 (1,390) 13,096 Gain on sale of investments and other assets, net 305 — 92,003 8,402 — 100,710 — 100,710 Gain (loss) on derivative financial instruments, net 196,349 152 1,492 3,454 (43,513) 157,934 — 157,934 Foreign currency (loss) gain, net (73,830) (187) 89 — — (73,928) — (73,928) Gain (loss) on extinguishment of debt 173 (1,466) (2,254) (100) (293) (3,940) — (3,940) Other (loss) income, net (10,013) 531 (949) 50 — (10,381) — (10,381) Total other income (loss) 128,256 444 192,522 2,701 (43,806) 280,117 161,121 441,238 Income (loss) before income taxes 570,944 86,625 166,051 55,756 (473,367) 406,009 — 406,009 Income tax (provision) benefit (9,116) 259 — (16,575) — (25,432) — (25,432) Net income (loss) 561,828 86,884 166,051 39,181 (473,367) 380,577 — 380,577 Net (income) loss attributable to non-controlling interests (14) — (38,201) 17,571 — (20,644) — (20,644) Net income (loss) attributable to Starwood Property Trust, Inc. $ 561,814 $ 86,884 $ 127,850 $ 56,752 $ (473,367) $ 359,933 $ — $ 359,933 Reconciliation of Net Income to Distributable Earnings For the year ended December 31, 2024 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $ 561,814 $ 86,884 $ 127,850 $ 56,752 $ (473,367) $ 359,933 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 18,638 — — 18,638 Non-controlling interests attributable to unrealized gains/losses — — 6,551 (34,961) — (28,410) Non-cash equity compensation expense 9,750 1,975 370 6,127 23,564 41,786 Management incentive fee — — — — 35,324 35,324 Depreciation and amortization 10,239 17 23,896 7,440 — 41,592 Interest income adjustment for securities 20,252 — — 35,593 — 55,845 Consolidated income tax provision (benefit) associated with fair value adjustments 9,116 (259) — 16,575 — 25,432 Other non-cash items 14 — 1,111 (940) — 185 Reversal of GAAP unrealized and realized (gains) / losses on: Loans (3,597) — — (72,283) — (75,880) Credit loss provision, net 194,260 3,140 — — — 197,400 Securities (76) — — 83,748 — 83,672 Woodstar Fund investments — — (102,141) — — (102,141) Derivatives (196,349) (152) (1,492) (3,454) 43,513 (157,934) Foreign currency 73,830 187 (89) — — 73,928 Earnings from unconsolidated entities (11,599) (1,414) — (1,473) — (14,486) Sales of properties — — (92,003) (8,402) — (100,405) Recognition of Distributable realized gains / (losses) on: Loans (5,235) — — 73,214 — 67,979 Realized credit loss — (1,546) — — — (1,546) Securities (9,556) — — (48,711) — (58,267) Woodstar Fund investments — — 70,346 — — 70,346 Derivatives 144,325 334 8,283 9,354 (43,265) 119,031 Foreign currency (26,055) (46) 89 — — (26,012) Earnings (loss) from unconsolidated entities 5,577 (437) — 1,338 — 6,478 Sales of properties — — 39,150 3,323 — 42,473 Distributable Earnings (Loss) $ 776,710 $ 88,683 $ 100,559 $ 123,240 $ (414,231) $ 674,961 Distributable Earnings (Loss) per Weighted Average Diluted Share $ 2.32 $ 0.27 $ 0.30 $ 0.37 $ (1.24) $ 2.02 Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of December 31, 2024 (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 $ 19,743 $ 122,134 $ 24,717 $ 11,946 $ 199,291 $ 377,831 $ — $ 377,831 Restricted cash 147,502 21,986 1,133 5,543 — 176,164 — 176,164 Loans held-for-investment, net 12,895,064 2,541,949 — — — 15,437,013 — 15,437,013 Loans held-for-sale 2,394,624 — — 121,384 — 2,516,008 — 2,516,008 Investment securities 909,762 17,273 — 1,225,024 — 2,152,059 (1,618,801) 533,258 Properties, net 650,966 — 657,246 65,466 — 1,373,678 — 1,373,678 Investments of consolidated affordable housing fund — — 2,073,533 — — 2,073,533 — 2,073,533 Investments in unconsolidated entities 26,441 54,105 — 33,640 — 114,186 (14,816) 99,370 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 10,637 — 22,101 63,711 — 96,449 (35,745) 60,704 Derivative assets 174,507 — 115 898 — 175,520 — 175,520 Accrued interest receivable 150,474 13,961 — 684 2,648 167,767 — 167,767 Other assets 206,103 8,190 52,243 8,700 92,993 368,229 — 368,229 VIE assets, at fair value — — — — — — 38,937,576 38,937,576 Total Assets $ 17,585,823 $ 2,899,007 $ 2,831,088 $ 1,677,433 $ 294,932 $ 25,288,283 $ 37,268,214 $ 62,556,497 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 185,303 $ 30,157 $ 13,232 $ 57,624 $ 148,268 $ 434,584 $ — $ 434,584 Related-party payable — — — — 38,958 38,958 — 38,958 Dividends payable — — — — 163,383 163,383 — 163,383 Derivative liabilities 67,452 — — — 27,438 94,890 — 94,890 Secured financing agreements, net 7,912,536 760,299 479,732 591,094 1,428,227 11,171,888 (20,331) 11,151,557 Collateralized loan obligations and single asset securitization, net 1,966,865 1,229,561 — — — 3,196,426 — 3,196,426 Unsecured senior notes, net — — — — 2,994,682 2,994,682 — 2,994,682 VIE liabilities, at fair value — — — — — — 37,288,545 37,288,545 Total Liabilities 10,132,156 2,020,017 492,964 648,718 4,800,956 18,094,811 37,268,214 55,363,025 Temporary Equity: Redeemable non-controlling interests — — 426,695 — — 426,695 — 426,695 Permanent Equity: Starwood Property Trust, Inc. Stockholders' Equity: Common stock — — — — 3,449 3,449 — 3,449 Additional paid-in capital 1,363,238 619,428 (398,205) (706,746) 5,445,048 6,322,763 — 6,322,763 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 6,076,720 259,562 2,102,389 1,613,151 (9,816,499) 235,323 — 235,323 Accumulated other comprehensive income 13,594 — — — — 13,594 — 13,594 Total Starwood Property Trust, Inc. Stockholders' Equity 7,453,552 878,990 1,704,184 906,405 (4,506,024) 6,437,107 — 6,437,107 Non-controlling interests in consolidated subsidiaries 115 — 207,245 122,310 — 329,670 — 329,670 Total Permanent Equity 7,453,667 878,990 1,911,429 1,028,715 (4,506,024) 6,766,777 — 6,766,777 Total Liabilities and Equity $ 17,585,823 $ 2,899,007 $ 2,831,088 $ 1,677,433 $ 294,932 $ 25,288,283 $ 37,268,214 $ 62,556,497 SOURCE Starwood Property Trust, Inc. 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Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2024

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