Starwood Property Trust Reports Results for the Quarter and Year Ended December 31, 2015

- Quarterly Core Earnings of $0.55 per Diluted Common Share -

- Full Year 2015 Core Earnings of $2.19 per Diluted Common Share -

- Deploys $5.8 Billion of Capital during 2015, including $1.7 Billion during the Fourth Quarter -

- Declares Dividend of $0.48 per Share for the First Quarter of 2016 -

25 Feb, 2016, 06:52 ET from Starwood Property Trust, Inc.

GREENWICH, Conn., Feb. 25, 2016 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter and year ended December 31, 2015.  The Company reported Core Earnings (a non-GAAP financial measure) of $132.7 million, or $0.55 per diluted share, for the fourth quarter of 2015 and $517.8 million, or $2.19 per diluted share, for the full year.  GAAP net income for the fourth quarter of 2015 was $96.5 million, or $0.40 per diluted share, and $450.7 million, or $1.91 per diluted share, for the full year.

"In the fourth quarter of 2015, we observed a significant change in the real estate credit markets, a widening of spreads and increased volatility driven by a deterioration in high yield markets," said Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust. "As a result, we consciously slowed the pace of our capital deployment. We continued this cautious approach to the markets in the first quarter of 2016, as we expect better opportunities with wider credit spreads to emerge as this storm passes."

"Since our inception, we have deployed over $17 billion in our lending business without a single loss, and I remain more than pleased that our current $6.3 billion lending portfolio enjoys a weighted average loan-to-value of 62.9%," said Mr. Sternlicht. "In addition, our ownership of the nation's largest special servicer gives us a valuable source of market insights and provides us with a unique 'hedge' to our core lending business, as its potential profits should grow significantly if the credit markets continue to deteriorate and legacy CMBS loans—which are set to peak in volume over the next three years—become more difficult to refinance."

"Caution is prudent but it impacts profitability," Mr. Sternlicht added. "On a long-term basis, it ensures stability. However, while undeployed cash is safe, it does not produce our target returns. Given our year-to-date activity and visibility into our investment pipeline, we are confident that we will generate core earnings in excess of our dividend and expect to maintain our $1.92 per share distribution for the full year.  We have built an experienced and deep team at Starwood Property Trust that, together with Starwood Capital's global footprint, can take advantage of changing market dynamics across a wide range of products to produce superior risk-adjusted returns for our shareholders over the long-term."

Highlights for the Fourth Quarter 2015 by Business Segment

The Company currently operates in three reportable segments: Real Estate Lending (the "Lending Segment"), Real Estate Investing and Servicing (the "Investing and Servicing Segment") and Real Estate Property (the "Property Segment"). The Lending Segment primarily represents the Company's on-balance sheet loan origination business. The Investing and Servicing Segment includes the Company's U.S. and European servicing businesses, CMBS investment business, conduit loan origination platform and commercial real estate properties acquired from CMBS trusts.  The Property Segment includes the Company's investments in stabilized commercial real estate properties that are held for investment. 

Real Estate Lending Segment

During the fourth quarter of 2015, the Lending Segment contributed Core Earnings of $103.9 million, or $0.43 per diluted share.  GAAP earnings during the fourth quarter of 2015 were $107.4 million, or $0.45 per diluted share. 

The Lending Segment originated or acquired investments of $678.4 million during the quarter, with fundings of $715.8 million, including $146.8 million relating to previously originated loans. Repayments totaled $643.2 million, including $37.6 million from loan sales. Newly originated loans included:

  • A $240.5 million first mortgage and mezzanine loan for the acquisition of a 6,616-room, 53-property hotel portfolio located throughout the United States.
  • A $155.0 million first mortgage and mezzanine loan for the acquisition and renovation of a 1,242-room hotel and five-story parking garage located in Atlanta, Georgia.
  • A $115.2 million first mortgage for the acquisition of Class A office and retail properties located in Phoenix, Arizona.

Subsequent to year end, the Lending Segment closed $119.2 million of new loan originations with $315.0 million in various stages of closing.

At December 31, 2015, the Lending Segment's principal assets are as follows: 

 

Lending Segment Investments (Amounts in millions)

Investment

Face Amount

Carry Value (1)

Asset Specific Financing (2)

Net Investment

Unlevered Return on Asset

Current Leveraged Return (3)

Optimal Asset-Level Return (4)

First mortgages held-for-investment (5)

$

4,777

$

4,720

$

2,174

$

2,546

6.9

%

9.7

%

11.2

%

Subordinated mortgages held-for-investment

417

392

6

386

11.2

%

11.2

%

11.3

%

Mezzanine loans held-for-investment (5)

850

861

-

861

10.9

%

10.9

%

10.9

%

Preferred equity investments held-to-maturity

19

19

-

19

13.3

%

13.3

%

13.3

%

CMBS held-to-maturity

302

302

180

122

6.1

%

10.2

%

11.2

%

Target portfolio of Lending Segment

$

6,365

$

6,294

$

2,360

$

3,934

7.7

%

10.2

%

11.2

%

RMBS available-for-sale at fair value

234

176

2

174

11.9

%

Loans transferred as secured borrowings

88

87

88

(1)

Equity security

13

14

-

14

Investment in unconsolidated entities

N/A

31

-

31

Total investments

$

6,700

$

6,602

$

2,450

$

4,152

 

Loan-to-Value of Portfolio

The following table reflects the weighted average loan-to-value ("LTV") ratio of the Lending Segment's loan portfolio as of December 31, 2015:

Weighted Average LTV of Loan Portfolio (5)(6)

First Mortgages

Subordinated Mortgages

Mezzanine

Preferred Equity

Total (7)

Beginning LTV

0.0

%

26.7

%

47.8

%

65.5

%

8.7

%

Ending LTV

62.5

%

55.3

%

68.3

%

79.2

%

62.9

%

 

Real Estate Investing and Servicing Segment

During the fourth quarter of 2015, the Investing and Servicing Segment contributed Core Earnings of $62.3 million, or $0.26 per diluted share.  GAAP earnings during the fourth quarter of 2015 were $55.4 million, or $0.23 per diluted share.

Significant activity during the quarter included:

  • Originated $423.4 million of conduit loans and participated in six securitizations totaling $655.6 million.
  • Purchased $141.0 million of CMBS, including $115.9 million in new issue B-pieces.
  • Obtained four new servicing contracts representing $4.0 billion of collateral.
  • Purchased eight properties from CMBS trusts for a gross purchase price of $78.1 million.

At December 31, 2015, the Investing and Servicing Segment's principal assets are as follows: 

 

Investing and Servicing Segment Investments (Amounts in millions)

Investment

Carry Value

Asset Specific Financing

Net Investment

CMBS (8)

$

1,038

$

194

$

844

Special servicing intangibles

134

-

134

Conduit loans

204

147

57

Properties and lease intangibles, net

165

83

82

Investment in unconsolidated entities

53

-

53

     Total investments

$

1,594

$

424

$

1,170

 

As of December 31, 2015, the Company was active special servicer on $10.8 billion of loans and real estate owned and named special servicer on $111.9 billion of loans and real estate owned. 

Real Estate Property Segment

During the fourth quarter of 2015, the Property Segment contributed Core Earnings of $9.3 million, or $0.04 per diluted share.  GAAP earnings during the fourth quarter of 2015 were $3.4 million.

During the fourth quarter of 2015, the Property Segment acquired 18 of the 32 previously announced affordable housing communities referred to as the "Woodstar Portfolio" for $350.4 million.  These 18 properties comprise 5,238 units and were funded with cash, third party debt of $248.6 million and assumed state sponsored financing of $9.0 million.  We expect to acquire the remaining 14 properties in the first quarter of 2016 for a total purchase price of $242.2 million, requiring a net investment of $94.3 million. The 32-property Woodstar Portfolio totals 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach, Florida metropolitan areas which are 98% occupied.    

 

At December 31, 2015, the Property Segment's principal assets were as follows: 

Property Segment Investments (Amounts in millions)

Investment

Net Carrying Value

Asset Specific Financing

Net Investment

Q4 2015 Net Operating Income

Occupancy Rate

Weighted Average Lease Term

Dublin, Ireland:

Office (9)

$

465

$

308

$

157

$

6.7

98.4

%

10.6 years

Multi-family residential (9)

17

11

6

0.2

97.0

%

0.6 years

Southeast, U.S.:

Multi-family residential (9)

346

258

88

3.4

96.8

%

0.5 years

Other:

Investment in unconsolidated entity - retail

122

-

122

2.5

(10)

95.3

%

9.6 years

$

950

$

577

$

373

$

12.8

 

Financing Activities

As of December 31, 2015, the Company had an aggregate outstanding debt balance of $5.4 billion and maximum borrowing capacity of $8.4 billion, with a debt-to-equity ratio of 1.3x. 

During the fourth quarter of 2015, the Company:

  • Executed a $1.0 billion repurchase facility that carries a three-year initial term with two one-year extension options and an annual interest rate of LIBOR plus 2.5%.
  • Amended an existing revolving repurchase facility to upsize available borrowings from $325.0 million to $500.0 million and extend the maturity from October 2018 to October 2020, assuming exercise of available extension options.
  • Repurchased 547,023 shares of common stock at an average price of $19.76 for $10.8 million.

Subsequent to year end, the Company:

  • Amended its share repurchase program to (i) increase the maximum amount of repurchases by $50.0 million to $500.0 million and (ii) extend the program through January 2017.
  • Repurchased 1.1 million shares of common stock at an average price of $18.71 for $19.7 million, bringing the remaining capacity under the repurchase program to $282.1 million as of February 19, 2016.

Book Value and Undepreciated Book Value Per Share

December 31, 2015

September 30, 2015

Undepreciated book value per diluted share (11)

$

17.37

$

17.46

Book value per diluted share

$

17.29

$

17.43

Investment Capacity

As of February 19, 2016, the Company has the capacity to acquire or originate up to $2.4 billion of new investments through (i) $378.9 million of expected maturities, prepayments, sales and participations over the next 90 days; (ii) $1.4 billion of unallocated warehouse capacity; (iii) $401.1 million of approved but undrawn capacity under existing financing facilities; (iv) $342.2 million of available cash and equivalents; and (v) approximately $73.5 million of net equity invested in RMBS that are classified as available-for-sale.

Dividend

On February 25, 2016, the Company's Board of Directors declared a dividend of $0.48 per share of common stock for the quarter ending March 31, 2016. The dividend is payable on April 15, 2016 to common shareholders of record as of March 31, 2016. 

Supplemental Schedules

The Company has published supplemental earnings schedules in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders.  These can be found at the Company's website in the Investor Relations section under "Financial Information".

Conference Call and Webcast Information 

The Company will host a webcast and conference call on Thursday, February 25, 2016 at 10:00 a.m. Eastern Time to discuss fourth quarter financial results and recent events.  A webcast will be available on the Company's website at www.starwoodpropertytrust.com.  To listen to a live broadcast, access the site at least five minutes prior to the scheduled start time in order to register and download and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least five minutes prior to start time.

Domestic:  1-877-627-6582 International:  1-719-325-4878

Conference Call Playback: Domestic:  1-877-870-5176 International:  1-858-384-5517 Passcode:  3330047

The playback can be accessed through March 10, 2016

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The Company's core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiaries LNR Property, LLC and Hatfield Philips International, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe. With total capital deployed since inception of approximately $26 billion, Starwood Property Trust continues to solidify its position as one of the premier real estate finance companies in the country.

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.  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 completion of pending investments, continued ability to acquire additional investments, competition within the finance and real estate industries, economic conditions, availability of financing and other risks detailed from time to time in the Company's reports filed with the SEC.

Footnotes

(1)     The difference between the Carry Value and Face Amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. The difference between the Carry Value and Face Amount of the RMBS available-for-sale securities consists of the unrealized gains/(losses) on the fair value of the securities and unamortized purchase discount.

(2)     Current financings are either floating rate or swapped to fixed rate to match the interest rate characteristics of the underlying asset.

(3)     The current leveraged return represents the compounded effective rate of return earned over the life of the investment based on existing leverage levels as of December 31, 2015, and calculated on a weighted average basis.  Leveraged returns include the loan coupon, amortization of premium or discount, and the effects of costs and fees, all recognized on the effective interest method. Leveraged returns are presented solely for informational purposes and will not equal income recognized in prior or future periods due mainly to the fact that (i) interest earned on the Company's floating rate loans will change in the future when interest rates change, and these leveraged returns assume interest rates remain at current levels and (ii) the leveraged returns assume that the leverage levels existing at December 31, 2015 will be maintained either throughout the remaining term of the applicable credit facilities or the remaining term of the investment, if shorter.  However, leverage levels in future periods will likely fluctuate as the Company manages its day-to-day liquidity.

(4)     The optimal asset-level return assumes (i) maximum available leverage in place or in negotiation for each asset, notwithstanding the amount actually borrowed, and (ii) full syndication of the first mortgage when syndication is deemed probable.

(5)     First mortgages include first mortgage loans and any contiguous subordinated mortgage and/or 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 $930.0 million being classified as first mortgages as of December 31, 2015.

(6)     Underlying property values are determined by the Company's management based on its ongoing asset assessments, and loan balances that are the face value of a loan regardless of whether the Company has purchased the loan at a discount or premium to par. Assets characterized as first mortgages include all loan components where the Company owns the senior most interest in the loan, which may include subordinated mortgages and/or mezzanine loans.  Assets characterized as subordinated mortgages are the subordinated components of first mortgages where the Company does not own the senior most interest in the loan. Assets characterized as mezzanine loans are mezzanine loans where the Company does not own the senior most interest in the loan. For any loans collateralized by ground-up construction projects without significant leasing or units with executed sales contracts, the fully funded loan balance is included in the numerator and the fully budgeted construction cost, including costs of acquisition of the property, is included in the denominator. For ground up construction loans which have significant leasing or units under contract for sale, the fully funded loan balance is included in the numerator with an estimate of the stabilized value upon completion of construction included in the denominator.  Includes loans held for investment and preferred equity.

(7)     Represents the Company's entire investment, which includes all components of the capital stack that it owns (i.e., first mortgages, subordinated mortgages, mezzanine loans and preferred equity).

(8)     Face amount is $4.7 billion. Differences between face amount and carry value are principally attributable to purchase discounts and changes in fair value.

(9)     Net carrying value includes all components of the related asset, including properties and intangibles.

(10) Represents the Company's earnings from unconsolidated entities attributable to the Company's investment in the mall portfolio acquired in the fourth quarter of 2014.

(11) Adjusted for accumulated depreciation and amortization associated with commercial real estate properties. 

 

Starwood Property Trust, Inc. and Subsidiaries Consolidated Statement of Operations by Segment For the three months ended December 31, 2015 (Amounts in thousands)

Investing

Investing

Lending

and Servicing

Property

and Servicing

Segment

Segment

Segment

Corporate

Subtotal

VIEs

Total

Revenues:

Interest income from loans

$

116,916

$

3,696

$

$

$

120,612

$

$

120,612

Interest income from investment securities

10,576

43,782

54,358

(36,921)

17,437

Servicing fees

132

49,079

49,211

(23,082)

26,129

Rental income

4,269

14,622

18,891

18,891

Other revenues

30

3,325

3,355

(201)

3,154

Total revenues

127,654

104,151

14,622

246,427

(60,204)

186,223

Costs and expenses:

Management fees

(218)

18

42,021

41,821

41

41,862

Interest expense

19,808

2,723

2,994

26,004

51,529

51,529

General and administrative

4,843

31,744

803

1,702

39,092

175

39,267

Acquisition and investment pursuit costs

133

1,105

2,456

3,694

3,694

Costs of rental operations

1,983

4,298

6,281

6,281

Depreciation and amortization

3,182

8,681

11,863

11,863

Loan loss allowance, net

(313)

(313)

(313)

Other expense

6

5

11

11

Total costs and expenses

24,259

40,760

19,232

69,727

153,978

216

154,194

Income (loss) before other income, income taxes and non-controlling interests

103,395

63,391

(4,610)

(69,727)

92,449

(60,420)

32,029

Other income:

Change in net assets related to consolidated VIEs

32,091

32,091

Change in fair value of servicing rights

(20,244)

(20,244)

16,050

(4,194)

Change in fair value of investment securities, net

556

(13,133)

(12,577)

12,097

(480)

Change in fair value of mortgage loans held-for-sale, net

13,276

13,276

13,276

Earnings from unconsolidated entities

1,011

2,338

2,459

5,808

119

5,927

Gain on sale of investments and other assets, net

1,844

65

1,909

1,909

Gain (loss) on derivative financial instruments, net

11,162

(911)

4,024

14,275

14,275

Foreign currency (loss) gain, net

(10,096)

99

11

(9,986)

(9,986)

Other income, net

56

1,530

3

1,589

1,589

Total other income (loss)

4,477

(18,454)

8,024

3

(5,950)

60,357

54,407

Income (loss) before income taxes

107,872

44,937

3,414

(69,724)

86,499

(63)

86,436

Income tax (provision) benefit

(106)

10,318

10,212

10,212

Net income (loss)

107,766

55,255

3,414

(69,724)

96,711

(63)

96,648

Net income attributable to non-controlling interests

(359)

99

(260)

63

(197)

Net income (loss) attributable to Starwood Property Trust, Inc.

$

107,407

$

55,354

$

3,414

$

(69,724)

$

96,451

$

$

96,451

 

Definition of Core Earnings

Core 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, Core 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 from successful acquisitions, depreciation and amortization of real estate and associated intangibles,  losses on debt extinguishment and any unrealized gains, losses or other non-cash items recorded in net income for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income. 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. 

 

Reconciliation of Net Income to Core Earnings For the three months ended December 31, 2015 (Amounts in thousands except per share data)

Investing

Lending

and Servicing

Property

Segment

Segment

Segment

Corporate

Total

Net income (loss) attributable to

Starwood Property Trust, Inc.

$

107,407

$

55,354

$

3,414

$

(69,724)

$

96,451

Add / (Deduct):

Non-cash equity compensation expense

326

61

5,343

5,730

Management incentive fee

21,591

21,591

Acquisition and investment pursuit costs

1,020

1,453

2,473

Depreciation and amortization

1,882

8,666

10,548

Loan loss allowance, net

(313)

(313)

Interest income adjustment for securities

(304)

(2,391)

(2,695)

Other non-cash items

(14)

(249)

(263)

Reversal of unrealized (gains) / losses on:

Loans held-for-sale

(13,276)

(13,276)

Securities

(556)

13,133

12,577

Derivatives

(11,941)

181

(4,024)

(15,784)

Foreign currency

10,095

(99)

(11)

9,985

Earnings from unconsolidated entities

(2,338)

(2,338)

Recognition of realized gains / (losses) on:

Loans held-for-sale

18,247

18,247

Securities

(5,274)

(5,274)

Derivatives

4,042

(6,153)

61

(2,050)

Foreign currency

(4,810)

(193)

11

(4,992)

Earnings from unconsolidated entities

2,113

2,113

Core Earnings (Loss)

$

103,946

$

62,253

$

9,321

$

(42,790)

$

132,730

Core Earnings (Loss) per Weighted Average Diluted Share

$

0.43

$

0.26

$

0.04

$

(0.18)

$

0.55

 

Starwood Property Trust, Inc. and Subsidiaries Consolidated Statement of Operations by Segment For the year ended December 31, 2015 (Amounts in thousands)

Investing

Investing

Lending

and Servicing

Property

and Servicing

Segment

Segment

Segment

Corporate

Subtotal

VIEs

Total

Revenues:

Interest income from loans

$

460,365

$

17,566

$

$

$

477,931

$

$

477,931

Interest income from investment securities

68,059

156,365

224,424

(130,759)

93,665

Servicing fees

428

215,770

216,198

(99,130)

117,068

Rental income

11,177

25,445

36,622

36,622

Other revenues

597

10,928

11,525

(934)

10,591

Total revenues

529,449

411,806

25,445

966,700

(230,823)

735,877

Costs and expenses:

Management fees

901

72

123,532

124,505

228

124,733

Interest expense

81,676

10,386

5,584

104,904

202,550

202,550

General and administrative

21,685

123,746

1,205

7,275

153,911

717

154,628

Acquisition and investment pursuit costs

2,065

2,375

8,951

38

13,429

13,429

Costs of rental operations

6,121

5,421

11,542

11,542

Depreciation and amortization

13,972

15,038

29,010

29,010

Loan loss allowance, net

(2)

(2)

(2)

Other expense

6

383

389

389

Total costs and expenses

106,331

157,055

36,199

235,749

535,334

945

536,279

Income (loss) before other income, income taxes and non-controlling interests

423,118

254,751

(10,754)

(235,749)

431,366

(231,768)

199,598

Other income:

Change in net assets related to consolidated VIEs

185,490

185,490

Change in fair value of servicing rights

(46,831)

(46,831)

34,226

(12,605)

Change in fair value of investment securities, net

209

(9,952)

(9,743)

12,827

3,084

Change in fair value of mortgage loans held-for-sale, net

64,320

64,320

64,320

Earnings from unconsolidated entities

4,045

13,042

10,090

27,177

(503)

26,674

Gain on sale of investments and other assets, net

4,839

17,825

22,664

22,664

Gain (loss) on derivative financial instruments, net

30,764

(14,226)

5,060

21,598

21,598

Foreign currency (loss) gain, net

(36,956)

(296)

31

(37,221)

(37,221)

Loss on extinguishment of debt

(5,921)

(5,921)

(5,921)

Other income, net

161

1,530

17

1,708

1,708

Total other income (loss)

2,901

24,043

16,711

(5,904)

37,751

232,040

269,791

Income (loss) before income taxes

426,019

278,794

5,957

(241,653)

469,117

272

469,389

Income tax provision

(242)

(16,964)

(17,206)

(17,206)

Net income (loss)

425,777

261,830

5,957

(241,653)

451,911

272

452,183

Net income attributable to non-controlling interests

(1,389)

175

(1,214)

(272)

(1,486)

Net income (loss) attributable to Starwood Property Trust, Inc.

$

424,388

$

262,005

$

5,957

$

(241,653)

$

450,697

$

$

450,697

 

Reconciliation of Net Income to Core Earnings For the year ended December 31, 2015 (Amounts in thousands except per share data)

Investing

Lending

and Servicing

Property

Segment

Segment

Segment

Corporate

Total

Net income (loss) attributable to

Starwood Property Trust, Inc.

$

424,388

$

262,005

$

5,957

$

(241,653)

$

450,697

Add / (Deduct):

Non-cash equity compensation expense

2,314

3,465

26,984

32,763

Management incentive fee

37,717

37,717

Acquisition and investment pursuit costs

1,020

2,918

3,938

Depreciation and amortization

3,837

14,861

18,698

Loan loss allowance, net

(2)

(2)

Interest income adjustment for securities

(958)

(3,218)

(4,176)

Other non-cash items

(789)

(249)

(1,038)

Reversal of unrealized (gains) / losses on:

Loans held-for-sale

(64,320)

(64,320)

Securities

(209)

9,952

9,743

Derivatives

(33,930)

10,441

(5,060)

(28,549)

Foreign currency

36,956

296

(31)

37,221

Earnings from unconsolidated entities

(13,042)

(13,042)

Recognition of realized gains / (losses) on:

Loans held-for-sale

65,443

65,443

Securities

(22,064)

(22,064)

Derivatives

19,887

(12,929)

61

7,019

Foreign currency

(21,252)

(862)

31

(22,083)

Earnings from unconsolidated entities

9,787

9,787

Core Earnings (Loss)

$

427,194

$

249,022

$

18,488

$

(176,952)

$

517,752

Core Earnings (Loss) per Weighted Average Diluted Share

$

1.81

$

1.05

$

0.08

$

(0.75)

$

2.19

 

Starwood Property Trust, Inc. and Subsidiaries Consolidated Balance Sheet by Segment As of December 31, 2015 (Amounts in thousands)

Investing

Investing

Lending

and Servicing

Property

and Servicing

Segment

Segment

Segment

Corporate

Subtotal

VIEs

Total

Assets:

Cash and cash equivalents

$

83,836

$

62,649

$

2,944

$

218,408

$

367,837

$

978

$

368,815

Restricted cash

9,775

8,826

4,468

23,069

23,069

Loans held-for-investment, net

5,973,079

5,973,079

5,973,079

Loans held-for-sale

203,865

203,865

203,865

Loans transferred as secured borrowings

86,573

86,573

86,573

Investment securities

511,966

1,038,200

1,550,166

(825,219)

724,947

Properties, net

150,497

768,728

919,225

919,225

Intangible assets

152,278

61,121

213,399

(11,829)

201,570

Investment in unconsolidated entities

30,827

53,145

122,454

206,426

(7,225)

199,201

Goodwill

140,437

140,437

140,437

Derivative assets

33,412

2,087

9,592

45,091

45,091

Accrued interest receivable

34,028

286

34,314

34,314

Other assets

27,883

72,936

31,853

11,648

144,320

(2,057)

142,263

VIE assets, at fair value

76,675,689

76,675,689

Total Assets

$

6,791,379

$

1,885,206

$

1,001,160

$

230,056

$

9,907,801

$

75,830,337

$

85,738,138

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$

18,822

$

90,399

$

25,427

$

21,468

$

156,116

$

689

$

156,805

Related-party payable

423

40,532

40,955

40,955

Dividends payable

114,947

114,947

114,947

Derivative liabilities

5,190

6

5,196

5,196

Secured financing agreements, net

2,361,842

423,691

576,934

656,568

4,019,035

4,019,035

Convertible senior notes, net

1,325,243

1,325,243

1,325,243

Secured borrowings on transferred loans

88,000

88,000

88,000

VIE liabilities, at fair value

75,817,014

75,817,014

Total Liabilities

2,473,854

514,519

602,361

2,158,758

5,749,492

75,817,703

81,567,195

Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

2,410

2,410

2,410

Additional paid-in capital

2,477,987

1,146,926

394,465

173,466

4,192,844

4,192,844

Treasury stock

(72,381)

(72,381)

(72,381)

Accumulated other comprehensive income (loss)

37,242

(3,714)

(3,799)

29,729

29,729

Retained earnings (accumulated deficit)

1,790,705

221,073

8,133

(2,032,197)

(12,286)

(12,286)

Total Starwood Property Trust, Inc. Stockholders' Equity

4,305,934

1,364,285

398,799

(1,928,702)

4,140,316

4,140,316

Non-controlling interests in consolidated subsidiaries

11,591

6,402

17,993

12,634

30,627

Total Equity

4,317,525

1,370,687

398,799

(1,928,702)

4,158,309

12,634

4,170,943

Total Liabilities and Equity

$

6,791,379

$

1,885,206

$

1,001,160

$

230,056

$

9,907,801

$

75,830,337

$

85,738,138

 

Additional information can be found on the Company's website at www.starwoodpropertytrust.com

Contact: Zachary Tanenbaum Starwood Property Trust Phone: 203-422-7788 Email: ztanenbaum@starwood.com

SOURCE Starwood Property Trust, Inc.



RELATED LINKS

http://www.starwoodpropertytrust.com