Starwood Property Trust, Inc.: Starwood Property Trust Reports Results for Quarter Ended June 30, 2025

- Quarterly GAAP Earnings of $0.38 and Distributable Earnings (DE) of $0.43 per Diluted Share -

- Invested $3.2 Billion in the Quarter and $5.5 Billion in the 6 Months, Surpassing 2024 Capital
Deployment -

- LNR's Commercial Special Servicer Ratings of CSS1 and CS1 (Highest Ratings Possible) Reaffirmed
by Fitch and Morningstar DBRS -

- Awarded Nareit Gold Investor CARE Award for 9th Time in 11 Years -

- Paid Dividend of $0.48 per Share for Q2 and Declared $0.48 Dividend for Q3 -

- Acquired Fundamental Income Properties, a $2.2 Billion Fully Integrated Net Lease Real Estate
Operating Platform and Owned Portfolio -

MIAMI BEACH, Fla., Aug. 7, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2025. The Company's second quarter 2025 GAAP net income was $129.8 million, and Distributable Earnings (a non-GAAP financial measure) was $151.1 million.

"We have continued to demonstrate the strength and flexibility of our multi-cylinder platform," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "While commercial real estate lending remains a foundational part of our business, it now represents about half of our asset base-a reflection of how far we've diversified and evolved. Our capital deployment has already surpassed full-year 2024 levels, and we're seeing robust investment opportunities across sectors. We are exceptionally well-positioned to capitalize on today's environment."

"As the property markets recover, led by much lower future supply and the imminent projection of lower interest rates, the integration of Fundamental Income marks a significant step in our ongoing evolution and diversification," Sternlicht continued. "Their scalable business, disciplined credit focus, and structuring expertise are highly aligned with our platform. This acquisition adds a powerful new important vertical where we hope to deploy significant capital and grow our earnings going forward with stable recurring cash flows."

"Since our IPO, we've raised over $20 billion in capital, proving our ability to access liquidity through all market conditions," added Jeffrey DiModica, President of Starwood Property Trust. "The recent repricing of our term loans to best-in-class levels reflects the market's confidence in our strategy and credit profile. With $5.0 billion in unencumbered assets, over $1.4 billion in unrealized property gains, no near-term debt maturities, and a diversified business model, we have the tools and financial strength to drive disciplined growth and capture the compelling opportunities ahead."

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, August 7, 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: 1-844-512-2921
International: 1-412-317-6671
Passcode: 13754310
The playback can be accessed through August 21, 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 June 30, 2025, the Company has successfully deployed $108 billion of capital since inception and manages a portfolio of over $27 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, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

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 Tanenbaum
Starwood Property Trust
Phone: [phone]
Email: [email protected]

Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended June 30, 2025 (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	$ 313,595		$ 65,949		$ -		$ 5,675		$ -		$ 385,219		$ -		$ 385,219
Interest income from investment securities	21,335		148		-		21,778		-		43,261		(32,948)		10,313
Servicing fees	111		-		-		18,627		-		18,738		(4,658)		14,080
Rental income	6,532		-		16,237		5,474		-		28,243		-		28,243
Other revenues	2,334		1,087		240		2,231		536		6,428		-		6,428
Total revenues	343,907		67,184		16,477		53,785		536		481,889		(37,606)		444,283
Costs and expenses:
Management fees	177		-		-		-		30,656		30,833		-		30,833
Interest expense	180,494		39,106		9,067		7,794		79,881		316,342		(210)		316,132
General and administrative	15,535		5,523		1,237		24,361		4,416		51,072		-		51,072
Costs of rental operations	4,950		-		5,930		3,632		-		14,512		-		14,512
Depreciation and amortization	2,491		9		5,875		1,744		252		10,371		-		10,371
Credit loss provision, net	3,663		2,003		-		-		-		5,666		-		5,666
Other expense	-		1,693		6		194		-		1,893		-		1,893
Total costs and expenses	207,310		48,334		22,115		37,725		115,205		430,689		(210)		430,479
Other income (loss):
Change in net assets related to consolidated VIEs	-		-		-		-		-		-		40,280		40,280
Change in fair value of servicing rights	-		-		-		3,568		-		3,568		(1,205)		2,363
Change in fair value of investment securities, net	(2,058)		-		-		3,728		-		1,670		(1,325)		345
Change in fair value of mortgage loans, net	8,425		-		-		21,442		-		29,867		-		29,867
Income from affordable housing fund investments	-		-		5,115		-		-		5,115		-		5,115
Earnings from unconsolidated entities	1,412		1,167		-		5,647		-		8,226		(354)		7,872
Gain on sale of investments and other assets, net	31,662		-		-		-		-		31,662		-		31,662
(Loss) gain on derivative financial instruments, net	(116,140)		-		(13)		(1,304)		16,161		(101,296)		-		(101,296)
Foreign currency gain (loss), net	83,257		630		(126)		-		-		83,761		-		83,761
Gain (loss) on extinguishment of debt	20,773		(783)		-		-		-		19,990		-		19,990
Other (loss) income, net	(737)		-		(636)		2,977		-		1,604		-		1,604
Total other income (loss)	26,594		1,014		4,340		36,058		16,161		84,167		37,396		121,563
Income (loss) before income taxes	163,191		19,864		(1,298)		52,118		(98,508)		135,367		-		135,367
Income tax benefit (provision)	5,495		88		-		(6,254)		-		(671)		-		(671)
Net income (loss)	168,686		19,952		(1,298)		45,864		(98,508)		134,696		-		134,696
Net (income) loss attributable to non-controlling interests	(4)		-		(5,326)		448		-		(4,882)		-		(4,882)
Net income (loss) attributable to Starwood Property Trust, Inc	$ 168,682		$ 19,952		$ (6,624)		$ 46,312		$ (98,508)		$ 129,814		$ -		$ 129,814

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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings For the three months ended June 30, 2025 (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	$ 168,682		$ 19,952		$ (6,624)		$ 46,312		$ (98,508)		$ 129,814
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	-		-		4,629		-		-		4,629
Non-controlling interests attributable to unrealized gains/losses	-		-		(3,383)		(2,699)		-		(6,082)
Non-cash equity compensation expense	2,844		723		107		1,367		8,389		13,430
Management incentive fee	-		-		-		-		183		183
Depreciation and amortization	2,528		-		5,987		1,845		-		10,360
Interest income adjustment for loans and securities	5,832		-		-		7,304		-		13,136
Consolidated income tax (benefit) provision associated with fair value adjustments	(5,495)		(88)		-		6,254		-		671
Other non-cash items	5		-		316		(380)		-		(59)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	(8,425)		-		-		(21,442)		-		(29,867)
Credit loss provision, net	3,663		2,003		-		-		-		5,666
Securities	2,058		-		-		(3,728)		-		(1,670)
Woodstar Fund investments	-		-		(5,115)		-		-		(5,115)
Derivatives	116,140		-		13		1,304		(16,161)		101,296
Foreign currency	(83,257)		(630)		126		-		-		(83,761)
Earnings from unconsolidated entities	(1,412)		(1,167)		-		(5,647)		-		(8,226)
Sales of properties	(4,128)		-		-		-		-		(4,128)
Recognition of Distributable realized gains / (losses) on:
Loans	(702)		-		-		19,165		-		18,463
Securities	(316)		-		-		(4,223)		-		(4,539)
Woodstar Fund investments	-		-		21,600		-		-		21,600
Derivatives	17,555		50		(99)		347		(6,868)		10,985
Foreign currency	1,671		91		(125)		-		-		1,637
Earnings (loss) from unconsolidated entities	1,412		(109)		-		5,801		-		7,104
Sales of properties	(44,438)		-		-		-		-		(44,438)
Distributable Earnings (Loss)	$ 174,217		$ 20,825		$ 17,432		$ 51,580		$ (112,965)		$ 151,089
Distributable Earnings (Loss) per Weighted Average Diluted Share	$ 0.49		$ 0.06		$ 0.05		$ 0.15		$ (0.32)		$ 0.43

Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the six months ended June 30, 2025 (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	$ 603,894		$ 126,405		$ -		$ 8,843		$ -		$ 739,142		$ -		$ 739,142
Interest income from investment securities	45,224		302		-		49,952		-		95,478		(72,944)		22,534
Servicing fees	176		-		-		40,456		-		40,632		(9,092)		31,540
Rental income	14,735		-		32,552		10,139		-		57,426		-		57,426
Other revenues	5,344		2,102		474		3,270		631		11,821		-		11,821
Total revenues	669,373		128,809		33,026		112,660		631		944,499		(82,036)		862,463
Costs and expenses:
Management fees	357		-		-		-		71,239		71,596		-		71,596
Interest expense	346,045		74,260		18,044		15,927		154,419		608,695		(405)		608,290
General and administrative	30,141		10,541		2,651		46,862		9,024		99,219		-		99,219
Costs of rental operations	10,468		-		11,948		6,916		-		29,332		-		29,332
Depreciation and amortization	6,098		19		11,740		3,495		503		21,855		-		21,855
Credit loss (reversal) provision, net	(22,096)		2,763		-		-		-		(19,333)		-		(19,333)
Other expense	(25)		3,616		(76)		229		-		3,744		-		3,744
Total costs and expenses	370,988		91,199		44,307		73,429		235,185		815,108		(405)		814,703
Other income (loss):
Change in net assets related to consolidated VIEs	-		-		-		-		-		-		68,971		68,971
Change in fair value of servicing rights	-		-		-		3,454		-		3,454		(338)		3,116
Change in fair value of investment securities, net	5,339		-		-		(18,901)		-		(13,562)		13,734		172
Change in fair value of mortgage loans, net	50,999		-		-		37,272		-		88,271		-		88,271
Income from affordable housing fund investments	-		-		9,025		-		-		9,025		-		9,025
Earnings from unconsolidated entities	2,708		545		-		5,892		-		9,145		(736)		8,409
Gain on sale of investments and other assets, net	31,662		-		-		-		-		31,662		-		31,662
(Loss) gain on derivative financial instruments, net	(181,978)		(19)		(111)		(2,377)		43,500		(140,985)		-		(140,985)
Foreign currency gain (loss), net	117,873		866		(187)		-		-		118,552		-		118,552
Gain (loss) on extinguishment of debt	20,773		(783)		-		-		-		19,990		-		19,990
Other (loss) income, net	(1,226)		-		(1,464)		2,981		-		291		-		291
Total other income (loss)	46,150		609		7,263		28,321		43,500		125,843		81,631		207,474
Income (loss) before income taxes	344,535		38,219		(4,018)		67,552		(191,054)		255,234		-		255,234
Income tax benefit (provision)	5,201		(45)		-		(9,593)		-		(4,437)		-		(4,437)
Net income (loss)	349,736		38,174		(4,018)		57,959		(191,054)		250,797		-		250,797
Net (income) loss attributable to non-controlling interests	(7)		-		(10,410)		1,689		-		(8,728)		-		(8,728)
Net income (loss) attributable to Starwood Property Trust, Inc	$ 349,729		$ 38,174		$ (14,428)		$ 59,648		$ (191,054)		$ 242,069		$ -		$ 242,069

Reconciliation of Net Income to Distributable Earnings For the six months ended June 30, 2025 (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	$ 349,729		$ 38,174		$ (14,428)		$ 59,648		$ (191,054)		$ 242,069
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	-		-		9,288		-		-		9,288
Non-controlling interests attributable to unrealized gains/losses	-		-		(6,757)		(7,202)		-		(13,959)
Non-cash equity compensation expense	5,636		1,323		216		2,764		16,841		26,780
Management incentive fee	-		-		-		-		10,244		10,244
Depreciation and amortization	6,270		-		11,958		3,697		-		21,925
Interest income adjustment for loans and securities	12,048		-		-		22,466		-		34,514
Consolidated income tax provision (benefit} associated with fair value adjustments	(5,201)		45		-		9,593		-		4,437
Other non-cash items	8		-		611		(746)		-		(127)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	(50,999)		-		-		(37,272)		-		(88,271)
Credit loss (reversal) provision, net	(22,096)		2,763		-		-		-		(19,333)
Securities	(5,339)		-		-		18,901		-		13,562
Woodstar Fund investments	-		-		(9,025)		-		-		(9,025)
Derivatives	181,978		19		111		2,377		(43,500)		140,985
Foreign currency	(117,873)		(866)		187		-		-		(118,552)
Earnings from unconsolidated entities	(2,708)		(545)		-		(5,892)		-		(9,145)
Sales of properties	(4,128)		-		-		-		-		(4,128)
Recognition of Distributable realized gains / (losses) on:
Loans	(882)		-		-		33,872		-		32,990
Securities	(347)		-		-		(6,756)		-		(7,103)
Woodstar Fund investments	-		-		41,921		-		-		41,921
Derivatives	46,596		103		(196)		(677)		(13,902)		31,924
Foreign currency	2,057		58		(186)		-		-		1,929
Earnings (loss) from unconsolidated entities	2,708		(217)		-		6,407		-		8,898
Sales of properties	(44,438)		-		-		-		-		(44,438)
Distributable Earnings (Loss)	$ 353,019		$ 40,857		$ 33,700		$ 101,180		$ (221,371)		$ 307,385
Distributable Earnings (Loss) per Weighted Average Diluted Share	$ 1.00		$ 0.12		$ 0.10		$ 0.29		$ (0.63)		$ 0.88

Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheet by Segment As of June 30, 2025 (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	$ 20,699		$ 89,036		$ 31,842		$ 60,226		$ 58,118		$ 259,921		$ -		$ 259,921
Restricted cash	167,090		29,605		1,170		356		16,723		214,944		-		214,944
Loans held-for-investment, net	14,765,064		3,060,322		-		-		-		17,825,386		-		17,825,386
Loans held-for-sale	2,323,276		-		-		171,562		-		2,494,838		-		2,494,838
Investment securities	871,881		17,055		-		1,202,438		-		2,091,374		(1,588,776)		502,598
Properties, net	764,852		-		650,398		64,761		-		1,480,011		-		1,480,011
Investments of consolidated affordable housing fund	-		-		2,055,555		-		-		2,055,555		-		2,055,555
Investments in unconsolidated entities	8,514		54,651		-		33,225		-		96,390		(14,971)		81,419
Goodwill	-		119,409		-		140,437		-		259,846		-		259,846
Intangible assets	3,112		-		20,784		66,619		-		90,515		(36,083)		54,432
Derivative assets	64,565		-		4		11		7,374		71,954		-		71,954
Accrued interest receivable	147,344		16,241		-		816		240		164,641		-		164,641
Other assets	173,709		5,502		58,328		7,913		136,116		381,568		-		381,568
VIE assets, at fair value	-		-		-		-		-		-		36,522,250		36,522,250
Total Assets	$ 19,310,106		$ 3,391,821		$ 2,818,081		$ 1,748,364		$ 218,571		$ 27,486,943		$ 34,882,420		$ 62,369,363
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$ 197,050		$ 31,651		$ 13,658		$ 38,650		$ 117,265		$ 398,274		$ -		$ 398,274
Related-party payable	-		-		-		-		25,846		25,846		-		25,846
Dividends payable	-		-		-		-		166,227		166,227		-		166,227
Derivative liabilities	125,447		-		-		-		16,894		142,341		-		142,341
Secured financing agreements, net	9,820,014		1,195,546		480,912		518,078		1,545,949		13,560,499		(20,110)		13,540,389
Collateralized loan obligations and single asset securitization, net	1,550,966		1,231,809		-		-		-		2,782,775		-		2,782,775
Unsecured senior notes, net	-		-		-		-		3,242,251		3,242,251		-		3,242,251
VIE liabilities, at fair value	-		-		-		-		-		-		34,902,530		34,902,530
Total Liabilities	11,693,477		2,459,006		494,570		556,728		5,114,432		20,318,213		34,882,420		55,200,633
Temporary Equity: Redeemable non-controlling interests	-		-		425,453		-		-		425,453		-		425,453
Permanent Equity:
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	-		-		-		-		3,491		3,491		-		3,491
Additional paid-in capital	1,177,279		635,080		(395,728)		(596,291)		5,575,101		6,395,441		-		6,395,441
Treasury stock	-		-		-		-		(138,022)		(138,022)		-		(138,022)
Retained earnings (accumulated deficit)	6,426,450		297,735		2,087,961		1,672,800		(10,336,431)		148,515		-		148,515
Accumulated other comprehensive income	12,785		-		-		-		-		12,785		-		12,785
Total Starwood Property Trust, Inc. Stockholders' Equity	7,616,514		932,815		1,692,233		1,076,509		(4,895,861)		6,422,210		-		6,422,210
Non-controlling interests in consolidated subsidiaries	115		-		205,825		115,127		-		321,067		-		321,067
Total Permanent Equity	7,616,629		932,815		1,898,058		1,191,636		(4,895,861)		6,743,277		-		6,743,277
Total Liabilities and Equity	$ 19,310,106		$ 3,391,821		$ 2,818,081		$ 1,748,364		$ 218,571		$ 27,486,943		$ 34,882,420		$ 62,369,363

SOURCE Starwood Property Trust, Inc.