GREENWICH, Conn., Feb. 23, 2017 /PRNewswire/ -- Starwood Property
Trust, Inc. (NYSE: STWD) today announced operating results for the
fiscal quarter and year ended December
31, 2016. The Company's fourth quarter 2016 GAAP net
income was $121.3 million, or
$0.49 per diluted share, and
$365.2 million, or $1.50 per diluted share, for the full year.
Core Earnings (a non-GAAP financial measure) for the fourth quarter
was $122.6 million, or $0.50 per diluted share, and $502.5 million or $2.09 per diluted share, for the full year.
Excluding the write-off of unamortized costs associated with the
early retirement of the Company's term loan due 2020, GAAP and Core
Earnings per diluted share for the quarter were $0.52 and $0.53,
respectively.
"We continued to generate strong results driven by the
successful execution of our business plan, as evidenced by the
$6.4 billion of capital we deployed
in 2016 across our diversified platform. The fourth quarter was
actually the most active of the year for our largest business, our
lending segment, and that momentum has continued into the first
quarter. We also expanded our capital sources, highlighted by
the completion of our inaugural senior unsecured notes offering,
which brought our maximum total borrowing capacity to $10.2 billion. As a result of these efforts, we
received a corporate credit rating upgrade which is an important
endorsement of our ability to maintain an attractive risk return
profile with our high credit quality standards. As we look ahead to
2017, we expect to continue to capitalize on our robust pipeline of
opportunities in order to deliver attractive total returns for our
shareholders."
Dividend
On February 23, 2017, the
Company's Board of Directors declared a dividend of $0.48 per share of common stock for the quarter
ending March 31, 2017. The dividend
is payable on April 14, 2017 to
common stockholders of record as of March
31, 2017.
2017 Outlook
Given its current outlook, the Company is confident that it will
generate Core Earnings in excess of the dividend and expects to
maintain a $1.92 per share
distribution for the full year.
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 at the Company's
website in the Investor Relations section under "Financial
Information" at www.starwoodpropertytrust.com.
Conference Call and Webcast Information
The Company will host a webcast and conference call on
Thursday, February 23, 2017, 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: 1-888-334-3034
International: 1-719-457-0349
Conference Call Playback:
Domestic:
1-844-512-2921
International: 1-412-317-6671
Passcode: 2989173
The playback can be accessed through March 9, 2017.
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 subsidiary LNR Property, LLC,
Starwood Property Trust also operates as the largest commercial
mortgage special servicer in the United
States. With total capital deployed since inception of over
$32 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.
|
Starwood Property
Trust, Inc. and Subsidiaries
|
|
|
Condensed
Consolidated Statement of Operations by Segment
|
|
For the three
months ended December 31, 2016
|
|
(Amounts in
thousands)
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
Lending
|
|
and Servicing
|
|
Property
|
|
|
|
|
|
and Servicing
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
|
$
|
101,010
|
|
$
|
4,871
|
|
$
|
—
|
|
$
|
—
|
|
$
|
105,881
|
|
$
|
—
|
|
$
|
105,881
|
|
Interest income from
investment
securities
|
|
|
13,266
|
|
|
31,357
|
|
|
—
|
|
|
—
|
|
|
44,623
|
|
|
(27,654)
|
|
|
16,969
|
|
Servicing
fees
|
|
|
222
|
|
|
33,796
|
|
|
—
|
|
|
—
|
|
|
34,018
|
|
|
(15,983)
|
|
|
18,035
|
|
Rental
income
|
|
|
—
|
|
|
13,009
|
|
|
29,489
|
|
|
—
|
|
|
42,498
|
|
|
—
|
|
|
42,498
|
|
Other
revenues
|
|
|
62
|
|
|
1,145
|
|
|
27
|
|
|
—
|
|
|
1,234
|
|
|
(140)
|
|
|
1,094
|
|
Total
revenues
|
|
|
114,560
|
|
|
84,178
|
|
|
29,516
|
|
|
—
|
|
|
228,254
|
|
|
(43,777)
|
|
|
184,477
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
|
|
534
|
|
|
24
|
|
|
—
|
|
|
40,333
|
|
|
40,891
|
|
|
50
|
|
|
40,941
|
|
Interest
expense
|
|
|
20,415
|
|
|
4,540
|
|
|
5,846
|
|
|
27,031
|
|
|
57,832
|
|
|
(270)
|
|
|
57,562
|
|
General and
administrative
|
|
|
4,988
|
|
|
25,414
|
|
|
1,079
|
|
|
1,612
|
|
|
33,093
|
|
|
171
|
|
|
33,264
|
|
Acquisition and
investment pursuit costs
|
|
|
63
|
|
|
969
|
|
|
6,369
|
|
|
379
|
|
|
7,780
|
|
|
—
|
|
|
7,780
|
|
Costs of rental
operations
|
|
|
—
|
|
|
6,043
|
|
|
12,540
|
|
|
—
|
|
|
18,583
|
|
|
—
|
|
|
18,583
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
4,854
|
|
|
8,747
|
|
|
—
|
|
|
13,601
|
|
|
—
|
|
|
13,601
|
|
Loan loss allowance,
net
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
|
364
|
|
Other
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total costs and
expenses
|
|
|
26,364
|
|
|
41,844
|
|
|
34,581
|
|
|
69,355
|
|
|
172,144
|
|
|
(49)
|
|
|
172,095
|
|
Income (loss)
before other income (loss), income taxes and non-controlling
interests
|
|
|
88,196
|
|
|
42,334
|
|
|
(5,065)
|
|
|
(69,355)
|
|
|
56,110
|
|
|
(43,728)
|
|
|
12,382
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,205
|
|
|
57,205
|
|
Change in fair value
of servicing
rights
|
|
|
—
|
|
|
(9,548)
|
|
|
—
|
|
|
—
|
|
|
(9,548)
|
|
|
(4,388)
|
|
|
(13,936)
|
|
Change in fair value
of investment securities, net
|
|
|
57
|
|
|
(645)
|
|
|
—
|
|
|
—
|
|
|
(588)
|
|
|
(99)
|
|
|
(687)
|
|
Change in fair value
of mortgage
loans held-for-sale, net
|
|
|
—
|
|
|
4,129
|
|
|
—
|
|
|
—
|
|
|
4,129
|
|
|
—
|
|
|
4,129
|
|
Earnings from
unconsolidated
entities
|
|
|
903
|
|
|
5,657
|
|
|
2,423
|
|
|
—
|
|
|
8,983
|
|
|
(109)
|
|
|
8,874
|
|
Gain on sale of
investments and
other assets, net
|
|
|
1,551
|
|
|
226
|
|
|
—
|
|
|
—
|
|
|
1,777
|
|
|
—
|
|
|
1,777
|
|
Gain on derivative
financial
instruments, net
|
|
|
23,752
|
|
|
13,462
|
|
|
40,313
|
|
|
—
|
|
|
77,527
|
|
|
—
|
|
|
77,527
|
|
Foreign currency
(loss) gain, net
|
|
|
(14,094)
|
|
|
699
|
|
|
3
|
|
|
5
|
|
|
(13,387)
|
|
|
—
|
|
|
(13,387)
|
|
OTTI
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
|
(17)
|
|
Loss on
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,781)
|
|
|
(8,781)
|
|
|
—
|
|
|
(8,781)
|
|
Other income,
net
|
|
|
—
|
|
|
8,847
|
|
|
—
|
|
|
2,487
|
|
|
11,334
|
|
|
(8,822)
|
|
|
2,512
|
|
Total other income
(loss)
|
|
|
12,169
|
|
|
22,810
|
|
|
42,739
|
|
|
(6,289)
|
|
|
71,429
|
|
|
43,787
|
|
|
115,216
|
|
Income (loss)
before income taxes
|
|
|
100,365
|
|
|
65,144
|
|
|
37,674
|
|
|
(75,644)
|
|
|
127,539
|
|
|
59
|
|
|
127,598
|
|
Income tax benefit
(provision)
|
|
|
1,685
|
|
|
(6,562)
|
|
|
—
|
|
|
—
|
|
|
(4,877)
|
|
|
—
|
|
|
(4,877)
|
|
Net income
(loss)
|
|
|
102,050
|
|
|
58,582
|
|
|
37,674
|
|
|
(75,644)
|
|
|
122,662
|
|
|
59
|
|
|
122,721
|
|
Net income
attributable to non-controlling interests
|
|
|
(348)
|
|
|
(1,024)
|
|
|
—
|
|
|
—
|
|
|
(1,372)
|
|
|
(59)
|
|
|
(1,431)
|
|
Net income (loss)
attributable
to Starwood Property
Trust, Inc.
|
|
$
|
101,702
|
|
$
|
57,558
|
|
$
|
37,674
|
|
$
|
(75,644)
|
|
$
|
121,290
|
|
$
|
—
|
|
$
|
121,290
|
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 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, 2016
|
|
(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.
|
|
$
|
101,702
|
|
$
|
57,558
|
|
$
|
37,674
|
|
$
|
(75,644)
|
|
$
|
121,290
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash equity
compensation expense
|
|
|
719
|
|
|
3,585
|
|
|
22
|
|
|
5,812
|
|
|
10,138
|
|
Management incentive
fee
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,072
|
|
|
19,072
|
|
Acquisition and
investment pursuit costs
|
|
|
—
|
|
|
517
|
|
|
6,334
|
|
|
344
|
|
|
7,195
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
3,850
|
|
|
8,865
|
|
|
—
|
|
|
12,715
|
|
Loan loss allowance,
net
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
364
|
|
Interest income
adjustment for securities
|
|
|
(276)
|
|
|
8,756
|
|
|
—
|
|
|
—
|
|
|
8,480
|
|
Bargain purchase
gains
|
|
|
—
|
|
|
(8,822)
|
|
|
—
|
|
|
—
|
|
|
(8,822)
|
|
Other non-cash
items
|
|
|
—
|
|
|
(202)
|
|
|
(593)
|
|
|
—
|
|
|
(795)
|
|
Reversal of
unrealized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
(4,129)
|
|
|
—
|
|
|
—
|
|
|
(4,129)
|
|
Securities
|
|
|
(57)
|
|
|
645
|
|
|
—
|
|
|
—
|
|
|
588
|
|
Derivatives
|
|
|
(24,344)
|
|
|
(13,804)
|
|
|
(40,334)
|
|
|
—
|
|
|
(78,482)
|
|
Foreign
currency
|
|
|
14,094
|
|
|
(699)
|
|
|
(3)
|
|
|
(5)
|
|
|
13,387
|
|
Earnings from
unconsolidated entities
|
|
|
(903)
|
|
|
(5,657)
|
|
|
(2,423)
|
|
|
—
|
|
|
(8,983)
|
|
Recognition of
realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
2,802
|
|
|
—
|
|
|
—
|
|
|
2,802
|
|
Securities
|
|
|
—
|
|
|
8,848
|
|
|
—
|
|
|
—
|
|
|
8,848
|
|
Derivatives
|
|
|
73
|
|
|
13,845
|
|
|
212
|
|
|
—
|
|
|
14,130
|
|
Foreign
currency
|
|
|
(887)
|
|
|
527
|
|
|
3
|
|
|
5
|
|
|
(352)
|
|
Earnings from
unconsolidated entities
|
|
|
903
|
|
|
1,818
|
|
|
2,425
|
|
|
—
|
|
|
5,146
|
|
Core Earnings
(Loss)
|
|
$
|
91,388
|
|
$
|
69,438
|
|
$
|
12,182
|
|
$
|
(50,416)
|
|
$
|
122,592
|
|
Core Earnings
(Loss) per Weighted Average
Diluted Share
|
|
$
|
0.38
|
|
$
|
0.28
|
|
$
|
0.05
|
|
$
|
(0.21)
|
|
$
|
0.50
|
|
Starwood Property
Trust, Inc. and Subsidiaries
|
|
Condensed
Consolidated Statement of Operations by Segment
|
|
For the year ended
December 31, 2016
|
|
(Amounts in
thousands)
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
Lending
|
|
and Servicing
|
|
Property
|
|
|
|
|
|
and Servicing
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
loans
|
|
$
|
449,470
|
|
$
|
17,725
|
|
$
|
—
|
|
$
|
—
|
|
$
|
467,195
|
|
$
|
—
|
|
$
|
467,195
|
|
Interest income from
investment securities
|
|
|
47,241
|
|
|
146,692
|
|
|
—
|
|
|
—
|
|
|
193,933
|
|
|
(123,085)
|
|
|
70,848
|
|
Servicing
fees
|
|
|
782
|
|
|
144,941
|
|
|
—
|
|
|
—
|
|
|
145,723
|
|
|
(56,767)
|
|
|
88,956
|
|
Rental
income
|
|
|
—
|
|
|
38,223
|
|
|
114,537
|
|
|
—
|
|
|
152,760
|
|
|
—
|
|
|
152,760
|
|
Other
revenues
|
|
|
242
|
|
|
5,255
|
|
|
62
|
|
|
—
|
|
|
5,559
|
|
|
(651)
|
|
|
4,908
|
|
Total
revenues
|
|
|
497,735
|
|
|
352,836
|
|
|
114,599
|
|
|
—
|
|
|
965,170
|
|
|
(180,503)
|
|
|
784,667
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
|
|
1,829
|
|
|
78
|
|
|
—
|
|
|
115,348
|
|
|
117,255
|
|
|
196
|
|
|
117,451
|
|
Interest
expense
|
|
|
88,000
|
|
|
15,983
|
|
|
22,009
|
|
|
105,267
|
|
|
231,259
|
|
|
(460)
|
|
|
230,799
|
|
General and
administrative
|
|
|
18,517
|
|
|
121,140
|
|
|
3,338
|
|
|
9,243
|
|
|
152,238
|
|
|
703
|
|
|
152,941
|
|
Acquisition and
investment pursuit costs
|
|
|
1,665
|
|
|
2,520
|
|
|
7,886
|
|
|
1,391
|
|
|
13,462
|
|
|
—
|
|
|
13,462
|
|
Costs of rental
operations
|
|
|
—
|
|
|
17,638
|
|
|
47,463
|
|
|
—
|
|
|
65,101
|
|
|
—
|
|
|
65,101
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
16,117
|
|
|
50,669
|
|
|
—
|
|
|
66,786
|
|
|
—
|
|
|
66,786
|
|
Loan loss allowance,
net
|
|
|
3,759
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,759
|
|
|
—
|
|
|
3,759
|
|
Other
expense
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
Total costs and
expenses
|
|
|
113,770
|
|
|
173,576
|
|
|
131,365
|
|
|
231,249
|
|
|
649,960
|
|
|
439
|
|
|
650,399
|
|
Income (loss)
before other income
(loss), income taxes and non-
controlling interests
|
|
|
383,965
|
|
|
179,260
|
|
|
(16,766)
|
|
|
(231,249)
|
|
|
315,210
|
|
|
(180,942)
|
|
|
134,268
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets
related to consolidated VIEs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151,593
|
|
|
151,593
|
|
Change in fair value
of servicing
rights
|
|
|
—
|
|
|
(43,258)
|
|
|
—
|
|
|
—
|
|
|
(43,258)
|
|
|
(3,891)
|
|
|
(47,149)
|
|
Change in fair value
of investment securities, net
|
|
|
20
|
|
|
(44,094)
|
|
|
—
|
|
|
—
|
|
|
(44,074)
|
|
|
42,673
|
|
|
(1,401)
|
|
Change in fair value
of mortgage
loans held-for-sale, net
|
|
|
—
|
|
|
74,251
|
|
|
—
|
|
|
—
|
|
|
74,251
|
|
|
—
|
|
|
74,251
|
|
Earnings from
unconsolidated
entities
|
|
|
3,447
|
|
|
8,937
|
|
|
9,736
|
|
|
—
|
|
|
22,120
|
|
|
(397)
|
|
|
21,723
|
|
Gain on sale of
investments and
other assets, net
|
|
|
1,716
|
|
|
226
|
|
|
—
|
|
|
—
|
|
|
1,942
|
|
|
—
|
|
|
1,942
|
|
Gain (loss) on
derivative financial instruments, net
|
|
|
41,576
|
|
|
(4,318)
|
|
|
33,476
|
|
|
—
|
|
|
70,734
|
|
|
—
|
|
|
70,734
|
|
Foreign currency
(loss) gain, net
|
|
|
(37,595)
|
|
|
3,661
|
|
|
(38)
|
|
|
5
|
|
|
(33,967)
|
|
|
—
|
|
|
(33,967)
|
|
OTTI
|
|
|
—
|
|
|
(215)
|
|
|
(513)
|
|
|
—
|
|
|
(728)
|
|
|
—
|
|
|
(728)
|
|
Loss on
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,781)
|
|
|
(8,781)
|
|
|
—
|
|
|
(8,781)
|
|
Other income,
net
|
|
|
—
|
|
|
8,959
|
|
|
9,102
|
|
|
4,271
|
|
|
22,332
|
|
|
(8,822)
|
|
|
13,510
|
|
Total other income
(loss)
|
|
|
9,164
|
|
|
4,149
|
|
|
51,763
|
|
|
(4,505)
|
|
|
60,571
|
|
|
181,156
|
|
|
241,727
|
|
Income (loss)
before income taxes
|
|
|
393,129
|
|
|
183,409
|
|
|
34,997
|
|
|
(235,754)
|
|
|
375,781
|
|
|
214
|
|
|
375,995
|
|
Income tax benefit
(provision)
|
|
|
1,610
|
|
|
(9,954)
|
|
|
—
|
|
|
—
|
|
|
(8,344)
|
|
|
—
|
|
|
(8,344)
|
|
Net income
(loss)
|
|
|
394,739
|
|
|
173,455
|
|
|
34,997
|
|
|
(235,754)
|
|
|
367,437
|
|
|
214
|
|
|
367,651
|
|
Net income
attributable to non-controlling interests
|
|
|
(1,398)
|
|
|
(853)
|
|
|
—
|
|
|
—
|
|
|
(2,251)
|
|
|
(214)
|
|
|
(2,465)
|
|
Net income (loss)
attributable
to Starwood Property
Trust, Inc.
|
|
$
|
393,341
|
|
$
|
172,602
|
|
$
|
34,997
|
|
$
|
(235,754)
|
|
$
|
365,186
|
|
$
|
—
|
|
$
|
365,186
|
|
Reconciliation of
Net Income to Core Earnings
|
|
For the year ended
December 31, 2016
|
|
(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.
|
|
$
|
393,341
|
|
$
|
172,602
|
|
$
|
34,997
|
|
$
|
(235,754)
|
|
$
|
365,186
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash equity
compensation expense
|
|
|
2,829
|
|
|
7,370
|
|
|
111
|
|
|
22,705
|
|
|
33,015
|
|
Management incentive
fee
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,842
|
|
|
32,842
|
|
Acquisition and
investment pursuit costs
|
|
|
—
|
|
|
1,421
|
|
|
7,755
|
|
|
356
|
|
|
9,532
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
12,768
|
|
|
50,862
|
|
|
—
|
|
|
63,630
|
|
Loan loss allowance,
net
|
|
|
3,759
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,759
|
|
Interest income
adjustment for securities
|
|
|
(1,016)
|
|
|
19,376
|
|
|
—
|
|
|
—
|
|
|
18,360
|
|
Bargain purchase
gains
|
|
|
—
|
|
|
(8,822)
|
|
|
(8,406)
|
|
|
—
|
|
|
(17,228)
|
|
Other non-cash
items
|
|
|
—
|
|
|
45
|
|
|
(3,109)
|
|
|
—
|
|
|
(3,064)
|
|
Reversal of
unrealized (gains) / losses on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
(74,251)
|
|
|
—
|
|
|
—
|
|
|
(74,251)
|
|
Securities
|
|
|
(20)
|
|
|
44,094
|
|
|
—
|
|
|
—
|
|
|
44,074
|
|
Derivatives
|
|
|
(44,151)
|
|
|
2,526
|
|
|
(33,497)
|
|
|
—
|
|
|
(75,122)
|
|
Foreign
currency
|
|
|
37,595
|
|
|
(3,661)
|
|
|
38
|
|
|
(5)
|
|
|
33,967
|
|
Earnings from
unconsolidated entities
|
|
|
(3,447)
|
|
|
(8,937)
|
|
|
(9,736)
|
|
|
—
|
|
|
(22,120)
|
|
Recognition of
realized gains / (losses) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
74,192
|
|
|
—
|
|
|
—
|
|
|
74,192
|
|
Securities
|
|
|
—
|
|
|
(2,288)
|
|
|
—
|
|
|
—
|
|
|
(2,288)
|
|
Derivatives
|
|
|
33,384
|
|
|
(2,013)
|
|
|
186
|
|
|
—
|
|
|
31,557
|
|
Foreign
currency
|
|
|
(32,803)
|
|
|
3,352
|
|
|
(38)
|
|
|
5
|
|
|
(29,484)
|
|
Earnings from
unconsolidated entities
|
|
|
4,051
|
|
|
4,673
|
|
|
7,245
|
|
|
—
|
|
|
15,969
|
|
Core Earnings
(Loss)
|
|
$
|
393,522
|
|
$
|
242,447
|
|
$
|
46,408
|
|
$
|
(179,851)
|
|
$
|
502,526
|
|
Core Earnings
(Loss) per Weighted Average
Diluted Share
|
|
$
|
1.64
|
|
$
|
1.01
|
|
$
|
0.19
|
|
$
|
(0.75)
|
|
$
|
2.09
|
|
Starwood Property
Trust, Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheet by Segment
|
|
As of December 31,
2016
|
|
(Amounts in
thousands)
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
Lending
|
|
and Servicing
|
|
Property
|
|
|
|
|
|
and Servicing
|
|
|
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Corporate
|
|
Subtotal
|
|
VIEs
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,085
|
|
$
|
38,798
|
|
$
|
7,701
|
|
$
|
560,790
|
|
$
|
614,374
|
|
$
|
1,148
|
|
$
|
615,522
|
|
Restricted
cash
|
|
|
17,885
|
|
|
8,202
|
|
|
9,146
|
|
|
—
|
|
|
35,233
|
|
|
—
|
|
|
35,233
|
|
Loans
held-for-investment, net
|
|
|
5,827,553
|
|
|
20,442
|
|
|
—
|
|
|
—
|
|
|
5,847,995
|
|
|
—
|
|
|
5,847,995
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
63,279
|
|
|
—
|
|
|
—
|
|
|
63,279
|
|
|
—
|
|
|
63,279
|
|
Loans transferred as
secured borrowings
|
|
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|
—
|
|
|
35,000
|
|
Investment
securities
|
|
|
776,072
|
|
|
990,570
|
|
|
—
|
|
|
—
|
|
|
1,766,642
|
|
|
(959,024)
|
|
|
807,618
|
|
Properties,
net
|
|
|
—
|
|
|
277,612
|
|
|
1,667,108
|
|
|
—
|
|
|
1,944,720
|
|
|
—
|
|
|
1,944,720
|
|
Intangible
assets
|
|
|
—
|
|
|
125,327
|
|
|
128,159
|
|
|
—
|
|
|
253,486
|
|
|
(34,238)
|
|
|
219,248
|
|
Investment in
unconsolidated entities
|
|
|
30,874
|
|
|
56,376
|
|
|
124,977
|
|
|
—
|
|
|
212,227
|
|
|
(7,622)
|
|
|
204,605
|
|
Goodwill
|
|
|
—
|
|
|
140,437
|
|
|
—
|
|
|
—
|
|
|
140,437
|
|
|
—
|
|
|
140,437
|
|
Derivative
assets
|
|
|
45,282
|
|
|
1,186
|
|
|
42,893
|
|
|
—
|
|
|
89,361
|
|
|
—
|
|
|
89,361
|
|
Accrued interest
receivable
|
|
|
25,831
|
|
|
2,393
|
|
|
—
|
|
|
—
|
|
|
28,224
|
|
|
—
|
|
|
28,224
|
|
Other
assets
|
|
|
13,470
|
|
|
59,503
|
|
|
29,569
|
|
|
1,866
|
|
|
104,408
|
|
|
(2,645)
|
|
|
101,763
|
|
VIE assets, at fair
value
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,123,261
|
|
|
67,123,261
|
|
Total
Assets
|
|
$
|
6,779,052
|
|
$
|
1,784,125
|
|
$
|
2,009,553
|
|
$
|
562,656
|
|
$
|
11,135,386
|
|
$
|
66,120,880
|
|
$
|
77,256,266
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
|
$
|
20,769
|
|
$
|
68,603
|
|
$
|
81,873
|
|
$
|
26,003
|
|
$
|
197,248
|
|
$
|
886
|
|
$
|
198,134
|
|
Related-party
payable
|
|
|
—
|
|
|
440
|
|
|
—
|
|
|
37,378
|
|
|
37,818
|
|
|
—
|
|
|
37,818
|
|
Dividends
payable
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,075
|
|
|
125,075
|
|
|
—
|
|
|
125,075
|
|
Derivative
liabilities
|
|
|
3,388
|
|
|
516
|
|
|
—
|
|
|
—
|
|
|
3,904
|
|
|
—
|
|
|
3,904
|
|
Secured financing
agreements, net
|
|
|
2,258,462
|
|
|
426,683
|
|
|
1,196,830
|
|
|
295,851
|
|
|
4,177,826
|
|
|
(23,700)
|
|
|
4,154,126
|
|
Unsecured senior
notes, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,011,544
|
|
|
2,011,544
|
|
|
—
|
|
|
2,011,544
|
|
Secured borrowings on
transferred loans
|
|
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|
—
|
|
|
35,000
|
|
VIE liabilities, at
fair value
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,130,592
|
|
|
66,130,592
|
|
Total
Liabilities
|
|
|
2,317,619
|
|
|
496,242
|
|
|
1,278,703
|
|
|
2,495,851
|
|
|
6,588,415
|
|
|
66,107,778
|
|
|
72,696,193
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starwood Property
Trust, Inc.
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,639
|
|
|
2,639
|
|
|
—
|
|
|
2,639
|
|
Additional paid-in
capital
|
|
|
2,218,671
|
|
|
883,761
|
|
|
696,049
|
|
|
892,699
|
|
|
4,691,180
|
|
|
—
|
|
|
4,691,180
|
|
Treasury
stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92,104)
|
|
|
(92,104)
|
|
|
—
|
|
|
(92,104)
|
|
Accumulated other
comprehensive
income (loss)
|
|
|
44,903
|
|
|
(437)
|
|
|
(8,328)
|
|
|
—
|
|
|
36,138
|
|
|
—
|
|
|
36,138
|
|
Retained earnings
(accumulated deficit)
|
|
|
2,186,727
|
|
|
390,994
|
|
|
43,129
|
|
|
(2,736,429)
|
|
|
(115,579)
|
|
|
—
|
|
|
(115,579)
|
|
Total Starwood
Property Trust, Inc. Stockholders' Equity
|
|
|
4,450,301
|
|
|
1,274,318
|
|
|
730,850
|
|
|
(1,933,195)
|
|
|
4,522,274
|
|
|
—
|
|
|
4,522,274
|
|
Non-controlling
interests in consolidated subsidiaries
|
|
|
11,132
|
|
|
13,565
|
|
|
—
|
|
|
—
|
|
|
24,697
|
|
|
13,102
|
|
|
37,799
|
|
Total
Equity
|
|
|
4,461,433
|
|
|
1,287,883
|
|
|
730,850
|
|
|
(1,933,195)
|
|
|
4,546,971
|
|
|
13,102
|
|
|
4,560,073
|
|
Total Liabilities
and Equity
|
|
$
|
6,779,052
|
|
$
|
1,784,125
|
|
$
|
2,009,553
|
|
$
|
562,656
|
|
$
|
11,135,386
|
|
$
|
66,120,880
|
|
$
|
77,256,266
|
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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/starwood-property-trust-reports-results-for-the-quarter-and-year-ended-december-31-2016-300412335.html
SOURCE Starwood Property Trust, Inc.