Earnings release
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1 For Immediate Release 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, FL, August 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 proper ty 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.”
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2 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 Par ticipate 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.
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3 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: 203-422-7788 Email: ztanenbaum@starwood.com
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4 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
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5 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
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6 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
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7 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
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8 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