Toggle SGML Header (+)


Section 1: 8-K (8-K)

stwd_Current folio_8K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 

Washington, D.C. 20549 

FORM 8-K

 

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

 

Date of Report (Date of earliest event reported): February 23, 2017

 

Starwood Property Trust, Inc.

(Exact name of registrant as specified in its charter)

 

Maryland
(State or other jurisdiction
of incorporation)

 

001-34436
(Commission
File Number)

 

27-0247747
(IRS Employer
Identification No.)

 

 

591 West Putnam Avenue

Greenwich, CT 

 

06830

(Address of principal

 

(Zip Code)

executive offices)

 

 

Registrant’s telephone number,
including area code:
(203) 422-7700

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CAR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CAR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CAR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CAR 240.13e-4(c))

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On February 23, 2017, Starwood Property Trust, Inc. issued a press release announcing its financial results for the quarter and year ended December 31, 2016. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)Exhibits

 

 

 

 

Exhibit

Number

 

Description

 

 

99.1

Press Release, dated February 23, 2017

 

2

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

Dated: February 23, 2017

STARWOOD PROPERTY TRUST, INC.

 

 

 

By:

/s/ ANDREW J. SOSSEN

 

Name:

Andrew J. Sossen

 

Title:

Chief Operating Officer

 

3

 


 

EXHIBIT INDEX

 

 

 

Exhibit
Number

Description

 

 

99.1

Press Release, dated February 23, 2017

 

 

4

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

stwd_Current folio_Press Release

 

Exhibit 99.1

C:\Users\105621\Desktop\Starwood_Logo.jpg

For Immediate Release

Starwood Property Trust Reports Results for the

Quarter and Year Ended December 31, 2016

 

– Quarterly GAAP Earnings of $0.49 and Core Earnings of $0.50 per Diluted Common Share –

– Deploys $1.2 Billion of Capital in Lending Segment During the Quarter –

– Completes Inaugural Senior Unsecured Notes Offering –

– Declares Dividend of $0.48 per share for the First Quarter of 2017 –

GREENWICH, Conn., February 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.

1

 


 

 

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.

2

 


 

 

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

 

3

 


 

 

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

 

4

 


 

 

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

 

5

 


 

 

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

 

6

 


 

 

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

&nb