Starwood Property Trust Files Q2 2024 10-Q

TL;DR

**STARWOOD PROPERTY TRUST FILES Q2 10-Q: FINANCIALS OUT NOW**

AI Summary

Starwood Property Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and operations during the second quarter. Key financial data and operational segments are presented, reflecting the company's real estate investment trust activities.

Why It Matters

This filing provides investors and analysts with a detailed look at Starwood Property Trust's financial health and strategic positioning in the real estate market for the second quarter of 2024.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Starwood Property Trust is subject to market fluctuations, interest rate changes, and real estate sector-specific risks.

Key Players & Entities

• STARWOOD PROPERTY TRUST, INC. (company) — Filer
• 20240630 (date) — Period of Report
• 20240806 (date) — Filed as of Date
• 0001465128 (company) — Central Index Key
• GREENWICH, CT (location) — Business Address City/State

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share STWD New York Stock

Filing Documents

• stwd-20240630.htm (10-Q) — 5707KB
• stwd_ex-311xq22024.htm (EX-31.1) — 10KB
• stwd_ex-312xq22024.htm (EX-31.2) — 10KB
• stwd_ex-321xq22024.htm (EX-32.1) — 4KB
• stwd_ex-322xq22024.htm (EX-32.2) — 4KB
• 0001628280-24-034950.txt ( ) — 28554KB
• stwd-20240630.xsd (EX-101.SCH) — 153KB
• stwd-20240630_cal.xml (EX-101.CAL) — 157KB
• stwd-20240630_def.xml (EX-101.DEF) — 913KB
• stwd-20240630_lab.xml (EX-101.LAB) — 1468KB
• stwd-20240630_pre.xml (EX-101.PRE) — 1195KB
• stwd-20240630_htm.xml (XML) — 6599KB

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to Condensed Consolidated Financial Statements 11 Note 1 Business and Organization 11 Note 2 Summary of Significant Accounting Policies 12 Note 3 Acquisitions and Divestitures 19 Note 4 Loans 20 Note 5 Investment Securities 26 Note 6 Properties 29 Note 7 Investments of Consolidated Affordable Housing Fund 30 Note 8 Investments in Unconsolidated Entities 31 Note 9 Goodwill and Intangibles 32 Note 10 Secured Borrowings 34 Note 11 Unsecured Senior Notes 39 Note 12 Loan Securitization/Sale Activities 41 Note 13 Derivatives and Hedging Activity 42 Note 14 Offsetting Assets and Liabilities 43 Note 15 Variable Interest Entities 44 Note 16 Related-Party Transactions 45 Note 17 Stockholders' Equity and Non-Controlling Interests 48 Note 18 Earnings per Share 50 Note 19 Accumulated Other Comprehensive Income 51 Note 20 Fair Value 52 Note 21 Income Taxes 60 Note 22 Commitments and Contingencies 61 Note 23 Segment Data 62 Note 24 Subsequent Events 68 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 69 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 103 Item 4.

Controls and Procedures

Controls and Procedures 105 Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 106 Item 1A.

Risk Factors

Risk Factors 106 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 106 Item 3. Defaults Upon Senior Securities 106 Item 4. Mine Safety Disclosures 106 Item 5. Other Information 106 Item 6. Exhibits 107 3 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands, except share data) As of June 30, As of December 31, 2024 2023 Assets: Cash and cash equivalents $ 259,267 $ 194,660 Restricted cash 176,435 117,312 Loans held-for-investment, net of credit loss allowances of $ 354,065 and $ 309,039 16,294,609 17,574,249 Loans held-for-sale, at fair value 2,820,026 2,645,637 Investment securities, net of credit loss allowances of $ 20,218 and $ 13,143 ($ 133,677 and $ 129,308 held at fair value) 665,714 735,562 Properties, net 1,206,671 1,046,384 Properties held-for-sale — 290,937 Investments of consolidated affordable housing fund, at fair value 2,004,983 2,012,833 Investments in unconsolidated entities 97,424 90,376 Goodwill 259,846 259,846 Intangible assets ($ 20,507 and $ 19,384 held at fair value) 62,264 64,967 Derivative assets 70,530 63,437 Accrued interest receivable 197,114 200,867 Other assets 309,127 420,773 Variable interest entity ("VIE") assets, at fair value 39,665,392 43,786,356 Total Assets $ 64,089,402 $ 69,504,196 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 344,582 $ 293,442 Related-party payable 27,849 44,816 Dividends payable 153,422 152,888 Derivative liabilities 76,131 102,467 Secured financing agreements, net 12,102,859 13,867,996 Collateralized loan obligations and single asset securitization, net 3,523,721 3,491,292 Unsecured senior notes, net 2,754,370 2,158,888 Debt related to properties held for sale — 193,691 VIE liabilities, at fair value 38,132,695 42,175,734 Total Liabilities 57,115,629 62,481,214 Commitments and contingencies (Note 22) Temporary Equity: Redeemable non-controlling interests 414,095 414,348 Permanent Equity: Starwood Property Trust, Inc. Stockholders' Equity: Preferred stock, $ 0.01 per share, 100,000,000 shares authorized, no shares issued