$STWD

STARWOOD PROPERTY TRUST, INC.

CIK:0001465128|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Interest income from loans	$ 398,415	$ 385,219	$ 772,226	$ 739,142
Interest income from investment securities	4,750	10,313	10,188	22,534
Servicing fees	16,667	14,080	64,687	31,540
Rental income	87,854	28,243	167,825	57,426
Other revenues	5,982	6,428	11,198	11,821
Total revenues	513,668	444,283	1,026,124	862,463
Costs and expenses:
Management fees	30,557	30,833	66,739	71,596
Interest expense	344,577	316,132	673,483	608,290
General and administrative	56,694	51,072	115,027	99,219
Costs of rental operations	26,313	14,512	49,447	29,332
Depreciation and amortization	35,260	10,371	68,986	21,855
Credit loss provision (reversal), net	30,164	5,666	29,787	(19,333)
Other expense	1,203	1,893	1,604	3,744
Total costs and expenses	524,768	430,479	1,005,073	814,703
Other income (loss):
Change in net assets related to consolidated VIEs	33,087	40,280	65,589	68,971
Change in fair value of servicing rights	1,744	2,363	1,207	3,116
Change in fair value of investment securities, net	(52)	345	37	172
Change in fair value of mortgage loans, net	(61)	29,867	(12,729)	88,271
Earnings from unconsolidated entities	2,716	7,872	3,534	8,409
Gain on sale of investments and other assets, net	2,379	31,662	3,058	31,662
Loss on derivative financial instruments, net	(3,024)	(101,296)	(5,487)	(140,985)
Foreign currency (loss) gain, net	(5,706)	83,761	(11,796)	118,552
Gain (loss) on extinguishment of debt	0	19,990	(335)	19,990
Other (loss) income, net	(3,683)	1,604	(6,816)	291
Total other (loss) income	32,329	121,563	53,655	207,474
Income (loss) before income taxes	21,229	135,367	74,706	255,234
Income tax provision	(6,224)	(671)	(2,279)	(4,437)
Net income (loss)	15,005	134,696	72,427	250,797
Net income attributable to non-controlling interests	(8,448)	(4,882)	(13,992)	(8,728)
Net income (loss) attributable to Starwood Property Trust, Inc.	$ 6,557	$ 129,814	$ 58,435	$ 242,069
Earnings per share data attributable to Starwood Property Trust, Inc.:
Basic (in dollars per share)	$ 0.01	$ 0.38	$ 0.15	$ 0.71
Diluted (in dollars per share)	$ 0.01	$ 0.38	$ 0.15	$ 0.71
Primary Beneficiary
Other income (loss):
Income from affordable housing fund investments	$ 4,929	$ 5,115	$ 17,393	$ 9,025

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net income	$ 72,427	$ 250,797
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs, premiums and discounts on secured borrowings	25,199	22,861
Amortization of discounts and deferred financing costs on unsecured senior notes	7,816	5,426
Accretion of net discount on investment securities	(2,274)	(3,287)
Accretion of net deferred loan fees and discounts	(34,503)	(26,589)
Share-based compensation	27,307	26,780
Manager fees paid in stock	4,535	11,396
Change in fair value of investment securities	(37)	(172)
Change in fair value of consolidated VIEs	2,544	5,941
Change in fair value of servicing rights	(1,207)	(3,116)
Change in fair value of loans	12,729	(88,271)
Change in fair value of affordable housing fund investments	2,131	17,978
Change in fair value of derivatives	16,679	158,614
Foreign currency loss (gain), net	11,796	(118,552)
Gain on sale of investments and other assets, net	(3,058)	(31,662)
Credit loss provision (reversal), net	29,787	(19,333)
Depreciation and amortization	72,415	24,325
Earnings from unconsolidated entities	(3,534)	(8,409)
Distributions of earnings from unconsolidated entities	80	7,738
Loss (gain) on extinguishment of debt, net	335	(19,990)
Origination and purchase of loans held-for-sale, net of principal collections	(427,197)	(646,561)
Proceeds from sale of loans held-for-sale	523,911	743,164
Changes in operating assets and liabilities:
Related-party payable	(4,629)	(13,112)
Accrued and capitalized interest receivable, less purchased interest	(110,657)	(45,690)
Other assets	(32,208)	(33,523)
Accounts payable, accrued expenses and other liabilities	73,837	(65,242)
Net cash provided by operating activities	264,224	151,511
Cash Flows from Investing Activities:
Origination, purchase and funding of loans held-for-investment	(3,070,282)	(3,822,158)
Proceeds from principal collections on loans	2,074,083	1,559,497
Proceeds from loans sold	0	229,867
Purchase and funding of investment securities	(135,309)	(21,573)
Proceeds from sales and redemptions of investment securities	9,736	5,543
Proceeds from principal collections on investment securities	7,652	54,952
Proceeds from sales of real estate	86,985	58,903
Purchases and additions to properties and other assets	(355,182)	(14,756)
Proceeds from sale of interest in an unconsolidated entity	0	69,824
Distribution of capital from unconsolidated entities	0	250
Cash acquired in foreclosure	7,713	733
Payments for purchase or termination of derivatives	(29,492)	(16,090)
Proceeds from termination of derivatives	33,541	36,183
Net cash used in investing activities	(1,370,555)	(1,858,825)
Cash Flows from Financing Activities:
Proceeds from borrowings	5,492,128	6,659,763
Principal repayments on and repurchases of borrowings	(3,861,896)	(4,716,024)
Payment of deferred financing costs	(27,578)	(29,684)
Net proceeds from issuances of common stock	2,299	33,155
Payment of dividends	(356,995)	(326,033)
Contributions from non-controlling interests	1,426	1,489
Distributions to non-controlling interests	(24,945)	(18,673)
Purchase of treasury stock	(29,940)	0
Issuance of debt of consolidated VIEs	8,065	0
Repayment of debt of consolidated VIEs	(195,331)	(61,870)
Distributions of cash from consolidated VIEs	63,825	85,229
Net cash provided by financing activities	1,071,058	1,627,352
Net decrease in cash, cash equivalents and restricted cash	(35,273)	(79,962)
Cash, cash equivalents and restricted cash, beginning of period	674,647	553,995
Effect of exchange rate changes on cash	982	832
Cash, cash equivalents and restricted cash, end of period	640,356	474,865
Supplemental disclosure of cash flow information:
Cash paid for interest	609,792	561,948
Income taxes paid	5,202	154
Supplemental disclosure of non-cash investing and financing activities:
Dividends declared with respect to the second quarter, but not yet paid	178,598	164,898
Consolidation of VIEs (VIE asset/liability additions)	654,186	717,180
Deconsolidation of VIEs (VIE asset/liability reductions)	254,536	62,461
Net assets acquired through foreclosure:
Assets acquired, less cash	352,654	194,881
Liabilities assumed	12,047	2,489
Transfer of residential loans from VIE assets to loans held-for-investment upon redemption of a consolidated RMBS trust	229,828	0
Loan principal collections temporarily held at master servicer	15,803	6,406
Redemption of Class A Units for common stock	$ 0	$ 1,389

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets:
Cash and cash equivalents	$ 367,592	$ 499,480
Restricted cash	272,764	175,167
Loans held-for-investment, net of credit loss allowances of $419,156 and $440,842 ($227,521 and none held at fair value)	19,816,968	18,862,712
Loans held-for-sale, at fair value	2,217,481	2,323,543
Investment securities, net of credit loss allowances of $55,258 and $37,369 ($119,780 and $121,433 held at fair value)	402,829	301,000
Properties, net	3,998,669	3,448,652
Investments in unconsolidated entities	88,201	84,752
Goodwill	259,846	259,846
Intangible assets, net ($29,487 and $28,280 held at fair value)	440,974	436,059
Derivative assets	24,406	45,813
Accrued interest receivable	200,816	162,679
Other assets	362,215	362,991
Variable interest entity (“VIE”) assets, at fair value	30,868,147	34,493,164
Total Assets	61,046,276	63,183,357
Liabilities:
Dividends payable	180,744	180,413
Derivative liabilities	91,573	83,983
Secured financing agreements, net	13,999,891	12,678,948
Securitized financing, net	4,811,511	5,131,453
Unsecured senior notes, net	4,882,722	4,283,836
VIE liabilities, at fair value	29,293,820	32,803,806
Total Liabilities	53,862,850	55,693,851
Commitments and contingencies (Note 22)
Temporary Equity: Redeemable non-controlling interests	356,377	364,118
Starwood Property Trust, Inc. Stockholders’ Equity:
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 per share, 500,000,000 shares authorized, 379,785,339 issued and 370,628,310 outstanding as of June 30, 2026 and 378,011,570 issued and 370,562,879 outstanding as of December 31, 2025	3,798	3,780
Additional paid-in capital	6,991,339	6,957,216
Treasury stock (9,157,029 shares and 7,448,691 shares)	(167,962)	(138,022)
Accumulated deficit	(337,909)	(39,018)
Accumulated other comprehensive income	9,697	11,560
Total Starwood Property Trust, Inc. Stockholders’ Equity	6,498,963	6,795,516
Non-controlling interests in consolidated subsidiaries	328,086	329,872
Total Permanent Equity	6,827,049	7,125,388
Total Liabilities and Equity	61,046,276	63,183,357
Nonrelated Party
Liabilities:
Accounts payable, accrued expenses and other liabilities	575,556	499,750
Related Party
Liabilities:
Accounts payable, accrued expenses and other liabilities	27,033	31,662
Primary Beneficiary
Assets:
Investments of consolidated affordable housing fund, at fair value	1,725,368	$ 1,727,499
Total Assets	$ 86,900