Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STARWOOD PROPERTY TRUST, INC. | stwd_currentfolio8k.htm |
Exhibit 99.1
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 |
|
|
— |
|
|
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
7