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Starwood Q2 Performance Driven by “Contributions From Across Business Segments”


Starwood Property Trust Inc. recently revealed the company’s Q2 operating results, which showed that the company’s second quarter 2017 GAAP net income was $117.4 million, or $0.44 per diluted share. The REIT also revealed that core earnings (a non-GAAP financial measure) was $136.8 million, or $0.52 per diluted share.

“Our performance this quarter was driven by contributions from across our business segments,” stated Barry Sternlicht, Chairman and CEO of Starwood Property Trust. “Our $1.5 billion of capital deployment included $871 million of floating-rate large loan originations that should benefit our results in a rising rate environment.”

He explains that “Despite the current competitive landscape, we have maintained our disciplined underwriting, with our portfolio LTV remaining modest at just under 63%, consistent with the composition of our portfolio over the last three years.  In addition, our multi-cylinder investment platform and access to diversified funding sources provides us with a competitive advantage, allowing us to continue to deliver attractive returns to our shareholders.”

Shortly after quarter end, he notes that the REIT “expanded our access to attractive capital through membership in the Federal Home Loan Bank of Chicago. In addition, Ten-X entered into a strategic transaction which will allow us to harvest some of the significant embedded value on our balance sheet next quarter. With a diverse and growing global pipeline, we will continue to patiently deploy capital across our target assets into the best risk-adjusted opportunities.”