Document

“As major STWD shareholders ourselves, we have chosen to take the long view of how best to earn stable and attractive long-term returns for our shareholders. In this vein, despite the dilution we knew we would experience when we acquired the Fundamental net lease business, we were excited to add an earnings generator with reliable cash flows, driven by more than 17 years of lease duration and 2.3% contractual rent increases each year, which will be accretive long-term. We also increased our securitization pace across businesses and completed takeout refinancings, which led to higher than normal cash levels during the year. As we deploy this cash across our business lines, invest the committed but unfunded loan capital, scale our net lease business, and bring back the earnings power embedded in the nonaccrual and REO assets, we are confident in our ability to raise earnings in the future. We are real estate investors first and have proven our ability to add value to assets once they are in our control. We therefore are confident we have substantial earnings power built into our diversified company that will move us forward into a bright future,” Mr. Sternlicht continued.

“Starwood Property Trust’s proven and consistent access to the capital markets continues to differentiate our platform,” added Jeffrey DiModica, President of Starwood Property Trust. “We repositioned our balance sheet this year with extended duration and lower spreads, executing a record $4.4 billion of equity, unsecured debt and term loan debt, further strengthening our best-in-class balance sheet while maintaining our conservative leverage profile. We also completed or priced four securitizations, including our fourth commercial lending CLO, our sixth and seventh infrastructure CLOs, and our first Fundamental ABS transaction at record-tight spreads for that platform, positioning each of these businesses for further growth and positioning us to act quickly on compelling opportunities globally.”

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of December 31, 2025, the Company has successfully deployed $115 billion of capital since inception and manages a portfolio of over $30 billion across debt and equity investments. Starwood Property Trust’s investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

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. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words “believe,” “expect,” “anticipate” and other similar expressions. 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, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC.


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	311,500	$	69,153	$	43	$	3,225	$	—	$	383,921	$	—	$	383,921
Interest income from investment securities	15,332		197		—		24,543		—		40,072		(35,506)		4,566
Servicing fees	112		—		—		37,726		—		37,838		(6,047)		31,791
Rental income	6,298		—		57,100		4,088		—		67,486		—		67,486
Other revenues	1,997		909		651		1,183		444		5,184		—		5,184
Total revenues	335,239		70,259		57,794		70,765		444		534,501		(41,553)		492,948
Costs and expenses:
Management fees	172		—		—		—		33,254		33,426		—		33,426
Interest expense	155,129		39,550		29,054		6,626		103,687		334,046		(198)		333,848
General and administrative	15,180		5,497		8,572		24,440		4,378		58,067		—		58,067
Costs of rental operations	4,861		—		7,551		3,070		—		15,482		—		15,482
Depreciation and amortization	2,841		10		26,558		1,422		251		31,082		—		31,082
Credit loss provision (reversal), net	11,142		(798)		—		—		—		10,344		—		10,344
Other expense	55		58		15		38		—		166		—		166
Total costs and expenses	189,380		44,317		71,750		35,596		141,570		482,613		(198)		482,415
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		42,052		42,052
Change in fair value of servicing rights	—		—		—		1,617		—		1,617		(859)		758
Change in fair value of investment securities, net	1,972		—		—		(2,433)		—		(461)		682		221
Change in fair value of mortgage loans, net	30,574		—		—		13,228		—		43,802		—		43,802
Income from affordable housing fund investments	—		—		37,604		—		—		37,604		—		37,604
Earnings from unconsolidated entities	—		3,641		—		560		—		4,201		(520)		3,681
Gain (loss) on sale of investments and other assets, net	165		—		(1)		10,060		—		10,224		—		10,224
Gain (loss) on derivative financial instruments, net	12,688		50		3,886		(303)		(8,418)		7,903		—		7,903
Foreign currency gain (loss), net	6,900		(292)		(1)		—		—		6,607		—		6,607
Loss on extinguishment of debt	(326)		(1,893)		—		(90)		—		(2,309)		—		(2,309)
Other (loss) income, net	(29,009)		—		(763)		1		—		(29,771)		—		(29,771)
Total other income (loss)	22,964		1,506		40,725		22,640		(8,418)		79,417		41,355		120,772
Income (loss) before income taxes	168,823		27,448		26,769		57,809		(149,544)		131,305		—		131,305
Income tax provision	(10,066)		(299)		(1,850)		(6,724)		—		(18,939)		—		(18,939)
Net income (loss)	158,757		27,149		24,919		51,085		(149,544)		112,366		—		112,366
Net income attributable to non-controlling interests	(5)		—		(10,712)		(4,734)		—		(15,451)		—		(15,451)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	158,752	$	27,149	$	14,207	$	46,351	$	(149,544)	$	96,915	$	—	$	96,915

Distributable 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, Distributable 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 for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. 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. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding Distributable Earnings.

(Amounts in thousands except per share data)


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Net income (loss) attributable to Starwood Property Trust, Inc.	$	158,752	$	27,149	$	14,207	$	46,351	$	(149,544)	$	96,915
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		4,629		—		—		4,629
Non-controlling interests attributable to unrealized gains/losses	—		—		(1,986)		6,650		—		4,664
Non-cash equity compensation expense	2,842		738		1,999		1,491		5,554		12,624
Management incentive fee	—		—		—		—		3,502		3,502
Depreciation and amortization	2,877		—		27,071		1,523		—		31,471
Straight-line rent adjustment	—		—		(460)		22		—		(438)
Interest income adjustment for loans and securities	5,457		—		—		8,023		—		13,480

Consolidated income tax provision (benefit) associated with fair value adjustments	10,066		299		(34)		6,724		—		17,055
Other non-cash items	5		—		(82)		(542)		—		(619)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	(30,574)		—		—		(13,228)		—		(43,802)
Credit loss provision (reversal), net	11,142		(798)		—		—		—		10,344
Securities	(1,972)		—		—		2,433		—		461
Woodstar Fund investments	—		—		(37,604)		—		—		(37,604)
Derivatives	(12,688)		(50)		(3,886)		303		8,418		(7,903)
Foreign currency	(6,900)		292		1		—		—		(6,607)
Earnings from unconsolidated entities	—		(3,641)		—		(560)		—		(4,201)
Sales of properties	—		—		—		(10,060)		—		(10,060)
Impairment of properties	26,766		—		—		—		—		26,766
Recognition of Distributable realized gains / (losses) on:
Loans	(879)		—		—		13,188		—		12,309

Securities	(594)		—		—		(19,930)		—		(20,524)
Woodstar Fund investments	—		—		47,297		—		—		47,297

Derivatives	12,336		37		(2,012)		(137)		(6,554)		3,670
Foreign currency	(793)		134		(2)		—		—		(661)
Earnings from unconsolidated entities	—		3,128		—		457		—		3,585
Sales of properties	—		—		—		3,192		—		3,192
Distributable Earnings (Loss)	$	175,843	$	27,288	$	49,138	$	45,900	$	(138,624)	$	159,545
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	0.46	$	0.07	$	0.13	$	0.12	$	(0.36)	$	0.42


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Revenues:
Interest income from loans	$	1,231,288	$	272,282	$	289	$	14,650	$	—	$	1,518,509	$	—	$	1,518,509
Interest income from investment securities	78,961		649		—		97,824		—		177,434		(142,973)		34,461
Servicing fees	369		—		—		106,533		—		106,902		(20,359)		86,543
Rental income	27,266		—		135,255		19,919		—		182,440		—		182,440
Other revenues	9,854		3,855		1,472		5,387		1,768		22,336		—		22,336
Total revenues	1,347,738		276,786		137,016		244,313		1,768		2,007,621		(163,332)		1,844,289
Costs and expenses:
Management fees	701		—		—		—		136,564		137,265		—		137,265
Interest expense	682,813		155,212		71,400		29,341		339,031		1,277,797		(810)		1,276,987
General and administrative	59,545		20,979		17,323		93,152		17,810		208,809		—		208,809
Costs of rental operations	21,017		—		26,225		13,559		—		60,801		—		60,801
Depreciation and amortization	11,779		39		59,479		6,679		1,005		78,981		—		78,981
Credit loss provision, net	15,851		3,519		—		—		—		19,370		—		19,370
Other expense	103		4,104		(61)		203		—		4,349		—		4,349
Total costs and expenses	791,809		183,853		174,366		142,934		494,410		1,787,372		(810)		1,786,562
Other income (loss):
Change in net assets related to consolidated VIEs	—		—		—		—		—		—		154,758		154,758
Change in fair value of servicing rights	—		—		—		7,398		—		7,398		(1,508)		5,890
Change in fair value of investment securities, net	8,422		—		—		(16,803)		—		(8,381)		10,568		2,187
Change in fair value of mortgage loans, net	122,117		—		—		62,323		—		184,440		—		184,440
Income from affordable housing fund investments	—		—		46,953		—		—		46,953		—		46,953
Earnings from unconsolidated entities	2,708		3,892		—		9,249		—		15,849		(1,296)		14,553
Gain (loss) on sale of investments and other assets, net	32,875		—		(22)		10,060		—		42,913		—		42,913
(Loss) gain on derivative financial instruments, net	(155,014)		38		(4,196)		(1,385)		33,289		(127,268)		—		(127,268)
Foreign currency gain (loss), net	112,778		364		(198)		—		—		112,944		—		112,944
Gain (loss) on extinguishment of debt, net	20,447		(2,676)		—		(90)		—		17,681		—		17,681
Other (loss) income, net	(32,589)		—		(2,805)		2,428		—		(32,966)		—		(32,966)
Total other income	111,744		1,618		39,732		73,180		33,289		259,563		162,522		422,085
Income (loss) before income taxes	667,673		94,551		2,382		174,559		(459,353)		479,812		—		479,812
Income tax provision	(12,297)		(110)		(1,844)		(22,468)		—		(36,719)		—		(36,719)
Net income (loss)	655,376		94,441		538		152,091		(459,353)		443,093		—		443,093
Net income attributable to non-controlling interests	(15)		—		(25,488)		(6,046)		—		(31,549)		—		(31,549)
Net income (loss) attributable to Starwood Property Trust, Inc.	$	655,361	$	94,441	$	(24,950)	$	146,045	$	(459,353)	$	411,544	$	—	$	411,544


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Total
Net income (loss) attributable to Starwood Property Trust, Inc.	$	655,361	$	94,441	$	(24,950)	$	146,045	$	(459,353)	$	411,544
Add / (Deduct):
Non-controlling interests attributable to Woodstar II Class A Units	—		—		18,546		—		—		18,546
Non-controlling interests attributable to unrealized gains/losses	—		—		(13,066)		272		—		(12,794)
Non-cash equity compensation expense	11,318		2,794		3,780		5,582		30,620		54,094
Management incentive fee	—		—		—		—		13,746		13,746
Depreciation and amortization	12,023		—		60,616		7,085		—		79,724
Straight-line rent adjustment	—		—		(153)		126		—		(27)
Interest income adjustment for loans and securities	23,300		—		—		39,750		—		63,050

Consolidated income tax provision (benefit) associated with fair value adjustments	12,297		110		(40)		22,468		—		34,835
Other non-cash items	15		—		(328)		(1,761)		—		(2,074)
Reversal of GAAP unrealized and realized (gains) / losses on:
Loans	(122,117)		—		—		(62,323)		—		(184,440)
Credit loss provision, net	15,851		3,519		—		—		—		19,370
Securities	(8,422)		—		—		16,803		—		8,381
Woodstar Fund investments	—		—		(46,953)		—		—		(46,953)
Derivatives	155,014		(38)		4,196		1,385		(33,289)		127,268
Foreign currency	(112,778)		(364)		198		—		—		(112,944)
Earnings from unconsolidated entities	(2,708)		(3,892)		—		(9,249)		—		(15,849)
Sales of properties	(5,223)		—		21		(10,060)		—		(15,262)
Impairment of properties	26,766		—		—		—		—		26,766
Recognition of Distributable realized gains / (losses) on:
Loans	(2,435)		—		—		61,175		—		58,740

Securities	(1,355)		—		—		(35,012)		—		(36,367)
Woodstar Fund investments	—		—		110,569		—		—		110,569

Derivatives	70,004		186		(1,722)		(1,925)		(27,955)		38,588
Foreign currency	1,554		219		(199)		—		—		1,574
Earnings from unconsolidated entities	2,708		2,801		—		10,116		—		15,625
Sales of properties	(43,343)		—		(25)		3,192		—		(40,176)
Distributable Earnings (Loss)	$	687,830	$	99,776	$	110,490	$	193,669	$	(476,231)	$	615,534
Distributable Earnings (Loss) per Weighted Average Diluted Share	$	1.89	$	0.27	$	0.30	$	0.53	$	(1.30)	$	1.69

(Amounts in thousands)


	Commercial and Residential Lending Segment		Infrastructure Lending Segment		Property Segment		Investing and Servicing Segment		Corporate		Subtotal		Securitization VIEs		Total
Assets:
Cash and cash equivalents	$	74,534	$	198,031	$	70,900	$	25,149	$	130,866	$	499,480	$	—	$	499,480
Restricted cash	123,215		33,794		3,236		454		14,468		175,167		—		175,167
Loans held-for-investment, net	16,038,333		2,824,379		—		—		—		18,862,712		—		18,862,712
Loans held-for-sale	2,278,067		—		—		45,476		—		2,323,543		—		2,323,543
Investment securities	641,893		31,273		—		1,284,863		—		1,958,029		(1,657,029)		301,000
Properties, net	732,714		—		2,674,276		41,662		—		3,448,652		—		3,448,652

Investments of consolidated affordable housing fund	—		—		1,727,499		—		—		1,727,499		—		1,727,499
Investments in unconsolidated entities	8,514		57,997		—		33,203		—		99,714		(14,962)		84,752
Goodwill	—		119,409		—		140,437		—		259,846		—		259,846
Intangible assets, net	2,817		—		401,268		69,227		—		473,312		(37,253)		436,059
Derivative assets	27,157		—		—		201		18,455		45,813		—		45,813
Accrued interest receivable	157,116		4,424		442		562		135		162,679		—		162,679
Other assets	193,525		4,623		107,468		5,454		51,921		362,991		—		362,991
VIE assets, at fair value	—		—		—		—		—		—		34,493,164		34,493,164
Total Assets	$	20,277,885	$	3,273,930	$	4,985,089	$	1,646,688	$	215,845	$	30,399,437	$	32,783,920	$	63,183,357
Liabilities and Equity
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	165,317	$	32,732	$	113,707	$	60,423	$	127,571	$	499,750	$	—	$	499,750
Related-party payable	—		—		—		—		31,662		31,662		—		31,662
Dividends payable	—		—		—		—		180,413		180,413		—		180,413
Derivative liabilities	72,351		—		—		—		11,632		83,983		—		83,983
Secured financing agreements, net	8,637,246		719,942		596,906		517,897		2,226,843		12,698,834		(19,886)		12,678,948
Securitized financing, net	2,224,239		1,645,536		1,261,678		—		—		5,131,453		—		5,131,453
Unsecured senior notes, net	—		—		—		—		4,283,836		4,283,836		—		4,283,836

VIE liabilities, at fair value	—		—		—		—		—		—		32,803,806		32,803,806
Total Liabilities	11,099,153		2,398,210		1,972,291		578,320		6,861,957		22,909,931		32,783,920		55,693,851
Temporary Equity: Redeemable non-controlling interests	—		—		364,118		—		—		364,118		—		364,118
Permanent Equity:
Starwood Property Trust, Inc. Stockholders’ Equity:
Common stock	—		—		—		—		3,780		3,780		—		3,780
Additional paid-in capital	2,434,975		521,717		365,416		(814,760)		4,449,868		6,957,216		—		6,957,216
Treasury stock	—		—		—		—		(138,022)		(138,022)		—		(138,022)
Retained earnings (accumulated deficit)	6,732,082		354,003		2,077,439		1,759,196		(10,961,738)		(39,018)		—		(39,018)
Accumulated other comprehensive income	11,560		—		—		—		—		11,560		—		11,560
Total Starwood Property Trust, Inc. Stockholders’ Equity	9,178,617		875,720		2,442,855		944,436		(6,646,112)		6,795,516		—		6,795,516
Non-controlling interests in consolidated subsidiaries	115		—		205,825		123,932		—		329,872		—		329,872
Total Permanent Equity	9,178,732		875,720		2,648,680		1,068,368		(6,646,112)		7,125,388		—		7,125,388
Total Liabilities and Equity	$	20,277,885	$	3,273,930	$	4,985,089	$	1,646,688	$	215,845	$	30,399,437	$	32,783,920	$	63,183,357