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Sep 30, 2023

Starwood Property Trust Q3 2023 Earnings Report

Reported GAAP earnings of $0.15 and Distributable Earnings (DE) of $0.49 per diluted share.

Key Takeaways

Starwood Property Trust reported a net income of $47.4 million and Distributable Earnings of $158.4 million for the quarter ended September 30, 2023. The company originated or acquired $652 million of assets and received repayments of $1.1 billion during the quarter.

GAAP net income was $47.4 million for Q3 2023.

Distributable Earnings (DE) was $158.4 million for Q3 2023.

Originated or acquired $652 million of assets in the quarter.

Received repayments of $1.1 billion in the quarter.

Total Revenue
$532M
Previous year: $391M
+36.3%
EPS
$0.49
Previous year: $0.51
-3.9%
Gross Profit
$510M
Previous year: $298M
+71.0%
Cash and Equivalents
$431M
Previous year: $340M
+27.0%
Free Cash Flow
$299M
Total Assets
$70.3B
Previous year: $80B
-12.1%

Starwood Property Trust

Starwood Property Trust

Starwood Property Trust Revenue by Segment

Forward Guidance

Starwood Property Trust is positioned to capitalize on credit conditions and become a leading private credit alternative firm for real estate and infrastructure lending.

Positive Outlook

  • Significant current liquidity
  • Lower leveraged balance sheet
  • Diversified business model
  • Access to capital in difficult markets
  • Well positioned for current environment

Challenges Ahead

  • U.S. regional and money center banks have dramatically reduced their real estate lending activities
  • Level of interest rates and the trajectory of the economy need to become more transparent
  • Potential extended wait times to access the conference call via dial-in
  • Factors that could cause actual results to differ materially from the Company’s expectations
  • Severity and duration of economic disruption caused by the COVID-19 global pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income