Starwood Property Trust Reports Results for the Quarter Ended March 31, 2016

GREENWICH, Conn., May 9, 2016

"I am very pleased with our performance this quarter. Last quarter, we suggested that we would take a step back and exercise great caution, faced with a volatile credit market that was experiencing significant credit spread deterioration. We said that we would be cautious with our capital deployment. Patience was a costly but prudent strategy as we waited for the volatility to subside, enabling us to reevaluate the playing field," stated Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust.

"Despite the conscious slowdown of our lending activities and the consequent drag of having excess cash, our diversified businesses were able to deliver solid quarterly results. We have not realized a single credit loss in the $17.9 billion of loans that we have originated or acquired since our inception in 2009.  Our weighted average LTV of 61.2% is our lowest ever as a public company and speaks to the strong credit culture engrained in our organization. Just as exciting, we can now suggest that several of our equity investments are exceeding our projected returns and should increase our book value per share as they are harvested," added Mr. Sternlicht.

Mr. Sternlicht continued, "Looking forward, with a world awash in liquidity, we are now seeing the contraction of credit spreads.  This, along with the structural changes taking place in the domestic and European lending markets, is leading to a robust pipeline of attractive opportunities in what appears to be a compelling investing environment for commercial real estate.  Our dedicated group of nearly 500 Starwood Property Trust professionals coupled with Starwood Capital Group's over 1,500 employees across 10 global offices, is superbly and uniquely positioned to find, underwrite and execute on excellent investment opportunities across our various businesses in a focused effort to continue to generate exceptional risk adjusted total returns for our shareholders."

Highlights for the First Quarter 2016 by Business Segment

The Company currently operates in three reportable segments: Real Estate Lending (the "Lending Segment"), Real Estate Investing and Servicing (the "Investing and Servicing Segment") and Real Estate Property (the "Property Segment"). The Lending Segment primarily represents the Company's on-balance sheet loan origination business. The Investing and Servicing Segment includes the Company's U.S. and European servicing businesses, CMBS investment business, conduit loan origination platform and commercial real estate properties acquired from CMBS trusts.  The Property Segment includes the Company's investments in stabilized commercial real estate properties that are held for investment. 

Real Estate Lending Segment