PR Newswire
GREENWICH, Conn., Aug. 4, 2016
GREENWICH, Conn., Aug. 4, 2016 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2016. The Company's second quarter 2016 GAAP net income was $111.5 million, or $0.47 per diluted share, and Core Earnings (a non-GAAP financial measure) was $119.9 million, or $0.50 per diluted share.
"We are pleased with our strong performance this quarter, driven by significant contributions from each of our business segments. Despite a volatile market backdrop in the first half of the year, including an uncertain domestic economic and geopolitical environment, we deployed $2.5 billion of capital and continued to source investments with attractive returns and a risk profile consistent with our historical standards. In our seven years as a public company, we have not realized a single credit loss in the $19.0 billion of loans we have originated or acquired. As a testament to our conservative underwriting, our loan portfolio continues to maintain a conservative weighted average LTV of 61.9%, which is down from a peak of 67.8% in 2011 when our loan book was one-third the size it is today. We are particularly pleased with the progress of our equity investments, including those embedded in our loan book, where we continue to expect meaningful appreciation over time," stated Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust.
Mr. Sternlicht continued, "We believe opportunities will remain abundant as recent structural changes in the U.S. and European lending markets are coinciding with increasing levels of commercial real estate debt maturities. Our servicing platform should provide a front row seat to any distress that may occur as those pre-2008 borrowers refinance. Our conservative balance sheet and access to liquidity should allow us to capitalize on these opportunities and any future dislocations in the credit markets. As we have done in the past, we will leverage our global operating platforms across Starwood Property Trust and Starwood Capital Group to source the best risk-adjusted investments for our shareholders in order to generate exceptional returns over the long term."
Highlights for the Second 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
During the second quarter of 2016, the Lending Segment contributed GAAP Earnings of $98.9 million, or $0.42 per diluted share, and Core Earnings of $102.4 million, or $0.43 per diluted share.
The Lending Segment originated or acquired investments of $1.1 billion during the quarter, with fundings of $775.0 million, including $123.8 million related to previously originated loans. Repayments during the quarter totaled $1.0 billion. Newly originated or acquired investments included the following:
At June 30, 2016, the Lending Segment's principal assets were as follows:
Lending Segment Investments | | | | | | | | | | | | | | | | ||||
Investment | | Face | | Carry | | Asset Specific | | Net | | Unlevered | | Current | | Optimal | | ||||
First mortgages held-for-investment (5) | | $ | 4,586 | | $ | 4,530 | | $ | 2,179 | | $ | 2,351 | | 6.7 | % | 9.3 | % | 10.7 | % |
Subordinated mortgages held-for-investment | | | 413 | | | 392 | | | 6 | | | 386 | | 11.3 | % | 11.3 | % | 11.4 | % |
Mezzanine loans held-for-investment (5) | | | 756 | | | 765 | | | - | | | 765 | | 10.9 | % | 10.9 | % | 10.9 | % |
CMBS held-to-maturity | | | 507 | | | 501 | | | 314 | | | 187 | | 5.5 | % | 10.6 | % | 11.6 | % |
Preferred equity investments held-to-maturity | | | 19 | | | 20 | | | - | | | 20 | | 13.3 | % | 13.3 | % | 13.3 | % |
Target portfolio of Lending Segment | | $ | 6,281 | | $ | 6,208 | | $ | 2,499 | | $ | 3,709 | | 7.4 | % | 9.9 | % | 10.9 | % |
RMBS available-for-sale at fair value | | | 409 | | | 251 | | | 102 | | | 149 | | 10.3 Werbung Mehr Nachrichten zur Starwood Property Trust Aktie kostenlos abonnieren
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