Starwood Property Trust, Inc. focuses primarily on originating, acquiring, financing, and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments in both the U.S. and Europe. The company’s target assets include commercial real estate mortgage loans; commercial real estate mortgage-backed securities (CMBS); other commercial real estate-related debt investments; residential mortgage-backed securities (RMBS); and residential real estate owned (REO) and residential non-performing mortgage loans. The company operates its business in three segments: Real Estate Investment Lending, Single Family Residential, and LNR Property, LLC. Target Assets The company invests in target assets secured primarily by the U.S. or the European collateral. It focuses primarily on originating or acquiring commercial mortgage whole loans, B-notes, mezzanine loans, preferred equity, and mortgage-backed securities. The company might invest in performing and non-performing mortgage loans and other real estate-related loans and debt investments. It might acquire target assets through portfolio or other acquisitions. Its target assets include the following types of loans and other investments with respect to commercial real estate: Whole Mortgage Loans: Loans secured by a first mortgage lien on a commercial property that provide long-term mortgage financing to commercial property developers or owners having maturity dates ranging from 3 to 10 years; Bridge Loans: Whole mortgage loans secured by a first mortgage lien on a commercial property that provide interim or bridge financing to borrowers seeking short-term capital for the acquisition of real estate; B-Notes: A privately negotiated loan that is secured by a first mortgage on a single large commercial property or group of related properties and subordinated to an A Note secured by the same first mortgage on the same property or group; Mezzanine Loans: Loans made to commercial property owners that are secured by pledges of the borrower's ownership interests in the property and/or the property owner, subordinate to whole mortgage loans secured by first or second mortgage liens on the property and senior to the borrower's equity in the property; Construction or Rehabilitation Loans: Mortgage loans and mezzanine loans to finance the cost of construction or rehabilitation of a commercial property; CMBS: Securities that are collateralized by commercial mortgage loans, including senior and subordinated investment grade CMBS, below investment grade CMBS, and unrated CMBS; Corporate Bank Debt: Term loans and revolving credit facilities of commercial real estate operating or finance companies, each of which are secured by such companies' assets; Corporate Bonds: Debt securities issued by commercial real estate operating or finance companies that might or might not be secured by such companies' assets, including investment grade corporate bonds, below investment grade corporate bonds, and unrated corporate bonds. The company has also invested in the following types of loans and other debt investments relating to residential real estate: Non-Agency RMBS: Securities collateralized by residential mortgage loans that are not guaranteed by any U.S. government agency or federally chartered corporation; REO: Residential real estate that is primarily comprised single family homes; and Residential Mortgage Loans: Loans secured by a first mortgage lien on residential property. In addition, the company might invest in the following real estate related investments: Net Leases: Commercial properties subject to net leases, which leases have longer terms than gross leases, require tenants to pay all of the operating costs associated with the properties and have contractually specified rent increases throughout their terms; Agency RMBS: RMBS for which a U.S. government agency or a federally chartered corporation guarantees payments of principal and interest on the securities; Commercial REO: Commercial properties purchased from CMBS trusts; and Commercial Non-performing Loans (NPLs): As part of the company’s efforts to attain additional servicing rights in Europe, the company might acquire a minority interest in portfolios of NPLs, alongside other majority investors. Investment Strategy The company’s investment strategy includes the origination and acquisition of real estate debt assets with an implied basis sufficiently low to weather significant declines in asset values; focusing on real estate markets and assets classes with strong supply and demand fundamentals and/or barriers to entry; structuring and financing each transaction in a manner that reflects the risk of the underlying asset's cash flow stream and credit risk profile, and efficiently managing and maintaining the transaction's interest rate and currency exposures at levels consistent with management's risk objectives; and seeking situations where its size, scale, speed, and sophistication allow the company to position itself as a ‘one-stop’ lending solution for real estate owner/operators. Regulation The company is required to comply with certain provisions of the Equal Credit Opportunity Act that are applicable to commercial loans. Tax Status The company has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended. As a result, the company is not subject to federal or state income taxation at the corporate level to the extent it distributes annually approximately 90% of its real estate investment trust taxable income to its shareholders and satisfies certain other requirements. History Starwood Property Trust, Inc. was founded in 2009.
starwood property trust inc
(STWD:New York Consolidated)
591 West Putnam Avenue
Greenwich, CT 06830
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