JPMorgan Chase for commercial real estate loans.

Blackstone for commercial property debt and equity.

• Commercial Mortgage Lending: Originating and acquiring senior and subordinate mortgage loans secured by commercial real estate properties.
• Commercial Real Estate Investments: Acquiring, owning, and managing direct equity interests in various types of commercial properties.
• Infrastructure Debt Investing: Providing financing solutions for essential infrastructure projects across different sectors.
• Residential Mortgage Investments: Investing in non-agency residential mortgage loans and related securities.

Starwood Property Trust (STWD) primarily sells its services and capital to other companies, operating on a business-to-business (B2B) model rather than serving individual consumers directly.

Due to the nature of its business as a diversified commercial real estate finance company that originates, acquires, finances, and manages a broad portfolio of debt and equity investments across various real estate sectors, STWD does not typically disclose a concentrated list of specific "major customer companies" by name. Its customer base consists of numerous borrowers, developers, property owners, and institutional investors across its lending and investment segments. Therefore, it is not feasible to list specific public company names as major customers.

Instead, STWD serves the following categories of companies:

• Commercial Real Estate Developers and Investors: These are private and institutional entities, including real estate development firms, private equity funds, and investment companies, that require financing for the acquisition, development, construction, or refinancing of various commercial properties such as office buildings, retail centers, industrial warehouses, multifamily residential complexes, and hotels.
• Institutional Owners of Real Estate Assets: Large organizations, sovereign wealth funds, pension funds, and other financial institutions that manage significant real estate portfolios and may engage with STWD for debt capital, joint ventures, or the sale/acquisition of real estate-related assets and loans.
• Companies Requiring Infrastructure Financing: Entities involved in the development, ownership, or operation of diverse infrastructure projects (e.g., energy generation facilities, transportation networks, communication infrastructure) that seek specialized debt financing solutions.

• Starwood Property Trust, L.L.C.
• JPMorgan Chase & Co. (JPM)
• Wells Fargo & Company (WFC)
• Bank of America Corporation (BAC)
• Citigroup Inc. (C)
• The Goldman Sachs Group, Inc. (GS)

Barry S. Sternlicht, Chairman & CEO

Barry Sternlicht is the Chairman & CEO of Starwood Property Trust, a position he has held since 2009. He is also the founder, Chairman & CEO of Starwood Capital Group, a private alternative investment firm focused on global real estate, which he established in 1991. Under his leadership, Starwood Capital Group has structured investments with an asset value exceeding $260 billion. From 1995 through early 2005, Mr. Sternlicht was Chairman and CEO of Starwood Hotels & Resorts Worldwide, a company he founded, where he built it into a leading global hotel and leisure company and created the W Hotels and developed the St. Regis Hotels brands. In 1993, he sold Starwood Capital's apartment portfolio to Sam Zell's Equity Residential. Since 2020, he has sponsored five SPACs, including one that took senior care provider Cano Health public.

Rina Paniry, Chief Financial Officer

Rina Paniry is the Chief Financial Officer of Starwood Property Trust, a role she assumed in 2014. In this capacity, she is responsible for all financial and accounting functions. Prior to her promotion, Ms. Paniry served as Chief Financial Officer of Starwood Property Trust subsidiary LNR Property LLC, where she oversaw the integration and transition of Starwood Property Trust's core finance functions after the 2013 acquisition of LNR. She joined LNR in 2006 as Chief Accounting Officer. Ms. Paniry began her career at Deloitte & Touche, spending 11 years there in various roles with increasing responsibility, primarily in the real estate industry in audit and mergers & acquisitions.

Jeffrey F. DiModica, CFA, President

Jeffrey F. DiModica has been the President of Starwood Property Trust since 2014. He also served as an external director for the company from its inception in 2009 to July 2014. In his current role, he leads and is a member of the investment committee for each of the company's business lines, including Large Loan Lending, Residential Lending, Infrastructure Lending, Property Investing, and Investing & Servicing, which collectively manage approximately $30 billion in assets. From 1993 to 2014, Mr. DiModica held various investment banking roles at Royal Bank of Scotland (RBS) and Merrill Lynch, where he was responsible for the distribution and analysis of mortgage and asset-backed securities to institutional clients. He began his career in the Merchant and Investment Banking Group of the Commercial Real Estate Department at Chemical Bank from 1989 to 1991.

Andrew J. Sossen, Senior Managing Director, Chief Operating Officer (Starwood Capital Group)

Andrew J. Sossen is currently a Senior Managing Director and Chief Operating Officer of Starwood Capital Group, a role he rejoined in September 2024. He previously spent nearly 14 years with Starwood, most recently serving as Chief Operating Officer of Starwood Property Trust from July 2011 to July 2023, and as the company's General Counsel, Chief Compliance Officer, and Executive Vice President since January 2010. Prior to joining Starwood Property Trust in 2010, Mr. Sossen was General Counsel at KKR Asset Management and KKR Financial Holdings LLC, a publicly traded specialty finance company affiliated with Kohlberg Kravis Roberts & Co., where he was involved in policy and strategic decision-making. His career began at Simpson Thacher & Bartlett LLP, specializing in capital markets and mergers and acquisitions.

Dennis Schuh, Chief Originations Officer

Dennis Schuh serves as the Chief Originations Officer of Starwood Property Trust, having joined the company in 2016. In this role, Mr. Schuh is responsible for national originations, encompassing senior debt, mezzanine, and preferred equity investments. Before joining Starwood Property Trust, he was a Managing Director and head of CMBS Banking/Origination for J.P. Morgan. He also previously served as head of CMBS Capital Markets at J.P. Morgan, managing the securitization business and high-yield debt distribution. Mr. Schuh began his career at Fitch Ratings, where he rated CMBS and REITs.

1. Dividend Sustainability / Earnings Coverage: Starwood Property Trust has demonstrated a thin or insufficient dividend coverage ratio, with distributable earnings often barely covering or falling short of its quarterly dividend payments. This raises significant concerns about the long-term sustainability of its dividend and the potential for a dividend cut, which could negatively impact investor confidence and the company's valuation.
2. Commercial Real Estate Market Exposure and Credit Risk: A substantial portion of STWD's portfolio is invested in commercial mortgages and other real estate-related assets, including non-investment grade and mezzanine loans, making it highly susceptible to adverse changes in the commercial real estate market. This exposure leads to risks of borrower defaults, loan losses, and a decline in the fair value of its assets, particularly in a challenging economic or higher interest rate environment.
3. Interest Rate Risk and High Leverage: As a commercial mortgage real estate investment trust (mREIT), Starwood Property Trust is significantly dependent on credit markets to finance its debt. Elevated interest rates can compress the spread between what the company earns on its loans and what it pays to borrow, negatively impacting its margins. Furthermore, the company operates with a high level of leverage, making it more sensitive to fluctuations in credit market liquidity and funding costs.

The following are clear emerging threats for Starwood Property Trust (STWD):

• Sustained elevated interest rates and tightening credit conditions: While interest rates have risen, the full impact on commercial real estate (CRE) valuations and borrowers' ability to refinance loans originated during a lower-rate environment is still unfolding. Many CRE loans have adjustable rates or are maturing, requiring refinancing at significantly higher costs. This increases the risk of defaults and reduces property values, directly impacting STWD's loan portfolio and collateral. The "higher for longer" narrative from central banks suggests this isn't a temporary blip but a potentially sustained environment structurally challenging CRE debt.

• Structural decline in demand for certain commercial real estate sectors (particularly office and traditional retail): The long-term shift towards remote/hybrid work continues to depress demand for office space, leading to persistently high vacancy rates, declining rents, and a significant repricing of office properties. Similarly, the ongoing rise of e-commerce continues to challenge traditional retail. These are not merely cyclical downturns but fundamental changes in how these property types are utilized, directly threatening the underlying value of the collateral for STWD's loans in these segments. The full extent of these structural changes and their impact on property values and loan performance is still emerging.

Starwood Property Trust (STWD) operates in several real estate and infrastructure finance segments, each with significant addressable markets.

Here are the estimated addressable market sizes for their main products and services:

• Commercial Real Estate (CRE) Debt: The U.S. commercial real estate debt market was valued at approximately $5.9 trillion as of the fourth quarter of 2023. Other estimates for total commercial mortgage debt in the U.S. include $4.70 trillion, backed by income-producing properties, plus $470 billion in construction loans as of Q1 2024. Total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in Q4 2024.
• Commercial Mortgage-Backed Securities (CMBS): The U.S. CMBS market had a market capitalization of around $1.8 trillion as of December 31, 2024. Globally, the Commercial Mortgage-Backed Securities (CMBS) market size was valued at $1.23 trillion in 2024 and is projected to reach $1.862 trillion by 2033.
• Property Investments (Commercial Properties): The total U.S. commercial real estate market was valued at $22.5 trillion as of the fourth quarter of 2023.
• Residential Mortgage Loans: The residential mortgage debt outstanding in the U.S. totaled $12.94 trillion. As of the fourth quarter of 2022, residential mortgage debt in the U.S. totaled $11.92 trillion. The U.S. home mortgage market (referring to originations) was projected to reach a valuation of $204.49 billion in 2024.
• Infrastructure Lending: The U.S. infrastructure market was valued at $1.35 trillion in 2024 and is estimated to reach $1.42 trillion in 2025. Globally, the infrastructure sector market size is estimated at $2.89 trillion in 2025, with projections to reach $3.92 trillion by 2030. Another global estimate valued the infrastructure sector market at approximately $2.72 trillion in 2024. Global infrastructure investment is expected to amount to $106 trillion by 2040.
• Commercial Special Servicing: While a precise monetary market size for commercial special servicing is not explicitly provided, Starwood Property Trust, through its subsidiary LNR Property LLC, operates as the largest commercial mortgage special servicer in the U.S. LNR is named special servicer on approximately 20% to 24% of all transactions in the CMBS conduit universe.

Starwood Property Trust (STWD) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Diversification into Non-Commercial Real Estate (Non-CRE) Segments: Starwood Property Trust is strategically expanding its focus beyond traditional commercial real estate lending into less competitive and potentially higher-return areas. This includes a significant shift towards infrastructure lending, which has seen substantial investment and portfolio growth, and a notable expansion into the net lease sector through acquisitions like Fundamental Income Properties. The company views these areas as key growth opportunities.
2. Increased Investment Pace and Growth in Commercial Real Estate (CRE) Loan Portfolio: Despite its diversification efforts, STWD anticipates an elevated investment pace in its core commercial real estate lending. The company projects to end 2025 with its largest CRE loan portfolio in history, following declines in previous years, indicating a renewed focus on expanding this segment.
3. Strategic Capital Deployment and Strong Liquidity: Starwood Property Trust's robust capital structure and significant liquidity position enable it to actively pursue new investments and capitalize on emerging market opportunities. The company has demonstrated its ability to raise substantial capital through various channels, including equity, term loans, and unsecured debt, providing the financial flexibility needed to drive growth.
4. Continued Securitization Activities: The company consistently engages in securitization activities, particularly through its Starwood Mortgage Capital conduit. These securitizations, which have historically generated strong profit margins, are expected to continue contributing to revenue by financing loan portfolios and optimizing capital utilization.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• On March 11, 2020, Starwood Property Trust's Board of Directors authorized a share repurchase program of up to $400 million of its outstanding common shares and convertible notes over a one-year period.

Share Issuance

• On July 16, 2025, Starwood Property Trust priced an underwritten public offering of 25,500,000 shares of its common stock, with estimated gross proceeds of approximately $508 million.
• The proceeds from the July 2025 offering were primarily intended to fund a portion of the acquisition of Fundamental Income Properties, LLC.
• In the third quarter of 2025, the company raised $2.3 billion of capital across equity, term loan B, and high-yield markets.

Outbound Investments

• Starwood Property Trust completed the acquisition of Fundamental Income Properties, LLC for approximately $2.2 billion on July 23, 2025. This acquisition expanded the company's portfolio into a net lease real estate operating platform.
• The acquisition of Fundamental Income Properties was funded by assuming $1.3 billion of existing debt, a $500 million equity raise, and the remainder with cash on hand.
• For the first half of 2025, the company deployed $5.5 billion in capital towards new investments, including $1.9 billion in commercial lending and $700 million in infrastructure lending during the second quarter. By the end of Q3 2025, year-to-date investments totaled $10.2 billion.

Capital Expenditures

• The net change in property, plant, and equipment, a proxy for capital expenditures, was $189 million for 2024.
• In 2023, the net change in property, plant, and equipment was $48 million.
• For the trailing twelve months ending June 30, 2025, capital expenditures were reported as -$70.37 million, indicating that asset sales exceeded purchases of property, plant, and equipment.