Starwood Property Trust(STWD) - 2024 Q3 - Quarterly Report

Financial Position - As of September 30, 2024, total assets decreased to $64.23 billion from$69.50 billion as of December 31, 2023, reflecting a decline of approximately 7.5%[8] - Total liabilities decreased to $56.95 billion from$62.48 billion, a decline of around 8.5%[8] - The company reported an increase in additional paid-in capital to $6.31 billion from$5.86 billion, an increase of approximately 7.6%[8] - Retained earnings decreased to $346.18 million from$505.88 million, a decline of about 31.5%[8] - As of September 30, 2024, Starwood Property Trust reported total stockholders' equity of $6,539,723, an increase from$6,414,494 as of June 30, 2024, reflecting a growth of approximately 1.95%[15] Revenue and Income - Total revenues for the three months ended September 30, 2024, were $479,540,000, a decrease of 8.1$521,547,000 in the same period of 2023[10] - Net income attributable to Starwood Property Trust, Inc. for the three months ended September 30, 2024, was $76,068,000, an increase of 60.5$47,435,000 in the prior year[10] - Earnings per share (EPS) for the three months ended September 30, 2024, were $0.23, compared to$0.15 for the same period in 2023, reflecting a 53.3% increase[10] - Comprehensive income attributable to Starwood Property Trust, Inc. for the three months ended September 30, 2024, was $78,404,000, up from$44,194,000 in the same period of 2023[12] Expenses and Costs - Total costs and expenses for the three months ended September 30, 2024, were $502,575,000, a slight decrease of 3.3$519,600,000 in the same period of 2023[10] - Interest expense for the three months ended September 30, 2024, was $337,859,000, a decrease of 8.3$368,357,000 in the same period of 2023[10] Loans and Credit Losses - Loans held-for-investment net of credit loss allowances decreased to $16.13 billion from$17.57 billion, a reduction of about 8.2%[8] - The credit loss provision, net, increased to $66,427,000 for the three months ended September 30, 2024, compared to$52,634,000 in the same period of 2023, indicating a rise of 26.3%[10] - Credit loss allowances totaled $(404,924) as of September 30, 2024, up from$(309,039) as of December 31, 2023, representing an increase of approximately 30.9%[99] Cash Flow and Investments - Net cash provided by operating activities decreased to $351,006 for the nine months ended September 30, 2024, from$516,743 in 2023, a decline of about 32.0%[20] - Net cash provided by investing activities rose to $1,746,413 for the nine months ended September 30, 2024, compared to$943,158 in 2023, an increase of about 85.5%[20] - The company reported a net increase in cash and cash equivalents of $199,683 for the nine months ended September 30, 2024, compared to an increase of$48,754 in 2023[23] Shareholder Activities - The company declared dividends of $0.48 per share for the third quarter, totaling$162,571, compared to $150,825 in the previous quarter, indicating a 7.5$92.0 million from the sale of 16 retail properties for a gross sale price of $387.1 million, with net proceeds of$188.0 million after mortgage debt assumption[88] - During the nine months ended September 30, 2024, the company sold an operating property for $18.2 million, recognizing a gain of$8.3 million[89] Debt and Financing - As of September 30, 2024, total secured financing agreements amounted to $21.78 billion, with an outstanding balance of$11.85 billion[171] - The company entered into a new credit facility in August 2024 with a maximum size of $250 million, carrying a four-year initial maturity[174] - The total principal amount of unsecured senior notes outstanding is$2,780.75 million, an increase from $2,180.75 million at December 31, 2023[197] Compliance and Governance - The company was in compliance with all financial tests and covenants as of September 30, 2024[175] - The company expects no material impact from recent accounting standards updates on its segment disclosures and income tax disclosures[84][85]