I N V E S TO R P R E S E N TAT I O N M AY

Similar documents
INVESTOR PRESENTATION. March 2018

Starwood Property Trust to Acquire Project Finance Debt Business from GE Capital s Energy Financial Services. August 2018

Supplemental Financial Report Second Quarter August 7, 2018

Colony NorthStar Credit Real Estate, Inc. Supplemental Financial Report First Quarter 2018 May 8, 2018

First Quarter 2017 Earnings Call MAY 4, 2017

Q SUPPLEMENTAL REPORTING INFORMATION

Supplemental Financial Report Fourth Quarter February 28, 2019

Starwood Property Trust Reports Results for the Quarter Ended June 30, 2016

KBW Mortgage Finance Conference. June 1, 2016

Q SUPPLEMENTAL REPORTING INFORMATION

Investor Presentation

INVESTOR PRESENTATION

Fourth Quarter 2018 Earnings Call FEBRUARY 7, 2019

Blackstone Mortgage Trust Reports Full Year and Fourth Quarter 2014 Results

Investor Presentation

Starwood Property Trust, Inc. 591 West Putnam Avenue Greenwich, Connecticut 06830

KKR Real Estate Finance Trust Inc.

Second Quarter 2018 Investor Presentation

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC FORM 8-K

Starwood Property Trust, Inc.

Investor Presentation. Third Quarter 2017

Supplemental Financial Information Q1 2018

Second Quarter 2018 Earnings Call AUGUST 8, 2018

KKR Real Estate Finance Trust Inc.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC FORM 8-K

Invesco Mortgage Capital Inc Fourth Quarter Earnings Call February 22, 2017

Two Harbors Subprime Bond Case Study. August 6, 2014

Blackstone Mortgage Trust Reports First Quarter 2015 Results

KKR Real Estate Finance Trust Inc.

Third Quarter 2017 Earnings Presentation. November 7, 2017

Supplemental Financial Information Package Q February 14, 2018

Frequently Asked Questions

FINANCIAL SUPPLEMENT NYSE: CIM. 3rd Quarter 2018

TPG Specialty Lending, Inc.

Blackstone Mortgage Trust Reports Fourth Quarter and Full Year 2017 Results

Commercial Real Estate Exposure in MBIA Insurance Corporation s Insured Portfolio. March 2, December 31, 2010 unless otherwise stated

CRE FinanCE W. The Voice of Commercial Real Estate Finance. Autumn 2012 Volume 14 No.3. A publication of CRE Finance Council

Shares Invesco Mortgage Capital Inc.

ARBOR REALTY TRUST INVESTOR PRESENTATION. May 2018

Two Harbors Investment Corp. Investor Call

Blackstone Mortgage Trust Reports Second Quarter 2017 Results

Supplemental Financial Information Q3 2018

CHIMERA INVESTMENT CORPORATION 520 Madison Avenue New York, New York CHIMERA INVESTMENT CORPORATION RELEASES 1st QUARTER 2016 EARNINGS

Third Quarter 2013 Presentation

Corporate Profile Q2 2017

Corporate Profile Q1 2017

Section 1: 424B5 (424B5)

AXIS Capital Holdings Limited. Investment Portfolio Supplemental Information and Data March 31, 2010

1Q 2015 Stockholder Supplement

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended March 31, 2018

Supplemental Financial Information Package Q November 1, 2017

DMS Health Technologies, Inc. ACQUISITION OVERVIEW OCTOBER 14, 2015

Supplemental Financial Information Q2 2018

CHIMERA INVESTMENT CORPORATION DIVIDEND REINVESTMENT PLAN. 25,000,000 Shares of Common Stock

Supplemental Financial Information Q4 2018

Blackstone Mortgage Trust Reports Third Quarter 2014 Results

Third Quarter 2018 Earnings Presentation. October 31, 2018

The ABCs of CDOs The Buzz from the MBA Conference

Investor Meetings. April 2010

Investor Presentation

AG Mortgage Investment Trust, Inc. Investor Presentation NYSE: MITT NYSE: MITT

Starwood Waypoint Residential Trust ( SWAY )

Shareholder Presentation January 3, 2019

Blackstone Mortgage Trust Reports Fourth Quarter and Full Year 2018 Results

Blackstone Mortgage Trust Reports Third Quarter 2016 Results

Redwood Trust, Inc. JMP Securities Financial Services and Real Estate Conference September 27, 2016

ARES COMMERCIAL REAL ESTATE CORPORATION REPORTS FIRST QUARTER 2018 RESULTS

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC FORM 8-K

The Hanover Insurance Group

ARES COMMERCIAL REAL ESTATE CORPORATION REPORTS THIRD QUARTER 2018 RESULTS

Roper Technologies, Inc. EPG Annual Spring Conference

Keefe, Bruyette & Woods 2017 Mortgage Finance & Asset Management Conference. June 1, 2017

Credit Suisse Financial Services Forum. Februar y 9, 2016

Resource Credit Income Fund (the Fund )

KKR Real Estate Finance Trust Inc.

Blackstone Mortgage Trust Reports Third Quarter 2018 Results

KKR REAL ESTATE FINANCE TRUST INC. REPORTS FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS

Ellington Financial LLC (NYSE: EFC) Fourth Quarter 2016 Earnings Conference Call February 14, 2017

Investor Meetings. August 2010

Q109. Tom Flynn. Defining great customer experience. Risk Review. Executive Vice President & Chief Risk Officer

4,400,000 Shares % Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock (Liquidation Preference $25.

istar Annual Report 2016

KKR & CO. L.P. FORM 10-K. (Annual Report) Filed 02/24/17 for the Period Ending 12/31/16

Bank of America Second Quarter 2009 Results

KKR Real Estate Finance Trust Inc.

BAML Banking and Financial Services Conference

Colony Credit Real Estate, Inc. Announces Third Quarter 2018 Financial Results

Investor Presentation. Third Quarter 2018

Brookfield Asset Management SUPPLEMENTAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, NYSE/TSX: BAM CONTENTS

Blackstone Mortgage Trust Reports Fourth Quarter and Full Year 2015 Results

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC

focused 1Q17 Earnings Conference Call Supplemental Presentation April 27, 2017

Corporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended December 31, 2017

First Quarter 2018 Financial Summary. May 2, 2018

SLM CORPORATION INVESTOR PRESENTATION STEVE MCGARRY EVP AND CFO

First Quarter 2010 Review April 21, Speakers: Henry Meyer Jeff Weeden

Colony Credit Real Estate, Inc. Announces Second Quarter 2018 Financial Results

RiverPark Floating Rate CMBS Fund (RCRIX)

STARWOOD WAYPOINT RESIDENTIAL TRUST AND COLONY AMERICAN HOMES ANNOUNCE MERGER TO CREATE BEST IN CLASS SINGLE-FAMILY RENTAL COMPANY

New York Mortgage Trust Reports First Quarter 2018 Results

Transcription:

I N V E S TO R P R E S E N TAT I O N M AY 2 0 1 5

Forward Looking Statements This presentation contains certain forward-looking statements, including without limitation, statements concerning our operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words believe, expect, anticipate, and other similar expressions. Forward-looking statements do not guarantee future performance, which may be materially different from that expressed in, or implied by, any such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on our current beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control, and which could materially affect actual results, performance or achievements. Factors that may cause actual results to vary from our forward-looking statements include, but are not limited to: factors described in our Annual Report on Form 10-K for the year ended December 31, 2014, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 including those set forth under the captions Risk Factors and Business ; defaults by borrowers in paying debt service on outstanding indebtedness; impairment in the value of real estate property securing our loans; availability of mortgage origination and acquisition opportunities acceptable to us; our ability to integrate the segments of LNR Property LLC, a Delaware limited liability company ( LNR ), which were acquired on April 19, 2013, into our business and achieve the benefits that the we anticipate from this acquisition; potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; national and local economic and business conditions; general and local commercial real estate and residential property conditions; changes in federal government policies; changes in federal, state and local governmental laws and regulations; increased competition from entities engaged in mortgage lending and securities investing activities; changes in interest rates; and the availability of and costs associated with sources of liquidity. 1

Forward Looking Statements, Continued Additional risk factors are identified in our filings with the U.S. Securities Exchange Commission (the SEC ), including our Annual Report on Form 10-K for the year ended December 31, 2014 and our Form 10-Q for the quarter ended March 31, 2015 which are available on our website at http://www.starwoodpropertytrust.com and the SEC s website at http://www.sec.gov. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. As a result, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forwardlooking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the events described by our forward-looking statements might not occur. We qualify any and all of our forward-looking statements by these cautionary factors. Please keep this cautionary note in mind as you assess the information given in this presentation. 2

Starwood Property Trust Today 1 Leading publicly traded non-bank real estate finance company Largest commercial mortgage REIT in the world with a market capitalization of $5.7 billion Total capital deployed since inception of $18.3 billion; current portfolio of over $9.2 billion Focused on providing a secure dividend for investors; current in-place yield of 8.0% 2 Highly diversified and scalable investment platform with proven track record Broad wholesale asset origination, acquisition and servicing model Flexibility and expertise to invest across the real estate finance sector to generate attractive returns Total annualized shareholder returns of 15.1% and total return of 124.6% since IPO (1) 3 Unparalleled access to global transaction sourcing, underwriting, and asset management Over 450 employees dedicated to Starwood Property Trust globally Ability to leverage Starwood Capital Group s 1,000+ employees and 24 years of transaction experience Position as largest commercial special servicer provides a unique window into the CRE finance markets Note: Figures as of March 31, 2015, unless otherwise noted 1) Source Bloomberg: Period between 8/12/2009 and 5/7/2015, includes reinvestment of dividends 3

STWD s Evolving Strategy Over $18B of total capital deployed since inception 2011 Total capital deployed of $2.0B 2013 Acquired LNR Property LLC for $0.7B Deployed a total of $4.1B of capital in 2013 2012 Deployed a total of $2.6B in 2012 2010 Deployed $1.7B in 2010 Increased aggregate financing capacity under five financing facilities to $1.1B 2009 IPO in August 2009 raised approximately $1.0B 2014 Deployed a record $5.5B during the year Spun off Starwood Waypoint Residential Trust (NYSE:SWAY), which has become one of the largest owners of single family rental homes in the U.S. Commenced strategy of core plus equity investing through the purchase of a portfolio of four high quality regional malls 2015 Deployed $1.2B in 1Q15 Committed to acquire a 452M office and multifamily portfolio located in Dublin, Ireland Note: Figures as of March 31, 2015, unless otherwise noted 4

Starwood Capital Group Overview Founded in 1991 by Barry Sternlicht, Starwood Capital Group is one of the world s leading privately held alternative investment firms with a focus on global real estate Outstanding Performance Acquired over $65 billion of assets over the past 24 years; current assets under management in excess of $42 billion Experienced Executive Team Distinctive Corporate Transactions Expertise Worldwide Insight and Access Investing Discipline Extensive Asset Class Experience Seasoned executive team that has been together for over 14 years with an average of 28 years of industry experience A leader in public-private/private-public market executions including the creation of five NYSE-listed companies Eleven offices globally provide transaction flow and insight into economic and local market trends Significantly decreased acquisition activity when the market became overheated in 2006/2007 Type Multifamily/ Condos Office Retail Hotels Land Experience 84,000 units 55 million sf 50 million sf 2,500 hotels 49,000 lots Note: Figures as of March 31, 2015, unless otherwise noted 5

Starwood s Synergistic Business Lines Starwood Property Trust s affiliates provide information and expertise which give the Company an edge in sourcing, underwriting, and executing transactions across geographies and asset classes Manages one of the largest regional mall operating platforms in the U.S., with a portfolio of 28 properties totaling 27 million square feet of gross leasable area and $5 billion of gross asset value. Hotel management team brings operational expertise in areas of revenue management, marketing, food + beverage, systems, and cost management. Currently manage two brands: 1Hotels and Baccarat Hotels & Resorts. One of the largest publicly traded owners and operators of single-family residential rental homes in the U.S. The company also invests in NPLs to supplement its growth. Focuses on land acquisition, development, and financing. SLV has acquired over 17,000 lots in over 60 communities in 3 states and is a leading provider of sites to the homebuilding industry. Specializes in energy infrastructure investments, with a focus on the natural gas and renewable power generation, and transmission sectors. Starwood Energy Group manages total equity commitments of over $2 billion. Note: Figures as of March 31, 2015, unless otherwise noted 6

STWD Earnings Components STWD revenues are diversified across its Lending and Investing & Servicing segments STARWOOD PROPERTY TRUST EARNINGS CONTRIBUTION 1 Commercial Real Estate Starwood Mortgage Capital Other - Investing and Servicing Lending Segment CMBS Portfolio Large Loan Portfolio Investing & Servicing Segment Servicing Other - Lending Note: Figures as of March 31, 2015, unless otherwise noted 1) Earnings contribution based on core gross income contribution 7

Lending Segment Overview Leading provider of first mortgage and mezzanine loans; over $13.7B of capital deployed since inception $7.1B portfolio carrying value: 42% subordinate mortgages and mezzanine loans 41% first mortgages 7% preferred equity 10% other 80% of lending portfolio is indexed to LIBOR; portfolio constructed to benefit from rising rates Fixed-rate portfolio has an 8.1% weighted average coupon and a 11.5% asset level return 1 12% represents European loans with an asset-level return of 11.8% 1 62.4% loan-to-value ratio 10.6% asset level return 1 Note: Figures as of March 31, 2015, unless otherwise noted 1) The optimal asset-level return assumes (i) maximum available leverage in place or in negotiation for each asset, notwithstanding the amount actually borrowed, and (ii) full syndication of first mortgage when syndication is deemed probable 8

Loan Origination and Structuring Process 1. Originate Whole Loan Originate a 75% LTV first mortgage at a rate of L + 4.75% 2. Either Retain First Mortgage or Split Into Sr/Jr Senior tranche has a 50% LTV while the junior tranche remains at 75% LTV $100M $75M $75M $50M A OR Senior First Mtg. First Mtg. Building $25M Equity $25M Junior 3. Finance First Mortgage or Sell Senior Optionality to finance or sell the 0% - 50% LTV portion of the loan B $75M First Mtg. OR $50M Senior Assume that STWD can finance the first mortgage or sell 100% of the senior loan at a cost of L + 2.00% 4. Retain Junior Tranche of Loan STWD benefits from the lower cost of financing on the senior portion of the mortgage C STWD s investment represents 50%-75% LTV $25M Junior A B C Asset Yield (L+) 4.75% Cost of Financing (L+) (2.00%) Net Interest Margin (L+) 2.75% Leverage 2.0x Gross ROE of Junior (L+) (1) 10.25% (1) Asset yield equates to $3.56M of interest income, cost of financing equates to $1.0M of expenses and STWD earns $2.56M on its retained investment of $25M or a 10.25% return 9

Lending Segment Portfolio TOTAL PORTFOLIO SIZE (1) vs. WEIGHTED AVERAGE LTV (2) US$ (M) $6,792 $7,107 64.7% $2,136 67.8% $2,513 65.7% $2,383 66.5% $2,834 64.1% 64.9% $3,072 $3,201 $3,609 62.8% $4,455 $4,087 $4,099 $4,147 65.1% 64.0% 64.0% 63.1% $5,375 $5,603 65.5% 65.6% $5,819 $6,094 64.5% 64.2% 61.9% 62.4% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1) In millions, includes lending segment assets as of 3/31/15 2) As of 3/31/2015. Underlying property values are determined by STWD s management based on its ongoing asset assessments, and loan balances that are the face value of a loan regardless of whether STWD has purchased the loan at a discount or premium to par. For any loans collateralized by ground-up construction projects without significant leasing or units with executed sales contracts, the fully funded loan balance is included in the numerator and the fully budgeted construction cost including costs of acquisition of the property is included in the denominator. For ground up construction loans which have significant leasing or units under contract for sale the fully funded loan balance is included in the numerator with an estimate of the stabilized value upon completion of construction included in the denominator 10

Lending Segment Portfolio, Continued LOAN BALANCE BY REGION LOAN BALANCE BY PROPERTY TYPE Southwest 6% Midwest 9% Mid-Atlantic 6% Northeast 27% Retail 9% Mixed Use 10% Industrial 2% Residential 1% Office 42% International 13% Multifamily 13% Southeast 13% West 25% Hospitality 24% Note: Figures as of March 31, 2015, unless otherwise noted 11

Lending Segment Credit Performance STWD has funded $13.6B since inception and has $0 of realized loan losses to date CUMULATIVE LENDING SEGMENT LOAN FUNDINGS REALIZED LOAN LOSSES TO DATE US$ (M) $14,000 $12,000 $10,000 $8,000 $6,000 $0 $4,000 $2,000 $0 2009 2010 2011 2012 2013 2014 Q1 2015 Note: Figures as of March 31, 2015, unless otherwise noted 12

Investing & Servicing Segment Overview US Special Servicer Investment Securities Portfolio Largest named and one of the largest active commercial mortgage special servicers in the U.S. Named special servicer on 156 trusts with a collateral balance in excess of $132B, with $13.7B of loans and real estate owned in special servicing Legacy whole loan, CMBS and CDO investments including controlling class positions that form the basis for a material portion of the company s special servicing rights Starwood Mortgage Capital Conduit loan origination platform Securitized $465M in 3 transactions in Q1 2015 LNR Europe/ Hatfield Philips Note: Figures as of Mach 31, 2015, unless otherwise noted One of the largest independent primary and special servicers in Europe (Hatfield Philips) Active primary servicer of $12B and special servicer on $8B of primarily CMBS securities Diversifying platform through the expansion of NPL underwriting & debt advisory businesses 13

The Power of Experience The longest-serving investor in subordinate CMBS and one of the only participants to have persevered through every real estate cycle since 1991 Resolved over 5,400 non-performing assets with a total principal balance of approximately $59B since inception Senior management in Investing & Servicing segment averages 17+ years with the company and 24+ years of industry experience Active CMBS Portfolio Number of Deals 156 Current UPB $132.3B Current Loan Count 10,013 Active Special Servicing Portfolio SS Loan Count 417 SS Loan Balance $5.8B REO Loan Count 490 REO Loan Balance $7.9B Resolved Since Inception Resolved Loan Count 5,429 Resolved Loan Balance $58.9B Note: Figures as of March 31, 2015, unless otherwise noted 14

CMBS Maturities Market Share Special Servicing Overview Anticipated fees are positively correlated to upcoming legacy CMBS industry maturities CMBS MATURITIES AND LNR MARKET SHARE US$ (B) $200 38% $190 40% $160 $120 26% $116 $117 31% 30% 21% 20% $80 $63 $40 $24 $30 $36 $40 10% $0 2015 2016 2017 2018+ Industry Maturities LNR Maturities LNR Market Share 0% Note: Data as of April 30, 2015 15

Named CMBS Market Share Active SS Market Share $ M Special Servicing Market Share LNR is the largest named Special Servicer (SS) with over $38B more UPB than its next biggest competitor Between 2013 2014, LNR was named SS on $29B of UPB on new issuance CMBS backed by 1,831 new loans in 28 conduit deals $140,000 $120,000 40% 35% $100,000 $80,000 $60,000 $40,000 $20,000 30% 25% 20% 15% 10% 5% $0 LNR CW C-III Midland Rialto Torchlight Situs KeyBank Wells Fargo CMBS 1.0 UPB CMBS 2.0/3.0 UPB Active SS Market Share 0% Note: Figures as of March 31, 2015, unless otherwise noted; CMBS represents carrying value CMBS 1.0 deals were originated in prior to 2008. CMBS 2.0/3.0 deals were originated from 2009 forward. Different credit underwriting and regulatory requirements are applied to CMBS 2.0/3.0 deals 16

CMBS Portfolio $807M of CMBS which is mixed between 1.0, 2.0 and 3.0 vintages OWNED CMBS 1.0 / 2.0 / 3.0 OWNED CMBS BY VINTAGE ($ M) $200 $150 CMBS 1.0 $315 39% CMBS 2.0 / 3.0 $492 61% $100 $50 $0 '01 & Prior '02 '03 '04 '05 '06 '07 '08 '11 '12 '13 '14 '15 CMBS 1.0 CMBS 2.0 CMBS 3.0 Note: Figures as of March 31, 2015, unless otherwise noted; CMBS represents carrying value 17

Starwood Mortgage Capital Originate mortgage loans secured by commercial real estate property 75% financing on one of three credit lines shortly after origination 25% equity Sell the loan to a CMBS securitization trust for profit on the principal loan amount, typically 30-40 days after origination Strong Return on Equity Securitization enables the platform to recycle its capital base to originate new loans and create higher ROEs $5,000 Securitization Volume ($M) $4,346 $4,000 $3,000 $2,000 $1,511 $1,619 $1,000 $752 $465 $0 2012 2013 2014 Q1 2015 TOTAL Number of Securitizations 6 10 11 3 30 Note: Figures as of March 31, 2015, unless otherwise noted 18

Conservative Balance Sheet STWD has maintained a very conservative balance sheet, consisting of both secured asset-level and corporate-level debt HISTORICAL DEBT-TO-EQUITY RATIO CAPITALIAZATION 1.1x 0.9x 1.0x 1.2x 1.3x 1.2x US$ (B) Equity Market Capitalization 1 $5.5 Total Debt Outstanding $5.1 1Q14 2Q14 3Q14 4Q14 1Q15 QTD 2 3 Note: As of March 31, 2015, unless otherwise indicated (1) Based on outstanding shares as of March 31, 2015 of 224.3 million and closing stock price on March 31 of $24.30 (2) Starwood Waypoint (NYSE: SWAY) spin off (3) Calculation is pro forma for our April equity issuance of $326.1 million 19

Total Debt Capacity Maximum on-balance sheet borrowing capacity of $5.9B and A-note sales can provide an incremental and highly scalable source of liquidity going forward US$ (M) MAXIMUM BORROWING CAPACITY $3,778 $1,324 $95 $663 Repurchase Facilities Borrowings on Transferred Loans Term Loan Convertible Senior Notes Senior Note Syndications Note: Figures as of March 31, 2015, unless otherwise noted 20

Historical Cost of Funds Management STWD maintains a strong focus on securing the most competitive costs and structures for all financing facilities to help maintain its overall return profile MIGRATION OF FINANCING FACILITY COSTS AND ADVANCE RATES 4.50% 80% 4.00% 3.50% 3.00% 2.50% 2.00% 3.875% 3.375% 2.125% 75% 70% 175bps of financing cost declines will offset over 500bps of spread tightening at 3.0x leverage 1.50% 1.00% 65% 0.50% 0.00% 2012 2013 Today 60% Average All-In Cost of Warehouse Financing Average Advance Rate Note: Facility costs expressed as spread over LIBOR 21

Risk Management CURRENCY RISK Hedge 100% of expected principal and interest foreign currency risk INTEREST RATE RISK 80% of portfolio is indexed to LIBOR 85% of the floating rate loan portfolio benefits from having a LIBOR floor at an average of 0.32% Where fixed rate loan portfolio is financed using floating rate liabilities, 100% of the floating rate exposure is hedged back to fixed LENDING SEGMENT ASSETS LENDING SEGMENT LIABILITIES Fixed Rate Loans 20% Floating Rate Loans 80% Fixed Rate Financing 32% Floating Rate Financing 68% Note: Figures as of March 31, 2015, unless otherwise noted 22

Interest Rate Sensitivity The lending portfolio should benefit from a rising rate environment given its high volume of LIBORbased floating rate loans VARIABLE RATE INVESTMENTS & LIABILITIES US$ (M) EARNINGS SENSITIVITY TO CHANGES IN LIBOR US$ (M) 1.0% Increase $20 +$0.09/share $5,379 $1,651 Variable Rate Assets ($3,728) Net Equity 2.0% Increase $41 +$0.18/share Variable Rate Liabilities 3.0% Increase $63 +$0.28/share Note: Figures as of March 31, 2015, unless otherwise noted 23

Issuing Equity at a Premium to Book Value STWD has executed its follow-on equity offerings at a premium to book value and has opportunistically bought back stock in periods of weakness to further align with shareholders HISTORICAL EQUITY ISSUANCES $30.00 20% Weighted Average Premium to Book Value $20.00 Equity Issue Price $10.00 Dec-10 May-11 Apr-12 Oct-12 Apr-13 Sept-13 Apr-14* Apr-15 Book Value per Share * Decline in book value per share is attributable to the SWAY spin-off which occurred in February 2014 24

Core Plus Investing Opportunity The current wide spread between cap rates and treasuries enables buyers to generate attractive cashon-cash returns in defensive, strong performing core plus real estate properties Real estate also offers 1) historically consistent appreciation, 2) long duration, 3) asset diversification and 4) an inflation hedge 10.00% 9.00% 8.00% HISTORICAL CAP RATES AND 10-YEAR TREASURY YIELDS 7.00% 6.00% 5.00% 4.00% 3.00% 10yr UST Office Industrial Retail Apartment Hotel 2.00% 1.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Real Capital Analytics 25

STWD: A Premier Multi-Cylinder Platform Future growth opportunities will come from a combination of leveraging STWD s existing platform and pursuing new investments with meaningful synergies with Starwood Capital s core competencies Scaling Existing Businesses Developing New Businesses Internally Exploring New Asset Classes Geographic Expansion Building the premier multi-cylinder finance company primarily focused on the real estate industry Strategic Acquisitions & Alliances 26