built to perform across the credit cycle

Transcription

1 built to perform across the credit cycle STARWOOD PROPERTY TRUST 1

2 AT A GLANCE Starwood Property Trust (NYSE: STWD) is a leadig, diversified real estate fiace compay, ad is the largest commercial mortgage REIT i the Uited States, with: ON THE COVER: 1180 PEACHTREE, ATLANTA, GEORGIA 2 STARWOOD PROPERTY TRUST Total capital deployed sice iceptio of over $33 billio. HUDSON YARDS, NEW YORK S hares publicly traded o the New York Stock Exchage ad a curret market capitalizatio of approximately $6 billio.1 A portfolio of more tha $11 billio across the compay s real estate ledig, ivestig ad servicig, ad property busiesses. A pproximately 350 dedicated employees. T he ability to leverage the platform of Starwood Capital Group, a leadig global private ivestmet firm with 26 years of experiece ad broad operatig expertise across virtually every real estate asset class. T he largest commercial mortgage special servicig busiess i the Uited States. T he size ad expertise to successfully execute large, complex real estate trasactios. A strategy of mitigatig risk by maitaiig a diversified portfolio of ivestmets ad a credit-first metality. A focus o providig a secure divided for ivestors, with a curret divided yield of 8.7%.1 Data throughout presetatio as of March 31, Market capitalizatio ad divided yield figures as of May 8, STARWOOD PROPERTY TRUST 3

3 COMPANY BY THE NUMBERS Starwood Property Trust s growth ad reach ca be illustrated by some key statistics: 8.7% DIVIDEND YIELD 1 $33B + CAPITAL DEPLOYED sice iceptio 13% COMPOUNDED ANNUAL RETURN 2 sice iceptio Starwood Property Trust has from the very begiig held a uique positio i the commercial mortgage ladscape. Amid the depths of the Great Recessio, leadig global private ivestmet firm Starwood Capital Group recogized that traditioal commercial leders were withdrawig from the marketplace ad a sigificat eed had emerged for alterative commercial mortgage fiacigs. I respose, the Firm established Starwood Property Trust ad i August 2009 took the compay public (NYSE: STWD) creatig the largest blid pool compay ever traded o the New York Stock Exchage. The busiess has sice grow dramatically, ad Starwood Property Trust today is the largest commercial mortgage REIT i the Uited States, with a curret market capitalizatio of approximately $6 billio 1 ad 350 employees. The compay s core busiess focuses o origiatig, acquirig, fiacig ad maagig commercial mortgage loas ad other commercial real estate debt ad equity ivestmets. I cojuctio with Starwood Capital Group, Starwood Property Trust i April 2013 acquired LNR Property LLC ad subsidiary LNR Parters LLC, the largest special servicer i the Uited States, thus gaiig sigificat expertise i the distressed real estate marketplace, while also addig substatial scale, depth ad sophisticatio to the compay s operatios. I additio, Starwood Property Trust i 2014 spu off its sigle-family residetial operatios ito a ew etity, Starwood Waypoit Residetial Trust (NYSE: SWAY), which is ow tradig as Coloy Starwood Homes (NYSE: SFR) ad is oe of the largest publicly traded ivestors, owers ad operators of sigle-family retal homes i the Uited States. While other commercial real estate fiace compaies remai focused solely o specific sectors of the market, Starwood Property Trust s multicylider ivestmet platform allows it to dyamically seek out ivestmet opportuities across a much broader uiverse. Starwood Property Trust s maagemet team collaborates with Starwood Capital Group ad its approximately 2,200 employees across 10 offices worldwide o a top-dow ad bottom-up approach to fidig the best risk/reward opportuities. By leveragig the scale ad global relatioships of Starwood Capital Group ad its affiliates, Starwood Property Trust is able to idetify potetial trasactios that the compay believes caot be sourced by may of today s market participats. $12.3B TOTAL CAPITALIZATION 1 $5.9B EQUITY MARKET CAPITALIZATION 1 1.4x DEBT-TO-EQUITY RATIO 1 Ba2/BB CORPORATE DEBT RATINGS from Moody s ad Stadard & Poor s With total capital deployed sice iceptio of more tha $33 billio, Starwood Property Trust cotiues to solidify its positio as oe of the world s leadig o-bak real estate fiace compaies. CLOCKWISE FROM TOP LEFT: BALTIMORE WHARF, LONDON; CLARIDGE S, LONDON; SOLANA BUSINESS PARK, DALLAS; EMBASSY SUITES BY HILTON, LOMPOC, CALIFORNIA; 200 S. WACKER DRIVE, CHICAGO; THE MALL AT WELLINGTON GREEN, WELLINGTON, FLORIDA; THE BRILL BUILDING, NEW YORK CITY 1 Data as of May 8, Past performace is ot idicative of future results. Future results deped o umerous factors that are subject to ucertaity ad risk. 1 Data as of March 31, STARWOOD PROPERTY TRUST STARWOOD PROPERTY TRUST 5

4 HISTORY Starwood Property Trust (NYSE: STWD) goes public i the third-largest REIT IPO i U.S. history, ad becomes the largest blid pool compay ever listed o the New York Stock Exchage. LNR Property headquarters, Miami Starwood Property Trust parters with Starwood Capital Group to acquire LNR Property LLC icludig subsidiaries LNR Parters LLC, the largest commercial mortgage special servicer i the U.S., ad Hatfield Philips Iteratioal, oe of the largest primary ad special loa servicers i Europe. Hero Tower, Lodo Starwood Property Trust origiates a 288M refiacig for the icoic Hero Tower (subsequetly reamed Salesforce Tower) i the City of Lodo widely cosidered oe of the fiest office buildigs i all of Europe. Starwood Property Trust participates i its first major equity ivestmet the acquisitio of a portfolio of four high-quality regioal malls i Florida, Michiga, North Carolia ad Virgiia. MacArthur Ceter, Norfolk, Virgiia Physicias Plaza, Nashville, Teessee Starwood Property Trust acquires a portfolio of 34 medical office buildigs totalig 1.9M square feet for approximately $760 millio. These properties are primarily affiliated with leadig hospitals or located o or adjacet to major hospital campuses throughout the Uited States Starwood Property Trust ad a fud affiliated with Starwood Capital Group co-origiate a $475M loa for the acquisitio ad redevelopmet of a 10-story retail buildig at the Times Square Bowtie i Mahatta oe of the world s preemiet retail locatios. Starwood Property Trust origiates a $350M first mortgage ad mezzaie loa for the South Tower i NYC s Hudso Yards the first vertical developmet i the largest private commercial real estate project i U.S. history. Starwood Property Trust origiates a $275M first mortgage loa for the award-wiig Four Seasos Resort Hualalai at Historic Ka upulehu o Hawaii s Big Islad. Starwood Property Trust closes its first major Europea equity ivestmet the 452M acquisitio of a portfolio of 13 office ad multifamily properties i Dubli th Aveue, New York VISUALHOUSE Four Seasos Resort Hualalai 76 St. Stephe s Gree, Dubli Starwood Property Trust spis off its sigle-family retal busiess to create Starwood Waypoit Residetial Trust, ow tradig as Coloy Starwood Homes (NYSE: SFR) oe of the largest owers ad operators of sigle-family retal homes i the Uited States. Starwood Property Trust completes the $566M acquisitio of 32 affordable housig commuities comprisig 14,186 uits i the Tampa, Orlado ad West Palm Beach metropolita areas i Florida. The portfolio icludes what the team believes are some of the highest-quality low-icome properties i the state. Hudso Yards South tower from the Highlie 6 STARWOOD PROPERTY TRUST STARWOOD PROPERTY TRUST 7

5 BUSINESS SEGMENTS FLUSHING COMMONS, QUEENS, NEW YORK Starwood Property Trust has bee orgaized ito three complemetary busiess segmets that allow the firm to efficietly deploy capital throughout the real estate cycle: REAL ESTATE LENDING Starwood Property Trust s primary busiess sice the compay s IPO i 2009, the real estate ledig segmet has deployed over $23 billio of capital sice iceptio. The compay has built a leadig frachise i the global real estate fiace market by offerig seamless, customized solutios for borrowers icludig first mortgages, subordiate debt, mezzaie loas, B-otes ad preferred equity. The compay possesses the size ad scale to serve as a oe-stop leder, ad the team leverages Starwood Capital Group s expertise across virtually every real estate asset class to help source, structure ad uderwrite trasactios. REAL ESTATE INVESTING AND SERVICING This segmet icludes a variety of busiess lies focused o commercial mortgage-backed securities (CMBS) ad commercial real estate ivestmets, special servicig operatios ad a commercial mortgage coduit platform. The compay s leadership i CMBS ad special servicig is the result of its disciplied ad cosistet approach to ivestig. Combied with extesive credit uderwritig, acquisitio, maagemet ad workout expertise, this approach has resulted i strog performace for this segmet s ivestmets across multiple real estate cycles. CMBS ad Commercial Real Estate Ivestmets Starwood Property Trust is a leader i ivestig i both CMBS ad related commercial real estate assets, with a diversified portfolio of approximately $1 billio. The compay s due diligece process supports a usurpassed executio capacity icludig the ability to uderwrite hudreds of loas withi a short timeframe, utilizig persoel across the Uited States ad deep relatioships i the commercial real estate brokerage commuity. Ivestmet decisios are iformed by a proprietary database maagemet system that tracks over 100,000 properties aroud the coutry. Special Servicig The compay operates the largest commercial mortgage special servicer i the Uited States, LNR Parters LLC. Backed by early 240 employees, LNR is the amed special servicer o approximately 22% of all trasactios i the CMBS uiverse. Sice iceptio, LNR has resolved over 6,000 o-performig assets with a total pricipal balace of over $67.3 billio across all major property types. Despite the icreasig complexity of workouts, LNR has achieved a resolutio rate of approximately 73% i loa ad real estate owed (REO) property liquidatios. Coduit Starwood Property Trust s commercial real estate coduit loa origiatio platform, Starwood Mortgage Capital, origiates five-, seve- ad 10-year fixedrate mortgages throughout the Uited States, secured by all major real estate asset classes. With trasactios typically ragig from $5 100 millio, ad a average turover rate of days, Starwood Mortgage Capital has origiated ad securitized over $7.8 billio i loas sice its iceptio i PROPERTY I 2014, Starwood Property Trust bega ivestig i real estate assets to complemet its other busiesses. These equity ivestmets, totalig approximately $2 billio, comprise high-quality, stable real estate assets with a value-added elemet thus allowig the compay the opportuity to geerate attractive risk-adjusted returs. The compay focuses o ivestig i properties that geerate curret, stable cash-o-cash returs while also offerig the potetial for capital appreciatio. RENDERING COURTESY OF CONWAY + PARTNERS 8 STARWOOD CAPITAL GROUP STARWOOD PROPERTY TRUST 9

6 EDGE APPROACH Starwood Property Trust occupies a uique positio i the global real estate fiace market, based o the followig differetiators: DEEP, HANDS-ON REAL ESTATE PERSPECTIVE Starwood Property Trust has successfully avigated multiple real estate cycles, with a track record of deployig over $33 billio of capital sice iceptio. I additio, the compay s affiliatio with Starwood Capital Group allows Starwood Property Trust to leverage the Firm s 26 years of experiece as a real estate ivestor ad broad operatig expertise. As a result, the compay possesses a graular uderstadig of real estate credit risk, ad ca evaluate each trasactio from both a leder s ad equity ivestor s perspective. ONE-STOP SHOP FOR COMPLEX TRANSACTIONS With access to multiple sources of fiacig ad a experieced team of loa origiatio ad sydicatio professioals, Starwood Property Trust ca offer customized ad creative solutios to borrowers i keepig with its goal of beig icluded o virtually every major commercial real estate ivestor s short list of preferred leders. Uderscorig Starwood Property Trust s scale, the average size of its loas sice iceptio is early $100 millio, ad the compay has the ability to structure ad origiate loas as large as $500 millio. GLOBAL REACH Starwood Property Trust beefits from a usurpassed global sourcig egie that comes from Starwood Capital Group s positio as oe of the largest istitutioal real estate ivestors i the world, with more tha 2,200 employees across 10 offices o three cotiets. As a result, the compay is able to cast a wide et i the search for ivestmet opportuities, ad ca selectively pursue oly those that offer particularly attractive potetial risk/reward profiles. IN-DEPTH MARKET KNOWLEDGE With Starwood Property Trust s 2013 acquisitio of LNR came LNR Parters, the largest special servicer i the Uited States. This greatly expaded the compay s expertise i the distressed CRE marketplace. The Starwood Property Trust team ca aalyze both the commercial mortgage-backed securities markets ad LNR s special servicig portfolio to idetify situatios where it ca provide potetial solutios for troubled borrowers. Iformatio Advatage The expertise developed through Starwood Capital Group s symbiotic busiess lies ehaces Starwood Property Trust s judgmet throughout the uderwritig process. Starwood Capital Group s affiliates ad specialized teams which provide Starwood Property Trust with critical, bottom-up itelligece i formulatig its ivestmet strategy ecompass the followig sectors ad asset classes: Hotels (2,900 properties acquired sice iceptio) Multifamily (153,000 uits) Retail (53 millio square feet) Office (67 millio square feet) Residetial Lad (52,000 lots) Eergy Ifrastructure ($6 billio of trasactio eterprise value) Oil & Gas ($213 millio ivested) I additio, Starwood Property Trust s special servicer tracks terabytes of proprietary historical commercial real estate data from over 100,000 performig ad o-performig loas i its database which helps iform decisios across the orgaizatio. Starwood Property Trust employs its expertise ad highly diversified ad scalable ivestmet platform across all facets of real estate fiace to seek to geerate cosistet, risk-adjusted returs for shareholders. I its pursuit of this strategy, the compay adheres to the followig priciples: LOOK AT REAL ESTATE LENDING THROUGH AN EQUITY LENS Starwood Property Trust has developed a culture of viewig real estate ledig from a log-term balace-sheet perspective. The compay iterally uderwrites ad asset maages every trasactio i its portfolio which is expesive ad time-cosumig, but the team believes that this approach explais the portfolio s exemplary credit performace, with o losses to date o over $23 billio i loa ivestmets sice iceptio. The Starwood Property Trust team also believes that it beefits from Starwood Capital Group s 26 years of real estate ivestmet experiece whe sourcig ad evaluatig potetial trasactios. PROVIDE A ONE-STOP FINANCING SOLUTION FOR BORROWERS Starwood Property Trust prides itself o the ability to disitermediate traditioal seior mortgage ad mezzaie leders by providig oe-stop, combied fiacig i a sigle seamless process for borrowers. The team believes that its focus o large, customized fiacig solutios has helped set Starwood Property Trust apart from its competitors. INVEST ACROSS THE REAL ESTATE CAPITAL STRUCTURE Starwood Property Trust s broad wholesale asset origiatio, acquisitio ad servicig model provides the compay with the flexibility ad expertise to ivest across the real estate capital structure to take advatage of chagig dyamics at differet poits i the real estate cycle. FOCUS ON RISK MITIGATION Starwood Property Trust is highly focused o mitigatig risk i its portfolio. The compay s strategy is built o usig modest fiacial leverage i seekig to achieve its target returs, ad its floatig rate busiess model provides protectio from higher iterest rates. I additio, Starwood Property Trust s positio as a leadig commercial special servicer provides the compay with a uique credit hedge agaist its CMBS ad loa ivestmets. 10 STARWOOD PROPERTY TRUST STARWOOD PROPERTY TRUST 11

7 TEAM Starwood Property Trust is led by seasoed professioals who have successfully avigated all stages of the credit cycle. With a average of 24 years of idustry experiece, the top executives at the firm possess comprehesive expertise i commercial real estate ivestmet ledig, servicig ad asset maagemet. The Starwood Property Trust team collectively represets exceptioal real estate fiace talet ad, at all levels of the orgaizatio, the compay cotiues to seek out eergetic, self-motivated idividuals with fresh ideas ad the ability to help implemet iovative solutios that ultimately beefit ivestors. RENDERING COURTESY OF WORDSEARCH 181 FREMONT STREET SAN FRANCISCO, CALIFORNIA 12 STARWOOD PROPERTY TRUST STARWOOD PROPERTY TRUST 13

8 MISSION Upo its IPO i 2009, Starwood Property Trust sought to fill the void created by traditioal commercial real estate leders that had sigificatly scaled back their busiess. The goal was to build a diversified commercial real estate fiace busiess that could outlast the ievitable cycles i the market. I the years sice, the compay has delivered o its madate by ivestig i high-quality assets i prime locatios with experieced parters, ad reliably earig ad payig its divided while ot takig a sigle dollar of loa loss o the more tha $23 billio i capital deployed across its ledig busiess to date. This scale ad diversificatio is expected to beefit the compay ow more tha ever, ad the team stads ready to take advatage of the may opportuities that are expected to emerge from the icreased complexity ad volatility of the market. Simply put: Starwood Property Trust was built to perform i ucertai markets. We ivite you to parter with us as we embark upo the ext stage of our jourey. PARAÍSO BAYVIEWS, MIAMI, FLORIDA RENDERING COURTESY OF RELATED GROUP 14 STARWOOD PROPERTY TRUST STARWOOD PROPERTY TRUST 15

9 Greewich, CT 591 West Putam Aveue Greewich, CT Phoe: Lodo Oe Eagle Place, 2d Floor St. James s Lodo, SW1Y 6AF Uited Kigdom Phoe: Los Ageles Sa Vicete Boulevard, Suite 920 Los Ageles, CA Phoe: Miami 1601 Washigto Aveue, Suite 800 Miami Beach, FL Phoe: Phoe: (LNR Parters) New York 1140 Aveue of the Americas, 5th Floor New York, NY Phoe: Sa Fracisco 100 Pie Street, Suite 3000 Sa Fracisco, CA Phoe: For ivestor relatios iquiries, please cotact: Zach Taebaum Director, Ivestor Relatios ztaebaum@starwood.com 420 KENT AVENUE, BROOKLYN, NEW YORK BLOOMIMAGES COURTESY OF ODA 16 STARWOOD PROPERTY TRUST