Q2 2024 Starwood Property Trust Inc Earnings Call Transcript
Key Points
- Starwood Property Trust Inc (STWD) reported distributable earnings of $158 million or $0.48 per share for the quarter.
- The company committed to $925 million of new investments, with 62% in businesses other than commercial lending.
- The residential lending segment saw a net positive mark-to-market of $34 million for GAAP purposes.
- The infrastructure lending segment contributed $24 million of distributable earnings, with new loan commitments of $237 million.
- The company's liquidity position is strong with $1.2 billion in current liquidity and significant credit capacity across business lines.
- The weighted average risk rating of the $14.7 billion loan book increased to 3.0 from 2.9 last quarter.
- Two loans were placed on nonaccrual status, including a $46 million multifamily loan in Phoenix and a $57 million multifamily loan in Fort Worth.
- The company foreclosed on two previously 5-rated bonds, resulting in a specific CECL reserve of $9.8 million for one asset.
- The CECL reserve increased by $33 million to a balance of $380 million, with 70% related to office loans.
- The office loan portfolio, which makes up 10% of assets, continues to face stress due to low net effective rents and high re-tenanting costs.
Greetings, and welcome to the Starwood Property Trust Second Quarter 2024 Earnings Call. (Operator Instructions) Please note, this conference is being recorded.
At this time, I'd like to hand the conference call over to Zach Tanenbaum, Head of Investor Relations. Zach, you may begin.
Thank you, operator. Good morning, and welcome to Starwood Property Trust's Earnings Call. This morning, the company released its financial results for the quarter ended June 30, 2024, filed its Form 10-Q with the Securities and Exchange Commission and posted its earnings supplement to its website. These documents are available on the Investor Relations section of the company's website at www.starwoodpropertytrust.com.
Before the call begins, I would like to remind everyone that certain statements made in the course of this call are not based on historical information and may constitute forward-looking statements. These
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