STARWOOD PROPERTY TRUST, INC.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
STWD$12.05-6.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001628280-25-024047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001465128-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 254 previous paragraphs and 273 current paragraphs.
128 unchanged; 87 reworded; 52 added; 34 removed; 5 previous and 6 current paragraphs rearranged.
Tables are not compared: 30 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (52)
Current report
Developments During the Second Quarter of 2025
Current report
◦$412.0 million first mortgage loan secured by a multifamily portfolio located in Texas, which the Company fully funded.
Current report
◦$350.0 million first mortgage and mezzanine loan secured by a 272-unit high-rise luxury condominium located in New York, of which the Company sold the $280.0 million first mortgage and retained the $70.0 million mezzanine loan. The Company funded $58.3 million of the mezzanine loan. Refer to Note 12 to the Condensed Consolidated Financial Statements and below for further discussion.
Current report
◦$287.7 million first mortgage loan for the construction of a fully leased data center located in Virginia, of which the Company funded $37.3 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Current report
◦€189.7 million ($214.3 million) first mortgage loan secured by a logistics portfolio located in Czech Republic and Slovakia, of which the Company funded $187.0 million.
Current report
◦$212.8 million first mortgage loan for the construction of a fully leased data center located in Virginia, of which the Company funded $95.2 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Current report
◦$125.0 million first mortgage and mezzanine loan secured by the construction of a mixed use and entertainment venue located in Tennessee, which the Company has not yet funded.
Current report
•Sold an equity interest originally obtained in connection with a 2013 loan origination for gross proceeds of $70.0 million and recognized a gain of $51.4 million.
Current report
•Sold commercial real estate in Texas that was previously acquired through equity control in May 2022 for gross proceeds of $60.0 million and recognized a net gain of $4.1 million.
Current report
•Redeemed at par the third party financing for our STWD 2019-FL1 CLO for $220.1 million.
Current report
•Amended several commercial credit facilities resulting in an aggregate net upsize of $1.2 billion and extended the weighted average maturity on amended facilities by 1.7 years to 4.3 years.
Current report
•Committed $698.9 million for new infrastructure loans, of which the Company funded $641.6 million, and also funded $3.9 million of pre-existing infrastructure loan commitments.
Current report
•Refinanced a pool of our infrastructure loans held-for-investment in April 2025 through a CLO, Starwood 2025-SIF5. The CLO has a contractual maturity of April 2037 and a weighted average cost of financing of SOFR + 1.94%, inclusive of the amortization of deferred issuance costs. On the closing date, the CLO issued $500.0 million of notes, of which $413.5 million of notes were purchased by third party investors and $86.5 million of subordinated notes were retained by us. In connection therewith, we redeemed at par the third party financing for our STWD 2021-SIF2 CLO for $410.0 million and contributed certain loans previously held in that CLO to Starwood 2025-SIF5.
Current report
•Originated commercial conduit loans of $536.9 million.
Current report
•Acquired CMBS for a purchase price of $57.0 million, of which $1.4 million related to non-controlling interests, and sold CMBS for gross proceeds of $4.2 million.
Current report
•Issued $500.0 million of 6.50% Senior Notes due 2030 in April 2025 and swapped the notes to a floating rate of SOFR + 2.61%.
Current report
•Entered into a new ATM Agreement with a syndicate of financial institutions to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. During the quarter, we issued 1.6 million shares under the ATM Agreement for gross proceeds of $31.6 million at an average share price of $20.22.
Current report
Investing and Servicing
Current report
For the three months ended June 30, 2025, revenues of our Commercial and Residential Lending Segment increased $18.4 million to $343.9 million, compared to $325.5 million for the three months ended March 31, 2025. This was primarily due to an increase in interest income from loans of $23.3 million, partially offset by decreases of $2.6 million in interest income from investment securities, reflecting lower balances, and $1.7 million in rental income from foreclosed properties. The increase in interest income from loans was comprised of (i) a $24.5 million increase from commercial loans primarily reflecting higher average balances and (ii) a $1.2 million decrease from residential loans primarily reflecting lower average balances.
Current report
For the three months ended June 30, 2025, the weighted average unlevered yields on our commercial and residential loans were relatively consistent with the three months ended March 31, 2025.
Current report
For the three months ended June 30, 2025, costs and expenses of our Infrastructure Lending Segment increased $5.4 million to $48.3 million, compared to $42.9 million for the three months ended March 31, 2025. This increase was primarily due to a $4.0 million increase in interest expense, primarily reflecting higher average borrowings outstanding, and a $1.2 million increase in the credit loss provision.
Current report
For the three months ended June 30, 2025, costs and expenses of our Property Segment decreased $0.1 million to $22.1 million, compared to $22.2 million for the three months ended March 31, 2025.
Current report
For the three months ended June 30, 2025, costs and expenses of our Investing and Servicing Segment increased $2.0 million to $37.7 million, compared to $35.7 million for the three months ended March 31, 2025. The increase is primarily due to a $1.9 million increase in general and administrative expenses, principally related to increased loan securitization activity.
Current report
Corporate Other Income
Current report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current report
For the six months ended June 30, 2025, costs and expenses of our Infrastructure Lending Segment increased $3.6 million to $91.2 million, compared to $87.6 million for the six months ended June 30, 2024. The increase was primarily due to increases of $4.0 million in general, administrative and other expenses and $2.2 million in credit loss provision, partially offset by a $2.6 million decrease in interest expense reflecting lower average index rates, partially offset by higher average borrowings outstanding.
Current report
For the six months ended June 30, 2025, revenues of our Property Segment decreased $3.9 million to $33.0 million, compared to $36.9 million for the six months ended June 30, 2024, primarily due to the sale of our Master Lease Portfolio on February 29, 2024.
Current report
For the six months ended June 30, 2025 and 2024, costs and expenses of our Investing and Servicing Segment remained relatively unchanged at $73.4 million.
Current report
Income Tax Provision
Current report
The following table summarizes our quarterly Distributable Earnings per weighted average diluted share for the six months ended June 30, 2025 and 2024:
Current report
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended June 30, 2025, by business segment (amounts in thousands, except per share data). Refer to the footnotes following the Distributable Earnings reconciliation table for the six months ended June 30, 2024.
Current report
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended March 31, 2025, by business segment (amounts in thousands, except per share data). Refer to the footnotes following the Distributable Earnings reconciliation table for the six months ended June 30, 2024.
Current report
The Commercial and Residential Lending Segment’s Distributable Earnings decreased by $4.6 million, from $178.8 million during the first quarter of 2025 to $174.2 million in the second quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $349.8 million, costs and expenses were $198.4 million, other income was $22.8 million and there was no income tax provision or benefit.
Current report
Revenues, consisting principally of interest income on loans, increased by $18.0 million in the second quarter of 2025, primarily due to an increase in interest income from loans of $22.7 million, partially offset by decreases of $2.4 million in interest income from investment securities, reflecting lower balances, and $1.7 million in rental income from foreclosed properties. The increase in interest income from loans was comprised of (i) a $23.9 million increase from commercial loans primarily reflecting higher average balances and (ii) a $1.2 million decrease from residential loans primarily reflecting lower average balances.
Current report
Costs and expenses increased by $15.3 million in the second quarter of 2025, primarily due to a $14.9 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio, primarily due to higher average borrowings outstanding.
Current report
Other income decreased by $7.3 million in the second quarter of 2025, primarily due to (i) a $16.9 million net loss on sale of investments and other assets and (ii) an $11.5 million decrease in realized gains on derivatives, partially offset by a $20.8 million gain on extinguishment of debt primarily related to the sale of a foreclosed property.
Current report
The Infrastructure Lending Segment’s Distributable Earnings increased by $0.8 million, from $20.0 million during the first quarter of 2025 to $20.8 million in the second quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $67.2 million, costs and expenses were $45.6 million and other loss was $0.8 million.
Current report
Costs and expenses increased by $4.1 million in the second quarter of 2025, primarily due to a $4.0 million increase in interest expense, reflecting higher average borrowings outstanding.
Current report
Other loss increased by $0.7 million in the second quarter of 2025, primarily due to a loss on extinguishment of debt.
Current report
Costs and expenses increased by $2.1 million in the second quarter of 2025, primarily due to a $1.9 million increase in general and administrative expenses, principally related to increased loan securitization activity.
Showing the first 40 of 52 passages. Open the source sections for the rest.
Removed paragraphs (34)
Previous report
For the three months ended March 31, 2025, revenues of our Commercial and Residential Lending Segment decreased $31.4 million to $325.5 million, compared to $356.9 million for the three months ended December 31, 2024. This was primarily due to a decrease in interest income from loans of $31.1 million comprised of (i) a $31.0 million decrease from commercial loans, reflecting lower prepayment related income, lower average index rates and spreads and additional loans placed on nonaccrual, and (ii) a $0.1 million decrease from residential loans reflecting lower average balances.
Previous report
For the three months ended March 31, 2025, the weighted average unlevered yields on our commercial loans decreased primarily due to lower prepayment related income and lower average index rates and spreads. The weighted average unlevered yields on our residential loans increased slightly primarily due to fluctuations in their fair value.
Previous report
Other Income (Loss)
Previous report
For the three months ended March 31, 2025, costs and expenses of our Infrastructure Lending Segment increased $0.1 million to $42.9 million, compared to $42.8 million for the three months ended December 31, 2024.
Previous report
Other (Loss) Income
Previous report
For the three months ended March 31, 2025, costs and expenses of our Property Segment decreased $0.2 million to $22.2 million, compared to $22.4 million for the three months ended December 31, 2024.
Previous report
For the three months ended March 31, 2025, costs and expenses of our Investing and Servicing Segment decreased $7.2 million to $35.7 million, compared to $42.9 million for the three months ended December 31, 2024. The decrease reflects decreases in general and administrative expenses of $5.6 million, primarily related to decreased loan origination and securitization activity, and interest expense of $1.8 million, primarily related to financing of conduit loans.
Previous report
Other (Loss) Income
Previous report
Income Tax (Provision) Benefit
Previous report
For the three months ended March 31, 2025, costs and expenses of our Infrastructure Lending Segment decreased $2.9 million to $42.9 million, compared to $45.8 million for the three months ended March 31, 2024. The decrease was primarily due to a $3.8 million decrease in interest expense reflecting lower average index rates, partially offset by higher average borrowings outstanding.
Previous report
Other Loss
Previous report
For the three months ended March 31, 2025, revenues of our Property Segment decreased $4.4 million to $16.5 million, compared to $20.9 million for the three months ended March 31, 2024, primarily due to the sale of our Master Lease Portfolio on February 29, 2024.
Previous report
For the three months ended March 31, 2025, costs and expenses of our Investing and Servicing Segment decreased $0.4 million to $35.7 million, compared to $36.1 million for the three months ended March 31, 2024. The decrease primarily reflects lower general and administrative expenses.
Previous report
Other Loss
Previous report
Corporate Other Income (Loss)
Previous report
The Commercial and Residential Lending Segment’s Distributable Earnings decreased by $13.9 million, from $192.7 million during the fourth quarter of 2024 to $178.8 million in the first quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $331.9 million, costs and expenses were $183.1 million, other income was $30.0 million and there was no income tax provision or benefit.
Previous report
Revenues, consisting principally of interest income on loans, decreased by $29.6 million in the first quarter of 2025, primarily due to decreases in interest income from loans of $29.2 million comprised of (i) a $29.1 million decrease from commercial loans, reflecting lower prepayment related income, lower average index rates and spreads and additional loans placed on nonaccrual, and (ii) a $0.1 million decrease from residential loans reflecting lower average balances.
Previous report
Costs and expenses decreased by $13.4 million in the first quarter of 2025, primarily due to (i) a $17.4 million decrease in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio, primarily reflecting lower average index rates and spreads, partially offset by (ii) a $3.1 million increase in general and administrative expenses.
Previous report
Other income increased by $2.3 million in the first quarter of 2025.
Previous report
The Infrastructure Lending Segment’s Distributable Earnings decreased by $1.8 million, from $21.8 million during the fourth quarter of 2024 to $20.0 million in the first quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $61.6 million, costs and expenses were $41.5 million and other loss was $0.1 million.
Previous report
Other loss decreased by $0.4 million in the first quarter of 2025.
Previous report
Costs and expenses decreased by $1.1 million in the first quarter of 2025, primarily due to a $1.5 million decrease in interest expense on variable rate borrowings secured by our Medical Office Portfolio, partially offset by a $0.6 million increase in general and administrative expenses.
Previous report
Costs and expenses decreased by $7.0 million in the first quarter of 2025, primarily due to decreases in general and administrative expenses of $5.7 million, primarily related to the decreased loan origination and securitization activity, and interest expense of $1.8 million, primarily related to the financing of conduit loans.
Previous report
Corporate loss decreased by $1.8 million, from $110.2 million during the fourth quarter of 2024 to $108.4 million in the first quarter of 2025, primarily due to a $4.5 million decrease in realized losses on our fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes, partially offset by a $2.3 million increase in interest expense primarily reflecting higher average balances of unsecured senior notes outstanding.
Previous report
The Commercial and Residential Lending Segment’s Distributable Earnings decreased by $26.4 million, from $205.2 million during the first quarter of 2024 to $178.8 million in the first quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $331.9 million, costs and expenses were $183.1 million, other income was $30.0 million and there was no income tax provision or benefit.
Previous report
The Infrastructure Lending Segment’s Distributable Earnings decreased by $0.4 million, from $20.4 million during the first quarter of 2024 to $20.0 million in the first quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $61.6 million, costs and expenses were $41.5 million and other loss was $0.1 million.
Previous report
Costs and expenses decreased by $4.5 million in the first quarter of 2025, primarily due to a $3.8 million decrease in interest expense, reflecting lower average index rates, partially offset by higher average borrowings outstanding.
Previous report
Other loss decreased by $0.4 million in the first quarter of 2025.
Previous report
The Property Segment’s Distributable Earnings decreased by $42.9 million, from $59.2 million during the first quarter of 2024 to $16.3 million in the first quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $17.0 million, costs and expenses were $16.3 million, other income was $19.4 million and the deduction of income attributable to non-controlling interests in the Woodstar Fund was $3.8 million.
Previous report
Revenues decreased by $4.3 million in the first quarter of 2025, primarily due to the sale of our Master Lease Portfolio on February 29, 2024.
Previous report
Costs and expenses increased by $0.2 million in the first quarter of 2025.
Previous report
Other income increased by $30.6 million in the first quarter of 2025, primarily due to a $28.3 million decrease in recognized credit losses on CMBS.
Previous report
Income attributable to non-controlling interests increased $1.9 million, primarily due to higher distributable earnings of a consolidated CMBS joint venture.
Previous report
(a)Shortfall primarily relates to (i) $275.5 million of repayments under a Residential Loans repurchase facility which carries a one-year term that we extend every three months with lender’s consent and (ii) $232.2 million of repayments under securities facilities which carry a rolling 12-month term that we have historically extended, and intend to continue to extend with lender’s consent.
Reworded paragraphs (87)
Previous wording
Recently announced tariffs have significantly increased economic uncertainty and global market volatility, which increases the possibility of an economic slowdown as well as inflationary pressures in the U.S. Although the Federal Reserve began to lower interest rates in September 2024, it is not clear what actions it may take given the uncertain economic effects of the tariffs. Elevated interest rates and tariffs over time may adversely affect our existing borrowers and lead to nonperformance as higher costs may dampen consumer spending and slow income growth, which may negatively impact the collateral underlying certain of our loans. Additionally, elevated interest rates could adversely affect the value of commercial real estate we own and that collateralizes our loans. It remains difficult to predict the full impact of recent events and any future changes in tariffs, interest rates, inflation and overall economic activity.
Current wording
Recently imposed tariffs have significantly increased economic uncertainty and global market volatility, which increases the possibility of an economic slowdown as well as inflationary pressures in the U.S. Although the Federal Reserve began to lower interest rates in September 2024, it has held rates steady so far this year and it is not clear what actions it may take given the uncertain economic effects of the tariffs. Elevated interest rates and tariffs over time may adversely affect our existing borrowers and lead to nonperformance as higher costs may dampen consumer spending and slow income growth, which may negatively impact the collateral underlying certain of our loans. Additionally, elevated interest rates could adversely affect the value of commercial real estate we own and that collateralizes our loans. It remains difficult to predict the full impact of recent events and any future changes in tariffs, interest rates, inflation and overall economic activity.
Previous wording
•Acquired $676.5 million of infrastructure loans and funded $4.6 million of pre-existing infrastructure loan commitments.
Current wording
•Committed $676.5 million for new infrastructure loans, of which the Company funded $600.5 million, and also funded $4.6 million of pre-existing infrastructure loan commitments.
Previous wording
•Obtained one new special servicing assignment for a CMBS trust with a total unpaid principal balance of $908.4 million, while $3.5 billion matured, bringing our total named special servicing portfolio to $107.0 billion.
Current wording
•Obtained one new special servicing assignment for a CMBS trust with a total unpaid principal balance of $908.4 million, while $3.5 billion matured, bringing our total named special servicing portfolio to $107.0 billion as of March 31, 2025.
Previous wording
•In January 2025, we amended our January 2030 term loan facility, increasing the facility size to $900.0 million, reducing the spread by 73 bps and extending the maturity date from July 2026 to January 2030. We also amended our existing revolving credit facility, increasing the facility by $50.0 million, to $200.0 million, and extending the maturity date from April 2026 to January 2030.
Current wording
•Amended our January 2030 term loan facility in January 2025, increasing the facility size to $900.0 million, reducing the spread by 73 bps and extending the maturity date from July 2026 to January 2030. We also amended our existing revolving credit facility, increasing the facility by $50.0 million, to $200.0 million, and extending the maturity date from April 2026 to January 2030.
Previous wording
Refer to Note 24 to the Condensed Consolidated Financial Statements for disclosure regarding significant transactions that occurred subsequent to March 31, 2025.
Current wording
Refer to Note 24 to the Consolidated Financial Statements for disclosure regarding significant transactions that occurred subsequent to June 30, 2025.
Previous wording
The following table compares our summarized results of operations for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024 by business segment (amounts in thousands):
Current wording
The following table compares our summarized results of operations for the three months ended June 30, 2025 and March 31, 2025 and for the six months ended June 30, 2025 and 2024 by business segment (amounts in thousands):
Previous wording
For the three months ended March 31, 2025, costs and expenses of our Commercial and Residential Lending Segment decreased $89.8 million to $163.7 million, compared to $253.5 million for the three months ended December 31, 2024. This decrease was primarily due to decreases of $77.0 million in the credit loss provision and $17.4 million in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio, partially offset by a $3.4 million increase in general and administrative expenses. The credit loss provision decreased to a $25.8 million reversal in the first quarter of 2025 compared to a $51.2 million provision in the fourth quarter of 2024 primarily due to improvement in the macroeconomic outlook. The decrease in interest expense was primarily due to lower average index rates and spreads.
Current wording
For the three months ended June 30, 2025, costs and expenses of our Commercial and Residential Lending Segment increased $43.6 million to $207.3 million, compared to $163.7 million for the three months ended March 31, 2025. This increase was primarily due to increases of $29.4 million in the credit loss provision and $14.9 million in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio. The credit loss provision increased to a $3.6 million provision in the second quarter of 2025 compared to a $25.8 million reversal in the first quarter of 2025. The provision in the second quarter of 2025 reflects a $17.2 million specific allowance on a foreclosed loan, partially offset by a $13.6 million general allowance reversal due to improvement in the macroeconomic outlook during the quarter. The reversal in the first quarter of 2025 was primarily due to improvement in the macroeconomic outlook during that quarter. The increase in interest expense was primarily due to higher average borrowings outstanding.
Previous wording
For the three months ended March 31, 2025, net interest income of our Commercial and Residential Lending Segment decreased $41.1 million to $148.6 million, compared to $189.7 million for the three months ended March 31, 2024. This decrease reflects the decrease in interest income, partially offset by the decrease in interest expense on our secured financing facilities, both as discussed in the sections above.
Current wording
For the three months ended June 30, 2025, net interest income of our Commercial and Residential Lending Segment increased $5.8 million to $154.4 million, compared to $148.6 million for the three months ended March 31, 2025. This increase reflects the net increase in interest income, partially offset by the increase in interest expense on our secured financing facilities, both as discussed in the sections above.
Previous wording
During the three months ended March 31, 2025 and December 31, 2024, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 6.6% and 6.9%, respectively. The decrease in borrowing rates primarily reflects lower average index rates. Interest rate hedges had the effect of reducing these weighted average borrowing costs to 5.9% and 6.1% during the three months ended March 31, 2025 and December 31, 2024, respectively.
Current wording
During the three months ended June 30, 2025 and March 31, 2025, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 6.5% and 6.6%, respectively. Interest rate hedges had the effect of reducing these weighted average borrowing costs to 6.0% and 5.9% during the three months ended June 30, 2025 and March 31, 2025, respectively.
Previous wording
For the three months ended March 31, 2025, other income of our Commercial and Residential Lending Segment increased $28.5 million to income of $19.6 million compared to a loss of $8.9 million for the three months ended December 31, 2024. This increase was primarily due to (i) a $141.8 million favorable change in fair value of residential loans, (ii) a $132.4 million favorable change in foreign currency gain (loss) and (iii) a $3.0 million favorable change in fair value of primarily RMBS investment securities, partially offset by (iv) a $250.5 million unfavorable change in gain (loss) on derivatives. The unfavorable change in gain (loss) on derivatives in the first quarter of 2025 reflects (i) a $136.2 million unfavorable change in gain (loss) on foreign currency hedges and (ii) a $114.3 million unfavorable change in gain (loss) on interest rate swaps principally related to residential loans, which is more than offset by the favorable change in fair value of those loans. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The favorable change in foreign currency gain (loss) and the unfavorable change in gain (loss) on foreign currency hedges reflect the weakening of the U.S. dollar against the pound sterling (“GBP”), Euro (“EUR”) and Australian dollar (“AUD”) in the first quarter of 2025, compared to a strengthening of the U.S. dollar against each of those currencies in the fourth quarter of 2024.
Current wording
For the three months ended June 30, 2025, other income of our Commercial and Residential Lending Segment increased $7.0 million to $26.6 million compared to $19.6 million for the three months ended March 31, 2025. This increase was primarily due to (i) a $48.6 million increase in foreign currency gain, (ii) a $31.7 million net gain on sale of investments and other assets and (iii) a $20.8 million gain on extinguishment of debt primarily related to the sale of a foreclosed property, partially offset by (iv) a $50.3 million increased loss on derivatives, (v) a $34.1 million lesser increase in fair value of residential loans and (vi) a $9.5 million unfavorable change in fair value of primarily RMBS investment securities. The increased loss on derivatives in the second quarter of 2025 reflects (i) a $63.0 million greater loss on foreign currency hedges partially offset by (ii) a $12.7 million lower loss on interest rate swaps principally related to residential loans. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The increase in foreign currency gain and the greater loss on foreign currency hedges reflect the weakening of the U.S. dollar against the pound sterling (“GBP”), Euro (“EUR”) and Australian dollar (“AUD”) in the second quarter of 2025, compared to a lesser weakening of the U.S. dollar against each of those currencies in the first quarter of 2025.
Previous wording
For the three months ended March 31, 2025, revenues of our Infrastructure Lending Segment decreased $1.8 million to $61.6 million, compared to $63.4 million for the three months ended December 31, 2024. This was primarily due to a $1.1 million decrease in interest income on cash balances and a $0.7 million decrease in interest income from loans reflecting lower average index rates, the effect of which was partially offset by higher average loan balances.
Current wording
For the three months ended June 30, 2025, revenues of our Infrastructure Lending Segment increased $5.6 million to $67.2 million, compared to $61.6 million for the three months ended March 31, 2025. This was primarily due to a $5.5 million increase in interest income from loans reflecting higher average loan balances, the effect of which was partially offset by lower average spreads.
Previous wording
For the three months ended March 31, 2025, net interest income of our Infrastructure Lending Segment increased $0.1 million to $25.5 million, compared to $25.3 million for the three months ended December 31, 2024. The increase reflects the decrease in interest income from loans as discussed above, which was more than offset by a decrease in interest expense on the secured financing facilities used to fund this segment’s investment portfolio.
Current wording
For the three months ended June 30, 2025, net interest income of our Infrastructure Lending Segment increased $1.5 million to $27.0 million, compared to $25.5 million for the three months ended March 31, 2025. The increase reflects the increase in interest income from loans, partially offset by the increase in interest expense on the secured financing facilities used to fund this segment’s investment portfolio, both as discussed above.
Previous wording
During the three months ended March 31, 2025 and December 31, 2024, the weighted average unlevered yield on the Infrastructure Lending Segment’s loans and investment securities, excluding those for which interest income is not recognized, was 9.3% and 9.6%, respectively, primarily reflecting lower average index rates in the first quarter of 2025.
Current wording
During the three months ended June 30, 2025 and March 31, 2025, the weighted average unlevered yield on the Infrastructure Lending Segment’s loans and investment securities, excluding those for which interest income is not recognized, was 9.1% and 9.3%, respectively, primarily reflecting lower average spreads in the second quarter of 2025.
Previous wording
During the three months ended March 31, 2025 and December 31, 2024, the Infrastructure Lending Segment’s weighted average secured borrowing rate, inclusive of the amortization of deferred financing fees, was 7.0% and 7.3%, respectively, reflecting lower average index rates in the first quarter of 2025.
Current wording
During the three months ended June 30, 2025 and March 31, 2025, the Infrastructure Lending Segment’s weighted average secured borrowing rate, inclusive of the amortization of deferred financing fees, was 6.9% and 7.0%, respectively.
Previous wording
For the three months ended March 31, 2025, other income of our Infrastructure Lending Segment decreased $1.6 million to a loss of $0.4 million, compared to income of $1.2 million for the three months ended December 31, 2024, primarily due to an unfavorable change in earnings (loss) from unconsolidated entities.
Current wording
For the three months ended June 30, 2025, other income (loss) of our Infrastructure Lending Segment improved $1.4 million to income of $1.0 million, compared to a loss of $0.4 million for the three months ended March 31, 2025, primarily due to a favorable change in earnings (loss) from unconsolidated entities.
Previous wording
For the three months ended March 31, 2025, other income of our Property Segment decreased $89.3 million to $2.9 million compared to $92.2 million for the three months ended December 31, 2024. The decrease is primarily due to an $87.9 million unfavorable change in income (loss) attributable to investments of the Woodstar Fund, primarily related to unrealized changes in fair value.
Current wording
For the three months ended June 30, 2025, other income of our Property Segment increased $1.4 million to $4.3 million compared to $2.9 million for the three months ended March 31, 2025. The increase is primarily due to a $1.2 million increase in income attributable to investments of the Woodstar Fund.
Previous wording
For the three months ended March 31, 2025, revenues of our Investing and Servicing Segment increased $0.1 million to $58.9 million, compared to $58.8 million for the three months ended December 31, 2024. The increase in revenues is primarily due to a $2.5 million net increase in interest income from CMBS investments and conduit loans, partially offset by a $2.2 million decrease in servicing fees.
Current wording
For the three months ended June 30, 2025, revenues of our Investing and Servicing Segment decreased $5.1 million to $53.8 million, compared to $58.9 million for the three months ended March 31, 2025. The decrease in revenues is primarily due to (i) a $3.9 million net decrease in interest income from CMBS investments and conduit loans, primarily reflecting lower CMBS interest recoveries, and (ii) a $3.2 million decrease in servicing fees principally related to default interest.
Previous wording
For the three months ended March 31, 2025, other income of our Investing and Servicing Segment decreased $24.4 million to a loss of $7.7 million, compared to income of $16.7 million for the three months ended December 31, 2024. The decrease is primarily due to (i) a $9.0 million decreased gain in fair value of conduit loans, (ii) an $8.3 million greater decrease in fair value of CMBS investments, (iii) a $4.4 million unfavorable change in gain (loss) on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments and (iv) a $2.5 million unfavorable change in fair value of servicing rights.
Current wording
For the three months ended June 30, 2025, other income (loss) of our Investing and Servicing Segment improved $43.8 million to income of $36.1 million, compared to a loss of $7.7 million for the three months ended March 31, 2025. The increase is primarily due to (i) a $26.4 million favorable change in fair value of CMBS investments, (ii) a $5.6 million increased gain in fair value of conduit loans, (iii) a $5.4 million increase in earnings from unconsolidated entities and (iv) a $3.7 million favorable change in fair value of servicing rights.
Previous wording
For the three months ended March 31, 2025, corporate expenses increased $2.3 million to $120.0 million, compared to $117.7 million for the three months ended December 31, 2024. This increase is primarily due to a $2.3 million increase in interest expense, primarily reflecting higher average balances of unsecured senior notes outstanding.
Current wording
For the three months ended June 30, 2025, corporate expenses decreased $4.8 million to $115.2 million, compared to $120.0 million for the three months ended March 31, 2025. This decrease is primarily due to a $9.9 million decrease in management fees, primarily reflecting lower incentive fees, partially offset by a $5.3 million increase in interest expense, primarily reflecting higher average balances of unsecured senior notes outstanding.
Previous wording
For the three months ended March 31, 2025, corporate other income (loss) improved $76.8 million to income of $27.3 million, compared to a loss of $49.5 million for the three months ended December 31, 2024. This was primarily due to a favorable change in gain (loss) on our fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.
Current wording
For the three months ended June 30, 2025, corporate other income decreased $11.1 million to $16.2 million, compared to $27.3 million for the three months ended March 31, 2025. This was due to a lower gain on our fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.
Previous wording
Our consolidated income taxes principally relate to the taxable nature of our loan servicing and loan securitization businesses which are housed in TRSs. For the three months ended March 31, 2025, our income tax provision increased $2.6 million to $3.8 million, compared to $1.2 million for the three months ended March 31, 2024 due to higher taxable income of our TRSs in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Our consolidated income taxes principally relate to the taxable nature of our loan servicing and loan securitization businesses which are housed in taxable REIT subsidiaries (“TRSs”). For the three months ended June 30, 2025, our income tax provision decreased $3.1 million to $0.7 million compared to $3.8 million for the three months ended March 31, 2025. This decrease is due to lower taxable income of our TRSs in the second quarter of 2025 compared to the first quarter of 2025.
Previous wording
During the three months ended March 31, 2025, net income attributable to non-controlling interests decreased $15.4 million to $3.8 million, compared to $19.2 million during the three months ended December 31, 2024. The decrease was primarily due to non-controlling interests in unfavorable changes in fair value of the Woodstar Fund investments, partially offset by decreased unrealized losses of a consolidated CMBS joint venture in the first quarter of 2025.
Current wording
During the three months ended June 30, 2025, net income attributable to non-controlling interests increased $1.1 million to $4.9 million, compared to $3.8 million during the three months ended March 31, 2025. The increase was primarily due to non-controlling interests in decreased unrealized losses of a consolidated CMBS joint venture in the second quarter of 2025.
Previous wording
For the three months ended March 31, 2025, revenues of our Commercial and Residential Lending Segment decreased $105.1 million to $325.5 million, compared to $430.6 million for the three months ended March 31, 2024. This decrease was primarily due to decreases in interest income from loans of $104.2 million and investment securities of $7.5 million, partially offset by a $4.6 million increase in rental income from foreclosed properties. The decrease in interest income from loans reflects (i) a $102.2 million decrease from commercial loans, reflecting lower average balances, lower prepayment related income, lower average index rates and spreads, and additional loans placed on nonaccrual, and (ii) a $2.0 million decrease from residential loans principally due to lower average balances. The decrease in interest income from investment securities was primarily due to lower average commercial investment balances due to repayments.
Current wording
For the six months ended June 30, 2025, revenues of our Commercial and Residential Lending Segment decreased $154.7 million to $669.4 million, compared to $824.1 million for the six months ended June 30, 2024. This decrease was primarily due to decreases in interest income from loans of $149.3 million and investment securities of $15.6 million, partially offset by a $7.2 million increase in rental income from foreclosed properties. The decrease in interest income from loans reflects (i) a $144.7 million decrease from commercial loans, reflecting lower average balances, additional loans placed on nonaccrual, lower average index rates and spreads and lower prepayment related income and (ii) a $4.6 million decrease from residential loans principally due to lower average balances. The decrease in interest income from investment securities was primarily due to lower average commercial investment balances due to repayments.
Previous wording
For the three months ended March 31, 2025, costs and expenses of our Commercial and Residential Lending Segment decreased $129.1 million to $163.7 million, compared to $292.8 million for the three months ended March 31, 2024. This decrease was primarily due to decreases of (i) $70.6 million in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio and (ii) $60.7 million in credit loss provision, partially offset by (iii) a $3.5 million increase in costs of rental operations of foreclosed properties. The decrease in interest expense was primarily due to lower average borrowings outstanding due to paydowns from net loan repayments and excess cash balances and the effect of lower average index rates and spreads. The credit loss provision decreased to a $25.8 million reversal in the first quarter of 2025 compared to a $34.9 million provision in the first quarter of 2024 primarily due to improvement in the macroeconomic outlook.
Current wording
For the six months ended June 30, 2025, costs and expenses of our Commercial and Residential Lending Segment decreased $204.9 million to $371.0 million, compared to $575.9 million for the six months ended June 30, 2024. This decrease was primarily due to decreases of (i) $106.6 million in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio and (ii) $100.1 million in credit loss provision. The decrease in interest expense was primarily due to lower average borrowings outstanding due to paydowns from net loan repayments and excess cash balances and the effect of lower average index rates. The credit loss provision decreased to a $22.1 million reversal in the first half of 2025 compared to a $78.0 million provision in the first half of 2024 primarily due to improvement in the macroeconomic outlook.
Previous wording
For the three months ended March 31, 2025, net interest income of our Commercial and Residential Lending Segment decreased $16.4 million to $148.6 million, compared to $165.1 million for the three months ended December 31, 2024. This decrease reflects the decrease in interest income, partially offset by the decrease in interest expense on our secured financing facilities, both as discussed in the sections above.
Current wording
For the six months ended June 30, 2025, net interest income of our Commercial and Residential Lending Segment decreased $58.2 million to $303.1 million, compared to $361.3 million for the six months ended June 30, 2024. This decrease reflects the decrease in interest income, partially offset by the decrease in interest expense on our secured financing facilities, both as discussed in the sections above.
Previous wording
During the three months ended March 31, 2025 and 2024, the weighted average unlevered yields on the Commercial and Residential Lending Segment’s loans and investment securities, excluding retained RMBS and loans for which interest income is not recognized, were as follows:
Current wording
During the six months ended June 30, 2025 and 2024, the weighted average unlevered yields on the Commercial and Residential Lending Segment’s loans and investment securities, excluding retained RMBS and loans for which interest income is not recognized, were as follows:
Previous wording
The weighted average unlevered yield on our commercial loans decreased primarily due to lower prepayment related income and lower average index rates and spreads. The unlevered yield on our residential loans was relatively unchanged.
Current wording
The weighted average unlevered yield on our commercial loans decreased primarily due to lower average index rates and spreads and lower prepayment related income. The unlevered yield on our residential loans was relatively unchanged.
Previous wording
During the three months ended March 31, 2025 and 2024, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 6.6% and 7.6%, respectively. The decrease in borrowing rates primarily reflects lower average index rates and spreads. Interest rate hedges had the effect of adjusting these weighted average borrowing costs to 5.9% and 6.7% during the three months ended March 31, 2025 and 2024, respectively.
Current wording
During the six months ended June 30, 2025 and 2024, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 6.5% and 7.6%, respectively. The decrease in borrowing rates primarily reflects lower average index rates. Interest rate hedges had the effect of adjusting these weighted average borrowing costs to 5.9% and 6.7% during the six months ended June 30, 2025 and 2024, respectively.
Previous wording
For the three months ended March 31, 2025, other income of our Commercial and Residential Lending Segment decreased $6.8 million to $19.6 million, compared to $26.4 million for the three months ended March 31, 2024. This decrease primarily reflects (i) a $176.8 million unfavorable change in gain (loss) on derivatives and (ii) a $6.0 million decrease in earnings from unconsolidated entities primarily due to the nonrecurrence of an observable price change in an equity investment in the first quarter of 2024, partially offset by (iii) an $83.2 million favorable change in fair value of residential loans, (iv) a $76.4 million favorable change in foreign currency gain (loss) and (v) a $14.4 million favorable change in fair value of primarily RMBS investment securities. The unfavorable change in gain (loss) on derivatives during the three months ended March 31, 2025 reflects (i) a $96.4 million unfavorable change in gain (loss) on interest rate swaps principally related to residential loans and (ii) an $80.4 million unfavorable change in gain (loss) on foreign currency hedges. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The favorable change in foreign currency gain (loss) and the unfavorable change in gain (loss) on foreign currency hedges reflect the weakening of the U.S. dollar against the GBP, EUR and AUD during the first quarter of 2025, compared to a strengthening of the U.S. dollar against each of those currencies in the first quarter of 2024.
Current wording
For the six months ended June 30, 2025, other income of our Commercial and Residential Lending Segment decreased $42.8 million to $46.2 million, compared to $89.0 million for the six months ended June 30, 2024. This decrease primarily reflects (i) a $302.1 million unfavorable change in gain (loss) on derivatives and (ii) a $6.3 million decrease in earnings from unconsolidated entities primarily due to the nonrecurrence of an observable price change in an equity investment in the first half of 2024, partially offset by (iii) a $152.8 million favorable change in foreign currency gain (loss), (iv) a $44.0 million favorable change in fair value of residential loans, (v) a $31.7 million net gain on sale of investments and other assets, (vi) a $20.5 million gain on extinguishment of debt primarily related to the sale of a foreclosed property and (vii) a $12.6 million favorable change in fair value of primarily RMBS investment securities. The unfavorable change in gain (loss) on derivatives during the six months ended June 30, 2025 reflects (i) a $175.0 million unfavorable change in gain (loss) on foreign currency hedges and (ii) a $127.1 million unfavorable change in gain (loss) on interest rate swaps principally related to residential loans. The interest rate swaps are used primarily to hedge our interest rate risk on residential loans held-for-sale and to fix our interest rate payments on certain variable rate borrowings which fund fixed rate investments. The foreign currency hedges are used to fix the U.S. dollar amounts of cash flows (both interest and principal payments) we expect to receive from our foreign currency denominated loans and investments. The favorable change in foreign currency gain (loss) and the unfavorable change in gain (loss) on foreign currency hedges reflect the weakening of the U.S. dollar against the GBP, EUR and AUD during the first half of 2025, compared to a strengthening of the U.S. dollar against each of those currencies in the first half of 2024.
Previous wording
For the three months ended March 31, 2025, revenues of our Infrastructure Lending Segment decreased $5.3 million to $61.6 million, compared to $66.9 million for the three months ended March 31, 2024. This decrease was primarily due to a $5.9 million decrease in interest income from loans, partially offset by a $0.6 million increase in interest income on cash balances. The decrease in interest income from loans reflects lower average index rates and spreads, partially offset by higher prepayment related income.
Current wording
For the six months ended June 30, 2025, revenues of our Infrastructure Lending Segment decreased $3.4 million to $128.8 million, compared to $132.2 million for the six months ended June 30, 2024. This decrease was primarily due to a $4.2 million decrease in interest income from loans, partially offset by a $0.8 million increase in interest income on cash balances. The decrease in interest income from loans reflects lower average index rates and spreads, partially offset by higher average balances and prepayment related income.
Previous wording
For the three months ended March 31, 2025, net interest income of our Infrastructure Lending Segment decreased $2.1 million to $25.5 million, compared to $27.6 million for the three months ended March 31, 2024. The decrease reflects the decrease in interest income from loans, partially offset by the decrease in interest expense on the secured financing facilities, both as discussed in the sections above.
Current wording
For the six months ended June 30, 2025, net interest income of our Infrastructure Lending Segment decreased $1.6 million to $52.4 million, compared to $54.0 million for the six months ended June 30, 2024. The decrease reflects the decrease in interest income from loans, partially offset by the decrease in interest expense on the secured financing facilities, both as discussed in the sections above.
Previous wording
During the three months ended March 31, 2025 and 2024, the weighted average unlevered yields on the Infrastructure Lending Segment’s loans and investment securities, excluding those for which interest income is not recognized, were 9.3% and 10.4%, respectively, reflecting lower average index rates and spreads, partially offset by higher prepayment related income, in the first quarter of 2025.
Current wording
During the six months ended June 30, 2025 and 2024, the weighted average unlevered yields on the Infrastructure Lending Segment’s loans and investment securities, excluding those for which interest income is not recognized, were 9.3% and 10.5%, respectively, reflecting lower average index rates and spreads, partially offset by higher prepayment related income, in the first half of 2025.
Previous wording
During the three months ended March 31, 2025 and 2024, the Infrastructure Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 7.0% and 8.0%, respectively, reflecting lower average index rates in the first quarter of 2025.
Current wording
During the six months ended June 30, 2025 and 2024, the Infrastructure Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 7.0% and 8.0%, respectively, reflecting lower average index rates in the first half of 2025.
Previous wording
For the three months ended March 31, 2025 and 2024, other loss of our Infrastructure Lending Segment decreased $0.2 million to $0.4 million, compared to $0.2 million for the three months ended March 31, 2024.
Current wording
For the six months ended June 30, 2025 and 2024, other income (loss) of our Infrastructure Lending Segment improved $0.8 million to income of $0.6 million, compared to a loss of $0.2 million for the six months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, costs and expenses of our Property Segment decreased $3.9 million to $22.2 million, compared to $26.1 million for the three months ended March 31, 2024. The decrease is primarily due to (i) a $2.9 million decrease in interest expense on variable rate borrowings of the Medical Office Portfolio, reflecting lower refinanced balances and index rates, and (ii) the sale of our Master Lease Portfolio on February 29, 2024.
Current wording
For the six months ended June 30, 2025, costs and expenses of our Property Segment decreased $6.2 million to $44.3 million, compared to $50.5 million for the six months ended June 30, 2024. The decrease is primarily due to (i) a $5.5 million decrease in interest expense on variable rate borrowings of the Medical Office Portfolio, reflecting lower refinanced balances and index rates, and (ii) the sale of our Master Lease Portfolio on February 29, 2024.
Previous wording
For the three months ended March 31, 2025, other income of our Property Segment decreased $99.1 million to $2.9 million, compared to $102.0 million for the three months ended March 31, 2024. The decrease is primarily due to (i) the nonrecurrence of a $90.8 million net gain on sale of the Master Lease Portfolio in the first quarter of 2024, (ii) a $5.5 million decrease in income attributable to investments of the Woodstar Fund primarily due to greater unrealized decreases in fair value and (iii) a $1.8 million unfavorable change in gain (loss) on derivatives which hedge our interest rate risk on borrowings secured by our Medical Office Portfolio.
Current wording
For the six months ended June 30, 2025, other income of our Property Segment decreased $100.1 million to $7.3 million, compared to $107.4 million for the six months ended June 30, 2024. The decrease is primarily due to (i) the nonrecurrence of a $90.8 million net gain on sale of the Master Lease Portfolio in the first quarter of 2024, (ii) a $6.9 million decrease in income attributable to investments of the Woodstar Fund primarily due to greater unrealized decreases in fair value and (iii) a $2.1 million unfavorable change in gain (loss) on derivatives which hedge our interest rate risk on borrowings secured by our Medical Office Portfolio.
Previous wording
For the three months ended March 31, 2025, revenues of our Investing and Servicing Segment increased $16.8 million to $58.9 million, compared to $42.1 million for the three months ended March 31, 2024. The increase in revenues is primarily due to (i) an $8.8 million increase in servicing fees principally related to default interest and (ii) a $7.6 million increase in interest income primarily due to higher interest recoveries on CMBS investments.
Current wording
For the six months ended June 30, 2025, revenues of our Investing and Servicing Segment increased $15.0 million to $112.7 million, compared to $97.7 million for the six months ended June 30, 2024. The increase in revenues is primarily due to (i) a $7.4 million increase in servicing fees principally related to default interest and (ii) a $5.9 million increase in interest income primarily due to higher interest recoveries on CMBS investments.
Previous wording
For the three months ended March 31, 2025, other loss of our Investing and Servicing Segment increased $2.9 million to $7.7 million, compared to $4.8 million for the three months ended March 31, 2024. The increase in other loss was primarily due to (i) a $6.2 million greater decrease in fair value of CMBS investments and (ii) a $4.1 million unfavorable change in gain (loss) on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments, partially offset by (iii) a $4.2 million greater increase in fair value of conduit loans and (iv) a $3.3 million lesser decrease in fair value of servicing rights.
Current wording
For the six months ended June 30, 2025, other income (loss) of our Investing and Servicing Segment improved $38.0 million to income of $28.3 million, compared to a loss of $9.7 million for the six months ended June 30, 2024. The improvement was primarily due to (i) a $21.3 million lesser decrease in fair value of CMBS investments, (ii) an $8.9 million greater increase in fair value of conduit loans, (iii) a $5.9 million favorable change in fair value of servicing rights and (iv) a $5.0 million increase in earnings from unconsolidated entities, partially offset by (v) a $6.1 million unfavorable change in gain (loss) on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments.
Previous wording
For the three months ended March 31, 2025, corporate expenses increased $11.3 million to $120.0 million, compared to $108.7 million for the three months ended March 31, 2024. This increase was primarily due to (i) a $15.1 million increase in interest expense reflecting higher average balances of unsecured senior notes outstanding, partially offset by lower variable interest rates on our secured term loans, and (ii) a $1.4 million increase in general and administrative expenses, partially offset by (iii) a $5.2 million decrease in management fees, primarily reflecting lower incentive fees.
Current wording
For the six months ended June 30, 2025, corporate expenses increased $21.7 million to $235.2 million, compared to $213.5 million for the six months ended June 30, 2024. This increase was primarily due to (i) a $24.9 million increase in interest expense reflecting higher average balances of unsecured senior notes and secured term loans outstanding, partially offset by lower variable interest rates on the secured term loans, and (ii) a $1.7 million increase in general and administrative expenses, partially offset by (iii) a $4.9 million decrease in management fees, primarily reflecting lower incentive fees.
Previous wording
For the three months ended March 31, 2025, corporate other income (loss) improved $41.2 million to income of $27.3 million, compared to a loss of $13.9 million for the three months ended March 31, 2024. This was due to a favorable change in gain (loss) on fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.
Current wording
For the six months ended June 30, 2025, corporate other income (loss) improved $66.5 million to income of $43.5 million, compared to a loss of $23.0 million for the six months ended June 30, 2024. This was due to a favorable change in gain (loss) on fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.
Showing the first 40 of 87 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
•Originated or acquired $1.9 billion of commercial loans during the quarter, including the following:
Current report — wording carried from elsewhere
•Funded $198.5 million of previously originated commercial loan commitments and investment securities.
Current report — wording carried from elsewhere
•Received gross proceeds of $482.9 million ($123.2 million, net of debt repayments) from maturities and principal repayments on our commercial loans and investment securities.
Current report — wording carried from elsewhere
•Received proceeds of $288.3 million from principal repayments on our infrastructure loans and bonds.
Current report — wording carried from elsewhere
•Received proceeds of $445.8 million from sales of previously originated commercial conduit loans.
Current report — wording carried from elsewhere
•Obtained two new special servicing assignments for CMBS trusts with a total unpaid principal balance of $1.0 billion, while $5.8 billion matured, bringing our total named special servicing portfolio to $102.1 billion as of June 30, 2025.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended March 31, 2025, by business segment (amounts in thousands, except per share data).
Previous report — wording carried elsewhere
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended December 31, 2024, by business segment (amounts in thousands, except per share data).
Previous report — wording carried elsewhere
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the three months ended March 31, 2024, by business segment (amounts in thousands, except per share data):
Previous report — wording carried elsewhere
Three Months Ended March 31, 2025 Compared to the Three Months Ended December 31, 2024
Previous report — wording carried elsewhere
Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024