STARWOOD PROPERTY TRUST, INC.
For the period ended Sep 30, 2025. Filed Nov 10, 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.
Sep 30, 2025 · Filed Nov 10, 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 2025-06-30; filed 2025-08-07.
0001465128-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001465128-25-000018
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 273 previous paragraphs and 298 current paragraphs.
125 unchanged; 107 reworded; 65 added; 38 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 32 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 (65)
Current report
◦$550.0 million first mortgage and mezzanine loan secured by a 12-property multifamily portfolio located primarily in Arizona, which the Company fully funded.
Current report
◦$500.0 million first mortgage loan secured by a 42-asset industrial portfolio located in New York, of which the Company funded $483.6 million.
Current report
◦$161.0 million first mortgage and mezzanine loan secured by a multifamily property located in New York, of which the Company funded $145.2 million.
Current report
◦$64.0 million first mortgage loan secured by a multifamily community located in Illinois, of which the Company funded $61.7 million.
Current report
◦$52.2 million first mortgage and mezzanine loan secured by a luxury condominium tower located in New York, of which the Company funded $40.2 million.
Current report
Property
Current report
•In July 2025, acquired Fundamental Income Properties, LLC (“Fundamental”) by way of merger. The purchase price totaled $2.2 billion, inclusive of $1.3 billion of indebtedness assumed. See Note 3 to the Condensed Consolidated Financial Statements for further discussion.
Current report
•Acquired eight additional net lease properties for cash of $39.3 million and the non-cash conversion of two existing loans for the development of net lease properties totaling $14.4 million. We also sold one net lease property for $0.5 million.
Current report
•In August 2025, refinanced $185.1 million of the Woodstar Fund investments’ mortgage debt with $367.7 million of new debt that carries an initial term of 10 years, and a coupon of SOFR + 1.75%.
Current report
•Originated commercial conduit loans of $242.0 million.
Current report
•Issued 27.1 million shares of common stock for proceeds of $534.4 million.
Current report
•Entered into a $700.0 million term loan facility that carries a seven-year term, an annual interest rate of SOFR + 2.25%, and an issue discount of 50 bps.
Current report
•Amended our $682.6 million November 2027 and $893.3 million January 2030 term loan facilities, reducing the spreads by 50 bps and 25 bps, to SOFR + 1.75% and SOFR + 2.00%, respectively.
Current report
Developments During the Nine Months Ended September 30, 2025
Current report
•$550.0 million first mortgage and mezzanine loan secured by a 12-property multifamily portfolio located primarily in Arizona, which the Company fully funded.
Current report
•$500.0 million first mortgage loan secured by a 42-asset industrial portfolio located in New York, of which the Company funded $483.6 million.
Current report
Property
Current report
•In July 2025, acquired Fundamental by way of merger. The purchase price totaled $2.2 billion, inclusive of $1.3 billion of indebtedness assumed. See Note 3 to the Condensed Consolidated Financial Statements for further discussion.
Current report
•Acquired eight additional net lease properties for cash of $39.3 million and the non-cash conversion of two existing loans for the development of net lease properties totaling $14.4 million. We also sold a net lease property for $0.5 million.
Current report
•In August 2025, refinanced $185.1 million of the Woodstar Fund investments’ mortgage debt with $367.7 million of new debt that carries an initial term of 10 years, and a coupon of SOFR + 1.75%.
Current report
•Originated commercial conduit loans of $1.0 billion.
Current report
•Received proceeds of $912.4 million from sales of previously originated commercial conduit loans and priced $82.3 million of previously originated commercial conduit loans in two securitizations that settled subsequent to September 30, 2025.
Current report
•Issued 27.1 million shares of common stock for proceeds of $534.4 million.
Current report
•Entered into a $700.0 million term loan facility that carries a seven-year term, an annual interest rate of SOFR + 2.25%, and an issue discount of 50 bps.
Current report
•Amended our $682.6 million November 2027 and $893.3 million January 2030 term loan facilities, reducing the spreads by 50 bps and 25 bps, to SOFR + 1.75% and SOFR + 2.00%, respectively.
Current report
For the three months ended September 30, 2025, revenues of our Infrastructure Lending Segment increased $10.5 million to $77.7 million, compared to $67.2 million for the three months ended June 30, 2025. This was primarily due to a $10.8 million increase in interest income from loans reflecting higher prepayment related income and average loan balances.
Current report
For the three months ended September 30, 2025 and June 30, 2025, costs and expenses of our Infrastructure Lending Segment remained relatively unchanged at $48.3 million. A $2.3 million increase in interest expense, primarily reflecting higher average borrowings outstanding, was offset by decreases in other costs and expenses.
Current report
For the three months ended September 30, 2025, revenues of our Property Segment increased $29.7 million to $46.2 million, compared to $16.5 million for the three months ended June 30, 2025, primarily due to Fundamental, which contributed rental income for the period from July 23, 2025 to September 30, 2025.
Current report
For the three months ended September 30, 2025, costs and expenses of our Property Segment increased $36.2 million to $58.3 million, compared to $22.1 million for the three months ended June 30, 2025, primarily due to Fundamental, which introduced (i) higher interest expense from the liabilities assumed and higher general and administrative expenses totaling $20.2 million and (ii) higher depreciation and amortization of $15.4 million from the assets acquired.
Current report
For the three months ended September 30, 2025, other income (loss) of our Property Segment decreased $12.6 million to a loss of $8.3 million compared to income of $4.3 million for the three months ended June 30, 2025. The decrease is primarily due to (i) an $8.0 million loss on derivatives which hedge the pending securitization of Fundamental collateral currently on a warehouse line and the pending refinance of an existing ABS facility, as well as (ii) a $4.8 million decrease in income attributable to investments of the Woodstar Fund, primarily related to unrealized fair value changes.
Current report
For the three months ended September 30, 2025, revenues of our Investing and Servicing Segment increased $7.1 million to $60.9 million, compared to $53.8 million for the three months ended June 30, 2025. The increase in revenues is primarily due to (i) a $9.7 million increase in servicing fees principally related to default interest and consent fees, partially offset by (ii) a $3.1 million decrease in interest income from conduit loans primarily reflecting lower average balances held during the third quarter.
Current report
For the three months ended September 30, 2025, other income of our Investing and Servicing Segment decreased $13.9 million to $22.2 million, compared to $36.1 million for the three months ended June 30, 2025. The decrease is primarily due to a $9.6 million lower gain in fair value of conduit loans and a $2.8 million decrease in earnings from unconsolidated entities.
Current report
For the three months ended September 30, 2025, corporate expenses increased $2.5 million to $117.7 million, compared to $115.2 million for the three months ended June 30, 2025. This was primarily due to increases of $1.4 million in management fees and $1.0 million in interest expense.
Current report
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Current report
For the nine months ended September 30, 2025, revenues of our Infrastructure Lending Segment increased $8.9 million to $206.5 million, compared to $197.6 million for the nine months ended September 30, 2024. This increase was primarily due to an $8.6 million increase in interest income from loans, reflecting higher average balances and prepayment related income, partially offset by the effects of lower average index rates and spreads.
Current report
For the nine months ended September 30, 2025, revenues of our Property Segment increased $25.8 million to $79.2 million, compared to $53.4 million for the nine months ended September 30, 2024. The increase was primarily due to Fundamental, which contributed rental income for the period from July 23, 2025 to September 30, 2025, the effect of which was partially offset by the sale of our Master Lease Portfolio on February 29, 2024.
Current report
For the nine months ended September 30, 2025, costs and expenses of our Investing and Servicing Segment decreased $5.5 million to $107.3 million, compared to $112.8 million for the nine months ended September 30, 2024. The decrease is primarily due to decreases of (i) $4.2 million in interest expense principally related to the financing of conduit loan balances and (ii) $2.7 million in general and administrative expenses.
Current report
Distributable Earnings per weighted average diluted share for the nine months ended September 30, 2025 does not equal the sum of the individual quarters due to rounding and other computational factors.
Current report
The Commercial and Residential Lending Segment’s Distributable Earnings decreased by $15.2 million, from $174.2 million during the second quarter of 2025 to $159.0 million in the third quarter of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $349.0 million, costs and expenses were $199.0 million, other income was $9.0 million and there was no income tax provision or benefit.
Current report
Costs and expenses increased by $0.6 million in the third quarter of 2025, primarily due to a $1.1 million increase in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio, reflecting higher average borrowings outstanding.
Showing the first 40 of 65 passages. Open the source sections for the rest.
Removed paragraphs (38)
Previous 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.
Previous report
•Originated commercial conduit loans of $536.9 million.
Previous report
◦$162.0 million first mortgage loan secured by an industrial building located in California, which the Company fully funded.
Previous report
◦$116.0 million first mortgage loan secured by a student housing property located in California, of which the Company funded $112.2 million.
Previous report
Investing and Servicing
Previous report
•Originated commercial conduit loans of $234.3 million.
Previous report
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 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.
Previous report
For the three months ended June 30, 2025 and March 31, 2025, revenues of our Property Segment remained relatively unchanged at $16.5 million.
Previous 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.
Previous report
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 report
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 report
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 report
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 report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Revenues, consisting principally of interest income on loans, increased by $5.6 million in the second quarter of 2025, 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 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.
Previous report
The Property Segment’s Distributable Earnings increased by $1.1 million, from $16.3 million during the first quarter of 2025 to $17.4 million in the second 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 $20.8 million and the deduction of income attributable to non-controlling interests in the Woodstar Fund was $4.1 million.
Previous report
Revenues and costs and expenses remained relatively unchanged in the second quarter of 2025.
Previous report
Other income increased by $1.4 million in the second quarter of 2025, primarily due to a $1.3 million increase in distributable earnings from the Woodstar Fund.
Previous report
Income attributable to non-controlling interests decreased $1.0 million in the second quarter of 2025, primarily due to non-controlling interests in lower distributable earnings of a consolidated CMBS joint venture.
Previous report
Corporate loss increased by $4.6 million, from $108.4 million during the first quarter of 2025 to $113.0 million in the second quarter of 2025, primarily due to a $5.3 million increase in interest expense, principally reflecting higher average balances of unsecured senior notes outstanding.
Previous report
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the six months ended June 30, 2025, by business segment (amounts in thousands, except per share data):
Previous report
The following table presents our summarized results of operations and reconciliation to Distributable Earnings for the six months ended June 30, 2024, by business segment (amounts in thousands, except per share data):
Previous report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Previous report
The Commercial and Residential Lending Segment’s Distributable Earnings decreased by $41.1 million, from $394.1 million during the first half of 2024 to $353.0 million in the first half of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $681.6 million, costs and expenses were $381.4 million, other income was $52.8 million and there was no income tax provision or benefit.
Previous report
The Infrastructure Lending Segment’s Distributable Earnings decreased by $3.2 million, from $44.1 million during the first half of 2024 to $40.9 million in the first half of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $128.8 million, costs and expenses were $87.1 million and other loss was $0.8 million.
Previous report
The Property Segment’s Distributable Earnings decreased by $39.6 million, from $73.3 million during the first half of 2024 to $33.7 million in the first half of 2025. After making adjustments for the calculation of Distributable Earnings, revenues were $34.0 million, costs and expenses were $32.7 million, other income was $40.3 million and the deduction of income attributable to non-controlling interests in the Woodstar Fund was $7.9 million.
Previous report
Revenues decreased by $3.7 million in the first half of 2025, primarily due to the sale of our Master Lease Portfolio on February 29, 2024.
Previous report
Revenues increased by $20.2 million in the first half of 2025, primarily due to (i) an $11.1 million increase in interest income, primarily due to higher interest recoveries on CMBS investments, and (ii) a $7.4 million increase in servicing fees principally related to default interest.
Previous report
Costs and expenses increased by $0.9 million in the first half of 2025.
Previous report
Other income increased by $46.2 million in the first half of 2025, primarily due to (i) a $29.7 million decrease in recognized credit losses on CMBS, (ii) a $6.5 million increase in realized gains on conduit loans, (iii) a $5.9 million favorable change in fair value of servicing rights and (iv) a $5.7 million increase in earnings from unconsolidated entities, partially offset by (v) a $6.1 million unfavorable change in realized gain (loss) on derivatives which primarily hedge our interest rate risk on conduit loans and CMBS investments.
Previous report
Income attributable to non-controlling interests increased $0.5 million in the first half of 2025.
Reworded paragraphs (107)
Previous wording
•Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized and to be stabilized commercial real estate properties, including multifamily properties, that are held for investment.
Current wording
•Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized and to be stabilized commercial real estate. This includes multifamily properties, multi-tenant medical office net lease properties and diversified single-tenant triple net lease properties, all of which are held for investment.
Previous wording
Our segments exclude the consolidation of securitization variable interest entities (“VIEs”).
Current wording
Our segments exclude the consolidation of securitization variable interest entities (“VIEs”), principally representing CMBS trust vehicles that we consolidate by virtue of our role as special servicer. However, they include securitized financing VIEs such as collateralized loan obligations (“CLOs”), single asset securitizations (“SASBs”) and asset-backed securitizations (“ABSs”).
Previous 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.
Current wording
Although the Federal Reserve began to lower interest rates in September 2025, after having held rates steady for a year, it is not clear what actions it may take going forward given the uncertain economic effects of tariffs which increase the possibility of an economic slowdown as well as inflationary pressures in the U.S. Elevated interest rates and tariffs over time may adversely affect our borrowers and our tenants. Higher costs may dampen consumer spending and slow income growth, which may negatively impact the collateral underlying certain of our loans and certain of our commercial assets subject to net lease whose customer base could be adversely impacted. Rates can also impact the value of real estate, including the real estate we own as well as the real estate collateralizing 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
Developments During the Second Quarter of 2025
Current wording
Developments During the Third Quarter of 2025
Previous wording
•Originated or acquired $1.4 billion of commercial loans during the quarter, including the following:
Current wording
•Originated $1.4 billion of commercial loans during the quarter, including the following:
Previous wording
•Funded $198.5 million of previously originated commercial loan commitments and investment securities.
Current wording
•Funded $219.4 million of previously originated commercial loan commitments and investment securities.
Previous wording
•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 wording
•Received gross proceeds of $1.3 billion ($389.9 million, net of debt repayments) from maturities and principal repayments on our commercial loans and investment securities.
Previous wording
•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 wording
•Committed $790.9 million for new infrastructure loans, of which the Company funded $678.3 million, and also funded $19.4 million of pre-existing infrastructure loan commitments.
Previous wording
•Received proceeds of $288.3 million from principal repayments on our infrastructure loans and bonds.
Current wording
•Received proceeds of $691.1 million from principal repayments on our infrastructure loans and bonds.
Previous wording
•Received proceeds of $445.8 million from sales of previously originated commercial conduit loans.
Current wording
•Received proceeds of $169.3 million from sales of previously originated commercial conduit loans and priced $82.3 million of previously originated commercial conduit loans in two securitizations that settled subsequent to September 30, 2025.
Previous wording
•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.
Current wording
•Obtained five new special servicing assignments for CMBS trusts with a total unpaid principal balance of $3.6 billion, while $6.7 billion matured, bringing our total named special servicing portfolio to $99.0 billion.
Previous wording
•Originated or acquired $1.9 billion of commercial loans during the quarter, including the following:
Current wording
•Originated or acquired $4.7 billion of commercial loans during the period, including the following:
Previous wording
◦$550.0 million first mortgage and mezzanine loan for the construction of a pre-leased data center located in Utah, of which the Company funded $264.3 million.
Current wording
•$550.0 million first mortgage and mezzanine loan for the construction of a pre-leased data center located in Utah, of which the Company funded $315.1 million.
Previous wording
◦$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 wording
•$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 $58.8 million of the mezzanine loan. Refer to Note 12 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
◦$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 wording
•$287.7 million first mortgage loan for the construction of a fully leased data center located in Virginia, of which the Company funded $44.9 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
◦€220.5 million ($228.9 million) first mortgage loan secured by a portfolio of apartment buildings located in Germany, of which the Company funded $151.5 million.
Current wording
•€220.5 million ($228.9 million) first mortgage loan secured by a portfolio of apartment buildings located in Germany, of which the Company funded $171.0 million.
Previous wording
◦$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 wording
•$212.8 million first mortgage loan for the construction of a fully leased data center located in Virginia, of which the Company funded $131.4 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
◦$190.3 million first mortgage loan for the construction of a luxury 81 unit condominium project located in Florida, of which the Company funded $61.1 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Current wording
•$190.3 million first mortgage loan for the construction of a luxury 81 unit condominium project located in Florida, of which the Company funded $64.4 million. Refer to Note 16 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
•Funded $250.5 million of previously originated commercial loan commitments and investment securities.
Current wording
•Funded $544.2 million of previously originated commercial loan commitments and investment securities.
Previous wording
•Received gross proceeds of $363.3 million ($256.1 million, net of debt repayments) from maturities and principal repayments on our commercial loans and investment securities.
Current wording
•Received gross proceeds of $2.1 billion ($0.8 billion, net of debt repayments) from maturities and principal repayments on our commercial loans and investment securities.
Previous wording
•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 wording
•Amended several commercial credit facilities resulting in an aggregate net upsize of $1.5 billion and extended the weighted average maturity on amended facilities by 1.4 years to 3.1 years.
Previous 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.
Current wording
•Committed $2.2 billion for new infrastructure loans, of which the Company funded $1.9 billion, and also funded $28.0 million of pre-existing infrastructure loan commitments.
Previous wording
•Received proceeds of $435.7 million from principal repayments on our infrastructure loans and bonds.
Current wording
•Received proceeds of $1.4 billion from principal repayments on our infrastructure loans and bonds.
Previous wording
•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 wording
•Acquired CMBS for a purchase price of $69.0 million, of which $1.4 million related to non-controlling interests, and sold CMBS for gross proceeds of $4.2 million.
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 as of March 31, 2025.
Current wording
•Obtained eight new special servicing assignments for CMBS trusts with a total unpaid principal balance of $5.5 billion, while $16.1 billion matured, bringing our total named special servicing portfolio to $99.0 billion.
Previous wording
•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 wording
•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 nine months, 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.
Previous wording
Refer to Note 24 to the Consolidated Financial Statements for disclosure regarding significant transactions that occurred subsequent to June 30, 2025.
Current wording
Refer to Note 24 to the Condensed Consolidated Financial Statements for disclosure regarding significant transactions that occurred subsequent to September 30, 2025.
Previous 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):
Current wording
The following table compares our summarized results of operations for the three months ended September 30, 2025 and June 30, 2025 and for the nine months ended September 30, 2025 and 2024 by business segment (amounts in thousands):
Previous wording
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 wording
For the three months ended September 30, 2025, revenues of our Commercial and Residential Lending Segment decreased $0.8 million to $343.1 million, compared to $343.9 million for the three months ended June 30, 2025. This was primarily due to a decrease of $2.9 million in interest income from investment securities, reflecting lower balances due to payoffs, partially offset by an increase in interest income from loans of $2.3 million. The increase in interest income from loans was comprised of a $2.7 million increase from commercial loans primarily reflecting higher average balances, partially offset by a $0.4 million decrease from residential loans.
Previous 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.
Current wording
For the three months ended September 30, 2025, costs and expenses of our Commercial and Residential Lending Segment increased $24.1 million to $231.4 million, compared to $207.3 million for the three months ended June 30, 2025. This increase was primarily due to increases of $23.1 million in the credit loss provision and $1.1 million in interest expense associated with the various secured financing facilities used to fund a portion of this segment’s investment portfolio. The increase in the credit loss provision primarily reflects a $27.2 million specific allowance provided on a mezzanine loan deemed credit deteriorated in the 2025 third quarter. The increase in interest expense was primarily due to higher average borrowings outstanding.
Previous 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.
Current wording
For the three months ended September 30, 2025, net interest income of our Commercial and Residential Lending Segment decreased $1.7 million to $152.7 million, compared to $154.4 million for the three months ended June 30, 2025. This decrease reflects the net decrease in interest income and the increase in interest expense on our secured financing facilities, both as discussed in the sections above.
Previous 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.
Current wording
During the three months ended September 30, 2025 and June 30, 2025, the Commercial and Residential Lending Segment’s weighted average secured borrowing rates, inclusive of the amortization of deferred financing fees, were 6.3% and 6.5%, respectively. Interest rate hedges had the effect of reducing these weighted average borrowing costs to 5.9% and 6.0% during the three months ended September 30, 2025 and June 30, 2025, respectively.
Previous 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.
Current wording
For the three months ended September 30, 2025, other income of our Commercial and Residential Lending Segment increased $16.0 million to $42.6 million compared to $26.6 million for the three months ended June 30, 2025. This increase was primarily due to (i) a $130.4 million favorable change in gain (loss) on derivatives and (ii) a $32.1 million greater increase in fair value of residential loans, partially offset by (iii) a $95.3 million unfavorable change in foreign currency gain (loss), (iv) a $30.6 million lesser gain on sale of investments and other assets and (v) the nonrecurrence of a $20.8 million gain on extinguishment of debt primarily related to the sale of a foreclosed property in the second quarter of 2025. The favorable change in gain (loss) on derivatives in the third quarter of 2025 reflects (i) a $113.6 million favorable change in gain (loss) on foreign currency hedges and (ii) a $16.8 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 unfavorable change in foreign currency gain (loss) and the favorable change in gain (loss) on foreign currency hedges reflect the strengthening of the U.S. dollar against the pound sterling (“GBP”) and Euro (“EUR”), partially offset by a weakening against the Australian dollar (“AUD”), in the third quarter of 2025, compared to a weakening of the U.S. dollar against each of those currencies in the second quarter of 2025.
Previous 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.
Current wording
For the three months ended September 30, 2025, net interest income of our Infrastructure Lending Segment increased $8.5 million to $35.5 million, compared to $27.0 million for the three months ended June 30, 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 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.
Current wording
During the three months ended September 30, 2025 and June 30, 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 9.3% and 9.1%, respectively, primarily reflecting higher prepayment related income in the third quarter of 2025.
Previous 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.
Current wording
During both the three months ended September 30, 2025 and June 30, 2025, the Infrastructure Lending Segment’s weighted average secured borrowing rate, inclusive of the amortization of deferred financing fees, was 6.9%.
Previous 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.
Current wording
For the three months ended September 30, 2025, other income (loss) of our Infrastructure Lending Segment decreased $1.5 million to a loss of $0.5 million, compared to income of $1.0 million for the three months ended June 30, 2025, primarily due to an unfavorable change in earnings (loss) from unconsolidated entities.
Previous wording
See Notes 6 and 7 to the Condensed Consolidated Financial Statements for a description of the above-referenced Property Segment portfolios and fund.
Current wording
See Notes 6 and 7 to the Condensed Consolidated Financial Statements for a description of the above-referenced Property Segment assets.
Previous wording
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 wording
For the three months ended September 30, 2025, costs and expenses of our Investing and Servicing Segment decreased $3.8 million to $33.9 million, compared to $37.7 million for the three months ended June 30, 2025. The decrease is primarily due to a $2.5 million decrease in general and administrative expenses, principally related to decreased loan securitization activity, and a $1.0 million decrease in interest expense primarily related to the financing of conduit loan balances.
Previous 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.
Current wording
For the three months ended September 30, 2025, corporate other income (loss) decreased $18.0 million to a loss of $1.8 million, compared to income of $16.2 million for the three months ended June 30, 2025. This was due to a an unfavorable change in gain (loss) on our fixed-to-floating interest rate swaps which hedge a portion of our unsecured senior notes.
Showing the first 40 of 107 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Amended several commercial credit facilities resulting in an aggregate net upsize of $192.4 million and extended the weighted average maturity on amended facilities by 1.2 years to 2.6 years.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Developments During the First Quarter of 2025
Previous report — wording carried elsewhere
•Received proceeds of $297.3 million from sales of previously originated commercial conduit loans.
Previous report — wording carried elsewhere
•Acquired CMBS for a purchase price of $12.0 million.