Starwood Property Trust (STWD) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 02, 2017
Document and Entity Information
Entity Registrant Name	STARWOOD PROPERTY TRUST, INC.
Entity Central Index Key	1,465,128
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		260,998,683
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 413,845	$ 615,522
Restricted cash	54,591	35,233
Loans held-for-investment, net	6,382,371	5,847,995
Loans held-for-sale at fair value	608,624	63,279
Loans transferred as secured borrowings	74,339	35,000
Investment securities ($290,622 and $297,638 held at fair value)	701,818	807,618
Properties, net	2,521,342	1,944,720
Intangible assets ($33,781 and $55,082 held at fair value)	181,865	219,248
Investment in unconsolidated entities	243,450	204,605
Goodwill	140,437	140,437
Derivative assets	38,293	89,361
Accrued interest receivable	35,047	28,224
Other assets	112,265	101,763
Variable interest entity ("VIE") assets, at fair value	51,197,981	67,123,261
Total Assets	62,706,268	77,256,266
Liabilities:
Accounts payable, accrued expenses and other liabilities	203,782	198,134
Related-party payable	29,989	37,818
Dividends payable	125,674	125,075
Derivative liabilities	22,890	3,904
Secured financing agreements, net	5,514,695	4,154,126
Unsecured senior notes, net	2,044,523	2,011,544
Secured borrowings on transferred loans, net	74,200	35,000
VIE liabilities, at fair value	50,150,781	66,130,592
Total Liabilities	58,166,534	72,696,193
Commitments and contingencies (Note 21)
Starwood Property Trust, Inc. Stockholders' Equity:
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 per share, 500,000,000 shares authorized, 265,406,623 issued and 260,799,738 outstanding as of September 30, 2017 and 263,893,806 issued and 259,286,921 outstanding as of December 31, 2016	2,654	2,639
Additional paid-in capital	4,705,044	4,691,180
Treasury stock (4,606,885 shares)	(92,104)	(92,104)
Accumulated other comprehensive income	65,271	36,138
Accumulated deficit	(184,073)	(115,579)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,496,792	4,522,274
Non-controlling interests in consolidated subsidiaries	42,942	37,799
Total Equity	4,539,734	4,560,073
Total Liabilities and Equity	$ 62,706,268	$ 77,256,266

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Investment securities held at fair value	$ 290,622	$ 297,638
Intangible assets held at fair value	$ 33,781	$ 55,082
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	265,406,623	263,893,806
Common stock, shares outstanding	260,799,738	259,286,921
Treasury stock, shares	4,606,885	4,606,885

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Interest income from loans	$ 138,599	$ 121,225	$ 371,094	$ 361,314
Interest income from investment securities	12,451	19,175	40,045	53,879
Servicing fees	14,842	22,918	47,572	70,921
Rental income	60,153	39,742	176,161	110,262
Other revenues	722	1,645	2,184	3,814
Total revenues	226,767	204,705	637,056	600,190
Costs and expenses:
Management fees	30,980	27,780	79,997	76,510
Interest expense	76,431	59,082	213,608	173,237
General and administrative	32,892	51,470	95,841	119,677
Acquisition and investment pursuit costs	1,024	1,509	2,232	5,682
Costs of rental operations	23,799	18,011	67,701	46,518
Depreciation and amortization	22,871	15,352	67,131	53,185
Loan loss allowance, net	(171)	2,127	(3,170)	3,395
Other expense	376	711	1,276	811
Total costs and expenses	188,202	176,042	524,616	479,015
Income before other income (loss), income taxes and non-controlling interests	38,565	28,663	112,440	121,175
Other income (loss):
Change in net assets related to consolidated VIEs	56,177	47,848	203,108	94,388
Change in fair value of servicing rights	(4,867)	(14,283)	(21,301)	(33,213)
Change in fair value of investment securities, net	(397)	(2,786)	(4,061)	(714)
Change in fair value of mortgage loans held-for-sale, net	19,485	49,996	45,484	70,122
(Loss) earnings from unconsolidated entities	(4,689)	4,305	27,763	12,849
Gain on sale of investments and other assets, net	11,877	10	17,004	165
Loss on derivative financial instruments, net	(24,224)	(2,328)	(66,159)	(6,793)
Foreign currency gain (loss), net	10,660	(3,214)	28,434	(20,580)
Total other-than-temporary impairment ("OTTI")	66		175	54
Noncredit portion of OTTI recognized in other comprehensive income	66		66	54
Net impairment losses recognized in earnings			(109)
Loss on extinguishment of debt			(5,916)
Other income, net	28	269	484	10,998
Total other income (loss)	64,050	79,817	224,731	127,222
Income before income taxes	102,615	108,480	337,171	248,397
Income tax provision	(9,816)	(2,667)	(18,285)	(3,467)
Net income	92,799	105,813	318,886	244,930
Net income attributable to non-controlling interests	(4,371)	(47)	(10,720)	(1,034)
Net income attributable to Starwood Property Trust, Inc.	$ 88,428	$ 105,766	$ 308,166	$ 243,896
Earnings per share data attributable to Starwood Property Trust, Inc.:
Basic (in dollars per share)	$ 0.34	$ 0.44	$ 1.18	$ 1.02
Diluted (in dollars per share)	0.33	0.44	1.17	1
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 1.44	$ 1.44

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 92,799	$ 105,813	$ 318,886	$ 244,930
Other comprehensive income (loss) (net change by component):
Cash flow hedges	(22)	185	56	(136)
Available-for-sale securities	3,975	6,105	10,728	8,656
Foreign currency translation	5,337	1,331	18,349	1,999
Other comprehensive income (loss)	9,290	7,621	29,133	10,519
Comprehensive income	102,089	113,434	348,019	255,449
Less: Comprehensive income attributable to non-controlling interests	(4,371)	(47)	(10,720)	(1,034)
Comprehensive income attributable to Starwood Property Trust, Inc.	$ 97,718	$ 113,387	$ 337,299	$ 254,415

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total Starwood Property Trust, Inc. Stockholders' Equity2023 Notes	Total Starwood Property Trust, Inc. Stockholders' Equity2018 Notes	Total Starwood Property Trust, Inc. Stockholders' Equity	Common stock	Additional Paid-In Capital2023 Notes	Additional Paid-In Capital2018 Notes	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Income	Non-Controlling Interests	2023 Notes	2018 Notes	Total
Balance at Dec. 31, 2015			$ 4,140,316	$ 2,410			$ 4,192,844	$ (72,381)	$ (12,286)	$ 29,729	$ 30,627			$ 4,170,943
Balance (in shares) at Dec. 31, 2015				241,044,775				3,553,996
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan			299				299							299
Proceeds from DRIP Plan (in shares)				14,707
Common stock repurchased			(19,723)					$ (19,723)						$ (19,723)
Common stock repurchased (in shares)								1,052,889						1,052,889
Share-based compensation			22,797	$ 12			22,785							$ 22,797
Share-based compensation (in shares)				1,147,975
Manager incentive fee paid in stock			14,657	$ 8			14,649							14,657
Manager incentive fee paid in stock (in shares)				788,460
Net income			243,896						243,896		1,034			244,930
Dividends declared, $1.44 per share			(343,913)						(343,913)					(343,913)
Other comprehensive income, net			10,519							10,519				10,519
VIE non-controlling interests											(144)			(144)
Contributions from non-controlling interests											10,417			10,417
Distribution to non-controlling interests											(5,400)			(5,400)
Balance at Sep. 30, 2016			4,068,848	$ 2,430			4,230,577	$ (92,104)	(112,303)	40,248	36,534			4,105,382
Balance (in shares) at Sep. 30, 2016				242,995,917				4,606,885
Balance at Dec. 31, 2016			4,522,274	$ 2,639			4,691,180	$ (92,104)	(115,579)	36,138	37,799			$ 4,560,073
Balance (in shares) at Dec. 31, 2016				263,893,806				4,606,885						263,893,806
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan			541				541							$ 541
Proceeds from DRIP Plan (in shares)				24,217
Equity offering costs			(12)				(12)							$ (12)
Common stock repurchased (in shares)														0
Equity component of Convertible Senior Notes issuance	$ 3,755				$ 3,755							$ 3,755
Equity component of Convertible Senior Notes repurchase		$ (18,105)				$ (18,105)							$ (18,105)
Share-based compensation			13,290	$ 9			13,281							$ 13,290
Share-based compensation (in shares)				849,045
Manager incentive fee paid in stock			14,410	$ 6			14,404							14,410
Manager incentive fee paid in stock (in shares)				639,555
Net income			308,166						308,166		10,720			318,886
Dividends declared, $1.44 per share			(376,660)						(376,660)					(376,660)
Other comprehensive income, net			29,133							29,133				29,133
VIE non-controlling interests											1,837			1,837
Contributions from non-controlling interests											105			105
Distribution to non-controlling interests											(7,519)			(7,519)
Balance at Sep. 30, 2017			$ 4,496,792	$ 2,654			$ 4,705,044	$ (92,104)	$ (184,073)	$ 65,271	$ 42,942			$ 4,539,734
Balance (in shares) at Sep. 30, 2017				265,406,623				4,606,885						265,406,623

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	Aug. 09, 2017	May 09, 2017	Feb. 23, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Equity
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 1.44	$ 1.44

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 92,799	$ 105,813	$ 318,886	$ 244,930
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of deferred financing costs, premiums and discounts on secured financing agreements [and secured borrowings on transferred loans]			14,131	12,061
Amortization of discounts and deferred financing costs on senior notes			17,514	16,058
Accretion of net discount on investment securities			(11,669)	(11,967)
Accretion of net deferred loan fees and discounts			(27,014)	(38,809)
Share-based compensation			13,290	22,797
Share-based component of incentive fees			14,410	14,657
Change in fair value of fair value option investment securities	397	2,786	4,061	714
Change in fair value of consolidated VIEs			(59,160)	42,371
Change in fair value of servicing rights	4,867	14,283	21,301	33,213
Change in fair value of loans held-for-sale	(19,485)	(49,996)	(45,484)	(70,122)
Change in fair value of derivatives			62,463	3,360
Foreign currency (gain) loss, net			(28,211)	20,367
Gain on sale of investments and other assets			(17,004)	(165)
Impairment charges			1,099	711
Loan loss allowance, net	(171)	2,127	(3,170)	3,395
Depreciation and amortization			64,937	49,081
Earnings from unconsolidated entities	4,689	(4,305)	(27,763)	(12,849)
Distributions of earnings from unconsolidated entities			4,716	15,151
Bargain purchase gain				(8,406)
Loss on extinguishment of debt			5,916
Origination and purchase of loans held-for-sale, net of principal collections			(1,487,813)	(1,186,080)
Proceeds from sale of loans held-for-sale			987,828	1,123,512
Changes in operating assets and liabilities:
Related-party payable, net			(7,829)	(17,166)
Accrued and capitalized interest receivable, less purchased interest			(63,032)	(58,275)
Other assets			(12,198)	6,168
Accounts payable, accrued expenses and other liabilities			37,367	(3,537)
Net cash (used in) provided by operating activities			(222,428)	201,170
Cash Flows from Investing Activities:
Origination and purchase of loans held-for-investment			(2,195,258)	(1,583,628)
Proceeds from principal collections on loans			1,670,159	2,187,844
Proceeds from loans sold			37,079	236,433
Purchase of investment securities			(69,231)	(359,510)
Proceeds from sales of investment securities			11,134	3,799
Proceeds from principal collections on investment securities	123,644	22,772	209,903	70,316
Real estate business combinations, net of cash and restricted cash acquired			(18,194)	(91,186)
Proceeds from sale of properties			44,219
Purchases and additions to properties and other assets			(564,755)	(10,209)
Investment in unconsolidated entities			(20,544)	(3,870)
Distribution of capital from unconsolidated entities			3,858	15,026
Payments for purchase or termination of derivatives			(41,208)	(24,954)
Proceeds from termination of derivatives			23,686	37,652
Return of investment basis in purchased derivative asset			151	206
Net cash (used in) provided by investing activities			(909,001)	477,919
Cash Flows from Financing Activities:
Proceeds from borrowings			4,090,163	3,158,920
Principal repayments on and repurchases of borrowings			(2,724,179)	(3,138,534)
Payment of deferred financing costs			(17,038)	(17,799)
Proceeds from common stock issuances			541	299
Payment of equity offering costs			(647)
Payment of dividends			(376,061)	(343,670)
Contributions from non-controlling interests			105	10,417
Distributions to non-controlling interests			(7,519)	(5,400)
Purchase of treasury stock				(19,723)
Issuance of debt of consolidated VIEs			11,657	596
Repayment of debt of consolidated VIEs			(92,383)	(202,892)
Distributions of cash from consolidated VIEs			62,797	40,731
Net cash provided by (used in) financing activities			947,436	(517,055)
Net (decrease) increase in cash, cash equivalents and restricted cash			(183,993)	162,034
Cash, cash equivalents and restricted cash, beginning of period			650,755	391,884	$ 391,884
Effect of exchange rate changes on cash			1,674	(626)
Cash, cash equivalents and restricted cash, end of period	468,436	553,292	468,436	553,292	$ 650,755
Supplemental disclosure of cash flow information:
Cash paid for interest			177,604	146,011
Income taxes paid			7,722	3,038
Supplemental disclosure of non-cash investing and financing activities:
Dividends declared, but not yet paid	$ 125,638	$ 115,190	125,638	115,190
Consolidation of VIEs (VIE asset/liability additions)			2,092,516	19,118,645
Deconsolidation of VIEs (VIE asset/liability reductions)			2,244,267	5,404,305
Net assets acquired from consolidated VIEs			19,652	133,177
Fair value of assets acquired, net of cash and restricted cash			18,956	270,021
Fair value of liabilities assumed			$ 762	170,429
Unsettled investment securities sold				$ 14,926

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2017
Business and Organization
Business and Organization	Starwood Property Trust, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements As of September 30, 2017 (Unaudited) 1. Business and Organizatio Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering. We are focused primarily on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities (“CMBS”), and other commercial real estate investments in both the U.S. and Europe. We refer to the following as our target assets: commercial real estate mortgage loans, preferred equity interests, CMBS and other commercial real estate-related debt investments. Our target assets may also include residential mortgage-backed securities (“RMBS”), certain residential mortgage loans, distressed or non-performing commercial loans, commercial properties subject to net leases and equity interests in commercial real estate. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions. We have three reportable business segments as of September 30, 2017: · Real estate lending (the “Lending Segment”)—engages primarily in originating, acquiring, financing and managing commercial first mortgages, subordinated mortgages, mezzanine loans, preferred equity, CMBS, RMBS, certain residential mortgage loans, and other real estate and real estate-related debt investments in both the U.S. and Europe. · Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multi-family properties, that are held for investment. · Real estate investing and servicing (the “Investing and Servicing Segment”)—includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions, and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts. This segment excludes the consolidation of securitization variable interest entities (“VIEs”). We are organized and conduct our operations to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements. We are organized as a holding company and conduct our business primarily through our various wholly-owned subsidiaries. We are externally managed and advised by SPT Management, LLC (our “Manager”) pursuant to the terms of a management agreement. Our Manager is controlled by Barry Sternlicht, our Chairman and Chief Executive Officer. Our Manager is an affiliate of Starwood Capital Group, a privately-held private equity firm founded and controlled by Mr. Sternlicht.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Balance Sheet Presentation of the Investing and Servicing Segment’s Variable Interest Entities As noted above, the Investing and Servicing Segment operates an investment business that acquires unrated, investment grade and non-investment grade rated CMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because the Investing and Servicing Segment often serves as the special servicer of the trusts in which it invests, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. Refer to the segment data in Note 22 for a presentation of the Investing and Servicing Segment without consolidation of these VIEs. Basis of Accounting and Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, or (iii) became significant since December 31, 2016 due to a corporate action or increase in the significance of the underlying business activity. Variable Interest Entities In addition to the Investing and Servicing Segment’s VIEs, certain other entities in which we hold interests are considered VIEs as the limited partners of these entities do not collectively possess (i) the right to remove the general partner without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes, (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include CMBS which are unrated and non-investment grade rated securities issued by CMBS trusts. In certain cases, we may contract to provide special servicing activities for these CMBS trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, an allocable portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding allocable amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our condensed consolidated statements of operations. The residual difference shown on our condensed consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our condensed consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related CMBS trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to nonperformance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a CMBS trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a CMBS trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a CMBS trust. REO assets generally represent a very small percentage of the overall asset pool of a CMBS trust. In a new issue CMBS trust there are no REO assets. We estimate that REO assets constitute approximately 4% of our consolidated securitization VIE assets, with the remaining 96% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standards Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate. Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for eligible financial assets and liabilities of our consolidated securitization VIEs, loans held-for-sale originated or acquired for future securitization, purchased CMBS issued by VIEs we could consolidate in the future and certain investments in marketable equity securities. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for mortgage loans held-for-sale were made due to the short-term nature of these instruments. The fair value elections for investments in marketable equity securities were made because the shares are listed on an exchange, which allows us to determine the fair value using a quoted price from an active market. Fair Value Measurements We measure our mortgage‑backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIE, we maximize the use of observable inputs over unobservable inputs. We also acknowledge that our principal market for selling CMBS assets is the securitization market where the market participant is considered to be a CMBS trust or a collateralized debt obligation (“CDO”). This methodology results in the fair value of the assets of a static CMBS trust being equal to the fair value of its liabilities. Refer to Note 19 for further discussion regarding our fair value measurements. Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. We apply the business combination provisions of ASC 805 in accounting for most acquisitions of real estate assets with in-place leases. In doing so, we record provisional amounts for certain items as of the date of acquisition. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. We do not apply the business combination provisions of ASC 805 for acquired real estate assets where a lease is entered into concurrently with the acquisition of the asset, such as in sale leaseback transactions. We account for sale leaseback transactions as asset acquisitions. Lease Classification In accordance with ASC 840, Leases , we evaluate all new or amended leases to determine if the lease (1) provides for a transfer of ownership to the lessee at the conclusion of the lease, (2) provides the lessee with a bargain purchase option, (3) has a term of 75% or more of the leased asset’s remaining useful life, or (4) has minimum lease payments with a present value of 90% or more of the leased asset’s fair value. If any of these conditions exist, we account for the lease as a capital lease, otherwise, the lease is considered an operating lease. Loans Held-for-Investment and Provision for Loan Losses Loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees, and origination costs as applicable, unless the loans are deemed impaired. We evaluate each loan classified as held-for-investment for impairment at least quarterly. In connection with this evaluation, we assess the performance of each loan and assign a risk rating based on several factors, including risk of loss, loan-to-collateral value ratio (“LTV”), collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” through “5”, from less risk to greater risk, in connection with this review. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, we record an allowance through the provision for loan losses to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. Actual losses, if any, could ultimately differ from these estimates. Earnings Per Share We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested restricted stock (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, and (iii) the “in-the-money” conversion options associated with our outstanding convertible senior notes (see further discussion in Notes 10 and 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period. Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the three and nine months ended September 30, 2017 and 2016, the two-class method resulted in the most dilutive EPS calculation. Restricted Cash Restricted cash includes cash and cash equivalents that are legally or contractually restricted as to withdrawal or usage and primarily includes cash collateral associated with derivative financial instruments and funds held on behalf of borrowers and tenants. Effective January 1, 2017, we early adopted ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cas h, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning and end-of-period total amounts shown on the statement of cash flows . As required by this ASU, we applied this change retrospectively to our prior period condensed consolidated statement of cash flows for the nine months ended September 30, 2016. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our loans, investment securities and intangible assets, which has a significant impact on the amounts of interest income, credit losses (if any), and fair values that we record and/or disclose. In addition, the fair value of financial assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants would discount the expected cash flows. Reclassifications Certain prior period amounts have been reclassified to conform to our current period presentation. In that regard, we have reclassified $0.7 million of impairment of lease intangible assets from OTTI to other expense in our consolidated statements of operations for the three and nine months ended September 30, 2016. Recent Accounting Developments On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers , which establishes key principles by which an entity determines the amount and timing of revenue recognized from customer contracts. At issuance, the ASU was effective for the first interim or annual period beginning after December 15, 2016. On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year, resulting in the ASU becoming effective for the first interim or annual period beginning after December 15, 2017. We do not expect the application of this ASU to materially impact the Company as our material revenue sources are not within the scope of the ASU. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , which impacts the accounting for equity investments, financial liabilities under the fair value option, and disclosure requirements for financial instruments. The ASU shall be applied prospectively and is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is not permitted. We do not expect the application of this ASU to materially impact the Company. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which establishes a right-of-use model for lessee accounting which results in the recognition of most leased assets and lease liabilities on the balance sheet of the lessee. Lessor accounting was not significantly changed by the ASU. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018 by applying a modified retrospective approach. Early application is permitted. We are in the process of assessing the impact this ASU will have on the Company. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which amends the principal-versus-agent implementation guidance and illustrations in the FASB’s revenue recognition standard issued in ASU 2014-09. The ASU provides further guidance to assist an entity in determining whether the nature of its promise to its customer is to provide the underlying goods or services, meaning the entity is a principal, or to arrange for a third party to provide the underlying goods or services, meaning the entity is an agent. The ASU is effective for the first interim or annual period beginning after December 15, 2017. Early application is permitted though no earlier than the first interim or annual period beginning after December 15, 2016. We do not expect the application of this ASU to materially impact the Company. On April 14, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing , which amends guidance and illustrations in the FASB’s revenue recognition standard issued in ASU 2014-09 regarding the identification of performance obligations and the implementation guidance on licensing arrangements. The ASU is effective for the first interim or annual period beginning after December 15, 2017. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments , which mandates use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that current GAAP requires. The “expected loss” model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology. The ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early application is permitted though no earlier than the first interim or annual period beginning after December 15, 2018. Though we have not completed our assessment of this ASU, we expect the ASU to result in our recognition of higher levels of allowances for loan losses. Our assessment of the estimated amount of such increases remains in process. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments , which seeks to reduce diversity in practice regarding how various cash receipts and payments are reported within the statement of cash flows. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this ASU to materially impact the Company. On October 24, 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory , which requires that an entity recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of the transfer instead of deferring the tax consequences until the asset has been sold to an outside party, as current GAAP requires. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this ASU to materially impact the Company. On January 5, 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business , which amends the definition of a business to exclude acquisitions of groups of assets where substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017 and is applied prospectively. Early application is permitted. We expect that most real estate acquired by the Company subsequent to the ASU’s effective date will be accounted for as asset acquisitions. On January 26, 2017, the FASB issued ASU 2017-04, Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment , which simplifies the method applied for measuring impairment in cases where goodwill is impaired. The ASU specifies that goodwill impairment will be measured as the excess of the reporting unit’s carrying value (inclusive of goodwill) over its fair value, eliminating the requirement that all assets and liabilities of the reporting unit be remeasured individually in connection with measurement of goodwill impairment. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and is applied prospectively. Early application is permitted though no earlier than January 1, 2017. We do not expect the application of this ASU to materially impact the Company. On February 22, 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20) , which clarifies what constitutes an in substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On August 28, 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance regarding the designation and measurement of designated hedging relationships. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018. Early application is permitted. We do not expect the application of this ASU to materially impact the Company.

Acquisitions and Dispositions

Acquisitions and Dispositions	9 Months Ended
	Sep. 30, 2017
Acquisitions and Dispositions
Acquisitions	3. Acquisitions Master Lease Portfolio On September 25, 2017, we acquired 20 retail properties and three industrial properties (the “Master Lease Portfolio”) for a purchase price of $553.3 million, inclusive of $3.7 million of related transaction costs. Concurrently with the acquisition, we leased the properties back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. These properties, which collectively comprise 5.3 million square feet, are geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Utah, Florida, Texas and Minnesota. We utilized $265.9 million in new financing in order to fund the acquisition (as set forth in Note 9). The acquisition was accounted for as an asset acquisition. Investing and Servicing Segment Property Portfolio During the three and nine months ended September 30, 2017, our Investing and Servicing Segment acquired the net equity of one and two commercial real estate properties from CMBS trusts, respectively, for $18.2 million and $37.2 million, respectively. These properties, aggregated with the controlling interests in 24 commercial real estate properties acquired from CMBS trusts during the years ended December 31, 2015 and 2016 for an aggregate acquisition price of $268.5 million, comprise the Investing and Servicing Segment Property Portfolio (the “REIS Equity Portfolio”). When the properties are acquired from CMBS trusts that are consolidated as VIEs on our balance sheet, the acquisitions are reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. We applied the business combination provisions of ASC 805, Business Combinations, in accounting for the REIS Equity Portfolio acquisitions. No goodwill was recognized in connection with the REIS Equity Portfolio acquisitions as the purchase prices did not exceed the fair values of the net assets acquired. A bargain purchase gain of $0.6 million was recognized within change in net assets related to consolidated VIEs in our condensed consolidated statement of operations for the nine months ended September 30, 2017 and $8.8 million for the year ended December 31, 2016 as the fair value of the net assets acquired for certain properties exceeded the purchase price. During the nine months ended September 30, 2017, in accordance with ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments , we adjusted our initial provisional estimates of the acquisition date fair values of the identified assets acquired and liabilities assumed for a certain property acquired within the REIS Equity Portfolio during the year ended December 31, 2016 to reflect new information obtained regarding facts and circumstances that existed at the acquisition date. The following table summarizes the measurement period adjustment applied to the initial provisional acquisition date balance sheet (amounts in thousands): 2016 Acquisition Adjustment Measurement Initial Period Adjusted Assets acquired: Amounts Adjustment Amounts Properties $ 12,087 $ 660 $ 12,747 Intangible assets 4,270 (802) 3,468 Other assets 97 — 97 Total assets acquired 16,454 (142) 16,312 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 1,539 (142) 1,397 Total liabilities assumed 1,539 (142) 1,397 Non-controlling interests 3,084 — 3,084 Net assets acquired $ 11,831 $ — $ 11,831 The net income effect associated with the measurement period adjustment during the nine months ended September 30, 2017 was immaterial. During the three and nine months ended September 30, 2017, we sold two and four properties within the Investing and Servicing Segment for $26.0 million and $40.7 million, respectively, recognizing gain on sale of $11.2 million and $16.3 million, respectively, within gain on sale of investments and other assets in our condensed consolidated statements of operations. During both the three and nine months ended September 30, 2017, $2.4 million of such gains were attributable to non-controlling interests. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired for a purchase price of $758.8 million during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. No goodwill or bargain purchase gains were recognized in connection with the Medical Office Portfolio acquisition as the purchase price equaled the fair value of the net assets acquired. Woodstar Portfolio The Woodstar Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar Portfolio with the final 14 communities acquired during the year ended December 31, 2016 for an aggregate acquisition price of $421.5 million. We assumed federal, state and county sponsored financing and other debt in connection with this acquisition. No goodwill was recognized in connection with the Woodstar Portfolio acquisition as the purchase price did not exceed the fair value of the net assets acquired. A bargain purchase gain of $8.4 million was recognized within other income, net in our consolidated statement of operations for the year ended December 31, 2016 as the fair value of the net assets acquired exceeded the purchase price due to favorable changes in net asset fair values occurring between the date the purchase price was negotiated and the closing date. Ireland Portfolio The Ireland Portfolio was initially comprised of 12 net leased fully occupied office properties and one multi-family property all located in Dublin, Ireland, which the Company acquired during the year ended December 31, 2015. The Ireland Portfolio, which collectively is comprised of approximately 600,000 square feet, included total assets of $518.2 million and assumed debt of $283.0 million at acquisition. Following our acquisition, all assumed debt was immediately extinguished and replaced with new financing of $328.6 million from the Ireland Portfolio Mortgage (as set forth in Note 9). No goodwill or bargain purchase gain was recognized in connection with the Ireland Portfolio acquisition as the purchase price equaled the fair value of the net assets acquired. During the nine months ended September 30, 2017, we sold one office property within the Ireland Portfolio for $3.9 million, recognizing an immaterial gain on sale within gain on sale of investments and other assets in our condensed consolidated statement of operations. Purchase Price Allocations of Business Combinations We applied the business combination provisions of ASC 805, Business Combinations , in accounting for the 2017 REIS Equity Portfolio acquisitions. In doing so, we have recorded all identifiable assets acquired and liabilities assumed as of the acquisition date. These amounts are provisional and may be adjusted during the measurement period, which expires no later than one year from the acquisition date, if new information is obtained that, if known, would have affected the amounts recognized as of the acquisition date. The following table summarizes the identified assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): 2017 REIS Equity Assets acquired: Portfolio Properties $ 34,902 Intangible assets 4,272 Other assets 1 Total assets acquired 39,175 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 1,329 Total liabilities assumed 1,329 Net assets acquired $ 37,846

Loans

Loans	9 Months Ended
	Sep. 30, 2017
Loans
Loans	4. Loans Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option. The following tables summarize our investments in mortgages and loans by subordination class as of September 30, 2017 and December 31, 2016 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) September 30, 2017 Value Amount Coupon (years)(1) First mortgages (2) $ 5,527,219 $ 5,549,909 6.1 % 2.4 Subordinated mortgages (3) 222,990 224,088 10.3 % 2.1 Mezzanine loans (2) 615,562 615,724 10.6 % 1.2 Other 23,218 27,073 8.4 % 4.3 Total loans held-for-investment 6,388,989 6,416,794 Loans held-for-sale, fair value option 608,624 601,051 5.6 % 7.6 Loans transferred as secured borrowings 74,339 75,000 5.8 % 2.5 Total gross loans 7,071,952 7,092,845 Loan loss allowance (loans held-for-investment) (6,618) — Total net loans $ 7,065,334 $ 7,092,845 December 31, 2016 First mortgages (2) $ 4,865,994 $ 4,881,656 5.7 % 2.2 Subordinated mortgages (3) 278,032 293,925 8.9 % 3.3 Mezzanine loans (2) 713,757 714,608 9.6 % 1.8 Total loans held-for-investment 5,857,783 5,890,189 Loans held-for-sale, fair value option 63,279 63,065 5.3 % 10.0 Loans transferred as secured borrowings 35,000 35,000 6.2 % 0.4 Total gross loans 5,956,062 5,988,254 Loan loss allowance (loans held-for-investment) (9,788) — Total net loans $ 5,946,274 $ 5,988,254 (1) Represents the WAL of each respective group of loans as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition. (2) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.1 billion and $964.1 million being classified as first mortgages as of September 30, 2017 and December 31, 2016, respectively. (3) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan. As of September 30, 2017, approximately $5.9 billion, or 92.6%, of our loans held-for-investment were variable rate and paid interest principally at LIBOR plus a weighted-average spread of 5.2%. The following table summarizes our investments in floating rate loans (dollars in thousands): September 30, 2017 December 31, 2016 Carrying Carrying Index Base Rate Value Base Rate Value One-month LIBOR USD 1.2322 % $ 612,994 0.7717 % $ 880,357 LIBOR floor 0.15 - 1.24 % (1) 5,301,987 0.15 - 3.00 % (1) 4,449,861 Total $ 5,914,981 $ 5,330,218 (1) The weighted-average LIBOR floor was 0.57% and 0.36% as of September 30, 2017 and December 31, 2016, respectively. Our loans are typically collateralized by real estate. As a result, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, as well as the financial and operating capability of the borrower. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, we consider the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and discussions with market participants. Our evaluation process, as described above produces an internal risk rating between 1 and 5, which is a weighted average of the numerical ratings in the following categories: (i) sponsor capability and financial condition, (ii) loan and collateral performance relative to underwriting, (iii) quality and stability of collateral cash flows, and (iv) loan structure. We utilize the overall risk ratings as a concise means to monitor any credit migration on a loan as well as on the whole portfolio. While the overall risk rating is generally not the sole factor we use in determining whether a loan is impaired, a loan with a higher overall risk rating would tend to have more adverse indicators of impairment, and therefore would be more likely to experience a credit loss. The rating categories generally include the characteristics described below, but these are utilized as guidelines and therefore not every loan will have all of the characteristics described in each category: Rating Characteristics 1  Sponsor capability and financial condition—Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience.  Loan collateral and performance relative to underwriting—The collateral has surpassed underwritten expectations.  Quality and stability of collateral cash flows—Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix.  Loan structure—LTV does not exceed 65%. The loan has structural features that enhance the credit profile. 2  Sponsor capability and financial condition—Strong sponsorship with experienced management team and a responsibly leveraged portfolio.  Loan collateral and performance relative to underwriting—Collateral performance equals or exceeds underwritten expectations and covenants and performance criteria are being met or exceeded.  Quality and stability of collateral cash flows—Occupancy is stabilized with a diverse tenant mix.  Loan structure—LTV does not exceed 70% and unique property risks are mitigated by structural features. 3  Sponsor capability and financial condition—Sponsor has historically met its credit obligations, routinely pays off loans at maturity, and has a capable management team.  Loan collateral and performance relative to underwriting—Property performance is consistent with underwritten expectations.  Quality and stability of collateral cash flows—Occupancy is stabilized, near stabilized, or is on track with underwriting.  Loan structure—LTV does not exceed 80%. 4  Sponsor capability and financial condition—Sponsor credit history includes missed payments, past due payment, and maturity extensions. Management team is capable but thin.  Loan collateral and performance relative to underwriting—Property performance lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. A sale of the property may be necessary in order for the borrower to pay off the loan at maturity.  Quality and stability of collateral cash flows—Occupancy is not stabilized and the property has a large amount of rollover.  Loan structure—LTV is 80% to 90%. 5  Sponsor capability and financial condition—Credit history includes defaults, deeds‑in‑lieu, foreclosures, and/or bankruptcies.  Loan collateral and performance relative to underwriting—Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Sale proceeds would not be sufficient to pay off the loan at maturity.  Quality and stability of collateral cash flows—The property has material vacancy and significant rollover of remaining tenants.  Loan structure—LTV exceeds 90%. As of September 30, 2017, the risk ratings for loans subject to our rating system, which excludes loans for which the fair value option has been elected, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans Other For-Sale Borrowings Total Loans 1 $ 2,205 $ — $ — $ 20,446 $ — $ — $ 22,651 0.3 % 2 2,109,411 4,424 132,843 — — — 2,246,678 31.8 % 3 3,164,497 218,566 423,779 2,772 — 74,339 3,883,953 54.9 % 4 194,916 — 58,940 — — — 253,856 3.6 % 5 56,190 — — — — — 56,190 0.8 % N/A — — — — 608,624 — 608,624 8.6 % $ 5,527,219 $ 222,990 $ 615,562 $ 23,218 $ 608,624 $ 74,339 $ 7,071,952 100.0 % As of December 31, 2016, the risk ratings for loans subject to our rating system, which excludes loans for which the fair value option has been elected, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans Transferred % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans For-Sale Borrowings Total Loans 1 $ 921 $ — $ — $ — $ — $ 921 — % 2 1,092,731 27,069 194,803 — 35,000 1,349,603 22.6 % 3 3,348,874 250,963 425,972 — — 4,025,809 67.6 % 4 365,151 — 92,982 — — 458,133 7.7 % 5 58,317 — — — — 58,317 1.0 % N/A — — — 63,279 — 63,279 1.1 % $ 4,865,994 $ 278,032 $ 713,757 $ 63,279 $ 35,000 $ 5,956,062 100.0 % After completing our impairment evaluation process as of September 30, 2017, we concluded that none of our loans were impaired and therefore no individual loan impairment charges were required on any individual loans, as we expect to collect all outstanding principal and interest. None of our loans were 90 days or greater past due as of September 30, 2017. In accordance with our policies, we record an allowance for loan losses equal to (i) 1.5% of the aggregate carrying amount of loans rated as a “4,” plus (ii) 5% of the aggregate carrying amount of loans rated as a “5, ” plus (iii) impaired loan reserves, if any. The following table presents the activity in our allowance for loan losses (amounts in thousands): For the Nine Months Ended September 30, 2017 2016 Allowance for loan losses at January 1 $ 9,788 $ 6,029 Provision for loan losses (3,170) 3,395 Charge-offs — — Recoveries — — Allowance for loan losses at September 30 $ 6,618 $ 9,424 Recorded investment in loans related to the allowance for loan loss $ 310,046 $ 488,576 The activity in our loan portfolio was as follows (amounts in thousands): For the Nine Months Ended September 30, 2017 2016 Balance at January 1 $ 5,946,274 $ Acquisitions/originations/additional funding 3,722,624 2,795,772 Capitalized interest (1) 55,987 65,003 Basis of loans sold (2) (1,024,964) (1,359,780) Loan maturities/principal repayments (1,742,494) (2,188,583) Discount accretion/premium amortization 27,014 38,809 Changes in fair value 45,484 70,122 Unrealized foreign currency remeasurement gain (loss) 31,395 (37,332) Change in loan loss allowance, net 3,170 (3,395) Transfer to/from other asset classifications 844 36,566 (3) Balance at September 30 $ 7,065,334 $ 5,680,699 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 11 for additional disclosure on these transactions. (3) Primarily represents commercial mortgage loans acquired from CMBS trusts which are consolidated as VIEs on our balance sheet.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2017
Investment Securities
Investment Securities	5. Investment Securities Investment securities were comprised of the following as of September 30, 2017 and December 31, 2016 (amounts in thousands): Carrying Value as of September 30, 2017 December 31, 2016 RMBS, available-for-sale $ 253,252 $ 253,915 CMBS, fair value option (1) 1,026,634 990,570 Held-to-maturity (“HTM”) securities 411,196 509,980 Equity security, fair value option 13,529 12,177 Subtotal — Investment securities 1,704,611 1,766,642 VIE eliminations (1) (1,002,793) (959,024) Total investment securities $ 701,818 $ 807,618 (1) Certain fair value option CMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. Purchases, sales and principal collections for all investment securities were as follows (amounts in thousands): RMBS, CMBS, fair HTM Equity available-for-sale value option Securities Security Total Three Months Ended September 30, 2017 Purchases (1) $ — $ 11,798 $ 50,000 $ — $ 61,798 Sales (2) — — — — — Principal collections 10,307 1,666 111,671 — 123,644 Three Months Ended September 30, 2016 Purchases (1) $ 8,868 $ — $ — $ — $ 8,868 Sales (2) — 17,456 (5) — — 17,456 Principal collections 9,917 12,289 566 — 22,772 RMBS, CMBS, fair HTM Equity available-for-sale value option Securities Security Total Nine Months Ended September 30, 2017 Purchases (3) $ 7,433 $ 11,798 $ 50,000 $ — $ 69,231 Sales (4) — 11,134 — — 11,134 Principal collections 29,090 8,754 — Nine Months Ended September 30, 2016 Purchases (3) $ 97,204 $ 57,576 $ $ — $ Sales (4) — 18,725 (5) — — 18,725 Principal collections 32,925 31,734 5,657 — 70,316 (1) During the three months ended September 30, 2017 and 2016, we purchased $30.9 million and $25.6 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $19.1 million and $25.6 million, respectively, of this amount is eliminated and reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (2) During the three months ended September 30, 2017 and 2016, we sold $1.5 million and $17.5 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $1.5 million of our sales during the three months ended September 30, 2017 is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows. During the three months ended September 30, 2016, none of our sales were eliminated due to the consolidation of securitization VIEs. (3) During the nine months ended September 30, 2017 and 2016, we purchased $92.6 million and $126.9 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $80.8 million and $69.3 million, respectively, of this amount is eliminated and reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (4) During the nine months ended September 30, 2017 and 2016, we sold $22.8 million and $19.3 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $11.7 million and $0.6 million, respectively, of this amount is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (5) Settlement of $14.9 million occurred subsequent to September 30, 2016. We account for all investment securities transactions on a trade-date basis. RMBS, Available-for-Sale The Company classified all of its RMBS as available-for-sale as of September 30, 2017 and December 31, 2016. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”). The tables below summarize various attributes of our investments in available-for-sale RMBS as of September 30, 2017 and December 31, 2016 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Purchase Recorded Gross Gross Net Amortized Credit Amortized Non-Credit Unrealized Unrealized Fair Value Cost OTTI Cost OTTI Gains Losses Adjustment Fair Value September 30, 2017 RMBS $ 207,492 $ (9,897) $ 197,595 $ (95) $ 55,766 $ (14) $ 55,657 $ 253,252 December 31, 2016 RMBS $ 219,171 $ (10,185) $ 208,986 $ (94) $ 45,113 $ (90) $ 44,929 $ Weighted Average Coupon (1) Weighted Average WAL September 30, 2017 RMBS 2.5 % B- 6.4 December 31, 2016 RMBS 2.1 % B 6.1 (1) Calculated using the September 30, 2017 and December 31, 2016 one-month LIBOR rate of 1.232% and 0.772%, respectively, for floating rate securities. (2) Represents the WAL of each respective group of securities as of the respective balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. As of September 30, 2017, approximately $211.6 million, or 83.6%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.21%. As of December 31, 2016, approximately $211.1 million, or 83.2%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.22%. We purchased all of the RMBS at a discount that will be accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of these discounts. The following table contains a reconciliation of aggregate principal balance to amortized cost for our RMBS as of September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Principal balance $ 379,432 $ 399,883 Accretable yield (58,763) (64,290) Non-accretable difference (123,074) (126,607) Total discount (181,837) (190,897) Amortized cost $ 197,595 $ 208,986 The principal balance of credit deteriorated RMBS was $356.2 million and $371.5 million as of September 30, 2017 and December 31, 2016, respectively. Accretable yield related to these securities totaled $51.8 million and $55.9 million as of September 30, 2017 and December 31, 2016, respectively. The following table discloses the changes to accretable yield and non-accretable difference for our RMBS during the three and nine months ended September 30, 2017 (amounts in thousands): Non-Accretable Three Months Ended September 30, 2017 Accretable Yield Difference Balance as of July 1, 2017 $ 59,777 $ 126,708 Accretion of discount (3,187) — Principal write-downs, net — (1,461) Purchases — — Sales — — OTTI — — Transfer to/from non-accretable difference 2,173 (2,173) Balance as of September 30, 2017 $ 58,763 $ 123,074 Nine Months Ended September 30, 2017 Balance as of January 1, 2017 $ 64,290 $ 126,607 Accretion of discount (10,375) — Principal write-downs, net — (3,828) Purchases 311 4,723 Sales — — OTTI 109 — Transfer to/from non-accretable difference 4,428 (4,428) Balance as of September 30, 2017 $ 58,763 $ 123,074 We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.5 million for the three months ended September 30, 2017 and 2016 and $1.4 million and $1.2 million for the nine months ended September 30, 2017 and 2016, respectively, which has been recorded as management fees in the accompanying condensed consolidated statements of operations. The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016, and for which OTTIs (full or partial) have not been recognized in earnings (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a loss less than loss greater than loss less than loss greater than 12 months 12 months 12 months 12 months As of September 30, 2017 RMBS $ 10,463 $ 645 $ (80) $ (29) As of December 31, 2016 RMBS $ 8,819 $ 957 $ (90) $ (94) As of both September 30, 2017 and December 31, 2016, there were three securities with unrealized losses reflected in the table above. After evaluating these securities and recording adjustments for credit-related OTTI, we concluded that the remaining unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, which represent most of the OTTI we record on securities, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or impairments could be materially different from what is currently projected and/or reported. CMBS, Fair Value Option As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for the Investing and Servicing Segment’s CMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of September 30, 2017, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, before consolidation of securitization VIEs, were $1.0 billion and $4.1 billion, respectively. The $1.0 billion fair value balance represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $23.8 million at September 30, 2017) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option CMBS. As of September 30, 2017, none of our CMBS where we have elected the fair value option were variable rate. HTM Securities The table below summarizes unrealized gains and losses of our investments in HTM securities as of September 30, 2017 and December 31, 2016 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value September 30, 2017 CMBS $ 390,966 $ 2,446 $ (5,875) $ 387,537 Preferred interests 20,230 675 — 20,905 Total $ 411,196 $ 3,121 $ (5,875) $ 408,442 December 31, 2016 CMBS $ 490,107 $ 2,106 $ (8,648) $ 483,565 Preferred interests 19,873 727 — 20,600 Total $ 509,980 $ 2,833 $ (8,648) $ 504,165 The table below summarizes the maturities of our HTM CMBS and our HTM preferred equity interests in limited liability companies that own commercial real estate as of September 30, 2017 (amounts in thousands): Preferred CMBS Interests Total Less than one year $ 129,282 $ — $ 129,282 One to three years 261,684 — 261,684 Three to five years — — — Thereafter — 20,230 20,230 Total $ 390,966 $ 20,230 $ 411,196 Equity Security, Fair Value Option During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. We have elected to report the investment using the fair value option because the shares are listed on an exchange, which allows us to determine the fair value using a quoted price from an active market, and also due to potential lags in reporting resulting from differences in the respective regulatory requirements. The fair value of the investment remeasured in USD was $13.5 million and $12.2 million as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, our shares represent an approximate 2% interest in SEREF.

Properties

Properties	9 Months Ended
	Sep. 30, 2017
Properties
Properties	6. Propertie Our properties include the Master Lease Portfolio, Medical Office Portfolio, Woodstar Portfolio, REIS Equity Portfolio and Ireland Portfolio as discussed in Note 3. The table below summarizes our properties held as of September 30, 2017 and December 31, 2016 (dollars in thousands): Depreciable Life September 30, 2017 December 31, 2016 Property Segment Land and land improvements 0 – 15 years $ 526,591 $ 385,860 Buildings and building improvements 5 – 45 years 1,755,511 1,291,531 Furniture & fixtures 3 – 7 years 26,038 23,035 Investing and Servicing Segment Land and land improvements 0 – 15 years 90,263 89,425 Buildings and building improvements 3 – 40 years 210,183 195,178 Furniture & fixtures 2 – 5 years 992 1,256 Properties, cost 2,609,578 1,986,285 Less: accumulated depreciation (88,236) (41,565) Properties, net $ 2,521,342 $ 1,944,720 During the three and nine months ended September 30, 2017, we sold two and five operating properties for $26.0 million and $44.6 million, respectively, which resulted in gains of $11.2 million and $16.4 million, respectively, recognized within gain on sale of investments and other assets in our condensed consolidated statement of operations. During both the three and nine months ended September 30, 2017, $2.4 million of such gains were attributable to non-controlling interests. There were no properties sold during the nine months ended September 30, 2016.

Investment in Unconsolidated En

Investment in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2017
Investment in Unconsolidated Entities
Investment in Unconsolidated Entities	7. Investment in Unconsolidated Entities The table below summarizes our investments in unconsolidated entities as of September 30, 2017 and December 31, 2016 (dollars in thousands): Participation / Carrying value as of Ownership % (1) September 30, 2017 December 31, 2016 Equity method: Retail Fund (see Note 15) 33% $ 109,607 (2) $ 124,977 Investor entity which owns equity in an online real estate company 50% 75,249 21,677 Equity interests in commercial real estate 16% - 50% 23,310 23,297 Various 25% - 50% 7,015 6,640 215,181 176,591 Cost method: Equity interest in a servicing and advisory business 6% 12,234 12,234 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 3% 6,810 6,555 28,269 28,014 $ 243,450 $ 204,605 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) During the nine months ended September 30, 2017, we funded $15.5 million in capital commitments. During the three months ended September 30, 2017, the Retail Fund, an investment company that measures its assets at fair value on a recurring basis, reported unrealized decreases in the fair value of its real estate properties as a result of lender appraisals obtained by the Retail Fund. We report our interest in the Retail Fund at its liquidation value, which resulted in a $33.7 million decrease to our investment. This amount was recognized within earnings from unconsolidated entities in our condensed consolidated statements of operations during the three and nine months ended September 30, 2017. In September 2017, the investor entity which owns equity in an online real estate company sold approximately 88% of its interest in the online real estate company. During the three and nine months ended September 30, 2017, we recognized $28.2 million and $53.9 million, respectively, of income from our investment in this investor entity as a result of the sale (see related income tax effect in Note 20) within earnings from unconsolidated entities in our condensed consolidated statements of operations. Subsequent to September 30, 2017, we received a pre-tax cash distribution of $66.0 million from the investor entity related to the sale. There were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of September 30, 2017.

Goodwill and Intangibles

Goodwill and Intangibles	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangibles
Goodwill and Intangibles	8. Goodwil Goodwill Goodwill at September 30, 2017 and December 31, 2016 represented the excess of consideration transferred over the fair value of net assets of LNR Property LLC (“LNR”) acquired on April 19, 2013. The goodwill recognized is attributable to value embedded in LNR’s existing platform, which includes an international network of commercial real estate asset managers, work-out specialists, underwriters and administrative support professionals as well as proprietary historical performance data on commercial real estate assets. Intangible Assets Servicing Rights Intangibles In connection with the LNR acquisition, we identified domestic and European servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. During the year ended December 31, 2016, we contributed our European servicing and advisory business to an unrelated entity in exchange for a non-controlling equity interest in that entity and therefore no longer have any European servicing rights. At September 30, 2017 and December 31, 2016, the balance of the domestic servicing intangible was net of $26.6 million and $34.2 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of September 30, 2017 and December 31, 2016, the domestic servicing intangible had a balance of $60.4 million and $89.3 million, respectively, which represents our economic interest in this asset. Lease Intangibles In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties. The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of September 30, 2017 and December 31, 2016 (amounts in thousands): As of September 30, 2017 As of December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 33,781 $ — $ 33,781 $ 55,082 $ — $ 55,082 In-place lease intangible assets 181,636 (59,308) 122,328 175,409 (38,532) 136,877 Favorable lease intangible assets 32,070 (6,314) 25,756 30,459 (3,170) 27,289 Total net intangible assets $ 247,487 $ (65,622) $ 181,865 $ 260,950 $ (41,702) $ 219,248 The following table summarizes the activity within intangible assets for the nine months ended September 30, 2017 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2017 $ 55,082 $ 136,877 $ 27,289 $ 219,248 Acquisition of additional REIS Equity Portfolio properties — 3,810 462 4,272 Amortization — (20,098) (2,940) (23,038) Sales — (367) (109) (476) Foreign exchange gain — 3,908 1,044 4,952 Impairment (1) — (981) (9) (990) Changes in fair value due to changes in inputs and assumptions (21,301) — — (21,301) Measurement period adjustments — (821) 19 (802) Balance as of September 30, 2017 $ 33,781 $ 122,328 $ 25,756 $ 181,865 (1) Impairment of intangible lease assets is recognized within other expense in our condensed consolidated statements of operations. The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2017 (remainder of) $ 7,556 2018 27,711 2019 21,288 2020 15,908 2021 13,623 Thereafter 61,998 Total $ 148,084

Secured Financing Agreements

Secured Financing Agreements	9 Months Ended
	Sep. 30, 2017
Secured financing agreements
Secured Financing Agreements
Secured Financing Agreements	9. Secured Financing Agreements The following table is a summary of our secured financing agreements in place as of September 30, 2017 and December 31, 2016 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum September 30, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2017 2016 Lender 1 Repo 1 (b) (b) LIBOR + 1.75% to 5.75% $ 1,534,069 $ $ $ 944,712 Lender 2 Repo 1 Oct 2017 Oct 2020 LIBOR + 1.75% to 2.75% 350,508 500,000 236,055 132,941 Lender 3 Repo 1 May 2018 May 2019 LIBOR + 2.75% to 3.10% 110,086 76,820 76,820 78,288 Lender 4 Repo 2 Dec 2018 Dec 2020 LIBOR + 2.00% to 3.25% 571,746 (c) 221,544 166,394 Lender 6 Repo 1 Aug 2020 N/A LIBOR + 2.50% to 2.75% 724,164 600,000 475,555 182,586 Lender 6 Repo 2 Nov 2019 Nov 2020 GBP LIBOR + 2.75% 173,516 121,280 121,280 121,509 Lender 9 Repo 1 Dec 2017 Dec 2018 LIBOR + 1.65% 340,620 254,447 254,447 283,575 Lender 10 Repo 1 Mar 2020 Mar 2022 LIBOR + 2.00% to 2.75% 169,733 140,000 136,800 — Lender 11 Repo 1 Jun 2019 Jun 2020 LIBOR + 2.75% — 200,000 — — Lender 11 Repo 2 Sep 2018 Sep 2022 LIBOR + 2.25% to 2.75% — 250,000 — — Lender 7 Secured Financing Jul 2018 Jul 2019 LIBOR + 2.75% (d) 46,800 650,000 (e) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% 30,147 75,000 18,226 43,555 Conduit Repo 2 Nov 2017 N/A LIBOR + 2.25% 53,751 150,000 40,842 14,944 Conduit Repo 3 Feb 2018 N/A LIBOR + 2.10% 136,254 150,000 103,678 — Conduit Repo 4 Oct 2017 Oct 2020 LIBOR + 2.25% — 100,000 — — MBS Repo 1 (f) (f) LIBOR + 1.90% 10,000 6,510 6,510 21,052 MBS Repo 2 Jun 2020 N/A LIBOR/EURIBOR + 2.00% to 2.95% 261,066 191,184 191,184 239,434 MBS Repo 3 (g) (g) LIBOR + 1.32% to 1.95% 384,546 254,668 254,668 285,209 MBS Repo 4 (h) N/A LIBOR + 1.20% to 1.90% 179,384 225,000 2,000 5,633 Investing and Servicing Segment Property Mortgages Feb 2018 to Jun 2026 N/A Various 245,094 201,238 177,217 164,611 Ireland Portfolio Mortgage May 2020 N/A EURIBOR + 1.69% 491,298 344,525 344,525 309,246 Woodstar Portfolio Mortgages Nov 2025 to Oct 2026 N/A 3.72% to 3.97% 369,519 276,748 276,748 276,748 Woodstar Portfolio Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 308,805 133,967 133,967 135,584 Medical Office Portfolio Mortgages Dec 2021 to Feb 2022 Dec 2023 to Feb 2024 LIBOR + 2.50% (i) 741,304 527,124 497,613 491,197 Master Lease Portfolio Mortgages Oct 2027 N/A 4.36% to 4.38% 471,762 265,900 265,900 — Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (d) 992,366 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (d) — 100,000 — — FHLB Feb 2021 N/A LIBOR + 0.15% to 0.34% 338,956 250,000 250,000 — $ 9,035,494 $ Unamortized net premium 2,579 2,640 Unamortized deferred financing costs (43,604) (45,732) $ $ (a) Subject to certain conditions as defined in the respective facility agreement. (b) Maturity date for borrowings collateralized by loans is September 2018 before extension options and September 2021 assuming exercise of extension options. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed September 2025. (c) The initial maximum facility size of $600.0 million may be increased to $1.0 billion at our option, subject to certain conditions. (d) Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. (e) The initial maximum facility size of $450.0 million may be increased to $650.0 million, subject to certain conditions. (f) Facility carries a rolling 11 month term which may reset monthly with the lender’s consent not to exceed December 2018. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of September 30, 2017. (g) Facility carries a rolling 12 month term which may reset monthly with the lender’s consent. Current maturity is September 2018. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of September 30, 2017. (h) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2018. (i) Subject to a 25 basis point floor. In the normal course of business, the Company is in discussions with its lenders to extend or amend any financing facilities which contain near term expirations. During the nine months ended September 30, 2017, we entered into two mortgage loans with maximum borrowings of $38.3 million to finance commercial real estate previously acquired by our Investing and Servicing Segment. As of September 30, 2017, these facilities carry a remaining weighted average term of 4.6 years with floating annual interest rates of LIBOR + 2.00%. In February 2017, we entered into a mortgage loan with maximum borrowings of $7.3 million as part of the Medical Office Portfolio Mortgages. This loan carries a five year initial term with two 12 month extension options and an annual interest rate of LIBOR + 2.50%. In March 2017, we entered into a $125.0 million repurchase facility (“Lender 10 Repo 1”) to finance certain loans held-for-investment. The facility carries a three year initial term with two one-year extension options and an annual interest rate of LIBOR + 2.00% to 2.75%. In May 2017, we upsized the maximum facility size to $140.0 million utilizing an available accordion feature. In March 2017, we amended the Lender 3 Repo 1 facility to extend the maturity from May 2017 to May 2018. In June 2017, we entered into a $200.0 million repurchase facility (“Lender 11 Repo 1”) to finance certain mortgage loans held-for-sale. The facility carries a two year initial term with a one-year extension option and an initial annual interest rate of LIBOR + 2.75%. In July 2017, we acquired a captive insurance entity that is a member of the Federal Home Loan Bank (“FHLB”) of Chicago. This membership, which expires in February 2021, provides us additional financing capacity from the FHLB of Chicago on qualifying collateral. The facility has an annual interest rate of LIBOR + 0.15% to 0.34% and expires in February 2021. As of September 30, 2017, the facility had outstanding borrowings of $250.0 million. In September 2017, we entered into a $250.0 million repurchase facility (“Lender 11 Repo 2”) to finance certain loans held-for-investment. The facility carries a one year initial term with four one-year extension options and an annual interest rate of LIBOR + 2.25% to 2.75%. In September 2017, we entered into two mortgage loans with total borrowings of $265.9 million (“Master Lease Portfolio Mortgages”) to finance the acquisition of the Master Lease Portfolio. The loans carry ten year terms and fixed annual interest rates of 4.36% and 4.38%, respectively. In September 2017, we amended the Lender 6 Repo 1 facility to upsize available borrowings from $500.0 million to $600.0 million and extend the maturity from August 2019 to August 2020. Our secured financing agreements contain certain financial tests and covenants. As of September 30, 2017, we were in compliance with all such covenants. The following table sets forth our five‑year principal repayments schedule for secured financings assuming no defaults and excluding loans transferred as secured borrowings. Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands): Repurchase Other Secured Agreements Financing Total 2017 (remainder of) $ 781,261 $ 14,461 $ 795,722 2018 988,168 76,952 1,065,120 2019 395,715 1,355 397,070 2020 1,041,480 358,102 1,399,582 2021 2,289 565,815 568,104 Thereafter 82,611 1,247,511 1,330,122 Total $ 3,291,524 $ 2,264,196 $ 5,555,720 For the three and nine months ended September 30, 2017, approximately $5.0 million and $14.4 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2016, approximately $3.9 million and $12.1 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of September 30, 2017 and December 31, 2016 (amounts in thousands): Class of Collateral September 30, 2017 December 31, 2016 Loans held-for-investment $ 2,692,642 $ 1,890,925 Loans held-for-sale 144,520 34,024 Investment securities 454,362 551,328 $ 3,291,524 $ 2,476,277 We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 72% of these agreements, do not permit valuation adjustments based on capital markets activity. Instead, margin calls on these facilities are limited to collateral-specific credit marks. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For repurchase agreements containing margin call provisions for general capital markets activity, approximately 15% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreements.

Unsecured Senior Notes

Unsecured Senior Notes	9 Months Ended
	Sep. 30, 2017
Convertible Senior Notes
Convertible Senior Notes
Unsecured Senior Notes	10. Unsecured Senior Notes The following table is a summary of our unsecured senior notes outstanding as of September 30, 2017 and December 31, 2016 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization September 30, 2017 December 31, 2016 2017 Convertible Notes 3.75 % 5.87 % 10/15/2017 years $ 411,885 $ 411,885 2018 Convertible Notes 4.55 % 6.10 % 3/1/2018 years 369,981 599,981 2019 Convertible Notes 4.00 % 5.35 % 1/15/2019 years 341,363 341,363 2021 Senior Notes 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 — Total principal amount 2,073,229 2,053,229 Unamortized discount—Convertible Notes (14,268) (26,135) Unamortized discount—Senior Notes (8,420) (9,728) Unamortized deferred financing costs (6,018) (5,822) Carrying amount of debt components $ 2,044,523 $ 2,011,544 Carrying amount of conversion option equity components recorded in additional paid-in capital $ 31,638 $ 45,988 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible notes, the value of which reduced the initial liability and was recorded in additional paid‑in capital. Senior Notes Due 2021 On December 16, 2016, we issued $700.0 million of 5.00% Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes mature on December 15, 2021. Prior to September 15, 2021, we may redeem some or all of the 2021 Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 15, 2021, we may redeem some or all of the 2021 Notes at a price equal to 100% of the principal amount thereof. In addition, we may redeem up to 35% of the 2021 Notes at the applicable redemption prices using the proceeds of certain equity offerings. Convertible Senior Notes On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Notes”) resulting in gross proceeds of $247.5 million. At issuance, we allocated $243.7 million and $3.8 million of the carrying value of the 2023 Notes to its debt and equity components, respectively. Also on March 29, 2017, the proceeds from the issuance of the 2023 Notes were used to repurchase $230.0 million of the 4.55% Convertible Senior Notes due 2018 (the “2018 Notes”) for $250.7 million. The repurchase price was allocated between the fair value of the liability component and the fair value of the equity component of the 2018 Notes at the repurchase date. The portion of the repurchase price attributable to the equity component totaled $18.1 million and was recognized as a reduction of additional paid-in capital during the nine months ended September 30, 2017. The portion of the repurchase price attributable to the liability component exceeded the net carrying amount of the liability component by $5.9 million, which was recognized as a loss on extinguishment of debt in our condensed consolidated statement of operations during the nine months ended September 30, 2017. The repurchase of the 2018 Notes was not considered part of the repurchase program approved by our board of directors (refer to Note 16) and therefore does not reduce our available capacity for future repurchases under the repurchase program. There were no repurchases of Convertible Notes during the nine months ended September 30, 2016. On October 8, 2014, we issued $431.3 million of 3.75% Convertible Senior Notes due 2017 (the “2017 Notes”). On February 15, 2013, we issued $600.0 million of 4.55% Convertible Senior Notes due 2018 (the “2018 Notes”). On July 3, 2013, we issued $460.0 million of 4.00% Convertible Senior Notes due 2019 (the “2019 Notes”). The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2017 (amounts in thousands, except rates): September 30, 2017 Conversion Spread Value - Shares (3) Conversion Conversion For the Three Months Ended September 30, For the Nine Months Ended September 30, Rate (1) Price (2) 2017 2016 2017 2016 2017 Notes 41.7397 $ 23.96 — — — — 2018 Notes 48.0666 $ 20.80 742 1,595 733 1,743 2019 Notes 50.7031 $ 19.72 1,571 1,850 1,551 2,023 2023 Notes 38.5959 $ 25.91 — — — — 2,313 3,445 2,284 3,766 (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of Convertible Notes converted, as adjusted in accordance with the indentures governing the Convertible Notes (including the applicable supplemental indentures) as a result of the spin-off of our former single family residential segment to our stockholders in January 2014 and cash dividend payments. (2) As of September 30, 2017 and 2016, the market price of the Company’s common stock was $21.72 and $22.52 per share, respectively. (3) The conversion spread value represents the portion of the convertible senior notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion. The if-converted values of the 2018 Notes and 2019 Notes exceeded their principal amounts by $16.4 million and $34.6 million, respectively, at September 30, 2017 as the closing market price of the Company’s common stock of $21.72 per share exceeded the implicit conversion prices of $20.80 and $19.72 per share, respectively. However, the if‑converted values of the 2017 Notes and 2023 Notes were less than their principal amounts by $38.5 million and $40.4 million, respectively, at September 30, 2017 as the closing market price of the Company’s common stock was less than the implicit conversion prices of $23.96 and $25.91 per share, respectively. The Company has asserted its intent and ability to settle the principal amount of the Convertible Notes in cash. As such, only the conversion spread value, if any, is included in the computation of diluted EPS. Conditions for Conversion Prior to July 15, 2018 for the 2019 Notes and October 1, 2022 for the 2023 Notes, those Convertible Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is at least 110%, in the case of the 2023 Notes, or 130%, in the case of the 2019 Notes, of the conversion price of the respective Convertible Notes for at least 20 out of 30 trading days prior to the end of the preceding fiscal quarter, (2) the trading price of the Convertible Notes is less than 98% of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five consecutive trading day period, (3) the Company issues certain equity instruments at less than the 10-day average closing market price of its common stock or the per-share value of certain distributions exceeds the market price of the Company’s common stock by more than 10% or (4) certain other specified corporate events (significant consolidation, sale, merger, share exchange, fundamental change, etc.) occur. On or after July 15, 2018, in the case of the 2019 Notes, and October 1, 2022, in the case of the 2023 Notes, holders may convert each of their Convertible Notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. On September 1, 2017, the 2018 Notes entered the open conversion period and may be converted at any time through their maturity date of March 1, 2018. In October 2017, we repaid the full principal amount of the 2017 Notes in cash upon their maturity.

Loan Securitization_Sale Activi

Loan Securitization/Sale Activities	9 Months Ended
	Sep. 30, 2017
Loan Securitization/Sale Activities
Loan Securitization/Sale Activities	11. Loan Securitization/Sale Activities As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transfer of control. Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE. In certain instances, we retain a subordinated interest in the VIE and serve as special servicer for the VIE. The following summarizes the fair value and par value of loans sold from our conduit platform, as well as the amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with these loans for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fair value of loans sold $ 517,351 $ 648,179 $ 987,828 $ Par value of loans sold 498,022 599,997 938,879 Repayment of repurchase agreements 376,687 366,268 709,666 709,049 Within the Lending Segment, we originate or acquire loans and then subsequently sell a portion, which can be in various forms including first mortgages, A-Notes, senior participations and mezzanine loans. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. In certain instances, we continue to service the loan following its sale. The following table summarizes our loans sold and loans transferred as secured borrowings by the Lending Segment net of expenses (amounts in thousands): Loan Transfers Loan Transfers Accounted Accounted for as Secured for as Sales Borrowings Face Amount Proceeds Face Amount Proceeds For the Three Months Ended September 30, 2017 $ — $ — $ 75,000 $ 74,200 2016 116,000 115,157 — — For the Nine Months Ended September 30, 2017 $ 38,750 $ 37,079 $ 75,000 $ 74,200 2016 238,514 236,433 — — During the three and nine months ended September 30, 2017 and 2016, gains (losses) recognized by the Lending Segment on sales of loans were not material.

Derivatives and Hedging Activit

Derivatives and Hedging Activity	9 Months Ended
	Sep. 30, 2017
Derivatives and Hedging Activity
Derivatives and Hedging Activity	12. Derivatives and Hedging Activity Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. Refer to Note 13 to the consolidated financial statements included in our Form 10-K for further discussion of our risk management objectives and policies. Designated Hedges In connection with our repurchase agreements, we have entered into four outstanding interest rate swaps that have been designated as cash flow hedges of the interest rate risk associated with forecasted interest payments. As of September 30, 2017, the aggregate notional amount of our interest rate swaps designated as cash flow hedges of interest rate risk totaled $40.0 million. Under these agreements, we will pay fixed monthly coupons at fixed rates ranging from 0.64% to 1.52% of the notional amount to the counterparty and receive floating rate LIBOR. Our interest rate swaps designated as cash flow hedges of interest rate risk have maturities ranging from November 2017 to May 2021. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2017 and 2016, we did not recognize any hedge ineffectiveness in earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the associated variable-rate debt. Over the next 12 months, we estimate that an immaterial amount will be reclassified as a decrease to interest expenses. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of 44 months. Non-designated Hedges We have entered into a series of forward contracts whereby we agreed to sell an amount of foreign currency for an agreed upon amount of USD at various dates through July 2020. We entered into these forward contracts to economically fix the USD amounts of foreign denominated cash flows expected to be received by us related to certain foreign denominated loan investments and properties. The following table summarizes our non-designated foreign exchange (“Fx”) forwards, interest rate contracts, and credit index instruments as of September 30, 2017 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") (1) 44 283,394 EUR November 2017 – June 2020 Fx contracts – Sell Pounds Sterling ("GBP") 129 263,925 GBP October 2017 – July 2020 Interest rate swaps – Paying fixed rates 30 815,730 USD April 2019 – September 2027 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 8 68,194 USD June 2018 – October 2021 Credit index instruments 10 59,000 USD September 2058 – November 2059 Total 223 (1) Includes 33 Fx contracts entered into to hedge our Euro currency exposure created by our acquisition of the Ireland Portfolio. As of September 30, 2017, these contracts have an aggregate notional amount of €231.1 million and varying maturities through June 2020. The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) as of in a Liability Position (2) as of September 30, December 31, September 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate swaps $ 33 $ 30 $ 2 $ 56 Total derivatives designated as hedging instruments 33 30 2 56 Derivatives not designated as hedging instruments: Interest rate contracts 23,961 26,591 — 3,484 Foreign exchange contracts 13,644 62,295 22,888 364 Credit index instruments 655 445 — — Total derivatives not designated as hedging instruments 38,260 89,331 22,888 3,848 Total derivatives $ 38,293 $ 89,361 $ 22,890 $ 3,904 (1) Classified as derivative assets in our condensed consolidated balance sheets. (2) Classified as derivative liabilities in our condensed consolidated balance sheets. The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations and of comprehensive income for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Gain (Loss) Gain (Loss) Reclassified Gain (Loss) Recognized from AOCI Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain (Loss) For the Three Months Ended September 30, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2017 $ (3) $ 19 $ — Interest expense 2016 $ 107 $ (78) $ — Interest expense For the Nine Months Ended September 30, 2017 $ 45 $ (11) $ — Interest expense 2016 $ (397) $ (261) $ — Interest expense Amount of Gain (Loss) Amount of Gain (Loss) Recognized in Income for the Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Recognized in Income 2017 2016 2017 2016 Interest rate contracts Loss on derivative financial instruments $ (3,836) $ (626) $ (10,190) $ (25,899) Foreign exchange contracts Loss on derivative financial instruments (19,650) (189) (54,814) 21,160 Credit index instruments Loss on derivative financial instruments (738) (1,513) (1,155) (2,054) $ (24,224) $ (2,328) $ (66,159) $ (6,793)

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	9 Months Ended
	Sep. 30, 2017
Offsetting Assets and Liabilities
Offsetting Assets and Liabilities	13. Offsetting Assets and Liabilities The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (iv) Gross Amounts Not Offset in the Statement (ii) (iii) = (i) - (ii) of Financial Position Gross Amounts Net Amounts Cash (i) Offset in the Presented in Collateral Gross Amounts Statement of the Statement of Financial Received / (v) = (iii) - (iv) Recognized Financial Position Financial Position Instruments Pledged Net Amount As of September 30, 2017 Derivative assets $ 38,293 $ — $ 38,293 $ 13,677 $ — $ 24,616 Derivative liabilities $ 22,890 $ — $ 22,890 $ 13,677 $ 6,859 $ 2,354 Repurchase agreements 3,291,524 — 3,291,524 3,291,524 — — $ 3,314,414 $ — $ 3,314,414 $ 3,305,201 $ 6,859 $ 2,354 As of December 31, 2016 Derivative assets $ 89,361 $ — $ 89,361 $ 491 $ — $ 88,870 Derivative liabilities $ 3,904 $ — $ 3,904 $ 491 $ 3,413 $ — Repurchase agreements 2,476,277 — 2,476,277 2,476,277 — — $ 2,480,181 $ — $ 2,480,181 $ 2,476,768 $ 3,413 $ —

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2017
Variable Interest Entities
Variable Interest Entities	14. Variable Interest Entities Investment Securities As discussed in Note 2, we evaluate all of our investments and other interests in entities for consolidation, including our investments in CMBS and our retained interests in securitization transactions we initiated, all of which are generally considered to be variable interests in VIEs. Securitization VIEs consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to us as the primary beneficiary. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. VIEs in which we are the Primary Beneficiary The inclusion of the assets and liabilities of securitization VIEs in which we are deemed the primary beneficiary has no economic effect on us. Our exposure to the obligations of securitization VIEs is generally limited to our investment in these entities. We are not obligated to provide, nor have we provided, any financial support for any of these consolidated structures. We also hold controlling interests in certain other entities that are considered VIEs, which were established to facilitate the purchase of certain properties acquired with third party minority interest partners. We are the primary beneficiaries of these VIEs as we possess both the power to direct the activities of the VIEs that most significantly impact their economic performance and hold significant economic interests. These VIEs had assets of $167.3 million and liabilities of $114.3 million as of September 30, 2017. VIEs in which we are not the Primary Beneficiary In certain instances, we hold a variable interest in a VIE in the form of CMBS, but either (i) we are not appointed, or do not serve as, special servicer or (ii) an unrelated third party has the rights to unilaterally remove us as special servicer without cause. In these instances, we do not have the power to direct activities that most significantly impact the VIE’s economic performance. In other cases, the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant. For these structures, we are not deemed to be the primary beneficiary of the VIE, and we do not consolidate these VIEs. As of September 30, 2017, two of our CDO structures were in default, one of which entered default during the nine months ended September 30, 2017. Pursuant to the underlying indentures, the rights of the variable interest holders change upon default of a CDO such that the trustee or senior note holders are allowed to exercise certain rights, including liquidation of the collateral, which at that time, is the activity which would most significantly impact the CDO’s economic performance. Further, when the CDO is in default, the collateral administrator no longer has the option to purchase securities from the CDO. In cases where the CDO is in default and we do not have the ability to exercise rights which would most significantly impact the CDO’s economic performance, we do not consolidate the VIE. During the nine months ended September 30, 2017, we deconsolidated the CDO that went into default, resulting in a reduction to each of VIE assets and VIE liabilities of $467.1 million. The carrying value of our investment in this CDO was zero at the time of deconsolidation and at September 30, 2017. As of September 30, 2017, neither of these CDO structures were consolidated. As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of September 30, 2017, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $23.8 million on a fair value basis. As of September 30, 2017, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances of $5.3 billion. The corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations. We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $118.8 million as of September 30, 2017, within investment in unconsolidated entities on our condensed consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2017
Related-Party Transactions
Related-Party Transactions	15. Related-Party Transaction Management Agreement We are party to a management agreement (the “Management Agreement”) with our Manager. Under the Management Agreement, our Manager, subject to the oversight of our board of directors, is required to manage our day to day activities, for which our Manager receives a base management fee and is eligible for an incentive fee and stock awards. Our Manager’s personnel perform certain due diligence, legal, management and other services that outside professionals or consultants would otherwise perform. As such, in accordance with the terms of our Management Agreement, our Manager is paid or reimbursed for the documented costs of performing such tasks, provided that such costs and reimbursements are in amounts no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of this agreement. Base Management Fee. For the three months ended September 30, 2017 and 2016, approximately $16.9 million and $15.2 million, respectively, was incurred for base management fees. For the nine months ended September 30, 2017 and 2016, approximately $50.7 million and $45.4 million, respectively, was incurred for base management fees. As of September 30, 2017 and December 31, 2016, there were $16.9 million and $15.7 million, respectively, of unpaid base management fees included in related-party payable in our condensed consolidated balance sheets. Incentive Fee. For the three months ended September 30, 2017 and 2016, approximately $10.4 million and $6.3 million, respectively, was incurred for incentive fees. For the nine months ended September 30, 2017 and 2016, approximately $20.2 million and $13.8 million, respectively, was incurred for incentive fees. As of September 30, 2017 and December 31, 2016, approximately $10.4 million and $19.0 million, respectively, of unpaid incentive fees were included in related-party payable in our condensed consolidated balance sheets. Expense Reimbursement. For the three months ended September 30, 2017 and 2016, approximately $1.7 million and $1.5 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our condensed consolidated statements of operations. For the nine months ended September 30, 2017 and 2016, approximately $4.5 million and $4.1 million, respectively, was incurred for executive compensation and other reimbursable expenses. As of September 30, 2017 and December 31, 2016, approximately $2.7 million and $3.0 million, respectively, of unpaid reimbursable executive compensation and other expenses were included in related-party payable in our condensed consolidated balance sheets. Equity Awards. In certain instances, we issue RSAs to certain employees of affiliates of our Manager who perform services for us. During the three months ended September 30, 2017 and 2016, there were no RSAs granted. Expenses related to the vesting of awards to employees of affiliates of our Manager were $0.7 million and $0.6 million during the three months ended September 30, 2017 and 2016, respectively, and are reflected in general and administrative expenses in our condensed consolidated statements of operations. During the nine months ended September 30, 2017 and 2016, we granted 138,264 and 169,104 RSAs, respectively, at grant date fair values of $3.1 million and $3.3 million, respectively. Expenses related to the vesting of awards to employees of affiliates of our Manager were $2.1 million and $1.6 million during the nine months ended September 30, 2017 and 2016, respectively. These shares generally vest over a three-year period. Manager Equity Plan In March 2017, we granted 1,000,000 RSUs to our Manager under the Starwood Property Trust, Inc. Manager Equity Plan (“Manager Equity Plan”). In May 2015, we granted 675,000 RSUs to our Manager under the Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of $3.0 million and $5.7 million within management fees in our condensed consolidated statements of operations for the three months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, we recognized $7.4 million and $15.8 million, respectively, related to these awards. Refer to Note 16 for further discussion of these grants. In May 2017, the Company’s shareholders approved the Starwood Property Trust, Inc. 2017 Manager Equity Plan (the “2017 Manager Equity Plan”) which replaces the Manager Equity Plan. Refer to Note 16 for further discussion. Investments in Loans and Securities In March 2017, we were fully repaid $59.0 million upon the maturity of a subordinate single-borrower CMBS that we acquired in March 2015. The bond was secured by 85 U.S. hotel properties, and the borrower was an affiliate of Starwood Distressed Opportunity Fund IX, an affiliate of our Manager. In May 2017, our conduit business acquired certain commercial real estate loans from an unaffiliated third party for an aggregate purchase price of $50.0 million. The underlying borrowers are affiliates of our Manager. During the three months ended September 30, 2017, $25.0 million of such loans were sold. The remaining $25.0 million of such loans, which were included within loans held-for-sale in our condensed consolidated balance sheet as of September 30, 2017, were sold subsequent to September 30, 2017. In June 2017, we amended a £75.0 million first mortgage for the development of a three-property mixed use portfolio located in Greater London, which we co-originated with SEREF, an affiliate of our Manager, in 2016. The amendment reduced the first mortgage’s total commitment to £69.3 million, of which our share is £55.4 million. The loan matures in June 2019. In August 2017, we originated a $339.2 million first mortgage and mezzanine loan for the acquisition of an office campus located in Irvine, California. An affiliate of our Manager has a non-controlling equity interest in the borrower. Investment in Unconsolidated Entities In October 2014, we committed $150.0 million for a 33% equity interest in four regional shopping malls (the “Retail Fund”). In August 2017, we funded the remaining $15.5 million capital commitment associated with this investment (see Note 7). All leasing services and asset management functions for the properties are conducted by an affiliate of our Manager which specializes in redeveloping, managing and repositioning retail real estate assets. In addition, another affiliate of our Manager serves as general partner of the Retail Fund. Acquisitions from Consolidated CMBS Trusts Our Investing and Servicing Segment acquires interests in properties for its REIS Equity Portfolio from CMBS trusts, some of which are consolidated as VIEs on our balance sheet. Acquisitions from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. During the three months ended September 30, 2016, we acquired $3.3 million of net real estate assets from consolidated CMBS trusts. No real estate assets were acquired from consolidated CMBS trusts during the three months ended September 30, 2017. During the nine months ended September 30, 2017 and 2016, we acquired $19.7 million and $88.4 million, respectively, of net real estate assets from consolidated CMBS trusts and subsequently issued non-controlling interests of $5.5 million on the 2016 acquisitions. No non-controlling interests were issued during the nine months ended September 30, 2017. Refer to Note 3 for further discussion of these acquisitions. Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of related-party agreements.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Stockholders' Equity	16. Stockholders’ Equity During the nine months ended September 30, 2017, our board of directors declared the following dividends: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 8/9/17 9/29/17 9/28/17 10/13/17 $ 0.48 Quarterly 5/9/17 6/30/17 6/28/17 7/14/17 $ 0.48 Quarterly 2/23/17 3/31/17 3/29/17 4/14/17 $ 0.48 Quarterly During the nine months ended September 30, 2017 and 2016, there were no shares issued under our At-The-Market Equity Offering Sales Agreement. During the nine months ended September 30, 2017 and 2016, shares issued under the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”) were not material. In February 2017, our board of directors extended the term of our $500.0 million common stock and Convertible Note repurchase program through January 2019. Refer to Note 17 to the consolidated financial statements included in our Form 10-K for further information regarding the repurchase program. During the nine months ended September 30, 2016, we repurchased 1,052,889 shares of common stock for $19.7 million and no Convertible Notes under our repurchase program. There were no share repurchases or Convertible Note repurchases under the repurchase program during the nine months ended September 30, 2017. The repurchase of the 2018 Notes discussed in Note 10 was not considered part of the repurchase program and therefore does not reduce our available capacity for future repurchases under the repurchase program. As of September 30, 2017, we had $262.2 million of remaining capacity to repurchase common stock and/or Convertible Notes under the repurchase program through January 2019. Equity Incentive Plans In May 2017, the Company’s shareholders approved the 2017 Manager Equity Plan and the Starwood Property Trust, Inc. 2017 Equity Plan (the “2017 Equity Plan”), which allow for the issuance of up to 11,000,000 stock options, stock appreciation rights, RSAs, RSUs or other equity-based awards or any combination thereof to the Manager, directors, employees, consultants or any other party providing services to the Company. The 2017 Manager Equity Plan succeeds and replaces the Manager Equity Plan and the 2017 Equity Plan succeeds and replaces the Starwood Property Trust, Inc. Equity Plan (the “Equity Plan”) and the Starwood Property Trust, Inc. Non-Executive Director Stock Plan (the “Non-Executive Director Stock Plan”). The table below summarizes our share awards granted or vested under the Manager Equity Plan and 2017 Manager Equity Plan during the nine months ended September 30, 2017 and 2016 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period March 2017 RSU 1,000,000 $ 22,240 3 years May 2015 RSU 675,000 16,511 3 years January 2014 RSU 489,281 14,776 3 years January 2014 RSU 2,000,000 55,420 3 years As of September 30, 2017, there were 11.0 million shares available for future grants under the 2017 Manager Equity Plan and the 2017 Equity Plan. Schedule of Non-Vested Shares and Share Equivalents (1) 2017 Weighted Average 2017 Manager Grant Date Fair Equity Plan Equity Plan Total Value (per share) Balance as of January 1, 2017 539,124 281,250 820,374 $ 22.34 Granted 548,160 1,000,000 1,548,160 22.27 Vested (337,192) (335,416) (672,608) 22.69 Forfeited (34,531) — (34,531) 22.56 Balance as of September 30, 2017 715,561 945,834 1,661,395 22.09 (1) Equity-based award activity for awards granted under the Equity Plan and Non-Executive Director Stock Plan is reflected within the 2017 Equity Plan column, and for awards granted under the Manager Equity Plan, within the 2017 Manager Equity Plan column.

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2017
Earnings per Share
Earnings per Share	17. Earnings per Share The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic Earnings Income attributable to STWD common stockholders $ 88,428 $ 105,766 $ 308,166 $ 243,896 Less: Income attributable to participating shares (761) (456) (2,489) (1,743) Basic earnings $ 87,667 $ 105,310 $ 305,677 $ 242,153 Diluted Earnings Basic — Income attributable to STWD common stockholders $ 88,428 $ 105,766 $ 308,166 $ 243,896 Less: Income attributable to participating shares (761) (456) (2,489) (1,743) Add: Undistributed earnings to participating shares — — — — Less: Undistributed earnings reallocated to participating shares — — — — Diluted earnings $ 87,667 $ 105,310 $ 305,677 $ 242,153 Number of Shares: Basic — Average shares outstanding 259,759 237,429 259,412 237,017 Effect of dilutive securities — Convertible Notes 2,313 3,445 2,284 3,766 Effect of dilutive securities — Contingently issuable shares 236 138 236 138 Effect of dilutive securities — Unvested non-participating shares 129 79 123 61 Diluted — Average shares outstanding 262,437 241,091 262,055 240,982 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 0.34 $ 0.44 $ 1.18 $ 1.02 Diluted $ 0.33 $ 0.44 $ 1.17 $ 1.00 As of September 30, 2017 and 2016, participating shares of 1.6 million and 0.9 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Additionally, as of September 30, 2017, there were 61.9 million potential shares of common stock contingently issuable upon the conversion of the Convertible Notes. The Company has asserted its intent and ability to settle the principal amount of the Convertible Notes in cash. As a result, this principal amount, representing 59.6 million shares at September 30, 2017, was not included in the computation of diluted EPS. However, as discussed in Note 10, the conversion options associated with the 2018 Notes and 2019 Notes are “in-the-money” as the if-converted values of the 2018 Notes and 2019 Notes exceeded their principal amounts by $16.4 million and $34.6 million, respectively, at September 30, 2017. The dilutive effect to EPS is determined by dividing this “conversion spread value” by the average share price. The “conversion spread value” is the value that would be delivered to investors in shares based on the terms of the Convertible Notes, upon an assumed conversion. In calculating the dilutive effect of these shares, the treasury stock method was used and resulted in a dilution of 2.3 million shares for the three and nine months ended September 30, 2017. The conversion options associated with the 2017 Notes and 2023 Notes are “out-of-the-money” because the if-converted values of the 2017 Notes and 2023 Notes were less than their principal amounts by $38.5 million and $40.4 million, respectively, at September 30, 2017; therefore, there was no dilutive effect to EPS for the 2017 Notes and 2023 Notes.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	18. Accumulated Other Comprehensive Income The changes in AOCI by component are as follows (amounts in thousands): Cumulative Unrealized Gain Effective Portion of (Loss) on Foreign Cumulative Loss on Available-for- Currency Cash Flow Hedges Sale Securities Translation Total Three Months Ended September 30, 2017 Balance at July 1, 2017 $ 52 $ 51,682 $ 4,247 $ 55,981 OCI before reclassifications (3) 3,975 5,337 9,309 Amounts reclassified from AOCI (19) — — (19) Net period OCI (22) 3,975 5,337 9,290 Balance at September 30, 2017 $ 30 $ 55,657 $ 9,584 $ 65,271 Three Months Ended September 30, 2016 Balance at July 1, 2016 $ (386) $ 39,858 $ (6,845) $ 32,627 OCI before reclassifications 107 6,105 1,331 7,543 Amounts reclassified from AOCI 78 — — 78 Net period OCI 185 6,105 1,331 7,621 Balance at September 30, 2016 $ (201) $ 45,963 $ (5,514) $ 40,248 Nine Months Ended September 30, 2017 Balance at January 1, 2017 $ (26) $ 44,929 $ (8,765) $ 36,138 OCI before reclassifications 45 10,823 18,349 29,217 Amounts reclassified from AOCI 11 (95) — (84) Net period OCI 56 10,728 18,349 29,133 Balance at September 30, 2017 $ 30 $ 55,657 $ 9,584 $ 65,271 Nine Months Ended September 30, 2016 Balance at January 1, 2016 $ (65) $ 37,307 $ (7,513) $ 29,729 OCI before reclassifications (397) 8,656 1,999 10,258 Amounts reclassified from AOCI 261 — — 261 Net period OCI (136) 8,656 1,999 10,519 Balance at September 30, 2016 $ (201) $ 45,963 $ (5,514) $ 40,248 The reclassifications out of AOCI impacted the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 as follows (amounts in thousands): Amounts Reclassified from Amounts Reclassified from AOCI during the Three Months AOCI during the Nine Months Affected Line Item Ended September 30, Ended September 30, in the Statements Details about AOCI Components 2017 2016 2017 2016 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 19 $ (78) $ (11) $ (261) Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection — — 95 — Interest income from investment securities Total reclassifications for the period $ 19 $ (78) $ 84 $ (261)

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2017
Fair Value
Fair Value	19. Fair Value GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II —Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III —Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation Process We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. Refer to Note 20 to the consolidated financial statements included in our Form 10-K for further discussion of our valuation process. We determine the fair value of our assets and liabilities measured at fair value on a recurring and nonrecurring basis in accordance with the methodology described in our Form 10-K. Fair Value Disclosures The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the condensed consolidated balance sheets by their level in the fair value hierarchy as of September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 608,624 $ — $ — $ 608,624 RMBS 253,252 — — 253,252 CMBS 23,841 — — 23,841 Equity security 13,529 13,529 — — Domestic servicing rights 33,781 — — 33,781 Derivative assets 38,293 — 38,293 — VIE assets 51,197,981 — — 51,197,981 Total $ 52,169,301 $ 13,529 $ 38,293 $ 52,117,479 Financial Liabilities: Derivative liabilities $ 22,890 $ — $ 22,890 $ — VIE liabilities 50,150,781 — 47,890,998 2,259,783 Total $ 50,173,671 $ — $ 47,913,888 $ 2,259,783 December 31, 2016 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 63,279 $ — $ — $ 63,279 RMBS 253,915 — — 253,915 CMBS 31,546 — — 31,546 Equity security 12,177 12,177 — — Domestic servicing rights 55,082 — — 55,082 Derivative assets 89,361 — 89,361 — VIE assets 67,123,261 — — 67,123,261 Total $ 67,628,621 $ 12,177 $ 89,361 $ 67,527,083 Financial Liabilities: Derivative liabilities $ 3,904 $ — $ 3,904 $ — VIE liabilities 66,130,592 — 63,545,223 2,585,369 Total $ 66,134,496 $ — $ 63,549,127 $ 2,585,369 The changes in financial assets and liabilities classified as Level III are as follows for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Domestic Loans Servicing VIE Three Months Ended September 30, 2017 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total July 1, 2017 balance $ 610,116 $ 256,397 $ 13,848 $ 38,648 $ 53,902,715 $ (2,164,593) $ 52,657,131 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 19,485 — (673) (4,867) (3,533,620) 151,273 (3,368,402) Net accretion — 3,187 — — — — 3,187 Included in OCI — 3,975 — — — — 3,975 Purchases / Originations 524,409 — 11,798 — — — 536,207 Sales (517,350) — — — — — (517,350) Issuances — — — — — (1,469) (1,469) Cash repayments / receipts (28,036) (10,307) (1,666) — — (4,910) (44,919) Transfers into Level III — — — — — (233,367) (233,367) Transfers out of Level III — — — — — 67,272 67,272 Consolidation of VIEs — — — — 964,564 (75,585) 888,979 Deconsolidation of VIEs — — 534 — (135,678) 1,596 (133,548) September 30, 2017 balance $ 608,624 $ 253,252 $ 23,841 $ 33,781 $ 51,197,981 $ (2,259,783) $ 49,857,696 Amount of total (losses) gains included in earnings attributable to assets still held at September 30, 2017 $ (2,597) $ 3,187 $ (230) $ (4,867) $ (3,533,620) $ 151,273 $ (3,386,854) Domestic Loans Servicing VIE Three Months Ended September 30, 2016 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total July 1, 2016 balance $ 237,106 $ 251,260 $ 114,340 $ 83,301 $ 80,076,117 $ (3,540,652) $ 77,221,472 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 49,996 — (2,993) (14,283) (8,143,518) 653,103 (7,457,695) Net accretion — 4,197 — — — — 4,197 Included in OCI — 6,105 — — — — 6,105 Purchases / Originations 709,045 8,868 — — — — 717,913 Sales (648,179) — (17,456) — — — (665,635) Cash repayments / receipts (478) (9,917) (12,289) — — 7,819 (14,865) Transfers into Level III — — — — — (1) (1) Transfers out of Level III — — — — — 40,959 40,959 Consolidation of VIEs — — (24,403) — 2,268,424 (109,913) 2,134,108 Deconsolidation of VIEs — — 1,586 — (277,324) 37,188 (238,550) September 30, 2016 balance $ 347,490 $ 260,513 $ 58,785 $ 69,018 $ 73,923,699 $ (2,911,497) $ 71,748,008 Amount of total gains (losses) included in earnings attributable to assets still held at September 30, 2016 $ 9,746 $ 4,197 $ (1,852) $ (14,283) $ (8,143,518) $ 653,103 $ (7,492,607) Domestic Loans Servicing VIE Nine Months Ended September 30, 2017 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2017 balance $ 63,279 $ 253,915 $ 31,546 $ 55,082 $ 67,123,261 $ (2,585,369) $ 64,941,714 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 45,484 — (4,359) (21,301) (15,773,529) 749,757 OTTI — (109) — — — — (109) Net accretion — 10,375 — — — — 10,375 Included in OCI — 10,728 — — — — 10,728 Purchases / Originations 1,527,364 7,433 11,798 — — — 1,546,595 Sales (987,828) — (11,134) — — — (998,962) Issuances — — — — — (11,657) (11,657) Cash repayments / receipts (39,675) (29,090) (8,754) — — (40,946) (118,465) Transfers into Level III — — — — — (616,794) (616,794) Transfers out of Level III — — — — — 231,012 231,012 Consolidation of VIEs — — — — 2,092,516 (75,585) 2,016,931 Deconsolidation of VIEs — — 4,744 — (2,244,267) 89,799 (2,149,724) September 30, 2017 balance $ 608,624 $ 253,252 $ 23,841 $ 33,781 $ 51,197,981 $ (2,259,783) $ 49,857,696 Amount of total (losses) gains included in earnings attributable to assets still held at September 30, 2017 $ (2,621) $ 10,159 $ 56 $ (21,301) $ (15,773,529) $ 749,757 $ (15,037,479) Domestic Loans Servicing VIE Nine Months Ended September 30, 2016 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2016 balance $ 203,865 $ 176,224 $ 212,981 $ 119,698 $ 76,675,689 $ (2,552,448) $ 74,836,009 Impact of ASU 2015-02 adoption (1) — — — (17,467) 17,467 — — Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 70,122 — (677) (33,213) (16,483,798) 946,703 (15,500,863) Net accretion — 11,354 — — — — 11,354 Included in OCI — 8,656 — — — — 8,656 Purchases / Originations 1,197,801 97,204 57,576 — — — 1,352,581 Sales (1,123,512) — (18,725) — — — (1,142,237) Issuances — — — — — (596) (596) Cash repayments / receipts (786) (32,925) (31,734) — — 28,591 (36,854) Transfers into Level III — — — — — (972,588) (972,588) Transfers out of Level III — — — — — 187,683 187,683 Consolidation of VIEs — — (162,745) — 19,118,645 (593,818) 18,362,082 Deconsolidation of VIEs — — 2,109 — (5,404,304) 44,976 (5,357,219) September 30, 2016 balance $ 347,490 $ 260,513 $ 58,785 $ 69,018 $ 73,923,699 $ (2,911,497) $ 71,748,008 Amount of total gains (losses) included in earnings attributable to assets still held at September 30, 2016 $ 9,746 $ 11,354 $ 263 $ (33,213) $ (16,483,798) $ 946,703 $ (15,548,945) (1) Our implementation of ASU 2015-02 resulted in the consolidation of certain CMBS trusts effective January 1, 2016, which required the elimination of $17.5 million of domestic servicing rights associated with these newly consolidated trusts. Amounts were transferred from Level II to Level III due to a decrease in the observable relevant market activity and amounts were transferred from Level III to Level II due to an increase in the observable relevant market activity. The following table presents the fair values, all of which are classified in Level III of the fair value hierarchy, of our financial instruments not carried at fair value on the condensed consolidated balance sheets (amounts in thousands): September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans transferred as secured borrowings $ 6,456,710 $ 6,539,259 $ 5,882,995 $ 5,934,219 HTM securities 411,196 408,442 509,980 504,165 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 5,588,895 $ 5,559,888 $ 4,189,126 $ 4,198,136 Unsecured senior notes 2,044,523 2,097,835 2,011,544 2,088,374 The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands): Carrying Value at Valuation Unobservable Range as of (1) September 30, 2017 Technique Input September 30, 2017 December 31, 2016 Loans held-for-sale, fair value option $ 608,624 Discounted cash flow Yield (b) 4.3% - 5.9% 5.0% - 5.7% Duration (c) 3.3 - 12.8 years 10.0 years RMBS 253,252 Discounted cash flow Constant prepayment rate (a) 2.4% - 19.4% 2.8% - 17.0% Constant default rate (b) 0.8% - 5.8% 1.1% - 8.1% Loss severity (b) 16% - 79% (e) 12% - 79% (e) Delinquency rate (c) 4% - 34% 2% - 29% Servicer advances (a) 20% - 84% 23% - 94% Annual coupon deterioration (b) 0% - 0.8% 0% - 0.6% Putback amount per projected total collateral loss (d) 0% - 15% 0% - 15% CMBS 23,841 Discounted cash flow Yield (b) 0% - 167.1% 0% - 172.0% Duration (c) 0 - 9.9 years 0 - 18.7 years Domestic servicing rights 33,781 Discounted cash flow Debt yield (a) 7.75% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 51,197,981 Discounted cash flow Yield (b) 0% - 813.9% 0% - 960.4% Duration (c) 0 - 11.6 years 0 - 12.0 years VIE liabilities 2,259,783 Discounted cash flow Yield (b) 0% - 813.9% 0% - 960.4% Duration (c) 0 - 11.6 years 0 - 12.0 years (1) The ranges of significant unobservable inputs are represented in percentages and years. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (a) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. (b) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. (c) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question. (d) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (e) 81% and 57% of the portfolio falls within a range of 45%-80% as of September 30, 2017 and December 31, 2016, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	20. Income Taxes Certain of our subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT. Our TRSs engage in various real estate related operations, including special servicing of commercial real estate, originating and securitizing commercial mortgage loans, and investing in entities which engage in real estate related operations. The majority of our TRSs are held within the Investing and Servicing Segment. As of September 30, 2017 and December 31, 2016, approximately $779.8 million and $634.4 million, respectively, of assets, including $139.4 million and $181.0 million in cash, respectively, were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs. The following table is a reconciliation of our U.S. federal income tax determined using our statutory federal tax rate to our reported income tax provision for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Federal statutory tax rate $ 35,915 35.0 % $ 37,968 35.0 % $ 118,010 35.0 % $ 86,939 35.0 % REIT and other non-taxable income (26,242) (25.5) % (35,541) (32.7) % (99,668) (29.6) % (83,676) (33.7) % State income taxes 200 0.2 % 247 0.2 % 81 — % 224 0.1 % Federal benefit of state tax deduction (70) (0.1) % (86) (0.1) % (28) — % (78) — % Other 13 — % 79 0.1 % (110) — % 58 — % Effective tax rate $ 9,816 9.6 % $ 2,667 2.5 % $ 18,285 5.4 % $ 3,467 1.4 % During the three and nine months ended September 30, 2017, we recognized $28.2 million and $53.9 million, respectively, in earnings from unconsolidated entities related to our interest in an investor entity which owns equity in an online real estate company (see Note 7). Our investment in this entity is held within a TRS. In calculating our effective tax rate for the three and nine months ended September 30, 2017, these earnings were deemed to be both unusual in nature and infrequent in occurrence. As a result, pursuant to ASC 740, the income tax effect of these earnings, net of the related Manager incentive fee, was excluded from ordinary income and discretely calculated. This calculation resulted in a discrete income tax provision of $8.4 million and $18.3 million in our condensed consolidated statements of operations for the three and nine months ended September 30, 2017, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies.
Commitments and Contingencies	21. Commitments and Contingencie As of September 30, 2017, we had future funding commitments on 51 loans totaling $1.5 billion, of which we expect to fund $1.3 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower. Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our condensed consolidated financial statements.

Segment Data

Segment Data	9 Months Ended
	Sep. 30, 2017
Segment Data
Segment Data	22. Segment Dat In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis prior to the impact of consolidating securitization VIEs under ASC 810. The segment information within this note is reported on that basis. The table below presents our results of operations for the three months ended September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 134,149 $ — $ 4,450 $ — $ 138,599 $ — $ 138,599 Interest income from investment securities 11,540 — 31,740 — 43,280 (30,829) 12,451 Servicing fees 142 — 23,093 — 23,235 (8,393) 14,842 Rental income — 47,663 12,490 — 60,153 — 60,153 Other revenues 181 164 441 — 786 (64) 722 Total revenues 146,012 47,827 72,214 — 266,053 (39,286) 226,767 Costs and expenses: Management fees 482 — 18 30,370 30,870 110 30,980 Interest expense 27,929 11,360 5,710 31,709 76,708 (277) 76,431 General and administrative 5,302 1,090 24,167 2,251 32,810 82 32,892 Acquisition and investment pursuit costs 807 245 (28) — 1,024 — 1,024 Costs of rental operations — 18,660 5,139 — 23,799 — 23,799 Depreciation and amortization 17 17,852 5,002 — 22,871 — 22,871 Loan loss allowance, net (171) — — — (171) — (171) Other expense 72 97 207 — 376 — 376 Total costs and expenses 34,438 49,304 40,215 64,330 188,287 (85) 188,202 Income (loss) before other income (loss), income taxes and non-controlling interests 111,574 (1,477) 31,999 (64,330) 77,766 (39,201) 38,565 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 56,177 56,177 Change in fair value of servicing rights — — (5,652) — (5,652) 785 (4,867) Change in fair value of investment securities, net 276 — 13,962 — 14,238 (14,635) (397) Change in fair value of mortgage loans held-for-sale, net (397) — 19,882 — 19,485 — 19,485 Earnings (loss) from unconsolidated entities 848 (33,731) 30,225 — (2,658) (2,031) (4,689) Gain on sale of investments and other assets, net — — 11,877 — 11,877 — 11,877 Loss on derivative financial instruments, net (10,813) (11,276) (2,135) — (24,224) — (24,224) Foreign currency gain (loss), net 10,657 (1) 4 — 10,660 — 10,660 Other income, net — — 28 — 28 — 28 Total other income (loss) 571 (45,008) 68,191 — 23,754 40,296 64,050 Income (loss) before income taxes 112,145 (46,485) 100,190 (64,330) 101,520 1,095 102,615 Income tax benefit (provision) 11 — (9,827) — (9,816) — (9,816) Net income (loss) 112,156 (46,485) 90,363 (64,330) 91,704 1,095 92,799 Net income attributable to non-controlling interests (357) — (2,919) — (3,276) (1,095) (4,371) Net income (loss) attributable to Starwood Property Trust, Inc . $ 111,799 $ (46,485) $ 87,444 $ (64,330) $ 88,428 $ — $ 88,428 The table below presents our results of operations for the three months ended September 30, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 114,506 $ — $ 6,719 $ — $ 121,225 $ — $ 121,225 Interest income from investment securities 13,301 — 35,274 — 48,575 (29,400) 19,175 Servicing fees 195 — 37,678 — 37,873 (14,955) 22,918 Rental income — 29,226 10,516 — 39,742 — 39,742 Other revenues 99 11 1,692 — 1,802 (157) 1,645 Total revenues 128,101 29,237 91,879 — 249,217 (44,512) 204,705 Costs and expenses: Management fees 525 — 24 27,183 27,732 48 27,780 Interest expense 22,678 5,536 4,877 26,181 59,272 (190) 59,082 General and administrative 5,067 867 43,711 1,651 51,296 174 51,470 Acquisition and investment pursuit costs 322 759 416 12 1,509 — 1,509 Costs of rental operations — 13,139 4,872 — 18,011 — 18,011 Depreciation and amortization — 10,870 4,482 — 15,352 — 15,352 Loan loss allowance, net 2,127 — — — 2,127 — 2,127 Other expense — 513 198 — 711 — 711 Total costs and expenses 30,719 31,684 58,580 55,027 176,010 32 176,042 Income (loss) before other income (loss), income taxes and non-controlling interests 97,382 (2,447) 33,299 (55,027) 73,207 (44,544) 28,663 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 47,848 47,848 Change in fair value of servicing rights — — (14,006) — (14,006) (277) (14,283) Change in fair value of investment securities, net 207 — 620 — 827 (3,613) (2,786) Change in fair value of mortgage loans held-for-sale, net — — 49,996 — 49,996 — 49,996 Earnings from unconsolidated entities 852 2,455 617 — 3,924 381 4,305 Gain on sale of investments and other assets, net 10 — — — 10 — 10 Gain (loss) on derivative financial instruments, net 4,982 (4,720) (2,590) — (2,328) — (2,328) Foreign currency (loss) gain, net (3,839) (7) 632 — (3,214) — (3,214) Other income, net — — 35 234 269 — 269 Total other income (loss) 2,212 (2,272) 35,304 234 35,478 44,339 79,817 Income (loss) before income taxes 99,594 (4,719) 68,603 (54,793) 108,685 (205) 108,480 Income tax provision — — (2,667) — (2,667) — (2,667) Net income (loss) 99,594 (4,719) 65,936 (54,793) 106,018 (205) 105,813 Net (income) loss attributable to non-controlling interests (352) — 100 — (252) 205 (47) Net income (loss) attributable to Starwood Property Trust, Inc . $ 99,242 $ (4,719) $ 66,036 $ (54,793) $ 105,766 $ — $ 105,766 The table below presents our results of operations for the nine months ended September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 360,188 $ — $ 10,906 $ — $ 371,094 $ — $ 371,094 Interest income from investment securities 35,870 — 104,768 — 140,638 (100,593) 40,045 Servicing fees 568 — 86,837 — 87,405 (39,833) 47,572 Rental income — 138,795 37,366 — 176,161 — 176,161 Other revenues 553 430 1,450 — 2,433 (249) 2,184 Total revenues 397,179 139,225 241,327 — 777,731 (140,675) 637,056 Costs and expenses: Management fees 1,405 — 54 78,328 79,787 210 79,997 Interest expense 72,372 32,466 14,924 94,667 214,429 (821) 213,608 General and administrative 14,872 3,471 69,536 7,719 95,598 243 95,841 Acquisition and investment pursuit costs 1,707 516 9 — 2,232 — 2,232 Costs of rental operations — 51,843 15,858 — 67,701 — 67,701 Depreciation and amortization 50 52,288 14,793 — 67,131 — 67,131 Loan loss allowance, net (3,170) — — — (3,170) — (3,170) Other expense 72 63 1,141 — 1,276 — 1,276 Total costs and expenses 87,308 140,647 116,315 180,714 524,984 (368) 524,616 Income (loss) before other income (loss), income taxes and non-controlling interests 309,871 (1,422) 125,012 (180,714) 252,747 (140,307) 112,440 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 203,108 203,108 Change in fair value of servicing rights — — (28,956) — (28,956) 7,655 (21,301) Change in fair value of investment securities, net 299 — 45,263 — 45,562 (49,623) (4,061) Change in fair value of mortgage loans held-for-sale, net (549) — 46,033 — 45,484 — 45,484 Earnings (loss) from unconsolidated entities 2,548 (28,782) 67,134 — 40,900 (13,137) 27,763 (Loss) gain on sale of investments and other assets, net (59) 77 16,986 — 17,004 — 17,004 Loss on derivative financial instruments, net (30,274) (32,268) (3,617) — (66,159) — (66,159) Foreign currency gain, net 28,402 16 16 — 28,434 — 28,434 OTTI (109) — — — (109) — (109) Loss on extinguishment of debt — — — (5,916) (5,916) — (5,916) Other income, net — — 1,097 — 1,097 (613) 484 Total other income (loss) 258 (60,957) 143,956 (5,916) 77,341 147,390 224,731 Income (loss) before income taxes 310,129 (62,379) 268,968 (186,630) 330,088 7,083 337,171 Income tax provision (331) — (17,954) — (18,285) — (18,285) Net income (loss) 309,798 (62,379) 251,014 (186,630) 311,803 7,083 318,886 Net income attributable to non-controlling interests (1,064) — (2,573) — (3,637) (7,083) (10,720) Net income (loss) attributable to Starwood Property Trust, Inc . $ 308,734 $ (62,379) $ 248,441 $ (186,630) $ 308,166 $ — $ 308,166 The table below presents our results of operations for the nine months ended September 30, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ $ — $ 12,854 $ — $ 361,314 $ — $ 361,314 Interest income from investment securities 33,975 — 115,335 — 149,310 (95,431) 53,879 Servicing fees 560 — 111,145 — 111,705 (40,784) 70,921 Rental income — 85,048 25,214 — 110,262 — 110,262 Other revenues 180 35 4,110 — 4,325 (511) 3,814 Total revenues 85,083 268,658 — 736,916 (136,726) 600,190 Costs and expenses: Management fees 1,295 — 54 75,015 76,364 146 76,510 Interest expense 67,585 16,163 11,443 78,236 173,427 (190) 173,237 General and administrative 13,529 2,259 95,726 7,631 119,145 532 119,677 Acquisition and investment pursuit costs 1,602 1,517 1,551 1,012 5,682 — 5,682 Costs of rental operations — 34,923 11,595 — 46,518 — 46,518 Depreciation and amortization — 41,922 11,263 — 53,185 — 53,185 Loan loss allowance, net 3,395 — — — 3,395 — 3,395 Other expense — 513 298 — 811 — 811 Total costs and expenses 87,406 97,297 131,930 161,894 478,527 488 479,015 Income (loss) before other income (loss), income taxes and non-controlling interests 295,769 (12,214) 136,728 (161,894) 258,389 (137,214) 121,175 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 94,388 94,388 Change in fair value of servicing rights — — (33,710) — (33,710) 497 (33,213) Change in fair value of investment securities, net (37) — (43,449) — (43,486) 42,772 (714) Change in fair value of mortgage loans held-for-sale, net — — 70,122 — 70,122 — 70,122 Earnings from unconsolidated entities 2,544 7,313 3,280 — 13,137 (288) 12,849 Gain on sale of investments and other assets, net 165 — — — 165 — 165 Gain (loss) on derivative financial instruments, net 17,824 (6,837) (17,780) — (6,793) — (6,793) Foreign currency (loss) gain, net (23,501) (41) 2,962 — (20,580) — (20,580) Other income, net — 9,102 112 1,784 10,998 — 10,998 Total other income (loss) (3,005) 9,537 (18,463) 1,784 (10,147) 137,369 127,222 Income (loss) before income taxes (2,677) 118,265 (160,110) 248,242 155 248,397 Income tax provision (75) — (3,392) — (3,467) — (3,467) Net income (loss) (2,677) 114,873 (160,110) 244,775 155 244,930 Net (income) loss attributable to non-controlling interests (1,050) — 171 — (879) (155) (1,034) Net income (loss) attributable to Starwood Property Trust, Inc . $ 291,639 $ (2,677) $ 115,044 $ (160,110) $ 243,896 $ — $ 243,896 The table below presents our condensed consolidated balance sheet as of September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 43,513 $ 8,581 $ 58,584 $ 298,006 $ 408,684 $ 5,161 $ 413,845 Restricted cash 22,527 20,189 11,875 — 54,591 — 54,591 Loans held-for-investment, net 6,378,468 — 3,903 — 6,382,371 — 6,382,371 Loans held-for-sale 418,618 — 190,006 — 608,624 — 608,624 Loans transferred as secured borrowings 74,339 — — — 74,339 — 74,339 Investment securities 677,977 — 1,026,634 — 1,704,611 (1,002,793) 701,818 Properties, net — 2,234,646 286,696 — 2,521,342 — 2,521,342 Intangible assets — 116,856 91,591 — 208,447 (26,582) 181,865 Investment in unconsolidated entities 36,831 109,607 117,772 — 264,210 (20,760) 243,450 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 13,513 22,480 2,300 — 38,293 — 38,293 Accrued interest receivable 34,569 — 478 — 35,047 — 35,047 Other assets 10,286 40,705 61,787 2,293 115,071 (2,806) 112,265 VIE assets, at fair value — — — — — 51,197,981 51,197,981 Total Assets $ 7,710,641 $ 2,553,064 $ 1,992,063 $ 300,299 $ 12,556,067 $ 50,150,201 $ 62,706,268 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 27,821 $ 71,726 $ 78,398 $ 24,739 $ 202,684 $ 1,098 $ 203,782 Related-party payable — — 43 29,946 29,989 — 29,989 Dividends payable — — — 125,674 125,674 — 125,674 Derivative liabilities 14,105 8,784 1 — 22,890 — 22,890 Secured financing agreements, net 3,223,863 1,501,006 516,933 296,593 5,538,395 (23,700) 5,514,695 Unsecured senior notes, net — — — 2,044,523 2,044,523 — 2,044,523 Secured borrowings on transferred loans, net 74,200 — — — 74,200 — 74,200 VIE liabilities, at fair value — — — — — 50,150,781 50,150,781 Total Liabilities 3,339,989 1,581,516 595,375 2,521,475 8,038,355 50,128,179 58,166,534 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,654 2,654 — 2,654 Additional paid-in capital 1,808,624 981,129 747,298 1,167,993 4,705,044 — 4,705,044 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 55,687 9,668 (84) — 65,271 — 65,271 Retained earnings (accumulated deficit) 2,495,536 (19,249) 639,359 (3,299,719) (184,073) — (184,073) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,359,847 971,548 1,386,573 (2,221,176) 4,496,792 — 4,496,792 Non-controlling interests in consolidated subsidiaries 10,805 — 10,115 — 20,920 22,022 42,942 Total Equity 4,370,652 971,548 1,396,688 (2,221,176) 4,517,712 22,022 4,539,734 Total Liabilities and Equity $ 7,710,641 $ 2,553,064 $ 1,992,063 $ 300,299 $ 12,556,067 $ 50,150,201 $ 62,706,268 The table below presents our condensed consolidated balance sheet as of December 31, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 7,085 $ 7,701 $ 38,798 $ 560,790 $ 614,374 $ 1,148 $ 615,522 Restricted cash 17,885 9,146 8,202 — 35,233 — 35,233 Loans held-for-investment, net 5,827,553 — 20,442 — 5,847,995 — 5,847,995 Loans held-for-sale — — 63,279 — 63,279 — 63,279 Loans transferred as secured borrowings 35,000 — — — 35,000 — 35,000 Investment securities 776,072 — 990,570 — 1,766,642 (959,024) 807,618 Properties, net — 1,667,108 277,612 — 1,944,720 — 1,944,720 Intangible assets — 128,159 125,327 — 253,486 (34,238) 219,248 Investment in unconsolidated entities 30,874 124,977 56,376 — 212,227 (7,622) 204,605 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 45,282 42,893 1,186 — 89,361 — 89,361 Accrued interest receivable 25,831 — 2,393 — 28,224 — 28,224 Other assets 13,470 29,569 59,503 1,866 104,408 (2,645) 101,763 VIE assets, at fair value — — — — — 67,123,261 67,123,261 Total Assets $ 6,779,052 $ 2,009,553 $ 1,784,125 $ 562,656 $ 11,135,386 $ 66,120,880 $ 77,256,266 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 20,769 $ 81,873 $ 68,603 $ 26,003 $ 197,248 $ 886 $ 198,134 Related-party payable — — 440 37,378 37,818 — 37,818 Dividends payable — — — 125,075 125,075 — 125,075 Derivative liabilities 3,388 — 516 — 3,904 — 3,904 Secured financing agreements, net 2,258,462 1,196,830 426,683 295,851 4,177,826 (23,700) 4,154,126 Unsecured senior notes, net — — — 2,011,544 2,011,544 — 2,011,544 Secured borrowings on transferred loans 35,000 — — — 35,000 — 35,000 VIE liabilities, at fair value — — — — — 66,130,592 66,130,592 Total Liabilities 2,317,619 1,278,703 496,242 2,495,851 6,588,415 66,107,778 72,696,193 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,639 2,639 — 2,639 Additional paid-in capital 2,218,671 696,049 883,761 892,699 4,691,180 — 4,691,180 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 44,903 (8,328) (437) — 36,138 — 36,138 Retained earnings (accumulated deficit) 2,186,727 43,129 390,994 (2,736,429) (115,579) — (115,579) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,450,301 730,850 1,274,318 (1,933,195) 4,522,274 — 4,522,274 Non-controlling interests in consolidated subsidiaries 11,132 — 13,565 — 24,697 13,102 37,799 Total Equity 4,461,433 730,850 1,287,883 (1,933,195) 4,546,971 13,102 4,560,073 Total Liabilities and Equity $ 6,779,052 $ 2,009,553 $ 1,784,125 $ 562,656 $ 11,135,386 $ 66,120,880 $ 77,256,266

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events
Subsequent Events	23. Subsequent Events Our significant events subsequent to September 30, 2017 were as follows: Convertible Senior Notes Due 2017 In October 2017, we repaid the full principal amount of the 2017 Notes in cash upon their maturity. Dividend Declaration On November 8, 2017, our board of directors declared a dividend of $0.48 per share for the fourth quarter of 2017, which is payable on January 15, 2018 to common stockholders of record as of December 29, 2017.

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Balance Sheet Presentation of the Investing and Servicing Segment"s Variable Interest Entities	Balance Sheet Presentation of the Investing and Servicing Segment’s Variable Interest Entities As noted above, the Investing and Servicing Segment operates an investment business that acquires unrated, investment grade and non-investment grade rated CMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because the Investing and Servicing Segment often serves as the special servicer of the trusts in which it invests, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. Refer to the segment data in Note 22 for a presentation of the Investing and Servicing Segment without consolidation of these VIEs.
Basis of Accounting and Principles of Consolidation	Basis of Accounting and Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, or (iii) became significant since December 31, 2016 due to a corporate action or increase in the significance of the underlying business activity.
Variable Interest Entities	Variable Interest Entities In addition to the Investing and Servicing Segment’s VIEs, certain other entities in which we hold interests are considered VIEs as the limited partners of these entities do not collectively possess (i) the right to remove the general partner without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes, (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include CMBS which are unrated and non-investment grade rated securities issued by CMBS trusts. In certain cases, we may contract to provide special servicing activities for these CMBS trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, an allocable portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding allocable amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our condensed consolidated statements of operations. The residual difference shown on our condensed consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our condensed consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related CMBS trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to nonperformance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a CMBS trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a CMBS trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a CMBS trust. REO assets generally represent a very small percentage of the overall asset pool of a CMBS trust. In a new issue CMBS trust there are no REO assets. We estimate that REO assets constitute approximately 4% of our consolidated securitization VIE assets, with the remaining 96% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standards Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate.
Fair Value Option	Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for eligible financial assets and liabilities of our consolidated securitization VIEs, loans held-for-sale originated or acquired for future securitization, purchased CMBS issued by VIEs we could consolidate in the future and certain investments in marketable equity securities. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for mortgage loans held-for-sale were made due to the short-term nature of these instruments. The fair value elections for investments in marketable equity securities were made because the shares are listed on an exchange, which allows us to determine the fair value using a quoted price from an active market.
Fair Value Measurements	Fair Value Measurements We measure our mortgage‑backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIE, we maximize the use of observable inputs over unobservable inputs. We also acknowledge that our principal market for selling CMBS assets is the securitization market where the market participant is considered to be a CMBS trust or a collateralized debt obligation (“CDO”). This methodology results in the fair value of the assets of a static CMBS trust being equal to the fair value of its liabilities. Refer to Note 19 for further discussion regarding our fair value measurements.
Business Combinations	Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. We apply the business combination provisions of ASC 805 in accounting for most acquisitions of real estate assets with in-place leases. In doing so, we record provisional amounts for certain items as of the date of acquisition. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. We do not apply the business combination provisions of ASC 805 for acquired real estate assets where a lease is entered into concurrently with the acquisition of the asset, such as in sale leaseback transactions. We account for sale leaseback transactions as asset acquisitions.
Lease Classification	Lease Classification In accordance with ASC 840, Leases , we evaluate all new or amended leases to determine if the lease (1) provides for a transfer of ownership to the lessee at the conclusion of the lease, (2) provides the lessee with a bargain purchase option, (3) has a term of 75% or more of the leased asset’s remaining useful life, or (4) has minimum lease payments with a present value of 90% or more of the leased asset’s fair value. If any of these conditions exist, we account for the lease as a capital lease, otherwise, the lease is considered an operating lease.
Loans Held-for-Investment and Provision for Loan Losses	Loans Held-for-Investment and Provision for Loan Losses Loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees, and origination costs as applicable, unless the loans are deemed impaired. We evaluate each loan classified as held-for-investment for impairment at least quarterly. In connection with this evaluation, we assess the performance of each loan and assign a risk rating based on several factors, including risk of loss, loan-to-collateral value ratio (“LTV”), collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” through “5”, from less risk to greater risk, in connection with this review. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, we record an allowance through the provision for loan losses to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. Actual losses, if any, could ultimately differ from these estimates.
Earnings Per Share	Earnings Per Share We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested restricted stock (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, and (iii) the “in-the-money” conversion options associated with our outstanding convertible senior notes (see further discussion in Notes 10 and 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period. Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the three and nine months ended September 30, 2017 and 2016, the two-class method resulted in the most dilutive EPS calculation.
Restricted Cash	Restricted Cash Restricted cash includes cash and cash equivalents that are legally or contractually restricted as to withdrawal or usage and primarily includes cash collateral associated with derivative financial instruments and funds held on behalf of borrowers and tenants. Effective January 1, 2017, we early adopted ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cas h, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning and end-of-period total amounts shown on the statement of cash flows . As required by this ASU, we applied this change retrospectively to our prior period condensed consolidated statement of cash flows for the nine months ended September 30, 2016.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our loans, investment securities and intangible assets, which has a significant impact on the amounts of interest income, credit losses (if any), and fair values that we record and/or disclose. In addition, the fair value of financial assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants would discount the expected cash flows.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to our current period presentation. In that regard, we have reclassified $0.7 million of impairment of lease intangible assets from OTTI to other expense in our consolidated statements of operations for the three and nine months ended September 30, 2016.
Recent Accounting Developments	Recent Accounting Developments On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers , which establishes key principles by which an entity determines the amount and timing of revenue recognized from customer contracts. At issuance, the ASU was effective for the first interim or annual period beginning after December 15, 2016. On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year, resulting in the ASU becoming effective for the first interim or annual period beginning after December 15, 2017. We do not expect the application of this ASU to materially impact the Company as our material revenue sources are not within the scope of the ASU. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , which impacts the accounting for equity investments, financial liabilities under the fair value option, and disclosure requirements for financial instruments. The ASU shall be applied prospectively and is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is not permitted. We do not expect the application of this ASU to materially impact the Company. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which establishes a right-of-use model for lessee accounting which results in the recognition of most leased assets and lease liabilities on the balance sheet of the lessee. Lessor accounting was not significantly changed by the ASU. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018 by applying a modified retrospective approach. Early application is permitted. We are in the process of assessing the impact this ASU will have on the Company. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which amends the principal-versus-agent implementation guidance and illustrations in the FASB’s revenue recognition standard issued in ASU 2014-09. The ASU provides further guidance to assist an entity in determining whether the nature of its promise to its customer is to provide the underlying goods or services, meaning the entity is a principal, or to arrange for a third party to provide the underlying goods or services, meaning the entity is an agent. The ASU is effective for the first interim or annual period beginning after December 15, 2017. Early application is permitted though no earlier than the first interim or annual period beginning after December 15, 2016. We do not expect the application of this ASU to materially impact the Company. On April 14, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing , which amends guidance and illustrations in the FASB’s revenue recognition standard issued in ASU 2014-09 regarding the identification of performance obligations and the implementation guidance on licensing arrangements. The ASU is effective for the first interim or annual period beginning after December 15, 2017. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments , which mandates use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that current GAAP requires. The “expected loss” model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology. The ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early application is permitted though no earlier than the first interim or annual period beginning after December 15, 2018. Though we have not completed our assessment of this ASU, we expect the ASU to result in our recognition of higher levels of allowances for loan losses. Our assessment of the estimated amount of such increases remains in process. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments , which seeks to reduce diversity in practice regarding how various cash receipts and payments are reported within the statement of cash flows. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this ASU to materially impact the Company. On October 24, 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory , which requires that an entity recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of the transfer instead of deferring the tax consequences until the asset has been sold to an outside party, as current GAAP requires. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this ASU to materially impact the Company. On January 5, 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business , which amends the definition of a business to exclude acquisitions of groups of assets where substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017 and is applied prospectively. Early application is permitted. We expect that most real estate acquired by the Company subsequent to the ASU’s effective date will be accounted for as asset acquisitions. On January 26, 2017, the FASB issued ASU 2017-04, Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment , which simplifies the method applied for measuring impairment in cases where goodwill is impaired. The ASU specifies that goodwill impairment will be measured as the excess of the reporting unit’s carrying value (inclusive of goodwill) over its fair value, eliminating the requirement that all assets and liabilities of the reporting unit be remeasured individually in connection with measurement of goodwill impairment. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and is applied prospectively. Early application is permitted though no earlier than January 1, 2017. We do not expect the application of this ASU to materially impact the Company. On February 22, 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20) , which clarifies what constitutes an in substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On August 28, 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance regarding the designation and measurement of designated hedging relationships. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018. Early application is permitted. We do not expect the application of this ASU to materially impact the Company.

Acquisitions and Dispositions (

Acquisitions and Dispositions (Tables)	9 Months Ended
	Sep. 30, 2017
Summary of assets acquired and liabilities assumed	The following table summarizes the identified assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): 2017 REIS Equity Assets acquired: Portfolio Properties $ 34,902 Intangible assets 4,272 Other assets 1 Total assets acquired 39,175 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 1,329 Total liabilities assumed 1,329 Net assets acquired $ 37,846
REIS Equity Portfolio
Schedule of measurement period adjustments	The following table summarizes the measurement period adjustment applied to the initial provisional acquisition date balance sheet (amounts in thousands): 2016 Acquisition Adjustment Measurement Initial Period Adjusted Assets acquired: Amounts Adjustment Amounts Properties $ 12,087 $ 660 $ 12,747 Intangible assets 4,270 (802) 3,468 Other assets 97 — 97 Total assets acquired 16,454 (142) 16,312 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 1,539 (142) 1,397 Total liabilities assumed 1,539 (142) 1,397 Non-controlling interests 3,084 — 3,084 Net assets acquired $ 11,831 $ — $ 11,831

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2017
Loans
Summary of investments in mortgages and loans by subordination class	The following tables summarize our investments in mortgages and loans by subordination class as of September 30, 2017 and December 31, 2016 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) September 30, 2017 Value Amount Coupon (years)(1) First mortgages (2) $ 5,527,219 $ 5,549,909 6.1 % 2.4 Subordinated mortgages (3) 222,990 224,088 10.3 % 2.1 Mezzanine loans (2) 615,562 615,724 10.6 % 1.2 Other 23,218 27,073 8.4 % 4.3 Total loans held-for-investment 6,388,989 6,416,794 Loans held-for-sale, fair value option 608,624 601,051 5.6 % 7.6 Loans transferred as secured borrowings 74,339 75,000 5.8 % 2.5 Total gross loans 7,071,952 7,092,845 Loan loss allowance (loans held-for-investment) (6,618) — Total net loans $ 7,065,334 $ 7,092,845 December 31, 2016 First mortgages (2) $ 4,865,994 $ 4,881,656 5.7 % 2.2 Subordinated mortgages (3) 278,032 293,925 8.9 % 3.3 Mezzanine loans (2) 713,757 714,608 9.6 % 1.8 Total loans held-for-investment 5,857,783 5,890,189 Loans held-for-sale, fair value option 63,279 63,065 5.3 % 10.0 Loans transferred as secured borrowings 35,000 35,000 6.2 % 0.4 Total gross loans 5,956,062 5,988,254 Loan loss allowance (loans held-for-investment) (9,788) — Total net loans $ 5,946,274 $ 5,988,254 (1) Represents the WAL of each respective group of loans as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition. (2) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.1 billion and $964.1 million being classified as first mortgages as of September 30, 2017 and December 31, 2016, respectively. (3) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.
Summary of investments in floating rate loans	The following table summarizes our investments in floating rate loans (dollars in thousands): September 30, 2017 December 31, 2016 Carrying Carrying Index Base Rate Value Base Rate Value One-month LIBOR USD 1.2322 % $ 612,994 0.7717 % $ 880,357 LIBOR floor 0.15 - 1.24 % (1) 5,301,987 0.15 - 3.00 % (1) 4,449,861 Total $ 5,914,981 $ 5,330,218 (1) The weighted-average LIBOR floor was 0.57% and 0.36% as of September 30, 2017 and December 31, 2016, respectively.
Schedule of internal rating categories	Rating Characteristics 1  Sponsor capability and financial condition—Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience.  Loan collateral and performance relative to underwriting—The collateral has surpassed underwritten expectations.  Quality and stability of collateral cash flows—Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix.  Loan structure—LTV does not exceed 65%. The loan has structural features that enhance the credit profile. 2  Sponsor capability and financial condition—Strong sponsorship with experienced management team and a responsibly leveraged portfolio.  Loan collateral and performance relative to underwriting—Collateral performance equals or exceeds underwritten expectations and covenants and performance criteria are being met or exceeded.  Quality and stability of collateral cash flows—Occupancy is stabilized with a diverse tenant mix.  Loan structure—LTV does not exceed 70% and unique property risks are mitigated by structural features. 3  Sponsor capability and financial condition—Sponsor has historically met its credit obligations, routinely pays off loans at maturity, and has a capable management team.  Loan collateral and performance relative to underwriting—Property performance is consistent with underwritten expectations.  Quality and stability of collateral cash flows—Occupancy is stabilized, near stabilized, or is on track with underwriting.  Loan structure—LTV does not exceed 80%. 4  Sponsor capability and financial condition—Sponsor credit history includes missed payments, past due payment, and maturity extensions. Management team is capable but thin.  Loan collateral and performance relative to underwriting—Property performance lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. A sale of the property may be necessary in order for the borrower to pay off the loan at maturity.  Quality and stability of collateral cash flows—Occupancy is not stabilized and the property has a large amount of rollover.  Loan structure—LTV is 80% to 90%. 5  Sponsor capability and financial condition—Credit history includes defaults, deeds‑in‑lieu, foreclosures, and/or bankruptcies.  Loan collateral and performance relative to underwriting—Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Sale proceeds would not be sufficient to pay off the loan at maturity.  Quality and stability of collateral cash flows—The property has material vacancy and significant rollover of remaining tenants.  Loan structure—LTV exceeds 90%.
Schedule of risk ratings by class of loan	As of September 30, 2017, the risk ratings for loans subject to our rating system, which excludes loans for which the fair value option has been elected, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans Other For-Sale Borrowings Total Loans 1 $ 2,205 $ — $ — $ 20,446 $ — $ — $ 22,651 0.3 % 2 2,109,411 4,424 132,843 — — — 2,246,678 31.8 % 3 3,164,497 218,566 423,779 2,772 — 74,339 3,883,953 54.9 % 4 194,916 — 58,940 — — — 253,856 3.6 % 5 56,190 — — — — — 56,190 0.8 % N/A — — — — 608,624 — 608,624 8.6 % $ 5,527,219 $ 222,990 $ 615,562 $ 23,218 $ 608,624 $ 74,339 $ 7,071,952 100.0 % As of December 31, 2016, the risk ratings for loans subject to our rating system, which excludes loans for which the fair value option has been elected, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans Transferred % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans For-Sale Borrowings Total Loans 1 $ 921 $ — $ — $ — $ — $ 921 — % 2 1,092,731 27,069 194,803 — 35,000 1,349,603 22.6 % 3 3,348,874 250,963 425,972 — — 4,025,809 67.6 % 4 365,151 — 92,982 — — 458,133 7.7 % 5 58,317 — — — — 58,317 1.0 % N/A — — — 63,279 — 63,279 1.1 % $ 4,865,994 $ 278,032 $ 713,757 $ 63,279 $ 35,000 $ 5,956,062 100.0 %
Schedule of activity in allowance for loan losses	The following table presents the activity in our allowance for loan losses (amounts in thousands): For the Nine Months Ended September 30, 2017 2016 Allowance for loan losses at January 1 $ 9,788 $ 6,029 Provision for loan losses (3,170) 3,395 Charge-offs — — Recoveries — — Allowance for loan losses at September 30 $ 6,618 $ 9,424 Recorded investment in loans related to the allowance for loan loss $ 310,046 $ 488,576
Schedule of activity in loan portfolio	The activity in our loan portfolio was as follows (amounts in thousands): For the Nine Months Ended September 30, 2017 2016 Balance at January 1 $ 5,946,274 $ Acquisitions/originations/additional funding 3,722,624 2,795,772 Capitalized interest (1) 55,987 65,003 Basis of loans sold (2) (1,024,964) (1,359,780) Loan maturities/principal repayments (1,742,494) (2,188,583) Discount accretion/premium amortization 27,014 38,809 Changes in fair value 45,484 70,122 Unrealized foreign currency remeasurement gain (loss) 31,395 (37,332) Change in loan loss allowance, net 3,170 (3,395) Transfer to/from other asset classifications 844 36,566 (3) Balance at September 30 $ 7,065,334 $ 5,680,699 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 11 for additional disclosure on these transactions. Primarily represents commercial mortgage loans acquired from CMBS trusts which are consolidated as VIEs on our balance sheet.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Investment Securities
Schedule of investment securities	Investment securities were comprised of the following as of September 30, 2017 and December 31, 2016 (amounts in thousands): Carrying Value as of September 30, 2017 December 31, 2016 RMBS, available-for-sale $ 253,252 $ 253,915 CMBS, fair value option (1) 1,026,634 990,570 Held-to-maturity (“HTM”) securities 411,196 509,980 Equity security, fair value option 13,529 12,177 Subtotal — Investment securities 1,704,611 1,766,642 VIE eliminations (1) (1,002,793) (959,024) Total investment securities $ 701,818 $ 807,618 (1) Certain fair value option CMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810.
Schedule of purchases, sales and principal collections for all investment securities	Purchases, sales and principal collections for all investment securities were as follows (amounts in thousands): RMBS, CMBS, fair HTM Equity available-for-sale value option Securities Security Total Three Months Ended September 30, 2017 Purchases (1) $ — $ 11,798 $ 50,000 $ — $ 61,798 Sales (2) — — — — — Principal collections 10,307 1,666 111,671 — 123,644 Three Months Ended September 30, 2016 Purchases (1) $ 8,868 $ — $ — $ — $ 8,868 Sales (2) — 17,456 (5) — — 17,456 Principal collections 9,917 12,289 566 — 22,772 RMBS, CMBS, fair HTM Equity available-for-sale value option Securities Security Total Nine Months Ended September 30, 2017 Purchases (3) $ 7,433 $ 11,798 $ 50,000 $ — $ 69,231 Sales (4) — 11,134 — — 11,134 Principal collections 29,090 8,754 — Nine Months Ended September 30, 2016 Purchases (3) $ 97,204 $ 57,576 $ $ — $ Sales (4) — 18,725 (5) — — 18,725 Principal collections 32,925 31,734 5,657 — 70,316 (1) During the three months ended September 30, 2017 and 2016, we purchased $30.9 million and $25.6 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $19.1 million and $25.6 million, respectively, of this amount is eliminated and reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (2) During the three months ended September 30, 2017 and 2016, we sold $1.5 million and $17.5 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $1.5 million of our sales during the three months ended September 30, 2017 is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows. During the three months ended September 30, 2016, none of our sales were eliminated due to the consolidation of securitization VIEs. (3) During the nine months ended September 30, 2017 and 2016, we purchased $92.6 million and $126.9 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $80.8 million and $69.3 million, respectively, of this amount is eliminated and reflected as repayment of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (4) During the nine months ended September 30, 2017 and 2016, we sold $22.8 million and $19.3 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $11.7 million and $0.6 million, respectively, of this amount is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows. (5) Settlement of $14.9 million occurred subsequent to September 30, 2016. We account for all investment securities transactions on a trade-date basis.
Summary of investments in available-for-sale RMBS and single-borrower CMBS where the fair value option has not been elected	The tables below summarize various attributes of our investments in available-for-sale RMBS as of September 30, 2017 and December 31, 2016 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Purchase Recorded Gross Gross Net Amortized Credit Amortized Non-Credit Unrealized Unrealized Fair Value Cost OTTI Cost OTTI Gains Losses Adjustment Fair Value September 30, 2017 RMBS $ 207,492 $ (9,897) $ 197,595 $ (95) $ 55,766 $ (14) $ 55,657 $ 253,252 December 31, 2016 RMBS $ 219,171 $ (10,185) $ 208,986 $ (94) $ 45,113 $ (90) $ 44,929 $ Weighted Average Coupon (1) Weighted Average WAL September 30, 2017 RMBS 2.5 % B- 6.4 December 31, 2016 RMBS 2.1 % B 6.1 (1) Calculated using the September 30, 2017 and December 31, 2016 one-month LIBOR rate of 1.232% and 0.772%, respectively, for floating rate securities. (2) Represents the WAL of each respective group of securities as of the respective balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments.
Reconciliation of aggregate principal balance to amortized cost for RMBS and single-borrower CMBS, excluding CMBS where the fair value option is elected	The following table contains a reconciliation of aggregate principal balance to amortized cost for our RMBS as of September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Principal balance $ 379,432 $ 399,883 Accretable yield (58,763) (64,290) Non-accretable difference (123,074) (126,607) Total discount (181,837) (190,897) Amortized cost $ 197,595 $ 208,986
Schedule of changes to accretable yield and non-accretable difference for RMBS and single-borrower CMBS, excluding CMBS where the fair value option is elected	The following table discloses the changes to accretable yield and non-accretable difference for our RMBS during the three and nine months ended September 30, 2017 (amounts in thousands): Non-Accretable Three Months Ended September 30, 2017 Accretable Yield Difference Balance as of July 1, 2017 $ 59,777 $ 126,708 Accretion of discount (3,187) — Principal write-downs, net — (1,461) Purchases — — Sales — — OTTI — — Transfer to/from non-accretable difference 2,173 (2,173) Balance as of September 30, 2017 $ 58,763 $ 123,074 Nine Months Ended September 30, 2017 Balance as of January 1, 2017 $ 64,290 $ 126,607 Accretion of discount (10,375) — Principal write-downs, net — (3,828) Purchases 311 4,723 Sales — — OTTI 109 — Transfer to/from non-accretable difference 4,428 (4,428) Balance as of September 30, 2017 $ 58,763 $ 123,074
Schedule of gross unrealized losses and estimated fair value of securities in an unrealized loss position, excluding CMBS where the fair value option is elected	The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016, and for which OTTIs (full or partial) have not been recognized in earnings (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a loss less than loss greater than loss less than loss greater than 12 months 12 months 12 months 12 months As of September 30, 2017 RMBS $ 10,463 $ 645 $ (80) $ (29) As of December 31, 2016 RMBS $ 8,819 $ 957 $ (90) $ (94)
Summary of investments in HTM securities	Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value September 30, 2017 CMBS $ 390,966 $ 2,446 $ (5,875) $ 387,537 Preferred interests 20,230 675 — 20,905 Total $ 411,196 $ 3,121 $ (5,875) $ 408,442 December 31, 2016 CMBS $ 490,107 $ 2,106 $ (8,648) $ 483,565 Preferred interests 19,873 727 — 20,600 Total $ 509,980 $ 2,833 $ (8,648) $ 504,165 The table below summarizes the maturities of our HTM CMBS and our HTM preferred equity interests in limited liability companies that own commercial real estate as of September 30, 2017 (amounts in thousands): Preferred CMBS Interests Total Less than one year $ 129,282 $ — $ 129,282 One to three years 261,684 — 261,684 Three to five years — — — Thereafter — 20,230 20,230 Total $ 390,966 $ 20,230 $ 411,196

Properties (Tables)

Properties (Tables)	9 Months Ended
	Sep. 30, 2017
Properties
Summary of properties	The table below summarizes our properties held as of September 30, 2017 and December 31, 2016 (dollars in thousands): Depreciable Life September 30, 2017 December 31, 2016 Property Segment Land and land improvements 0 – 15 years $ 526,591 $ 385,860 Buildings and building improvements 5 – 45 years 1,755,511 1,291,531 Furniture & fixtures 3 – 7 years 26,038 23,035 Investing and Servicing Segment Land and land improvements 0 – 15 years 90,263 89,425 Buildings and building improvements 3 – 40 years 210,183 195,178 Furniture & fixtures 2 – 5 years 992 1,256 Properties, cost 2,609,578 1,986,285 Less: accumulated depreciation (88,236) (41,565) Properties, net $ 2,521,342 $ 1,944,720

Investment in Unconsolidated 37

Investment in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2017
Investment in Unconsolidated Entities
Summary of investments in unconsolidated entities	The table below summarizes our investments in unconsolidated entities as of September 30, 2017 and December 31, 2016 (dollars in thousands): Participation / Carrying value as of Ownership % (1) September 30, 2017 December 31, 2016 Equity method: Retail Fund (see Note 15) 33% $ 109,607 (2) $ 124,977 Investor entity which owns equity in an online real estate company 50% 75,249 21,677 Equity interests in commercial real estate 16% - 50% 23,310 23,297 Various 25% - 50% 7,015 6,640 215,181 176,591 Cost method: Equity interest in a servicing and advisory business 6% 12,234 12,234 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 3% 6,810 6,555 28,269 28,014 $ 243,450 $ 204,605 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) During the nine months ended September 30, 2017, we funded $15.5 million in capital commitments.

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangibles
Summary of intangibles assets	The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of September 30, 2017 and December 31, 2016 (amounts in thousands): As of September 30, 2017 As of December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 33,781 $ — $ 33,781 $ 55,082 $ — $ 55,082 In-place lease intangible assets 181,636 (59,308) 122,328 175,409 (38,532) 136,877 Favorable lease intangible assets 32,070 (6,314) 25,756 30,459 (3,170) 27,289 Total net intangible assets $ 247,487 $ (65,622) $ 181,865 $ 260,950 $ (41,702) $ 219,248
Summary of activity within intangible assets	The following table summarizes the activity within intangible assets for the nine months ended September 30, 2017 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2017 $ 55,082 $ 136,877 $ 27,289 $ 219,248 Acquisition of additional REIS Equity Portfolio properties — 3,810 462 4,272 Amortization — (20,098) (2,940) (23,038) Sales — (367) (109) (476) Foreign exchange gain — 3,908 1,044 4,952 Impairment (1) — (981) (9) (990) Changes in fair value due to changes in inputs and assumptions (21,301) — — (21,301) Measurement period adjustments — (821) 19 (802) Balance as of September 30, 2017 $ 33,781 $ 122,328 $ 25,756 $ 181,865 (1) Impairment of intangible lease assets is recognized within other expense in our condensed consolidated statements of operations.
Schedule of future amortization expense	The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2017 (remainder of) $ 7,556 2018 27,711 2019 21,288 2020 15,908 2021 13,623 Thereafter 61,998 Total $ 148,084

Secured Financing Agreements (T

Secured Financing Agreements (Tables)	9 Months Ended
	Sep. 30, 2017
Secured Financing Agreements.
Summary of secured financing agreements	The following table is a summary of our secured financing agreements in place as of September 30, 2017 and December 31, 2016 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum September 30, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2017 2016 Lender 1 Repo 1 (b) (b) LIBOR + 1.75% to 5.75% $ 1,534,069 $ $ $ 944,712 Lender 2 Repo 1 Oct 2017 Oct 2020 LIBOR + 1.75% to 2.75% 350,508 500,000 236,055 132,941 Lender 3 Repo 1 May 2018 May 2019 LIBOR + 2.75% to 3.10% 110,086 76,820 76,820 78,288 Lender 4 Repo 2 Dec 2018 Dec 2020 LIBOR + 2.00% to 3.25% 571,746 (c) 221,544 166,394 Lender 6 Repo 1 Aug 2020 N/A LIBOR + 2.50% to 2.75% 724,164 600,000 475,555 182,586 Lender 6 Repo 2 Nov 2019 Nov 2020 GBP LIBOR + 2.75% 173,516 121,280 121,280 121,509 Lender 9 Repo 1 Dec 2017 Dec 2018 LIBOR + 1.65% 340,620 254,447 254,447 283,575 Lender 10 Repo 1 Mar 2020 Mar 2022 LIBOR + 2.00% to 2.75% 169,733 140,000 136,800 — Lender 11 Repo 1 Jun 2019 Jun 2020 LIBOR + 2.75% — 200,000 — — Lender 11 Repo 2 Sep 2018 Sep 2022 LIBOR + 2.25% to 2.75% — 250,000 — — Lender 7 Secured Financing Jul 2018 Jul 2019 LIBOR + 2.75% (d) 46,800 650,000 (e) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% 30,147 75,000 18,226 43,555 Conduit Repo 2 Nov 2017 N/A LIBOR + 2.25% 53,751 150,000 40,842 14,944 Conduit Repo 3 Feb 2018 N/A LIBOR + 2.10% 136,254 150,000 103,678 — Conduit Repo 4 Oct 2017 Oct 2020 LIBOR + 2.25% — 100,000 — — MBS Repo 1 (f) (f) LIBOR + 1.90% 10,000 6,510 6,510 21,052 MBS Repo 2 Jun 2020 N/A LIBOR/EURIBOR + 2.00% to 2.95% 261,066 191,184 191,184 239,434 MBS Repo 3 (g) (g) LIBOR + 1.32% to 1.95% 384,546 254,668 254,668 285,209 MBS Repo 4 (h) N/A LIBOR + 1.20% to 1.90% 179,384 225,000 2,000 5,633 Investing and Servicing Segment Property Mortgages Feb 2018 to Jun 2026 N/A Various 245,094 201,238 177,217 164,611 Ireland Portfolio Mortgage May 2020 N/A EURIBOR + 1.69% 491,298 344,525 344,525 309,246 Woodstar Portfolio Mortgages Nov 2025 to Oct 2026 N/A 3.72% to 3.97% 369,519 276,748 276,748 276,748 Woodstar Portfolio Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 308,805 133,967 133,967 135,584 Medical Office Portfolio Mortgages Dec 2021 to Feb 2022 Dec 2023 to Feb 2024 LIBOR + 2.50% (i) 741,304 527,124 497,613 491,197 Master Lease Portfolio Mortgages Oct 2027 N/A 4.36% to 4.38% 471,762 265,900 265,900 — Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (d) 992,366 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (d) — 100,000 — — FHLB Feb 2021 N/A LIBOR + 0.15% to 0.34% 338,956 250,000 250,000 — $ 9,035,494 $ Unamortized net premium 2,579 2,640 Unamortized deferred financing costs (43,604) (45,732) $ $ (a) Subject to certain conditions as defined in the respective facility agreement. (b) Maturity date for borrowings collateralized by loans is September 2018 before extension options and September 2021 assuming exercise of extension options. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed September 2025. (c) The initial maximum facility size of $600.0 million may be increased to $1.0 billion at our option, subject to certain conditions. (d) Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. (e) The initial maximum facility size of $450.0 million may be increased to $650.0 million, subject to certain conditions. (f) Facility carries a rolling 11 month term which may reset monthly with the lender’s consent not to exceed December 2018. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of September 30, 2017. (g) Facility carries a rolling 12 month term which may reset monthly with the lender’s consent. Current maturity is September 2018. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of September 30, 2017. (h) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2018. (i) Subject to a 25 basis point floor.
Schedule of five-year principal repayments for secured financings	The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands): Repurchase Other Secured Agreements Financing Total 2017 (remainder of) $ 781,261 $ 14,461 $ 795,722 2018 988,168 76,952 1,065,120 2019 395,715 1,355 397,070 2020 1,041,480 358,102 1,399,582 2021 2,289 565,815 568,104 Thereafter 82,611 1,247,511 1,330,122 Total $ 3,291,524 $ 2,264,196 $ 5,555,720
Schedule of outstanding balance of repurchase agreements related to the following asset collateral classes	The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of September 30, 2017 and December 31, 2016 (amounts in thousands): Class of Collateral September 30, 2017 December 31, 2016 Loans held-for-investment $ 2,692,642 $ 1,890,925 Loans held-for-sale 144,520 34,024 Investment securities 454,362 551,328 $ 3,291,524 $ 2,476,277

Unsecured Senior Notes (Tables)

Unsecured Senior Notes (Tables)	9 Months Ended
	Sep. 30, 2017
Unsecured Senior Notes
Schedule of unsecured convertible senior notes outstanding	The following table is a summary of our unsecured senior notes outstanding as of September 30, 2017 and December 31, 2016 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization September 30, 2017 December 31, 2016 2017 Convertible Notes 3.75 % 5.87 % 10/15/2017 years $ 411,885 $ 411,885 2018 Convertible Notes 4.55 % 6.10 % 3/1/2018 years 369,981 599,981 2019 Convertible Notes 4.00 % 5.35 % 1/15/2019 years 341,363 341,363 2021 Senior Notes 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 — Total principal amount 2,073,229 2,053,229 Unamortized discount—Convertible Notes (14,268) (26,135) Unamortized discount—Senior Notes (8,420) (9,728) Unamortized deferred financing costs (6,018) (5,822) Carrying amount of debt components $ 2,044,523 $ 2,011,544 Carrying amount of conversion option equity components recorded in additional paid-in capital $ 31,638 $ 45,988 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible notes, the value of which reduced the initial liability and was recorded in additional paid‑in capital.
Schedule of conversion attributes on Convertible Notes outstanding	The following table details the conversion attributes of our Convertible Notes outstanding as of September 30, 2017 (amounts in thousands, except rates): September 30, 2017 Conversion Spread Value - Shares (3) Conversion Conversion For the Three Months Ended September 30, For the Nine Months Ended September 30, Rate (1) Price (2) 2017 2016 2017 2016 2017 Notes 41.7397 $ 23.96 — — — — 2018 Notes 48.0666 $ 20.80 742 1,595 733 1,743 2019 Notes 50.7031 $ 19.72 1,571 1,850 1,551 2,023 2023 Notes 38.5959 $ 25.91 — — — — 2,313 3,445 2,284 3,766 (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of Convertible Notes converted, as adjusted in accordance with the indentures governing the Convertible Notes (including the applicable supplemental indentures) as a result of the spin-off of our former single family residential segment to our stockholders in January 2014 and cash dividend payments. (2) As of September 30, 2017 and 2016, the market price of the Company’s common stock was $21.72 and $22.52 per share, respectively. (3) The conversion spread value represents the portion of the convertible senior notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion.

Loan Securitization_Sale Acti41

Loan Securitization/Sale Activities (Tables)	9 Months Ended
	Sep. 30, 2017
Summary of fair value and par value of loans sold and amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with the loans	The following summarizes the fair value and par value of loans sold from our conduit platform, as well as the amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with these loans for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fair value of loans sold $ 517,351 $ 648,179 $ 987,828 $ Par value of loans sold 498,022 599,997 938,879 Repayment of repurchase agreements 376,687 366,268 709,666 709,049
Lending Segment
Summary of loans sold and loans transferred as secured borrowings by the Lending segment net of expenses	The following table summarizes our loans sold and loans transferred as secured borrowings by the Lending Segment net of expenses (amounts in thousands): Loan Transfers Loan Transfers Accounted Accounted for as Secured for as Sales Borrowings Face Amount Proceeds Face Amount Proceeds For the Three Months Ended September 30, 2017 $ — $ — $ 75,000 $ 74,200 2016 116,000 115,157 — — For the Nine Months Ended September 30, 2017 $ 38,750 $ 37,079 $ 75,000 $ 74,200 2016 238,514 236,433 — —

Derivatives and Hedging Activ42

Derivatives and Hedging Activity (Tables)	9 Months Ended
	Sep. 30, 2017
Derivatives and Hedging Activity
Summary of foreign exchange ("Fx") forwards, interest rate swaps, interest rate caps and credit index instruments	The following table summarizes our non-designated foreign exchange (“Fx”) forwards, interest rate contracts, and credit index instruments as of September 30, 2017 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") (1) 44 283,394 EUR November 2017 – June 2020 Fx contracts – Sell Pounds Sterling ("GBP") 129 263,925 GBP October 2017 – July 2020 Interest rate swaps – Paying fixed rates 30 815,730 USD April 2019 – September 2027 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 8 68,194 USD June 2018 – October 2021 Credit index instruments 10 59,000 USD September 2058 – November 2059 Total 223 (1) Includes 33 Fx contracts entered into to hedge our Euro currency exposure created by our acquisition of the Ireland Portfolio. As of September 30, 2017, these contracts have an aggregate notional amount of €231.1 million and varying maturities through June 2020.
Schedule of fair values of derivative financial instruments	The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) as of in a Liability Position (2) as of September 30, December 31, September 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate swaps $ 33 $ 30 $ 2 $ 56 Total derivatives designated as hedging instruments 33 30 2 56 Derivatives not designated as hedging instruments: Interest rate contracts 23,961 26,591 — 3,484 Foreign exchange contracts 13,644 62,295 22,888 364 Credit index instruments 655 445 — — Total derivatives not designated as hedging instruments 38,260 89,331 22,888 3,848 Total derivatives $ 38,293 $ 89,361 $ 22,890 $ 3,904 (1) Classified as derivative assets in our condensed consolidated balance sheets. (2) Classified as derivative liabilities in our condensed consolidated balance sheets.
Schedule of effect of derivative financial instruments on the consolidated statements of operations and of comprehensive income	Gain (Loss) Gain (Loss) Reclassified Gain (Loss) Recognized from AOCI Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain (Loss) For the Three Months Ended September 30, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2017 $ (3) $ 19 $ — Interest expense 2016 $ 107 $ (78) $ — Interest expense For the Nine Months Ended September 30, 2017 $ 45 $ (11) $ — Interest expense 2016 $ (397) $ (261) $ — Interest expense
Schedule of Gain / (Loss) recognized in Income for Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Amount of Gain (Loss) Recognized in Income for the Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Recognized in Income 2017 2016 2017 2016 Interest rate contracts Loss on derivative financial instruments $ (3,836) $ (626) $ (10,190) $ (25,899) Foreign exchange contracts Loss on derivative financial instruments (19,650) (189) (54,814) 21,160 Credit index instruments Loss on derivative financial instruments (738) (1,513) (1,155) (2,054) $ (24,224) $ (2,328) $ (66,159) $ (6,793)

Offsetting Assets and Liabili43

Offsetting Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Offsetting Assets and Liabilities
Schedule of offsetting assets and liabilities	The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (iv) Gross Amounts Not Offset in the Statement (ii) (iii) = (i) - (ii) of Financial Position Gross Amounts Net Amounts Cash (i) Offset in the Presented in Collateral Gross Amounts Statement of the Statement of Financial Received / (v) = (iii) - (iv) Recognized Financial Position Financial Position Instruments Pledged Net Amount As of September 30, 2017 Derivative assets $ 38,293 $ — $ 38,293 $ 13,677 $ — $ 24,616 Derivative liabilities $ 22,890 $ — $ 22,890 $ 13,677 $ 6,859 $ 2,354 Repurchase agreements 3,291,524 — 3,291,524 3,291,524 — — $ 3,314,414 $ — $ 3,314,414 $ 3,305,201 $ 6,859 $ 2,354 As of December 31, 2016 Derivative assets $ 89,361 $ — $ 89,361 $ 491 $ — $ 88,870 Derivative liabilities $ 3,904 $ — $ 3,904 $ 491 $ 3,413 $ — Repurchase agreements 2,476,277 — 2,476,277 2,476,277 — — $ 2,480,181 $ — $ 2,480,181 $ 2,476,768 $ 3,413 $ —

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Schedule of dividends declared by board of directors	Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 8/9/17 9/29/17 9/28/17 10/13/17 $ 0.48 Quarterly 5/9/17 6/30/17 6/28/17 7/14/17 $ 0.48 Quarterly 2/23/17 3/31/17 3/29/17 4/14/17 $ 0.48 Quarterly
Summary of share awards granted under the Manager Equity Plan	The table below summarizes our share awards granted or vested under the Manager Equity Plan and 2017 Manager Equity Plan during the nine months ended September 30, 2017 and 2016 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period March 2017 RSU 1,000,000 $ 22,240 3 years May 2015 RSU 675,000 16,511 3 years January 2014 RSU 489,281 14,776 3 years January 2014 RSU 2,000,000 55,420 3 years
Schedule of Non-Vested Shares and Share Equivalents	2017 Weighted Average 2017 Manager Grant Date Fair Equity Plan Equity Plan Total Value (per share) Balance as of January 1, 2017 539,124 281,250 820,374 $ 22.34 Granted 548,160 1,000,000 1,548,160 22.27 Vested (337,192) (335,416) (672,608) 22.69 Forfeited (34,531) — (34,531) 22.56 Balance as of September 30, 2017 715,561 945,834 1,661,395 22.09 Equity-based award activity for awards granted under the Equity Plan and Non-Executive Director Stock Plan is reflected within the 2017 Equity Plan column, and for awards granted under the Manager Equity Plan, within the 2017 Manager Equity Plan column.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings per Share
Reconciliation of net income from continuing operations and the number of shares of common stock used in the computation of basic EPS and diluted EPS	The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Basic Earnings Income attributable to STWD common stockholders $ 88,428 $ 105,766 $ 308,166 $ 243,896 Less: Income attributable to participating shares (761) (456) (2,489) (1,743) Basic earnings $ 87,667 $ 105,310 $ 305,677 $ 242,153 Diluted Earnings Basic — Income attributable to STWD common stockholders $ 88,428 $ 105,766 $ 308,166 $ 243,896 Less: Income attributable to participating shares (761) (456) (2,489) (1,743) Add: Undistributed earnings to participating shares — — — — Less: Undistributed earnings reallocated to participating shares — — — — Diluted earnings $ 87,667 $ 105,310 $ 305,677 $ 242,153 Number of Shares: Basic — Average shares outstanding 259,759 237,429 259,412 237,017 Effect of dilutive securities — Convertible Notes 2,313 3,445 2,284 3,766 Effect of dilutive securities — Contingently issuable shares 236 138 236 138 Effect of dilutive securities — Unvested non-participating shares 129 79 123 61 Diluted — Average shares outstanding 262,437 241,091 262,055 240,982 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 0.34 $ 0.44 $ 1.18 $ 1.02 Diluted $ 0.33 $ 0.44 $ 1.17 $ 1.00

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income
Schedule of changes in AOCI by component	The changes in AOCI by component are as follows (amounts in thousands): Cumulative Unrealized Gain Effective Portion of (Loss) on Foreign Cumulative Loss on Available-for- Currency Cash Flow Hedges Sale Securities Translation Total Three Months Ended September 30, 2017 Balance at July 1, 2017 $ 52 $ 51,682 $ 4,247 $ 55,981 OCI before reclassifications (3) 3,975 5,337 9,309 Amounts reclassified from AOCI (19) — — (19) Net period OCI (22) 3,975 5,337 9,290 Balance at September 30, 2017 $ 30 $ 55,657 $ 9,584 $ 65,271 Three Months Ended September 30, 2016 Balance at July 1, 2016 $ (386) $ 39,858 $ (6,845) $ 32,627 OCI before reclassifications 107 6,105 1,331 7,543 Amounts reclassified from AOCI 78 — — 78 Net period OCI 185 6,105 1,331 7,621 Balance at September 30, 2016 $ (201) $ 45,963 $ (5,514) $ 40,248 Nine Months Ended September 30, 2017 Balance at January 1, 2017 $ (26) $ 44,929 $ (8,765) $ 36,138 OCI before reclassifications 45 10,823 18,349 29,217 Amounts reclassified from AOCI 11 (95) — (84) Net period OCI 56 10,728 18,349 29,133 Balance at September 30, 2017 $ 30 $ 55,657 $ 9,584 $ 65,271 Nine Months Ended September 30, 2016 Balance at January 1, 2016 $ (65) $ 37,307 $ (7,513) $ 29,729 OCI before reclassifications (397) 8,656 1,999 10,258 Amounts reclassified from AOCI 261 — — 261 Net period OCI (136) 8,656 1,999 10,519 Balance at September 30, 2016 $ (201) $ 45,963 $ (5,514) $ 40,248
Schedule of reclassifications out of AOCI that impacted the condensed consolidated statements of operations	The reclassifications out of AOCI impacted the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 as follows (amounts in thousands): Amounts Reclassified from Amounts Reclassified from AOCI during the Three Months AOCI during the Nine Months Affected Line Item Ended September 30, Ended September 30, in the Statements Details about AOCI Components 2017 2016 2017 2016 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 19 $ (78) $ (11) $ (261) Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection — — 95 — Interest income from investment securities Total reclassifications for the period $ 19 $ (78) $ 84 $ (261)

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value
Schedule of financial assets and liabilities carried at fair value on a recurring basis	The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the condensed consolidated balance sheets by their level in the fair value hierarchy as of September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 608,624 $ — $ — $ 608,624 RMBS 253,252 — — 253,252 CMBS 23,841 — — 23,841 Equity security 13,529 13,529 — — Domestic servicing rights 33,781 — — 33,781 Derivative assets 38,293 — 38,293 — VIE assets 51,197,981 — — 51,197,981 Total $ 52,169,301 $ 13,529 $ 38,293 $ 52,117,479 Financial Liabilities: Derivative liabilities $ 22,890 $ — $ 22,890 $ — VIE liabilities 50,150,781 — 47,890,998 2,259,783 Total $ 50,173,671 $ — $ 47,913,888 $ 2,259,783 December 31, 2016 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 63,279 $ — $ — $ 63,279 RMBS 253,915 — — 253,915 CMBS 31,546 — — 31,546 Equity security 12,177 12,177 — — Domestic servicing rights 55,082 — — 55,082 Derivative assets 89,361 — 89,361 — VIE assets 67,123,261 — — 67,123,261 Total $ 67,628,621 $ 12,177 $ 89,361 $ 67,527,083 Financial Liabilities: Derivative liabilities $ 3,904 $ — $ 3,904 $ — VIE liabilities 66,130,592 — 63,545,223 2,585,369 Total $ 66,134,496 $ — $ 63,549,127 $ 2,585,369
Schedule of changes in financial assets and liabilities classified as Level III	The changes in financial assets and liabilities classified as Level III are as follows for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Domestic Loans Servicing VIE Three Months Ended September 30, 2017 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total July 1, 2017 balance $ 610,116 $ 256,397 $ 13,848 $ 38,648 $ 53,902,715 $ (2,164,593) $ 52,657,131 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 19,485 — (673) (4,867) (3,533,620) 151,273 (3,368,402) Net accretion — 3,187 — — — — 3,187 Included in OCI — 3,975 — — — — 3,975 Purchases / Originations 524,409 — 11,798 — — — 536,207 Sales (517,350) — — — — — (517,350) Issuances — — — — — (1,469) (1,469) Cash repayments / receipts (28,036) (10,307) (1,666) — — (4,910) (44,919) Transfers into Level III — — — — — (233,367) (233,367) Transfers out of Level III — — — — — 67,272 67,272 Consolidation of VIEs — — — — 964,564 (75,585) 888,979 Deconsolidation of VIEs — — 534 — (135,678) 1,596 (133,548) September 30, 2017 balance $ 608,624 $ 253,252 $ 23,841 $ 33,781 $ 51,197,981 $ (2,259,783) $ 49,857,696 Amount of total (losses) gains included in earnings attributable to assets still held at September 30, 2017 $ (2,597) $ 3,187 $ (230) $ (4,867) $ (3,533,620) $ 151,273 $ (3,386,854) Domestic Loans Servicing VIE Three Months Ended September 30, 2016 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total July 1, 2016 balance $ 237,106 $ 251,260 $ 114,340 $ 83,301 $ 80,076,117 $ (3,540,652) $ 77,221,472 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 49,996 — (2,993) (14,283) (8,143,518) 653,103 (7,457,695) Net accretion — 4,197 — — — — 4,197 Included in OCI — 6,105 — — — — 6,105 Purchases / Originations 709,045 8,868 — — — — 717,913 Sales (648,179) — (17,456) — — — (665,635) Cash repayments / receipts (478) (9,917) (12,289) — — 7,819 (14,865) Transfers into Level III — — — — — (1) (1) Transfers out of Level III — — — — — 40,959 40,959 Consolidation of VIEs — — (24,403) — 2,268,424 (109,913) 2,134,108 Deconsolidation of VIEs — — 1,586 — (277,324) 37,188 (238,550) September 30, 2016 balance $ 347,490 $ 260,513 $ 58,785 $ 69,018 $ 73,923,699 $ (2,911,497) $ 71,748,008 Amount of total gains (losses) included in earnings attributable to assets still held at September 30, 2016 $ 9,746 $ 4,197 $ (1,852) $ (14,283) $ (8,143,518) $ 653,103 $ (7,492,607) Domestic Loans Servicing VIE Nine Months Ended September 30, 2017 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2017 balance $ 63,279 $ 253,915 $ 31,546 $ 55,082 $ 67,123,261 $ (2,585,369) $ 64,941,714 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 45,484 — (4,359) (21,301) (15,773,529) 749,757 OTTI — (109) — — — — (109) Net accretion — 10,375 — — — — 10,375 Included in OCI — 10,728 — — — — 10,728 Purchases / Originations 1,527,364 7,433 11,798 — — — 1,546,595 Sales (987,828) — (11,134) — — — (998,962) Issuances — — — — — (11,657) (11,657) Cash repayments / receipts (39,675) (29,090) (8,754) — — (40,946) (118,465) Transfers into Level III — — — — — (616,794) (616,794) Transfers out of Level III — — — — — 231,012 231,012 Consolidation of VIEs — — — — 2,092,516 (75,585) 2,016,931 Deconsolidation of VIEs — — 4,744 — (2,244,267) 89,799 (2,149,724) September 30, 2017 balance $ 608,624 $ 253,252 $ 23,841 $ 33,781 $ 51,197,981 $ (2,259,783) $ 49,857,696 Amount of total (losses) gains included in earnings attributable to assets still held at September 30, 2017 $ (2,621) $ 10,159 $ 56 $ (21,301) $ (15,773,529) $ 749,757 $ (15,037,479) Domestic Loans Servicing VIE Nine Months Ended September 30, 2016 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2016 balance $ 203,865 $ 176,224 $ 212,981 $ 119,698 $ 76,675,689 $ (2,552,448) $ 74,836,009 Impact of ASU 2015-02 adoption (1) — — — (17,467) 17,467 — — Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 70,122 — (677) (33,213) (16,483,798) 946,703 (15,500,863) Net accretion — 11,354 — — — — 11,354 Included in OCI — 8,656 — — — — 8,656 Purchases / Originations 1,197,801 97,204 57,576 — — — 1,352,581 Sales (1,123,512) — (18,725) — — — (1,142,237) Issuances — — — — — (596) (596) Cash repayments / receipts (786) (32,925) (31,734) — — 28,591 (36,854) Transfers into Level III — — — — — (972,588) (972,588) Transfers out of Level III — — — — — 187,683 187,683 Consolidation of VIEs — — (162,745) — 19,118,645 (593,818) 18,362,082 Deconsolidation of VIEs — — 2,109 — (5,404,304) 44,976 (5,357,219) September 30, 2016 balance $ 347,490 $ 260,513 $ 58,785 $ 69,018 $ 73,923,699 $ (2,911,497) $ 71,748,008 Amount of total gains (losses) included in earnings attributable to assets still held at September 30, 2016 $ 9,746 $ 11,354 $ 263 $ (33,213) $ (16,483,798) $ 946,703 $ (15,548,945) (1) Our implementation of ASU 2015-02 resulted in the consolidation of certain CMBS trusts effective January 1, 2016, which required the elimination of $17.5 million of domestic servicing rights associated with these newly consolidated trusts.
Schedule of fair value of financial instruments not carried at fair value	The following table presents the fair values, all of which are classified in Level III of the fair value hierarchy, of our financial instruments not carried at fair value on the condensed consolidated balance sheets (amounts in thousands): September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans transferred as secured borrowings $ 6,456,710 $ 6,539,259 $ 5,882,995 $ 5,934,219 HTM securities 411,196 408,442 509,980 504,165 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 5,588,895 $ 5,559,888 $ 4,189,126 $ 4,198,136 Unsecured senior notes 2,044,523 2,097,835 2,011,544 2,088,374
Schedule of quantitative information for Level 3 Measurements for assets and liabilities measured at fair value on recurring basis	The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands): Carrying Value at Valuation Unobservable Range as of (1) September 30, 2017 Technique Input September 30, 2017 December 31, 2016 Loans held-for-sale, fair value option $ 608,624 Discounted cash flow Yield (b) 4.3% - 5.9% 5.0% - 5.7% Duration (c) 3.3 - 12.8 years 10.0 years RMBS 253,252 Discounted cash flow Constant prepayment rate (a) 2.4% - 19.4% 2.8% - 17.0% Constant default rate (b) 0.8% - 5.8% 1.1% - 8.1% Loss severity (b) 16% - 79% (e) 12% - 79% (e) Delinquency rate (c) 4% - 34% 2% - 29% Servicer advances (a) 20% - 84% 23% - 94% Annual coupon deterioration (b) 0% - 0.8% 0% - 0.6% Putback amount per projected total collateral loss (d) 0% - 15% 0% - 15% CMBS 23,841 Discounted cash flow Yield (b) 0% - 167.1% 0% - 172.0% Duration (c) 0 - 9.9 years 0 - 18.7 years Domestic servicing rights 33,781 Discounted cash flow Debt yield (a) 7.75% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 51,197,981 Discounted cash flow Yield (b) 0% - 813.9% 0% - 960.4% Duration (c) 0 - 11.6 years 0 - 12.0 years VIE liabilities 2,259,783 Discounted cash flow Yield (b) 0% - 813.9% 0% - 960.4% Duration (c) 0 - 11.6 years 0 - 12.0 years (1) The ranges of significant unobservable inputs are represented in percentages and years. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (a) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. (b) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. (c) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question. (d) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (e) 81% and 57% of the portfolio falls within a range of 45%-80% as of September 30, 2017 and December 31, 2016, respectively.

Segment Data (Tables)

Segment Data (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Data
Schedule of results of operations by business segment	The table below presents our results of operations for the three months ended September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 134,149 $ — $ 4,450 $ — $ 138,599 $ — $ 138,599 Interest income from investment securities 11,540 — 31,740 — 43,280 (30,829) 12,451 Servicing fees 142 — 23,093 — 23,235 (8,393) 14,842 Rental income — 47,663 12,490 — 60,153 — 60,153 Other revenues 181 164 441 — 786 (64) 722 Total revenues 146,012 47,827 72,214 — 266,053 (39,286) 226,767 Costs and expenses: Management fees 482 — 18 30,370 30,870 110 30,980 Interest expense 27,929 11,360 5,710 31,709 76,708 (277) 76,431 General and administrative 5,302 1,090 24,167 2,251 32,810 82 32,892 Acquisition and investment pursuit costs 807 245 (28) — 1,024 — 1,024 Costs of rental operations — 18,660 5,139 — 23,799 — 23,799 Depreciation and amortization 17 17,852 5,002 — 22,871 — 22,871 Loan loss allowance, net (171) — — — (171) — (171) Other expense 72 97 207 — 376 — 376 Total costs and expenses 34,438 49,304 40,215 64,330 188,287 (85) 188,202 Income (loss) before other income (loss), income taxes and non-controlling interests 111,574 (1,477) 31,999 (64,330) 77,766 (39,201) 38,565 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 56,177 56,177 Change in fair value of servicing rights — — (5,652) — (5,652) 785 (4,867) Change in fair value of investment securities, net 276 — 13,962 — 14,238 (14,635) (397) Change in fair value of mortgage loans held-for-sale, net (397) — 19,882 — 19,485 — 19,485 Earnings (loss) from unconsolidated entities 848 (33,731) 30,225 — (2,658) (2,031) (4,689) Gain on sale of investments and other assets, net — — 11,877 — 11,877 — 11,877 Loss on derivative financial instruments, net (10,813) (11,276) (2,135) — (24,224) — (24,224) Foreign currency gain (loss), net 10,657 (1) 4 — 10,660 — 10,660 Other income, net — — 28 — 28 — 28 Total other income (loss) 571 (45,008) 68,191 — 23,754 40,296 64,050 Income (loss) before income taxes 112,145 (46,485) 100,190 (64,330) 101,520 1,095 102,615 Income tax benefit (provision) 11 — (9,827) — (9,816) — (9,816) Net income (loss) 112,156 (46,485) 90,363 (64,330) 91,704 1,095 92,799 Net income attributable to non-controlling interests (357) — (2,919) — (3,276) (1,095) (4,371) Net income (loss) attributable to Starwood Property Trust, Inc . $ 111,799 $ (46,485) $ 87,444 $ (64,330) $ 88,428 $ — $ 88,428 The table below presents our results of operations for the three months ended September 30, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 114,506 $ — $ 6,719 $ — $ 121,225 $ — $ 121,225 Interest income from investment securities 13,301 — 35,274 — 48,575 (29,400) 19,175 Servicing fees 195 — 37,678 — 37,873 (14,955) 22,918 Rental income — 29,226 10,516 — 39,742 — 39,742 Other revenues 99 11 1,692 — 1,802 (157) 1,645 Total revenues 128,101 29,237 91,879 — 249,217 (44,512) 204,705 Costs and expenses: Management fees 525 — 24 27,183 27,732 48 27,780 Interest expense 22,678 5,536 4,877 26,181 59,272 (190) 59,082 General and administrative 5,067 867 43,711 1,651 51,296 174 51,470 Acquisition and investment pursuit costs 322 759 416 12 1,509 — 1,509 Costs of rental operations — 13,139 4,872 — 18,011 — 18,011 Depreciation and amortization — 10,870 4,482 — 15,352 — 15,352 Loan loss allowance, net 2,127 — — — 2,127 — 2,127 Other expense — 513 198 — 711 — 711 Total costs and expenses 30,719 31,684 58,580 55,027 176,010 32 176,042 Income (loss) before other income (loss), income taxes and non-controlling interests 97,382 (2,447) 33,299 (55,027) 73,207 (44,544) 28,663 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 47,848 47,848 Change in fair value of servicing rights — — (14,006) — (14,006) (277) (14,283) Change in fair value of investment securities, net 207 — 620 — 827 (3,613) (2,786) Change in fair value of mortgage loans held-for-sale, net — — 49,996 — 49,996 — 49,996 Earnings from unconsolidated entities 852 2,455 617 — 3,924 381 4,305 Gain on sale of investments and other assets, net 10 — — — 10 — 10 Gain (loss) on derivative financial instruments, net 4,982 (4,720) (2,590) — (2,328) — (2,328) Foreign currency (loss) gain, net (3,839) (7) 632 — (3,214) — (3,214) Other income, net — — 35 234 269 — 269 Total other income (loss) 2,212 (2,272) 35,304 234 35,478 44,339 79,817 Income (loss) before income taxes 99,594 (4,719) 68,603 (54,793) 108,685 (205) 108,480 Income tax provision — — (2,667) — (2,667) — (2,667) Net income (loss) 99,594 (4,719) 65,936 (54,793) 106,018 (205) 105,813 Net (income) loss attributable to non-controlling interests (352) — 100 — (252) 205 (47) Net income (loss) attributable to Starwood Property Trust, Inc . $ 99,242 $ (4,719) $ 66,036 $ (54,793) $ 105,766 $ — $ 105,766 The table below presents our results of operations for the nine months ended September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 360,188 $ — $ 10,906 $ — $ 371,094 $ — $ 371,094 Interest income from investment securities 35,870 — 104,768 — 140,638 (100,593) 40,045 Servicing fees 568 — 86,837 — 87,405 (39,833) 47,572 Rental income — 138,795 37,366 — 176,161 — 176,161 Other revenues 553 430 1,450 — 2,433 (249) 2,184 Total revenues 397,179 139,225 241,327 — 777,731 (140,675) 637,056 Costs and expenses: Management fees 1,405 — 54 78,328 79,787 210 79,997 Interest expense 72,372 32,466 14,924 94,667 214,429 (821) 213,608 General and administrative 14,872 3,471 69,536 7,719 95,598 243 95,841 Acquisition and investment pursuit costs 1,707 516 9 — 2,232 — 2,232 Costs of rental operations — 51,843 15,858 — 67,701 — 67,701 Depreciation and amortization 50 52,288 14,793 — 67,131 — 67,131 Loan loss allowance, net (3,170) — — — (3,170) — (3,170) Other expense 72 63 1,141 — 1,276 — 1,276 Total costs and expenses 87,308 140,647 116,315 180,714 524,984 (368) 524,616 Income (loss) before other income (loss), income taxes and non-controlling interests 309,871 (1,422) 125,012 (180,714) 252,747 (140,307) 112,440 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 203,108 203,108 Change in fair value of servicing rights — — (28,956) — (28,956) 7,655 (21,301) Change in fair value of investment securities, net 299 — 45,263 — 45,562 (49,623) (4,061) Change in fair value of mortgage loans held-for-sale, net (549) — 46,033 — 45,484 — 45,484 Earnings (loss) from unconsolidated entities 2,548 (28,782) 67,134 — 40,900 (13,137) 27,763 (Loss) gain on sale of investments and other assets, net (59) 77 16,986 — 17,004 — 17,004 Loss on derivative financial instruments, net (30,274) (32,268) (3,617) — (66,159) — (66,159) Foreign currency gain, net 28,402 16 16 — 28,434 — 28,434 OTTI (109) — — — (109) — (109) Loss on extinguishment of debt — — — (5,916) (5,916) — (5,916) Other income, net — — 1,097 — 1,097 (613) 484 Total other income (loss) 258 (60,957) 143,956 (5,916) 77,341 147,390 224,731 Income (loss) before income taxes 310,129 (62,379) 268,968 (186,630) 330,088 7,083 337,171 Income tax provision (331) — (17,954) — (18,285) — (18,285) Net income (loss) 309,798 (62,379) 251,014 (186,630) 311,803 7,083 318,886 Net income attributable to non-controlling interests (1,064) — (2,573) — (3,637) (7,083) (10,720) Net income (loss) attributable to Starwood Property Trust, Inc . $ 308,734 $ (62,379) $ 248,441 $ (186,630) $ 308,166 $ — $ 308,166 The table below presents our results of operations for the nine months ended September 30, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ $ — $ 12,854 $ — $ 361,314 $ — $ 361,314 Interest income from investment securities 33,975 — 115,335 — 149,310 (95,431) 53,879 Servicing fees 560 — 111,145 — 111,705 (40,784) 70,921 Rental income — 85,048 25,214 — 110,262 — 110,262 Other revenues 180 35 4,110 — 4,325 (511) 3,814 Total revenues 85,083 268,658 — 736,916 (136,726) 600,190 Costs and expenses: Management fees 1,295 — 54 75,015 76,364 146 76,510 Interest expense 67,585 16,163 11,443 78,236 173,427 (190) 173,237 General and administrative 13,529 2,259 95,726 7,631 119,145 532 119,677 Acquisition and investment pursuit costs 1,602 1,517 1,551 1,012 5,682 — 5,682 Costs of rental operations — 34,923 11,595 — 46,518 — 46,518 Depreciation and amortization — 41,922 11,263 — 53,185 — 53,185 Loan loss allowance, net 3,395 — — — 3,395 — 3,395 Other expense — 513 298 — 811 — 811 Total costs and expenses 87,406 97,297 131,930 161,894 478,527 488 479,015 Income (loss) before other income (loss), income taxes and non-controlling interests 295,769 (12,214) 136,728 (161,894) 258,389 (137,214) 121,175 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 94,388 94,388 Change in fair value of servicing rights — — (33,710) — (33,710) 497 (33,213) Change in fair value of investment securities, net (37) — (43,449) — (43,486) 42,772 (714) Change in fair value of mortgage loans held-for-sale, net — — 70,122 — 70,122 — 70,122 Earnings from unconsolidated entities 2,544 7,313 3,280 — 13,137 (288) 12,849 Gain on sale of investments and other assets, net 165 — — — 165 — 165 Gain (loss) on derivative financial instruments, net 17,824 (6,837) (17,780) — (6,793) — (6,793) Foreign currency (loss) gain, net (23,501) (41) 2,962 — (20,580) — (20,580) Other income, net — 9,102 112 1,784 10,998 — 10,998 Total other income (loss) (3,005) 9,537 (18,463) 1,784 (10,147) 137,369 127,222 Income (loss) before income taxes (2,677) 118,265 (160,110) 248,242 155 248,397 Income tax provision (75) — (3,392) — (3,467) — (3,467) Net income (loss) (2,677) 114,873 (160,110) 244,775 155 244,930 Net (income) loss attributable to non-controlling interests (1,050) — 171 — (879) (155) (1,034) Net income (loss) attributable to Starwood Property Trust, Inc . $ 291,639 $ (2,677) $ 115,044 $ (160,110) $ 243,896 $ — $ 243,896
Schedule of condensed consolidated balance sheet by business segment	The table below presents our condensed consolidated balance sheet as of September 30, 2017 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 43,513 $ 8,581 $ 58,584 $ 298,006 $ 408,684 $ 5,161 $ 413,845 Restricted cash 22,527 20,189 11,875 — 54,591 — 54,591 Loans held-for-investment, net 6,378,468 — 3,903 — 6,382,371 — 6,382,371 Loans held-for-sale 418,618 — 190,006 — 608,624 — 608,624 Loans transferred as secured borrowings 74,339 — — — 74,339 — 74,339 Investment securities 677,977 — 1,026,634 — 1,704,611 (1,002,793) 701,818 Properties, net — 2,234,646 286,696 — 2,521,342 — 2,521,342 Intangible assets — 116,856 91,591 — 208,447 (26,582) 181,865 Investment in unconsolidated entities 36,831 109,607 117,772 — 264,210 (20,760) 243,450 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 13,513 22,480 2,300 — 38,293 — 38,293 Accrued interest receivable 34,569 — 478 — 35,047 — 35,047 Other assets 10,286 40,705 61,787 2,293 115,071 (2,806) 112,265 VIE assets, at fair value — — — — — 51,197,981 51,197,981 Total Assets $ 7,710,641 $ 2,553,064 $ 1,992,063 $ 300,299 $ 12,556,067 $ 50,150,201 $ 62,706,268 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 27,821 $ 71,726 $ 78,398 $ 24,739 $ 202,684 $ 1,098 $ 203,782 Related-party payable — — 43 29,946 29,989 — 29,989 Dividends payable — — — 125,674 125,674 — 125,674 Derivative liabilities 14,105 8,784 1 — 22,890 — 22,890 Secured financing agreements, net 3,223,863 1,501,006 516,933 296,593 5,538,395 (23,700) 5,514,695 Unsecured senior notes, net — — — 2,044,523 2,044,523 — 2,044,523 Secured borrowings on transferred loans, net 74,200 — — — 74,200 — 74,200 VIE liabilities, at fair value — — — — — 50,150,781 50,150,781 Total Liabilities 3,339,989 1,581,516 595,375 2,521,475 8,038,355 50,128,179 58,166,534 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,654 2,654 — 2,654 Additional paid-in capital 1,808,624 981,129 747,298 1,167,993 4,705,044 — 4,705,044 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 55,687 9,668 (84) — 65,271 — 65,271 Retained earnings (accumulated deficit) 2,495,536 (19,249) 639,359 (3,299,719) (184,073) — (184,073) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,359,847 971,548 1,386,573 (2,221,176) 4,496,792 — 4,496,792 Non-controlling interests in consolidated subsidiaries 10,805 — 10,115 — 20,920 22,022 42,942 Total Equity 4,370,652 971,548 1,396,688 (2,221,176) 4,517,712 22,022 4,539,734 Total Liabilities and Equity $ 7,710,641 $ 2,553,064 $ 1,992,063 $ 300,299 $ 12,556,067 $ 50,150,201 $ 62,706,268 The table below presents our condensed consolidated balance sheet as of December 31, 2016 by business segment (amounts in thousands): Investing Investing Lending Property and Servicing and Servicing Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 7,085 $ 7,701 $ 38,798 $ 560,790 $ 614,374 $ 1,148 $ 615,522 Restricted cash 17,885 9,146 8,202 — 35,233 — 35,233 Loans held-for-investment, net 5,827,553 — 20,442 — 5,847,995 — 5,847,995 Loans held-for-sale — — 63,279 — 63,279 — 63,279 Loans transferred as secured borrowings 35,000 — — — 35,000 — 35,000 Investment securities 776,072 — 990,570 — 1,766,642 (959,024) 807,618 Properties, net — 1,667,108 277,612 — 1,944,720 — 1,944,720 Intangible assets — 128,159 125,327 — 253,486 (34,238) 219,248 Investment in unconsolidated entities 30,874 124,977 56,376 — 212,227 (7,622) 204,605 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 45,282 42,893 1,186 — 89,361 — 89,361 Accrued interest receivable 25,831 — 2,393 — 28,224 — 28,224 Other assets 13,470 29,569 59,503 1,866 104,408 (2,645) 101,763 VIE assets, at fair value — — — — — 67,123,261 67,123,261 Total Assets $ 6,779,052 $ 2,009,553 $ 1,784,125 $ 562,656 $ 11,135,386 $ 66,120,880 $ 77,256,266 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 20,769 $ 81,873 $ 68,603 $ 26,003 $ 197,248 $ 886 $ 198,134 Related-party payable — — 440 37,378 37,818 — 37,818 Dividends payable — — — 125,075 125,075 — 125,075 Derivative liabilities 3,388 — 516 — 3,904 — 3,904 Secured financing agreements, net 2,258,462 1,196,830 426,683 295,851 4,177,826 (23,700) 4,154,126 Unsecured senior notes, net — — — 2,011,544 2,011,544 — 2,011,544 Secured borrowings on transferred loans 35,000 — — — 35,000 — 35,000 VIE liabilities, at fair value — — — — — 66,130,592 66,130,592 Total Liabilities 2,317,619 1,278,703 496,242 2,495,851 6,588,415 66,107,778 72,696,193 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,639 2,639 — 2,639 Additional paid-in capital 2,218,671 696,049 883,761 892,699 4,691,180 — 4,691,180 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 44,903 (8,328) (437) — 36,138 — 36,138 Retained earnings (accumulated deficit) 2,186,727 43,129 390,994 (2,736,429) (115,579) — (115,579) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,450,301 730,850 1,274,318 (1,933,195) 4,522,274 — 4,522,274 Non-controlling interests in consolidated subsidiaries 11,132 — 13,565 — 24,697 13,102 37,799 Total Equity 4,461,433 730,850 1,287,883 (1,933,195) 4,546,971 13,102 4,560,073 Total Liabilities and Equity $ 6,779,052 $ 2,009,553 $ 1,784,125 $ 562,656 $ 11,135,386 $ 66,120,880 $ 77,256,266

Business and Organization (Deta

Business and Organization (Details)	9 Months Ended
	Sep. 30, 2017segment
Business and Organization
Number of reportable business segments	3
Minimum annual REIT taxable income distributable to stockholders (as a percent)	90.00%

Summary of Significant Accoun50

Summary of Significant Accounting Policies - VIE & Fair Value (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2017
Variable Interest Entities
REO assets as a percent of consolidated VIE assets			4.00%
Loans as a percent of consolidated VIE assets			96.00%
Fair Value Measurements
Permitted reinvestment under static investment in VIEs			$ 0
Reclassifications
Impairment of lease intangible assets	$ 0.7	$ 0.7
Minimum
Lease Classification
Term of lease as a percent of leased asset’s remaining useful life to determine lease classification			75.00%
Minimum lease payments present value percentage in excess of leased asset’s fair value to determine lease classification			90.00%

Acquisitions and Dispositions51

Acquisitions and Dispositions (Details) $ in Thousands	Sep. 25, 2017USD ($)ft²item	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)ft²item	Dec. 31, 2015USD ($)ft²propertyitem	Dec. 31, 2016USD ($)ft²item
Acquisitions
Properties, net		$ 2,521,342		$ 2,521,342		$ 1,944,720		$ 1,944,720
Liabilities assumed:
Revenues		226,767	$ 204,705	637,056	$ 600,190
Net income (loss)		92,799	105,813	318,886	244,930
Bargain purchase gains					8,406
Depreciation and amortization				64,937	49,081
Gain (loss) on derivative financial instruments, net		(24,224)	$ (2,328)	(66,159)	(6,793)
Goodwill		$ 140,437		$ 140,437		140,437		$ 140,437
Master Lease Portfolio
Acquisitions
Number of retail properties acquired | item	20
Number of industrial properties acquired | item	3
Purchase price	$ 553,300
Number of square feet of properties | ft²	5,300,000
Term of master lease agreements	24 years 7 months 6 days
Maximum borrowing capacity	$ 265,900
Acquisition-related costs	$ 3,700
Master Lease Portfolio | Geographic Concentration Risk | Utah, Florida, Texas and Minnesota | Minimum
Acquisitions
Concentration risk (as a percent)	50.00%
Medical Office Portfolio
Acquisitions
Purchase price						$ 758,800
Area of property | ft²						1,900,000		1,900,000
Number of acquired properties closed | item						34
Liabilities assumed:
Bargain purchase gains						$ 0
Goodwill						$ 0		$ 0
Woodstar Portfolio
Acquisitions
Purchase price								$ 421,500
Number of properties in portfolio investment | item		32		32
Number of acquired properties closed | item						14	18	32
Number of units acquired | item				8,948
Liabilities assumed:
Bargain purchase gains						$ 8,400
Goodwill						0		$ 0
Ireland Portfolio
Acquisitions
Area of property | ft²							600,000
Debt incurred to fund acquisition							$ 328,600
Number of properties sold | item				1
Proceeds from sale of property				$ 3,900
Assets acquired:
Total assets acquired							518,200
Liabilities assumed:
Total liabilities assumed							283,000
Bargain purchase gains							0
Goodwill							$ 0
REIS Equity Portfolio
Assets acquired:
Properties		$ 34,902		34,902
Intangible assets		4,272		4,272
Other assets		1		1
Total assets acquired		39,175		39,175
Liabilities assumed:
Accounts payable, accrued expenses and other liabilities		1,329		1,329
Total liabilities assumed		1,329		1,329
Net assets acquired		37,846		37,846
REIS Equity Portfolio | ASU 2015-16
Assets acquired:
Properties		12,747		12,747
Intangible assets		3,468		3,468
Other assets		97		97
Total assets acquired		16,312		16,312
Liabilities assumed:
Accounts payable, accrued expenses and other liabilities		1,397		1,397
Total liabilities assumed		1,397		1,397
Non-controlling interests		3,084		3,084
Net assets acquired		11,831		11,831
REIS Equity Portfolio | ASU 2015-16 | Initial Amount
Assets acquired:
Properties		12,087		12,087
Intangible assets		4,270		4,270
Other assets		97		97
Total assets acquired		16,454		16,454
Liabilities assumed:
Accounts payable, accrued expenses and other liabilities		1,539		1,539
Total liabilities assumed		1,539		1,539
Non-controlling interests		3,084		3,084
Net assets acquired		11,831		11,831
REIS Equity Portfolio | ASU 2015-16 | Measurement Period Adjustments
Assets acquired:
Properties		660		660
Intangible assets		(802)		(802)
Total assets acquired		(142)		(142)
Liabilities assumed:
Accounts payable, accrued expenses and other liabilities		(142)		(142)
Total liabilities assumed		$ (142)		(142)
Net Leased Office Property | Ireland Portfolio
Acquisitions
Number of properties in portfolio investment | property							12
Multifamily Property | Ireland Portfolio
Acquisitions
Number of properties in portfolio investment | property							1
Non-Controlling Interests
Liabilities assumed:
Net income (loss)				$ 10,720	$ 1,034
Investment and Servicing Segment
Acquisitions
Purchase price								$ 268,500
Number of real estate business acquired | item		1		2				24
Aggregate gross acquisition price		$ 18,200		$ 37,200
Number of properties sold | item		2		4
Proceeds from sale of property		$ 26,000		$ 40,700
Gain on sale of property		11,200		16,300
Liabilities assumed:
Bargain purchase gains				600		$ 8,800
Goodwill		0		0
Investment and Servicing Segment | Non-Controlling Interests
Acquisitions
Gain on sale of property		$ 2,400		$ 2,400

Loans - Held for Investment (De

Loans - Held for Investment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Investments in loans
Total gross loans	$ 7,071,952	$ 5,956,062
Loan loss allowance (loans held-for-investment)	(6,618)	(9,788)	$ (9,424)	$ (6,029)
Carrying Value	7,065,334	5,946,274
Face Amount	7,092,845	5,988,254
Loans with variable rates of interest	$ 5,914,981	5,330,218
Loans with variable rates of interest (as a percent)	92.60%
Weighted average spread of loans (as a percent)	5.20%
1-month LIBOR
Investments in loans
Loans with variable rates of interest	$ 612,994	$ 880,357
Effective variable rate basis (as a percent)	1.2322%	0.7717%
LIBOR floor
Investments in loans
Loans with variable rates of interest	$ 5,301,987	$ 4,449,861
LIBOR floor | Weighted-average
Investments in loans
Effective variable rate basis (as a percent)	0.57%	0.36%
LIBOR floor | Minimum
Investments in loans
Effective variable rate basis (as a percent)	0.15%	0.15%
LIBOR floor | Maximum
Investments in loans
Effective variable rate basis (as a percent)	1.24%	3.00%
Total loans held-for-investment
Investments in loans
Total gross loans	$ 6,388,989	$ 5,857,783
Face Amount	6,416,794	5,890,189
Loans held-for-sale
Investments in loans
Total gross loans	608,624	63,279
Face Amount	$ 601,051	$ 63,065
Weighted Average Life	7 years 7 months 6 days	10 years
Loans held-for-sale | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	5.60%	5.30%
Loans transferred as secured borrowings
Investments in loans
Total gross loans	$ 74,339	$ 35,000
Face Amount	$ 75,000	$ 35,000
Weighted Average Life	2 years 6 months	4 months 24 days
Loans transferred as secured borrowings | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	5.80%	6.20%
First Mortgages: | Total loans held-for-investment
Investments in loans
Total gross loans	$ 5,527,219	$ 4,865,994
Face Amount	$ 5,549,909	$ 4,881,656
Weighted Average Life	2 years 4 months 24 days	2 years 2 months 12 days
First Mortgages: | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	6.10%	5.70%
Subordinated mortgages | Total loans held-for-investment
Investments in loans
Total gross loans	$ 222,990	$ 278,032
Face Amount	$ 224,088	$ 293,925
Weighted Average Life	2 years 1 month 6 days	3 years 3 months 18 days
Subordinated mortgages | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	10.30%	8.90%
Mezzanine Loans
Investments in loans
Carrying Value	$ 1,100,000	$ 964,100
Mezzanine Loans | Total loans held-for-investment
Investments in loans
Total gross loans	615,562	713,757
Face Amount	$ 615,724	$ 714,608
Weighted Average Life	1 year 2 months 12 days	1 year 9 months 18 days
Mezzanine Loans | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	10.60%	9.60%
Other | Total loans held-for-investment
Investments in loans
Total gross loans	$ 23,218
Face Amount	$ 27,073
Weighted Average Life	4 years 3 months 18 days
Other | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	8.40%

Loans - Ratings (Details)

Loans - Ratings (Details)	9 Months Ended
	Sep. 30, 2017USD ($)loan	Dec. 31, 2016USD ($)
Investments in loans
Total gross loans	$ 7,071,952,000	$ 5,956,062,000
Total gross loans (as a percent)	100.00%	100.00%
Number of impaired individual mortgage loans held-for-investment | loan	0
Amount of loan impairment charges on individual loans held-for-investment	$ 0
Rating 1
Investments in loans
Total gross loans	$ 22,651,000	$ 921,000
Total gross loans (as a percent)	0.30%
Rating 1 | Maximum
Investments in loans
LTV (as a percent)	65.00%
Rating 2
Investments in loans
Total gross loans	$ 2,246,678,000	$ 1,349,603,000
Total gross loans (as a percent)	31.80%	22.60%
Rating 2 | Maximum
Investments in loans
LTV (as a percent)	70.00%
Rating 3
Investments in loans
Total gross loans	$ 3,883,953,000	$ 4,025,809,000
Total gross loans (as a percent)	54.90%	67.60%
Rating 3 | Maximum
Investments in loans
LTV (as a percent)	80.00%
Rating 4
Investments in loans
Total gross loans	$ 253,856,000	$ 458,133,000
Total gross loans (as a percent)	3.60%	7.70%
Allowance for loan losses as a percent of carrying amount	1.50%
Rating 4 | Minimum
Investments in loans
LTV (as a percent)	80.00%
Rating 4 | Maximum
Investments in loans
LTV (as a percent)	90.00%
Rating 5
Investments in loans
Total gross loans	$ 56,190,000	$ 58,317,000
Total gross loans (as a percent)	0.80%	1.00%
Allowance for loan losses as a percent of carrying amount	5.00%
Rating 5 | Minimum
Investments in loans
LTV (as a percent)	90.00%
N/A
Investments in loans
Total gross loans	$ 608,624,000	$ 63,279,000
Total gross loans (as a percent)	8.60%	1.10%
Total loans held-for-investment
Investments in loans
Total gross loans	$ 6,388,989,000	$ 5,857,783,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans
Investments in loans
Total gross loans	5,527,219,000	4,865,994,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 1
Investments in loans
Total gross loans	2,205,000	921,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 2
Investments in loans
Total gross loans	2,109,411,000	1,092,731,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 3
Investments in loans
Total gross loans	3,164,497,000	3,348,874,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 4
Investments in loans
Total gross loans	194,916,000	365,151,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 5
Investments in loans
Total gross loans	56,190,000	58,317,000
Total loans held-for-investment | Subordinated mortgages
Investments in loans
Total gross loans	222,990,000	278,032,000
Total loans held-for-investment | Subordinated mortgages | Rating 2
Investments in loans
Total gross loans	4,424,000	27,069,000
Total loans held-for-investment | Subordinated mortgages | Rating 3
Investments in loans
Total gross loans	218,566,000	250,963,000
Total loans held-for-investment | Mezzanine Loans
Investments in loans
Total gross loans	615,562,000	713,757,000
Total loans held-for-investment | Mezzanine Loans | Rating 2
Investments in loans
Total gross loans	132,843,000	194,803,000
Total loans held-for-investment | Mezzanine Loans | Rating 3
Investments in loans
Total gross loans	423,779,000	425,972,000
Total loans held-for-investment | Mezzanine Loans | Rating 4
Investments in loans
Total gross loans	58,940,000	92,982,000
Total loans held-for-investment | Other
Investments in loans
Total gross loans	23,218,000
Total loans held-for-investment | Other | Rating 1
Investments in loans
Total gross loans	20,446,000
Total loans held-for-investment | Other | Rating 3
Investments in loans
Total gross loans	2,772,000
Loans held-for-sale
Investments in loans
Total gross loans	608,624,000	63,279,000
Loans held-for-sale | N/A
Investments in loans
Total gross loans	608,624,000	63,279,000
Loans transferred as secured borrowings
Investments in loans
Total gross loans	74,339,000	35,000,000
Loans transferred as secured borrowings | Rating 2
Investments in loans
Total gross loans		$ 35,000,000
Loans transferred as secured borrowings | Rating 3
Investments in loans
Total gross loans	$ 74,339,000

Loans - Activity in Portfolio (

Loans - Activity in Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Activity in allowance for loan losses
Allowance for loan losses at the beginning of the period			$ 9,788	$ 6,029
Provision for loan losses			(3,170)	3,395
Allowance for loan losses at the end of the period	$ 6,618	$ 9,424	6,618	9,424
Recorded investment in loans related to the allowance for loan loss	310,046	488,576	310,046	488,576
Activity in loan portfolio
Balance at the beginning of the period			5,946,274	6,263,517
Acquisitions/origination/additional funding			3,722,624	2,795,772
Capitalized Interest			55,987	65,003
Basis of loans sold			(1,024,964)	(1,359,780)
Loan maturities/principal repayments			(1,742,494)	(2,188,583)
Discount accretion/premium amortization			27,014	38,809
Changes in fair value	19,485	49,996	45,484	70,122
Unrealized foreign currency remeasurement loss			31,395	(37,332)
Change in loan loss allowance, net			3,170	(3,395)
Transfer to/from other asset classifications			844	36,566
Balance at the end of the period	$ 7,065,334	$ 5,680,699	$ 7,065,334	$ 5,680,699

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Sep. 30, 2017	Dec. 31, 2016
Investment Securities
Investment securities						$ 701,818	$ 807,618
Purchases	$ 61,798	$ 8,868	$ 69,231	$ 359,510
Sales		17,456	11,134	18,725
Principal collections	123,644	22,772	209,903	70,316
Before consolidation of securitization VIEs
Investment Securities
Investment securities						$ 1,704,611	$ 1,766,642
Available-for-sale | One-month LIBOR
Investment Securities
Effective variable rate basis (as a percent)						1.232%	0.772%
Fair value option | VIE eliminations
Investment Securities
Investment securities						$ (1,002,793)	$ (959,024)
Held-to-maturity
Investment Securities
Purchases	50,000		50,000	204,730
Principal collections	111,671	566	172,059	5,657
Held-to-maturity | Before consolidation of securitization VIEs
Investment Securities
Investment securities						411,196	509,980
RMBS
Investment Securities
Portion of securities with variable rate						211,600
RMBS | Available-for-sale
Investment Securities
Purchases		8,868	7,433	97,204
Principal collections	10,307	9,917	29,090	32,925
Purchase Amortized Cost						207,492	219,171
Credit OTTI						(9,897)	(10,185)
Recorded Amortized Cost						197,595	208,986
Non-Credit OTTI						(95)	(94)
Gross Unrealized Gains						55,766	45,113
Gross Unrealized Losses						(14)	(90)
Net Fair Value Adjustment						55,657	44,929
Fair Value						$ 253,252	253,915
Portion of securities with variable rate							$ 211,100
Portion of securities with variable rate (as a percent)						83.60%	83.20%
Principal balance						$ 379,432	$ 399,883
Accretable yield	(59,777)		(64,290)		$ (64,290)	(58,763)	(64,290)
Non-accretable difference						(123,074)	(126,607)
Total discount						(181,837)	(190,897)
Amortized cost						197,595	208,986
Credit deteriorated RMBS						356,200	371,500
Accretable yield related to credit deteriorated RMBS						$ 51,800	$ 55,900
Changes to accretable yield
Balance at the beginning of the period	59,777		64,290
Accretion of discount	(3,187)		(10,375)
Purchases			311
OTTI			109
Transfer to/from non-accretable difference	2,173		4,428
Balance at the end of the period	58,763		58,763		64,290
Changes to non accretable difference
Balance at the beginning of the period	126,708		126,607
Principal write-downs	(1,461)		(3,828)
Purchases			4,723
OTTI			109
Transfer to/from non-accretable difference	(2,173)		(4,428)
Balance at the end of the period	123,074		$ 123,074		$ 126,607
RMBS | Available-for-sale | LIBOR
Investment Securities
Variable rate, weighted average spread (as a percent)			1.21%		1.22%
RMBS | Available-for-sale | B-
Investment Securities
Weighted Average Coupon (as a percent)						2.50%	2.10%
WAL			6 years 4 months 24 days		6 years 1 month 6 days
RMBS | Available-for-sale | Before consolidation of securitization VIEs
Investment Securities
Investment securities						$ 253,252	$ 253,915
RMBS | Available-for-sale | Available-for-sale
Investment Securities
Accretable yield	(58,763)		$ (64,290)		$ (64,290)	(58,763)	(64,290)
Changes to accretable yield
Balance at the beginning of the period			64,290
Balance at the end of the period	58,763		58,763		$ 64,290
CMBS | Fair value option
Investment Securities
Purchases	11,798
Sales		17,456
Principal collections	$ 1,666	$ 12,289
CMBS | Fair value option | Before consolidation of securitization VIEs
Investment Securities
Investment securities						1,026,634	990,570
Equity security | Fair value option | Before consolidation of securitization VIEs
Investment Securities
Investment securities						13,529	$ 12,177
CMBS, fair value option
Investment Securities
Purchases			11,798	57,576
Sales			11,134	18,725
Principal collections			$ 8,754	$ 31,734
Portion of securities with variable rate						$ 0

Investment Securities - AFS and

Investment Securities - AFS and Fair Value Option (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)security	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)security	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Unrealized Losses
Settlement received on sales of investment securities	$ 14,900
RMBS
Unrealized Losses
Portion of securities with variable rate		$ 211,600		$ 211,600
RMBS | Available-for-sale
Investment Securities
Cost of third party management		500	$ 500	1,400	$ 1,200
Estimated Fair Value
Securities with a loss less than 12 months		10,463		10,463		$ 8,819
Securities with a loss greater than 12 months		645		645		957
Unrealized Losses
Securities with a loss less than 12 months		(80)		(80)		(90)
Securities with a loss greater than 12 months		$ (29)		$ (29)		(94)
Number of securities with unrealized loss position | security		3		3
Portion of securities with variable rate						$ 211,100
CMBS | Fair value option
Unrealized Losses
Fair value of investment securities before consolidation of VIEs		$ 1,000,000		$ 1,000,000
Unpaid principal balance of investment securities before consolidation of VIEs		4,100,000		4,100,000
Purchases in which fair value option was elected		30,900	25,600	92,600	126,900
Purchase amount reflected as repayment of debt of consolidated VIEs		19,100	25,600	80,800	69,300
Sales in which fair value option was elected		1,500	17,500	22,800	19,300
Sale amount reflected as issuance of debt of consolidated VIEs		1,500	$ 0	11,700	$ 600
CMBS, fair value option
Unrealized Losses
Portion of securities with variable rate		$ 0		$ 0

Investment Securities - HTM (De

Investment Securities - HTM (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
HTM Securities
Net Carrying Amount (Amortized Cost)	$ 411,196	$ 509,980
Gross Unrealized Holdings Gains	3,121	2,833
Gross Unrealized Holdings Losses	(5,875)	(8,648)
Fair Value	408,442	504,165
HTM preferred equity interests
Less than one year	129,282
One to three years	261,684
Thereafter	20,230
Total	411,196	509,980
Preferred Equity Investment
HTM Securities
Net Carrying Amount (Amortized Cost)	20,230	19,873
Gross Unrealized Holdings Gains	675	727
Fair Value	20,905	20,600
HTM preferred equity interests
Thereafter	20,230
Total	20,230	19,873
CMBS
HTM Securities
Net Carrying Amount (Amortized Cost)	390,966	490,107
Gross Unrealized Holdings Gains	2,446	2,106
Gross Unrealized Holdings Losses	(5,875)	(8,648)
Fair Value	387,537	483,565
HTM preferred equity interests
Less than one year	129,282
One to three years	261,684
Total	$ 390,966	$ 490,107

Investment Securities - SEREF (

Investment Securities - SEREF (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2012	Dec. 31, 2016
Residential Real Estate
Ownership percentage	2.00%
SEREF
Residential Real Estate
Number of shares acquired		9,140,000
Fair value of investment	$ 13.5		$ 12.2

Properties (Details)

Properties (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)property	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)property	Sep. 30, 2016USD ($)property	Dec. 31, 2016USD ($)
Properties
Number of properties sold | property				0
Gain on sale of investments and other assets, net	$ 11,877	$ 10	$ 17,004	$ 165
Summary of properties
Properties, cost	2,609,578		2,609,578		$ 1,986,285
Less: accumulated depreciation	(88,236)		(88,236)		(41,565)
Properties, net	$ 2,521,342		$ 2,521,342		1,944,720
Operating properties | Disposed of by sale
Properties
Number of properties sold | property	2		5
Proceeds from sale of operating properties	$ 26,000		$ 44,600
Gain on sale of investments and other assets, net	11,200		16,400
Operating properties | Disposed of by sale | Non-Controlling Interests
Properties
Gain on sale of investments and other assets, net	2,400		2,400
Property Segment
Summary of properties
Land and land improvements	526,591		526,591		385,860
Buildings	1,755,511		1,755,511		1,291,531
Furniture & fixtures	26,038		$ 26,038		23,035
Property Segment | Minimum
Summary of properties
Land improvements, useful life			0 years
Building and building improvements, useful life			5 years
Furniture & fixtures, useful life			3 years
Property Segment | Maximum
Summary of properties
Land improvements, useful life			15 years
Building and building improvements, useful life			45 years
Furniture & fixtures, useful life			7 years
Investment and Servicing Segment
Summary of properties
Land and land improvements	90,263		$ 90,263		89,425
Buildings	210,183		210,183		195,178
Furniture & fixtures	$ 992		$ 992		$ 1,256
Investment and Servicing Segment | Minimum
Summary of properties
Land improvements, useful life			0 years
Building and building improvements, useful life			3 years
Furniture & fixtures, useful life			2 years
Investment and Servicing Segment | Maximum
Summary of properties
Land improvements, useful life			15 years
Building and building improvements, useful life			40 years
Furniture & fixtures, useful life			5 years

Investment in Unconsolidated 60

Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 31, 2017	Dec. 31, 2016	Oct. 31, 2014
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 215,181	$ 215,181		$ 215,181			$ 176,591
Cost method, Carrying value	28,269	28,269		28,269			28,014
Investment in unconsolidated entities	243,450	243,450		243,450			$ 204,605
Income recognized		(4,689)	$ 4,305	27,763	$ 12,849
Distributions of earnings from unconsolidated entities				4,716	$ 15,151
Carrying value over (under) equity in net assets	$ 0	$ 0		$ 0
Retail fund
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	33.00%	33.00%		33.00%			33.00%	33.00%
Equity method, Carrying value	$ 109,607	$ 109,607		$ 109,607			$ 124,977
Investment in unconsolidated entities						$ 15,500		$ 150,000
Unrealized unfavorable changes in fair value		$ 33,700		$ 33,700
Investor entity which owns equity in an online real estate auction company
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%	50.00%		50.00%			50.00%
Equity method, Carrying value	$ 75,249	$ 75,249		$ 75,249			$ 21,677
Capital commitments				15,500
Percentage of equity sold	88.00%
Income recognized		28,200		53,900
Distributions of earnings from unconsolidated entities				66,000
Equity interests in commercial real estate
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 23,310	$ 23,310		$ 23,310			$ 23,297
Equity interests in commercial real estate | Minimum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	16.00%	16.00%		16.00%			16.00%
Equity interests in commercial real estate | Maximum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%	50.00%		50.00%			50.00%
Various - Equity method
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 7,015	$ 7,015		$ 7,015			$ 6,640
Various - Equity method | Minimum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	25.00%	25.00%		25.00%			25.00%
Various - Equity method | Maximum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%	50.00%		50.00%			50.00%
Equity interest in a servicing and advisory business
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	6.00%	6.00%		6.00%			6.00%
Equity method, Carrying value	$ 12,234	$ 12,234		$ 12,234			$ 12,234
Investment funds which own equity in a loan servicer and other real estate assets
Investment in Unconsolidated Entities
Cost method, Carrying value	$ 9,225	$ 9,225		$ 9,225			$ 9,225
Investment funds which own equity in a loan servicer and other real estate assets | Minimum
Investment in Unconsolidated Entities
Cost method, Ownership %	4.00%	4.00%		4.00%			4.00%
Investment funds which own equity in a loan servicer and other real estate assets | Maximum
Investment in Unconsolidated Entities
Cost method, Ownership %	6.00%	6.00%		6.00%			6.00%
Various - Cost method
Investment in Unconsolidated Entities
Cost method, Carrying value	$ 6,810	$ 6,810		$ 6,810			$ 6,555
Various - Cost method | Minimum
Investment in Unconsolidated Entities
Cost method, Ownership %	0.00%	0.00%		0.00%			0.00%
Various - Cost method | Maximum
Investment in Unconsolidated Entities
Cost method, Ownership %	3.00%	3.00%		3.00%			3.00%

Goodwill and Intangibles (Detai

Goodwill and Intangibles (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Summary of Intangible Assets
Gross carrying value	$ 247,487	$ 260,950
Accumulated amortization	(65,622)	(41,702)
Net carrying value	181,865	219,248
In-place lease
Summary of Intangible Assets
Gross carrying value	181,636	175,409
Accumulated amortization	(59,308)	(38,532)
Net carrying value	122,328	136,877
Favorable lease
Summary of Intangible Assets
Gross carrying value	32,070	30,459
Accumulated amortization	(6,314)	(3,170)
Net carrying value	25,756	27,289
Domestic servicing rights
Summary of Intangible Assets
Gross carrying value	33,781	55,082
Net carrying value	33,781	55,082
Domestic servicing rights | Before consolidation of securitization VIEs
Intangible Assets
Servicing rights intangibles	60,400	89,300
Domestic servicing rights | VIE eliminations
Intangible Assets
Servicing rights intangibles	$ 26,600	$ 34,200

Goodwill and Intangibles - Acti

Goodwill and Intangibles - Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Summary of activity within intangible assets
Balance as of beginning of period	$ 219,248
Amortization	(23,038)
Sales	(476)
Foreign exchange gain	(4,952)
Impairment	(990)
Changes in fair value due to changes in inputs and assumptions	(21,301)
Measurement period adjustments	(802)
Balance as of end of period	181,865
Future amortization expense for the European servicing rights, in-place lease intangible assets and favorable lease intangible assets
2017 (remainder of)	7,556
2,018	27,711
2,019	21,288
2,020	15,908
2,021	13,623
Thereafter	61,998
Total	148,084
REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	4,272
In-place lease
Summary of activity within intangible assets
Balance as of beginning of period	136,877
Amortization	(20,098)
Sales	(367)
Foreign exchange gain	(3,908)
Impairment	(981)
Measurement period adjustments	(821)
Balance as of end of period	122,328
In-place lease | REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	3,810
Favorable lease
Summary of activity within intangible assets
Balance as of beginning of period	27,289
Amortization	(2,940)
Sales	(109)
Foreign exchange gain	(1,044)
Impairment	(9)
Measurement period adjustments	19
Balance as of end of period	25,756
Favorable lease | REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	462
Domestic servicing rights
Summary of activity within intangible assets
Balance as of beginning of period	55,082
Changes in fair value due to changes in inputs and assumptions	(21,301)
Balance as of end of period	$ 33,781

Secured Financing Agreements (D

Secured Financing Agreements (Details) $ in Thousands	1 Months Ended						9 Months Ended
	Sep. 30, 2017USD ($)item	Aug. 31, 2017USD ($)item	Jul. 31, 2017	Jun. 30, 2017	Mar. 31, 2017USD ($)item	Feb. 28, 2017USD ($)item	Sep. 30, 2017USD ($)item	May 31, 2017USD ($)	Dec. 31, 2016USD ($)
Secured Financing Agreements
Principal Amount	$ 2,073,229						$ 2,073,229		$ 2,053,229
Unamortized deferred financing costs	(6,018)						(6,018)		(5,822)
Carrying Value	5,514,695						5,514,695		4,154,126
Lender 4 Repo 2 Facility
Secured Financing Agreements
Maximum borrowing capacity	600,000						600,000
Maximum facility size subject to certain conditions	1,000,000						1,000,000
Lender 6 Repo 1 Facility
Secured Financing Agreements
Maximum Facility Size	600,000	$ 500,000					$ 600,000
Lender 9 Repo 1 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.65%
Lender 10 Repo 1 Facility
Secured Financing Agreements
Maximum Facility Size					$ 125,000			$ 140,000
Maturity period					3 years
Number of extension options | item					2
Extended term / option					1 year
Lender 10 Repo 1 Facility | LIBOR
Secured Financing Agreements
Interest rate (as a percent)					2.00%
Lender 10 Repo 1 Facility | Maximum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)					2.75%
Lender 11 Repo 1 Facility
Secured Financing Agreements
Maturity period				2 years
Extended term / option				1 year
Lender 11 Repo 1 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Lender 11 Repo 2 Facility
Secured Financing Agreements
Maximum Facility Size		$ 250,000
Maturity period		1 year
Number of extension options | item		4
Extended term / option		1 year
Lender 11 Repo 2 Facility | Minimum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)		2.25%
Lender 11 Repo 2 Facility | Maximum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)		2.75%
Lender 7 Secured Financing
Secured Financing Agreements
Maximum borrowing capacity	450,000						$ 450,000
Maximum facility size subject to certain conditions	$ 650,000						$ 650,000
MBS Repo 1 Facility
Secured Financing Agreements
Rolling maturity period							11 months
MBS Repo 3 Facility
Secured Financing Agreements
Rolling maturity period							12 months
Master Lease Portfolio
Secured Financing Agreements
Maturity period	10 years
Number of mortgage facilities executed | item	2
Master Lease Portfolio | Minimum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)	4.36%						4.36%
Master Lease Portfolio | Maximum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)	4.38%						4.38%
Investing and Servicing Segment Property Mortgages
Secured Financing Agreements
Maximum borrowing capacity	$ 38,300						$ 38,300
Number of mortgage facilities executed | item							2
Investing and Servicing Segment Property Mortgages | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.00%
Investing and Servicing Segment Property Mortgages | Weighted-average
Secured Financing Agreements
Maturity period							4 years 7 months 6 days
Medical Office Portfolio Mortgages
Secured Financing Agreements
Floor interest rate (as a percent)							0.25%
Medical Office Portfolio Mortgages | Additional Mortgage Facilities Acquired
Secured Financing Agreements
Maximum Facility Size						$ 7,300
Maturity period						5 years
Number of extension options | item						2
Extended term / option						12 months
Medical Office Portfolio Mortgages | Additional Mortgage Facilities Acquired | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)						2.50%
FHLB | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			0.15%
FHLB | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			0.34%
Secured financing agreements
Secured Financing Agreements
Pledged Asset Carrying Value	9,035,494						$ 9,035,494
Maximum Facility Size	9,344,411						9,344,411
Principal Amount	5,555,720						5,555,720		4,197,218
Unamortized premium (discount), net	2,579						2,579		2,640
Unamortized deferred financing costs	(43,604)						(43,604)		(45,732)
Secured financing agreements | Lender 1 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	1,534,069						1,534,069
Maximum Facility Size	2,000,000						2,000,000
Principal Amount	1,170,141						$ 1,170,141		944,712
Secured financing agreements | Lender 1 Repo 1 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.75%
Secured financing agreements | Lender 1 Repo 1 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							5.75%
Secured financing agreements | Lender 2 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	350,508						$ 350,508
Maximum Facility Size	500,000						500,000
Principal Amount	236,055						$ 236,055		132,941
Secured financing agreements | Lender 2 Repo 1 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.75%
Secured financing agreements | Lender 2 Repo 1 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 3 Repo I Facility
Secured Financing Agreements
Pledged Asset Carrying Value	110,086						$ 110,086
Maximum Facility Size	76,820						76,820
Principal Amount	76,820						$ 76,820		78,288
Secured financing agreements | Lender 3 Repo I Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 3 Repo I Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							3.10%
Secured financing agreements | Lender 4 Repo 2 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	571,746						$ 571,746
Maximum Facility Size	1,000,000						1,000,000
Principal Amount	221,544						$ 221,544		166,394
Secured financing agreements | Lender 4 Repo 2 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.00%
Secured financing agreements | Lender 4 Repo 2 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							3.25%
Secured financing agreements | Lender 6 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	724,164						$ 724,164
Maximum Facility Size	600,000						600,000
Principal Amount	475,555						$ 475,555		182,586
Secured financing agreements | Lender 6 Repo 1 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.50%
Secured financing agreements | Lender 6 Repo 1 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 6 Repo 2 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	173,516						$ 173,516
Maximum Facility Size	121,280						121,280
Principal Amount	121,280						$ 121,280		121,509
Secured financing agreements | Lender 6 Repo 2 Facility | GBP LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 9 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	340,620						$ 340,620
Maximum Facility Size	254,447						254,447
Principal Amount	254,447						254,447		283,575
Secured financing agreements | Lender 10 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	169,733						169,733
Maximum Facility Size	140,000						140,000
Principal Amount	136,800						$ 136,800
Secured financing agreements | Lender 10 Repo 1 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.00%
Secured financing agreements | Lender 10 Repo 1 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 11 Repo 1 Facility
Secured Financing Agreements
Maximum Facility Size	200,000						$ 200,000
Secured financing agreements | Lender 11 Repo 2 Facility
Secured Financing Agreements
Maximum Facility Size	250,000						$ 250,000
Secured financing agreements | Lender 11 Repo 2 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.25%
Secured financing agreements | Lender 11 Repo 2 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 7 Secured Financing
Secured Financing Agreements
Pledged Asset Carrying Value	46,800						$ 46,800
Maximum Facility Size	650,000						$ 650,000
Secured financing agreements | Lender 7 Secured Financing | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.75%
Secured financing agreements | Lender 8 Secured Financing
Secured Financing Agreements
Pledged Asset Carrying Value	30,147						$ 30,147
Maximum Facility Size	75,000						75,000
Principal Amount	18,226						$ 18,226		43,555
Secured financing agreements | Lender 8 Secured Financing | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							4.00%
Secured financing agreements | Conduit Repo 2 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	53,751						$ 53,751
Maximum Facility Size	150,000						150,000
Principal Amount	40,842						$ 40,842		14,944
Secured financing agreements | Conduit Repo 2 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.25%
Secured financing agreements | Conduit Repo 3 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	136,254						$ 136,254
Maximum Facility Size	150,000						150,000
Principal Amount	103,678						$ 103,678
Secured financing agreements | Conduit Repo 3 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.10%
Secured financing agreements | Conduit Repo 4 Facility
Secured Financing Agreements
Maximum Facility Size	100,000						$ 100,000
Secured financing agreements | Conduit Repo 4 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.25%
Secured financing agreements | MBS Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	10,000						$ 10,000
Maximum Facility Size	6,510						6,510
Principal Amount	6,510						$ 6,510		21,052
Secured financing agreements | MBS Repo 1 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.90%
Secured financing agreements | MBS Repo 2 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	261,066						$ 261,066
Maximum Facility Size	191,184						191,184
Principal Amount	191,184						$ 191,184		239,434
Secured financing agreements | MBS Repo 2 Facility | Minimum | LIBOR/EURIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.00%
Secured financing agreements | MBS Repo 2 Facility | Maximum | LIBOR/EURIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.95%
Secured financing agreements | MBS Repo 3 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	384,546						$ 384,546
Maximum Facility Size	254,668						254,668
Principal Amount	254,668						$ 254,668		285,209
Secured financing agreements | MBS Repo 3 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.32%
Secured financing agreements | MBS Repo 3 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.95%
Secured financing agreements | MBS Repo 4 Facility
Secured Financing Agreements
Pledged Asset Carrying Value	179,384						$ 179,384
Maximum Facility Size	225,000						225,000
Principal Amount	2,000						$ 2,000		5,633
Current maturity period, relative to when the buyer delivers notice to the seller							270 days
Secured financing agreements | MBS Repo 4 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.20%
Secured financing agreements | MBS Repo 4 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.90%
Secured financing agreements | Master Lease Portfolio
Secured Financing Agreements
Pledged Asset Carrying Value	471,762						$ 471,762
Maximum Facility Size	265,900						265,900
Principal Amount	265,900						265,900
Secured financing agreements | Investing and Servicing Segment Property Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value	245,094						245,094
Maximum Facility Size	201,238						201,238
Principal Amount	177,217						177,217		164,611
Secured financing agreements | Ireland Portfolio Mortgage
Secured Financing Agreements
Pledged Asset Carrying Value	491,298						491,298
Maximum Facility Size	344,525						344,525
Principal Amount	344,525						$ 344,525		309,246
Secured financing agreements | Ireland Portfolio Mortgage | EURIBOR
Secured Financing Agreements
Pricing margin (as a percent)							1.69%
Secured financing agreements | Woodstar Portfolio Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value	369,519						$ 369,519
Maximum Facility Size	276,748						276,748
Principal Amount	$ 276,748						$ 276,748		276,748
Secured financing agreements | Woodstar Portfolio Mortgages | Minimum
Secured Financing Agreements
Interest rate (as a percent)	3.72%						3.72%
Secured financing agreements | Woodstar Portfolio Mortgages | Maximum
Secured Financing Agreements
Interest rate (as a percent)	3.97%						3.97%
Secured financing agreements | Woodstar Portfolio Government Financing
Secured Financing Agreements
Pledged Asset Carrying Value	$ 308,805						$ 308,805
Maximum Facility Size	133,967						133,967
Principal Amount	$ 133,967						$ 133,967		135,584
Secured financing agreements | Woodstar Portfolio Government Financing | Minimum
Secured Financing Agreements
Interest rate (as a percent)	1.00%						1.00%
Secured financing agreements | Woodstar Portfolio Government Financing | Maximum
Secured Financing Agreements
Interest rate (as a percent)	5.00%						5.00%
Secured financing agreements | Medical Office Portfolio Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value	$ 741,304						$ 741,304
Maximum Facility Size	527,124						527,124
Principal Amount	497,613						$ 497,613		491,197
Secured financing agreements | Medical Office Portfolio Mortgages | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.50%
Secured financing agreements | Term Loan A
Secured Financing Agreements
Pledged Asset Carrying Value	992,366						$ 992,366
Maximum Facility Size	300,000						300,000
Principal Amount	300,000						$ 300,000		$ 300,000
Secured financing agreements | Term Loan A | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.25%
Secured financing agreements | Revolving Secured Financing
Secured Financing Agreements
Maximum Facility Size	100,000						$ 100,000
Secured financing agreements | Revolving Secured Financing | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							2.25%
Secured financing agreements | FHLB
Secured Financing Agreements
Pledged Asset Carrying Value	338,956						$ 338,956
Maximum Facility Size	250,000						250,000
Principal Amount	$ 250,000						$ 250,000
Secured financing agreements | FHLB | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							0.15%
Secured financing agreements | FHLB | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)							0.34%

Secured Financing Agreements -

Secured Financing Agreements - Principal Repayments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Repayment of secured financings
Total	$ 2,073,229		$ 2,073,229		$ 2,053,229
Secured financing agreements
Repayment of secured financings
2017 (remainder of)	795,722		795,722
2,018	1,065,120		1,065,120
2,019	397,070		397,070
2,020	1,399,582		1,399,582
2,021	568,104		568,104
Thereafter	1,330,122		1,330,122
Total	5,555,720		5,555,720		$ 4,197,218
Amortization of deferred financing costs from secured financing agreements included in interest expense	5,000	$ 3,900	14,400	$ 12,100
Repurchase Agreements
Repayment of secured financings
2017 (remainder of)	781,261		781,261
2,018	988,168		988,168
2,019	395,715		395,715
2,020	1,041,480		1,041,480
2,021	2,289		2,289
Thereafter	82,611		82,611
Total	3,291,524		3,291,524
Other Secured Financing
Repayment of secured financings
2017 (remainder of)	14,461		14,461
2,018	76,952		76,952
2,019	1,355		1,355
2,020	358,102		358,102
2,021	565,815		565,815
Thereafter	1,247,511		1,247,511
Total	$ 2,264,196		$ 2,264,196

Secured Financing Agreements 65

Secured Financing Agreements - Repurchase Agreements (Details) - Repurchase Agreements - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Secured Financing Agreements
Outstanding balance	$ 3,291,524	$ 2,476,277
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks	72.00%
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale	15.00%
Loans held for investment
Secured Financing Agreements
Outstanding balance	$ 2,692,642	1,890,925
Loans held-for-sale
Secured Financing Agreements
Outstanding balance	144,520	34,024
Investment securities.
Secured Financing Agreements
Outstanding balance	$ 454,362	$ 551,328

Unsecured Secured Notes (Detail

Unsecured Secured Notes (Details) $ / shares in Units, shares in Thousands	Mar. 29, 2017USD ($)	Dec. 16, 2016USD ($)	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2017USD ($)item$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2016USD ($)	Oct. 08, 2014USD ($)	Jul. 03, 2013USD ($)	Feb. 15, 2013USD ($)
Convertible Senior Notes
Principal Amount			$ 2,073,229,000		$ 2,073,229,000		$ 2,053,229,000
Conversion Spread Value - Shares | shares			2,313	3,445	2,284	3,766
Unamortized deferred financing costs			$ (6,018,000)		$ (6,018,000)		(5,822,000)
Carrying amount of debt components			2,044,523,000		2,044,523,000		2,011,544,000
Carrying amount of conversion option equity components recorded in additional paid-in capital			31,638,000		31,638,000		45,988,000
Principal amount of notes, basis for conversion			$ 1,000		$ 1,000
Closing share price (in dollars per share) | $ / shares			$ 21.72	$ 22.52	$ 21.72	$ 22.52
Loss on extinguishment of debt					$ 5,916,000
Conversion upon satisfaction of closing market price condition
Convertible Senior Notes
Minimum number of conditions to be satisfied for conversion of debt | item					1
Minimum trading period as a basis for debt conversion					20 days
Consecutive trading period as a basis for debt conversion					30 days
Conversion upon satisfaction of closing market price condition | Minimum
Convertible Senior Notes
Percentage of per share value of distributions that exceeds the market price of the entity's common stock as a basis for debt conversion					10.00%
Conversion upon satisfaction of closing market price condition | Maximum
Convertible Senior Notes
Period of average closing market price of common stock as a basis for debt conversion					10 days
Conversion upon satisfaction of trading price condition
Convertible Senior Notes
Consecutive trading period as a basis for debt conversion					5 days
Conversion upon satisfaction of trading price condition | Maximum
Convertible Senior Notes
Percentage of conversion price and last reported sales price as a basis for debt conversion					98.00%
2017 Notes
Convertible Senior Notes
Amount issued								$ 431,300,000
Principal Amount			$ 411,885,000		$ 411,885,000		411,885,000
Coupon Rate (as a percent)			3.75%		3.75%			3.75%
Effective Rate (as a percent)			5.87%		5.87%
Remaining Period of Amortization					0 years
Conversion Rate					41.7397
Conversion price (in dollars per share) | $ / shares			$ 23.96		$ 23.96
Amount by which if-converted value of the Notes are less than principal amount					$ 38,500,000
2018 Notes
Convertible Senior Notes
Amount issued										$ 600,000,000
Principal Amount			$ 369,981,000		$ 369,981,000		599,981,000
Coupon Rate (as a percent)			4.55%		4.55%					4.55%
Effective Rate (as a percent)			6.10%		6.10%
Remaining Period of Amortization					4 months 24 days
Conversion Rate					48.0666
Conversion price (in dollars per share) | $ / shares			$ 20.80		$ 20.80
Conversion Spread Value - Shares | shares			742	1,595	733	1,743
Amount by which if-converted value of the Notes exceed principal amount					$ 16,400,000
2019 Notes
Convertible Senior Notes
Amount issued									$ 460,000,000
Principal Amount			$ 341,363,000		$ 341,363,000		341,363,000
Coupon Rate (as a percent)			4.00%		4.00%				4.00%
Effective Rate (as a percent)			5.35%		5.35%
Remaining Period of Amortization					1 year 3 months 18 days
Conversion Rate					50.7031
Conversion price (in dollars per share) | $ / shares			$ 19.72		$ 19.72
Conversion Spread Value - Shares | shares			1,571	1,850	1,551	2,023
Amount by which if-converted value of the Notes exceed principal amount					$ 34,600,000
2019 Notes | Conversion upon satisfaction of closing market price condition | Minimum
Convertible Senior Notes
Percentage of conversion price as a basis for debt conversion					130.00%
2021 Senior Notes
Convertible Senior Notes
Amount issued		$ 700,000,000
Principal Amount			$ 700,000,000		$ 700,000,000		700,000,000
Coupon Rate (as a percent)		5.00%	5.00%		5.00%
Effective Rate (as a percent)			5.32%		5.32%
Remaining Period of Amortization					4 years 2 months 12 days
2021 Senior Notes | Debt instrument redemption period one
Convertible Senior Notes
Percentage of principal amount that may be redeemed		100.00%
2021 Senior Notes | Debt instrument redemption period two
Convertible Senior Notes
Percentage of principal amount that may be redeemed		35.00%
2023 Notes
Convertible Senior Notes
Principal Amount			$ 250,000,000		$ 250,000,000
Coupon Rate (as a percent)			4.38%		4.38%
Effective Rate (as a percent)			4.86%		4.86%
Remaining Period of Amortization					5 years 6 months
Conversion Rate					38.5959
Conversion price (in dollars per share) | $ / shares			$ 25.91		$ 25.91
Amount by which if-converted value of the Notes are less than principal amount					$ 40,400,000
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital					$ 3,755,000
2023 Notes | Conversion upon satisfaction of closing market price condition | Minimum
Convertible Senior Notes
Percentage of conversion price as a basis for debt conversion					110.00%
Convertible Senior Notes
Convertible Senior Notes
Unamortized discount			$ (14,268,000)		$ (14,268,000)		(26,135,000)
Amount of debt repurchased				$ 0		$ 0
Debt repurchased amount				$ 0		$ 0
Loss on extinguishment of debt					$ 5,900,000
Conversion of principal not included in computation of diluted EPS (in shares) | shares					59,600
Convertible Senior Notes | 2018 Notes
Convertible Senior Notes
Coupon Rate (as a percent)	4.55%
Amount by which if-converted value of the Notes exceed principal amount					$ 16,400,000
Debt repurchased amount	$ 230,000,000
Amount paid for debt repurchased	250,700,000
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital					18,100,000
Convertible Senior Notes | 2019 Notes
Convertible Senior Notes
Amount by which if-converted value of the Notes exceed principal amount					34,600,000
Convertible Senior Notes | 2023 Notes
Convertible Senior Notes
Amount issued	250,000,000
Gross proceeds	$ 247,500,000
Coupon Rate (as a percent)	4.375%
Carrying amount of debt components	$ 243,700,000
Carrying amount of conversion option equity components recorded in additional paid-in capital	$ 3,800,000
Senior Notes
Convertible Senior Notes
Unamortized discount			$ (8,420,000)		$ (8,420,000)		$ (9,728,000)

Loan Securitization_Sale Acti67

Loan Securitization/Sale Activities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment and Servicing Segment
Loan Transfer Activities
Fair value of loans sold	$ 517,351	$ 648,179	$ 987,828	$ 1,123,512
Par value of loans sold	498,022	599,997	938,879	1,056,859
Repayment of purchase agreements	376,687	366,268	709,666	709,049
Lending Segment
Loan Transfers Accounted for as Sales
Face Amount		116,000	38,750	238,514
Proceeds		$ 115,157	37,079	$ 236,433
Loan Transfers Accounted for as Secured Borrowings
Face Amount	75,000		75,000
Proceeds	$ 74,200		$ 74,200

Derivatives and Hedging Activ68

Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) - 9 months ended Sep. 30, 2017 € in Thousands, £ in Thousands, $ in Thousands	GBP (£)instrumentitem	USD ($)instrumentitem	EUR (€)instrumentitem
Derivatives
Number of contracts	223	223	223
Foreign exchange contracts | EUR | Sell
Derivatives
Number of contracts	44	44	44
Aggregate notional amount | €			€ 283,394
Foreign exchange contracts | EUR | Sell | Ireland Portfolio
Derivatives
Number of contracts	33	33	33
Aggregate notional amount | €			€ 231,100
Foreign exchange contracts | GBP | Sell
Derivatives
Number of contracts	129	129	129
Aggregate notional amount | £	£ 263,925
Interest rate swaps | Derivatives designated as hedging instruments
Derivatives
Number of contracts | instrument	4	4	4
Aggregate notional amount | $		$ 40,000
Hedging period for covering exposure to the variability in future cash flows	44 months
Interest rate swaps | Derivatives designated as hedging instruments | Minimum
Derivatives
Fixed monthly coupons at fixed rate (as a percent)	0.64%	0.64%	0.64%
Interest rate swaps | Derivatives designated as hedging instruments | Maximum
Derivatives
Fixed monthly coupons at fixed rate (as a percent)	1.52%	1.52%	1.52%
Interest rate swaps - Paying fixed rates | USD
Derivatives
Number of contracts	30	30	30
Aggregate notional amount | $		$ 815,730
Interest rate caps | EUR
Derivatives
Number of contracts	2	2	2
Aggregate notional amount | €			€ 294,000
Interest rate caps | USD
Derivatives
Number of contracts	8	8	8
Aggregate notional amount | $		$ 68,194
Credit index instruments | USD
Derivatives
Number of contracts	10	10	10
Aggregate notional amount | $		$ 59,000

Derivatives and Hedging Activ69

Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	$ 38,293	$ 89,361
Fair Value of Derivatives in a Liability Position	22,890	3,904
Derivatives designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	33	30
Fair Value of Derivatives in a Liability Position	2	56
Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	38,260	89,331
Fair Value of Derivatives in a Liability Position	22,888	3,848
Interest rate swaps | Derivatives designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	33	30
Fair Value of Derivatives in a Liability Position	2	56
Interest rate swaps | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	23,961	26,591
Fair Value of Derivatives in a Liability Position		3,484
Foreign exchange contracts | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	13,644	62,295
Fair Value of Derivatives in a Liability Position	22,888	364
Credit index instruments | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	$ 655	$ 445

Derivatives and Hedging Activ70

Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivatives
Gain (loss) on derivative financial instruments, net	$ (24,224)	$ (2,328)	$ (66,159)	$ (6,793)
Derivatives not designated as hedging instruments
Derivatives
Gain (loss) on derivative financial instruments, net	(24,224)	(2,328)	(66,159)	(6,793)
Interest rate swaps | Derivatives not designated as hedging instruments
Derivatives
Gain (loss) on derivative financial instruments, net	(3,836)	(626)	(10,190)	(25,899)
Foreign exchange contracts | Derivatives not designated as hedging instruments
Derivatives
Gain (loss) on derivative financial instruments, net	(19,650)	(189)	(54,814)	21,160
Credit index instruments | Derivatives not designated as hedging instruments
Derivatives
Gain (loss) on derivative financial instruments, net	(738)	(1,513)	(1,155)	(2,054)
Cash flow hedges | Interest rate swaps | Derivatives designated as hedging instruments
Derivatives
Gain (Loss) Recognized in OCI (effective portion)	(3)	107	45	(397)
Gain (Loss) Reclassified from AOCI into Income (effective portion)	$ 19	$ (78)	$ (11)	$ (261)

Offsetting Assets and Liabili71

Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Net Amounts of Assets Presented in the Statement of Financial Position	$ 38,293	$ 89,361
Liabilities
Gross Amounts of Recognized Liabilities	3,314,414	2,480,181
Net Amounts of Liabilities Presented in the Statement of Financial	3,314,414	2,480,181
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	3,305,201	2,476,768
Cash Collateral Pledged	6,859	3,413
Net Amount	2,354
Derivatives
Assets
Gross Amounts of Recognized Assets	38,293	89,361
Net Amounts of Assets Presented in the Statement of Financial Position	38,293	89,361
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	13,677	491
Net Amount	24,616	88,870
Liabilities
Gross Amounts of Recognized Liabilities	22,890	3,904
Net Amounts of Liabilities Presented in the Statement of Financial	22,890	3,904
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	13,677	491
Cash Collateral Pledged	6,859	3,413
Net Amount	2,354
Repurchase agreements
Liabilities
Gross Amounts of Recognized Liabilities	3,291,524	2,476,277
Net Amounts of Liabilities Presented in the Statement of Financial	3,291,524	2,476,277
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 3,291,524	$ 2,476,277

Variable Interest Entities (Det

Variable Interest Entities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)item	Dec. 31, 2016USD ($)
Variable interest entities
VIE Assets	$ 51,197,981	$ 67,123,261
VIE Liabilities	50,150,781	66,130,592
Investment securities	701,818	807,618
Debt obligations to beneficial interest holders, unpaid principal balances	2,073,229	2,053,229
Interest in VIE	243,450	$ 204,605
Primary beneficiary | Accounting Standards Update 2015-02
Variable interest entities
VIE Assets	167,300
VIE Liabilities	$ 114,300
Not primary beneficiary
Variable interest entities
Number of CDO structures currently in default | item	2
Number of CDO structures that entered default during the period | item	1
Maximum risk of loss related to VIEs, on fair value basis	$ 23,800
Not primary beneficiary | Adjustment
Variable interest entities
Carrying value	0
VIE assets	(467,100)
VIE liabilities	(467,100)
Not primary beneficiary | Accounting Standards Update 2015-02 | Adjustment
Variable interest entities
Interest in VIE	118,800
Not primary beneficiary | Securitization SPEs
Variable interest entities
Debt obligations to beneficial interest holders, unpaid principal balances	$ 5,300,000

Related-Party Transactions (Det

Related-Party Transactions (Details) $ in Thousands, £ in Millions	1 Months Ended								3 Months Ended		9 Months Ended		24 Months Ended
	Aug. 31, 2017USD ($)	Jun. 30, 2017GBP (£)property	Jun. 30, 2017USD ($)property	May 31, 2017USD ($)	Mar. 31, 2017USD ($)propertyshares	May 31, 2015shares	Oct. 31, 2014USD ($)property	Jan. 31, 2014shares	Sep. 30, 2017USD ($)shares	Sep. 30, 2016USD ($)shares	Sep. 30, 2017USD ($)shares	Sep. 30, 2016USD ($)shares	Dec. 31, 2016USD ($)
Related-Party Transactions
Granted (in shares) | shares											1,548,160
Investment in unconsolidated entities									$ 243,450		$ 243,450		$ 204,605
Originations of mortgage financing											$ 3,722,624	$ 2,795,772
Retail fund
Related-Party Transactions
Investment in unconsolidated entities	$ 15,500						$ 150,000
Equity interest acquired (as a percent)							33.00%		33.00%		33.00%		33.00%
Number of retail properties acquired | property							4
Restricted stock units
Related-Party Transactions
Granted (in shares) | shares									0	0
Starwood Property Trust, Inc. Manager Equity Plan
Related-Party Transactions
Granted (in shares) | shares											1,000,000
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Related-Party Transactions
Granted (in shares) | shares					1,000,000	675,000		2,000,000
Award vesting period					3 years	3 years		3 years
Co-origination of loan with SEREF and private funds, London
Related-Party Transactions
Originations of mortgage financing			$ 75,000
Number of properties | property		3	3
Origination Of Loan For Acquisition Of Office Campus In Irvine, California
Related-Party Transactions
Originations of mortgage financing	$ 339,200
Manager
Related-Party Transactions
Base management fee incurred									$ 16,900	$ 15,200	$ 50,700	45,400
Base management fee payable									16,900		16,900		$ 15,700
Incentive fee incurred									10,400	6,300	20,200	13,800
Incentive fees payable									10,400		10,400		19,000
Executive compensation and other reimbursable expenses									1,700	1,500	4,500	4,100
Executive compensation and other reimbursable expense payable									2,700		2,700		3,000
Grant date fair value											$ 3,100	$ 3,300
Manager | Restricted stock units
Related-Party Transactions
Granted (in shares) | shares											138,264	169,104
Award vesting period											3 years	3 years
Share-based compensation expense									700	600	$ 2,100	$ 1,600
Manager | Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Related-Party Transactions
Share-based compensation expense									3,000	5,700	7,400	15,800
Affiliates of Manager
Related-Party Transactions
Purchase price				$ 50,000
Commercial real estate loans held for sale, sold									25,000		25,000
Commercial real estate loans sold subsequent to the end of the period.									25,000		25,000
Investment and Servicing Segment
Related-Party Transactions
Purchase price													$ 268,500
CMBS | Investment and Servicing Segment | REIS Equity Portfolio
Related-Party Transactions
Purchase price									$ 0	$ 3,300	$ 19,700	88,400
Non-controlling interest issued												$ 5,500
CMBS | Investment and Servicing Segment | Co-origination of loan with SEREF and private funds, London
Related-Party Transactions
Total commitments | £		£ 69.3
Amount committed for loans by the entity | £		£ 55.4
CMBS | Investment and Servicing Segment | Fund IX
Related-Party Transactions
Aggregate proceeds					$ 59,000
Number of hotel properties. | property					85

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Aug. 09, 2017	May 09, 2017	Feb. 23, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Feb. 28, 2017
Stockholders' Equity
Dividend declared (in dollars per share)	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 1.44	$ 1.44
Shares issued under ATM Agreement						0	0
Authorized amount of share repurchases								$ 500,000,000
Common stock repurchased (in shares)						0	1,052,889
Cost of common stock repurchased							$ 19,723,000
Remaining capacity under repurchase program				$ 262,200,000		$ 262,200,000
Convertible Senior Notes
Stockholders' Equity
Face amount of debt repurchased					$ 0		0
Debt repurchased amount					$ 0		$ 0

Stockholders' Equity - Equity I

Stockholders' Equity - Equity Incentive Plans (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Mar. 31, 2017	May 31, 2015	Jan. 31, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	May 31, 2017
Equity Incentive Plans
Granted (in shares)						1,548,160
Restricted stock units
Equity Incentive Plans
Granted (in shares)				0	0
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan
Equity Incentive Plans
Number of shares of authorized for issuance							11,000,000
Number of shares available for future grants				11,000,000		11,000,000
Starwood Property Trust, Inc. Equity Plan
Equity Incentive Plans
Granted (in shares)						548,160
Starwood Property Trust, Inc. Manager Equity Plan
Equity Incentive Plans
Granted (in shares)						1,000,000
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Equity Incentive Plans
Granted (in shares)	1,000,000	675,000	2,000,000
Awards granted, fair value	$ 22,240,000	$ 16,511,000	$ 55,420,000
Award vesting period	3 years	3 years	3 years
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | Spin off
Equity Incentive Plans
Granted (in shares)			489,281
Awards granted, fair value			$ 14,776,000
Award vesting period			3 years

Stockholders' Equity - Non-Vest

Stockholders' Equity - Non-Vested Shares (Details)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	820,374
Granted (in shares)	1,548,160
Vested (in shares)	(672,608)
Forfeited (in shares)	(34,531)
Balance at the end of the period (in shares)	1,661,395
Weighted Average Grant Date Fair Value (per share)
Balance at the beginning of period (in dollars per share) | $ / shares	$ 22.34
Granted (in dollars per share) | $ / shares	22.27
Vested (in dollars per share) | $ / shares	22.69
Forfeited (in dollars per share) | $ / shares	22.56
Balance at the end of period (in dollars per share) | $ / shares	$ 22.09
Starwood Property Trust, Inc. Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	539,124
Granted (in shares)	548,160
Vested (in shares)	(337,192)
Forfeited (in shares)	(34,531)
Balance at the end of the period (in shares)	715,561
Starwood Property Trust, Inc. Manager Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	281,250
Granted (in shares)	1,000,000
Vested (in shares)	(335,416)
Balance at the end of the period (in shares)	945,834

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Continuing Operations:
Basic - Income attributable to STWD common stockholders	$ 88,428	$ 105,766	$ 308,166	$ 243,896
Less: Income attributable to participating shares	(761)	(456)	(2,489)	(1,743)
Basic earnings	87,667	105,310	305,677	242,153
Continuing Operations:
Basic - Income attributable to STWD common stockholders	88,428	105,766	308,166	243,896
Less: Income attributable to participating shares	(761)	(456)	(2,489)	(1,743)
Diluted earnings	$ 87,667	$ 105,310	$ 305,677	$ 242,153
Number of Shares:
Basic - Average shares outstanding	259,759	237,429	259,412	237,017
Effect of dilutive securities - Convertible Notes (in shares)	2,313	3,445	2,284	3,766
Effect of dilutive securities - Contingently Issuable Shares (in shares)	236	138	236	138
Effect of dilutive securities — Unvested non-participating shares	129	79	123	61
Diluted - Average shares outstanding	262,437	241,091	262,055	240,982
Basic:
Basic (in dollars per share)	$ 0.34	$ 0.44	$ 1.18	$ 1.02
Diluted:
Diluted (in dollars per share)	$ 0.33	$ 0.44	$ 1.17	$ 1

Earnings per Share - Dilutive a

Earnings per Share - Dilutive and Antidilutive securities (Details) shares in Thousands, instrument in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017shares	Sep. 30, 2016shares	Sep. 30, 2017USD ($)instrumentshares	Sep. 30, 2016shares
Antidilutive securities and effect of dilutive securities
Effect of dilutive securities - Convertible Notes (in shares) | shares	2,313	3,445	2,284	3,766
2017 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes are less than principal amount			$ 38.5
Effect of dilutive securities - Convertible Notes (in shares) | shares			0
2018 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes exceed principal amount			$ 16.4
2019 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes exceed principal amount			34.6
2023 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes are less than principal amount			$ 40.4
Effect of dilutive securities - Convertible Notes (in shares) | shares			0
Convertible Senior Notes
Antidilutive securities and effect of dilutive securities
Potential shares of common stock contingently issuable upon conversion of the Convertible Notes | instrument			61.9
Shares excluded from diluted EPS calculations | shares			59,600
Convertible Senior Notes | 2018 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes exceed principal amount			$ 16.4
Convertible Senior Notes | 2019 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes exceed principal amount			$ 34.6
Restricted stock
Antidilutive securities and effect of dilutive securities
Number of anti-dilutive common shares excluded from the calculation of diluted income per share | shares			1,600	900

Accumulated Other Comprehensi79

Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Changes in AOCI by component
Beginning balance	$ 55,981	$ 32,627	$ 36,138	$ 29,729
OCI before reclassifications	9,309	7,543	29,217	10,258
Amounts reclassified from AOCI	(19)	78	(84)	261
Net period OCI	9,290	7,621	29,133	10,519
Ending balance	65,271	40,248	65,271	40,248
Effective Portion of Cumulative Loss on Cash Flow Hedges
Changes in AOCI by component
Beginning balance	52	(386)	(26)	(65)
OCI before reclassifications	(3)	107	45	(397)
Amounts reclassified from AOCI	(19)	78	11	261
Net period OCI	(22)	185	56	(136)
Ending balance	30	(201)	30	(201)
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities
Changes in AOCI by component
Beginning balance	51,682	39,858	44,929	37,307
OCI before reclassifications	3,975	6,105	10,823	8,656
Amounts reclassified from AOCI			(95)
Net period OCI	3,975	6,105	10,728	8,656
Ending balance	55,657	45,963	55,657	45,963
Foreign Currency Translation
Changes in AOCI by component
Beginning balance	4,247	(6,845)	(8,765)	(7,513)
OCI before reclassifications	5,337	1,331	18,349	1,999
Net period OCI	5,337	1,331	18,349	1,999
Ending balance	$ 9,584	$ (5,514)	$ 9,584	$ (5,514)

Accumulated Other Comprehensi80

Accumulated Other Comprehensive Income - Impact of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income
Interest expense	$ (76,431)	$ (59,082)	$ (213,608)	$ (173,237)
Interest income from investment securities	12,451	19,175	40,045	53,879
Net income	92,799	105,813	318,886	244,930
Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Net income	19	(78)	84	(261)
Effective Portion of Cumulative Loss on Cash Flow Hedges | Interest rate contracts | Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Interest expense	$ 19	$ (78)	(11)	$ (261)
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Interest income from investment securities			$ 95

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets and liabilities measured at fair value
Permitted reinvestment under static investment in VIEs	$ 0
Marketable securities	701,818	$ 807,618
Domestic servicing rights	33,781	55,082
Derivative assets	38,293	89,361
VIE Assets	51,197,981	67,123,261
Derivative liabilities	22,890	3,904
VIE Liabilities	50,150,781	66,130,592
Fair value measurements on recurring basis
Assets and liabilities measured at fair value
Loans held-for-sale, fair value option	608,624	63,279
Derivative assets	38,293	89,361
VIE Assets	51,197,981	67,123,261
Total	52,169,301	67,628,621
Derivative liabilities	22,890	3,904
VIE Liabilities	50,150,781	66,130,592
Total	50,173,671	66,134,496
Fair value measurements on recurring basis | Domestic servicing rights
Assets and liabilities measured at fair value
Domestic servicing rights	33,781	55,082
Fair value measurements on recurring basis | RMBS
Assets and liabilities measured at fair value
Available-for-sale securities	253,252	253,915
Fair value measurements on recurring basis | CMBS
Assets and liabilities measured at fair value
Available-for-sale securities	23,841	31,546
Fair value measurements on recurring basis | Equity security
Assets and liabilities measured at fair value
Marketable securities	13,529	12,177
Fair value measurements on recurring basis | Level I
Assets and liabilities measured at fair value
Total	13,529	12,177
Fair value measurements on recurring basis | Level I | Equity security
Assets and liabilities measured at fair value
Marketable securities	13,529	12,177
Fair value measurements on recurring basis | Level II
Assets and liabilities measured at fair value
Derivative assets	38,293	89,361
Total	38,293	89,361
Derivative liabilities	22,890	3,904
VIE Liabilities	47,890,998	63,545,223
Total	47,913,888	63,549,127
Fair value measurements on recurring basis | Level III
Assets and liabilities measured at fair value
Loans held-for-sale, fair value option	608,624	63,279
VIE Assets	51,197,981	67,123,261
Total	52,117,479	67,527,083
VIE Liabilities	2,259,783	2,585,369
Total	2,259,783	2,585,369
Fair value measurements on recurring basis | Level III | Domestic servicing rights
Assets and liabilities measured at fair value
Domestic servicing rights	33,781	55,082
Fair value measurements on recurring basis | Level III | RMBS
Assets and liabilities measured at fair value
Available-for-sale securities	253,252	253,915
Fair value measurements on recurring basis | Level III | CMBS
Assets and liabilities measured at fair value
Available-for-sale securities	$ 23,841	$ 31,546

Fair Value - Level III (Details

Fair Value - Level III (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Total realized and unrealized gains (losses):
Included in earnings: OTTI			$ (109)
Included in earnings: Net accretion			11,669	$ 11,967
Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	$ 52,657,131	$ 77,221,472	64,941,714	74,836,009
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(3,368,402)	(7,457,695)	(15,003,948)	(15,500,863)
Included in earnings: OTTI			(109)
Included in earnings: Net accretion	3,187	4,197	10,375	11,354
Included in OCI	3,975	6,105	10,728	8,656
Purchases / Originations	536,207	717,913	1,546,595	1,352,581
Sales	(517,350)	(665,635)	(998,962)	(1,142,237)
Issuances	(1,469)		(11,657)	(596)
Cash repayments / receipts	(44,919)	(14,865)	(118,465)	(36,854)
Transfers into Level III	(233,367)	(1)	(616,794)	(972,588)
Transfers out of Level III	67,272	40,959	231,012	187,683
Consolidations of VIEs	888,979	2,134,108	2,016,931	18,362,082
Deconsolidations of VIEs	(133,548)	(238,550)	(2,149,724)	(5,357,219)
Balance at the end of the period	49,857,696	71,748,008	49,857,696	71,748,008
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(3,386,854)	(7,492,607)	(15,037,479)	(15,548,945)
VIE liabilities | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	(2,164,593)	(3,540,652)	(2,585,369)	(2,552,448)
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	151,273	653,103	749,757	946,703
Issuances	(1,469)		(11,657)	(596)
Cash repayments / receipts	(4,910)	7,819	(40,946)	28,591
Transfers into Level III	(233,367)	(1)	(616,794)	(972,588)
Transfers out of Level III	67,272	40,959	231,012	187,683
Consolidations of VIEs	(75,585)	(109,913)	(75,585)	(593,818)
Deconsolidations of VIEs	1,596	37,188	89,799	44,976
Balance at the end of the period	(2,259,783)	(2,911,497)	(2,259,783)	(2,911,497)
Amount of total (losses) gains included in earnings attributable to assets still held at period end	151,273	653,103	749,757	946,703
Loans held-for-sale | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	610,116	237,106	63,279	203,865
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	19,485	49,996	45,484	70,122
Purchases / Originations	524,409	709,045	1,527,364	1,197,801
Sales	(517,350)	(648,179)	(987,828)	(1,123,512)
Cash repayments / receipts	(28,036)	(478)	(39,675)	(786)
Balance at the end of the period	608,624	347,490	608,624	347,490
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(2,597)	9,746	(2,621)	9,746
RMBS | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	256,397	251,260	253,915	176,224
Total realized and unrealized gains (losses):
Included in earnings: OTTI			(109)
Included in earnings: Net accretion	3,187	4,197	10,375	11,354
Included in OCI	3,975	6,105	10,728	8,656
Purchases / Originations		8,868	7,433	97,204
Cash repayments / receipts	(10,307)	(9,917)	(29,090)	(32,925)
Balance at the end of the period	253,252	260,513	253,252	260,513
Amount of total (losses) gains included in earnings attributable to assets still held at period end	3,187	4,197	10,159	11,354
CMBS | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	13,848	114,340	31,546	212,981
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(673)	(2,993)	(4,359)	(677)
Purchases / Originations	11,798		11,798	57,576
Sales		(17,456)	(11,134)	(18,725)
Cash repayments / receipts	(1,666)	(12,289)	(8,754)	(31,734)
Consolidations of VIEs		(24,403)		(162,745)
Deconsolidations of VIEs	534	1,586	4,744	2,109
Balance at the end of the period	23,841	58,785	23,841	58,785
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(230)	(1,852)	56	263
Domestic servicing rights | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	38,648	83,301	55,082	119,698
Impact of ASU 2015-02 Adoption				(17,467)
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(4,867)	(14,283)	(21,301)	(33,213)
Balance at the end of the period	33,781	69,018	33,781	69,018
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(4,867)	(14,283)	(21,301)	(33,213)
VIE Assets | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	53,902,715	80,076,117	67,123,261	76,675,689
Impact of ASU 2015-02 Adoption				17,467
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(3,533,620)	(8,143,518)	(15,773,529)	(16,483,798)
Consolidations of VIEs	964,564	2,268,424	2,092,516	19,118,645
Deconsolidations of VIEs	(135,678)	(277,324)	(2,244,267)	(5,404,304)
Balance at the end of the period	51,197,981	73,923,699	51,197,981	73,923,699
Amount of total (losses) gains included in earnings attributable to assets still held at period end	$ (3,533,620)	$ (8,143,518)	$ (15,773,529)	$ (16,483,798)

Fair Value - Financial Instrume

Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financial assets not carried at fair value:
HTM securities	$ 411,196	$ 509,980
Carrying Value
Financial assets not carried at fair value:
Loans held-for-investment and loans transferred as secured borrowings	6,456,710	5,882,995
HTM securities	411,196	509,980
Financial liabilities not carried at fair value:
Secured financing agreements and secured borrowings on transferred loans	5,588,895	4,189,126
Convertible Notes Payable	2,044,523	2,011,544
Fair Value.
Financial assets not carried at fair value:
Loans held-for-investment and loans transferred as secured borrowings	6,539,259	5,934,219
HTM securities	408,442	504,165
Financial liabilities not carried at fair value:
Secured financing agreements and secured borrowings on transferred loans	5,559,888	4,198,136
Convertible Notes Payable	$ 2,097,835	$ 2,088,374

Fair Value - Significant unobse

Fair Value - Significant unobservable inputs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 62,706,268	$ 77,256,266
Carrying Value	58,166,534	$ 72,696,193
Fair value measurements on recurring basis | Level III | VIE liabilities | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 2,259,783
Fair value measurements on recurring basis | Level III | VIE liabilities | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	0.00%	0.00%
Duration	0 years	0 years
Fair value measurements on recurring basis | Level III | VIE liabilities | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	813.90%	960.40%
Duration	11 years 7 months 6 days	12 years
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 608,624
Duration		10 years
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	4.30%	5.00%
Duration	3 years 3 months 18 days
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	5.90%	5.70%
Duration	12 years 9 months 18 days
Fair value measurements on recurring basis | Level III | RMBS | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 253,252
Portfolio percentage	81.00%	57.00%
Fair value measurements on recurring basis | Level III | RMBS | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Constant prepayment rate (as a percent)	2.40%	2.80%
Constant default rate (as a percent)	0.80%	1.10%
Loss severity (as a percent)	16.00%	12.00%
Delinquency rate (as a percent)	4.00%	2.00%
Servicer advances (as a percent)	20.00%	23.00%
Annual coupon deterioration (as a percent)	0.00%	0.00%
Putback amount per projected total collateral loss (as a percent)	0.00%	0.00%
Loss severity for specified percentage of portfolio (as a percent)	45.00%	45.00%
Fair value measurements on recurring basis | Level III | RMBS | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Constant prepayment rate (as a percent)	19.40%	17.00%
Constant default rate (as a percent)	5.80%	8.10%
Loss severity (as a percent)	79.00%	79.00%
Delinquency rate (as a percent)	34.00%	29.00%
Servicer advances (as a percent)	84.00%	94.00%
Annual coupon deterioration (as a percent)	0.80%	0.60%
Putback amount per projected total collateral loss (as a percent)	15.00%	15.00%
Loss severity for specified percentage of portfolio (as a percent)	80.00%	80.00%
Fair value measurements on recurring basis | Level III | CMBS | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 23,841
Fair value measurements on recurring basis | Level III | CMBS | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	0.00%	0.00%
Duration	0 years	0 years
Fair value measurements on recurring basis | Level III | CMBS | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	167.10%	172.00%
Duration	9 years 10 months 24 days	18 years 8 months 12 days
Fair value measurements on recurring basis | Level III | Domestic servicing rights | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 33,781
Yield (as a percent)	7.75%	7.75%
Discount rate (as a percent)	15.00%	15.00%
Fair value measurements on recurring basis | Level III | Domestic servicing rights | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Control migration (as a percent)	0.00%	0.00%
Fair value measurements on recurring basis | Level III | Domestic servicing rights | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Control migration (as a percent)	80.00%	80.00%
Fair value measurements on recurring basis | Level III | VIE Assets | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 51,197,981
Fair value measurements on recurring basis | Level III | VIE Assets | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	0.00%	0.00%
Duration	0 years	0 years
Fair value measurements on recurring basis | Level III | VIE Assets | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Yield (as a percent)	813.90%	960.40%
Duration	11 years 7 months 6 days	12 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Income Taxes
Assets	$ 62,706,268	$ 77,256,266
Cash	413,845	615,522
Investment and Servicing Segment | TRS entities
Income Taxes
Assets	779,800	634,400
Cash	$ 139,400	$ 181,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Reconciliation of statutory tax to effective tax
Federal statutory tax rate	$ 35,915	$ 37,968	$ 118,010	$ 86,939
REIT and other non-taxable income	(26,242)	(35,541)	(99,668)	(83,676)
State income taxes	200	247	81	224
Federal benefit of state tax deduction	(70)	(86)	(28)	(78)
Other	13	79	(110)	58
Total	9,816	$ 2,667	18,285	$ 3,467
Investment in unconsolidated entities	$ 243,450		$ 243,450		$ 204,605
Reconciliation of statutory tax rate to effective tax rate
Federal statutory tax rate (as a percent)	35.00%	35.00%	35.00%	35.00%
REIT and other non-taxable income (as a percent)	(25.50%)	(32.70%)	(29.60%)	(33.70%)
State income taxes (as a percent)	0.20%	0.20%		0.10%
Federal benefit of state tax deduction (as a percent)	(0.10%)	(0.10%)
Other (as a percent)		0.10%
Effective tax rate (as a percent)	9.60%	2.50%	5.40%	1.40%
Investor entity which owns equity in an online real estate auction company
Reconciliation of statutory tax to effective tax
Discrete income tax provision	$ 8,400		$ 18,300
Earnings from unconsolidated entities	$ 28,200		$ 53,900

Commitments and Contingencies (

Commitments and Contingencies (Details) - Commitments $ in Billions	Sep. 30, 2017USD ($)loan
Operating leases
Number of loans with future funding commitments | loan	51
Value of loans with future funding commitments	$ 1.5
Value of loans with future funding commitments expected to fund	$ 1.3

Segment Data - Results of Opera

Segment Data - Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Interest income from loans	$ 138,599	$ 121,225	$ 371,094	$ 361,314
Interest income from investment securities	12,451	19,175	40,045	53,879
Servicing fees	14,842	22,918	47,572	70,921
Rental income	60,153	39,742	176,161	110,262
Other revenues	722	1,645	2,184	3,814
Total revenues	226,767	204,705	637,056	600,190
Costs and expenses:
Management fees	30,980	27,780	79,997	76,510
Interest expense	76,431	59,082	213,608	173,237
General and administrative	32,892	51,470	95,841	119,677
Acquisition and investment pursuit costs	1,024	1,509	2,232	5,682
Costs of rental operations	23,799	18,011	67,701	46,518
Depreciation and amortization	22,871	15,352	67,131	53,185
Loan loss allowance, net	(171)	2,127	(3,170)	3,395
Other expense	376	711	1,276	811
Total costs and expenses	188,202	176,042	524,616	479,015
Income before other income (loss), income taxes and non-controlling interests	38,565	28,663	112,440	121,175
Other income (loss):
Change in net assets related to consolidated VIEs	56,177	47,848	203,108	94,388
Change in fair value of servicing rights	(4,867)	(14,283)	(21,301)	(33,213)
Change in fair value of investment securities, net	(397)	(2,786)	(4,061)	(714)
Change in fair value of mortgage loans held-for-sale, net	19,485	49,996	45,484	70,122
(Loss) earnings from unconsolidated entities	(4,689)	4,305	27,763	12,849
Gain on sale of investments and other assets, net	11,877	10	17,004	165
Loss on derivative financial instruments, net	(24,224)	(2,328)	(66,159)	(6,793)
Foreign currency (loss), gain net	10,660	(3,214)	28,434	(20,580)
OTTI/Impairment			(109)
Loss on extinguishment of debt			(5,916)
Other income, net	28	269	484	10,998
Total other income (loss)	64,050	79,817	224,731	127,222
Income before income taxes	102,615	108,480	337,171	248,397
Income tax provision	(9,816)	(2,667)	(18,285)	(3,467)
Net income	92,799	105,813	318,886	244,930
Net income attributable to non-controlling interests	(4,371)	(47)	(10,720)	(1,034)
Net income attributable to Starwood Property Trust, Inc.	88,428	105,766	308,166	243,896
Operating Segments and Corporate
Revenues:
Interest income from loans	138,599	121,225	371,094	361,314
Interest income from investment securities	43,280	48,575	140,638	149,310
Servicing fees	23,235	37,873	87,405	111,705
Rental income	60,153	39,742	176,161	110,262
Other revenues	786	1,802	2,433	4,325
Total revenues	266,053	249,217	777,731	736,916
Costs and expenses:
Management fees	30,870	27,732	79,787	76,364
Interest expense	76,708	59,272	214,429	173,427
General and administrative	32,810	51,296	95,598	119,145
Acquisition and investment pursuit costs	1,024	1,509	2,232	5,682
Costs of rental operations	23,799	18,011	67,701	46,518
Depreciation and amortization	22,871	15,352	67,131	53,185
Loan loss allowance, net	(171)	2,127	(3,170)	3,395
Other expense	376	711	1,276	811
Total costs and expenses	188,287	176,010	524,984	478,527
Income before other income (loss), income taxes and non-controlling interests	77,766	73,207	252,747	258,389
Other income (loss):
Change in fair value of servicing rights	(5,652)	(14,006)	(28,956)	(33,710)
Change in fair value of investment securities, net	14,238	827	45,562	(43,486)
Change in fair value of mortgage loans held-for-sale, net	19,485	49,996	45,484	70,122
(Loss) earnings from unconsolidated entities	(2,658)	3,924	40,900	13,137
Gain on sale of investments and other assets, net	11,877	10	17,004	165
Loss on derivative financial instruments, net	(24,224)	(2,328)	(66,159)	(6,793)
Foreign currency (loss), gain net	10,660	(3,214)	28,434	(20,580)
OTTI/Impairment			(109)
Loss on extinguishment of debt			(5,916)
Other income, net	28	269	1,097	10,998
Total other income (loss)	23,754	35,478	77,341	(10,147)
Income before income taxes	101,520	108,685	330,088	248,242
Income tax provision	(9,816)	(2,667)	(18,285)	(3,467)
Net income	91,704	106,018	311,803	244,775
Net income attributable to non-controlling interests	(3,276)	(252)	(3,637)	(879)
Net income attributable to Starwood Property Trust, Inc.	88,428	105,766	308,166	243,896
Operating segment | Lending Segment
Revenues:
Interest income from loans	134,149	114,506	360,188	348,460
Interest income from investment securities	11,540	13,301	35,870	33,975
Servicing fees	142	195	568	560
Other revenues	181	99	553	180
Total revenues	146,012	128,101	397,179	383,175
Costs and expenses:
Management fees	482	525	1,405	1,295
Interest expense	27,929	22,678	72,372	67,585
General and administrative	5,302	5,067	14,872	13,529
Acquisition and investment pursuit costs	807	322	1,707	1,602
Depreciation and amortization	17		50
Loan loss allowance, net	(171)	2,127	(3,170)	3,395
Other expense	72		72
Total costs and expenses	34,438	30,719	87,308	87,406
Income before other income (loss), income taxes and non-controlling interests	111,574	97,382	309,871	295,769
Other income (loss):
Change in fair value of investment securities, net	276	207	299	(37)
Change in fair value of mortgage loans held-for-sale, net	(397)		(549)
(Loss) earnings from unconsolidated entities	848	852	2,548	2,544
Gain on sale of investments and other assets, net		10	(59)	165
Loss on derivative financial instruments, net	(10,813)	4,982	(30,274)	17,824
Foreign currency (loss), gain net	10,657	(3,839)	28,402	(23,501)
OTTI/Impairment			(109)
Total other income (loss)	571	2,212	258	(3,005)
Income before income taxes	112,145	99,594	310,129	292,764
Income tax provision	11		(331)	(75)
Net income	112,156	99,594	309,798	292,689
Net income attributable to non-controlling interests	(357)	(352)	(1,064)	(1,050)
Net income attributable to Starwood Property Trust, Inc.	111,799	99,242	308,734	291,639
Operating segment | Investment and Servicing Segment
Revenues:
Interest income from loans	4,450	6,719		12,854
Interest income from investment securities	31,740	35,274		115,335
Servicing fees	23,093	37,678		111,145
Rental income	12,490	10,516	138,795	25,214
Other revenues	441	1,692	430	4,110
Total revenues	72,214	91,879	139,225	268,658
Costs and expenses:
Management fees	18	24		54
Interest expense	5,710	4,877	32,466	11,443
General and administrative	24,167	43,711	3,471	95,726
Acquisition and investment pursuit costs	(28)	416	516	1,551
Costs of rental operations	5,139	4,872	51,843	11,595
Depreciation and amortization	5,002	4,482	52,288	11,263
Other expense	207	198	63	298
Total costs and expenses	40,215	58,580	140,647	131,930
Income before other income (loss), income taxes and non-controlling interests	31,999	33,299	(1,422)	136,728
Other income (loss):
Change in fair value of servicing rights	(5,652)	(14,006)		(33,710)
Change in fair value of investment securities, net	13,962	620		(43,449)
Change in fair value of mortgage loans held-for-sale, net	19,882	49,996		70,122
(Loss) earnings from unconsolidated entities	30,225	617	(28,782)	3,280
Gain on sale of investments and other assets, net	11,877		77
Loss on derivative financial instruments, net	(2,135)	(2,590)	(32,268)	(17,780)
Foreign currency (loss), gain net	4	632	16	2,962
Other income, net	28	35		112
Total other income (loss)	68,191	35,304	(60,957)	(18,463)
Income before income taxes	100,190	68,603	(62,379)	118,265
Income tax provision	(9,827)	(2,667)		(3,392)
Net income	90,363	65,936	(62,379)	114,873
Net income attributable to non-controlling interests	(2,919)	100		171
Net income attributable to Starwood Property Trust, Inc.	87,444	66,036	(62,379)	115,044
Operating segment | Property Segment
Revenues:
Interest income from loans			10,906
Interest income from investment securities			104,768
Servicing fees			86,837
Rental income	47,663	29,226	37,366	85,048
Other revenues	164	11	1,450	35
Total revenues	47,827	29,237	241,327	85,083
Costs and expenses:
Management fees			54
Interest expense	11,360	5,536	14,924	16,163
General and administrative	1,090	867	69,536	2,259
Acquisition and investment pursuit costs	245	759	9	1,517
Costs of rental operations	18,660	13,139	15,858	34,923
Depreciation and amortization	17,852	10,870	14,793	41,922
Other expense	97	513	1,141	513
Total costs and expenses	49,304	31,684	116,315	97,297
Income before other income (loss), income taxes and non-controlling interests	(1,477)	(2,447)	125,012	(12,214)
Other income (loss):
Change in fair value of servicing rights			(28,956)
Change in fair value of investment securities, net			45,263
Change in fair value of mortgage loans held-for-sale, net			46,033
(Loss) earnings from unconsolidated entities	(33,731)	2,455	67,134	7,313
Gain on sale of investments and other assets, net			16,986
Loss on derivative financial instruments, net	(11,276)	(4,720)	(3,617)	(6,837)
Foreign currency (loss), gain net	(1)	(7)	16	(41)
Other income, net			1,097	9,102
Total other income (loss)	(45,008)	(2,272)	143,956	9,537
Income before income taxes	(46,485)	(4,719)	268,968	(2,677)
Income tax provision			(17,954)
Net income	(46,485)	(4,719)	251,014	(2,677)
Net income attributable to non-controlling interests			(2,573)
Net income attributable to Starwood Property Trust, Inc.	(46,485)	(4,719)	248,441	(2,677)
Corporate
Costs and expenses:
Management fees	30,370	27,183	78,328	75,015
Interest expense	31,709	26,181	94,667	78,236
General and administrative	2,251	1,651	7,719	7,631
Acquisition and investment pursuit costs		12		1,012
Total costs and expenses	64,330	55,027	180,714	161,894
Income before other income (loss), income taxes and non-controlling interests	(64,330)	(55,027)	(180,714)	(161,894)
Other income (loss):
Loss on extinguishment of debt			(5,916)
Other income, net		234		1,784
Total other income (loss)		234	(5,916)	1,784
Income before income taxes	(64,330)	(54,793)	(186,630)	(160,110)
Net income	(64,330)	(54,793)	(186,630)	(160,110)
Net income attributable to Starwood Property Trust, Inc.	(64,330)	(54,793)	(186,630)	(160,110)
Investment and Servicing VIEs
Revenues:
Interest income from investment securities	(30,829)	(29,400)	(100,593)	(95,431)
Servicing fees	(8,393)	(14,955)	(39,833)	(40,784)
Other revenues	(64)	(157)	(249)	(511)
Total revenues	(39,286)	(44,512)	(140,675)	(136,726)
Costs and expenses:
Management fees	110	48	210	146
Interest expense	(277)	(190)	(821)	(190)
General and administrative	82	174	243	532
Total costs and expenses	(85)	32	(368)	488
Income before other income (loss), income taxes and non-controlling interests	(39,201)	(44,544)	(140,307)	(137,214)
Other income (loss):
Change in net assets related to consolidated VIEs	56,177	47,848	203,108	94,388
Change in fair value of servicing rights	785	(277)	7,655	497
Change in fair value of investment securities, net	(14,635)	(3,613)	(49,623)	42,772
(Loss) earnings from unconsolidated entities	(2,031)	381	(13,137)	(288)
Other income, net			(613)
Total other income (loss)	40,296	44,339	147,390	137,369
Income before income taxes	1,095	(205)	7,083	155
Net income	1,095	(205)	7,083	155
Net income attributable to non-controlling interests	$ (1,095)	$ 205	$ (7,083)	$ (155)

Segment Data - Balance sheets (

Segment Data - Balance sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 413,845		$ 615,522
Restricted cash	54,591		35,233
Loans held-for-investment, net	6,382,371		5,847,995
Loans held-for-sale	608,624		63,279
Loans transferred as secured borrowings	74,339		35,000
Investment securities	701,818		807,618
Properties, net	2,521,342		1,944,720
Intangible assets	181,865		219,248
Investment in unconsolidated entities	243,450		204,605
Goodwill	140,437		140,437
Derivative assets	38,293		89,361
Accrued interest receivable	35,047		28,224
Other assets	112,265		101,763
VIE assets, at fair value	51,197,981		67,123,261
Total Assets	62,706,268		77,256,266
Liabilities:
Accounts payable, accrued expenses and other liabilities	203,782		198,134
Related-party payable	29,989		37,818
Dividends payable	125,674		125,075
Derivative liabilities	22,890		3,904
Secured financing agreements, net	5,514,695		4,154,126
Unsecured senior notes, net	2,044,523		2,011,544
Secured borrowings on transferred loans, net	74,200		35,000
VIE liabilities, at fair value	50,150,781		66,130,592
Total Liabilities	58,166,534		72,696,193
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,654		2,639
Additional paid-in capital	4,705,044		4,691,180
Treasury stock	(92,104)		(92,104)
Accumulated other comprehensive income (loss)	65,271	$ 55,981	36,138	$ 40,248	$ 32,627	$ 29,729
Retained earnings (accumulated deficit)	(184,073)		(115,579)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,496,792		4,522,274
Non-controlling interests in consolidated subsidiaries	42,942		37,799
Total Equity	4,539,734		4,560,073	$ 4,105,382		$ 4,170,943
Total Liabilities and Equity	62,706,268		77,256,266
Investment and Servicing Segment
Assets:
Goodwill	0
Operating Segments and Corporate
Assets:
Cash and cash equivalents	408,684		614,374
Restricted cash	54,591		35,233
Loans held-for-investment, net	6,382,371		5,847,995
Loans held-for-sale	608,624		63,279
Loans transferred as secured borrowings	74,339		35,000
Investment securities	1,704,611		1,766,642
Properties, net	2,521,342		1,944,720
Intangible assets	208,447		253,486
Investment in unconsolidated entities	264,210		212,227
Goodwill	140,437		140,437
Derivative assets	38,293		89,361
Accrued interest receivable	35,047		28,224
Other assets	115,071		104,408
Total Assets	12,556,067		11,135,386
Liabilities:
Accounts payable, accrued expenses and other liabilities	202,684		197,248
Related-party payable	29,989		37,818
Dividends payable	125,674		125,075
Derivative liabilities	22,890		3,904
Secured financing agreements, net	5,538,395		4,177,826
Unsecured senior notes, net	2,044,523		2,011,544
Secured borrowings on transferred loans, net	74,200		35,000
Total Liabilities	8,038,355		6,588,415
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,654		2,639
Additional paid-in capital	4,705,044		4,691,180
Treasury stock	(92,104)		(92,104)
Accumulated other comprehensive income (loss)	65,271		36,138
Retained earnings (accumulated deficit)	(184,073)		(115,579)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,496,792		4,522,274
Non-controlling interests in consolidated subsidiaries	20,920		24,697
Total Equity	4,517,712		4,546,971
Total Liabilities and Equity	12,556,067		11,135,386
Operating segment | Lending Segment
Assets:
Cash and cash equivalents	43,513		7,085
Restricted cash	22,527		17,885
Loans held-for-investment, net	6,378,468		5,827,553
Loans held-for-sale	418,618
Loans transferred as secured borrowings	74,339		35,000
Investment securities	677,977		776,072
Investment in unconsolidated entities	36,831		30,874
Derivative assets	13,513		45,282
Accrued interest receivable	34,569		25,831
Other assets	10,286		13,470
Total Assets	7,710,641		6,779,052
Liabilities:
Accounts payable, accrued expenses and other liabilities	27,821		20,769
Derivative liabilities	14,105		3,388
Secured financing agreements, net	3,223,863		2,258,462
Secured borrowings on transferred loans, net	74,200		35,000
Total Liabilities	3,339,989		2,317,619
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	1,808,624		2,218,671
Accumulated other comprehensive income (loss)	55,687		44,903
Retained earnings (accumulated deficit)	2,495,536		2,186,727
Total Starwood Property Trust, Inc. Stockholders' Equity	4,359,847		4,450,301
Non-controlling interests in consolidated subsidiaries	10,805		11,132
Total Equity	4,370,652		4,461,433
Total Liabilities and Equity	7,710,641		6,779,052
Operating segment | Investment and Servicing Segment
Assets:
Cash and cash equivalents	58,584		7,701
Restricted cash	11,875		9,146
Loans held-for-investment, net	3,903
Loans held-for-sale	190,006
Investment securities	1,026,634
Properties, net	286,696		1,667,108
Intangible assets	91,591		128,159
Investment in unconsolidated entities	117,772		124,977
Goodwill	140,437
Derivative assets	2,300		42,893
Accrued interest receivable	478
Other assets	61,787		29,569
Total Assets	1,992,063		2,009,553
Liabilities:
Accounts payable, accrued expenses and other liabilities	78,398		81,873
Related-party payable	43
Derivative liabilities	1
Secured financing agreements, net	516,933		1,196,830
Total Liabilities	595,375		1,278,703
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	747,298		696,049
Accumulated other comprehensive income (loss)	(84)		(8,328)
Retained earnings (accumulated deficit)	639,359		43,129
Total Starwood Property Trust, Inc. Stockholders' Equity	1,386,573		730,850
Non-controlling interests in consolidated subsidiaries	10,115
Total Equity	1,396,688		730,850
Total Liabilities and Equity	1,992,063		2,009,553
Operating segment | Property Segment
Assets:
Cash and cash equivalents	8,581		38,798
Restricted cash	20,189		8,202
Loans held-for-investment, net			20,442
Loans held-for-sale			63,279
Investment securities			990,570
Properties, net	2,234,646		277,612
Intangible assets	116,856		125,327
Investment in unconsolidated entities	109,607		56,376
Goodwill			140,437
Derivative assets	22,480		1,186
Accrued interest receivable			2,393
Other assets	40,705		59,503
Total Assets	2,553,064		1,784,125
Liabilities:
Accounts payable, accrued expenses and other liabilities	71,726		68,603
Related-party payable			440
Derivative liabilities	8,784		516
Secured financing agreements, net	1,501,006		426,683
Total Liabilities	1,581,516		496,242
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	981,129		883,761
Accumulated other comprehensive income (loss)	9,668		(437)
Retained earnings (accumulated deficit)	(19,249)		390,994
Total Starwood Property Trust, Inc. Stockholders' Equity	971,548		1,274,318
Non-controlling interests in consolidated subsidiaries			13,565
Total Equity	971,548		1,287,883
Total Liabilities and Equity	2,553,064		1,784,125
Corporate
Assets:
Cash and cash equivalents	298,006		560,790
Other assets	2,293		1,866
Total Assets	300,299		562,656
Liabilities:
Accounts payable, accrued expenses and other liabilities	24,739		26,003
Related-party payable	29,946		37,378
Dividends payable	125,674		125,075
Secured financing agreements, net	296,593		295,851
Unsecured senior notes, net	2,044,523		2,011,544
Total Liabilities	2,521,475		2,495,851
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,654		2,639
Additional paid-in capital	1,167,993		892,699
Treasury stock	(92,104)		(92,104)
Retained earnings (accumulated deficit)	(3,299,719)		(2,736,429)
Total Starwood Property Trust, Inc. Stockholders' Equity	(2,221,176)		(1,933,195)
Total Equity	(2,221,176)		(1,933,195)
Total Liabilities and Equity	300,299		562,656
Investment and Servicing VIEs
Assets:
Cash and cash equivalents	5,161		1,148
Investment securities	(1,002,793)		(959,024)
Intangible assets	(26,582)		(34,238)
Investment in unconsolidated entities	(20,760)		(7,622)
Other assets	(2,806)		(2,645)
VIE assets, at fair value	51,197,981		67,123,261
Total Assets	50,150,201		66,120,880
Liabilities:
Accounts payable, accrued expenses and other liabilities	1,098		886
Secured financing agreements, net	(23,700)		(23,700)
VIE liabilities, at fair value	50,150,781		66,130,592
Total Liabilities	50,128,179		66,107,778
Starwood Property Trust, Inc. Stockholders' Equity:
Non-controlling interests in consolidated subsidiaries	22,022		13,102
Total Equity	22,022		13,102
Total Liabilities and Equity	$ 50,150,201		$ 66,120,880

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Nov. 08, 2017	Aug. 09, 2017	May 09, 2017	Feb. 23, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsequent Events
Dividend declared (in dollars per share)		$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 1.44	$ 1.44
Subsequent Events
Subsequent Events
Dividend declared (in dollars per share)	$ 0.48