Starwood Property Trust (STWD) 10-Q 4 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
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	Mar. 31, 2018
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		261,986,337
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 286,155	$ 369,448
Restricted cash	93,266	48,825
Loans held-for-investment, net	6,182,786	6,562,495
Loans held-for-sale, at fair value	723,733	745,743
Loans transferred as secured borrowings	74,463	74,403
Investment securities ($278,144 and $284,735 held at fair value)	514,463	718,203
Properties, net	2,988,864	2,647,481
Intangible assets ($24,945 and $30,759 held at fair value)	179,629	183,092
Investment in unconsolidated entities	160,112	185,503
Goodwill	140,437	140,437
Derivative assets	41,067	33,898
Accrued interest receivable	41,253	47,747
Other assets	467,320	138,140
Variable interest entity ("VIE") assets, at fair value	49,233,307	51,045,874
Total Assets	61,126,855	62,941,289
Liabilities:
Accounts payable, accrued expenses and other liabilities	157,563	185,117
Related-party payable	31,781	42,369
Dividends payable	126,244	125,916
Derivative liabilities	57,600	36,200
Secured financing agreements, net	5,554,314	5,773,056
Unsecured senior notes, net	2,252,631	2,125,235
Secured borrowings on transferred loans, net	74,275	74,185
VIE liabilities, at fair value	48,167,760	50,000,010
Total Liabilities	56,422,168	58,362,088
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, 267,135,302 issued and 261,955,162 outstanding as of March 31, 2018 and 265,983,309 issued and 261,376,424 outstanding as of December 31, 2017	2,671	2,660
Additional paid-in capital	4,728,183	4,715,246
Treasury stock (5,180,140 shares and 4,606,885 shares)	(104,194)	(92,104)
Accumulated other comprehensive income	75,310	69,924
Accumulated deficit	(243,438)	(217,312)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,458,532	4,478,414
Non-controlling interests in consolidated subsidiaries	246,155	100,787
Total Equity	4,704,687	4,579,201
Total Liabilities and Equity	$ 61,126,855	$ 62,941,289

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Investment securities held at fair value	$ 278,144	$ 284,735
Intangible assets held at fair value	$ 24,945	$ 30,759
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	267,135,302	265,983,309
Common stock, shares outstanding	261,955,162	261,376,424
Treasury stock, shares	5,180,140	4,606,885

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Interest income from loans		$ 137,620	$ 111,883
Interest income from investment securities		15,269	15,224
Servicing fees		26,067	14,102
Rental income		81,110	57,042
Other revenues		521	469
Total revenues		260,587	198,720
Costs and expenses:
Management fees		30,642	24,384
Interest expense		87,183	65,860
General and administrative		32,142	30,429
Acquisition and investment pursuit costs		377	671
Costs of rental operations		29,693	20,878
Depreciation and amortization		31,744	22,228
Loan loss allowance, net		1,538	(305)
Other expense		104	758
Total costs and expenses		213,423	164,903
Income before other income (loss), income taxes and non-controlling interests		47,164	33,817
Other income (loss):
Change in net assets related to consolidated VIEs		52,653	69,170
Change in fair value of servicing rights		(5,814)	(8,433)
Change in fair value of investment securities, net		(149)	(1,171)
Change in fair value of mortgage loans held-for-sale, net		7,800	10,593
(Loss) earnings from unconsolidated entities		(1,462)	2,987
Gain (loss) on sale of investments and other assets, net		10,660	(56)
Loss on derivative financial instruments, net		(16,859)	(4,349)
Foreign currency gain, net		13,549	4,864
Loss on extinguishment of debt			(5,916)
Other income, net		108	365
Total other income		60,486	68,054
Income before income taxes		107,650	101,871
Income tax (provision) benefit		(2,856)	983
Net income		104,794	102,854
Net income attributable to non-controlling interests		(4,862)	(496)
Net income attributable to Starwood Property Trust, Inc.		$ 99,932	$ 102,358
Earnings per share data attributable to Starwood Property Trust, Inc.:
Basic (in dollars per share)		$ 0.38	$ 0.39
Diluted (in dollars per share)		0.38	0.39
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 104,794	$ 102,854
Other comprehensive income (net change by component):
Cash flow hedges	5	76
Available-for-sale securities	1,163	1,846
Foreign currency translation	4,218	2,007
Other comprehensive income	5,386	3,929
Comprehensive income	110,180	106,783
Less: Comprehensive income attributable to non-controlling interests	(4,862)	(496)
Comprehensive income attributable to Starwood Property Trust, Inc.	$ 105,318	$ 106,287

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	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interests	2023 Notes	2018 Notes	Total
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
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan			183				183							183
Proceeds from DRIP Plan (in shares)				8,129
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			3,159	$ 5			3,154							$ 3,159
Share-based compensation (in shares)				514,379
Manager incentive fee paid in stock			9,547	$ 4			9,543							9,547
Manager incentive fee paid in stock (in shares)				418,016
Net income			102,358						102,358		496			102,854
Dividends declared			(125,479)						(125,479)					(125,479)
Other comprehensive income, net			3,929							3,929				3,929
VIE non-controlling interests											5,177			5,177
Distribution to non-controlling interests											(1,726)			(1,726)
Balance at Mar. 31, 2017			4,501,609	$ 2,648			4,689,698	$ (92,104)	(138,700)	40,067	41,746			4,543,355
Balance (in shares) at Mar. 31, 2017				264,834,330				4,606,885
Balance at Dec. 31, 2017			4,478,414	$ 2,660			4,715,246	$ (92,104)	(217,312)	69,924	100,787			$ 4,579,201
Balance (in shares) at Dec. 31, 2017				265,983,309				4,606,885						265,983,309
Increase (Decrease) in Stockholders' Equity
Proceeds from DRIP Plan			159				159							$ 159
Proceeds from DRIP Plan (in shares)				7,651
Common stock repurchased			(12,090)					$ (12,090)						$ (12,090)
Common stock repurchased (in shares)								573,255						573,255
Share-based compensation			4,768	$ 6			4,762							$ 4,768
Share-based compensation (in shares)				598,701
Manager incentive fee paid in stock			10,983	$ 5			10,978							10,983
Manager incentive fee paid in stock (in shares)				545,641
Net income			99,932						99,932		4,862			104,794
Dividends declared			(126,058)						(126,058)					(126,058)
Other comprehensive income, net			5,386							5,386				5,386
VIE non-controlling interests											569			569
Contributions from non-controlling interests											366,691			366,691
Distribution to non-controlling interests			(2,962)				(2,962)				(226,435)			(229,397)
Sale of controlling interest in majority owned property asset											(319)			(319)
Balance at Mar. 31, 2018			$ 4,458,532	$ 2,671			$ 4,728,183	$ (104,194)	$ (243,438)	$ 75,310	$ 246,155			$ 4,704,687
Balance (in shares) at Mar. 31, 2018				267,135,302				5,180,140						267,135,302

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Equity
Dividends declared per common share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 104,794	$ 102,854
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of deferred financing costs, premiums and discounts on secured financing agreements and secured borrowings on transferred loans	5,167	4,686
Amortization of discounts and deferred financing costs on senior notes	3,869	6,093
Accretion of net discount on investment securities	(6,841)	(4,257)
Accretion of net deferred loan fees and discounts	(12,052)	(7,519)
Share-based compensation	4,768	3,159
Share-based component of incentive fees	10,983	9,547
Change in fair value of investment securities	149	1,171
Change in fair value of consolidated VIEs	(11,241)	(20,677)
Change in fair value of servicing rights	5,814	8,433
Change in fair value of loans held-for-sale	(7,800)	(10,593)
Change in fair value of derivatives	18,069	2,900
Foreign currency gain, net	(13,540)	(4,829)
(Gain) loss on sale of investments and other assets	(10,660)	56
Impairment charges	25	758
Loan loss allowance, net	1,538	(305)
Depreciation and amortization	31,412	21,297
Loss (earnings) from unconsolidated entities	1,462	(2,987)
Distributions of earnings from unconsolidated entities	2,675	2,643
Loss on extinguishment of debt		5,916
Origination and purchase of loans held-for-sale, net of principal collections	(245,027)	(445,690)
Proceeds from sale of loans held-for-sale	266,632	179,296
Changes in operating assets and liabilities:
Related-party payable, net	(10,588)	(11,821)
Accrued and capitalized interest receivable, less purchased interest	(9,412)	(19,611)
Other assets	(6,188)	(1,855)
Accounts payable, accrued expenses and other liabilities	(31,612)	(14,686)
Net cash provided by (used in) operating activities	92,396	(196,021)
Cash Flows from Investing Activities:
Origination and purchase of loans held-for-investment	(900,937)	(621,135)
Proceeds from principal collections on loans	870,400	226,039
Proceeds from loans sold	145,273	37,079
Proceeds from sales of investment securities		10,434
Proceeds from principal collections on investment securities	219,230	76,050
Proceeds from sale of properties	51,093
Purchases and additions to properties and other assets	(7,056)	(2,435)
Distribution of capital from unconsolidated entities	21,255	3,127
Payments for purchase or termination of derivatives	(15,604)	(32,700)
Proceeds from termination of derivatives	11,773	17,331
Return of investment basis in purchased derivative asset		62
Net cash provided by (used in) investing activities	395,427	(286,148)
Cash Flows from Financing Activities:
Proceeds from borrowings	1,515,241	1,205,691
Principal repayments on and repurchases of borrowings	(1,629,449)	(957,529)
Payment of deferred financing costs	(10,506)	(5,967)
Proceeds from common stock issuances	159	183
Payment of equity offering costs		(647)
Payment of dividends	(125,730)	(124,506)
Contributions from non-controlling interests	310
Distributions to non-controlling interests	(229,397)	(1,726)
Purchase of treasury stock	(12,090)
Issuance of debt of consolidated VIEs	7,948	4,759
Repayment of debt of consolidated VIEs	(57,289)	(57,445)
Distributions of cash from consolidated VIEs	13,730	30,956
Net cash (used in) provided by financing activities	(527,073)	93,769
Net decrease in cash, cash equivalents and restricted cash	(39,250)	(388,400)
Cash, cash equivalents and restricted cash, beginning of period	418,273	650,755
Effect of exchange rate changes on cash	398	179
Cash, cash equivalents and restricted cash, end of period	379,421	262,534
Supplemental disclosure of cash flow information:
Cash paid for interest	75,696	51,023
Income taxes paid	880	268
Supplemental disclosure of non-cash investing and financing activities:
Dividends declared, but not yet paid	126,058	125,479
Consolidation of VIEs (VIE asset/liability additions)	1,089,881	1,127,952
Deconsolidation of VIEs (VIE asset/liability reductions)	875,240	$ 1,528,137
Net assets acquired from consolidated VIEs	27,737
Contributions of Woodstar II Portfolio net assets from non-controlling interests	366,381
Loan principal collections temporarily held at master servicer	$ 326,362

Business and Organization

Business and Organization	3 Months Ended
	Mar. 31, 2018
Business and Organization
Business and Organization	Starwood Property Trust, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements As of March 31, 2018 (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 March 31, 2018: · 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 multifamily 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	3 Months Ended
	Mar. 31, 2018
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, 2017 (the “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three months ended March 31, 2018 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, (iii) became significant since December 31, 2017 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). 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 3% of our consolidated securitization VIE assets, with the remaining 97% 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 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 which, effective January 1, 2018, are now required to be carried at fair value through earnings. 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. 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. Refer to Note 19 for further discussion regarding our fair value measurements. 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. Cost Method Equity Investments On January 1, 2018, ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , became effective prospectively for public companies with a calendar fiscal year. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures, and limited liability companies, at fair value with changes in fair value recognized within net income. This ASU does not apply to equity method investments, investments in Federal Home Loan Bank (“FHLB”) stock, investments that result in consolidation of the investee or investments in certain investment companies. For investments in equity securities without a readily determinable fair value, an entity is permitted to elect a practicability exception, under which the investment will be measured at cost, less impairment, plus or minus observable price changes from orderly transactions of an identical or similar investment of the same issuer. Additionally, this ASU eliminated the requirement to assess whether an impairment of an equity investment is other than temporary. The impairment model for equity investments subject to this election is now a single-step model whereby an entity performs a qualitative assessment to identify impairment. If the qualitative assessment indicates that an impairment exists, the entity would estimate the fair value of the investment and recognize in net income an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. Our equity investments within the scope of this ASU are limited to our cost method equity investments discussed in Note 7, with the exception of our FHLB stock which is outside the scope of this ASU, and to our marketable equity security discussed in Note 5 for which we had previously elected the fair value option. Our cost method equity investments within the scope of this ASU do not have readily determinable fair values. Therefore, we have elected the practicability exception whereby we measure these investments at cost, less impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. Refer to Note 7 for further discussion. Revenue Recognition On January 1, 2018, new accounting rules regarding revenue recognition became effective for public companies with a calendar fiscal year. None of our significant revenue sources – interest income from loans and investment securities, loan servicing fees, and rental income – are within the scope of the new revenue recognition guidance. The revenue recognition guidance also included revisions to existing accounting rules regarding the determination of whether a company is acting as a principal or agent in an arrangement and accounting for sales of nonfinancial assets where the seller has continuing involvement. These additional revisions also did not materially impact the Company. 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, (iii) the “in-the-money” conversion options associated with our outstanding convertible senior notes (see Notes 10 and 17), and (iv) non-controlling interests that are redeemable with our common stock (see Note 16). 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. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 16). 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 months ended March 31, 2018 and 2017, the two-class method resulted in the most dilutive EPS calculation. 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. Recent Accounting Developments 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 this ASU. This 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 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. This 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 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. This 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. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and is applied prospectively. 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. This 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 Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2018
Acquisitions and Divestitures
Acquisitions and Divestitures	3. Acquisitions Woodstar II Portfolio Acquisition During the three months ended March 31, 2018, we acquired 18 of the 27 affordable housing communities comprising our “Woodstar II Portfolio.” The Woodstar II Portfolio is comprised of 6,109 units concentrated primarily in Central and South Florida and is 99% occupied. The 18 affordable housing communities acquired during the three months ended March 31, 2018 comprise 4,057 units and were acquired for $404.7 million, including contingent consideration of $26.7 million (the “Q1 2018 Closing”). The properties acquired in the Q1 2018 Closing were recognized initially at their purchase price of $378.0 million plus capitalized acquisition costs of $3.6 million. Contingent consideration of $26.7 million will be recognized when the contingency is resolved. Government sponsored mortgage debt of $7.3 million with weighted average fixed annual interest rates of 2.88% and remaining weighted average terms of 17.7 years was assumed at closing. We financed the Q1 2018 Closing utilizing new 10-year mortgage debt totaling $300.9 million with weighted average fixed annual interest rates of 3.82% (as set forth in Note 9). In December 2017, we acquired eight of the affordable housing communities (the “Q4 2017 Closing”), which include 1,740 units, for $156.2 million, including contingent consideration of $10.8 million. We financed the Q4 2017 Closing utilizing 10-year mortgage debt totaling $116.7 million with a fixed 3.81% interest rate. We effectuated the Woodstar II Portfolio acquisitions via a contribution of the properties by third parties (the “Contributors”) to SPT Dolphin Intermediate LLC (“SPT Dolphin”), a newly-formed, wholly-owned subsidiary of the Company. In exchange for the contribution, the Contributors received cash, Class A units of SPT Dolphin (the “Class A Units”) and rights to receive additional Class A Units if certain contingent events occur. The Class A unitholders have the right, commencing six months from issuance, to redeem their Class A Units for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. The Q1 2018 Closing resulted in the Contributors receiving cash of $223.3 million, 6,979,089 Class A Units and rights to receive an additional 1,301,414 Class A Units if certain contingent events occur. In aggregate, the Q1 2018 Closing and Q4 2017 Closing have resulted in the Contributors receiving cash of $308.1 million, 9,758,863 Class A Units and rights to receive an additional 1,800,335 Class A Units if certain contingent events occur. Since substantially all of the fair value of the properties acquired was concentrated in a group of similar identifiable assets, the Woodstar II Portfolio acquisitions were accounted for in accordance with the asset acquisition provisions of ASC 805, Business Combinations . Master Lease Portfolio During the three months ended March 31, 2018, we sold two retail properties within the Master Lease Portfolio for $37.2 million, recognizing a gain on sale of $3.9 million, within gain on sale of investments and other assets in our condensed consolidated statement of operations. Refer to Note 6 for further discussion of the Master Lease Portfolio. Investing and Servicing Segment Property Portfolio During the three months ended March 31, 2018, our Investing and Servicing Segment acquired the $27.7 million net assets of two commercial real estate properties from consolidated CMBS trusts for a total gross purchase price of $28.0 million. These properties, aggregated with the controlling interests in 23 remaining commercial real estate properties acquired from CMBS trusts during the years ended December 31, 2015, 2016 and 2017 for an aggregate acquisition price of $291.7 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. During the three months ended March 31, 2018, we sold three properties within the Investing and Servicing Segment for $15.1 million, recognizing a total gain on sale of $6.4 million, within gain on sale of investments and other assets in our condensed consolidated statement of operations. One of these properties was acquired by a third party which already held a $0.3 million non-controlling interest in the property. During the three months ended March 31, 2018, $1.3 million of the gain on sale was attributable to non-controlling interests. No Investing and Servicing Segment properties were sold during the three months ended March 31, 2017.

Loans

Loans	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) March 31, 2018 Value Amount Coupon (years)(1) First mortgages (2) $ 5,438,170 $ 5,459,593 6.4 % 2.2 Subordinated mortgages (3) 177,360 177,402 11.1 % 1.8 Mezzanine loans (2) 547,048 546,762 11.1 % 1.1 Other 26,076 29,660 8.6 % 3.6 Total loans held-for-investment 6,188,654 6,213,417 Loans held-for-sale, fair value option, residential 662,971 642,752 6.2 % 6.6 Loans held-for-sale, fair value option, commercial 60,762 60,850 5.0 % 10.0 Loans transferred as secured borrowings 74,463 75,000 6.5 % 2.0 Total gross loans 6,986,850 6,992,019 Loan loss allowance (loans held-for-investment) (5,868) — Total net loans $ 6,980,982 $ 6,992,019 December 31, 2017 First mortgages (2) $ 5,818,804 $ 5,843,623 6.2 % 2.0 Subordinated mortgages (3) 177,115 177,386 10.8 % 1.9 Mezzanine loans (2) 545,299 545,355 11.0 % 1.1 Other 25,607 29,320 8.5 % 3.9 Total loans held-for-investment 6,566,825 6,595,684 Loans held-for-sale, fair value option, residential 613,287 594,105 6.2 % 5.4 Loans held-for-sale, fair value option, commercial 132,456 132,393 4.6 % 10.0 Loans transferred as secured borrowings 74,403 75,000 6.2 % 2.3 Total gross loans 7,386,971 7,397,182 Loan loss allowance (loans held-for-investment) (4,330) — Total net loans $ 7,382,641 $ 7,397,182 (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 $689.0 million and $851.1 million being classified as first mortgages as of March 31, 2018 and December 31, 2017, 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 March 31, 2018, approximately $5.7 billion, or 92.8%, of our loans held-for-investment were variable rate and paid interest principally at LIBOR plus a weighted-average spread of 4.9%. 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, 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 March 31, 2018, 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 Other For-Sale Borrowings Total Loans 1 $ 1,789 $ — $ — $ 20,068 $ — $ — $ 21,857 0.3 % 2 2,221,941 32,049 209,751 — — 74,463 2,538,204 36.3 % 3 2,980,626 133,334 337,297 6,008 — — 3,457,265 49.5 % 4 183,452 — — — — — 183,452 2.6 % 5 50,362 11,977 — — — — 62,339 0.9 % N/A — — — — 723,733 — 723,733 10.4 % $ 5,438,170 $ 177,360 $ 547,048 $ 26,076 $ 723,733 $ 74,463 $ 6,986,850 100.0 % As of December 31, 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 Transferred % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans Other For-Sale Borrowings Total Loans 1 $ 2,003 $ — $ — $ 20,267 $ — $ — $ 22,270 0.3 % 2 2,462,268 11,927 137,803 — — — 2,611,998 35.4 % 3 3,183,592 165,188 407,496 5,340 — 74,403 3,836,019 51.9 % 4 120,479 — — — — — 120,479 1.6 % 5 50,462 — — — — — 50,462 0.7 % N/A — — — — 745,743 — 745,743 10.1 % $ 5,818,804 $ 177,115 $ 545,299 $ 25,607 $ 745,743 $ 74,403 $ 7,386,971 100.0 % After completing our impairment evaluation process as of March 31, 2018, 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. 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 Three Months Ended March 31, 2018 2017 Allowance for loan losses at January 1 $ 4,330 $ 9,788 Provision for loan losses 1,538 (305) Charge-offs — — Recoveries — — Allowance for loan losses at March 31 $ 5,868 $ 9,483 Recorded investment in loans related to the allowance for loan loss $ 245,791 $ 499,539 The activity in our loan portfolio was as follows (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Balance at January 1 $ 7,382,641 $ 5,946,274 Acquisitions/originations/additional funding 1,178,560 1,067,021 Capitalized interest (1) 16,253 15,079 Basis of loans sold (2) (411,625) (216,431) Loan maturities/principal repayments (1,225,815) (230,931) Discount accretion/premium amortization 12,052 7,519 Changes in fair value 7,800 10,593 Unrealized foreign currency translation gain 22,552 6,053 Change in loan loss allowance, net (1,538) 305 Transfer to/from other asset classifications 102 603 Balance at March 31 $ 6,980,982 $ 6,606,085 (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.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2018
Investment Securities
Investment Securities	5. Investment Securities Investment securities were comprised of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands): Carrying Value as of March 31, 2018 December 31, 2017 RMBS, available-for-sale $ 240,853 $ 247,021 CMBS, fair value option (1) 1,045,217 1,024,143 Held-to-maturity (“HTM”) securities 236,319 433,468 Equity security, fair value 13,322 13,523 Subtotal — Investment securities 1,535,711 1,718,155 VIE eliminations (1) (1,021,248) (999,952) Total investment securities $ 514,463 $ 718,203 (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 March 31, 2018 Purchases (1) $ — $ — $ — $ — $ — Sales (2) — — — — — Principal collections 10,150 777 208,303 — Three Months Ended March 31, 2017 Purchases (1) $ — $ — $ — $ — $ — Sales (2) — 10,434 — — 10,434 Principal collections 10,228 5,766 60,056 — 76,050 (1) During the three months ended March 31, 2018 and 2017, we purchased $30.2 million and $57.4 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $30.2 million and $57.4 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 March 31, 2018 and 2017, we sold $7.9 million and $15.2 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $7.9 million and $4.8 million, respectively, of this amount is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows. RMBS, Available-for-Sale The Company classified all of its RMBS as available-for-sale as of March 31, 2018 and December 31, 2017. 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 March 31, 2018 and December 31, 2017 (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 March 31, 2018 RMBS $ 191,698 $ (9,897) $ 181,801 $ — $ 59,052 $ — $ 59,052 $ 240,853 December 31, 2017 RMBS $ $ (9,897) $ 189,132 $ (94) $ 58,011 $ (28) $ 57,889 $ 247,021 Weighted Average Coupon (1) Weighted Average WAL March 31, 2018 RMBS 3.0 % CCC- 6.3 December 31, 2017 RMBS 2.8 % B 6.4 (1) Calculated using the March 31, 2018 and December 31, 2017 one-month LIBOR rate of 1.883% and 1.564%, 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 March 31, 2018, approximately $202.2 million, or 84.0%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.22%. As of December 31, 2017, approximately $207.0 million, or 83.8%, 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, a portion of which 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 this accretable discount. The following table contains a reconciliation of aggregate principal balance to amortized cost for our RMBS as of March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Principal balance $ 355,083 $ 366,711 Accretable yield (51,794) (55,712) Non-accretable difference (121,488) (121,867) Total discount (173,282) (177,579) Amortized cost $ 181,801 $ 189,132 The principal balance of credit deteriorated RMBS was $334.8 million and $345.5 million as of March 31, 2018 and December 31, 2017, respectively. Accretable yield related to these securities totaled $45.6 million and $49.2 million as of March 31, 2018 and December 31, 2017, respectively. The following table discloses the changes to accretable yield and non-accretable difference for our RMBS during the three months ended March 31, 2018 (amounts in thousands): Non-Accretable Three Months Ended March 31, 2018 Accretable Yield Difference Balance as of January 1, 2018 $ 55,712 $ 121,867 Accretion of discount (2,819) — Principal write-downs, net — (1,478) Purchases — — Sales — — OTTI — — Transfer to/from non-accretable difference (1,099) 1,099 Balance as of March 31, 2018 $ 51,794 $ 121,488 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 both the three months ended March 31, 2018 and 2017, 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 RMBS $ — $ — $ — $ — As of December 31, 2017 RMBS $ 10,321 $ 643 $ (99) $ (23) As of March 31, 2018, there were no securities with unrealized losses. As of December 31, 2017, 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 March 31, 2018, 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 $24.0 million at March 31, 2018) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option CMBS. As of March 31, 2018, 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 March 31, 2018 and December 31, 2017 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value March 31, 2018 CMBS $ 215,847 $ 3,927 $ (6,657) $ 213,117 Preferred interests 20,472 637 — 21,109 Total $ 236,319 $ 4,564 $ (6,657) $ 234,226 December 31, 2017 CMBS $ $ 2,002 $ (7,779) $ 407,333 Preferred interests 20,358 647 — 21,005 Total $ 433,468 $ 2,649 $ (7,779) $ 428,338 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 March 31, 2018 (amounts in thousands): Preferred CMBS Interests Total Less than one year $ 119,073 $ — $ 119,073 One to three years 66,211 — 66,211 Three to five years 30,563 20,472 51,035 Thereafter — — — Total $ 215,847 $ 20,472 $ 236,319 Equity Security, Fair Value 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. The fair value of the investment remeasured in USD was $13.3 million and $13.5 million as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, our shares represent an approximate 2% interest in SEREF.

Properties

Properties	3 Months Ended
	Mar. 31, 2018
Properties
Properties	6. Propertie Our properties are held within the following portfolios: Ireland Portfolio The Ireland Portfolio is comprised of 11 net leased fully occupied office properties and one multifamily 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, includes total assets of $514.3 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. Woodstar I Portfolio The Woodstar I 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 I 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. Woodstar II Portfolio The Woodstar II Portfolio is comprised of 27 affordable housing communities with 6,109 units concentrated primarily in Central and South Florida and is 99% occupied. Refer to Note 3 for further discussion of the Woodstar II Portfolio. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired for a purchase price of $758.7 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. Master Lease Portfolio In September 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. Investing and Servicing Segment Property Portfolio The REIS Equity Portfolio is comprised of 25 commercial real estate properties. Refer to Note 3 for further discussion of the REIS Equity Portfolio. The table below summarizes our properties held as of March, 31, 2018 and December 31, 2017 (dollars in thousands): Depreciable Life March 31, 2018 December 31, 2017 Property Segment Land and land improvements 0 – 15 years $ 675,856 $ 585,915 Buildings and building improvements 5 – 45 years 2,092,139 1,838,266 Furniture & fixtures 3 – 7 years 40,888 31,028 Investing and Servicing Segment Land and land improvements 0 – 15 years 87,536 86,711 Buildings and building improvements 3 – 40 years 219,552 212,094 Furniture & fixtures 2 – 5 years 1,399 1,036 Properties, cost 3,117,370 2,755,050 Less: accumulated depreciation (128,506) (107,569) Properties, net $ 2,988,864 $ 2,647,481 During the three months ended March 31, 2018, we sold five operating properties for $52.3 million, recognizing a gain on sale of $10.3 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. One of these properties was acquired by a third party which already held a $0.3 million non-controlling interest in the property. During the three months ended March 31, 2018, $1.3 million of the gain on sale was attributable to non-controlling interests. No operating properties were sold during the three months ended March 31, 2017.

Investment in Unconsolidated En

Investment in Unconsolidated Entities	3 Months Ended
	Mar. 31, 2018
Investment in Unconsolidated Entities
Investment in Unconsolidated Entities	7. Investment in Unconsolidated Entities The table below summarizes our investments in unconsolidated entities as of March 31, 2018 and December 31, 2017 (dollars in thousands): Participation / Carrying value as of Ownership % (1) March 31, 2018 December 31, 2017 Equity method: Retail Fund 33% $ 107,189 $ 110,704 Investor entity which owns equity in an online real estate company 50% 9,338 9,312 Equity interests in commercial real estate 50% 7,051 (2) 23,192 Equity interest in a residential mortgage originator N/A 7,358 7,742 Various 25% - 50% 4,416 3,538 135,352 154,488 Cost method: Equity interest in a servicing and advisory business 6% 6,207 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% 9,328 9,556 24,760 31,015 $ 160,112 $ 185,503 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) During the three months ended March 31, 2018, our preferred equity investment in a portfolio of student housing properties was redeemed in full for cash proceeds of $16.7 million. As of March 31, 2018, the carrying value of our equity investment in a residential mortgage originator exceeded the underlying equity in net assets of such investee by $1.6 million. This difference is the result of the Company recording its investment in the investee at its acquisition date fair value, which included certain non-amortizing intangible assets not recognized by the investee. Should the Company determine these intangible assets held by the investee are impaired, the Company will recognize such impairment loss through earning from unconsolidated entities in our statement of operations, otherwise, such difference between the carrying value of our equity investment in the residential mortgage originator and the underlying equity in the net assets of the residential mortgage originator will continue to exist. Other than our equity interest in the residential mortgage originator, 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 March 31, 2018. During the three months ended March 31, 2018, we did not become aware of any observable price changes in our cost method investments that are within the scope of ASU 2016-01 or any indicators of impairment.

Goodwill and Intangibles

Goodwill and Intangibles	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangibles
Goodwill and Intangibles	8. Goodwil Goodwill Goodwill at March 31, 2018 and December 31, 2017 represents 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 a 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 servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. At March 31, 2018 and December 31, 2017 the balance of the domestic servicing intangible was net of $24.9 million and $28.2 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 March 31, 2018 and December 31, 2017, the domestic servicing intangible had a balance of $49.8 million and $59.0 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 March 31, 2018 and December 31, 2017 (amounts in thousands): As of March 31, 2018 As of December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 24,945 $ — $ 24,945 $ 30,759 $ — $ 30,759 In-place lease intangible assets 200,444 (75,070) 125,374 187,816 (65,351) 122,465 Favorable lease intangible assets 37,552 (8,242) 29,310 37,231 (7,363) 29,868 Total net intangible assets $ 262,941 $ (83,312) $ 179,629 $ 255,806 $ (72,714) $ 183,092 The following table summarizes the activity within intangible assets for the three months ended March 31, 2018 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2018 $ 30,759 $ 122,465 $ 29,868 $ 183,092 Acquisition of additional Woodstar II Portfolio properties — 10,015 — 10,015 Acquisition of additional REIS Equity Portfolio properties — 2,248 450 2,698 Amortization — (9,959) (1,117) (11,076) Sales — (246) (126) (372) Foreign exchange gain — 876 235 1,111 Impairment (1) — (25) — (25) Changes in fair value due to changes in inputs and assumptions (5,814) — — (5,814) Balance as of March 31, 2018 $ 24,945 $ 125,374 $ 29,310 $ 179,629 (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): 2018 (remainder of) $ 31,982 2019 22,532 2020 17,088 2021 14,780 2022 12,100 Thereafter 56,202 Total $ 154,684

Secured Financing Agreements

Secured Financing Agreements	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum March 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2018 2017 Lender 1 Repo 1 (b) (b) LIBOR + 1.75% to 5.75% $ 1,495,507 $ 2,000,000 $ 1,024,845 $ 1,137,654 Lender 2 Repo 1 Oct 2018 Oct 2020 LIBOR + 1.75% to 2.75% 238,904 500,000 172,632 238,428 Lender 3 Repo 1 N/A N/A N/A — — — 75,291 Lender 4 Repo 2 Dec 2018 Dec 2020 LIBOR + 2.00% to 3.25% 642,531 1,000,000 (c) 215,240 215,372 Lender 6 Repo 1 Aug 2020 N/A LIBOR + 2.00% to 2.75% 622,440 600,000 423,007 494,353 Lender 6 Repo 2 Oct 2022 Oct 2023 GBP LIBOR + 2.75% 466,322 359,780 359,780 332,815 Lender 9 Repo 1 Sep 2018 N/A LIBOR + 1.65% 20,583 15,396 15,396 65,762 Lender 10 Repo 1 Mar 2020 Mar 2022 LIBOR + 2.00% to 2.75% 170,036 140,000 118,800 77,800 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 Feb 2021 Feb 2023 LIBOR + 2.25% (d) — 650,000 (e) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% 12,379 75,000 8,066 15,617 Conduit Repo 2 Nov 2018 Nov 2019 LIBOR + 2.25% 15,909 200,000 12,000 40,075 Conduit Repo 3 Feb 2020 Feb 2021 LIBOR + 2.10% 26,294 150,000 19,725 26,895 Conduit Repo 4 Oct 2018 Oct 2020 LIBOR + 2.25% — 100,000 — — MBS Repo 1 (f) (f) LIBOR + 1.90% 10,000 6,510 6,510 6,510 MBS Repo 2 Dec 2019 N/A LIBOR + 1.90% to 2.45% 107,507 73,971 73,971 222,672 MBS Repo 3 (g) (g) LIBOR + 1.32% to 1.95% 342,771 234,082 234,082 224,150 MBS Repo 4 (h) N/A LIBOR + 1.90% 170,690 225,000 7,318 77,318 Investing and Servicing Segment Property Mortgages Jun 2018 to N/A Various 260,461 231,219 203,082 177,411 Ireland Portfolio Mortgage May 2020 N/A EURIBOR + 1.69% 506,213 359,344 359,344 349,900 Woodstar I Portfolio Mortgages Nov 2025 to N/A 3.72% to 3.97% 366,522 276,748 276,748 276,748 Woodstar I Portfolio Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 304,865 132,866 132,866 133,418 Woodstar II Portfolio Mortgages Jan 2028 to Apr 2028 N/A 3.81% to 3.85% 522,601 417,669 417,669 116,745 Woodstar II Portfolio Government Financing Jun 2030 to Apr 2046 N/A 1.00% to 3.00% 136,554 7,361 7,361 — Medical Office Portfolio Mortgages Dec 2021 to Feb 2022 Dec 2023 to Feb 2024 LIBOR + 2.50% (i) 716,188 531,815 497,613 497,613 Master Lease Portfolio Mortgages Oct 2027 N/A 4.36% to 4.38% 465,600 265,900 265,900 265,900 Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (d) 959,442 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (d) — 100,000 — — FHLB Feb 2021 N/A Various 662,971 445,000 445,000 445,000 $ 9,243,290 $ 9,847,661 5,596,955 5,813,447 Unamortized premium/(discount) net 2,539 2,559 Unamortized deferred financing costs (45,180) (42,950) $ 5,554,314 $ 5,773,056 (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 $300.0 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 March 31, 2018. (g) Facility carries a rolling 12-month term which may reset monthly with the lender’s consent. Current maturity is March 2019. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of March 31, 2018. (h) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of September 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 three months ended March 31, 2018, we entered into two mortgage loans with aggregate maximum borrowings of $34.8 million to finance commercial real estate previously acquired by our Investing and Servicing Segment. As of March 31, 2018, these facilities carry a remaining weighted average term of 4.2 years with floating annual interest rates of LIBOR + 2.62%. In February 2018, we amended the Lender 7 Secured Financing facility to extend the current maturity from July 2018 to February 2021, reduce the spread from LIBOR + 2.75% to LIBOR + 2.25% and decrease available borrowings from $450.0 million to $300.0 million while maintaining the option to upsize to $650.0 million, subject to certain conditions. In February 2018, we amended the Conduit Repo 3 facility to extend the current maturity from February 2018 to February 2020. In February 2018, we entered into mortgage loans with total borrowings of $300.9 million to finance the Q1 2018 Closing of our Woodstar II Portfolio. The loans carry 10-year terms and weighted average fixed annual interest rates of 3.82%. Additional government sponsored mortgage loans of $7.3 million with weighted average fixed annual interest rates of 2.88% and remaining weighted average terms of 17.7 years were assumed at closing. Our secured financing agreements contain certain financial tests and covenants. As of March 31, 2018, 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 2018 (remainder of) $ 300,195 $ 51,977 $ 352,172 2019 292,055 98,062 390,117 2020 944,805 373,218 1,318,023 2021 191,260 682,640 873,900 2022 689,231 26,548 715,779 Thereafter 265,760 1,681,204 1,946,964 Total $ 2,683,306 $ 2,913,649 $ 5,596,955 For the three months ended March 31, 2018 and 2017, approximately $5.1 million and $4.7 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 March 31, 2018 and December 31, 2017 (amounts in thousands): Class of Collateral March 31, 2018 December 31, 2017 Loans held-for-investment $ 2,324,300 $ 2,637,475 Loans held-for-sale 37,125 66,970 Investment securities 321,881 530,650 $ 2,683,306 $ 3,235,095 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 33% 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 27% 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	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization March 31, 2018 December 31, 2017 2018 Convertible Notes N/A N/A N/A N/A — 369,981 2019 Convertible Notes 4.00 % 5.35 % 1/15/2019 years 341,363 341,363 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 years 500,000 — 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 years 500,000 500,000 Total principal amount 2,291,363 2,161,344 Unamortized discount—Convertible Notes (8,905) (11,186) Unamortized discount—Senior Notes (19,497) (16,654) Unamortized deferred financing costs (10,330) (8,269) Carrying amount of debt components $ 2,252,631 $ 2,125,235 Carrying amount of conversion option equity components recorded in additional paid-in capital $ 21,636 $ 31,638 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible senior notes, the value of which reduced the initial liability and was recorded in additional paid‑in capital. Senior Notes On January 29, 2018, we issued $500.0 million of 3.625% Senior Notes due 2021 (the “2021 February Notes”). The 2021 February Notes mature on February 1, 2021. Prior to November 1, 2020, we may redeem some or all of the 2021 February 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 November 1, 2020, we may redeem some or all of the 2021 February Notes at a price equal to 100% of the principal amount thereof. In addition, prior to February 1, 2020, we may redeem up to 40% of the 2021 February Notes at the applicable redemption price using the proceeds of certain equity offerings. The 2021 February Notes were swapped to floating rate (see Note 12). Convertible Senior Notes In March 2018, we repaid the full outstanding principal amount of the 4.55% Convertible Senior Notes due 2018 (the “2018 Notes”) in cash upon their maturity. We recognized interest expense of $11.3 million and $19.5 million during the three months ended March 31, 2018 and 2017, respectively, from our unsecured convertible senior notes. On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Notes”). The proceeds from the issuance of the 2023 Notes were used to repurchase $230.0 million of 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 three months ended March 31, 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 for the three months ended March 31, 2017. The following table details the conversion attributes of our Convertible Notes outstanding as of March 31, 2018 (amounts in thousands, except rates): March 31, 2018 Conversion Spread Value - Shares (3) Conversion Conversion For the Three Months Ended March 31, Rate (1) Price (2) 2018 2017 2018 Notes N/A N/A — 1,200 2019 Notes 51.2214 $ 19.52 1,209 2,020 2023 Notes 38.5959 $ 25.91 — — 1,209 3,220 (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). (2) As of March 31, 2018 and 2017, the market price of the Company’s common stock was $20.95 and $22.58 per share, respectively. (3) The conversion spread value represents the portion of the Convertible Notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion. The if-converted value of the 4.00% Convertible Senior Notes due 2019 (the “2019 Notes”) exceeded their principal amount by $25.0 million at March 31, 2018 as the closing market price of the Company’s common stock of $20.95 per share exceeded the implicit conversion price of $19.52 per share. However, the if‑converted value of the 2023 Notes was less than their principal amount by $47.9 million at March 31, 2018 as the closing market price of the Company’s common stock was less than the implicit conversion price of $25.91 per share. 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.

Loan Securitization_Sale Activi

Loan Securitization/Sale Activities	3 Months Ended
	Mar. 31, 2018
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 an interest in the VIE and/or 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 months ended March 31, 2018 and 2017 (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Fair value of loans sold $ 266,632 $ 179,296 Par value of loans sold 256,818 168,564 Repayment of repurchase agreements 193,844 126,518 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 March 31, 2018 $ 146,400 $ 145,273 $ — $ — 2017 38,750 37,079 — — During the three months ended March 31, 2018 and 2017, gains (losses) recognized by the Lending Segment on sales of loans were not material.

Derivatives and Hedging Activit

Derivatives and Hedging Activity	3 Months Ended
	Mar. 31, 2018
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 The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. During the three months ended March 31, 2018, the Company’s only designated hedges were comprised of two outstanding interest rate swaps that have been designated as cash flow hedges of the interest rate risk associated with forecasted interest payments. As of March 31, 2018, the fair value of these cash flow hedges was not material. Additionally, during the three months ended March 31, 2018 and 2017 the impact of these cash flow hedges on our net income was not material and we did not recognize any hedge ineffectiveness in earnings associated with these cash flow hedges. 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 March 2022. These forward contracts were entered into 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 March 31, 2018 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 4 1,441 EUR April 2018 Fx contracts – Sell Euros ("EUR") (1) 39 258,921 EUR April 2018 – March 2022 Fx contracts – Buy Pounds Sterling ("GBP") 2 5,145 GBP July 2019 Fx contracts – Sell Pounds Sterling ("GBP") 145 199,270 GBP April 2018 – December 2021 Interest rate swaps – Paying fixed rates 21 853,671 USD April 2019 – April 2028 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021 – March 2025 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 11 128,464 USD June 2018 – October 2021 Credit index instruments 8 49,000 USD September 2058 – November 2059 Total 234 (1) Includes 27 Fx contracts entered into to hedge our Euro currency exposure created by our acquisition of the Ireland Portfolio. As of March 31, 2018, these contracts have an aggregate notional amount of €223.2 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 March 31, 2018 and December 31, 2017 (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 March 31, December 31, March 31, December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 30 $ 25 $ — $ — Total derivatives designated as hedging instruments 30 25 — — Derivatives not designated as hedging instruments: Interest rate contracts 40,026 27,234 17,373 2,781 Foreign exchange contracts 651 6,400 40,227 33,419 Credit index instruments 360 239 — — Total derivatives not designated as hedging instruments 41,037 33,873 57,600 36,200 Total derivatives $ 41,067 $ 33,898 $ 57,600 $ 36,200 (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 months ended March 31, 2018 and 2017 (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 March 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2018 $ 9 $ 4 $ — Interest expense 2017 $ 47 $ (29) $ — Interest expense Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended March 31, as Hedging Instruments Recognized in Income 2018 2017 Interest rate contracts Loss on derivative financial instruments $ 6,237 $ 1,468 Foreign exchange contracts Loss on derivative financial instruments (23,143) (5,742) Credit index instruments Loss on derivative financial instruments 47 (75) $ (16,859) $ (4,349)

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Derivative assets $ 41,067 $ — $ 41,067 $ 956 $ — $ 40,111 Derivative liabilities $ 57,600 $ — $ 57,600 $ 956 $ 55,086 $ 1,558 Repurchase agreements 2,683,306 — 2,683,306 2,683,306 — — $ 2,740,906 $ — $ 2,740,906 $ 2,684,262 $ 55,086 $ 1,558 As of December 31, 2017 Derivative assets $ 33,898 $ — $ 33,898 $ 6,523 $ — $ 27,375 Derivative liabilities $ 36,200 $ — $ 36,200 $ 6,523 $ 15,333 $ 14,344 Repurchase agreements 3,235,095 — 3,235,095 3,235,095 — — $ 3,271,295 $ — $ 3,271,295 $ 3,241,618 $ 15,333 $ 14,344

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2018
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 non-securitization entities that are considered VIEs, most of which were established to facilitate the acquisition of certain properties. SPT Dolphin, the entity which holds the Woodstar II Portfolio, is a VIE because the third party interest holders do not carry kick-out rights or substantive participating rights. We were deemed to be the primary beneficiary of the VIE because we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and a significant economic interest in the entity. This VIE had assets of $670.8 million and liabilities of $427.0 million as of March 31, 2018. In total, our consolidated non-securitization VIEs had assets of $785.5 million and liabilities of $511.5 million as of March 31, 2018. 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 March 31, 2018, two of our CDO structures were in default, which, pursuant to the underlying indentures, changes the rights of the variable interest holders. Upon default of a CDO, 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. As of March 31, 2018, 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 March 31, 2018, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $24.0 million on a fair value basis. As of March 31, 2018, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances of $4.7 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 $123.8 million as of March 31, 2018, 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	3 Months Ended
	Mar. 31, 2018
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. In February 2018, our board of directors authorized an amendment to our Management Agreement to adjust the calculation of the base management fee and incentive fee to treat equity securities of subsidiaries issued in exchange for properties or interests therein as issued common stock, effective December 28, 2017 (the “Amendment”). Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of the Amendment. Base Management Fee. For the three months ended March 31, 2018 and 2017, approximately $17.5 million and $16.9 million, respectively, was incurred for base management fees. As of March 31, 2018 and December 31, 2017, there were $17.5 million and $17.1 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 March 31, 2018 and 2017, approximately $9.6 million and $5.5 million, respectively, was incurred for incentive fees. As of March 31, 2018 and December 31, 2017, approximately $9.6 million and $22.0 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 March 31, 2018 and 2017, approximately $2.1 million and $1.6 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. As of March 31, 2018 and December 31, 2017, approximately $4.6 million and $3.3 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 March 31, 2018 and 2017, we granted 189,813 and 138,264 RSAs, respectively, at grant date fair values of $4.0 million and $3.1 million, respectively. Expenses related to the vesting of awards to employees of affiliates of our Manager were $0.5 million and $0.6 million during the three months ended March 31, 2018 and 2017, respectively, and are reflected in general and administrative expenses in our condensed consolidated statements of operations. 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 $2.9 million and $1.5 million within management fees in our condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017, respectively. 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 replaced the Manager Equity Plan. Refer to Note 16 for further discussion. Investments in Loans and Securities In January 2018, the Company acquired a $130.0 million first mortgage participation from an unaffiliated third party, which bears interest at LIBOR plus 4.00%. The loan is secured by four U.S. power plants that each have long-term power purchase agreements with investment grade counterparties. The borrower is an affiliate of our Manager. In February 2018, a GBP denominated first mortgage loan that we had co-originated with SEREF in November 2013, which was secured by Centre Point, an iconic tower located in Central London, England, was repaid in full. In March 2018, the Company acquired a €55.0 million newly-originated loan participation from SEREF, which is secured by a luxury resort in Estepona, Spain. 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 March 31, 2018, we acquired $27.7 million of net real estate assets from consolidated CMBS trusts for a gross purchase price of $28.0 million. Refer to Note 3 for further discussion of these acquisitions. No real estate assets were acquired from consolidated CMBS trusts during the three months ended March 31, 2017. Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of related-party agreements.

Stockholders' Equity and Non-Co

Stockholders' Equity and Non-Controlling Interests	3 Months Ended
	Mar. 31, 2018
Stockholders’ Equity and Non-Controlling Interests
Stockholders’ Equity and Non-Controlling Interests	16. Stockholders’ Equity During the three months ended March 31, 2018 our board of directors declared the following dividend: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 2/28/18 3/30/18 3/28/18 4/13/18 $ 0.48 Quarterly During the three months ended March 31, 2018 and 2017, there were no shares issued under our At-The-Market Equity Offering Sales Agreement. During the three months ended March 31, 2018 and 2017, 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 three months ended March 31, 2018, we repurchased 573,255 shares of common stock for $12.1 million and no Convertible Notes under our repurchase program. There were no share or Convertible Notes repurchases under the repurchase program during the three months ended March 31, 2017. The repurchase of the 2018 Notes discussed in Note 10 was not considered part of the repurchase program and therefore did not reduce our available capacity for future repurchases under the repurchase program. As of March 31, 2018, we had $250.1 million of remaining capacity to repurchase common stock and/or Convertible Notes under the repurchase program. 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 three months ended March 31, 2018 and 2017 (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 As of March 31, 2018, there were 10.3 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 2017 Weighted Average 2017 Manager Grant Date Fair Equity Plan Equity Plan Total Value (per share) Balance as of January 1, 2018 885,138 806,251 1,691,389 $ 21.95 Granted 459,118 — 459,118 21.25 Vested (263,886) (139,583) (403,469) 21.82 Forfeited — — — — Balance as of March 31, 2018 1,080,370 666,668 1,747,038 21.80 Non-Controlling Interests in Consolidated Subsidiaries As discussed in Note 3, in connection with our Woodstar II Portfolio acquisitions, we issued 9.8 million Class A Units in SPT Dolphin. Commencing six months from issuance, Class A Units are redeemable for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. In consolidation, the issued Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our condensed consolidated balance sheets. To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our condensed consolidated statement of operations. During the three months ended March 31, 2018, we recognized net income attributable to non-controlling interests of $2.5 million associated with these Class A Units. During the three months ended March 31, 2018, we acquired the non-controlling interest held by a third party in one of our consolidated REIS Equity Portfolio properties, which was carried at $0.3 million, for $3.3 million. The excess of the consideration paid to acquire the non-controlling interest over the carrying value of the non-controlling interest was recorded as a reduction of stockholders’ equity during the three months ended March 31, 2018.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 2017 Basic Earnings Income attributable to STWD common stockholders $ 99,932 $ 102,358 Less: Income attributable to participating shares not already deducted as non-controlling interests (721) (899) Basic earnings $ 99,211 $ 101,459 Diluted Earnings Income attributable to STWD common stockholders $ 99,932 $ 102,358 Less: Income attributable to participating shares not already deducted as non-controlling interests (721) (899) Add: Undistributed earnings to participating shares — — Less: Undistributed earnings reallocated to participating shares — — Diluted earnings $ 99,211 $ 101,459 Number of Shares: Basic — Average shares outstanding 260,664 258,997 Effect of dilutive securities — Convertible Notes 1,209 3,220 Effect of dilutive securities — Contingently issuable shares 229 121 Effect of dilutive securities — Unvested non-participating shares 22 103 Diluted — Average shares outstanding 262,124 262,441 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 0.38 $ 0.39 Diluted $ 0.38 $ 0.39 As of March 31, 2018 and 2017, participating shares of 11.3 million and 1.9 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. Such participating shares at March 31, 2018 included 9.8 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 16. Additionally, as of March 31, 2018, there were 27.1 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 25.9 million shares at March 31, 2018, was not included in the computation of diluted EPS. However, as discussed in Note 10, the conversion option associated with the 2019 Notes is “in-the-money” as the if-converted value of the 2019 Notes exceeded their principal amount by $25.0 million at March 31, 2018. 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 1.2 million shares for the three months ended March 31, 2018. The conversion option associated with the 2023 Notes is “out-of-the-money” because the if-converted values of the 2023 Notes was less than their principal amount by $47.9 million at March 31, 2018; therefore, there was no dilutive effect to EPS.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Balance at January 1, 2018 $ 25 $ 57,889 $ 12,010 $ 69,924 OCI before reclassifications 9 1,209 4,218 5,436 Amounts reclassified from AOCI (4) (46) — (50) Net period OCI 5 1,163 4,218 5,386 Balance at March 31, 2018 $ 30 $ 59,052 $ 16,228 $ 75,310 Three Months Ended March 31, 2017 Balance at January 1, 2017 $ (26) $ 44,929 $ (8,765) $ 36,138 OCI before reclassifications 47 1,931 2,007 3,985 Amounts reclassified from AOCI 29 (85) — (56) Net period OCI 76 1,846 2,007 3,929 Balance at March 31, 2017 $ 50 $ 46,775 $ (6,758) $ 40,067 The reclassifications out of AOCI impacted the condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Three Months Affected Line Item Ended March 31, in the Statements Details about AOCI Components 2018 2017 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 4 $ (29) Interest expense Unrealized gains (losses) on available-for-sale securities: Interest realized upon collection 46 85 Interest income from investment securities Total reclassifications for the period $ 50 $ 56

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 723,733 $ — $ — $ 723,733 RMBS 240,853 — — 240,853 CMBS 23,969 — — 23,969 Equity security 13,322 13,322 — — Domestic servicing rights 24,945 — — 24,945 Derivative assets 41,067 — 41,067 — VIE assets 49,233,307 — — 49,233,307 Total $ 50,301,196 $ 13,322 $ 41,067 $ 50,246,807 Financial Liabilities: Derivative liabilities $ 57,600 $ — $ 57,600 $ — VIE liabilities 48,167,760 — 45,962,026 2,205,734 Total $ 48,225,360 $ — $ 46,019,626 $ 2,205,734 December 31, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 745,743 $ — $ — $ 745,743 RMBS 247,021 — — 247,021 CMBS 24,191 — — 24,191 Equity security 13,523 13,523 — — Domestic servicing rights 30,759 — — 30,759 Derivative assets 33,898 — 33,898 — VIE assets 51,045,874 — — 51,045,874 Total $ 52,141,009 $ 13,523 $ 33,898 $ 52,093,588 Financial Liabilities: Derivative liabilities $ 36,200 $ — $ 36,200 $ — VIE liabilities 50,000,010 — 47,811,073 2,188,937 Total $ 50,036,210 $ — $ 47,847,273 $ 2,188,937 The changes in financial assets and liabilities classified as Level III are as follows for the three months ended March 31, 2018 and 2017 (amounts in thousands): Domestic Loans Servicing VIE Three Months Ended March 31, 2018 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2018 balance $ 745,743 $ 247,021 $ 24,191 $ 30,759 $ 51,045,874 $ (2,188,937) $ Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 7,800 — 555 (5,814) (2,027,208) 237,090 (1,787,577) Net accretion — 2,819 — — — — 2,819 Included in OCI — 1,163 — — — — 1,163 Purchases / Originations 277,259 — — — — — 277,259 Sales (266,632) — — — — — (266,632) Issuances — — — — — (7,948) (7,948) Cash repayments / receipts (40,437) (10,150) (777) — — (12,633) (63,997) Transfers into Level III — — — — — (530,888) (530,888) Transfers out of Level III — — — — — 208,258 208,258 Consolidation of VIEs — — — — 1,089,881 — 1,089,881 Deconsolidation of VIEs — — — — (875,240) 89,324 (785,916) March 31, 2018 balance $ 723,733 $ 240,853 $ 23,969 $ 24,945 $ 49,233,307 $ (2,205,734) $ Amount of total (losses) gains included in earnings attributable to assets still held at March 31, 2018 $ (640) $ 2,772 $ 555 $ (5,814) $ (2,027,208) $ 237,090 $ (1,793,245) Domestic Loans Servicing VIE Three Months Ended March 31, 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 10,593 — (1,343) (8,433) (6,537,225) 384,981 (6,151,427) Net accretion — 3,886 — — — — 3,886 Included in OCI — 1,846 — — — — 1,846 Purchases / Originations 445,887 — — — — — 445,887 Sales (179,296) — (10,434) — — — (189,730) Issuances — — — — — (4,759) (4,759) Cash repayments / receipts (197) (10,228) (5,766) — — (30,796) (46,987) Transfers into Level III — — — — — (63,970) (63,970) Transfers out of Level III — — — — — 129,452 129,452 Consolidation of VIEs — — — — 1,127,952 — 1,127,952 Deconsolidation of VIEs — — 1,469 — (1,528,137) 9,166 (1,517,502) March 31, 2017 balance $ 340,266 $ 249,419 $ 15,472 $ 46,649 $ 60,185,851 $ (2,161,295) $ 58,676,362 Amount of total (losses) gains included in earnings attributable to assets still held at March 31, 2017 $ (6) $ 3,795 $ 248 $ (8,433) $ (6,537,225) $ 384,981 $ (6,156,640) 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): March 31, 2018 December 31, 2017 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 $ 6,257,249 $ 6,335,551 $ 6,636,898 $ 6,729,302 HTM securities 236,319 234,226 433,468 428,338 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 5,628,589 $ 5,564,347 $ 5,847,241 $ 5,810,998 Unsecured senior notes 2,252,631 2,287,522 2,125,235 2,191,285 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) March 31, 2018 Technique Input March 31, 2018 December 31, 2017 Loans held-for-sale, fair value option $ 723,733 Discounted cash flow Yield (b) 4.8% - 6.0% 4.3% - 6.0% Duration (c) 1.8 - 13.0 years 1.8 - 12.1 years RMBS 240,853 Discounted cash flow Constant prepayment rate (a) 2.6% - 23.0% 2.5% - 21.4% Constant default rate (b) 1.0% - 5.6% 0.9% - 5.8% Loss severity (b) 15% - 74% (e) 14% - 75% (e) Delinquency rate (c) 4% - 33% 4% - 33% Servicer advances (a) 24% - 83% 20% - 83% Annual coupon deterioration (b) 0% - 0.8% 0% - 0.8% Putback amount per projected total collateral loss (d) 0% - 7% 0% - 7% CMBS 23,969 Discounted cash flow Yield (b) 0% - 295.6% 0% - 168.5% Duration (c) 0 - 9.7 years 0 - 9.7 years Domestic servicing rights 24,945 Discounted cash flow Debt yield (a) 7.75% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 49,233,307 Discounted cash flow Yield (b) 0% - 938.0% 0% - 826.6% Duration (c) 0 - 13.4 years 0 - 14.0 years VIE liabilities 2,205,734 Discounted cash flow Yield (b) 0% - 938.0% 0% - 826.6% Duration (c) 0 - 13.4 years 0 - 14.0 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) 80% and 81% of the portfolio falls within a range of 45%-80% as of March 31, 2018 and December 31, 2017, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
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. As of March 31, 2018 and December 31, 2017, approximately $1.2 billion and $673.1 million, respectively, of assets, including $70.6 million and $24.1 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 months ended March 31, 2018 and 2017 (dollars in thousands): For the Three Months Ended March 31, 2018 2017 Federal statutory tax rate $ 22,606 21.0 % $ 35,655 35.0 % REIT and other non-taxable income (20,343) (18.9) % (36,425) (35.8) % State income taxes 593 0.6 % (139) (0.1) % Federal benefit of state tax deduction (124) (0.1) % 49 — % Other 124 0.1 % (123) (0.1) % Effective tax rate $ 2,856 2.7 % $ (983) (1.0) %

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies.
Commitments and Contingencies	21. Commitments and Contingencie As of March 31, 2018, we had future funding commitments on 50 loans totaling $1.7 billion, of which we expect to fund $1.4 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	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 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 $ 134,972 $ — $ 2,648 $ — $ $ — $ Interest income from investment securities 14,439 — 34,399 — 48,838 (33,569) 15,269 Servicing fees 165 — 33,434 — 33,599 (7,532) 26,067 Rental income — 66,710 14,400 — 81,110 — 81,110 Other revenues 194 101 228 52 575 (54) 521 Total revenues 149,770 66,811 85,109 52 (41,155) Costs and expenses: Management fees 480 — 18 30,051 30,549 93 30,642 Interest expense 32,021 16,534 5,095 33,803 87,453 (270) 87,183 General and administrative 6,695 1,859 21,020 2,482 32,056 86 32,142 Acquisition and investment pursuit costs 220 6 151 — 377 — 377 Costs of rental operations — 23,488 6,205 — 29,693 — 29,693 Depreciation and amortization 17 26,469 5,258 — 31,744 — 31,744 Loan loss allowance, net 1,538 — — — 1,538 — 1,538 Other expense 77 — 27 — 104 — 104 Total costs and expenses 41,048 68,356 37,774 66,336 (91) Income (loss) before other income (loss), income taxes and non-controlling interests 108,722 (1,545) 47,335 (66,284) 88,228 (41,064) 47,164 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 52,653 52,653 Change in fair value of servicing rights — — (9,168) — (9,168) 3,354 (5,814) Change in fair value of investment securities, net (704) — 13,979 — 13,275 (13,424) (149) Change in fair value of mortgage loans held-for-sale, net (1,692) — 9,492 — 7,800 — 7,800 Earnings (loss) from unconsolidated entities 1,444 (3,515) 1,596 — (475) (987) (1,462) Gain on sale of investments and other assets, net 279 3,942 6,439 — 10,660 — 10,660 (Loss) gain on derivative financial instruments, net (10,818) 1,919 5,042 (13,002) (16,859) — (16,859) Foreign currency gain (loss), net 13,550 2 (3) — 13,549 — 13,549 Other income, net 43 17 48 — 108 — 108 Total other income (loss) 2,102 2,365 27,425 (13,002) 18,890 41,596 60,486 Income (loss) before income taxes 110,824 820 74,760 (79,286) 532 Income tax provision (947) (1,261) (648) — (2,856) — (2,856) Net income (loss) 109,877 (441) 74,112 (79,286) 532 Net income attributable to non-controlling interests (361) (2,453) (1,516) — (4,330) (532) (4,862) Net income (loss) attributable to Starwood Property Trust, Inc . $ 109,516 $ (2,894) $ 72,596 $ (79,286) $ 99,932 $ — $ 99,932 The table below presents our results of operations for the three months ended March 31, 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 $ 109,046 $ — $ 2,837 $ — $ 111,883 $ — $ 111,883 Interest income from investment securities 12,719 — 34,836 — 47,555 (32,331) 15,224 Servicing fees 210 — 30,081 — 30,291 (16,189) 14,102 Rental income — 44,853 12,189 — 57,042 — 57,042 Other revenues 79 45 464 — 588 (119) 469 Total revenues 122,054 44,898 80,407 — 247,359 (48,639) 198,720 Costs and expenses: Management fees 454 — 18 23,862 24,334 50 24,384 Interest expense 19,957 10,207 4,358 31,607 66,129 (269) 65,860 General and administrative 4,211 1,381 22,580 2,170 30,342 87 30,429 Acquisition and investment pursuit costs 515 172 (16) — 671 — 671 Costs of rental operations — 15,391 5,487 — 20,878 — 20,878 Depreciation and amortization 17 17,157 5,054 — 22,228 — 22,228 Loan loss allowance, net (305) — — — (305) — (305) Other expense — — 758 — 758 — 758 Total costs and expenses 24,849 44,308 38,239 57,639 165,035 (132) 164,903 Income (loss) before other income (loss), income taxes and non-controlling interests 97,205 590 42,168 (57,639) 82,324 (48,507) 33,817 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 69,170 69,170 Change in fair value of servicing rights — — (9,637) — (9,637) 1,204 (8,433) Change in fair value of investment securities, net 172 — 19,045 — 19,217 (20,388) (1,171) Change in fair value of mortgage loans held-for-sale, net — — 10,593 — 10,593 — 10,593 Earnings from unconsolidated entities 470 2,461 1,017 — 3,948 (961) 2,987 Loss on sale of investments and other assets, net (56) — — — (56) — (56) (Loss) gain on derivative financial instruments, net (4,535) (511) 697 — (4,349) — (4,349) Foreign currency gain, net 4,863 — 1 — 4,864 — 4,864 Loss on extinguishment of debt — — — (5,916) (5,916) — (5,916) Other income, net — — 365 — 365 — 365 Total other income (loss) 914 1,950 22,081 (5,916) 19,029 49,025 68,054 Income (loss) before income taxes 98,119 2,540 64,249 (63,555) 101,353 518 101,871 Income tax (provision) benefit (215) — 1,198 — 983 — 983 Net income (loss) 97,904 2,540 65,447 (63,555) 102,336 518 102,854 Net (income) loss attributable to non-controlling interests (354) — 376 — 22 (518) (496) Net income (loss) attributable to Starwood Property Trust, Inc . $ 97,550 $ 2,540 $ 65,823 $ (63,555) $ 102,358 $ — $ 102,358 The table below presents our condensed consolidated balance sheet as of March 31, 2018 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 $ 30,048 $ 14,738 $ 55,167 $ 179,987 $ 279,940 $ 6,215 $ 286,155 Restricted cash 52,855 15,343 8,478 16,590 93,266 — 93,266 Loans held-for-investment, net 6,179,100 — 3,686 — 6,182,786 — 6,182,786 Loans held-for-sale 662,971 — 60,762 — 723,733 — 723,733 Loans transferred as secured borrowings 74,463 — — — 74,463 — 74,463 Investment securities 490,494 — 1,045,217 — 1,535,711 (1,021,248) 514,463 Properties, net — 289,372 — 2,988,864 — 2,988,864 Intangible assets — 118,522 85,999 — 204,521 (24,892) 179,629 Investment in unconsolidated entities 29,537 107,189 45,361 — 182,087 (21,975) 160,112 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 4,240 36,056 771 — 41,067 — 41,067 Accrued interest receivable 39,002 163 258 1,830 41,253 — 41,253 Other assets 328,622 88,708 50,830 2,083 470,243 (2,923) 467,320 VIE assets, at fair value — — — — — 49,233,307 Total Assets $ 7,891,332 $ $ 1,786,338 $ 200,490 $ $ 48,168,484 $ Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 18,332 $ 68,115 $ 48,925 $ 20,894 $ 156,266 $ 1,297 $ 157,563 Related-party payable 20 — 28 31,733 31,781 — 31,781 Dividends payable — — — 126,244 126,244 — 126,244 Derivative liabilities 19,576 20,630 330 17,064 57,600 — 57,600 Secured financing agreements, net 2,936,419 408,104 297,124 5,578,014 (23,700) 5,554,314 Unsecured senior notes, net — — — 2,252,631 2,252,631 — 2,252,631 Secured borrowings on transferred loans, net 74,275 — — — 74,275 — 74,275 VIE liabilities, at fair value — — — — — 48,167,760 Total Liabilities 3,048,622 457,387 2,745,690 8,276,811 48,145,357 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,671 2,671 — 2,671 Additional paid-in capital 2,054,473 850,185 562,815 1,260,710 4,728,183 — 4,728,183 Treasury stock — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 59,082 16,259 (31) — 75,310 — 75,310 Retained earnings (accumulated deficit) 2,718,567 (17,229) 759,611 (3,704,387) (243,438) — (243,438) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,832,122 849,215 1,322,395 (2,545,200) 4,458,532 — 4,458,532 Non-controlling interests in consolidated subsidiaries 10,588 205,884 6,556 — 223,028 23,127 246,155 Total Equity 4,842,710 1,328,951 4,681,560 23,127 4,704,687 Total Liabilities and Equity $ 7,891,332 $ $ 1,786,338 $ 200,490 $ $ 48,168,484 $ The table below presents our condensed consolidated balance sheet as of December 31, 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 $ 14,580 $ 10,388 $ 39,446 $ 299,308 $ 363,722 $ 5,726 $ 369,448 Restricted cash 21,555 12,491 10,289 4,490 48,825 — 48,825 Loans held-for-investment, net 6,558,699 — 3,796 — 6,562,495 — 6,562,495 Loans held-for-sale 613,287 — 132,456 — 745,743 — 745,743 Loans transferred as secured borrowings 74,403 — — — 74,403 — 74,403 Investment securities 694,012 — 1,024,143 — 1,718,155 (999,952) 718,203 Properties, net — 2,364,806 282,675 — 2,647,481 — 2,647,481 Intangible assets — 116,081 95,257 — 211,338 (28,246) 183,092 Investment in unconsolidated entities 45,028 110,704 50,759 — 206,491 (20,988) 185,503 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 6,487 26,775 636 — 33,898 — 33,898 Accrued interest receivable 46,650 68 243 786 47,747 — 47,747 Other assets 5,648 71,929 59,676 3,755 141,008 (2,868) 138,140 VIE assets, at fair value — — — — — 51,045,874 51,045,874 Total Assets $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 23,054 $ 62,890 $ 74,426 $ 23,536 $ 183,906 $ 1,211 $ 185,117 Related-party payable 20 — 31 42,318 42,369 — 42,369 Dividends payable — — — 125,916 125,916 — 125,916 Derivative liabilities 20,386 13,063 85 2,666 36,200 — 36,200 Secured financing agreements, net 3,466,487 1,621,885 411,526 296,858 5,796,756 (23,700) 5,773,056 Unsecured senior notes, net — — — 2,125,235 2,125,235 — 2,125,235 Secured borrowings on transferred loans 74,185 — — — 74,185 — 74,185 VIE liabilities, at fair value — — — — — 50,000,010 50,000,010 Total Liabilities 3,584,132 1,697,838 486,068 2,616,529 8,384,567 49,977,521 58,362,088 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,660 2,660 — 2,660 Additional paid-in capital 1,818,559 957,329 659,062 1,280,296 4,715,246 — 4,715,246 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 57,914 12,076 (66) — 69,924 — 69,924 Retained earnings (accumulated deficit) 2,609,050 (14,335) 687,015 (3,499,042) (217,312) — (217,312) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,485,523 955,070 1,346,011 (2,308,190) 4,478,414 — 4,478,414 Non-controlling interests in consolidated subsidiaries 10,694 60,334 7,734 — 78,762 22,025 100,787 Total Equity 4,496,217 1,015,404 1,353,745 (2,308,190) 4,557,176 22,025 4,579,201 Total Liabilities and Equity $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events
Subsequent Events	23. Subsequent Events Our significant events subsequent to March 31, 2018 were as follows: Manager Equity Plan On April 4, 2018, we granted 775,000 RSUs to our Manager under the 2017 Manager Equity Plan at a grant date fair value of $16.3 million. The award was granted based on the market price of the Company’s common stock on the grant date and vests over a three-year period. Dividend Declaration On May 4, 2018, our board of directors declared a dividend of $0.48 per share for the second quarter of 2018, which is payable on July 13, 2018 to common stockholders of record as of June 29, 2018.

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
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, 2017 (the “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three months ended March 31, 2018 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, (iii) became significant since December 31, 2017 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”).
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 3% of our consolidated securitization VIE assets, with the remaining 97% 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 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 which, effective January 1, 2018, are now required to be carried at fair value through earnings. 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.
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. Refer to Note 19 for further discussion regarding our fair value measurements.
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.
Cost Method Equity Investments	Cost Method Equity Investments On January 1, 2018, ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , became effective prospectively for public companies with a calendar fiscal year. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures, and limited liability companies, at fair value with changes in fair value recognized within net income. This ASU does not apply to equity method investments, investments in Federal Home Loan Bank (“FHLB”) stock, investments that result in consolidation of the investee or investments in certain investment companies. For investments in equity securities without a readily determinable fair value, an entity is permitted to elect a practicability exception, under which the investment will be measured at cost, less impairment, plus or minus observable price changes from orderly transactions of an identical or similar investment of the same issuer. Additionally, this ASU eliminated the requirement to assess whether an impairment of an equity investment is other than temporary. The impairment model for equity investments subject to this election is now a single-step model whereby an entity performs a qualitative assessment to identify impairment. If the qualitative assessment indicates that an impairment exists, the entity would estimate the fair value of the investment and recognize in net income an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. Our equity investments within the scope of this ASU are limited to our cost method equity investments discussed in Note 7, with the exception of our FHLB stock which is outside the scope of this ASU, and to our marketable equity security discussed in Note 5 for which we had previously elected the fair value option. Our cost method equity investments within the scope of this ASU do not have readily determinable fair values. Therefore, we have elected the practicability exception whereby we measure these investments at cost, less impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. Refer to Note 7 for further discussion.
Revenue Recognition	Revenue Recognition On January 1, 2018, new accounting rules regarding revenue recognition became effective for public companies with a calendar fiscal year. None of our significant revenue sources – interest income from loans and investment securities, loan servicing fees, and rental income – are within the scope of the new revenue recognition guidance. The revenue recognition guidance also included revisions to existing accounting rules regarding the determination of whether a company is acting as a principal or agent in an arrangement and accounting for sales of nonfinancial assets where the seller has continuing involvement. These additional revisions also did not materially impact the Company.
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, (iii) the “in-the-money” conversion options associated with our outstanding convertible senior notes (see Notes 10 and 17), and (iv) non-controlling interests that are redeemable with our common stock (see Note 16). 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. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 16). 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 months ended March 31, 2018 and 2017, the two-class method resulted in the most dilutive EPS calculation.
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.
Recent Accounting Developments	Recent Accounting Developments 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 this ASU. This 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 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. This 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 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. This 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. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and is applied prospectively. 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. This 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.

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) March 31, 2018 Value Amount Coupon (years)(1) First mortgages (2) $ 5,438,170 $ 5,459,593 6.4 % 2.2 Subordinated mortgages (3) 177,360 177,402 11.1 % 1.8 Mezzanine loans (2) 547,048 546,762 11.1 % 1.1 Other 26,076 29,660 8.6 % 3.6 Total loans held-for-investment 6,188,654 6,213,417 Loans held-for-sale, fair value option, residential 662,971 642,752 6.2 % 6.6 Loans held-for-sale, fair value option, commercial 60,762 60,850 5.0 % 10.0 Loans transferred as secured borrowings 74,463 75,000 6.5 % 2.0 Total gross loans 6,986,850 6,992,019 Loan loss allowance (loans held-for-investment) (5,868) — Total net loans $ 6,980,982 $ 6,992,019 December 31, 2017 First mortgages (2) $ 5,818,804 $ 5,843,623 6.2 % 2.0 Subordinated mortgages (3) 177,115 177,386 10.8 % 1.9 Mezzanine loans (2) 545,299 545,355 11.0 % 1.1 Other 25,607 29,320 8.5 % 3.9 Total loans held-for-investment 6,566,825 6,595,684 Loans held-for-sale, fair value option, residential 613,287 594,105 6.2 % 5.4 Loans held-for-sale, fair value option, commercial 132,456 132,393 4.6 % 10.0 Loans transferred as secured borrowings 74,403 75,000 6.2 % 2.3 Total gross loans 7,386,971 7,397,182 Loan loss allowance (loans held-for-investment) (4,330) — Total net loans $ 7,382,641 $ 7,397,182 (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 $689.0 million and $851.1 million being classified as first mortgages as of March 31, 2018 and December 31, 2017, 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.
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 March 31, 2018, 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 Other For-Sale Borrowings Total Loans 1 $ 1,789 $ — $ — $ 20,068 $ — $ — $ 21,857 0.3 % 2 2,221,941 32,049 209,751 — — 74,463 2,538,204 36.3 % 3 2,980,626 133,334 337,297 6,008 — — 3,457,265 49.5 % 4 183,452 — — — — — 183,452 2.6 % 5 50,362 11,977 — — — — 62,339 0.9 % N/A — — — — 723,733 — 723,733 10.4 % $ 5,438,170 $ 177,360 $ 547,048 $ 26,076 $ 723,733 $ 74,463 $ 6,986,850 100.0 % As of December 31, 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 Transferred % of Risk Rating First Subordinated Mezzanine Loans Held- As Secured Total Category Mortgages Mortgages Loans Other For-Sale Borrowings Total Loans 1 $ 2,003 $ — $ — $ 20,267 $ — $ — $ 22,270 0.3 % 2 2,462,268 11,927 137,803 — — — 2,611,998 35.4 % 3 3,183,592 165,188 407,496 5,340 — 74,403 3,836,019 51.9 % 4 120,479 — — — — — 120,479 1.6 % 5 50,462 — — — — — 50,462 0.7 % N/A — — — — 745,743 — 745,743 10.1 % $ 5,818,804 $ 177,115 $ 545,299 $ 25,607 $ 745,743 $ 74,403 $ 7,386,971 100.0 %
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 Three Months Ended March 31, 2018 2017 Allowance for loan losses at January 1 $ 4,330 $ 9,788 Provision for loan losses 1,538 (305) Charge-offs — — Recoveries — — Allowance for loan losses at March 31 $ 5,868 $ 9,483 Recorded investment in loans related to the allowance for loan loss $ 245,791 $ 499,539
Schedule of activity in loan portfolio	For the Three Months Ended March 31, 2018 2017 Balance at January 1 $ 7,382,641 $ 5,946,274 Acquisitions/originations/additional funding 1,178,560 1,067,021 Capitalized interest (1) 16,253 15,079 Basis of loans sold (2) (411,625) (216,431) Loan maturities/principal repayments (1,225,815) (230,931) Discount accretion/premium amortization 12,052 7,519 Changes in fair value 7,800 10,593 Unrealized foreign currency translation gain 22,552 6,053 Change in loan loss allowance, net (1,538) 305 Transfer to/from other asset classifications 102 603 Balance at March 31 $ 6,980,982 $ 6,606,085 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. See Note 11 for additional disclosure on these transactions.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of investment securities	Investment securities were comprised of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands): Carrying Value as of March 31, 2018 December 31, 2017 RMBS, available-for-sale $ 240,853 $ 247,021 CMBS, fair value option (1) 1,045,217 1,024,143 Held-to-maturity (“HTM”) securities 236,319 433,468 Equity security, fair value 13,322 13,523 Subtotal — Investment securities 1,535,711 1,718,155 VIE eliminations (1) (1,021,248) (999,952) Total investment securities $ 514,463 $ 718,203 (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 March 31, 2018 Purchases (1) $ — $ — $ — $ — $ — Sales (2) — — — — — Principal collections 10,150 777 208,303 — Three Months Ended March 31, 2017 Purchases (1) $ — $ — $ — $ — $ — Sales (2) — 10,434 — — 10,434 Principal collections 10,228 5,766 60,056 — 76,050 (1) During the three months ended March 31, 2018 and 2017, we purchased $30.2 million and $57.4 million of CMBS, respectively, for which we elected the fair value option. Due to our consolidation of securitization VIEs, $30.2 million and $57.4 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 March 31, 2018 and 2017, we sold $7.9 million and $15.2 million of CMBS, respectively, for which we had previously elected the fair value option. Due to our consolidation of securitization VIEs, $7.9 million and $4.8 million, respectively, of this amount is eliminated and reflected as issuance of debt of consolidated VIEs in our condensed consolidated statements of cash flows.
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 March 31, 2018 and December 31, 2017 (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 March 31, 2018 RMBS $ 191,698 $ (9,897) $ 181,801 $ — $ 59,052 $ — $ 59,052 $ 240,853 December 31, 2017 RMBS $ $ (9,897) $ 189,132 $ (94) $ 58,011 $ (28) $ 57,889 $ 247,021 Weighted Average Coupon (1) Weighted Average WAL March 31, 2018 RMBS 3.0 % CCC- 6.3 December 31, 2017 RMBS 2.8 % B 6.4 (1) Calculated using the March 31, 2018 and December 31, 2017 one-month LIBOR rate of 1.883% and 1.564%, 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 March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Principal balance $ 355,083 $ 366,711 Accretable yield (51,794) (55,712) Non-accretable difference (121,488) (121,867) Total discount (173,282) (177,579) Amortized cost $ 181,801 $ 189,132
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 months ended March 31, 2018 (amounts in thousands): Non-Accretable Three Months Ended March 31, 2018 Accretable Yield Difference Balance as of January 1, 2018 $ 55,712 $ 121,867 Accretion of discount (2,819) — Principal write-downs, net — (1,478) Purchases — — Sales — — OTTI — — Transfer to/from non-accretable difference (1,099) 1,099 Balance as of March 31, 2018 $ 51,794 $ 121,488
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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 RMBS $ — $ — $ — $ — As of December 31, 2017 RMBS $ 10,321 $ 643 $ (99) $ (23)
Summary of maturities of preferred equity interests in limited liability companies that own commercial real estate	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 March 31, 2018 (amounts in thousands): Preferred CMBS Interests Total Less than one year $ 119,073 $ — $ 119,073 One to three years 66,211 — 66,211 Three to five years 30,563 20,472 51,035 Thereafter — — — Total $ 215,847 $ 20,472 $ 236,319
Held-to-maturity
Summary of investments in HTM securities	The table below summarizes unrealized gains and losses of our investments in HTM securities as of March 31, 2018 and December 31, 2017 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value March 31, 2018 CMBS $ 215,847 $ 3,927 $ (6,657) $ 213,117 Preferred interests 20,472 637 — 21,109 Total $ 236,319 $ 4,564 $ (6,657) $ 234,226 December 31, 2017 CMBS $ $ 2,002 $ (7,779) $ 407,333 Preferred interests 20,358 647 — 21,005 Total $ 433,468 $ 2,649 $ (7,779) $ 428,338

Properties (Tables)

Properties (Tables)	3 Months Ended
	Mar. 31, 2018
Properties
Summary of properties	The table below summarizes our properties held as of March, 31, 2018 and December 31, 2017 (dollars in thousands): Depreciable Life March 31, 2018 December 31, 2017 Property Segment Land and land improvements 0 – 15 years $ 675,856 $ 585,915 Buildings and building improvements 5 – 45 years 2,092,139 1,838,266 Furniture & fixtures 3 – 7 years 40,888 31,028 Investing and Servicing Segment Land and land improvements 0 – 15 years 87,536 86,711 Buildings and building improvements 3 – 40 years 219,552 212,094 Furniture & fixtures 2 – 5 years 1,399 1,036 Properties, cost 3,117,370 2,755,050 Less: accumulated depreciation (128,506) (107,569) Properties, net $ 2,988,864 $ 2,647,481

Investment in Unconsolidated 36

Investment in Unconsolidated Entities (Tables)	3 Months Ended
	Mar. 31, 2018
Investment in Unconsolidated Entities
Summary of investments in unconsolidated entities	The table below summarizes our investments in unconsolidated entities as of March 31, 2018 and December 31, 2017 (dollars in thousands): Participation / Carrying value as of Ownership % (1) March 31, 2018 December 31, 2017 Equity method: Retail Fund 33% $ 107,189 $ 110,704 Investor entity which owns equity in an online real estate company 50% 9,338 9,312 Equity interests in commercial real estate 50% 7,051 (2) 23,192 Equity interest in a residential mortgage originator N/A 7,358 7,742 Various 25% - 50% 4,416 3,538 135,352 154,488 Cost method: Equity interest in a servicing and advisory business 6% 6,207 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% 9,328 9,556 24,760 31,015 $ 160,112 $ 185,503 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) During the three months ended March 31, 2018, our preferred equity investment in a portfolio of student housing properties was redeemed in full for cash proceeds of $16.7 million.

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (amounts in thousands): As of March 31, 2018 As of December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 24,945 $ — $ 24,945 $ 30,759 $ — $ 30,759 In-place lease intangible assets 200,444 (75,070) 125,374 187,816 (65,351) 122,465 Favorable lease intangible assets 37,552 (8,242) 29,310 37,231 (7,363) 29,868 Total net intangible assets $ 262,941 $ (83,312) $ 179,629 $ 255,806 $ (72,714) $ 183,092
Summary of activity within intangible assets	The following table summarizes the activity within intangible assets for the three months ended March 31, 2018 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2018 $ 30,759 $ 122,465 $ 29,868 $ 183,092 Acquisition of additional Woodstar II Portfolio properties — 10,015 — 10,015 Acquisition of additional REIS Equity Portfolio properties — 2,248 450 2,698 Amortization — (9,959) (1,117) (11,076) Sales — (246) (126) (372) Foreign exchange gain — 876 235 1,111 Impairment (1) — (25) — (25) Changes in fair value due to changes in inputs and assumptions (5,814) — — (5,814) Balance as of March 31, 2018 $ 24,945 $ 125,374 $ 29,310 $ 179,629 (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): 2018 (remainder of) $ 31,982 2019 22,532 2020 17,088 2021 14,780 2022 12,100 Thereafter 56,202 Total $ 154,684

Secured Financing Agreements (T

Secured Financing Agreements (Tables)	3 Months Ended
	Mar. 31, 2018
Secured Financing Agreements
Summary of secured financing agreements	The following table is a summary of our secured financing agreements in place as of March 31, 2018 and December 31, 2017 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum March 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2018 2017 Lender 1 Repo 1 (b) (b) LIBOR + 1.75% to 5.75% $ 1,495,507 $ 2,000,000 $ 1,024,845 $ 1,137,654 Lender 2 Repo 1 Oct 2018 Oct 2020 LIBOR + 1.75% to 2.75% 238,904 500,000 172,632 238,428 Lender 3 Repo 1 N/A N/A N/A — — — 75,291 Lender 4 Repo 2 Dec 2018 Dec 2020 LIBOR + 2.00% to 3.25% 642,531 1,000,000 (c) 215,240 215,372 Lender 6 Repo 1 Aug 2020 N/A LIBOR + 2.00% to 2.75% 622,440 600,000 423,007 494,353 Lender 6 Repo 2 Oct 2022 Oct 2023 GBP LIBOR + 2.75% 466,322 359,780 359,780 332,815 Lender 9 Repo 1 Sep 2018 N/A LIBOR + 1.65% 20,583 15,396 15,396 65,762 Lender 10 Repo 1 Mar 2020 Mar 2022 LIBOR + 2.00% to 2.75% 170,036 140,000 118,800 77,800 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 Feb 2021 Feb 2023 LIBOR + 2.25% (d) — 650,000 (e) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% 12,379 75,000 8,066 15,617 Conduit Repo 2 Nov 2018 Nov 2019 LIBOR + 2.25% 15,909 200,000 12,000 40,075 Conduit Repo 3 Feb 2020 Feb 2021 LIBOR + 2.10% 26,294 150,000 19,725 26,895 Conduit Repo 4 Oct 2018 Oct 2020 LIBOR + 2.25% — 100,000 — — MBS Repo 1 (f) (f) LIBOR + 1.90% 10,000 6,510 6,510 6,510 MBS Repo 2 Dec 2019 N/A LIBOR + 1.90% to 2.45% 107,507 73,971 73,971 222,672 MBS Repo 3 (g) (g) LIBOR + 1.32% to 1.95% 342,771 234,082 234,082 224,150 MBS Repo 4 (h) N/A LIBOR + 1.90% 170,690 225,000 7,318 77,318 Investing and Servicing Segment Property Mortgages Jun 2018 to N/A Various 260,461 231,219 203,082 177,411 Ireland Portfolio Mortgage May 2020 N/A EURIBOR + 1.69% 506,213 359,344 359,344 349,900 Woodstar I Portfolio Mortgages Nov 2025 to N/A 3.72% to 3.97% 366,522 276,748 276,748 276,748 Woodstar I Portfolio Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 304,865 132,866 132,866 133,418 Woodstar II Portfolio Mortgages Jan 2028 to Apr 2028 N/A 3.81% to 3.85% 522,601 417,669 417,669 116,745 Woodstar II Portfolio Government Financing Jun 2030 to Apr 2046 N/A 1.00% to 3.00% 136,554 7,361 7,361 — Medical Office Portfolio Mortgages Dec 2021 to Feb 2022 Dec 2023 to Feb 2024 LIBOR + 2.50% (i) 716,188 531,815 497,613 497,613 Master Lease Portfolio Mortgages Oct 2027 N/A 4.36% to 4.38% 465,600 265,900 265,900 265,900 Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (d) 959,442 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (d) — 100,000 — — FHLB Feb 2021 N/A Various 662,971 445,000 445,000 445,000 $ 9,243,290 $ 9,847,661 5,596,955 5,813,447 Unamortized premium/(discount) net 2,539 2,559 Unamortized deferred financing costs (45,180) (42,950) $ 5,554,314 $ 5,773,056 (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 $300.0 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 March 31, 2018. (g) Facility carries a rolling 12-month term which may reset monthly with the lender’s consent. Current maturity is March 2019. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of March 31, 2018. (h) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of September 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 2018 (remainder of) $ 300,195 $ 51,977 $ 352,172 2019 292,055 98,062 390,117 2020 944,805 373,218 1,318,023 2021 191,260 682,640 873,900 2022 689,231 26,548 715,779 Thereafter 265,760 1,681,204 1,946,964 Total $ 2,683,306 $ 2,913,649 $ 5,596,955
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 March 31, 2018 and December 31, 2017 (amounts in thousands): Class of Collateral March 31, 2018 December 31, 2017 Loans held-for-investment $ 2,324,300 $ 2,637,475 Loans held-for-sale 37,125 66,970 Investment securities 321,881 530,650 $ 2,683,306 $ 3,235,095

Unsecured Senior Notes (Tables)

Unsecured Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2018
Unsecured Senior Notes
Schedule of unsecured convertible senior notes outstanding	The following table is a summary of our unsecured senior notes outstanding as of March 31, 2018 and December 31, 2017 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization March 31, 2018 December 31, 2017 2018 Convertible Notes N/A N/A N/A N/A — 369,981 2019 Convertible Notes 4.00 % 5.35 % 1/15/2019 years 341,363 341,363 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 years 500,000 — 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 years 500,000 500,000 Total principal amount 2,291,363 2,161,344 Unamortized discount—Convertible Notes (8,905) (11,186) Unamortized discount—Senior Notes (19,497) (16,654) Unamortized deferred financing costs (10,330) (8,269) Carrying amount of debt components $ 2,252,631 $ 2,125,235 Carrying amount of conversion option equity components recorded in additional paid-in capital $ 21,636 $ 31,638 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible senior 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 March 31, 2018 (amounts in thousands, except rates): March 31, 2018 Conversion Spread Value - Shares (3) Conversion Conversion For the Three Months Ended March 31, Rate (1) Price (2) 2018 2017 2018 Notes N/A N/A — 1,200 2019 Notes 51.2214 $ 19.52 1,209 2,020 2023 Notes 38.5959 $ 25.91 — — 1,209 3,220 (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). (2) As of March 31, 2018 and 2017, the market price of the Company’s common stock was $20.95 and $22.58 per share, respectively. (3) The conversion spread value represents the portion of the Convertible Notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion.

Loan Securitization_Sale Acti40

Loan Securitization/Sale Activities (Tables)	3 Months Ended
	Mar. 31, 2018
LNR
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 months ended March 31, 2018 and 2017 (amounts in thousands): For the Three Months Ended March 31, 2018 2017 Fair value of loans sold $ 266,632 $ 179,296 Par value of loans sold 256,818 168,564 Repayment of repurchase agreements 193,844 126,518
Real Estate Investment Lending
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 March 31, 2018 $ 146,400 $ 145,273 $ — $ — 2017 38,750 37,079 — —

Derivatives and Hedging Activ41

Derivatives and Hedging Activity (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 4 1,441 EUR April 2018 Fx contracts – Sell Euros ("EUR") (1) 39 258,921 EUR April 2018 – March 2022 Fx contracts – Buy Pounds Sterling ("GBP") 2 5,145 GBP July 2019 Fx contracts – Sell Pounds Sterling ("GBP") 145 199,270 GBP April 2018 – December 2021 Interest rate swaps – Paying fixed rates 21 853,671 USD April 2019 – April 2028 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021 – March 2025 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 11 128,464 USD June 2018 – October 2021 Credit index instruments 8 49,000 USD September 2058 – November 2059 Total 234 (1) Includes 27 Fx contracts entered into to hedge our Euro currency exposure created by our acquisition of the Ireland Portfolio. As of March 31, 2018, these contracts have an aggregate notional amount of €223.2 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 March 31, 2018 and December 31, 2017 (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 March 31, December 31, March 31, December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 30 $ 25 $ — $ — Total derivatives designated as hedging instruments 30 25 — — Derivatives not designated as hedging instruments: Interest rate contracts 40,026 27,234 17,373 2,781 Foreign exchange contracts 651 6,400 40,227 33,419 Credit index instruments 360 239 — — Total derivatives not designated as hedging instruments 41,037 33,873 57,600 36,200 Total derivatives $ 41,067 $ 33,898 $ 57,600 $ 36,200 (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 March 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2018 $ 9 $ 4 $ — Interest expense 2017 $ 47 $ (29) $ — Interest expense
Schedule of Gain / (Loss) recognized in Income for Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended March 31, as Hedging Instruments Recognized in Income 2018 2017 Interest rate contracts Loss on derivative financial instruments $ 6,237 $ 1,468 Foreign exchange contracts Loss on derivative financial instruments (23,143) (5,742) Credit index instruments Loss on derivative financial instruments 47 (75) $ (16,859) $ (4,349)

Offsetting Assets and Liabili42

Offsetting Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Derivative assets $ 41,067 $ — $ 41,067 $ 956 $ — $ 40,111 Derivative liabilities $ 57,600 $ — $ 57,600 $ 956 $ 55,086 $ 1,558 Repurchase agreements 2,683,306 — 2,683,306 2,683,306 — — $ 2,740,906 $ — $ 2,740,906 $ 2,684,262 $ 55,086 $ 1,558 As of December 31, 2017 Derivative assets $ 33,898 $ — $ 33,898 $ 6,523 $ — $ 27,375 Derivative liabilities $ 36,200 $ — $ 36,200 $ 6,523 $ 15,333 $ 14,344 Repurchase agreements 3,235,095 — 3,235,095 3,235,095 — — $ 3,271,295 $ — $ 3,271,295 $ 3,241,618 $ 15,333 $ 14,344

Stockholders' Equity and Non-43

Stockholders' Equity and Non-Controlling Interests (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders’ Equity and Non-Controlling Interests
Schedule of dividends declared by board of directors	Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 2/28/18 3/30/18 3/28/18 4/13/18 $ 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 three months ended March 31, 2018 and 2017 (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
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, 2018 885,138 806,251 1,691,389 $ 21.95 Granted 459,118 — 459,118 21.25 Vested (263,886) (139,583) (403,469) 21.82 Forfeited — — — — Balance as of March 31, 2018 1,080,370 666,668 1,747,038 21.80

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 2017 Basic Earnings Income attributable to STWD common stockholders $ 99,932 $ 102,358 Less: Income attributable to participating shares not already deducted as non-controlling interests (721) (899) Basic earnings $ 99,211 $ 101,459 Diluted Earnings Income attributable to STWD common stockholders $ 99,932 $ 102,358 Less: Income attributable to participating shares not already deducted as non-controlling interests (721) (899) Add: Undistributed earnings to participating shares — — Less: Undistributed earnings reallocated to participating shares — — Diluted earnings $ 99,211 $ 101,459 Number of Shares: Basic — Average shares outstanding 260,664 258,997 Effect of dilutive securities — Convertible Notes 1,209 3,220 Effect of dilutive securities — Contingently issuable shares 229 121 Effect of dilutive securities — Unvested non-participating shares 22 103 Diluted — Average shares outstanding 262,124 262,441 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 0.38 $ 0.39 Diluted $ 0.38 $ 0.39

Accumulated Other Comprehensi45

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Balance at January 1, 2018 $ 25 $ 57,889 $ 12,010 $ 69,924 OCI before reclassifications 9 1,209 4,218 5,436 Amounts reclassified from AOCI (4) (46) — (50) Net period OCI 5 1,163 4,218 5,386 Balance at March 31, 2018 $ 30 $ 59,052 $ 16,228 $ 75,310 Three Months Ended March 31, 2017 Balance at January 1, 2017 $ (26) $ 44,929 $ (8,765) $ 36,138 OCI before reclassifications 47 1,931 2,007 3,985 Amounts reclassified from AOCI 29 (85) — (56) Net period OCI 76 1,846 2,007 3,929 Balance at March 31, 2017 $ 50 $ 46,775 $ (6,758) $ 40,067
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 months ended March 31, 2018 and 2017 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Three Months Affected Line Item Ended March 31, in the Statements Details about AOCI Components 2018 2017 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 4 $ (29) Interest expense Unrealized gains (losses) on available-for-sale securities: Interest realized upon collection 46 85 Interest income from investment securities Total reclassifications for the period $ 50 $ 56

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 723,733 $ — $ — $ 723,733 RMBS 240,853 — — 240,853 CMBS 23,969 — — 23,969 Equity security 13,322 13,322 — — Domestic servicing rights 24,945 — — 24,945 Derivative assets 41,067 — 41,067 — VIE assets 49,233,307 — — 49,233,307 Total $ 50,301,196 $ 13,322 $ 41,067 $ 50,246,807 Financial Liabilities: Derivative liabilities $ 57,600 $ — $ 57,600 $ — VIE liabilities 48,167,760 — 45,962,026 2,205,734 Total $ 48,225,360 $ — $ 46,019,626 $ 2,205,734 December 31, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 745,743 $ — $ — $ 745,743 RMBS 247,021 — — 247,021 CMBS 24,191 — — 24,191 Equity security 13,523 13,523 — — Domestic servicing rights 30,759 — — 30,759 Derivative assets 33,898 — 33,898 — VIE assets 51,045,874 — — 51,045,874 Total $ 52,141,009 $ 13,523 $ 33,898 $ 52,093,588 Financial Liabilities: Derivative liabilities $ 36,200 $ — $ 36,200 $ — VIE liabilities 50,000,010 — 47,811,073 2,188,937 Total $ 50,036,210 $ — $ 47,847,273 $ 2,188,937
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 months ended March 31, 2018 and 2017 (amounts in thousands): Domestic Loans Servicing VIE Three Months Ended March 31, 2018 Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2018 balance $ 745,743 $ 247,021 $ 24,191 $ 30,759 $ 51,045,874 $ (2,188,937) $ Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 7,800 — 555 (5,814) (2,027,208) 237,090 (1,787,577) Net accretion — 2,819 — — — — 2,819 Included in OCI — 1,163 — — — — 1,163 Purchases / Originations 277,259 — — — — — 277,259 Sales (266,632) — — — — — (266,632) Issuances — — — — — (7,948) (7,948) Cash repayments / receipts (40,437) (10,150) (777) — — (12,633) (63,997) Transfers into Level III — — — — — (530,888) (530,888) Transfers out of Level III — — — — — 208,258 208,258 Consolidation of VIEs — — — — 1,089,881 — 1,089,881 Deconsolidation of VIEs — — — — (875,240) 89,324 (785,916) March 31, 2018 balance $ 723,733 $ 240,853 $ 23,969 $ 24,945 $ 49,233,307 $ (2,205,734) $ Amount of total (losses) gains included in earnings attributable to assets still held at March 31, 2018 $ (640) $ 2,772 $ 555 $ (5,814) $ (2,027,208) $ 237,090 $ (1,793,245) Domestic Loans Servicing VIE Three Months Ended March 31, 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 10,593 — (1,343) (8,433) (6,537,225) 384,981 (6,151,427) Net accretion — 3,886 — — — — 3,886 Included in OCI — 1,846 — — — — 1,846 Purchases / Originations 445,887 — — — — — 445,887 Sales (179,296) — (10,434) — — — (189,730) Issuances — — — — — (4,759) (4,759) Cash repayments / receipts (197) (10,228) (5,766) — — (30,796) (46,987) Transfers into Level III — — — — — (63,970) (63,970) Transfers out of Level III — — — — — 129,452 129,452 Consolidation of VIEs — — — — 1,127,952 — 1,127,952 Deconsolidation of VIEs — — 1,469 — (1,528,137) 9,166 (1,517,502) March 31, 2017 balance $ 340,266 $ 249,419 $ 15,472 $ 46,649 $ 60,185,851 $ (2,161,295) $ 58,676,362 Amount of total (losses) gains included in earnings attributable to assets still held at March 31, 2017 $ (6) $ 3,795 $ 248 $ (8,433) $ (6,537,225) $ 384,981 $ (6,156,640)
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): March 31, 2018 December 31, 2017 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 $ 6,257,249 $ 6,335,551 $ 6,636,898 $ 6,729,302 HTM securities 236,319 234,226 433,468 428,338 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 5,628,589 $ 5,564,347 $ 5,847,241 $ 5,810,998 Unsecured senior notes 2,252,631 2,287,522 2,125,235 2,191,285
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) March 31, 2018 Technique Input March 31, 2018 December 31, 2017 Loans held-for-sale, fair value option $ 723,733 Discounted cash flow Yield (b) 4.8% - 6.0% 4.3% - 6.0% Duration (c) 1.8 - 13.0 years 1.8 - 12.1 years RMBS 240,853 Discounted cash flow Constant prepayment rate (a) 2.6% - 23.0% 2.5% - 21.4% Constant default rate (b) 1.0% - 5.6% 0.9% - 5.8% Loss severity (b) 15% - 74% (e) 14% - 75% (e) Delinquency rate (c) 4% - 33% 4% - 33% Servicer advances (a) 24% - 83% 20% - 83% Annual coupon deterioration (b) 0% - 0.8% 0% - 0.8% Putback amount per projected total collateral loss (d) 0% - 7% 0% - 7% CMBS 23,969 Discounted cash flow Yield (b) 0% - 295.6% 0% - 168.5% Duration (c) 0 - 9.7 years 0 - 9.7 years Domestic servicing rights 24,945 Discounted cash flow Debt yield (a) 7.75% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 49,233,307 Discounted cash flow Yield (b) 0% - 938.0% 0% - 826.6% Duration (c) 0 - 13.4 years 0 - 14.0 years VIE liabilities 2,205,734 Discounted cash flow Yield (b) 0% - 938.0% 0% - 826.6% Duration (c) 0 - 13.4 years 0 - 14.0 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. 80% and 81% of the portfolio falls within a range of 45%-80% as of March 31, 2018 and December 31, 2017, respectively.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2018
Income Taxes
Schedule of reconciliation of federal income tax determined using statutory federal tax rate to reported income tax provision	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 months ended March 31, 2018 and 2017 (dollars in thousands): For the Three Months Ended March 31, 2018 2017 Federal statutory tax rate $ 22,606 21.0 % $ 35,655 35.0 % REIT and other non-taxable income (20,343) (18.9) % (36,425) (35.8) % State income taxes 593 0.6 % (139) (0.1) % Federal benefit of state tax deduction (124) (0.1) % 49 — % Other 124 0.1 % (123) (0.1) % Effective tax rate $ 2,856 2.7 % $ (983) (1.0) %

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Data
Schedule of results of operations by business segment	The table below presents our results of operations for the three months ended March 31, 2018 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 $ 134,972 $ — $ 2,648 $ — $ $ — $ Interest income from investment securities 14,439 — 34,399 — 48,838 (33,569) 15,269 Servicing fees 165 — 33,434 — 33,599 (7,532) 26,067 Rental income — 66,710 14,400 — 81,110 — 81,110 Other revenues 194 101 228 52 575 (54) 521 Total revenues 149,770 66,811 85,109 52 (41,155) Costs and expenses: Management fees 480 — 18 30,051 30,549 93 30,642 Interest expense 32,021 16,534 5,095 33,803 87,453 (270) 87,183 General and administrative 6,695 1,859 21,020 2,482 32,056 86 32,142 Acquisition and investment pursuit costs 220 6 151 — 377 — 377 Costs of rental operations — 23,488 6,205 — 29,693 — 29,693 Depreciation and amortization 17 26,469 5,258 — 31,744 — 31,744 Loan loss allowance, net 1,538 — — — 1,538 — 1,538 Other expense 77 — 27 — 104 — 104 Total costs and expenses 41,048 68,356 37,774 66,336 (91) Income (loss) before other income (loss), income taxes and non-controlling interests 108,722 (1,545) 47,335 (66,284) 88,228 (41,064) 47,164 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 52,653 52,653 Change in fair value of servicing rights — — (9,168) — (9,168) 3,354 (5,814) Change in fair value of investment securities, net (704) — 13,979 — 13,275 (13,424) (149) Change in fair value of mortgage loans held-for-sale, net (1,692) — 9,492 — 7,800 — 7,800 Earnings (loss) from unconsolidated entities 1,444 (3,515) 1,596 — (475) (987) (1,462) Gain on sale of investments and other assets, net 279 3,942 6,439 — 10,660 — 10,660 (Loss) gain on derivative financial instruments, net (10,818) 1,919 5,042 (13,002) (16,859) — (16,859) Foreign currency gain (loss), net 13,550 2 (3) — 13,549 — 13,549 Other income, net 43 17 48 — 108 — 108 Total other income (loss) 2,102 2,365 27,425 (13,002) 18,890 41,596 60,486 Income (loss) before income taxes 110,824 820 74,760 (79,286) 532 Income tax provision (947) (1,261) (648) — (2,856) — (2,856) Net income (loss) 109,877 (441) 74,112 (79,286) 532 Net income attributable to non-controlling interests (361) (2,453) (1,516) — (4,330) (532) (4,862) Net income (loss) attributable to Starwood Property Trust, Inc . $ 109,516 $ (2,894) $ 72,596 $ (79,286) $ 99,932 $ — $ 99,932 The table below presents our results of operations for the three months ended March 31, 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 $ 109,046 $ — $ 2,837 $ — $ 111,883 $ — $ 111,883 Interest income from investment securities 12,719 — 34,836 — 47,555 (32,331) 15,224 Servicing fees 210 — 30,081 — 30,291 (16,189) 14,102 Rental income — 44,853 12,189 — 57,042 — 57,042 Other revenues 79 45 464 — 588 (119) 469 Total revenues 122,054 44,898 80,407 — 247,359 (48,639) 198,720 Costs and expenses: Management fees 454 — 18 23,862 24,334 50 24,384 Interest expense 19,957 10,207 4,358 31,607 66,129 (269) 65,860 General and administrative 4,211 1,381 22,580 2,170 30,342 87 30,429 Acquisition and investment pursuit costs 515 172 (16) — 671 — 671 Costs of rental operations — 15,391 5,487 — 20,878 — 20,878 Depreciation and amortization 17 17,157 5,054 — 22,228 — 22,228 Loan loss allowance, net (305) — — — (305) — (305) Other expense — — 758 — 758 — 758 Total costs and expenses 24,849 44,308 38,239 57,639 165,035 (132) 164,903 Income (loss) before other income (loss), income taxes and non-controlling interests 97,205 590 42,168 (57,639) 82,324 (48,507) 33,817 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 69,170 69,170 Change in fair value of servicing rights — — (9,637) — (9,637) 1,204 (8,433) Change in fair value of investment securities, net 172 — 19,045 — 19,217 (20,388) (1,171) Change in fair value of mortgage loans held-for-sale, net — — 10,593 — 10,593 — 10,593 Earnings from unconsolidated entities 470 2,461 1,017 — 3,948 (961) 2,987 Loss on sale of investments and other assets, net (56) — — — (56) — (56) (Loss) gain on derivative financial instruments, net (4,535) (511) 697 — (4,349) — (4,349) Foreign currency gain, net 4,863 — 1 — 4,864 — 4,864 Loss on extinguishment of debt — — — (5,916) (5,916) — (5,916) Other income, net — — 365 — 365 — 365 Total other income (loss) 914 1,950 22,081 (5,916) 19,029 49,025 68,054 Income (loss) before income taxes 98,119 2,540 64,249 (63,555) 101,353 518 101,871 Income tax (provision) benefit (215) — 1,198 — 983 — 983 Net income (loss) 97,904 2,540 65,447 (63,555) 102,336 518 102,854 Net (income) loss attributable to non-controlling interests (354) — 376 — 22 (518) (496) Net income (loss) attributable to Starwood Property Trust, Inc . $ 97,550 $ 2,540 $ 65,823 $ (63,555) $ 102,358 $ — $ 102,358
Schedule of condensed consolidated balance sheet by business segment	The table below presents our condensed consolidated balance sheet as of March 31, 2018 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 $ 30,048 $ 14,738 $ 55,167 $ 179,987 $ 279,940 $ 6,215 $ 286,155 Restricted cash 52,855 15,343 8,478 16,590 93,266 — 93,266 Loans held-for-investment, net 6,179,100 — 3,686 — 6,182,786 — 6,182,786 Loans held-for-sale 662,971 — 60,762 — 723,733 — 723,733 Loans transferred as secured borrowings 74,463 — — — 74,463 — 74,463 Investment securities 490,494 — 1,045,217 — 1,535,711 (1,021,248) 514,463 Properties, net — 289,372 — 2,988,864 — 2,988,864 Intangible assets — 118,522 85,999 — 204,521 (24,892) 179,629 Investment in unconsolidated entities 29,537 107,189 45,361 — 182,087 (21,975) 160,112 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 4,240 36,056 771 — 41,067 — 41,067 Accrued interest receivable 39,002 163 258 1,830 41,253 — 41,253 Other assets 328,622 88,708 50,830 2,083 470,243 (2,923) 467,320 VIE assets, at fair value — — — — — 49,233,307 Total Assets $ 7,891,332 $ $ 1,786,338 $ 200,490 $ $ 48,168,484 $ Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 18,332 $ 68,115 $ 48,925 $ 20,894 $ 156,266 $ 1,297 $ 157,563 Related-party payable 20 — 28 31,733 31,781 — 31,781 Dividends payable — — — 126,244 126,244 — 126,244 Derivative liabilities 19,576 20,630 330 17,064 57,600 — 57,600 Secured financing agreements, net 2,936,419 408,104 297,124 5,578,014 (23,700) 5,554,314 Unsecured senior notes, net — — — 2,252,631 2,252,631 — 2,252,631 Secured borrowings on transferred loans, net 74,275 — — — 74,275 — 74,275 VIE liabilities, at fair value — — — — — 48,167,760 Total Liabilities 3,048,622 457,387 2,745,690 8,276,811 48,145,357 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,671 2,671 — 2,671 Additional paid-in capital 2,054,473 850,185 562,815 1,260,710 4,728,183 — 4,728,183 Treasury stock — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 59,082 16,259 (31) — 75,310 — 75,310 Retained earnings (accumulated deficit) 2,718,567 (17,229) 759,611 (3,704,387) (243,438) — (243,438) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,832,122 849,215 1,322,395 (2,545,200) 4,458,532 — 4,458,532 Non-controlling interests in consolidated subsidiaries 10,588 205,884 6,556 — 223,028 23,127 246,155 Total Equity 4,842,710 1,328,951 4,681,560 23,127 4,704,687 Total Liabilities and Equity $ 7,891,332 $ $ 1,786,338 $ 200,490 $ $ 48,168,484 $ The table below presents our condensed consolidated balance sheet as of December 31, 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 $ 14,580 $ 10,388 $ 39,446 $ 299,308 $ 363,722 $ 5,726 $ 369,448 Restricted cash 21,555 12,491 10,289 4,490 48,825 — 48,825 Loans held-for-investment, net 6,558,699 — 3,796 — 6,562,495 — 6,562,495 Loans held-for-sale 613,287 — 132,456 — 745,743 — 745,743 Loans transferred as secured borrowings 74,403 — — — 74,403 — 74,403 Investment securities 694,012 — 1,024,143 — 1,718,155 (999,952) 718,203 Properties, net — 2,364,806 282,675 — 2,647,481 — 2,647,481 Intangible assets — 116,081 95,257 — 211,338 (28,246) 183,092 Investment in unconsolidated entities 45,028 110,704 50,759 — 206,491 (20,988) 185,503 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 6,487 26,775 636 — 33,898 — 33,898 Accrued interest receivable 46,650 68 243 786 47,747 — 47,747 Other assets 5,648 71,929 59,676 3,755 141,008 (2,868) 138,140 VIE assets, at fair value — — — — — 51,045,874 51,045,874 Total Assets $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 23,054 $ 62,890 $ 74,426 $ 23,536 $ 183,906 $ 1,211 $ 185,117 Related-party payable 20 — 31 42,318 42,369 — 42,369 Dividends payable — — — 125,916 125,916 — 125,916 Derivative liabilities 20,386 13,063 85 2,666 36,200 — 36,200 Secured financing agreements, net 3,466,487 1,621,885 411,526 296,858 5,796,756 (23,700) 5,773,056 Unsecured senior notes, net — — — 2,125,235 2,125,235 — 2,125,235 Secured borrowings on transferred loans 74,185 — — — 74,185 — 74,185 VIE liabilities, at fair value — — — — — 50,000,010 50,000,010 Total Liabilities 3,584,132 1,697,838 486,068 2,616,529 8,384,567 49,977,521 58,362,088 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,660 2,660 — 2,660 Additional paid-in capital 1,818,559 957,329 659,062 1,280,296 4,715,246 — 4,715,246 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 57,914 12,076 (66) — 69,924 — 69,924 Retained earnings (accumulated deficit) 2,609,050 (14,335) 687,015 (3,499,042) (217,312) — (217,312) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,485,523 955,070 1,346,011 (2,308,190) 4,478,414 — 4,478,414 Non-controlling interests in consolidated subsidiaries 10,694 60,334 7,734 — 78,762 22,025 100,787 Total Equity 4,496,217 1,015,404 1,353,745 (2,308,190) 4,557,176 22,025 4,579,201 Total Liabilities and Equity $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289

Business and Organization (Deta

Business and Organization (Details)	3 Months Ended
	Mar. 31, 2018segment
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) $ in Millions	Mar. 31, 2018USD ($)
Variable Interest Entities
REO assets as a percent of consolidated VIE assets	3.00%
Loans as a percent of consolidated VIE assets	97.00%
Fair Value Measurements
Permitted reinvestment under static investment in VIEs	$ 0

Acquisitions and Divestitures (

Acquisitions and Divestitures (Details) $ in Thousands, ft² in Millions	1 Months Ended		3 Months Ended			6 Months Ended	12 Months Ended
	Dec. 31, 2017USD ($)item	Sep. 30, 2017USD ($)ft²propertyitem	Mar. 31, 2018USD ($)propertyitemshares	Dec. 31, 2017USD ($)	Mar. 31, 2017USD ($)property	Mar. 31, 2018USD ($)propertyitemshares	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)item
Acquisitions and Divestitures
Principal Amount	$ 2,161,344		$ 2,291,363	$ 2,161,344		$ 2,291,363	$ 2,161,344
Properties, net	2,647,481		2,988,864	2,647,481		2,988,864	2,647,481
Number of properties sold | property					0
Gain on sale of property			10,300
Amount of non-controlling interest already held by a purchaser of a property			300
Liabilities assumed:
Revenues			260,587		$ 198,720
Net income (loss)			104,794		102,854
Depreciation and amortization			31,412		21,297
Loss on derivative financial instruments, net			(16,859)		(4,349)
Goodwill	$ 140,437		$ 140,437	140,437		$ 140,437	140,437
Woodstar II Portfolio
Acquisitions and Divestitures
Number of acquired properties closed | item	8		18
Number of properties in portfolio investment | item			27			27
Number of units in portfolio investment | item			6,109
Number of units acquired | item	1,740		4,057
Percentage of occupied portfolio			99.00%
Initial aggregate purchase price			$ 404,700			$ 404,700
Purchase price	$ 156,200		378,000
Contingent consideration	10,800		26,700	$ 10,800		26,700	10,800
Principal Amount			$ 300,900			$ 300,900
Maturity period			10 years	10 years
Amount issued	$ 116,700			$ 116,700			$ 116,700
Interest rate (as a percent)	3.81%		3.82%	3.81%		3.82%	3.81%
Acquisition-related costs			$ 3,600			$ 3,600
Woodstar II Portfolio | Class A Units
Acquisitions and Divestitures
Shares issued | shares			6,979,089
Woodstar II Portfolio | SPT Dolphin
Acquisitions and Divestitures
Aggregate gross acquisition price			$ 223,300			$ 308,100
Woodstar II Portfolio | SPT Dolphin | Class A Units
Acquisitions and Divestitures
Shares issued | shares						9,758,863
Right to receive additional shares | shares			1,301,414			1,800,335
Period after issuance date for redemption			6 months
Number of common stock per unit | item			1
Master Lease Portfolio
Acquisitions and Divestitures
Number of retail properties acquired | property		20
Number of industrial properties acquired | item		3
Purchase price		$ 553,300
Number of square feet of properties | ft²		5.3
Term of master lease agreements		24 years 7 months 6 days
Maximum borrowing capacity		$ 265,900
Acquisition-related costs		$ 3,700
Non-Controlling Interests
Acquisitions and Divestitures
Gain on sale of property			$ 1,300
Liabilities assumed:
Net income (loss)			$ 4,862		$ 496
LNR
Acquisitions and Divestitures
Number of properties in portfolio investment | property			2			2
Number of retail properties acquired | item			25
Purchase price							$ 291,700	$ 291,700	$ 291,700
Number of real estate business acquired | item							23	23	23
Aggregate gross acquisition price			$ 28,000
Number of properties sold | property			3		0
Proceeds from sale of property			$ 15,100
Gain on sale of property			6,400
Amount of non-controlling interest already held by a purchaser of a property			300
LNR | Non-Controlling Interests
Acquisitions and Divestitures
Gain on sale of property			$ 1,300
Disposed of by sale | Master Lease Portfolio
Acquisitions and Divestitures
Number of properties sold | item			2
Proceeds from sale of property			$ 37,200
Gain on sale of property			$ 3,900
Additional Mortgage Facilities Acquired | Woodstar II Portfolio
Acquisitions and Divestitures
Maturity period			17 years 8 months 12 days
Amount issued			$ 7,300			$ 7,300
Interest rate (as a percent)			2.88%			2.88%

Loans - Held for Investment (De

Loans - Held for Investment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Investments in loans
Total gross loans	$ 6,986,850	$ 7,386,971
Loan loss allowance (loans held-for-investment)	(5,868)	(4,330)	$ (9,483)	$ (9,788)
Carrying Value	6,980,982	7,382,641
Face Amount	6,992,019	7,397,182
Loans with variable rates of interest	$ 5,700,000
Loans with variable rates of interest (as a percent)	92.80%
Weighted average spread of loans (as a percent)	4.90%
Total loans held-for-investment
Investments in loans
Total gross loans	$ 6,188,654	6,566,825
Face Amount	6,213,417	6,595,684
Loans held-for-sale
Investments in loans
Total gross loans	723,733	745,743
Loans held-for-sale, residential
Investments in loans
Total gross loans	662,971	613,287
Face Amount	$ 642,752	$ 594,105
Weighted Average Life	6 years 7 months 6 days	5 years 4 months 24 days
Loans held-for-sale, residential | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	6.20%	6.20%
Loans held-for-sale, commercial
Investments in loans
Total gross loans	$ 60,762	$ 132,456
Face Amount	$ 60,850	$ 132,393
Weighted Average Life	10 years	10 years
Loans held-for-sale, commercial | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	5.00%	4.60%
Loans transferred as secured borrowings
Investments in loans
Total gross loans	$ 74,463	$ 74,403
Face Amount	$ 75,000	$ 75,000
Weighted Average Life	2 years	2 years 3 months 18 days
Loans transferred as secured borrowings | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	6.50%	6.20%
First mortgage loan participation | Total loans held-for-investment
Investments in loans
Total gross loans	$ 5,438,170	$ 5,818,804
Face Amount	$ 5,459,593	$ 5,843,623
Weighted Average Life	2 years 2 months 12 days	2 years
First mortgage loan participation | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	6.40%	6.20%
Subordinated mortgages | Total loans held-for-investment
Investments in loans
Total gross loans	$ 177,360	$ 177,115
Face Amount	$ 177,402	$ 177,386
Weighted Average Life	1 year 9 months 18 days	1 year 10 months 24 days
Subordinated mortgages | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	11.10%	10.80%
Mezzanine Loans
Investments in loans
Carrying Value	$ 689,000,000	$ 851,100
Mezzanine Loans | Total loans held-for-investment
Investments in loans
Total gross loans	547,048	545,299
Face Amount	$ 546,762	$ 545,355
Weighted Average Life	1 year 1 month 6 days	1 year 1 month 6 days
Mezzanine Loans | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	11.10%	11.00%
Other | Total loans held-for-investment
Investments in loans
Total gross loans	$ 26,076	$ 25,607
Face Amount	$ 29,660	$ 29,320
Weighted Average Life	3 years 7 months 6 days	3 years 10 months 24 days
Other | Total loans held-for-investment | Weighted-average
Investments in loans
Weighted Average Coupon (as a percent)	8.60%	8.50%

Loans - Ratings (Details)

Loans - Ratings (Details)	3 Months Ended
	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)
Investments in loans
Total gross loans	$ 6,986,850,000	$ 7,386,971,000
Total gross loans (as a percent)	100.00%	100.00%
Amount of loan impairment charges on individual loans held-for-investment	$ 0
Number of impaired individual mortgage loans held-for-investment | loan	0
Rating 1
Investments in loans
Total gross loans	$ 21,857,000	$ 22,270,000
Total gross loans (as a percent)	0.30%	0.30%
Rating 1 | Maximum
Investments in loans
LTV (as a percent)	65.00%
Rating 2
Investments in loans
Total gross loans	$ 2,538,204,000	$ 2,611,998,000
Total gross loans (as a percent)	36.30%	35.40%
Rating 2 | Maximum
Investments in loans
LTV (as a percent)	70.00%
Rating 3
Investments in loans
Total gross loans	$ 3,457,265,000	$ 3,836,019,000
Total gross loans (as a percent)	49.50%	51.90%
Rating 3 | Maximum
Investments in loans
LTV (as a percent)	80.00%
Rating 4
Investments in loans
Total gross loans	$ 183,452,000	$ 120,479,000
Total gross loans (as a percent)	2.60%	1.60%
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	$ 62,339,000	$ 50,462,000
Total gross loans (as a percent)	0.90%	0.70%
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	$ 723,733,000	$ 745,743,000
Total gross loans (as a percent)	10.40%	10.10%
Total loans held-for-investment
Investments in loans
Total gross loans	$ 6,188,654,000	$ 6,566,825,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans
Investments in loans
Total gross loans	5,438,170,000	5,818,804,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 1
Investments in loans
Total gross loans	1,789,000	2,003,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 2
Investments in loans
Total gross loans	2,221,941,000	2,462,268,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 3
Investments in loans
Total gross loans	2,980,626,000	3,183,592,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 4
Investments in loans
Total gross loans	183,452,000	120,479,000
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 5
Investments in loans
Total gross loans	50,362,000	50,462,000
Total loans held-for-investment | Subordinated mortgages
Investments in loans
Total gross loans	177,360,000	177,115,000
Total loans held-for-investment | Subordinated mortgages | Rating 2
Investments in loans
Total gross loans	32,049,000	11,927,000
Total loans held-for-investment | Subordinated mortgages | Rating 3
Investments in loans
Total gross loans	133,334,000	165,188,000
Total loans held-for-investment | Subordinated mortgages | Rating 5
Investments in loans
Total gross loans	11,977,000
Total loans held-for-investment | Mezzanine Loans
Investments in loans
Total gross loans	547,048,000	545,299,000
Total loans held-for-investment | Mezzanine Loans | Rating 2
Investments in loans
Total gross loans	209,751,000	137,803,000
Total loans held-for-investment | Mezzanine Loans | Rating 3
Investments in loans
Total gross loans	337,297,000	407,496,000
Total loans held-for-investment | Other
Investments in loans
Total gross loans	26,076,000	25,607,000
Total loans held-for-investment | Other | Rating 1
Investments in loans
Total gross loans	20,068,000	20,267,000
Total loans held-for-investment | Other | Rating 3
Investments in loans
Total gross loans	6,008,000	5,340,000
Loans held-for-sale
Investments in loans
Total gross loans	723,733,000	745,743,000
Loans held-for-sale | N/A
Investments in loans
Total gross loans	723,733,000	745,743,000
Loans transferred as secured borrowings
Investments in loans
Total gross loans	74,463,000	74,403,000
Loans transferred as secured borrowings | Rating 2
Investments in loans
Total gross loans	$ 74,463,000
Loans transferred as secured borrowings | Rating 3
Investments in loans
Total gross loans		$ 74,403,000

Loans - Activity in Portfolio (

Loans - Activity in Portfolio (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Activity in allowance for loan losses
Allowance for loan losses at the beginning of the period	$ 4,330	$ 9,788
Provision for loan losses	1,538	(305)
Allowance for loan losses at the end of the period	5,868	9,483
Recorded investment in loans related to the allowance for loan loss	245,791	499,539
Activity in loan portfolio
Balance at the beginning of the period	7,382,641	5,946,274
Acquisitions/origination/additional funding	1,178,560	1,067,021
Capitalized Interest	16,253	15,079
Basis of loans sold	(411,625)	(216,431)
Loan maturities/principal repayments	(1,225,815)	(230,931)
Discount accretion/premium amortization	12,052	7,519
Changes in fair value	7,800	10,593
Unrealized foreign currency translation gain	22,552	6,053
Change in loan loss allowance, net	(1,538)	305
Transfer to/from other asset classifications	102	603
Balance at the end of the period	$ 6,980,982	$ 6,606,085

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Investment Securities
Investment securities				$ 514,463	$ 718,203
Sales		$ 10,434
Principal collections	$ 219,230	76,050
Before consolidation of securitization VIEs
Investment Securities
Investment securities				$ 1,535,711	$ 1,718,155
Available-for-sale | One-month LIBOR
Investment Securities
Effective variable rate basis (as a percent)				1.883%	1.564%
Fair value option | VIE eliminations
Investment Securities
Investment securities				$ (1,021,248)	$ (999,952)
Held-to-maturity
Investment Securities
Principal collections	208,303	60,056
Held-to-maturity | Before consolidation of securitization VIEs
Investment Securities
Investment securities				236,319	433,468
RMBS
Investment Securities
Portion of securities with variable rate				202,200
RMBS | Available-for-sale
Investment Securities
Principal collections	10,150	10,228
Purchase Amortized Cost				191,698	199,029
Credit OTTI				(9,897)	(9,897)
Recorded Amortized Cost				181,801	189,132
Non-Credit OTTI					(94)
Gross Unrealized Gains				59,052	58,011
Gross Unrealized Losses					(28)
Net Fair Value Adjustment				59,052	57,889
Fair Value				$ 240,853	247,021
Portion of securities with variable rate					$ 207,000
Portion of securities with variable rate (as a percent)				84.00%	83.80%
Principal balance				$ 355,083	$ 366,711
Accretable yield	(55,712)		$ (55,712)	(51,794)	(55,712)
Non-accretable difference				(121,488)	(121,867)
Total discount				(173,282)	(177,579)
Amortized cost				181,801	189,132
Credit deteriorated RMBS				334,800	345,500
Accretable yield related to credit deteriorated RMBS				$ 45,600	$ 49,200
Changes to accretable yield
Balance at the beginning of the period	55,712
Accretion of discount	(2,819)
Transfer to/from non-accretable difference	(1,099)
Balance at the end of the period	51,794		55,712
Changes to non accretable difference
Balance at the beginning of the period	121,867
Principal write-downs	(1,478)
Transfer to/from non-accretable difference	1,099
Balance at the end of the period	$ 121,488		$ 121,867
RMBS | Available-for-sale | LIBOR
Investment Securities
Variable rate, weighted average spread (as a percent)	1.22%		1.22%
RMBS | Available-for-sale | B-
Investment Securities
Weighted Average Coupon (as a percent)				3.00%	2.80%
WAL	6 years 3 months 18 days		6 years 4 months 24 days
RMBS | Available-for-sale | Before consolidation of securitization VIEs
Investment Securities
Investment securities				$ 240,853	$ 247,021
CMBS | Fair value option
Investment Securities
Sales		10,434
Principal collections	$ 777	$ 5,766
CMBS | Fair value option | Before consolidation of securitization VIEs
Investment Securities
Investment securities				1,045,217	1,024,143
Equity Security, fair value option | Fair value option | Before consolidation of securitization VIEs
Investment Securities
Investment securities				13,322	$ 13,523
CMBS, fair value option
Investment Securities
Portion of securities with variable rate				$ 0

Investment Securities - AFS and

Investment Securities - AFS and Fair Value Option (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)security	Mar. 31, 2017USD ($)security	Dec. 31, 2017USD ($)
RMBS
Unrealized Losses
Portion of securities with variable rate	$ 202,200
RMBS | Available-for-sale
Investment Securities
Cost of third party management	$ 500
Estimated Fair Value
Securities with a loss less than 12 months			$ 10,321
Securities with a loss greater than 12 months			643
Unrealized Losses
Securities with a loss less than 12 months			(99)
Securities with a loss greater than 12 months			(23)
Number of securities with unrealized loss position | security	0	3
Portion of securities with variable rate			$ 207,000
CMBS | Fair value option
Unrealized Losses
Fair value of investment securities before consolidation of VIEs	$ 1,000,000
Unpaid principal balance of investment securities before consolidation of VIEs	4,100,000
Purchases in which fair value option was elected	30,200	$ 57,400
Purchase amount reflected as repayment of debt of consolidated VIEs	30,200	57,400
Sales in which fair value option was elected	7,900	15,200
Sale amount reflected as issuance of debt of consolidated VIEs	7,900	$ 4,800
CMBS, fair value option
Unrealized Losses
Portion of securities with variable rate	$ 0

Investment Securities - HTM (De

Investment Securities - HTM (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
HTM Securities
Net Carrying Amount (Amortized Cost)	$ 236,319	$ 433,468
Gross Unrealized Holdings Gains	4,564	2,649
Gross Unrealized Holdings Losses	(6,657)	(7,779)
Fair Value	234,226	428,338
HTM preferred equity interests
Less than one year	119,073
One to three years	66,211
Three to five years	51,035
Total	236,319	433,468
Preferred Equity Investment
HTM Securities
Net Carrying Amount (Amortized Cost)	20,472	20,358
Gross Unrealized Holdings Gains	637	647
Fair Value	21,109	21,005
HTM preferred equity interests
Three to five years	20,472
Total	20,472	20,358
CMBS
HTM Securities
Net Carrying Amount (Amortized Cost)	215,847	413,110
Gross Unrealized Holdings Gains	3,927	2,002
Gross Unrealized Holdings Losses	(6,657)	(7,779)
Fair Value	213,117	407,333
HTM preferred equity interests
Less than one year	119,073
One to three years	66,211
Three to five years	30,563
Total	$ 215,847	$ 413,110

Investment Securities - SEREF (

Investment Securities - SEREF (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2012	Dec. 31, 2017
Residential Real Estate
Equity Securities without Readily Determinable Fair Value, Amount	$ 24,760		$ 31,015
Ownership percentage	2.00%
SEREF
Residential Real Estate
Number of shares acquired		9,140,000
Equity Securities without Readily Determinable Fair Value, Amount	$ 13,300		$ 13,500

Properties (Details)

Properties (Details) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended			24 Months Ended
	Dec. 31, 2017USD ($)item	Sep. 30, 2017USD ($)ft²propertyitem	Mar. 31, 2018USD ($)propertyitem	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)ft²item	Dec. 31, 2015USD ($)ft²propertyitem	Dec. 31, 2016USD ($)ft²item
Properties
Number of properties sold | property			5
Proceeds from sale of operating properties			$ 52,300
Gain on sale of property			10,300
Amount of non-controlling interest already held by a purchaser of a property			300
Summary of properties
Properties, cost	$ 2,755,050		3,117,370	$ 2,755,050
Less: accumulated depreciation	(107,569)		(128,506)	(107,569)
Properties, net	2,647,481		2,988,864	2,647,481
Non-Controlling Interests
Properties
Gain on sale of property			1,300
Property Segment
Summary of properties
Land and land improvements	585,915		675,856	585,915
Buildings and building improvements	1,838,266		2,092,139	1,838,266
Furniture & fixtures	31,028		$ 40,888	31,028
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
LNR
Properties
Number of properties in portfolio investment | property			2
Number of retail properties acquired | item			25
Purchase price				291,700	$ 291,700	$ 291,700
Gain on sale of property			$ 6,400
Amount of non-controlling interest already held by a purchaser of a property			300
Summary of properties
Land and land improvements	86,711		87,536	86,711
Buildings and building improvements	212,094		219,552	212,094
Furniture & fixtures	$ 1,036		$ 1,399	$ 1,036
LNR | Minimum
Summary of properties
Land improvements, useful life			0 years
Building and building improvements, useful life			3 years
Furniture & fixtures, useful life			2 years
LNR | Maximum
Summary of properties
Land improvements, useful life			15 years
Building and building improvements, useful life			40 years
Furniture & fixtures, useful life			5 years
LNR | Non-Controlling Interests
Properties
Gain on sale of property			$ 1,300
Ireland Portfolio
Properties
Total assets acquired						514,300
Total liabilities assumed						283,000
Debt incurred to fund acquisition						$ 328,600
Area of property | ft²						600,000
Woodstar Portfolio
Properties
Number of units acquired | item			8,948
Number of properties in portfolio investment | item			32
Purchase price							$ 421,500
Number of acquired properties closed | item					14	18	32
Woodstar II Portfolio
Properties
Number of units acquired | item	1,740		4,057
Number of properties in portfolio investment | item			27
Number of units in portfolio investment | item			6,109
Percentage of occupied portfolio			99.00%
Purchase price	$ 156,200		$ 378,000
Acquisition-related costs			$ 3,600
Number of acquired properties closed | item	8		18
Medical Office Portfolio
Properties
Purchase price					$ 758,700
Area of property | ft²					1,900,000		1,900,000
Number of acquired properties closed | item					34
Master Lease Portfolio
Properties
Number of retail properties acquired | property		20
Number of industrial properties acquired | item		3
Purchase price		$ 553,300
Acquisition-related costs		$ 3,700
Term of master lease agreements		24 years 7 months 6 days
Number of square feet of properties | ft²		5,300,000
Maximum borrowing capacity		$ 265,900
Master Lease Portfolio | Disposed of by sale
Properties
Gain on sale of property			$ 3,900
Net Leased Office Property | Ireland Portfolio
Properties
Number of properties in portfolio investment | property						11
Multifamily Property | Ireland Portfolio
Properties
Number of properties in portfolio investment | property						1
Utah, Florida, Texas and Minnesota | Master Lease Portfolio | Minimum
Properties
Concentration risk (as a percent)		50.00%

Investment in Unconsolidated 60

Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 135,352		$ 154,488
Cost method, Carrying value	24,760		31,015
Investment in unconsolidated entities	160,112		$ 185,503
Earnings (loss) from unconsolidated entities	(1,462)	$ 2,987
Distributions of earnings from unconsolidated entities	2,675	$ 2,643
Carrying value over (under) equity in net assets	$ 0
Retail Fund
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	33.00%		33.00%
Equity method, Carrying value	$ 107,189		$ 110,704
Investor entity which owns equity in two real estate services providers
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%		50.00%
Equity method, Carrying value	$ 9,338		$ 9,312
Equity interests in commercial real estate
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%		50.00%
Equity method, Carrying value	$ 7,051		$ 23,192
Cash proceeds	$ 16,700
Equity interests in commercial real estate | Minimum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%		50.00%
Equity interest in a residential mortgage originator
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 7,358		$ 7,742
Carrying value over (under) equity in net assets	1,600
Various - Equity method
Investment in Unconsolidated Entities
Equity method, Carrying value	$ 4,416		$ 3,538
Various - Equity method | Minimum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	25.00%		25.00%
Various - Equity method | Maximum
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	50.00%		50.00%
Equity interest in a servicing and advisory business
Investment in Unconsolidated Entities
Equity method, Participation / Ownership %	6.00%		6.00%
Equity method, Carrying value	$ 6,207		$ 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
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%
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%
Various
Investment in Unconsolidated Entities
Cost method, Carrying value	$ 9,328		$ 9,556
Various | Minimum
Investment in Unconsolidated Entities
Cost method, Ownership %	0.00%		0.00%
Various | Maximum
Investment in Unconsolidated Entities
Cost method, Ownership %	3.00%		3.00%

Goodwill and Intangibles (Detai

Goodwill and Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Summary of Intangible Assets
Gross carrying value	$ 262,941	$ 255,806
Accumulated amortization	(83,312)	(72,714)
Net carrying value	179,629	183,092
In-place lease
Summary of Intangible Assets
Gross carrying value	200,444	187,816
Accumulated amortization	(75,070)	(65,351)
Net carrying value	125,374	122,465
Favorable lease
Summary of Intangible Assets
Gross carrying value	37,552	37,231
Accumulated amortization	(8,242)	(7,363)
Net carrying value	29,310	29,868
Domestic Servicing Rights
Summary of Intangible Assets
Gross carrying value	24,945	30,759
Net carrying value	24,945	30,759
Domestic Servicing Rights | Before consolidation of securitization VIEs
Intangible Assets
Servicing rights intangibles	49,800	59,000
Domestic Servicing Rights | VIE eliminations
Intangible Assets
Servicing rights intangibles	$ 24,900	$ 28,200

Goodwill and Intangibles - Acti

Goodwill and Intangibles - Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Summary of activity within intangible assets
Balance as of beginning of period	$ 183,092
Amortization	(11,076)
Sales	(372)
Foreign exchange gain	(1,111)
Impairment	(25)
Changes in fair value due to changes in inputs and assumptions	(5,814)
Balance as of end of period	179,629
Future amortization expense for the European servicing rights, in-place lease intangible assets and favorable lease intangible assets
2018 (remainder of)	31,982
2,019	22,532
2,020	17,088
2,021	14,780
2,022	12,100
Thereafter	56,202
Total	154,684
Woodstar II Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	10,015
REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	2,698
In-place lease
Summary of activity within intangible assets
Balance as of beginning of period	122,465
Amortization	(9,959)
Sales	(246)
Foreign exchange gain	(876)
Impairment	(25)
Balance as of end of period	125,374
In-place lease | Woodstar II Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	10,015
In-place lease | REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	2,248
Favorable lease
Summary of activity within intangible assets
Balance as of beginning of period	29,868
Amortization	(1,117)
Sales	(126)
Foreign exchange gain	(235)
Balance as of end of period	29,310
Favorable lease | REIS Equity Portfolio
Summary of activity within intangible assets
Acquisition of indefinite-lived intangibles	450
Domestic Servicing Rights
Summary of activity within intangible assets
Balance as of beginning of period	30,759
Changes in fair value due to changes in inputs and assumptions	(5,814)
Balance as of end of period	$ 24,945

Secured Financing Agreements (D

Secured Financing Agreements (Details) $ in Thousands	Feb. 28, 2018USD ($)	Feb. 28, 2018USD ($)	Mar. 31, 2018USD ($)loan	Jan. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Secured Financing Agreements
Principal Amount			$ 2,291,363		$ 2,161,344
Unamortized deferred financing costs			(10,330)		(8,269)
Carrying Value			5,554,314		5,773,056
Lender 4 Repo 2 Facility
Secured Financing Agreements
Maximum borrowing capacity			600,000
Maximum facility size subject to certain conditions			$ 1,000,000
Lender 9 Repo 1 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			1.65%
Lender 11 Repo 1 Facility | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.75%
Lender 7 Secured Financing
Secured Financing Agreements
Maximum borrowing capacity	$ 300,000	$ 300,000	$ 300,000	$ 450,000
Maximum facility size subject to certain conditions	$ 650,000	$ 650,000	$ 650,000	$ 650,000
Lender 7 Secured Financing | LIBOR
Secured Financing Agreements
Interest rate (as a percent)	2.25%	2.25%		2.75%
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 | Minimum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)			4.36%
Master Lease Portfolio | Maximum | LIBOR
Secured Financing Agreements
Interest rate (as a percent)			4.38%
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired
Secured Financing Agreements
Maximum borrowing capacity			$ 34,800
Number of mortgage facilities executed | loan			2
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.62%
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired | Weighted-average
Secured Financing Agreements
Maturity period			4 years 2 months 12 days
Woodstar I Portfolio Government Financing | Additional Mortgage Facilities Acquired
Secured Financing Agreements
Interest rate (as a percent)	2.88%	2.88%
Principal Amount	$ 7,300	$ 7,300
Maturity period	17 years 8 months 12 days
Woodstar II Portfolio Mortgages | Additional Mortgage Facilities Acquired
Secured Financing Agreements
Interest rate (as a percent)	3.82%	3.82%
Principal Amount	$ 300,900	$ 300,900
Maturity period		10 years
Medical Office Portfolio Mortgages
Secured Financing Agreements
Floor interest rate (as a percent)			0.25%
Secured financing agreements
Secured Financing Agreements
Pledged Asset Carrying Value			$ 9,243,290
Maximum Facility Size			9,847,661
Principal Amount			5,596,955		5,813,447
Unamortized premium (discount), net			2,539		2,559
Unamortized deferred financing costs			(45,180)		(42,950)
Secured financing agreements | Lender 1 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value			1,495,507
Maximum Facility Size			2,000,000
Principal Amount			$ 1,024,845		1,137,654
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			$ 238,904
Maximum Facility Size			500,000
Principal Amount			$ 172,632		238,428
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
Secured Financing Agreements
Principal Amount					75,291
Secured financing agreements | Lender 4 Repo 2 Facility
Secured Financing Agreements
Pledged Asset Carrying Value			$ 642,531
Maximum Facility Size			1,000,000
Principal Amount			$ 215,240		215,372
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			$ 622,440
Maximum Facility Size			600,000
Principal Amount			$ 423,007		494,353
Secured financing agreements | Lender 6 Repo 1 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.00%
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			$ 466,322
Maximum Facility Size			359,780
Principal Amount			$ 359,780		332,815
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			$ 20,583
Maximum Facility Size			15,396
Principal Amount			15,396		65,762
Secured financing agreements | Lender 10 Repo 1 Facility
Secured Financing Agreements
Pledged Asset Carrying Value			170,036
Maximum Facility Size			140,000
Principal Amount			$ 118,800		77,800
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
Secured financing agreements | Lender 11 Repo 2 Facility
Secured Financing Agreements
Maximum Facility Size			$ 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
Maximum Facility Size			$ 650,000
Secured financing agreements | Lender 7 Secured Financing | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.25%
Secured financing agreements | Lender 8 Secured Financing
Secured Financing Agreements
Pledged Asset Carrying Value			$ 12,379
Maximum Facility Size			75,000
Principal Amount			$ 8,066		15,617
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			$ 15,909
Maximum Facility Size			200,000
Principal Amount			$ 12,000		40,075
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			$ 26,294
Maximum Facility Size			150,000
Principal Amount			$ 19,725		26,895
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
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
Maximum Facility Size			6,510
Principal Amount			$ 6,510		6,510
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			$ 107,507
Maximum Facility Size			73,971
Principal Amount			$ 73,971		222,672
Secured financing agreements | MBS Repo 2 Facility | Minimum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			1.90%
Secured financing agreements | MBS Repo 2 Facility | Maximum | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.45%
Secured financing agreements | MBS Repo 3 Facility
Secured Financing Agreements
Pledged Asset Carrying Value			$ 342,771
Maximum Facility Size			234,082
Principal Amount			$ 234,082		224,150
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			$ 170,690
Maximum Facility Size			225,000
Principal Amount			$ 7,318		77,318
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)			1.90%
Secured financing agreements | Master Lease Portfolio
Secured Financing Agreements
Pledged Asset Carrying Value			$ 465,600
Maximum Facility Size			265,900
Principal Amount			265,900		265,900
Secured financing agreements | Investing and Servicing Segment Property Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value			260,461
Maximum Facility Size			231,219
Principal Amount			203,082		177,411
Secured financing agreements | Ireland Portfolio Mortgage
Secured Financing Agreements
Pledged Asset Carrying Value			506,213
Maximum Facility Size			359,344
Principal Amount			$ 359,344		349,900
Secured financing agreements | Ireland Portfolio Mortgage | EURIBOR
Secured Financing Agreements
Pricing margin (as a percent)			1.69%
Secured financing agreements | Woodstar I Portfolio Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value			$ 366,522
Maximum Facility Size			276,748
Principal Amount			$ 276,748		276,748
Secured financing agreements | Woodstar I Portfolio Mortgages | Minimum
Secured Financing Agreements
Interest rate (as a percent)			3.72%
Secured financing agreements | Woodstar I Portfolio Mortgages | Maximum
Secured Financing Agreements
Interest rate (as a percent)			3.97%
Secured financing agreements | Woodstar I Portfolio Government Financing
Secured Financing Agreements
Pledged Asset Carrying Value			$ 304,865
Maximum Facility Size			132,866
Principal Amount			$ 132,866		133,418
Secured financing agreements | Woodstar I Portfolio Government Financing | Minimum
Secured Financing Agreements
Interest rate (as a percent)			1.00%
Secured financing agreements | Woodstar I Portfolio Government Financing | Maximum
Secured Financing Agreements
Interest rate (as a percent)			5.00%
Secured financing agreements | Woodstar II Portfolio Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value			$ 522,601
Maximum Facility Size			417,669
Principal Amount			$ 417,669		116,745
Secured financing agreements | Woodstar II Portfolio Mortgages | Minimum
Secured Financing Agreements
Interest rate (as a percent)			3.81%
Secured financing agreements | Woodstar II Portfolio Mortgages | Maximum
Secured Financing Agreements
Interest rate (as a percent)			3.85%
Secured financing agreements | Woodstar II Portfolio Government Financing
Secured Financing Agreements
Pledged Asset Carrying Value			$ 136,554
Maximum Facility Size			7,361
Principal Amount			$ 7,361
Secured financing agreements | Woodstar II Portfolio Government Financing | Minimum
Secured Financing Agreements
Interest rate (as a percent)			1.00%
Secured financing agreements | Woodstar II Portfolio Government Financing | Maximum
Secured Financing Agreements
Interest rate (as a percent)			3.00%
Secured financing agreements | Medical Office Portfolio Mortgages
Secured Financing Agreements
Pledged Asset Carrying Value			$ 716,188
Maximum Facility Size			531,815
Principal Amount			$ 497,613		497,613
Secured financing agreements | Medical Office Portfolio Mortgages | LIBOR
Secured Financing Agreements
Pricing margin (as a percent)			2.50%
Secured financing agreements | Term Loan
Secured Financing Agreements
Pledged Asset Carrying Value			$ 959,442
Maximum Facility Size			300,000
Principal Amount			$ 300,000		300,000
Secured financing agreements | Term Loan | 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
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			$ 662,971
Maximum Facility Size			445,000
Principal Amount			$ 445,000		$ 445,000

Secured Financing Agreements -

Secured Financing Agreements - Principal Repayments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Repayment of secured financings
Total	$ 2,291,363		$ 2,161,344
Secured financing agreements
Repayment of secured financings
2018 (remainder of)	352,172
2,019	390,117
2,020	1,318,023
2,021	873,900
2,022	715,779
Thereafter	1,946,964
Total	5,596,955		$ 5,813,447
Amortization of deferred financing costs from secured financing agreements included in interest expense	5,100	$ 4,700
Repurchase Agreements
Repayment of secured financings
2018 (remainder of)	300,195
2,019	292,055
2,020	944,805
2,021	191,260
2,022	689,231
Thereafter	265,760
Total	2,683,306
Other Secured Financing
Repayment of secured financings
2018 (remainder of)	51,977
2,019	98,062
2,020	373,218
2,021	682,640
2,022	26,548
Thereafter	1,681,204
Total	$ 2,913,649

Secured Financing Agreements 65

Secured Financing Agreements - Repurchase Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Secured Financing Agreements
Long-term Debt, Gross	$ 2,291,363	$ 2,161,344
Secured financing agreements
Secured Financing Agreements
Long-term Debt, Gross	5,596,955	5,813,447
Repurchase Agreements
Secured Financing Agreements
Outstanding balance	2,683,306	3,235,095
Long-term Debt, Gross	$ 2,683,306
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks	33.00%
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale	27.00%
Repurchase Agreements | Loans held for investment
Secured Financing Agreements
Outstanding balance	$ 2,324,300	2,637,475
Repurchase Agreements | Loans held-for-sale
Secured Financing Agreements
Outstanding balance	37,125	66,970
Repurchase Agreements | Investment securities.
Secured Financing Agreements
Outstanding balance	$ 321,881	$ 530,650

Unsecured Secured Notes (Detail

Unsecured Secured Notes (Details) $ / shares in Units, shares in Thousands	Jan. 29, 2018USD ($)	Mar. 29, 2017USD ($)	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2017USD ($)
Convertible Senior Notes
Principal Amount			$ 2,291,363,000		$ 2,161,344,000
Conversion Spread Value - Shares | shares			1,209	3,220
Unamortized deferred financing costs			$ (10,330,000)		(8,269,000)
Carrying amount of debt components			2,252,631,000		2,125,235,000
Carrying amount of conversion option equity components recorded in additional paid-in capital			21,636,000		31,638,000
Principal amount of notes, basis for conversion			1,000
Interest expense			$ 87,183,000	$ 65,860,000
Closing share price (in dollars per share) | $ / shares			$ 20.95	$ 22.58
Loss on extinguishment of debt				$ 5,916,000
Convertible senior notes due 2017
Convertible Senior Notes
Amount by which if-converted value of the Notes are less than principal amount			$ 47,900,000
2018 Notes
Convertible Senior Notes
Principal Amount					$ 369,981,000
Coupon Rate (as a percent)					4.55%
Conversion Spread Value - Shares | shares				1,200
Amount by which if-converted value of the Notes exceed principal amount			25,000,000
2019 Notes
Convertible Senior Notes
Principal Amount			$ 341,363,000		$ 341,363,000
Coupon Rate (as a percent)			4.00%
Effective Rate (as a percent)			5.35%
Remaining Period of Amortization			9 months 18 days
Conversion Rate			51.2214
Conversion price (in dollars per share) | $ / shares			$ 19.52
Conversion Spread Value - Shares | shares			1,209	2,020
2021 Senior Notes 3.625%
Convertible Senior Notes
Amount issued	$ 500,000,000
Principal Amount			$ 500,000,000
Coupon Rate (as a percent)	3.625%		3.63%
Effective Rate (as a percent)			3.89%
Remaining Period of Amortization			2 years 9 months 18 days
2021 Senior Notes 3.625% | Debt instrument redemption period one
Convertible Senior Notes
Percentage of principal amount that may be redeemed	100.00%
2021 Senior Notes 3.625% | Debt instrument redemption period two
Convertible Senior Notes
Percentage of principal amount that may be redeemed	40.00%
2021 Senior Notes 5.00%
Convertible Senior Notes
Principal Amount			$ 700,000,000		700,000,000
Coupon Rate (as a percent)			5.00%
Effective Rate (as a percent)			5.32%
Remaining Period of Amortization			3 years 8 months 12 days
2023 Notes
Convertible Senior Notes
Amount issued		$ 250,000,000
Principal Amount			$ 250,000,000		250,000,000
Coupon Rate (as a percent)		4.375%	4.38%
Effective Rate (as a percent)			4.86%
Remaining Period of Amortization			5 years
Conversion Rate			38.5959
Conversion price (in dollars per share) | $ / shares			$ 25.91
Amount by which if-converted value of the Notes are less than principal amount			$ 47,900,000
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital				$ 3,755,000
2025 Senior Notes
Convertible Senior Notes
Principal Amount			$ 500,000,000		500,000,000
Coupon Rate (as a percent)			4.75%
Effective Rate (as a percent)			5.04%
Remaining Period of Amortization			7 years
Convertible Senior Notes
Convertible Senior Notes
Unamortized discount			$ (8,905,000)		(11,186,000)
Interest expense			11,300,000	19,500,000
Debt repurchased amount		$ 250,700,000	$ 0
Conversion of principal not included in computation of diluted EPS (in shares) | shares			25,900
Convertible Senior Notes | 2018 Notes
Convertible Senior Notes
Amount of debt repurchased		230,000,000
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital		$ 18,100,000
Loss on extinguishment of debt				$ 5,900,000
Convertible Senior Notes | 2019 Notes
Convertible Senior Notes
Amount by which if-converted value of the Notes exceed principal amount			$ 25,000,000
Senior Notes
Convertible Senior Notes
Unamortized discount			$ (19,497,000)		$ (16,654,000)

Loan Securitization_Sale Acti67

Loan Securitization/Sale Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
LNR
Loan Transfer Activities
Fair value of loans sold	$ 266,632	$ 179,296
Par value of loans sold	256,818	168,564
Repayment of purchase agreements	193,844	126,518
Real Estate Investment Lending
Loan Transfers Accounted for as Sales
Face Amount	146,400	38,750
Proceeds	$ 145,273	$ 37,079

Derivatives and Hedging Activ68

Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) - Mar. 31, 2018 € in Thousands, £ in Thousands, $ in Thousands	GBP (£)instrumentitem	USD ($)instrumentitem	EUR (€)instrumentitem
Derivatives
Number of contracts	234	234	234
Foreign exchange contracts | EUR | Long
Derivatives
Number of contracts	4	4	4
Aggregate notional amount | €			€ 1,441
Foreign exchange contracts | EUR | Short
Derivatives
Number of contracts	39	39	39
Aggregate notional amount | €			€ 258,921
Foreign exchange contracts | EUR | Short | Ireland Portfolio
Derivatives
Number of contracts	27	27	27
Aggregate notional amount | €			€ 223,200
Foreign exchange contracts | GBP | Long
Derivatives
Number of contracts	2	2	2
Aggregate notional amount | £	£ 5,145
Foreign exchange contracts | GBP | Short
Derivatives
Number of contracts	145	145	145
Aggregate notional amount | £	£ 199,270
Interest rate contracts | Derivatives designated as hedging instruments
Derivatives
Number of contracts | instrument	2	2	2
Interest rate swaps - Paying fixed rates | USD
Derivatives
Number of contracts	21	21	21
Aggregate notional amount | $		$ 853,671
Interest rate swaps - Receiving fixed rates | USD
Derivatives
Number of contracts	2	2	2
Aggregate notional amount | $		$ 970,000
Interest rate caps | EUR
Derivatives
Number of contracts	2	2	2
Aggregate notional amount | €			€ 294,000
Interest rate caps | USD
Derivatives
Number of contracts	11	11	11
Aggregate notional amount | $		$ 128,464
Credit spread instrument | USD
Derivatives
Number of contracts	8	8	8
Aggregate notional amount | $		$ 49,000

Derivatives and Hedging Activ69

Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	$ 41,067	$ 33,898
Fair Value of Derivatives in a Liability Position	57,600	36,200
Derivatives designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	30	25
Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	41,037	33,873
Fair Value of Derivatives in a Liability Position	57,600	36,200
Interest rate contracts | Derivatives designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	30	25
Interest rate contracts | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	40,026	27,234
Fair Value of Derivatives in a Liability Position	17,373	2,781
Foreign exchange contracts | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	651	6,400
Fair Value of Derivatives in a Liability Position	40,227	33,419
Credit spread instrument | Derivatives not designated as hedging instruments
Fair value of derivative instruments
Fair Value of Derivatives in an Asset Position	$ 360	$ 239

Derivatives and Hedging Activ70

Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivatives
Loss on derivative financial instruments, net	$ (16,859)	$ (4,349)
Derivatives not designated as hedging instruments
Derivatives
Loss on derivative financial instruments, net	(16,859)	(4,349)
Interest rate contracts | Derivatives not designated as hedging instruments
Derivatives
Loss on derivative financial instruments, net	6,237	1,468
Foreign exchange contracts | Derivatives not designated as hedging instruments
Derivatives
Loss on derivative financial instruments, net	(23,143)	(5,742)
Credit spread instrument | Derivatives not designated as hedging instruments
Derivatives
Loss on derivative financial instruments, net	47	(75)
Cash flow hedges | Interest rate contracts | Derivatives designated as hedging instruments
Derivatives
Gain (Loss) Recognized in OCI (effective portion)	9	47
Gain (Loss) Reclassified from AOCI into Income (effective portion)	$ 4	$ (29)

Offsetting Assets and Liabili71

Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Net Amounts of Assets Presented in the Statement of Financial Position	$ 41,067	$ 33,898
Liabilities
Gross Amounts of Recognized Liabilities	2,740,906	3,271,295
Net Amounts of Liabilities Presented in the Statement of Financial	2,740,906	3,271,295
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	2,684,262	3,241,618
Cash Collateral Pledged	55,086	15,333
Net Amount	1,558	14,344
Derivatives
Assets
Gross Amounts of Recognized Assets	41,067	33,898
Net Amounts of Assets Presented in the Statement of Financial Position	41,067	33,898
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	956	6,523
Net Amount	40,111	27,375
Liabilities
Gross Amounts of Recognized Liabilities	57,600	36,200
Net Amounts of Liabilities Presented in the Statement of Financial	57,600	36,200
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	956	6,523
Cash Collateral Pledged	55,086	15,333
Net Amount	1,558	14,344
Repurchase agreements
Liabilities
Gross Amounts of Recognized Liabilities	2,683,306	3,235,095
Net Amounts of Liabilities Presented in the Statement of Financial	2,683,306	3,235,095
Gross Amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 2,683,306	$ 3,235,095

Variable Interest Entities (Det

Variable Interest Entities (Details) $ in Thousands	Mar. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Variable interest entities
VIE Assets	$ 49,233,307	$ 51,045,874
VIE Liabilities	48,167,760	50,000,010
Investment securities	514,463	718,203
Debt obligations to beneficial interest holders, unpaid principal balances	2,291,363	2,161,344
Interest in VIE	160,112	$ 185,503
Primary beneficiary | Accounting Standards Update 2015-02
Variable interest entities
VIE Assets	785,500
VIE Liabilities	511,500
Primary beneficiary | SPT Dolphin | Accounting Standards Update 2015-02
Variable interest entities
VIE assets	670,800
VIE liabilities	$ 427,000
Not primary beneficiary
Variable interest entities
Number of CDO structures currently in default | item	2
Maximum risk of loss related to VIEs, on fair value basis	$ 24,000
Not primary beneficiary | Accounting Standards Update 2015-02 | Measurement Period Adjustments
Variable interest entities
Interest in VIE	123,800
Not primary beneficiary | Securitization SPEs
Variable interest entities
Debt obligations to beneficial interest holders, unpaid principal balances	$ 4,700,000

Related-Party Transactions (Det

Related-Party Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)	Jan. 31, 2018USD ($)item	Mar. 31, 2017USD ($)shares	May 31, 2015shares	Mar. 31, 2018USD ($)itemshares	Mar. 31, 2017USD ($)shares	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Related-Party Transactions
Granted (in shares) | shares					459,118
Investment in unconsolidated entities	$ 160,112				$ 160,112		$ 185,503
Originations of mortgage financing					$ 1,178,560	$ 1,067,021
Spread on interest rate basis (as a percent)	4.90%				4.90%
Retail Fund
Related-Party Transactions
Equity interest acquired (as a percent)	33.00%				33.00%		33.00%
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Related-Party Transactions
Granted (in shares) | shares			1,000,000	675,000
Award vesting period			3 years	3 years
Manager
Related-Party Transactions
Base management fee incurred					$ 17,500	16,900
Base management fee payable	$ 17,500				17,500		$ 17,100
Incentive fee incurred					9,600	5,500
Incentive fees payable	9,600				9,600		22,000
Executive compensation and other reimbursable expenses					2,100	$ 1,600
Executive compensation and other reimbursable expense payable	4,600				$ 4,600		3,300
Manager | Restricted stock units
Related-Party Transactions
Granted (in shares) | shares					189,813	138,264
Grant date fair value					$ 4,000	$ 3,100
Award vesting period					3 years	3 years
Share-based compensation expense					$ 500	$ 600
Manager | Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Related-Party Transactions
Share-based compensation expense					$ 2,900	1,500
LNR
Related-Party Transactions
Number of retail properties acquired | item					25
Purchase price							$ 291,700	$ 291,700	$ 291,700
CMBS | LNR | REO Portfolio
Related-Party Transactions
Net real estate assets	27,700		$ 0		$ 27,700	$ 0
Purchase price					$ 28,000
First mortgage loan participation | Purchase of First Mortgage Loan Participation
Related-Party Transactions
Originations of mortgage financing		$ 130,000
Number of U.S power plants secured | item		4
Number of properties | item		4
First mortgage loan participation | Purchase of First Mortgage Loan Participation | LIBOR
Related-Party Transactions
Spread on interest rate basis (as a percent)		4.00%
First mortgage loan participation | Purchase of first mortgage loan participation for acquisition of luxury resort, spain from SEREF
Related-Party Transactions
Originations of mortgage financing	$ 55,000

Stockholders' Equity and Non-74

Stockholders' Equity and Non-Controlling Interests (Details) - USD ($)	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 29, 2017	Feb. 28, 2017
Stockholders' Equity
Dividend declared (in dollars per share)	$ 0.48	$ 0.48	$ 0.48
Shares issued under ATM Agreement		0	0
Authorized amount of share repurchases							$ 500,000,000
Common stock repurchased (in shares)		573,255	0
Cost of common stock repurchased		$ 12,090,000
Remaining capacity under repurchase program		250,100,000		$ 250,100,000
Proceeds from Issuance of Common Stock		159,000	$ 183,000
Net income attributable to non-controlling interests		4,862,000	496,000
Non-controlling interest		300,000
Payment to acquire non-controlling interest		229,397,000	$ 1,726,000
Minority Interest		246,155,000		246,155,000	$ 100,787,000
Convertible Senior Notes
Stockholders' Equity
Common stock repurchased (in shares)			0
Debt repurchased amount		0		$ 0		$ 250,700,000
Woodstar II Portfolio | Class A Units
Stockholders' Equity
Net income attributable to non-controlling interests		$ 2,500,000
Shares issued		6,979,089
Woodstar II Portfolio | Class A Units | SPT Dolphin
Stockholders' Equity
Shares issued				9,758,863
Right to receive additional shares		1,301,414		1,800,335
Period after issuance date for redemption		6 months
REIS Equity Portfolio
Stockholders' Equity
Non-controlling interest		$ 300,000
Payment to acquire non-controlling interest		$ 3,300,000

Stockholders' Equity and Non-75

Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($)	1 Months Ended		3 Months Ended
	Mar. 31, 2017	May 31, 2015	Mar. 31, 2018	May 31, 2017
Equity Incentive Plans
Granted (in shares)			459,118
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			10,300,000
Starwood Property Trust, Inc. Equity Plan
Equity Incentive Plans
Granted (in shares)			459,118
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units
Equity Incentive Plans
Granted (in shares)	1,000,000	675,000
Awards granted, fair value	$ 22,240,000	$ 16,511,000
Award vesting period	3 years	3 years

Stockholders' Equity and Non-76

Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	1,691,389
Granted (in shares)	459,118
Vested (in shares)	(403,469)
Balance at the end of the period (in shares)	1,747,038
Weighted Average Grant Date Fair Value (per share)
Balance at the beginning of period (in dollars per share) | $ / shares	$ 21.95
Granted (in dollars per share) | $ / shares	21.25
Vested (in dollars per share) | $ / shares	21.82
Balance at the end of period (in dollars per share) | $ / shares	$ 21.80
Starwood Property Trust, Inc. Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	885,138
Granted (in shares)	459,118
Vested (in shares)	(263,886)
Balance at the end of the period (in shares)	1,080,370
Starwood Property Trust, Inc. Manager Equity Plan
Non-Vested Shares and Share Equivalents activity
Balance at the beginning of the period (in shares)	806,251
Vested (in shares)	(139,583)
Balance at the end of the period (in shares)	666,668

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Continuing Operations:
Basic - Income attributable to STWD common stockholders	$ 99,932	$ 102,358
Less: Income attributable to participating shares not already deducted as non-controlling interests	(721)	(899)
Basic earnings	99,211	101,459
Continuing Operations:
Basic - Income attributable to STWD common stockholders	99,932	102,358
Less: Income attributable to participating shares not already deducted as non-controlling interests	(721)	(899)
Diluted earnings	$ 99,211	$ 101,459
Number of Shares:
Basic - Average shares outstanding	260,664	258,997
Effect of dilutive securities - Convertible Notes (in shares)	1,209	3,220
Effect of dilutive securities - Contingently issuable shares (in shares)	229	121
Effect of dilutive securities - Unvested non-participating shares	22	103
Diluted - Average shares outstanding	262,124	262,441
Basic:
Basic (in dollars per share)	$ 0.38	$ 0.39
Diluted:
Diluted (in dollars per share)	$ 0.38	$ 0.39

Earnings per Share - Dilutive a

Earnings per Share - Dilutive and Antidilutive securities (Details) shares in Thousands, item in Millions, instrument in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)instrumentitemshares	Mar. 31, 2017shares
Antidilutive securities and effect of dilutive securities
Effect of dilutive securities - Convertible Notes (in shares)	1,209	3,220
Class A Units
Antidilutive securities and effect of dilutive securities
Potential shares of common stock contingently issuable upon conversion of the Convertible Notes | item	9.8
Convertible senior notes due 2017
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes are less than principal amount | $	$ 47.9
2023 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes are less than principal amount | $	$ 47.9
Effect of dilutive securities - Convertible Notes (in 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	27.1
Shares excluded from diluted EPS calculations	25,900
Convertible Senior Notes | 2019 Notes
Antidilutive securities and effect of dilutive securities
Amount by which if-converted value of the Notes exceed principal amount | $	$ 25
Participating securities
Antidilutive securities and effect of dilutive securities
Number of anti-dilutive common shares excluded from the calculation of diluted income per share	11,300	1,900

Accumulated Other Comprehensi79

Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in AOCI by component
Beginning balance	$ 69,924	$ 36,138
OCI before reclassifications	5,436	3,985
Amounts reclassified from AOCI	(50)	(56)
Net period OCI	5,386	3,929
Ending balance	75,310	40,067
Effective Portion of Cumulative Loss on Cash Flow Hedges
Changes in AOCI by component
Beginning balance	25	(26)
OCI before reclassifications	9	47
Amounts reclassified from AOCI	(4)	29
Net period OCI	5	76
Ending balance	30	50
Cumulative Unrealized Gain on Available-for-Sale Securities
Changes in AOCI by component
Beginning balance	57,889	44,929
OCI before reclassifications	1,209	1,931
Amounts reclassified from AOCI	(46)	(85)
Net period OCI	1,163	1,846
Ending balance	59,052	46,775
Foreign Currency Translation
Changes in AOCI by component
Beginning balance	12,010	(8,765)
OCI before reclassifications	4,218	2,007
Net period OCI	4,218	2,007
Ending balance	$ 16,228	$ (6,758)

Accumulated Other Comprehensi80

Accumulated Other Comprehensive Income - Impact of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income
Interest expense	$ (87,183)	$ (65,860)
Interest income from investment securities	15,269	15,224
Net income	104,794	102,854
Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Net income	50	56
Effective Portion of Cumulative Loss on Cash Flow Hedges | Interest rate contracts | Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Interest expense	4	(29)
Cumulative Unrealized Gain on Available-for-Sale Securities | Amounts Reclassified from AOCI
Accumulated Other Comprehensive Income
Interest income from investment securities	$ 46	$ 85

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets and liabilities measured at fair value
Permitted reinvestment under static investment in VIEs	$ 0
Marketable securities	514,463	$ 718,203
Domestic servicing rights	24,945	30,759
Derivative assets	41,067	33,898
VIE Assets	49,233,307	51,045,874
Derivative liabilities	57,600	36,200
VIE Liabilities	48,167,760	50,000,010
Fair value measurements on recurring basis
Assets and liabilities measured at fair value
Loans held-for-sale, fair value option	723,733	745,743
Derivative assets	41,067	33,898
VIE Assets	49,233,307	51,045,874
Total	50,301,196	52,141,009
Derivative liabilities	57,600	36,200
VIE Liabilities	48,167,760	50,000,010
Total	48,225,360	50,036,210
Fair value measurements on recurring basis | Domestic Servicing Rights
Assets and liabilities measured at fair value
Domestic servicing rights	24,945	30,759
Fair value measurements on recurring basis | RMBS
Assets and liabilities measured at fair value
Available-for-sale securities	240,853	247,021
Fair value measurements on recurring basis | CMBS
Assets and liabilities measured at fair value
Available-for-sale securities	23,969	24,191
Fair value measurements on recurring basis | Equity Security, fair value option
Assets and liabilities measured at fair value
Marketable securities	13,322	13,523
Fair value measurements on recurring basis | Level I
Assets and liabilities measured at fair value
Total	13,322	13,523
Fair value measurements on recurring basis | Level I | Equity Security, fair value option
Assets and liabilities measured at fair value
Marketable securities	13,322	13,523
Fair value measurements on recurring basis | Level II
Assets and liabilities measured at fair value
Derivative assets	41,067	33,898
Total	41,067	33,898
Derivative liabilities	57,600	36,200
VIE Liabilities	45,962,026	47,811,073
Total	46,019,626	47,847,273
Fair value measurements on recurring basis | Level III
Assets and liabilities measured at fair value
Loans held-for-sale, fair value option	723,733	745,743
VIE Assets	49,233,307	51,045,874
Total	50,246,807	52,093,588
VIE Liabilities	2,205,734	2,188,937
Total	2,205,734	2,188,937
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights
Assets and liabilities measured at fair value
Domestic servicing rights	24,945	30,759
Fair value measurements on recurring basis | Level III | RMBS
Assets and liabilities measured at fair value
Available-for-sale securities	240,853	247,021
Fair value measurements on recurring basis | Level III | CMBS
Assets and liabilities measured at fair value
Available-for-sale securities	$ 23,969	$ 24,191

Fair Value - Level III (Details

Fair Value - Level III (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Total realized and unrealized gains (losses):
Included in earnings: Net accretion	$ 6,841	$ 4,257
Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	49,904,651	64,941,714
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(1,787,577)	(6,151,427)
Included in earnings: Net accretion	2,819	3,886
Included in OCI	1,163	1,846
Purchases / Originations	277,259	445,887
Sales	(266,632)	(189,730)
Issuances	(7,948)	(4,759)
Cash repayments / receipts	(63,997)	(46,987)
Transfers into Level III	(530,888)	(63,970)
Transfers out of Level III	208,258	129,452
Consolidations of VIEs	1,089,881	1,127,952
Deconsolidations of VIEs	(785,916)	(1,517,502)
Balance at the end of the period	48,041,073	58,676,362
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(1,793,245)	(6,156,640)
VIE liabilities | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	(2,188,937)	(2,585,369)
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	237,090	384,981
Issuances	(7,948)	(4,759)
Cash repayments / receipts	(12,633)	(30,796)
Transfers into Level III	(530,888)	(63,970)
Transfers out of Level III	208,258	129,452
Deconsolidations of VIEs	89,324	9,166
Balance at the end of the period	(2,205,734)	(2,161,295)
Amount of total (losses) gains included in earnings attributable to assets still held at period end	237,090	384,981
Loans held-for-sale | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	745,743	63,279
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	7,800	10,593
Purchases / Originations	277,259	445,887
Sales	(266,632)	(179,296)
Cash repayments / receipts	(40,437)	(197)
Balance at the end of the period	723,733	340,266
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(640)	(6)
RMBS | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	247,021	253,915
Total realized and unrealized gains (losses):
Included in earnings: Net accretion	2,819	3,886
Included in OCI	1,163	1,846
Cash repayments / receipts	(10,150)	(10,228)
Balance at the end of the period	240,853	249,419
Amount of total (losses) gains included in earnings attributable to assets still held at period end	2,772	3,795
CMBS | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	24,191	31,546
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	555	(1,343)
Sales		(10,434)
Cash repayments / receipts	(777)	(5,766)
Deconsolidations of VIEs		1,469
Balance at the end of the period	23,969	15,472
Amount of total (losses) gains included in earnings attributable to assets still held at period end	555	248
Domestic Servicing Rights | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	30,759	55,082
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(5,814)	(8,433)
Balance at the end of the period	24,945	46,649
Amount of total (losses) gains included in earnings attributable to assets still held at period end	(5,814)	(8,433)
VIE Assets | Level III
Changes in financial assets classified as Level III
Balance at the beginning of the period	51,045,874	67,123,261
Total realized and unrealized gains (losses):
Included in earnings: Change in fair value / gain on sale	(2,027,208)	(6,537,225)
Consolidations of VIEs	1,089,881	1,127,952
Deconsolidations of VIEs	(875,240)	(1,528,137)
Balance at the end of the period	49,233,307	60,185,851
Amount of total (losses) gains included in earnings attributable to assets still held at period end	$ (2,027,208)	$ (6,537,225)

Fair Value - Financial Instrume

Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial assets not carried at fair value:
HTM securities	$ 236,319	$ 433,468
Financial liabilities not carried at fair value:
Unsecured senior notes	2,252,631	2,125,235
Carrying Value
Financial assets not carried at fair value:
Loans held-for-investment and loans transferred as secured borrowings	6,257,249	6,636,898
HTM securities	236,319	433,468
Financial liabilities not carried at fair value:
Secured financing agreements and secured borrowings on transferred loans	5,628,589	5,847,241
Unsecured senior notes	2,252,631	2,125,235
Fair Value
Financial assets not carried at fair value:
Loans held-for-investment and loans transferred as secured borrowings	6,335,551	6,729,302
HTM securities	234,226	428,338
Financial liabilities not carried at fair value:
Secured financing agreements and secured borrowings on transferred loans	5,564,347	5,810,998
Unsecured senior notes	$ 2,287,522	$ 2,191,285

Fair Value - Significant unobse

Fair Value - Significant unobservable inputs (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis
Carrying Value	$ 61,126,855	$ 62,941,289
Carrying Value	56,422,168	$ 58,362,088
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	$ 2,205,734
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)	938.00%	826.60%
Duration	13 years 4 months 24 days	14 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	$ 723,733
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)	4.80%	4.30%
Duration	1 year 9 months 18 days	1 year 9 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)	6.00%	6.00%
Duration	13 years	12 years 1 month 6 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	$ 240,853
Portfolio percentage	80.00%	81.00%
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)	2.60%	2.50%
Constant default rate (as a percent)	1.00%	0.90%
Loss severity (as a percent)	15.00%	14.00%
Delinquency rate (as a percent)	4.00%	4.00%
Servicer advances (as a percent)	24.00%	20.00%
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%
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)	23.00%	21.40%
Constant default rate (as a percent)	5.60%	5.80%
Loss severity (as a percent)	74.00%	75.00%
Delinquency rate (as a percent)	33.00%	33.00%
Servicer advances (as a percent)	83.00%	83.00%
Annual coupon deterioration (as a percent)	0.80%	0.80%
Putback amount per projected total collateral loss (as a percent)	7.00%	7.00%
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	$ 23,969
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)	295.60%	168.50%
Duration	9 years 8 months 12 days	9 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	$ 24,945
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	$ 49,233,307
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)	938.00%	826.60%
Duration	13 years 4 months 24 days	14 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Income Taxes
Assets	$ 61,126,855	$ 62,941,289
Cash	286,155	369,448
LNR | TRS entities
Income Taxes
Assets	1,200,000	673,100
Cash	$ 70,600	$ 24,100

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of statutory tax to effective tax
Federal statutory tax rate	$ 22,606	$ 35,655
REIT and other non-taxable income	(20,343)	(36,425)
State income taxes	593	(139)
Federal benefit of state tax deduction	(124)	49
Other	124	(123)
Total	$ 2,856	$ (983)
Reconciliation of statutory tax rate to effective tax rate
Federal statutory tax rate (as a percent)	21.00%	35.00%
REIT and other non-taxable income (as a percent)	(18.90%)	(35.80%)
State income taxes (as a percent)	0.60%	(0.10%)
Federal benefit of state tax deduction (as a percent)	(0.10%)
Other (as a percent)	0.10%	(0.10%)
Effective tax rate (as a percent)	2.70%	(1.00%)

Commitments and Contingencies (

Commitments and Contingencies (Details) - Commitments $ in Billions	Mar. 31, 2018USD ($)loan
Operating leases
Number of loans with future funding commitments | loan	50
Value of loans with future funding commitments	$ 1.7
Value of loans with future funding commitments expected to fund	$ 1.4

Segment Data - Results of Opera

Segment Data - Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Interest income from loans	$ 137,620	$ 111,883
Interest income from investment securities	15,269	15,224
Servicing fees	26,067	14,102
Rental income	81,110	57,042
Other revenues	521	469
Total revenues	260,587	198,720
Costs and expenses:
Management fees	30,642	24,384
Interest expense	87,183	65,860
General and administrative	32,142	30,429
Acquisition and investment pursuit costs	377	671
Costs of rental operations	29,693	20,878
Depreciation and amortization	31,744	22,228
Loan loss allowance, net	1,538	(305)
Other expense	104	758
Total costs and expenses	213,423	164,903
Income before other income (loss), income taxes and non-controlling interests	47,164	33,817
Other income (loss):
Change in net assets related to consolidated VIEs	52,653	69,170
Change in fair value of servicing rights	(5,814)	(8,433)
Change in fair value of investment securities, net	(149)	(1,171)
Change in fair value of mortgage loans held-for-sale, net	7,800	10,593
Earnings (loss) from unconsolidated entities	(1,462)	2,987
Gain (loss) on sale of investments and other assets, net	10,660	(56)
Loss on derivative financial instruments, net	(16,859)	(4,349)
Foreign currency gain (loss), net	13,549	4,864
Loss on extinguishment of debt		(5,916)
Other income, net	108	365
Total other income	60,486	68,054
Income before income taxes	107,650	101,871
Income tax (provision) benefit	(2,856)	983
Net income	104,794	102,854
Net income attributable to non-controlling interests	(4,862)	(496)
Net income attributable to Starwood Property Trust, Inc.	99,932	102,358
Operating Segments and Corporate
Revenues:
Interest income from loans	137,620	111,883
Interest income from investment securities	48,838	47,555
Servicing fees	33,599	30,291
Rental income	81,110	57,042
Other revenues	575	588
Total revenues	301,742	247,359
Costs and expenses:
Management fees	30,549	24,334
Interest expense	87,453	66,129
General and administrative	32,056	30,342
Acquisition and investment pursuit costs	377	671
Costs of rental operations	29,693	20,878
Depreciation and amortization	31,744	22,228
Loan loss allowance, net	1,538	(305)
Other expense	104	758
Total costs and expenses	213,514	165,035
Income before other income (loss), income taxes and non-controlling interests	88,228	82,324
Other income (loss):
Change in fair value of servicing rights	(9,168)	(9,637)
Change in fair value of investment securities, net	13,275	19,217
Change in fair value of mortgage loans held-for-sale, net	7,800	10,593
Earnings (loss) from unconsolidated entities	(475)	3,948
Gain (loss) on sale of investments and other assets, net	10,660	(56)
Loss on derivative financial instruments, net	(16,859)	(4,349)
Foreign currency gain (loss), net	13,549	4,864
Loss on extinguishment of debt		(5,916)
Other income, net	108	365
Total other income	18,890	19,029
Income before income taxes	107,118	101,353
Income tax (provision) benefit	(2,856)	983
Net income	104,262	102,336
Net income attributable to non-controlling interests	(4,330)	22
Net income attributable to Starwood Property Trust, Inc.	99,932	102,358
Operating segment | Real Estate Investment Lending
Revenues:
Interest income from loans	134,972	109,046
Interest income from investment securities	14,439	12,719
Servicing fees	165	210
Other revenues	194	79
Total revenues	149,770	122,054
Costs and expenses:
Management fees	480	454
Interest expense	32,021	19,957
General and administrative	6,695	4,211
Acquisition and investment pursuit costs	220	515
Depreciation and amortization	17	17
Loan loss allowance, net	1,538	(305)
Other expense	77
Total costs and expenses	41,048	24,849
Income before other income (loss), income taxes and non-controlling interests	108,722	97,205
Other income (loss):
Change in fair value of investment securities, net	(704)	172
Change in fair value of mortgage loans held-for-sale, net	(1,692)
Earnings (loss) from unconsolidated entities	1,444	470
Gain (loss) on sale of investments and other assets, net	279	(56)
Loss on derivative financial instruments, net	(10,818)	(4,535)
Foreign currency gain (loss), net	13,550	4,863
Other income, net	43
Total other income	2,102	914
Income before income taxes	110,824	98,119
Income tax (provision) benefit	(947)	(215)
Net income	109,877	97,904
Net income attributable to non-controlling interests	(361)	(354)
Net income attributable to Starwood Property Trust, Inc.	109,516	97,550
Operating segment | LNR
Revenues:
Interest income from loans	2,648	2,837
Interest income from investment securities	34,399	34,836
Servicing fees	33,434	30,081
Rental income	14,400	12,189
Other revenues	228	464
Total revenues	85,109	80,407
Costs and expenses:
Management fees	18	18
Interest expense	5,095	4,358
General and administrative	21,020	22,580
Acquisition and investment pursuit costs	151	(16)
Costs of rental operations	6,205	5,487
Depreciation and amortization	5,258	5,054
Other expense	27	758
Total costs and expenses	37,774	38,239
Income before other income (loss), income taxes and non-controlling interests	47,335	42,168
Other income (loss):
Change in fair value of servicing rights	(9,168)	(9,637)
Change in fair value of investment securities, net	13,979	19,045
Change in fair value of mortgage loans held-for-sale, net	9,492	10,593
Earnings (loss) from unconsolidated entities	1,596	1,017
Gain (loss) on sale of investments and other assets, net	6,439
Loss on derivative financial instruments, net	5,042	697
Foreign currency gain (loss), net	(3)	1
Other income, net	48	365
Total other income	27,425	22,081
Income before income taxes	74,760	64,249
Income tax (provision) benefit	(648)	1,198
Net income	74,112	65,447
Net income attributable to non-controlling interests	(1,516)	376
Net income attributable to Starwood Property Trust, Inc.	72,596	65,823
Operating segment | Property Segment
Revenues:
Rental income	66,710	44,853
Other revenues	101	45
Total revenues	66,811	44,898
Costs and expenses:
Interest expense	16,534	10,207
General and administrative	1,859	1,381
Acquisition and investment pursuit costs	6	172
Costs of rental operations	23,488	15,391
Depreciation and amortization	26,469	17,157
Total costs and expenses	68,356	44,308
Income before other income (loss), income taxes and non-controlling interests	(1,545)	590
Other income (loss):
Earnings (loss) from unconsolidated entities	(3,515)	2,461
Gain (loss) on sale of investments and other assets, net	3,942
Loss on derivative financial instruments, net	1,919	(511)
Foreign currency gain (loss), net	2
Other income, net	17
Total other income	2,365	1,950
Income before income taxes	820	2,540
Income tax (provision) benefit	(1,261)
Net income	(441)	2,540
Net income attributable to non-controlling interests	(2,453)
Net income attributable to Starwood Property Trust, Inc.	(2,894)	2,540
Corporate
Revenues:
Other revenues	52
Total revenues	52
Costs and expenses:
Management fees	30,051	23,862
Interest expense	33,803	31,607
General and administrative	2,482	2,170
Total costs and expenses	66,336	57,639
Income before other income (loss), income taxes and non-controlling interests	(66,284)	(57,639)
Other income (loss):
Loss on derivative financial instruments, net	(13,002)
Loss on extinguishment of debt		(5,916)
Total other income	(13,002)	(5,916)
Income before income taxes	(79,286)	(63,555)
Net income	(79,286)	(63,555)
Net income attributable to Starwood Property Trust, Inc.	(79,286)	(63,555)
LNR VIEs
Revenues:
Interest income from investment securities	(33,569)	(32,331)
Servicing fees	(7,532)	(16,189)
Other revenues	(54)	(119)
Total revenues	(41,155)	(48,639)
Costs and expenses:
Management fees	93	50
Interest expense	(270)	(269)
General and administrative	86	87
Total costs and expenses	(91)	(132)
Income before other income (loss), income taxes and non-controlling interests	(41,064)	(48,507)
Other income (loss):
Change in net assets related to consolidated VIEs	52,653	69,170
Change in fair value of servicing rights	3,354	1,204
Change in fair value of investment securities, net	(13,424)	(20,388)
Earnings (loss) from unconsolidated entities	(987)	(961)
Total other income	41,596	49,025
Income before income taxes	532	518
Net income	532	518
Net income attributable to non-controlling interests	$ (532)	$ (518)

Segment Data - Balance sheets (

Segment Data - Balance sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 286,155	$ 369,448
Restricted cash	93,266	48,825
Loans held-for-investment, net	6,182,786	6,562,495
Loans held-for-sale	723,733	745,743
Loans transferred as secured borrowings	74,463	74,403
Investment securities	514,463	718,203
Properties, net	2,988,864	2,647,481
Intangible assets	179,629	183,092
Investment in unconsolidated entities	160,112	185,503
Goodwill	140,437	140,437
Derivative assets	41,067	33,898
Accrued interest receivable	41,253	47,747
Other assets	467,320	138,140
VIE assets, at fair value	49,233,307	51,045,874
Total Assets	61,126,855	62,941,289
Liabilities:
Accounts payable, accrued expenses and other liabilities	157,563	185,117
Related-party payable	31,781	42,369
Dividends payable	126,244	125,916
Derivative liabilities	57,600	36,200
Secured financing agreements, net	5,554,314	5,773,056
Unsecured senior notes, net	2,252,631	2,125,235
Secured borrowings on transferred loans, net	74,275	74,185
VIE liabilities, at fair value	48,167,760	50,000,010
Total Liabilities	56,422,168	58,362,088
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,671	2,660
Additional paid-in capital	4,728,183	4,715,246
Treasury stock	(104,194)	(92,104)
Accumulated other comprehensive income (loss)	75,310	69,924	$ 40,067	$ 36,138
Retained earnings (accumulated deficit)	(243,438)	(217,312)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,458,532	4,478,414
Non-controlling interests in consolidated subsidiaries	246,155	100,787
Total Equity	4,704,687	4,579,201	$ 4,543,355	$ 4,560,073
Total Liabilities and Equity	61,126,855	62,941,289
Operating Segments and Corporate
Assets:
Cash and cash equivalents	279,940	363,722
Restricted cash	93,266	48,825
Loans held-for-investment, net	6,182,786	6,562,495
Loans held-for-sale	723,733	745,743
Loans transferred as secured borrowings	74,463	74,403
Investment securities	1,535,711	1,718,155
Properties, net	2,988,864	2,647,481
Intangible assets	204,521	211,338
Investment in unconsolidated entities	182,087	206,491
Goodwill	140,437	140,437
Derivative assets	41,067	33,898
Accrued interest receivable	41,253	47,747
Other assets	470,243	141,008
Total Assets	12,958,371	12,941,743
Liabilities:
Accounts payable, accrued expenses and other liabilities	156,266	183,906
Related-party payable	31,781	42,369
Dividends payable	126,244	125,916
Derivative liabilities	57,600	36,200
Secured financing agreements, net	5,578,014	5,796,756
Unsecured senior notes, net	2,252,631	2,125,235
Secured borrowings on transferred loans, net	74,275	74,185
Total Liabilities	8,276,811	8,384,567
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,671	2,660
Additional paid-in capital	4,728,183	4,715,246
Treasury stock	(104,194)	(92,104)
Accumulated other comprehensive income (loss)	75,310	69,924
Retained earnings (accumulated deficit)	(243,438)	(217,312)
Total Starwood Property Trust, Inc. Stockholders' Equity	4,458,532	4,478,414
Non-controlling interests in consolidated subsidiaries	223,028	78,762
Total Equity	4,681,560	4,557,176
Total Liabilities and Equity	12,958,371	12,941,743
Operating segment | Real Estate Investment Lending
Assets:
Cash and cash equivalents	30,048	14,580
Restricted cash	52,855	21,555
Loans held-for-investment, net	6,179,100	6,558,699
Loans held-for-sale	662,971	613,287
Loans transferred as secured borrowings	74,463	74,403
Investment securities	490,494	694,012
Investment in unconsolidated entities	29,537	45,028
Derivative assets	4,240	6,487
Accrued interest receivable	39,002	46,650
Other assets	328,622	5,648
Total Assets	7,891,332	8,080,349
Liabilities:
Accounts payable, accrued expenses and other liabilities	18,332	23,054
Related-party payable	20	20
Derivative liabilities	19,576	20,386
Secured financing agreements, net	2,936,419	3,466,487
Secured borrowings on transferred loans, net	74,275	74,185
Total Liabilities	3,048,622	3,584,132
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	2,054,473	1,818,559
Accumulated other comprehensive income (loss)	59,082	57,914
Retained earnings (accumulated deficit)	2,718,567	2,609,050
Total Starwood Property Trust, Inc. Stockholders' Equity	4,832,122	4,485,523
Non-controlling interests in consolidated subsidiaries	10,588	10,694
Total Equity	4,842,710	4,496,217
Total Liabilities and Equity	7,891,332	8,080,349
Operating segment | LNR
Assets:
Cash and cash equivalents	55,167	39,446
Restricted cash	8,478	10,289
Loans held-for-investment, net	3,686	3,796
Loans held-for-sale	60,762	132,456
Investment securities	1,045,217	1,024,143
Properties, net	289,372	282,675
Intangible assets	85,999	95,257
Investment in unconsolidated entities	45,361	50,759
Goodwill	140,437	140,437
Derivative assets	771	636
Accrued interest receivable	258	243
Other assets	50,830	59,676
Total Assets	1,786,338	1,839,813
Liabilities:
Accounts payable, accrued expenses and other liabilities	48,925	74,426
Related-party payable	28	31
Derivative liabilities	330	85
Secured financing agreements, net	408,104	411,526
Total Liabilities	457,387	486,068
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	562,815	659,062
Accumulated other comprehensive income (loss)	(31)	(66)
Retained earnings (accumulated deficit)	759,611	687,015
Total Starwood Property Trust, Inc. Stockholders' Equity	1,322,395	1,346,011
Non-controlling interests in consolidated subsidiaries	6,556	7,734
Total Equity	1,328,951	1,353,745
Total Liabilities and Equity	1,786,338	1,839,813
Operating segment | Property Segment
Assets:
Cash and cash equivalents	14,738	10,388
Restricted cash	15,343	12,491
Properties, net	2,699,492	2,364,806
Intangible assets	118,522	116,081
Investment in unconsolidated entities	107,189	110,704
Derivative assets	36,056	26,775
Accrued interest receivable	163	68
Other assets	88,708	71,929
Total Assets	3,080,211	2,713,242
Liabilities:
Accounts payable, accrued expenses and other liabilities	68,115	62,890
Derivative liabilities	20,630	13,063
Secured financing agreements, net	1,936,367	1,621,885
Total Liabilities	2,025,112	1,697,838
Starwood Property Trust, Inc. Stockholders' Equity:
Additional paid-in capital	850,185	957,329
Accumulated other comprehensive income (loss)	16,259	12,076
Retained earnings (accumulated deficit)	(17,229)	(14,335)
Total Starwood Property Trust, Inc. Stockholders' Equity	849,215	955,070
Non-controlling interests in consolidated subsidiaries	205,884	60,334
Total Equity	1,055,099	1,015,404
Total Liabilities and Equity	3,080,211	2,713,242
Corporate
Assets:
Cash and cash equivalents	179,987	299,308
Restricted cash	16,590	4,490
Accrued interest receivable	1,830	786
Other assets	2,083	3,755
Total Assets	200,490	308,339
Liabilities:
Accounts payable, accrued expenses and other liabilities	20,894	23,536
Related-party payable	31,733	42,318
Dividends payable	126,244	125,916
Derivative liabilities	17,064	2,666
Secured financing agreements, net	297,124	296,858
Unsecured senior notes, net	2,252,631	2,125,235
Total Liabilities	2,745,690	2,616,529
Starwood Property Trust, Inc. Stockholders' Equity:
Common stock	2,671	2,660
Additional paid-in capital	1,260,710	1,280,296
Treasury stock	(104,194)	(92,104)
Retained earnings (accumulated deficit)	(3,704,387)	(3,499,042)
Total Starwood Property Trust, Inc. Stockholders' Equity	(2,545,200)	(2,308,190)
Total Equity	(2,545,200)	(2,308,190)
Total Liabilities and Equity	200,490	308,339
LNR VIEs
Assets:
Cash and cash equivalents	6,215	5,726
Investment securities	(1,021,248)	(999,952)
Intangible assets	(24,892)	(28,246)
Investment in unconsolidated entities	(21,975)	(20,988)
Other assets	(2,923)	(2,868)
VIE assets, at fair value	49,233,307	51,045,874
Total Assets	48,168,484	49,999,546
Liabilities:
Accounts payable, accrued expenses and other liabilities	1,297	1,211
Secured financing agreements, net	(23,700)	(23,700)
VIE liabilities, at fair value	48,167,760	50,000,010
Total Liabilities	48,145,357	49,977,521
Starwood Property Trust, Inc. Stockholders' Equity:
Non-controlling interests in consolidated subsidiaries	23,127	22,025
Total Equity	23,127	22,025
Total Liabilities and Equity	$ 48,168,484	$ 49,999,546

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	May 04, 2018	Apr. 04, 2018	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017
Subsequent Events
Dividend declared (in dollars per share)			$ 0.48	$ 0.48	$ 0.48
Granted (in shares)				459,118
Subsequent event
Subsequent Events
Dividend declared (in dollars per share)	$ 0.48
Subsequent event | Starwood Property Trust, Inc. Manager Equity Plan
Subsequent Events
Granted (in shares)		775,000
Grant date fair value		$ 16.3
Award vesting period		3 years