Starwood Property Trust - SNL...˜ The newly formed real estate investment trust, called Starwood Waypoint Residential Trust, is listed on the New York Stock Exchange and trades under

Starwood Property Trust Supplemental Data for Quarter and Year Ended December 31, 2013

2

Special Note Regarding Forward Looking Financial Statements

This presentation contains certain forward-looking statements, including without limitation, statements concerning our operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words “believe,” “expect,” “anticipate,” and other similar expressions. Forward-looking statements do not guarantee future performance, which may be materially different from that expressed in, or implied by, any such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on our current beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control, and which could materially affect actual results, performance or achievements. Factors that may cause actual results to vary from our forward-looking statements include, but are not limited to: • factors described in this Annual Report on Form 10-K, including those set forth under the captions “Risk Factors” and “Business”; • defaults by borrowers in paying debt service on outstanding indebtedness; • impairment in the value of real estate property securing our loans • availability of mortgage origination and acquisition opportunities acceptable to us; • our ability to fully integrate LNR Property LLC, a Delaware limited liability company (“LNR”), which was acquired on April 19, 2013, into our business and achieve the

benefits that we anticipate from this acquisition; • potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; • national and local economic and business conditions; • general and local commercial and residential real estate property conditions; • changes in federal government policies; • changes in federal, state and local governmental laws and regulations; • increased competition from entities engaged in mortgage lending; • changes in interest rates, and; • the availability and costs associated with sources of liquidity

Additional risk factors are identified in our filings with the U.S. Securities Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2013, which is available on our website at http://www.starwoodpropertytrust.com and the SEC’s website at http://www.sec.gov. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. As a result, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the events described by our forward-looking statements might not occur. We qualify any and all of our forward-looking statements by these cautionary factors. Please keep this cautionary note in mind as you assess the information given in this presentation.

3

Quarterly Financial Highlights

Financial Results & Earnings Per Share

• Core earnings for the three and twelve months ended December 31, 2013 of $121.2M and $352.6M, or $0.62 and $2.11 per diluted common share, respectively

• GAAP net income for the three and twelve months ended December 31, 2013 of $95.0M and $305.0M, or $0.48 and $1.82 per diluted common share, respectively

˜ Total revenue (1) of $223.2M and $658.4M, respectively

˜ Total expenses (1) of $144.3M and $422.2M, respectively

Book Value and Fair Value per diluted share

• GAAP book value per fully diluted share of $21.83 as of December 31, 2013

• The fair value of the Company's net assets at December 31, 2013 was approximately $22.17 per fully diluted share (2)

• Excluding the SFR segment, the fair value and GAAP book value would have been $16.76 and $16.42 per diluted share, respectively, as of December 31, 2013

Dividend

• Paid dividend of $0.46 per share of common stock for the quarter ending December 31, 2013

• Declared dividend of $0.48 per share of common stock for the quarter ending March 31, 2014

˜ 8.0% annualized dividend yield based on closing price of $23.93 on February 24, 2014

(1) Before LNR VIEs (2) Excludes appreciation from the SFR segment and assumes debt is valued at its par settlement amount NOTE: For a reconciliation of GAAP net income to Core Earnings, see pages 24 - 25

4

Quarterly Segment Highlights

Real Estate Investment Lending Segment (“Lending Segment”)

• During the fourth quarter, the Lending Segment originated and/or acquired $1.7B of new investments, of which $1.4B was funded at closing and/or acquisition

˜ 83% of new investments are made up of LIBOR based floating rate loans, as is over 95% of the Lending Segment’s pipeline

• The carrying value of the Lending Segment portfolio was $5.4B as of December 31, 2013

˜ The carrying value of the target portfolio was approximately $4.8B, which is anticipated to generate an annualized leveraged return of between 10.8% and 11.8%

LNR Property LLC Segment (“LNR Segment”)

• The carrying value of the LNR Segment’s principal assets, consisting of CMBS, the servicing intangibles and conduit loans, was $1.0B as of December 31, 2013

• During the fourth quarter, the LNR Segment contributed GAAP and Core earnings of $0.18 and $0.23 per diluted share, respectively

Single Family Residential (“SFR”) Segment

• On January 31, 2014, the Company completed the spin-off of the Single Family Residential segment to its stockholders

˜ The newly formed real estate investment trust, called Starwood Waypoint Residential Trust, is listed on the New York Stock Exchange and trades under the ticker symbol “SWAY.” The Company’s stockholders received one common share of SWAY for every five shares of the Company’s common stock held at the close of business on January 24, 2014

• As of December 31, 2013, the Company’s consolidated financial statements reflect SFR segment net assets of $1.0B, consisting of approximately 7,200 units of single-family rental housing and residential non-performing mortgage loans (“NPLs”)

• In accordance with GAAP, the Company will retrospectively reclassify the Single Family Residential segment as a discontinued operation in its future comparative consolidated statements of operations beginning with the first quarter of 2014

5

Quarterly Financing Activities

As of December 31, 2013

• The Company had an aggregate outstanding balance of approximately $3.3B under eleven financing facilities and two convertible senior notes

• During the fourth quarter, the Company:

˜ Upsized borrowings under its senior secured term loan to $673.5M from ~$300M

˜ Upsized available borrowings under one of its warehouse lines to $225M from $125M and reset the term to a new two-year initial term, with three one-year extensions

˜ Borrowed £210M under a new repurchase facility to finance the origination of the commercial mortgage loan which refinanced the Heron Tower in London

˜ Borrowed $58.5M under a new repurchase facility to finance the purchase of a CMBS investment

Subsequent to Quarter End

• On January 27, 2014, the Company amended one of its repurchase facilities to:

˜ Upsize available borrowings to $1.0B from $550M

˜ Extend the maturity date for non-CMBS assets to January 2019 and for CMBS assets to January 2016, each from August 2014, and each assuming initial extension options

˜ Allow for up to four additional one-year extension options with respect to any non-CMBS assets then remaining financed, in an effort to match the term of the maturity dates of these assets

˜ Amend certain financial covenants to contemplate the spinoff of the SFR segment

6

Lending Segment Investment Portfolio as of December 31, 2013

Investment Asset Carry Value

(in millions) Net Investment

(in millions)

Net Investment %

of Total

Fully Extended

WAL (1)

First mortgage loans held for investment $ 2,601 $ 1,332 36% 4.3 Years

Subordinate mortgages held for investment 505 501 13% 4.2 Years

Mezzanine loans held for investment 1,245 1,245 33% 3.7 Years

Preferred Equity Interest 284 284 8% 4.4 Years

CMBS (2) 199 141 4% 4.6 Years

Total core portfolio of Lending Segment 4,834 3,503

RMBS, available for sale at fair value 296 168 5% 6.8 Years

Loans transferred as secured borrowings (3) 180 (1) 0% N/A

Equity security 15 15 0% N/A

Investment in unconsolidated entities 50 50 1% N/A

Total $ 5,375

$ 3,735 100% 4.3 Years (4)

(1) Maximum maturity date assumes all extension options are exercised (2) Consists of available-for-sale and held-to-maturity CMBS with carrying values of $115M and $84M, respectively (3) Includes a $95M participation liability (4) Excludes Loans transferred as secured borrowings, Equity security and Investment in unconsolidated entities

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

Do

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(Car

ryin

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lue

s in

bil

lio

ns)

We

igh

ted

Ave

rage

En

din

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V o

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Quarter Ending

Migration of Weighted Average LTV on Loan Portfolio

First mortgages held forsale at fair value

Mezzanine loans held forinvestment

Subordinated mortgagesheld for investment

First mortgages held forinvestment

64.7%

67.8%

65.7%

66.5%

64.9%

62.8%

63.1%64.0%

64.0%64.1%

65.1%

66.3%

Lending Segment Migration of Weighted Average LTV on Loan Portfolio

7

Note: As of December 31, 2013. Includes on-balance sheet leverage of $2,128M

11%

21%

32%

43%

59%

76%

91%

99% 100% 100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

0-10 % 10-20 % 20-30 % 30-40 % 40-50 % 50-60 % 60-70 % 70-80 % 80-90 % 90-100 %

Am

ou

nts

in M

M

Sum of Loan Assets Segmented by LTVs

Dollar Amount per LTV Bucket Cum. Portfolio Weight

LTV segment

Lending Segment Loan Portfolio Balances Segmented by LTV

8

Note: As of December 31, 2013. Excludes RMBS, public equity and investments accounted for under the cost method. LTVs are calculated based on the Company’s internal valuations

Loans w/balance ≤ $5MM & LTV ≤ 75% bucket includes 10 loans

Lending Segment Loan Level Risk Attachment Points

9

Note: As of December 31, 2013. Excludes RMBS, public equity and investments accounted for under the cost method. LTVs are calculated based on the Company’s internal valuations

Loans w/balance ≤ $5MM & LTV > 75% bucket includes 2 loans

Balance at maturity will be $74.6M. The full repayment of these notes is guaranteed by Centre Reinsurance: AA- (S&P)

Lending Segment Loan Level Risk Attachment Points (continued)

10

Hospitality$1,361,150

25.6%

Industrial$95,084

1.8%Office

$1,447,529 27.2%

Retail$624,226

11.7%Residential

$508,116 9.6%

Multi-family$66,767

1.3%

Other$313,510

5.9%

Mixed Use$898,516

16.9%

Hospitality$1,068,721

29.1%

Industrial$88,809

2.4%

Office$693,787

18.9%

Retail$514,777

14.0%

Residential$380,174

10.3%

Multi-family$13,496

0.4%

Other$214,986

5.9%

Mixed Use$699,769

19.0%

Asset Carry Value

Net Investment

11

Lending Segment Loan Balance by Property Type

Note: All figures (dollar amounts in thousands) as of December 31, 2013. Includes loans held for investment, loans held for sale, CMBS, RMBS, and security held to maturity.

Asset Carry Value

Net Investment

12

Lending Segment Loan Balance by Region

Note: All figures as of December 31, 2013. Dollar amounts in thousands. “International” includes Europe, Australia, the Caribbean, Africa, South America, the Middle East and Japan. Includes loans held for investment, loans held for sale, CMBS, RMBS, and security held to maturity

North East$1,109,640

20.9%

Mid Atlantic$483,181

9.1%

South East$938,831

17.7%

South West$318,554

6.0%

Midwest$280,957

5.3%

West$1,364,770

25.7%

International$818,965

15.4%

North East$902,556

24.6%

Mid Atlantic$311,014

8.5%

South East$755,901

20.6%South West

$155,319 4.2%

Midwest$200,116

5.4%

West$878,345

23.9%

International$471,268

12.8%

Lending Segment Key Portfolio Metrics

4Q2013

Hotel Keys 167,661

Resort Keys 3,903

Office SF 22,905,689

Retail SF 18,937,753

Mixed Use SF 2,587,984

Showroom SF 2,683,730

Industrial SF 7,041,459

Apartment Units 3,270

Assisted Living Units 1,238

Medical Office SF 145,963

Media and Entertainment SF 971,851

Data Center SF 132,054

Ground Lease Land SF 326,024

Condominiums Saleable Units 30

Development Site SF 939,434

Car Wash SF 193,020

Note: All figures as of December 31, 2013. Excludes RMBS, public equity and private equity investments

13

At December 31, 2013

Secured Financing Agreements and Liquidity

14

Collateral Asset

Maximum

Facility Size

Principal

Balance Potential (1) Outstanding (2)

Approved

but Undrawn

Lender 1 550 918 550 449 101

Lender 1 175 273 164 128 36

Lender 1 154 211 154 154 0

Lender 2 225 158 101 101 0

Lender 3 51 78 51 51 0

Lender 4 250 171 130 130 0

Lender 5 150 0 0 0 0

Lender 6 348 442 348 348 0

Lender 7 58 84 58 58 0

Lender 8 250 892 169 169 0

Lender 9 672 2,575 672 669 0

TOTAL 2,883$ 5,802$ 2,397$ 2,258$ 137$

Debt Obligations

As of December 31, 2013

$2.9B Total Credit Capacity

$137M Approved but Undrawn

$ millions

(1) Potential borrowings represent the total amount that could be drawn under each facility based on collateral already approved and pledged (2) Does not include ~$1.1B of convertible senior notes; balance outstanding is net of $2.5M of unamortized discount

• As of February 21, 2014, the Company had approximately $293M of available cash and equivalents, approximately $104M of net equity invested in RMBS that are classified as available-for-sale and $68M of approved but undrawn capacity under existing financing facilities

• Accordingly, the Company has the capacity to acquire or originate an additional $300M to $525M of new investments using these liquidity sources

Lending Segment Schedule of Management’s Expected Repayment Dates

Note: As of December 31, 2013. Excludes RMBS, European Debt Fund, Island C-III, and SFR REO & NPL

$-

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

$1,400,000,000.00

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Loan Balance at Expected Maturity Equity Balance at Expected Maturity

15

LNR Business Segments Overview

• Largest commercial mortgage special servicer in U.S. (1)

• Industry leader in commercial loan workouts

• Named special servicer on 141 separate CMBS trusts representing an unpaid principal balance (“UPB”) of $132.8B, with $16.2B in special servicing or real estate owned (“REO”)(2)

• Legacy whole loans, CMBS and CDO investments including controlling class positions that form the basis for a material portion of LNR’s special servicing rights

• Current securities portfolio includes interests in 37%(3) of outstanding CMBS transactions through 2008 and 46%(3) of all transactions between 2005 and 2008

• Conduit loan origination platform

• Has originated 242 loans for ~$2.5B since inception (in 2011)(2)

• Largest independent primary and special servicer in Europe (Hatfield Philips)

• LNR European Investment fund is a European commercial real estate (“CRE”) debt fund that is in harvest mode

• Nation’s leading real estate exchange selling residential and commercial real estate via auction

US Special Servicer

LNR Europe

US Investment Securities Portfolio

Starwood Mortgage Capital

Auction.com

(1) Source: Morningstar as of December 2013, adjusted for $3.2 billion in assets that CWCapital is in the process of liquidating. This market share data assumes the full liquidation of these assets, some of which have not yet closed

(2) As of December 31, 2013 (3) As of December 31, 2013; percentage based on unpaid principal balance

LNR Business Segments Overview

16

US Special Servicing

Named special servicer on 141 CMBS trusts representing a UPB of $132.8B, with $16.2B in special servicing or REO(1)

• Most experienced special servicer with 34.7%(2) market share of all CMBS loans in active special servicing; 26%(3) market share of all outstanding CMBS loans

• Since inception, LNR has resolved nearly 5,000 distressed commercial real estate loans and REO properties representing over ~$52.1B of original principal loan balance

• Dedicated Asset Services group with 222 professionals

US Special Servicer Market Share(2) LNR Special Servicer Portfolio(1)

(1) As of December 31, 2013 (2) Source: Morningstar as of December 2013, adjusted for $3.2 billion in assets that CWCapital is in the process of liquidating. This market share data assumes the full liquidation of these assets, some of which

have not yet closed (3) Source: Fitch CMBS special servicing index of CMBS loans as of September 2013; based on UPB of named SS

($ billions)

Deals 141

Unpaid Balance 132.8$

Loan Count 10,251

SS Loan Count 576

SS Loan Balance 8.5$

REO Loan Count 438

REO Loan Balance 7.7$

Active CMBS Portfolio

Active Special Servicing

Portfolio

U.S. Special Servicing

17

Adjusted

Rank Company Market Share (%)

1 LNR Partners Inc. 34.7%

2 CWCapital Asset Management 33.7%

3 C-III Asset Management 17.0%

4 Torchlight Loan Services 3.7%

5 Situs 3.4%

6 Midland Loan Services 2.3%

7 Keycorp Real Estate Capital 1.8%

8 Wells Fargo Bank 1.3%

9 Five Mile Capital 1.2%

10 Berkedia Commercial Mortgage 0.8%

Special Servicing Primer and Fee Rate Summary

• LNR is a rated Special Servicer (Fitch: CSS1-; S&P: Strong)

• Generally, control of a CMBS trust is held by the “first loss” position (the most subordinate bond holder), so named because this bond will be the first to absorb realized losses in the deal. The holder of this class has the ability to appoint the Special Servicer on the deal who is then responsible for addressing performing loan requests and non-performing loan workouts and liquidations.

– LNR invests in bonds further up the capital stack in CMBS trusts to either preserve its controlling position in a deal or to gain the controlling position in a deal to appoint LNR as Special Servicer.

• As a Special Servicer, LNR generates fee income from a variety of sources. The fee rates summarized below are a general guideline. Actual fees can vary due to specific circumstances, the individual Pooling and Servicing Agreement, and negotiations with the borrower:

Default Interest – 4% to 5% over note rate

Modification Fee – 1% of the loan balance

Extension Fee – 1% of the loan balance

Late Fees – 5% of payment

Assumption Fee – 1% of the outstanding loan balance

Consent Fee – $500 to $5,000

Borrower Paid Fees

CMBS Trust Paid Fees

Inventory Fee – 0.25% - 0.35% per annum of the outstanding loan balance

Workout Fee – 1% of each future payment

Liquidation Fee – 1% of net proceeds

Special Servicing Primer and Fee Rate Summary

18

Balance Sheet by Segment as of December 31, 2013

$ thousands

Real Estate

Investment Lending

Single Family

ResidentialLNR Subtotal LNR VIEs Total

Assets:

Cash and cash equivalents $ 232,270 44,807 40,274 317,351 276 317,627

Restricted cash 36,593 251 32,208 69,052 - 69,052

Loans held-for-investment, net 4,350,937 - 12,781 4,363,718 - 4,363,718

Loans held-for-sale - - 206,672 206,672 - 206,672

Loans transferred as secured borrowings 180,414 - - 180,414 - 180,414

Investment securities 794,147 - 550,282 1,344,429 (409,322) 935,107

Intangible assets – servicing rights - - 257,736 257,736 (80,563) 177,173

Investment in residential real estate - 749,214 - 749,214 - 749,214

Investment in non-performing residential loans - 215,371 - 215,371 - 215,371

Investments in unconsolidated entities 50,167 - 76,170 126,337 (3,383) 122,954

Goodwill - - 140,437 140,437 - 140,437

Derivative assets 3,138 - 4,631 7,769 - 7,769

Accrued interest receivable 35,501 - 2,129 37,630 - 37,630

Other assets 31,020 8,045 57,620 96,685 (872) 95,813

Variable interest entity assets, at fair value - - - - 103,151,624 103,151,624

Total Assets $ 5,714,187 1,017,688 1,380,940 8,112,815 102,657,760 110,770,575

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities 66,127 23,056 135,882 225,065 309 225,374

Related-party payable 11,245 - 6,548 17,793 - 17,793

Dividends payable 90,171 - - 90,171 - 90,171

Derivative liabilities 24,149 - 43 24,192 - 24,192

Secured financing agreements, net 2,127,717 - 129,843 2,257,560 - 2,257,560

Convertible senior notes, net 997,851 - - 997,851 - 997,851

Loan transfer secured borrowings 86,238 - - 86,238 - 86,238

Loan participation liability 95,000 - - 95,000 - 95,000

Variable interest entity liabilities, at fair value - - - - 102,649,263 102,649,263

Total Liabilities $ 3,498,498 23,056 272,316 3,793,870 102,649,572 106,443,442

Equity:

Starwood Property Trust, Inc. Stockholders’ Equity:

Preferred stock - - - - - -

Common stock 1,961 - - 1,961 - 1,961

Additional paid-in capital 1,987,133 1,004,846 1,308,500 4,300,479 - 4,300,479

Treasury stock (10,642) - - (10,642) - (10,642)

Accumulated other comprehensive income 68,092 - 7,357 75,449 - 75,449

Accumulated earnings (deficit) 132,625 (10,111) (207,233) (84,719) - (84,719)

Total Starwood Property Trust, Inc. Stockholders’ Equity 2,179,169 994,735 1,108,624 4,282,528 - 4,282,528

Non-controlling interests in consolidated subsidiaries 36,520 (103) - 36,417 8,188 44,605

Total Equity 2,215,689 994,632 1,108,624 4,318,945 8,188 4,327,133

Total Liabilities and Equity $ 5,714,187 1,017,688 1,380,940 8,112,815 102,657,760 110,770,575

19

Results of Operations by Segment Three Months ended December 31, 2013

$ thousands

Real Estate

Investment Lending

Single Family

ResidentialLNR Subtotal LNR VIEs Total

Revenues

Interest income from loans $ 103,875 $ - $ 4,094 $ 107,969 $ - $ 107,969

Interest income from investment securi ties 15,623 - 23,470 39,093 (17,402) 21,691

Servicing fees - - 66,589 66,589 (17,507) 49,082

Other revenues 307 131 1,910 2,348 (297) 2,051

Rental income - 7,156 - 7,156 - 7,156

Total revenues 119,805 7,287 96,063 223,155 (35,206) 187,949

Costs and expenses:

Management fees 18,283 4,794 6,335 29,412 58 29,470

Interest expense 32,675 2,959 5,037 40,671 - 40,671

General and adminis trative 5,382 (149) 48,388 53,621 193 53,814

Acquis i tion and investment pursuit costs 1,032 647 226 1,905 - 1,905

Res identia l segment, other operating costs - 10,761 - 10,761 - 10,761

Depreciation and amortization - 3,126 4,038 7,164 - 7,164

Loan loss a l lowance 8 - - 8 - 8

Other expense - - 765 765 - 765

Total costs and expenses 57,380 22,138 64,789 144,307 251 144,558

Other income

Income of consol idated VIEs , net - - - - 36,465 36,465

Change in fa i r va lue of servicing rights - - (18,043) (18,043) 10,168 (7,875)

Change in fa i r va lue of investment securi ties (65) - 6,449 6,384 (12,003) (5,619)

Change in fa i r va lue of mortgage loans held-for-sa le - - 17,534 17,534 - 17,534

Earnings from unconsol idated enti ties 1,288 - 283 1,571 537 2,108

Gain/loss on sa le of investments 5,373 2,540 - 7,913 - 7,913

Gain/loss on derivative financia l instruments (10,320) - (783) (11,105) - (11,105)

Foreign currency ga in/loss , net 6,941 - (53) 6,888 - 6,888

OTTI (561) (560) - (1,121) - (1,121)

Other income 15 5,304 613 5,932 - 5,932

Total other income 2,671 7,284 5,998 15,953 35,167 51,120

Income/(Loss ) before income taxes 65,096 (7,567) 37,272 94,801 (290) 94,511

Income tax provis ion (3,367) 183 1,546 (1,638) - (1,638)

Net income/(loss) 68,463 (7,750) 35,726 96,439 (290) 96,149

Net income/(loss ) attributable to non-control l ing

interests 1,466 - - 1,466 (290) 1,176

Net income/(loss) attributable to Starwood Property Trust, Inc. $ 66,997 $ (7,750) $ 35,726 $ 94,973 $ - $ 94,973

20

Results of Operations by Segment Twelve Months ended December 31, 2013

$ thousands

Real Estate

Investment Lending

Single Family

Residential LNR Subtotal LNR VIEs Total

Revenues

Interest income from loans $ 335,078 $ - $ 9,562 $ 344,640 $ - $ 344,640

Interest income from investment securities 57,802 - 54,020 111,822 (37,510) 74,312

Servicing fees - - 179,015 179,015 (54,289) 124,726

Other revenues 598 311 6,111 7,020 (892) 6,128

Rental income - 15,889 - 15,889 - 15,889

Total revenues 393,478 16,200 248,708 658,386 (92,691) 565,695

Costs and expenses:

Management fees 62,787 11,329 13,907 88,023 122 88,145

Interest expense 99,469 6,546 12,334 118,349 - 118,349

General and administrative 16,783 1,564 132,713 151,060 523 151,583

Acquisition and investment pursuit costs 2,819 2,752 829 6,400 - 6,400

Business combination costs 17,958 - - 17,958 - 17,958

Residential segment, other operating costs - 21,383 - 21,383 - 21,383

Depreciation and amortization - 6,107 9,701 15,808 - 15,808

Loan loss allowance 1,923 - - 1,923 - 1,923

Other expense 150 - 1,148 1,298 - 1,298

Total costs and expenses 201,889 49,681 170,632 422,202 645 422,847

Other income

Income of consolidated VIEs, net - - - - 116,377 116,377

Change in fair value of servicing rights - - (15,868) (15,868) 9,024 (6,844)

Change in fair value of investment securities (148) - 22,657 22,509 (31,393) (8,884)

Change in fair value of mortgage loans held-for-sale - - 43,849 43,849 - 43,849

Earnings from unconsolidated entities 4,776 - 4,502 9,278 (437) 8,841

Gain/loss on sale of investments 25,063 5,818 - 30,881 - 30,881

Gain/loss on derivative financial instruments (13,259) - 2,089 (11,170) - (11,170)

Foreign currency gain/loss, net 10,478 - (95) 10,383 - 10,383

OTTI (1,014) (560) - (1,574) - (1,574)

Other income 15 8,624 1,037 9,676 - 9,676

Total other income 25,911 13,882 58,171 97,964 93,571 191,535

Income/(Loss) before income taxes 217,500 (19,599) 136,247 334,148 235 334,383

Income tax provision (1,722) 195 25,580 24,053 - 24,053

Net income/(loss) 219,222 (19,794) 110,667 310,095 235 310,330

Net income attributable to non-controlling interests 5,065 - - 5,065 235 5,300

Net income/(loss) attributable to Starwood Property Trust, Inc. $ 214,157 $ (19,794) $ 110,667 $ 305,030 $ - $ 305,030

21

Results of Operations by Segment Twelve Months ended December 31, 2012

$ thousands

Real Estate

Investment Lending Single Family Residential Total

Revenues:

Interest income from loans ................................................... $ 251,561 $ - $ 251,561

Interest income from investment securities ......................... 57,321 - 57,321

Other revenues ..................................................................... 260 12 272

Rental income ...................................................................... - 431 431

Total revenues .................................................................... 309,142 443 309,585

Costs and expenses:

Management fees ................................................................ 58,799 9 58,808

Interest expense .................................................................... 47,125 - 47,125

General and administrative ................................................. 12,069 47 12,116

Acquisition and investment pursuit costs ............................ 3,422 888 4,310

Residential segment, other operating costs .......................... - 1,533 1,533

Depreciation and amortization ............................................. - 213 213

Loan loss allowance ............................................................. 2,061 - 2,061

Total costs and expenses .................................................... 123,476 2,690 126,166

Income (loss) before other income (loss), income taxes

and non-controlling interests ........................................ 185,666 (2,247) 183,419

Other income (loss):

Change in fair value of investment securities, net ............... 295 - 295

Change in fair value of mortgage loans held-for-sale .......... (5,760) - (5,760)

Earnings from unconsolidated entities ................................. 5,086 - 5,086

Gain on sale of investments, net .......................................... 24,836 696 25,532

Loss on derivative financial instruments, net ....................... (14,157) - (14,157)

Foreign currency gain, net ................................................... 15,120 - 15,120

OTTI .................................................................................... (4,402) - (4,402)

Other income (expense), net ................................................ (126) (302) (428)

Total other income (loss) ............................................... 20,892 394 21,286

Income (loss) before income taxes .................................... 206,558 (1,853) 204,705

Income tax provision ........................................................... (871) (152) (1,023)

Net income (loss) ................................................................ 205,687 (2,005) 203,682

Net income attributable to non-controlling interests ........... (2,487) - (2,487)

Net income (loss) attributable to Starwood Property

Trust, Inc. ....................................................................... $ 203,200 $ (2,005) $ 201,195

22

Cash Flow for Twelve Months ended December 31, 2013

$ thousands

GAAP Adjustments Pre-Consolidation

Net cash provided by operating activities 326,314 90 326,404

Cash Flows from Investing Activities:

Purchase of LNR, net of cash acquired (586,383) (366) (586,749)

Purchase of investment securities (479,843) (180,652) (660,495)

Proceeds from sales of investment securities 463,428 13,993 477,421

Proceeds from principal collections on investment securities 70,417 29,411 99,828

Origination and purchases of loans held for investment (2,663,267) - (2,663,267)

Proceeds from principal collections on loans held for investment 769,650 - 769,650

Proceeds from sales of loans held for investment 435,818 - 435,818

Acquisition and improvement of real estate (642,099) - (642,099)

Proceeds from sale of real estate 13,617 - 13,617

Purchase of other assets (2,157) - (2,157)

Purchase of non performing loans (186,263) - (186,263)

Proceeds from sale of non performing loans 25,954 - 25,954

Investment in unconsolidated entities (30,562) - (30,562)

Distribution of capital from unconsolidated entities 6,515 - 6,515

Payments for purchases and terminations of derivatives (17,389) - (17,389)

Proceeds from sales and terminations of derivatives 10,289 - 10,289

Return of investment basis in purchased derivative asset 1,948 - 1,948

Decrease (increase) in restricted cash (17,275) - (17,275)

Net cash used in investing activities (2,827,602) (137,614) (2,965,216)

Cash Flows from Financing Activities:

Borrowings under secured financing agreements 4,391,114 - 4,391,114

Borrowings under convertible debt offering 1,037,926 - 1,037,926

Principal repayments on borrowings under secured financing arrangements (3,884,972) - (3,884,972)

Payment of deferred financing costs (26,309) - (26,309)

Proceeds from securing borrowings 95,000 - 95,000

Proceeds from common stock offering 1,513,519 - 1,513,519

Payment of underwriting and offering costs (1,390) - (1,390)

Payment of dividends (300,973) - (300,973)

Contributions from non-controlling interest owners 1,599 - 1,599

Distributions to non-controlling interest owners (48,104) - (48,104)

Issuance of debt of consolidated VIEs 13,993 (13,993) -

Repayment of debt of consolidated VIEs (180,652) 180,652 -

Distributions of cash from consolidated VIEs 29,411 (29,411) -

Net cash provided by financing activities 2,640,162 137,248 2,777,410

Net increase in cash and cash equivalents 138,874 (276) 138,598

Effect of exchange rate changes on cash 1,082 - 1,082

Cash and cash equivalents, beginning of period 177,671 - 177,671

Cash and cash equivalents, end of period 317,627 (276) 317,351

23

Reconciliation of Net Income to Core Earnings Three and Twelve Months ended December 31, 2013

$ thousands

Real Estate

Investment

Lending

Single Family

ResidentialLNR Total

Real Estate

Investment

Lending

Single Family

ResidentialLNR Total

Revenues $ 119,805 7,287 96,063 $ 223,155 $ 393,478 16,200 248,708 $ 658,386

Costs and expenses (57,381) (22,138) (64,789) (144,307) (201,889) (49,681) (170,632) (422,202)

Other (loss ) income 2,671 7,284 5,998 15,953 25,911 13,882 58,171 97,964

Income (loss ) before income taxes 65,096 (7,567) 37,272 94,801 217,500 (19,599) 136,247 334,148

Income tax provis ion 3,367 (183) (1,546) 1,638 1,722 (195) (25,580) (24,053)

Income attributable to non-control l ing interests (1,466) 0 0 (1,466) (5,066) - - (5,065)

Net income (loss) attributable to Starwood Property Trust, Inc. $ 66,997 (7,750) 35,726 $ 94,973 $ 214,157 (19,794) 110,667 $ 305,030

Add / (Deduct):

Non-cash equity compensation expense 3,402 0 0 3,403 16,273 - 0 16,273

Management incentive fee 4,257 0 2,494 6,751 7,070 - 4,503 11,573

Change in Control Plan - - 6,579 6,579 - - 22,382 22,382

Depreciation and amortization - 3,125 417 3,542 - 6,106 763 6,869

Loan loss a l lowance 8 - 447 455 1,923 - 447 2,370

Interest income adjustment for securi ties (395) - 6,573 6,178 (1,227) - 11,253 10,026

Unreal ized (Gains) / losses on: - - - - - - - -

Loans held for sa le - - 8,438 8,438 - - 2,427 2,427

Securi ties 160 - (10,229) (10,069) (303) - (21,639) (21,942)

Impairment of rea l estate - (536) - (536) - (0) - (0)

Gain on foreclosure of non-performing loans - 3,320 - 3,320 - - - -

Derivatives 10,546 - (7,015) 3,531 12,290 - (1,966) 10,324

Foreign currency (6,941) - - (6,941) (10,663) - - (10,663)

Earnings from unconsol idated enti ties - - (621) (621) - - (2,053) (2,053)

U.S. specia l servicing intangible - - 2,175 2,175 - - - -

Core Earnings (Loss) $ 78,035 (1,841) 44,984 $ 121,178 $ 239,520 (13,688) 126,784 $ 352,616

Core Earnings (Loss) per Weighted Average Diluted Share 0.40 (0.01) 0.23 0.62 1.43 (0.08) 0.76 2.11

Three Months Ended December 31, 2013 Twelve Months Ended December 31, 2013

24

Reconciliation of Net Income to Core Earnings Three and Twelve Months ended December 31, 2012

$ thousands

Real Estate

Investment Lending

Single Family

ResidentialTotal

Real Estate

Investment Lending

Single Family

ResidentialTotal

Revenues $ 87,578 383 $ 87,961 $ 307,238 444 $ 307,682

Costs and expenses (33,179) (2,088) (35,267) (120,920) (3,345) (124,265)

Other income 5,526 396 5,921 20,894 394 21,287

Income (loss) before income taxes 59,925 (1,310) 58,615 207,212 (2,508) 204,704

Income tax provision (31) (152) (183) (871) (152) (1,023)

Income attributable to non-controlling interests (2,099) - (2,099) (2,487) - (2,487)

Net income (loss) attributable to Starwood Property Trust, Inc. $ 57,795 (1,462) $ 56,333 $ 203,854 (2,660) $ 201,194

Add / (Deduct):

Non-cash equity compensation expense 3,866 - 3,866 16,162 - 16,162

Management incentive fee 384 - 384 7,871 - 7,871

Depreciation and amortization - 135 135 - 213 213

Loan loss allowance 2,061 - 2,061 2,061 - 2,061

Unrealized (Gains) / losses on: - - - - - -

Loans held for sale - - - 5,760 - 5,760

Securities 1,347 - 1,347 3,970 - 3,970

Derivatives 65 - 65 (19,840) - (19,840)

Foreign currency 301 - 301 10,914 - 10,914

Core Earnings (Loss) $ 65,819 (1,327) $ 64,492 $ 230,752 (2,447) $ 228,305

Core Earnings (Loss) per Weighted Average Diluted Share 0.49 (0.01) 0.48 2.01 (0.02) 1.99

Three Months Ended December 31, 2012 Twelve Months Ended December 31, 2012

25