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Starwood Property Trust reports $118.9M core earnings in Q1

StarwoodProperty Trust Inc. posted first-quarter core earnings of $118.9million, or 50 cents per share.

The S&P Capital IQ consensus normalized EPS estimate forthe quarter was 50 cents.

GAAP net income attributable to the company for the firstquarter was $26.7 million, or 11 cents per share. Unrealized changes in fairvalue of securities and foreign currency hedges and depreciation on thecompany's property portfolio weighed on its GAAP net income.

The company's real estate lending segment posted coreearnings of $98.5 million, or 41 cents per share, in the first quarter. Thesegment's GAAP net income attributable to the company stood at $93.5 million,or 39 cents per share.

In real estate investing and servicing segment, coreearnings were $52.4 million, or 22 cents per share. The segment recorded a GAAPnet loss attributable to the company of $2.2 million because of an unrealizeddecrease in the fair value of the company's commercial mortgage-backedsecurities portfolio of $51.5 million.

The real estate property segment had core earnings of $9.9million, or 4 cents per share. The segment also posted a GAAP net lossattributable to the company of $12.8 million due to $15.7 million of depreciationand amortization of properties and lease intangibles and $10.0 million ofunrealized changes in fair value of foreign currency hedges.

As of May 3, the company had the capacity to acquire ororiginate up to $2.5 billion of new investments through $734.9 million ofexpected maturities, prepayments, sales and participations over the next 90days; $1.4 billion of unallocated warehouse capacity; $159.3 million ofapproved but undrawn capacity under existing financing facilities; $402.1million of available cash and equivalents; and approximately $94.4 million ofnet equity invested in residential mortgage-backed securities that areclassified as available-for-sale.

During the first quarter, Starwood Property Trustrepurchased 1.1 million common shares at an average price of $18.71 per sharefor $19.7 million. The company's capacity to buy back shares under therepurchase program was $282.1 million as of March 31.