8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 16, 2009 (November 16, 2009)

Starwood Property Trust, Inc.
(Exact name of registrant as specified in its charter)

Maryland	001-34436	27-0247747
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

591 West Putnam Avenue Greenwich, CT	06830
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (203) 422-7700

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 16, 2009, Starwood Property Trust, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2009. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

The information in this Current Report, including the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
99.1	Press Release, dated November 16, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 16, 2009	STARWOOD PROPERTY TRUST, INC.
	By:	/s/ Barbara J. Anderson
		Name: Barbara J. Anderson Title: Chief Financial Officer

EXHIBIT INDEX

Exhibit Number
99.1	Press Release, dated November 16, 2009.

EX-99.1

Exhibit 99.1

STARWOOD PROPERTY TRUST, INC.
ANNOUNCES RESULTS OF THE THIRD QUARTER 2009
- - Raises $921.1 Million in IPO -
- - Completes Investments of $144 Million in first 60 Days -

Greenwich, CT (November 16, 2009) Starwood Property Trust (NYSE: STWD), a real estate investment trust, focused primarily on originating, investing in, and financing commercial mortgage loans and other commercial real estate-related debt investments, today announced operating results for the period August 17, 2009 (commencement of operations) through September 30, 2009.

Net loss attributable to common shareholders for the period ended September 30, 2009 was $1.9 million or $0.04 per share. The results were affected by the recognition of $0.8 million of non-cash, stock-based compensation in the period. Net interest margin generated from mortgage-backed security investments was approximately $612,000 and the Company earned an additional $583,000 on cash balances.

Mr. Barry Sternlicht, Chief Executive Officer commented, “We are generally pleased with our pace, pipeline and the quality of our investments to date. We are choosing to be patient, highly selective and to use our extensive real estate expertise to find investments where returns solidly outweigh risk. We are focused on building an asset base diversified by product type, geographic location and by tenant. In three months, we have closed $144 million of investments, have $66 million under contract to close, another $250 million we list as “highly probable” and a further pipeline exceeding $1.0 billion. Taken together, we feel comfortable we can meet our targeted returns for our shareholders.”

Capital Markets Activity

On August 17, 2009, the Company completed its initial public offering, in which it sold 46,575,000 shares of common stock for $20 per share, and a concurrent private placement to an entity controlled by Starwood Capital Group of an additional 1,000,000 shares of common stock for $20 per share. Net proceeds from the offering were approximately $921.1 million.

Investments and Subsequent Events

Net investment during the period ended September 30, 2009 totaled $23.3 million. Through a 75%/25% co-investment partnership between Starwood Property Trust and Starwood Global Opportunity Fund VIII, a private real estate investment vehicle managed by an affiliate of Starwood Capital Group, the Company invested in AAA rated CMBS securities with a weighted average coupon of 5.6% totaling $202.7 million. The partnership obtained $171.6 million of financing via the Term Asset-Backed Securities Loan Facility (TALF) at an average rate of 3.82% for an expected average yield to maturity in excess of 16%.

Subsequent to the quarter-end, the Company invested $10.9 million in bonds secured by a first mortgage on a New York City hotel. The bonds have a current par value of $12.9 million with an expected unlevered yield to maturity of 11%. Additionally, Starwood Property Trust, Inc. completed a $110 million acquisition of a portfolio of loans on seven properties leased to a single tenant. The expected unlevered yield to maturity on this investment is 13%.

Starwood Property Trust, Inc. Activity to Date (amounts in thousands):

	Property			Face		%					Net		Yield to
Investment	Type	Book Value		Amount		Owned			Financing		Investment		Maturity			Rating	Vintage
Multi-Asset CMBS	Assorted	$	202,633	$	202,699		75	%	$	171,579	$	31,054		16	%	AAA		2006–2007
Single Asset CBMS	Hotel		10,938		12,945		100	%		—		10,938		11	%	BB		2001
Single-Tenant Loans	Warehouse		109,835		147,500		100	%		—		109,835		13	%	N/A		N/A
		$	323,406	$	363,144				$	171,579	$	151,827

Dividends

On September 18, 2009, the Company declared a dividend of $0.01 per share for the period ending September 30, 2009, which is payable on January 29, 2010 to common shareholders of record as of October 31, 2009. The Company also declared a dividend of $0.10 per share for the quarter ending December 31, 2009, payable on January 29, 2010 to common shareholders of record as of December 30, 2009. The Company’s dividend policy is set by its Board of Directors and will be evaluated on a quarterly basis in consideration with the pace of the Company’s capital deployment and subsequent earnings.

Non-GAAP Financial Measures

Core Earning is used to compute incentive fees to the manager and the Company believes it is an appropriate supplemental disclosure for a mortgage REIT. For these purposes, Core Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that the Company forecloses on any properties underlying our target assets), any unrealized gains, losses or other non-cash items recorded in net income for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income. The amount will be adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by the Company’s Manager and approved by a majority of its independent directors.

Core Earnings, a non-GAAP measure, was a loss of $1.1 million or $0.02 per share for the period ended September 30, 2009. The table below provides a reconciliation of net income to Core Earning as for the period August 17, 2009 through September 30, 2009:

	Amount
	(in thousands)			Per Share
Net Loss attributable to Starwood Property Trust, Inc	$	(1,919	)	$	(0.04	)
Add back for noncash Stock-Based Compensation		822			0.02
Core Earnings	$	(1,097	)	$	(0.02	)

Conference Call and Webcast Information

Starwood Property Trust will host a webcast and conference call on Monday November 16 at 5:00 p.m. Eastern Time to discuss third quarter results. A webcast will be available on the Company’s website at www.starwoodpropertytrust.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register and download and install any necessary software.

To Participate in the Telephone Conference Call:

Dial in at least five minutes prior to start time.

Domestic: 877-407-0784
International: 201-689-8560
Conference ID: 335992

Conference Call Playback:

Domestic: 877-660-6853
International: 201-612-7415
Account #: 3055
Conference ID: 335992

The playback can be accessed through November 26, 2009.

About Starwood Property Trust, Inc.

Starwood Property Trust, Inc. (NYSE: STWD) is a newly formed company that is focused primarily on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate-related debt investments. Starwood Property Trust, Inc. is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and intends to elect to be taxed as a real estate investment trust for U.S. federal income tax purposes.

Forward Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include completion of pending investments, continued ability to acquire additional investments, competition within the finance and real estate industries, economic conditions, and other risks detailed from time to time in the Company’s reports filed with the SEC.

SOURCE: Starwood Property Trust, Inc.

Starwood Property Trust, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations
(Unaudited, amounts in thousands, except per share data)

	For the Period from
	August 17, 2009
	(Commencement of
	Operations) Through
	September 30, 2009
Net interest margin:
Interest income from mortgage backed securities	$	865
Interest expense		(253	)
Net interest margin		612
Expenses:
Management fees (including $811 of non-cash stock-based compensation)		2,465
General and administrative (including $11 of non-cash stock-based compensation)		501
Total operating expenses		2,966
Interest income from cash balances		583
Net loss	$	(1,771	)
Net income attributable to noncontrolling interests		148
Net loss attributable to Starwood Property Trust, Inc.	$	(1,919	)
Net loss per common share:
Basic	$	(0.04	)
Diluted	$	(0.04	)
Weighted average number of shares of common stock outstanding:
Basic		47,575,000
Diluted		47,575,000

Diversification of CMBS assets as of September 30, 2009

Property Type			Location
Office	37.2	%
Retail	31.0	%	Northeast	27.6	%
Multifamily	14.4	%	South	28.6	%
Hotel	8.2	%	Midwest	11.6	%
Industrial	3.5	%	West	23.9	%
Other	5.7	%	Other	8.3	%
Total	100.0	%	Total	100.0	%