STARWOOD PROPERTY TRUST, INC.STWD

STARWOOD PROPERTY TRUST, INC. Commitments Disclosure

10-KFiled Feb 25, 20262 min read
Commitments and Contingencies
As of December 31, 2025, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $2.0 billion, of which we expect to fund $1.6 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions.
As of December 31, 2025, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $418.5 million, including $253.9 million under revolvers and letters of credit (“LCs”) and $164.6 million under delayed draw term loans. Additionally, as of December 31, 2025, our Infrastructure Lending Segment had outstanding loan purchase commitments of $173.6 million.
As of December 31, 2025, our Property Segment had future construction funding commitments of $56.6 million related to development projects which have estimated rental revenue commencement dates between January 2026 and December 2027.
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 consolidated financial statements.
Lease Commitment Disclosures
Our lease commitments consist of corporate office leases and ground leases for investment properties. One of the ground leases is classified as a finance lease and all the other leases are classified as operating leases. Our lease costs and related sublease income, which is recognized on certain of the ground leases, were as follows (in thousands):
For the Year Ended December 31,
2025
2024
2023
Operating lease costs$7,796 $6,566 $6,864 
Finance lease costs:
Amortization of right-of-use asset
160 — — 
Interest on lease liability
431 — — 
Short-term lease costs146 134 75 
Sublease income
(1,009)— $— 
Total lease cost$7,524 $6,700 $6,939 

Information concerning our operating and finance lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheets as of December 31, 2025 and 2024, is as follows (dollars in thousands):

Cash Paid for Amounts Included in the Measurement of Lease Liabilities for the Year Ended December 31,
2025
2024
Operating leases
$5,284$5,074
Finance lease
313—

Weighted-Average Remaining Lease Term (1)
 as of December 31,
Weighted-Average Discount Rate as of December 31,
2025
2024
2025
2024
Operating leases
22.5 years11.0 years8.1%9.0%
Finance lease
37.9 yearsN/A6.4%N/A
______________________________________________________________________________________________________________________
(1)Includes renewal option periods considered reasonably certain to be exercised.

Future maturity of lease liabilities:
Operating Leases
Finance Lease
2026$5,857 $750 
20276,126 750 
20286,165 763 
20296,282 825 
20305,708 825 
Thereafter93,224 37,347 
Total$123,362 $41,260 
Less interest component(68,350)(27,262)
Lease liabilities (classified within accounts payable, accrued expenses and other liabilities)
$55,012 $13,998 
Memo: Right-of-use assets (classified within other assets)
$54,287 $13,719 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 25, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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