# Definition of Distributable Earnings

Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company's
purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful
acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net
income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in
GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors. Refer to the Company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 2026 for additional information regarding Distributable Earnings.


**Reconciliation of Net Income to Distributable Earnings**
For the three months ended June 30, 2026
(Amounts in thousands except per share data)


<table>
<tr><td></td><td>Commercial and Residential Lending Segment</td><td>Infrastructure Lending Segment</td><td>Property Segment</td><td>Investing and Servicing Segment</td><td>Corporate</td><td>Total</td></tr>
<tr><td>Net income (loss) attributable to Starwood Property Trust, Inc.</td><td>$ 133,938</td><td>$ 26,094</td><td>$ (2,215)</td><td>$ 24,480</td><td>$(175,740)</td><td>$6,557</td></tr>
<tr><td>Add / (Deduct):</td><td></td><td></td><td></td><td></td><td></td><td></td></tr>
<tr><td>Non-controlling interests attributable to Woodstar II Class A Units</td><td>—</td><td>—</td><td>4,629</td><td>—</td><td>—</td><td>4,629</td></tr>
<tr><td>Non-controlling interests attributable to unrealized gains/losses</td><td>—</td><td>—</td><td>(2,724)</td><td>(2,226)</td><td>—</td><td>(4,950)</td></tr>
<tr><td>Non-cash equity compensation expense</td><td>2,585</td><td>788</td><td>2,014</td><td>1,449</td><td>6,477</td><td>13,313</td></tr>
<tr><td>Depreciation and amortization</td><td>4,817</td><td>—</td><td>29,632</td><td>1,121</td><td>—</td><td>35,570</td></tr>
<tr><td>Straight-line rent adjustment</td><td>—</td><td>—</td><td>(1,697)</td><td>57</td><td>—</td><td>(1,640)</td></tr>
<tr><td>Interest income adjustment for loans and securities</td><td>4,675</td><td>—</td><td>—</td><td>12,686</td><td>—</td><td>17,361</td></tr>
<tr><td>Consolidated income tax provision (benefit) associated with fair value adjustments</td><td>2,536</td><td>95</td><td>(8)</td><td>3,601</td><td>—</td><td>6,224</td></tr>
<tr><td>Other non-cash items</td><td>5</td><td>447</td><td>(82)</td><td>(407)</td><td>—</td><td>(37)</td></tr>
<tr><td>Reversal of GAAP unrealized and realized (gains) / losses on:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr>
<tr><td>Loans</td><td>12,711</td><td>—</td><td>—</td><td>(12,650)</td><td>—</td><td>61</td></tr>
<tr><td>Credit loss provision, net</td><td>29,816</td><td>348</td><td>—</td><td>—</td><td>—</td><td>30,164</td></tr>
<tr><td>Securities</td><td>1,587</td><td>—</td><td>—</td><td>1,717</td><td>—</td><td>3,304</td></tr>
<tr><td>Woodstar Fund investments</td><td>—</td><td>—</td><td>(4,929)</td><td>—</td><td>---</td><td>(4,929)</td></tr>
<tr><td>Derivatives</td><td>(21,529)</td><td>(350)</td><td>(8,354)</td><td>(983)</td><td>34,240</td><td>3,024</td></tr>
<tr><td>Foreign currency</td><td>5,719</td><td>—</td><td>(13)</td><td>—</td><td>---</td><td>5,706</td></tr>
<tr><td>Earnings from unconsolidated entities</td><td>—</td><td>(2,677)</td><td>—</td><td>(193)</td><td>---</td><td>(2,870)</td></tr>
<tr><td>Sales of properties</td><td>(32)</td><td>—</td><td>(27)</td><td>(2,264)</td><td>---</td><td>(2,323)</td></tr>
<tr><td>Recognition of Distributable realized gains / (losses) on:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr>
<tr><td>Loans</td><td>(454)</td><td>—</td><td>—</td><td>12,636</td><td>—</td><td>12,182</td></tr>
<tr><td>Securities</td><td>(51)</td><td>—</td><td>—</td><td>(682)</td><td>—</td><td>(733)</td></tr>
<tr><td>Woodstar Fund investments</td><td>—</td><td>—</td><td>18,208</td><td>—</td><td>—</td><td>18,208</td></tr>
<tr><td>Derivatives</td><td>8,570</td><td>248</td><td>(235)</td><td>1,650</td><td>(2,907)</td><td>7,326</td></tr>
<tr><td>Foreign currency</td><td>803</td><td>—</td><td>13</td><td>—</td><td>---</td><td>816</td></tr>
<tr><td>Earnings from unconsolidated entities</td><td>—</td><td>2,146</td><td>—</td><td>469</td><td>---</td><td>2,615</td></tr>
<tr><td>Sales of properties</td><td>32</td><td>—</td><td>(35)</td><td>1,928</td><td>---</td><td>1,925</td></tr>
<tr><td>Distributable Earnings (Loss)</td><td>$ 185,728</td><td>$ 27,139</td><td>$ 34,177</td><td>$ 42,389</td><td>$ (137,930)</td><td>$ 151,503</td></tr>
<tr><td>Distributable Earnings (Loss) per Weighted Average Diluted Share</td><td>$ 0.49</td><td>$ 0.07</td><td>$ 0.09</td><td>$ 0.11</td><td>$ (0.36)</td><td>$ 0.40</td></tr>
</table>

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