Starwood Real Estate Income Trust, Inc. Notes to Consolidated Financial Statements
8. Unsecured Line of Credit During May 2022, the Company increased its unsecured line of credit by $1.1 billion with additional banks for a total borrowing capacity of approximately $1.6 billion. In May 2024, the Company entered into an amendment to extend its unsecured line of credit for two years, at which time the Company may request an additional one-year extension thereafter. Interest under the unsecured line of credit is determined based on one-month U.S. dollar-denominated SOFR plus 2.5%. The repayment of the unsecured line of credit is guaranteed by the Company. As of December 31, 2024 and 2023, there were approximately $1.4 billion and $0.9 billion of borrowings outstanding on the unsecured line of credit, respectively. 9. Other Assets and Other Liabilities
The following table summarizes the components of Other assets ($ in thousands):
December 31, 2024
December 31, 2023
Held-for-sale assets Derivative instruments Intangible assets, net
$
685,674 $
—
368,871 161,945 106,545 23,920 14,671
554,263 220,036 127,573 24,022
Receivables
Prepaid expenses
Deferred financing costs, net
6,006 7,929 5,043 2,757
Interest receivable Deferred tax assets
216
—
Other
3,637
Total other assets
$
1,365,479 $
947,629
The following table summarizes the components of Other liabilities ($ in thousands):
December 31, 2024
December 31, 2023
Accounts payable and accrued expenses
$
74,097 $
75,809 73,145 69,642 59,567 44,374 43,044 35,792 12,402 46,178 11,894 5,005 7,506 484,358 — —
Real estate taxes payable Accrued interest expense Intangible liabilities, net Tenant security deposits Distributions payable Deferred tax liabilities Held-for-sale liabilities
68,784 58,650 47,601 41,880 40,612 35,485 18,257 14,790 12,328 9,505 8,430 10,267 6,409
Deposits received on pending sales Right-of-use liability - operating leases
Derivative instruments Deferred income Other taxes payable
Other
Total other liabilities
$
447,095 $
10. Derivatives The Company uses derivative financial instruments to minimize the risks and/or costs associated with the Company’s investments and financing transactions. The Company has not designated any of its derivative financial instruments as hedges as defined under GAAP. Although not designated as hedging instruments under GAAP, the Company’s derivatives are not speculative and are used to manage the Company’s exposure to interest rate movements, fluctuations in foreign exchange rates, and other identified risks. The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, the Company enters into derivative financial instruments with counterparties it believes to have appropriate credit ratings and that are major financial institutions with which the Company and its affiliates may also have other financial relationships.
132
Made with FlippingBook flipbook maker