Starwood Real Estate Income Trust, Inc. Notes to Consolidated Financial Statements
Interest Rate Contracts Certain of the Company’s transactions expose the Company to interest rate risks, which include exposure to variable interest rates on certain loans secured by the Company’s real estate in addition to its secured financings of investments in real estate debt. The Company uses derivative financial instruments, which includes interest rate caps and swaps, and may also include options, floors, and other interest rate derivative contracts, to limit the Company’s exposure to the future variability of interest rates. The following tables detail the Company’s outstanding interest rate derivatives that were non-designated hedges of interest rate risk (notional amounts in thousands): December 31, 2024
Weighted Average Maturity (Years)
Weighted Average Strike Rate
Number of Instruments
Interest Rate Derivatives
Notional Amount
Index
Interest Rate Caps - Property debt Interest Rate Caps - Property debt Interest Rate Swaps - Property debt Interest Rate Swaps - Property debt Interest Rate Swaps - Property debt Total interest rate derivatives
69
$ € $ €
9,401,374 2.1% SOFR 109,905 1.0% EURIBOR 120,061 0.8% SOFR 207,721 1.9% EURIBOR
1.3 0.4 0.2 2.6 3.1 1.4
3 1 3 2
NOK 520,000 2.5% NIBOR
78
2.1%
December 31, 2023
Weighted Average Maturity (Years)
Weighted Average Strike Rate
Number of Instruments
Interest Rate Derivatives
Notional Amount
Index
Interest Rate Caps - Property debt Interest Rate Caps - Property debt Interest Rate Swaps - Property debt Interest Rate Swaps - Property debt Interest Rate Swaps - Property debt Total interest rate derivatives
70
$ € $ €
9,567,541 1.6% SOFR 175,468 1.1% EURIBOR 117,863 0.8% SOFR 213,458 1.9% EURIBOR
2.1 1.0 1.2 3.6 4.1 2.1
4 1 3 2
NOK 520,000 2.5% NIBOR
80
1.6%
Foreign Currency Forward Contracts Certain of the Company’s international investments expose it to fluctuations in foreign currency exchange rates and interest rates. These fluctuations may impact the value of the Company’s cash receipts and payments in terms of its functional currency, the U.S. dollar. The Company uses foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. The following table details the Company’s outstanding foreign currency forward contracts that were non-designated hedges of foreign currency risk (notional amounts in thousands): December 31, 2024 December 31, 2023 Foreign Currency Forward Contracts Number of Instruments Notional Amount Number of Instruments Notional Amount Buy USD/Sell EUR Forward 40 € 528,759 60 € 577,283 Buy USD/Sell DKK Forward 8 DKK 1,210,016 12 DKK 1,301,016 Buy USD/Sell AUD Forward 5 AUD 621,759 5 AUD 621,759 Buy USD/Sell NOK Forward 12 NOK 412,700 9 NOK 1,160,941 Buy USD/Sell GBP Forward — £ — 4 £ 142,858 Valuation and Financial Statement Impact The following table details the fair value of the Company’s derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset (1) Position Fair Value of Derivatives in a Liability (2) Position December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Interest rate derivatives $ 325,991 $ 537,390 $ — $ — Foreign currency forward contracts 42,880 16,873 9,505 46,178 Total derivatives $ 368,871 $ 554,263 $ 9,505 $ 46,178
Included in Other assets on the Company’s Consolidated Balance Sheets. Included in Other liabilities on the Company’s Consolidated Balance Sheets.
(1) (2)
133
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