Harsh Amani's questions to Starwood Property Trust Inc (STWD) leadership • Q3 2024
Question
Harsh Amani of Green Street inquired about how Starwood balances near-term capital allocation between infrastructure and CRE lending, and asked for an outlook on the conduit business given the current rate environment.
Answer
President Jeff DiModica explained that while infrastructure lending has been highly attractive, the CRE market's sheer size means it will likely return to ~75% of new business. He noted the conduit business is having a near-record year due to tightening credit spreads but expects a more normalized, though still profitable, year ahead rather than significant further growth.