Starwood REIT Amends DRIP and Share Repurchase Plan
Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has amended its distribution reinvestment plan and share repurchase plan.
Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has amended its distribution reinvestment plan and share repurchase plan.
The board of Starwood REIT approved a new DRIP which will become effective October 31, 2020, to clarify that a participant may terminate participation in the plan at any time, without penalty, by delivering at least 10 business days’ prior written notice to the company. However, the REIT may, in its discretion, accept and terminate participation for any notice received less than 10 business days prior to the payment of a distribution.
The board also approved an amended share repurchase program, which became effective immediately, to clarify that the one-year holding period for purposes of determining the early repurchase deduction is measured from the first calendar day of the month the shares were issued.
Stockholders who have received shares of common stock in exchange for their operating partnership units may include the period of time the stockholder held operating partnership units for calculating the holding period for shares of common stock.
The total amount of repurchases is limited to no more than 2 percent of the REIT’s aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5 percent of its aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the immediately preceding quarter).
There is no minimum holding period for shares of common stock, and stockholders can request that the REIT repurchase their shares at any time. However, subject to limited exceptions, shares that have not been outstanding for at least one year are repurchased at 95 percent of the transaction price.
In other Starwood REIT news, the company recently updated its monthly net asset values per share for its share classes of common stock as of September 30, 2020.
Starwood Real Estate Income Trust Inc., which invests in stabilized real estate across the United States and Europe, broke escrow in December 2018 and raised $1.7 billion in investor equity as of mid-October 2020, as well as $44.5 million in distribution reinvestment proceeds. As of the third quarter of 2020, the company’s investments in real estate totaled nearly $3.9 billion and real estate-related securities totaled $228.5 million.
