Starwood REIT Increases Monthly NAV Per Share
Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, updated its per share net asset values for its Class S, Class I, Class D and Class T shares of common stock as of April 30, 2020.
Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, updated its per share net asset values for its Class S, Class I, Class D and Class T shares of common stock as of April 30, 2020. The NAVs per share increased approximately 0.07 percent compared to last month’s valuation.
Class S shares, which are purchased through brokerage and transaction-based accounts, have a NAV per share of approximately $21.26, compared to the previous month’s valuation of $21.25 per share.
Class T shares, which are typically available through brokerage and transaction-based accounts, have a NAV per share of approximately $21.12. Last month, Class T shares had a NAV per share of $21.08.
Class D shares have a net asset value per share of approximately $21.16. These shares are sold through fee-based programs known as wrap accounts as well as participating broker-dealers, certain registered investment advisers, and bank trust departments or other organizations. Last month, Class D shares had a NAV per share of $21.13.
Class I shares, which are customarily sold to endowments, foundations, pension funds and other institutional investors, have a NAV per share of $21.22. Last month, Class I shares had a NAV per share of $21.20.
Shares were initially priced at $20.00 each plus applicable selling commissions and fees.
“Our office, industrial and multifamily assets continue to perform well despite COVID-19 challenges,” the REIT said in a filing with the Securities and Exchange Commission. “Our securities investments used to provide liquidity to clients, which are primarily legacy [residential mortgage-backed securities], have stabilized after a volatile March.”
The company indicated that hospitality remained challenged throughout April as occupancy declined from 45 percent at the end of March to 18 percent at the end of April. These assets represent 6.1 percent of its $4 billion asset base.
“We anticipate continued softness in this sector until domestic travel resumes, and to that end, we have underwritten and valued the assets recognizing impaired cash flows for an extended period of time,” the company said. “All of our hotels are open and we believe Starwood Capital and our company remain particularly well-suited to manage our hospitality assets through to recovery.”
As of April 30, 2020, the REIT collected approximately 97 percent of its rents for the month, the same percentage as March 2020. The company indicated that as of May 11, 2020, rent collections were on par with where they were on the same date in April 2020.
“It is clear that tenants are taking their credit ratings seriously and for the most part, those that can pay rent, are and the fiscal stimulus (mainly the Paycheck Protection Program or “PPP” and enhanced unemployment benefits) seems to have helped the few tenants who were initially seeking rent relief,” Starwood REIT added.
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 $1.4 billion in investor equity as of May 2020. As of March 31, 2020, the company owned 93 investments in real estate ($3.5 billion) and had 84 positions in real estate-related securities ($280.8 million).
