Starwood REIT Lowers 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 March 31, 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 March 31, 2020.
Class S shares, which are purchased through brokerage and transaction-based accounts, have a NAV per share of approximately $21.25, compared to the previous month’s valuation of $21.72 per share.
Class T shares, which are typically available through brokerage and transaction-based accounts, have a NAV per share of approximately $21.08. Last month, Class T shares had a NAV per share of $21.55.
Class D shares have a net asset value per share of approximately $21.13. 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 $21.60.
Class I shares, which are customarily sold to endowments, foundations, pension funds and other institutional investors, have a NAV per share of $21.20. Last month, Class I shares had a NAV per share of $21.68.
Shares were initially priced at $20.00 each plus applicable selling commissions and fees.
“COVID-19 continues to impact virtually every part of the U.S. economy,” Starwood REIT said in a filing with the Securities and Exchange Commission. “Our March 31, 2020 NAV per share decreased by 2.2 percent compared to our February 29, 2020 NAV per share.”
The company said that the decrease in NAV was principally driven by the two smallest allocations in its portfolio: securities and hotels.
Securities account for 8 percent of the REIT’s portfolio, and as of the end of March, the securities allocation was approximately 91 percent invested in residential mortgage backed securities and approximately 9 percent invested in commercial asset backed securities.
“In the middle of March, the capital markets experienced severe volatility as a result of market dislocation,” the REIT noted. “Values have since rebounded, much like the equity markets have, and stabilized thanks to the Federal government’s tremendous injection of liquidity into the system.”
Approximately 7 percent of Starwood REIT’s portfolio is invested in branded, select-service hotels, and due to travel declines and stay at home orders, hotel occupancies declined from approximately 83 percent in February to approximately 45 percent by the end of March.
Despite the month-over-month decline in NAV, Starwood REIT indicated that its April 2020 rent collections across the multifamily, office and industrial properties have been “extremely positive,” and they have received a limited number of requests from tenants seeking rent relief. As of April 14, 2020, the REIT had collected 91 percent of its rental income for these asset classes, while on the same day in March 2020, collected 92 percent.
As of April 30, 2020, the REIT had collected 97 percent of rent across all asset classes (multifamily, office, industrial, hotel, and medical office), the same percentage as the prior month at the same time.
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 December 31, 2019, the company owned 71 investments in real estate, one investment in an unconsolidated real estate venture, and had 75 positions in real estate-related securities.
