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Starwood REIT Reports Monthly NAV Per Share and Acquisitions Update

Starwood Real Estate Income Trust updates its estimated monthly net asset value per share for its classes of common stock as of August 31, 2021.

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Starwood Real Estate Income Trust Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has updated its estimated monthly net asset value per share for its classes of common stock as of August 31, 2021.

Class S shares, which are purchased through brokerage and transaction-based accounts, have an NAV per share of approximately $23.82, compared to the previous month’s valuation of $22.89 per share.

Class T shares, which are typically available through brokerage and transaction-based accounts, have an NAV per share of approximately $23.73. The previous month, Class T shares had an NAV per share of $22.79.

Class D shares have a net asset value per share of approximately $23.66. 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. The previous month, Class D shares had an NAV per share of $22.73.

Class I shares, which are customarily sold to endowments, foundations, pension funds and other institutional investors, have an NAV per share of $23.75. The previous month, Class I shares had an NAV per share of $22.83.

Shares were initially priced at $20.00 each plus applicable selling commissions and fees.

According to the REIT, the increase in the monthly NAV is reflective of “strong market fundamentals,” primarily across its multifamily and industrial assets.

Due to the demand for multifamily apartments, which represent 54 percent of the REIT’s real estate portfolio as of the end of August, there was a 9.1 percent year-over-year rent growth over the trailing 30 days on combined new and renewal leases (up from 6.5 percent in July), including 13.7 percent growth on new leases. In addition, due to demand and elevated tenant retention rates, the REIT’s market rate apartments are 97 percent occupied while its affordable housing assets are 98 percent occupied.

Starwood REIT’s acquisition pipeline includes 12 separate transactions totaling $6.2 billion of acquisition value across multifamily (90 percent), industrial (8 percent) and net lease (2 percent) investments.

Starwood REIT’s investments in real estate increased from $8.1 billion in July to nearly $8.6 billion in August, while its real estate debt investments decreased from $983 million to $977 million.

Cash and cash equivalents increased from $542.5 million to $747.4 million, month-over-month, restricted cash decreased from $487.5 million to $453.2 million, and other assets increased from $281.5 million to $522 million.

The REIT’s debt obligations increased from just shy of ($4.9 billion) in July to nearly ($5 billion) in August. Secured financings on investments in real estate debt decreased from ($139 million) to ($137.6 million), subscriptions received in advance decreased from ($406 million) to ($368.4 million), and other liabilities increased from ($152.5 million) to ($160.5 million).

The REIT had nearly 231.9 million shares outstanding as of August 31, 2021, compared to 207.3 million shares the previous month.

Starwood Real Estate Income Trust Inc., which invests in stabilized real estate across the United States and Europe, raised $3.9 billion in its initial public offering from December 2017 to June 2021.

Starwood REIT’s $10 billion follow-on offering was declared effective in early June 2021 and has raised $1.7 billion, as of mid-September 2021. As of August 31, 2021, the REIT’s aggregate NAV was $5.5 billion.

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