Starwood Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, has provided an update on its portfolio and estimated monthly net asset value per share for its classes of common stock as of May 31, 2023.
The company’s portfolio is approximately 82% allocated to rental housing and industrial properties. Starwood’s portfolio is 75% allocated to the Southeast and Southwest U.S. with a significant amount allocated to Florida and Texas.
The company says it also continues to maintain liquidity to navigate the current environment. As of the end of May 2023, Starwood had access to approximately $1.8 billion of liquidity or 14% of NAV in the form of cash, marketable securities and lines of credit.
As of May 31, 2023, the REIT’s NAV was approximately $12.6 billion, compared to approximately $12.8 billion the previous month.
Class S shares, which are purchased through brokerage and transaction-based accounts, have an NAV per share of approximately $25.52, compared to $25.51 the previous month.
Class T shares, which are typically available through brokerage and transaction-based accounts, have an NAV per share of approximately $25.52. The previous month, Class T shares were valued at $25.51.
Class D shares have a net asset value per share of approximately $25.08, compared to $25.07 the previous month. 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.
Class I shares, which are sold to endowments, foundations, pension funds and other institutional investors, have an NAV per share of $25.33. The previous month, Class I shares had an NAV per share of $25.32.
Shares were initially priced at $20.00 each plus applicable selling commissions and fees.
The REIT had 497.2 million shares outstanding as of May 31, 2023, compared to 505.7 million shares the previous month.
Starwood REIT has continued to receive significant redemption requests in excess of 2% per month. In both April and May, repurchase requests equaled 4.2% of the company’s aggregate monthly NAV. As a result, the company honored repurchase requests equal to 47.7% of each stockholder’s repurchase request in April and 47.8% in May. Starwood reported that investors who began redeeming in November 2022, when the requests were first prorated, would have received 98% of their money back in the seven months ended June 2023.
Starwood Real Estate Income Trust invests in stabilized real estate across the United States and Europe. Its initial $5 billion offering launched in December 2017 and raised approximately $3.9 billion from investors before closing in June 2021. The first follow-on offering, comprised of $10 billion in shares, launched immediately afterward and raised approximately $8 billion. The second follow-on offering, which is currently offering up to $18 billion in shares of common stock, launched in August 2022 and has raised approximately $516.6 million in the primary offering to-date.