- Starwood says media reports misrepresent SREIT’s health, attributing NAV decline mostly to investor redemptions.
- Year-to-date total return is down just 1%, while same-store NOI rose 12% over two years.
- Multifamily makes up 70% of SREIT’s portfolio, with strong rent growth and stable occupancy in affordable housing.
Starwood Defends Its Numbers
According to The WSJ, Starwood responded to concerns about SREIT redemptions, saying recent media reports miss key context. The firm attributes the 40% NAV drop since 2022 mainly to the $5B in liquidity it provided to investors—not to poor portfolio performance.
Starwood also noted that SREIT absorbed nearly $800M in mark-to-market hedge losses. These losses offset earlier gains that helped cushion returns as the Fed raised interest rates by five percentage points.
Operating Income and Redemption Activity
Same-store net operating income rose 12% over the past two years, putting SREIT ahead of many non-traded REIT peers. Around 75% of investors have never filed a redemption request, according to Starwood. Those who submitted requests during the limited redemption period have received about 40% of their investment back.
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Multifamily Portfolio Drives Growth
SREIT’s portfolio includes 70% multifamily assets, with one-third in affordable housing. Starwood expects 7% rent growth this year in that segment, which it calls the “crown jewel” of the portfolio. The firm believes this mix gives it a stability edge over competitors.
Looking Ahead
SREIT continues to raise capital, although more slowly than in prior years. Starwood says this pace matches broader market trends. With leverage at 57% of NAV, the company says it will stay focused on long-term value and responsible capital management.
