Five Classes of SREIT Receive Upgraded Credit Ratings by Morningstar DBRS

Starwood Real Estate Income Trust, or SREIT, a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, reported its net asset value per share as of July 31, 2025, as well as provided an update on July repurchase requests. The REIT’s total net asset value was $8.73 billion, a 0.72% decrease from the prior month’s approximate $8.79 billion.

Meanwhile, Morningstar DBRS – a provider of independent credit rating services and opinions – upgraded its credit ratings on five classes of Commercial Mortgage Pass-Through Certificates Series 2021-IND issued by SREIT Trust 2021-IND as follows:

• Class B to AA (high) (sf) from AA (low) (sf);
• Class C to A (high) (sf) from A (low) (sf);
• Class D to BBB (sf) from BBB (low) (sf);
• Class E to BB (high) (sf) from BB (low) (sf); and
• Class F to B (high) (sf) from B (low) (sf)

In addition, Morningstar DBRS confirmed the following credit rating of Class A at AAA (sf). At the same time, Morningstar DBRS changed the trends on Classes B, C, D, E, and F to Positive from Stable. The trend on Class A is Stable.

Morningstar DBRS’ long-term credit ratings provide opinions on the risk of default as it pertains to corporate and sovereign entities, financial institutions, and project and structured finance instruments globally. The company considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

According to Morningstar DBRS, the credit rating upgrades reflect the overall stable-to-improving performance of the underlying collateral, as evidenced by the year-over-year growth in net cash flow and stable weighted-average portfolio occupancy rate that has remained above 90% since issuance. In addition, the transaction benefits from tenant granularity, institutional sponsorship, favorable asset quality, and strong leasing trends, all of which have contributed to long-term cash flow stability. In order to further test the durability of the credit ratings, Morningstar DBRS’ analysis considered both base-case and stressed scenarios, the results of which provide additional support for the credit rating upgrades and changes in trends made with this review.

The underlying loan is secured by the borrower’s fee-simple interest in a portfolio of 15 industrial properties totaling nearly 2.5 million square feet, concentrated throughout infill areas of the Phoenix – 11 properties representing 85.9% of the portfolio’s net rentable area, or NRA – and Las Vegas, i.e., four properties representing 14.1% of the portfolio’s NRA metropolitan statistical areas.

Both markets generally benefit from a high level of growth and favorable industrial demand trends. Loan proceeds of $341.2 million along with $165.4 million of borrower equity financed the borrower’s acquisition of the underlying portfolio for $487.4 million and covered closing costs associated with the transaction. The portfolio benefits from institutional-quality sponsorship from Starwood Capital Group Holdings L.P., which indirectly controls SREIT, the sponsor.

SREIT’s declared monthly NAV per share as of July 31, was as follows:

Class S shares had a NAV per share of $20.99, compared to $21.10 per share as of June 30, 2025, an approximate 0.52% decrease.

Class T shares had a NAV per share of $21.01, compared to $21.12 per share the previous month, an approximate 0.52% decrease.

Class D shares had a NAV per share of $20.57, compared to $20.67 per share the previous month, an approximate 0.48% decrease.

Class I shares had a NAV per share of $20.82 compared to $20.92 per share the previous month, an approximate 0.48% decrease.

OP units also had a NAV per share of $20.82 compared to $20.92 per share the previous month.

The REIT received repurchase requests in excess of its updated 0.5% monthly limit in July 2025. Per plan terms, the company honored all repurchase requests for the month on a pro rata basis up to the limitation. As such, approximately 4% of each stockholder’s July repurchase request was satisfied.

Starwood Real Estate Income Trust launched in December 2017 and invests in stabilized real estate across the United States and Europe.

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