Starwood Credit REIT, Calif. Teachers’ Retirement System Enter Into Subscription Agreement

Starwood Credit Real Estate Income Trust, a private placement real estate investment trust, and California State Teachers’ Retirement System, or CalSTRS, entered into a subscription agreement where CalSTRS has agreed to periodically purchase an aggregate amount of up to $200 million in Class I shares from the trust on or before July 16, 2027, at a price per share equal to the trust’s most recently determined net asset value of its Class I shares.

CalSTRS has agreed to hold all of the Class I shares it receives until the earlier of: the first date that the trust’s NAV reaches $1.5 billion; July 16, 2029, at which point CalSTRS may, from time to time, request that the trust repurchase its Class I shares through the Trust’s share repurchase plan.

In connection, the company has amended its declaration of trust.

As of July 1, 2025, the company sold an aggregate of 256,172.347 of its common shares of beneficial interest, par value $0.01 per share, for aggregate consideration of approximately $5.2 million at a price per Class S, Class I, and Class E shares equal to approximately $20.16, $20.14, and $20.77, respectively, plus applicable upfront selling commissions and dealer manager fees.

During the three months ended March 31, 2025, revenues totaled approximately $17.1 million and consisted of interest income of $16 million and other revenue of $1.1 million. During the three months ended March 31, 2024, revenues totaled approximately $5.7 million and consisted of interest income of $4.7 million and other revenues of $1 million. According to the company, the increase was primarily due to loan origination activity throughout the year ended Dec. 31, 2024, which resulted in an $11.3 million increase in the interest income during the three months ended March 31, 2025, as compared to March 31, 2024.

During the three months ended March 31, 2025, and the same range in 2024, interest expense was approximately $10.3 million and $2.7 million, respectively. The $7.6 million increase in interest expense was due to the larger debt balances outstanding required to finance the expanded loan investment portfolio. During the three months ended March 31, 2025, and the same period in 2024, financing fees totaled $1 million and $0.8 million, respectively. The $0.2 million increase was primarily due to additional costs incurred on expanding the number of financing facilities available to finance loan origination activities.

For the three months ended March 31, 2025, and 2024, general and administrative expenses were approximately $0.2 million for each quarter.

During the three months ended March 31, 2025, the net gain from operations and financing was approximately $0.9 million. During the three months ended March 31, 2024, the net loss from operations and financing was approximately $0.7 million. The increase was primarily due to gains on foreign currency translation of approximately $1.2 million.

Starwood Credit Real Estate Income Trust, formed in June 2023, originates, acquires, finances and manages a portfolio of primarily commercial real estate debt investments – focused on senior secured, floating-rate commercial real estate loans diversified across both geography and asset class. The company’s loans are primarily secured by properties located in U.S., European, and Australian markets and include multifamily, industrial, and select other real estate asset classes, such as student housing, self-storage, life science, and data center assets.

To a lesser extent, the REIT may also invest in infrastructure loans and other real estate-related debt and equity securities, including commercial mortgage-backed securities and collateralized loan obligations. The company is externally managed by Starwood Credit Advisors LLC.

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