Starwood REIT NAV Dips 0.6% in September; Q3 Buybacks Total $13 Million
Starwood Real Estate Income Trust Inc., or SREIT, posted a roughly 0.6% decline in net asset value per share across all share classes in September, and the nontraded real estate investment trust’s third-quarter share repurchases totaled about $13 million under the redemption limits it imposed in April.
SREIT’s Class I shares had an NAV of $19.16 as of Sept. 30, down from $19.27 at Aug. 31. Class S and Class T shares each fell to $19.34 from $19.45, and Class D shares fell to $18.92 from $19.03. Total NAV slipped to approximately $7.87 billion from $7.91 billion. The September values set SREIT’s transaction prices for subscriptions accepted Nov. 2.
Class I NAV is now down about 2.5% from $19.65 at March 31, the last month-end before SREIT’s board suspended most share repurchases. It is about 6.2% below the $20.42 Class I NAV reported for Sept. 30, 2025, when total NAV stood at approximately $8.51 billion, AltsWire reported at the time.
Redemptions remain tightly restricted. Under its amended share repurchase plan, SREIT buys back shares only upon a stockholder’s death or qualifying disability and for accounts with balances below $5,000, each category capped at $5 million per month. SREIT accepted approximately $4.2 million of repurchases in July, $5.1 million in August, and $3.7 million in September, covering all requests in those categories, the company said.
That compares with approximately $120.3 million of shares SREIT repurchased in the first quarter, the last under its prior repurchase policy, AltsWire previously reported.
On Oct. 30, SREIT declared an October gross distribution of $0.0770 per share for each share class, the same monthly amount it has declared since the April cut, payable on or about Nov. 4. Because the payout has held steady while NAV has declined, that amount equates to an annualized Class I distribution rate of about 4.8% at the Sept. 30 NAV, according to SREIT, up from the 4.7% rate set in April.
SREIT’s outstanding shares and operating partnership units held steady at about 409.2 million in September. Investments in real estate fell to approximately $20.91 billion from $20.98 billion, and investments in real estate debt fell to $955.6 million from $984.4 million. Debt obligations declined to approximately $11.77 billion from $11.80 billion.
The September valuations used a weighted-average discount rate of 6.9% and an exit capitalization rate of 5.5% for multifamily properties, SREIT’s largest property type, and 7.4% and 5.8%, respectively, for industrial properties. For quarter-end months, those assumptions are set by SREIT’s independent valuation adviser or third-party appraisers, the company said.
SREIT’s September NAV was the second calculated since it closed its $1.02 billion joint venture with Apollo Global Management on Aug. 3, under which Apollo affiliates took a 41.5% stake in about 120 of SREIT’s affordable housing properties. SREIT used the proceeds to retire its senior secured revolving credit facility and pay down its unsecured line of credit, AltsWire previously reported. Noncontrolling interests in consolidated entities, which include Apollo’s stake, totaled approximately $1.15 billion at Sept. 30, up from about $123.3 million at July 31, before the deal closed.
As of Oct. 16, SREIT had sold approximately $6.4 million of shares in the primary portion of its up to $10 billion continuous offering and issued approximately $65.6 million of shares through its distribution reinvestment plan. As of Sept. 16, those figures were $5.8 million and $58.2 million, respectively.
SREIT is managed by Starwood Capital Group.
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