Our Strategy

What We
Look For

SREIT’s investment strategy is simple. We focus on the following four areas:

1. Stable Cash Flow
  • Distribute cash flow for income
  • No development, minimal vacancy, minimal tenant rollover
2. High-Quality, Well-Located Real Estate
  • Favor high-growth Sunbelt markets driven by strong job, income, and population growth
  • Emphasis on favorable supply and demand dynamics
  • Ability to appreciate in value over time
3. Market Section
  • Ability to invest across global opportunities, where we find attractive risk-adjusted returns for investors
  • Primary focus on the U.S. and Europe
4. Property Types
  • Dynamically shift asset class focus in response to evolving markets
  • Currently prioritize Multifamily and Industrial asset classes
  • Other select opportunities include Single-Family Rentals, Extended Stay Hotels, Self-Storage and Floating Rate Loans

SREIT Market Selection

U.S.

Target Growth Markets

  • Markets with population, employment and GDP growth higher than the national average
  • Low to no state taxes
  • Affordability
International

Target Capital Cities in Western Europe

  • Difficult to add to supply
  • Ability to take advantage of low financing cost
  • Fragmented marketplace
Data as of February 29, 2024. The highlighted map represents all states in the U.S. in which SREIT has at least a 3.0% weighting. This map also highlights the countries that make up SREIT’s total Europe allocation. Weighting is measured as the asset value of real estate properties and unconsolidated investments for each market against the total asset value of all real estate properties and unconsolidated investments.

Primary Investment Themes

SREIT Current Portfolio Positioning

87%
In Rental Housing, Industrial, and Real Estate Loans
5%
In other sectors that are performing well including, self-storage and extended-stay hotels (which perform like rental housing)
92%
Allocation to Asset Classes that are Well-Positioned in the Current Environment
Residential
(Includes Multifamily and Single-Family Rental)
  • Surging home values and limited for-sale inventory
  • Widening affordability gap to rent vs. own
  • Strong labor market with rising wages and disposable income
Industrial
 
  • Continued growth in e-commerce and online retail
  • Strong tenant demand and low vacancy rates
  • Right sizing of inventory levels creating incremental demand
Self-Storage
 
  • Workforce mobility and work-from-home leading to increased demand
  • Demographic tailwinds from Millennials
  • Defensive sector dynamics
Summary of Risk Factors / Footnotes

An investment in Starwood Real Estate Income Trust, Inc. involves a high degree of risk. You should purchase these securities only if you can afford the complete loss of your investment. You should carefully read the information set forth in the “Risk Factors” section of the prospectus before buying our shares. Risks include, but are not limited to:

  • We have incurred GAAP net losses attributable to stockholders and an accumulated deficit in the past and may incur GAAP net losses attributable to stockholders and continue to have an accumulated deficit in the future.
  • This is a “blind pool” offering. You will not have the opportunity to evaluate our future investments before we make them.
  • Since there is no public trading market for shares of our common stock, repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase plan provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases are subject to available liquidity and other significant restrictions. Further, our board of directors may modify or suspend our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid.
  • We cannot guarantee that we will make distributions, and if we do we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources.
  • The purchase and repurchase price for shares of our common stock are generally based on our prior month’s NAV (subject to material changes as described in the prospectus) and are not based on any public trading market. While there are independent annual appraisals of our properties, the appraisal of properties is inherently subjective, and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day.
  • We have no employees and are dependent on Starwood REIT Advisors, L.L.C. (the “Advisor”) to conduct our operations. The Advisor will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Other Starwood Accounts (as defined in the prospectus), the allocation of time of its investment professionals and the substantial fees that we will pay to the Advisor.
  • This is a “best efforts” offering. If we are not able to continue to raise a substantial amount of capital on an ongoing basis, our ability to achieve our investment objectives could be adversely affected.
  • There are limits on the ownership and transferability of our shares.
  • If we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease.
  • The acquisition of properties may be financed in substantial part by debt. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors.
  • Investing in commercial real estate assets involves certain risks, including, but not limited to: changes in values caused by global, national, regional or local economic performance, the performance of the real estate sector, unemployment, stock market volatility and other impacts of the COVID-19 pandemic, demographic or capital market conditions; increases in interest rates and lack of availability of financing; vacancies, fluctuations in the average occupancy and room rates for hospitality properties; and bankruptcies, financial difficulties or lease defaults by our tenants.
  • A change in U.S. tax laws could adversely impact benefits of investing in our shares.

This sales and advertising literature does not constitute an offer to sell nor a solicitation of an offer to buy or sell securities. An offering is made only by the prospectus. This material must be read in conjunction with the Starwood Real Estate Income Trust, Inc. prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of these securities or determined if the prospectus is truthful or complete, or determined whether the offering can be sold to any or all purchasers in compliance with existing or future suitability or conduct standards. Any representation to the contrary is a criminal offense.