424B3 1 ck0001711929-424b3.htm 424B3 ck0001711929-424b3.htm

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-220997

 

STARWOOD REAL ESTATE INCOME TRUST, INC.

SUPPLEMENT NO. 4 DATED JUNE 12, 2020

TO THE PROSPECTUS DATED APRIL 15, 2020

This prospectus supplement (“Supplement”) is part of and should be read in conjunction with the prospectus of Starwood Real Estate Income Trust, Inc., dated April 15, 2020 (as supplemented to date, the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus. References herein to the “Company,” “we,” “us,” or “our” refer to Starwood Real Estate Income Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

The purposes of this Supplement are as follows:

 

 

•

to provide an update to our May 2020 rent collections;

 

 

•

to provide an update on our 2020 redemptions to date;

 

 

•

to disclose the transaction price for each class of our common stock as of July 1, 2020;

 

 

•

to disclose the calculation of our May 31, 2020 NAV per share for each class of our common stock; and

 

 

•

to provide an update on the status of our current public offering (the “Offering”).

 

 May 2020 Rent Collections Update

As of May 31, 2020, we collected 97% of our rent across all asset classes vs. 97% in April 2020. Here is the breakdown by asset class:

 

 

•

Multifamily (44% of AUM) is 95% collected vs. 96% last month at the same time

 

•

Office (35% of AUM) is 100% collected vs. 98% last month at the same time

 

•

Industrial (9% of AUM) is 100% collected vs. 97% last month at the same time

 

•

Medical Office (6% of AUM) is 94% collected vs. 94% last month at the same time

 

Hotel (6% of AUM) continues to recover. Month-over-month occupancies have increased from 19% at the end of April 2020 to 26% as the end of May 2020.

 

The trend remains positive. As of June 10, 2020, rent collections are slightly ahead of where they were on the same date in May 2020 and month-to-date hotel occupancies are up 6% to 32%. This gives us continued optimism in the strength of our portfolio.

 

 

2020 Redemptions Update

 

As of May 31, 2020, total redemptions for the year are just under 1.6% as a percentage of our NAV.

 

 

 

 

 

 

SREIT-SUP4-0620

 

1

July 1, 2020 Transaction Price

The transaction price for each share class of our common stock for subscriptions accepted as of July 1, 2020 (and repurchases as of June 30, 2020) is as follows:

 

 

Transaction Price

(per share)

 

Class S

 

$

21.27

 

Class T

 

$

21.14

 

Class D

 

$

21.17

 

Class I

 

$

21.23

 

 

 

The July 1, 2020 transaction price for each of our share classes is equal to such class’s NAV per share as of May 31, 2020. A detailed presentation of the NAV per share is set forth below. No transactions or events have occurred since May 31, 2020 that would have a material impact on our NAV per share. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees.

May 31, 2020 NAV Per Share

NAV per share is calculated in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.starwoodNAV.reit. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus for information on how our NAV is determined. The Advisor is ultimately responsible for determining our NAV. All our property investments are appraised annually by third party appraisal firms in accordance with our valuation guidelines and such appraisals are reviewed by our independent valuation advisor. We have included a breakdown of the components of total NAV and NAV per share for May 31, 2020 along with the immediately preceding month.

 

Our total NAV presented in the following tables includes the NAV of our Class S, Class T, Class D, and Class I common stockholders, as well as partnership interests of the Operating Partnership held by parties other than the Company. The following table provides a breakdown of the major components of our NAV as of May 31, 2020 ($ and shares in thousands):

 

 

Components of NAV

 

May 31, 2020

 

Investments in real properties

 

$

3,525,662

 

Investments in real estate-related securities

 

 

278,084

 

Cash and cash equivalents

 

 

57,583

 

Restricted cash

 

 

56,134

 

Other assets

 

 

22,695

 

Debt obligations

 

 

(2,365,495

)

Subscriptions received in advance

 

 

(22,365

)

Other liabilities

 

 

(72,750

)

Performance participation accrual

 

 

(46

)

Management fee payable

 

 

(1,531

)

Accrued stockholder servicing fees (1)

 

 

(647

)

Minority interest

 

 

(22,645

)

Net asset value

 

$

1,454,679

 

Number of outstanding shares

 

 

68,460

 

 

(1)

Stockholder servicing fees only apply to Class S, Class T and Class D shares. For purposes of NAV we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under accounting principles generally accepted in the United States of America (“GAAP”), we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class S, Class T and Class D shares. As of May 31, 2020, we have accrued under GAAP $63.2 million of stockholder servicing fees payable to the Dealer Manager related to the Class S, Class T and Class D shares sold.

2

The following table provides a breakdown of our total NAV and NAV per share by share class as of May 31, 2020:

 

NAV Per Share

 

Class S

Shares

 

 

Class T

Shares

 

 

Class D

Shares

 

 

Class I

Shares

 

 

Third-party Operating Partnership Units (1)

 

 

Total

 

Net asset value

 

$

795,060,962

 

 

$

44,751,766

 

 

$

50,531,051

 

 

$

554,134,687

 

 

$

10,200,496

 

 

$

1,454,678,962

 

Number of outstanding shares

 

 

37,371,266

 

 

 

2,117,183

 

 

 

2,386,535

 

 

 

26,104,881

 

 

 

480,539

 

 

 

68,460,404

 

NAV per share as of May 31, 2020

 

$

21.27

 

 

$

21.14

 

 

$

21.17

 

 

$

21.23

 

 

$

21.23

 

 

 

 

 

    

(1)

Includes the partnership interests of the Operating Partnership held by the Special Limited Partner.

 

Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the May 31, 2020 valuations, based on property types.

 

Property Type

 

Discount

Rate

 

 

Exit

Capitalization

Rate

 

Multifamily

 

6.7%

 

 

5.3%

 

Hotel

 

9.3%

 

 

8.1%

 

Office

 

8.1%

 

 

7.5%

 

Industrial

 

6.9%

 

 

6.2%

 

Medical office

 

7.5%

 

 

7.4%

 

 

These assumptions are determined by the Advisor, and reviewed by our independent valuation advisor. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values:

 

Input

 

Hypothetical

Change

 

Multifamily

Investment

Values