CEO Advises Caution in Investing in Real Estate Income Trusts
- Barry Sternlicht advises investors not to treat Starwood REIT property fund as an ATM
- Starwood Capital Group CEO warns about potential liquidity risks in similar funds
- Sreit caps redemptions at 0.33% of net asset value per month and 1% per quarter
Barry Sternlicht, chairman and CEO of Starwood Capital Group, has warned investors not to treat his $10 billion Starwood Real Estate Income Trust (Sreit) as an ATM. He emphasized the importance of having liquidity but cautioned against expecting immediate returns from such funds. Sreit and similar funds like Blackstone Inc.’s Real Estate Income Trust have faced scrutiny for their limited investor redemptions amidst a decline in U.S. commercial real estate prices due to the pandemic and rising interest rates. Despite these challenges, Sternlicht maintains that his fund has time to navigate the market and isn’t forced to liquidate assets. Sreit has capped redemptions at 0.33% of net asset value per month and 1% per quarter.
Source: https://www.marketwatch.com/story/barry-sternlicht-says-investors-shouldnt-think-of-starwood-reits-property-fund-as-an-atm-29eb3174?mod=newsviewer_click
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Barry Sternlicht’s comments on commercial real estate investment funds and the current market conditions. It includes relevant details about Starwood Capital Group, Sreit’s redemption plans, and Sternlicht’s views on interest rates.
Noise Level: 6
Noise Justification: The article is mostly focused on reporting statements made by Barry Sternlicht without providing much analysis or context. It also contains some repetitive information and does not offer any actionable insights or new knowledge for the reader.
Public Companies: Starwood Capital Group (STWD), Blackstone Inc. (BX)
Key People: Barry Sternlicht (Chairman and CEO of Starwood Capital Group)
Financial Relevance: Yes
Financial Markets Impacted: Commercial real estate funds and investment trusts
Financial Rating Justification: The article discusses the comments of Barry Sternlicht, CEO of Starwood Capital Group, on investors’ withdrawals from commercial real estate funds like Starwood Real Estate Income Trust. It also mentions the impact of interest rates on these funds and the market conditions affecting their liquidity.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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