

SREIT focuses on generating its targeted returns by primarily purchasing high-quality assets that have strong current cash flows and do not require complex repositioning, which would disrupt the objective of current income. The acquisition team focuses on investments where 70%-80% of the total return can be generated through current income, seeking to de-risk the strategy by lessening the reliance on the residual value to achieve returns.
SREIT has the ability to invest across global opportunities, where it finds attractive risk-adjusted returns for investors. It is also able to dynamically shift asset class focus in response to evolving markets. SREIT is strategically allocated to mainly rental housing and industrial today. In the U.S., SREIT targets the high-growth Sunbelt markets due to higher levels of job, income, and population growth, as well as low-to-no income taxes and better relative affordability when compared to the major gateway markets. Starwood believes affordability and workforce mobility are key factors driving performance for these Sunbelt markets, particularly in rental housing.
1031 EXCHANGE RISK: Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts, and certain tax consequences may vary depending on the individual circumstances of each investor. Section 1031 rules that must be carefully followed to qualify for a 1031 exchange. We strongly encourage you to seek guidance from both a qualified intermediary (QI) and a tax professional to navigate his process and ensure compliance with relevant regulations. Please note that RealtyMogul does not provide tax advice.