Reported 5 months ago
Starwood Capital Group's SREIT, one of America's largest REITs, is facing a severe cash crunch due to challenges in the real estate market, including higher borrowing costs, fewer buyers, and investor redemption requests. Despite receiving $1.3 billion in redemption requests in Q1 2024 and only paying out less than half, SREIT's liquidity has decreased significantly, with its current balance at $750 million. Options to ease the crisis include selling assets, halting redemptions, or borrowing, all of which come with significant drawbacks. If SREIT fails to navigate these challenges, it could have long-term implications for REIT investing.
Source: YAHOO