Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Registrant Name | STARWOOD CREDIT REAL ESTATE INCOME TRUST | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001986395 | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Securities Act File Number | 000-56577 | |
Entity Address, Postal Zip Code | 33139 | |
Entity Current Reporting Status | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 93-6487687 | |
City Area Code | 305 | |
Local Phone Number | 695-5500 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Address, Address Line One | 2340 Collins Avenue | |
Entity Address, City or Town | Miami Beach | |
Entity Address, State or Province | FL | |
Class S Common Shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,487,343 | |
Class E Common Shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,634,831 | |
Class I Common Shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,136,163 | |
Class T Common Shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Class D Common Shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 2,957 | $ 777 |
Loans receivable, at fair value | 251,387 | 158,288 |
Accrued interest receivable | 1,389 | 214 |
Prepaid expenses | 125 | 0 |
Total assets | 255,858 | 159,279 |
LIABILITIES AND EQUITY | ||
Loans payable, at fair value | 164,869 | 120,196 |
Due to advisor | 7,847 | 4,497 |
Interest payable | 556 | 305 |
Distribution payable | 549 | 246 |
Accrued expenses and other liabilities | 247 | 140 |
Total liabilities | 174,068 | 125,384 |
Commitments and contingencies (Note 6) | ||
Redeemable common shares - Class E shares, par value $0.01 per share; 1,628,286 and 1,603,050 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 32,873 | 32,199 |
Equity | ||
Additional paid-in capital | 51,179 | 3,683 |
Accumulated deficit and cumulative distributions | (2,291) | (1,991) |
Total shareholders' equity | 48,917 | 1,696 |
Total liabilities, redeemable common shares, and equity | 255,858 | 159,279 |
Common Stock Class S [Member] | ||
Equity | ||
Common shares | 20 | 3 |
Common Stock Class I [Member] | ||
Equity | ||
Common shares | $ 9 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Common shares, par value | $ 0.01 | |
Common stock outstanding | 2,837,725 | 326,800 |
Common Class S [Member] | ||
Common shares, par value | $ 0.01 | $ 0.01 |
Common stock issued | 1,969,181 | 259,750 |
Common stock outstanding | 1,969,181 | 259,750 |
Common Class I [Member] | ||
Common shares, par value | $ 0.01 | $ 0.01 |
Common stock issued | 868,544 | 67,050 |
Common stock outstanding | 868,544 | 67,050 |
Common Class E Shares [Member] | ||
Redeemable common shares, par value | $ 0.01 | $ 0.01 |
Redeemable common shares, shares issued | 1,628,286 | 1,603,050 |
Redeemable common shares, shares outstanding | 1,628,286 | 1,603,050 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) $ / shares shares | ||
Revenues | ||
Interest income | $ 4,658 | |
Other revenue | 998 | |
Total Revenues | 5,656 | |
Expenses | ||
Interest expense | 2,709 | |
Professional fees | 767 | |
Financing fees | 182 | |
Management fees | 60 | |
Performance fees | 128 | |
General and administrative | 64 | |
Total Expenses | 3,910 | |
Unrealized gains (losses) from operations and financing | ||
Unrealized loss on loans receivable | (783) | |
Unrealized gain on loans payable | 77 | |
Total unrealized loss from operations and financing, net | (706) | |
Net income | $ 1,040 | |
Net income per common share, basic | $ / shares | $ 0.29 | |
Net income per common share, diluted | $ / shares | $ 0.29 | |
Weighted-average common shares outstanding, basic | shares | 3,610,109 | |
Weighted-average common shares outstanding, diluted | shares | 3,610,758 | [1] |
[1] Diluted earnings per share takes into account the effect of dilutive instruments, such as unvested stock awards. As of March 31, 2024, 3,002 unvested shares were outstanding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Redeemable Common Shares and Shareholders' Equity (Unaudited) - 3 months ended Mar. 31, 2024 - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Accumulated Earnings (Deficit) and Cumulative Distributions [Member] | Redeemable Common Stock [Member] | Common Class S [Member] Common Stock [Member] | Common Class I [Member] Common Stock [Member] |
Temporary equity, balance at Dec. 31, 2023 | $ 32,199 | $ 32,199 | ||||
Balance at Dec. 31, 2023 | 1,696 | $ 3,683 | $ (1,991) | $ 3 | $ 1 | |
Temporary equity, common shares issued | 506 | |||||
Common shares issued | 50,679 | 50,654 | 17 | 8 | ||
Offering costs | (3,005) | (3,005) | ||||
Temporary equity, amortization of share grants | 15 | |||||
Net income | 1,040 | 1,040 | ||||
Temporary equity, remeasurement of redeemable common shares | 153 | |||||
Remeasurement of redeemable common shares | (153) | (153) | ||||
Distributions declared on common shares | (1,340) | (1,340) | ||||
Temporary equity, balance at Mar. 31, 2024 | 32,873 | $ 32,873 | ||||
Balance at Mar. 31, 2024 | $ 48,917 | $ 51,179 | $ (2,291) | $ 20 | $ 9 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows (Unaudited) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |
Net income | $ 1,040 |
Adjustments to reconcile net income to net cash provided by operating activities | |
Unrealized gain on loans payable | (77) |
Unrealized loss on loans receivable | 783 |
Financing fees | 182 |
Amortization of share grants | 15 |
Change in assets and liabilities | |
Increase in due to advisor | 719 |
Increase in other assets | (1,300) |
Increase in other liabilities | 358 |
Net cash provided by operating activities | 1,720 |
CASH FLOWS FROM INVESTING ACTIVITIES | |
Loan origination and funding activities | (93,882) |
Net cash used in investing activities | (93,882) |
CASH FLOWS FROM FINANCING ACTIVITIES | |
Borrowings under loans payable | 93,500 |
Financing fees | (182) |
Repayments of loans payable | (48,750) |
Contributions received from common shares issued | 51,185 |
Offering costs | (374) |
Distributions | (1,037) |
Net cash provided by financing activities | 94,342 |
Net change in cash and cash equivalents | 2,180 |
Cash and cash equivalents, beginning of period | 777 |
Cash and cash equivalents, end of period | 2,957 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest | 2,458 |
Non-cash activities: | |
Accrued shareholder servicing fee due to affiliate | 2,623 |
Accrued offering costs due to affiliate | 8 |
Distribution payable | $ 303 |
Organization and Business Purpo
Organization and Business Purpose | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | 1. Organization and Business Purpose Starwood Credit Real Estate Income Trust (the “Company”) was formed on June 28, 2023 as a Maryland statutory trust and intends to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. The Company was organized to originate, acquire, finance and manage a portfolio of primarily commercial real estate (“CRE”) debt investments, focused on senior secured, floating-rate CRE loans diversified across both geography and asset class. The Company’s CRE loans are expected to be primarily secured by properties located in U.S., European and Australian markets and include multifamily, industrial and select other CRE asset classes, such as student housing, self-storage, life science and data center assets. To a lesser extent, the Company also may invest in (1) other real asset lending strategies, including infrastructure loans and (2) other real estate-related debt and equity securities, including commercial mortgage-backed securities and collateralized loan obligations. The Company is externally managed by Starwood Credit Advisors, L.L.C. (the “Advisor”), an indirect, wholly-owned subsidiary of Starwood Capital Group Holdings L.P. (“Starwood Holdings” and together with any entity that is controlled by, controls or is under common control with Starwood Capital Group Holdings L.P., “Starwood Capital” or the “Sponsor”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) . All intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC. Fair Value Option The Company has elected the fair value option for certain eligible financial assets and liabilities including CRE loans, infrastructure loans, real estate securities and liabilities associated with borrowing facilities. These financial assets and liabilities for which the Company has elected the fair value option are recorded in Loans receivable, at fair value and Loans payable, at fair value on the condensed consolidated balance sheets. The fair value elections were made to create a more direct alignment between the Company’s financial reporting and the calculation of net asset values per share used to determine the prices at which investors can purchase and redeem shares of the Company’s common shares (including redeemable common shares) of beneficial interest, par value $ 0.01 per share (“common shares”). The decision to elect the fair value option is determined on an instrument-by-instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately on the Company’s condensed consolidated balance sheet from those instruments using another accounting method. The Company’s fair value option elections will be made in accordance with the guidance in Accounting Standards Codification (“ASC”) 825, Financial Instruments (“ASC 825”) that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. In the cases of loans and securities investments for which the fair value option is elected, loan origination fees and costs related to the origination or acquisition of the instrument should be immediately recognized in earnings on the condensed consolidated statement of operations within Other revenue. In the cases of debt facilities for which the fair value option is elected, financing fees related to the debt should be immediately recognized as an expense on the condensed consolidated statement of operations within Financing fees. Unrealized gains and losses on assets and liabilities for which the fair value option has been elected are also reported in earnings without deferral. This is because under the fair value option, a lender reports the instrument at its exit price (i.e., the price that would be received to sell the instrument in an orderly transaction), which reflects the market’s assessment of the instrument’s cash flows and risks and does not include any entity-specific costs or fees. Income Taxes The Company intends to elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2023 . Since the Company expects to qualify for taxation as a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes 90 % of its taxable income to its shareholders. REITs are subject to a number of other organizational and operational requirements. Even though the Company expects to qualify for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. Share-based Payments The Company recognizes the cost of share-based compensation and payment transactions in the financial statements using the same expense category as would be charged for payments in cash. The fair value of the awards granted to the Company’s independent trustees is recorded to expense on a straight-line basis over the vesting period for the entire award, with an offsetting increase in shareholders’ equity. For grants to trustees, the fair value is determined based upon the NAV on the grant date. On December 1, 2023 t he Company granted 3,002 restricted Class E shares to its independent trustees with a fair value of $ 60,040 based on the NAV per share as of December 1, 2023 that vest one year from the date of grant. For the three months ended March 31, 2024, the Company recognized compensation expenses of $ 15,000 . None of the shares granted to the trustees have vested as of March 31, 2024. The Advisor has elected to receive Class E shares as payment for the performance fees earned. During the three months ending March 31, 2024, the Advisor earned performance fees of $ 0.1 million, which are to be paid to the Advisor in the form of 6,342 Class E shares in April 2024. The Class E shares issued to the Advisor as payment for performance fees due are recorded as an increase to shareholders’ equity with an offsetting decrease to performance fees payable (Due to Advisor) on the date of the delivery of the shares. As discussed in Note 7 – “ Redeemable Common Shares ” , the Class E shares are classified in temporary equity and presented as Redeemable common shares on the Company’s balance sheets at values adjusted to equal what the redemption amount would be as if redemption were to occur at the relevant reporting date. No performance fees were earned by the Advisor for the period ended December 31, 2023. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, single asset commercial mortgage-backed securities (“CMBS”), loan investments and interest receivable. The Company may place cash investments in excess of insured amounts with high quality financial institutions. The Company performs ongoing analysis of credit risk concentrations in its investment portfolio by evaluation exposure to various markets, underlying property types, term, tenant mix and other credit metrics. As of March 31, 2024, the Company's assets included two CRE loans. Refer to Note 3- “ Investment in Loans Receivable ” for additional information. Recent Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU is effective for our fiscal year ending December 31, 2024 and interim quarters beginning in 2025, with early adoption permitted. It must be retrospectively applied to all prior periods presented. We do not expect this ASU will have a material impact on the Company. On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which improves income tax disclosures by primarily requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU is effective for our fiscal year ending December 31, 2025, with early adoption permitted. It is to be applied on a prospective basis, with retrospective application permitted. We do not expect this ASU will have a material impact on the Company’s income tax disclosures. |
Investment in Loans Receivable
Investment in Loans Receivable | 3 Months Ended |
Mar. 31, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Investment in Loans Receivable | 3. Investment in Loans Receivable As of March 31, 2024, the Company's held for investment loan portfolio was as follows (amounts in thousands): Description Location Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Payment Terms Maximum Maturity Date (3) Multifamily Houston, TX 2/9/2024 8.57 % $ 96,300 $ 93,800 $ 92,906 Monthly; I/O 2/11/2030 Multifamily Hayward, CA 11/30/2023 8.57 % $ 185,050 $ 160,082 $ 158,481 Monthly; I/O 12/9/2028 $ 281,350 $ 253,882 $ 251,387 As of December 31, 2023, the Company's held for investment loan portfolio was as follows (amounts in thousands): Description Location Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Payment Terms Maximum Maturity Date (3) Multifamily Hayward, CA 11/30/2023 8.60 % $ 185,050 $ 160,000 $ 158,288 Monthly; I/O 12/9/2028 $ 185,050 $ 160,000 $ 158,288 (1) This column represents the weighted average interest rate for each loan as of period end. Loans earn interest at the one-month Term Secured Overnight Financing Rate ("SOFR") plus a spread. (2) Loan amounts consist of outstanding principal balance plus unfunded loan commitments for each loan. (3) Maximum maturity date assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to satisfaction of certain predefined conditions as defined in the respective loan agreements. |
Loans Payable
Loans Payable | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Loans Payable | 4. Loans Payable The following table presents the value of loans payable as of the period ended March 31, 2024 (amounts in thousands): Description Weighted Average Interest Rate (2) Maximum Facility Size Available Capacity Debt Amount Outstanding Fair Value of Debt Fair Value of Collateral Current Maturity Date Maximum Maturity Date Repurchase Agreement (1) 7.58 % $ 250,000 $ 84,750 $ 165,250 $ 164,869 $ 251,387 12/14/2025 12/14/2028 $ 250,000 $ 84,750 $ 165,250 $ 164,869 $ 251,387 The following table presents the value of loans payable as of the period ended December 31, 2023 (amounts in thousands): Description Weighted Average Interest Rate (2) Maximum Facility Size Available Capacity Debt Amount Outstanding Fair Value of Debt Fair Value of Collateral Current Maturity Date Maximum Maturity Date Repurchase Agreement (1) 7.61 % $ 250,000 $ 129,500 $ 120,500 $ 120,196 $ 158,288 12/14/2025 12/14/2028 $ 250,000 $ 129,500 $ 120,500 $ 120,196 $ 158,288 (1) The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. (2) This column represents the weighted average interest rate as of period end. Borrowings under our repurchase agreement carry interest at one-month Term SOFR plus a spread. On December 14, 2023, the Company entered into a Master Repurchase Agreement (together with the related transaction documents, the “Repurchase Agreement”), with Citibank, N.A. (“Citibank”), to finance the acquisition and origination by the Company of eligible loans as more particularly described in the Repurchase Agreement. The Repurchase Agreement provides for asset purchases by Citibank of up to $ 250 million (the “Facility”). As of March 31, 2024 and December 31, 2023, based on the value of the loan assets pledged as collateral and the maximum advance rates attributable to each collateral loan by the lender, the Company was permitted to borrow up to $ 200.7 million and $ 128 million, respectively, under the terms of the Repurchase Agreement, of which approximately $ 35.4 million and $ 7.5 million, respectively, remained available for borrowing by the Company. Advances under the Repurchase Agreement accrue interest at a per annum rate equal to the Term SOFR Reference Rate (as defined in the Repurchase Agreement) for a one-month period plus a margin as agreed upon by Citibank and the Company for each transaction. The maturity date of the Facility is December 14, 2025, subject to three (3) one (1) year extension options, subject to satisfaction of certain customary conditions. In connection with the Repurchase Agreement, the Company provided a Guaranty (the “Guaranty”), under which the Company guarantees up to a maximum liability of 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. The Guaranty may become full recourse to the Company upon the occurrence of certain events as described in the Guaranty. The Repurchase Agreement and the Guaranty contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. As of March 31, 2024, the Company is in compliance with all covenants. On November 30, 2023, we entered into a credit agreement with Starwood Capital Group Management L.LC. The agreement provided for maximum borrowings of $ 148 million. We incurred interest on the loan at a rate based on the one-month Term SOFR plus 2.5 %. The sole draw of $ 125.8 million under the agreement was executed on November 30, 2023 and the proceeds were used to originate a first mortgage loan and mezzanine loan on a single property. The loan was subsequently paid off in two installments with the last being $ 120.5 million on December 20, 2023 when the remaining debt balance was refinanced with proceeds from the Repurchase Agreement (as defined above). The interest accrued and paid on this loan was $ 0.6 millio n . |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Liabilities | 5. Accrued Expenses and Other Liabilities The following table summarizes the components of accrued expenses and other liabilities (amounts in thousands): March 31, 2024 December 31, 2023 Deposit liability $ - $ 125 Trustee compensation payable 45 15 Accrued operating expenses 201 - Other 1 - Total accrued expenses and other liabilities $ 247 $ 140 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies As of March 31, 2024 and December 31, 2023, the Company is not subject to any material litigation nor is the Company aware of any material litigation threatened against it. |
Redeemable Common Shares
Redeemable Common Shares | 3 Months Ended |
Mar. 31, 2024 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Common Shares | 7. Redeemable Common Shares As of July 14, 2023, the Company was authorized to issue an unlimited number of shares classified as common shares, par value $ 0.01 per share. The Company was capitalized through the purchase by Starwood Real Estate Income Holdings, L.P. of 50 common shares for an aggregate purchase price of $ 1,000 . On December 1, 2023, the Company amended its Declaration of Trust, pursuant to which the Company is authorized to issue an unlimited number of common shares of beneficial interest, par value $ 0.01 per share, including an unlimited number of shares classified as Class T shares, an unlimited number of shares classified as Class S shares, an unlimited number of shares classified as Class D shares, an unlimited number of shares classified as Class I shares, and an unlimited number of shares classified as Class E shares, and an unlimited number of shares classified as preferred shares of beneficial interest, par value $ 0.01 per share. On November 30, 2023, in connection with the Initial Capitalization (as defined below), the Company issued an aggregate of 1,575,000 of its common shares to Starwood Real Estate Income Holdings, L.P., an affiliate of the Advisor (“Starwood RE Income Holdings”) at a price per share of $ 20.00 for an aggregate purchase price of $ 31.5 million (which were subsequently changed into Class E shares in connection with the Company’s amended Declaration of Trust). Additionally, on December 1, 2023, the Company issued 28,000 Class E shares to other affiliates of Starwood Capital and investors eligible to purchase Class E shares at a price per share of $ 20.00 for an aggregate purchase price of $ 0.6 million in its continuous, blind pool private offering. The following table details the movement of and proceeds received from the Company’s outstanding redeemable common shares during the three months ended March 31, 2024 (amounts in thousands except share amounts): Class E Common Shares Shares outstanding as of December 31, 2023 1,603,050 Redeemable common shares issued 24,934 DRIP shares issued 302 Shares outstanding as of March 31, 2024 1,628,286 Proceeds from issuance of redeemable common shares $ 506 At March 31, 2024, all issued and outstanding Class E shares are classified in temporary equity given that among other reasons (i) with respect to Class E shares held by Starwood Capital or its affiliate that were issued in connection with the Initial Capitalization (as defined below), the Company is required to repurchase such shares upon the request of the holder following the Applicable Liquidity Date (as defined below), subject to certain limitations and terms set forth in the definitive subscription agreement relating to the Initial Capitalization and (ii) with respect to Class E shares held by the Advisor or its affiliate that were issued in respect of management fees and/or performance fees, the Company is required to repurchase such shares upon the request of the Advisor, subject to the terms of the advisory agreement. The redeemable common shares are subsequently adjusted to equal what the redemption amount would be as if redemption were to occur at the reporting date. As of March 31, 2024, the redeemable common shares are remeasured using the NAV per share as of March 31, 2024 with any adjustment between the carrying value and the redemption value recorded in shareholders' equity. Starwood Capital has agreed, from time to time, to purchase from the Company an aggregate amount of not less than $ 150 million in Class E shares, at a price per share equal to the Company’s most recently determined NAV of its Class E shares, or if an NAV has yet to be calculated, then $ 20.00 (the “Initial Capitalization”). Starwood Capital has agreed to hold all of the Class E shares it receives in connection with the Initial Capitalization until, (i) with respect to the Class E shares issued in respect of the initial $ 125 million of its commitment, the earlier of (a) the first date that our NAV reaches $ 1 billion and (b) the second anniversary of the initial closing of our continuous private offering, (ii) with respect to the Class E shares issued in respect of Starwood Capital’s commitment in excess of $ 125 million, but not greater than $ 150 million, at least the second anniversary of the initial closing of our private offering and (iii) with respect to any remaining Class E shares (representing purchases exceeding $ 150 million), at any time following the initial closing of our continuous private offering (such date, the “Applicable Liquidity Date”). Distributions The following table details the aggregate distributions declared for Class E redeemable common shares for the three months ended March 31, 2024: Class E Common Shares Aggregate gross distributions declared per common share $ 0.3876 Shareholder servicing fee per common share (1) - Net distributions declared per common share $ 0.3876 (1) There is no shareholder servicing fee with respect Class E shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders' Equity Authorized Capital As of July 14, 2023, the Company was authorized to issue an unlimited number of shares classified as common shares, par value $ 0.01 per share. On December 1, 2023, the Company amended its Declaration of Trust, pursuant to which the Company is authorized to issue an unlimited number of common shares of beneficial interest, par value $ 0.01 per share, including an unlimited number of shares classified as Class T shares, an unlimited number of shares classified as Class S shares, an unlimited number of shares classified as Class D shares, an unlimited number of shares classified as Class I shares, and an unlimited number of shares classified as Class E shares, and an unlimited number of shares classified as preferred shares of beneficial interest, par value $ 0.01 per share. The Company has initiated a continuous, blind pool private offering, pursuant to which it is offering and selling its common shares to a limited number of accredited investors (as defined in Regulation D under the Securities Act of 1933, as amended), including common shares classified as Class T shares, Class S shares, Class D shares, Class I shares and Class E shares. The share classes have different upfront selling commissions and ongoing shareholder servicing fees. The initial per share purchase price for shares of the Company’s common shares in the continuous private offering was $ 20.00 per share plus applicable upfront selling commissions and dealer manager fees. Thereafter, the purchase price per share for each class of our common shares will vary and will generally equal the Company’s prior month’s NAV per share, as calculated monthly, plus applicable upfront selling commissions and dealer manager fees. Common Shares On October 31, 2023, the Company commenced its continuous, blind pool private offering of an unlimited number of its common shares. On December 1, 2023, in connection with the Company’s continuous, blind pool private offering, the Company sold 259,750 Class S shares and 67,050 Class I shares, in addition to 28,000 Class E shares, as discussed in Note 7 – “ Redeemable Common Shares ” for aggregate consideration of approximately $ 7.1 million at a price per share equal to $ 20.00 plus applicable upfront selling commissions and dealer manager fees. The following table details the movement of and proceeds received from the Company’s outstanding common shares during the three months ended March 31, 2024 (amounts in thousands except share amounts): Class S Common Shares Class I Common Shares Total Shares outstanding as of December 31, 2023 259,750 67,050 326,800 Common shares issued 1,699,306 798,559 2,497,865 DRIP shares issued 10,125 2,935 13,060 Shares outstanding as of March 31, 2024 1,969,181 868,544 2,837,725 Proceeds from issuance of common shares $ 34,623 $ 16,056 $ 50,679 Share Repurchase Plan The board of trustees has adopted a share repurchase plan and expects to commence the share repurchase plan for the quarterly repurchase period ending March 31, 2024, which is the first full calendar quarter following the initial closing of the continuous private offering. Pursuant to the share repurchase plan, shareholders may request on a quarterly basis that the Company repurchase all or any portion of their shares. The Company is 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 quarter in its discretion. Repurchases will be made at the transaction price in effect on the repurchase date, except that shares that have not been outstanding for at least one year will be repurchased at 95 % of the transaction price (an “Early Repurchase Deduction”). The one-year holding period is measured from the first calendar day of the month the shares were issued to the subscription closing date immediately following the prospective repurchase date. The Early Repurchase Deduction will not apply to shares acquired through the distribution reinvestment plan (“DRIP” ). The aggregate NAV of total repurchases of Class T shares, Class S shares, Class D shares, and Class I shares (including repurchases at certain non-U.S. investor access funds primarily created to hold our shares) under the share repurchase plan will be limited to no more than 5 % of the aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the immediately preceding month). Shares issued to the Advisor pursuant to the Advisory Agreement will not be subject to these repurchase limitations. In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any calendar quarter under the share repurchase plan, shares repurchased at the end of the calendar quarter will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted after the start of the next calendar quarter, or upon the recommencement of the share repurchase plan, as applicable. The board of trustees designated the following persons as “Key Persons” under the share repurchase plan: Barry Sternlicht, Jeffrey Dishner, Ellis Rinaldi, Dennis Schuh and any individual that replaces such persons. The share repurchase plan provides that if two or more Key Persons are no longer actively involved in the business and activities of Starwood Capital, or are otherwise unable or unwilling to exercise the authority and discharge those day-to-day management responsibilities with respect to Starwood Capital as are currently exercised and discharged by such Key Person(s) (such inactivity, inability or unwillingness, “Inactivity”), and Starwood Capital has not appointed one or more replacements who will fulfill substantially all of the duties of one of such Key Persons within 90 days from the date such Inactivity began (meaning, for the sake of clarity, that one Key Person’s responsibilities may remain unfilled for longer than 90 days) (a “Key Person Triggering Event”), then the Early Repurchase Deduction is waived with respect to shares that have been purchased in the 12 months preceding the expiration of five business days after the disclosure by the Company of the occurrence of such Key Person Triggering Event (“Disclosure Date”) as set forth herein. If the Disclosure Date is (x) at least one (1) business day prior to the date upon which the transaction price is made available during a quarter-ending month, the Early Repurchase Deduction shall be waived through the first repurchase date or (y) on or following the date upon which the transaction price is made available during a quarter-ending month, the Early Repurchase Deduction shall be waived through the next two (2) repurchase dates. The waiver of the Early Repurchase Deduction set forth in this paragraph will not apply to shares acquired through the DRIP. Under the share repurchase plan, our board of trustees may amend, suspend or terminate the share repurchase plan at any time if it deems such action to be in our best interest. As a result, share repurchases may not be available each quarter. We may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources. Should repurchase requests, in the Company’s judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on the Company as a whole, or should we otherwise determine that investing our liquid assets in real estate or other investments rather than repurchasing our shares is in the best interests of the Company as a whole, then the Company may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Further, the board of trustees may make exceptions to, modify or suspend the share repurchase plan if it deems in its reasonable judgment such action to be in the Company’s best interest. Distributions The following table details the aggregate distributions declared for Class S and Class I common shares for the three months ended March 31, 2024: Class S Common Shares Class I Common Shares (1) Aggregate gross distributions declared per common share $ 0.3876 $ 0.3876 Shareholder servicing fee per common share 0.0423 - Net distributions declared per common share $ 0.3453 $ 0.3876 (1) There is no shareholder servicing fee with respect Class I shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 9. Fair Value GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation Process We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Pricing Verification —We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market. Unobservable Inputs —Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs. Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date. Fair Value on a Recurring Basis We measure the fair value of our loans receivable and loans payable using a discounted cash flow analysis unless observable market data is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of loans receivable and loans payable valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available. Fair Value Disclosure The following table presents our financial assets and liabilities carried at fair value on a recurring basis in the condensed consolidated balance sheet by their level in the fair value hierarchy (amounts in thousands): March 31, 2024 December 31, 2023 Level I Level II Level III Level I Level II Level III Financial Assets: Loans receivable, at fair value - - $ 251,387 - - $ 158,288 Total $ 251,387 $ 158,288 Financial Liabilities: Loans payable, at fair value - - $ ( 164,869 ) - - $ ( 120,196 ) Total - - $ ( 164,869 ) - - $ ( 120,196 ) The following table shows a reconciliation of the beginning and ending fair value measurements of our loans receivable (amounts in thousands): Balance as of December 31, 2023 $ 158,288 Loan originations and fundings 93,882 Unrealized loss ( 783 ) Balance as of March 31, 2024 $ 251,387 The following table shows a reconciliation of the beginning and ending fair value measurements of our loans payable (amounts in thousands): Balance as of December 31, 2023 $ ( 120,196 ) Borrowings under repurchase agreement ( 93,500 ) Repayments under repurchase agreement 48,750 Unrealized gain 77 Balance as of March 31, 2024 $ ( 164,869 ) The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy (amounts in thousands): March 31, 2024 Fair Value Valuation Technique Unobservable Inputs Weighted Average Financial Assets: Loans receivable, at fair value $ 251,387 Discounted cash flow Discount Rate 9.01 % Financial Liabilities: Loans payable, at fair value $ ( 164,869 ) Discounted cash flow Discount Rate 7.94 % December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Weighted Average Financial Assets: Loans receivable, at fair value $ 158,288 Discounted cash flow Discount Rate 9.06 % Financial Liabilities: Loans payable, at fair value $ ( 120,196 ) Discounted cash flow Discount Rate 7.97 % |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions The Company entered into an advisory agreement (the “Advisory Agreement”) with the Advisor. Pursuant to the Advisory Agreement between the Company and the Advisor, the Advisor is responsible for sourcing, evaluating and monitoring the Company’s investment opportunities and making decisions related to the acquisition, origination, management, financing and disposition of the Company’s assets, in accordance with the Company’s investment objectives, guidelines, policies and limitations, subject to oversight by the Company’s board of trustees. Management and Performance Fee As compensation for its services provided pursuant to the Advisory Agreement, the Advisor will be paid a management fee (the “Management Fee”) equal to 1.25 % of NAV per annum for the outstanding Class T shares, Class S shares, Class D shares, and Class I shares, payable monthly in arrears. The Company does not pay the Advisor the Management Fee with respect to the Class E shares. In calculating the Management Fee, we will use our NAV before giving effect to accruals for the Management Fee, Performance Fee, shareholder servicing fees or distributions payable on our common shares. The Management Fee may be paid, at the Advisor’s election, in cash, Class I shares or Class E shares, or any combination thereof. To the extent that the Advisor elects to receive any portion of the Management Fee in Class I shares or Class E shares, we may repurchase such Class I shares or Class E shares from the Advisor at a later date. Our Class I shares or Class E shares obtained by the Advisor will not be subject to our share repurchase plan, including the repurchase limits and any Early Repurchase Deduction (as defined in the Advisory Agreement). The Advisor agreed to waive its Management Fee for the first three months following the initial closing (the period through February 29, 2024) of our continuous private offering, and accordingly, no management fee was earned during the year ended December 31, 2023. During the three months ended March 31, 2024, $ 0.1 million of management fees were earned. The Advisor may be entitled to receive a performance fee (the "Performance Fee”) which is accrued monthly and payable quarterly (or part thereof that the Advisory Agreement is in effect) in arrears. The Performance Fee will be an amount, not less than zero, equal to (i) 12.5 % of the cumulative Core Earnings (as defined in the Advisory Agreement) for the immediately preceding four calendar quarters (each such period, a “4-Quarter Performance Measurement Period”), subject to a hurdle rate, expressed as an annual rate of return on average adjusted capital, equal to 5.0 % (the “Annual Hurdle Rate”), minus (ii) the sum of any performance fees paid to the Advisor with respect to the first three calendar quarters in the applicable 4-Quarter Performance Measurement Period. For purposes of the Performance Fee, “adjusted capital” means cumulative net proceeds generated from sales of our Class T shares, Class S shares, Class D shares and Class I shares (including proceeds from the DRIP) reduced for distributions from dispositions of our investments paid to Class T, Class S, Class D and Class I shareholders and amounts paid to Class T, Class S, Class D and Class I shareholders for share repurchases pursuant to our share repurchase plan. The Advisor will not earn a Performance Fee for any calendar quarter until our Core Earnings for the applicable 4-Quarter Performance Measurement Period exceeds the Annual Hurdle Rate. Once our Core Earnings exceed the Annual Hurdle Rate, the Advisor is entitled to a “catch-up” fee equal to the amount of Core Earnings in excess of the Annual Hurdle Rate, until our Core Earnings for the applicable 4-Quarter Performance Measurement Period exceed a percentage of average adjusted capital equal to the Annual Hurdle Rate divided by 0.875 (or 1 minus 0.125) for the applicable 4-Quarter Performance Measurement Period. Thereafter, the Advisor is entitled to receive 12.5 % of our Core Earnings. Proportional calculation methodologies to be applied prior to the completion of four full calendar quarters are defined in the Advisory Agreement. The Performance Fee may be paid, at the Advisor’s election, in cash, Class I shares or Class E shares, or any combination thereof. The Company does not pay the Advisor a Performance Fee on Class E shares. To the extent that the Advisor elects to receive any portion of the Performance Fee in Class I shares or Class E shares, we may repurchase such Class I shares or Class E shares from the Advisor at a later date. Our Class I shares or Class E shares obtained by the Advisor will not be subject to our share repurchase plan, including the repurchase limits and any Early Repurchase Deduction (as defined in the Advisory Agreement). During the three months ended March 31, 2024, $ 0.1 million of performance fees were earned which the Advisor elected to receive in Class E shares. During the year ended, December 31, 2023, no performance fee was earned. Due to Advisor The Company may retain certain of the Advisor’s affiliates, from time to time, for services relating to the Company’s investments or its operations, which may include capital markets services, restructuring services, valuation services, underwriting and diligence services, and special servicing, as well as services related to mortgage servicing, group purchasing, consulting/brokerage, capital markets/credit origination, loan servicing and asset management, property, title and other types of insurance, management consulting and other similar operational and investment matters. The following table details the components of Due to Advisor as of March 31, 2024 and December 31, 2023 (amounts in thousands): March 31, 2024 December 31, 2023 Accrued operating costs $ 1,454 $ 893 Accrued organization costs 893 888 Accrued offering costs 2,302 2,294 Accrued shareholder servicing fees 3,010 422 Accrued management fees 60 - Accrued performance fees 128 - Total $ 7,847 $ 4,497 Accrued operating costs The Advisor has agreed to advance certain of the Company’s operating expenses through the first anniversary of the date of the initial closing of the continuous private offering. For the three months ended March 31, 2024 and the year ended December 31, 2023 the Advisor incurred operating costs on the Company’s behalf of $ 1.5 million and $ 0.9 million , respectively. The Company will reimburse the Advisor for all such advanced expenses ratably over a 60 -month period following the first anniversary of the initial closing of the continuous private offering. Operating expenses incurred after the first anniversary of the initial closing of its private offering will be paid by the Company as incurred. Accrued organization and offering costs The Advisor has agreed to advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and shareholder servicing fees) through the first anniversary of the date of the initial closing of the continuous private offering. The Advisor had incurred organization and offering costs on the Company’s behalf of $ 3.2 million , consisting of offering costs of $ 2.3 million and organization costs of $ 0.9 million , and $ 3.2 million , consisting of offering costs of $ 2.3 million and organization costs of $ 0.9 million , as of March 31, 2024 and December 31, 2023, respectively. The organization costs are recorded on the condensed consolidated statement of operations and the offering costs are charged to equity. The Company will reimburse the Advisor for all such advanced expenses ratably over a 60 -month period following the first anniversary of the initial closing of the continuous private offering. Accrued shareholder servicing fees The Dealer Manager is entitled to receive shareholder servicing fees of 0.85 % per annum of the aggregate NAV for Class T shares and Class S shares. For Class T shares such shareholder servicing fee includes, an advisor shareholder servicing fee of 0.65 % per annum, and a dealer shareholder servicing fee of 0.20 % per annum, of the aggregate NAV for the Class T shares. However, with respect to Class T shares sold through certain participating broker-dealers, the advisor shareholder servicing fee and the dealer shareholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85 % per annum of the NAV of such shares. The Class D shares will incur a shareholder servicing fee equal to 0.25 % per annum of the aggregate NAV for the Class D shares. The Dealer Manager anticipates that substantially all of the shareholder servicing fees will be retained by, or reallowed (paid) to, participating broker-dealers. For the year ended December 31, 2023 and the three months ended March 31, 2024, the Dealer Manager did not retain any shareholder servicing fees. The Company accrues the estimated amount of the future shareholder servicing fees payable to the Dealer Manager for Class T, Class S, and Class D shares based on the estimated hold period of those shares |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 11. Net Income Per Share Net income per common share for the three months ended March 31, 2024, is computed as follows (in thousands, except for share and per share data): Basic: Net income attributable to Starwood Credit Real Estate Income Trust $ 1,040 Weighted-average common shares outstanding, basic 3,610,109 Basic net income per common share $ 0.29 Diluted: Net income attributable to Starwood Credit Real Estate Income Trust $ 1,040 Weighted-average common shares outstanding, diluted (1) 3,610,758 Diluted net income per common share $ 0.29 (1) Diluted earnings per share takes into account the effect of dilutive instruments, such as unvested stock awards. As of March 31, 2024, 3,002 unvested shares were outstanding. |
Economic Dependency
Economic Dependency | 3 Months Ended |
Mar. 31, 2024 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency The Company will be dependent on the Advisor and its affiliates for certain services that are essential to it, including the sale of the Company’s common shares, origination, acquisition and disposition decisions, and certain other responsibilities. In the event that the Advisor and its affiliates are unable to provide such services, the Company would be required to find alternative service providers. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events On April 25, 2024, the Company invested in a £ 150.0 million ($ 189 million) participation in a £ 1.4 B syndicated credit facility that was established to refinance a portfolio of 312 logistics assets totaling approximately 19 million square feet primarily located in last mile locations across the UK, in key UK logistics markets. The initial term of the underlying loan is two years and the loan also features three one-year extension options subject to satisfaction of certain predefined conditions. On April 23, 2024, the Company entered into a Master Repurchase and Securities Contract Agreement (together with the related transaction documents, the “MS Repurchase Agreement”), with Morgan Stanley Bank, N.A. (“Morgan Stanley”), to finance the acquisition and origination by the Company of eligible investment assets as more particularly described in the MS Repurchase Agreement. The MS Repurchase Agreement provides for asset purchases by Morgan Stanley of up to £ 150.0 million ($189 million) (the “MS Facility”). As of May 10, 2024, based on the value of the investment pledged as collateral and the maximum advanced rate attributed to such collateral by Morgan Stanley, the Company was permitted to borrow up to £ 120 million ($150.2 million) under the terms of the MS Repurchase Agreement. The initial borrowing under the MS Repurchase Agreement has been used to partially finance the investment in the loan participation backed by logistics assets located in the UK as discussed above. Advances under the MS Repurchase Agreement accrue interest at a per annum rate equal to (i) the sum of the Compounded Reference Rate (as defined in the MS Repurchase Agreement) and the Applicable Spread (as defined in the MS Repurchase Agreement) for asset purchases denominated in British Pound Sterling; (ii) the sum of the EURIBOR Rate or Alternative Rate (EUR) (each as defined in the MS Repurchase Agreement), as applicable, and the relevant Applicable Spread for asset purchases denominated in Euros; or (iii) the sum of the BBSY Rate (as defined in the MS Repurchase Agreement) and the relevant Applicable Spread for asset purchases denominated in Australian Dollars. The interest rates described above are subject to adjustment and/or conversion as described in the MS Repurchase Agreement. The maturity date of the Facility is February 15, 2029 , subject to one (1) or more one (1) year extension options at Morgan Stanley’s sole discretion. In connection with the MS Repurchase Agreement, the Company provided a Guaranty (the “MS Guaranty”), under which the Company guarantees up to a maximum liability of 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the MS Repurchase Agreement. The MS Guaranty may become full recourse to the Company upon the commencement of a voluntary bankruptcy or insolvency proceeding by Seller or collusive involuntary bankruptcy or insolvency proceeding against Seller or the Company. The Company is also liable under the Guaranty for actual costs, expenses or liabilities actually incurred by Morgan Stanley resulting from customary “bad boy” events as described in the MS Guaranty. The MS Repurchase Agreement and the MS Guaranty contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. Subsequent to March 31, 2024 through the date of filing, the Company issued the following shares (in thousands, except for share amounts): Shares Gross Proceeds Class S Common Shares 1,499,939 $ 30,316 Class I Common Shares 1,257,885 25,204 Class E Common Shares - - Total 2,757,824 $ 55,520 Subsequent to March 31, 2024 through the date of filing, the Company also issued the following shares under the DRIP (in thousands, except for share amounts): Shares Gross Proceeds Class S Common Shares 18,223 $ 365 Class I Common Shares 9,735 195 Class E Common Shares 203 4 Total 28,161 $ 564 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) . All intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC. |
Fair Value Option | Fair Value Option The Company has elected the fair value option for certain eligible financial assets and liabilities including CRE loans, infrastructure loans, real estate securities and liabilities associated with borrowing facilities. These financial assets and liabilities for which the Company has elected the fair value option are recorded in Loans receivable, at fair value and Loans payable, at fair value on the condensed consolidated balance sheets. The fair value elections were made to create a more direct alignment between the Company’s financial reporting and the calculation of net asset values per share used to determine the prices at which investors can purchase and redeem shares of the Company’s common shares (including redeemable common shares) of beneficial interest, par value $ 0.01 per share (“common shares”). The decision to elect the fair value option is determined on an instrument-by-instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately on the Company’s condensed consolidated balance sheet from those instruments using another accounting method. The Company’s fair value option elections will be made in accordance with the guidance in Accounting Standards Codification (“ASC”) 825, Financial Instruments (“ASC 825”) that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. In the cases of loans and securities investments for which the fair value option is elected, loan origination fees and costs related to the origination or acquisition of the instrument should be immediately recognized in earnings on the condensed consolidated statement of operations within Other revenue. In the cases of debt facilities for which the fair value option is elected, financing fees related to the debt should be immediately recognized as an expense on the condensed consolidated statement of operations within Financing fees. Unrealized gains and losses on assets and liabilities for which the fair value option has been elected are also reported in earnings without deferral. This is because under the fair value option, a lender reports the instrument at its exit price (i.e., the price that would be received to sell the instrument in an orderly transaction), which reflects the market’s assessment of the instrument’s cash flows and risks and does not include any entity-specific costs or fees. |
Income Taxes | Income Taxes The Company intends to elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2023 . Since the Company expects to qualify for taxation as a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes 90 % of its taxable income to its shareholders. REITs are subject to a number of other organizational and operational requirements. Even though the Company expects to qualify for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. |
Share-based Payments | Share-based Payments The Company recognizes the cost of share-based compensation and payment transactions in the financial statements using the same expense category as would be charged for payments in cash. The fair value of the awards granted to the Company’s independent trustees is recorded to expense on a straight-line basis over the vesting period for the entire award, with an offsetting increase in shareholders’ equity. For grants to trustees, the fair value is determined based upon the NAV on the grant date. On December 1, 2023 t he Company granted 3,002 restricted Class E shares to its independent trustees with a fair value of $ 60,040 based on the NAV per share as of December 1, 2023 that vest one year from the date of grant. For the three months ended March 31, 2024, the Company recognized compensation expenses of $ 15,000 . None of the shares granted to the trustees have vested as of March 31, 2024. The Advisor has elected to receive Class E shares as payment for the performance fees earned. During the three months ending March 31, 2024, the Advisor earned performance fees of $ 0.1 million, which are to be paid to the Advisor in the form of 6,342 Class E shares in April 2024. The Class E shares issued to the Advisor as payment for performance fees due are recorded as an increase to shareholders’ equity with an offsetting decrease to performance fees payable (Due to Advisor) on the date of the delivery of the shares. As discussed in Note 7 – “ Redeemable Common Shares ” , the Class E shares are classified in temporary equity and presented as Redeemable common shares on the Company’s balance sheets at values adjusted to equal what the redemption amount would be as if redemption were to occur at the relevant reporting date. No performance fees were earned by the Advisor for the period ended December 31, 2023. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, single asset commercial mortgage-backed securities (“CMBS”), loan investments and interest receivable. The Company may place cash investments in excess of insured amounts with high quality financial institutions. The Company performs ongoing analysis of credit risk concentrations in its investment portfolio by evaluation exposure to various markets, underlying property types, term, tenant mix and other credit metrics. As of March 31, 2024, the Company's assets included two CRE loans. Refer to Note 3- “ Investment in Loans Receivable ” for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU is effective for our fiscal year ending December 31, 2024 and interim quarters beginning in 2025, with early adoption permitted. It must be retrospectively applied to all prior periods presented. We do not expect this ASU will have a material impact on the Company. On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which improves income tax disclosures by primarily requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU is effective for our fiscal year ending December 31, 2025, with early adoption permitted. It is to be applied on a prospective basis, with retrospective application permitted. We do not expect this ASU will have a material impact on the Company’s income tax disclosures. |
Investment in Loans Receivable
Investment in Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of Loans Held for Investment Portfolio | As of March 31, 2024, the Company's held for investment loan portfolio was as follows (amounts in thousands): Description Location Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Payment Terms Maximum Maturity Date (3) Multifamily Houston, TX 2/9/2024 8.57 % $ 96,300 $ 93,800 $ 92,906 Monthly; I/O 2/11/2030 Multifamily Hayward, CA 11/30/2023 8.57 % $ 185,050 $ 160,082 $ 158,481 Monthly; I/O 12/9/2028 $ 281,350 $ 253,882 $ 251,387 As of December 31, 2023, the Company's held for investment loan portfolio was as follows (amounts in thousands): Description Location Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Payment Terms Maximum Maturity Date (3) Multifamily Hayward, CA 11/30/2023 8.60 % $ 185,050 $ 160,000 $ 158,288 Monthly; I/O 12/9/2028 $ 185,050 $ 160,000 $ 158,288 (1) This column represents the weighted average interest rate for each loan as of period end. Loans earn interest at the one-month Term Secured Overnight Financing Rate ("SOFR") plus a spread. (2) Loan amounts consist of outstanding principal balance plus unfunded loan commitments for each loan. (3) Maximum maturity date assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to satisfaction of certain predefined conditions as defined in the respective loan agreements. |
Loans Payable (Tables)
Loans Payable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Securities | The following table presents the value of loans payable as of the period ended March 31, 2024 (amounts in thousands): Description Weighted Average Interest Rate (2) Maximum Facility Size Available Capacity Debt Amount Outstanding Fair Value of Debt Fair Value of Collateral Current Maturity Date Maximum Maturity Date Repurchase Agreement (1) 7.58 % $ 250,000 $ 84,750 $ 165,250 $ 164,869 $ 251,387 12/14/2025 12/14/2028 $ 250,000 $ 84,750 $ 165,250 $ 164,869 $ 251,387 The following table presents the value of loans payable as of the period ended December 31, 2023 (amounts in thousands): Description Weighted Average Interest Rate (2) Maximum Facility Size Available Capacity Debt Amount Outstanding Fair Value of Debt Fair Value of Collateral Current Maturity Date Maximum Maturity Date Repurchase Agreement (1) 7.61 % $ 250,000 $ 129,500 $ 120,500 $ 120,196 $ 158,288 12/14/2025 12/14/2028 $ 250,000 $ 129,500 $ 120,500 $ 120,196 $ 158,288 (1) The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. (2) This column represents the weighted average interest rate as of period end. Borrowings under our repurchase agreement carry interest at one-month Term SOFR plus a spread. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Components of Accrued Expenses and Other Liabilities | The following table summarizes the components of accrued expenses and other liabilities (amounts in thousands): March 31, 2024 December 31, 2023 Deposit liability $ - $ 125 Trustee compensation payable 45 15 Accrued operating expenses 201 - Other 1 - Total accrued expenses and other liabilities $ 247 $ 140 |
Redeemable Common Shares (Table
Redeemable Common Shares (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Class of Stock [Line Items] | |
Schedule of Outstanding Redeemable Common Shares | The following table details the movement of and proceeds received from the Company’s outstanding common shares during the three months ended March 31, 2024 (amounts in thousands except share amounts): Class S Common Shares Class I Common Shares Total Shares outstanding as of December 31, 2023 259,750 67,050 326,800 Common shares issued 1,699,306 798,559 2,497,865 DRIP shares issued 10,125 2,935 13,060 Shares outstanding as of March 31, 2024 1,969,181 868,544 2,837,725 Proceeds from issuance of common shares $ 34,623 $ 16,056 $ 50,679 |
Schedule of Distributions Declared | The following table details the aggregate distributions declared for Class S and Class I common shares for the three months ended March 31, 2024: Class S Common Shares Class I Common Shares (1) Aggregate gross distributions declared per common share $ 0.3876 $ 0.3876 Shareholder servicing fee per common share 0.0423 - Net distributions declared per common share $ 0.3453 $ 0.3876 (1) There is no shareholder servicing fee with respect Class I shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Class E Redeemable Common Shares | |
Class of Stock [Line Items] | |
Schedule of Outstanding Redeemable Common Shares | The following table details the movement of and proceeds received from the Company’s outstanding redeemable common shares during the three months ended March 31, 2024 (amounts in thousands except share amounts): Class E Common Shares Shares outstanding as of December 31, 2023 1,603,050 Redeemable common shares issued 24,934 DRIP shares issued 302 Shares outstanding as of March 31, 2024 1,628,286 Proceeds from issuance of redeemable common shares $ 506 |
Schedule of Distributions Declared | The following table details the aggregate distributions declared for Class E redeemable common shares for the three months ended March 31, 2024: Class E Common Shares Aggregate gross distributions declared per common share $ 0.3876 Shareholder servicing fee per common share (1) - Net distributions declared per common share $ 0.3876 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Outstanding Redeemable Common Shares | The following table details the movement of and proceeds received from the Company’s outstanding common shares during the three months ended March 31, 2024 (amounts in thousands except share amounts): Class S Common Shares Class I Common Shares Total Shares outstanding as of December 31, 2023 259,750 67,050 326,800 Common shares issued 1,699,306 798,559 2,497,865 DRIP shares issued 10,125 2,935 13,060 Shares outstanding as of March 31, 2024 1,969,181 868,544 2,837,725 Proceeds from issuance of common shares $ 34,623 $ 16,056 $ 50,679 |
Schedule of Distributions Declared | The following table details the aggregate distributions declared for Class S and Class I common shares for the three months ended March 31, 2024: Class S Common Shares Class I Common Shares (1) Aggregate gross distributions declared per common share $ 0.3876 $ 0.3876 Shareholder servicing fee per common share 0.0423 - Net distributions declared per common share $ 0.3453 $ 0.3876 (1) There is no shareholder servicing fee with respect Class I shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities on a Recurring Basis | The following table presents our financial assets and liabilities carried at fair value on a recurring basis in the condensed consolidated balance sheet by their level in the fair value hierarchy (amounts in thousands): March 31, 2024 December 31, 2023 Level I Level II Level III Level I Level II Level III Financial Assets: Loans receivable, at fair value - - $ 251,387 - - $ 158,288 Total $ 251,387 $ 158,288 Financial Liabilities: Loans payable, at fair value - - $ ( 164,869 ) - - $ ( 120,196 ) Total - - $ ( 164,869 ) - - $ ( 120,196 ) |
Schedule of Fair Value Measurements of Loans Receivable | The following table shows a reconciliation of the beginning and ending fair value measurements of our loans receivable (amounts in thousands): Balance as of December 31, 2023 $ 158,288 Loan originations and fundings 93,882 Unrealized loss ( 783 ) Balance as of March 31, 2024 $ 251,387 |
Schedule of Fair Value Measurements of Loans Payable | The following table shows a reconciliation of the beginning and ending fair value measurements of our loans payable (amounts in thousands): Balance as of December 31, 2023 $ ( 120,196 ) Borrowings under repurchase agreement ( 93,500 ) Repayments under repurchase agreement 48,750 Unrealized gain 77 Balance as of March 31, 2024 $ ( 164,869 ) |
Schedule of Quantitative Inputs and Assumptions used for Items Categorized in Level 3 of Fair Value | The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy (amounts in thousands): March 31, 2024 Fair Value Valuation Technique Unobservable Inputs Weighted Average Financial Assets: Loans receivable, at fair value $ 251,387 Discounted cash flow Discount Rate 9.01 % Financial Liabilities: Loans payable, at fair value $ ( 164,869 ) Discounted cash flow Discount Rate 7.94 % December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Weighted Average Financial Assets: Loans receivable, at fair value $ 158,288 Discounted cash flow Discount Rate 9.06 % Financial Liabilities: Loans payable, at fair value $ ( 120,196 ) Discounted cash flow Discount Rate 7.97 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Components of Due to Advisor | Due to Advisor The Company may retain certain of the Advisor’s affiliates, from time to time, for services relating to the Company’s investments or its operations, which may include capital markets services, restructuring services, valuation services, underwriting and diligence services, and special servicing, as well as services related to mortgage servicing, group purchasing, consulting/brokerage, capital markets/credit origination, loan servicing and asset management, property, title and other types of insurance, management consulting and other similar operational and investment matters. The following table details the components of Due to Advisor as of March 31, 2024 and December 31, 2023 (amounts in thousands): March 31, 2024 December 31, 2023 Accrued operating costs $ 1,454 $ 893 Accrued organization costs 893 888 Accrued offering costs 2,302 2,294 Accrued shareholder servicing fees 3,010 422 Accrued management fees 60 - Accrued performance fees 128 - Total $ 7,847 $ 4,497 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Common Share | Net income per common share for the three months ended March 31, 2024, is computed as follows (in thousands, except for share and per share data): Basic: Net income attributable to Starwood Credit Real Estate Income Trust $ 1,040 Weighted-average common shares outstanding, basic 3,610,109 Basic net income per common share $ 0.29 Diluted: Net income attributable to Starwood Credit Real Estate Income Trust $ 1,040 Weighted-average common shares outstanding, diluted (1) 3,610,758 Diluted net income per common share $ 0.29 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Event [Line Items] | |
Schedule of Shares Issued | Subsequent to March 31, 2024 through the date of filing, the Company issued the following shares (in thousands, except for share amounts): Shares Gross Proceeds Class S Common Shares 1,499,939 $ 30,316 Class I Common Shares 1,257,885 25,204 Class E Common Shares - - Total 2,757,824 $ 55,520 |
DRIP [Member] | |
Subsequent Event [Line Items] | |
Schedule of Shares Issued | Subsequent to March 31, 2024 through the date of filing, the Company also issued the following shares under the DRIP (in thousands, except for share amounts): Shares Gross Proceeds Class S Common Shares 18,223 $ 365 Class I Common Shares 9,735 195 Class E Common Shares 203 4 Total 28,161 $ 564 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 01, 2023 | Jul. 14, 2023 | |
Common shares, par value | $ 0.01 | $ 20 | $ 0.01 | |
General and administrative expenses | $ 64,000 | |||
Minimum REIT distribution percentage | 90% | |||
Advisor [Member] | ||||
Organization costs | $ 900,000 | $ 900,000 | ||
Class E Common Shares [Member] | ||||
Number of shares granted | 3,002 | |||
Class E Common Shares [Member] | Advisor [Member] | ||||
Advisor payment for performance fees | $ 100,000 | $ 0 | ||
Advisor payment in form of shares | 6,342 | |||
Class E Common Shares [Member] | Trustees [Member] | ||||
Number of shares granted | 0 | |||
Class E Common Shares [Member] | Independent Trustees [Member] | ||||
Fair value based NAV per share | $ 60,040 | |||
Vesting period | 1 year | |||
Share-based compensation recognized cost | $ 15,000 |
Investment in Loans Receivabl_2
Investment in Loans Receivable - Schedule of Loans Held for Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Loan Amount | [1] | $ 281,350 | $ 185,050 |
Principal Balance Outstanding | 253,882 | 160,000 | |
Fair Value | $ 251,387 | $ 158,288 | |
Multifamily, Hayward, TX [Member] | Individually Specific Mortgage Loans [Member] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Origination Date | Feb. 09, 2024 | ||
Loan Amount | [1] | $ 96,300 | |
Principal Balance Outstanding | 93,800 | ||
Fair Value | $ 92,906 | ||
Payment Terms | Monthly; I/O | ||
Maturity Date | [2] | Feb. 11, 2030 | |
Multifamily, Hayward, TX [Member] | Individually Specific Mortgage Loans [Member] | SOFR | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Weighted Average Interest Rate | [3] | 8.57% | |
Multifamily, Hayward, CA [Member] | Individually Specific Mortgage Loans [Member] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Origination Date | Nov. 30, 2023 | Nov. 30, 2023 | |
Loan Amount | [1] | $ 185,050 | $ 185,050 |
Principal Balance Outstanding | 160,082 | 160,000 | |
Fair Value | $ 158,481 | $ 158,288 | |
Payment Terms | Monthly; I/O | Monthly; I/O | |
Maturity Date | [2] | Dec. 09, 2028 | Dec. 09, 2028 |
Multifamily, Hayward, CA [Member] | Individually Specific Mortgage Loans [Member] | SOFR | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Weighted Average Interest Rate | [3] | 8.57% | 8.60% |
[1] Loan amounts consist of outstanding principal balance plus unfunded loan commitments for each loan. Maximum maturity date assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to satisfaction of certain predefined conditions as defined in the respective loan agreements. This column represents the weighted average interest rate for each loan as of period end. Loans earn interest at the one-month Term Secured Overnight Financing Rate ("SOFR") plus a spread. |
Loans Payable - Schedule of Deb
Loans Payable - Schedule of Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
Debt Disclosure [Abstract] | |||
Debt Facility, Weighted Average (All In) Interest Spread | [1],[2] | 7.58% | 7.61% |
Debt Facility, Maximum Facility Size | [1] | $ 250,000 | $ 250,000 |
Debt Facility, Available Capacity | [1] | 84,750 | 129,500 |
Debt Facility, Debt Amount Outstanding | [1] | 165,250 | 120,500 |
Debt Facility, Fair Value of Debt | [1] | 164,869 | 120,196 |
Debt Facility, Fair Value of Collateral | [1] | $ 251,387 | $ 158,288 |
Debt Instrument, Maturity Date | [1] | Dec. 14, 2025 | Dec. 14, 2025 |
Debt Instrument Maximum Maturity Date | [1] | Dec. 14, 2028 | Dec. 14, 2028 |
[1] The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. This column represents the weighted average interest rate as of period end. Borrowings under our repurchase agreement carry interest at one-month Term SOFR plus a spread. |
Loans Payable - Schedule of D_2
Loans Payable - Schedule of Debt Securities (Parenthetical) (Details) | 3 Months Ended | |
Dec. 14, 2023 | Mar. 31, 2024 | |
Line of Credit Facility [Line Items] | ||
Maximum Guarantee on Liability | 25% | |
Repurchase Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum Guarantee on Liability | 25% |
Loans Payable - Additional Info
Loans Payable - Additional Information (Details) - USD ($) | 3 Months Ended | |||||
Dec. 20, 2023 | Dec. 14, 2023 | Nov. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | ||
Line of Credit Facility [Line Items] | ||||||
Debt Facility, Maximum Facility Size | [1] | $ 250,000,000 | $ 250,000,000 | |||
Maximum Guarantee on Liability | 25% | |||||
Debt instrument, spread rate | 2.50% | |||||
Proceeds form unsecured line of credit | $ 93,500,000 | |||||
Repurchase Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum Guarantee on Liability | 25% | |||||
Repurchase Agreement [Member] | Citibank, N.A. [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Facility, Maximum Facility Size | $ 250,000,000 | $ 200,700,000 | 128,000,000 | |||
Remaining of borrowing facility | $ 35,400,000 | $ 7,500,000 | ||||
Debt instrument, description of variable rate basis | Repurchase Agreement accrue interest at a per annum rate equal to the Term SOFR Reference Rate (as defined in the Repurchase Agreement) for a one-month period plus a margin as agreed upon by Citibank and the Company for each transaction. | |||||
Credit Agreement [Member] | Starwood Capital Group Management L.LC. [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Facility, Maximum Facility Size | $ 148,000,000 | |||||
Proceeds form unsecured line of credit | $ 125,800,000 | |||||
Repaymant of borrowing facility | $ 120,500,000 | |||||
Interest accrued | 600,000 | |||||
Interest paid | $ 600,000 | |||||
[1] The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Summary of Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Expenses and Other Liabilities [Line Items] | ||
Deposit liability | $ 125 | |
Trustee compensation payable | $ 45 | 15 |
Accrued operating expenses | 201 | |
Other | 1 | |
Total accrued expenses and other liabilities | $ 247 | $ 140 |
Redeemable Common Shares - Addi
Redeemable Common Shares - Additional Information (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 01, 2023 | Nov. 30, 2023 | Jul. 14, 2023 |
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 20 | $ 0.01 | ||
Preferred shares, par value | 0.01 | ||||
Share price | $ 20 | ||||
Common stock issued | 1,575,000 | 50 | |||
Aggregate purchase amount | $ 31,500,000 | $ 1,000 | |||
Class T Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | 0.01 | ||||
Class S shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock issued | 1,969,181 | 259,750 | 259,750 | ||
Class D Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | ||||
Class I shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock issued | 868,544 | 67,050 | 67,050 | ||
Redeemable Common Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Redeemable common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Share price | $ 20 | $ 20 | |||
Redeemable common shares, shares issued | 1,628,286 | 1,603,050 | 28,000 | ||
Aggregate purchase price | $ 600,000 | ||||
Initial capital commitments | $ 125,000,000 | ||||
Net asset value | 1,000,000,000 | ||||
Maximum capital commitments | 125,000,000 | ||||
Aggregate purchase exceeding amount | 150,000,000 | ||||
Redeemable Common Shares [Member] | Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Aggregate purchase amount | 150,000,000 | ||||
Redeemable Common Shares [Member] | Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Aggregate purchase amount | $ 150,000,000 |
Redeemable Common Shares - Sche
Redeemable Common Shares - Schedule of Outstanding Common Shares (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Class of Stock [Line Items] | |
Shares outstanding as of December 31, 2023 | 326,800 |
Common shares issued | 2,497,865 |
DRIP shares issued | 13,060 |
Shares outstanding as of March 31, 2024 | 2,837,725 |
Proceeds from issuance of common shares | $ | $ 50,679 |
Class E Redeemable Common Shares | |
Class of Stock [Line Items] | |
Shares outstanding as of December 31, 2023 | 1,603,050 |
Common shares issued | 24,934 |
DRIP shares issued | 302 |
Shares outstanding as of March 31, 2024 | 1,628,286 |
Proceeds from issuance of common shares | $ | $ 506 |
Redeemable Common Shares - Sc_2
Redeemable Common Shares - Schedule of Distributions Declared (Details) - Class E Redeemable Common Shares | 3 Months Ended | |
Mar. 31, 2024 $ / shares | ||
Class of Stock [Line Items] | ||
Aggregate gross distributions declared per common share | $ 0.3876 | |
Shareholder servicing fee per common share | 0 | [1] |
Net distributions declared per share | $ 0.3876 | |
[1] There is no shareholder servicing fee with respect Class E shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Redeemable Common Shares - Sc_3
Redeemable Common Shares - Schedule of Distributions Declared (Parenthetical) (Details) | 3 Months Ended | |
Mar. 31, 2024 $ / shares | ||
Class E Redeemable Common Shares | ||
Class of Stock [Line Items] | ||
Shareholder servicing fee per common share | $ 0 | [1] |
[1] There is no shareholder servicing fee with respect Class E shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) BusinessDays $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 01, 2023 USD ($) $ / shares shares | Nov. 30, 2023 shares | Jul. 14, 2023 $ / shares shares | |
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 20 | $ 0.01 | ||
Preferred shares, par value | $ 0.01 | ||||
Common shares | $ | $ 7,100 | ||||
Common stock issued | shares | 1,575,000 | 50 | |||
Share repurchase plan holding period | 1 year | ||||
Repurchases price percentage of transaction price except shares not been outstanding for one year | 95% | ||||
Quarterly percentage of net asset value, maximum | 5% | ||||
Share repurchase period | 90 days | ||||
Stock repurchase expiration period | 12 months | ||||
Number of business expiration days | BusinessDays | 5 | ||||
Private Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 20 | ||||
Class T Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | 0.01 | ||||
Class S shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common shares | $ | $ 20 | $ 3 | |||
Common stock issued | shares | 1,969,181 | 259,750 | 259,750 | ||
Class D Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | ||||
Class I shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common shares | $ | $ 9 | $ 1 | |||
Common stock issued | shares | 868,544 | 67,050 | 67,050 | ||
Redeemable Common Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Temporary equity, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Temporary equity, shares issued | shares | 1,628,286 | 1,603,050 | 28,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Outstanding Common Shares (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Class of Stock [Line Items] | |
Shares outstanding as of December 31, 2023 | 326,800 |
Common shares issued | 2,497,865 |
DRIP shares issued | 13,060 |
Shares outstanding as of March 31, 2024 | 2,837,725 |
Proceeds from issuance of common shares | $ | $ 50,679 |
Common Class S [Member] | |
Class of Stock [Line Items] | |
Shares outstanding as of December 31, 2023 | 259,750 |
Common shares issued | 1,699,306 |
DRIP shares issued | 10,125 |
Shares outstanding as of March 31, 2024 | 1,969,181 |
Proceeds from issuance of common shares | $ | $ 34,623 |
Common Class I [Member] | |
Class of Stock [Line Items] | |
Shares outstanding as of December 31, 2023 | 67,050 |
Common shares issued | 798,559 |
DRIP shares issued | 2,935 |
Shares outstanding as of March 31, 2024 | 868,544 |
Proceeds from issuance of common shares | $ | $ 16,056 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Distributions Declared (Details) | 3 Months Ended | |
Mar. 31, 2024 $ / shares | ||
Class S shares [Member] | ||
Class of Stock [Line Items] | ||
Aggregate gross distributions declared per common share | $ 0.3876 | |
Shareholder servicing fee per common share | 0.0423 | |
Net distributions declared per share | 0.3453 | |
Class I shares [Member] | ||
Class of Stock [Line Items] | ||
Aggregate gross distributions declared per common share | 0.3876 | |
Shareholder servicing fee per common share | 0 | [1] |
Net distributions declared per share | $ 0.3876 | |
[1] There is no shareholder servicing fee with respect Class I shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Distributions Declared (Parenthetical) (Details) | 3 Months Ended | |
Mar. 31, 2024 $ / shares | ||
Class I shares [Member] | ||
Class of Stock [Line Items] | ||
Shareholder servicing fee per common share | $ 0 | [1] |
[1] There is no shareholder servicing fee with respect Class I shares. Refer to Note 10 — “ Related Party Transactions ” below for further information on shareholder servicing fees. |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Loans receivable, at fair value | $ 251,387 | $ 158,288 |
Financial Liabilities: | ||
Loans payable, at fair value | (164,869) | (120,196) |
Level I [Member] | Fair Value, Recurring [Member] | ||
Financial Assets: | ||
Loans receivable, at fair value | 0 | 0 |
Financial Liabilities: | ||
Loans payable, at fair value | 0 | 0 |
Total | 0 | 0 |
Level II [Member] | Fair Value, Recurring [Member] | ||
Financial Assets: | ||
Loans receivable, at fair value | 0 | 0 |
Financial Liabilities: | ||
Loans payable, at fair value | 0 | 0 |
Total | 0 | 0 |
Level III [Member] | Fair Value, Recurring [Member] | ||
Financial Assets: | ||
Loans receivable, at fair value | 251,387 | 158,288 |
Total | 251,387 | 158,288 |
Financial Liabilities: | ||
Loans payable, at fair value | (164,869) | (120,196) |
Total | $ (164,869) | $ (120,196) |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements of Loans Receivable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance as of December 31, 2023 | $ 158,288 |
Loan originations and fundings | 93,882 |
Unrealized loss | (783) |
Balance as of March 31, 2024 | $ 251,387 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Measurements of Loans Payable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance as of December 31, 2023 | $ (120,196) |
Borrowings under repurchase agreement | (93,500) |
Repayments under repurchase agreement | 48,750 |
Unrealized gain | 77 |
Balance as of March 31, 2024 | $ (164,869) |
Fair Value - Schedule of Quanti
Fair Value - Schedule of Quantitative Inputs and Assumptions used for Items Categorized in Level 3 of Fair Value (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Financial Liabilities | [1] | $ (251,387) | $ (158,288) |
Level 3 [Member] | Loans Receivable at Fair Value [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Financial Assets | $ 251,387 | $ 158,288 | |
Alternative Investment, Valuation Technique [Extensible Enumeration] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Alternative Investment, Measurement Input [Extensible Enumeration] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember | |
Level 3 [Member] | Loans Receivable at Fair Value [Member] | Weighted Average [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Weighted Average | 0.0901 | 0.0906 | |
Level 3 [Member] | Loans Payable at Fair Value [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Financial Liabilities | $ (164,869) | $ (120,196) | |
Debt Instrument, Valuation Technique [Extensible Enumeration] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Debt Instrument, Measurement Input [Extensible Enumeration] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember | |
Level 3 [Member] | Loans Payable at Fair Value [Member] | Weighted Average [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Weighted Average | 0.0794 | 0.0797 | |
[1] The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) Rate | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||
Management fees | $ 100,000 | $ 0 | $ 0 |
Related party percentage of cumulative core earnings | 12.50% | ||
Annual hurdle percentage | 5% | ||
Average adjusted capital period equal annual hurdle rate | Rate | 0.875 | ||
Performance fees | $ 0 | 0 | |
Advance expense ratably period | 60 months | ||
Class D Shares [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of stockholder servicing fee on NAV per annum | 0.25% | ||
Class S shares [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of stockholder servicing fee on NAV per annum | 0.85% | ||
Class T Shares [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of stockholder servicing fee on NAV per annum | 0.85% | ||
Percentage of advisor stockholder servicing fee | 0.65% | ||
Percentage of dealer stockholder servicing fee | 0.20% | ||
Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Offering costs | $ 2,300,000 | 2,300,000 | |
Operating costs | $ 1,500,000 | 900,000 | |
Advance expense ratably period | 60 months | ||
Organization costs | $ 900,000 | $ 900,000 | 900,000 |
Organization and offering costs | 3,200,000 | $ 3,200,000 | |
Advisor [Member] | Class T, S, D and I Shares [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of management fee payment of NAV per annum | 1.25% | ||
Advisor [Member] | Class E shares | |||
Related Party Transaction [Line Items] | |||
Performance fees | $ 100,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Components of Due to Advisor (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transactions [Abstract] | ||
Accrued operating costs | $ 1,454 | $ 893 |
Accrued organization costs | 893 | 888 |
Accrued offering costs | 2,302 | 2,294 |
Accrued shareholder servicing fees | 3,010 | 422 |
Accrued management fees | 60 | 0 |
Accrued performance fees | 128 | 0 |
Due to Advisor, Total | $ 7,847 | $ 4,497 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Net Income Per Common Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) $ / shares shares | ||
Basic: | ||
Net income attributable to Starwood Credit Real Estate Income Trust | $ | $ 1,040 | |
Weighted-average common shares outstanding, basic | shares | 3,610,109 | |
Basic net income per common share | $ / shares | $ 0.29 | |
Diluted: | ||
Net income attributable to Starwood Credit Real Estate Income Trust | $ | $ 1,040 | |
Weighted-average common shares outstanding, diluted | shares | 3,610,758 | [1] |
Diluted net income per common share | $ / shares | $ 0.29 | |
[1] Diluted earnings per share takes into account the effect of dilutive instruments, such as unvested stock awards. As of March 31, 2024, 3,002 unvested shares were outstanding. |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Net Income Per Common Share (Parenthetical) (Details) | Mar. 31, 2024 shares |
Earnings Per Share [Abstract] | |
Unvested shares, Outstanding | 3,002 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands, £ in Millions, ft² in Millions | Apr. 25, 2024 USD ($) ft² Logistic | Apr. 23, 2024 USD ($) | Dec. 14, 2023 | May 10, 2024 USD ($) | May 10, 2024 GBP (£) | Apr. 25, 2024 GBP (£) ft² | Apr. 23, 2024 GBP (£) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Subsequent Event [Line Items] | ||||||||||
Maximum loan borrowing | $ | [1] | $ 250,000 | $ 250,000 | |||||||
Maximum guarantee on liability | 25% | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Investments | $ 189,000 | £ 150 | ||||||||
Number of logistics | Logistic | 312 | |||||||||
Area Of land | ft² | 19 | 19 | ||||||||
MS Repurchase Agreement [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Maximum loan borrowing | $ 150,200 | £ 120 | ||||||||
Asset purchases | $ 189,000 | £ 150 | ||||||||
Maturity Date | Feb. 15, 2029 | Feb. 15, 2029 | ||||||||
Maximum guarantee on liability | 25% | |||||||||
Maximum [Member] | Syndicated Credit Facility [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Investments | £ | £ 1,400 | |||||||||
[1] The borrowing facility has up to three one-year extension options. The extensions are subject to satisfaction of certain predefined conditions including compliance with certain financial and administrative covenants, as well as payment of applicable extension fees. Interest is paid monthly. Recourse is limited to 25 % of the then outstanding obligations of the special purpose (indirect) subsidiaries wholly-owned by the Company under the Repurchase Agreement. |
Subsequent Events - Schedule of
Subsequent Events - Schedule of Shares Issued (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Apr. 01, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 01, 2023 | Nov. 30, 2023 | Jul. 14, 2023 | |
Subsequent Event [Line Items] | ||||||
Shares | 1,575,000 | 50 | ||||
Gross Proceeds | $ 50,679 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 2,757,824 | |||||
Gross Proceeds | $ 55,520 | |||||
Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 28,161 | |||||
Gross Proceeds | $ 564 | |||||
Class S shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 1,969,181 | 259,750 | 259,750 | |||
Gross Proceeds | $ 34,623 | |||||
Class S shares [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 1,499,939 | |||||
Gross Proceeds | $ 30,316 | |||||
Class S shares [Member] | Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 18,223 | |||||
Gross Proceeds | $ 365 | |||||
Class I shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 868,544 | 67,050 | 67,050 | |||
Gross Proceeds | $ 16,056 | |||||
Class I shares [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 1,257,885 | |||||
Gross Proceeds | $ 25,204 | |||||
Class I shares [Member] | Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 9,735 | |||||
Gross Proceeds | $ 195 | |||||
Class E Shares [Member] | Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares | 203 | |||||
Gross Proceeds | $ 4 |