A Letter from the CEO: 2018 in Review and Looking to 2019

I want to thank you for being a supporter of Streitwise and for continuing with us on your journey towards financial success in 2019. 2018 was a year in which we made major strides in improving our offering and maintained a healthy dividend for investors. In a year where most asset classes experienced significant headwinds – including publicly traded REITs, bonds, and stocks – Streitwise stood tall.

2018 – The Year That Was

What a rollercoaster of a year for stocks, corporate credit, and almost any liquid security. The final box score for the year wasn’t pretty. The Vanguard S&P total return finished the year at -5.1%, the FTSE All-Equity REIT Total Return rounded home at -4%, and despite the year-end drop in rates, bonds didn’t do much to provide a return (-0.13%). In short, there was nowhere to hide.

Meanwhile, the fundamentals of the commercial real estate market remain quite healthy. Employment growth remains strong, the labor market continues to pick up remaining slack, office users are expanding, the development pipeline remains balanced, rents continue to move upwards. Trees will stop growing somewhere before they hit the sky, but that doesn’t mean the sky has to fall to meet the trees. As stewards of capital, our underwriting process remains steadfastly committed to focusing on negative shocks to tenants and properties, and as long as we can withstand such surprises, we believe the portfolio is on a path for long term success.

“A tree with strong roots laughs at storms”
– Malay Proverb

Streitwise shareholders should understand:

We are but one component of an investor’s balanced portfolio
We are oriented for the long-term
We are not targeting capital appreciation through heavy value-add strategies, but rather a more consistent source of dividend income
We are a direct owner and operator of commercial real estate
We are not publicly traded on an exchange, meaning our REIT shares do not exhibit the express volatility of daily pricing

2019 – The Year Ahead

Our biggest focus in the new year will be acquiring new assets for the portfolio and implementing service upgrades on the shareholder interface front. With respect to new acquisitions, our goal is to double our portfolio value by the end of the year. We’re optimistic that the pipeline will allow us to add quality diversification to our shareholders’ existing portfolio. We continue to believe that there is a relative underpricing with respect to stabilized, non-coastal office properties, and intend to pursue that strategy further.

We have candidly not had much in the way of monthly or quarterly correspondence primarily because our portfolio is stabilized with no real updates beyond dividends! In the case of long term corporate tenants, no news is good news. That is the case with our portfolio. We are planning to make selective upgrades to certain buildings, lobbies and common areas, and are excited to share with you before and after photos as such renovations are completed. Our goal is to be in more regular communication so that our shareholders know that their assets are being properly managed, know that their tenants appropriately serviced, and are aware of any changes or shifts in the market landscape.

Technologically, it’s no secret that we are a real estate investment company first, and that we leverage third party vendors to provide the on-boarding and investor center services. As such, another primary objective is to work with our third parties to improve the service we provide our shareholders, from a simpler dividend reinvestment process for IRAs, Trusts and 401Ks to a faster on-boarding and registration timeline. Above all, our commitment to you is that we will respond to each and every shareholder issue or question in a timely manner and keep you updated along the way. What we cannot immediately offer in the way of a fancy, directly engineered software interface we will certainly offer in the way of direct human interaction. Believe it or not, some still prefer that method!

Here’s to a prosperous 2019. We hope to do well for, and right by, the Streitwise community.

Eliot Bencuya,
Co-Founder and CEO

Alex Wills

Mr. Wills is the Marketing Director and Head of Product for Streitwise.

Prior to joining Streitwise, Mr. Wills was Head of Paid Media at Bitcoin IRA and Fortress Gold Group. Previously, Mr. Wills was the Director of Lead Generation at GTMA, a real estate marketing agency, where he founded the paid media department that oversaw a large nationwide portfolio of multifamily properties. Mr. Wills holds a Bachelor of Science degree in Marketing from the University of Florida.

SW Manager, LLC (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Holdings, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. By using Streitwise, you accept our Terms of Service and Privacy Policy.

An offering statement regarding this offering has been filed with the SEC. This offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. The SEC has qualified that offering statement which only means that Streitwise may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You should read the Offering Circular before making any investment which is available here: streitwise.com/oc

You may have been referred to Streitwise by a third-party (“Solicitor”). Compensation to any Solicitor may be up to $200 per email registration. A Solicitor may promote and/or may advertise Streitwise’s investment services and may offer independent analysis and reviews of Streitwise’s services. Streitwise and any Solicitor are not under common ownership or otherwise related entities. We cannot ensure the accuracy of the data provided from any Solicitor.

Performance: Past performance is not a guarantee of future results. All historical returns, target returns, or hypothetical projections may not reflect actual future performance.
Risk: This investment involves a certain level of risk and may result in partial or total loss. We cannot guarantee that we will reach our target return for our investors.
Tax: Prospective investors should confer with their tax advisors regarding the tax consequences based on their particular circumstances. Neither Streitwise nor any Solicitor assumes responsibility for the tax consequences for any investor.
Liquidity: Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term should not invest. See Stockholder Redemption Plan in the OC.

¹ Dividends & returns: Current annualized dividend based on the most recent dividend declaration as of the quarter ending 3/31/2024. Dividend return calculations based on NAV at the time of dividend return. 1Q24 dividend payout of $0.11/share equates to a 6.2% dividend based on the current NAV. The REIT has averaged a 7.2% annualized return since 2020 and a 8.3% annualized return since 2017 based on the average NAV for the respective periods. See Quarterly Report for all returns history.
² Source: FTSE NAREIT All Equity REITs vs S&P 500.
³Sponsor Performance: Related to investments by Sponsor, Tryperion Holdings, as part of one of its prior programs, and not of any of the Streitwise Entities. Reflects gross IRR on realized investments in the Sponsor’s investment portfolio since inception. Sponsor performance data as of 4Q23.
⁴Target returns: We will seek to invest in real properties and other real estate-related assets that we believe can produce a strong return through a combination of cash flow and appreciation. We cannot guarantee that we will reach this target return for our investors.

This page may contain forward-looking statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Offering Circular. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

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