Streitwise just distributed dividends for 2Q20, which equates to 8.4% based on the original share purchase price of $10.00/share and 8.5% based on the current NAV of $9.86/share. Dividends were distributed pursuant to the payment option selected in the Investor Center.
The investment sales market, particularly for office properties, remains largely quiet as sellers are not yet willing or forced to part with assets at current clearing prices. We believe patience will be rewarded as we consider new acquisition opportunities.
We continue to receive questions about the pandemic’s effect on the portfolio:
Will the dividend drop below 8.4% in the future?
We still believe that we will be able to distribute 8-9% for the remainder of 2020, but the continuing uncertainty makes forecasts and guidance difficult and subject to change.
Have tenants in the portfolio been able to pay rents?
From April through June, we collected 100% of contractual rent obligations. We have evaluated rent relief requests on a case-by-case basis and have granted adjustments for 3 tenants. In the long run, we believe the quality and location of our properties will continue to allow us to weather economic storms better than most.
Eliot Bencuya is the co-founder and CEO of Streitwise. Eliot has extensive experience identifying, underwriting, and executing value-add real estate investments.
Prior to forming Streitwise, he was a Vice President of Acquisitions for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for originating, underwriting, structuring and executing transactions in the Pacific Northwest, Northern California and Midwest regions. Mr. Bencuya also held positions at Sovereign Investment Company (a subsidiary of the Marcus and Millichap Company) and the investment banking division of Merrill Lynch & Co. He holds a Bachelor of Arts degree in Economics and International Studies from Yale University, and a Masters of Business Administration degree from the Haas School of Business at the University of California, Berkeley. Mr. Bencuya is a member of ULI.