Q3 2022 Market Update from the CEO

The volatility in financial markets, combined with higher inflation data and interest rate increases, has led investors in search of relative safety.

What’s happening in the market?

The Fed keeps raising interest rates and mortgage rates have followed suit. There’s a lot of discussion about how these adjustments will impact the consumer and broader financial markets. The stock market is in Bear Market territory for the year, inflation continues to rage on, and it remains to be seen whether the Fed can finesse a “soft” landing.

While growth is slowing across most asset classes (and negative in many), the below chart indicates that real estate earnings growth is still positive. There are many reasons for that, including real estate’s ability to combat inflation by adjusting rent upwards.

So, what might these conditions mean for real estate and our portfolio?

The real estate market has turned on its head recently. With credit markets out of whack, the real estate buyer pool has contracted considerably, leading to some interesting acquisition opportunities.

We have our eyes and ears to the ground in search of low hanging fruit and believe now is a good time to further fortify the portfolio with more high quality real estate.

Jeffrey Karsh

Mr. Karsh is CEO and Co-Founder of Streitwise and Tryperion Holdings.

Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.

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 12/31/2022. Dividend return calculations based on NAV at the time of dividend return. 4Q22 dividend payout of $0.13/share equates to a 5.2% dividend yield based on the initial offering price of $10/share or 5.6% based on the current NAV. The 2022 dividend yield average of $0.18/share equates to a 7.2% dividend yield based on the initial offering price of $10/share or 7.8% based on the current NAV. 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 4Q22.
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.

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