Starwood Waypoint Residential Trust

Recommendation: Long

Current Stock Price: $27.30

Important Disclosures:

Certain funds and accounts managed by us are currently long Starwood Waypoint Residential Trust.  We may buy and/or sell shares of Starwood Waypoint Residential Trust in the future for the funds and accounts managed by us without notice, and we are under no obligation or agreement to take, or not take, any action or restrict our actions in any manner.  This is not a recommendation to buy or sell shares.  Our views are subject to change without notice and we may trade in any manner, whether consistent or inconsistent with this recommendation.  The information below is from public sources.  We have not independently verified this information and we make no representations as to the accuracy or correctness of any such information.  We undertake no obligation to update any information below.

Summary

We believe Starwood Waypoint Residential Trust (“SWAY”) offers a compelling long investment with limited downside risk.  Shortly after being spun-off from Starwood Property Trust (“STWD”), SWAY now trades at a discount to its mark-to-market NAV, despite the significant growth opportunity in its carefully-selected MSAs, clean balance sheet, scalable technology platform and proven management team.  A recovery in US home prices would provide incremental upside to the equity value.  

You can access the write-up using this link: SWAY