Iron sharpens iron.
As we have explained in the past, we do not unquestioningly take buy or sell cues from any other investors. But at the same time, we consider it part of our job to know what other active REIT portfolio managers are doing and why. We are always open to hearing other active managers’ ideas and perspectives, and we are always interested in their recent portfolio moves.
That is the spirit behind this article, which will cover the Q2 2026 buys and sells of several active managers of REITs.
Starwood Capital Group Management
We start, as usual, with Barry Sternlicht’s commercial real estate investment company, Starwood Capital Group.
As you can see below, Starwood did not make any buys or sells during the second quarter.
Why then do we highlight it?
Quite simply, we show Starwood’s small REIT portfolio as an example of what long-term investing looks like. Notice the column on the far right. Starwood’s multifamily REIT holdings have all suffered unrealized losses, some significantly so. And yet, Sternlicht continues to hold them.
Why?
Because he has conviction in the long-term investment thesis.
Sternlicht continues to believe that these multifamily REITs will thrive in the coming years. Otherwise, he would not continue to hold them. While First Industrial (FR) and Janus Living (JAN) have already proven to be strong performers, the bull case for apartment REITs has yet to play out.
That is a normal and expected part of investing. Sometimes macroeconomic or microeconomic events occur that set back the timing of an investment thesis without completely destroying it.
It is some comfort to know that even highly successful commercial real estate investors like Sternlicht cannot time the bottom.
To quote Sternlicht from the Q2 2026 Starwood Capital (STWD) earnings conference call:
Almost all the real estate asset classes here and in Europe are in repair. I mean everything is getting better. If you look at all the equity REITs in the multifamily sector and logistics sector, self-storage, senior housing, everything is getting better. That’s basically driven by steady demand and rapidly deteriorating or nonexistent supply.
... And you’re beginning to see improvements in rent in the multi-sector, which we’ve been waiting for, God knows, how many quarters. But the markets are absorbing. There’s still new supply completing and things are getting better market by market. Basically, the weakness is in the Sunbelt cities, and it’s pretty strong on the 2 coasts, given nobody was building in California or New York City.
... I mean, [the multifamily REITs are] all different geographies, but they’re all talking about a pretty good year in back half of ‘26 and really good in ‘27 and stupendous in ‘28 is the kind of comments from those management teams.
In an age of speed and speculation, patience takes extraordinary strength of will. But we think that patient investors will win in the end.
