Stephen Percoco, CFA
Value, special situations, bonds, newsletter provider

Starwood Waypoint: 50% Upside And A Potential 5% Yield

Starwood Waypoint Properties Trust (SWAY) was spun off from Starwood Property Trust (NYSE:STWD) in January of this year. The REIT was formed by STWD in May 2012 for the purpose of acquiring distressed and foreclosed residential properties at prices below fair value and renovating them, if necessary, to get attractive lease rates or profit from their sale.

In the summer of 2013, after meeting with the principals of the Waypoint Real Estate Holdco Group, a property manager and sponsor of investment funds dedicated to the single-family rental market, STWD CEO Barry Sternlicht decided to pursue a spinoff of its residential properties and non-performing loan portfolios and acquire Waypoint's operating platform, including its executive management team and employees....

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