“You can see the future if it doesn’t change,’’ Sternlicht said. “Go to Mumbai,” where landlords have no incentives to fix up their buildings and many are falling apart.
Starwood has performed well during the pandemic, thanks to its focus on credit quality and prudent underwriting, Sternlicht said.
“We didn’t come out limping from this crisis,’’ he said. “We came out galloping from the crisis.’’
The real estate investment trust closed two collateralized loan obligations (CLOs) totaling $1.8 billion, which Starwood said allowed it to reduce risk on its balance sheet. Sternicht referred to it as a “fortress balance sheet.”