Sterling Multifamily Trust Announces Strategic Updates

Sterling’s latest initiatives include leadership changes, an extended advisory partnership, and enhanced equity valuations.

December 20, 2024

Advisory Agreement Secures Continuity

Sterling Multifamily Trust has renewed its advisory agreement with Sterling Management, LLC through its Fourteenth Amended and Restated Advisory Agreement. The updated contract, effective January 1, 2025, extends the advisory relationship for another year with largely unchanged terms. This renewal reflects a consistent approach to external management, reinforcing operational stability and strategic alignment for the REIT.

Appointment of New Financial Leader

The trust’s Board of Trustees has appointed Elizabeth A. Reich as Chief Financial Officer and Treasurer. Reich, a seasoned financial executive with over 30 years of experience in the manufacturing and construction industries, brings a proven track record of growth and strategic leadership. Her tenure at True North Steel saw transformative initiatives, including multiple acquisitions that tripled company revenues over a decade.

Reich’s appointment aligns with Sterling’s focus on financial resilience and expansion. She will oversee the trust’s financial operations, supported by Sterling Management, LLC, in line with the REIT’s externally managed structure. This strategic hire signals the trust’s commitment to fiscal prudence and innovative growth strategies.

Revised Share Valuation Reflects Market Confidence

Effective January 1, 2025, Sterling’s Board of Trustees has approved an increase in the common share price from $23.00 to $24.00. Concurrently, the annual dividend yield has been set at 5.00 percent per share. These changes are informed by a valuation approach leveraging net asset value (NAV), adjusted for real estate holdings, market conditions, and liquidity considerations.

Mirroring this equity valuation adjustment, the limited partnership unit price will also rise to $24.00, with the redemption price set at $22.80 per share or unit. These changes signify the trust’s dedication to transparent and equitable valuation practices while maintaining liquidity options for investors.

Outlook and Strategic Positioning

Sterling Multifamily Trust’s latest developments underscore a strategy rooted in stability and market responsiveness. By combining leadership expertise, consistent advisory support, and enhanced share valuations, the trust is well-equipped to navigate a competitive real estate landscape. Investors can expect continued emphasis on growth, operational efficiency, and robust returns.