Starwood European Real Estate Finance Ltd (SWEF)
SWEF: Quarterly Portfolio Update
23-Jul-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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23 July 2021
Starwood European Real Estate Finance Limited
Quarterly Portfolio Update
12.8 per cent Share Price Total Return During Q2; Resilient Performance from Robust Portfolio
Annual dividend yield of 5.9 per cent, paid quarterly and expected to be fully covered by earnings
Starwood European Real Estate Finance Limited ("SEREF" or "the Group"), a leading investor originating, executing and
managing a diverse portfolio of high quality senior and mezzanine real estate debt in the UK and Europe, is pleased to
announce a portfolio update for the quarter ended on 30 June 2021.
Highlights
? Income stability - all loan interest and scheduled amortisation payments paid in full and on time
? Strong cash generation - the portfolio continues to support annual dividend payments of 5.5 pence, paid quarterly,
and generates an annual dividend yield of 5.9 per cent on the share price as at 30 June 2021
? Portfolio robust - despite pandemic-related disruption, the portfolio continues to perform in line with
expectations
? Borrowers remain adequately capitalised and are expected to continue to pay loan interest and capital repayments in
line with contractual obligations
? On 22 April 2021 the Group announced that it had closed a GBP26.6 million floating rate whole loan secured by a
portfolio of four UK life science properties
? On 21 July 2021 the Group announced that it had closed a GBP13.5 million floating rate whole loan secured by a
portfolio of a hotel and office complex in Northern Ireland
? 12.8 per cent - Share price total return during quarter ended 30 June 2021
? 46.5 per cent - Share price total return since inception in December 2012
? The Investment Manager believes the current investment pipeline is the strongest since the Company was established
Quote from the Chair, Stephen Smith
"We are pleased to see that, as expected, the portfolio has continued to perform strongly and in line with
expectations, with no disruption to loan interests and capital repayments despite the turmoil caused by Covid-19. This
performance reflects the high quality of our portfolio assets and the counterparties to which we lend. Our Investment
Manager's expertise in originating, executing and managing a diverse portfolio of high quality real estate debt, backed
by the scale and networks of Starwood Capital Group means that we can maintain an active pipeline of highly attractive
opportunities to choose from. We are delighted to reiterate the annual dividend target of 5.5 pence, a yield of 5.9 per
cent on the quarter closing share price. While the discount has narrowed in recent weeks the Board, the Investment
Manager and Investment Adviser continue to believe that the shares represent very attractive value at the current share
price."
The factsheet for the period is available at:
www.starwoodeuropeanfinance.com
Share Price / NAV at 30 June 2021
Share price (p) 94.0
NAV (p) 103.6
Discount 9.3%
Dividend yield 5.9%
Market cap GBP384m
Key Portfolio Statistics at 30 June 2021
Number of investments 18
Percentage of currently invested portfolio in floating rate loans 78.3%
Invested Loan Portfolio unlevered annualised total return (1) 6.6%
Portfolio levered annualised total return (2) 6.8%
Weighted average portfolio LTV - to Group first GBP (3) 18.0%
Weighted average portfolio LTV - to Group last GBP (3) 63.5%
Average loan term (based on current contractual maturity) 4.7 years
Average remaining loan term 2.2 years
Net Asset Value GBP423.7m
Amount drawn under Revolving Credit Facilities (including accrued interest) (GBP11.0m)
Loans advanced (including accrued interest) GBP420.8m
Cash GBP1.4m
Other net assets (including hedges) GBP12.5m
Remaining years to contractual maturity* Value of loans (GBPm) % of invested portfolio
0 to 1 years 83.5 20.0%
1 to 2 years 163.3 39.0%
2 to 3 years 29.1 7.0%
3 to 5 years 142.6 34.1%
*excludes any permitted extensions. Note that borrowers may
elect to repay loans before contractual maturity.
Country % of invested assets
UK 43.3%
Spain 29.1%
Republic of Ireland 20.5%
Netherlands 3.4%
Germany 2.7%
Finland 1.0%
Sector % of invested assets
Hospitality 40.4%
Office 22.2%
Retail 12.7%
Residential 11.2%
Healthcare 6.0%
Life Sciences 4.7%
Light Industrial 1.3%
Logistics 1.3%
Other 0.2%
Loan type % of invested assets
Whole loans 62.3%
Mezzanine 37.7%
Currency % of invested assets*
Sterling 43.3%
Euro 56.7%
*the currency split refers to the underlying loan currency,
however the capital on all non-sterling exposure is hedged back to
sterling.
(1) The unlevered annualised total return is calculated on
amounts outstanding at the reporting date, excluding undrawn
commitments, and assuming all drawn loans are outstanding for the
full contractual term. 15 of the loans are floating rate (partially
or in whole and all with floors) and returns are based on an
assumed profile for future interbank rates but the actual rate
received may be higher or lower. Calculated only on amounts funded
at the reporting date and excluding committed amounts (but
including commitment fees) and excluding cash uninvested. The
calculation also excludes the origination fee payable to the
Investment Manager.
(2) The levered annualised total return is calculated as per the
unlevered return but takes into account the amount of net leverage
in the Group and the cost of that leverage at current
LIBOR/EURIBOR.
(3) LTV to Group last GBP means the percentage which the total
loan drawn less any deductible lender controlled cash reserves and
less any amortisation received to date (when aggregated with any
other indebtedness ranking alongside and/ or senior to it) bears to
the market value determined by the last formal lender valuation
received by the reporting date. LTV to first Group GBP means the
starting point of the loan to value range of the loans drawn (when
aggregated with any other indebtedness ranking senior to it). For
development projects the calculation includes the total facility
available and is calculated against the assumed market value on
completion of the relevant project.
New Loans
On 22 April 2021 the Group announced that it had closed a
GBP26.6 million floating rate whole loan secured by a portfolio of
four properties. The properties consist of laboratory and office
spaces let to a diverse range of life science occupiers in the UK.
The financing has been provided in the form of an initial advance
along with a smaller capex facility to support the borrower's
value-enhancing capex initiatives. The loan term is 4 years, and
the Group expects to earn an attractive risk-adjusted return in
line with its stated investment strategy.
On 21 July 2021 the Group announced that it had closed a GBP13.5
million floating rate whole loan secured by a portfolio of a mixed
use hotel and office property. The financing has been provided in
the form of an acquisition loan. The loan term is 3 years, and the
Group expects to earn an attractive risk-adjusted return in line
with its stated investment strategy.
Dividend
On 23 July 2021, the Directors declared a dividend in respect of
the first quarter of 1.375 pence per Ordinary Share, equating to an
annualised 5.5 pence per annum. The Board is targeting a dividend
of 5.5 pence per annum (payable quarterly) which it considers to be
a sustainable level of dividend which should be fully covered by
earnings over the year whilst ensuring the Group maintains strong
credit discipline. The Company maintains a modest dividend reserve
which can be utilised if required.
Portfolio Update
Interest & Amortisation Payments
All loan interest and scheduled amortisation payments up to the
date of this factsheet have been paid in full and on time. This
includes loans in sectors that have been most impacted by the
pandemic, namely, hospitality and retail assets, where borrowers
continue to remain adequately capitalised as previously
reported.
Loan to Value
The Group's weighted average current loan to value is 63.5 per
cent. This is measured against RICS red book standard valuation
reports instructed independently of borrowers and are carried out
by leading global property consultancy firms such as Savills, CBRE,
JLL and Colliers. The weighted average aging of the date of these
formal valuation reports is under one year (at 0.8 years). This
means that on average across the portfolio, the loan to values are
being marked against values that have been updated recently and
since the onset of the pandemic. This gives further comfort around
the robustness of the Group's position, with very significant
equity cushions against the average loan basis.
Key updates are outlined below:
Hospitality (40.4 per cent of funded investment portfolio) ? The
largest hotel exposure in the portfolio is Hotel, Spain (accounting
for 27.6 per cent of current hospitality
exposure and 11.1 per cent of the total funded investment
portfolio). This coastal resort hotel completed a heavy
refurbishment programme in 2020 and the hotel re-opened during
May 2021 as a luxury destination 5-star property.
The property has achieved very high guest ratings since opening
and forward bookings for the remainder of the
season are excellent, with average room rates ahead of business
plan. This demonstrates the strength of pent-up
demand for leisure travel, particularly to resort locations. ?
The next most significant hotel exposure is Hotel, Dublin which
accounts for 25.0 per cent of current hospitality
exposure. As previously reported this property has, to a
significant extent, mitigated the negative impacts of
reduced conference and leisure business caused by the pandemic,
by leasing the property to the Irish government's
Health Service Executive ("HSE"). This contract is expected to
be in place for most of 2021. The sponsor has
continued to work on value accretive asset management
initiatives across the wider estate which is subject to the
loan's security and this has been verified such that following a
recently updated formal valuation, the loan has
been further de-risked with the loan to value ratio decreasing
by approximately 2.6 per cent. ? The UK hotel exposures
predominately comprise of three hotels (Hotel, Oxford, Hotel,
Scotland and Hotel, North
Berwick, accounting for 40.2 per cent of hotels in the
portfolio). These hotels have been undergoing comprehensive
refurbishments in line with the underwritten business plan. They
will re-open during summer 2021 with the benefit
of attractive new branding and a fully refurbished offering
which is expected to be well placed to benefit from
pent-up UK domestic leisure travel demand, particularly with two
of these assets being located directly adjacent to
well-known landmark Scottish golf courses. Remaining UK hotel
exposure comprises a 50-key hotel ground up
development within the Hotel and Residential, UK loan.
Construction is progressing well, with completion forecast
in 2022. This loan is residential-led and the value of pre-sold
residential units is higher than the total loan
commitment (inclusive of the hotel), which very significantly
reduces hospitality exposure on this loan. ? All hospitality loans
have adequate resources to meet their cash needs in the medium
term.
Retail (12.7 per cent of funded investment portfolio) ? The
Group's exposure to retail is predominantly comprised of the "Three
Shopping Centres, Spain" and "Shopping
Centre, Spain" loans. These are the only stand-alone retail
loans in the portfolio and comprise 11 per cent of the
Group's total funded investment portfolio. All other retail
exposure is contained in a limited number of mixed use
portfolios where the retail sector represents less than 25 per
cent of the total loan balance. ? With pandemic related
restrictions beginning to be eased, along with vaccine progress in
Spain being one of the
strongest in Continental Europe, retail footfall traffic is
beginning to increase. Footfall in May 2021 had
recovered, on average, to over 70 per cent of the same period,
pre-pandemic, in 2019. This is expected to continue
to increase over the coming months. Occupancy on average in the
centres has remained robust with limited tenant
failures in contrast to the level of retailer insolvencies in
the UK and US. The sponsor's asset manager has been
successful in leasing up some vacant space to gym operators and
sports brands in particular, amongst others. This
has involved the sponsor injecting new equity into the deals in
order to assist with capital expenditure for new
store fit outs and they continue to be very actively engaged in
the assets. ? Across the investment portfolio, loans with retail
exposure continue to have adequate cash reserves and underlying
income generation to pay interest.
Construction & heavy refurbishment (25.2 per cent of funded
investment portfolio) ? Over 95 per cent of the Group's
construction and heavy refurbishment loans are located in the UK.
These projects
have continued to operate on site throughout the period since
the outbreak of the pandemic, albeit at times,
on-site capacity was reduced for safety reasons. Notwithstanding
this, all projects are progressing satisfactorily
and no unfunded cost overruns have occurred. ? Non-essential
construction sites in the Republic of Ireland were mandated by the
government to close from 8 January
2021 through to early May 2021; however, we note that the
Group's exposure to Irish construction loans is limited
to under one per cent of total loans funded as of 30 June 2021.
In any event this project has remained adequately
capitalised with funding in place to complete, and we do not
consider that the delay in timing of final completion
to adversely impact asset value or the loan. ? Please note that
the construction & heavy refurbishment exposure noted above
will include assets also included in
hospitality and in office, industrial, logistics &
residential.
Office, industrial, logistics, healthcare, life science &
residential (46.9 per cent of funded investment portfolio) ? These
sectors continue to display resilient characteristics in terms of
overall performance with high rent
collection and robust rental and investment yields. Sponsors
with asset sell down strategies are succeeding in
achieving above underwrite pricing, particularly on the
disposals that we have witnessed within the industrial and
residential sectors. ? The Group's exposure to office is 22.2
per cent of the funded investment portfolio. Within this sector,
the
exposures are well diversified across Europe. The largest
exposure within this sector represents 31 per cent of
total office and just 7 per cent of the total investment
portfolio. This loan has a high occupancy of institutional
tenants in prime city centre locations. While generally new
lease tenant incentives have increased slightly as a
result of a slower take up related to pandemic disruption,
rental levels and investment yields based on actual
transactions have remained fairly robust. The Group's weighted
average loan to value of the loans with a greater
than 50 per cent office weighting is 64 per cent which reflects
a modest position. ? The Group's exposure to residential is under
construction product, of which a large proportion has been
pre-sold.
The level of legally exchanged unit pre-sales has now reached a
level that exceeds the total loan commitment, which
has therefore significantly de-risked the loan.
Market commentary and outlook
The largest vaccination campaign in history is underway.
According to Bloomberg more than 3.3 billion doses have been
administered across 180 countries. The UK has been one of the clear
leaders in vaccinations and for the reopening of the economy and
society. As at the end of the second quarter 115 doses have been
administered per 100 people, with 66 per cent having received a
first dose, putting the UK ahead of the US and the rest of Europe.
Spain is at 90 doses per 100 people with 55 per cent having
received a first dose, which is ahead of Germany, France and Italy.
The current pace of vaccination in Spain is also very impressive at
1.14 doses per 100 people per day compared with 0.92 for Germany,
0.51 for UK and only 0.25 for the US.
The UK opening plan that was set out in February has remained
almost entirely on schedule. In the first quarter factsheet we
outlined that we expected crowds of 10,000 people at mass events
and the opening of short haul travel later in the year. In sports
we have seen progress to more than 60,000 people attending
football's Euros final and a capacity crowd of 15,000 for the final
weekend on centre court at Wimbledon. This has been enabled by
checks on negative test results or vaccination status. In the hotel
market we have seen the anticipated performance for UK leisure
driven markets coming through as hotels were able to more fully
open over the last weeks. One example of a strong leisure
performance is the Bath market, where occupancy rates had been
running lower than 30 per cent all year to May, which achieved
occupancy percentage rates in the 80s during the half term week.
While there will be some bumps in the road the general pace of
opening for international travel is likely to be similarly
facilitated by high levels of vaccination and advances in the
tracking of testing and vaccination status.
In the last factsheet we commented on a change in sentiment back
toward working from the office with a reduction from 69 per cent of
CEOs of major companies to 17 per cent expecting to reduce office
space between the third quarter of 2020 and the first quarter of
2021. Property Week now reports that the amount of office space
available for sub-leasing in London has turned a corner as
occupiers begin to U-turn on "knee-jerk" decisions made during the
pandemic to sublet space. Savills' data shows that May saw the
largest monthly decline in the total amount of tenant-controlled
space on the market since March 2020, falling 7 per cent to 5.88
million square feet, although this figure is still 45 per cent
higher than the long-term average. Savills' data also shows West
End investment market cumulative annual turnover of GBP1.19 billion
is 53 per cent down on the five year average but comments that with
GBP2.4 billion of stock under offer it bodes well for a busy
summer. In the West End occupier market, while leasing pace is
still off historical averages, the available supply has now dropped
for the first time since August 2020 and Savills report leasing
activity is picking up.
We also commented on the leading indicators we were seeing in
the hotel investment market last quarter. Early indications for
European second quarter hotel investment volumes are more than a 70
per cent increase quarter on quarter to over EUR3 billion. This is
also over 70 per cent higher than the second quarter of 2020. There
is still further to go to get back to the pre-pandemic level of
EUR6 billion in the second quarter of 2019. Other positive
indications are the number of large transactions in the market
agreed in the second quarter which are likely to close in the third
quarter, and, as with many other real estate markets, there is
currently very strong demand and relatively low supply of product
for sale.
We are also now seeing the beginning of investment market
activity on the retail side. We expect to see a more positive
sentiment on the retail investment market spread with increased
data on post pandemic spending habits, followed by tenant activity
then following through to the relevant investment markets. The
British Retail Consortium reported retail sales were 13.1 per cent
higher in June than in the same month two years ago, while the
total for the second quarter of 2021 was 10.4 per cent up on the
same three-month period of 2019. UK retail warehouses are leading
the way in the sector with Savills reporting the pandemic-related
pause in transactional activity to be short-lived, with the
investment market off to a good start to 2021 with GBP476 million
of transactions in the first quarter. This is the largest volume of
first quarter transactions since 2017 and is up 47 per cent on the
same period in 2019. Yields have been moving rapidly and are
tighter by as much as 75 basis points for prime assets since last
year. The many different types of retail in Europe will move at
differing paces and it will be interesting to see how momentum
builds in this space.
Inflation has become a concern for markets with uncertainty
about whether high short term readings will translate into longer
term inflation. The markets are currently signalling that this is a
short term effect with continued low long term bond yields.
Evercore note the last time US short term inflation was this high,
the ten year US treasury bond yielded 7.7 per cent whereas it is
only 1.3 per cent today. If expectations changed on long term
inflation then we would expect to see interest rate policy
responses and in this case the Group's portfolio would benefit as
78 per cent of the portfolio is floating rate debt which would
benefit from higher short term interest rates. While the income
from floating rate loans would benefit from increases in rates,
these loans all feature interest rate floors which protect income
against very low interest rates. This results in an asymmetrically
better upside to an increasing interest rate environment versus the
downside of a decreasing interest rate environment from here.
Capital markets generally have continued a positive trajectory. The
FTSE 100, FTSE 250 and the iShares UK Property ETF are up 4.8 per
cent, 4.0 per cent and 6.5 per cent respectively during the second
quarter of 2021.
The trend in non-bank lending to the real estate market
continues to be highlighted by data coming through from the Cass
business school survey which is the most comprehensive survey of UK
commercial real estate lending. The statistics provide a clear
picture of the scale of the migration from domestic balance sheet
lenders to other sources of capital in commercial real estate
lending. In 2008 GBP170 billion of UK commercial real estate debt
was held by UK banks and building societies. By the end of 2020
this had reduced to GBP77 billion. That corresponds to a reduction
of market share from 66 per cent to 40 per cent. This trend is
clearly being seen in the Group's pipeline which includes a diverse
set of opportunities and is at the strongest level since the Group
was established.
All of the above factors combined give us confidence of positive
momentum in our markets and activity amongst our counterparties; we
therefore expect our portfolio to continue to perform robustly and
we expect to see further opportunities for loan origination.
Expected Credit Losses & Fair Values
All loans within the portfolio are classified and measured at
amortised cost less impairment. The Group closely monitors the
loans in the portfolio for deterioration in credit risk. There are
some loans for which credit risk has increased since initial
recognition. However, we have considered a number of scenarios and
do not currently expect to realise a loss in the event of a
default. Therefore, no credit losses have been recognised.
This assessment has been made, despite the continued pressure on
the hospitality and retail markets from Covid-19, on the basis of
information in our possession at the date of reporting, our
assessment of the risks of each loan and certain estimates and
judgements around future performance of the assets. The position on
any potential ECLs on the Spanish retail assets in particular
continues to be closely monitored and analysed, and we have sought
input, analysis and commentary from Spanish market advisers in this
regard, to supplement our own information. As referred to above in
the portfolio update, during the quarter, we have received
independent, external valuations of the underlying assets secured
against the Spanish loans. This information did not change our
analysis on the Spanish loan and we note that valuation headroom
remains on these loans. The updated valuations are reflected in the
sector and portfolio LTV tables presented in this factsheet.
Fair Value
The amortised cost loan recognition is governed by IFRS9 and we
do not have a choice of methodology to follow - we are not eligible
to follow fair value accounting for the vast majority of our loans,
and historically only one loan has ever been eligible to be
recognised at fair value (the credit linked notes which repaid in
2020). Therefore, our NAV does not show significant fluctuations
during periods of market volatility.
The table below represents the fair value of the loans based on
a discounted cash flow basis using different discount rates.
Discount Rate Value Calculated % of book value
4.7% GBP 439.3 m 104.4%
5.2% GBP 434.6 m 103.3%
5.7% GBP 429.9 m 102.2%
6.2% GBP 425.3 m 101.1%
6.7% GBP 420.8 m = book value 100.0%
7.2% GBP 416.4 m 98.9%
7.7% GBP 412.0 m 97.9%
8.2% GBP 407.8 m 96.9%
8.7% GBP 403.6 m 95.9%
The effective interest rate ("EIR") - i.e. the discount rate at
which future cash flows equal the amortised cost, is 6.7 per cent.
We have sensitised the cash flows at EIR intervals of 0.5 per cent
up to +/- 2.0 per cent. The table reflects how a change in market
interest rates or credit risk premiums may impact the fair value of
the portfolio versus the amortised cost. Further, the Group
considers the EIR of 6.7 per cent to be conservative as many of
these loans were part of a business plan which involved
transformation and many of these business plans are advanced in the
execution and therefore significantly de-risked from the original
underwriting and pricing (for example the Hotel, Spain). The
volatility of the fair value to movements in discount rates is low
due to the low remaining duration of most loans.
Investment Portfolio at 30 June 2021
As at 30 June 2021, the Group had 18 investments and commitments
of GBP455.3 million as follows:
Sterling equivalent Sterling equivalent unfunded Sterling Total (Drawn and
balance (1) commitment (1) Unfunded)
Hospitals, UK GBP25.0 m GBP25.0 m
Hotel & Residential, UK GBP49.9 m GBP49.9 m
Office, Scotland GBP4.9 m GBP0.1 m GBP5.0 m
Office, London GBP13.6 m GBP7.0 m GBP20.6 m
Hotel, Oxford GBP16.7 m GBP6.3 m GBP23.0 m
Hotel, Scotland GBP38.1 m GBP4.5 m GBP42.6 m
Hotel, Berwick GBP13.1 m GBP1.9 m GBP15.0 m
Life Science, UK GBP19.5 m GBP7.1 m GBP26.6 m
Logistics Portfolio, UK GBP0.6 m GBP0.6 m
(2)
Total Sterling Loans GBP181.4 m GBP26.9 m GBP208.3 m
Three Shopping Centres, GBP31.2 m GBP31.2 m
Spain
Shopping Centre , Spain GBP14.6 m GBP14.6 m
Hotel, Dublin GBP51.6 m GBP51.6 m
Hotel, Spain GBP46.6 m GBP46.6 m
Office & Hotel, Madrid, GBP15.9 m GBP0.9 m GBP16.8 m
Spain
Mixed Portfolio, Europe GBP24.8 m GBP24.8 m
Mixed Use, Dublin GBP3.9 m GBP8.7 m GBP12.6 m
Office Portfolio, Spain GBP13.2 m GBP0.3 m GBP13.5 m
Office Portfolio, Ireland GBP30.2 m GBP30.2 m
Logistics Portfolio, GBP5.1 m GBP5.1 m
Germany (2)
Total Euro Loans GBP237.1 m GBP9.9 m GBP247.0 m
Total Portfolio GBP418.5 m GBP36.8 m GBP455.3 m 1. Euro balances translated to sterling at period end exchange rate. 2. Logistics Portfolio, UK and Logistics Portfolio, Germany is one single loan agreement with sterling and Euro
tranches.
Loan to Value
Please refer to the 30 September 2020 factsheet for details on
the methodology for calculating LTV and the valuation
processes.
On the basis of the methodology previously outlined and
including new valuations received, at 30 June 2021 the Group has an
average last GBP LTV of 63.5 per cent (31 March 2021: 63.6 per
cent).
The table below shows the sensitivity of the loan to value
calculation for movements in the underlying property valuation and
demonstrates that the Group has considerable headroom within the
currently reported last LTVs.
Change in Valuation Hospitality Retail Residential Other Total
-25% 82.0% 101.1% 79.6% 83.3% 84.6%
-20% 76.9% 94.8% 74.6% 78.1% 79.3%
-15% 72.3% 89.2% 70.2% 73.5% 74.7%
-10% 68.3% 84.3% 66.3% 69.4% 70.5%
-5% 64.7% 79.8% 62.9% 65.7% 66.8%
0% 61.5% 75.8% 59.7% 62.5% 63.5%
5% 58.6% 72.2% 56.9% 59.5% 60.4%
10% 55.9% 69.0% 54.3% 56.8% 57.7%
15% 53.5% 66.0% 51.9% 54.3% 55.2%
Share Buy Backs and share price performance
During the second quarter of 2021, the Company's shares returned
12.8 per cent on a total return basis with the share price trading
between 85.4 pence and 94.0 pence and ending the quarter at 94.0
pence, a 12-month high for the Company. Notwithstanding the Company
having bought back 4,308,125 shares in the last twelve months to 30
June 2021, and the Board's regular deliberations about the use and
appropriateness of share buybacks, it was decided that the general
improvement in market sentiment and "return to work" theme was
driving more positive investor sentiment resulting in no share
buybacks in the last quarter. Indeed, this positive momentum has
continued and it pleasing to see the share price start to respond
to the increased demand for shares accordingly. Notwithstanding
this, at the recent AGM, the Company renewed its authority to
purchase up to 14.99 per cent of the Ordinary Shares in issue and
may use this authority to address the imbalance in the demand and
supply for shares where appropriate going forward.
As at 30 June 2021, the discount to NAV stood at 9.3% per cent,
with an average discount to NAV of 12.1% per cent over the quarter,
a marginal improvement from the discount of 13.9% per cent to NAV
on average in the previous quarter. The Board and the Investment
Manager and Adviser continue to believe that the shares represent
very attractive value at this level.
* Note: the 30 June 2021 NAV is based off the current 30 June
NAV as reported in this factsheet. All average discounts to NAV are
calculated as the latest cum-dividend NAV available in the market
on a given day, adjusted for any dividend payments from the
ex-dividend date onwards
For further information, please contact:
Apex Fund and Corporate Services (Guernsey) Limited as
Company Secretary
Magdala Mullegadoo +44 (0) 1481 735814
Starwood Capital
Duncan MacPherson +44 (0) 20 7016 3655
Jefferies International Limited
Stuart Klein +44 (0) 20 7029 8000
Neil Winward
Gaudi Le Roux
Buchanan +44 (0) 20 7466 5000
Helen Tarbet +44 (0) 07788 528143
Henry Wilson
Hannah Ratcliff
Notes:
Starwood European Real Estate Finance Limited is an investment
company listed on the premium segment of the main market of the
London Stock Exchange with an investment objective to provide
Shareholders with regular dividends and an attractive total return
while limiting downside risk, through the origination, execution,
acquisition and servicing of a diversified portfolio of real estate
debt investments in the UK and the wider European Union's internal
market. www.starwoodeuropeanfinance.com.
The Company is the largest London-listed vehicle to provide
investors with pure play exposure to real estate lending.
The Group's assets are managed by Starwood European Finance
Partners Limited, an indirect wholly-owned subsidiary of the
Starwood Capital Group.
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ISIN: GG00B79WC100
Category Code: MSCM
TIDM: SWEF
LEI Code: 5493004YMVUQ9Z7JGZ50
Sequence No.: 118246
EQS News ID: 1221050
End of Announcement EQS News Service
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(END) Dow Jones Newswires
July 23, 2021 02:00 ET (06:00 GMT)
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