SWEF: Quarterly Portfolio Update

Starwood European Real Estate Finance Ltd (SWEF)
SWEF: Quarterly Portfolio Update

23-Jul-2021 / 07:00 GMT/BST
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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 £26.6 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 £13.5 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