SWEF: Quarterly Portfolio Update

Starwood European Real Estate Finance Ltd (SWEF) reported significant progress in portfolio realisation for Q2 2024. During the quarter ending 30 June 2024, SWEF received £64.1 million in repayments from four investments, accounting for 28% of its total funded loan portfolio as of 31 March 2024. This includes full repayments from loans involving three shopping centres in Spain, and hotels in Dublin and Scotland.

The proceeds will fund the sixth return of capital to shareholders, totaling £80 million in July 2024. Additionally, a dividend of 1.375 pence per share will be paid in August, maintaining the annual target of 5.5 pence per share. Most loans are performing well, with no downgrades in their risk profiles. SWEF’s portfolio remains robust, with a weighted average Loan to Value of 58%.

The company has a strong cash position, holding £117.1 million as of 30 June 2024, sufficient to cover its unfunded commitments. Investments are well-diversified across sectors, with 84.8% in floating-rate loans, offering inflation protection. The weighted average remaining loan term is 1.5 years.