Starwood European Real Estate Finance Ltd: Quarterly Portfolio Update

Starwood European Real Estate Finance Ltd (SWEF) reported a significant return of £80 million to shareholders through the compulsory redemption of shares during the quarter ending 30 September 2024. An additional £7 million was recovered from the full repayment of a loan, leaving seven investments in the portfolio.

Post-quarter, a €12.9 million impairment was reported on the Office Portfolio in Ireland, which was reclassified from Stage 2 to Stage 3, indicating increased credit risk. This impairment represents 5.3% of the Group's net assets.

The portfolio demonstrates strong cash generation, supporting a 5.5 pence per share annual dividend. The weighted average remaining loan term is 1.4 years with 84% of loans contracted at floating interest rates.

Despite challenges, SEREF continued with its orderly realisation strategy, returning a total of £210 million to shareholders since January 2023.