Starwood European Real Estate Finance (SWEF) H1 2024 earnings summary

Executive summary

• Starwood European Real Estate Finance is executing an orderly realisation of assets and returning capital to shareholders, with £210 million returned since January 2023 and a further £80 million post-period end.

• The loan portfolio has performed robustly, with all contractual interest and scheduled amortisation received on time and no assets classified as Stage 3 as of 30 June 2024.

• NAV per share remained stable, ending the period at 104.92 pence, and the company maintained its annual dividend target of 5.5 pence per share.

• The company is no longer making new investments, focusing instead on managing existing loans and returning capital.

Financial highlights

• Operating profit for the six months to 30 June 2024 was £10.8 million, down from £13.1 million in the same period last year.

• Income from loans advanced was £10.8 million (2023: £18.2 million); total income was £12.7 million (2023: £18.2 million).

• Net asset value at 30 June 2024 was £283.5 million (2023: £400.4 million), with cash and cash equivalents of £117.1 million.

• Basic and diluted EPS for the period was 3.78 pence (2023: 3.30 pence).

• Dividends of 2.75 pence per share were declared for H1 2024, with an additional 0.5 pence per share related to 2023.

Outlook and guidance

• The focus for the remainder of 2024 is on robust asset management, continued realisation of the portfolio, and timely capital returns.

• The board expects the target dividend of 5.5 pence per share to remain covered by earnings through year-end 2024.

• No new loan commitments are planned, with capital reserved for existing obligations and value preservation.