Starwood European Real Estate Finance (SWEF) H1 2025 earnings summary

Executive summary

• Continued orderly realisation of assets and return of capital to shareholders, with £46.0m returned in H1 2025, totaling £256.0m since January 2023, or 61.9% of NAV as of 31 Jan 2023.

• One loan asset repaid in full during H1 2025; two more repaid after 30 June 2025, leaving four remaining loan assets as of report issuance.

• Significant further impairment on Office Portfolio, Ireland, with carrying value written down to £5.8m as of 30 June 2025 and further to £4.1m by 31 August 2025.

• NAV remained stable except for the impact of the impairment; annualised dividend of 5.5p per share maintained.

Financial highlights

• Net income for H1 2025 was £42,908, down from £10.8m in H1 2024, reflecting lower portfolio size and higher impairments.

• Total income for H1 2025 was £7.5m (H1 2024: £12.7m); impairment loss on loans advanced was £6.2m.

• NAV at 30 June 2025 was £144.2m (97.41p/share), down from £283.5m (104.92p/share) at 30 June 2024.

• Cash and cash equivalents at 30 June 2025 were £48.6m; no unfunded loan commitments remain.

• Dividend yield at 30 June 2025 was 6.3% on share price.

Outlook and guidance

• Focus remains on robust asset management, orderly realisation of the remaining portfolio, and timely capital return.

• Target dividend of 5.5p per share expected to be maintained through 2025.

• Realisation of assets remains on track to complete within the original 3-4 year timeframe set in January 2023.