Starwood European Real Estate Finance has published its interim results covering the six month period to the end of June 2015. As at 30 June 2015, the Net Asset Value was 99.94 pence per Ordinary Share and the share price was 107.25 pence.
The Board believes that competition to provide loans is increasing and Starwood European Real Estate Finance faces a choice between maintaining the dividend but at the cost of making increasingly risky loans or cutting it and targeting the dame risk profile. They have decided that the best course of action is to cut the target dividend from 7p a year to 6.5p for 2016 and beyond.
The fund is fully invested, Having issued £24m worth of shares in July this year, the Board reckons they have sufficient investment opportunities available to merit further placings of shares and intends to issue a prospectus to support this.
Recent loans made (since the period end) include €6.1m lent against an Irish portfolio of retail and residential rental properties. A £6.2m increase in its existing loan secured on a 5 Star London Hotel. The purchase of £8m of the GBP5£560m Class B2 Fixed Rate Secured Notes issued by CPUK Finance Limited following the acquisition of the Center Parcs group by a fund managed by Brookfield and a £32.5m whole loan to refinance a portfolio of industrial properties throughout the UK.
The whole of the £24m raised has been deployed and they have also used part of their credit facility.
SWEF : Starwood European to trim dividend