Starwood European Real Estate Finan Quarterly Factsheet Publication (1830D)
27 Janvier 2015 - 8:01AM
UK Regulatory
TIDMSWEF
RNS Number : 1830D
Starwood European Real Estate Finan
27 January 2015
27 January 2015
Starwood European Real Estate Finance Limited: Quarterly
Factsheet Publication
Starwood European Real Estate Finance Limited (the "Company")
announces that the factsheet for the fourth quarter ended on 31
December 2014 is available at:
www.starwoodeuropeanfinance.com
Extracted text of the commentary is set out below:
"The last quarter of 2014 saw the Company effectively mature
through the implementation of a number of highly orchestrated
actions.
Three actions were undertaken so that the Company could commit
to two new loans amounting to GBP51.9 million and commit a further
GBP5 million to the Centre Point financing, whilst also ensuring
coverage of future commitments and minimising current and future
potential cash drag.
Firstly the EUR35.9 million syndication of the Industrial
Portfolio in the Netherlands was achieved in early December at
slightly better terms than originally underwritten. The timing was
deliberately set to match the likely new investment needs that
occurred a few weeks later.
Secondly the directors carefully set portfolio diversification
and loan exposure levels on larger new investments working closely
with Starwood Property Trust (NYSE: STWD).
Thirdly the board felt it was now appropriate to introduce a
liquidity facility given all available liquidity was broadly
committed, with additional investment needs now crystallising. A
facility was signed in December giving the Company enhanced
flexibility. Further detail is set out in the factsheet, but in
summary the facility provides immediate coverage to existing
unfunded commitments and, being multi-currency, helps mitigate FX
risks on new non-sterling commitments (where a syndication is
envisaged) and allows cash drag to be mitigated through the short
term warehousing of new investments prior to refinancing with loan
repayment receipts or additional equity.
As 2015 starts the Company is well positioned, with a
diversified high quality loan portfolio where the last GBP LTV
averages 62.5 per cent, nearly 62 per cent of the loan book is in
senior or whole loan positions and the invested annualised gross
total return is 9.6 per cent. The primary focus is to continue to
minimise cash drag risk whilst not looking to deviate from the
current prudent approach to credit risk. The last two years have
demonstrated the Company's careful approach to investing and this
is expected to continue.
The board feels that some of the Company's investment policy
should now be marginally revised as some of the initial constraints
may be no longer appropriate, and occasionally over-restrictive,
e.g. the cap on investments in the UK. Consequently the board is
proposing an amendment of the Company's investment policy in order
to allow the Company the flexibility to make investments in any
state that is a member of the European Economic Area and to remove
the limitation of 75 per cent on investments in the United Kingdom.
The geographical change in no way suggests a change to the
Company's core focus; it merely provides the flexibility for the
Company to react to quality risk adjusted one-off opportunities.
Prudence will apply, for example, it is almost inconceivable any
investment would be made in Greece in the short to medium term if
ever.
The Company intends to hold an EGM shortly to consider this
proposal. The Company will also seek approval for an equity
placement programme as a matter of good housekeeping to avoid the
need for a further EGM. In line with strategy any equity raising
will be highly focussed on mitigating cash drag risk and ideally
matching deal pipeline.
Reflecting the Company's desire for strong distribution of free
cash on 27 January 2015 it declared a dividend for the period from
1 October 2014 to 31 December 2014 of 1.7 pence per Ordinary Share
(annualised 6.8 pence), representing a total dividend for 2014 of
5.8 pence per Ordinary Share.
The directors place primary importance now on maintaining a
consistent dividend and ensuring, as much as possible, that cash
drag does not materially impact this aim. Any future plans to raise
additional equity will be considered against this objective and, as
previously mentioned, it is intended that the liquidity facility
will assist with this.
Given the Company's investment position and continued pipeline
of investment opportunities, it is likely that the board will give
consideration to the raising of additional equity in 2015. The
investment environment for the Company has changed somewhat over
the last two years and the Company has to date sourced attractive
business consistent with risk/return metrics set out at IPO. Going
forward, should any material equity issuance be envisaged, the
Company will look to take account of shareholders' current views on
the relative balance between risk, returns and scalability."
For further information, please contact:
Gary Gould / Stuart Klein
Jefferies International Limited
T: +44 20 7029 8000
Ravi Anand / Robert Peel
Dexion Capital plc
T: +44 20 7832 0900
Ipes (Guernsey) Limited
Gillian Newton
T: +44 1481 735869
Notes:
Starwood European Real Estate Finance is an investment company
listed on the main market of the London Stock Exchange with an
investment objective to provide Shareholders with regular dividends
and an attractive total return while limiting downside risk,
through the origination, execution, acquisition and servicing of a
diversified portfolio of real estate debt investments in the UK and
Continental European markets. www.starwoodeuropeanfinance.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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