SWEF: COVID-19 update (1002539)
20 Mars 2020 - 8:00AM
UK Regulatory
Starwood European Real Estate Finance Ltd (SWEF)
SWEF: COVID-19 update
20-March-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
20 March 2020
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY
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REGULATIONS OF SUCH JURISDICTION
Starwood European Real Estate Finance Limited: COVID-19 update
Starwood European Real Estate Finance Limited (the "Company" and, together
with its subsidiaries, the "Group") notes the recent negative price
movements in the Company's shares and provides an update in light of the
current disruption to markets as a result of COVID-19.
The Company currently has no impairments, is very modestly levered with net
debt of just GBP16.5 million at 28 February (equal to 3.9 per cent of NAV),
has no repo facilities outstanding and significant available but undrawn
revolving credit facilities of GBP98.5 million. As such, the Company considers
that the recent share price movements have been driven by market conditions
and flows as opposed to a significant change in the Company's fundamental
value or outlook.
In the current market, the Company is particularly focussed on its exposure
to hospitality, which was 31.4 per cent of invested assets as at 31st
December 2019, and expects to see a negative impact in operational
performance generally across the hospitality sector. In common with similar
crises of the past such as the 9/11 terror attacks and during the SARS virus
scare, the market will see a particularly difficult hospitality trading
period.
Whilst this negative impact is expected across the hospitality sector in the
near term, the Company's Investment Manager is confident in the fundamentals
of the markets in which the assets are located and the borrower's business
plans for the assets over the medium to long term. The Company's hospitality
exposure has been structured defensively by the Investment Manager by
conducting thorough due diligence, working with strong sponsors and
implementing robust loan structures combined with significant
diversification by jurisdiction and asset type. Each investment has a
significant cushion to real estate collateral value protecting the lender's
position.
The Company has always looked to limit downside risk by focusing on secured
debt with quality collateral and contractual protections. The Company's
loans have modest senior LTVs which provide substantial headroom and strong
loan structures in line with the Company's investment policy.
As reported in the most recent Quarterly Investment Update, as at 31
December 2019 the Company's Weighted average portfolio LTV to Group first GBP
was 18.4 per cent and the Weighted average portfolio LTV to Group last GBP was
63.0 per cent. The corresponding metrics for the hotel portfolio on its own
were a weighted average first GBP LTV of 4.4 per cent and a weighted average
last GBP LTV of 60.7 per cent.
The Investment Manager is in regular dialogue with all of the borrowers in
the Company's portfolio and is working alongside them to navigate these
currently disrupted markets.
The Company looks forward to releasing its Annual Results on 25 March 2020.
For further information, please contact:
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary -
01481 735879
Dave Taylor
Starwood Capital - 020 7016 3655
Duncan MacPherson
Stifel Nicolaus Europe Limited - 020 7710 7600
Mark Bloomfield
Mark Young
Nick Donovan
Maarten Freeriks
Notes:
Starwood European Real Estate Finance Limited 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 the wider European Union's internal
market. www.starwoodeuropeanfinance.com [1].
The Group is the largest London-listed vehicle to provide investors with
pure play exposure to real estate lending.
The Group's assets are managed by Starwood European Finance Partners
Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group.
ISIN: GG00B79WC100
Category Code: MSCM
TIDM: SWEF
LEI Code: 5493004YMVUQ9Z7JGZ50
Sequence No.: 53576
EQS News ID: 1002539
End of Announcement EQS News Service
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