Starwood European Real Estate Finance Ltd: Quarterly Portfolio Update

Starwood European Real Estate Finance Ltd reported significant progress in their orderly realisation strategy for Q1 2025. The firm returned £46 million to shareholders, following the full repayment of a UK hotels loan, amounting to 61.9% of the company's NAV from January 2023. Despite a €12.9 million impairment on a Stage 3 office loan, no further value changes occurred.

The portfolio comprises six investments, primarily in the UK and Ireland, with 77.5% in floating rate loans. The weighted average Loan to Value is 68.1%. Current cash reserves stand at £48.8 million, including a reserve to cover unfunded commitments.

A dividend of 1.375 pence per share was declared for Q1 2025, aligning with an annual target of 5.5 pence per share. The portfolio supports strong cash flow, maintaining dividend payouts amidst volatile market conditions influenced by recent US tariff moves.