SWEF Updates on Irish Office Portfolio Challenges

Starwood European Real Estate Finance Ltd (SWEF) has provided an update on its office loan portfolio in Ireland. As of May 31, 2025, the loan represented 7.8% of the company's Net Asset Value (NAV). On October 21, 2024, SWEF announced a €12.9 million impairment on this loan, reflecting 50% of its value at the time. Despite exploring business plan scenarios, the Board has decided to further impair the loan by €7.3 million as of June 30, 2025, reducing the carrying value to €6.75 million.

The ongoing challenges in Dublin's office market contribute to uncertainties regarding the loan's recoverability. SWEF aims to maximize value recovery while monitoring developments closely. The company's NAV was £149.6 million as of May 31, 2025, with a NAV per share of 101.09 pence. SWEF has returned £256 million to shareholders since adopting its realisation strategy in January 2023.