SWEF Announces Full Year Results for 2023 Highlighting Strong Performance and Strategic Realisations

Starwood European Real Estate Finance Ltd (SWEF) and its subsidiaries, known together as SEREF or the Group, reported its full year results for the period ending December 31, 2023. The Group, a prominent investor in real estate debt in the UK and Europe, announced a strong cash generation allowing for continuous annual dividend payments of 5.5 pence per Ordinary Share. The period witnessed a significant repayment of £166.9m, equating to 39.2% of its funded loan portfolio as of December 31, 2022, including full repayment of eight loans.

Further showcasing the Group's solid performance, dividends paid out for 2023 amounted to 6.0 pence per Ordinary Share, outperforming the target dividend rate. The report also highlighted the Group's income stability with all contracted loan interest and amortisation payments being fully met. Additionally, 90.5% of the portfolio benefits from floating interest rates, aiding the Group's performance in the current interest rate climate. Notably, the portfolio's defensive qualities were reflected in the continued stability of the Group’s NAV per share in a challenging macroeconomic environment.

Post the reporting period, SEREF made considerable progress in receiving repayments, further de-risking the portfolio. This includes significant repayments and a notable reduction in Spanish retail exposure, aligning with the Group's strategic focus on orderly realisation and return of capital to shareholders. The successful realisation strategy led to capital distributions totaling £45 million in early 2024.

Chairman John Whittle reflected on the year as highly successful, highlighting the structured realisation of the portfolio's assets and the anticipated continuation of capital redemptions. This outcome aligns with the Group's strategic aim of providing shareholders with a stable income source while managing a high-quality portfolio.