|Thanks - PHNX results at 7:00, hope they clarify on any negative rates effects. RQIH a long haul!|
|Yes, I'm still around. Don't post a huge amount although probably hold similar stuff to you. Have somne LBOW, Phoenix Group, Randall & Quilter, various Prefs..|
|Yes, the market has accepted that. I think further new loans might be set at lower rates if current conditions persist. Unless, of course, SWEF moves into more risky areas or more mezzanine. LBOW, which I also hold, appears to be more conservative.
PS. I haven't read much of you lately, or am I looking in the wrong place?|
|But the 6.5p is a cut from what they were paying last year - 7p|
|H1 results today.
Confirm dividends of 6.5p sustainable. I'm not altogether happy that they invested all the funds just raised in their largest (I think) single loan a mezzanine hotel group loan. They say an attractive rate and appear comfortable.|
|Today's placing - 70,839,398 New Ordinary Shares at an Issue Price of 103.05 pence per Ordinary Share raises £73 million before expenses.|
Lots of encouraging stuff happening, but ...
As outlined above, the Company's pipeline of investments under review is of a size that the Board is also considering publishing a prospectus in order to implement a 12 month placing programme. This would allow the Company to raise additional equity capital as needed for making further investments.
They can issue up to 200m new shares without applying pre-emption rights (against current total 262m). Maybe they intend just that, in which case the share price looks stuck!|
|The market didn't like the increase in issue size from about 14m to 23.8m shares (announced at 3:30 yesterday).
But they got it away, and the combined NAV per share is probably just over 100p after the issue.
They have a programme to issue up to 200m new shares, so this is only the start, and they might want to get a move on as the facility expires at the 2016 AGM unless renewed. Are they over-egging this?|
|Ref davebowler's link. I've set up a thread for UKML
Gone straight to a 6% premium to placing price.|
|Yes, seems an odd time to be reducing interest return expectations just as interest rates seem to be on the turn. I can't believe a rise in base rates to, say 2%, wouldn't have some beneficial impact on SWEF's income.....|
|Placing announced for up to £15m in new shares. (Maybe 14m shares?) Existing number of shares is 238m.
Dividend target for 2016 reduced to 6.5p owing to increased competition for loans. Does this factor in a possible 25 bps interest rate rise?
|Jonwig - no I wouldn't be worried but it may make investors think before buying at the current price. Had the loans been longer term then it would be more attractive. Having said that interest rates may one day increase making it easier to maintain the current level of income.|
|Latest factsheet has some interesting comments on sustainability of 7p dividend payout. If the dividend couldn't be held at 7p for any of the reasons mentioned, that wouldn't worry me unduly!
|Its been a bit of a wait, but they have made it to a annualised 7p dividend.
"Starwood European Real Estate Finance Limited (the "Company") has declared a dividend in respect of the period from 1 January 2015 to 31 March 2015 of 1.75 pence per Share, payable on 29 May 2015 to Shareholders on the register on 7 May 2015. The ex-dividend date will be 8 May 2015."
|LBOW issued its FY results today, all in line with targets - in particular, 6p dividends and senior loans. NAV was just shy of 100p. No unexpected issues.
SWEF NAV announced today is 100.31p and annual payments are currently 6.8p. A slightly riskier loan profile (more mezzanine and proportion in euros) has been moved to a higher proportion of secured loans.
In the results to 31/12/14 (issued 30/03/15), I couldn't find any potential problems in the portfolio analysis, though euro exposure needs watching.
Happy to hold both.|
|1.7p for the quarter; up from last quarter's 1.5p.|
|I would think that with the loan syndication and re-investment expected to be completed in the second half of 2014, the first annualised 7p dividend will probably come in Q1 2015. Either way, at least we're nearly there...finally!|
|7p dividend close, but not clear whether they will start paying the quarterly equivalent thereof in Q4 2014 or Q1 2015. I assume they will pay a smaller dividend (perhaps 1.5p) in Q3 2014.
"As noted above, the Group will be delivering a net portfolio yield of 6.9 per cent once the W hotel loan is substantially drawn. Based on the current syndication plans and deals in the pipeline to re-invest those proceeds the Company remains comfortable that it will be able to pay an annualised 7.0 pence dividend upon completion of the syndication and re-investment, expected to be
completed in the second half of 2014."
|Fully invested now. Confirmation expected in 1 month as to whether they intend to pay a 7p annual dividend.|
|Yes, they're getting there, albeit painfully slowly! Happy to keep holding though and hopefully start collecting the full 7ish% yield on opening NAV before too long. Good portfolio diversifier in my view - seems to hold steady whatever the wider market is doing.|
|Excellent news as getting close to 90% committed. Running yield hopefully set to jump to around 6.25-6.5%.
"Starwood European Real Estate Finance Limited (the "Company") announces that it has committed to provide a £27 million financing facility for an office building in Park Royal, West London.
£22m of the available facility is expected to be drawn in early June. The Company has now made or committed to nine investments representing approximately 89% of net IPO Proceeds."
|Running yield up to 5.5% on 77% invested.
"Following the closure of these loans, the Group has made investments representing approximately 77% of net IPO Proceeds and the Company is capable of delivering an annualised net portfolio yield of approximately 5.5 per cent on deals funded to date (after scheduled amortisation but prior to any other prepayments)."
Expected to reach close to 100% invested by 30 June (seems rather ambitious based on recent pace).
"A number of whole loan opportunities are currently in execution with several others at advance term sheet stage and based on these facts the Company remains confident of being substantially fully invested on the basis of completing two to three additional transactions within the second quarter of 2014."
Good to see that the deal that took the fund to 77% invested is not being used by the manager to take extra fees, especially given the slow deployment.
"Under the terms of the Investment Management Agreement, the calculation of the management fee is based on an adjusted Net Asset Value to exclude any cash balances until the date that 75% of the net IPO proceeds are invested. The Company has now invested 77% of net IPO proceeds and the Investment Manager is therefore entitled to charge a fee on the unadjusted Net Asset Value. However, it has been proposed by the Investment Manager that, notwithstanding the provisions detailed above, the percentage above which cash balances will be included in the calculation of Adjusted Net Asset Value shall be increased from 75% to 90%. The Board has accepted this proposal."
|Yes, I've both.
A similar company, DREF, had a duff loan which led to underperformance of NAV and SP, so some diversification is maybe prudent.|
|Ive some SWEF but is LBOW better? This is from the LBOW thread (mentions SWEF).
davebowler 10 Apr'14 - 10:03 - 7 of 8 0 0
¢ Today's announcement is excellent news and takes LBOW to substantially fully-invested, and more-or-less within the time-frame set out at launch (12 months). This is in contrast with SWEF which has struggled to deploy the capital it raised at launch. We understand the property-lending space remains competitive and we prefer the regional UK exposure the LBOW team offer, rather than a London-centric approach.
¢ The underlying loan metrics mean the company's target return of a 6% pa dividend should be more than fully met going forwards. Net of fees and expenses, we believe a run-to-maturity IRR of 7.2% pa looks achievable. We think ICG Longbow have now demonstrated they are amongst the market leaders in UK Commercial Property Senior Secured Lending.
¢ We continue to like the property debt space and think LBOW highlights the very attractive risk / reward profile experienced managers can offer to investors right at the top of the capital structure with low LTVs. (In all cases, LBOW's loans are given the senior secured position and the average portfolio LTV is 61%, with 160% interest coverage ratio.)
¢ We note the potential tenth investment opportunity and look forward to an announcement on it (in the near future. We also expect the company's maiden set of final results soon.
¢ Looking at the other funds within the property debt space which, to reiterate, we main bullish on LBOW offers the purest senior-loan exposure but we also believe RECI's more diverse strategy of bond and loan exposure offers investors excellent returns; a 12 month dividend yield of 6.1% with the shares trading around par. This is a much more attractive proposition, in our view, than SWEF which is currently 71% committed and trades at a premium of 3.4% and yields 3% (although this should increase when the fund becomes fully invested).|