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Share Name Share Symbol Market Type Share ISIN Share Description
Starwood European Real Estate Finance Limited LSE:SWEF London Ordinary Share GG00B79WC100 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.40 -0.41% 96.40 96.40 97.40 97.20 96.80 97.00 205,278 16:35:05
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 28.0 7.0 13.8 398

Starwood European Real E... Share Discussion Threads

Showing 1 to 16 of 75 messages
Chat Pages: 3  2  1
DateSubjectAuthorDiscuss
02/4/2014
17:29
FT: International investors pile into eurozone real estate But the positive outlook is not being driven by an improvement in the continent's economic fundamentals. Very few property markets across the eurozone have yet seen an increase in occupier demand or rents. Instead the sudden good mood is being fuelled by international investors, who have piled into the region's property market in recent months. http://www.ft.com/cms/s/0/ef0b8f72-b4f5-11e3-9166-00144feabdc0.html#ixzz2xkN9Sbcg After yesterday's ... The Board of Starwood European Real Estate Finance Limited (the "Company") announces that it has today published a circular (the "Circular") to Shareholders setting out and recommending its proposal to amend the Company's investment policy in order to: [...] ยท allow the Company the flexibility to make investments in Spain and Italy, A slight concern there?
jonwig
30/3/2014
23:44
Yes, I missed that. Obviously they are taking a prudent view. So if they achieve 7-8%+ in the 2nd half then maybe 6-6.5% for the year.
stemis
30/3/2014
21:10
SteMiS, They disclosed the current estimated earnings yield, its 5.3%. "The Group is today capable of delivering a net portfolio yield of approximately 5.3% (prior to any prepayments and taking reasonable estimates of Group costs) and expects to be substantially fully invested on the basis of completing two to three additional transactions as soon as practicable within the second quarter of 2014." http://www.investegate.co.uk/starwood-euro-real--swef-/rns/preliminary-results/201403210700158442C/
scburbs
30/3/2014
20:01
At the moment they have 70.3% loaned out at 9.1%. That's the equivalent of 6.4%. Investment management fee will be 70.3% of 0.75% and other expenses should come to around 0.3%. All in all that's about 5.6%. So 5-6%. If they can get it all loaned out then 8% is possible without debt, maybe 9% with.
stemis
28/3/2014
18:41
I think this is someway off yielding 7%. My guess is 5-6% for 2014, perhaps 7% in 2015. I would be happy with 6-7% return p.a. as holding this as a cash substitute. If they can generate more than 8% off a relatively low risk debt portfolio then they have probably earned an incentive fee. They will probably need some form of financial engineering to get a decent incentive fee, this will involve taking on greater risk (but returning funds to shareholders reducing their exposure). The two main routes would be taking on cheap debt and returning the cash to shareholders, but loans at capped at 25% of NAV. The other route is to sell off senior portions at a profit and take a turn as described below. Clearly neither route is appropriate at the moment as they are struggling to invest the cash they have! This cash drag will be making it even harder to hit the hurdle. "The Group may seek to enhance the returns of selected loan investments through the economic transfer of the most senior portion of such loan investments which may be by way of syndication, sale, assignment, sub-participation or other financing (including true sale securitisation) to the same maturity as the original loan (i.e. "matched funding") while retaining a significant proportion as a subordinate investment. It is anticipated that where this is undertaken it would generate a positive net interest rate spread and enhance returns for the Group."
scburbs
28/3/2014
16:34
SteMiS - I have something on page 59 of the prospectus, which I read before investing. At the time, it didn't cause me particular worry, as I was seeking income and limited capital growth: The Special Limited Partner shall be entitled to receive carried interest from the Partnership, calculated by reference to the annualised total return to Shareholders over the period to the fifth financial year of the Company following Admission (the "Fifth Year End") and each five year period thereafter. In relation to the period to the Fifth Year End, the amount of the carried interest shall be 20 per cent. of the excess (if any) of the returns generated by the Company over the Hurdle Total Return. The Hurdle Total Return will be achieved when the NAV of the Company, plus the total of all dividends declared and paid to Ordinary Shareholders, is equal to the NAV of the Company as at Admission as increased by 8 per cent. per annum, on a simple interest basis (but excluding actual carried interest accrued and deemed as a creditor on the balance sheet). I can see this as dear in a capital growth situation, of course - it's hedge fund stuff.
jonwig
28/3/2014
15:38
Looks like a nice solid 7% yield with maybe a slight (0-2%) capital appreciation. However am I right in thinking that once the return exceeds 8%, 20% of the excess goes to an outfit called Starfin Carry LP. Is this some sort of management incentive?
stemis
22/3/2014
16:24
Looks solid and at the low risk end of the spectrum (14-57% LTV), earnings yield of 5.3% (net) with cash drag and 9.2% (gross) on lent portfolio. I like this as a cash substitute (or low risk ISA/SIPP investment).
scburbs
22/3/2014
16:01
Hopefully the investment manager's cautious and conservative approach will provide some protection in the event of another commercial property crash. I like the fact that they're building a well-diversified portfolio, both by property type and geography.
m1das_touch
22/3/2014
09:18
I don't see any surprises in yesterday's results. On track to meet targets on investment and dividend payments. No gearing at holding company level is important, given up to 50% of loans are subordinated. If there were to be another commercial property crash this would dent the NAV and payout significantly, but I'm unsure of the position regarding senior loans: would a sale be forced or a repossession and debt/equity swap be feasible? The latter would provide better opportunities! (I imagine the answer will depend on each individual loan.) I'm likely to add with my next ISA funds.
jonwig
24/1/2014
08:47
I'm sure you're right - somehow I can't imagine Claridges being repossessed, for example!!
m1das_touch
24/1/2014
06:59
I'm not looking for a re-rating, since this won't really gain benefit from rising property values, as it provides debt. However, the loans will be more secure if values rise, and there seem to be mezzanine elements in some, which will no doubt be tied to property values. The loan rates to date seem to be fixed rather than floating with LIBOR or base rates. That's a bit of downside risk if rates rise, but not as bad as property equities would be! Senior status of the loans to date will mean the borrowers won't be keen to default and lose their prime assets!
jonwig
23/1/2014
12:56
Recently increased my own holding jonwig - very little financial press coverage and the company seems to be under the radar of many investors. With so many REITS and other property funds trading at well above NAV and looking expensive, I think this could re-rate as the remaining cash is invested and the forward 7% yield comes to investors' attention.
m1das_touch
23/1/2014
12:30
Yes, in my ISA. Agree with your header summary, and may increase my present small holding in April.
jonwig
23/1/2014
12:03
Holding these in my SIPP for long-term growth and dividends. Any other holders?
m1das_touch
23/1/2014
12:02
Guernsey domiciled closed-end investment company that originates, executes and services a diversified portfolio of commercial real estate debt investments in liquid markets (office, retail, logistics, light industrial, hospitality and residential) in the UK and Continental Europe. I see this as an interesting and relatively low-risk property play, different to a mainstream REIT in that it focuses on providing commercial loans (usually syndicated) of between 3-7 years, secured on high quality property assets. Current loanees include the Maybourne Hotel Group in London (loans secured against luxury hotels Claridges, The Connaught and The Berkeley), Almacantar (Centre Point Tower, London), Tristan Capital Partners (retail portfolio, Finland) and Lifecare Residences Group (loan to develop a retirement village in London). Management seem to have a very conservative approach and it's taken longer than originally anticipated to find appropriate investment opportunities, but SWEF is now around 90% invested and is committed to paying a 7% yield on original NAV once fully invested. The managers of the fund, Starwood European Finance Partners Ltd, are an indirectly wholly-owned subsidiary of the well-respected USA-based Starwood Capital Group, which has an established history of financing these types of commercial property loans. http://www.starwoodeuropeanfinance.com/
m1das_touch
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