Starwood European Real E... Share Discussion Threads

[skinny] 17/11/2018 12:28

Thanks Jonwig - I'll put them on my watch list.

[jonwig] 16/11/2018 16:41

Skinny - I think a movement down from premium is expected now, with the increased risk of default (increased rates, eurozone stress) which would be a big hit even with a single issue. They say:

If a borrower defaults on a loan and the real estate market enters a downturn it could materially and adversely affect the value of the collateral over which loans are secured. However, this risk is considered by the Board to constitute credit risk as it relates to the borrower defaulting on the loan and not directly to any movements in the real estate market. The Group's exposure to market price risk arises from Credit Linked Notes held by the Group and classified as assets at fair value through profit or loss. The Group considers that there is no material market price risk at the end of the reporting period.

I'm moderately relaxed but not laid back, as it were.

[skinny] 16/11/2018 15:38

Any views on these as they head towards their NAV?

[jonwig] 29/1/2018 15:27

From their proposals (post #42) probably new shares.

[makinbuks] 29/1/2018 15:03

Fully invested now. Strong pipeline of deals reported yet only £25m scheduled for repayment in the next 12 months. Does that mean we can expect either more borrowings or a placing? Expanding the size of the fund by issuing shares at a premium seems an obvious step

[jonwig] 23/8/2017 06:12

Proposals:



The only immediately significant thing seems to be that they want to be able to issue up to 20% of shares (was 10%) without applying pre-emption rights.

[jonwig] 29/3/2017 06:19

Annual Report. I can't find anything to get excited (or bothered) about. The dividend policy seems to remain 6.5p.

[jonwig] 25/8/2016 05:36

Thanks - PHNX results at 7:00, hope they clarify on any negative rates effects. RQIH a long haul!

[stemis] 24/8/2016 22:49

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..

[jonwig] 24/8/2016 11:02

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?

[stemis] 24/8/2016 08:45

But the 6.5p is a cut from what they were paying last year - 7p

[jonwig] 24/8/2016 06:34

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.

[dendria] 12/8/2016 10:12

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.

[jonwig] 28/7/2015 06:27

Quarterly summary.
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!

[jonwig] 22/7/2015 06:04

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?

[stemis] 20/7/2015 08:47

Ref davebowler's link. I've set up a thread for UKML



Gone straight to a 6% premium to placing price.

[stemis] 20/7/2015 08:37

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.....

[jonwig] 20/7/2015 06:18

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?

[davebowler] 08/5/2015 12:52

hxxp://www.investmentweek.co.uk/investment-week/news/2407392/twentyfour-targets-gbp200m-for-uk-mortgages-trust-launch?utm_term=&utm_content=TwentyFour%20targets%20%C2%A3200m%20for%20UK%20Mortgages%20trust%20launch&utm_campaign=IW.Daily_RL.EU.A.U&utm_medium=Email&utm_source=IW.DCM.Editors_Updates

[salchow] 29/4/2015 09:47

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.

[jonwig] 29/4/2015 06:45

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!

[scburbs] 28/4/2015 07:22

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."

[jonwig] 23/4/2015 16:45

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.

[stemis] 27/1/2015 09:57

1.7p for the quarter; up from last quarter's 1.5p.

[m1das_touch] 31/7/2014 11:44

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!