Starwood European Real E... Share Discussion Threads

[makinbuks] 26/3/2021 13:26

Our problem is that the market doesn't believe the managers that there is no need for an impairment review

[makinbuks] 26/3/2021 13:02

I think youre onto a good thing.

[playful] 26/3/2021 09:17

Taken a nibble this morning.

[makinbuks] 12/2/2021 17:02

Manager buying notified today, got to be a positive sign

[speedsgh] 26/8/2020 18:20

Stifel still positive on Starwood despite quiet dividend cut -

[speedsgh] 26/8/2020 18:18

Dividend to be re-based to 5.50p per annum from 2021...

Q2 2020 Factsheet -

CURRENT AND FUTURE DIVIDEND
On 23 July 2020, the Directors declared a dividend in respect of the second quarter of 1.625 pence per Ordinary Share, equating to an annualised 6.5 pence per annum. This was covered 0.95x by earnings excluding unrealised FX gains. We expect the dividend cover to reduce to approximately 0.87x during the second half of the year following the repayment and amortisation received in the second quarter.

The Board and Investment Adviser recognise the importance of stable and predictable dividends for our shareholders. Accordingly, we hold a dividend reserve built up over several years which we have been using to maintain the annual dividend at 6.5 pence per share over the last eighteen months even though the dividend has been uncovered by earnings more recently. As a result of this reserve, dividends have not therefore been paid out of capital reserves. The Company intends to continue to use the remaining reserve to maintain the annual dividend at 6.5 pence per share for the rest of 2020 which will leave a small reserve remaining.

In the period since the Group’s inception, the Bank of England base rate has reduced from 0.50 per cent to 0.10 per cent. The average 5 year GBP swap rate from inception to year end 2019 was 1.16 per cent, compared to 0.13 per cent at 30 June 2020 representing a fall of over 1 per cent on the average. At inception LIBOR / EURIBOR might have contributed up to 10 per cent of the company’s underlying return profile, today it makes up less than 1 per cent.

In light of the declining interest rate environment, from 1 January 2021 the Group intends to reduce the dividend target to 5.5 pence per annum (payable quarterly) which, in the Board and the Investment Adviser’s view, is a more sustainable level of dividend which should be fully covered by earnings whilst ensuring we maintain our strong credit discipline whilst managing risk. On the share price at 30 June 2020, a dividend of 5.5 pence per annum represents an attractive 6.4 per cent dividend yield.

[makinbuks] 13/8/2020 10:58

Nothing out of the ordinary and paid for of course, but good to see the managers trying to cut the discount with this article and the share buyback scheme underway

[makinbuks] 13/8/2020 10:56

hxxps://www.trustintelligence.co.uk/investor/articles/fund-research-investor-starwood-european-real-estate-finance-retail-aug-2020

[makinbuks] 24/7/2020 17:01

Strong update, all interest and repayments received in time. LTV 63%. 6.4% forward covered yield. Probably early days to assess the COVID effect on tenants

[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 07:12

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 07:19

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 06:36

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

[stemis] 24/8/2016 23:49

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 12:02

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 09:45

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

[jonwig] 24/8/2016 07:34

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 11:12

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 07:27

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 07:04

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?