SWEF: COVID-19 update (1002539)

 
 Starwood European Real Estate Finance Ltd (SWEF) 
SWEF: COVID-19 update 
 
20-March-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                                                               20 March 2020 
 
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                                            REGULATIONS OF SUCH JURISDICTION 
 
Starwood European Real Estate Finance Limited: COVID-19 update 
 
  Starwood European Real Estate Finance Limited (the "Company" and, together 
         with its subsidiaries, the "Group") notes the recent negative price 
    movements in the Company's shares and provides an update in light of the 
                      current disruption to markets as a result of COVID-19. 
 
 The Company currently has no impairments, is very modestly levered with net 
   debt of just GBP16.5 million at 28 February (equal to 3.9 per cent of NAV), 
    has no repo facilities outstanding and significant available but undrawn 
revolving credit facilities of GBP98.5 million. As such, the Company considers 
 that the recent share price movements have been driven by market conditions 
   and flows as opposed to a significant change in the Company's fundamental 
                                                           value or outlook. 
 
 In the current market, the Company is particularly focussed on its exposure 
       to hospitality, which was 31.4 per cent of invested assets as at 31st 
          December 2019, and expects to see a negative impact in operational 
 performance generally across the hospitality sector. In common with similar 
crises of the past such as the 9/11 terror attacks and during the SARS virus 
     scare, the market will see a particularly difficult hospitality trading 
                                                                     period. 
 
Whilst this negative impact is expected across the hospitality sector in the 
near term, the Company's Investment Manager is confident in the fundamentals 
  of the markets in which the assets are located and the borrower's business 
plans for the assets over the medium to long term. The Company's hospitality 
       exposure has been structured defensively by the Investment Manager by 
         conducting thorough due diligence, working with strong sponsors and 
               implementing robust loan structures combined with significant 
       diversification by jurisdiction and asset type. Each investment has a 
 significant cushion to real estate collateral value protecting the lender's 
                                                                   position. 
 
 The Company has always looked to limit downside risk by focusing on secured 
     debt with quality collateral and contractual protections. The Company's 
 loans have modest senior LTVs which provide substantial headroom and strong 
               loan structures in line with the Company's investment policy. 
 
        As reported in the most recent Quarterly Investment Update, as at 31 
 December 2019 the Company's Weighted average portfolio LTV to Group first GBP 
was 18.4 per cent and the Weighted average portfolio LTV to Group last GBP was 
 63.0 per cent. The corresponding metrics for the hotel portfolio on its own 
  were a weighted average first GBP LTV of 4.4 per cent and a weighted average 
                                                last GBP LTV of 60.7 per cent. 
 
  The Investment Manager is in regular dialogue with all of the borrowers in 
     the Company's portfolio and is working alongside them to navigate these 
                                                currently disrupted markets. 
 
 The Company looks forward to releasing its Annual Results on 25 March 2020. 
 
                                    For further information, please contact: 
 
Apex Fund and Corporate Services (Guernsey) Limited as Company Secretary - 
01481 735879 
 
                                                                 Dave Taylor 
 
                                            Starwood Capital - 020 7016 3655 
 
                                                           Duncan MacPherson 
 
                              Stifel Nicolaus Europe Limited - 020 7710 7600 
 
                                                             Mark Bloomfield 
 
                                                                  Mark Young 
 
                                                                Nick Donovan 
 
                                                            Maarten Freeriks 
 
                                                                      Notes: 
 
      Starwood European Real Estate Finance Limited is an investment company 
   listed on the main market of the London Stock Exchange with an investment 
  objective to provide Shareholders with regular dividends and an attractive 
         total return while limiting downside risk, through the origination, 
     execution, acquisition and servicing of a diversified portfolio of real 
   estate debt investments in the UK and the wider European Union's internal 
                                market. www.starwoodeuropeanfinance.com [1]. 
 
    The Group is the largest London-listed vehicle to provide investors with 
                                  pure play exposure to real estate lending. 
 
The Group's assets are managed by Starwood European Finance Partners 
Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group. 
 
ISIN:          GG00B79WC100 
Category Code: MSCM 
TIDM:          SWEF 
LEI Code:      5493004YMVUQ9Z7JGZ50 
Sequence No.:  53576 
EQS News ID:   1002539 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=820ab51c5dd44debecb8781312a1325e&application_id=1002539&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

March 20, 2020 03:00 ET (07:00 GMT)