SWEF June 2020 Fact Sheet (1100811)

 
 Starwood European Real Estate Finance Ltd (SWEF) 
SWEF June 2020 Fact Sheet 
 
24-Jul-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. 
 
24 July 2020 
 
Starwood European Real Estate Finance Limited: Quarterly Factsheet 
Publication 
 
Starwood European Real Estate Finance Limited (the "Company") announces that 
        the factsheet for the quarter ended on 30 June 2020 is available at: 
 
           www.starwoodeuropeanfinance.com [1] 
 
The Company will be hosting an investor call at 10.00am on Thursday 30 July 
2020. Investors who wish to listen into the call can register their interest 
by contacting Starwood on [e-mail] and dial in details will be 
provided directly to the participants. Investors are also being invited to 
submit questions to the Company in advance of the call through the same 
email address. A transcript of the call will be made available on the 
website. Please note the conference call is not open to the media or their 
third party representatives. 
 
           Extracted text of the commentary is set out below: 
 
           Update Summary 
 
  · All of the loans in the investment portfolio are paying their interest 
  on time 
 
  · There are no required impairments in the investment portfolio 
 
  · The Group expects a favourable environment for future investments in the 
  long term 
 
  · The Group has strong liquidity with net debt of GBP15.1 million at 30 June 
  2020 and undrawn revolving credit facilities of GBP101.9 million to fund 
  existing commitments 
 
  · The average loan to value across the portfolio remained at approximately 
  63 per cent representing a strong equity cushion 
 
  · In light of the lower interest rate environment the Group has 
  re-evaluated its dividend policy to create a stable, sustainable and 
  covered dividend level for the long term 
 
  · The Group will continue to pay a dividend of 6.5 pence per share through 
  2020 and will target to pay 5.5 pence per share thereafter. More 
  information on the dividend can be found below and in the accompanying 
  investor update presentation, which is available on the Company's website 
  at: www.starwoodeuropeanfinance.com 
 
           Investment Portfolio at 30 June 2020 
 
  As at 30 June 2020, the Group had 18 investments and commitments of GBP514.7 
           million as follows: 
 
                        Sterling equivalent Sterling equivalent 
                                balance (1) unfunded commitment 
                                                            (1) 
          Hospitals, UK              GBP25.0m                   - 
Hotel & Residential, UK              GBP49.9m                   - 
       Office, Scotland               GBP4.6m               GBP0.4m 
         Office, London              GBP13.0m               GBP7.6m 
    Residential, London              GBP37.0m               GBP2.7m 
          Hotel, Oxford              GBP16.7m               GBP6.3m 
        Hotel, Scotland              GBP25.9m              GBP15.5m 
   Hotel, North Berwick              GBP10.5m               GBP4.5m 
   Logistics Portfolio,              GBP12.0m                   - 
                  UK(2) 
   Total Sterling Loans             GBP194.6m              GBP37.0m 
Three Shopping Centres,              GBP34.1m               GBP5.9m 
                  Spain 
 Shopping Centre, Spain              GBP15.6m                   - 
 Hotel, Dublin, Ireland              GBP55.0m                   - 
           Hotel, Spain              GBP40.1m               GBP9.5m 
 Office & Hotel, Madrid              GBP17.0m               GBP0.9m 
Mixed Portfolio, Europe              GBP31.3m                   - 
      Mixed Use, Dublin               GBP2.0m              GBP11.5m 
Office Portfolio, Spain              GBP19.6m               GBP2.4m 
      Office Portfolio,              GBP32.2m                   - 
                 Dublin 
   Logistics Portfolio,               GBP6.0m                   - 
             Germany(2) 
       Total Euro Loans             GBP252.9m              GBP30.2m 
        Total Portfolio             GBP447.5m              GBP67.2m 
 
1) Euro balances translated to sterling at period end exchange rate. 
 
2) Logistics Portfolio, UK and Logistics Portfolio, Germany is one single 
loan agreement with sterling and Euro tranches. 
 
           Second Quarter Portfolio Activity 
 
           The following portfolio activity occurred in the quarter: 
 
   New Loan, Logistics, UK and Germany: On 17 June 2020, the Group closed an 
    investment in the funding of a &euro71.9 million, 36 month floating rate 
 senior loan secured by a portfolio of industrial/logistics assets in the UK 
and Germany. The investment has been made alongside Starwood Property Trust, 
     Inc (through a wholly owned subsidiary) with the Group participating in 
&euro20 million (27.8 per cent) of the senior loan amount. The Group expects 
  the transaction to generate attractive risk-adjusted returns, in line with 
           its stated investment strategy. 
 
  Loan Repayments & Amortisation: the following loan repayments and material 
           amortisation was received during the quarter:- 
 
· Credit Linked notes: a full and final repayment of the GBP21.8 million 
loan; 
 
· Mixed Portfolio, Europe: &euro4.3 million of unscheduled amortisation 
following asset sales; and 
 
· Residential, London: GBP3.5 million of amortisation following the sale of 
residential units. 
 
    Following the activity noted above, in addition to drawdowns on existing 
  commitments of GBP6.9 million, the Group had approximately GBP447.5 million of 
   total loans advanced across 18 investments with GBP67.2 million of unfunded 
     commitments. The average loan to value across the portfolio remained at 
           approximately 63 per cent representing a strong equity cushion. 
 
           Liquidity 
 
  The Group is very modestly levered with net debt of GBP15.1 million (3.5 per 
        cent of NAV) at 30 June 2020, has no repo facilities outstanding and 
 significant liquidity available with undrawn revolving credit facilities of 
            GBP101.9 million to fund existing commitments as summarised below. 
 
                                    As at 30 June 2020 GBP million 
                        Drawn on Group debt facilities    (24.1) 
                                          Cash at hand       9.0 
                                              Net Debt    (15.1) 
            Undrawn Debt Facilities available to Group     101.9 
                      Undrawn Commitments to Borrowers    (67.2) 
       Available Capacity (cash + undrawn facilities -      43.7 
                             commitments to borrowers) 
 
  As described in our last factsheet, the way in which the Group's borrowing 
facilities are structured means that it does not need to fund mark to market 
    margin calls. The Group does have the obligation to post cash collateral 
     under its hedging facilities. However, cash would not need to be posted 
   until the hedges were more than GBP20 million out of the money. The mark to 
      market of the hedges at 30 June 2020 was just GBP4.5 million (out of the 
    money) and with the robust hedging structure employed by the Group, cash 
           collateral has never been required to be posted since inception. 
 
           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. 
 
           Portfolio Overview in Light of Covid-19 
 
All loan interest up to the date of this factsheet has been paid in full and 
  on time and future interest payments are expected to be paid in full based 
     on the forecast gradual continued easing of lockdowns across the UK and 
           Europe. 
 
     On 19 June 2020 the Group published an update on the performance of the 

       loans during Covid-19. The key points are summarised below by sector. 
 
           Hospitality (34.7 per cent of Investment Portfolio) 
 
· The hospitality industry has been most affected by the Covid-19 
pandemic. 
 
· The largest hotel exposure (Hotel, Dublin) has granted a licence to the 
Health Service Executive which has significantly de-risked its hospitality 
exposure. 
 
· Four hotels, which equates to 40 per cent of hotels in the portfolio had 
to close during the pandemic. 
 
· All hotels are now open and operational, aside from the Spanish hotel 
which remains under construction and is due to achieve practical 
completion in Q3 2020. 
 
· Every hospitality loan within the Group's loan book continued to pay 
interest on time. 
 
· All hospitality loans have adequate resources to meet their cash needs 
for the medium term. 
 
           Retail (12.7 per cent of Investment Portfolio) 
 
· The retail sector has also been hard hit by the Covid-19 pandemic. This 
is on the back of a number of difficult trading years for the retail 
"bricks and mortar" sector as a whole. 
 
· Across Europe almost all non-essential retail assets were shut for a 
number of months. These retail assets are now beginning to open once again 
and start to become operational. 
 
· In some parts of the retail market we have witnessed footfall return to 
as much as 70 per cent of its pre-Covid level. However, we do expect to 
see more insolvencies across the sector as 2020 continues. 
 
· The Group's retail investments are either a small part of a large 
portfolio of mixed assets or benefit from robust loan structures including 
interest / cash reserves which will enable the borrower to weather the 
storm over the medium term. 
 
           Construction (29 per cent of Investment Portfolio) 
 
· Construction sites have continued to make progress during the Covid-19 
pandemic. 
 
· In the UK construction sites were able to remain open at all times. In 
Spain and Ireland, construction sites were closed for 14 and 52 days 
respectively. 
 
· We expect to see more moderate delays to final completion in our 
construction deals as a result of Covid-19. 
 
· However, every deal remains fully funded by debt and equity with ample 
contingencies and cost overrun protections to enable borrowers to mitigate 
any Covid-19 impacts. 
 
      Office, Industrial (including logistics) & Residential (47 per cent of 
           Investment Portfolio) 
 
· These three sectors have been the most resilient sectors during the 
Covid-19 pandemic. 
 
· Underlying office rent collections for loans with greater than 75 per 
cent exposure to office remain strong at 96 per cent year to date. 
 
· Residential sales have continued to progress well during the Covid-19 
related disruption with a number of units being sold since 1 March 2020 at 
premiums to underwritten values. The LTV for this segment is 59.3 per 
cent. 
 
· Underlying industrial loan rent collections remain strong at 100 per 
cent year to date. 
 
           Expected Credit Losses (Impairment) 
 
      As described in our last factsheet, all loans within the portfolio are 
           classified and measured at amortised cost less impairment. 
 
Under IFRS 9 a three stage approach for recognition of impairment was 
introduced, based on whether there has been a significant deterioration in 
the credit risk of a financial asset since initial recognition. These three 
stages then determine the amount of impairment provision recognised. 
 
At Initial Recognition Recognise a loss allowance equal to 12 
                       months expected credit losses resulting 
                       from default events that are possible 
                       within 12 months. 
After initial recognition: 
Stage 1                Credit risk has not increased 
                       significantly since initial recognition. 
 
                       Recognise 12 months expected credit 
                       losses. 
Stage 2                Credit risk has increased significantly 
                       since initial recognition. 
 
                       Recognise lifetime expected losses. 
 
                       Interest revenue recognised on a gross 
                       basis. 
Stage 3                Credit impaired financial asset. 
 
                       Recognise lifetime expected losses. 
 
                       Interest revenue recognised on a net 
                       basis (i.e. losses are "above the line" 
                       and impact P&L and NAV). 
 
    Please refer to the March factsheet for details on the factors the Group 
           considers when classifying loans between Stages 1 to 3. 
 
At the end of 2019 all loans were classified as Stage 1. The position as at 
the end of June will be finalised once quarterly borrower reporting is 
received during the course of July. Some loans may move to Stage 2 as a 
result but we do not expect any loan to move to Stage 3. It is important to 
note that classification to Stages 2 will not automatically mean that an 
expected credit loss will be recognised. This is because the formula for 
calculating the expected credit loss is: 
 
"Present Value of loan" x "probability of default" x "value of expected 
loss". 
 
The Investment Adviser has closely analysed all available information on the 
     value of the Group's assets as at 30 June 2020 and considers that it is 
     still very likely that the third part of the formula "value of expected 
   loss" will remain as nil for all loans, even if they move from Stage 1 to 
 Stage 2, due to the significant headroom the Group has with an average loan 
 to value (based on the last third party valuations) of approximately 63 per 
           cent. 
 
   The Group is unable to record the loans at fair value as the loans do not 
 qualify for this accounting treatment. However, we have calculated the fair 
       value of the loans based on a discounted cash flow basis at different 
   discount rates with the assumption all loans run to full maturity and the 
           results are shown below. 
 
Discount Rate              Fair Value % of book value 
         4.7%                GBP473.3 m          105.4% 
         5.2%                GBP467.0 m          104.0% 
         5.7%                GBP460.8 m          102.7% 
         6.2%                GBP454.8 m          101.3% 
         6.7% GBP448.9 m (= book value)          100.0% 
         7.2%                GBP443.1 m           98.7% 
         7.7%                GBP437.4 m           97.5% 
         8.2%                GBP431.9 m           96.2% 
         8.7%                GBP426.5 m           95.0% 
 
The effective interest rate ("EIR") - i.e. the discount rate at which future 
cash flows equal the amortised cost, is 6.7 per cent. We have sensitised the 
  cash flows at intervals of 0.5 per cent up to +/- 2.0 per cent of the EIR. 
    The table above shows that even if the Group did mark the assets to fair 
  value, the movement would not be significant. Further, the Group considers 
 the EIR of 6.7 per cent to be conservative as many of these loans were part 
 of a business plan which involved transformation and many of these business 
   plans are advanced in the execution and therefore significantly de-risked 
           from the original underwriting and pricing. 
 
           Share Price Performance 
 
 At the end of the quarter, the share price traded at a significant discount 
   to NAV of 17 per cent which has improved from a 26.4 per cent discount at 
 the end of the first quarter. The Board and the Investment Adviser consider 
 the shares to represent very attractive value at this level and individuals 
  at the Investment Adviser have made personal purchases during the quarter, 
           as disclosed by the Group. 
 
The Company received authority at the recent AGM to purchase up to 14.99 per 
 cent of the Ordinary Shares in issue on 8 June 2020. The directors continue 
          to closely and regularly monitor the discount to NAV and will give 
   consideration to repurchasing Shares under this authority if appropriate. 
 Any share buyback would be subject to available cash not otherwise required 
    for commitments to borrowers, working capital purposes or the payment of 
           dividends. 
 
           Market Commentary and Outlook 
 
  Markets have continued to be reasonably volatile but have stabilised since 
our last factsheet in April. The VIX is down from 38.2 to 27.2 having peaked 
     at 82.7 in March 2020. The iShares UK Property ETF is almost completely 
   unchanged at 495.15p on 17 July versus 495.85p three months earlier. This 
 more stable picture is the result of an effective campaign of unprecedented 
     monetary and fiscal stimulus. Overall one of the largest drivers of the 
  market will be the balance of these stimulus measures versus the long-term 
           economic effects of the disruption caused by Covid-19. 
 
      We have also seen more clarity in real estate valuation. In April real 
      estate valuers had been caveating their work with material uncertainty 
  clauses however the RICS Material Valuation Uncertainty Leaders Forum have 
  now recommended that central London offices, as well as all industrial and 
           logistics assets, no longer need a material uncertainty clause in 
           valuations. 
 
   The stimulus has had a great effect on the outlook for interest rates. At 
  the end of June the FT reported that the UK 30 year gilt was trading below 
  the Japanese 30 year bond. Since the Company launched in December 2012 the 
     30-year rate has decreased by 2.5 per cent in total. Shorter rates have 
  plummeted since Covid-19 with GBP Libor declining by 0.69 per cent to 0.08 
per cent over the last six months. The curve is also extremely flat with the 
  UK 5-year swap rate also at only 0.08 per cent. Overall the lower interest 
      rate environment is likely to be supportive of property values with an 
           increasing lack of yield in the fixed income world. 
 

 Investment grade credit has moved tighter since last quarter. Specifically, 
  in the real estate space, Vonovia, which is one of the largest real estate 
   bond issuers now has lower yields than it did at the start of the year on 
some of its medium and longer dated maturities. The evolution of pricing can 
  be seen with the new Vonovia 10 year bond issued in July with a 1 per cent 
           coupon versus 2.25 per cent in April this year. 
 
      Covid-19 has accelerated some of the long-term trends from physical to 
online retail. The UK is particularly hard hit by this and we have seen more 
  bricks-and-mortar retailers have gone into administration during the first 
    half of this year than in the whole of 2019, which was described by some 
   observers as 'the worst year for 25 years' for the industry. According to 
     the Centre for Retail Research 40 companies have failed affecting 2,630 
   stores in the first half of the year versus 43 companies and 2,051 stores 
           for 2019 as a whole. 
 
        Large logistics and last mile logistics continue to benefit from the 
   long-term trend to online retail and the continued growth in requirements 
 for the logistics infrastructure to service the model. This continued trend 
 in favour of logistics is evident in both increased take-up which was up 36 
    per cent year on year in the UK and also in the transaction market. Last 
quarter we reported that expectations for transaction volumes generally were 
heavily down given market uncertainties and practicalities of doing business 
          in lockdown. However in the second quarter the volume of logistics 
  transactions has held up much better than other asset classes. While still 
down on 2019 logistics investment volumes reached GBP1.12 billion for H1 2020, 
     a fall of 26 per cent when compared with H1 2019. Volumes for logistics 
        investment fell by just 24 per cent from Q1 to Q2, compared with the 
    commercial market as a whole where volume fell by 82 per cent during the 
     same time period. Values have also held up well while initially Savills 
moved prime yields out 25bps to 4.50 per cent for prime single let logistics 
       units and 4.25 per cent for multi-let industrial estates they now see 
     positive sentiment and competitive tension putting downward pressure on 
           these yields. 
 
     In residential there are many themes driving the market, the stamp duty 
 holiday and very low interest rates are helping buyers and the imbalance of 
  pent up demand from buyers having put moves on hold as the market was shut 
looking to a limited supply of available property so far are outweighing the 
uncertainties of full implications of the macro-economic impacts of Covid-19 
and there is limited downward pressure and in some parts of the market there 
  is a significant upwards pressure. We are also seeing the continuing theme 
of successful creation of larger institutional private rented sector product 
    in many countries around Europe and expect to see this continue to grow. 
 
  There is much debate about the future of office space. In particular there 
    are short to medium term practicalities about reopening the office space 
    which will still take some months to bed down. Some workers have thrived 
working from home in lockdown but it is also clear that people miss and need 
other essential aspects of office life around close teamwork and spontaneous 
  communication, training, culture building, ideas generation and the social 
aspects of the office environment. There has been limited activity so far to 
see the impacts on the long-term outlook. Savills City Office research shows 
 City office rents holding up but with some pressure on incentives and their 
    investment market prime yields for office are flat. As volumes have been 
    significantly lower during the second quarter for commercial real estate 
transactions some market participants are expecting a similar pent up demand 
   as we have seen in the residential market from both buyers and sellers to 
   transact and expect many processes to be launched after the summer for Q4 
           closing. 
 
  The real estate debt market reflects the underlying real estate market and 
there has been relatively low volumes of financing concluded. We expect that 
    as with the underlying real estate market the early transactions will be 
       seen in the logistics, residential and office sectors. There is still 
 dislocation in the market, however we are seeing an easing and even in some 
    markets such as the German core office space financing terms are back to 
 pre-Covid-19 levels. Pricing tends to be quite opaque in the market however 
    currently we generally estimate that most types of income producing real 
estate are between 25bps and 50bps wider than pre-Covid-19. Pricing for more 
   complex credits can be significantly wider. We have observed this premium 
   has been changing quickly and normalising over recent weeks. Larger deals 
  requiring syndication have been particularly difficult to evaluate given a 
  lack of clarity in the CMBS and syndication market but we are hearing that 
 banks with pre-Covid-19 loan inventory to sell are now making good progress 
  with some syndications which will help create new underwriting capacity in 
       the market. We still see a fair way to go to get back to pre-Covid-19 
       conditions with less market participants and capacity but we are also 
    beginning to hear market participants worrying about missing targets and 
   opportunities and so we are expecting the market to continue to stabilise 
           into a new equilibrium in Q4. 
 
Share Price / NAV at 30 June 2020 
 
Share price (p) 86.40 
NAV (p)         104.08 
Discount        17.0% 
Dividend yield  7.5% 
Market cap      GBP357 m 
 
Key Portfolio Statistics at 30 June 2020 
 
Number of investments                                         18 
Percentage of currently invested portfolio in floating     79.5% 
rate loans 
Invested Loan Portfolio unlevered annualised total          6.7% 
return (1) 
Portfolio levered annualised total return (2)               7.0% 
Weighted average portfolio LTV - to Group first GBP (3)      18.4% 
Weighted average portfolio LTV - to Group last GBP (3)       62.9% 
Average loan term (stated maturity at inception)       4.4 years 
Average remaining loan term                            2.8 years 
Net Asset Value                                          GBP430.1m 
Amount drawn under Revolving Credit Facilities          (GBP24.1m) 
(excluding accrued interest) 
Loans advanced                                           GBP448.9m 
Cash                                                       GBP9.0m 
Other net assets/ (liabilities) (including hedges)       (GBP3.8m) 
Origination Fees - current quarter                         GBP0.1m 
Origination Fees - last 12 months                          GBP1.9m 
Management Fees - current quarter                          GBP0.8m 
Management Fees - last 12 months                           GBP3.2m 
 
          (1) The unlevered annualised total return is calculated on amounts 
       outstanding at the reporting date, excluding undrawn commitments, and 
  assuming all drawn loans are outstanding for the full contractual term. 14 
 of the loans are floating rate (partially or in whole and some with floors) 
  and returns are based on an assumed profile for future interbank rates but 
 the actual rate received may be higher or lower. Calculated only on amounts 
 funded at the reporting date and excluding committed amounts (but including 
       commitment fees) and excluding cash un-invested. The calculation also 
           excludes the origination fee payable to the Investment Manager. 
 
   (2)The levered annualised total return is calculated as per the unlevered 
   return but takes into account the amount of net leverage in the Group and 
           the cost of that leverage at current LIBOR/EURIBOR. 
 
(3) LTV to Group last GBP means the percentage which the total loan drawn less 
           any amortisation received to date (when aggregated with any other 
     indebtedness ranking alongside and/or senior to it) bears to the market 
        value determined by the last formal lender valuation received by the 
reporting date. LTV to first Group GBP means the starting point of the loan to 
 value range of the loans drawn (when aggregated with any other indebtedness 
ranking senior to it). For development projects the calculation includes the 
 total facility available and is calculated against the assumed market value 
           on completion of the relevant project. 
 
      Remaining years to     Value of loans       % of invested 
   contractual maturity*               (GBPm)           portfolio 
            0 to 1 years               20.2                4.5% 
            1 to 2 years              133.2               29.8% 
            2 to 3 years              147.2               32.9% 
            3 to 5 years               89.7               20.0% 
           5 to 10 years               57.2               12.8% 
 
  *excludes any permitted extensions. Note that borrowers may elect to repay 
           loans before contractual maturity. 
 
              Country % of invested assets 
                Spain                28.2% 
  UK - Central London                22.3% 
  Republic of Ireland                19.9% 
UK - Regional England                14.4% 
        UK - Scotland                 6.8% 
          Netherlands                 4.1% 
              Germany                 3.2% 
              Finland                 1.1% 
 
              Sector % of invested assets 
         Hospitality                34.7% 
              Office                22.0% 
Residential for sale                18.2% 
              Retail                12.7% 
          Healthcare                 5.6% 
           Logistics                 4.0% 
    Light Industrial                 1.7% 
Residential for rent                 0.9% 
               Other                 0.2% 
 
  Loan type % of invested assets 

Whole loans                61.2% 
  Mezzanine                38.8% 
 
Currency % of invested assets* 
Sterling                 43.5% 
    Euro                 56.5% 
 
*the currency split refers to the underlying loan currency, however the 
capital on all non-sterling exposure is hedged back to sterling. 
 
For further information, please contact: 
 
Apex Fund and Corporate Services (Guernsey) 
Limited as Company Secretary 
 
Vania Santos 
 
                                                   01481 735878 
 
Starwood Capital 
 
Duncan MacPherson                                  020 7016 3655 
 
Jefferies International Limited 
 
Stuart Klein                                       020 7029 8000 
 
Neil Winward 
 
Gaudi Le Roux 
 
Notes: 
 
      Starwood European Real Estate Finance Limited is an investment company 
        listed on the premium segment of 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 Company 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.:  77711 
EQS News ID:   1100811 
 
End of Announcement EQS News Service 
 
 
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July 24, 2020 02:00 ET (06:00 GMT)