(Alliance News) - Starwood European Real Estate Finance Ltd on Friday said "significant progress" was made in 2024 as it continues the orderly realisation of its portfolio.
Starwood European is a Guernsey-based investor that manages high quality senior and mezzanine real estate debt in the UK and Europe.
As part of its fourth quarter portfolio update, the firm said it had returned GBP210.0 million to shareholders in 2024 through compulsory redemptions, in line with its orderly realisation strategy adopted on January 27, 2023.
This decision to wind down the vehicle follows the passing of a resolution at the firm's extraordinary general meeting on January 27, 2023, in which shareholders elected to change its investment policy to return capital to holders.
The firm's net asset value at December 31 was 100.49p, down from 105.61p at September 30.
The firm noted that no redemptions were made in the final quarter but said underlying loan investment repayments are forecast for 2025 which will allow for a further return of cash to shareholders.
Starwood added that 6 of its investments continue to perform within its expectations, but noted an impairment equating to EUR12.9 million for investment Office Portfolio, Ireland.
The firm reduced its fourth quarter dividend by 27% on-year to 1.375p per share from 1.875p.
Shares in Starwood European closed flat at 90.00 pence despite opening higher on Friday in London.
It added that the weighted average remaining loan term on the portfolio is 1.2 years.
Chair John Whittle said: "We are proud of the significant progress that has been made in our orderly realisation strategy over the course of 2024, with the company having returned GBP210 million to shareholders, equating to 50.5 per cent of the company’s NAV prior to the adoption of the orderly realisation strategy."
By Christopher Ward, Alliance News reporter
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