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(Alliance News) - Starwood European Real Estate Finance Ltd on Wednesday said its net asset value climbed in the first half of 2020 and the investment company added it has not been exposed to an increase in expected credit losses.
Starwood, which has a portfolio of real estate debt investments in the UK and elsewhere in Europe, posted a net asset value per share at June 30 of 104.08 pence. This represents a 0.8% rise from 103.23p in December and a 1.2% annual climb from 102.82p.
Starwood shares were 0.1% lower at 84.21p each in London on Wednesday afternoon.
Net assets climbed 0.8% to GBP430.1 million from GBP426.6 million at the end of December.
"The NAV of the group remained relatively stable over the first half of the year. Notably, the company has not experienced any defaults or increase in expected credit losses during the period of market dislocation and importantly all scheduled interest payments have been received on time," Starwood said.
The net assets rise was a welcome out-turn for Starwood, which earlier in the year noted that its share price suffered due to its exposure to 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," the investor noted in March, referring to the Covid-19 crisis which has battered the hospitality economy.
Like last year, Starwood paid two quarterly dividends of 1.625p each, targetting an annual payout of 6.5p. However, the investor plans to cut its target annual payout to 5.5p from January 1, due to interest rate cuts.
By Eric Cunha; ericcunha@alliancenews.com
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