Starwood European Real Estate Finance Ltd on Thursday said its net asset value was slightly up in the first half, showing the benefits of its ‘exceptionally attractive’ portfolio.

The Guernsey-based investor, which manages and realises high quality senior and mezzanine real estate debt in the UK and Europe, said its NAV at June 30 was 103.75 pence per share, virtually unchanged from 103.42p at the same time in 2022.

Shares in Starwood were down 0.2% at 87.87p in London on Friday.

Starwood’s NAV levered annualised total return for the first half of 2023 was positive 8.1%, up from positive 7.2% the year before.

Chair John Whittle said Starwood’s ‘consistent’ performance, despite ongoing headwinds like higher interest rates, the rising cost of living and the war in Ukraine, demonstrates ‘its unique portfolio resilience through the strength and consistency of its results.’

He continued: ‘This stability demonstrates the positive fundamentals of the group‘s portfolio as an exceptionally attractive risk-adjusted source of alternative income tested, once again, in the harshest of market environments.’

Starwood’s pretax profit for the half year meanwhile increased 7.1% to £13.4 million from £12.5 million. Income increased 15% to £18.2 million from £15.8 million.

Starwood did not declare a dividend for the half year, unchanged from 2022, but said the portfolio continues to support annual dividend payments of 5.5p per share.

Looking ahead, Starwood now intends to re-distribute cash among shareholders as soon as practicable, but to retain enough working capital to fund loan commitments and for ongoing operations.

Whittle reassured investors that Starwood ‘will continue to exercise an abundance of caution in these challenging times.’

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