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Starwood European Real Estate Finance Ltd (GB:SWEF)
LSE:SWEF
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Starwood European Real Estate ate Finance (SWEF) AI Stock Analysis

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GB:SWEF

Starwood European Real Estate ate Finance

(LSE:SWEF)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
103.00p
▲(13.19% Upside)
The score is driven primarily by financial resilience (zero debt and strong cash generation) despite weakening revenue/profitability trends. Technicals are supportive with price above key moving averages, while valuation is mixed due to a high dividend yield but a negative P/E. Recent capital returns and portfolio realization progress add a positive catalyst.
Positive Factors
Financial Stability
The company's robust equity position and absence of debt enhance its low-risk profile, ensuring long-term financial stability and operational resilience.
Cash Generation
Strong free cash flow generation indicates efficient operations and the ability to sustain dividend payments, supporting long-term shareholder value.
Capital Returns
Significant capital returns demonstrate effective asset management and commitment to shareholder value, reinforcing investor confidence in the company's strategy.
Negative Factors
Revenue Growth Fluctuations
Inconsistent revenue growth can hinder long-term planning and investment, potentially impacting the company's ability to capitalize on market opportunities.
Asset Reduction
A reduction in total assets could constrain the company's ability to expand its portfolio, limiting future revenue and profit growth opportunities.
Investment Strategy Volatility
Volatility in investment strategies may lead to unpredictable cash flow patterns, affecting the company's ability to maintain consistent returns.

Starwood European Real Estate ate Finance (SWEF) vs. iShares MSCI United Kingdom ETF (EWC)

Starwood European Real Estate ate Finance Business Overview & Revenue Model

Company DescriptionStarwood European Real Estate Finance (SWEF) is a company that provides investors with opportunities to gain exposure to European real estate debt markets. It focuses on originating, executing, and managing a diverse portfolio of real estate debt investments across various sectors including office, retail, residential, and industrial properties. The company aims to deliver attractive risk-adjusted returns to its shareholders through strategic investments in senior and mezzanine loans secured by real estate assets in Europe.
How the Company Makes MoneySWEF makes money primarily through the interest income generated from its portfolio of real estate loans. The company's key revenue streams include interest payments on senior and mezzanine loans, which are secured by real estate assets across Europe. Additionally, SWEF may earn fees related to loan origination and management. Significant partnerships with real estate developers, financial institutions, and property owners contribute to its ability to source and execute profitable lending opportunities. The company's earnings are influenced by factors such as interest rates, property market conditions, and the creditworthiness of its borrowers.

Starwood European Real Estate ate Finance Financial Statement Overview

Summary
Strong balance sheet (zero debt) and robust cash generation support resilience, but the income statement has weakened with a sharp revenue decline in 2024 and a clear step-down in profitability versus prior years.
Income Statement
62
Positive
Profitability remains strong, with net profit margin still healthy in 2024 (~38%), but earnings power has clearly cooled versus prior years (net margin ~80–95% during 2019–2023). Revenue has been volatile and recently weak, declining ~37% in 2024 after a small decline in 2023, which signals pressure on the top line. Overall: strong profit conversion, but worsening growth and a step-down in profitability reduce the score.
Balance Sheet
86
Very Positive
The balance sheet is conservatively positioned with zero debt reported in 2023–2024 and very low leverage in earlier years (debt-to-equity generally below ~0.08). Equity remains substantial relative to assets, supporting financial resilience. The main watch-out is that returns on equity have moderated (about ~3.9% in 2024 vs ~7–8% in 2022–2023), indicating less efficient use of capital recently despite the strong balance sheet.
Cash Flow
74
Positive
Cash generation is a key strength: operating cash flow and free cash flow were very large in 2023–2024 (2024 operating/free cash flow ~120m vs net income ~7.6m), indicating strong cash realization. However, free cash flow fell ~38% in 2024 after an unusually strong 2023 (high volatility across years), which raises some sustainability questions. Overall cash flow quality looks good, but consistency is mixed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.55M19.86M31.53M32.20M21.51M31.64M
Gross Profit29.55M19.86M31.53M32.20M21.51M31.64M
EBITDA0.000.0052.40M0.000.000.00
Net Income27.90M7.62M25.25M29.36M19.29M29.91M
Balance Sheet
Total Assets459.31M196.23M328.96M436.77M430.96M446.53M
Cash, Cash Equivalents and Short-Term Investments36.79M45.69M63.84M3.58M2.99M2.94M
Total Debt29.72M0.000.0018.89M8.13M18.63M
Total Liabilities32.76M1.35M1.63M18.89M9.40M18.63M
Stockholders Equity426.56M194.88M327.33M416.15M421.56M426.70M
Cash Flow
Free Cash Flow35.59M120.11M194.96M20.45M37.66M7.16M
Operating Cash Flow35.59M120.11M194.96M20.45M37.66M7.16M
Investing Cash Flow535.002.66M1.22M0.000.000.00
Financing Cash Flow-25.92M-140.04M-134.10M-25.96M-36.43M-41.10M

Starwood European Real Estate ate Finance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price91.00
Price Trends
50DMA
85.22
Positive
100DMA
82.33
Positive
200DMA
78.20
Positive
Market Momentum
MACD
0.81
Positive
RSI
53.60
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SWEF, the sentiment is Positive. The current price of 91 is above the 20-day moving average (MA) of 88.50, above the 50-day MA of 85.22, and above the 200-day MA of 78.20, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SWEF.

Starwood European Real Estate ate Finance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£55.84M13.1411.39%9.90%37.20%
73
Outperform
£20.65M-6.55-1.48%5.72%-45.39%-115.23%
73
Outperform
£492.97M15.175.73%
71
Outperform
£321.00M
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
£272.25M-8.49-6.66%8.18%-9.72%-25.25%
44
Neutral
$29.69M-0.88-47.36%3.45%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SWEF
Starwood European Real Estate ate Finance
89.00
16.96
23.54%
GB:VLE
Volvere
2,550.00
850.00
50.00%
GB:GSF
Gore Street Energy Storage
53.90
11.13
26.02%
GB:FSG
Foresight Group Holdings Ltd.
432.00
84.67
24.38%
GB:CGL
Castelnau Group Limited
96.25
6.75
7.54%
GB:RNEW
Ecofin U.S. Renewables Infrastructure Trust Plc
0.22
-0.09
-28.57%

Starwood European Real Estate ate Finance Corporate Events

Business Operations and StrategyShareholder Meetings
Starwood European Real Estate Finance Corrects EGM Vote Count and Extends Financial Year End Ahead of Planned Liquidation
Negative
Jan 8, 2026

Starwood European Real Estate Finance Limited has corrected the reported number of votes cast in favour of a special resolution at its 31 December 2025 extraordinary general meeting, raising the total ‘for’ votes to 8,483,080 from the previously stated 5,292,922, although this administrative adjustment by the registrar does not affect the outcome. Shareholders approved the adoption of new articles, enabling the board to extend the company’s financial year end from 31 December 2025 to 28 February 2026, a move intended to lower audit and reporting costs ahead of the company’s expected early-2026 liquidation and thereby enhance returns for investors, while the company continues to publish its monthly net asset value and factsheets on its usual schedule.

The most recent analyst rating on (GB:SWEF) stock is a Buy with a £103.00 price target. To see the full list of analyst forecasts on Starwood European Real Estate ate Finance stock, see the GB:SWEF Stock Forecast page.

Business Operations and StrategyShareholder Meetings
Starwood European Real Estate Finance Extends Year-End Ahead of Planned 2026 Liquidation
Neutral
Dec 31, 2025

Starwood European Real Estate Finance Limited has secured shareholder approval at its 31 December 2025 Extraordinary General Meeting to adopt new articles of association, enabling the board to extend the company’s financial year end from 31 December 2025 to 28 February 2026. The change is intended to avoid the cost of preparing separate audited accounts for the 2025 financial year ahead of a forecast liquidation in early 2026, with the board arguing that the move should enhance returns for shareholders if the wind-up proceeds on schedule, while leaving the cost position broadly neutral if liquidation is delayed beyond the new year end; the company will continue to publish its monthly NAV and factsheets in line with existing practice.

The most recent analyst rating on (GB:SWEF) stock is a Buy with a £103.00 price target. To see the full list of analyst forecasts on Starwood European Real Estate ate Finance stock, see the GB:SWEF Stock Forecast page.

Business Operations and StrategyDelistings and Listing Changes
Starwood European Real Estate Finance Completes Tenth Capital Distribution and Share Redemption
Neutral
Dec 19, 2025

Starwood European Real Estate Finance Limited has completed the tenth capital distribution in its wind-down process, compulsorily redeeming 31,010,959 shares on a pro rata basis at £0.9674 per share as of 18 December 2025. After the redemption and related rounding adjustments, the company now has 23,204,738 shares in issue, which also represents the total number of voting rights, and has activated a new ISIN (GG00BW9KGG29) for the remaining shares, with settlement of redemption proceeds and issuance of replacement share certificates expected by 24 December 2025, marking another significant step in returning capital to shareholders as the portfolio is realised.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
SWEF Sells Dublin Office Loan to Blackstone Vehicle as Wind-Down Advances
Neutral
Dec 19, 2025

Starwood European Real Estate Finance Limited has announced the restructuring and agreed sale of its loan secured on a Central Dublin office portfolio to an entity indirectly owned by Blackstone Group Inc. for €4.8 million, matching the written-down value previously disclosed. The transaction, partly funded by related party SPT Real Estate Capital, LLC, is expected to complete on 23 December 2025 and follows non-binding sale discussions and an independent review of the underlying assets. The Dublin office loan represented about 8% of SWEF’s net asset value (NAV) at 30 November 2025, rising to roughly 18.7% on a pro forma basis after a further £30 million capital redemption, and its disposal supports the company’s ongoing orderly wind-down, under which it has already returned £346 million – 83.6% of its January 2023 NAV – to shareholders via compulsory redemptions. The board, advised by Jefferies International, considers the related party deal fair and reasonable for security holders, while Blackstone remains the ultimate owner of the Dublin properties and the loan.

Business Operations and Strategy
Starwood European Real Estate Finance Announces £30 Million Capital Distribution
Neutral
Dec 11, 2025

Starwood European Real Estate Finance Limited has announced its tenth capital distribution of £30 million, funded by the repayment of a UK loan investment. This distribution will be executed through a compulsory partial redemption of shares, affecting 57% of the company’s issued share capital. The move is part of the company’s ongoing managed wind-down, leaving only two loan investments in its portfolio. This distribution reflects the company’s commitment to returning capital to shareholders and signifies a step forward in its strategic asset realization plan.

Business Operations and StrategyShareholder Meetings
Starwood European Real Estate Finance Proposes Financial Year Extension
Neutral
Dec 11, 2025

Starwood European Real Estate Finance Limited has announced the publication of a circular to shareholders regarding an Extraordinary General Meeting. The meeting will address the proposed extension of the company’s financial year end from December 31, 2025, to February 28, 2026, as part of its orderly winding-up process. This extension requires amendments to the company’s articles of incorporation and approval from the Guernsey Financial Services Commission. Shareholders are encouraged to vote in favor of the proposal, which will allow the board to implement the year-end extension and potentially avoid the need for a second interim report.

Delistings and Listing ChangesPrivate Placements and Financing
Starwood European Real Estate Finance Announces Ninth Capital Distribution
Neutral
Oct 28, 2025

Starwood European Real Estate Finance Limited announced the compulsory redemption of 25,938,989 shares at £0.9638 per share as part of its ninth capital distribution. Following this redemption, the company now has 54,215,697 shares in issue, with the same number of voting rights. Payments for the redeemed shares are expected to be completed by 29 October 2025, and a new ISIN for the remaining shares has been enabled for transactions.

Business Operations and StrategyDelistings and Listing Changes
Starwood European Real Estate Finance Announces £25 Million Capital Distribution
Neutral
Oct 24, 2025

Starwood European Real Estate Finance Limited announced a correction to the redemption price for its ninth capital distribution, adjusting it to £0.9638 per share. The company is distributing £25 million to shareholders, funded by the repayment of a UK hospital loan investment. This move will result in the redemption of approximately 32.36% of the company’s issued share capital, with shares being canceled and a new ISIN number issued for remaining shares. This distribution reflects the company’s strategy to manage its portfolio, which now includes three loan investments, two of which are low-risk.

Business Operations and StrategyPrivate Placements and Financing
Starwood European Real Estate Finance Announces £25 Million Capital Distribution
Positive
Oct 23, 2025

Starwood European Real Estate Finance Limited announced a ninth capital distribution of £25 million, funded by the repayment of a UK hospital loan investment. This distribution will be executed through a compulsory partial redemption of shares, impacting approximately 32.36% of the company’s issued share capital. The move reflects the company’s strategy to manage its investment portfolio, which now includes three remaining loan investments, two of which are considered low risk, potentially strengthening its market position and offering reassurance to stakeholders.

Dividends
Starwood European Real Estate Finance Announces Q3 Dividend
Neutral
Oct 23, 2025

Starwood European Real Estate Finance Limited has declared a quarterly dividend of 1.375 pence per share for the third quarter of 2025, aligning with its target. This dividend is part of a planned annual payout of 5.5 pence per share, which translates to an annualised yield of 6.2% based on the recent share price. This announcement may impact the company’s financial performance and investor returns, reflecting its commitment to providing consistent shareholder value.

Business Operations and StrategyDividendsFinancial Disclosures
Starwood European Real Estate Finance Advances Portfolio Realization
Positive
Oct 23, 2025

Starwood European Real Estate Finance Limited reported significant progress in its portfolio realization strategy for the quarter ending September 30, 2025. The company successfully repaid two loan investments totaling £29.1 million during the quarter and an additional £25.0 million post-quarter. A total of £65.0 million was returned to shareholders, with an additional £25.0 million announced for October. The portfolio’s risk profile remains stable, with most investments classified at the lowest risk level. The company also declared a dividend of 1.375 pence per share for the third quarter, aligning with its annual dividend target.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025