Starwood has said its loan book is well placed to withstand inflation and interest rate rises.
Announcing Starwood European Real Estate Finance’s full results this morning, chair John Whittle said: “With the increases in inflation rates currently being anticipated, the group, with 78% of the portfolio contracted at floating interest rates, is extremely well placed should interest rates increase as a result.”
SEREF reported a share price total return of 11.1% for 2021, and committed a total of £90.8m to three new loans, located in the UK, in the life sciences, office and hospitality sectors. Net asset value dropped slightly from £426m to £421m, but Starwood said its current investment pipeline was “the strongest since the company was established”.
