Starwood European Real Estate Finance is to cut its dividend after 2020 owing to the ongoing low interest rate environment.
The fund said it would hit its total 6.5p per share dividend payment for 2020 but target paying 5.5p per year afterwards as its looks to “create a stable, sustainable and covered dividend level for the long term”.
Starwood, which has investments and commitments totalling £514.7m, said all the interest on loans within its investment portfolio had been paid on time.
In addition the fund said all the built hotels it is invested in were now open and operating, while its retail investments were all starting to reopen.
Hospitality makes up 34.7% of Starwood’s investment portfolio, while retail accounts for 12.7%.
Starwood’s net debt was at £15.1m at the end of June and it had undrawn revolving credit facilities of £101.9m. Across the portfolio its average loan to value remained at 63%.
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