2019 


                                   Outstanding at   For the year ended 
Fees, expenses and other payments  31 December 2019 31 December 2019 
                                   GBP                GBP 
Directors' fees and expenses paid 
Stephen Smith                      -                50,000 
John Whittle                       -                45,000 
Jonathan Bridel                    -                42,500 
Expenses paid                      -                2,828 
Investment Manager 
Investment management fees         801,074          3,077,665 
Origination fees                   31,572           1,684,798 
Expenses paid                      -                100,624

2020 


                                            Dividends paid during 
                                                                  As at 
Shareholdings and                           the year ended 
dividends paid                                                    31 December 2020 
                                            31 December 2020 
                                                                  Number of shares 
                                            GBP 
Starwood Property Trust Inc.                594,100               9,140,000 
SCG Starfin Investor LP                     148,525               2,285,000 
Shelagh Mason (appointed 1 September 2020)  287                   17,688 
Stephen Smith                               5,130                 78,929 
John Whittle                                1,356                 23,866 
Jonathan Bridel (resigned 31 December 2020) 771                   11,866 
Duncan MacPherson*                          8,333                 133,333 
Lorcain Egan*                               3,818                 61,093

* Employees at the Investment Advisor

Post year end Shelagh Mason, Duncan MacPherson and Lorcain Egan purchased 95,131, 116,667 and 22,585 shares respectively.

2019 


                                            Dividends paid during 
                                                                  As at 
Shareholdings and                           the year ended 
                                                                  31 December 2019 
dividends paid                              31 December 2019 
                                                                  Number of shares 
                                            GBP 
Starwood Property Trust Inc.                594,100               9,140,000 
SCG Starfin Investor LP                     148,525               2,285,000 
Stephen Smith                               5,130                 78,929 
John Whittle                                771                   11,866 
Jonathan Bridel (resigned 31 December 2020) 771                   11,866 
Duncan MacPherson*                          -                     - 
Lorcain Egan*                               -                     -

* Employees at the Investment Advisor

Other

The Group continues to participate in a number of loans in which Starwood Property Trust, Inc. ("STWD") acted as a co-lender. The details of these loans are shown in the table below. 


Loan                       Related party co-lenders 
Hotel & Residential, UK    STWD 
Hotel, Spain               STWD 
Mixed Portfolio, Europe    STWD 
Office Portfolio, Spain    STWD 
Office Portfolio, Ireland  STWD

23. EVENTS AFTER THE REPORTING PERIOD

The following cash amounts have been funded since the year end up to the date of publication of this report: 


                         Local Currency 
Hotel, Scotland          GBP3,867,454 
Hotel, Spain             EUR1,442,051 
Mixed Use, Dublin        EUR279,309 
Office Portfolio, Spain  EUR214,854 
Office, London           GBP154,634

The following loan amortisation (both scheduled and unscheduled) has been received since the year end up to the date of publication of this report: 


                              Local Currency 
Residential, London           GBP20,959,870 
Mixed Portfolio, Europe       EUR1,765,799 
Logistics Portfolio, Germany  EUR644,207 
Shopping Centre, Spain        EUR317,344

The term of the loan on Hotel & Residential, UK (GBP49.9m) has been extended by one year to 31 December 2022.

The Company has repaid GBP14.0 million of funding on its credit facilities following the amortisation of the loans above. In addition, the Company has drawn GBP3.0 million of funding on its credit facilities to fund the amounts drawn under existing commitments. At the date of publication of this report the amount drawn under each facility are: ? Morgan Stanley Facility: GBP8.5 million ? Lloyds Facility: GBP0.0 million

On 22 January 2021 the Directors declared a dividend in respect of the financial year ended 31 December 2020 of 1.625 pence per share, GBP6,644,808 to be paid on 5 March 2021 to shareholders on the register as at 5 February 2021.

On 1 January 2021 Charlotte Denton was appointed as a Director of the Company.

Further Information

Alternative Performance Measures

In accordance with ESMA Guidelines on Alternative Performance Measures ("APMs") the Board has considered what APMs are included in the Annual Financial Report and Audited Consolidated Financial Statements which require further clarification. An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. APMs included in the financial statements, which are unaudited and outside the scope of IFRS, are deemed to be as follows:

NAV PER ORDINARY SHARE

The NAV per Ordinary Share represents the net assets attributable to equity shareholders divided by the number of Ordinary Shares in issue, excluding any shares held in treasury. The NAV per Ordinary Share is published monthly. This APM relates to past performance and is used as a comparison to the share price per Ordinary Share to assess performance. There are no reconciling items between this calculation and the Net Asset Value shown on the balance sheet (other than to calculate by Ordinary Share).

NAV TOTAL RETURN

The NAV total return measures the combined effect of any dividends paid, together with the rise or fall in the NAV per Ordinary Share. This APM relates to past performance and takes into account both capital returns and dividends paid to shareholders. Any dividends received by a shareholder are assumed to have been reinvested in the assets of the Company at its NAV per Ordinary Share.

SHARE PRICE TOTAL RETURN

The share price total return measures the combined effects of any dividends paid, together with the rise or fall in the share price. This APM relates to past performance and assesses the impact of movements in the share price on total returns to investors. Any dividends received by a shareholder are assumed to have been reinvested in additional shares of the Company at the time the shares were quoted ex-dividend.

NAV TO MARKET PRICE DISCOUNT / PREMIUM

The discount / premium is the amount by which the share price of the Company is lower (discount) or higher (premium) than the NAV per Ordinary Share at the date of reporting and relates to past performance. The discount or premium is normally expressed as a percentage of the NAV per Ordinary Share.

INVESTED LOAN PORTFOLIO UNLEVERED ANNUALISED TOTAL RETURN

The unlevered annualised return is a calculation at the quarterly reporting date of the estimated annual return on the portfolio at that point in time. It is calculated individually for each loan by summing the one-off fees earned (such as up-front arrangement or exit fees charged on repayment) and dividing these over the full contractual term of the loan, and adding this to the annual returns. Where a loan is floating rate (partially or in whole or with floors), the returns are based on an assumed profile for future interbank rates, but the actual rate received may be higher or lower. The return is calculated only on amounts funded at the quarterly reporting date and excludes committed but undrawn loans and excludes cash un-invested. The calculation also excludes origination fees paid to the Investment Manager, which are accounted for within the interest line in the financial statements.

An average, weighted by loan amount, is then calculated for the portfolio.

This APM gives an indication of the future performance of the portfolio (as constituted at the reporting date). The calculation, if the portfolio remained unchanged, could be used to estimate "income from loans advanced" in the Consolidated Statement of Comprehensive Income if adjusted for the origination fee of 0.75 basis points amortised over the average life of the loan. As discussed earlier in this report the figure actually realised may be different due to the following reasons: ? In the quoted return, we amortise all one-off fees (such as arrangement and exit fees) over the contractual life of

the loan, which is currently four years for the portfolio. However, it has been our experience that loans tend to

repay after approximately 2.5 years and as such, these fees are actually amortised over a shorter period. ? Many loans benefit from prepayment provisions, which means that if they are repaid before the end of the protected

period, additional interest or fees become due. As we quote the return based on the contractual life of the loan

these returns cannot be forecast in the return. ? The quoted return excludes the benefit of any foreign exchange gains on Euro loans. We do not forecast this as the

loans are often repaid early and the gain may be lower than this once hedge positions are settled.

Generally speaking, the actual annualised total return is likely to be higher than the reported return for these reasons, but this is not incorporated in the reported figure, as the benefit of these items cannot be assumed.

PORTFOLIO LEVERED ANNUALISED TOTAL RETURN

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