To the best of their knowledge, the Directors of Starwood European Real Estate Finance Limited confirm that: 1. The Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with IAS 34,"Interim Financial Reporting" as adopted by the European Union as required by DTR 4.2.4 R; and 2. The Interim Financial Report, comprising of the Chairman's Statement, the Investment Manager's Report andthe Principal Risks, meets the requirements of an interim management report and includes a fair review ofinformation required by:i. DTR 4.2.7R of the UK Disclosure and Transparency Rules, being an indication of important events thathave occurred during the first six months and their impact on the Unaudited Condensed Consolidated FinancialStatements, and a description of the principal risks and uncertainties for the remaining six months; and ii. DTR 4.2.8R of the UK Disclosure and Transparency Rules, being related party transactions that havetaken place in the first six months and that have materially affected the financial position or performance ofthe Company during that period, and any material changes in the related party transactions disclosed in thelast Annual Report.
By order of the Board
For Starwood European Real Estate Finance Limited
Stephen Smith John Whittle Chairman Director 6 September 2021 6 September 2021
Interim Financial Statements
Independent Review Report to Starwood European Real Estate Finance Limited
Report on the unaudited condensed consolidated financial statements
OUR CONCLUSION
We have reviewed Starwood European Real Estate Finance Limited's unaudited condensed consolidated financial statements (the "interim financial statements") in the Interim Financial Report and Unaudited Condensed Consolidated Financial Statements (the "Interim Report") of Starwood European Real Estate Finance Limited for the 6-month period ended 30 June 2021. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
WHAT WE HAVE REVIEWED
The interim financial statements comprise:
-- the unaudited condensed consolidated statement of financial position as at 30 June 2021;
-- the unaudited condensed consolidated statement of comprehensive income for the period then ended;
-- the unaudited condensed consolidated statement of cash flows for the period then ended;
-- the unaudited condensed consolidated statement of changes in equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is The Companies (Guernsey) Law, 2008 and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW
OUR RESPONSIBILITIES AND THOSE OF THE DIRECTORS
The Interim Report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim financial statements in the Interim Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
WHAT A REVIEW OF INTERIM FINANCIAL STATEMENTS INVOLVES
We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the International Auditing and Assurance Standards Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
PricewaterhouseCoopers CI LLP
Chartered Accountants,
Guernsey, Channel Islands
6 September 2021 a. The maintenance and integrity of the Starwood European Real Estate Finance Limited website is theresponsibility of the directors; the work carried out by the auditors does not involve consideration of thesematters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to thefinancial statements since they were initially presented on the website. b. Legislation in Guernsey governing the preparation and dissemination of financial statements may differfrom legislation in other jurisdictions.
Unaudited Condensed Consolidated Statement of Comprehensive Income
for the period ended 30 June 2021
1 January 2021 to 1 January 2020 to 1 January 2020 to 31 30 June 2021 30 June 2020 December 2020 Notes GBP GBP GBP (unaudited) (unaudited) (audited) Income Income from loans advanced 7 14,472,491 14,433,090 29,052,521 Net foreign exchange (losses) / gains 3 (1,279,202) 4,281,241 5,993,767 Net changes in fair value of financial assets at 13 - 1,097,722 1,097,722 fair value through profit or loss Total income 13,193,289 19,812,053 36,144,010 Expenses Investment management fees 15 1,561,503 1,584,891 3,186,943 Credit facility commitment fees 414,060 376,430 762,074 Credit facility interest 380,607 508,194 945,771 Legal and professional fees 174,184 155,133 288,111 Administration fees 172,485 154,606 331,591 Other expenses 127,943 94,259 198,350 Audit and non-audit fees 117,763 127,885 227,386 Directors' fees and expenses 15 89,500 69,991 152,564 Broker's fees and expenses 25,000 - 50,000 Agency fees - 10,781 10,781 Total operating expenses 3,054,645 3,082,170 6,153,571 Operating profit for the period / year before tax 10,138,644 16,729,883 29,990,439 Taxation 14 58,388 59,808 81,953 Operating profit for the period / year 10,080,256 16,670,075 29,908,486 Other comprehensive income Items that may be reclassified to profit or loss Exchange differences on translation of foreign (190,056) 292,900 232,417 operations Other comprehensive (loss) / income for the period (190,056) 292,900 232,417 / year Total comprehensive income for the period / year 9,890,200 16,962,975 30,140,903 Weighted average number of shares in issue 4 408,968,207 413,219,398 412,469,890 Basic and diluted earnings per Ordinary Share 4 2.46 4.03 7.25 (pence)
The accompanying notes form an integral part of these Unaudited Condensed Consolidated Financial Statements.
Unaudited Condensed Consolidated Statement of Financial Position
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