Net foreign exchange (losses) / gains on cash and cash equivalents             (239,260)     1,129,013     84,338 
 
Cash and cash equivalents at the end of the period / year                      1,359,957     9,024,042     2,939,408

1 Net of arrangement fees of GBP357,009 (period ended 30 June 2020: GBP778,691, year ended 31 December 2020: GBP780,584) withheld.

The accompanying notes form an integral part of these Unaudited Condensed Consolidated Financial Statements.

Notes to the Unaudited Condensed Consolidated Financial Statements

for the period ended 30 June 2021

1. GENERAL INFORMATION

Starwood European Real Estate Finance Limited (the "Company") was incorporated with limited liability in Guernsey under the Companies (Guernsey) Law, 2008, as amended, on 9 November 2012 with registered number 55836, and has been authorised by the Guernsey Financial Services Commission as a registered closed-ended investment scheme.

On 12 December 2012, the Company announced the results of its IPO, which raised net proceeds of GBP223.9 million. The Company's Ordinary Shares were admitted to the premium segment of the UK's Financial Conduct Authority's Official List and to trading on the Main Market of the London Stock Exchange as part of its IPO which completed on 17 December 2012. Further issues took place in March 2013, April 2013, July 2015, September 2015, August 2016 and May 2019. On 10 August 2020 the Company announced the appointment of Jefferies International Limited as buy-back agent to effect share buy backs on behalf of the Company. During the period ended 30 June 2021, the Company had repurchased 660,000 (year ended 31 December 2020: 3,648,125) Ordinary Shares at an average price of 89.54 (year ended 31 December 2020: 86.9) pence per share respectively. These Ordinary Shares are held in treasury.

The Unaudited Condensed Consolidated Financial Statements comprise the financial statements of the Company, Starfin Public Holdco 1 Limited (the "Holdco 1"), Starfin Public Holdco 2 Limited (the "Holdco 2"), Starfin Lux S.à.r.l ("Luxco"), Starfin Lux 3 S.à.r.l ("Luxco 3") and Starfin Lux 4 S.à.r.l ("Luxco 4") (together the "Group") as at 30 June 2021.

The Company's investment objective is to provide its shareholders with regular dividends and an attractive total return while limiting downside risk, through the origination, execution, acquisition and servicing of a diversified portfolio of real estate debt investments (including debt instruments) in the UK and wider European Union's internal market. To pursue its investment objective, the Company, through the Holdco 1 and Holdco 2 (the "Holdcos"), invests in the Luxco, Luxco 3 and Luxco 4 (the "Luxcos") through both equity and profit participation instruments or other funding instruments. The Luxcos then grant or acquire loans (or other debt instruments) to borrowers in accordance with the Group's investment policy.

The Group expects all of its investments to be debt obligations of corporate entities domiciled or with significant operations in the UK and the European Union's internal market.

The Company has appointed Starwood European Finance Partners Limited as the Investment Manager (the "Investment Manager"), a company incorporated in Guernsey and regulated by the GFSC. The Investment Manager has appointed Starwood Capital Europe Advisers, LLP (the "Investment Adviser"), an English limited liability partnership authorised and regulated by the Financial Conduct Authority, to provide investment advice pursuant to an Investment Advisory Agreement. The administration of the Company is delegated to Apex Fund and Corporate Services (Guernsey) Limited (the "Administrator").

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES

The Company has prepared these Unaudited Condensed Consolidated Financial Statements on a going concern basis 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. This Interim Financial Report does not comprise statutory Financial Statements within the meaning of the Companies (Guernsey) Law, 2008, and should be read in conjunction with the Consolidated Financial Statements of the Group as at and for the year ended 31 December 2020, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union and the Companies (Guernsey) Law, 2008. The statutory Consolidated Financial Statements for the year ended 31 December 2020 were approved by the Board of Directors on 25 March 2021. The opinion of the Auditor on those Financial Statements was unqualified and did not contain an emphasis of matter. This Interim Financial Report and Unaudited Condensed Consolidated Financial Statements for the period ended 30 June 2021 has been reviewed by the Auditor but not audited.

There are a number of new and amended accounting standards and interpretations that became applicable for annual reporting periods commencing on or after 1 January 2021.

These amendments have not had a significant impact on these Unaudited Condensed Consolidated Financial Statements and therefore the additional disclosures associated with first time adoption have not been made.

The preparation of the Unaudited Condensed Consolidated Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these Unaudited Condensed Consolidated Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Annual Consolidated Financial Statements for the year ended 31 December 2020.

3. NET FOREIGN EXCHANGE GAINS / (LOSSES) 


                                                                              30 June 2021 30 June 2020 31 December 
                                                                                                        2020 
                                                                              GBP            GBP            GBP 
Loans advanced - realised gains                                               124,994      249,626      647,000 
Loans advanced - realised losses                                              (65,004)     (1,128,198)  (1,134,619) 
Forward contracts held at fair value through profit or loss - realised gains  147,710      1,117,973    1,131,404 
Forward contracts held at fair value through profit or loss - realised losses (296,355)    (75,586)     (328,698) 
Other - realised gains                                                        189,031      3,460        1,229 
Other - realised losses                                                       (51,454)     (468,567)    (422,347) 
Loans advanced - unrealised gains                                             -            17,713,996   13,776,618 
Loans advanced - unrealised losses                                            (12,385,596) -            - 
Forward contracts held at fair value through profit or loss - unrealised      11,817,856   319,915      397,778 
gains 
Forward contracts held at fair value through profit or loss - unrealised      (760,384)    (13,451,378) (8,074,598) 
losses 
                                                                              (1,279,202)  4,281,241    5,993,767

4. EARNINGS PER SHARE AND NET ASSET VALUE PER SHARE

The calculation of basic earnings per Ordinary Share is based on the operating profit of GBP10,080,256 (30 June 2020: GBP16,670,075 and 31 December 2020: GBP29,908,486) and on the weighted average number of Ordinary Shares in issue at 30 June 2021 of 408,968,207 (30 June 2020: 413,219,398 and 31 December 2020: 412,469,890).

The calculation of NAV per Ordinary Share is based on a NAV of GBP423,728,836 (30 June 2020: GBP430,088,426 and 31 December 2020: GBP426,697,507) and the actual number of Ordinary Shares in issue at 30 June 2021 of 408,911,273 (30 June 2020: 413,219,398 and 31 December 2020: 409,571,273).

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise the following: 


              30 June 2021 30 June 2020 31 December 2020 
 
              GBP            GBP            GBP 
Cash at bank  1,359,957    9,024,042    2,939,408

Cash and cash equivalents comprises cash and short-term deposits held with various banking institutions with original maturities of three months or less.

6. OTHER RECEIVABLES AND REPAYMENTS 


                               30 June 2021 30 June 2020 31 December 2020 
                               GBP            GBP            GBP 
Prepayments                    11,559       12,198       17,094 
Taxation prepayments           22,712       -            - 
Investment interest receivable 1,095,5031   1,095,5031   - 
                               1,129,774    1,107,701    17,094

1 Investment interest receivables are related to Hotel & Residential, UK and were received on 1 July 2021 and 1 July 2020 respectively.

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