Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading
global real estate investment company with $25 billion in AUM
across its real estate equity and debt investment portfolio, today
reported results for Q3-2023:
“With high levels of inflation, interest rates at multi-decade
highs, and rising geopolitical issues, the global investment
environment continues to face headwinds. These factors have
impacted our results due to non-cash mark-to-market adjustments in
our fair value portfolio for assets which are generally being held
as long-term investments in well capitalized joint ventures with
institutional partners and are currently producing excellent net
operating income,” said William McMorrow, Chairman and CEO of
Kennedy Wilson. “We saw continued strong demand for rental housing
and further growth in our debt investment platform and our
Fee-Bearing Capital. We also remain on track to complete and
lease-up several development projects in the near term, including
approximately 1,000 multifamily units delivered in Q3 and over
1,300 units expected to complete by the end of Q2-24, which will
continue to convert non-income producing investments into cash
flowing assets.”
Financial Results
Q3
YTD
(Amounts in millions, except per share
data)
2023
2022
2023
2022
GAAP
Results
GAAP Net (Loss) Income to Common
Shareholders
($92.2
)
$16.4
($94.0
)
$42.2
Per Diluted Share
(0.66
)
0.12
(0.67
)
0.31
Non-GAAP
Results
Adjusted EBITDA
$33.2
$165.9
$319.2
$444.4
Adjusted Net (Loss) Income
(46.7
)
68.7
44.6
195.5
- Adjusted EBITDA Totals $33 million (vs. $166 million in
Q3-22) Driven by Unrealized Fair Value Declines in its
Co-Investment Portfolio:
- KW's share of recurring property NOI, loan income and fees
totaled $131 million in Q3-23 (vs. $130 million in Q3-22).
- Realized gains on sale from real estate, net of non-controlling
interest, totaled $14 million in Q3-23 (vs $49 million of realized
gains from the sale of real and realized performance allocation
from Q3-22).
- Changes in the fair-value of the Company's co-investment
portfolio and resulting adjustment to its net accrued performance
allocation resulted in a non-cash $74 million net unrealized loss
in Q3-23 (vs. a non-cash net unrealized loss of $7 million in
Q3-22).
- Other income totaled $3 million in Q3-23 (vs $37 million in
Q3-22). Other income in Q3-22 primarily related to the increase in
value of the Company's interest rate hedging derivative
contracts.
- Estimated Annual NOI Increased by 3% and Fee-Bearing Capital
by 46% from Q3-22:
Est. Annual NOI To KW
($ in millions)
Fee-Bearing Capital ($
in billions)
As of Q3-22
$473
$5.6
As of Q4-22
$491
$5.9
As of Q2-23
$499
$7.9
Gross acquisitions and loan
investments
3
0.3
Gross dispositions and loan repayments
(11
)
(0.2
)
Assets stabilized/unstabilized
2
—
Operations
(1
)
—
FX and other(1)
(7
)
0.2
Total as of Q3-23
$485
$8.2
(1) See further discussion of
foreign currency hedging strategy below.
- Multifamily Same Property Performance(1) :
Q3 -
2023 vs. Q3- 2022
YTD -
2023 vs. YTD - 2022
Occupancy
Revenue
Expenses
NOI
Occupancy
Revenue
Expenses
NOI
Multifamily - Market Rate
0.1%
3.6%
5.3%
2.8%
(0.6)%
4.1%
5.7%
3.3%
Multifamily - Affordable
(0.5)%
7.0%
14.5%
3.5%
(0.9)%
8.2%
15.4%
4.9%
Total
—%
4.1%
6.6%
2.9%
(0.6)%
4.7%
7.4%
3.5%
(1) Excludes minority-held
investments and assets under going development or lease-up.
- U.S. Multifamily - Market Rate:
- Mountain West and Pacific Northwest : The Company's
Mountain West and Pacific Northwest portfolio, which represents 73%
of its U.S. market-rate same-property portfolio, generated
same-property revenue growth of 5% and NOI growth of 4% in Q3-23
(vs. Q3-22).
- California: Same Property results in California continue
to be impacted by higher delinquencies related to the expiration of
governmental rental assistance programs and elevated one-time
eviction related costs. The Company received $2.8 million in YTD-22
in rental assistance payments vs. $0.2 million in YTD-23.
- Office Same Property Performance(1):
Q3-2023
vs. Q3-2022
YTD -
2023 vs. YTD - 2022
Occupancy
Revenue
Expenses
NOI
Occupancy
Revenue
Expenses
NOI
Office
0.3%
0.5%
6.3%
(0.4)%
1.0%
1.3%
2.9%
1.0%
(1) Excludes minority-held
investments and assets under going development or lease-up.
- Development and Lease-Up Portfolio Update:
- Dublin Multifamily Completions: Completed construction
of 471-unit Coopers Cross and 287-unit Grange multifamily projects
in Dublin, which are leasing up ahead of business plan.
- U.S. Multifamily Lease-Up:
- Stabilized the 227-unit Quinn by Vintage and 197-unit Station
by Vintage communities in the Pacific Northwest. The Company's
Vintage affordable multifamily portfolio totals over 10,000
stabilized units with another 1,765 under development or
lease-up.
- The Company has begun delivering units at its two Mountain West
market-rate development projects, Dovetail and Oxbow, which will
total 508 units at completion. Construction is expected to complete
during the first half of 2024.
- Approximately 70% of the Company's development and lease-up up
portfolio is expected to stabilize by YE-24. The Company has
completed 82% of total expected development costs of $592 million,
with its share of remaining expected cash investment to complete
construction totaling approximately $32 million.
Investment Activity
- $343 million in Gross New Investments ($28 million at
share):
- Co-Investment Acquisitions: Acquired the final tranche
of loans totaling $212 million from the previously announced $4.1
billion loan acquisition from Pacific Western Bank (KW share 5%).
The Company also acquired two UK industrial assets totaling $36
million (KW share 20%) and a 315-unit multifamily property in the
Pacific Northwest for $94 million (KW share 10%).
- $499 million in Gross Dispositions and Loan Repayments ($131
million at share):
- Consolidated Portfolio:
- Multifamily Dispositions: Sold a 200-unit multifamily
property located in Montana for $62 million, in which the Company
had a 80% ownership interest. The disposition generated a gain on
sale of $20 million (net of non-controlling interest).
- Further Progress On Non-Core Asset Sales: Sold six UK
retail assets, one retail asset in Dublin, Ireland, and one
Mountain West retail asset for $52 million.
- Co-Investment Portfolio: The Company had loan repayments
totaling $376 million (KW share 7%).
Investment Management
- Fee-Bearing Capital Grows to a Record $8.2 billion; +39%
YTD: 4% quarterly growth in Fee-Bearing Capital with
approximately $3.2 billion in additional non-discretionary capital
with certain strategic partners that is currently available for
investment:
- Debt Investment Platform Doubles in Size in 2023:
- In Q3, the Company acquired the final tranche of loans as part
of the previously announced Pacific Western Bank transaction,
totaling $212 million, while also completing $252 million in
additional fundings and realizing $376 million in repayments
(acquired for $364 million), increasing the debt platform by 2% in
Q3-23.
- The Debt Investment Platform totals $6.5 billion of outstanding
loans (including $1.8 billion of future funding commitments) and
$4.4 billion of Fee-Bearing Capital at quarter-end, in which the
Company has a 5% ownership interest in.
Balance Sheet and
Liquidity
- Cash and Line of Credit Availability: As of September
30, 2023, Kennedy Wilson had a total of $331 million(1) in cash and
cash equivalents and $146 million drawn on its $500 million
revolving credit facility.
- Debt Profile: Kennedy Wilson's share of debt had a
weighted average effective interest rate of 4.3% per annum and a
weighted average maturity of 5.4 years as of September 30, 2023.
Approximately 100% of the Company's debt is either fixed or hedged
with interest rate hedges.
- Interest Rate Hedging Strategy: The Company hedges its
floating rate exposure through the usage of interest rate caps and
swaps. The Company's interest rate hedges have a weighted average
maturity of 1.7 years.
- Foreign Currency Hedging Strategy: Kennedy Wilson hedges
its exposure to foreign currency fluctuations by borrowing in the
currency in which it invests and using foreign currency hedging
instruments. As of September 30, 2023, the Company has hedged
approximately 92% of the carrying value of its foreign currency
investments, using local currency debt and hedging instruments with
a weighted average term of 2.2 years.
Subsequent Events
In October, the Company sold a wholly-owned office property
located in the United Kingdom for a sale price of $46 million,
resulting in a gain on sale of approximately $13 million.
________________________________________________________________________________________
Footnotes
(1)
Represents consolidated cash and
includes $65 million of restricted cash, which is included in cash
and cash equivalents and primarily relates to lender reserves
associated with consolidated mortgages that we hold on properties.
These reserves typically relate to interest, tax, insurance and
future capital expenditures at the properties. Additionally, we are
subject to withholding taxes to the extent we repatriate cash from
certain of our foreign subsidiaries. Under the KWE Notes covenants
we have to maintain certain interest coverage and leverage ratios
to remain in compliance (see "Indebtedness and Related Covenants"
for more detail on KWE Notes in the Company's quarterly report).
Due to these covenants, we evaluate the tax and covenant
implications before we distribute cash, which could impact the
availability of funds at the corporate level. The Company's share
of cash, including unconsolidated joint-ventures, totals $425
million.
Conference Call and Webcast
Details
Kennedy Wilson will hold a live conference call and webcast to
discuss results at 9:00 a.m. PT/ 12:00 p.m. ET on Thursday,
November 2. The direct dial-in number for the conference call is
(844) 340-4761 for U.S. callers and (412) 717-9616 for
international callers. A replay of the call will be available for
one week beginning one hour after the live call and can be accessed
by (877) 344-7529 for U.S. callers and (412) 317-0088 for
international callers. The passcode for the replay is 1180933.
The webcast will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=7Cb4wg0G.
A replay of the webcast will be available one hour after the
original webcast on the Company’s investor relations web site for
three months.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a leading global real estate
investment company. The company owns, operates, and invests in real
estate through the balance sheet and through an investment
management platform in the United States, United Kingdom, and
Ireland. Kennedy Wilson primarily focuses on multifamily and office
properties as well as industrial and debt investments in the
investment management business. For more information on Kennedy
Wilson, please visit: www.kennedywilson.com.
Kennedy-Wilson Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(Dollars in millions)
September 30,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
330.9
$
439.3
Accounts receivable
47.4
40.8
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $922.1
and $882.2)
4,849.6
5,188.1
Unconsolidated investments (including
$2,089.2 and $2,093.7 at fair value)
2,232.7
2,238.1
Other assets
211.7
216.1
Loan purchases and originations
238.0
149.4
Total assets
$
7,910.3
$
8,271.8
Liabilities
Accounts payable
$
14.0
$
16.2
Accrued expenses and other liabilities
(including $284.0 and $303.7 of deferred tax liabilities)
593.1
658.2
Mortgage debt
2,821.2
3,018.0
KW unsecured debt
1,928.9
2,062.6
KWE unsecured bonds
500.8
506.4
Total liabilities
5,858.0
6,261.4
Equity
Cumulative perpetual preferred stock
790.5
592.5
Common stock
—
—
Additional paid-in capital
1,717.7
1,679.5
Retained (deficit) earnings
(72.3
)
122.1
Accumulated other comprehensive loss
(427.3
)
(430.1
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
2,008.6
1,964.0
Noncontrolling interests
43.7
46.4
Total equity
2,052.3
2,010.4
Total liabilities and equity
$
7,910.3
$
8,271.8
Kennedy-Wilson Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
(Dollars in millions, except
share amounts and per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
Rental
$
102.4
$
110.9
$
315.6
$
324.4
Hotel
16.6
14.0
42.7
33.2
Investment management fees
15.5
11.2
45.6
33.5
Property services fees
0.7
0.5
1.6
1.3
Loans and other
6.1
3.0
14.5
8.0
Total revenue
141.3
139.6
420.0
400.4
(Loss) income from unconsolidated
investments
Principal co-investments
(56.1
)
30.3
(33.4
)
147.9
Performance allocations
(17.9
)
(18.0
)
(36.3
)
0.5
Total (loss) income from unconsolidated
investments
(74.0
)
12.3
(69.7
)
148.4
Gain on sale of real estate,
net
30.4
37.0
138.6
50.8
Expenses
Rental
38.4
38.6
113.7
110.7
Hotel
9.8
8.6
27.4
20.5
Compensation and related (including $7.3,
$7.3, $21.7, $21.7 of share-based compensation)
31.1
33.8
98.7
103.7
Performance allocation compensation
(6.0
)
(6.6
)
(5.5
)
3.2
General and administrative
8.4
9.2
25.5
26.5
Depreciation and amortization
38.8
46.1
118.3
132.7
Total expenses
120.5
129.7
378.1
397.3
Interest expense
(64.2
)
(57.1
)
(192.5
)
(160.8
)
Loss on early extinguishment of debt
—
(1.3
)
(1.6
)
(2.4
)
Other income
3.2
36.7
24.5
46.1
(Loss) income before provision for
income taxes
(83.8
)
37.5
(58.8
)
85.2
Benefit from (provision for) income
taxes
19.7
(13.9
)
13.3
(22.5
)
Net (loss) income
(64.1
)
23.6
(45.5
)
62.7
Net (income) loss attributable to
noncontrolling interests
(17.3
)
0.7
(21.4
)
0.5
Preferred dividends
(10.8
)
(7.9
)
(27.1
)
(21.0
)
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(92.2
)
$
16.4
$
(94.0
)
$
42.2
Basic earnings (loss) per share
(Loss) earnings per share
$
(0.66
)
$
0.12
$
(0.67
)
$
0.31
Weighted average shares outstanding
139,391,316
136,840,874
138,914,964
136,832,102
Diluted (loss) earnings share
(Loss) earnings per share
$
(0.66
)
$
0.12
$
(0.67
)
$
0.31
Weighted average shares outstanding
139,391,316
137,078,495
138,914,964
137,136,352
Dividends declared per common
share
$
0.24
$
0.24
$
0.72
$
0.72
Kennedy-Wilson Holdings,
Inc.
Adjusted EBITDA
(Unaudited)
(Dollars in millions)
The table below reconciles net
income attributable to Kennedy-Wilson Holdings, Inc. common
shareholders to Adjusted EBITDA, using Kennedy Wilson’s pro-rata
share amounts for each adjustment item.
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(92.2
)
$
16.4
$
(94.0
)
$
42.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
89.4
72.9
259.6
201.8
Loss on early extinguishment of debt
—
1.3
1.6
2.4
Depreciation and amortization
38.2
45.0
116.9
131.6
(Benefit from) provision for income
taxes
(20.3
)
15.1
(13.7
)
23.7
Preferred dividends
10.8
7.9
27.1
21.0
Share-based compensation
7.3
7.3
21.7
21.7
Adjusted EBITDA
$
33.2
$
165.9
$
319.2
$
444.4
(1) See Appendix for
reconciliation of Kennedy Wilson's Share amounts.
Adjusted Net Income
(Unaudited)
(Dollars in millions, except
share data)
The table below reconciles net
income attributable to Kennedy-Wilson Holdings, Inc. common
shareholders to Adjusted Net Income, using Kennedy Wilson’s
pro-rata share amounts for each adjustment item.
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(92.2
)
$
16.4
$
(94.0
)
$
42.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
38.2
45.0
116.9
131.6
Share-based compensation
7.3
7.3
21.7
21.7
Adjusted Net (Loss) Income
$
(46.7
)
$
68.7
$
44.6
$
195.5
Weighted average shares outstanding for
diluted
139,391,316
137,078,495
138,914,964
137,136,352
(1) See Appendix for
reconciliation of Kennedy Wilson's Share amounts.
Forward-Looking Statements
Statements made by us in this report and in other reports and
statements released by us that are not historical facts constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are necessarily estimates reflecting the judgment of our
senior management based on our current estimates, expectations,
forecasts and projections and include comments that express our
current opinions about trends and factors that may impact future
operating results. Disclosures that use words such as "believe,"
"anticipate," "estimate," "intend," "may," "could," "plan,"
"expect," "project" or the negative of these, as well as similar
expressions, are intended to identify forward-looking statements.
These statements are not guarantees of future performance, rely on
a number of assumptions concerning future events, many of which are
outside of our control, and involve known and unknown risks and
uncertainties that could cause our actual results, performance or
achievement, or industry results, to differ materially from any
future results, performance or achievements expressed or implied by
such forward-looking statements. These risks and uncertainties may
include the factors and the risks and uncertainties described
elsewhere in this report and other filings with the Securities and
Exchange Commission (the "SEC"), including the Item 1A. "Risk
Factors" section of our Annual Report on Form 10-K for the year
ended December 31, 2021, as amended by our subsequent filings with
the SEC. Any such forward-looking statements, whether made in this
report or elsewhere, should be considered in the context of the
various disclosures made by us about our businesses including,
without limitation, the risk factors discussed in our filings with
the SEC. Except as required under the federal securities laws and
the rules and regulations of the SEC, we do not have any intention
or obligation to update publicly any forward-looking statements,
whether as a result of new information, future events, changes in
assumptions, or otherwise.
Common Definitions
- “KWH,” "KW," “Kennedy Wilson,” the "Company," "we," "our," or
"us" refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned
subsidiaries.
- “Adjusted EBITDA” represents net income before interest
expense, loss (gain) on early extinguishment of debt, our share of
interest expense included in unconsolidated investments,
depreciation and amortization, our share of depreciation and
amortization included in unconsolidated investments, provision for
(benefit from) income taxes, our share of taxes included in
unconsolidated investments, share-based compensation for the
Company, and EBITDA attributable to noncontrolling interests.
Please also see the reconciliation to GAAP in the Company’s
supplemental financial information included in this release and
also available at www.kennedywilson.com. Our management uses
Adjusted EBITDA to analyze our business because it adjusts net
income for items we believe do not accurately reflect the nature of
our business going forward or that relate to non-cash compensation
expense or noncontrolling interests. Such items may vary for
different companies for reasons unrelated to overall operating
performance. Additionally, we believe Adjusted EBITDA is useful to
investors to assist them in getting a more accurate picture of our
results from operations. However, Adjusted EBITDA is not a
recognized measurement under GAAP and when analyzing our operating
performance, readers should use Adjusted EBITDA in addition to, and
not as an alternative for, net income as determined in accordance
with GAAP. Because not all companies use identical calculations,
our presentation of Adjusted EBITDA may not be comparable to
similarly titled measures of other companies. Furthermore, Adjusted
EBITDA is not intended to be a measure of free cash flow for
management’s discretionary use, as it does not remove all non-cash
items or consider certain cash requirements such as tax and debt
service payments. The amount shown for Adjusted EBITDA also differs
from the amount calculated under similarly titled definitions in
our debt instruments, which are further adjusted to reflect certain
other cash and non-cash charges and are used to determine
compliance with financial covenants and our ability to engage in
certain activities, such as incurring additional debt and making
certain restricted payments.
- "Adjusted Fees" refers to Kennedy Wilson’s gross investment
management and property services fees adjusted to include Kennedy
Wilson's share of fees eliminated in consolidation, Kennedy
Wilson’s share of fees in unconsolidated service businesses and
performance fees included in unconsolidated investments. Our
management uses Adjusted fees to analyze our investment management
and real estate services business because the measure removes
required eliminations under GAAP for properties in which the
Company provides services but also has an ownership interest. These
eliminations understate the economic value of the investment
management and property services fees and makes the Company
comparable to other real estate companies that provide investment
management and real estate services but do not have an ownership
interest in the properties they manage. Our management believes
that adjusting GAAP fees to reflect these amounts eliminated in
consolidation presents a more holistic measure of the scope of our
investment management and real estate services business.
- “Adjusted Net Income” represents net income (loss) before
depreciation and amortization, Kennedy Wilson's share of
depreciation and amortization included in unconsolidated
investments, share-based compensation, and excluding net income
attributable to noncontrolling interests, before depreciation and
amortization and preferred dividends. Please also see the
reconciliation to GAAP in the Company’s supplemental financial
information included in this release and also available at
www.kennedywilson.com.
- “Annual Return on Loans” is a metric that applies to our real
estate debt business that represents the sum of annual interest
income, transaction fees and the payback of principal for
discounted loan purchases, amortized over the life of the loans and
divided by the principal balances of the loans.
- "Cap rate" represents the net operating income of an investment
for the year preceding its acquisition or disposition, as
applicable, divided by the purchase or sale price, as applicable.
Capitalization ("Cap") rates set forth in this presentation only
include data from income-producing properties. We calculate cap
rates based on information that is supplied to us during the
acquisition diligence process. This information is not audited or
reviewed by independent accountants and may be presented in a
manner that is different from similar information included in our
financial statements prepared in accordance with GAAP. In addition,
cap rates represent historical performance and are not a guarantee
of future NOI. Properties for which a cap rate is provided may not
continue to perform at that cap rate.
- "Equity partners" refers to non-wholly-owned subsidiaries that
we consolidate in our financial statements under U.S. GAAP and
third-party equity providers.
- "Estimated Annual NOI" is a property-level non-GAAP measure
representing the estimated annual net operating income from each
property as of the date shown, inclusive of rent abatements (if
applicable). The calculation excludes depreciation and amortization
expense, and does not capture the changes in the value of our
properties that result from use or market conditions, nor the level
of capital expenditures, tenant improvements, and leasing
commissions necessary to maintain the operating performance of our
properties. For assets wholly-owned and fully occupied by KW, the
Company provides an estimated NOI for valuation purposes of $4.2
million, which includes an assumption for applicable market rents.
Any of the enumerated items above could have a material effect on
the performance of our properties. Also, where specifically noted,
for properties purchased in 2023, the NOI represents estimated Year
1 NOI from our original underwriting. Estimated year 1 NOI for
properties purchased in 2023 may not be indicative of the actual
results for those properties. Estimated annual NOI is not an
indicator of the actual annual net operating income that the
Company will or expects to realize in any period. Please also see
the definition of "Net operating income" below.
- "Fee-Bearing Capital" represents total third-party committed or
invested capital that we manage in our joint-ventures and
commingled funds that entitle us to earn fees, including without
limitation, asset management fees, construction management fees,
acquisition and disposition fees and/or promoted interest, if
applicable.
- "Gross Asset Value” refers to the gross carrying value of
assets, before debt, depreciation and amortization, and net of
noncontrolling interests.
- "Net operating income" or "NOI” is a non-GAAP measure
representing the income produced by a property calculated by
deducting certain property expenses from property revenues. Our
management uses net operating income to assess and compare the
performance of our properties and to estimate their fair value. Net
operating income does not include the effects of depreciation or
amortization or gains or losses from the sale of properties because
the effects of those items do not necessarily represent the actual
change in the value of our properties resulting from our value-add
initiatives or changing market conditions. Our management believes
that net operating income reflects the core revenues and costs of
operating our properties and is better suited to evaluate trends in
occupancy and lease rates. Please also see the reconciliation to
GAAP in the Company’s supplemental financial information included
in this release and also available at www.kennedywilson.com.
- "Noncontrolling interests" represents the portion of equity
ownership in a consolidated subsidiary not attributable to Kennedy
Wilson.
- "Performance allocations” relates to allocations to the Company
of Kennedy Wilson's co-investments it invests in and manages based
on the cumulative performance of the fund or investment vehicle, as
applicable, and are subject to preferred return thresholds of the
limited partners.
- "Performance allocation compensation” - the compensation
committee of the Company’s board of directors approved and reserved
between twenty percent (20%) and thirty-five percent (35%) of any
performance allocation earned by certain commingled funds and
separate account investments to be allocated to certain non-NEO
employees of the Company.
- "Principal co-investments” consists of the Company’s share of
income or loss earned on investments in which the Company can
exercise significant influence but does not have control. Income
from unconsolidated investments includes income from ordinary
course operations of the underlying investment, gains on sale, fair
value gains and losses.
- "Pro-Rata" represents Kennedy Wilson's share calculated by
using our proportionate economic ownership of each asset in our
portfolio. Please also refer to the pro-rata financial data in our
supplemental financial information.
- "Property NOI" or "Property-level NOI" is a non-GAAP measure
calculated by deducting the Company's Pro-Rata share of rental and
hotel property expenses from the Company's Pro-Rata rental, hotel
and loans and other revenues. Please also see the reconciliation to
GAAP in the Company’s supplemental financial information included
in this release and also available at www.kennedywilson.com.
- "Real Estate Assets under Management" ("AUM") generally refers
to the properties and other assets with respect to which we provide
(or participate in) oversight, investment management services and
other advice, and which generally consist of real estate properties
or loans, and investments in joint ventures. Our AUM is principally
intended to reflect the extent of our presence in the real estate
market, not the basis for determining our management fees. Our AUM
consists of the total estimated fair value of the real estate
properties and other real estate related assets either owned by
third parties, wholly-owned by us or held by joint ventures and
other entities in which our sponsored funds or investment vehicles
and client accounts have invested. Committed (but unfunded) capital
from investors in our sponsored funds is not included in our AUM.
The estimated value of development properties is included at
estimated completion cost. The accuracy of estimating fair value
for investments cannot be determined with precision and cannot be
substantiated by comparison to quoted prices in active markets and
may not be realized in a current sale or immediate settlement of
the asset or liability (particularly given the ongoing
macroeconomic conditions such as, but not limited to, recent
adverse developments affecting regional banks and other financial
institutions, high inflation and central banks raising interest
rates to curtail high inflation continue to fuel recessionary
fears). Additionally, there are inherent uncertainties in any fair
value measurement technique, and changes in the underlying
assumptions used, including capitalization rates, discount rates,
liquidity risks, and estimates of future cash flows could
significantly affect the fair value measurement amounts. All
valuations of real estate involve subjective judgments, and the
actual market price of real estate can only be determined by
negotiation between independent parties in a sales
transaction.
- "Return on Equity" is a ratio calculated by dividing the net
cash distributions of an investment to Kennedy Wilson, after the
cost of leverage, if applicable, by the total cash contributions by
Kennedy Wilson over the lifetime of the investment.
- “Same property” refers to stabilized consolidated and
unconsolidated properties in which Kennedy Wilson has an ownership
interest during the entire span of both periods being compared.
This analysis excludes properties that during the comparable
periods (i) were acquired, (ii) were sold, (iii) are either under
development or undergoing lease up or major repositioning as part
of the Company’s asset management strategy, (iv) were investments
in which the Company holds a minority ownership position, and (v)
certain non-recurring income and expenses. The analysis only
includes Office, Multifamily and Hotel properties, where
applicable. To derive an appropriate measure of operating
performance across the comparable periods, the Company removes the
effects of foreign currency exchange rate movements by using the
reported period-end exchange rate to translate from local currency
into the U.S. dollar, for both periods. Amounts are calculated
using Kennedy Wilson’s ownership share in the Company’s
consolidated and unconsolidated properties. Management evaluates
the performance of the operating properties the Company owns and
manages using a “same property” analysis because the population of
properties in this analysis is consistent from period to period,
which allows management and investors to analyze (i) the Company’s
ongoing business operations and (ii) the revenues and expenses
directly associated with owning and operating the Company’s
properties and the impact to operations from trends in occupancy
rates, rental rates and operating costs. Same property metrics are
widely recognized measures in the real estate industry, however,
other publicly-traded real estate companies may not calculate and
report same property results in the same manner as the
Company.
Note about Non-GAAP and certain other
financial information included in this presentation
In addition to the results reported in accordance with U.S.
generally accepted accounting principles ("GAAP") included within
this presentation, Kennedy Wilson has provided certain information,
which includes non-GAAP financial measures (including Adjusted
EBITDA, Adjusted Net Income, Net Operating Income, and Adjusted
Fees, as defined above). Such information is reconciled to its
closest GAAP measure in accordance with the rules of the SEC, and
such reconciliations are included within this presentation. These
measures may contain cash and non-cash acquisition-related gains
and expenses and gains and losses from the sale of real-estate
related investments. Consolidated non-GAAP measures discussed
throughout this report contain income or losses attributable to
non-controlling interests. Management believes that these non-GAAP
financial measures are useful to both management and Kennedy
Wilson's shareholders in their analysis of the business and
operating performance of the Company. Management also uses this
information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a
substitute for any GAAP measures. Additionally, non-GAAP financial
measures as presented by Kennedy Wilson may not be comparable to
similarly titled measures reported by other companies. Annualized
figures used throughout this release and supplemental financial
information, and our estimated annual net operating income metrics,
are not an indicator of the actual net operating income that the
Company will or expects to realize in any period.
KW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101032948/en/
Daven Bhavsar, CFA Vice President of Investor Relations (310)
887-3431 dbhavsar@kennedywilson.com www.kennedywilson.com
Grafico Azioni Kennedy Wilson (NYSE:KW)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Kennedy Wilson (NYSE:KW)
Storico
Da Gen 2024 a Gen 2025
