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Kennedy Wilson(KW) - 2020 Q2 - Earnings Call Transcript
2020-08-10 01:47
Financial Data and Key Metrics Changes - In Q2 2020, the company reported adjusted EBITDA of $73 million and adjusted net income of $12 million, with year-to-date adjusted EBITDA of $185 million and adjusted net income of $57 million, primarily impacted by a slowdown in transactional volume [9][10][14] - The company maintained a strong liquidity position with $788 million in cash and $300 million available on its line of credit, totaling $4 billion in discretionary purchasing power [14] Business Line Data and Key Metrics Changes - The multi-family and office portfolio accounted for 81% of estimated annual NOI, with strong rent collection and high occupancy rates [8][15] - The multi-family portfolio consists of 30,000 units globally, with 88% of NOI coming from suburban assets, achieving 98% rent collection in Q2 [16][17] - The global office portfolio had a weighted average occupancy of 95% and high rent collections of 96% in Q2, benefiting from single-tenant properties and suburban locations [18][19] Market Data and Key Metrics Changes - The company observed a 68% decline in transaction volumes across all property types in Q2 due to the pandemic, but anticipates increased transactional activity in the latter half of the year [7][8] - In Ireland, the company noted significant demand for multi-family deals, with €500 million in transactions occurring in the quarter [35] Company Strategy and Development Direction - The company is focused on growing its investment management platform, having added $200 million to fee-bearing capital in Q2, representing a 6% growth from Q1 and 17% year-to-date [10] - A new $2 billion debt platform was launched to target first mortgage loans secured by high-quality real estate, with a robust pipeline of $200 million in origination opportunities [11][12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third and fourth quarters, citing strong rent collections and a robust leasing environment despite the pandemic [8][15] - The company anticipates an increase in debt acquisition opportunities over the next 6 to 12 months as financial institutions increase loan loss provisions [12][41] Other Important Information - The Shelbourne hotel reopened on June 29, 2020, and has been outperforming its competitive set since reopening, with a strong booking outlook for 2021 [21][22] - Leasing activity across the commercial and multi-family portfolio remains robust, with 900,000 square feet leased in Q2 and an additional 650,000 square feet in the pipeline [23][24] Q&A Session Summary Question: Can you talk about where you're finding transactions given your volumes are lower? - Management noted that they had no transactions in escrow at the onset of the pandemic and are seeing active interest in their European assets, particularly in lower-rise suburban office buildings and multi-family assets [32][33] Question: What are your thoughts on the multi-family business and potential impacts from stimulus expiration? - Management indicated that their multi-family properties are in strong markets with high-quality tenants, and they do not foresee significant changes in rent collections despite potential stimulus impacts [42][43] Question: Can you provide insights on the debt investments for the new fund? - The company is focusing on transitional opportunities, providing financing for completed properties in lease-up phases, filling a gap left by banks retreating from construction financing [60][62] Question: How do you view the capital allocation priorities going forward? - Management emphasized maintaining liquidity and continuing construction activities, with a focus on finding good risk-adjusted investments rather than rushing to deploy capital [50][51] Question: What is the outlook for the lease-up at Clancy Quay? - The lease-up at Clancy Quay is exceeding expectations, with demand significantly higher than budgeted, indicating strong market interest [71][72]
Kennedy Wilson(KW) - 2020 Q2 - Quarterly Report
2020-08-06 20:18
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Table of Contents (State or other jurisdiction of incorporation or organization) 151 S El Camino Drive Beverly Hills, CA 90212 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-33 ...
Kennedy Wilson(KW) - 2020 Q1 - Earnings Call Transcript
2020-05-10 14:48
Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q1 2020 Earnings Conference Call May 7, 2020 10:00 AM ET Company Participants Daven Bhavsar - VP, IR William McMorrow - Chairman & CEO Mary Ricks - President & Director Matt Windisch - EVP Conference Call Participants Anthony Paolone - JPMorgan Chase & Co. Sheila McGrath - Evercore ISI Thomas Hennessy - Deutsche Bank James Feldman - Bank of America Merrill Lynch Operator Good morning, and welcome to the Kennedy-Wilson First Quarter 2020 Earnings Conference Call and We ...
Kennedy Wilson(KW) - 2020 Q1 - Quarterly Report
2020-05-08 20:22
Table of Contents TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 Or Commission file number 001-33824 Kennedy-Wilson Holdings, Inc. (Exact name of Registrant as specified in its charter) (State or other jur ...
Kennedy Wilson(KW) - 2019 Q4 - Annual Report
2020-02-28 21:42
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-33824 Kennedy-Wilson Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdi ...
Kennedy Wilson(KW) - 2019 Q4 - Earnings Call Transcript
2020-02-27 21:10
Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q4 2019 Earnings Conference Call February 27, 2020 10:00 AM ET Company Participants Daven Bhavsar - Vice President, Investor Relations William McMorrow - Chief Executive Officer Mary Ricks - President Matt Windisch - Executive Vice President Justin Enbody - Chief Financial Officer. Conference Call Participants Tony Paolone - JPMorgan Derek Johnston - Deutsche Bank James Feldman - Bank of America Alan Parsow - Elkhorn Partners Operator Good day and welcome to the Kenne ...
Kennedy Wilson(KW) - 2019 Q3 - Earnings Call Transcript
2019-11-03 09:13
Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q3 2019 Earnings Conference Call October 31, 2019 10:00 AM ET Company Participants Daven Bhavsar - Vice President, Investor Relations William McMorrow - Chief Executive Officer Mary Ricks - President Matt Windisch - Executive Vice President Conference Call Participants Anthony Paolone - JP Morgan Mitchell Germain - JMP Group LLC Sheila McGrath - Evercore Inc. Tom Hennessy - Deutsche Bank Operator Good day and welcome to the Kennedy-Wilson Third Quarter 2019 Earnings C ...
Kennedy Wilson(KW) - 2019 Q3 - Quarterly Report
2019-10-31 20:19
PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements of Kennedy-Wilson Holdings, Inc. as of September 30, 2019, and for the three and nine-month periods then ended [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$6,935.8 million** from **$7,381.8 million** at year-end 2018, primarily due to reduced real estate assets Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $385.8 | $488.0 | | Real estate, net | $5,075.4 | $5,702.5 | | Unconsolidated investments | $1,110.2 | $859.9 | | **Total Assets** | **$6,935.8** | **$7,381.8** | | **Liabilities** | | | | Mortgage debt | $2,644.7 | $2,950.3 | | KW unsecured debt | $1,280.7 | $1,202.0 | | KWE unsecured bonds | $1,207.6 | $1,260.5 | | **Total Liabilities** | **$5,660.1** | **$5,950.6** | | **Total Equity** | **$1,275.7** | **$1,431.2** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2019, total revenues decreased to **$427.4 million**, resulting in lower net income attributable to common shareholders Statement of Operations Highlights (in millions, except per share data) | Metric | Q3 2019 | Q3 2018 | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $143.0 | $185.8 | $427.4 | $593.7 | | Gain on sale of real estate, net | $6.3 | $39.4 | $252.4 | $304.2 | | Net Income | $19.4 | $12.9 | $162.2 | $179.2 | | Net Income Attributable to KWH | $20.7 | $12.1 | $66.2 | $119.3 | | Diluted EPS | $0.15 | $0.09 | $0.47 | $0.83 | | Dividends declared per share | $0.21 | $0.19 | $0.63 | $0.57 | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the nine months ended September 30, 2019, total comprehensive income attributable to common shareholders decreased to **$71.1 million** from **$103.0 million** Comprehensive Income Highlights (in millions) | Metric | Q3 2019 | Q3 2018 | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $19.4 | $12.9 | $162.2 | $179.2 | | Other Comprehensive (Loss) Income | $(8.3) | $(7.6) | $13.9 | $(11.2) | | Comprehensive Income | $11.1 | $5.3 | $176.1 | $168.0 | | Comprehensive Income Attributable to KWH | $13.4 | $5.4 | $71.1 | $103.0 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$39.5 million** for the nine months ended September 30, 2019, leading to a **$102.2 million** net decrease in cash Cash Flow Summary (in millions) | Activity | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(39.5) | $91.8 | | Net cash provided by investing activities | $106.0 | $512.6 | | Net cash used in financing activities | $(179.2) | $(520.8) | | **Net change in cash and cash equivalents** | **$(102.2)** | **$68.1** | - During the nine months ended September 30, 2019, the Company deconsolidated interests in several Dublin properties, recorded as a non-cash investing activity, increasing unconsolidated investments by **$125.5 million**[48](index=48&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and breakdowns of financial statement line items, including lease accounting and real estate activities - Effective January 1, 2019, the Company adopted the new lease standard ASU 2016-02 (Topic 842), recognizing a right-of-use asset and corresponding lease liability of **$13.6 million**[74](index=74&type=chunk)[77](index=77&type=chunk) - During the nine months ended September 30, 2019, the company recognized a net gain on sale of real estate of **$252.3 million**, largely from the deconsolidation of Dublin properties into a joint venture with AXA, resulting in a gain of **$205.6 million**[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - As of September 30, 2019, the company had unfulfilled capital commitments of **$39.8 million** to three unconsolidated joint ventures, primarily closed-end funds[110](index=110&type=chunk) - In October 2019, the Company announced a **$300 million** perpetual preferred equity investment from Eldridge Industries at a **5.75%** annual dividend rate and an initial conversion price of **$25.00** per share[231](index=231&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's real estate investment business model, financial results, liquidity, and capital resources, including key performance metrics and development pipeline [Overview and Business Segments](index=57&type=section&id=Overview%20and%20Business%20Segments) Kennedy Wilson operates as a global real estate investment company with two core segments: KW Investments and KW Investment Management and Real Estate Services (IMRES) - The company's primary business involves owning, operating, and investing in multifamily and office properties across the Western U.S., U.K., and Ireland[234](index=234&type=chunk) - The company operates through two symbiotic business segments: **KW Investments** (capital investment) and **KW Investment Management and Real Estate Services (IMRES)** (fee-generating services)[237](index=237&type=chunk)[238](index=238&type=chunk) - As of September 30, 2019, the company holds investments in **28,173 multifamily units** and **192 commercial properties** totaling over **20.8 million square feet**[241](index=241&type=chunk)[245](index=245&type=chunk) - The IMRES segment manages approximately **$16.2 billion** of Assets under Management (AUM) and has **$2.5 billion** in fee-bearing capital[259](index=259&type=chunk)[261](index=261&type=chunk) [Financial Results Comparison](index=65&type=section&id=Financial%20Results%20Comparison) GAAP net income and Adjusted EBITDA showed mixed results for Q3 and the nine-month period, with same-property NOI demonstrating positive performance Q3 Financial Comparison (in millions) | Metric | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | GAAP Net Income to KWH | $20.7 | $12.1 | | Adjusted EBITDA | $142.5 | $141.9 | Nine-Month Financial Comparison (in millions) | Metric | 9 Months 2019 | 9 Months 2018 | | :--- | :--- | :--- | | GAAP Net Income to KWH | $66.2 | $119.3 | | Adjusted EBITDA | $450.0 | $535.0 | - Same-property performance for Q3 2019 was strong, with multifamily NOI increasing **6.5%** and commercial NOI increasing **4.8%** year-over-year[278](index=278&type=chunk) - Adjusted Fees for Q3 2019 increased to **$27.5 million** from **$20.0 million** in Q3 2018, driven by higher performance fees[285](index=285&type=chunk) [Liquidity and Capital Resources](index=80&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through consolidated cash and credit lines, manages a significant development pipeline, and has an active share repurchase plan - As of September 30, 2019, the company had **$385.8 million** in consolidated cash and **$425.0 million** available under its lines of credit[347](index=347&type=chunk) - The company has a development pipeline with an estimated total cost of **$1.1 billion**, of which **$812.0 million** remains to be funded, with **$406 million** expected to be funded by the company's own cash[352](index=352&type=chunk)[357](index=357&type=chunk) - The company has **12 unstabilized assets** requiring an estimated **$85.3 million** in costs to complete stabilization[359](index=359&type=chunk)[360](index=360&type=chunk) - A **$250 million** share repurchase plan is in effect, with **$67.9 million** remaining available for repurchases as of September 30, 2019[363](index=363&type=chunk) [Certain Non-GAAP Measures and Reconciliations](index=87&type=section&id=Certain%20Non-GAAP%20Measures%20and%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income, to their most directly comparable GAAP measures Reconciliation of Net Income to Adjusted EBITDA (in millions) | Period | Net Income | Adjusted EBITDA | | :--- | :--- | :--- | | **Q3 2019** | $19.4 | $142.5 | | **Q3 2018** | $12.9 | $141.9 | | **9 Months 2019** | $162.2 | $450.0 | | **9 Months 2018** | $179.2 | $535.0 | Reconciliation of Net Income to Adjusted Net Income (in millions) | Period | Net Income | Adjusted Net Income | | :--- | :--- | :--- | | **Q3 2019** | $19.4 | $73.9 | | **Q3 2018** | $12.9 | $74.1 | | **9 Months 2019** | $162.2 | $232.8 | | **9 Months 2018** | $179.2 | $308.2 | [Quantitative and Qualitative Disclosures About Market Risk](index=92&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and foreign currency fluctuations, which are managed through debt structure and hedging strategies - As of September 30, 2019, **86%** of the company's consolidated debt is fixed rate, mitigating exposure to interest rate volatility[404](index=404&type=chunk) - A hypothetical **100-basis point** increase in interest rates would result in a **$19.0 million** increase in annual interest expense on current consolidated mortgages[407](index=407&type=chunk) - Approximately **47%** of the company's investment account is in foreign currencies, with **93%** of euro-denominated and **104%** of GBP-denominated gross asset values hedged[412](index=412&type=chunk)[413](index=413&type=chunk) - A **5%** change in foreign exchange rates against the U.S. Dollar would change the company's net asset value by approximately **$5.3 million to $5.4 million**[416](index=416&type=chunk) [Controls and Procedures](index=94&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The principal executive and financial officers concluded that the company's disclosure controls and procedures are effective[417](index=417&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter[418](index=418&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=95&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, none of which are considered material to its financial statements - The company is not currently involved in any material legal proceedings[421](index=421&type=chunk) [Risk Factors](index=95&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 were reported - No material changes from the risk factors disclosed in the 2018 Form 10-K were reported[422](index=422&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity, including shares repurchased during the quarter and remaining availability under the current plan Share Repurchase Activity (Q3 2019) | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2019 | 85,304 | $21.49 | | August 2019 | — | $— | | September 2019 | — | $— | | **Total** | **85,304** | **$21.49** | - As of September 30, 2019, **$67.9 million** remained available for repurchase under the company's **$250 million** stock repurchase program authorized in March 2018[423](index=423&type=chunk) [Defaults Upon Senior Securities](index=95&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period [Exhibits](index=95&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including certifications from the Chief Executive Officer and Chief Financial Officer
Kennedy Wilson(KW) - 2019 Q1 - Earnings Call Presentation
2019-08-04 18:15
KENNEDY WILSON Q1-19 Investor Update (As of March 31, 2019) Disclaimer/Forward-Looking Statements Statements made by us in this presentation and in other reports and statements released by us that are not historical facts constitute "forwardlooking 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 for-ward-looking statements are necessarily estimates reflecting the judgment of our senior manageme ...
Kennedy Wilson(KW) - 2019 Q2 - Earnings Call Transcript
2019-08-03 15:30
Financial Data and Key Metrics Changes - For Q2 2019, GAAP EPS was $0.36 per share, down from $0.77 per share in Q2 2018 [8] - Adjusted EBITDA decreased to $187 million from $271 million in Q2 2018 [8] - Adjusted net income fell to $105 million compared to $171 million in Q2 2018 [8] - The quarter experienced $68 million in fewer gains compared to Q2 2018, but it was still one of the strongest quarters in the last decade [9] Business Line Data and Key Metrics Changes - Global same property revenue increased by 4% and NOI rose by 6% [10] - The Western U.S. multifamily portfolio saw same-store revenue up 5% and NOI up 8% [11] - The Mountain State portfolio reported same-store revenue growth of 7% and NOI growth of 9% [12] - The commercial portfolio had revenue growth of 5% and NOI growth of 6% on a same property basis [17] Market Data and Key Metrics Changes - The Greater Salt Lake area had an unemployment rate of 2.8%, the lowest in 12 years, with significant job growth [13] - The Pacific Northwest saw NOI growth of over 7% [15] - In Ireland, the multifamily sector's same property NOI increased by 5%, with a significant undersupply in the market [16] Company Strategy and Development Direction - The company focuses on three key strategic initiatives: growing NOI at the property level, expanding investment management, and executing capital recycling and asset sale programs [20] - The company aims to complete strategic value-add CapEx projects to grow NOI organically [22] - The development pipeline includes 4,300 multifamily units and 2.9 million square feet of commercial property [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic activity in the Mountain States and the Pacific Northwest, expecting continued strong growth [14][15] - The company anticipates an increase in transaction levels for the second half of the year, with over $800 million in investment transactions in the pipeline [50] - Management noted a strong demand for multifamily assets in the Western U.S. driven by job growth and low interest rates [79] Other Important Information - The company ended the quarter with $404 million in cash and $450 million available under its line of credit [51] - The weighted average interest rate on debt is 3.9%, with only 3% maturing by the end of 2019 [51] Q&A Session Summary Question: Concerns about rising development costs - Management indicated that they have not faced significant issues with construction costs or timing, thanks to their experienced construction management teams [56] Question: Details on asset sales and sectors involved - Management confirmed that asset sales would span multiple sectors, including multifamily and office assets, generating significant cash [58] Question: Insights on fundraising and new relationships - Management noted success in both new and existing relationships, particularly in the insurance sector [59] Question: Transaction environment and deal flow - Management highlighted the efficiency of their acquisition teams and the importance of being nimble in the current market [62] Question: Opportunities in the Mountain States - Management stated that multifamily will remain the dominant product type in the Mountain States, with some office assets also being considered [67] Question: Update on the Shelbourne hotel performance - Management reported a positive trend in high-end leisure bookings and group inquiries following the completion of renovations [76] Question: Cap rates in Dublin market - Management indicated that Dublin Class A office yields are holding at about 4%, with significant spreads compared to their development yields [78] Question: Interest in multifamily portfolio in the Western U.S. - Management noted high demand for multifamily assets, with competitive bidding observed during recent sales [79] Question: General and administrative expenses reduction - Management explained that they have consciously reduced payroll and G&A costs, stabilizing their workforce without significant additions [82]