Table of Contents 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 June 30, 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 jurisd ...

Financial Data and Key Metrics Changes - GAAP EPS was a loss of $0.04 per share compared to a loss of $0.02 in Q1 2018 [9] - Adjusted EBITDA was $120 million in the quarter, down from $123 million in Q1 2018 [9] - Adjusted net income totaled $54 million, compared to $63 million in Q1 2018 [9] - Estimated annual NOI of the real estate portfolio was $405 million, with 49% from the western U.S. and 51% from Europe [9][10] Business Line Data and Key Metrics Changes - Same property revenue and NOI grew by 3% across the global same property portfolio [11] - Excluding hotels, same property portfolio had a 5% NOI growth [11] - Multifamily portfolio saw same property revenue up 6% and NOI up 7% [12] - Southern California multifamily portfolio had an NOI growth of 10% [12] Market Data and Key Metrics Changes - The Irish multifamily portfolio had same property NOI growth of over 6% [14] - The Pacific Northwest same-store property portfolio had occupancies up 2% and NOI up almost 8% [14] - Office takeup in Dublin was the highest ever recorded in Q1 at over 1 million square feet [27] Company Strategy and Development Direction - Focus on growing NOI, investment management, and capital recycling [16] - Expecting to add $100 million of annualized NOI by the end of 2023 from current development projects [18] - Aiming to grow the multifamily portfolio in Dublin to 5,000 units [24] - Strategic asset sales to focus on high-quality investment opportunities [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals supporting rental growth in the multifamily portfolio [12] - The Irish economy is growing at a strong pace with GDP growth among the highest in the EU [27] - Anticipated strong performance in the hotel sector following renovations [61] Other Important Information - The company sold $323 million of assets during the quarter, generating $93 million in cash [41] - The company completed a EUR 261 million refinance on Capital Dock, achieving a low effective interest rate of 1.56% [44] Q&A Session Summary Question: Retail sector exposure and strategy - Management is both selling and adding value to retail assets, studying specific geographic markets for opportunities [47][49] Question: Impact of construction costs on development pipeline - Construction costs are manageable, but land prices have escalated, prompting caution in new acquisitions [51][52] Question: Revenue expectations for the Shelbourne hotel post-renovation - Management expects a return to strong performance with high occupancy rates and increased ADR [54][56] Question: Apartment pricing power in mountain states - Strong pricing power due to affordability and employment growth in markets like Boise and Reno [70][72] Question: Update on Dublin's apartment supply - There is a significant need for new housing, with estimates of 25,000 to 30,000 units needed annually [75] Question: Capital raising pipeline - The company has a robust pipeline for separate accounts and discretionary funds, with expectations for continued growth [80][82] Question: Future acquisition and disposition strategy - The company plans to prioritize high-quality assets and reduce the number of properties while increasing cash from sales [106]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 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) Delaware 26-0508760 ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Kennedy Wilson is a global real estate investment company focused on multifamily and office properties, operating through investment and fee-generating segments - The company's primary focus is on owning, operating, and investing in multifamily and office properties located in the Western United States, United Kingdom, and Ireland[13](index=13&type=chunk) - Kennedy Wilson's business is structured into two core, symbiotic units: KW Investments (capital investment) and KW Investment Management and Real Estate Services (IMRES, fee-generating services)[18](index=18&type=chunk)[19](index=19&type=chunk) Company Portfolio Snapshot (as of Dec 31, 2018) | Metric | Value | | :--- | :--- | | Total Portfolio Book Value | ~$11.3 billion | | Global Property Square Footage | ~53 million sq. ft. | | Multifamily Rental Units | 28,613 units | | Commercial Property Square Footage | 18.9 million sq. ft. | | Average Company Ownership Interest | ~63% | Five-Year Financial Performance Highlights (2014-2018) | Metric (in millions, except per share) | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $773.5 | $801.8 | $690.4 | $583.8 | $384.9 | | **Net Income to Common Shareholders** | $150.0 | $100.5 | $2.8 | $71.1 | $13.8 | | **Adjusted EBITDA** | $712.7 | $455.7 | $349.9 | $371.2 | $317.8 | | **Dividends Declared per Share** | $0.78 | $0.70 | $0.56 | $0.48 | $0.36 | | **Total Assets** | $7,357.1 | $7,724.8 | $7,656.6 | $7,595.6 | $6,297.6 | [Business Segments](index=6&type=section&id=Business%20Segments) The company operates through KW Investments for direct real estate and IMRES for fee-generating investment management and services - The KW Investments segment invests the company's capital in real estate assets, either wholly-owned or with equity partners, with an average ownership interest of approximately **63%** as of December 31, 2018[20](index=20&type=chunk) - The IMRES segment manages approximately **$16 billion** of Assets Under Management (AUM) and includes investment management, property services, brokerage, and auction/sales businesses[37](index=37&type=chunk)[36](index=36&type=chunk) - As of December 31, 2018, the company manages a total of **$2.2 billion** in fee-bearing capital through its investment management platform[40](index=40&type=chunk) - In December 2018, the company sold its research business, Meyers Research LLC, for **$48.0 million**, recognizing a gain of **$40.4 million**, and reinvested **$15.0 million** for an **11%** stake in a new partnership[47](index=47&type=chunk) [Industry Overview and Key Investment Markets](index=10&type=section&id=Industry%20Overview%20and%20Key%20Investment%20Markets) Key real estate markets in the Western U.S., UK, Ireland, and Spain demonstrated strong demand and economic resilience across multifamily and office sectors - **Western U.S.:** The market saw strong demand for multifamily housing, particularly suburban workforce housing, and moderate growth in the office sector fueled by tech companies[54](index=54&type=chunk)[55](index=55&type=chunk) - **United Kingdom:** Despite Brexit uncertainty, the UK economy remained resilient with near-record low unemployment. London's office market fundamentals are strong, though the retail sector is under pressure[59](index=59&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - **Ireland:** As Europe's best-performing economy for the fifth straight year, Ireland saw significant investment volume in 2018, with office and multifamily transactions representing nearly one-third of the total[64](index=64&type=chunk) - **Spain:** The retail sector continues to improve, driven by economic growth, decreased unemployment, and strong tourism, leading to positive foot traffic and institutional demand[69](index=69&type=chunk)[70](index=70&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces various business, company-specific, and stock ownership risks, including economic sensitivity, foreign operations, and capital market reliance [Risks Related to Our Business](index=15&type=section&id=Risks%20Related%20to%20Our%20Business) Business risks include sensitivity to economic conditions, real estate cyclicality, credit market volatility, and foreign operation risks, especially Brexit - The business is highly sensitive to general economic conditions and real estate market cyclicality, which can harm asset values, sales, and leasing activities[94](index=94&type=chunk) - Significant operations in the UK and Ireland (sourcing **57%** of 2018 revenues) expose the business to foreign market risks, including political instability, currency fluctuations, and regulatory changes[102](index=102&type=chunk) - The UK's withdrawal from the European Union (Brexit) creates significant uncertainty that could negatively affect global economic conditions, financial markets, and the UK real estate market, where **31%** of the company's consolidated investment account is located[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The company faces risks from its real estate development and redevelopment strategies, including potential delays, cost overruns, and failure to achieve sufficient occupancy or sales levels[100](index=100&type=chunk) [Risks Related to Our Company](index=22&type=section&id=Risks%20Related%20to%20Our%20Company) Company-specific risks include reliance on capital markets, loss of key personnel, foreign currency fluctuations, significant debt obligations, and tax law impacts - The company depends on capital markets to fund growth, and an inability to raise additional debt and equity could impede future prospects[138](index=138&type=chunk) - The loss of key personnel, particularly the CEO, could materially harm operations and relationships with lenders, partners, and clients[139](index=139&type=chunk) - Significant debt obligations impose operating and financial restrictions, including covenants for maximum leverage and fixed charge coverage ratios, which could limit the pursuit of business opportunities[147](index=147&type=chunk)[149](index=149&type=chunk) - The ability to use significant net operating loss carryforwards (**$60.7 million** federal, **$71.9 million** California, **$224.8 million** foreign) may be limited by ownership changes under tax laws[152](index=152&type=chunk) [Risks Related to Ownership of Our Common Stock](index=25&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Stock ownership risks include significant influence by directors and officers, potential dilution, stock price volatility, and anti-takeover provisions - As of December 31, 2018, directors, executive officers, and their affiliates owned approximately **14%** of the common stock, giving them significant influence over stockholder matters[158](index=158&type=chunk) - The company's staggered board and other anti-takeover provisions may entrench management and discourage takeover attempts that could be in the best interests of stockholders[161](index=161&type=chunk) - The company's dividend policy is subject to change at the discretion of the board of directors, and there is no assurance that the current dividend level will be maintained[164](index=164&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company's consolidated portfolio includes **10.3 million** sq. ft. commercial and **10,404** multifamily units, mainly in the Western U.S. and Europe Consolidated Properties by Region (as of Dec 31, 2018) | Property Type | Region | Sq. Feet / Units | Occupancy/Leased % | KW Ownership % | of Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | **Commercial** | Western U.S. | 1.9M sq. ft. | 96% | 84% | 15 | | | Europe | 8.4M sq. ft. | 97% | 94% | 138 | | **Total Commercial** | | **10.3M sq. ft.** | **97%** | **92%** | **153** | | **Multifamily** | Western U.S. | 9,642 units | 94% | 99% | 30 | | | Europe | 762 units | 97% | 100% | 3 | | **Total Multifamily** | | **10,404 units** | **94%** | **99%** | **33** | Commercial Lease Expiration Schedule (as of Dec 31, 2018) | Year of Expiration | Rentable Square Feet (M) | Annualized Base Rent (M) | % of Total Rent | | :--- | :--- | :--- | :--- | | 2019 | 1.4 | $26.4 | 12% | | 2020 | 1.0 | $15.6 | 7% | | 2021 | 0.6 | $21.9 | 10% | | 2022 | 1.4 | $28.2 | 13% | | 2023 | 1.1 | $23.0 | 11% | | Thereafter | 4.4 | $80.5 | 36% | [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings arising from ordinary business, none of which are currently considered material - The company is involved in routine legal proceedings arising from the ordinary course of business, none of which are expected to be material[173](index=173&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE, with **$0.78** per share dividends paid and an active **$250 million** share repurchase program in 2018 - In 2018, the company declared and paid total dividends of **$0.78** per share[177](index=177&type=chunk) - On March 20, 2018, the board authorized a new share repurchase program for up to **$250 million** of common stock[181](index=181&type=chunk) - During the year ended December 31, 2018, the company repurchased and retired **9.7 million** shares of its common stock at a weighted average price of **$17.94** per share[182](index=182&type=chunk) [Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes five-year historical financial data (2014-2018), highlighting revenue growth, increased net income, and strong Adjusted EBITDA Selected Historical Financial Data (2014-2018) | (In millions, except per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $773.5 | $801.8 | $690.4 | $583.8 | $384.9 | | **Net income to common shareholders** | $150.0 | $100.5 | $2.8 | $71.1 | $13.8 | | **Adjusted EBITDA** | $712.7 | $455.7 | $349.9 | $371.2 | $317.8 | | **Total assets** | $7,357.1 | $7,724.8 | $7,656.6 | $7,595.6 | $6,297.6 | | **Total equity** | $1,431.2 | $1,577.5 | $2,343.1 | $2,865.1 | $3,043.9 | - Investment Management and Real Estate Services Assets under Management (IMRES AUM) increased by **4%** from **$15.7 billion** at year-end 2017 to **$16.3 billion** at year-end 2018, driven by new acquisitions and value appreciation[189](index=189&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 2018 financial condition and operations, highlighting increased net income and Adjusted EBITDA, robust liquidity, and a significant development pipeline [Results of Operations](index=36&type=section&id=Results%20of%20Operations) In 2018, GAAP net income increased to **$150.0 million** and Adjusted EBITDA rose **56%** to **$712.7 million**, driven by real estate and business sales Financial Results Comparison (2018 vs. 2017) | Metric (in millions) | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | **GAAP Net Income to Common Shareholders** | $150.0 | $100.5 | +49.3% | | **Adjusted EBITDA** | $712.7 | $455.7 | +56.4% | | **Total Revenue** | $773.5 | $801.8 | -3.5% | | **Gain on sale of real estate, net** | $371.8 | $226.7 | +64.0% | | **Gain on sale of business** | $40.4 | $0.0 | N/A | - Adjusted Fees remained flat year-over-year at **$86.3 million** in 2018 compared to **$86.6 million** in 2017. A significant increase in performance fees (**$36.6 million** vs **$8.7 million**) was offset by a decrease in base management fees, primarily because the company no longer receives fees from KWE after its full acquisition[242](index=242&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk) - For 2017 vs. 2016, Adjusted EBITDA increased **30%** to **$455.7 million**, driven by higher realized gains on investments and an increased ownership stake in KWE[269](index=269&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$988.0 million** available, a **$1.1 billion** development pipeline, and positive cash flow from operations - As of December 31, 2018, the company had potential liquidity of approximately **$988.0 million**, consisting of **$488.0 million** in cash and **$500.0 million** available under its lines of credit[310](index=310&type=chunk) - The company has a development and redevelopment pipeline with an estimated total cost for its share of **$1.1 billion**. As of year-end 2018, **$321.0 million** had been incurred, with an estimated **$730 million** remaining to complete the projects[312](index=312&type=chunk) Cash Flow Summary (2016-2018) | (In millions) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $93.1 | $73.0 | $102.9 | | **Net cash provided by (used in) investing activities** | $593.1 | $(70.2) | $(286.7) | | **Net cash (used in) provided by financing activities** | $(528.8) | $(565.3) | $419.8 | - As of December 31, 2018, the company has unfulfilled capital commitments totaling **$99.3 million** to its unconsolidated investments[323](index=323&type=chunk) [Indebtedness and Related Covenants](index=52&type=section&id=Indebtedness%20and%20Related%20Covenants) Total borrowings were **$5.5 billion** as of year-end 2018, comprising mortgage debt, senior unsecured notes, and KWE bonds, all in compliance with covenants Contractual Cash Obligations (as of Dec 31, 2018) | (In millions) | Total | Less than 1 year | 1 - 3 years | 4 - 5 years | After 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total borrowings** | $5,458.8 | $266.2 | $1,280.0 | $1,720.8 | $2,191.8 | | **Operating leases** | $6.9 | $2.2 | $4.0 | $0.6 | $0.1 | | **Ground leases** | $106.8 | $1.2 | $3.5 | $2.3 | $99.8 | | **Total** | **$5,572.5** | **$269.6** | **$1,287.5** | **$1,723.7** | **$2,291.7** | - The company has **$1.15 billion** in aggregate principal of **5.875%** Senior Notes due 2024[342](index=342&type=chunk) - The company's **$700 million** credit facility includes a **$500 million** revolving line of credit and a **$200 million** term loan. As of year-end 2018, the revolver was fully available and **$75.0 million** was outstanding on the term loan[349](index=349&type=chunk)[350](index=350&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are interest rate and foreign currency fluctuations, with **84%** fixed-rate debt and significant foreign investment account hedging - As of December 31, 2018, **84%** of the company's consolidated debt is fixed rate, mitigating exposure to interest rate volatility[365](index=365&type=chunk) - A hypothetical **100-basis point** increase in interest rates would lead to a **$5.5 million** increase in annual interest expense on current consolidated mortgages[366](index=366&type=chunk) - Approximately **49%** of the company's investment account is invested in foreign currencies. The company hedges its book equity exposure, with **92%** of euro and **100%** of GBP gross asset carrying value hedged as of year-end 2018[371](index=371&type=chunk) - A **5%** adverse movement in foreign exchange rates against the U.S. Dollar would decrease the company's net asset value by approximately **$13.3 million**[374](index=374&type=chunk) [Financial Statements and Supplementary Data](index=59&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2018, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Financial Statements](index=63&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **$7.36 billion** in total assets, **$773.5 million** in revenue, and **$150.0 million** net income for 2018 Consolidated Balance Sheet Summary (as of Dec 31, 2018) | (In millions) | Amount | | :--- | :--- | | **Total Assets** | **$7,357.1** | | Cash and cash equivalents | $488.0 | | Real estate, net | $5,702.5 | | Unconsolidated investments | $859.9 | | **Total Liabilities** | **$5,925.9** | | Mortgage debt | $2,950.3 | | KW unsecured debt | $1,202.0 | | KWE unsecured bonds | $1,260.5 | | **Total Equity** | **$1,431.2** | Consolidated Statement of Income Summary (Year Ended Dec 31, 2018) | (In millions, except per share data) | Amount | | :--- | :--- | | **Total Revenue** | **$773.5** | | Rental | $514.6 | | Hotel | $155.7 | | **Total Expenses** | **$766.4** | | Gain on sale of real estate, net | $371.8 | | **Net Income** | **$212.1** | | Net income attributable to common shareholders | $150.0 | | **Diluted Earnings per share** | **$1.04** | [Notes to Consolidated Financial Statements](index=69&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, 2018 acquisitions, unconsolidated investments, and specifics on mortgage debt and unsecured bonds - The company adopted ASC 606 (Revenue from Contracts with Customers) on January 1, 2018. The adoption resulted in performance fees being reclassified from revenue to 'Income from unconsolidated investments' on a retrospective basis[436](index=436&type=chunk)[441](index=441&type=chunk) - During 2018, the company acquired consolidated properties with a total purchase price allocation of **$354.2 million**, primarily in multifamily and commercial assets in the Western U.S. and Ireland[502](index=502&type=chunk) - The company's investment in unconsolidated joint ventures increased from **$519.3 million** in 2017 to **$859.9 million** in 2018, primarily due to the formation of the AXA joint venture for Irish multifamily assets[520](index=520&type=chunk)[523](index=523&type=chunk) - As of December 31, 2018, the company had **$2.95 billion** in mortgage debt with a weighted average interest rate of **3.40%**[569](index=569&type=chunk)[572](index=572&type=chunk) [Controls and Procedures](index=120&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2018, with an unqualified audit opinion - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[704](index=704&type=chunk) - Based on an evaluation using the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2018[706](index=706&type=chunk) PART III [Directors, Executive Compensation, and Corporate Governance](index=121&type=section&id=Items%2010-14) Information for Items 10-14, including directors, executive compensation, and corporate governance, is incorporated by reference from the forthcoming proxy statement - Information regarding Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accounting Fees is incorporated by reference from the company's forthcoming definitive proxy statement[712](index=712&type=chunk)[713](index=713&type=chunk)[714](index=714&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=122&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the annual report, including corporate governance documents and certifications - This section contains the index of all financial statements, schedules, and exhibits filed with the annual report, including consents and certifications[719](index=719&type=chunk)[720](index=720&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2018, GAAP EPS was $0.21 per share, down from $0.69 a year ago. For the full year, GAAP EPS reached a record $1.04, a 25% increase from $0.83 in 2017 [9] - The company achieved a record annual adjusted EBITDA of $713 million, which is 56% higher than the $456 million produced in 2017. Adjusted net income totaled a record $397 million in 2018, compared to $243 million last year, marking a 63% increase [10] Business Line Data and Key Metrics Changes - Same property revenue grew by 4% and NOI increased by 7% across the global same property portfolio for the quarter. For the year, same property revenue and NOI grew by 5% [11] - The market rate multi-family portfolio saw same property revenue up 5% and NOI growth of 6%, outperforming other public real estate companies that averaged 2.5% NOI growth for the quarter [11] - The Mountain State portfolio, which includes properties in Salt Lake City, Boise, Seattle, and Reno, experienced same property revenue and NOI growth of over 7% each [12] Market Data and Key Metrics Changes - The stabilized assets had an estimated annual NOI of $407 million, with 48% from the Western U.S. and 52% from Europe, primarily in Ireland and the UK [10] - In Europe, the company completed 195 commercial leasing transactions across 3.1 million square feet, adding $13 million of annual rent, representing a 12% increase on previous rents [18] Company Strategy and Development Direction - The company focuses on three key strategic initiatives: growing property NOI, expanding investment management and fee business, and executing capital recycling and asset sale programs [19] - The development pipeline includes over 4,100 market rate and affordable multifamily units, 2.9 million square feet of commercial property, and a 150-room hotel, expected to add $100 million to annual NOI by the end of 2023 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising significant new fee-bearing capital in 2019 without meaningful changes in overhead, resulting in high-margin growth [48] - The Irish economy is performing strongly with an estimated GDP growth of almost 9% for 2018 and a forecast of 4.5% for 2019, supporting sustained job creation [43] Other Important Information - The company sold $313 million of assets in the quarter, with its share being $264 million. Europe accounted for 86% of asset sales [50] - The company returned a record $290 million of capital to shareholders in 2018 through dividends and share repurchases, equating to approximately $2 per share [52] Q&A Session Summary Question: Will rent controls in London impact the business? - Management does not expect rent controls to impact their single asset in London, as the multifamily market is undersupplied [60][61] Question: Will asset sales reduce leverage? - Management indicated that asset sales will not increase leverage points, as they plan to pay down existing debt [68] Question: Is the strong apartment same-store growth sustainable? - Management aims to outperform the market, targeting 4% revenue growth assuming market growth remains around 2% [75] Question: How is cost inflation affecting development in Dublin? - Management noted that they have fixed-price contracts with contractors, mitigating risks of cost overruns [80] Question: What is the outlook for cap rate spreads in different regions? - Management highlighted attractive cap rate spreads in the U.S., Ireland, and the UK, with strong job growth supporting real estate investments [98]