Kennedy Wilson(US:KW)2023-02-22 19:42Financial Data and Key Metrics Changes - Adjusted EBITDA for 2022 was $592 million, reflecting an increase in recurring NOI and fees by $76 million, offset by lower gains from asset sales [6][9] - Consolidated revenues grew by 19% in 2022, while compensation and related costs declined by 17% [9] - GAAP EPS totaled $0.16 per share in Q4 and $0.47 for the year, with adjusted net income of $265 million or $1.91 per share for 2022 [35] Business Line Data and Key Metrics Changes - The investment management platform is the fastest-growing part of the business, with a focus on debt and logistics platforms [8] - The multifamily portfolio saw same-property NOI growth of 11% in 2022, with strong performance in the Mountain West and Pacific Northwest regions [12][38] - The debt platform completed $240 million of new floating rate originations in Q4, with an average spread of 420 basis points and an average LTV of 55% [41] Market Data and Key Metrics Changes - In the UK, in-place rents are currently 33% under market, with further rent growth projected due to low vacancy levels [17] - The European office same-property NOI grew by 10%, driven by improved occupancy rates [19] - The logistics portfolio saw a 32% increase in rents, with occupancy remaining strong at 98% [43] Company Strategy and Development Direction - The company aims to generate $96 million of additional NOI from its development and lease-up portfolio when assets are stabilized [33] - The focus remains on high-quality, amenity-rich communities in markets with job growth [8] - The company is being patient regarding new investments, particularly in the current lending environment [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth based on their track record and global relationships [21] - The company is not concerned about the tech sector pullback in Dublin, citing strong job growth in the region [51] - Management noted that they are seeing early signs of rent growth returning in January and February [60] Other Important Information - The company has a solid handle on near-term maturities, with only 4% of debt maturing this year [10] - The investment management platform has an incremental $3.5 billion of non-discretionary capital to deploy across announced platforms [18] Q&A Session Summary Question: Impact of tech pullback in Dublin - Management noted that the tech sector added 35,000 new jobs from the start of the pandemic to 2022, with only a minor staffing adjustment of about 1,000 jobs [51] Question: Investment in U.S. office properties - Management indicated they are being patient and are not currently looking to invest in U.S. office assets, focusing instead on suburban properties [54] Question: Remaining development expenses and funding - The company expects to fund remaining development costs primarily through non-core asset sales [56] Question: Competitive advantage in the debt platform - Management highlighted their established relationships and reputation for being easy to work with as key competitive advantages in the debt space [59] Question: Multifamily market performance - Management reported that market rents have started to increase again in January and February, with strong occupancy levels [60]