32% Quarterly Growth in Fee-Bearing
Capital
Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading
global real estate investment company with $25 billion in AUM that
owns, operates, and invests in real estate both on its own and
through its investment management platform, today reported results
for Q2-2023:
“In Q2 we achieved significant growth in our investment
management business and made considerable progress at all of our
developments, including completing Kona Village in Hawaii and
advancing our Dublin apartment developments that are set to deliver
over 750 units in Q3,” said William McMorrow, Chairman and CEO of
Kennedy Wilson. “Our off-market transaction with Pacific Western
Bank marked an important milestone in the growth of our investment
management business, demonstrating our strength in identifying
opportunities during periods of dislocation. With the addition of
the experienced construction lending team from Pacific Western
Bank, we are excited to expand our real estate debt business,
further enhancing our ability to pursue equity and debt
opportunities across all parts of the real estate capital structure
and positioning ourselves for substantial future growth.”
Financial Results
Q2
YTD
(Amounts in millions, except per share
data)
2023
2022
2023
2022
GAAP Results
GAAP Net Income (Loss) to Common
Shareholders
$
39.0
($
9.0
)
($
1.8
)
$
25.8
Per Diluted Share
0.28
(0.07
)
(0.01
)
0.19
Non-GAAP Results
Adjusted EBITDA
$
195.1
$
118.4
$
286.0
$
278.5
Adjusted Net Income
86.0
41.4
91.3
126.8
- Adjusted EBITDA Increases by 65% to $195 million (vs. $118
million in Q2-22):
- KW's share of recurring property NOI, loan income and fees
totaled $131 million in Q2-23 (vs. $130 million in Q2-22)
- KW's share of gains from the sale of real estate, changes in
fair values and performance allocation totaled $71 million in Q2-23
(vs $24 million in Q2-22) and includes the following:
- Realized gains on sale from real estate, net totaled $94
million in Q2-23 (vs $16 million from Q2-22)
- Unrealized losses in fair value and net accrued performance
allocation totaled a net loss of $23 million in Q2-23 (vs. a net
gain of $8 million in Q2-22).
- Other income totaled $24 million in Q2-23 (vs $4 million in
Q2-22) and primarily related to the change in the value of the
Company's interest rate hedging derivative contracts during the
quarter.
- $4.1 Billion Loan Acquisition from Pacific Western Bank:
The Company and certain controlled affiliates of its partner,
Fairfax Financial Holdings Limited (collectively "Fairfax"),
acquired 65 construction loans, including four loans acquired in
July, totaling $4.1 billion in loan commitments from Pacific
Western Bank ("PacWest") (collectively, the "Loan Portfolio"). The
Company's investment in the Loan Portfolio was 5%, and the
acquisition increased the Company's Fee-Bearing Capital by $1.9
billion in Q2-23. The PacWest employees that originated and managed
the loan portfolio joined Kennedy Wilson in Q3.
- The Loan Portfolio was acquired for $2.1 billion, including
$2.3 billion in outstanding principal balance and $1.8 billion in
future funding obligations
- The Loan Portfolio has an 8.5% weighted average interest rate,
a 1.7 year weighted average maturity, and is secured by
approximately 80% multifamily and student-housing properties.
- The Company received an arrangement fee of $8 million ($7.3
million recognized in Q2-23) in connection with this
transaction.
- Record Levels of Estimated Annual NOI and Fee-Bearing
Capital:
Est. Annual NOI To KW
($ in millions)
Fee-Bearing Capital
($ in billions)
As of Q2-22
$
479
$
5.3
As of Q4-22
$
491
$
5.9
As of Q1-23
$
496
$
6.0
Gross acquisitions and loan
investments
11
2.0
Gross dispositions and loan repayments
(10
)
—
Assets stabilized/unstabilized
1
—
Operations
(2
)
—
FX and other(1)
3
(0.1
)
Total as of Q2-23
$
499
$
7.9
(1) See further discussion of foreign
currency hedging strategy below
- Multifamily Same Property Performance(1) :
Q2 - 2023 vs. Q2- 2022
YTD - 2023 vs. YTD -
2022
Occupancy
Revenue
Expenses
NOI
Occupancy
Revenue
Expenses
NOI
Multifamily - Market Rate
(1.1)%
2.9%
5.3%
1.8%
(0.9)%
4.5%
6.8%
3.4%
Multifamily - Affordable
(0.2)%
9.3%
14.7%
6.9%
(0.8)%
8.7%
16.0%
5.4%
Total
(0.9)%
3.9%
6.7%
2.6%
(0.9)%
5.1%
8.2%
3.7%
(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 74% of its U.S. market-rate same-property portfolio,
generated same-property revenue growth of 5.6% and NOI growth of
6.3% in Q2-23 (vs. Q2-22).
- California: Same Property results in
California continue to be impacted by higher delinquencies related
to the expiration of governmental rental assistance programs. The
Company received $1.3 million and $2.1 million in Q2-22 and YTD-22,
respectively, in rental assistance payments. This compares to
$68,000 and $135,000 in Q2-23 and YTD-23, respectively.
- Office Same Property Performance(1):
Q2-2023
vs. Q2-2022
YTD -
2023 vs. YTD - 2022
Occupancy
Revenue
Expenses
NOI
Occupancy
Revenue
Expenses
NOI
Office
1.2%
(0.9)%
7.5%
(2.2)%
1.3%
1.8%
0.2%
2.1%
(1) Excludes minority-held investments and
assets under going development or lease-up
- Development and Lease-Up Portfolio Update:
- In Q2-23, the Company completed construction of the 82-acre
Kona Village resort, which opened on July 1, 2023. The Company also
stabilized the 180-unit Springview by Vintage community and has
started leasing at initial phases of its Dovetail and Oxbow
Mountain West apartment communities, which are expected to total
508 units at completion.
- The development and lease-up portfolio is expected to add $99
million of Estimated Annual NOI, $69 million of which is expected
to stabilize by YE-24.
- The Company expects to fund its share of remaining development
costs primarily with cash from non-core asset sales and proceeds
from property-level financing.
Investment Activity
- $2.0 billion in Gross New Investments ($99 million at
share):
- Co-Investment Acquisitions: In addition to the Loan
Portfolio acquisition from PacWest Bank discussed above, the
Company completed $106 million in loan originations (KW share
2.5%).
- $392 million in Gross Dispositions and Loan Repayments ($205
million at share):
- Consolidated Portfolio:
- Multifamily Dispositions: Sold a 49% interest in two
previously wholly-owned market-rate multifamily properties totaling
790 units for a gross valuation of $228 million ($112 million at
share) into an existing joint-venture platform managed by the
Company. The properties are located in Las Vegas, Nevada, and
Auburn, Washington. The Company also sold a previously wholly-owned
293-unit multifamily property in Reno, Nevada into its Vintage
Housing joint-venture for a gross valuation of $49 million.
- Further Progress On Non-Core Asset Sales: Sold four UK
retail assets and one office asset in Italy for $16 million.
- Co-Investment Dispositions: Sold $54 million in
industrial and other assets from its funds and joint-ventures. KW's
average ownership interest in these assets was 29%. The Company
also had loan repayments totaling $155 million (KW share 6%).
Investment Management
- 32% Quarterly Growth in Fee-Bearing Capital to $7.9
billion: Record quarterly growth in Fee-Bearing Capital with
approximately $3.3 billion in additional non-discretionary capital
with certain strategic partners that is currently available for
investment:
- 86% Growth in Debt Investment Platform: The Company's
debt investment platform grew to $6.5 billion driven by the Loan
Portfolio acquisition from PacWest (as discussed above), resulting
in 86% growth from Q1-23. The Company has a 6% weighted average
ownership in this platform, which totals $6.5 billion of
outstanding loans (including $1.9 billion of future funding
commitments) and $4.3 billion of Fee-Bearing Capital at
quarter-end.
Balance Sheet and
Liquidity
- Cash and Line of Credit Availability: As of June 30,
2023, Kennedy Wilson had a total of $387 million(1) in cash and
cash equivalents and $149 million drawn on its $500 million
revolving credit facility. In Q2-23, the Company paid down its line
of credit by $99 million.
- 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 5.5 years as of June 30, 2023.
Approximately 99% 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 June 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 2.4 years.
- Preferred Stock and Warrants: As previously announced,
the Company received a $200 million investment from affiliates of
Fairfax. Under the terms of the investment, Fairfax purchased $200
million in cumulative perpetual preferred stock carrying a fixed
6.00% annual dividend rate and is callable by Kennedy Wilson at any
time. Additionally, Fairfax acquired 7-year warrants for
approximately 12.3 million common shares with an initial strike
price of $16.21 per share.
Footnotes
(1)
Represents consolidated cash and includes $53 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 $494 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, August
3. 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 1027682.
The webcast will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ovP6xzdV.
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. We own, operate, and invest in real estate
through our balance sheet and through our investment management
platform across the Western United States, United Kingdom, and
Ireland. We primarily focus on multifamily and office properties as
well as industrial and debt investments in our investment
management business. For further information on Kennedy Wilson,
please visit www.kennedywilson.com.
Kennedy-Wilson Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(Dollars in millions)
June 30, 2023
December 31,
2022
Assets
Cash and cash equivalents
$
387.0
$
439.3
Accounts receivable
40.0
40.8
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $927.5
and $882.2)
4,982.0
5,188.1
Unconsolidated investments (including
$2,174.7 and $2,093.7 at fair value)
2,320.9
2,238.1
Other assets
219.9
216.1
Loan purchases and originations
244.1
149.4
Total assets
$
8,193.9
$
8,271.8
Liabilities
Accounts payable
$
16.2
$
16.2
Accrued expenses and other liabilities
(including $303.4 and $303.7 of deferred tax liabilities)
642.4
658.2
Mortgage debt
2,887.0
3,018.0
KW unsecured debt
1,931.3
2,062.6
KWE unsecured bonds
516.4
506.4
Total liabilities
5,993.3
6,261.4
Equity
Cumulative perpetual preferred stock
790.5
592.5
Common stock
—
—
Additional paid-in capital
1,710.5
1,679.5
Retained earnings
53.4
122.1
Accumulated other comprehensive loss
(400.0
)
(430.1
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
2,154.4
1,964.0
Noncontrolling interests
46.2
46.4
Total equity
2,200.6
2,010.4
Total liabilities and equity
$
8,193.9
$
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 June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
Rental
$
106.6
$
109.3
$
213.2
$
213.5
Hotel
15.5
12.7
26.1
19.2
Investment management fees
19.1
11.0
30.1
22.3
Property services fees
0.6
0.4
0.9
0.8
Loans and other
4.7
2.7
8.4
5.0
Total revenue
146.5
136.1
278.7
260.8
Income (loss) from unconsolidated
investments
Principal co-investments
6.3
39.4
22.7
117.6
Performance allocations
(7.7
)
(8.7
)
(18.4
)
18.5
Total (loss) income from unconsolidated
investments
(1.4
)
30.7
4.3
136.1
Gain on sale of real estate,
net
89.0
11.9
108.2
13.8
Expenses
Rental
38.7
36.4
75.3
72.1
Hotel
9.7
7.6
17.6
11.9
Compensation and related (including $7.3,
$7.3, $14.4, $14.4 of share-based compensation)
37.0
33.8
67.6
69.9
Performance allocation compensation
(1.1
)
(2.0
)
0.5
9.8
General and administrative
8.7
9.4
17.1
17.3
Depreciation and amortization
40.1
43.3
79.5
86.6
Total expenses
133.1
128.5
257.6
267.6
Interest expense
(66.0
)
(53.2
)
(128.3
)
(103.7
)
Loss on early extinguishment of debt
(1.7
)
(1.1
)
(1.6
)
(1.1
)
Other income
24.3
3.6
21.3
9.4
Income (loss) before provision for
income taxes
57.6
(0.5
)
25.0
47.7
Provision for income taxes
(10.3
)
(0.4
)
(6.4
)
(8.6
)
Net income (loss)
47.3
(0.9
)
18.6
39.1
Net loss (income) attributable to
noncontrolling interests
0.1
(0.3
)
(4.1
)
(0.2
)
Preferred dividends
(8.4
)
(7.8
)
(16.3
)
(13.1
)
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
39.0
$
(9.0
)
$
(1.8
)
$
25.8
Basic earnings (loss) per share
Earnings (loss) per share
$
0.28
$
(0.07
)
$
(0.01
)
$
0.19
Weighted average shares outstanding
139,389,170
136,840,417
138,674,109
136,828,876
Diluted earnings (loss) per
share
Earnings (loss) per share
$
0.28
$
(0.07
)
$
(0.01
)
$
0.19
Weighted average shares outstanding
139,545,944
136,840,417
138,674,109
137,115,950
Dividends declared per common
share
$
0.24
$
0.24
$
0.48
$
0.48
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
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
39.0
$
(9.0
)
$
(1.8
)
$
25.8
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
88.7
67.7
170.2
128.9
Loss on early extinguishment of debt
1.7
1.1
1.6
1.1
Depreciation and amortization
39.7
43.1
78.7
86.6
Provision for income taxes
10.3
0.4
6.6
8.6
Preferred dividends
8.4
7.8
16.3
13.1
Share-based compensation
7.3
7.3
14.4
14.4
Adjusted EBITDA
$
195.1
$
118.4
$
286.0
$
278.5
(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
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
39.0
$
(9.0
)
$
(1.8
)
$
25.8
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
39.7
43.1
78.7
86.6
Share-based compensation
7.3
7.3
14.4
14.4
Adjusted Net Income
$
86.0
$
41.4
$
91.3
$
126.8
Weighted average shares outstanding for
diluted
139,545,944
136,840,417
138,674,109
137,115,950
(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 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, and excludes
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 our
management’s discretionary use, as it does not remove all non-cash
items (such as acquisition-related gains) 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.
Cap rates set forth in this presentation only includes 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 $4.3
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 general
partner, special limited partner or asset manager of Kennedy
Wilson's co-investments it manages based on the cumulative
performance of the fund 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.
- "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 properties in which Kennedy Wilson
has an ownership interest during the entire span of both periods
being compared. The same property information presented throughout
this report is shown on a cash basis and excludes non-recurring
expenses. This analysis excludes properties that are either under
development or undergoing lease up as part of our asset management
strategy.
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/20230802766333/en/
Daven Bhavsar, CFA Vice President of Investor Relations (310)
887-3431 dbhavsar@kennedywilson.com www.kennedywilson.com
Kennedy Wilson (NYSE:KW)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Kennedy Wilson (NYSE:KW)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024