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 Q1-2024:
Financial Results
(Amounts in millions, except per share
data)
Q1
GAAP
Results
2024
2023
GAAP Net Income (Loss) to Common
Shareholders
$
26.9
$
(40.8
)
Per Diluted Share
0.19
(0.30
)
(Amounts in millions)
Q1
Non-GAAP
Results
2024
2023
Adjusted EBITDA
$
203.2
$
90.9
Adjusted Net Income
70.5
5.3
Adjusted EBITDA -
Key Components (at KW share)
Baseline EBITDA: Property NOI, loan
income, and inv. mgt fees
(net of compensation and general and
administrative expenses)
$
103.1
$
95.5
Realized gain on the sale of real
estate
108.3
15.0
Change in the fair value of the
Co-investment portfolio
(10.1
)
(10.9
)
Other
income/(loss)
1.9
(8.7
)
Adjusted EBITDA
$
203.2
$
90.9
"We had an excellent quarter as reflected in the significant
growth of our adjusted net income and the continued growth of our
investment management business, which reported a 94% increase in
fee income," said William McMorrow, Chairman and CEO of Kennedy
Wilson. "At the same time, we completed several large multifamily
construction projects on schedule and on budget, which will
contribute in a meaningful way to our future net operating income.
We also continued to recycle capital from non-core asset sales that
will be used to grow our core businesses and reduce leverage on our
balance sheet."
Investment Management
Business
- 94% Growth in Investment Management Fees: Investment
Management fees grew by 94% to $21 million in Q1-24 (vs Q1-23)
driven by higher levels of Fee-Bearing Capital and $719 million of
new originations from the Company's Debt Investment Platform.
- Fee-Bearing Capital Grew to a Record $8.6 billion in
Q1-24:
- In addition to the $8.6 billion in Fee-Bearing Capital, the
Company has an incremental $4.3 billion in non-discretionary
capital with certain strategic partners that is currently available
for investment. Additionally, the Company's debt investment
platform has approximately $2.2 billion in future funding
commitments.
- Debt Investment Platform Grew By 10% to $7.3 billion in
Q1-24:
- Q1-24 Investment Activity: Originated $719 million in
new construction loans, completed $210 million in additional
fundings on existing loans, and realized $56 million in
repayments.
- Debt Platform grew to $7.3 billion in loans (including $5.1
billion in outstanding loans and $2.2 billion of future funding
commitments) in which the Company has an average ownership interest
of 5%.
- The Debt Investment Platform totals $4.8 billion of Fee-Bearing
Capital at quarter-end with $3 billion of new origination
capacity.
Real Estate Investment
Activity
- $94 million in Gross Acquisitions ($7 million at share):
- Co-Investment Acquisitions: Completed $94 million in
gross real estate acquisitions, including $90 million invested in
two multifamily properties in the Pacific Northwest. The Company
had a 8% ownership interest in these Q1-24 acquisitions.
- $357 million in Gross Dispositions ($346 million at
share):
- Consolidated Portfolio: Sold non-core hotel, office, and
retail assets for a total of $329 million. The dispositions
generated $236 million of cash to KW and a gain on sale of $106
million (net of $14 million of impairments).
- Co-Investment Portfolio: Sold $24 million of non-income
producing real estate investments. KW's average ownership in these
assets was 55%.
Portfolio Update
- Estimated Annual NOI of $464 million and Fee-Bearing Capital
of $8.6 billion:
- Potential for an incremental $89-$94 million in Estimated
Annual NOI to come from development and lease-up portfolio and an
incremental $6.5 billion of potential Fee-Bearing Capital to come
from announced platforms and follow-on funding (before any asset
sales or loan repayments):
Est. Annual NOI To KW
($ in millions)
Fee-Bearing Capital
($ in billions)
As of Q1-23
$
496
$
6.0
As of Q4-23
$
492
$
8.4
Gross acquisitions and loan
investments
1
0.2
Gross dispositions and loan
repayments1
(28
)
—
Operations
2
—
FX and other
(3
)
—
Total as of Q1-24
$
464
$
8.6
1Primarily relates to non-core asset sales
that produced $236 million in cash to KW and $106 million in net
gains
- Development and Lease-up Portfolio To Add $89-$94 million in
Estimated Annual NOI:
- Near Term Stabilization Expectation: $25 million to
stabilize by YE-24, $39 million in 2025
- Multifamily Delivers 814 Units: Completed construction
of the 172-unit 38° North Phase II community in Northern
California, 240-unit Dovetail multifamily project in the Mountain
West, 170-unit Vintage at Anacapa Canyon senior living community in
Southern California, and the 232-unit Cornerstone multifamily
community in Dublin.
- Market-Rate Apartments on Track to Stabilize: The
Company is 68% leased across its four recently completed
multifamily communities, Coopers Cross Resi and Grange West in
Dublin, 38° North Phase II in Northern California, and Dovetail in
the Mountain West (as of May 3, 2024), totaling 1,170 units, with
lease-up performing ahead of business plan. These assets are
expected to stabilize in Q2/Q3-24 and add $17 million in Estimated
Annual NOI.
- Vintage: The Vintage affordable housing platform has
1,604 multifamily units under development or in lease-up, which
upon completion is expected to add $8 million to Estimated Annual
NOI and grow the Vintage platform to approximately 12,000
stabilized units.
- Multifamily Same Property Performance(1) :
Q1 - 2024 vs. Q1 -
2023
Avg Occupancy % Q1-24
Occupancy
Revenue
Expenses
NOI (Net Effective)
Multifamily - Market Rate
93.9
%
0.1
%
3.0
%
4.3
%
2.4
%
Multifamily - Affordable
94.6
%
(2.0
)%
4.0
%
11.6
%
0.2
%
Total
94.1
%
(0.4
)%
3.2
%
5.5
%
2.1
%
(1) Excludes minority-held
investments and assets under going development or lease-up.
Balance Sheet and
Liquidity
- Cash and Line of Credit Availability: As of March 31,
2024, Kennedy Wilson had a total of $542 million(1) in cash and
cash equivalents and $248 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 4.5% per annum and a
weighted average maturity of 5.2 years as of March 31, 2024.
Approximately 98% of the Company's debt is either fixed or hedged
with interest rate hedges. The Company's interest rate hedges have
a weighted average maturity of 1.4 years.
- Dividend: Declared a quarterly dividend of $0.12 per
share (or $0.48 per share annually) to common shareholders of
record as of June 28, 2024, with a payment date of July 5th, 2024.
The resized dividend rate will allow the Company to retain $66
million per year, strengthening the Company's ability to grow its
investment management business, repurchase securities, and reduce
leverage.
- Share Repurchases: The Company repurchased 1.1 million
shares in Q1-24 at a weighted average price of $8.76. As of the
Q1-24, the Company has used $385 million of its $500 million share
repurchase authorization since 2018.
Subsequent Events
The Company paid down its line of credit by $60 million in April
2024.
________________________________________________________________________________________
Footnotes
(1)
Represents consolidated cash ($342 million
of which is in foreign currencies of the EUR or the GBP) and
includes $105 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 $637
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, May 9.
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 8726858.
The webcast will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=7dzFxkA0.
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 in the United States, United Kingdom, and Ireland. We
primarily focus on multifamily 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)
March 31, 2024
December 31,
2023
Assets
Cash and cash equivalents
$
541.9
$
313.7
Accounts receivable
42.5
57.3
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $906.0
and $957.8)
4,603.5
4,837.3
Unconsolidated investments (including
$1,917.6 and $1,927.0 at fair value)
2,059.6
2,069.1
Other assets
182.4
187.5
Loan purchases and originations
250.4
247.2
Total assets
$
7,680.3
$
7,712.1
Liabilities
Accounts payable
$
15.5
$
17.9
Accrued expenses and other liabilities
(including $252.2 and $234.4 of deferred tax liabilities)
562.8
597.8
Mortgage debt
2,773.1
2,840.9
KW unsecured debt
2,032.5
1,934.3
KWE unsecured bonds
511.5
522.8
Total liabilities
5,895.4
5,913.7
Equity
Cumulative perpetual preferred stock
789.9
789.9
Common stock
—
—
Additional paid-in capital
1,706.5
1,718.6
Retained (deficit) earnings
(347.1
)
(349.0
)
Accumulated other comprehensive loss
(406.7
)
(404.4
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,742.6
1,755.1
Noncontrolling interests
42.3
43.3
Total equity
1,784.9
1,798.4
Total liabilities and equity
$
7,680.3
$
7,712.1
Kennedy-Wilson Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
(Dollars in millions, except
share amounts and per share data)
Three Months Ended March
31,
2024
2023
Revenue
Rental
$
97.4
$
106.6
Hotel
9.3
10.6
Investment management fees
21.3
11.0
Loans
8.1
3.7
Other
0.3
0.3
Total revenue
136.4
132.2
(Loss) income from unconsolidated
investments
Principal co-investments
9.7
16.4
Performance allocations
(16.4
)
(10.7
)
Total (loss) income from unconsolidated
investments
(6.7
)
5.7
Gain on sale of real estate,
net
106.4
19.2
Expenses
Rental
37.2
36.6
Hotel
7.6
7.9
Compensation and related (including $5.2
and $7.1 of share-based compensation)
27.6
30.6
Performance allocation compensation
(5.5
)
1.6
General and administrative
8.3
8.4
Depreciation and amortization
38.9
39.4
Total expenses
114.1
124.5
Interest expense
(64.7
)
(62.3
)
Loss on early extinguishment of debt
0.3
0.1
Other income (loss)
6.8
(3.0
)
Income (loss) before provision for
income taxes
64.4
(32.6
)
(Provision for) benefit from income
taxes
(26.7
)
3.9
Net income (loss)
37.7
(28.7
)
Net loss (income) attributable to
noncontrolling interests
0.1
(4.2
)
Preferred dividends
(10.9
)
(7.9
)
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
26.9
$
(40.8
)
Basic earnings (loss) per share
Earnings (loss) per share
$
0.19
$
(0.30
)
Weighted average shares outstanding
138,472,579
137,949,018
Diluted earnings (loss) share
Earnings (loss) per share
$
0.19
$
(0.30
)
Weighted average shares outstanding
138,628,139
137,949,018
Dividends declared per common
share
$
0.24
$
0.24
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
March 31,
2024
2023
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
26.9
$
(40.8
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
95.2
81.5
Loss on early extinguishment of debt
(0.3
)
(0.1
)
Depreciation and amortization
38.4
39.0
Provision for (benefit from) income
taxes
26.9
(3.7
)
Preferred dividends
10.9
7.9
Share-based compensation
5.2
7.1
Adjusted EBITDA
$
203.2
$
90.9
(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
March 31,
2024
2023
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
26.9
$
(40.8
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
38.4
39.0
Share-based compensation
5.2
7.1
Adjusted Net Income
$
70.5
$
5.3
Weighted average shares outstanding for
diluted
138,628,139
137,949,018
(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, 2023, 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, and performance
fees included in unconsolidated investments. Our management uses
Adjusted fees to analyze our investment management and 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 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.
- "Baseline EBITDA" represents total consolidated revenues, total
consolidated rental and hotel expenses, and KW’s share of net
operating income from its unconsolidated investments, excluding
share-based compensation and net of non-controlling interest.
- "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 discussed in this report only include
data from income-producing properties. The Company calculates cap
rates based on information that is supplied to it 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 the
Company's financial statements prepared in accordance with GAAP. In
addition, cap rates represent historical performance and are not a
guarantee of future net operating income ("NOI"). Properties for
which a cap rate is discussed 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 2024, the NOI represents estimated Year
1 NOI from our original underwriting. Estimated year 1 NOI for
properties purchased in 2024 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. 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.
- "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 the
Company provides (or participates in) oversight, investment
management services and other advice, and which generally consist
of real estate properties or loans, and investments in joint
ventures. AUM is principally intended to reflect the extent of the
Company's presence in the real estate market, not the basis for
determining management fees. 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 the
Company or held by joint ventures and other entities in which its
sponsored funds or investment vehicles and client accounts have
invested. 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, elevated
levels of inflation and interest rates, banks' ability and
willingness to lend, recent adverse developments affecting regional
banks and other financial institutions, currency fluctuations and
ongoing military conflicts around the world, continue to fuel
recessionary fears and create volatility in Kennedy Wilson's
business results and operations). Recently, there has also been a
lack of liquidity in the capital markets as well as limited
transactions which has had an impact on the inputs associated with
fair values. 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.
- "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.
Please also see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations - Certain Non-GAAP Measures and
Reconciliations” for a reconciliation of “same property” results to
the most comparable measure reported under GAAP.
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/20240508062903/en/
Investor Relations Daven Bhavsar, CFA (310) 887-6400
dbhavsar@kennedywilson.com
Corporate Headquarters 151 S. El Camino Drive Beverly
Hills, CA 90212 www.kennedywilson.com
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