Kennedy-Wilson Holdings, Inc.
(NYSE: KW) today reported results for 2Q-2019:
2Q
YTD
(Amounts in millions, except per
share data)
2019
2018
2019
2018
GAAP Results
GAAP Net Income to Common
Shareholders
$
50.8
$
109.6
$
45.5
$
107.2
Per Diluted Share
0.36
0.77
0.33
0.74
Non-GAAP Results
Adjusted EBITDA
$
187.4
$
270.5
$
307.5
$
393.1
Adjusted Net Income
105.1
170.9
158.9
234.1
“Our company benefits from several growth initiatives, and our
second quarter results exemplify how our existing business lines
build on one another to continue driving strong performance across
our global platform,” said William McMorrow, chairman and CEO of
Kennedy Wilson. “The organic NOI growth from our high quality,
well-located assets was boosted by favorable market conditions and
the completion of our value-add initiatives. In addition, we are
making great progress on our development projects which, once
completed, we expect will deliver approximately $105 million of
additional NOI to Kennedy Wilson. Finally, we see tremendous
opportunity in expanding our investment management platform that
will continue to grow our recurring fee income.”
2Q Highlights
- Same Property Performance: NOI up 6% Driven by Strength in
Multifamily Portfolio
2Q - 2019 vs. 2Q -
2018
YTD - 2019 vs. YTD -
2018
Occupancy
Revenue
NOI
Occupancy
Revenue
NOI
Multifamily - Market Rate
1.0
%
5.3
%
7.3
%
1.0
%
5.4
%
7.2
%
Multifamily - Affordable
(0.2
)%
4.1
%
5.0
%
(0.2
)%
3.4
%
4.0
%
Commercial
(0.1
)%
5.1
%
6.1
%
(0.8
)%
4.5
%
4.9
%
Hotel
N/A
(0.9
)%
(1.1
)%
N/A
(4.2
)%
(15.3
)%
Total
4.1
%
5.9
%
3.5
%
4.7
%
- Platform with AXA Grows to Over $1.5 Billion in Assets:
AXA Investment Managers - Real Assets ("AXA") acquired a 50%
interest in Capital Dock and State Street from the other investors
in the projects. Kennedy Wilson will continue to act as asset
manager for the entire mixed-use campus.
- KW increased its ownership in Capital Dock (from 42.5% to 50%)
which was fully funded by the $14 million in fees generated by the
transaction and will result in $2 million added to KW's Estimated
Annual NOI.
- 2Q-19 Adjusted EBITDA of $187 million (vs. $271 million in
2Q-18):
- KW's share of property NOI totaled $102 million in 2Q-19 (vs.
$112 million in 2Q-18). The decrease is primarily due to the sale
of assets from 3Q-18 through 2Q-19, resulting in a $10 million
decrease of property NOI.
- KW's share of gains, including the sale of real estate and net
fair-value gains, totaled $102 million in 2Q-19, a decrease of $68
million from 2Q-18. The gains in 2Q-19 primarily relate to the
Capital Dock / State Street transaction.
- For 2Q-19, changes in foreign currency rates decreased Adjusted
EBITDA by $6 million (or 3%) compared to foreign currency rates as
of 2Q-18.
- In-Place Estimated Annual NOI of $410
Million; Targeting an Additional $105 Million from Development and
Leasing:
- Stabilized Leavesden Park, an office property in the UK, and
South Side Seattle and Crossings at Virginia, two multifamily
properties in the Western U.S., which added $8 million to KW's
Estimated Annual NOI.
- Targeting an additional $39 million of Estimated Annual NOI to
be in place by YE-2021, and an additional $65-$70 million by
YE-2023
- Fee-Bearing Capital Growth: The Company raised an
additional $0.3 billion in Fee-Bearing Capital offset by a decrease
of $0.2 billion due to asset dispositions. Fee-Bearing Capital
totaled $2.4 billion as of June 30, 2019.
2Q-19 Investment
Activity
- Capital Recycling: Invested $117 million of capital,
allocating 53% to new investments, 41% to capex and development
initiatives, and 6% to share repurchases. For the year, the Company
has invested $195 million of capital, allocating 53% to capex, 39%
to new investments, and 8% to share repurchases.
- Acquisitions: Completed $179 million of acquisitions, of
which the Company's share was $102 million.
- Dispositions: Completed $339 million of dispositions, of
which the Company's share was $70 million and produced a
weighted-average IRR of 19% to KW. Key dispositions in the quarter
included:
- Washington Office Portfolio Sale: Kennedy Wilson Fund V
("Fund V") sold a portfolio of three office assets in Greater
Seattle for $252 million. Kennedy Wilson has a 12% ownership
interest in Fund V. The dispositions generated a weighted-average
IRR of 30% to KW. Fund V maintained a 5% ownership interest in
these assets, and Kennedy Wilson will continue to act as asset
manager.
- Retail Sales: The Company and its equity partners sold
four retail properties in the Western U.S. and two retail assets in
the UK for $72 million. Kennedy Wilson had a 44% ownership in these
properties. The dispositions generated an IRR of 14% to KW.
Balance Sheet
- $854 Million in Cash and Lines of Credit: As of June 30,
2019, Kennedy Wilson had total cash of $404 million(1) and $450
million of capacity on its revolving line of credit.
- Global Debt Profile: Kennedy Wilson's debt had a
weighted average interest rate of 3.9% per annum and a weighted
average remaining maturity of 5.3 years, with 80% of total debt (at
share) fixed and another 14% hedged against increases in interest
rates.
- Share Repurchase Program(2): In 2019, Kennedy Wilson has
repurchased and retired 0.7 million shares at a weighted-average
price of $21.66 per share, including 0.3 million shares repurchased
in 2Q-19 at a weighted-average price of $21.92 per share. Since the
$250 million share repurchase plan was authorized on March 20,
2018, the Company has repurchased and retired 9.9 million shares at
a weighted-average price of $18.15 per share, with $70 million
remaining as of June 30, 2019.
Subsequent Events
The Company and its equity partners are also under separate
binding contracts to sell three multifamily properties in the
Western U.S. at an aggregate sales price of approximately $204
million, subject to customary closing conditions. The Company has
an average ownership interest of 57% in these properties. The
Company currently expects to receive a total of approximately $76
million in net proceeds from these transactions with an estimated
gain on sale of $59 million. There can be no assurance that the
Company will complete such transactions under contract. The Company
expects to utilize the proceeds from sale to acquire real estate
through 1031 tax-deferred exchanges.
The Company and its equity partners are under binding contracts
to purchase four commercial properties in the Western U.S. and one
mixed-use property in Ireland for $612 million, subject to
customary closing conditions. The Company expects to have an
average ownership of approximately 34% in these properties.
Footnotes
(1) Includes $42.1 million of restricted cash, which is included
in cash and cash equivalents.
(2) Future purchases under the program may be made in the open
market, in privately negotiated transactions, through the net
settlement of the company's restricted stock grants or otherwise,
with the amount and timing of the repurchases dependent on market
conditions and subject to the Company's discretion.
Conference Call and Webcast
Details
Kennedy Wilson will hold a live conference call and webcast to
discuss results at 7:00 a.m. PT/ 10:00 a.m. ET on Thursday, August
1. The direct dial-in number for the conference call is (866)
575-6539 for U.S. callers and (786) 789-4783 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 (888) 203-1112
for U.S. callers and (719) 457-0820 for international callers. The
passcode for the replay is 4238051.
The webcast will be available at:
https://services.choruscall.com/links/kw1908010zebQhI9.html. 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 both
on our own and through our investment management platform. We focus
on multifamily and office properties located in the Western U.S.,
UK, and Ireland. For further information on Kennedy Wilson, please
visit www.kennedywilson.com.
Kennedy-Wilson Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(Dollars in millions)
June 30, 2019
December 31, 2018
Assets
Cash and cash equivalents
$
404.0
$
488.0
Accounts receivable
51.1
56.6
Real estate and acquired in place lease
values, net of accumulated depreciation and amortization
5,163.0
5,702.5
Unconsolidated investments (including
$835.8 and $662.2 at fair value)
1,073.8
859.9
Other assets
304.3
274.8
Total assets
$
6,996.2
$
7,381.8
Liabilities
Accounts payable
$
17.5
$
24.1
Accrued expenses and other liabilities
505.6
513.7
Mortgage debt
2,675.3
2,950.3
KW unsecured debt
1,254.4
1,202.0
KWE unsecured bonds
1,253.1
1,260.5
Total liabilities
5,705.9
5,950.6
Equity
Common stock
—
—
Additional paid-in capital
1,747.3
1,744.6
Accumulated deficit
(71.8
)
(56.4
)
Accumulated other comprehensive loss
(429.3
)
(441.5
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,246.2
1,246.7
Noncontrolling interests
44.1
184.5
Total equity
1,290.3
1,431.2
Total liabilities and equity
$
6,996.2
$
7,381.8
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,
2019
2018
2019
2018
Revenue
Rental
$
112.0
$
134.9
$
227.8
$
269.2
Hotel
22.8
37.8
37.8
74.1
Sale of real estate
—
32.8
1.1
42.2
Investment management, property services
and research fees
8.9
12.3
17.7
22.4
Total revenue
143.7
217.8
284.4
407.9
Expenses
Rental operating
33.3
39.7
74.3
81.3
Hotel operating
15.7
29.4
30.3
60.2
Cost of real estate sold
—
31.4
1.2
39.8
Commission and marketing
0.7
2.1
1.7
3.5
Compensation and related (includes $7.2,
$8.8, 17.6 and $18.7 of share-based compensation, respectively)
37.0
44.9
72.3
84.5
General and administrative
10.9
13.5
21.8
24.9
Depreciation and amortization
46.2
51.5
95.3
107.2
Total expenses
143.8
212.5
296.9
401.4
Income from unconsolidated investments,
net of depreciation and amortization
5.9
10.9
47.6
36.9
Gain on sale of real estate, net
211.2
236.8
246.1
264.8
Acquisition-related expenses
(1.1
)
(0.2
)
(1.9
)
(0.2
)
Interest expense
(55.7
)
(67.2
)
(111.0
)
(126.1
)
Other income (loss)
1.9
11.1
(0.6
)
11.2
Income before (provision for) benefit
from income taxes
162.1
196.7
167.7
193.1
Provision for income taxes
(20.9
)
(29.4
)
(24.9
)
(26.8
)
Net income
141.2
167.3
142.8
166.3
Net (income) attributable to
noncontrolling interests
(90.4
)
(57.7
)
(97.3
)
(59.1
)
Net income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
50.8
$
109.6
$
45.5
$
107.2
Basic earnings per share(1)
Income per basic
$
0.36
$
0.77
$
0.33
$
0.74
Weighted average shares outstanding for
basic
139,623,658
141,483,445
139,395,574
144,696,059
Diluted earnings per share
Income per diluted
$
0.36
$
0.77
$
0.33
$
0.74
Weighted average shares outstanding for
diluted
140,377,218
142,707,159
140,547,023
145,872,617
Dividends declared per common
share
$
0.21
$
0.19
$
0.42
$
0.38
(1) Includes impact of the Company
allocating income and dividends per basic and diluted share to
participating securities.
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,
2019
2018
2019
2018
Net income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
50.8
$
109.6
$
45.5
$
107.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
61.4
70.2
123.7
132.2
Depreciation and amortization
47.1
52.5
95.8
108.2
Provision for income taxes
20.9
29.4
24.9
26.8
Share-based compensation
7.2
8.8
17.6
18.7
Adjusted EBITDA
$
187.4
$
270.5
$
307.5
$
393.1
(1) See Appendix for reconciliation of
Kennedy Wilson's Share amounts.
The table below provides a detailed
reconciliation of net income to Adjusted EBITDA.
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
Net income
$
141.2
$
167.3
$
142.8
$
166.3
Non-GAAP adjustments:
Add back:
Interest expense
55.7
67.2
111.0
126.1
Kennedy Wilson's share of interest expense
included in unconsolidated investments
7.4
6.1
15.9
11.2
Depreciation and amortization
46.2
51.5
95.3
107.2
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
2.2
3.1
4.3
6.6
Provision for income taxes
20.9
29.4
24.9
26.8
Share-based compensation
7.2
8.8
17.6
18.7
EBITDA attributable to noncontrolling
interests(1)
(93.4
)
(62.9
)
(104.3
)
(69.8
)
Adjusted EBITDA
$
187.4
$
270.5
$
307.5
$
393.1
(1) EBITDA attributable to noncontrolling
interest includes $1.3 million and $2.1 million of depreciation and
amortization, $1.7 million and $3.1 million of interest for the
three months ended June 30, 2019 and 2018, respectively. EBITDA
attributable to noncontrolling interest includes $3.8 million and
$5.6 million of depreciation and amortization, $3.2 million and
$5.1 million of interest for the six months ended June 30, 2019 and
2018, respectively.
Kennedy-Wilson Holdings,
Inc.
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,
2019
2018
2019
2018
Net income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
50.8
$
109.6
$
45.5
$
107.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
47.1
52.5
95.8
108.2
Share-based compensation
7.2
8.8
17.6
18.7
Adjusted Net Income
$
105.1
$
170.9
$
158.9
$
234.1
Weighted average shares outstanding for
diluted
140,377,218
142,707,159
140,547,023
145,872,617
(1) See Appendix for reconciliation of
Kennedy Wilson's Share amounts.
The table below provides a detailed
reconciliation of net income to Adjusted Net Income.
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
Net income
$
141.2
$
167.3
$
142.8
$
166.3
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization
46.2
51.5
95.3
107.2
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
2.2
3.1
4.3
6.6
Share-based compensation
7.2
8.8
17.6
18.7
Net income attributable to the
noncontrolling interests, before depreciation and
amortization(1)
(91.7
)
(59.8
)
(101.1
)
(64.7
)
Adjusted Net Income
$
105.1
$
170.9
$
158.9
$
234.1
Weighted average shares outstanding for
diluted
140,377,218
142,707,159
140,547,023
145,872,617
(1) Includes $1.3 million and $2.1 million
of depreciation and amortization for the three months ended June
30, 2019 and 2018, respectively, and $3.8 million and $5.6 million
of depreciation and amortization for the six months ended June 30,
2019 and 2018, respectively.
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, 2018, 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, our share of interest expense included in income from
investments in unconsolidated investments, depreciation and
amortization, our share of depreciation and amortization included
in income from unconsolidated investments, loss on early
extinguishment of corporate debt and income taxes, share-based
compensation expense 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 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, property services and research 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. Effective
January 1, 2018, we adopted new GAAP guidance on revenue
recognition and implemented a change in accounting principles
related to performance allocations, which resulted in us now
accounting for performance allocations (commonly referred to as
“performance fees” or “carried interest”) under the GAAP guidance
for equity method investments and presenting performance
allocations as a component of income from 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, property services and research 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 before
depreciation and amortization, our share of depreciation and
amortization included in income from unconsolidated investments,
share-based compensation and net income attributable to
noncontrolling interests, before depreciation and amortization.
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.
· “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 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.
· "Consolidated investment account" refers to the sum of Kennedy
Wilson’s equity in: cash held by consolidated investments,
consolidated real estate and acquired in-place leases gross of
accumulated depreciation and amortization, net hedge asset or
liability, unconsolidated investments, consolidated loans, and net
other assets.
· "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. 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 2019, the NOI
represents estimated Year 1 NOI from our original underwriting.
Estimated year 1 NOI for properties purchased in 2019 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. The
Company does not provide a reconciliation for estimated annual NOI
to its most directly comparable forward-looking GAAP financial
measure, because it is unable to provide a meaningful or accurate
estimation of each of the component reconciling items, and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing and/or
amount of various items that would impact estimated annual NOI,
including, for example, gains on sales of depreciable real estate
and other items that have not yet occurred and are out of the
Company’s control. For the same reasons, the Company is unable to
meaningfully address the probable significance of the unavailable
information and believes that providing a reconciliation for
estimated annual NOI would imply a degree of precision as to its
forward-looking net operating income that would be confusing or
misleading to investors.
· "Estimated Forward Yield on Cost” represents the Company’s
estimate of future net operating income, assuming it has completed
its planned value-add asset management initiatives, divided by the
sum of the purchase price and additional capital expenditure costs
that are expected to be incurred in accordance with the Company’s
original underwriting at the time of acquisition. This information
may be presented in a manner that is different from similar
information included in our financial statements prepared in
accordance with GAAP. Estimated Forward Return on Cost is based on
management’s current expectations and are based on assumptions that
may prove to be inaccurate and involve known and unknown risks. For
example, Estimated Forward Return on Cost is based in part on data
made available to us during the course of our due diligence process
in connection with asset acquisitions and assumes the timely and
on-budget completion of our value-add initiatives, the timely
leasing of all additional capacity and the absence of customer
defaults or early lease terminations. Accordingly, the actual
return on cost of an investment made by the Company may differ
materially and adversely from the Estimated Forward Return on Cost
figures set forth in this release, and we caution you not to place
undue reliance on such figures. This information is not provided
for development assets with no current income-producing
component.
· "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.
· "Internal Rate of Return" (“IRR”) is based on cumulative
contributions and distributions to Kennedy Wilson on each
investment that has been sold and is the leveraged internal rate of
return on equity invested in the investment. The IRR measures the
return to Kennedy Wilson on each investment, expressed as a
compound rate of interest over the entire investment period. This
return does take into account carried interest, if applicable, but
excludes management fees, organizational fees, or other similar
expenses.
· "Investment account” refers to the consolidated investment
account presented after noncontrolling interest on invested assets
gross of accumulated depreciation and amortization.
· "Investment Management and Real Estate Services Assets under
Management" ("IMRES 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 IMRES 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
IMRES 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 IMRES
AUM. The estimated value of development properties is included at
estimated completion cost.
· "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.
· "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 and
hotel 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.
· "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/20190731005988/en/
Daven Bhavsar, CFA Vice President of Investor Relations (310)
887-3431 dbhavsar@kennedywilson.com www.kennedywilson.com
Kennedy Wilson (NYSE:KW)
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Kennedy Wilson (NYSE:KW)
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から 7 2023 まで 7 2024