Existing $250 million share repurchase plan
authorization increases to $500 million
Kennedy-Wilson Holdings, Inc. (NYSE: KW) today reported
results for 3Q-2020:
3Q
YTD
(Amounts in millions, except per share
data)
2020
2019
2020
2019
GAAP
Results 1
GAAP Net (Loss) Income to Common
Shareholders
($25.1)
$20.7
($77.1)
$66.2
Per Diluted Share
(0.18)
0.15
(0.55)
0.47
Non-GAAP
Results
Adjusted EBITDA
$76.3
$142.5
$261.1
$450.0
Adjusted Net Income
27.3
73.9
84.1
232.8
1
Includes KW's share of depreciation and
amortization totaling $44.8 million and $46.9 million for 3Q-20 and
3Q-19, respectively, and $136.7 million and $142.7 million for
YTD-2020 and YTD-2019, respectively.
"The third quarter was highlighted by the stable occupancy and
strong rent collections we saw across our suburban multifamily and
office portfolio, significant growth of our investment management
business and further progress on completing our construction and
leasing initiatives," said William McMorrow, Chairman and CEO of
Kennedy Wilson. "Despite historically low transactions in Q2 and
Q3, we expect a more active fourth quarter during which the
majority of our 2020 asset sales will be completed, as evidenced by
the sale of Baggot Plaza, a wholly-owned office property in Dublin,
Ireland which was sold for $165 million on October 30, 2020 and
will generate a gain on sale of approximately $85 million to
Kennedy Wilson."
3Q Highlights
- 9% Growth in Fee-Bearing Capital: The Company's
Fee-Bearing Capital totaled $3.8 billion as of September 30, 2020,
a 9% increase from 2Q-20 and a 27% increase from YE-19. In
addition, the Company has approximately $1.7 billion in additional
non-discretionary capital with certain strategic partners that is
available for investment. If invested, these amounts will be added
to the Company's Fee-Bearing Capital.
- Debt Platform Growth: The Company completed loan
investments totaling $335 million in 3Q-20, bringing its YTD total
to $608 million. The Company has a 12% ownership in its debt
platform. There are currently an additional $182 million of loan
investments with signed non-binding term sheets that are expected
to close in 4Q-20.
- Development and Lease-up Completions: The Company
completed the development of Stockley Park, an office property in
the UK, and 38° North, a multifamily property in Northern
California, which will total $5 million in Estimated Annual NOI
upon expected stabilization. The Company also completed the
lease-up of Rosewood, a multifamily property in Boise, Idaho, and
two commercial properties, Horizon Centre and Malibu Sands, which
added $2 million to Estimated Annual NOI. The Company's development
and lease-up portfolio totals 4,519 units, 2.8 million commercial
square feet, and one hotel and in which the Company has a
weighted-average ownership of 59%.
- Strong Liquidity Position: The Company continues to
maintain a strong liquidity position with $793 million(1) in cash,
cash equivalents, and restricted cash and $300 million available on
its revolving credit facility.
- 3Q-20 Adjusted EBITDA of $76 million (vs. $143 million in
3Q-19):
- KW's share of gains from the sale of real estate, increases in
fair value and promotes totaled $9 million in 3Q-20, a decrease of
$74 million from 3Q-19.
- KW's share of recurring property NOI and fees totaled $101
million in 3Q-20 , a decrease of $4 million from 3Q-19.
- For 3Q-20 general and administrative and compensation and
related expenses (excluding share-based compensation) decreased by
$10 million or 26% (vs. 3Q-19).
- In-Place Estimated Annual NOI of $410 Million; 81% of which
is Multifamily and Office:
- The multifamily portfolio totals 25,471 stabilized units, with
a weighted-average physical occupancy of 94.4% (from 94.5% in
2Q-20). In 3Q, we completed 2,083 leases across our global
market-rate multifamily portfolio.
- The office portfolio totals 10.3 million stabilized square feet
with weighted-average physical occupancy of 94.5% (from 95.0% in
2Q-20). In 3Q, we completed 260,000 square feet of leasing
activity, including renewals and extensions, across our global
office portfolio.
- Sale of Property Services Division: In October, Kennedy
Wilson sold its third-party property services and brokerage
division, Kennedy-Wilson Properties, Ltd. ("KWP"). KWP had 111
employees with revenues of $11.4 million and expenses of $12.6
million over the last 12 months. Kennedy Wilson's headcount has
decreased by 60% primarily driven by the combined sales of KWP and
Meyers Research in 2018.
- Same Property Performance:
3Q -
2020 vs. 3Q - 2019
YTD -
2020 vs. YTD - 2019 1
Occupancy
Revenue
NOI
Occupancy
Revenue
NOI
Multifamily - Market Rate
0.7%
0.6%
(0.6)%
0.4%
2.0%
1.0%
Multifamily - Affordable
(0.8)%
2.0%
2.5%
(0.4)%
3.6%
4.6%
Commercial
(0.6)%
(3.9)%
(3.6)%
0.2%
(4.1)%
(4.1)%
Total2
(1.4)%
(1.8)%
(0.3)%
(1.1)%
1
The same property performance includes
$2.4 million of COVID-19 related bad debt reserves in 3Q-20 (2% of
same-property rents) and $5.3 million for YTD-20 (2% of
same-property rents).
2
Hotels are excluded from the YTD same
store analysis due to being non-operational during 2Q-20. For
3Q-20, the change in Hotel same property revenue was (77.4%) and
NOI was (88.2%). If included, the change in total same property
revenue for 3Q-20 would be (10.0%), and the change in total same
property NOI would be (7.2%).
Rent Collection Update
The following is a summary of KW's share of contractual cash
rent collections for 3Q-20. Additionally, the Company's overall
rent collections in October are trending in-line with 3Q-20:
Asset Class
3Q-20 Rent Collections
% of Portfolio
Multifamily
98%
57%
Office
96%
29%
Retail(3)
67%
12%
Industrial(3)
84%
2%
Total
93%
100%
3Q-20 Investment
Activity
- Capital Investment: In 3Q-20, the Company invested $108
million of cash, allocating 59% to new investments, 24% to capex
and development initiatives, and 17% to share repurchases. For
YTD-20, the Company invested $232 million of cash, allocating 48%
to new investments, 33% to capex and development initiatives, and
19% to share repurchases.
- New Investments: The Company completed $335 million of
loan investments in 3Q-20, of which its share was 17%.
- Dispositions: The Company completed $47 million of
wholly-owned dispositions in 3Q-20, which generated net cash
proceeds of $45 million.
Balance Sheet
- $1.1 billion in Cash and Lines of Credit: As of
September 30, 2020, Kennedy Wilson had total cash and cash
equivalents of $793 million(1) and $300 million of capacity on its
revolving line of credit.
- Global Debt Profile: Kennedy Wilson's share of debt had
a weighted average interest rate of 3.7% per annum and a weighted
average remaining maturity of 4.2 years, with only 3% maturing
before 2022.
- Increase in Existing Share Repurchase Program(2) to $500
million: The Company's board of directors authorized an
expansion of its existing $250 million share repurchase plan to
$500 million. In 3Q-20, Kennedy Wilson repurchased 1.4 million
shares at a weighted-average price of $14.67 per share (totaling
approximately $20 million). Since the $250 million share repurchase
plan was authorized on March 20, 2018, the Company has repurchased
and retired 12.9 million shares at a weighted-average price of
$18.04 per share, with $18 million remaining under the program as
of September 30, 2020.
Subsequent Events
In October, the Company closed on the sale of Baggot Plaza, a
wholly-owned 129,000 square foot office property in Dublin, Ireland
for $165 million, generating net proceeds of $165 million and a
gain on sale of $85 million.
In October, the Company acquired off-market three multifamily
properties totaling 880-units in the mountain states region of the
Western U.S. for $198 million. The assets were acquired by Kennedy
Wilson and various investment vehicles managed by Kennedy Wilson.
Rockrimmon, a wholly owned 260-unit community in Colorado Springs,
Colorado was acquired for $66 million, representing a $28 million
equity investment by Kennedy Wilson. The 220-unit RockVue community
in Broomfield, Colorado and the 400-unit Tempe Station community in
Tempe, Arizona are held in the company’s co-investment portfolio
and Kennedy Wilson has an average ownership of 10% across these two
assets. In total, Kennedy Wilson and its equity partners invested
$87 million of equity in the portfolio of which Kennedy Wilson's
share was $34 million.
In October, Kennedy Wilson Europe Real Estate Limited (“KWE”), a
wholly-owned subsidiary of the Company completed its cash tender
offer (the “Tender Offer”) for part of its £500 million 3.95%
sterling-denominated bonds due 2022 (the “Bonds”). KWE purchased
approximately £130 million, or 26%, of its Bonds in the Tender
Offer. KWE used cash and £100 million of proceeds from two new
property-level financings, each with a fully extended maturity in
2025 and an interest rate of approximately 3.0%, to fund the Tender
Offer consideration.
Footnotes
(1)
Includes $40 million of restricted cash
and our share of cash held at unconsolidated joint-ventures.
Approximately $476 million of our share of cash is in foreign
currencies of GBP and EUR, including $407 million which is held at
Kennedy Wilson Europe.
(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. The program does not obligate the Company to repurchase
any specific number of shares and, subject to compliance with
applicable laws, may be suspended or terminated at any time without
prior notice.
(3)
The Company has $5.6 million in 3Q 2020
rents outstanding for its retail and industrial portfolio,
excluding amounts deferred.
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,
November 5. 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 10145822.
The webcast will be available at:
https://services.choruscall.com/links/kw201105nbn4Oq6E.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)
September 30,
2020
December 31,
2019
Assets
Cash and cash equivalents
$
727.2
$
573.9
Accounts receivable
50.9
52.1
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $805.2
and $703.2)
4,786.7
5,080.2
Unconsolidated investments (including
$1,114.6 and $1,099.3 at fair value)
1,277.0
1,326.5
Other assets
334.8
271.8
Total assets
$
7,176.6
$
7,304.5
Liabilities
Accounts payable
$
13.3
$
20.4
Accrued expenses and other liabilities
510.6
518.0
Mortgage debt
2,520.1
2,641.0
KW unsecured debt
1,331.3
1,131.7
KWE unsecured bonds
1,284.7
1,274.2
Total liabilities
5,660.0
5,585.3
Equity
Cumulative perpetual preferred stock
—
—
Common stock
—
—
Additional paid-in capital
2,025.1
2,049.7
(Accumulated deficit) retained
earnings
(122.5)
46.2
Accumulated other comprehensive loss
(413.7)
(417.2)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,488.9
1,678.7
Noncontrolling interests
27.7
40.5
Total equity
1,516.6
1,719.2
Total liabilities and equity
$
7,176.6
$
7,304.5
Kennedy-Wilson Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
(Dollars in millions, except
share amounts and per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Revenue
Rental
$
102.2
$
108.3
$
308.8
$
336.1
Hotel
3.1
25.1
10.4
62.9
Sale of real estate
—
—
—
1.1
Investment management and property
services fees
8.9
9.6
25.2
27.3
Total revenue
114.2
143.0
344.4
427.4
Expenses
Rental
33.5
39.0
102.2
113.3
Hotel
2.7
17.3
10.9
47.6
Cost of real estate sold
—
—
—
1.2
Commission and marketing
0.9
1.2
2.5
2.9
Compensation and related (includes $7.6,
$6.3, $24.5 and $23.9 of share-based compensation)
26.3
35.6
85.1
107.9
General and administrative
8.6
8.4
26.1
30.2
Depreciation and amortization
44.3
46.4
135.1
141.7
Total expenses
116.3
147.9
361.9
444.8
Income from unconsolidated investments,
net of depreciation and amortization
14.9
84.0
45.0
131.6
Gain on sale of real estate, net
4.0
6.3
47.7
252.4
Transaction-related expenses
(0.1)
(4.0)
(0.6)
(5.9)
Interest expense
(50.8)
(51.8)
(151.3)
(162.8)
Other (loss) income
1.6
—
1.7
(0.6)
(Loss) income before benefit from
(provision for) income taxes
(32.5)
29.6
(75.0)
197.3
Benefit from (provision for) income
taxes
12.8
(10.2)
10.3
(35.1)
Net (loss) income
(19.7)
19.4
(64.7)
162.2
Net loss (income) attributable to
noncontrolling interests
(1.1)
1.3
0.5
(96.0)
Preferred dividends
(4.3)
—
(12.9)
—
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(25.1)
$
20.7
$
(77.1)
$
66.2
Basic (loss) earnings per
share(1)
(Loss) income per basic
$
(0.18)
$
0.15
$
(0.55)
$
0.47
Weighted average shares outstanding for
basic
140,119,442
139,947,518
140,181,438
139,669,971
Diluted (loss) earnings per
share
(Loss) income per diluted
$
(0.18)
$
0.15
$
(0.55)
$
0.47
Weighted average shares outstanding for
diluted
140,119,442
140,538,139
140,181,438
141,445,947
Dividends declared per common
share
$
0.22
$
0.21
$
0.66
$
0.63
(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
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(25.1)
$
20.7
$
(77.1)
$
66.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
57.5
58.4
173.7
182.1
Depreciation and amortization
44.8
46.9
136.7
142.7
(Benefit from) provision for income
taxes
(12.8)
10.2
(9.6)
35.1
Preferred dividends
4.3
—
12.9
—
Share-based compensation
7.6
6.3
24.5
23.9
Adjusted EBITDA
$
76.3
$
142.5
$
261.1
$
450.0
(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
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net (loss) income
$
(19.7)
$
19.4
$
(64.7)
$
162.2
Non-GAAP adjustments:
Add back:
Interest expense
50.8
51.8
151.3
162.8
Kennedy Wilson's share of interest expense
included in unconsolidated investments
7.5
7.7
24.7
23.6
Depreciation and amortization
44.3
46.4
135.1
141.7
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.7
2.1
5.2
6.4
(Benefit from) provision for income
taxes
(12.8)
10.2
(10.3)
35.1
Kennedy Wilson's share of taxes included
in unconsolidated investments
—
—
1.1
—
Share-based compensation
7.6
6.3
24.5
23.9
EBITDA attributable to noncontrolling
interests(1)
(3.1)
(1.4)
(5.8)
(105.7)
Adjusted EBITDA
$
76.3
$
142.5
$
261.1
$
450.0
(1)
EBITDA attributable to noncontrolling
interest includes $1.2 million and $1.6 million of depreciation and
amortization, $0.8 million and $1.1 million of interest, and $0.0
million and $0.0 million of taxes, for the three months ended
September 30, 2020 and 2019, respectively. EBITDA attributable to
noncontrolling interest includes $3.6 million and $5.4 million of
depreciation and amortization, $2.3 million and $4.3 million of
interest, and $0.4 million and $0.0 million of taxes for the nine
months ended September 30, 2020 and 2019, 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
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net (loss) income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(25.1)
$
20.7
$
(77.1)
$
66.2
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
44.8
46.9
136.7
142.7
Share-based compensation
7.6
6.3
24.5
23.9
Adjusted Net Income
$
27.3
$
73.9
$
84.1
$
232.8
Weighted average shares outstanding for
diluted
140,119,442
140,538,139
140,181,438
141,445,947
(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
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net (loss) income
$
(19.7)
$
19.4
$
(64.7)
$
162.2
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization
44.3
46.4
135.1
141.7
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.7
2.1
5.2
6.4
Share-based compensation
7.6
6.3
24.5
23.9
Preferred dividends
(4.3)
—
(12.9)
—
Net income attributable to the
noncontrolling interests, before depreciation and
amortization(1)
(2.3)
(0.3)
(3.1)
(101.4)
Adjusted Net Income
$
27.3
$
73.9
$
84.1
$
232.8
Weighted average shares outstanding for
diluted
140,119,442
140,538,139
140,181,438
141,445,947
(1)
Includes $1.2 million and $1.6 million of
depreciation and amortization for the three months ended September
30, 2020 and 2019, respectively, and $3.6 million and $5.4 million
of depreciation and amortization for the nine months ended
September 30, 2020 and 2019, 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" sections of each our Annual Report on Form 10-K for the
year ended December 31, 2019, and our Quarterly Report on Form 10-Q
for the quarter ended March 31, 2020, 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. 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, preferred dividends 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.
- “Annual Return” 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.
- "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 2020, the NOI
represents estimated Year 1 NOI from our original underwriting.
Estimated year 1 NOI for properties purchased in 2020 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, the sale of real estate that have not yet
occurred and other items 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
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. Estimated Forward Yield 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/20201104005721/en/
Daven Bhavsar, CFA Vice President of Investor Relations (310)
887-3431 dbhavsar@kennedywilson.com www.kennedywilson.com
Kennedy Wilson (NYSE:KW)
過去 株価チャート
から 6 2024 まで 7 2024
Kennedy Wilson (NYSE:KW)
過去 株価チャート
から 7 2023 まで 7 2024