Kennedy-Wilson Holdings, Inc. (NYSE: KW) today reported
results for 1Q-2021:
1Q
(Amounts in millions, except per share
data)
2021
2020
GAAP Results
GAAP Net Loss to Common Shareholders1
($5.6
)
($9.9
)
Per Diluted Share
(0.04
)
(0.07
)
Non-GAAP Results
Adjusted EBITDA
$127.6
$112.0
Adjusted Net Income1
47.0
44.8
1 Includes $15 million of loss on early
extinguishment of debt in 1Q-21 and $0 in 1Q-20
"The first quarter was highlighted by a 14% increase to Adjusted
EBITDA, continued growth of our investment management business and
the completion of two unsecured bond transactions that will result
in $18 million of annual interest savings and further improves our
bond maturity profile," said William McMorrow, Chairman and CEO of
Kennedy Wilson. "Armed with strong liquidity, we have an extremely
robust investment and leasing pipeline that we expect will help
drive further near-term growth in our NOI and fee-bearing
capital."
1Q Highlights
- 14% Increase to 1Q-21 Adjusted EBITDA to $128 million (vs.
$112 million in 1Q-20):
- KW's share of gains from the sale of real estate1, increases in
fair values and promotes totaled $70 million in 1Q-21 , an increase
of $30 million from 1Q-20.
- KW's share of recurring property NOI, loan income, and fees1
totaled $97 million in 1Q-21, a decrease of $12 million from 1Q-20,
primarily due to planned asset sales and the COVID-19 impact to
hotel operations and reserves for bad debt.
- 5% Growth in Fee-Bearing Capital: Fee-Bearing Capital
totaled $4.1 billion as of March 31, 2021, a 5% increase from YE-20
and an 86% increase from 4Q-18. Fee-Bearing Capital increased by
$245 million due to new investments and commitments, offset by $94
million primarily due to asset dispositions. In addition, as of
March 31, 2021, the Company has approximately $2.0 billion in
additional non-discretionary capital with certain strategic
partners that is available for investment. If invested, these
amounts will be added to Fee-Bearing Capital.
- 17% Growth in U.S. Debt Platform: Completed loan
investments totaling $137 million in 1Q-21, resulting in 17% growth
of our debt platform. The Company has a 9% ownership in its debt
platform, which totals $928 million of assets and $846 million of
Fee-Bearing Capital as of quarter-end.
- 89% Growth in European Logistics Platform: Acquired $209
million in logistics assets in 1Q-21, resulting in an additional
$67 million in Fee-Bearing Capital. The Company has a 20% ownership
in its logistics platform, which totals $444 million of assets and
$142 million of Fee-Bearing Capital as of 1Q-21.
- In-Place Estimated Annual NOI of $389 Million; 82% of which
is Multifamily and Office:
- Stabilized The Clara Phase 1, 38° North Phase 1, 400/430
California, and The View by Vintage, which added approximately $6
million in Estimated Annual NOI.
- Post quarter-end, the Company has $640 million in gross
investment transactions that have either closed or are under
contract. If completed, these transactions are expected to add a
net $9 million of Estimated Annual NOI to KW in 2Q-21, resulting in
a pro-forma Estimated Annual NOI of $398 million.
- The Company's development and lease-up portfolio now totals
3,938 multifamily units, 2.3 million commercial square feet, and
one hotel.
- Multifamily and Office Same Property Performance1:
1Q - 2021 vs. 1Q -
2020
Occupancy
Revenue
NOI
Multifamily - Market Rate
0.6
%
(2.1
)%
(4.6
)%
Multifamily - Affordable
—
%
2.0
%
1.2
%
Office
(1.2
)%
10.3
%
12.9
%
Total
2.0
%
2.1
%
1 Excludes minority-held investments and
includes $1.7 million of COVID-19 related bad debt reserves in
1Q-21 (2% of same-property rents).
- 1Q-21 Rent Collections: The following is a summary of
KW's share of contractual cash rent collections for 1Q-21:
Asset Class
1Q-21 Rent Collections
% of Billed Rents
Multifamily
96
%
57
%
Office
99
%
31
%
Retail
71
%
11
%
Industrial
88
%
1
%
Total
94
%
100
%
1Q-21 Investment
Activity
- Capital Investment: Invested $129 million of cash,
allocating 52% to capex and development initiatives, 39% to new
investments, and 9% to share repurchases.
- New Investments: Completed $377 million of property
acquisitions and loan originations, of which KW's share was $56
million.
- Disposition Activity: Completed $556 million of
dispositions, of which KW's share was $270 million. The
dispositions generated net cash proceeds of $175 million to KW. The
following key disposition was completed in 1Q-21:
- The Company sold Friars Bridge Court, a wholly-owned 103,000
square foot office property located in London, UK, for $220 million
(£160 million), generating a net gain on sale of $65 million
(including a one-time $8 million reduction to rental income)1.
Balance Sheet and Capital
Markets
- $1.1 billion in Cash and Lines of Credit: Pro forma for
the two unsecured debt paydowns described below, Kennedy Wilson had
total pro forma consolidated cash and cash equivalents of $644
million(2) and $450 million of capacity on its $500 million
revolving line of credit.
- Unsecured Debt Transactions Result in $18 million of Annual
Interest Savings:
- During the quarter, the Company issued $1.2 billion of
principal amount of unsecured notes. The bonds were issued in two
separate tranches, $600 million aggregate principal amount of 4.75%
senior notes due 2029 and $600 million aggregate principal amount
at 5.00% due 2031, with a combined effective interest rate of
4.826%. The proceeds were used to fully redeem all of the Company's
$1.15 billion in principal amount of its 5.875% unsecured notes due
April 2024, including $573 million of principal repaid in
2Q-21.
- Post quarter-end, the Company completed a redemption of $207
million (£150 million) of its 3.95% sterling-denominated Kennedy
Wilson Europe unsecured bonds due 2022 ("KWE notes"), with $303
million remaining. In total, the Company has redeemed $387 million
(£280 million) or 56% of the initial $690 million (£500 million)
KWE notes.
- As a result of these two transactions, the Company expects to
save $18 million in annual interest. The Company used total cash of
$794 million in Q2 in connection with the redemption of the 2024
notes and the KWE notes. The Company recognized a one-time loss on
early extinguishment of debt of $15 million in 1Q-21 and with a
further $21 million expected in 2Q-21, composed of prepayment
penalties and the non-cash write-off of unamortized deferred
financing costs and debt discounts.
- Improving Debt Profile: Pro forma for the two unsecured
debt transactions described above, Kennedy Wilson's share of debt
had a pro forma weighted average interest rate of 3.5% per annum
vs. 3.7% in 4Q-20 and a pro forma weighted-average maturity of 5.9
years vs. 4.1 years as of 4Q-20.
- Share Repurchase Program(3): In 1Q-21, Kennedy Wilson
repurchased 0.7 million shares for $12 million at a
weighted-average price of $17.73 per share. As of March 31, 2021,
the Company had $245 million remaining available under its $500
million share repurchase plan. Since the launch of the plan in
March 2018, the Company has repurchased 14.3 million shares for
$255 million at a weighted-average price of $17.90 per share.
Subsequent Events
The Company has either closed or is under contract on the
following investment transactions:
- Completed 7 real estate acquisitions and loan originations for
$368 million ($112 million at KW share)
- Under contract to acquire 5 real estate and loan investments
for $146 million ($61 million at KW share)
- Under contract to sell 3 real estate investments for $126
million ($9 million at KW share).
- If completed, these transactions are expected to add $9 million
of Estimated Annual NOI to KW in 2Q-21, resulting in a pro-forma
Estimated Annual NOI of $398 million.
Subsequent to quarter-end, the Company drew $100 million on its
revolving line of credit, with $350 million of availability
remaining.
Footnotes
(1)
In 1Q-21, the Company recognized
a one-time $8 million straight-line rent receivable write off to
rental income related to the disposition of Friars Bridge Court.
The Company has excluded this amount from its recurring property
NOI and included as a reduction to the Company's share of gains
from the sale of real estate.
(2)
Represents consolidated cash and
includes $83 million of restricted cash, which is included in cash
and cash equivalents. The Company's share of cash, including
unconsolidated joint-ventures, totals $740 million. The amounts
shown are pro-forma for the repayments described in the Unsecured
Debt Transactions above.
(3)
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.
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, May 6.
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 10154188.
The webcast will be available at:
https://services.choruscall.com/links/kw210506uS6eIgBe.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
through our balance sheet and through our investment management
platform. We focus on multifamily and office properties located in
the Western U.S., U.K., and Ireland. For further information on
Kennedy Wilson, please visit: www.kennedywilson.com.
Kennedy-Wilson Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(Dollars in millions)
March 31, 2021
December 31,
2020
Assets
Cash and cash equivalents(1)
$
1,438.6
$
965.1
Accounts receivable
46.3
47.9
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $841.2
and $815.0)
4,562.7
4,720.5
Unconsolidated investments (including
$1,157.8 and $1,136.5 at fair value)
1,311.0
1,289.3
Other assets
191.4
199.1
Loan purchases and originations
98.5
107.1
Total assets
$
7,648.5
$
7,329.0
Liabilities
Accounts payable
$
15.6
$
30.1
Accrued expenses and other liabilities
479.3
531.7
Mortgage debt
2,555.3
2,589.8
KW unsecured debt(1)
1,799.8
1,332.2
KWE unsecured bonds(1)
1,152.2
1,172.5
Total liabilities
6,002.2
5,656.3
Equity
Cumulative perpetual preferred stock
295.2
295.2
Common stock
—
—
Additional paid-in capital
1,718.6
1,725.2
(Accumulated deficit) retained
earnings
(18.9
)
17.7
Accumulated other comprehensive loss
(377.1
)
(393.6
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,617.8
1,644.5
Noncontrolling interests
28.5
28.2
Total equity
1,646.3
1,672.7
Total liabilities and equity
$
7,648.5
$
7,329.0
(1) During April 2021, the Company paid
down $573.1 million in principal of its KW unsecured debt, and
$207.0 million in principal of its KWE unsecured bonds.
Kennedy-Wilson Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
(Dollars in millions, except
share amounts and per share data)
Three Months Ended March
31,
2021
2020
Revenue
Rental
$
88.9
$
107.7
Hotel
0.8
7.2
Investment management and property
services fees
8.1
8.4
Loans and other
1.6
—
Total revenue
99.4
123.3
Expenses
Rental
33.0
36.7
Hotel
1.6
6.0
Commission and marketing
0.3
0.7
Compensation and related (includes $7.7
and $8.6 of share-based compensation)
34.7
31.4
General and administrative
6.8
9.5
Depreciation and amortization
44.4
45.5
Total expenses
120.8
129.8
Income from unconsolidated investments,
net of depreciation and amortization
18.4
10.9
Gain on sale of real estate, net
73.5
44.2
Transaction-related expenses
—
—
Interest expense
(51.6
)
(48.8
)
Loss on early extinguishment of debt
(14.8
)
—
Other (loss) income
(3.0
)
—
Income (loss) before provision for
income taxes
1.1
(0.2
)
Provision for income taxes
(2.7
)
(5.7
)
Net loss
(1.6
)
(5.9
)
Net loss attributable to noncontrolling
interests
0.3
0.3
Preferred dividends
(4.3
)
(4.3
)
Net loss income attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
(5.6
)
$
(9.9
)
Basic and diluted loss per
share(1)
Loss per basic and diluted
$
(0.04
)
$
(0.07
)
Weighted average shares outstanding for
basic and diluted
138,772,819
140,210,705
Dividends declared per common
share
$
0.22
$
0.22
(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
March 31,
2021
2020
Net loss attributable to Kennedy-Wilson
Holdings, Inc. common shareholders
$
(5.6
)
$
(9.9
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
58.8
56.1
Loss on early extinguishment of debt
14.8
—
Depreciation and amortization
44.9
46.1
Provision for income taxes
2.7
6.8
Preferred dividends
4.3
4.3
Share-based compensation
7.7
8.6
Adjusted EBITDA
$
127.6
$
112.0
(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
March 31,
2021
2020
Net loss
$
(1.6
)
$
(5.9
)
Non-GAAP adjustments:
Add back:
Interest expense
51.6
48.8
Loss on early extinguishment of debt
14.8
—
Kennedy Wilson's share of interest expense
included in unconsolidated investments
7.9
8.1
Depreciation and amortization
44.4
45.5
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.7
1.7
Provision for income taxes
2.7
5.7
Kennedy Wilson's share of taxes included
in unconsolidated investments
—
1.1
Share-based compensation
7.7
8.6
EBITDA attributable to noncontrolling
interests(1)
(1.6
)
(1.6
)
Adjusted EBITDA
$
127.6
$
112.0
(1)
EBITDA attributable to
noncontrolling interest includes $1.2 million and $1.1 million of
depreciation and amortization, $0.7 million and $0.8 million of
interest, and $0.0 million and $0.0 million of taxes, for the three
months ended March 31, 2021 and 2020, 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
March 31,
2021
2020
Net loss attributable to Kennedy-Wilson
Holdings, Inc. common shareholders
$
(5.6
)
$
(9.9
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
44.9
46.1
Share-based compensation
7.7
8.6
Adjusted Net Income
$
47.0
$
44.8
Weighted average shares outstanding for
diluted
138,772,819
140,210,705
(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
March 31,
2021
2020
Net loss
$
(1.6
)
$
(5.9
)
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization
44.4
45.5
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.7
1.7
Share-based compensation
7.7
8.6
Preferred dividends
(4.3
)
(4.3
)
Net income attributable to the
noncontrolling interests, before depreciation and
amortization(1)
(0.9
)
(0.8
)
Adjusted Net Income
$
47.0
$
44.8
Weighted average shares outstanding for
diluted
138,772,819
140,210,705
(1) Includes $1.2 million and $1.1 million
of depreciation and amortization for the three months ended March
31, 2021 and 2020, 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, 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 (loss) before interest
expense, loss on early extinguishment of debt, our share of
interest expense included in investments in unconsolidated
investments, (benefit from) provision for income taxes,
depreciation and amortization, our share of depreciation and
amortization included in income from unconsolidated investments,
share-based compensation 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 and property services fees adjusted to include Kennedy
Wilson's share of fees eliminated in consolidation, Kennedy
Wilson’s share of fees in unconsolidated service businesses and
performance fees included in unconsolidated investments. Our
management uses Adjusted fees to analyze our investment management
and real estate services business because the measure removes
required eliminations under GAAP for properties in which the
Company provides services but also has an ownership interest. These
eliminations understate the economic value of the investment
management and property services fees and makes the Company
comparable to other real estate companies that provide investment
management and real estate services but do not have an ownership
interest in the properties they manage. Our management believes
that adjusting GAAP fees to reflect these amounts eliminated in
consolidation presents a more holistic measure of the scope of our
investment management and real estate services business.
- “Adjusted Net Income” represents net (loss) income before
depreciation and amortization, our share of depreciation and
amortization included in 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 on Loans” is a metric that applies to our real
estate debt business that represents the sum of annual interest
income, transaction fees and the payback of principal for
discounted loan purchases, amortized over the life of the loans and
divided by the principal balances of the loans.
- "Cap rate" represents the net operating income of an investment
for the year preceding its acquisition or disposition, as
applicable, divided by the purchase or sale price, as applicable.
Cap rates set forth in this presentation only includes data from
income-producing properties. We calculate cap rates based on
information that is supplied to us during the acquisition diligence
process. This information is not audited or reviewed by independent
accountants and may be presented in a manner that is different from
similar information included in our financial statements prepared
in accordance with GAAP. In addition, cap rates represent
historical performance and are not a guarantee of future NOI.
Properties for which a cap rate is provided may not continue to
perform at that cap rate.
- "Equity partners" refers to non-wholly-owned subsidiaries that
we consolidate in our financial statements under U.S. GAAP and
third-party equity providers.
- "Estimated Annual NOI" is a property-level non-GAAP measure
representing the estimated annual net operating income from each
property as of the date shown, inclusive of rent abatements (if
applicable). The calculation excludes depreciation and amortization
expense, bad debt expense for commercial assets, 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 the Company’s
hotel portfolio, the Company provides a trailing-12 month NOI of $9
million, which excludes the period during which the hotel was fully
closed due to restrictions related to the COVID-19 pandemic.
Additionally, for assets wholly-owned and fully occupied by KW, the
Company provides an estimated NOI for valuation purposes of $4
million, based on 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 2021 the last twelve months, the NOI
represents the estimated Year 1 NOI from our original underwriting.
Estimated year 1 NOI for properties purchased in 2021 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 that 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.
- "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.
- "Real Estate Services Assets under Management" ("AUM")
generally refers to the properties and other assets with respect to
which we provide (or participate in) oversight, investment
management services and other advice, and which generally consist
of real estate properties or loans, and investments in joint
ventures. Our AUM is principally intended to reflect the extent of
our presence in the real estate market, not the basis for
determining our management fees. Our AUM consists of the total
estimated fair value of the real estate properties and other real
estate related assets either owned by third parties, wholly-owned
by us or held by joint ventures and other entities in which our
sponsored funds or investment vehicles and client accounts have
invested. Committed (but unfunded) capital from investors in our
sponsored funds is not included in our AUM. The estimated value of
development properties is included at estimated completion
cost.
- "Return on Equity" is a ratio calculated by dividing the net
cash distributions of an investment to Kennedy Wilson, after the
cost of leverage, if applicable, by the total cash contributions by
Kennedy Wilson over the lifetime of the investment.
- “Same property” refers to properties in which Kennedy Wilson
has an ownership interest during the entire span of both periods
being compared. The same property information presented throughout
this report is shown on a cash basis and excludes non-recurring
expenses. This analysis excludes properties that are either under
development or undergoing lease up as part of our asset management
strategy.
Note about Non-GAAP and certain other
financial information included in this presentation
In addition to the results reported in accordance with U.S.
generally accepted accounting principles ("GAAP") included within
this presentation, Kennedy Wilson has provided certain information,
which includes non-GAAP financial measures (including Adjusted
EBITDA, Adjusted Net Income, Net Operating Income, and Adjusted
Fees, as defined above). Such information is reconciled to its
closest GAAP measure in accordance with the rules of the SEC, and
such reconciliations are included within this presentation. These
measures may contain cash and non-cash acquisition-related gains
and expenses and gains and losses from the sale of real-estate
related investments. Consolidated non-GAAP measures discussed
throughout this report contain income or losses attributable to
non-controlling interests. Management believes that these non-GAAP
financial measures are useful to both management and Kennedy
Wilson's shareholders in their analysis of the business and
operating performance of the Company. Management also uses this
information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a
substitute for any GAAP measures. Additionally, non-GAAP financial
measures as presented by Kennedy Wilson may not be comparable to
similarly titled measures reported by other companies. Annualized
figures used throughout this release and supplemental financial
information, and our estimated annual net operating income metrics,
are not an indicator of the actual net operating income that the
Company will or expects to realize in any period.
KW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210505006080/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