Kennedy-Wilson Holdings, Inc. (NYSE: KW) today reported
results for 2Q-2021:
2Q
YTD
(Amounts in millions, except per share
data)
2021
2020
2021
2020
GAAP
Results
GAAP Net Income (Loss) to Common
Shareholders
$215.4
($42.1
)
$209.8
($52.0
)
Per Diluted Share
1.53
(0.30
)
1.50
(0.37
)
Non-GAAP
Results
Adjusted EBITDA
$410.2
$72.8
$537.8
$184.8
Adjusted Net Income
264.6
12.0
311.6
56.8
"Continued strong demand for real estate has led to appreciating
market values of our properties, as evidenced by our recent
dispositions," said William McMorrow, Chairman and CEO of Kennedy
Wilson. "We had one of our most active quarters in our history,
with $1.7 billion in completed investment transactions that
generated significant gains from asset sales and produced a record
quarter of financial results. Looking ahead, we will maintain our
focus on reinvesting the proceeds from recent asset sales and
expanding our existing platforms to drive further growth in our
recurring cash flow over the long term."
2Q Highlights
- Adjusted EBITDA to $410 million (vs. $73 million in
2Q-20):
- KW's share of gains from the sale of real estate, increases in
fair values and promotes totaled $365 million in 2Q-21, an increase
of $357 million from 2Q-20.
- KW's share of recurring property NOI, loan income and fees
totaled $99 million in 2Q-21, an increase of $5 million from
2Q-20.
- Completed $1.7 billion in Investment Transactions which Grew
Estimated Annual NOI and Fee-Bearing Capital:
Transaction Value
($ in millions)
Est. Annual NOI
($ in millions)
Fee-Bearing Capital
($ in billions)
As of 1Q-21
$
389
$
4.1
Gross acquisitions and loan
investments
1,135
27
0.3
Gross dispositions and loan repayments
143
(4
)
(0.1
)
New U.S. Multifamily Platform (at KW
Share)
392
(18
)
0.2
Asset Stabilizations
—
6
—
Operations and FX
—
3
—
Total as of 2Q-21
$
1,670
$
403
$
4.5
- Launched New $1.5 billion U.S. Multifamily Platform: The
Company launched a new $1.5 billion joint-venture platform with a
global institutional investor to acquire and manage core-plus
multifamily communities in the Western U.S.:
- The platform was seeded with an $800 million portfolio,
consisting of nine multifamily properties located in the Western
U.S. that were previously wholly-owned by Kennedy Wilson.
- Kennedy Wilson sold a 49% interest in these wholly-owned assets
to its partner, which generated a gain on sale of approximately
$330 million (due to the deconsolidation of the portfolio) and cash
proceeds of $167 million.
- Kennedy Wilson will continue to have a 51% ownership stake in
the new joint venture which will target approximately $700 million
in additional core-plus multifamily acquisition opportunities.
- New Investments in 2Q-21 Added $27 million of Estimated
Annual NOI, which were primarily driven by:
- Acquired two office properties in Greater London for $325
million, adding $14 million in Estimated Annual NOI.
- Expanded Mountain State portfolio through acquiring three
multifamily communities in Boise, Idaho and one in Albuquerque, New
Mexico totaling 984 Units for $208 million, adding $9 million in
Estimated Annual NOI.
- Stabilizations Add $6 million of Estimated Annual NOI:
Stabilized Clancy Quay Phase 3, The Clara and Seatac by Vintage in
2Q, which added approximately $6 million in Estimated Annual NOI.
The Company currently expects to add another $5 million in
Estimated Annual NOI from stabilizations by year-end 2021.
- 10% Growth in Fee-Bearing Capital: Fee-Bearing Capital
totaled $4.5 billion as of June 30, 2021, a 10% increase from 1Q-21
and an 15% increase YTD. In addition, the Company has approximately
$1.9 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.
- 25% Growth in U.S. Debt Platform: Completed loan
investments totaling $265 million in 2Q-21, resulting in 25% growth
of our debt platform. The Company has a 10% ownership in its debt
platform, which totals $1.2 billion of assets and $1.0 billion of
Fee-Bearing Capital as of quarter-end.
- 16% Growth in European Logistics Platform: Acquired $83
million in logistics assets in 2Q-21, resulting in an additional
$25 million in Fee-Bearing Capital. The Company has a 20% ownership
in its logistics platform, which totals $573 million of assets and
$206 million of Fee-Bearing Capital as of 2Q-21.
- Multifamily and Office Same Property Performance1:
2Q -
2021 vs. 2Q - 2020
YTD -
2021 vs. YTD - 2020
Occupancy
Revenue
NOI
Occupancy
Revenue
NOI
Multifamily - Market Rate
0.8%
1.9%
0.8%
0.6%
(0.1)%
(2.0)%
Multifamily - Affordable
0.7%
2.2%
0.6%
0.3%
2.1%
0.9%
Office
(1.1)%
1.7%
0.5%
(1.0)%
6.0%
6.1%
Total
1.9%
0.6%
2.0%
1.2%
(1) Excludes minority-held investments
2Q-21 Investment
Activity
- Capital Investment:
- In 2Q-21, the Company invested $444 million of cash, allocating
91% to new investments, 8% to capex and development initiatives,
and 1% to share repurchases.
- For the first half of 2021, the Company invested $573 million
of cash, allocating 79% to new investments, 18% to capex and
development initiatives, and 3% to share repurchases.
Balance Sheet and Capital
Markets
- $898 million in Cash and Lines of Credit: As of June 30,
2021, Kennedy Wilson had a total of $687 million(1) in cash and
cash equivalents and $211 million of capacity on its $500 million
revolving line of credit.
- Unsecured Debt Transactions:
- As previously disclosed, the Company fully refinanced its $1.15
billion in principal amount of its 5.875% unsecured notes due in
April 2024 ("2024 notes") by redeeming all issued and outstanding
2024 notes with proceeds from $1.2 billion of principal amount of
unsecured notes issued in 1Q-21 (with maturities split equally
between 2029 and 2031), which had a combined effective interest
rate of 4.83% per annum. A portion of the repayment of the 2024
notes, totaling $573 million, was made in 2Q-21, which resulted in
$12 million of loss on early extinguishment of debt.
- The Company completed a redemption of $207 million (£150
million) of its 3.95% sterling-denominated Kennedy Wilson Europe
unsecured bonds maturing in 2022 ("2022 bonds"), with $303 million
remaining outstanding, which resulted in $9 million of loss on
early extinguishment of debt. In total, the Company has redeemed
$387 million (£280 million) or 56% of the initial $690 million
(£500 million) of the 2022 bonds.
- Debt Profile: Kennedy Wilson's share of debt had a
weighted average interest rate of 3.5% per annum and a
weighted-average maturity of 5.8 years.
- Share Repurchase Program(2): In 2Q-21, Kennedy Wilson
repurchased 0.3 million shares for $6 million at a weighted-average
price of $20.55 per share. As of June 30, 2021, the Company had
$238 million remaining available under its $500 million share
repurchase plan. Since the launch of the plan in March 2018, the
Company has repurchased 14.6 million shares for $262 million at a
weighted-average price of $17.96 per share. The Company was in a
voluntary or mandatory blackout period for the majority of the
quarter and currently expects to resume activity under its share
repurchase program during the second half of the year.
Footnotes
(1)
Represents consolidated cash and includes
$33 million of restricted cash, which is included in cash and cash
equivalents. The Company's share of cash, including unconsolidated
joint-ventures, totals $801 million.
(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.
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
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 10154188.
The webcast will be available at:
https://services.choruscall.com/links/kw210805JGyEsIZL.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,
2021
December 31,
2020
Assets
Cash and cash equivalents
$
686.5
$
965.1
Accounts receivable
43.7
47.9
Real estate and acquired in place lease
values (net of accumulated depreciation and amortization of $786.2
and $815.0)
4,556.7
4,720.5
Unconsolidated investments (including
$1,429.5 and $1,136.5 at fair value)
1,577.5
1,289.3
Other assets
188.7
199.1
Loan purchases and originations
134.8
107.1
Total assets
$
7,187.9
$
7,329.0
Liabilities
Accounts payable
$
18.3
$
30.1
Accrued expenses and other liabilities
585.8
531.7
Mortgage debt
2,332.4
2,589.8
KW unsecured debt
1,472.1
1,332.2
KWE unsecured bonds
951.5
1,172.5
Total liabilities
5,360.1
5,656.3
Equity
Cumulative perpetual preferred stock
295.2
295.2
Common stock
—
—
Additional paid-in capital
1,719.5
1,725.2
Retained earnings
165.4
17.7
Accumulated other comprehensive loss
(382.9
)
(393.6
)
Total Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,797.2
1,644.5
Noncontrolling interests
30.6
28.2
Total equity
1,827.8
1,672.7
Total liabilities and equity
$
7,187.9
$
7,329.0
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,
2021
2020
2021
2020
Revenue
Rental
$
94.7
$
98.9
$
183.6
$
206.6
Hotel
2.2
0.1
3.0
7.3
Investment management and property
services fees
9.3
7.9
17.4
16.3
Loans and other
2.2
0.2
3.8
0.2
Total revenue
108.4
107.1
207.8
230.4
Expenses
Rental
32.4
32.0
65.4
68.7
Hotel
2.5
2.2
4.1
8.2
Commission and marketing
0.3
0.9
0.6
1.6
Compensation and related (includes $7.3
and $8.3 and $15.0 and $16.9 of share-based compensation)
48.6
27.4
83.3
58.8
General and administrative
9.0
8.0
15.8
17.5
Depreciation and amortization
41.7
45.3
86.1
90.8
Total expenses
134.5
115.8
255.3
245.6
Income from unconsolidated investments
52.4
19.2
70.8
30.1
Gain on sale of real estate, net
328.5
(0.5
)
402.0
43.7
Transaction-related expenses
(0.4
)
(0.3
)
(0.4
)
(0.5
)
Interest expense
(44.5
)
(50.4
)
(96.1
)
(99.2
)
Loss on early extinguishment of debt
(23.8
)
(1.3
)
(38.6
)
(1.3
)
Other income (loss)
—
(0.3
)
(3.0
)
(0.1
)
Income / (loss) before benefit from
(provision for) income taxes
286.1
(42.3
)
287.2
(42.5
)
(Provision for) benefit from income
taxes
(64.9
)
3.2
(67.6
)
(2.5
)
Net income (loss)
221.2
(39.1
)
219.6
(45.0
)
Net (income) loss attributable to
noncontrolling interests
(1.5
)
1.3
(1.2
)
1.6
Preferred dividends
(4.3
)
(4.3
)
(8.6
)
(8.6
)
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
215.4
$
(42.1
)
$
209.8
$
(52.0
)
Basic earnings (loss) per share
Earnings (loss) per share
$
1.55
$
(0.30
)
$
1.51
$
(0.37
)
Weighted average shares outstanding
139,260,408
140,219,177
139,290,576
140,214,960
Diluted earnings (loss) per
share
Earnings (loss) per share
$
1.53
$
(0.30
)
$
1.50
$
(0.37
)
Weighted average shares outstanding
140,778,616
140,219,177
140,136,010
140,214,960
Dividends declared per common
share
$
0.44
$
0.22
$
0.44
$
0.44
(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,
2021
2020
2021
2020
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
215.4
$
(42.1
)
$
209.8
$
(52.0
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense
52.6
58.8
111.4
114.9
Loss on early extinguishment of debt
23.8
1.3
38.6
1.3
Depreciation and amortization
41.9
45.8
86.8
91.9
Provision for (benefit from) income
taxes
64.9
(3.6
)
67.6
3.2
Preferred dividends
4.3
4.3
8.6
8.6
Share-based compensation
7.3
8.3
15.0
16.9
Adjusted EBITDA
$
410.2
$
72.8
$
537.8
$
184.8
(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,
2021
2020
2021
2020
Net income (loss)
$
221.2
$
(39.1
)
$
219.6
$
(45.0
)
Non-GAAP adjustments:
Add back:
Interest expense
44.5
50.4
96.1
99.2
Loss on early extinguishment of debt
23.8
1.3
38.6
1.3
Kennedy Wilson's share of interest expense
included in unconsolidated investments
8.9
9.1
16.8
17.2
Depreciation and amortization
41.7
45.3
86.1
90.8
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.4
1.8
3.1
3.5
Provision for (benefit from) income
taxes
64.9
(3.2
)
67.6
2.5
Kennedy Wilson's share of taxes included
in unconsolidated investments
—
—
—
1.1
Share-based compensation
7.3
8.3
15.0
16.9
EBITDA attributable to noncontrolling
interests(1)
(3.5
)
(1.1
)
(5.1
)
(2.7
)
Adjusted EBITDA
$
410.2
$
72.8
$
537.8
$
184.8
(1)
EBITDA attributable to noncontrolling
interest includes $1.2 million and $1.3 million of depreciation and
amortization, $0.8 million and $0.7 million of interest, and $0.0
million and $0.4 million of taxes, for the three months ended June
30, 2021 and 2020, respectively. EBITDA attributable to
noncontrolling interest includes $2.4 million and $2.4 million of
depreciation and amortization, $1.5 million and $1.5 million of
interest, and $0.0 million and $0.4 million of taxes, for the six
months ended June 30, 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
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net income (loss) attributable to
Kennedy-Wilson Holdings, Inc. common shareholders
$
215.4
$
(42.1
)
$
209.8
$
(52.0
)
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization
41.9
45.8
86.8
91.9
Share-based compensation
7.3
8.3
15.0
16.9
Adjusted Net Income
$
264.6
$
12.0
$
311.6
$
56.8
Weighted average shares outstanding for
diluted
140,778,616
140,219,177
140,136,010
140,214,960
(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,
2021
2020
2021
2020
Net income (loss)
$
221.2
$
(39.1
)
$
219.6
$
(45.0
)
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization
41.7
45.3
86.1
90.8
Kennedy Wilson's share of depreciation and
amortization included in unconsolidated investments
1.4
1.8
3.1
3.5
Share-based compensation
7.3
8.3
15.0
16.9
Preferred dividends
(4.3
)
(4.3
)
(8.6
)
(8.6
)
Net income attributable to the
noncontrolling interests, before depreciation and
amortization(1)
(2.7
)
—
(3.6
)
(0.8
)
Adjusted Net Income
$
264.6
$
12.0
$
311.6
$
56.8
Weighted average shares outstanding for
diluted
140,778,616
140,219,177
140,136,010
140,214,960
(1)
Includes $1.2 million and $1.3 million of
depreciation and amortization for the three months ended June 30,
2021 and 2020, respectively, and $2.4 million and $2.4 million of
depreciation and amortization for the six months ended June 30,
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 before interest
expense, loss on early extinguishment of debt, our share of
interest expense included in unconsolidated investments,
depreciation and amortization, our share of depreciation and
amortization included in unconsolidated investments, provision for
(benefit from) income taxes, our share of taxes included in
unconsolidated investments, share-based compensation, and EBITDA
adjustments 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 (loss) 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, 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 $9.1 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 $4.1 million, which includes an assumption
for applicable market rents. Any of the enumerated items above
could have a material effect on the performance of our properties.
Also, where specifically noted, for properties purchased in 2021,
the NOI represents 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 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.
- "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 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/20210804006102/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