Kennedy-Wilson Holdings, Inc. (NYSE: KW)
today reported results for 2Q-2018:
2Q
YTD
GAAP Results
Non-GAAP Results
“We are pleased to complete a record quarter that resulted in the
highest level of profits in our Company’s history,” said William
McMorrow, Chairman and CEO of Kennedy Wilson. “Our global team remains
focused on completing our key development and value-add initiatives
while growing our investment management platform both in the U.S. and
Europe.”
2Q Highlights
2Q – 2018 vs 2Q – 2017
YTD – 2018 vs YTD – 2017
Investment Activity: $786M in 2Q; $1.3 billion
YTD
Aggregate
Purchase
Price
Income
Producing
Estimated
Annual
NOI
Cap
Rate(2)
Est. Forward
Return on
Cost (2)
Non-income
Producing /
Development
? The majority of the acquisitions completed in 2Q and YTD have
significant value-add components which, once completed, are
expected to significantly increase net operating income.
Aggregate
Sale Price
Income
Producing
Estimated
Annual NOI
Cap
Rate(2)
Non-income
Producing /
Development
17.4
23.6
? Total cash of $327 million to KW from YTD dispositions.
? NOI growth averaged 29% for assets sold YTD from the time of
acquisition.
Investment Management and Real Estate Services
Business
Balance Sheet and Liquidity
Foreign Currency Fluctuations and Hedging
Footnotes
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 2. 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 two hours
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 10121783.
The webcast will be available at: https://services.choruscall.com/links/kw180802IiuXW7KM.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.
(Dollars in millions)
(Dollars in millions, except share amounts and per share data)
(1) Includes impact of the Company allocating income
and dividends per basic and diluted share to participating
securities.
(Dollars in millions)
The table below reconciles Adjusted EBITDA to net income
attributable to Kennedy-Wilson Holdings, Inc. common shareholders,
using Kennedy Wilson’s pro-rata share amounts for each adjustment
item.
(1) See Appendix for reconciliation of Kennedy Wilson’s
Share amounts.
The table below provides a detailed reconciliation of Adjusted
EBITDA to net income.
(Dollars in millions, except share data)
The table below reconciles Adjusted Net Income to net income
attributable to Kennedy-Wilson Holdings, Inc. common shareholders,
using Kennedy Wilson’s pro-rata share amounts for each adjustment
item.
(1) See Appendix for reconciliation of Kennedy Wilson’s
Share amounts.
The table below provides a detailed reconciliation of Adjusted Net
Income to net income.
Forward-Looking Statements
Statements made by us in this report and in other reports and statements
released by us that are not historical facts constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements are necessarily
estimates reflecting the judgment of our senior management based on our
current estimates, expectations, forecasts and projections and include
comments that express our current opinions about trends and factors that
may impact future operating results. Disclosures that use words such as
“believe,” “anticipate,” “estimate,” “intend,” “may,” “could,” “plan,”
“expect,” “project” or the negative of these, as well as similar
expressions, are intended to identify forward-looking statements. These
statements are not guarantees of future performance, rely on a number of
assumptions concerning future events, many of which are outside of our
control, and involve known and unknown risks and uncertainties that
could cause our actual results, performance or achievement, or industry
results, to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These risks and uncertainties may include the factors and the risks and
uncertainties described elsewhere in this report and other filings with
the Securities and Exchange Commission (the “SEC”), including the
Item 1A. “Risk Factors” section of our Annual Report on Form 10-K for
the year ended December 31, 2017, 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
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
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