Kennedy-wilson Holdings Inc. · NYSE:KW

Kennedy-wilson — Q3 2023 Earnings Presentation

42 slides from Kennedy-wilson's earnings presentation, Nov 2, 2023

  1. Slide 1: Kennedy Wilson Q3-2023 Investor Presentation

    Kennedy Wilson Q3-2023 Investor Presentation

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS SECTION 1 Strategic Review Page 2 SECTION 2 Real Estate Portfolio Page 7 SECTION 3 Investment Management Platform Page 13 SECTION 4 ESG Page 16 SECTION 5 Financial Review Page 19 SECTION 6 U.S. Markets Page 22 SECTION 7 European Markets Page 27 © KENNEDY WILSON SECTION 8 Appendix P

  3. Slide 3: Strategic Review

    © KENNEDY WILSON S T R AT EG I C R E V I E W The Clara, Boise, Idaho

  4. Slide 4: Q3-23 Highlights

    Q3-23 HIGHLIGHTS Fee-Bearing Capital: Increased to a record $8.2 billion, +46% growth from Q3-22 Key Financial Metrics Est. Annual NOI: Totals $485 million at quarter-end, +3% growth from Q3-22 4% Rev. growth and 3% NOI growth in market-rate same-property portfolio (vs. Q3-22) Multifamily NOI Growth

  5. Slide 5: Kennedy Wilson at a Glance

    KENNEDY WILSON AT A GLANCE (NYSE: KW) $25B Real Estate AUM1 37,500 26M Multifamily Units2 Commercial Sq Ft3 © KENNEDY WILSON 1) As defined in definitions section in the appendix. 2) Includes 919 lease-up units and 3,066 units under development. Capital Dock, Dublin, Ireland 3) Includes 1.9m sq ft of

  6. Slide 6: About Kennedy Wilson

    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 across the United States, United Kingdom, and Ireland. We primarily focus on multifami

  7. Slide 7: The Kennedy Wilson Advantage

    THE KENNEDY WILSON ADVANTAGE Globally diversified real estate portfolio in growing markets with complementary investment management platform Long-term relationships with major financial institutions Local expertise to accretively allocate capital First-mover advantage from early entry in key target

  8. Slide 8: Real Estate Portfolio

    © KENNEDY WILSON R EA L E S TAT E P O R T F O L I O Bristol at Southport, Renton, Washington

  9. Slide 9: Two Key Investment Segments

    TWO KEY INVESTMENT SEGMENTS Consolidated Portfolio Co-Investment Portfolio Wholly-owned investments with accretive Real estate and loan investments with asset management opportunities strategic partners and commingled fund business (KW ownership 5-50%) $283M 1 $37M $252M $8.2B $58M Estimated Annual

  10. Slide 10: Stabilized Portfolio Breakdown

    STABILIZED PORTFOLIO BREAKDOWN Sectors Geography $485M Multifamily: 54% Office: 29% $485M U.S.: 62% Ireland: 19% Estimated Estimated Annual NOI1 Loans: 5% Annual NOI1 U.K.: 17% Retail: 5% Italy & Spain: 2% Hotel: 4% Industrial: 3% 448 37,499 25.6 94.4% No. of investments No. of Commercial Occupancy4

  11. Slide 11: Suburban Assets Comprise 90% of Multifamily NOI

    SUBURBAN ASSETS COMPRISE 90% OF MULTIFAMILY NOI Multifamily $260M Suburban: 90% Multifamily: Mission Hills, Camarillo, CA, U.S. Estimated Urban: 10% Annual NOI © KENNEDY WILSON Multifamily: Atlas, Issaquah, WA, U.S. Q3-2023 Investor Presentation 10

  12. Slide 12: Development and Leasing Pipeline Expected to Add ~$95M in NOI

    DEVELOPMENT AND LEASING PIPELINE EXPECTED TO ADD ~$95M IN NOI 2023-2024 2025 $66M $29M Dovetail, Boise, Idaho Kona Village, Kona, Hawaii University Glen, Camarillo, CA Oxbow, Bozeman, Montana Coopers Cross, Dublin The Cornerstone, Dublin © KENNEDY WILSON Grange, Dublin The Oaks, Thousand Oaks, CA Vi

  13. Slide 13: Expected NOI from Completion of Development & Future Leasing

    EXPECTED NOI FROM COMPLETION OF DEVELOPMENT & FUTURE LEASING +$95M of Est. Ann. NOI by 2025 $60 $60 $50 $21 $40 $30 $29 $20 $15 $39 $10 $14 $6 $0 2023 2024 2025 US Europe © KENNEDY WILSON Based on expected stabilization date for development projects . The scope of these projects are subject to chang

  14. Slide 14: Investment Management Platform

    © KENNEDY WILSON I N V E ST M E N T M A N A G E M E N T P L AT F O R M Clancy Quay, Dublin, Ireland

  15. Slide 15: Fee-Bearing Capital Raised from Broad Institutional Investor Base

    FEE-BEARING CAPITAL RAISED FROM BROAD INSTITUTIONAL INVESTOR BASE Investor Type Investor Geography Investor Type Insurance Geography Company: 64% Canada: 54% $8.2B Sovereign Wealth Fund: 13% $8.2B U.S.: 20% Fee-Bearing Pension Fund: 8% Fee-Bearing Asia: 16% Capital1,2 Capital1,2 Private Equity: 5% E

  16. Slide 16: Debt Investment Platform

    DEBT INVESTMENT PLATFORM Sectors Geography $4.7B Multifamily: 42% Office: 21% $4.7B So. California: 25% No. California: 21% Outstanding Outstanding Loan Balance Hotel: 14% Loan Balance Mountain West: 12% Retail: 6% Pacific Northwest: 7% Industrial: 6% Northeast: 13% Student Housing: 6% Southeast: 11

  17. Slide 17: ESG Overview

    © KENNEDY WILSON E S G OV E RV I E W Kona Village Resort, Kona, Hawaii

  18. Slide 18: Our ESG Program Focuses on Four Pillars

    OUR ESG PROGRAM FOCUSES ON FOUR PILLARS © KENNEDY WILSON Q3-2023 Investor Presentation 17

  19. Slide 19: ESG Program at a Glance

    ESG PROGRAM AT A GLANCE © KENNEDY WILSON Please visit esg.kennedywilson.com for more information. Q3-2023 Investor Presentation 18

  20. Slide 20: Financial Review

    © KENNEDY WILSON FINANCIAL REVIEW One Embassy Gardens , London, UK

  21. Slide 21: Strong Protection Against Rising Interest Rates

    STRONG PROTECTION AGAINST RISING INTEREST RATES Reduced Floating Rate Exposure Cash and Credit Facility 100% Fixed: 71% Hedged via interest $685M Cash: $331M Fixed or Revolving credit rate caps: 29% Cash and Lines hedged debt facility: $354M (KW Share) of Credit Credit Profile 4.3% 5.4yrs 6% Effecti

  22. Slide 22: Components of Value

    COMPONENTS OF VALUE Below Are Key Valuation Metrics as of September 30, 2023 Investments Kennedy Wilson’s Share ($ in millions) Income Producing Assets Description Est. Annual NOI(1)(2) 1 Multifamily 33,514 units $260.2 2 Office 9.6 million sq ft 140.4 3 Industrial 10.4 million sq ft 14.3 4 Retail 3

  23. Slide 23: U.S. Markets

    © KENNEDY WILSON U.S.MARKETS Prosper Place, Denver, Colorado

  24. Slide 24: U.S. Stabilized Portfolio

    U.S. STABILIZED PORTFOLIO $237m $301M $301M Estimated Estimated Annual NOI1 Annual NOI1 Sectors Geography Multifamily: 77% Mountain West: 35% Office: 14% Pacific Northwest: 33% Loans: 8% Southern California: 17% Retail / Industrial: 1% Northern California: 12% Other U.S.: 3% © KENNEDY WILSON 1) As d

  25. Slide 25: Mountain West Portfolio by State

    MOUNTAIN WEST PORTFOLIO BY STATE As of Q3-23 Other2 7% Colorado 13% Idaho New Mexico $105M 24% Alpine Meadows, Sandy, UT 15% Estimated Annual NOI1 Nevada 22% Utah 19% © KENNEDY WILSON Whitewater Park, Boise, ID 1 ) As defined in definitions section in the appendix. 2 ) Includes Montana and Arizona.

  26. Slide 26: Mountain West Represents Largest Apartment Region

    MOUNTAIN WEST REPRESENTS LARGEST APARTMENT REGION 180% Growth in last four years Q3-19 Q3-23 180% Est. Ann. NOI1 $35M $98M Multifamily units 96% (stabilized) 6,228 12,195 Multifamily units (under development) 1,086 1,193 © KENNEDY WILSON 1) As defined in definitions section in the appendix. Q3-2023

  27. Slide 27: Vintage Housing: Growing Our Affordable Housing Portfolio

    VINTAGE HOUSING: GROWING OUR AFFORDABLE HOUSING PORTFOLIO 18% Growth Expected in Stabilized Units by YE-25 Vintage at Urban Center, Lynwood, WA, U.S. Southside by Vintage, Seattle, WA, U.S. Steamboat by Vintage, Reno, NV, U.S. At acquisition (Q2-15) Q3-23 Q4-251 Communities (stabilized) 30 48 56 Sta

  28. Slide 28: European Markets

    © KENNEDY WILSON E U R O P EA N M A R K E T S Coopers Cross, Dublin, Ireland

  29. Slide 29: Europe Stabilized Portfolio

    EUROPE STABILIZED PORTFOLIO $184M $184M Estimated Estimated Annual NOI1 Annual NOI1 Sectors Geography Office: 53% Ireland: 49% Multifamily: 16% United Kingdom: 44% Retail: 12% Italy: 4% Hotel: 11% Spain: 3% Industrial/Loans: 8% © KENNEDY WILSON 1) As defined in definitions section in the appendix. Q

  30. Slide 30: Irish Multifamily: Market Imbalance Creates Opportunity

    IRISH MULTIFAMILY: MARKET IMBALANCE CREATES OPPORTUNITY Low institutional Urgent need for new Fewer apartment dwellers ownership residential stock than other EU countries 342,612 34,000 46.3% Private rental units Annual residential % of apartment dwellers in Ireland1 requirement3 in EU countries5 <5

  31. Slide 31: Ireland: KW's Dominant Presence in Dublin

    IRELAND: KW’S DOMINANT PRESENCE IN DUBLIN 1 Capital Dock 2 Alliance Hanover Quay Liffey Trust 1 3 12 8 Northbank 2 4 3 4 State Street 5 11 Alto Vetro 6 5 9 6 10 7 Coopers Cross 8 7 9 10 11 12 © KENNEDY WILSON KW owned buildings Q3-2023 Investor Presentation 30

  32. Slide 32: Ireland: Resilient Growth Market Opportunity

    IRELAND: RESILIENT GROWTH MARKET OPPORTUNITY Economic & Market Overview One of the most defensive Destination for the world’s fastest global economies growing industries5 +3.3% GDP growth forecasted in 20241 Global Leader in Competitiveness innovation 2nd 2nd World ranking most competitive for Ecolo

  33. Slide 33: Strong Office Fundamentals and Favorable UK & Irish Lease Structures

    STRONG OFFICE FUNDAMENTALS AND FAVORABLE UK & IRISH LEASE STRUCTURES UK & Irish leases KW UK & Ireland office portfolio1 Long-term with 5-year rent reviews 39% 97% Upward-only FRI leases rent reviews or fixed uplifts Upward-only rent reviews in UK (and pre-2010 in Ireland) 8.0yrs 5.3yrs WAULT WAULT

  34. Slide 34: Robust European Office Fundamentals Driving Future Growth

    ROBUST EUROPEAN OFFICE FUNDAMENTALS DRIVING FUTURE GROWTH Key European Office Markets For KW Watford Harlow M25 M25 Reading Windsor London Farnborough Dublin London Q3-23 South East Q3-23 Dublin Q3-23 Prime rents (£ psf) 140.00 Prime rents (£ psf) 47.50 Prime rents (€ psf) 65.00 Take-up (m sq ft)1 9

  35. Slide 35: Appendix

    © KENNEDY WILSON APPENDIX The Shelbourne Hotel, Dublin, Ireland

  36. Slide 36: Multifamily Portfolio: $260M of Estimated Annual NOI

    MULTIFAMILY PORTFOLIO: $260M OF ESTIMATED ANNUAL NOI 1 Seattle WA MT Portland OR Reno ID Boise NV San Francisco UT Salt Lake City CA Dublin Bay Area Las Vegas AZ Los Angeles Cork U.S. Ireland $230.4M Assets Units $29.8M Assets Units Est. Ann. NOI1 1182 30,9812 Est. Ann. NOI1 103 2,5333 Mountain West

  37. Slide 37: Office Portfolio: $140M of Estimated Annual NOI

    OFFICE PORTFOLIO: $140M OF ESTIMATED ANNUAL NOI 1 Seattle WA Milan MT OR ID Rome WY NV UT San Francisco CO CA Denver Bay Area Dublin AZ Los Angeles London U.S. Europe $42.1M Assets Area (sq ft) $98.3M Assets Area (sq ft) Est. Ann. NOI1 192 5.9M2 Est. Ann. NOI1 253 3.7M3 Pacific Northwest Southern Ca

  38. Slide 38: KW Top Assets

    KW TOP 20 ASSETS Accounts KW share Commercial Units Acquisition Asset name for 35% of Location Estimated Annual Region NOI Sector of NOI1 (000 sq ft) /rooms date 1 Shelbourne Dublin Ireland Hotel 20.6 - 265 Aug-14 2 111 BPR London UK Office 16.9 216 - Nov-14 3 90 East Issaquah, WA Pacific Northwest

  39. Slide 39: Reconciliation of Net Income to Adjusted EBITDA

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED EBITDA ($ in M) Q3-23 2022 2021 2020 2019 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders ($92.2) $64.8 $313.2 $92.9 $224.1 Non-GAAP adjustments: Add back (Kennedy Wilson’s Share): In

  40. Slide 40: Reconciliation of Net Income to Adjusted Net Income

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ($ in M) Q3-23 2022 2021 2020 2019 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders ($92.2) $64.8 $313.2 $92.9 $224.1 Non-GAAP adjustments: Add back (less): Depreciation and

  41. Slide 41: Estimated Annual NOI Reconciliation to GAAP NOI

    ESTIMATED ANNUAL NOI RECONCILIATION TO GAAP NOI ($ in M) Q3-23 Rental Revenues $102.4 Hotel Revenues 16.6 Rental (Expenses) (38.4) Hotel (Expenses) (9.8) Loans and other 6.1 Consolidated NOI $76.9 Adjustments: Non-controlling interest (2.0) NOI from unconsolidated investments (KW Share) 40.6 Propert

  42. Slide 42: Appendix: Definitions

    APPENDIX DEFINITIONS: 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 inves

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