Kennedy-wilson Holdings Inc. · NYSE:KW

Kennedy-wilson — Q1 2024 Earnings Presentation

37 slides from Kennedy-wilson's earnings presentation, May 9, 2024

  1. Slide 1: Q1-2024 Investor Presentation

    Kennedy Wilson Q1-2024 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 Financial Review Page 22 SECTION 5 ESG Overview Page 25 SECTION 6 Appendix Page 28 © KENNEDY WILSON Geo, Shoreline, Washington Q1-2024 Investor Presen

  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: Strategic Initiatives

    STRATEGIC INITIATIVES 1 Stabilize Lease-ups ✓ Construction pipeline nearing completion and Developments ✓ Once stabilized, development and lease-up portfolio is expected to generate $89-$94 million of NOI to KW1 2 Strategic Asset ✓ Disposal of non-core assets expected to generate $550M- Disposition

  5. Slide 5: Kennedy Wilson at a Glance

    $25B 38,300 $8.6B AUM1 Multifamily Units2 Fee-Bearing Capital1 36 years KW 250 / 13 Investment NYSE, Employees / Offices History S&P 600 Member © KENNEDY WILSON Dovetail, Meridian, Idaho As of March 31, 2024 Q1-2024 1) As defined Investor in definitions Presentation section in the appendix. 2) Inclu

  6. Slide 6: A Simplified Kennedy Wilson

    A SIMPLIFIED KENNEDY WILSON $464M $89-94M $85M Estimated Annual NOI Est. Annual NOI expected at Q1-24 Investment (from stabilized real stabilization from lease-up and Management Fees on estate portfolio) development portfolio1 Annualized Basis © KENNEDY WILSON Oxbow, Bozeman, Montana 1) Stabilizatio

  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: Stabilized Portfolio Breakdown

    STABILIZED PORTFOLIO BREAKDOWN Multifamily, Loans, and Industrial represents ~70% of portfolio Sectors Geography $464M Multifamily: 59% EU Office: 21% $464M Western U.S.: 65% U.K.: 17% Estimated Estimated Annual NOI1 U.S. Office: 6% Annual NOI1 Ireland: 15% Loans: 6% Other2: 3% Retail: 4% Industrial

  10. Slide 10: 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%) $5.5B $252M $31M $284M $8.6B $60M Consolidated

  11. Slide 11: Global Multifamily Portfolio Totals 38,000 Units

    GLOBAL MULTIFAMILY PORTFOLIO TOTALS 38,000 UNITS 91% of portfolio is comprised of suburban assets Seattle Washington Portland Boise Oregon Idaho Region Salt Lake City Reno Mountain West2: 38% Denver Nevada $273M East Bay Area Pacific Northwest: 30% Utah California Colorado Estimated Southern Califor

  12. Slide 12: High Quality Multifamily Communities

    HIGH QUALITY MULTIFAMILY COMMUNITIES The Clara, Eagle, ID Bristol at Southport, Renton, WA Mission Hills, Camarillo, CA Cantata at the Trails, Albuquerque, NM © KENNEDY WILSON Atlas, Issaquah, WA Coopers Cross, Dublin, Ireland Q1-2024 Investor Presentation 11

  13. Slide 13: Development & Lease-Up Portfolio Expected to Add $89-$94M in NOI

    DEVELOPMENT & LEASE-UP PORTFOLIO EXPECTED TO ADD $89-$94M IN NOI AT STABILIZATION 2024 2025-2026 $25M $64-$69M Oxbow, Bozeman, Montana Anacapa Canyon, Camarillo, CA Coopers Cross, Dublin Cornerstone, Dublin © KENNEDY WILSON Grange, Dublin Kona Village Resort, Kona, Hawaii Based on expected stabiliza

  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: Investment Management Growth Strategy Today

    INVESTMENT MANAGEMENT GROWTH STRATEGY TODAY KW has developed deep relationships with well-capitalized institutional 1 Relationships investors across Asia, Canada, Europe, the Middle East, and the U.S. Focus on launching new strategies as capital deployment 2 Strategies opportunities strengthen Signi

  16. Slide 16: Growing Platforms Focused on Multifamily, Credit, and Industrial

    GROWING PLATFORMS FOCUSED ON MULTIFAMILY, CREDIT, AND INDUSTRIAL Rental Housing Debt Platform Logistics Opportunity Today Opportunity Today Opportunity Today ✓ Continued structural shortage of rental housing ✓ Certain banks/non-bank lenders are largely out ✓ Supply and demand imbalances in strong in

  17. Slide 17: Strong Track Record of Growth

    STRONG TRACK RECORD OF GROWTH Fee-Bearing Capital 10.0 ($ in billions) 9.0 8.0 7.0 30% 6.0 CAGR 5.0 4.0 $8.4 $8.6 3.0 $5.9 $5.0 2.0 $3.9 $3.0 1.0 $2.2 0.0 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Investment Management Fees (Base + Origination) 100.0 ($ in millions) 90.0 80.0 70.

  18. Slide 18: Best-in-Class Stable of Institutional Investors

    BEST-IN-CLASS STABLE OF INSTITUTIONAL INVESTORS Investor Type Investor Geography Investor Type Insurance Geography Company: 64% Canada: 56% $8.6B Sovereign Wealth Fund: 13% $8.6B U.S.: 19% Fee-Bearing Pension Fund: 8% Fee-Bearing Asia: 16% Capital1,2 Capital1,2 Private Equity: 5% Europe: 5% Family O

  19. Slide 19: Case Study: PacWest Bank Transaction

    CASE STUDY: PACWEST BANK TRANSACTION Strategic off-market acquisition from regional bank Process Portfolio • Sourced off-market as a result of long-standing relationship • Acquired high-quality discounted $4.1 billion $4.1B Loan Commitments network portfolio totaling 65 loans • Capitalized transacti

  20. Slide 20: Debt Platform Overview

    DEBT PLATFORM OVERVIEW Sectors Multifamily: 45% Office: 20% $5.1B Hotel: 14% Multifamily Construction Loan: Jefferson Oceanside Oceanside CA Outstanding Loan Balance Industrial: 6% Student Housing: 6% Retail: 5% Other: 4% Student Housing Construction Loan: Charme Statesboro Statesboro, GA $7.3B $2.2

  21. Slide 21: Construction Loans Provide KW a National Footprint

    CONSTRUCTION LOANS PROVIDE KW A NATIONAL FOOTPRINT Bozeman, MT One Investment Colorado Springs, CO Bloomington, IN One Investment Salt Lake City, UT One Investment Seattle, WA One Investment Denver, CO Chicago, IL Two Investments One Investment Three Investments Sacramento, CA One Investment Old Tap

  22. Slide 22: EU Logistics Platform Overview

    EU LOGISTICS PLATFORM OVERVIEW Sectors UK: 90% $1.3B Ireland: 9% UK Industrial: Spire Green, Harlow Portfolio Value Other: 1% IRL Industrial: Courtstown, Little Island $1.3B $1.1B 20% $446M Portfolio Value Remaining Capacity KW Ownership Fee-Bearing Capital1 © KENNEDY WILSON 1 ) As defined in defini

  23. Slide 23: Financial Review

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

  24. Slide 24: Balance Sheet and Liquidity

    BALANCE SHEET AND LIQUIDITY Reduced Floating Rate Exposure Cash and Credit Facility 98% Fixed: 73% Hedged: 25% $794M Cash1: $542M Fixed or Revolving credit Floating: 2% Cash and Lines hedged debt facility: $252M (KW Share) of Credit Credit Profile 4.5% 5.2yrs <3% Effective Weighted avg. Debt (at sha

  25. Slide 25: Components of Value

    COMPONENTS OF VALUE Key Valuation Metrics as of March 31, 2024: Investments Kennedy Wilson’s Share ($ in millions) Income Producing Assets Description Est. Annual NOI(1)(2) 1 Multifamily 34,170 units $272.9 2.5 million consolidated square feet 2a EU Office 99.0 1.0 million co-investment square feet

  26. Slide 26: ESG Overview

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

  27. Slide 27: Our ESG Program Focuses on Four Pillars

    OUR ESG PROGRAM FOCUSES ON FOUR PILLARS © KENNEDY WILSON Q1-2024 Investor Presentation 26

  28. Slide 28: ESG Program at a Glance

    ESG PROGRAM AT A GLANCE © KENNEDY WILSON 1) As of December 31, 2023. 2) Includes properties in Kennedy Wilson's directly managed global portfolio. 3) Electricity procured by Kennedy Wilson within directly managed European portfolio. 4) Includes U.S. Energy Star and European Energy Performance Certif

  29. Slide 29: Appendix

    © KENNEDY WILSON APPENDIX The Grange, Dublin, Ireland

  30. Slide 30: Vintage Housing: Growing Our Affordable Housing Portfolio

    VINTAGE HOUSING: GROWING OUR AFFORDABLE HOUSING PORTFOLIO 15% Growth Expected in Stabilized Units by YE-25 Vintage at Urban Center, Lynwood, WA Southside by Vintage, Seattle, WA Steamboat by Vintage, Reno, NV At acquisition (Q2-15) Q1-24 Q4-251 Communities (stabilized) 30 50 57 Stabilized units 5,50

  31. Slide 31: 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 246,453 34,000 47.5% Private rental units Annual residential % of apartment dwellers in Ireland1 requirement3 in EU countries5 <5

  32. Slide 32: 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% 99.6% Upward-only FRI leases rent reviews or fixed uplifts Upward-only rent reviews in UK (and pre-2010 in Ireland) 7.6yrs 4.9yrs WAULT WAUL

  33. Slide 33: KW Top Assets by Est. Annual NOI

    KW TOP 20 ASSETS BY EST. ANNUAL NOI Accounts Est. Annual Commercial Acquisition Asset name for 35% of Location Estimated Annual Region NOI Sector MF Units NOI1 (000 sq ft) date 1 111 BPR London UK Office 17.7 216 - Nov-14 2 Bella Vista Richmond, CA Nor. California Multifamily 13.7 - 1,008 May-11 3 E

  34. Slide 34: Reconciliation of Net Income to Adjusted EBITDA

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED EBITDA ($ in M) Q1-24 2023 2022 2021 2020 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $26.9 ($341.8) $64.8 $313.2 $92.9 Non-GAAP adjustments: Add back (Kennedy Wilson’s Share): In

  35. Slide 35: Reconciliation of Net Income to Adjusted Net Income

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ($ in M) Q1-24 2023 2022 2021 2020 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $26.9 ($341.8) $64.8 $313.2 $92.9 Non-GAAP adjustments: Add back (less): Depreciation and

  36. Slide 36: Estimated Annual NOI Reconciliation to GAAP NOI

    ESTIMATED ANNUAL NOI RECONCILIATION TO GAAP NOI ($ in M) Q1-24 Rental Revenues $97.4 Hotel Revenues 9.3 Rental (Expenses) (37.2) Hotel (Expenses) (7.6) Loans 8.1 Consolidated NOI $70.0 Adjustments: Non-controlling interest (2.2) NOI from unconsolidated investments (KW Share) 44.2 Property-Level NOI

  37. Slide 37: 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

Kennedy-Wilson Holdings — Q1 2024 Earnings Presentation on 6ix