Kennedy-wilson Holdings Inc. · NYSE:KW

Kennedy-wilson — Q4 2023 Earnings Presentation

40 slides from Kennedy-wilson's earnings presentation, Feb 22, 2024

  1. Slide 1: Kennedy Wilson Q4-2023 Investor Presentation

    Kennedy Wilson Q4-2023 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 12 SECTION 4 ESG Page 15 SECTION 5 Financial Review Page 18 SECTION 6 U.S. Markets Page 21 SECTION 7 European Markets Page 25 © 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: Q4-23 Highlights

    Q4-23 HIGHLIGHTS ✓ Investment Management Fees: 44% growth in Q4-23 (vs. Q4-22) Investment Management ✓ Record Fee-Bearing Capital: Increased to $8.4 billion, +42% growth from Q4-22 Growth ✓ $5.2B of incremental FBC from non-discretionary capital with certain strategic partners ✓ Originated $220M in

  5. Slide 5: Kennedy Wilson at a Glance

    KENNEDY WILSON AT A GLANCE (NYSE: KW) $25B Real Estate AUM1 37,600 25M Multifamily Units2 Commercial Sq Ft3 © KENNEDY WILSON 1) As defined in definitions section in the appendix. 2) Includes 758 lease-up units and 3,066 units under development. 3) Includes 1.8m sq ft of lease-up assets and 0.4m sq f

  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%) $280M 1 $31M $264M $8.4B $60M Estimated Annual

  10. Slide 10: Stabilized Portfolio Breakdown

    STABILIZED PORTFOLIO BREAKDOWN Sectors Geography $492M Multifamily: 55% EU Office: 21% $492M U.S.: 61% Ireland: 19% Estimated Estimated Annual NOI1 Retail/Hotel: 9% Annual NOI1 U.K.: 17% U.S. Office: 7% Other2: 3% Loans: 5% Industrial: 3% 447 37,644 25.3 94.0% No. of investments No. of Commercial Oc

  11. Slide 11: Suburban Assets Comprise 91% of Multifamily NOI

    SUBURBAN ASSETS COMPRISE 91% OF MULTIFAMILY NOI Multifamily $269M Suburban: 91% Multifamily: Mission Hills, Camarillo, CA, U.S. Estimated Urban: 9% Annual NOI © KENNEDY WILSON Multifamily: Atlas, Issaquah, WA, U.S. Q4-2023 Investor Presentation 10

  12. Slide 12: Projects to Add ~$91M in NOI at Stabilization

    PROJECTS TO ADD ~$91M IN NOI AT STABILIZATION 2024 2025 $25M $66M Oxbow, Bozeman, Montana University Glen Phase II, Camarillo, CA Coopers Cross, Dublin Cornerstone, Dublin © KENNEDY WILSON Grange, Dublin Kona Village Resort, Kona, Hawaii Based on stabilization date for development projects . The sco

  13. Slide 13: 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

  14. Slide 14: 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: 55% $8.4B Sovereign Wealth Fund: 13% $8.4B U.S.: 20% Fee-Bearing Pension Fund: 8% Fee-Bearing Asia: 16% Capital1,2 Capital1,2 Private Equity: 5% E

  15. Slide 15: Debt Investment Platform

    DEBT INVESTMENT PLATFORM 63% Western U.S. Sectors Geography $4.9B Multifamily: 44% Office: 20% $4.9B So. California: 25% No. California: 20% Outstanding Outstanding Loan Balance Hotel: 14% Loan Balance Mountain West: 11% Industrial: 6% Pacific Northwest: 7% Student Housing: 6% Northeast: 14% Retail:

  16. Slide 16: ESG Overview

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

  17. Slide 17: Our ESG Program Focuses on Four Pillars

    OUR ESG PROGRAM FOCUSES ON FOUR PILLARS Optimizing Resources Creating Great Places Building Communities Operating Responsibly for a healthy environment and for people to live, work and for a prosperous society for a healthy work environment a productive business thrive built on transparency and acco

  18. Slide 18: ESG Program at a Glance

    ESG PROGRAM AT A GLANCE Environmental Social 100% 100% 100% 11,000 $11M $2.2M Portfolio in Utility European Electricity Portfolio with Affordable Housing units Investment in Kennedy Wilson Measurement from Renewable Building Ratings completed and under Historically Foundation Program Sources constru

  19. Slide 19: Financial Review

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

  20. Slide 20: Balance Sheet and Liquidity

    BALANCE SHEET AND LIQUIDITY Reduced Floating Rate Exposure Cash and Credit Facility 99% Fixed: 73% Hedged: 26% $664M Cash: $314M Fixed or Revolving credit Floating: 1% Cash and Lines hedged debt facility: $350M (KW Share) of Credit Credit Profile 4.4% 5.3yrs 4% Effective Weighted avg. Debt (at share

  21. Slide 21: Components of Value

    COMPONENTS OF VALUE Below Are Key Valuation Metrics as of December 31, 2023 Investments Kennedy Wilson’s Share ($ in millions) Income Producing Assets Description Est. Annual NOI(1)(2) 1 Multifamily 33,820 units $269.6 2 Office 8.9 million sq ft 135.8 3 Industrial 11.2 million sq ft 17.0 4 Retail 3.

  22. Slide 22: U.S. Markets

    © KENNEDY WILSON U. S . M A R K E T S Prosper Place, Denver, Colorado

  23. Slide 23: U.S. Stabilized Portfolio

    U.S. STABILIZED PORTFOLIO $237m $301M $301M Estimated Estimated Annual NOI1 Annual NOI1 Sectors Geography Multifamily: 79% Mountain West: 36% Office: 12% Pacific Northwest: 31% Loans: 8% Southern California: 18% Retail / Industrial: 1% Northern California: 13% Other U.S.: 2% © KENNEDY WILSON 1) As d

  24. Slide 24: Mountain West Portfolio by State

    MOUNTAIN WEST PORTFOLIO BY STATE As of Q4-23 Arizona 6% Colorado 13% Nevada New Mexico $108M 25% Alpine Meadows, Sandy, UT 15% Estimated Annual NOI1 Idaho 22% Utah 19% © KENNEDY WILSON Whitewater Park, Boise, ID 1 ) As defined in definitions section in the appendix. Q4-2023 Investor Presentation 23

  25. Slide 25: 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, U.S. Southside by Vintage, Seattle, WA, U.S. Steamboat by Vintage, Reno, NV, U.S. At acquisition (Q2-15) Q4-23 Q4-251 Communities (stabilized) 30 50 57 Sta

  26. Slide 26: European Markets

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

  27. Slide 27: Europe Stabilized Portfolio

    EUROPE STABILIZED PORTFOLIO 93% Ireland and UK $191M $191M Estimated Estimated Annual NOI1 Annual NOI1 Sectors Geography Office: 53% Ireland: 50% Multifamily: 16% United Kingdom: 43% Retail: 12% Italy: 4% Hotel: 11% Spain: 3% Industrial/Loans: 8% © KENNEDY WILSON 1) As defined in definitions section

  28. Slide 28: 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 47.5% Private rental units Annual residential % of apartment dwellers in Ireland1 requirement3 in EU countries5 <5

  29. Slide 29: 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 Q4-2023 Investor Presentation 28

  30. Slide 30: 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 industries3 +2.4% GDP growth forecasted in 20241 Global Leader in Sustainability 1st 4th GDP per unit of World ranking energy use2 for Ecolog

  31. Slide 31: 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) 7.8yrs 5.0yrs WAULT WAUL

  32. Slide 32: 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 Q4-23 South East Q4-23 Dublin Q4-23 Prime rents (£ psf) 150.00 Prime rents (£ psf) 51.50 Prime rents (€ psf) 62.50 Take-up (m sq ft)1 1

  33. Slide 33: Appendix

    © KENNEDY WILSON APPENDIX The Grange, Dublin, Ireland

  34. Slide 34: Multifamily Portfolio: $270M of Estimated Annual NOI

    MULTIFAMILY PORTFOLIO: $270M 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 $238.5M Assets Units $31.1M Assets Units Est. Ann. NOI1 1202 31,2942 Est. Ann. NOI1 103 2,5263 Mountain West

  35. Slide 35: Office Portfolio: $136M of Estimated Annual NOI

    OFFICE PORTFOLIO: $136M 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 $34.8M Assets Area (sq ft) $101.0M Assets Area (sq ft) Est. Ann. NOI1 192 5.4M2 Est. Ann. NOI1 243 3.5M3 Pacific Northwest Southern C

  36. Slide 36: 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 21.0 - 265 Aug-14 2 111 BPR London UK Office 17.6 216 - Nov-14 3 Bella Vista Richmond, CA Nor. Californi

  37. Slide 37: Reconciliation of Net Income to Adjusted EBITDA

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED EBITDA ($ in M) 2023 2022 2021 2020 2019 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders ($341.8) $64.8 $313.2 $92.9 $224.1 Non-GAAP adjustments: Add back (Kennedy Wilson’s Share): In

  38. Slide 38: Reconciliation of Net Income to Adjusted Net Income

    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ($ in M) 2023 2022 2021 2020 2019 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders ($341.8) $64.8 $313.2 $92.9 $224.1 Non-GAAP adjustments: Add back (less): Depreciation and

  39. Slide 39: Estimated Annual NOI Reconciliation to GAAP NOI

    ESTIMATED ANNUAL NOI RECONCILIATION TO GAAP NOI ($ in M) Q4-23 Rental Revenues $99.7 Hotel Revenues 14.4 Rental (Expenses) (38.9) Hotel (Expenses) (10.5) Loans and other 9.1 Consolidated NOI $73.8 Adjustments: Non-controlling interest (1.7) NOI from unconsolidated investments (KW Share) 44.5 Propert

  40. Slide 40: 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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