Kennedy-wilson Holdings Inc. · NYSE:KW
Kennedy-wilson — Q3 2024 Earnings Presentation
36 slides from Kennedy-wilson's earnings presentation, Nov 7, 2024
Slide 1: Kennedy Wilson Q3-2024 Investor Presentation
University Glen Apartments Camarillo, CA Kennedy Wilson Q3-2024 Investor Presentation
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 Financial Review Page 21 SECTION 5 ESG Overview Page 24 SECTION 6 Appendix Page 27 © KENNEDY WILSON Geo, Shoreline, Washington Q3-2024 Investor Presen
Slide 3: Strategic Review
© KENNEDY WILSON S T R AT EG I C R E V I E W The Clara, Boise, Idaho
Slide 4: Strategic Initiatives
STRATEGIC INITIATIVES 1 Stabilize Lease-ups ✓ Two multifamily properties stabilized in Q3-24 adding $12M in and Developments Estimated Annual NOI ✓ Incremental NOI of ~$60 million from development and lease- up portfolio once stabilized 2 Strategic Asset ✓ Disposal of non-core assets expected to gen
Slide 5: Kennedy Wilson at a Glance
KENNEDY WILSON AT A GLANCE $28B ~60,000 $8.8B Assets Under Multifamily Units Fee-Bearing Management1 Owned or Financed2 Capital1 36 years KW 246 / 15 Investment NYSE, Employees / Offices History S&P 600 Member © KENNEDY WILSON Dovetail, Meridian, Idaho As of September 30, 2024 Q3-2024 1) As defined
Slide 6: A Simplified Kennedy Wilson
A SIMPLIFIED KENNEDY WILSON $492M ~$60M ~$100M Estimated Annual NOI Est. Annual NOI at stabilization Est. 2024 Investment (from stabilized from lease-up and development Management Fees portfolio) portfolio by YE-26 © KENNEDY WILSON Oxbow, Bozeman, Montana Q3-2024 Investor Presentation 5
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
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
Slide 9: Stabilized Portfolio Breakdown
STABILIZED PORTFOLIO BREAKDOWN Multifamily, Loans, and Industrial represents ~70% of portfolio Sectors Geography $492M Multifamily: 62% EU Office: 21% $492M U.S.: 65% Ireland: 18% Estimated Estimated Annual NOI1 U.S. Office: 6% Annual NOI1 U.K.: 16% Loans: 5% Other: 1% Industrial: 4% Retail: 2% 460
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 $262M $16M $316M $8.8B $46M Consolidated
Slide 11: Global Multifamily Portfolio Totals ~39,000 Units
GLOBAL MULTIFAMILY PORTFOLIO TOTALS ~39,000 UNITS1 88% of portfolio is comprised of suburban assets Boise Seattle Montana Washington Portland 86% Western U.S. Oregon Idaho Region Reno Mountain West : 36% 3 Nevada $305M East Bay Area Pacific Northwest: 27% Utah California Colorado Estimated Southern
Slide 12: High Quality Multifamily Communities
HIGH QUALITY MULTIFAMILY COMMUNITIES The Clara, Eagle, ID Bristol at Southport, Renton, WA Mission Hills, Camarillo, CA Cantata at the Trails, Albuquerque, NM © KENNEDY WILSON Atlas, Issaquah, WA Coopers Cross, Dublin, Ireland Q3-2024 Investor Presentation 11
Slide 13: Investment Management Platform
© KENNEDY WILSON I N V E ST M E N T M A N A G E M E N T P L AT F O R M Clancy Quay, Dublin, Ireland
Slide 14: Investment Management Growth Strategy Today
INVESTMENT MANAGEMENT GROWTH STRATEGY TODAY KW has developed deep relationships with well-capitalized institutional 1 Relationships investors across Asia, Canada, Europe, the Middle East, and the U.S. Focus on launching new strategies as capital deployment 2 Strategies opportunities strengthen Signi
Slide 15: Growing Platforms Focused on Multifamily, Credit, and Industrial
GROWING PLATFORMS FOCUSED ON MULTIFAMILY, CREDIT, AND INDUSTRIAL Rental Housing Debt Platform Logistics Opportunity Today Opportunity Today Opportunity Today ✓ Continued structural shortage of rental housing ✓ Certain banks/non-bank lenders are largely out ✓ Supply and demand imbalances in strong in
Slide 16: Strong Track Record of Growth
STRONG TRACK RECORD OF GROWTH Fee-Bearing Capital 10.0 ($ in billions) 9.0 8.0 7.0 27% 6.0 CAGR 5.0 $8.4 $8.8 4.0 3.0 $5.9 $5.0 2.0 $3.9 $3.0 1.0 $2.2 0.0 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 9/30/24 Investment Management Fees1 100.0 ($ in millions) 90.0 80.0 70.0 60.0 37% 50.0 CAGR
Slide 17: 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% $8.8B Sovereign Wealth Fund: 13% $8.8B U.S.: 19% Fee-Bearing Pension Fund: 8% Fee-Bearing Asia: 16% Capital1,2 Capital1,2 Private Equity: 5% Europe: 5% Family O
Slide 18: 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
Slide 19: Debt Platform Overview
DEBT PLATFORM OVERVIEW Sectors Residential: 66% Office: 12% $8.2B Hotel: 10% Multifamily Construction Loan: Alexan West End Loan Industrial: 4% Long Beach, CA Commitments Retail : 3% Other : 5% Student Housing Construction Loan: Aspire A&M College Station, TX $5.1B $3.1B 5.3% $4.9B © KENNEDY WILSON
Slide 20: Construction Loans Provide KW a National Footprint
CONSTRUCTION LOANS PROVIDE KW A NATIONAL FOOTPRINT Bloomington, IN Bozeman, MT Colorado Springs, CO Chicago, IL Seattle, WA Denver, CO Salt Lake City, UT Jersey City, NJ Madison, WI Old Tappan / Hackensack, NJ Tigard, OR Syracuse, NY Sacramento, CA Stockton, CA New York, NY Philadelphia, PA Washingt
Slide 21: EU Logistics Platform Overview
EU LOGISTICS PLATFORM OVERVIEW Sectors UK: 90% $1.4B Ireland: 8% UK Industrial: Spire Green, Harlow Portfolio Value Other: 2% IRL Industrial: Courtstown, Little Island $1.4B $1.1B 20% $463M Portfolio Value Remaining Capacity KW Ownership Fee-Bearing Capital1 © KENNEDY WILSON 1 ) As defined in defini
Slide 22: Financial Review
© KENNEDY WILSON FINANCIAL REVIEW One Embassy Gardens , London, UK
Slide 23: Balance Sheet and Liquidity
BALANCE SHEET AND LIQUIDITY Reduced Floating Rate Exposure Cash and Credit Facility 96% Fixed: 73% Hedged: 23% $695M Cash1: $367M Fixed or Revolving credit Floating: 4% Cash and Lines hedged debt facility: $373M (KW Share) of Credit 4.6% 4.8yrs 2028 €175M Effective Weighted avg. Credit Facility Q4-2
Slide 24: Components of Value
COMPONENTS OF VALUE Key Valuation Metrics as of September 30, 2024: Investments Kennedy Wilson’s Share ($ in millions) Income Producing Assets Description Est. Annual NOI(1)(2) 1 Multifamily 36,381 units $304.6 2.5 million consolidated square feet 2a EU Office 103.7 1.0 million co-investment square
Slide 25: ESG Overview
© KENNEDY WILSON E S G OV E RV I E W Kona Village, A Rosewood Resort, Kona, Hawaii
Slide 26: 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
Slide 27: ESG Program at a Glance
ESG PROGRAM AT A GLANCE 1 Environmental Social 100% 100% 100% 12,000 $6.9M $2.4M Portfolio in Utility European Electricity Portfolio with Affordable Housing units Investment in Kennedy Wilson 4 Measurement from Renewable Building Ratings completed and under Historically Foundation 2 3 1 Program Sour
Slide 28: Appendix
© KENNEDY WILSON APPENDIX The Grange, Dublin, Ireland
Slide 29: Vintage Housing: Growing Our Affordable Housing Portfolio
VINTAGE HOUSING: GROWING OUR AFFORDABLE HOUSING PORTFOLIO 15% Growth Expected in Stabilized Units by YE-25 Vintage at Urban Center, Lynwood, WA Southside by Vintage, Seattle, WA Steamboat by Vintage, Reno, NV At acquisition (Q2-15) Q3-24 Q4-251 Communities (stabilized) 30 52 59 Stabilized units 5,50
Slide 30: Irish Multifamily: Market Imbalance Creates Opportunity
IRISH MULTIFAMILY: MARKET IMBALANCE CREATES OPPORTUNITY Low institutional Urgent need for new Fewer apartment dwellers ownership residential stock than other EU countries 246,453 52,000 47.5% Private rental units Annual residential % of apartment dwellers in Ireland1 requirement3 in EU countries5 <5
Slide 31: Strong Office Fundamentals and Favorable UK & Irish Lease Structures
STRONG OFFICE FUNDAMENTALS AND FAVORABLE UK & IRISH LEASE STRUCTURES UK & Irish leases KW UK & Ireland office portfolio1 Long-term with 5-year rent reviews 42.3% 99.6% Upward-only FRI leases rent reviews or fixed uplifts Upward-only rent reviews in UK (and pre-2010 in Ireland) 7.5yrs 4.8yrs WAULT WA
Slide 32: KW Top Assets by Est. Annual NOI
KW TOP 20 ASSETS BY EST. ANNUAL NOI Accounts Est. Annual Commercial Acquisition Asset name for 35% of Location Estimated Annual Region NOI Sector MF Units NOI1 (000 sq ft) date 1 111 BPR London UK Office 19.3 216 - Nov-14 2 University Glen Camarillo, CA So. California Multifamily 14.3 - 696 Aug-16 3
Slide 33: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED EBITDA ($ in M) Q3-24 2023 2022 2021 2020 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $(77.4) $(341.8) $64.8 $313.2 $92.9 Non-GAAP adjustments: Add back (Kennedy Wilson’s Share):
Slide 34: Reconciliation of Net Income to Adjusted Net Income
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KWH COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ($ in M) Q3-24 2023 2022 2021 2020 Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $(77.4) $(341.8) $64.8 $313.2 $92.9 Non-GAAP adjustments: Add back (less): Depreciation a
Slide 35: Estimated Annual NOI Reconciliation to GAAP NOI
ESTIMATED ANNUAL NOI RECONCILIATION TO GAAP NOI ($ in M) Q3-24 Rental Revenues $97.8 Rental (Expenses) (39.0) Loans 7.6 Consolidated NOI $66.4 Adjustments: Non-controlling interest (2.0) NOI from unconsolidated investments (KW Share) 49.1 Property-Level NOI – Q3-24 (KW Share) $113.5 Adjustments: Ass
Slide 36: Appendix: Definitions
APPENDIX DEFINITIONS: Adjusted EBITDA represents net (loss) income before interest expense, loss (gain) 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 unconso
Kennedy-Wilson Holdings — Q3 2024 Earnings Presentation on 6ix