Kennedy-wilson Holdings Inc. · NYSE:KW

Kennedy-wilson — Q4 2021 Earnings Presentation

42 slides from Kennedy-wilson's earnings presentation, March 2022

  1. Slide 1: Kennedy Wilson 4Q-2021 Investor Presentation

    Kennedy Wilson 4Q-2021 Investor Presentation

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS SECTION 1 Strategic Review Page 2 SECTION 2 Real Estate Portfolio and Creation Page 7 Valuation Opportunities SECTION 3 Investment Management Platform Page 14 SECTION 4 ESG Page 16 SECTION 5 Financial Review Page 19 SECTION 6 Western U.S. Markets Page 23 SECTION 7 European Markets

  3. Slide 3: Strategic Review

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

  4. Slide 4: 2021 Highlights

    2021 HIGHLIGHTS Adjusted EBITDA: $928M in 2021 (vs $608M in 2020) Record Adjusted Net Income: $509M in 2021 (vs $307M in 2020) Financial Results EPS: $2.24 per diluted share in 2021 (vs $0.66 in 2020) Estimated Annual NOI increased by $40M to $434M; +10% in FY-21 Completed $5.9B of Inv. Fee-Bearing

  5. Slide 5: Kennedy Wilson at a Glance

    KENNEDY WILSON AT A GLANCE (NYSE: KW) $22B 35,400 Real Estate AUM1 Multifamily Units 4.4% 24M Dividend Yield2 Commercial Sq Ft © KENNEDY WILSON 1 ) As defined in definitions section in the appendix 2 ) Based on annual dividend of $0.96 and closing share price of $21.85 on 3/2/22 Capital Dock, Dublin

  6. Slide 6: About Kennedy Wilson

    ABOUT KENNEDY WILSON We are a leading global real estate investment company. We own, operate and invest in real estate directly and through our investment management platform. We focus on multifamily and office properties located in the Western U.S., UK, and Ireland. Multifamily: Radius Office: 150

  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 and Value Creation Opportunities

    © KENNEDY WILSON R EA L E S TAT E P O R T F O L I O A N D VA LU E C R EAT I O N O P P O R T U N I T I ES Bristol at Southport, Renton, Washington, U.S.

  9. Slide 9: Two Key Investment Segments

    TWO KEY INVESTMENT SEGMENTS Consolidated Portfolio Co-Investment Portfolio Targeting wholly-owned investments with Includes real estate and loan investments accretive asset management opportunities with strategic partners and commingled fund business (KW ownership 5-50%) U.S. Multifamily: Lofts at 1

  10. Slide 10: Excellent Scale Across Multifamily and Office

    EXCELLENT SCALE ACROSS MULTIFAMILY AND OFFICE Sectors Geography $434M Multifamily: 51% Office: 33% $434M Western U.S.: 57% U.K.: 21% Estimated Estimated Annual NOI1 Retail: 10% Annual NOI1 Ireland: 18% Hotel / Loans / Italy & Spain: 4% Industrial: 6% 379 35,365 23.9 94.5% No. of investments No. of C

  11. Slide 11: Suburban Assets Comprise 74% of Multifamily and Office NOI

    SUBURBAN ASSETS COMPRISE 74% OF MULTIFAMILY AND OFFICE NOI Multifamily and Office $363m Suburban: 74% Multifamily: Mission Hills, Camarillo, CA, U.S. Estimated Urban: 26% Annual NOI1 © KENNEDY WILSON Office: Hamilton Landing, Novato, CA, U.S. 1 ) As defined in definitions section in the appendix 4Q-

  12. Slide 12: Office NOI: 89% from Low and Mid-Rise Properties

    OFFICE NOI: 89% FROM LOW AND MID-RISE PROPERTIES Low / Mid / High-Rise Low-rise: 34% $143m Mid-rise: 55% Estimated High-rise: 11% Annual NOI1 Low-rise office: The Heights, Weybridge, UK Tenant Concentration Single Tenant / $143m Business Park: 73% Estimated Multiple: 27% Annual NOI1 © KENNEDY WILSON

  13. Slide 13: Development and Leasing Pipeline to Add ~$105M in NOI

    DEVELOPMENT AND LEASING PIPELINE TO ADD ~$105M IN NOI 2022-2023 2024-2025 $38M $67M Ten Hanover Quay, Dublin 2 Dovetail, Boise, Idaho Kona Village Resort, Kona, Hawaii Kildare Street, Dublin 2 Oxbow, Bozeman, Montana Coopers Cross, Dublin © KENNEDY WILSON 136 El Camino, Beverly Hills, CA Grange, Dub

  14. Slide 14: NOI Delivery from Completion of Development and Future Leasing

    NOI DELIVERY FROM COMPLETION OF DEVELOPMENT & FUTURE LEASING +$105M of Est. Ann. NOI by 2025 $60 $56 $50 $22 $40 $30 $23 $20 $8 $15 $34 $11 $10 $3 $12 $15 $8 $0 $3 2022 2023 2024 2025 US Europe © KENNEDY WILSON 4Q-2021 Investor Presentation 13

  15. Slide 15: 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

  16. Slide 16: Fee-Bearing Capital Raised from Broad Institutional Investor Base

    FEE-BEARING CAPITAL RAISED FROM BROAD INSTITUTIONAL INVESTOR BASE Investor Type Investor By Geography Investor Type Insurance Geography Company: 46% Canada.: 31% $5.0B Sovereign Wealth Fund: 19% $5.0B U.S.: 29% Fee-Bearing Pension Fund: 15% Fee-Bearing Asia: 23% Capital1,2 Capital1 Family Office: 8%

  17. Slide 17: ESG Overview

    © KENNEDY WILSON E S G OV E RV I E W Kona Village Resort, Kona, Hawaii 16

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

    OUR ESG PROGRAM FOCUSES ON FOUR PILLARS © KENNEDY WILSON 4Q-2021 Investor Presentation

  19. Slide 19: ESG Program at a Glance

    ESG PROGRAM AT A GLANCE © KENNEDY WILSON 4Q-2021 Investor Presentation 18

  20. Slide 20: Financial Review

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

  21. Slide 21: Key Financial Metrics

    KEY FINANCIAL METRICS Adjusted EBITDA Adjusted Net Income $ in M $ in M $928 $509 $713 $728 $443 $397 $608 $307 $456 $243 2017 18 19 20 21 2017 18 19 20 21 Fee-Bearing Capital1 EPS $ in B $5.0 $2.24 $3.9 $1.58 $3.2 $3.0 $1.04 $0.83 $1.8 $0.66 © KENNEDY WILSON 2017 18 19 20 21 2017 18 19 20 21 1 ) As

  22. Slide 22: Solid Balance Sheet with Strong Liquidity Position

    SOLID BALANCE SHEET WITH STRONG LIQUIDITY POSITION Cash and Credit Facility Reduced Floating Rate Risk $950M Cash: $525M 88% Fixed: 72% Hedged via interest Revolving credit Fixed or Cash and Lines rate cap: 16% facility: $425M hedged debt of Credit (KW Share) Floating: 12% Strong Credit Profile 3.5%

  23. Slide 23: Components of Value

    COMPONENTS OF VALUE Below Are Key Valuation Metrics as of December 31, 2021 Investments Kennedy Wilson’s Share ($ in millions) Income Producing Assets Description Est. Annual NOI(1)(2) 1 Multifamily 30,218 units $219.3 2 Office 10.1 million sq ft 143.2 3 Retail and Industrial 10.9 million sq ft 53.7

  24. Slide 24: Western U.S. Markets

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

  25. Slide 25: U.S. Stabilized Portfolio

    U.S. STABILIZED PORTFOLIO $237m $248m $248m Estimated Estimated Annual NOI1 Annual NOI1 Sectors Sectors Multifamily: 76% Pacific Northwest: 34% Office: 17% Mountain West: 33% Retail / Industrial: 4% Southern California: 18% Loans: 3% Northern California: 15% © KENNEDY WILSON 1) As defined in definit

  26. Slide 26: Mountain West Portfolio by State

    MOUNTAIN WEST PORTFOLIO BY STATE As of 4Q-21 Other 9% Colorado 15% Utah $80m 27% Alpine Meadows, Sandy, UT Estimated Annual NOI1 Nevada 23% Idaho 26% © KENNEDY WILSON Whitewater Park, Boise, ID 1 ) As defined in definitions section in the appendix 4Q-2021 Investor Presentation 25

  27. Slide 27: Mountain West Represents Largest Apartment Region

    MOUNTAIN WEST REPRESENTS LARGEST APARTMENT REGION 238% Growth in Since 2018 4Q-17 4Q-21 238% Est. Ann. NOI1 $21m $71 Multifamily units 154% (stabilized) 4,400 11,155 Multifamily units (under development) 845 1,034 © KENNEDY WILSON 1 ) As defined in definitions section in the appendix 4Q-2021 Investo

  28. Slide 28: Vintage Housing: Growing Our Affordable Housing Portfolio

    VINTAGE HOUSING: GROWING OUR AFFORDABLE HOUSING PORTFOLIO 25% Growth in Stabilized Units by YE-23 Vintage at Urban Center, Lynwood, WA, U.S. Southside by Vintage, Seattle, WA, U.S. Steamboat by Vintage, Reno, NV, U.S. At acquisition (2Q-15) 4Q-21 4Q-241 Communities (stabilized) 30 42 52 Stabilized u

  29. Slide 29: European Markets

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

  30. Slide 30: Europe Stabilized Portfolio

    EUROPE STABILIZED PORTFOLIO $186m $186m Estimated Estimated Annual NOI1 Annual NOI1 Sectors Geography Office: 54% United Kingdom: 49% Retail: 19% Ireland: 43% Multifamily: 17% Italy: 5% Hotel: 5% Spain: 3% Industrial / Loans: 5% © KENNEDY WILSON 1) As defined in definitions section in the appendix 4

  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 342,612 34,000 46.2% Private rental units Annual residential % of apartment dwellers in Ireland1 requirement3 in EU countries5 <5

  32. Slide 32: 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 4Q-2021 Investor Presentation 31

  33. Slide 33: 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 industries4 +4.9% GDP growth pa1 Global leader in innovation 1st Top 20 World ranking for Ecological World ranking Sustainability2 for innova

  34. Slide 34: 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 40% 99% Upward-only FRI leases rent reviews or fixed uplifts Upward-only rent reviews in UK (and pre-2010 in Ireland) 8.0yrs 5.4yrs WAULT WAULT

  35. Slide 35: 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 Hook Farnborough Dublin London 4Q-21 South East 4Q-21 Dublin 4Q-21 Prime rents (£ psf) 120.00 Prime rents (£ psf) 42.50 Prime rents (£ psf) 57.50 Take-up (m sq f

  36. Slide 36: Appendix

    © KENNEDY WILSON APPENDIX One Embassy Gardens , London, UK

  37. Slide 37: Multifamily Portfolio: $219M of Estimated Annual NOI

    MULTIFAMILY PORTFOLIO: $219M OF ESTIMATED ANNUAL NOI 1 Seattle WA Boise Portland OR ID Reno NV San Francisco UT Salt Lake City CA Dublin Bay Area Los Angeles Las Vegas Cork U.S. Ireland $188.1M Assets Units $31.2M Assets Units Est. Ann. NOI1 1052 27,6862 Est. Ann. NOI1 113 2,5323 Mountain West (UT,

  38. Slide 38: Office Portfolio: $143M of Estimated Annual NOI

    OFFICE PORTFOLIO: $143M 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 $41.5M Assets Area (sq ft) $101.7M Assets Area (sq ft) Est. Ann. NOI1 212 6.2M2 Est. Ann. NOI1 293 3.9M3 Pacific Northwest Southern C

  39. Slide 39: KW Top Assets

    KW TOP 20 ASSETS Accounts for 38% of Estimated Annual NOI KW share Commercial Units Acquisition Asset name Location Region Sector of NOI2 (000 sq ft) /rooms date 1 90 East Issaquah, WA Pacific Northwest Office 15.4 587 - Jun-17 2 111 BPR London U.K. Office 13.7 216 - Nov-14 3 Bella Vista Richmond, C

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

    RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA ($ in M) 2021 2020 2019 2018 2017 Net (loss) income $336.4 $107.8 $321.1 $212.1 $138.0 Non-GAAP adjustments: Add back: Interest expense 192.4 201.9 214.2 238.2 217.7 Loss on early extinguishment of debt 45.7 9.3 0.9 - - Kennedy Wilson’s share of intere

  41. Slide 41: Reconciliation of Net Income to Adjusted Net Income

    RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME ($ in M) 2021 2020 2019 2018 2017 Net (loss) income $336.4 $107.8 $321.1 $212.1 $138.0 Non-GAAP adjustments: Add back (less): Depreciation and amortization 166.3 179.6 187.6 206.1 212.5 Kennedy Wilson’s share of depreciation and amortization includ

  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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