Kennedy-Wilson 8K Kennedy Wilson Reports 2Q 2012 Earnings | KW 6 Aug 12

Exhibit 99.2

Kennedy-Wilson Holdings, Inc.

Second Quarter 2012

Supplemental Financial Information

Kennedy-Wilson Holdings, Inc.

Supplemental Financial Information

For the Quarter Ended June 30, 2012

TABLE OF CONTENTS

Note about Non-GAAP financial information included in this presentation

In addition to the results reported in accordance with U.S. generally accepted accounting principles (GAAP) included within this presentation, Kennedy-Wilson Holdings, Inc. (Kennedy Wilson) has provided certain information, which includes non-GAAP financial measures (pro forma consolidated statements of income or operations, EBITDA and Adjusted EBITDA). Such information is reconciled to its closest GAAP measure in accordance with the rules of the Securities and Exchange Commission and is included within this presentation. Management believes that these non-GAAP financial measures are useful to both management and Kennedy Wilson's shareholders in their analysis of the business and operating performance of Kennedy Wilson. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measures. Additionally, non-GAAP financial measures as presented by Kennedy Wilson may not be comparable to similarly titled measures reported by other companies.

Kennedy-Wilson Holdings, Inc.

Pro Forma Consolidated Statements of Operations (Non-GAAP)



	Three months ended June 30,
	2012									2011
	Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total			Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total
Revenue
Management and leasing fees	$	10,232,000		$	—		$	10,232,000		$	4,946,000		$	—		$	4,946,000
Commissions	2,401,000			—			2,401,000			2,609,000			—			2,609,000
Sale of real estate	—			43,600,000			43,600,000			—			25,009,000			25,009,000
Rental and other income	1,477,000			16,123,000			17,600,000			955,000			14,940,000			15,895,000
Interest income	—			5,883,000			5,883,000			—			3,140,000			3,140,000
Total revenue	14,110,000			65,606,000			79,716,000			8,510,000			43,089,000			51,599,000
Operating expenses
Commission and marketing expenses	1,340,000			—			1,340,000			736,000			—			736,000
Compensation and related expenses	10,294,000			100,000			10,394,000			8,257,000			—			8,257,000
Cost of real estate sold	—			38,200,000			38,200,000			—			22,420,000			22,420,000
General and administrative	4,888,000			200,000			5,088,000			3,040,000			—			3,040,000
Depreciation and amortization	977,000			4,000,000			4,977,000			463,000			3,984,000			4,447,000
Rental operating expenses	921,000			5,700,000			6,621,000			642,000			6,649,000			7,291,000
Total operating expenses	18,420,000			48,200,000			66,620,000			13,138,000			33,053,000			46,191,000
Equity in joint venture income	5,108,000			(5,108,000		)	—			2,551,000			(2,551,000		)	—
Interest income from loan pool participations and notes receivable	2,876,000			(2,876,000		)	—			2,241,000			(2,241,000		)	—
Operating income	3,674,000			9,422,000			13,096,000			164,000			5,244,000			5,408,000
Non-operating income (expense)
Interest income	1,207,000			(1,207,000		)	—			401,000			(401,000		)	—
Carried interest on realized investment	—			500,000			500,000			—			—			—
Remeasurement gain	—			—			—			6,348,000			—			6,348,000
Foreign currency exchange gain	38,000			—			38,000			—			—			—
Interest expense	(7,054,000		)	(7,715,000		)	(14,769,000		)	(6,228,000		)	(4,843,000		)	(11,071,000		)
Other non-operating expenses	—			(1,000,000		)	(1,000,000		)	—			—			—
(Loss) income before benefit from (provision for) income taxes	(2,135,000		)	—			(2,135,000		)	685,000			—			685,000
Benefit from (provision for) income taxes	1,138,000			—			1,138,000			(172,000		)	—			(172,000		)
(Loss) income from continuing operations	$	(997,000	)	$	—		$	(997,000	)	$	513,000		$	—		$	513,000

Kennedy-Wilson Holdings, Inc.

Pro Forma Consolidated Statements of Income (Non-GAAP)



	Six months ended June 30,
	2012									2011
	Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total			Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total
Revenue
Management and leasing fees	$	18,973,000		$	—		$	18,973,000		$	9,957,000		$	—		$	9,957,000
Commissions	4,020,000			—			4,020,000			5,170,000			—			5,170,000
Sale of real estate	—			58,800,000			58,800,000			417,000			31,135,000			31,552,000
Rental and other income	2,947,000			33,924,000			36,871,000			1,693,000			33,422,000			35,115,000
Interest income	—			8,138,000			8,138,000			—			6,379,000			6,379,000
Total revenue	25,940,000			100,862,000			126,802,000			17,237,000			70,936,000			88,173,000
Operating expenses
Commission and marketing expenses	2,305,000			—			2,305,000			1,373,000			—			1,373,000
Compensation and related expenses	19,294,000			500,000			19,794,000			16,089,000			—			16,089,000
Cost of real estate sold	—			50,100,000			50,100,000			397,000			27,152,000			27,549,000
General and administrative	8,557,000			300,000			8,857,000			5,853,000			—			5,853,000
Depreciation and amortization	1,914,000			7,900,000			9,814,000			897,000			7,709,000			8,606,000
Rental operating expenses	1,791,000			11,800,000			13,591,000			1,053,000			12,505,000			13,558,000
Total operating expenses	33,861,000			70,600,000			104,461,000			25,662,000			47,366,000			73,028,000
Equity in joint venture income	10,624,000			(10,624,000		)	—			7,807,000			(7,807,000		)	—
Interest income from loan pool participations and notes receivable	3,414,000			(3,414,000		)	—			4,787,000			(4,787,000		)	—
Operating income	6,117,000			16,224,000			22,341,000			4,169,000			10,976,000			15,145,000
Non-operating income (expense)
Interest income	2,324,000			(2,324,000		)	—			667,000			(667,000		)	—
Carried interest on realized investment	—			2,400,000			2,400,000			—			—			—
Remeasurement gain	—			—			—			6,348,000			—			6,348,000
Gain on sale of marketable securities	2,931,000			—			2,931,000			—			—			—
Foreign currency exchange loss	(74,000		)	—			(74,000		)	—			—			—
Interest expense	(13,224,000		)	(15,000,000		)	(28,224,000		)	(7,757,000		)	(10,309,000		)	(18,066,000		)
Other non-operating expenses	—			(1,300,000		)	(1,300,000		)	—			—			—
(Loss) income before benefit from (provision for) income taxes	(1,926,000		)	—			(1,926,000		)	3,427,000			—			3,427,000
Benefit from (provision for) income taxes	2,621,000			—			2,621,000			(835,000		)	—			(835,000		)
Income from continuing operations	$	695,000		$	—		$	695,000		$	2,592,000		$	—		$	2,592,000

Kennedy-Wilson Holdings, Inc.

Adjusted EBITDA



	Three months ended June 30,					Six months ended June 30,
	2012			2011		2012			2011
Net (loss) income	$	(997,000	)	$	513,000	$	485,000		$	2,592,000
Non-GAAP adjustments:
Add back:
Interest expense	7,054,000			6,228,000		13,224,000			7,757,000
Kennedy Wilson's share of interest expense included in investment in joint ventures and loan pool participations	7,715,000			4,843,000		15,000,000			10,309,000
Depreciation and amortization	977,000			463,000		1,914,000			897,000
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures	4,000,000			3,984,000		7,900,000			7,709,000
(Benefit from) provision for income taxes	(1,138,000		)	172,000		(2,621,000		)	835,000
EBITDA	17,611,000			16,203,000		35,902,000			30,099,000
Stock based compensation	1,207,000			1,298,000		2,078,000			2,465,000
Adjusted EBITDA	$	18,818,000		$	17,501,000	$	37,980,000		$	32,564,000

Kennedy-Wilson Holdings, Inc.

EBITDA by Segment



	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Investments
Rental and other income and sale of real estate	$	1,477,000		$	955,000		$	2,947,000		$	2,110,000
Operating expenses	(6,305,000		)	(4,661,000		)	(11,821,000		)	(9,324,000		)
Equity in income of joint ventures	5,108,000			2,551,000			10,624,000			7,807,000
Income from loan pool participations and notes receivable	2,876,000			2,241,000			3,414,000			4,787,000
Operating income	3,156,000			1,086,000			5,164,000			5,380,000
Remeasurement gain	—			6,348,000			—			6,348,000
Gain on sale of marketable securities	—			—			2,931,000			—
Realized foreign currency exchange gain (loss)	38,000			—			(74,000		)	—
Interest income - related party	1,182,000			—			2,269,000			—
Interest expense	(159,000		)	(74,000		)	(317,000		)	(151,000		)
Income from continuing operations	4,217,000			7,360,000			9,973,000			11,577,000
Income from discontinued operations, net of income taxes	—			—			2,000			—
Loss from sale of real estate, net of income taxes	—			—			(212,000		)	—
Net income	4,217,000			7,360,000			9,763,000			11,577,000
Add back:
Interest expense	159,000			74,000			317,000			151,000
Kennedy Wilson's share of interest expense included in investment in joint ventures and loan pool participation	7,715,000			4,843,000			15,000,000			10,309,000
Depreciation and amortization	860,000			380,000			1,682,000			739,000
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures	4,000,000			3,984,000			7,900,000			7,709,000
EBITDA	$	16,951,000		$	16,641,000		$	34,662,000		$	30,485,000



	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Services
Management and leasing fees and commissions	$	12,633,000		$	7,555,000		$	22,993,000		$	15,127,000
Operating expenses	(9,096,000		)	(6,077,000		)	(16,733,000		)	(11,857,000		)
Operating income	3,537,000			1,478,000			6,260,000			3,270,000
Net income	3,537,000			1,478,000			6,260,000			3,270,000
Add back:
Depreciation and amortization	34,000			30,000			67,000			65,000
EBITDA	$	3,571,000		$	1,508,000		$	6,327,000		$	3,335,000

Kennedy-Wilson Holdings, Inc.

Consolidated Balance Sheets



	June 30, 2012			December 31, 2011

Assets
Cash and cash equivalents	$	86,494,000		$	115,926,000
Accounts receivable	3,465,000			3,114,000
Accounts receivable — related parties	16,126,000			15,612,000
Notes receivable	11,420,000			7,938,000
Notes receivable — related parties	40,101,000			33,269,000
Real estate, net	112,770,000			115,880,000
Investments in joint ventures	360,781,000			343,367,000
Investment in loan pool participations	121,328,000			89,951,000
Marketable securities	10,326,000			23,005,000
Other assets	20,042,000			20,749,000
Goodwill	23,965,000			23,965,000
Total assets	$	806,818,000		$	792,776,000

Liabilities
Accounts payable	$	672,000		$	1,798,000
Accrued expenses and other liabilities	22,134,000			24,262,000
Accrued salaries and benefits	4,717,000			14,578,000
Deferred tax liability	20,592,000			18,437,000
Senior notes payable	249,411,000			249,385,000
Mortgage loans payable	30,748,000			30,748,000
Borrowings under line of credit	34,189,000			—
Junior subordinated debentures	40,000,000			40,000,000
Total liabilities	402,463,000			379,208,000
Equity
Common stock	6,000			5,000
Additional paid-in capital	405,380,000			407,335,000
(Accumulated deficit) retained earnings	(2,152,000		)	9,708,000
Accumulated other comprehensive income	9,501,000			5,035,000
Shares held in treasury at cost	(9,856,000		)	(11,848,000		)
Total Kennedy-Wilson Holdings, Inc. shareholders' equity	402,879,000			410,235,000
Noncontrolling interests	1,476,000			3,333,000
Total equity	404,355,000			413,568,000
Total liabilities and equity	$	806,818,000		$	792,776,000

Kennedy-Wilson Holdings, Inc.

Capitalization Summary



	June 30, 2012			December 31, 2011
Market Data
Common stock price per share	$	14.01		$	10.58
Common stock and convertible preferred stock:
Basic shares outstanding ⁽¹⁾	55,117,598			51,825,998
Series A mandatory convertible preferred ⁽²⁾	8,058,018			8,058,018
Series B mandatory convertible preferred ⁽³⁾	3,042,056			3,042,056
Total common stock and convertible preferred stock	66,217,672			62,926,072

Equity Market Capitalization	$	927,709,585		$	665,757,842

Debt
Senior notes payable ⁽⁴⁾	250,000,000			250,000,000
Borrowings under line of credit ⁽⁵⁾	34,189,000			—
Mortgage loans payable	30,748,000			30,748,000
Junior subordinated debentures	40,000,000			40,000,000
Total debt	$	354,937,000		$	320,748,000
Noncontrolling interest	1,476,000			3,333,000
Total Capitalization	$	1,284,122,585		$	989,838,842
Less: cash and cash equivalents	(86,494,000		)	(115,926,000		)
Total Enterprise Value	$	1,197,628,585		$	873,912,842
Warrants outstanding ⁽⁶⁾	5,934,144			6,435,644

(1) In July 2012, the Company issued 8.6 million shares of common stock to institutional investors resulting in gross proceeds of $112.1 million.

(2) $100 million of Series A mandatory convertible preferred with a mandatory conversion date of May 19, 2015 and a conversion rate of $12.41 per share.

(3) $32.5 million of Series B mandatory convertible preferred with a mandatory conversion date of November 3, 2018 and a conversion rate of $10.70 per share.

(4) Represents principal balance of senior notes.

(5) Represents line of credit balance which was fully paid off subsequent to June 30, 2012.

(6) The warrants carry an exercise price of $12.50 and expire on November 14, 2014.

Kennedy-Wilson Holdings, Inc. and Subsidiaries

Investment Account Detail

(in millions)



	6/30/2012			December 31, 2011
Investment in joint ventures	$	360.8		$	343.4
Real estate	112.8			115.9
Mortgage debt	(30.7		)	(30.7		)
Notes receivable	51.5			41.2
Loan pool participations	121.3			90.0
Marketable securities	10.3			23.0
Total	$	626.0		$	582.8

Investment Account Detail at June 30, 2012



	Multifamily		Loans Secured by Real Estate		Commercial		Residential		Other		Total
Western U.S.	$	128.7	$	153.0	$	53.5	$	80.4	$	—	$	415.6
Japan	105.2		—		9.0		—		—		114.2
United Kingdom and Ireland	15.5		62.3		—		—		10.3		88.1
Other	0.4		—		2.2		0.2		5.3		8.1
Total	$	249.8	$	215.3	$	64.7	$	80.6	$	15.6	$	626.0

Investment Account Detail at December 31, 2011



	Multifamily		Loans Secured by Real Estate		Commercial		Residential		Other		Total
Western U.S.	$	131.3	$	106.5	$	52.3	$	78.4	$	—	$	368.5
Japan	112.1		—		9.3		—		—		121.4
United Kingdom and Ireland	—		60.0		—		—		23.0		83.0
Other	0.2		4.8		0.7		0.1		4.1		9.9
Total	$	243.6	$	171.3	$	62.3	$	78.5	$	27.1	$	582.8

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Multifamily

($ in millions)



					Net Operating Income (NOI)
	# of Properties	# of Units	Occupancy ⁽¹⁾		QTD Annualized ⁽²⁾		Debt ⁽³⁾		Pre-Promote Ownership%		Book Equity ⁽¹⁾
Western U.S.	29	11,118	93.7	%	$	98.6	$	1,180.1	28.6	%	$	128.7
Japan ⁽⁴⁾	50	2,410	92.9		30.3		334.4		40.9		105.2
United Kingdom and Ireland ⁽⁴⁾	1	210	98.0		2.9		—		30.0		15.5
Other	3	376	82.4		1.1		5.8		9.3		0.4
Total	83	14,114	93.3	%	$	132.9	$	1,520.3	31.3	%	$	249.8

(1) As of June 30, 2012.

(2) Represents current quarter NOI on an annualized basis.

(3) Debt represents 100% debt balance against properties as of June 30, 2012.

(4) Estimated foreign exchange rates are ¥80 = $1 USD, £0.63 = $1 USD and €0.80 = $1 USD, related to NOI and debt.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Loan Purchases and Originations

($ in millions)

Loan Purchases



	# of Loans ⁽¹⁾	Initial UPB ⁽²⁾		# of Unresolved Loans	Total Resolutions		Current UPB		Pre-Promote KW Share of Current UPB (net of venture-level debt)		Venture-level Debt ⁽³⁾		Pre-Promote Ownership%		KW Book Equity
Western U.S.	103	$	577.1	33	$	352.9	$	218.6	$	81.3	$	19.7	40.8	%	$	67.8
United Kingdom and Ireland ⁽⁴⁾	58	2,074.7		41	689.6		1,385.1		90.8		164.6		12.5		62.3
Total	161	$	2,651.8	74	$	1,042.5	$	1,603.7	$	172.1	$	184.3	16.4	%	$	130.1

Loan Originations



	# of Loans	Current UPB		WAV Interest Rate		Venture-level Debt ⁽³⁾		Pre-Promote Ownership%		KW Book Equity
Western U.S.	8	$	85.2	12.4	%	$	—	100.0	%	$	85.2
Total	8	$	85.2	12.4	%	$	—	100.0	%	$	85.2

(1) Represents total number of loans at initial acquisition of respective pools.

(2) Unpaid Principal Balance.

(3) Venture-level debt represents 100% debt balance against loans as of June 30, 2012.

(4) Estimated foreign exchange rate is £0.63 = $1 USD. KW owns a 50% interest in an entity which in turn owns 25% of the loan pool. The entity has debt of $164.6 million as of June 30, 2012.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Commercial

($ in millions)



					Net Operating Income (NOI)
	# of Properties	Total Sq. Ft.	Occupancy ⁽¹⁾		QTD Annualized ⁽²⁾		Debt ⁽³⁾		Pre-Promote Ownership%		Book Equity ⁽¹⁾
Western U.S.	15	2,795,487	79.2	%	$	30.8	$	358.1	37.2	%	$	53.5
Japan ⁽⁴⁾	1	9,633	100.0		0.5		—		78.2		9.0
Other	4	478,450	72.3		2.6		26.4		17.7		2.2
Total	20	3,283,570	78.3	%	$	33.9	$	384.5	36.3	%	$	64.7

(1) As of June 30, 2012.

(2) Represents current quarter NOI on an annualized basis.

(3) Debt represents 100% debt balance against properties as of June 30, 2012, excluding $45.4 million of partner loans.

(4) Estimated foreign exchange rate is ¥80 = $1 USD related to NOI.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Residential and Other

($ in millions)

Residential



	# of Investments	Total Units	Total Acres	Finished Lots	Pre-Promote Ownership%		KW Book Equity ⁽¹⁾
Western U.S.	12	4	3,243	365	72.0	%	$	80.4
Other	1	—	50	—	3.8		0.2
Total	13	4	3,293	365	71.8	%	$	80.6

Other



	# of Investments	Pre-Promote Ownership%		KW Book Equity ⁽¹⁾
United Kingdom and Ireland	1	100.0	%	$	10.3
Other	4	100.0		5.3
Total	5	100.0	%	$	15.6

(1) As of June 30, 2012.

Kennedy-Wilson Holdings, Inc.

Debt Schedule

($ in millions)



	Consolidated Debt							Unconsolidated Asset Level Debt				Total Consolidated Debt + KW Share of Unconsolidated Asset Level Debt
Maturity	Unsecured Corporate Debt			Asset Level Debt		Total		Total		KW Share				Amount Due at Maturity Date ⁽¹⁾
2012	$	—		$	—	$	—	$	132.9	$	44.1	$	44.1	$	41.9
2013	—			4.4		4.4		123.7		53.7		58.1		46.3
2014	—			0.2		0.2		300.9		97.2		97.4		58.0
2015	34.2		⁽²⁾	0.3		34.5		188.6		54.7		89.2		70.7
2016	—			12.2		12.2		346.0		139.5		151.7		109.0
2017	—			0.3		0.3		390.7		143.7		144.0		139.8
2018	—			13.3		13.3		226.8		40.5		53.8		50.5
2019	250.0		⁽³⁾	—		250.0		91.5		27.9		277.9		275.6
2020	—			—		—		100.7		28.0		28.0		26.1
Thereafter	40.0			—		40.0		156.7		41.9		81.9		80.9
Total	$	324.2		$	30.7	$	354.9	$	2,058.5	$	671.2	$	1,026.1	$	898.8

(1) Maturity dates do not reflect extension options.

(2) Represents line of credit balance which was fully paid off subsequent to June 30, 2012.

(3) Represents principal balance of senior notes.

Weighted average interest rate (KW Share): 5.4%

Weighted average remaining maturity in years (KW Share): 5.6 years

Kennedy-Wilson (KW) 8-KKennedy Wilson Reports 2Q 2012 Earnings