KW - Earnings call transcript Q1 2018 | Kennedy-Wilson Holdings, Inc.

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Operator

Good morning and welcome to the Kennedy-Wilson First Quarter 2018 Earnings Conference Call. [Operator Instructions]. Please also note today's event is being recorded. I would now like to turn the conference over to Daven Bhavsar, Director of Investor Relations. Please go ahead, sir.

Daven Bhavsar

you. Thank morning. Good of Bhavsar Chairman Daven and us are Vice today of Financial Enbody, This of Officer CEO and of McMorrow, Kennedy-Wilson. President Executive Windisch, and Europe; President and Kennedy-Wilson; Bill Justin Kennedy-Wilson Chief is Matt joining Kennedy-Wilson; Mary CEO Ricks, for is being archived and will live call Today's be webcast replay. The by months. X webcast be by for phone available will for replay X and week for more see information. website the Please Investor Kennedy-Wilson Relations EBITDA and On financial adjusted this call measures to will net non-GAAP certain adjusted we refer income. including

differ You of would like from other a can financial Actual statements. uncertainties risks, items reconciliation information call of and with quarter is the these of Exchange forward-looking number our section our website. GAAP Relations to this which Securities XXXX our and reports this filings CEO, discussed the a and a may to comparable Chairman Bill posted Statements call and now find may include McMorrow. description Investor and results to I during materially turn along due call of on earnings release forward-looking over the with most factors measure in the first indicated on directly made Commission.

William McMorrow

$XXX I'll program. XXXX. the the morning during for and in to our good XX, capital XXXX, our XXXX and operating we joining properties and Thank of start repurchase our pleased discuss year October on results financial acquisition including KWE full today. morning be Daven, of our since record-setting everyone. quarter we've After highlights quarter share a off a Thanks, to the first us reported you in now new closing performance This our the for quarter, are strong million allocation

outlook opportunities our and questions. on before near-term market focus we'll it up Next to opening our discuss growth

We up by QX remain last to Adjusted NOI $XX $XXX driven throughout million year. acquisition our was occupancies portfolio up in million QX the $XX commercial during income with our to were compared starting of net saw $XX for to million portfolio. of occupancies XX% impact the EBITDA of renting compared XXXX. KWE million along to properties. high both high adjusted and multifamily was off, strong So XX% These increases our across growth with

U.K. For revenue million were growth portfolio commercial we same-property of and able commercial of of to units, with office X X.X the in we our in the of multifamily ownership development the units square multifamily portfolio office X% feet our of XX.X quarter hotels. across Ireland. properties. growth over generate make XX,XXX our interest that X% XX,XXX space and apartment XX% located are NOI and up multifamily under totaling including concentrated and and Western Globally and our In million square X,XXX and the Ireland mostly Western U.S. U.S. have an in feet

Turning job and where to growth continue NOI and our U.S. revenue GDP X% apartment portfolio our our growth growth average had for portfolio markets same-property to public results market of posted on QX. see quarter, X% basis multifamily rate strong during growth estate again NOI to compared X% market-leading basis. large on companies same-property multifamily a up the of real a This on which represents

with the be to Washington of in is continues by assets. our about U.S. state largest our waiting Western of driven which out-performance our market Our half

growth Washington of in of of revenue state saw NOI the assets Our growth XX%. X% and

on remain Reno portfolio versus These City, rental job in strong Salt Boise, adding other we major a experiencing U.S. Portland, have and and markets affordable Lake growth growth have Western basis rent-to-income to Additionally cities. our been and Idaho. been

of a per in our substantial predominantly rents Class our is to at unit average XX% to $X,XXX are suburban at multifamily peers currently U.S. is Western garden-style which with around cities rents rents A portfolio higher. per which located Our to leased discount XX% XX% communities month CBD compared

Vintage speak Our units all X,XXX median to local are King revenue units AMI, our NOI able X% and X,XXX This out add have of an are in bodes continues seeing these in, growth strong a many and list across In well. counties example with County of April. to that April platform stabilized we allows Vintage by well in lease-up rents growth at as the Growth in which to one including in growth income the quarter counties there such affordable Seattle at interested that X% XX% is our AMI affordable at which with our tenants. new persist. were brand plans very communities. another development An are affordable located units that Northwest Mill XXXX. completed maximum continues least The in allowable Vintage the of ground-up Creek areas and generate communities a have of Creek for X% of of perform growth. average area we units. we AMIs growth we to platform saw or over affordable XX% the we Pacific trend affordable grown new to us certain across in Housing is multifamily X,XXX our raise waiting Seattle now is just to its senior as came in XXX beginning same-property Mill

quickly. We lease very property expect XXX-unit this to

by our while on X% portfolio grew the a same-property share quarter X% was occupancy was U.S. for at Looking up and X% basis. up of commercial NOI our revenue

unexpired of The the to signed WeWork the XXX hold is lease interest quarter WeWork XXX Street. California largest Francisco Francisco. we floors fully in in XX of this San office theirs City the lease with at one During In California XX% occupy average in ownership a weighted management will largest our We San lease all Street in of is execution reported location XX-year an which be total, excellent term leased with portfolio U.S. leases and completed asset represents of plan. lease our of well Francisco initial X.X this the San years. team business ahead our XX% up a office who year by

Mary turn Europe, CEO to have call the best-in-class highlights. which U.K. Ireland of portfolio is a like provide Kennedy-Wilson that concentrated portfolio over Dublin, our there in to more Europe President we and Ricks, to on I'd detail and to the With Turning

Mary Ricks

PRS existing portfolio Bill. at are our as where adding Estimated like roughly on of NOI units on unstabilized both and quarter some complete stabilized In four acquisitions. grow highlight for for the our Number generate continue of capturing to quarter the in great expect by call a end a at to to European wins development NOI XXX new stabilized we growth. making we Europe. total announced that and had phase transactions we and acquisition we on developing on and or Chase our we're $XXX to year. across we Clancy come. sales successfully further I'd NOI our From from progress where total Europe ramps annual projects. of the portfolio more great the QX the closed and our further portfolio during estimated Number Monday And we noncore or We stood it through QX in through three, returns NOI. units million Kennedy-Wilson's continue growing in in poised for portfolio is significant to built-to-rent portfolio. and already Elysian it lastly, XX% quarter the to have assets Thanks, we on in-place Ireland we're annual lot Cork areas contracted Number stabilized two, attractive The quarter. X has multifamily lease and prime one, which this program our disposals multifamily we further market

Clancy and quarter. remains The $X let the fantastic. XX% X to stabilized our were quarter first, annual to So assets end at Clancy Chase, which QX on in space in expect expect the At estimated occupied global unstabilized annual building to a looking fitting delivered track up from assets year. have tenant leasing Pioneer We've Indeed's the at we Dublin be XXX Europe. tech which units NOI at out we the offices, across That The on office to now is and Together phase X the development suburban our good made added works in we've estimated we of million 'XX. to a finishing just we of units and million remaining JP we're expect XX%-let phase NOI. is and both at what that the we over also Chase we this by Capital Between Morgan progress stabilize $XX multifamily projects among retail. further our Dublin off and Dock and remaining premium recently XXXX begun most the end Point

Friars At Buckingham on portfolio by which continue there great above NOI rent added our USTIs. growth leasing to is at under-rented the it's Bridge rent-free there leases end. as lot periods as across Road have that the to London on previous go a U.K. XX%. in Second, momentum in-place a double reminder, short-term quarter transactions we more remaining remains give growing good continues. have rent, the equivalent in success to stabilized XX% the we And lease rents achievement a the European is by market in rents team. XX tenants of the of, across reviews, which quarter our And have is our at to XX% rents portfolio closed Court for equivalent And it's passing at U.K. we the Palace customary incremental

reduction for QX in rent-free shows NOI same as our comp So NOI. in up a property this U.K.

it's see but was QX the for in where so in if worth normalize X.X% in opposite compared pointing the commercial QX you 'XX. of for you rent-free the footnotes the to effect same-property in U.K. And rent-frees, up will X.X% disclosure Plaza for extra tables. the Ireland down to you not 'XX Baggot And And was quarter. the performance

PRS previously, our the portfolio Day of and Dublin ambition assets multifamily next a growing Thirdly, from to over our units this few exceed is you priority our to we X,XXX us saw who as X,XXX our those joined we're for looking or double to units Property significant and years. stated existing is

Clancy acquired announced with Cork design Capital XXXX Leisureplex the portfolio. and XXX Our coming of adding is a Quay in units acquisition Elysian units of The Northbank XXX the We at the to immediate and Monday still in development under the end adding from at units we on growth Dock combined phase.

recycle to proceeds assets gross year, Vantage has very generated and reinvest quarter of allows sales program course. in and generates We're our us capital, but our lease-ups the attractive additionally below from portfolio asset about we only million Those points exit portfolio. had NOI returns and And an under-rented last annual $XXX Point. strong our the into blended growth incremental in our development updating delivered PRS XX%. to to the Pioneer in We continuing acquisitions management as Clancy, success own X.X% pipeline crystallize a on lastly, and of forward Alliance, future particularly not and Our wins excited look assets generated noncore our of return you such or our like due and cap have a basis new entry combined attractive cap cost of average rate. quarter rate XXX almost in sales from

largest Kings return near initiatives. strong attractive asset in U.K. selectively we Cross exit Ireland where rate a completed management Travelodge in entry sale of resulted XX%. continue prune our have also rate X%, points a of an we our XXX was to where below cap generated Our on basis cost In the cap demand and some

So overall see with Bill. track, to hand will start that you I a on off and great back And in can it QX. as to Europe well remains we're

William McMorrow

Mary. much, very Thanks

We our completed investment to quarter. million capital the in turning transactions allocation So $XXX for QX. in

tends As be our in is investment the slower quarter period activity. the for to first business, typical

side buy the was we our share which million. On $XXX partners acquisitions of completed million $XXX and our of

our of which On $XXX assets during million the the sold quarter disposition million. share side we $XXX was

activity end We quarter a subsequent to in transactions another of and will these contract either as pickup million of are dispositions $XXX a or including completed speak I million moment. have $XXX all seeing of under transactional investment we just in to

able our generate capital continue We initiatives CapEx attractive returns. our also into where to to are invest and we development

invested value-add million we cash our $XX During quarter various into of the initiatives.

XX next other $XXX value-enhancing our to our unstabilized well of the as global spend initiatives development another expect in assets as cash to invest across We portfolio. months million in and

now $XXX this Another has returned expect of capital past on a the leverage-neutral beginning million and XXXX X new the completed we period. back use we weeks. been half We're buyback the March On of over to Since form repurchase buyback executing sales to the stock. XXth to that using asset buyback this authorization of our we of generate have million basis buybacks. shareholders in from the over we gains $XXX the announced

to and a our the the fixed the facility. $XXX our $XXX $XXX year enter credit quarter million quarter an interest during the simultaneously proceeds currency first the notes senior reducing for million sheet, We swap of balance X reduce the X.XXX We're we effectively our liquidity. of with per XX% cash to for a to maturity undrawn a weighted availability balance cost additional debt another The financing and Turning the closed to million total issued XX-year rate outstanding on has euro years. into able with of X.XXX% interest years using In the revolver U.K. $XXX our despite be with Ireland markets total recent increases. million the $XXX long-term on million of X.X hedged of in continue of the against average favorable XX% to U.S. moves in extremely yield. U.S., fixed

loans million our $XXX share alone and April average completed the $XXX of These property-level financings borrowing improve across million the million X.X was company term portfolio, cost not our our $XXX lower maturity financings our fixed-rate in costs we of debt average month these an is with years. global X%, only borrowing of XX% of but the in loans profile. will our were average fact across also In

We maturing the years. debt debt in X our have coming XX% of with only minimal due next

a off we which of be way term in months. to XX loan pay intend paying we'll million than Our XX $XXX was has less next off X-year in remaining that loan months. that balance By a the the

In and completing we Mary Number Quay strategic NOI Dublin phase initiatives. through lease-up Now I'd quarter, X. discuss stabilized growing in one Clancy of assets as unstabilized our spend like and is The South the a development discussed, the to Chase near-term our our and moment initiatives.

We lease U.K. year. U.K. commercial several in Point U.S. later expect the Pioneer to up Western along with this and assets

Indeed, The as schedule mentioned, on project the XXX% side, of NOI development Capital Ireland. million Mary are is there which Japan. leased largest Office Recruit add all to complete of is in the to component subsidiary of of annual to expected Once a projects to we development is Dock this $XX from KW. On complete one

by completed million And progress Total, expect to this and assets and assets. from million leased continue NOI great quarter, another we make we in so to have estimated we these our that we getting XXXX annual already development up. the $X added on unstabilized that have place year-end excluding $XX

liquidity us proceeds made like or Directors. From to various Board our grow the will recently cash $XXX our enable investment we produce I'd expected million platforms continue also continue have that are on business. close to our asset initiatives, to of additions we us we prudently million. binding have while KW us -- fund are The to allow CapEx our the to our to approximately mention We and under to some accelerate quarter program to our asset estimated that expect contracts at this program to sales fantastic to approximately sale sell sale QX complete with sold assets. sales the programs these gains QX subsequent to from of time million same year. $XXX $XXX provide for of are will These our of allowing and buyback sales in to

Ricks Mary off, our joined has board. First

of to like from I will to leading as and Mary, in decision service know, has most growth Audit think in also experience of of financial major our board played I of and done a every job welcome our be over Europe. I She on the she investment extraordinary you brings role last collaborate would our chairing Committee. has expansion an Taylor XX-plus sector who and KW John years. decades the the

fixed I of capital Directors. leading great Lynch. one experience pleased has is Bank Sanaz to already John and to feel Board Sanaz commodity of as of has herself income our strong who senior expertise in the experts is I'm Finally, accomplished established a and of this in and sales and and welcome European Mary, brings additional banker markets. to diversity currency our Merrill board Zaimi London. have we America Sanaz highly global for based added Sanaz

we to build and to is Coast. a on would Kennedy-Wilson of the West discuss continue see to Housing today. in current by which housing to units Now I is engaged multifamily management and and the take where platform In market development U.S. like and the majority-owned opportunities Vintage moment affordable our senior we the environment

We we few X,XXX equity mentioned that minimal cash next have, from to construction do able and through tax the months KW. out-of-pocket years. to in utilizing either under or credit expect XX,XXX and before, capital-light planning We're units as next complete manner units I we over to requiring the to expect this XX in in a up to XX platform the get

in opportunity adjacent see in well multifamily to value-add to our selected market markets development existing both as business, continue opportunities buying the existing assets. we Additionally, in rate as opportunities

We Europe, our have X portfolio, over of all progress we plans build and next in additional as in the U.K. there we presence our growing are units detailed, which multifamily have great California already rate Dublin will commence market in In and on focused to the year. made XXX this months. Mary

Europe. to We U.S. assets in noncore both originally realize from institutions. selling financial smaller, fee-bearing also the in purchased capital portfolios continue look raising continue third-party that lower-yielding in to gains we and And finally, large by we

per Our additional which would year. plus to X equate in an in goal fee-bearing billion $XX equity raise well of to XXXX is new million recurring over fees

we have had flexibility We our together our working and on we capital. than invest, allocate cautious, both we to more team but in tremendous remain grow a We initiatives. as people, ever we've in to of growth have US choose Europe how the however,

years. been has have of We in senior cycles experience market many and decades management dry many working a of together investing that powder lots for team and

of of we also shareholders Greater great to our in to executive are area. So to management Seattle I with the team come XXth. July any day and property our welcome to long-term open creating in with high-quality meet our continue any along shareholders. I'd some Seattle that environment questions. hosting multifamily we like value well-prepared to mention see market assets a for record for like track our team remain on it our up With I'd

Operator

comes [Operator of Instructions]. And today's Mitch from first JMP Securities. Germain question

Mitchell Germain

Bill, we sales multifamily. though dominated sales mentioned part of of batch in It of smaller back ended the like to of being in shift in U.K. the some bit see some seems you assets know Are a the more plan just been the the recent the really of most expected I has the and year? by a

William McMorrow

you additional sales? So mean far as as multifamily

Mitchell Germain

of starting No, of in rid some actually terms smaller assets. to those get of U.K.-based

William McMorrow

We Mary, you have, that and, to might question. want take

Mary Ricks

Hey, Mitch.

We lot of wholesale few a bought a quite trade. continue a to transaction assets We to U.K. was portfolio in a retail which the like sell assets. really

So as our disposing plans we are we those and of that continue asset management will to continue. assets execute

William McMorrow

assets. the invest come you when we plans But what as back in to the what I high any is have left that additional to in year Mitch, the this this just Mary to would main is that continue, focus these in. we sell the of assets smaller a that meaningful and here key United outlined, add the is is sale in markets we're next time the that balance assets multifamily noncore great The though, like see States is noncore what quality don't of with And of you'll very to portion pruned assets year. we've

Mitchell Germain

by ideal appropriate that waiting sector an is geography company? think for there the you Is by most

William McMorrow

XX-XX between United we and in the and I'm targeting sweep, it's XX-XX balance Europe, a that the between here markets Kingdom when say there I of the like kind Ireland, primarily and but about a we're think I talking broad U.S. Europe,

Mitchell Germain

Italy, some those assets of It markets. I you'll like likelihood exit got in know for sale. Spain that you've Italy both that seems

William McMorrow

what present Well, is our very by themselves predict I that opportunities don't might -- I always business and it's come opportunities about. hard to know driven what

that have point. don't asset other forward one of plans in are any assets we Milan sizable moving have for But the We we this is really asset on. at that the other that than part sales

Mitchell Germain

with private Historically me. know bank be you're sourcing used of days? source from to one the it Last lot a relationships that deals, regards you or has these relationships, way I investments whether anything to changed that your,

William McMorrow

or No, what I been the mean find over markets years get they else. obviously opportunities to before has just in to whole strategy become our attractive everybody market XX now

look XXXX, I've as I you so And went in started the Japan XXXX. our company, think calls, history investing in on I in said across we mean when to of we Seattle before these

learned the we a you the own ground have to Salt markets crisis course, remain business when teams footprint it trying opportunities think markets there to successfully over We very people XXXX. brought to decent that your and our about And that focus find But order of also Lake would we implement investments call and our to I these institutional have market we're of you execute City credit post in is assets have we the during you're which team is the that companies, there. first a Europe, in quality have really closing. making before in then now plans we in in growing our the years on because have there to went then market

in So I opportunities size. growth XX in -- existed the too ago We us other is of think our might we've terms the people it is bring opportunities, of grown have of not just years see company. that that part

East a that property. owned of Seattle. property XX we sale one that did gains so and East of the I sale what course multifamily that leased able to dollars we XX the example an Microsoft, we the came million of XXX,XXX building essentially for is very apartment us. deal proceeds we it to in talking $XX square I'm use and and think A of summer were able buy And out good a acquisition foot part the of cash that the is last All asset, office acquisition of to was about there that were other to took Costco there the of the loan was class but equity interesting and from of XX% a brought unit on

you is look to when almost in that now on us at cost that the so X.X%. yielding our an unlevered afterlife basis And

always find I to just have the that priced classes lot and So across are fully different fact be globe. very things to of you we in asset alert a the opportunities think today

Mary Ricks

I it's that so building is in on excess of next cycles lease of is always time to course think that for markets add and changed an we that thing Costco piece where in to, one I will taking extended own we to and can whether value a the Mitch, as deal, we're has something Bill, land the what looking that not assets lease over short and immediately. or something we it that was add a

whatever the KW the angle say So management asset focus really our I would for across markets. is that's

William McMorrow

we process have. on capital sites add these mean, years two point, too had good U.S. apartments That's building a those sometimes the right I XX to now we're adjacent and Mary's hidden in in what think already to U.S. to old. tremendous we're rent growth the and not our point that Western older, that example sites buying garden-style big in really could they be XX, in existing assets it's to tend is buying that be we're existing And we're the are buying units gets to a smaller so two commitment, -- we've Mary. that I for Western

million $XX the and in turns have buildings two on opportunities but bought at always as million year of leasing we only bought. to but those locations so $XX return and that are capital we so our investment the do not Lake for on what we that what City to in unit on amenitize but capital does that look the what need first impact on, entire return centers on capital is Salt roughly this first quarter And they class

And points goal return but we're a XXX initiative. wide variation our value-add over is type with time everything to XXX through of always of to add to, anywhere be basis could so from trying

Operator

comes from David Ridley-Lane question And Merrill of our Bank next Lynch. America of today

David Ridley-Lane

roughly halfway to approximately you're $XXX million. of target your So divestiture

you higher still to that towards the start Given are tracking the a plan? fast bias is amount,

William McMorrow

to are, assets. year think year. you ownership David assets I the in billion, sell to year dollar I last this what plan that $X,XXX,XXX,XXX we going less our We generate we've than interests -- for the own, that terms the of as for $X.X was we of the for plan of the we beginning mean, year to into at said higher sold we last than grown question. thanks but company that more to we currently are did actually cash And

And so somewhere our that's $X $X.X to to sell total for happening. target and generate this of year billion exactly to cash was but what's billion assets more between

So that announcement interest here our couple to quarter-end we we're if selling, that buildings in see big the we of you apartment in. XK subsequent made that a ago weeks portfolio a had ownership

while our we're I to and cash think And relates reemphasize point out to want book we're lot the continuing of sheet-neutral it. also and so we're to as the buyback it doing balance way continue will in And that getting of a net gains, stock I execute I program, want reemphasize on to it and a worth. --

on plan on right So asset we're our sales.

assets this for good like the balance too, And think on visibility sometimes the in the And about Dock, you very good single-phase of on country very visibility sales totality we year. of everybody that project the stabilizing needs I Mary, very, we can done have the talk that's that Capital but ever finishing. and to have Ireland. really remainder of We the almost asset remember things -- largest in are you

have on [indiscernible] of the what other buildings land to time portions forward-sale fully to [indiscernible] office buildings finish even it's that finish one $XXX accomplishment. on construction basis, have then before then million a is on almost the to And a to contract we're sold and of JPMorgan finished time and so let huge with of the Indeed, to it

David Ridley-Lane

third and did capital the Okay. raise in ask I about capital raising to then this you plan Great. year. And party to the want that

William McMorrow

Yes, yes.

David Ridley-Lane

there split a that my balance would pretty you in the Europe, bias appetite? have is, that balance U.S. and the is in evenly and on vehicles U.S. investor see on -- So is Europe between you the question now or that different fund

William McMorrow

very Yes, question. good

I very think split to the I and But accomplishing goal. two you'll it split think have places say also going you're equally that see it on that equally between about would visibility we pretty see markets. good two the I between

Operator

[Operator Securities. Instructions]. comes next Craig Bibb of question from Today's CJS

Craig Bibb

thought plan you your your and talk announced behind with management compensation week the are process objectives the that could what in change Bill, last change? about

William McMorrow

together the that program wouldn't of buying the didn't of clearly something market was of ultimate with we're in that create the in the that we the single think is understands, valuation same everybody we think we it's addition that back buyback background we on completely in -- compensation for that in thought know I make through was we paying all the if the which thought the all company, is, team process. is we buyback us, management value whether largest what want be true reemphasizing stock sure that to and at as we're how is our is that Well, program stock think undervalued. dividends the thing and doing make obviously I company objective or -- our you to process shareholders is the the shareholder all was look aligned that to think I that terms stock was are the the the And so to the sure felt program or the

Craig Bibb

attractive, first, is extra was there on land? what first your Dublin, purchase is or there Cork of why that value add you're the multifamily outside closing cap deal, Mary, big rate actually

Mary Ricks

safe to terms that it's mean, is, I of PRS asset the I say asset think highest quality Yes, in in Cork. it's

apartments, it's asset there asset built of asset, walk beautifully opportunities we was amenetizing an they that very upside the was we that stacked be units, it to you've you think So And, do. a it in are large project. been, and really terms when Craig, of has individual lot there's as a sold as Clancy the that seen

fast, companies, of really the very do that quality Dublin, great go of been we Cork would next Cork lot of largest we'll it's we and the we've bought great to market were pharma think Cork. Cork. life, so lot focus and at a growing city, technology on second asset And we is it if best see just a the companies, in have have of we amenities going as So similar market, system, the education type of outside a to

So we're excited. pretty

William McMorrow

our to look that of or that that I XX these headquartered education Ireland growth add into focused mean, when these Ireland, markets in there's there too, operations Cork original strong years called, have word, systems if great and could as I the entry where you XXX U.S. our are I renting talked -- companies at as people the sure a millennials, like their operations, a European-based to and I to has move Mary, their homeownership. bias they think calls but There's old, their the to have the the under am Mary great XXX also they're very to a where and common past, on but in as said pharma big combination that about activity of those. all are as number -- opposed of barriers companies And denominator these our job today we've other be are in investing is job creating have in areas produce to growth. into younger not tech system a the there going mentioned, on used I as calls, high education jobs. we've over companies, because that And

Craig Bibb

fully that change going or now that is property occupied Mary it? to what's And on are you now

Mary Ricks

we of I in as that supply then we amenities will in think rental upgrade there's terms rates. commensurate be units a the little and as think increase lease-up. go of a -- said, is sort more And to I there the

Craig Bibb

what was rate the Europe, cap Southern the on deal? And

Mary Ricks

heard I ask three Craig. times that you

Craig Bibb

heard asking. I the so answer, just keep never I Well,

Mary Ricks

we're yes, something -- discuss. that's something to not going that's No,

William McMorrow

because that-- don't not want It's just to, it's we

Mary Ricks

It's confidentiality, yes.

William McMorrow

the terms Under of about agreement, our that's purchase it.

Mary Ricks

Yes.

Craig Bibb

So for approval, when to would would But maybe that approval think you and waiting Leisureplex, want that I get do when you kick you'll know off? discuss. you're

Mary Ricks

think good actually on about we're to lodging Yes, that. are where pretty planning with close I We that. we feel

some progress you about to talk more have for we'll next So hopefully quarter.

Craig Bibb

to when the stabilize the a year? Okay. up for stabilize And on the there they that on one, the later guess one, in track then timing a have Point and are get being Pioneer quick would lease you this year, X I big could last update properties we

Mary Ricks

renovate quarter. days. lease-up last debt Sure, a we yes, go you would say, entire completely to through we've in had stabilize the we so was we German Point had went finish kept XX if bank, Pioneer tower, and just and through from some The has you the and remember fourth and bank velocity, go will the them and situation, vacant of will, that the over I because I really I that process piece don't would off. title, towers if for the that the gotten by a one say been, it vacant know good bought bought units of

the vacant. been what call more longer lets, time transitioning one we've a traditional-styled known in tower other units that was units. lease-up on at lot tower And the lot we've of same corporate so what's short-term mode [indiscernible] as a of lets had just let, And and to the those we been that PRS

been And so we're lease-up XX% towers through been process. really about so going progress. We're and a both good have let XX% almost feeling -- have our there really let, traditional about

Craig Bibb

two other The that will stabilize year? this properties,

William McMorrow

was Clancy Quay. It

Mary Ricks

done has those in units I just also renovating basically of which at kept new-specked had team bought beautiful, Yes, We're the bought receiver and so end job. purposely a and receiver beautiful one there. just, walked units I from I that when our the and was in Northbank vacant, we we XX units. that December weeks couple ago we're Dublin lease-up of the [indiscernible] a

let to on we've Quay then really think broken And And Clancy so know, we're also while on phase X know, we've we're on yes, we're the not done so the -- let. also be now it XXXX. that ground in X, as we've that. gone, just stabilizing. which I Quay you subject, you will just XX% then excited to was two, That about Clancy we're gone last And phase

William McMorrow

many once you units And in are will done? there how have totality you

Mary Ricks

units will have XXX project there. whole The

Operator

session. back this remarks. over closing question-and-answer questions concludes our Bill further to no are for McMorrow There I'd conference like to any turn the

William McMorrow

as you for always a Thank support right. day. today. Have and in your on call listening great all All Thanks. the for

End of Q&A

now has thank presentation. And conference for sir. attending concluded you thank we today's and all Today's you,

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Kennedy-Wilson (KW) 3 May 182018 Q1 Earnings call transcript