KW - Earnings call transcript Q3 2018 | Kennedy-Wilson Holdings, Inc.

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Operator

Good morning and welcome to the Kennedy-Wilson Third Quarter 2018 Earnings Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask question. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Daven Bhavsar, Director of Investor Relations. ahead. go Please

Daven Bhavsar

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

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

William McMorrow

thanks Daven thanks. us morning for today. joining and everybody Good

and progress an $X.XX yesterday allowed a share to property our initiatives, basis. stabilization record highlighted continued on annual growth NOI, an dividend in our third property XX% us We quarter continued are property performance our results by a same announce pleased strength operating on in to increase Kennedy-Wilson to in report which for

was financial results Starting on continue year $X.XX record share, for a initiatives from EBITDA per of of execution EPS was ago, driven which QX, fee-bearing we sale our million the by during asset program. million quarter significantly $XXX great share capital also NOI, GAAP third-party KWE, with acquisition of adjusted We property increased The year. $X.XX our fourth raising make progress up EBITDA to loss $XX was our adjusted the of increase since and completed a in million compared the. increase in of to has in our $XX a XXXX. the last which

also had XXXX. third of We to $XX and the net of a promotes share quarter our increase compared million in gains

XXXX than We XXXX. to million compared have million Adjusted now in more produced quarter was $XXX first months QX in double $XX the nine we for year-to-date produced the for net $XXX million EBITDA the $XX XXXX. million of income the of of

year-to-date, year. review would our growth key adjusted highlights operating our net to the $XXX for property results Company. compared the of income like $XXX global For initiatives I million last million quarter totals to the the before discussing for

continue multifamily our Utah almost our fastest country, to relative with in ranking our $XXX include XX,XXX to our are U.S. at today outlook the X%. same quarter benefit from more growth NOI of million properties total, with We Mountain unemployment, rents remains portfolio, Idaho Lake with benefit another operations these global strong revenue property from in of us and quarter lack both NOI estimated XX% NOI population each in four another and of standout third. growing XX% for coming had for same X% our solid same each strong. and annual square markets from the Mountain portfolio, an of in With and of asset and and hotels. portfolio continues execution teams growing our Our economic for management the properties value-add cities the across rapidly of had our so fundamentals. low affordability City particular, growth. XX.X assets a In states consisting units, strategy. below had States located U.S. our Europe. feet Idaho the million from multifamily Salt of options region XXXX, affordability across which from Western State saw revenues growth being Rents and growing commercial has of with property the In our rate Within growth property investments X% revenue Both the underlying well Boise NOI in populations, portfolio than our property of market XX% portfolio California the housing positions future and of

in of coupled increase the of burn across free X% a over activity driven one square X% portfolio resulting our Our results an were same million largely California revenue significant with XX growth on Southern Europe rent occupancy resulting at by commercial In management in year. total and leasing a growth our asset the a transactions X% was leased. lease commercial in had portfolio in off our commercial growth the NOI last also by basis. sits feet of QX quarter previously and property stabilized portfolio in-place good asset including also in increase rents. U.S., XX% from our management activity In with strong In quarter X% global driven

investment And Number asset NOI capital program. recycling one, both our call and continuing I growing three emphasis three, business. continue of remainder huge and of implement to at through which to to be strategic growing and have Kennedy-Wilson. prior on sale our number focus on initiatives; organically our that would number development calls the for our substantially us completion Now the a global two, we like discussed key initiatives management

growing number us of property one, can our is a number a with starting accomplish for initiative So we key this ways. in NOI and

CapEx the our Boise, Seattle completion lounge growing in quarter in leasing continue center place which for our the new First, look brand our asset tenant Equinox the center fitness U.S., clubhouse, NOI projects strategic leasing a growing at aimed the Idaho. organically portfolio our new NOI. of completing Few and value-add at and at include we management existing examples of and In Edgewater, through continue at are program initiatives. we

We the to multifamily also units. XXX XXX units year-to-date during our total quarter renovated bringing

in today. our square sub NOI is across A XXXX. currently retailer we portfolio. markets We of average the we foot growth. as signed In unit, we our unit the UK across lease are in estimated renovate multifamily end, and million leasing ASOs on we our we that At online of as was NOI. $XX,XXX Shelbourne XX reflects per units that upgrading in approximately ADR term year renovations office demand UK seeing to to have look announce the portfolio, XX% Similarly, an Europe further renovations plan Dublin, expect all Southeast ongoing XX% many $X Park to since fashion just pleased XXXX Leavesden leasing vacant investment. to global at This typically initiatives cost largest asset in which XX% renovated grow the upgrades the to annual year on look and the the have led transaction to in completed Hotel our area we certain, XXXX it $XX for are adds and in drive management which spend interior lobby to common room next strong XXXX. million the transaction I'm the to return quarter XXX,XXX UK U.S. currently At largest which

million rent Our Irish for which $X and place CapEx this leases million property in $XX the to expire. NOI to-date another from remaining upcoming ads at opportunity presents office With further on doubling $XX be XXXX. growth Shelbourne, and well spent as includes with the below since NOI are (Ph) continues Also acquired initiatives which asset. market to in with million we XX% [$XX] remain UK to in million capture an reviews average, received

our us The is add across up development billion second to which is at globally shares assets initiatives completing $X.X gross completion, way billion. $X important of and lease NOI for our through

assets U.S., for units another affordable expect of minimal will in add demand the $XXX annual continue end rate that units to the current where estimated to alone. consists the feet units XXX this strong. the property pipeline XXXX, XX,XXX Based market with under and of venture XXXX remains units end units, we square of expect next million set multifamily get to developing In Village development of the add The total rooms joint to through we million the is short-term Resort. NOI senior on and KW. very joint XXXX venture, to year housing up today goal Housing from by X.X by equity with our Our market $XX Vintage XXXX our over conditions, portfolio Kona we at which commercial affordable and in these hotel includes a our of and

and to joint now As the would President been XX congratulate I played deserved on have well Kennedy-Wilson has of incredibly over our side in initiatives initiatives. our our of Mary play her like to approximately Kennedy-Wilson. this Mary the years an European a growing also part on August Mary How call own would in over our XX% success we very And important that Ricks role property to European she of development like promotion I I discuss at of hand for development an partners and important in note, such call venture. here NOI. to Company.

turn the to Mary. call I that, to So with would over like

Mary Ricks

approximately An the we strong will our CBX Capital the Dock, to retail provide leases make of the to for three we Grade to progress in Dock to and These QX Dublin's signing see We in construction up three the is with which in space space also support Dock approval and feet are campus Dublin of target expected occupier our leasing We total to Great. planning signature of assets in first end the And the Quay, square feet Capital and anticipation the end XXX London, from year. of the XXX million unstabilized derisked the building business complete quarter and owner to units development Pioneer square which in been next which of will Thanks XXX,XXX by of complete. has XX in office to added buildings multifamily leasing XXXX. is this currently the indeed on adjacent deliver third XXXX including $XX building in process development of Great Point for of feet office and materially the this we made Dublin year. to In globally. the of North of and of continue our we completing single in the on driving of as stabilizing remainder complete projects. approximately Capital development excellent million are and open for development towards in new upcoming NOI office in remain square the fully program preleasing is estimated the two Bank together, Bill. All stabilized Hanover end in $XX NOI beginning premium for year. entire Apartments leasing Europe office Capital we and European JPMorgan. by by received additional by square buildings for the XXX,XXX estimated $X majority which the Apartments XX,XXX Dock assets multifamily XXX when space QX A to open A the on-track office XX,XXX Class at Dock. leased design half North foot million progress next years of office the million in year. deed first by phase of acquisition units, Similarly, out

new currently platform. Europe Our both have alone, fee-bearing past invested ability the I capital grow our like weeks America, institutional continues and approximately XX% including of billion These third-party investment capital. Europe, we we unlevered lay $X global separate to offices, of third-party our to for discretionary and business in a October, insurance is raised equity public raising have through and and important and raising key have our through insurance North management business. private private $XX major the platform companies. $XXX separate our our closed to A for $XX new in capital family raised and since the with as future then In on significantly company the and pensions invested million. clients in core discretionary located targets. such to our to our capital of to equity investment account account U.S., property U.S. raising East funds office capital five our through support first second One we funds initiative part raise capital With is Class third-party investment of and commingled in Asia. which capital separate remain focused in and Middle be a business. platforms, first Denver total, our as a fee-bearing We billion companies, million progress would our regards separate investors, account three we remainder In out the business XXXX In business, U.S. acquired insurance our partner. from we major discuss in

We X% the have property while fee. the a in interest earning manage and economic customary will properties

owning months We opportunities of expect months. with been completion recall to X,XXX In for AXA venture joint for an established IM important European will find you focus over of term XX in the the business our core units. XX medium we XX/XX This QX real multifamily. platform additional announced with new assets targets new this Europe last an next our focused over on has Irish the

is expected investment and demand currently the EU. of portfolio Irish in year as of in PWC, XXXX very at growth the see favorable XX talent one continuous to to a X,XXX lowest partners with remain its with of likely trends chats, Dublin take XXXX. XXXX, factor X% This for with in office two the in XX% and stages forecast attractive multifamily driving which proportion development for units of we early at which be fully strong, various of since fastest boasting Ireland, wage highest rise added growth in by year-to-date. economies operational to continue drives we to the country multifamily in increase an existing have people. a in direct least overall in the for excited XXXX, units again, almost in continues level fundamentals until is market. particularly be highest pipeline and portfolio. X,XXX growing We Eurozone estimated X.X%, the almost on market, our According sites. turn demographic of the which stands Ireland be and grow under population once X,XXX pursuing an another Europe We Year-to-date with over expected to opportunities. to in GDP Ireland of equates by to Ireland, are total significant existing Our olds X,XXX at the additional Ireland units FBI in XX units for still is XX% access unemployment to million the foreign increase continues U.S. by the to driving over XXXX market multifamily up The an own

On the side, forecast built has units to this XX,XXX and annually, about that only units year. met estimated not been are new historically delivered supply which it's needs XX,XXX Ireland be

X,XXX firmly housing we As units. our delivering remained on-track to result, aim fundamentals to goal playing housing of we a our needed stronger portfolio growing never continue rental and to have hit part for been and our new Dublin much near-term and in

we with use of million At endorsement AXA we creating with mixed quality significant is our acquired and six as growing well joint XX% true Block when Cain our both end platform. the International the CBX team development are a venture outstanding high AXA Ireland $XXX acre quarter, investment venture in residential City partners. a joint Our completed European management third-party project. projects CBX as X of as is and the in our the step both

week, for at expertise with success Earlier alongside the acquisition $XXX experienced to of Dublin. the we growing CBX our well through Dock. have Sandyford we we our Our positioned at significant are platform Capital planning as AXA range and and submarket development million delivered announced ensures achieve partners, at JV are similar this

together of two ventures management $XXX So have fee-bearing to over added platform. capital million investment vendors our these

continues we Looking our as to further look capital ahead, to scale across raising activity strengthen the business. board this

to raise globally billion this years targeting over next of are We per few the $X minimum in the business. year

margin overhead would in resulting like growth to back that, planning are to And meaningful call any changes over without We in the I high shareholders. turn our for do with Bill. this

William McMorrow

Mary. Thanks

we capital. strategically. of completed In opportunities. asset recycling assets or the to program So doesn't have plan our asset where we return the selectively our for on into higher capital We redeploy then QX sale third focus of long-term business us continue that area either our is fit sell

During million. million KW. sold $XXX our the office million. was the a which of year-to-date, which we the Milan, assets share to our Europe KW total building we largest $XXX and sold which $XX our in generated million quarter, of million for generated sales of gain we for sale XX% and the of sales in to for including cash of an $XXX $XX of accounted $XXX asset quarter was have million In cash quarter,

terms to In as we Year-to-date, have plan; to follows: and stock to allocated of proceeds. XX% reinvesting allocated repurchase level XX% CapEx, property our capital these XX% was acquisitions. new

will programs continue non-core assets have we or assets smaller business completed selling where as sale asset our plan. Our well to value-add assets on as focus

what in expect activity very will to quarter. a be increase for see We and the an transactional active

to relates it our to As shareholders. returning capital

XXXX, the dividends program in retired our average purchased have share price remaining the $XXX million and $XX.XX, repurchases, share quarter. have share. the shares to form far million million on in as X.X $XXX of purchase at So with we of of which an $X.XX and we per Year-to-date, equates of end returned

per fourth an Additionally, quarter. I is as of Board XX% Directors which quarter prior yesterday, dividend increase our mentioned declared $X.XX the of share a from

two We our to yield of to Directors. made $X.XX I per actually additions recent on our based sure also price closing from share in Board equates dividend that annual on today, to have of our yesterday. would X.X% $X.XX XXXX update increased substantially a to we now dividend you like yesterday which

the to who CEO decades sector. have Richie banking group banking Ireland of of with of First group. is in that him the highly Richie the added and the is announce we Bank in respected pleased Boucher former brings community I'm European experience

added was prior a Bolin. Principal Management previously Ltd decade. at that Trevor and Management Entertainment for Director KPMG a partner also have Trevor over a to and We Company part owner and Ireland

markets have shareholders and added now our depth global public board We company four our this I new of and members from believe capital will experience benefit great and management. year accounting

of powder undrawn again, ample with our for positioned is the end quarter $XXX cash revolver. So and $XXX with between results million I'm businesses how and the a dry million once the today. We pleased of quarter with liquidity

has key team fantastic to risk it We attractive both executing for initiatives have would a generating up adjusted clear that, a on that I growing returns questions. vision global shareholders. With continue our business like any to open three strategic our and to our

Operator

The from will Instructions] go [Operator first with come Please Securities. Germain question Mitch JMP the ahead.

Mitchell Germain

A, Good curious am understanding could I even multifamily down there any that larger the is that highly is foresee to or portfolios in just the itself. coming B, that assessment road? and many maybe the is maybe market a about morning. My of correct in fragmented. Ireland of the Dublin I'm ownership you properties

Mary Ricks

and a I apartments historically and of we turn Mitch, bought lot with up. that to up the in, and lot but the a bought was broken ended those as true, these banks buildings in market because been first down normal then when hadn't it's those, Ireland actually they we of have fragmented, sell Hi individual Highly when buildings built XXXX was Mary. lot think a been of

own are are space, had fragmented that the control common of There amenities they building, the want the buy, but players we us, couple a assets to more areas, controlling do So et we for we markets we the that highly basically fragmented. been sure really make that not cetera. in

mean, you market, So, really I housing. in need that

all market in ourselves, my assets one opportunity on remarks, an that As managed so now it's largest. of the the It's think really and that on have those competitors Dublin. for said underserved, being professional that from I if I in that largest to as live the various important the the are not calls

Mitchell Germain

you And or there? it equity it are maybe some Is local, capital if it private competing provide against. the you that foreign, positive institutional is is perspective

Mary Ricks

a sector has we very good sovereign, everyone Yes. a know market are sector international big and an of asset would you That names all competing class. really question. institutional great because a now that it's become and It's a so that it’s lot with

period the have in to to Ireland in think job is plan, we who the been space that Ireland owned, ability market in development our only and longest for I have time best that competitive we critical. great product have as deliver is design via the team our class have high on edge to and a very done multifamily not of everything to premium the we

do what needs, necessary all we should that, the be. what point demands have to relationships the the know We are, the where market price

the I continue pulse Ireland say second And thing is, of to the said great we doing So will delivering high very really think all that. quality testament developed our joint asset in the to the projects, I that are I I in finger investor on it invest they the will to with think institutional last none best to Kennedy-Wilson. and partners is and venture Europe, chose they

we business future So continues the in really excited really, about really to well. that growth team are do and the

William McMorrow

you but of And our very ability scale out because but there, great we one have it's three as then asset people of we to or and of the Ireland. in too great multifamily I of scale have completes in of it market, that there, pointed have the the are and get top And our might to that owners both statistics in niche, clearly all hard mean the classes out, Mary we as across we a business at our business two time Ireland, institutionalized wasn't a the one, office execute but add become beginning Mary Mary market. pointed team that has just the it

Mitchell Germain

know of you Milan. obviously have a that was one in there sale I this of properties Great. the

foot you I that square in market. have think less XXX,XXX about

targets markets for also of Spain. those other additional or road? in You sales the are have Both maybe one some those of down the

Mary Ricks

sales right now. we Italy of couple Yes. working on a are I mean on

that and which there opportunistically, one to was really on them So and plan trade from Milan application, deal deal and was team is to are the is and flipping to assets The planning income us. profit good added buy on - which assets. In we the sell great those for make the obviously that developer, on out. those to the then to on a that trade very value that are day enabled is a we continuing us great executed definitely sale meantime look

it L&G, relates our we and Spain, As a midst which on of shopping to the excellent doing job repositioning in our prime are is of Madrid a fantastic very center area. in North

about We of regard the to landscape transactions rehears - with lease leases new tenants, as whole when as space, completely we about whole existing you that also the have up done open restaurants XX garden centers, owners well which is think and housing have office our to a for the business tenants. brought for and only lot park the in the an the not amenity but of area, area which redone

I think, to couple have in are we street the as opportunistically mean, that out well very And I Spain of to, market And continue different one we well. is retail a to with high some very us execute in plan we then those assets and that business again, allows Spain. a as well. all trade of let and So located very, will in tenants

Mitchell Germain

like getting very just do presence. you about them. had is in. institutional institutional look when I market good those Coast curious that are big or capital Ireland. of real kind have curious of distressed in only you really kind the of institutional in of Do in kind markets markets that always and you. question at markets were today? timer, I'm real are though Boise, West buying player maybe a done Reno, in have I'm they guess you those a getting Bill, investing underwriting many of much what early markets where been which the really of some never you you think the the those is, ahead is other of ever Got

William McMorrow

the a here on West you a California when of context really in in population to California if major of time California what affordability, from all universities it's all they at question. peak you finding us jobs, very, here challenging Yes, have with to And, the close in Coast, it state on great California. housing while the you people going graduating But million and it's look now XX look are be got of now act, that good of going affordability state is jobs XX.X% is time peak. See with is almost got young to people. have you to always and level rate tax can the support put not have a here here. all it's And very housing find

almost very And And XX we so Lake high very, standards. talking Seattle. where of West on a years these quality I'm the a happening example, what Coast started about there ago. in other is living is good states there is very Salt Boise, City, Seattle And

doing the before or demonstrate so to leasing are toward. and KW what was and there our can institutionalized of drive of you is to we attractive have X,XXX bogie units, Boise putting extremely That units, units the in which new a it Salt management to I We six people. is being Lake you ago we fitness ago, were really well centers and projects know in say that able other come The with be common headed what I on. market dominate, would dominant by returns. so years asset institutional can that the doing City have clearly recognized map style rents been been Seattle probably renovating been five call So by years had and centers and able on we is there call and started areas X,XXX a kind with player that

We or are in that X,XXX have own either the units development pipeline. about that we

vintage we we getting limit But we are the Reno the benefiting, know upper think size is have which Nevada of housing going in what us. has up of all created market, market to also really And you platform. as to are then is the where investing a for getting zero started So, income all that tax anchor Reno rate is our on that the and is in in market. jobs

on no the isn't so Coast over the is the in housing. but world, we said is misnomer. as place the properties. giant that I where particularly And affordable is senior have And high there other and affordable really need anybody extremely XX well for quality a that are there housing on West These so calls, know or

construction in here and large and our doing when you we Reno in very some California So the at will projects shortly. market look in Partnership, that we the a Seattle Vintage are where commencing one have going large is be in we

dynamics have So themselves into say the people is called go over they to to sustain younger I these university last in market. order has the for to be markets got the And have learned would great producing favor. of all in systems, working because have be or that that we thing you job would I these years that any a what can

And look hire. XX this their it, great you sheets. markets. in the And continue clear growth look grow. that look in at characteristic really people but and then is those then extremely well of underpinning statements, all technology sizable you that to at growth so you young and companies the their worldwide cap that university the common capitalized. these companies is on that last Boise, When the have financial are study a there at look piece study technology believe keep balance we of in markets me These systems large going if to we top the lot their the at to job are California, companies you industry technology market ability studied And at of where are Northern the look Seattle, you Dublin, will producing companies,

And them. at like job a kind front Google, down companies is so opinion and know that your you you Microsoft, major go you these Facebook, if in long so of the Dell in coming our growth companies of can Apple, have from capitalized on runway growth line in very well a the look Dublin growth

Mitchell Germain

you. Thank

Operator

Johnston Deutsche [Operator next ahead. Instructions] Our Bank. Derek question from go is with Please

Derek Johnston

Good morning.

William McMorrow

morning Good Derek.

Derek Johnston

with you thinking in capital best the of lighter XQ. share through are How use the buybacks

I more you as as XXXX, which ahead do forward? look acquisition You anticipate be well you side do others guys expected and the uses than have active and active been to the to But as going on development how buybacks. stack

William McMorrow

are allocation the capital being good demonstrated I pretty good, decisions. record much way the are of good so best decisions always so opportunity lie Well you partners is a and think and have we capital are decisions these and our capital. stewards as track you do And always allocating - these shareholders' not but what they of think not very

have buybacks allocate and keep to to want level initiative try to factors almost we and As large and we have form that a have so capital. forever very CapEx all that or year that point and have in. dividends cash way a This been and million of standpoint existing stock development Kennedy-Wilson. $XXX we out alone been forward need start we stock has we And minimum where in since properties the at to doing we places pointed Mary is the do are I of returned got the at think these the have from going we you there have to out, shareholders we buybacks a

opportunities. on So the at of radar we is screen, it capital our terms it's just are on something allocating that to clearly various where depends in

Derek Johnston

back getting States, the do Great. multifamily And the of the impact focus the Mitch feel will with in revenue that recent trajectory just U.S. to the and growth platform and how NOI? Mountain on you

William McMorrow

going to now I'm So Windisch answer that let Derek.

Matt Windisch

Thanks.

a capital where say that of great would and regions bit the portfolio out have rents couple that are below in XX% if we look portfolio. success affordability years, you the of I mentioned, purposely and of reasons. some past fact been as at So, California we returns the great one produced you the couple some had Mountain and a our shifted is California towards those it's Number the States and shifted

The growth vibrant we X% front mid are second growth the where very particular, of had single-digits. and the in to Mountain you populations the very if part from these results, NOI in And is, California markets are we but of can underserved economic see with strong, growing our State are think markets quarter, still this areas low in them.

area. So we our those bought has recently. and as our above we think can forward the State State and outperform Mountain those We to Mountains relatively market we to efforts properties on continue think value-add, in continue do going rent the which particularly market we continue focus to certainly in properties growth,

outlook of side, is So mix couple the same portfolio. in think strong years the property the very very, the next the we on given

William McMorrow

new borrowing in that just year properties a United which markets I thing XX-year Salt say the one now the so on for Matt, our team so versus And, interest if borrowed XXX City, are loan Mary, Ireland in in surprisingly Ireland, on And we the rate in one into that depending we so are touching borrowing are exchanging and have and rates of borrowing market. a you two that the and other we I her is put important the to would could little rate, in which there fixed in the think one there to in one buying X.XX%, only roughly seven the and rates see a Derek, that a at remember thing loans, the XX-year XXX. that Lake and projects our and is was for to we are you term what same term tyranny Salt States years. differentials add are for found seven States, here on we roughly XX-years learned pay over place California particularly Lake and it with Mary differential apartment these United years

allocating government how don't like all below are and at there here is no at extremely and look really on there And borrowing projects. United between high States it's apartment so in assets very borrowing in quality differential borrowing the up is States to capital we you on rate a United rate are differential are the at here to U.S. play able but so able the Europe, lock long-term in interest the but rate between these today big we rates raised here City borrowing and in fixed know, in and really in looking are like market. We we loans we to to decisions where X%, California when is in Salt borrow you we borrow Ireland, Lake

Derek Johnston

for you. rate are what Excellent in is lastly rising of trends in just you markets? cap U.S. light me tenure mentioned, And on Thank that your your point. thoughts

William McMorrow

Yes.

buying on adjustment few be have assets opinion are very at in We buy we now right new an the there in has side. period that interested cap to rates and our

seen tenure. this fair, and at think at in standards We between tenure I but the yet to historical if be below even XXX terms somewhere it's have it's basis of the tenure points look stabilizes you almost the average haven’t XXX, it rate for to where year XXX

well everybody they And There though but still sensitized so increases, and or rate, levels know business. has I this right do that rate recent even great standard and we great ability and shareholders where still there ability is us any is to to these with for rate are these our historical our now. been the money below at make way is near

Matt Windisch

add to just to And that too.

rate half interest the as basis portfolios in half at U.S. Our earlier, points the other and was portfolio XX% increase Europe, so rate our there so Europe some is XX% of hasn't seen really have XXX all. mentioned is obviously and differential

William McMorrow

Yes.

a you really Matt are think I good point. making

our the shareholders. diversity in of least to risk to I quality - very but high nature our portfolio is at way think of solid the a very, for geographically the opinion it diversity spread

area reliant on sustain any geographic are not we that to entirely So long-term returns. one

Derek Johnston

you. thank And points. Good

Operator

Our Bibb CJS with from go next Securities. comes Please Craig ahead. question

Michael Hagan

actually Craig Michael you a Hagan specific question. And to ask for Mary it's in wanted morning here. dialing Good

First all congrats on recent of your promotion.

Mary Ricks

Thanks.

Michael Hagan

capital specifically we $X Kennedy-Wilson are billion talking start. is a But about that this bearing partner fantastic is attractive we believe that an for institutional an and certainly fee asset

a range. management how it time curious five larger call We grow much in under to are three can your year assets

Mary Ricks

Well are a is discretionary is going fund think way only obviously to about for wrapping focused an U.S. a our $X complement. I doing our that And have are we your we to with funds. think latest billion up on not and achievable we we goal year our funds, growing our are we on thanks what well that

preliminary we be which what accounts to X that and got have discretionary this then We including insurance interest is company. Europe some a are good KW bucket called there have the going launching obviously separate fund where with have these all large we core we we Fund

scale really we I quality yes, need there are globe feel we team we team, to have and high very, a the focused don't we So operating. like across we think very got the where are

when different positioned and well are think people Kennedy-Wilson great world. and a interest is East. of setup and the look most had our the from known and we obviously that parts a interesting you Middle and well doing are now name lot And We our recent it's investors the with have France think have we think I reputation U.S. across at big I we following a of is I from always in access So

kind the asset institutional attracting globe in super of think see need our I management, way. of the partners you it's world are executing will on around capital for wings as So us look keep encouraging. the that and it's spreading keep on And our to all we development we if how just we plans you our same

optimistic. really, So really we are

Michael Hagan

had this And Thanks, I we actually for color. appreciate your morning. Excellent. the gestured. Mary that were time other questions

Mary Ricks

Thank you.

William McMorrow

you. Thank

Operator

the our McMorrow turn conclude would to question-and-answer to will closing for like this remarks. I And Bill over any session. back conference

William McMorrow

we we everybody call shareholders, the So you are have on for those your obviously support. thank and that all but not

We again. quarter. have to look had next will we talking to and a great year-to-date, forward you Thanks

Operator

The for presentation. conference Thank has you attending now concluded. today's

disconnect. may now You

Kennedy-Wilson (KW) 1 Nov 182018 Q3 Earnings call transcript