KW - Earnings call transcript Q4 2018 | Kennedy-Wilson Holdings, Inc.

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Operator

Good day and welcome to the Kennedy-Wilson Fourth Quarter 2018 Earnings Call and Webcast. Today’s conference is being recorded. After today’s presentation there will be an opportunity to ask question. [Operator Instructions] I would now like to turn the conference over to Mr. Daven Bhavsar, Vice-President of Investor Relations. ahead. go Please

Daven Bhavsar

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

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

William McMorrow

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

operating as our initiatives our solid I'd property results party questions. to up on before NOI year including financial Kennedy-Wilson. opening of bearing capital report third and like then growth it to as to record property key focus another reviewing results by pleased quarter well fee growing capping and are a our off our We start for financial

So starting financial results. the with

per For a with ago. the was GAAP $X.XX compared EPS quarter, share $X.XX year

$X.XX For for record the from increase a $X.XX, XXXX. a year, totaled XX% GAAP EPS

annual income Adjusted year, $XXX record in of is the XX%. a increase million, we adjusted XXXX. which EBITDA than of produced last million XX% XXXX $XXX For net a record higher totaled million an in the year, $XXX produced to $XXX compared million we

Turning to Western X% annual the portfolio. X% another coming an property Europe and and our solid XX% had across of had stabilized estimated NOI XX% same NOI our growing with primarily of our from by in assets of $XXX property million We as revenue property growing U.S. United portfolio, year-end, the same quarter by operations with from Kingdom. and global Ireland

in year, the NOI revenue X%. same grew our by property For

multi-family These in up same rate continued average market NOI portfolio real growth estate growth saw Our robust the results of NOI quarter. the for growth is and produced against favorably X%. other X.X% public compare and property companies, who to quarter, an X% revenue

estimated with behind grew to City, Boise the which continue feel region of at low Salt on cities NOI tech same growth. Boise, Provo-Orem cost cost many to located the from affordable. living, Boise, Our strategy benefits portfolio remain Lake being migrating the units of Rents in yet management relatively multifamily We Boise NOI in which is Utah's young like State Intel, and home add Milken and number continues an are largest metrics again, region robust California the Mountain for State age value XX% city the of continues was them high in draw now and in to in from performing and the multi-family successful a the our portfolio benefit to and at XXXX wage U.S. own from teams. markets rents to City our the below Lake the and properties second in year our highest continue by one asset assets country attractive region growth. Northwest. which each. global Mountain of BYU, our particular, Salt year city's a properties and our experience Institute under growing from In of ranked includes Mountain Seattle San This Microsoft Average with second as metros X% last submarket, in such over a economic the moving nation our professionals States, the Reno Pacific top it study multifamily the and was an people companies the the to execution of gains. growth revenue our evaluated property influx making creation XX% Once rates XX, in Facebook Adobe, of an XX being basis of Francisco. portfolio. job including the portfolio in across by properties of at performing top Mountain in rents largest row. a XXX as State

coupled sector region's the growth tech investment affordability and a attractive think dynamic a creates very market. continued population we with So

with Turning represents global the management to stabilized our the a occupancy increasing growth basis. same-property the largely and in quarter of leasing commercial amount. In by were same portfolio we of leased. growth at a which driven total, good our our strong had commercial In sits X% activity same-property revenue U.S. XX% and results assets largest basis on X% quarter asset component, NOI office portfolio, the on a with

momentum leases square strong XXX,XXX across total bringing Our office properties. increase year-to-date asset transactions we in XX square in at rents. lease quarter, with our a rentable in across our management XXX,XXX to team X% the Similarly almost feet saw feet completed leasing office Europe,

During rentable XX% across in rents. a XX square X increase transactions the in completed million resulting lease feet, quarter, we

million rent, completed XX% square Europe commercial leasing transactions rents. $XX of we feet, a X.X previous For across year, XXX on the increase represents in annual adding million which

XXXX executing into other fee our three, primary like beyond. our and three strategic that out sale be I'd in and number and and our outsized and where global to recycling one, to on asset the opportunities. have capital emphasis Now two, calls that returns investments growing laid investment on strategic our discuss are our continue we initiatives number key progress Number previous NOI; program which our on recycling we capital producing growing business, and management property

number are there with NOI. in two property we one, ways our key starting which grow So

on continue portfolio, growing projects. growing progress program. value-add the U.S. portfolio management stabilized through Within and on at completion our income development our through our the strategic make are through second, of value-add stabilized focused First, the great asset lease-up and we to In pipeline. CapEx our NOI organically we

For Similarly floors to global in maintained over of XX% renovate with the over and see Southbank, cost. We property upgrades Bridge returns also transaction eight XXXX comprehensive well U.K. typically NOI. ultimately had XXXX, levels averages. on as Seattle. quarter, Once Belara yield at to the we Portland goal this at have XX-year asset XX% our refurbishment spend interior stabilized, in markets Central was and renovations estate Europe Whitewater JLL. in Savier the years. tenure absorption in XXXX quarter to asset look in foot XXXX example and according we many center take next in will generate center year Boise square At both building. $XX,XXX over office and of X,XXX Friars three office XXXX. X%. the strong million on a all grow units known $XX,XXX WeWork, above feet, the typically and WeWork we real to we XXXX asset that greater the city management XXXX London in a leasing units completed investment position a largest ongoing new In X,XXX this to and we KW approximately during renovation Park which signed to the in to London unit in lease in-place and as expect submarket per initiatives very square in is common fitness the in Court totaled Southbank for our area XX,XXX its another surpassing XX top We in a a cost London following X,XXX the quarter, lease our to of completed unit and completed

total include the income the wave bulk $XXX Village property, million square for at the a to market XX add two by these and hotel million completing a in commercial multifamily us in units, assets XXXX XXXX. lease-up are will in affordable the producing to to of current estimated second Hawaii. ventures. Based development and and NOI annual add add In NOI Resort X,XXX rate conditions, is the projects, which we Kona our acre third we feet U.S. of XXX-room end of through of expect X.X key KW's over The our end of developments expect which recurring initiatives by market on

the grow developer When venture, proceeds grown $XX this joint by an development located sale almost in which to cash cash acquired We Western the in senior management engaged X,XXX Japanese complete, in track from Vintage up million for portfolio fees has will sale of we the reduced million $X States to under majority over with a X,XXX units credits and million, to Today, our included affordable KW we basis and bring the units has required using our cash next in originally annual our have interest with through units these Housing, the of few a XX% step Taking in expected development minimal an equity been Housing X,XXX existing years Vintage from housing. apartment through projects $XX from unit the business. million. United distributions and is no of back, investments. which portfolio NOI $X remain on of and XXXX joint tax the while to First, XX,XXX venture KW.

Second, progress Resort. the we Kona Village to of continue make

Quay, as our joint open is resorts. groups this and $X.X and I'd currently XXXX. the is President is call The Dock, currently as a of Hanover of we like in billion. these of development the approximately manages venture X. which we XX Total the generate office. projects Kildare, represents toward Ricks, Kennedy-Wilson. XX% Dublin, the a operator the The The Resort Mary Village under include Dublin with weighted that hand luxury Kona to family the in by to in is of remainder office over multifamily location. development at expected to one-of-a-kind Ireland, XX-XX now in is During Rosewood top heavily projects Block Grange, of to pipeline one hotel Capital both cost the Rosewood such quarter, City appointed major XXXX world way hotel NOI Quay, iconic The and and expect Clancy

Mary Ricks

to completing Bill. we development progress excellent projects. Thanks stabilizing Europe, continue in make In assets Great. and

office the During stabilized space. quarter, the portion we the of Capital final Dock

units an that at business X% this to leasing for on we retail at for by multifamily in years our office Indeed construction have the represents we started occupied we the successfully office the XXXX which building feet Hotel. We by our In expect have up in the X construction by to took track the largest the great to Leavesden transaction XX-year summer. our to add the buildings completed asset of end next on our is Once an adjacent occupancy XX,XXX we Street, the announce this the globally of of complete the start pleased by including in space, XX the in to deliver lease quarter ASOS Shelbourne in to for the will feet both Park second estimated online XXXX. $XXX million on of X% XXXX. KW. NOI Europe of this with we're feet which and and midst of yield We which to leasing we final assets project $XX XXX,XXX lease stabilize now in annual cost. will at our Two project, stabilize one submarket remain expect additional square open half global Dock. and million asset Kildare Quay, largest which the premium Southeast time will asset XX,XXX now office out estimated asset from Separately, building at This In developments are these QX, fully retailer Currently is U.K. completed cap of of we square are approximately square by last year. Hanover to construction making Capital $XX occupied, XXXX on target XX,XXX on is Ireland. us who certain, million to million JPMorgan progress XXX of to the at NOI Altogether, feet quarter. bought square term the the fully rate occupied at fashion

similar to basis XXX or are We assets seeing stabilized than are X% on XXX of basis points higher typically to where yields points currently cost X% roughly transacting.

from of We we of and non-core reshape institutions many as dispose large and portfolios which portfolio XXXX. our in financial continue our in were two assets, acquired on plans Europe to XXXX execute business in two

over U.K. and Over sectors our the the assets and sold on in focus gains XXX last years, to three multifamily. we've with of continue core significant office

result, Ireland U.K. the represents with European NOI XX%. a our As now XX% accounting of for

is billion which invested global total, our of discretionary of Our initiative management our second through remainder account $X.X platform. growing raising the and co-mingled fee-bearing is business. key In and have XX% funds we through currently capital, investment our fee-bearing capital separate

successfully Given have $XX in third-party we decade. past fact in capital billion our have over long XX-year and the raised record, excess raising track history of a of

and manage investment in properties million Group. is a make continue insurance has In XX/XX while located arm East economic approximately in great which insurance Asia. fees. public companies, invested platform with the these earning on a estate separate America, Our million insurance family closed company unlevered major and private the offices, now the joint two French total U.S. and the clients multifamily January AXA private in Europe, will pensions, this In Europe, $X.X IM-Real the real investments have partners in more platforms trillion $XXX of with our to investors Middle account our a $XXX progress new venture totaling interest we equity North AXA multinational we X% Irish the partner. as and where institutional major company almost KW in Assets, We portfolio of include customary including core

GDP Following our stages development. in now total, various Dublin, X,XXX In Grange submarket our in acquisition platform European the Sandyford our of with properties with across units totals in of quarter X,XXX the growing units of multifamily forecast AXA The built The eight of approximately perform portfolio at are developments. to units strongly X.X% of currently XXXX economy for and of continues XXXX. for X,XXX various estimated almost or either stands at robust growth X% built stages that over Irish with another

as the world the capital year the Over reaching such three and are the take of and X.X JPMorgan, with $X.X the Citi companies Street X.X% driven Ireland also Bank XXXX office at strong million square feet. funds the for GDP The to of fuel economic triple is the fund foreign largest businesses. custody of large in demand by average see of there. was sitting continues with ranked number expansion trillion world's the role America, be X.X%. playing to of supporting of the in Docks. Amazon, approximately domiciled EU State years, Dublin job large investment is creation who Ireland driven of primarily such Silicon XXXX. Eurozone expansion in unemployment a the was has just services value sustained particular fund services Ireland one the with a one highest rate in averaged the last now almost strong LinkedIn continued centers occurring high X.X%. growth as Indeed, This expect we flows Financial by performance Microsoft, in growth to record for firms Facebook, and in Google, direct and market technology FDI continue up and also

of strongly, leasing more office Given Ireland, The market multifamily in we to creating education demand labor our our track much to units. Dublin both continues annum growing both in and our nationals immigration medium-term significant to Dublin the continue very force for to Ireland turn part aim to and new City hit Irish extraordinary needed remain in XXXX firmly XXXX. driven driving in perform between alone to XX,XXX high X,XXX multifamily under-supply. born units near growth, see goal on is young, multifamily. and system portfolio estimated to require delivering and demand continue and We per playing well-educated housing in by

that, growth. confident over are fee-bearing new executing any that in changes XXXX, ahead, turn we resulting in raise And we will which back high-margin are to capital overhead, with significant to the Looking Bill. without call we like meaningful I'd in

William McMorrow

Thanks, Mary.

our area recycling and of is asset third sale The the focus capital. program of

our for $XXX follows; of XX% During $XXX to our capital in and of of the sold new also to cash to project level gains we million form was which XX% generated investment XX% a share total, XX% returned approximately of sale Europe went to dividends dividend allocated KW we Dublin In share estate million of CapEx, our at share. to quarter per Google. share total million. total of quarter, $XXX our XXXX, assets, property XXXX, to our was generated $XX.XX repurchased of of sale building shares a plan; sales, acquisitions. which KW, record as the largest $XXX accounted initial We quarter, real including KW. a repurchase our shareholders by the million the and In per sales quarter, have stock to to asset and the beginning million. of from XXXX in which repurchases, year-to-date in the a of we $XX asset $XXX in XXXX per back have equates million $X the $XXX capital an of in our of increased our totaling cash to square XX XXX% of we Since sold XX,XXX the dividend $X.XX share million share. Since we've the feet, price repurchases. in for our In for average million two-office

from contributed nearly XXXX the In our grew to Lastly, our in fourth operating revenues Meyers we that employees. of we business Originally $XX against XXXX, divested expenses quarter. division million to XX million. acquired $XX XXX Meyers in back Research of employees

backed flagship market its that real-time Zonda, launched data. insights provides During our ownership, platform Meyers by Research housing

the Kennedy-Wilson gain payroll the started due years. -- in lowest our $XX of of a payroll result sale XXXX to in five of recorded a sale, Meyers, with million QX. we Also As base

billion credit we also assets or have In million continue non-core assets well as to elevated our completed revolving value-add sale approximately XXXX, cash We as a levels we continue keep facility. asset with liquidity where will focus of $XXX between $X on business undrawn assets smaller selling program and to our plan.

For we which XXX and XXXX $XXX for $XX penthouse Carlton, XX unsold sold with acquired example, we and asset our the Tahoe partner the January for rooms million, Ritz came XX% in million, Lake condos. in

available grew and Club During our million, ownership, XX developed sold the to for we condos by amenity revenue the XXX%. Lake room

the which million $XXX which was investments. of earned be in total, the recognized Over expect from the months. In be be $XXX million to The investment QX, conditions $XX debt million including million KW remainder XX to market development XX to of of fund cash totaling cash between for and in stable, cash to off generate next to $XXX will XXXX, $XX assuming the profit we life in to paying of the $XXX part XXXX. KW assets remain utilized new to million CapEx and sales our initiatives used over will million

So, is business XXXX and I'm the and once our XXXX very beyond. for positioned again how pleased results with for

with to up it any questions. open So, to I'd that, like

Operator

the Group. now first At roster. and assemble JMP our We We'll time Mitch our begin answer to Germain pause question with will we question session. from momentarily will [Operator Instructions] this take

Mitch Germain

see your that the business structure rent implications on for is morning. London, controls Good I in your that we way the there strategy? going that side. you or the have Is pushing any to some multifamily on know Mayor

Mary Ricks

whole till now the high the XXs on took Hi, terms a in Pioneer Mitch. And did debt Point. that. units. of amenity bought the lender, we We in that was one in of refurbed side title, actually We from multifamily It actually the asset let. we're bought and our just piece own London

in asset. think own expect impact particular sector places market capital I completely don't into the much both is there. that of very obviously multifamily coming. that real under is sector have any I up of mean But lot that's And is gone on I lot those multifamily the that where we and no, a to now a like Dublin London So, is projects in the supplied. quite There's

XX/XX in that it's JV. projects impact pretty we're not AXA But us London doing point. Dublin at going about our with we're in excited so and And now this our to

Mitch Germain

there some of Could regions any other implication adopting of similar be sort from protocol? drafting

William McMorrow

globally? mean You

Mitch Germain

pursuing that UK? Ireland, think to in or some something just similar like maybe case it then the specific Or to you

William McMorrow

rent apartment I mean and generally California think turnover to you I XX% about when units in in here in generally the but you control, your every have example Angeles for Los think business year. is XX% there

Angeles so units like bring turned you're And units those have over turn market. over for Los example to once those to that in here allowed

So, is a every doesn't impact of have rent control, big tend because of the while that amount it turnover there you to have year.

Mitch Germain

a how year. will what one share Got assets from that depending much assets like target But sales of this the last be the your of and you. then assets fairly similar me. a is that And level are? it lot the of to of the Seems certain sold? on Obviously profile be going are

William McMorrow

in we there estate the amount assets Well, the is into script, and of assets came reached we large from global of necessarily said to today. a portfolios some then of keep we're the assets that our sense And business long a sell with is two but to I real opinion. continue have these that the we continuing through that And those. coming institutions when like term, financial that value tremendous a in work the capital number their so full noncore don't have the want to in that we bought

year year be this excellent will of XXXX And so that believe sales really we of opportunities. another

good avail speaking, continue this so somewhat. want though up crept Generally we rates they've you've And even to interest got market. to ourselves of

still here tenure lows Europe. the got in and rent markets historical the two in You've big

rates lows. You've historic got tenure at

$XXX market And million $XXX for generate somewhere we to of million net cash I said plan very year. us very for like to a to good So the we think there's selling. between

Mitch Germain

you. Thank

Operator

Anthony We’ll take JPMorgan. Paolone from next question with our

Anthony Paolone

cash used the start to debt. I'll you morning. sellers I'll. were excess good the and Thank we're in the and off pay fourth Mitch quarter of net where then some just down left you

or similar of million you Does overall you in XXXX. levels reducing average about $XXX pretty at that the redeployed to million up that end think leverage $XXX as stays just think constant? type gets do So and

William McMorrow

the first about, we closed to we the thing $XXX Yes. in that still have, paid from we acquisition Mitch, $XX million million. million four-year that a I we KWE and $XXX would is I term October down mean, -- XXXX, talk from loan, which had

So that unsecured that's off an this term year. plan we loan to pay

also asset We debt that do this plan year. some in other paydowns we have level to Europe

that process leverage about, not we're loan and in project So I now now. -- to debt close maturities that think Capital maturities, have Mary don't Dock size going about we company entire next of points XX matures in on December spoke only to we $XXX think that the process One you We million, in then two increasing. other to as of you're in this see of we is as the the in already that only -- far similar XX expect the when also that and We're is that days. too and million. debt And taking of roughly really year company. in $XXX one refinancing care the have loan the

costs users. debt our any debt So, generally I that think at be rate this side, are debt us not average debt we important always along right just under of also elected is we the floating average year. too, and point six have remember about to to, about to as speak way when too, talk speaking, the around don't have our slightly the other maturities we And all think of really we've you maturities years. running left And debt X%

fund only assets, able three rate sell lives far years, generally around is to prepayment floating in as percent so is and using of of the assets those platform fixed we without debt that is situations our we the generally, where And somewhere or plus and XX those any flexibility debt place to either in those discretionary are our us penalty. them the hedged, keeping be want as or four management

Anthony Paolone

and was store that core, sounds could the unit the over to generate it I strong to you'll that If growth XXXX, continue shift like very same returns. renovation apartment in strong Okay. like have and things

think moderates, general? at core asset work if you're happen to into think level from come in to what how that much the market growth you the curious sustainable Just is the kind you or versus level of if in that doing is XXXX you of need set

William McMorrow

you to. Matt, want

Matt Windisch

Sure. Yes.

to goal institutional add locations outperform always think in when and I the to to grow can assets where are and both and to market perspective, value there, think assets. adding So rents find a bit go and is they time things we try an into over from get our on capital we markets these the undiscovered value to by

is And so hundred X%, you the we're to to of there is ability and in remains and the by we're couple assuming market basis to roughly continuing your turn these rents an they're revenue growth. trying points, we get can market it, to time. outperform we're and mentioned, markets hoping affordable X% answer where where relatively units, so as a really grow markets it find over goal But to to question, our continue be growth

William McMorrow

we've add a before finding had too, -- history of there. markets the comments, get XX-year would on I Matt's to people other with say to

five in have started really players market. when went And ago, so we're Seattle Salt Seattle, think so probably about Lake in ago, Seattle or And we institutional XX market. now -- almost player if weren't and years we a City, we six in that you to years big the there

markets mentioned, East Bay done so decent-sized and those to Francisco, two Ireland. build get our allows we to these markets San done and I we've to infrastructure that the into positions radar in of that we've everybody's before piles get us what management try in. really like on and and tend We just else teams everybody these markets before in screen, And they're in our get into those

Anthony Paolone

as with being it pipeline Dublin the How and place you returns inflation development And think large out? to work well, there? very risk get there last to do economy then a future development as of you're doing the you as that pipeline question cost just on into the about factor a piece deals trying is a

William McMorrow

that, answer of before your in budgeting one the can discovered in there. Mary think very have building actually and let we your is, that timing terms -- Ireland I I'll precise on you thing but be

you So turn Mary, have this I there, certainty projects but you. you real good start when cost the to will

Mary Ricks

Yes. I going that, costs our that's projects contracts have there with on, construction to escalating have obviously live to just fixed-price buildings but with we been the mean, all contractors. now, our add

of We template with proprietary a degree contractor sort of also the provides have, early high I a guess, design that certainty.

I of point So that risk relationships contractors. big allows the fact been I make we all the is, then in And and would overruns. guess mitigate the deep Dublin, subs have the we cost the such have with us very to builders that last

So terms it's costs down. keeping helpful our of really in

William McMorrow

Mary the is construction own here have add in thing management that -- Europe, Dublin in States, would the our too, in both teams. to that other based And I and United we

And that those groups. jurisdictions, people are so in have between XX probably close to two we those

it's so costs keep really very, or all KW the And very, whether these allows very that construction like the of deadlines. us of management And internally good and is years control over really processes, a asset done we've lot what manage management. to at

Anthony Paolone

Okay. Thank you.

Operator

Tom We'll Hennessy take from next [Operator Bank. our with Instructions] question Deutsche

Tom Hennessy

TI free has the wanted follow I but big perhaps the maybe deal to Good you US rent on markets? Europe, a it's know and versus side. international I on could really trending, side classify been up in just the I just mean, morning. over how not

Mary Ricks

Yes. about free in He Europe. rent is asking

William McMorrow

ahead. Free rent. Go Yes.

Mary Ricks

significantly. I Yes. and in mean, exceeded have look, London Dublin in the think, take-up XX-year averages I

leases, UK, I at the resulted million you when we've we $XX XXX which that leasing So rent. think done, in in of XXX our the leases look did

on side. active So very was leasing team very, the our

seeing are long. vaults also You're that very

So eight that deals a the first to the years and did. half the all of on break leases terms were we

So up I we've would that in we additional the London's Brexit a deals say noise. on haven't seen well lot rent done, what's the what's free with average very, the And despite market. very than on the going whole of held

their seen got office whole long is space far, we have UK wanting And no in thus costs. remind certainty So lot to of we tenants and vaults financial a our you, of terms seen really our softening. we've their institution to exposure. and haven't in portfolio, occupancy just down have lock what We've

asset the regears making sort deals of management in space, from today tenants with terms an that referendum vacant to that vacant on And announced space job done going has up our was in cleaning being our the so getting and unbelievable of our team and time proactive and relet.

so And ahead UK, ahead of well example, rents, doing the passing of passing we're XX% deals in rents. at for

issues. really good So and about we're far fundamentally thus portfolio feeling no our

William McMorrow

lease comments, mean, too, the And if to you and a lease, Indeed ASOS add that's lease think XX. Mary, XX-year the to your I was about

really somewhere and And Ireland, in so is say these to we're years Kingdom attractive Europe, what years, between And to United five focused said Europe. in -- skewed five think, on speaking, you generally for States, calls lease I are recent lease your seven and to here when and more XX terms I the the years. in that United and so years we've very get terms in

the what's is makes two had like seeing do very in it what is going too that -- we're the part markets the little on in -- that very, part of that has in. to those it office Brexit. growth we're with really, very, so market extremely And other it that in with And Ireland attractive

population these cost these basically highly university being educated got you Morgan the grade major compared seeing like of for as JP go can States. to where Ireland financial here because school in You've the from in United benefits institutions of markets to very the minimal the in

leasing. market very, office very for a it's So attractive

Tom Hennessy

That's is color. existing you or have or tenants, you I I new mean, impact, on mentioned mean, from attitude a on too. actually impact I whole demand seen tenants? that follow-up of just financial have existing know you there whatnot? don't but... Brexit any changes great And the an then institutions,

Mary Ricks

mean, I they No. so I big just think things we costs occupancy control, of Again, things that being one looking certainty those haven't. for for in them. can they're

just we've proactive. So been really

the As done a team I said, job. has great

William McMorrow

but concerned above an that of well rents. at in the Street a going see think can the Journal there which capital. in far Brexit or the mean, the people couple ago, whole high. to to world are around there world, and are the Well, one The article Brexit occupancies to been jobs as that going look doing previous Kingdom, point, want financial case be I and is of that's United contrary, Mary, their sector Kingdom, you're here beginning willing be employment, or happening, the and places where the the think to a other week still Brexit the meltdown proven we've nobody a there's United in very no the that was at invest the when misnomer you roughly at was I discussion forecast that, whatever years at capital to ends of everybody in like -- the I XXX,XXX was And hasn't as so leases it Wall this all. services ago And or up actually markets really developed

Mary Ricks

investment shown And of by last volumes billion. Absolutely. year the record $XX

Tom Hennessy

you. Thank Great.

Operator

take will Securities. CJS from We question next Craig with Bibb our

Mike Hagan

you like promotes? Craig's Good the behalf but morning. also and the for of our the what think and spreads potentially possible be, side spreads there It's terms would it. control actually what do be cap is rates Mike question I Ireland cap cost demographics, rate thank on on also would in including Hagan you guess, of both color

William McMorrow

basis starting less the tenure than States, in from the got about in XXX States, Yes. the like XXX, point, Ireland, United really saying, starting, the and is have I costs looking XXX; you've debt part -- United the points. and it tenure ability the so mean, we from play to in that's the Kennedy-Wilson, of I United if point in different attractive Kingdom, am my the Western in of view, you're -- of Ireland, at that

seeing piece to the good in you're X.X% working -- for X%, the debt X%. here around example, States is ability end going for in we're a of it's years being between And And up Ireland, where a located. on somewhere that's the so today United loan pretty and financing XX to depending long-term asset on

where estate to occupancies being of real strong that script, rates as said I globe cap luxury the population are capital, we systems, allocate to really to can stabilizing markets the X% we growth in And that like and so, those which and are the in have spreads rents. make strong and and you've we got job and said, have so very all investing and between there assets very, is and about want sustain high, because decisions of several your university around X% have job the of we these happens you've that the key growth growth got to

Mike Hagan

I Excellent. more you returns. guess the and pretty discussed? Very then about And developments another much provide just the also question appreciated. attractive Can color little on you financing a Vintage that Housing

William McMorrow

Matt?

Matt Windisch

Yes. Sure.

point, our I West for as obviously thesis and lack is just a affordable need a of So the on starting that of and housing there housing. Coast a that is type think there's senior

venture, do provide for the tax and us to either And so properties housing, as bond properties and little build through in have, and affordable is existing our here equity or credits senior And primarily in well exempt to well. new to to partners we the with our financing able Vintage partner, buy as utilizing Seattle in California tax and Housing, program, Reno we're this so. no from able our as tax credit high market, quality market, we're and largest

we next recurring us, the upfront that fees expect have but to long we cash pipeline in that couple several only the finish not units some of also term. thousand the are so And to that years in over flow will produce

to that's an with few pipeline. the with that getting two are want so or to the a area years of X,XXX next and built in that try XX,XXX already continue grow focus either units up over or smartly year on goal we to to next the And in

Mike Hagan

should more continue that the and one the in California and kind with in Northern multifamily if you of to the talking expect could you reinvesting And you. you Salt Thank of three demographics of were also see? Excellent. we sales about, kind just allow here, areas those Lake favorable me Boises Cities

Matt Windisch

size we year. selling Area Yes. I that -- we're specific in of don't anything Bay don't this have think focused the on

We couple look that to have multifamily of we the we sold we portfolio down the Bay Area specifically we're opportunities. have sale Bay assets a with assets bit, but the what we redeploy higher pleased very for but a do Area, view as are have there return planned in would into would that

Mike Hagan

Thanks. you all. Okay. Thank

William McMorrow

you. Thank

Operator

to remarks. there conference time, no further to I McMorrow, would for back questions closing As Bill like CEO, are turn this the at any

William McMorrow

Okay.

KW. the trying continued you. everyone, at thank for what call said, and As do we're support appreciate you on of being I this thank here to We always

very much. So thanks

Operator

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

Kennedy-Wilson (KW) 28 Feb 192018 Q4 Earnings call transcript