KW - Earnings call transcript Q2 2019 | Kennedy-Wilson Holdings, Inc.

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Operator

Good day and welcome to the Kennedy-Wilson Second Quarter 2019 Earnings Call and Webcast. Today's presentation is being recorded. [Operator Instructions]

I would now like to turn the conference over to Daven Bhavsar, Vice President of Investor Relations. Please go ahead.

Daven Bhavsar

morning. good and you, Thank and This is McMorrow, President today Bill of joining Kennedy-Wilson; of Financial Kennedy-Wilson. Bhavsar and CEO and Kennedy-Wilson; President Chairman Vice Ricks, Windisch, us Enbody, of Chief Matt Officer are Executive Daven Justin Kennedy-Wilson; of Mary

being information. and see webcast by more call site replay months. archived Please The Investor will for for Relations for and is Today's be X available week be replay. the Web will by webcast live phone for three

On will and financial net we this including income. measures non-GAAP call, certain to refer adjusted adjusted EBITDA

items You directly with can of find and earnings a description financial on GAAP is reconciliation of our most section these the the which Web quarter Relations XXXX along release, our of site. measure second a comparable posted Investor

this other may may the filings in this call with statements. Actual during from information of made number factors Exchange Securities and a and forward-looking call risks, discussed results forward-looking include uncertainties indicated due on Commission. differ materially and Statements reports to

I over CEO, to turn our the call would McMorrow. and Bill Chairman to now like

Bill McMorrow

everyone thanks Thanks, morning and Good for today. joining Daven. us

at separate results, pleased business assets successful or a to of property quarter highlighted Dock. disposition account new continued property opportunities at Capital growth venture We're higher growth strength reinvested same our our through of continued solid by non-core into being of with in properties, proceeds results CapEx report the existing joint the and our

it the questions. quarter key we our morning, up then This made financial our on opening property initiatives for I'll review progress for before strategic and results and update you operating the on

our results. with So, starting

$XXX of quarter share in income QX totaled QX share EBITDA XXXX. the net was compared $XXX QX million $XXX Adjusted to XXXX. GAAP XXXX. of per the compared $X.XX to with per was million of in For quarter, $XXX in EPS Adjusted million million compared in $X.XX

in $XX and QX fewer of given year. are always of gains any to in QX had level results we XXXX Our compared the million quarter last gains impacted by in

EBITDA However, basis had last quarters was both of of one in adjusted the we've results on it quarter, past and decade. this a GAAP strongest the EPS financial

Our up X% to continues well revenue NOI portfolio and same perform with same X%. up property global property very

growth our to continue unlock U.S. through buying value-add strategy Western and strong in management. see where can through where in growing multifamily initiatives our the We involves portfolio markets of completion value institutional assets we asset our

resulting trend QX, publicly-traded up companies. As many in is continue in we've this NOI against this estate seen many up we same same-store real saw with property for in X%. again, once other quarters, results and revenue strategy leading And X%

recreational NOI charge in XX and the the X% market Mountain our up Salt X% affordable Lake Same-store Leading assets City revenue quarter is Idaho. top the primarily was totals now up portfolio, State quarter. This located which in and professionals. Boise, rate we both tax was and XXXX X% along outdoor lifestyle on These growth this highly of today's was of to cost that job in growth and an to compared states living affordable saw benefit markets offering with from by NOI growth continue high desired California, population like with is and young an XXXX.

year produced pace fell growing the fueled at pace area housing by growing continue unemployment are robust third demands college each Jobs the in population with grow to the The coupled a years. country; to to board. XX In Salt across the be graduates the in June, the state. continues Greater at approximately lowest in rate XX,XXX the Lake fastest rapidly X.X%,

economic delivered feel is There this years, the rents our than activity less to apartments over a we Mountain the having region XX% is feet expected our square is to which With in two average X.X growth positive of that portfolio. will drive $X,XXX, of also million State construction of under strong in pre-leased. be next continue confident office that

where see growth under million Pacific feet I'm with trends the in job saw construction we approximately which region favorable and NOI is to the significant continues office the by square also growth the pre-leased. between of over with Bellevue, X majority pleased Northwest, Seattle quarter. X% This of in

currently largest job alone house Amazon is for a full-time which in over Seattle. maintain region, XX,XXX We openings market. outlook this our positive multifamily

multifamily you currently while NOI in same multifamily up have growing track by perform Ireland, our to continues driven the when undersupplied, to property sector update NOI. development expansion square an European Ireland that remains will and our market is similar see largest commercial feet the XXX,XXX approximately X%. Mary In under on units technology companies. moment, development, to X,XXX with we to Finally, a become market. also We add The well, that provide the continue on under portfolio you Seattle fundamentally is large by

with of portfolio commercial growth NOI property portfolio. Turning our of our a a office increasing revenue as well to in quarter assets the and as portfolio largest office X% by had strength X% of good represent Irish components, California basis, Southern our same driven continued growth we X.X% occupancy which by on in

Europe. XXXX. say Finally, million discussed compared Shelbourne meaningful pickup the total, quarterly Shelbourne at The that Hotel we our other call, renovations finished lobby we grew across hotel last that The in being of hotels Hotel our on the by I'm In pleased NOI of saw two to QX April. on were and to a $X

Ireland U.K. our from wholly-owned with portfolio an million ended and from estimated assets. the the In U.S. from $XXX quarter of XX% coming NOI annual the comes primarily XX% XX% NOI with estate of and Western our total, real Europe, in

our office accounts XX%. of with and and of portfolio ended occupancy portfolio for XX% the multifamily Our quarter

our strategic investments in asset and on other the returns X, sale recycling global that executing at X, our Number program, Now, recycling capital review producing our level; to investment our the believe growth and will NOI over number three strategic number are into key we capital deliver growing initiatives like property X, I'd outsized management where we long-term. growing our business; and opportunities. the

number our growing are NOI So on starting CapEx U.S., focus we with continue value-add projects, in aimed the organically. strategic at to X, completing which

Fe Santa example, renovations. For leasing other interior in enhanced completed and community a the in Salt Lake tenant center well quarter, we amenities, outdoor center, as a apartment completing fitness new at as XXX-unit

in Our by strategy here XX% NOI revenue X% and of resulted year. growing QX last growing to by compared

as City, of reduce Meadows, and also implementing are the Alpine a At as water amenities the initiatives XX%. which leasing XXX-unit well at the aimed apartment in Lake Salt center community recently to we property, by green many usage renovated other

total, of seeing our unit business another are of U.S. grow to So since property XXXX. acquiring team completed multifamily our in multifamily the year-to-date total ahead In far, quarter, plan the renovations XXX we XXX. in NOI QX approximately bringing

to costs. over X,XXX On the is to next return an XX we earning are XX% months. goal X,XXX to renovate XX Our to units on a average, units another XX%

also up feet NOI X.X our multifamily and at lease completing recurring of commercial include the rate and/or end and quarter will to our Kona projects, million affordable through development We initiatives Village which square property units, add X,XXX market resort.

XX U.K. assets NOI Vintage and by stabilized X,XXX over U.S., current engaged approximately roughly our management adding of the we months. venture, the the add housing. development During to we U.S., the in market with annual to annualized the once Based quarter, next estimated units XXXX, million joint million end $XXX have Park expect conditions, development here and on two vintage assets to which these in $X we of XX and and NOI. senior in the XX% through Housing In of our under complete being Leavesden stabilize delivered is the in affordable

another year complete later expect of by We end and to stabilize XXX this X,XXX almost XXXX. the units

KW. expected on in annual track These projects bring credits venture to cash We remain million years will sale with $XX tax from grow minimal XX,XXX required to KW over this of cash of $X NOI. and next an few units the million estimated joint from the

Dublin, Lastly, continues yields. XX% to This is market our that we leverage and pipeline to current of higher of average our are depth in and significantly on development relationships undersupplied achieved be basis are market yields XXX development points scale roughly than able to Ireland.

over turn Ricks. the like Mary? Mary I'd now to to call

Mary Ricks

Thanks, Bill.

We're almost the $XXX European on portfolio stabilized strong The XX initiatives, across at basis development progress at across of quarter. and European NOI, occupancy deploying global making CapEx points estimated the annual the or generates commercial assets our the QX, end management asset including XX% with excellent up million XX% our previous stabilizing projects. of

works Strong contributed occupancy in NOI. leasing to online million Leavesden in their Capital improved global and the of Dublin, Dock at Merlin in annual to Park the at fashion additional ASOS of estimated completion following $X the and Watford Manchester retailer Park

to now the income As beginning refurbishment against Bill displaced its last continues perform the mentioned, stream. to quarter The and peer set. completed is come back well on Shelbourne hotel

feet, over new beer occupiers. our NOI to retail contributor called was and with the top quarter. Dock beverage food with signed craft covering occupying in a restaurant square three a leases included We terrace Quarterdeck. Capital significant bar flagship and uplift the the XX,XXX operator This

a signed the gourmet units, for continue JPMorgan the amenity-rich, artisanal seeing Capital will strong multifamily offering, rental is all food tenants which indeed Dublin premier, this later multifamily offering we're grocer the believe year. We and Dock in and also joining at XXX today. help We these market demand premium

two the XX.X% we the Assets our AXA the remaining JV partner stake and quarter, in project. IM with the increased existing in XX%, investors from Real acquiring from Ireland During other Dock Capital to in XX%

projects we for the entire our campus. Also, to City projects. Almost multifamily deliver high multifamily Quay, previously and recently Shortly basis, development at which our feet which growth which the was solid Kildare to of adjacent the all Block On XXX and a Cross, started Cooper's is units. is for X, KW the to Hanover two combined after will office make Street, Europe Capital quarter, market progress to of in we remains was full XXX,XXX manager is referred Shelbourne. and permission Dock asset square in planning construction adjacent all element a XXXX. granted on these total Dublin will in continue the

square QX expect North permission Dublin's feet space development We XXX,XXX we Class office Docks. look next submit in thriving as of to signature the campus A to planning for for create

will outperform by in QX of previous lower position economies and multifamily Ireland Quay Dublin XXX X, the Phase other is Ireland's units created deliver as remain year. at to attractive fastest in to end year success. of growing basis Ireland's XXX continue XXX to total in one Clancy. This supported key units QX the Europe. where for be on X remain Clancy the at jobs bring continue with its employers we second Unemployment as Our markets of was part other development XX,XXX fundamentals rate to the X.X%, alone, next half of track than points the attributes

with feet who and have year. square seen feet letting further the celebrated in in world its largest last third population XX and of almost year olds XX last year. of likes year workforce one this Google, a completed youngest year in the the the that post-secondary Ballsbridge, XX% in educated in multinational leased expand with hiring to Ireland Facebook of Dublin Europe, in workforce to of third them which with XX XX a X,XXX biggest no this With coincidence by for It under will the having the is companies qualification XXX,XXX their XXXX We've the year of EU. Sandyford workforce a XXth operations X,XXX to for They had square of compared have over XXX,XXX population yet. their XX% a allow a of years. most is the

of the bode And commitment sectors the top the Ireland to for financials remains of development top Docks. XX taking and the Ireland top to IT. was and has square XX XX the North other rest XXX,XXX companies the medtech, reservations of attractive been in world's This and XX XX top companies. of rated the key software has across very pharma of monster feet deal XX top services year. Office of pharma the nine companies, companies, medtech the financial take-up well Salesforce

the X.X balanced XX% levels, million currently XX-year levels and in square and Over strong of half the The well market of X.X between million excess pre-leased. XXXX new foot, already square with average, attractive feet delivered take-up leased. already to construction are is XXXX of under almost office offices remains reservation

ownership XXX,XXX XX% undersupply is for Dublin's from level city compared increasing with market a in multifamily leasing multifamily is are There to in that of This new a a year-over-year for good demand witnessing is strong significant renting pronounced services. growth tenure resident of and XX% in XXXX. shift XX% units. XXX,XXX currently remains of and to by units which renting. amenities premium stock, the quality market demand build, strong and apartments market, And households all growing is Dublin center of underpinned to

much to needed Our leader a in Dublin. delivering in build-to-rent apartments aim be is

already over our medium-term pipeline to X,XXX including firmly sites portfolio units. remain growing units, own we future current we near multifamily hit track portfolio on the of to With our to X,XXX on at goal

full be full to developments Park, XXXX. come refurbishment, the refurb Park In our first building. for there half in works the the and building due the largest are at complete demand. year progressing completed include with excited occupier vacancies a and Watford, entire Stockley to The through in way in now the of fully back-to-frame which U.K., Other the at Southeast to which we quarter we market Southeast Link continues our the significant is these having property of this in Leavesden rollout to X/X where strategic is Maidenhead the ASOS asset, office later stabilized, rented where during We're ASOS will we're market

During Ditton partners equity closed reposition Southeast links asset as £XX.X Heathrow beautifully and in and on XXX-acre of to spectacular Airport A campus London. with of excellent is a Class excited Ditton square a high-quality this close right-off Park, building. setting acquisition in million. for We're to provides KW it offices quarter, XXX,XXX the super feet unique landscaped well-located the and a about Central office the its the MX to opportunity a Park

we're fund business. key our great growing business. second our raise Assets. progress account global multifamily joint the to is XX:XX and fee Our Real AXA capital In on Irish our Europe, continue we making our both U.S., through with venture IM separate initiative commingled bearing fee In

excellent totals prospects. built our assets, In over with AXA growth with units in with platform total, billion $X.X nine X,XXX across properties

units We have already opportunities. investment at and various stages to sites look of we at ownership development in X,XXX continue approximately on attractive our

capital acquiring insurance have Globally, with of the year. last we partners, investments almost two partners. with billion million company the over completed we would company globally, purchases in our asset bearing are in quarter-end, that to further second increase half Post which $XXX in approximately committed fee we've years, the $X insurance

And with to to turn I'd back call like Bill. the over that,

Bill McMorrow

Thanks, Mary.

that that of assets the an beginning have sale area opportunities. growth fit strategy higher XX% includes back XXXX, focus where Since IRR disposing is are third our assets approximately quality XX investment core and not recycling proceeds program, The asset the we've of our do not generated other strategies to KW. of our which long-term or into sold assets,

the we share During sold which $XXX assets, quarter, million our of was, $XX million.

fund, a Our commingled IRR $XXX to XX%. our Seattle greater a KBW. for area XX% dispositions resulted IRR generating the in In QX, portfolio V, of sold office the million, Fund three gross of in U.S. buildings

million retail $XX non-core and We also the U.S. sold in of both U.K. the assets

IRR was, assets, the of sales sold For million KW. have year, of share These we our generated which $XXX have an $XXX XX% million. to of

residential assets. sales excluding or hotel, been have in retail, from asset our XXXX, far XX% funds, So, sales of either our commingled

we capital either commingled to were ownership follows; existing we In to our our investment XX% which allocated X% or CapEx; plan. an completed QX, in to and XX% through increased stock as our where a new investments, funds asset; $XXX repurchase in million

allocated year, $XXX to repurchases. XX% investments the we CapEx, For million XX% to to and have a X% with new share

half million in the year. of $XXX of investment acquisitions to of we of $XXX including Looking transactions for over an in our of expect million $XXX pipeline, and from half to sale and $XXX million we levels program year KW dispositions. currently the expect second increase cash have the asset the generate of million transaction ahead, excess our total, in In of second in

cash balance of million under and availability Turning $XXX We with $XXX sheet. credit. the quarter million line of our to of ended the

limited rate only end debt weighted with Our the of our interest X% X.X% the and debt of we a has average have in of by maturities near-term XXXX. maturing

I'm and summary, today. with team how portfolio in our and positioned So, results pleased our management are

to X, Ireland Number investment of grow feed and seeing initiatives, our area our both as Kennedy-Wilson. I'd And focus model we to management are by in like development States, three aimed fundamentals, takeaways to portfolio, high-quality, our strategic and which continue flow our business are the business estate remains strong team long-term are recurring a stabilized growing third-party X, with KW. real organically and creation growing Seattle grow the through aligned Number about a includes key growth Dublin, leave Mountain with fees through the market. you to today execution a value pipeline initiatives. ongoing and with the and key NOI underpinned number our greater on X, delivering especially growth highly shareholders cash markets

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

Operator

we our JMP from question Mitch first take Instructions] [Operator Germain will Securities. And now with

Mitch Germain

you. labor, impacting your any hearing yields? side development the about steel, caution costs, anything We're Thank some growing you in provided or that's pressure

Bill McMorrow

markets you we most Mitch, of a back me that Ireland, Yes, not second. thanks. up we're our in Well, When in. the think about building really let activity. focused

First inside Peter of run great the And we States in have both by Eadie. one McKenna, those in have Mike KW; United Ireland one, separate and management depth by construction of teams all, two in we teams. run

done I Capital scale which and demonstrated Dock deliver And witnessed the our years and in on by has project the think project, largest to is single many on developed over budget very team phase time Ireland. the large as projects now, ever ability been

complete. to there a labor And so, what we all of impacted in markets, over construction shortage process But, really our has literally hasn't side mean, not on world. be the tended had it because or hearing, timing. I the any cost of skilled or course, surprises we are to on going haven't there's cost construction certain budgeting

Mitch Germain

that you million the we might it KW be How you. to part When year. characterize sector about the in regards back to included? I of XXX talked should sales, what we Got with about think said asset

Bill McMorrow

A across said going I contracts two It's we're to asset third mean, [ph] selling, in just on of $XX differential million, we to Marin assets our those in selling. the County we're those quality of be for were differential proceeds stabilized of points. way, -- cash the In a XXX to under now a is to quality assets, we're X% earnings us, multifamily the that are release, [XX.XX] the contract which assets trading business we assets apartment in be those that sales most binding cap words, to the footnote three but sectors. that the multifamily very rates the by high million and consider basis a sold And $XX that cap for into yield X%. of have selling cap generate office what There a I at very now. the park we're is under in are the market. we're it's assets going almost we're to But, rate buying rates one going asset and three Park other generate the in

MitchGermain

you the question I Great. or you front. I'm a account fund, companies with. the are Last you on that that curious relationships couple different raising and working relationships separate with seeing you're are of that the from products fund expanding? are guess, insurance commingled the any evolving, mentioned existing new Mary, are seeing

Mary Ricks

on to on you insurance see be side, continue account in in we bit big. Europe little company separate that grow are you success AXA then, another both. and both then, A fund the side, as something good And I of with Yes. we're know, Ireland. really working And with could U.S. us mean, the commingled having on

existing. little as new our bit as it's both, a relationships, well So, of

Mitch Germain

you. Thank

Operator

Paolone with question I will from JPMorgan. Tony our now next take

Tony Paolone

it's on capital here environment you're Thank up deal you're any your how what the change much hurdles been and in you. transaction underwriting in How those is market the just My it potential the seems. bring either seeing into return a picking the and flow versus question deals? of or change you first on

Bill McMorrow

on previous Well, I've I said think Tony. calls,

over in through sense But opportunities but this which here look are now. years you you in you do, efficient move teams, that look more $XX we good We've and did And think have is ever is you once anybody, more have and transactions cost at 'XX, than XX they XXXX with really to no to of capital when really billion acquired existing whole today I of be to on you than last sieve because you've assets, to acquisition to back both over assets you today find to Europe. very a around. you obviously do. got at and something surprise capital have, we have speed, lot able think markets the there makes and

due great hardly about company the that we of And outsource to don't is really the diligence, our anything I other other think people. thing all

all And company. or whether team of due diligence construction so, is housed inside teams, that the management it's our

to And something very find so buy. it when allows us we nimble to be we that like

transactional reputation the the years, company XX two, the of for good is the here think, been the really company in over, reputation market. I of over whole I've

people And having transaction. us like so, as on a their counterparty

think So, the what today opportunities earlier as I cycle in competitive. success too, don't still capital the point third-party said front, industry. particularly different. it's always having insurance raising But, very and are we're you're Mary is in we very, the on in good and I no finding care

capital sense I matter And would and say. and things the finding that so, we've make to it's just do of really got a

I key thing really that doing, part last very today, we're the is is your over today we've to we're high to as answer that very, question development next going of or very here a returns. say, two would at to which because the the be build completed years, Then, our length work strategy is able said three at

Dock an cap rate. Capital project The at stabilized X%

that's certainly cap the think but transaction points asset you an to a XXX of quality the cap to basis that, so, that's And size XXX that points for trying about that a rate market, basis prognosticate I'm that's market. rate not when above

things this part all doing. of we're it's whole of that combination So,

Tony Paolone

or place property being Mountain primarily opportunities Thank works States, that types you Got it do is you where region, primarily that. numbers multifamily. And it's in best? been multifamily the Are it. the strong a have then, other and is in see for in the there been

Bill McMorrow

things. at looking are We

the I multifamily in in a market. some the think type when we decent there. of State markets, is Pacific in very have Northwest, good have very be Mountain for States, office we course, it's then, And separate Denver, Mountain us and size outside which a accounts, the the assets product will dominant in generally office office of do very, we portfolio

And then, is the properties for was one the Bellevue acquisition United acquiring of that the in office here $XXX States. by office subsequent Matt property quarter-end big and million in a project. And the to that's a responsible in done that's ever largest the we've way,

So, be but opportunities go States I the it where just to really the the the focus back depends to your Mountain on are, assets. is to answer in multifamily specifically on think going question,

Tony Paolone

And the growth. a NOI the regards of market how way doing? is just there Okay. versus that your store Is gauge with you're last to question giving you same to much then, component value-add what

Bill McMorrow

want Matt, them? answer you do to

Matt Windisch

multifamily to some mean, if significantly the peers, we're a number the companies. doing we're obviously, public Sure. outperforming compare of what of you I

clearly is of some think I we're the doing. in terms so, secret And there value-add sauce here

and I'd driven we're the growth say of is the market. related is value-add, probably the So, by doing half to half

Tony Paolone

pipeline the still is portfolio activity that do deep? in value-add In to of pretty

Matt Windisch

getting properties. some years, on initiatives next the units value-add the multifamily here several looking going particularly the the few properties over still months of we have we're bought We're XX to XX past on side. the those to just We at especially on months. is It turn thousand in

still a across portfolio. of pipeline So, the value-add big is there

Tony Paolone

you. Thank Okay.

Operator

Evercore. now We will a from McGrath Instructions] take question with Sheila [Operator

Sheila McGrath

Hi. Yes. Good morning.

wondering, added any Collection, things Shelbourne, yet in with is Autograph could operational in and the you of if the terms us now I'm are that seeing are the On trending fully you July, benefit update June give asset how rate? the and to hotel an

Bill McMorrow

Mary, with go let that one. you So, I'll

Mary Ricks

in just Hi, displacement Sure. we on which -- as Sheila. you some to Yes, days the work had as in really M&A decrease the was in refurbishment to systems. mid-July. two full completed due well close also the then, so the for hotel lobby, And the NOI mentioned April mainly ballroom,

just couple So, now looks of I ago. the that amazing, Bill all completed is were a that and and weeks hotel there

high-end up about leisure X,XXX are We are up XX% room on the this The back. last business and a come seeing time group they're well inquiries the high-end nights. group year. then, about over And leisure as bookings,

mean, both segments And well I think come I set. we're seeing good we have half. say we're operating that would come So, a we're seeing back its the nicely. back going and against is it peer Yes, second to hotel

Sheila McGrath

Okay. That's with Bill And on yield great. at then, the sticking Dock I Capital guess mentioned X%. Ireland.

So, your X% look if plus. across of you development, it is most like

wondering sale cap in Just any we been there has give is you currently market, that if us some comparing insight Dublin could if how comparable transactions spread see recent prevailing the so can rates? to

Mary Ricks

holding kind Class yields are at of office about Dublin It's Yes. X%. A

show significant There when what So, trades you about lot a was spread. today. are yields Dock think will that we that of built that, Cap are a to kind of where

below yields On X.XX%. are the seeing around X%. averaging PRS side, we're right trend They

that multifamily basis trading. between everything Ireland, are XXX significant somewhere where basis got So, it's spread XXX to we're things in a or whether to commercial, building and we've point point

Sheila McGrath

the portfolio you if for sold in level in States, multifamily million, Okay, talk the maybe $XXX portfolio the about could and over United the some insight just on Western great then, interest And you cap the rate?

Bill McMorrow

Occasionally, and Seattle. as as bidders the Seattle, I've the downtown Greater were ever them on in that the is but were appetite one they market of was them in of then two weren't area, there they Sacramento And Seattle the in States in assets And say seen high multifamily multiple of would United all the for Western were I it. assets. three suburban

these now driven multifamily add portfolio. only of it, And there then, to people by their it's Sheila, today. university are also looking is growth of that's that the systems it not significant But, much So, western producing United younger and part States so people. X% to below of the no in down the is by shortage great all the the on job of going driven XX-year

earlier it too, income very final with pleased opportunity with we're this of assets. process gave really what to a a upgrade that happened. tax-deferred of outcome three basis on we're I quality upgrade the the of these the was all said on the assets. And So, us an the competitive And pleased fact also as and

say calls around upgrading the over four and to thing the over get with everybody lot do the hardest or hardest in last of these three Mary always level the is been we able we've the incredible I to own. of I quality our thing of to phone properties, that assets years a the describe

what to contributions consider they and so properties And those quality made, the three be I'm belittling the not but a asset. much that I long-term of trading into higher sale we're

Sheila McGrath

That's question. Is that in Okay. that detail the there could year-over-year then, down great. last looked that give And good? was G&A on you us any quarter.

Bill McMorrow

have only we had reduced our months not year our the -- XX some conscious We've base look Meyers a a with when last back to sale last effort X payroll we've months. down this that on over payroll numbers, this you by stabilize which Well, $XX almost done. million were and to months things other over XX

and reduce about it million to the just but we've that part on from Group Meyers from came come G&A year-to-date And our costs. by efforts front, the of to the of $X.X that sale of reduced part

really speaking so, like if not the And generally you're to payroll. a We're somebody, we're company front today, replacement personnel at significantly on position. what hiring it's seeing and the adding our

growing our all business to the people bandwidth with we of obviously categories. globally, a within have so, either doing And of lot XXX that without those of we're existing cost grow things the

Sheila McGrath

you. Thank Okay.

Operator

no for turn call back the With like Bill remarks. final to I'd to McMorrow questions, more

Bill McMorrow

great Thanks And you and always always very it's have And or any as are available Mary for answer myself joining Daven I, a questions. everybody Matt, Thank call I or Justin say, much. today. day. we to the whether or

Operator

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

Kennedy-Wilson (KW) 3 Aug 192019 Q2 Earnings call transcript