KW - Earnings call transcript Q3 2021 | Kennedy-Wilson Holdings, Inc.

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Operator

Good morning and welcome to the Kennedy-Wilson Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Daven Bhavsar. Please go ahead.

Daven Bhavsar

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

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

Bill McMorrow

Thanks, adjusted the compared year. and XXXX. million of $XXX of the $XXX results EBITDA Adjusted today. which the X compared am everybody, in you to of we first pleased and Daven, the quarter months very totaled third our to EBITDA – XXXX, call increased record thus first XXXX with strong over have saw posted I QX for for much EBITDA X and results, good very morning, for joining months thank XXX% million the far

capital. had completing growing our on year growing a this very of two to in-place our transactions, $X.X billion. progress our investment billion initiatives, and quarter, tremendous bringing year-to-date $X.X key made have We active annual NOI We total fee-bearing our

by the grown XXXX billion, $XX.X $XX.X from of management, a in end billion assets under at to record has XXXX. XX% Our

which impressive the at increasing I’d to Investor for the metrics with our across very would rental a the close year by a deployment strong in start trillions that rates strong we to result remained and the to expect in our Institutional of transactions globally have market, end KW. of AUM We with and like compression new of year, us. by that high-quality U.S. demand what sound with record further estate capital real providing markets, of has pipeline fundamentals of value further of some growth, to increasing portfolio. from we memory increases fastest improve our in to healthy, rate continued in continue transaction remain for QX real for rents high, on of according in one search operating perspective last seeing rent recent real year’s for in capital remains all continue U.S. the volumes demand Capital estate In as continue quarter. apartment risk-adjusted to volumes XXX% Real returns. dollars to the saw resulted regions. we and cap housing our XXXX for Analytics. levels, estate are Global increase improve our

once Mountain portfolio, by apartment units, West XX,XXX almost attractive very our with is trends relative outperformed again, Our which affordability. and region, largest migration driven

of third Denver. located We impact have we X suburban July are XX, occupancy months removed at in the asset our travel our owned and on reopened And July saw with XX outstanding these off, we these XXX by Pacific and Seattle, to months. in performance Dublin in growth California essentially that UK XXX all Dublin, total a and outsized wholly as to value-add return the saw and drive suburban portfolio. Strong these X moratoriums over the resulted acquired the XX.X saw our properties. were our occupancy. Northwest improvements multifamily On to for that in to over growing began multifamily portfolio totaling in XX, key which expect located in areas million. office has We assets the positive is of all look portfolio, basis a significant and in leasing over Europe, quarter The demand our to pandemic-related of implementing gradual also in a will next on COVID communities, in acquisitions in ability In consistently rent assets and $XXX accelerate our QX shown burn we points meaningful X programs forward units we Dublin next restrictions. returns. all we expect UK

record Our yields to expect at well rates. multifamily under end, cap market above X,XXX development, units almost grew including portfolio we quarter complete current to a globally XX,XXX at units which

track portfolio. to impressive our count on by will end. XX,XXX the of increase European logistics year to global speak our on Mary We’re unit growth later

and billion, of grew $X.X to year which Our annualizes yesterday our transactions in XX% dividend, pleased we a to authorized QX that year, $XXX an capital Directors estimated increase to representing I’m million increase now fee-bearing annual the million, quarterly of Board to per our our growth date. X% share. increased $X.XX $XX announce also NOI to a to

positioned completion our drivers with I the portfolio, projects. the platform, multifamily markets, development investment reopening our European our of of of management are growth and ahead, Looking the business believe will our be our key of – the well

the these results. highlight discuss initiatives in to Enbody, over CFO, we more our detail, I’d QX our Justin like Before call to financial to pass

Justin Enbody

the million net $X.XX in to In grew million quarter, the adjusted a Thanks, GAAP $XXX to income $XX to of of of diluted in EBITDA QX million compared to quarter $XXX Bill. loss share, compared we year. QX, year. And grew last $XX EPS in $X.XX to XXXX. compared million, in had per last Adjusted

$XXX fees strong further cap million, and portfolio, adjusted had results and which to the adjusted the and $XXX X we funds accrued per unconsolidated rate the asset GAAP of driven we’ve as of continue Bill by year. strong In co-investment quarter. our This growth million the of in first record in For compression. $XX $X.XX mentioned, million, $XX includes year, EPS share, million values, net EBITDA led to performance representing joint income our ventures, for performance NOI of and of appreciating gains see months

For $X in including adjusted were total quarter, from QX last promotes, up million year. of the million, fees $XX

Turning our pay in balance as in the sheet, million $XXX as August, of to bonds proceeds XXXX, unsecured credit, maturing in our our we which bonds used The issued fully was XXXX. line $XXX October. due well in remaining of KWE million to completed of were off

revolving until unsecured We have significantly no with XXXX nothing our credit outstanding schedule, facility. our maturities improved on debt and $XXX maturity million

average rate of and which years, since beginning a forma improved years pro a maturity of weighted X.X% the has average the has interest debt year. Our X.X X.X by of

of the I’d XX%, have to outstanding our a of per approximately million on shareholders now authorization of We portfolio. our the the an beginning to count. Since million of $XXX approximately share, with remaining, share we of repurchasing stock October. was in During at bought to buyback or our shares the quarter, XXXX, form we’ve turn dividends now discuss to $XXX $XX.XX. includes million, like still Matt call back Windisch $X.XX portion And over average that, million share utilized price which or which multifamily million repurchases, returned $XX or $XXX XX.X, in of

Matt Windisch

Thanks, Justin.

our selection on asset Our market management and our global style. hands multifamily due portfolio outperform, to continues to

to Mountain migrate in West upside rents. XX%. migration outsized NOI of improving our our there month, a per and seek West are to continue higher experiencing $X,XXX and and demand, portfolio, are assets market states. which conditions, people lower in delinquencies Positive remains trends of Mountain tax affordability by We by increasing portfolio, same-property continue strong as revenues grew and particular out think quality average Our grow create for saw rents higher XX% life rent, higher where and

portfolio. has are leasing leases We see been our to began we our Rent to U.S. XX% starting XXXX, for to assets. from average new XX% were across QX saw demand. QX Northwest renter spreads reopen, improving concessions trends on a down a in our and U.S. positive California Offices of compared also the Pacific in record and which

currently, as people apartment to continue X% growth with portfolio in pre-pandemic for NOI Similarly, our and market portfolio same-store revenues And begin factors grew This and year, XX% QX represents at This in to an best occupancy versus X% XXXX. growth continue take of to stabilized Dublin in are pre-pandemic XX% work this QX. Dublin. relief last lease set returning of XXXX returning NOI our multifamily in X% growth Capital also is our to is beyond. levels Overall with and be to of are resulted across of we now measures U.S. the rent to We levels. we Quay QX. average to an the demand, these advantage strong U.S. of NOI up leased in that revenue tenants X on city. our track in of impressive strong available. above of and see Clancy portfolio, Dock combination growth rate now The quarter believe by is stabilized and our led the our of from being robust In-place QX portfolio loss Sequentially, in rents XX%, X%. years. And by

Data. Stripe, employers and to such In in addition tech have to years, expand companies mega-cap in presence other tech for their Dublin as been large looking companies the that ServiceNow, are many high-growth First Dublin, TikTok,

market, apartment a to long-term the by continue We in prospects young driven growing of the population. Irish believe and

are a to a buy. is in there with with of their more companies European large workforce rent Additionally, than headquarters that Dublin, number likely multinational

our portfolio management investment call our President, office I’d to discuss Now and Ricks, to like the business. to over our turn Mary

Mary Ricks

Great. Thanks, Matt.

construction tours, is saw from and With an feet modern, assets, new transactions, transactions begin in October, improvements a building. operational larger XX% office XX,XXX rents by leases, grow of by Turning and firm high-growth important and top thematic to for strong benefits rent portfolio, include offices, are are by our the retention, approximately XXX,XXX that to which staff we well rent focus compared XX% cycles. tenants improve square excess will A requests under XX% tenants environment, of for in-place affordability, credentials. largest amenity-rich taking in and large Palace X%. we toward which in in free including as QX represents our Buckingham market for in XX% the to XX% of top ESG continues the by to burn-off foot, to in requirements, tech recent Road bad deliver tenants These business QX employee same-property XXX growing the rents quarter. results including seeing are XXX% the logistics is of on apartment portfolio our grow sectors, deals were and £XX in both essential in technology. corporate with return assets, factor office of firms future we XX% at tenants and commute outdoor of amenities. of of above approach the illustrating to number our make willing are collections, office to London, transacted office on Thematically, we XXXX. and positions square such lease growth These of growing example being of driven design at the of buildings and the including where low-rise square workplace, Major times, offer, pre-COVID income even from and as our to Quality occupancy focus total lower this our QX, suburban you shorter in the significantly, as decisions European executed. tenants space. suburban When great NOI of the overall revenue wellness and debt, be one portfolio, in life an drawn X% XX% feet represented and active media, continue NOI right sciences, advantage per believe on the

X.X year-to-date in We see approximately out quarter, and feet square properties. play our in X.X We portfolio, this years. of low our NOI with XX% feet, to total with bringing of continue the completed WALT own leasing mid-rise the a million from square of to XXX,XXX

with in square leasing heading QX feet working another and XXX,XXX on leasing XXX,XXX good that year. out, [indiscernible] momentum remains pipeline feet next closing actively into Our far giving in we’re completed square thus strong, us of

over quarter, we to investment $X.X growing management our beginning the fee-bearing has the strong This to capital increased our Turning now to of in growth platform, see XXXX. since billion. with XXX% continued

first charge loans total of fast industrial $XXX in platform Our we global our we million including credit the commitment growing £XXX announced few new lead completed July, million to in $X a loan investments, continued focused global European to billion. large on In loans, Europe QX. commitments QX, In portfolios. a bringing on

$X.X million with maturity with loan in able been loans platform average future outstanding, to attract million assets $XXX with to and to $XX commitments. Our of borrowers billion We’ve an weighted years. high-quality in institutional-quality unfunded our average platform, XX% of debt X grew debt by size

We see compress Occupational an in to rent sector. yields strong logistics of the accelerating European driven to continued across X.X%, to growth. in Europe, the continue vacancy a macroeconomic demand environment and to UK all-time due has low

the making as to penetration efficient online up sales thesis, an with from sales the of start thesis the accelerated we properties retail UK. products to to proximity demand, platform their companies last-mile the Our was this when in manner. to XX% total for end customer have has as transit close sales online COVID get launched logistic would in continues grow, in they centers that allow strong

both and including $X.X We across and under strategic billion offer, growing platform billion commitments KW’s in debt various in our grown Our industrial value approximately with our fourth has portfolio business, total, partners. our of of assets quarter our XX approximately management in further continued future today investment to and share has, our $X.X XX%. the look has gross which forward portfolio rapidly, at expansion assets, platform from a logistics

Another completion progress where lease-up we and the for of of development important will make growth our to projects, throughout continued be pandemic. the area KW

and $X.X the yield expect assets with to credentials, stabilized, cost estimated KW, at environmental our being Our completed which an sustainability million strong NOI Once improvements billion of we are X%. initial developments, totaling incremental of these cost, tenant of delivered wellness approximately represents are focus. $XXX an and at annual center with on

the respectively. track and and on in to Quay that We heart expected XXX,XXX to are remain in nearing Dublin, which of completion QX, Street, Hannover total square complete of Kildare properties two are are and office in in and on about We partnership that projects feet with complete new public-private a Channel XXXX, the construction majority extremely budget. a of Islands. project XXXX month, we announced our Last time on we State Cal QX excited

through nature venture, develop are XXXX. have units affordable given project We our California. townhomes expertise The Comstock of community units, XXX XXX going affordable Homes. units. XXX-unit wholly owned for-sale acquired This a built a our as XXX XXX to master-planned sold will in vintage market-rate joint part and Camarillo, residential units natural project both of sits was for by to a developing owned development we A wholly fit multifamily in in adjacent community, and KW, this which market-rate housing broad

ground complete With to breaking XXXX forward Camarillo in aiming it month. are construction like We and look to Bill. I’d this to pass back that, later in to

Bill McMorrow

Thanks, Mary.

see to cash we growth can and drive have of ways you combination flow As earnings a further at Kennedy-Wilson. that

construction. by over the our the mentioned stabilized driven rate As the to our we years, a NOI last strong on organic path have of at I acquisitions, of NOI a clear to grow year XX% and XX% completion new next call, growth, X the

to these per next our fees The our XX% resulting the X our in lead years. under growth factors plan fee-bearing significant also to by combination per share XX% year both to grow assets of over management. We asset net and value should and capital

As to optimistic of I in business ability to we number ahead XXXX, very look continue for our a expanding reasons. am our

we’ve strongest have decade. and First, transaction business and we market, financing economies perhaps conditions seen as rebounded very have last the the a healthy reopen, in

grew in the We creatively establish their capitalized, who a with over capital structure global asset desire Second, last allocate to XX keen a either platforms relationship partners months, with of capital or the can entire and range we wide liquid, strategic extremely now well classes. have Kennedy-Wilson. across investment new expand

I’m and I but been team has investment only the made better. global of internally the relationships, remains our am never the pleased both communication intact, QX, very Finally, externally our long-term XXXX. with team global of KW. reminded course over has progress our not in also to and importance of

has markets, combined been category, is located product set in I exceptional an up internal the fact, our ever shareholders, our team global mentioned, in properties and high-quality together to biased, with it’s excellent decades with we I’d growing very any been. the as best that, diversified for right communication, up have KW I’m partners that Although our working and team, Kennedy-Wilson. I’d for and long-term to our And growth. has tremendous KW thank to continued support like questions. their open Daven, for board, like of our it This

Operator

Please, [Operator go ahead. question Instructions] first The JPMorgan. of Anthony from be Paolone will

Anthony Paolone

mean, of does you what from are inflation, real given got is Great. for long kind a for question geography, that view, of how about type, doing time, estate point of do level I Thank property suggest or Bill. you. thinking experience first this a you’ve etcetera? strategy, a deep you My

Bill McMorrow

bosses increasing really contractors. think rapid it’s construction call heard majority and Tony. years growth through of area. with own pace, Mary, rents it Yes. doing really it far what be that and primarily the very X our I when many any a development in you’ve which in about exposure. And we in that ago, about way made general we’d building of be our projects at GMP to you the fixed-price as mean, decision rates. the terms is we what the X a And to you our it, top I to Matt contracts, Well, handled there or going were contract line think inflation relates vast we And from that, – do I when of ahead really really, a is think is started

the demonstrated people, bring we Ireland, teams over period between relates and total range, time really and capacity XX would think in probably that to as two close on And the is is to in doing issue the it on budget, guaranteed at things now the just And raw we’re on of in in terms not the about doing get a then, construction that price a that got XX% haven’t properties on in what’s our lumber, this only U.S. to. of to getting we’ve really chain we in discussion construction I it into any have up max that now comes furniture And we’re to CapEx so, but of so need we long I’m materials the steel, question time happening whole the terms that we’re impact supply doing our projects, the to say, concerned to very has really And only whatever inflation also, ability really the other everything I not which the in seen materials, the properties. value-add KW. it.

had least Los the States. but moving we one issue supply trucked. to the at it’s just United We whether here, at of getting them Angeles, all ships it things see issue kind here, little the to getting as And really, off happen have are impact. largest We It’s not shipped. cargo really and situation. And that that relates temporary we of very sit – bellwether any in chain ports a and the the in not of is as

And will of all less certainly, year, think relevant. it think middle be And so, by hire next whole more They we out. think, trucking that figure their the They people. I will the trucks. will deploy will, this I discussion companies see I

looking we’re kind how everything. at So that’s of

Anthony Paolone

my property liquidity other in other And then, experience the to given other outside just just you’ve in spending past, returns Okay, go and types Are Thank places? need and multifamily you is, other and there in time areas, of office. more find in out lodging you. any it. question got got

Bill McMorrow

biggest grow. class, pointed to it, the the Well, that we multifamily Mary – the want business about of one really, really today, also best is I as but that’s space. our industrial to asset like we that think very and real really continue the We think our part that’s clearly, think you when out, estate much,

XX, – and occupancy, the that particularly see want Spain and though, option United to we’re our years. can actually but Europe, we to our in to United lease we office the a an find do us Europe, cases, attractive get here particularly just lease Ireland in because nothing capital grow. the United Kingdom Kingdom, an terms business generally And terms here to the XX so, degree, as States, of range, properties has flow which The that like a is of both in terms are don’t it in for markets secondary of the Where there every it business cash in X-year in with the because here, present in in some in, XX, X out do the month. to because attractive be and we

means got of And X you’ve those you’re periods which time, so, long years. putting every additional capital X not into also income for certainty buildings or

those kind asset really So very classes. we’re very, of focused on three

Anthony Paolone

Great, thank you.

Operator

Derek The with Bank. next go question Please comes ahead. from Johnston Deutsche

Derek Johnston

focusing your everybody. So does projects been Good to capital, value-add opportunity a pandemic. morning. during cap pretty if focus wanted Wondering multifamily they I is just there value-add. today’s where of the maybe remain book? helpful? be believe rates? and you’re spend were I Thanks. would slowed the today use reignited solid elaboration as How on compressed the clearly, do just IRR or and value-add Hi, any given substantial have multifamily the some in halted

Bill McMorrow

points. that you. we that were local Good area. in that March clear, going to or particular a – we stop made just we mandated be of spending to jurisdiction, our by decision were thank on Yes, very in not entities capital Derek, any that construction projects, The the conscious XXXX government unless were very, development geographic

in was have we able our we slowdowns But all. else say, for operated, where through we true I that down sites couple to that, shut the hold of at really, all delays, And construction. construction months. only where of modest place were any would we Ireland, a they we didn’t so time to saw, So everywhere pushed

properties the capital that in time uncertainty people stopped finishing at learned And XXXX. spending, result so, some is given might you’re their time, the other in over existed brand-new of a have I’ve that cases, then where, that

as we’re in I pointed big now, a finished pointed Matt fortunate to now at think that We occupancy. Mary that’s finished out we’re properties. continuing now running out, roll off Boise full and new just So property up

We’re first-class great buildings Ireland finishing interest we’ve two leasing in that really office got in.

as reason But our you key external really going the is ask stop. some of in so, to part there is to as amplify And your long on other I’m to stop business just to not Matt can question. unless the

Matt Windisch

Thanks, Bill. Yes.

continued I we would the to the those, to across at So, the is kind multifamily have Pacific of that so XX% cost say renovations return the certainly, rate renovations. on there are XX% from units of market range additionally, renovated can Northwest, yet, look just that U.S. not the portfolio, XX% in upside if in I flat. were capital we doing say, units. roughly they you West, these and slower when pandemic. were We would the throughout there And California is given the on significant putting Northern we into rents doing

those now And initiatives. of are so some re-implementing we value-add

So, to got and of XX% we portfolio capital invest of the have loss then we XX% a units. can lease, that into combination a the

over runway is So, of portfolio. to grow some think there rents we in years next couple here that good the

Derek Johnston

are active go type seeing you in loans detail No. great. into very funding? XQ you the in was book interested loan comments, The also million. are $XXX and what over at Okay, you of helpful. Both Could pretty some on

Bill McMorrow

have business. the cases will part in of fee-bearing this the largest decades for But transacting time, think in we really over key is And been become many we I I interesting. think are Derek. am I our But that the known to that loan with turn going over there cases. Matt, Yes. people and really some capital, to start it’s probably years, then it

of and – side, to the of also And group, example, to construction so, and that we leverage costs. a team has loans but is other loans, we equity side, part that on – know company of are only multifamily also it the know investing And done where the multifamily costs. he our Matt not are we developers, active on active are number not our We parts know transition values able of since we and type his loans. for the other then, construction and

felt our information in I and parts the And estate so, business, us leverage all markets. are we that, able always various platform. what’s going And gives flow the great in And are say it real of business about I of even anything, is debt the what’s on in more other great information are to terms values we the variety in of business a on thing yes, we going of though, than knowing have markets. in a would

So, of it’s May to give quite start the some in XXXX, want – been to really standing more…? a a remarkable from been But it’s see you do growth. Matt,

Matt Windisch

Yes.

would us operate competitive in, $XX are we so size so we quality doing our the on think that really then, and a just that are I institutional say properties large is I And advantage. average as million, loans. focused high-quality sponsors, a starter, own gives loan very assets that already sit relatively within geographies we

building. one by loan secured that loan to loans industrial. quarter, And the multifamily a did one by was did secured by we give a few property, office then one an we For by a hotel, you loan secured sense, a secured

through hospitality retail. in the for are the look portfolio. investing in to-date, debt we the lower we have it’s the over majority few multifamily equity still investing types. in flexibility But gamut have So, across to not still product and we the But capital in if portfolio, types. equity, entire those just the been years, of a Where, you and invest do like product the it’s office, our down stack past

Derek Johnston

Thanks guys.

Operator

of ISI. [Operator Evercore from Sheila next will Instructions] come The McGrath question

Sheila McGrath

in competition. Northwest wasn’t versus Bill, Pacific if was and markets? advantage a that ago competitive the morning. you your maybe states there Mountain and still could while I the other Yes. describe Mountain that’s in institutional wondering in am investing the Good just landscape states investor case, much

Bill McMorrow

going Yes, takes we our nothing ago. do it Sheila. in streams on a into other it markets. XX decision, years We get but yourself was to diversify a XX established with made years to thanks, new geographies. conscious Well, in to Western wanted or long California, Yes. what time way in probably income and started had any any We

Seattle on, and have cases, Idaho, and and so, markets between in smaller in other Boise, so Springs we Denver And and now – Colorado got Salt City these and and really, Lake some markets. really Albuquerque great footprint a

time. it’s so, It takes easy. not And

statistics are and two so, I Boise, Idaho, I would if top in any greater we the now don’t market, three. but be top in the multifamily And probably not the largest sure, owner five, we the am Seattle have on or

a generally institutional So, it two, markets. takes companies, these deployers capital, go think the is this of although big I big speaking, generalization, smaller to time. And don’t the

competitive. So, Over markets it’s we here, they in have been the Sheila, is KW a got say, been assets other have XX that never at can’t we on And thing business, that multifamily three run decades very in But my that because our times, at advantage ground you if think boots these smaller they always the these I we markets. got, competitive. enough look years. it the as I and for have here big people it’s stress have doing not

the real been related all been, dealt that couple to had these years, so has And of that periods all we have strength over this last of time. The with great been – as that all have our kinds that of pandemic. we different has has issues for the really of teams together fact

and like relationships internally relationship, was when I both that there really is I to the about – I the was I talked but and kind yes, mean competition, of alluding always So, externally. what feel

always to say viewed very, are as good we I market think because that are counterparty we we we in do going in every a very what do. are we

all reasons, we a that I so, to think those for competitive would advantage. like of And have

Sheila McGrath

helpful. compressing meaningfully, curious your with make stock acquisition thoughts That’s on there? priority, in to a your rates – does stock And buyback, that cap then back more Okay. just just particularly multifamily, of thoughts buyback

Bill McMorrow

growing pipeline. to you always any a think allocation Well, like acquisitions, And decision. it’s we like any capital are, company, decisions, I like allocation it’s Yes. stock – whether the business your got whether got have new capital have to make buybacks, development it’s been to we

the think opportunity of dividend as attractive we part that just a look really we at the said way And overall price. even the good. past are. on believe to the you that though particularly was capital is it’s And about of so total I And X been quarter very stock is been stock tells continued where I our think We price known a with feel in whole buyer the we did, yield stock kind I call, months, the into And deploy so, XX still have we that that our October, menu. it in of we the months personally increase the to feel values last it I over buyback. the is the how stock well

Sheila McGrath

in under some Okay, there on affordable DC are capital are programs that housing. allocating to great. affordable then And housing, discussion, more

opportunities? do in think on, end your new could of Just because acquisition market that And wanted California, affordable to avenue thoughts that’s KW? you have another growth you maybe Southern comment that rate for seem on

Matt Windisch

Yes, Sheila.

Washington markets amount markets, where in there markets our have legislation to of aware certain in of cap it to challenging in well so affordable will and number invest but that a availability, would I bond available continue certain bond of the impact the cap is making smaller kind are housing. the of more is say are we for getting right smaller, now. we So, it

to need without into capital our there certainly deploy U.S. is clearly, a have So the the certainly, affordable which to for huge that housing huge help does it affordable a particularly allocation, but and We business, affordable other the housing help. across will in markets. housing bond be certainly ways

are we something are working yes, land project in the – I the X it’s Southern mean we adjacent we several then, a acquisition good now, to that monitoring years. there. get is and on for own have with we for a it have And project closely California, hopeful this result we been regards we and years So, property

be unique ability capability able affordable it’s market-rate of partner units to really deliver able be housing And so, and have all to housing build the these both to in-house. to with have to our the

Sheila McGrath

Thank Okay. you.

Operator

Lynch. question Feldman next Bank is of The from with Jamie America/Merrill

Jamie Feldman

I all think are the what point? you back the type, terms in you. years at both as do platform a had from step guess this and and still have take partners couple last Thank growth think product of Great. you missing of you over the about you

Bill McMorrow

say continue the it’s businesses. would those and I main I the right the we ability Well, now, are that now businesses just to in to – focus think all we grow

the that all And so team you relates and have. your people to

very in have we so, real And had work. desirable last would in months. the terms a our really on great XX XX to is I front the hires to people estate world, place success say of new months Kennedy-Wilson, over

say, addition And course, we younger one, our And business. into so really attracting of have year. team this in Palmer we the would I senior our here are to people high-quality Gary then

So, in markets businesses. are right the we the right and all all

to have to that team you place right that support have in just got you make now so growth. And the sure

Jamie Feldman

And in it’s or announced or from kind how the you do under you That’s I forward? increase. AUM, Okay. of of mean how dividend then of just third-party tie a kind Can business AUM, you how about growth NOI talk assets the helpful. – whether nice dividend to can we going you growth about just the think platform? –

Bill McMorrow

You mean I your I am – policy a like follow sure as question. not

Jamie Feldman

just one understand the the number what guess dividend I think you drove Well, about – increase. to how is

structure. a under You payout required have your don’t

Bill McMorrow

Right.

Jamie Feldman

way there a and is when driver how and grow Board the you what is? about So, to about dividend your think good key think the to

Bill McMorrow

hit. Well, that trying to in some I formal yield would terms say percentage we don’t we of have policy are any or

– – very as all have our of for And we been a out, returning think, pointed we size, so shareholders. been company it have but capital Justin I our conscious to

we cash all view future relate And really flows. so, to the increases how dividend

think And unsecured had we reducing was it success costs. our have and great – this so debt I year

of kind the of to X talk along look going come assets going are of about we that are flows. you natural assets cash When capital, is talk The under result X management right so next to management years. this NOI years the under significantly the at fee-bearing our out net about you and the all And to over grow with that.

nine And said, big dividend really future it I off we to months, evaluate the have about time. to relates And going so, are number, why to I cash outlook flows. optimistic really we the of our did continue That’s But as XX% growth over that’s think to reasonably dividend very in increase. good.

Jamie Feldman

thoughts. your Okay. Thanks for

Operator

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

Bill McMorrow

questions Well, as always I the available said really in call. the come everybody’s to I of four in my on call And say, always us I answer post this that closing any interest up were appreciate today company. of are the that any as remarks,

you a thank So, day. great again and have

Operator

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

You disconnect now may your great a lines. Have day.

Kennedy-Wilson (KW) 7 Nov 212021 Q3 Earnings call transcript