KW - Earnings call transcript Q4 2021 | Kennedy-Wilson Holdings, Inc.

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Operator

Good day and welcome to the Kennedy-Wilson Fourth Quarter 2021 Earnings Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Daven Bhavsar, VP of Investor Relations. Please go ahead.

Daven Bhavsar

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

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

Bill McMorrow

combined. everybody welcome record a which is capped off you bringing strong greater record we XX% had financial which billion yesterday and metrics, pleased our million. for of reported a all $X.X billion increase QX our to year record results including Daven, XXXX that adjusted the across very I'm EBITDA investment XXXX quarter than this completing annual in our XXXX to a generated In we transactions active with QX, Thanks $XXX another $X.X transaction key us. that joining Thank and results a morning. total both

we over under majority to momentum closed we $XX grew continue in or robust new investments remain volumes certain either billion. high, given In for strong this cash believe that real seen we the of inflation a all some $XXX and double-digit rate asset Relative edge Leases are current currently what growth remain management real across estate deal flow transaction perspective environment. in which underlying every to to is U.S. of across XX% institutional should record of will coupled are certain by our in flow. revenue under the assets excess regions have with in classes, apartment demand in saw again Global growth in the given by the once inflation feature by region. provided the an million like we Our estate natural an annual including into XX% in nature, multifamily contract elevated XXXX assets U.S. with NOI on market approximate have markets. short-term We've which XXXX in remained seeing QX. portfolio providing attractive start our turnover XXXX. I'd will the close QX

grew at including portfolio to X,XXX which current well beginning under end market above cap from development expect we units of units XX,XXX XX,XXX quarter multifamily global XXXX at Our units complete over the to over yields rates. at

U.K. office closed QX. expanding some We developments Dublin are our we will leasing with brand-new where portfolio ESG we in end In see portfolio with either multifamily to complete close and will delivering Europe, saw leading continue our of the by X,XXX that this already credentials. are quarter units of developments another are or strong starting our iconic

our office significant Dublin are apartment and in will and which as of in office developments seeing are nearing We assets are completion. currently a to near-term benefit which existing and return as our both Dublin two London well

main has and a the past divisions Europe generates from in XXXX number our taken transformed our KWE, flow that of and We and years, strong the over businesses. business into in Kennedy-Wilson management two non-core franchise including cash of simplify KW XXXX. acquisition research sale of few have greatly to XXXX a steps our global the property

assets on earn owned returns. Our portfolio mostly consolidated which strategic fees of and includes sheet our we enhance our portfolio and alongside partners our which also make co-investment balance wholly our investments which consists

value-add our capital and can and our Our find portfolio portfolio implement be European are for discretionary sourcing global growing where including our strategy In U.S. delivering our record Western leverage our deployment will consistently outsized portfolio platform. investment office European and capabilities track off-market on consolidated we focused to returns. debt which funds, we attractive logistics multifamily expanding opportunities various footprint our plans to primarily strategies our and our have ambitious platform initiatives our core continue commingled

our XXX,XXX and $XXX debt and In QX for exemplified portfolio added $X NOI to million we and in foot consolidated the $X capital. including Officer million Our both XXX-unit in Class U.K. suburban global results. we investments QX, In to A, lease. square office acquisitions investment in our two strategy. XXXX business our the I'd campus combined These $XXX a financial a portfolio. Vegas our this European the property our call new added of to of Financial estimated from and both over Las acquired multifamily to pass Justin two a portfolio, of logistics fee-bearing Chief loss our billion KW to continued expansion in like to Enbody owned over income with annual now annual million. estimated net $XX highlight price QX investments due acquisitions and the of upside operating value-add wholly to added initiatives capturing These significant purchase embedded million

Justin Enbody

EBITDA had income GAAP Thanks million. net In $XX EPS adjusted and we of of QX, $X.XX per diluted of adjusted $XXX million Bill. share,

million. EPS had across net record results adjusted year, of and of the income per For GAAP the $X.XX of $XXX million adjusted share, including board we EBITDA $XXX

income we made also will statement this You enhancement to quarter. our an notice

income the in includes to we which co-investment joint around investment statement our result, additional funds information unconsolidated our portfolio our a income and from management investment our expanded growth include our business As ventures. of

results feel of above moved as well reflects presentation we streams. also have as income capital recycling our these We better program our the as the business expenses co-investment this from prominence core

resulting only million compared QX in $XXX performance of strong XXXX. co-investment of million investment in investments QX, unconsolidated quarter from in Our $XX portfolio to income another in saw

co-investment and increase levels allocations management an year $XX the driven For base in XX% investment million our income, $XXX performance XXXX by to fees. of over in compared generated portfolio million higher to

profile, and continually cost Turning to took we our lower rate sheet decrease our extend the capital interest of and debt our maturities. advantage of last during the to two balance environment years,

Our cost improved of debt has improved with average X.X of an added weighted years. to an rate X.X% of maturity interest

is let have of which We property-level the maturing debt. end XXXX debt X% the by our of all

to fixed either of our hedged our now And is that, derivatives. to multifamily over using portfolio. XX% Windisch, to I like Finally, debt with discuss call rate interest Matt the turn would or

Matt Windisch

our its outperformance. saw continue record track Thanks Justin. In portfolio multifamily QX, of we global

the property of markets best growth coupled in the managed combination in and Omicron apartment rents variant in continued lower growing in every saw continue we suburban delivered with unique concerns including we western portfolio high-quality our assets Dublin across growth professionally In improving Despite the Our region. QX. U.S. to around strong XX% growth robust same class in double-digit U.S., in see in of with our NOI delinquencies. conditions markets portfolio our momentum NOI

regions Pacific respectively. and two the XX%, West XX% saw grow NOI by Northwest top Our and the Mountain

So these let's results. roll

portfolio not firmly at being currently QX spreads down on we new XX%. the XX% leasing all, and spreads U.S. are around pre-pandemic U.S. of renewables and utilized XX%. of were QX above with in with our QX of from and levels leases XX% XXXX. Acting XX% XXXX in concessions remained [ph] are at of occupancies rents in robust First Rent

the rent continue rent $X.X in also in with We tenants are the million and work quarter. advantage take to which in collections that our available of measures relief has resulted

XX%. see to demand continue leases at with spreads strong XX% We at on leasing in renewables and new January

rate strong this fundamentals strong. XXX over migration Similarly average pandemic-low. Ireland renovated Dublin back XX% of stabilizing We year benefit from Our U.S. corporations like remains housing XXXX. and across population office for President, portfolio best-in-class Ricks rental call Dublin turn and to will In residential to beyond. our QX, to, half has due on anticipate which the our plans our discuss business. heels units in our portfolio our demand stabilized loss the now capital portfolio to investment over market comes Dublin our basis we dock for we expect growth of growth by community Mary of which I'd which in XX% roughly the inward end lease points Occupancy or the X,XXX that, in units and has an to deliver continued growth multinational apartment supported the to believe remain continued to in With by the to increased up us of attractive yet sets with we QX. approximately from management

Mary Ricks

Thanks Matt.

foot provides free increase and leasing rent to continue suburban business the future In-place we the and exciting $X next same-property The acquired million The providing the us find reasons office is rent. and growing Turning office. return acquired development. XX-acre a million we is we NOI NOI property burn-off through our with bad benefits at adjacent rents In great XXX,XXX the a assets rents acres million. opportunity expect the to comes vacant over optionality well debt to a in global over up the strong vacant are collections, opportunities. cap to flow XX% to Forum XX% the performed European approximately three our a Forum It really XX% which like from cash was square XX QX, growth office high-quality result we our $XX the the for on to currently parcel rate. portfolio and years the where of NOI $X QX as which X% both of space at organically under the U.K. for asset. from saw of sits quality of grow this office slight X%, lower business park Over park market, as workers as one portfolio, of a

XXX,XXX life leasing in an unexpired of in for their million average in come approximately X.X million As into back square report leasing were higher term total These and London QX. our our completed than have square office robust desire leased largest back including This leasing QX At finally to agreements Road now occupancy the seeing a Bill XX% renewals. including and leasing across legals. transactions attractive Palace feet in X.X are momentum feet mentioned, markets. continues new which feet office XX% leasing I'm one XXX% seeing to commercial XXX that year-to-date XXXX lease market deals weighted to transactions of with we leasing The including are our years. we happy tenants asset teams and our we're global and at XXX,XXX brings at stood is of strong to from lease lease QX. completed year-end of and square new strong lease our to of momentum Buckingham square the feet

the XXXX, in was back asset this $XX acquired million. we NOI when reminder, a As

improving two of the looking addition period. majority height the refurbishment of years the stabilizing and and affluent existing extensive Following acquiring building-wide our the leased come of which tenants $XX office now the physical U.S., a rightsizing quarter. XX% fully to is increase the month is usage park our NOI at works already hold our amenities And to about and million and new tenants global over welcoming At through X% come with the leasing since U.K. And at square offices office suburb In remain our to first back foot continues ago has tenants. latest NOI similarly activity grown we by taken portfolio. of this from increase have thus, office fundamentals the the XXX,XXX into we back Weybridge to next started XX.X% XX.X%. they've optimistic to suburban occupancy this across

an growth Turning see of grew we in XXXX which last themes and capital than three XX% we launched $X in in in doubled continue impressive quarter market. we more billion, major to platform, was to by to in years. the recent growth strong the driven quarter to investment our by benefit strategies largely the in fee-bearing management our increasing more The from the which two see that

first is global which we platform. The theme the debt our yield search address through for

XX% of in at originations million $XXX platform at floating for QX debt in $XXX XX% On our debt size resulting heels new commitments. in and billion stood commitment are $XXX future global of is loans loan XXX% growth growth $X completed including The and million million $XX of of unfunded The rates. year. average the platform QX, a year-end loan the secured million

$X announced debt today commitments We two this and billion now yesterday our for $X platform initial than to from commitments $X years of tripled also billion additional platform. our has totaled Total an billion. ago less

This we The coupled supply assets address including of through demand continued rise vacancy for grew from sector relates second in QX the believe all-time logistics lead of continues theme which we to an strong will in our which to from low logistics total last in this with has through an e-commerce demand will the the European strong to And sector investments logistics U.K. growth mile further platform growth X%. platform. impressive fund occupational e-commerce our the in made benefit which driven $X.X continued XX% of European and at billion. rental by to tight stood our benefit

solid of under pipeline $XXX remains million deal another with Our assets offer.

beyond. investment strategic our $X deploy. in addition logistics business platform our capital, The seeing other our existing of will partners combined are another in our allow which management we to look and In our we global of to meaningfully with and platform us $X.X XXXX we credit billion potential fee-bearing European billion strong grow with to have momentum opportunities commitments

million $XXX by which to to estimated XX% our update assets end annual is of of us. important development finish relates year. and developments the for In operating our or I'd net add next complete like KW, quickly total, to few of on income is which, portfolio construction lease-up a focus lease-up an Finally, of larger you will to either area of expected that

on Our lower. QX. which to with X% points we over to developments occupancy being average a approximately basis in market year-end today rates Dock improving XX% XXX QX, versus Capital stabilized yield development completed are XX% of In cap are

to and was gold seeing A, our complete two foot also targeting gold Bill. We is with of foot and portfolio Street which it lead and I'd credentials occupier We lead within strong to to square a are Quay the XXXX on square also for under track property prospective QX. vintage a early remain Dublin, XXXX in and and well construction in time on At offer our track complete completed Hanover well is is development we office on the to pass built that, warehouse development which entire tenants top budget. With in fintech of assets unique space. demand multifamily from in XX,XXX office our this other to on and Grade certifications, XX,XXX Dublin which back projects majority like Kildare for

Bill McMorrow

our Thanks team Mary. the very We're pleased progress of with made over the XXXX. course

As opportunities about ahead, I'm I Kennedy-Wilson. extremely look growth the for excited

our a by per and year grow of As our I've XX% estimated said on XX% fee-bearing is goal annual capital previous XX% XX% NOI at to calls, to our per rate to to estimated or over targets of the next growing $XX three NOI pleased year fee-bearing by I'm capital growing and to we million say, years. have both XX%. those in annual XX% XXXX by with grow

We No joint unsecured continue of million and maturities capital including from until strong relationships properties. flows improving at XXXX strong cash access liquidity $XXX significant have our to debt year-end. to venture

of support to is our position open pandemic the like any continued our with attractive thank for their further partners. mentioned In it $XXX Fairfax million of say MOA grow business strategic shareholders, coming investment like from growth. as in in for further We and Board investment also shareholders increased our announced billion. $X strengthens more much can questions. from a value that partners, this the continuing to longtime to our financial with platform a KW preferred yesterday This to Mary tremendous net under our out ways I'd for I of that, management and driving team Financial Kevin, partner and Kennedy-Wilson. equity our a assets to I'd to investment us our to returns asset confidently $X debt commitment global Fairfax generate And Kennedy-Wilson. up with and conjunction Kennedy-Wilson its billion has position stronger

Operator

The Anthony go from session. question-and-answer [Operator Paolone Instructions] We Please will JPMorgan. now the question from comes ahead. first begin

Anthony Paolone

Thank first seeing or penciling you. you're those Hi. type to where question seem opportunities the the days? just and Great. environment either biggest be relates My to investment and these geography product where by returns

Bill McMorrow

focused for I where and mean, The Mary we assets here and Tony Well, out. and we States can business actually rate buying United mean, the the in the a United the the logistics is European to the reflect responsible business we're in little and that Western growing, higher multifamily the quality platform as bit, both that debt the here the we're Dublin. I are we terms in that where cap in get are States running like lease what United Kingdom in office others that we're than outlined

really not assets office those at where States that's discretionary but view is primarily in to we platforms, So acquisitions requirements or and and you we getting those because focus office coming fund But our capital United assets the doing look we is. can assets cash big even here And assets back in office our if continue that is XXX% the assets the though to difference we're everybody to partnership those the platform office and the as apartment attached we're the get flow. debt both from the view trading logistics those assets. such that office monthly

And on looking it. putting how that fixing buying that in a we're not on to fixing at very sure keeping we're We're we're vigilant eye pretty place rates make hedges where those we're are fixed. rates so that's much anything rates and

that biased, global we've good platform so just go we through but our interest always and the across we we company we on that buy. value-add initiatives. strategies the managers play at time we're done we implementing then value-add trying And things in outstanding spreads to make really acquisitions have rate the our game at as are asset the don't at lock I'm have very our And the

the that's right looking at we're how mean, now. I So market

Anthony Paolone

I base. capital growth And number, XX% might recall. headwinds as Mary what a help XXXX to that And it it at billion you the like commitments I $X.X that had of think guess, I in redemptions Thanks. if seems Okay. mentioned, maybe there fee-bearing a XX% that I previously happen Like, you clip? talked was to or grow fee-bearing drive do capital you think faster? then, Because faster to could the just potentially grow not have would capital cause just that see

Bill McMorrow

deploy to going I'm you over in-part, I've have of do. just that capital wait terms we've to never the way right We the it's into. to learned everybody for find in to but capital, question years because deploy a wrong goals you Matt the how answer let you look been opportunities the sets company until actually

that respect. direct in patient we're want yourself So to you answer that? to Matt, a do you answer But give

Matt Windisch

say estimation deploy months. And business XX we off. best I next the obviously you our in over off. the I'd and probably Yeah. of going capital to have to get paid is you that's you're by success paid it's credit XX when redemptions mean, that terms the with then, nature platform get debt when

So in XXXX. certainly to you payoffs some will coming start see

So certainly I the to we out think there have number XX%. XX%

hopefully and can we we think better. do a that can I we're can bit we confident hit

So is that's about kind it XX% really thinking to of that XX% how we're number. growth

Anthony Paolone

base just billion $X.X the think at think then, And invest KW less? to think bit little you a any of fee-bearing seems that lastly, as about raised be you need capital Do that you get deal. Do or capital capital more Fairfax committed you out that? there with to alongside Okay. you more the to

Bill McMorrow

because currently we underline, mean, XXX have any this I because you've Well, got really of beyond capital. I sources three don't currently plans,

raised. XXX the we've got that You've

got which this fundamental cash the of a that sales much come flows then, And is asset of the for got embarked business. on part you've properties. operating that year out You've were very our

out year we through to for on sources those year. that's current sufficient capital this of three take coming is And believe the have we that based that this the plans us so,

Anthony Paolone

you. Thank Okay, great.

Operator

ahead. The from Evercore. go comes next Sheila from question McGrath Please

Sheila McGrath

a platform. more talk and equity Yes. would in you us debt Good be little needs if I the sale, the capital wondering the expansion a their was could color and commitment timing about pricing, also great. give on warrants morning. preferred just and on That

Bill McMorrow

into done great But had Fairfax capital we've now almost the with exclusive that's over Kennedy-Wilson. billion I'll relationship Yeah. $X a very we've Matt. transactions for years gone turn Thanks Sheila. with of XX it that of to

at every So level we've of of record company. a long got the together track working and

partner a and a is this very partner. company outstanding so And trusted trusted really a

the And so of background. that's part

So Matt, do you want to comment?

Matt Windisch

Yeah. business capital that in terms I'd multiple particular, call. we And consider company raising permanent the somewhere out debt where well the co-investment our we've as the you support option. this XX% was we're fees for say our platform if and to deploy we to billion. determined laid this commitment platforms. growth and focusing including between on In capital increased our that the into the Fairfax of the XX% $X annual management on flow as we overseeing returns initiatives options best evaluated by the earn in cash just generally generating We

that of of I bought an back it's stock worth also noting at million years past think So over $XX.XX. four shares average the XX.X we've price

the which say, the premium we permanent So provides if to back past our to net share a continue on it per thing, firepower The the think overtime. about years. asset few value price grow you this bought represents last capital further us to is transaction this XX% need our we the just at warrant and I'd price balance strengthens we really over our it raised sheet stock

Sheila McGrath

Ireland. thanks And Okay, projects you to U.S. both and development, the multifamily just have in Matt. switching

Matt Windisch

Yeah.

Sheila McGrath

projects the than understand going lease-up the wondering rate and is the more help your I cap us stabilizing per you unit cost in compare. comparison of quickly was kind U.S. also Dublin between might the dynamic on if Ireland, U.S. could and just how they are comparison

Bill McMorrow

parts a of are question there that lot Sheila. there, Well, to

Sheila McGrath

Sorry.

Bill McMorrow

that well, years outside brand started pay stabilize see fortuitous buy had been assets assets And that cap we've a to one rates to decision started So way that's to they're let all to have be at we the turned these if able pandemic, eight really me that and made of I beginning it the new. that out very a because are up ago. those a there we we The what construction decision made development we would back the answer would in the decisions me let say that. I the we business can second. of of

almost construction. ago example have You're made out office buildings for year is our a beginning on projects not Dublin products project going units. is development has leased we brand-new a finished correct, XXX we XXX-unit in the weren't we there days about pandemic the entire these to of up the unheard I project project in last XXX Boise proved three Idaho except And a correct I'm that down which be that a size. believe the in units. which it's individual at in governmental in of is here, decision. for the that able that on decision -- units we project stop that we're jurisdiction me four two apartment Quay we largest all last the actually made but the leased to we've That a within of buildings six site months. most you of that office multifamily. unless going to can to just XXX decision was when Dublin that correct finished we very similarly also years Ireland shut Mary, And we two Clancy as been finish XXX our good We

properties And any The to would so, that are it clients. attractive be anybody. seen your we've surprise newer not to really

as to on-time everything do side, far been on-budget. able construction As we've the and

less the United in no in And properties can cost multifamily here in thing lot we that costs a on vary low the anything. in the to building is, than had you geography-to-geography. here key properties can cost construction side of in components States build really is of too and can. of keep at it's possibly construction remember other Mountain already of the we say so are process you the to hiccups you that And to per somewhat construction was key California. land on-sites of space the Western we one States, have is as adjacent We unit, The your the the as already -- the that did own, from

we're right paid example, project of on door. we land. $X now XXX-unit for phase million almost only XXX next second Rosa property on that But in that's the doing So top California a XXX units for units Santa

thing, we And these relationships theme guess, there's I so land both a it's where is door over have in. or find either they're is we too entitled. we've kind of last the here that and the teams with additional Europe say, and the buy that done next And whether that's in that would have I about, years to great exceptional Mary land jurisdictions sites that can that

be the process good very, can us really sometimes So a We've track for very XXX% had getting record difficult. which entitlement projects record track very, approved. of

would I something to you've add. say, Mary, it. that's unless mean, about So got I

Sheila McGrath

if might in in multifamily, Just Western rates or cap us assets how stabilized tell could you Mary to the just U.S. prevailing of they compare Bill markets Dublin your in the

Mary Ricks

Yeah. seeing really for cap best-in-class X.X%. rates of Dublin stabilized Hi Sheila, sub we're in assets

are you Europe rates extremely obviously So low. -- can in

about Ireland compared European And last thing I So you say actually then, rate is, have spread still at. borrow other cap still to room to wide grow. a very between cap would rate markets the and has can that what you the

whether So It's or you're an than that. extremely even be seeing class. in that lower France other Germany cap markets asset rates defensive

units really X% seeing. we're Dublin we're and still developing X% cap between And XXXX good in as assets these there's about developing So, that those rates. opportunity we're

same spreads to trading. So where very big that asset is

Bill McMorrow

Yeah.

that… So saying what you're is

Sheila McGrath

you. Thank Okay.

Bill McMorrow

are spreads basis would to the … you what XXX wide pay buying were asset. XXX points that have of if to you

Sheila McGrath

right. That's

Bill McMorrow

on, pretty we I that project here on to It depends mentioned the that in the -- again in United geography what's And Boise that, in. you're comparable States. going is But And that that you're units you somewhere you'd that buying rate. if paying low-fours close cap to would XXX -- the stabilized we've in today be the outset. a X% for at

Sheila McGrath

Okay, great. Thank you.

Operator

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

Derek Johnston

you. Thank Hi everyone.

the on acquisitions the you rates outside platform spend mentioned or where a European go, the we how acquisitions commingle second a where office. caps Can XX% the generate share fund cap on of between You ultimately then as decided the U.K. platform? logistics to you rates capital. logistics And versus in they cap with have are fee where

Mary Ricks

Sure, hi Derek.

the underwritten does really investment an terms of go, returns. depends on on it in side, So logistics the where

that that a IRR hold. a plus value-add sort our targeting. logistics more on XX that's the more targeting. terms XX% of platform my X%. in remarks to is XXXX side leased for platform We've levered core a as a U.K. levered seeing we're in XX% we're in return an and what Vacancies our be really of the million logistics we're of That's U.K. feet of seen And So fund longer-term to And which I said for square in the record-breaking XX% X% take-up. is in

whole just Madrid where in lot just record-breaking also really do fundamentals. in we U.K. in and are started Spain penetration. these logistics has the area in but is in the And So retail online this that a that what not there's to only we've room go and think statistics also space investing and of the with the to Ireland

if and the from you years dollar retail That's about that. U.K. so That's is spent in online even and think in to growing Spain the online. penetration XX%. every was retail three So ago behind the Ireland the U.K. space XX% well

So we invest space it's in. great just think fundamentally, to a

in excited business. with and we're like significant capital logistics business the fund really the and along our growth in have that partners our for both us cores We trade that platform in

Derek Johnston

exciting. brick of significant what can't putting it by are the lot a I want to they day be but doing think end be Right REITs it the No, public kind the I to you of together guys brick which as move platform did pretty pretty the a switch should gears. at seems really going industrial that's doing. if needle really you're of

is had restrictions The may might touched December's And it. the missed on multifamily back office. but months we're in I Ireland in have far we're if that a U.K. been Dublin multifamily. recovery How Omicron of XQ translated is leasing, in. first I have expand with bit? using on some to a surge certainly kind from the the decent into and here have could in But XQ you so couple you of post think quarter QX little this in

Mary Ricks

Dublin points. multifamily by Sure. I we've our mean, XXX grown so basis occupancy

my Capital there. leased. We've as at stabilized at to further there's room So Dock grow XX% we're XX% now in said I remarks multifamily

back XX,XXX to young seen coming Ireland. growing There's population reopening economy and on into population. and bullish big we're Europe. flow to of what's really a direct jobs very so the very, been country. just a really on continue is fastest-growing new the economy in just has foreign into all Irish Ireland. Ireland created. of We've the there's It's investment been going that It's So people been growth has in do the what

some street the location to a the As activity well there. offer Kildare, from with Hannover under very green. great That probably really actually stabilize there you That the tenant square of It's we're across push is the that then, for a us know completing that Capital the rents will office entire to building. Shelbourne. creditworthy entire square Dock development which allow very, in we our our were underwriting. XX,XXX multi-tenant developments will on as beyond feet And great office building the which and really well right just were have tenants achieve from Quay

So really going what's just excited about we're the market. in on Irish

Derek Johnston

Thank you. Okay.

see to interesting fourth affordable multifamily quick, the Just it on was one segment, one just X.X% revenue in up quarter. more, the

what Now points certainly of kind or where and occupancy for the model the are inflation could that. us account increases we rent revenue potential to Are some understand XXX tied basis gaining can you and rent of in of growth most measure guys to? remind But affordable they of course segment? tied can

Matt Windisch

question, great Yeah, Derek.

business is area this tied median is income. Matt. to So Yeah, so that

just the in So people basically of salaries area. it's

you look when what's if average. had kind I X% very X% of invested been rent growth in you go so back assumed at to on And is rents when more business rate this to happened to X% X% we very like think, terms it's we minimal think first about rents. in to rents, relative tied I you of rate. you're the below XX% do with if these And much inflation definitely you can -- mean, what market it's It XX% very market - a

extent as of up room So pass the well. those go they're the to you And cases, there's through almost payments to that to can assistance tenants. some some government help generally in incomes all with median getting

Derek Johnston

Helpful. you. Thank

Operator

comes Feldman ahead. next question with from Please Jamie of The America. Bank go

Jamie Feldman

that, am the heard Great. was I else and more about you assuming, one deal go -- you I Fairfax preferred to if Can Thank just did considered. then, several even NAV? to more Matt's what the I think else can you what you. needed want deal should about of of back to investments warrant comment talk felt view you pricing right, talk And we warrant on like do you about did like you how consider, you versus why now? right the a your you this

Matt Windisch

Yeah.

So we did -- at like said, look we I a of number options.

in above paying. So dividend the we're perpetual come basis that higher XXX or have would more rate points preferred

premium comes to discount case stock. we've X%, at X% was struck a were back where to the option straight XX% buying price current to stock an discounts stock in been obviously in warrants anywhere the looked premium where transaction a the price a to we and the this stock to from equity, at the So X% price the that

So by looking our capital it And the run, the this is can at we're this I where putting platforms the be having grow to at to prudent do prudent in really this business to company us, XX% deploy how rate accretive the NAV share. a us we, more the we we growing over the permanent And for way. just long various XX% capital. grow to business returns into on we're allow we've mean, earning capital per been feel into

Mary Ricks

fresh the the $X billion for to In debt platform addition of … powder

Jamie Feldman

Yeah.

Mary Ricks

fees which … will earn we obviously on.

Matt Windisch

Hello?

Operator

our question… concludes This

Matt Windisch

Yeah.

Operator

would any concludes This back I to remarks. like to closing for over session. turn the our call Bill McMorrow question-and-answer

Bill McMorrow

to today. you any. time And our always, call the if you everybody as answer we thank questions I Well, taking available we're support. have that any listen your offline, always to say, as to And appreciate for

very thank you So much.

Operator

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

disconnect. You may now

Kennedy-Wilson (KW) 26 Feb 222021 Q4 Earnings call transcript