- 4Q Adj. EBITDA of $121.7M (+115%); FY 2015 Adj. EBITDA of $371.2M (+17%)
- Consolidated liquidity over $1.5 billion; no corporate debt maturities until 2024
- KW announces 17% increase in dividend and $100 million share repurchase plan
BEVERLY HILLS, Calif. Kennedy-Wilson Holdings, Inc. (NYSE: KW) (“Kennedy Wilson”) today reported the following record results for the fourth quarter and full year of 2015:
|
4Q |
Full Year |
| (Amounts in millions, except per share data) |
2015 |
|
2014 |
|
% Change |
|
2015 |
|
2014 |
|
% Change |
| Adjusted EBITDA |
$ |
121.7 |
|
$ |
56.7 |
|
|
115% |
|
$ |
371.2 |
|
$ |
317.8 |
|
17% |
| Adjusted Net Income |
|
67.7 |
|
|
4.7 |
|
|
* |
|
|
208.2 |
|
|
133.7 |
|
56% |
| GAAP Net Income (Loss) To Common |
|
|
|
|
|
|
|
* |
|
|
|
|
|
|
|
* |
| Shareholders |
|
28.5 |
|
|
(30.8 |
) |
|
|
|
|
71.1 |
|
|
13.8 |
| Per Diluted Share |
|
0.25 |
|
|
(0.35 |
) |
|
* |
|
|
0.66 |
|
|
0.14 |
|
* |
*Not meaningful |
| |
“We had an outstanding fourth quarter and full year 2015 during which we achieved record levels of earnings while substantially increasing our recurring cash flow," said William McMorrow, chairman and CEO of Kennedy Wilson. "After a record year of transactional volume and significant progress throughout our value-add initiatives, we entered 2016 in the strongest liquidity position in our history with over $1.5 billion of consolidated cash and unused lines of credit.”
4Q Highlights
- Same Property Performance: Across the Company’s same property
portfolio:
- Multifamily: Revenues +8%; NOI +12%; Tenth
consecutive quarter with above 8% NOI growth
- Commercial: Revenues +2%; NOI +2%
- Liquidity: The Company increased the capacity of its undrawn
corporate line of credit from $300 million to $475 million (maturity
with extension December 2019). Kennedy Wilson has no other corporate
debt maturities until 2024. As of December 31, 2015, the Company and
its consolidated subsidiaries (including KWE) had $732 million in cash
and $807 million in unused lines of credit.
- Investment Gains on Sale: The Company realized gains from sales
of $46 million in 4Q-2015, including $39 million related to the sale
of four unconsolidated multifamily properties located in the Western
U.S., compared to $4 million in 4Q-2014.
- Performance Fees: The Company earned $34 million in performance
fees related to its management of KWE and its U.S. fund management
business. During 4Q-2014, the Company had performance fees of $6
million.
Dividend Declaration
Kennedy Wilson announced a 17% increase in the common dividend per share
to $0.14 per quarter or $0.56 on an annualized basis. This marks the
fifth consecutive annual dividend increase. The Company will pay a
quarterly dividend to common shareholders of record as of March 31, 2016
with a payment date of April 7, 2016.
Share Repurchase Program
Kennedy Wilson announced the authorization of a stock repurchase program
for up to $100 million. Repurchases under the program may be made in the
open market, in privately negotiated transactions or otherwise, with the
amount and timing of repurchases depending on market conditions and
subject to the Company’s discretion.
Investment Business
For 4Q and FY 2015, the Company’s Investment segment reported the
following results:
- Same Property Results: The Company continued to drive growth in
same property revenue and net operating income across its
income-producing portfolio as shown below by asset type (excludes KWE):
|
|
4Q-2015 vs. 4Q-2014 |
FY -2015 vs. FY-2014 |
|
|
Same Property |
|
|
|
|
|
|
|
Same Property |
|
|
|
|
|
|
|
|
Units / Sq. Ft. |
|
Occupancy |
|
Revenue |
|
NOI |
|
Units / Sq. Ft. |
|
Occupancy |
|
Revenue |
|
NOI |
| Multifamily |
|
15,313 |
|
(0.2)% |
|
8.1% |
|
11.9% |
|
12,838 |
|
(0.1)% |
|
7.7% |
|
10.7% |
| Commercial |
|
5.3 million |
|
2.4% |
|
1.7% |
|
1.5% |
|
5.3 million |
|
2.5% |
|
2.4% |
|
2.7% |
| |
- Investment Transactions: The Company, together with its equity
partners (including KWE), completed investment transactions of
approximately $1.2 billion in 4Q-2015 and $5.4 billion for FY-2015:
| |
| |
|
($ in millions) |
|
|
|
Purchase / Sale Price |
|
|
|
Cap Rate (1) |
|
|
|
KW Ownership (2) |
|
|
4Q - 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(3) |
|
|
|
$ |
506.8 |
|
|
|
6.2% |
|
|
|
20% |
|
|
Dispositions(4) |
|
|
|
|
731.4 |
|
|
|
5.3% |
|
|
|
40% |
|
|
Total |
|
|
|
$ |
1,238.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY - 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(3) |
|
|
|
$ |
3,204.7 |
|
|
|
6.9% |
|
|
|
28% |
|
|
Dispositions(4) |
|
|
|
|
2,146.9 |
|
|
|
5.0% |
|
|
|
37% |
| |
|
Total |
|
|
|
$ |
5,351.6 |
|
|
|
|
|
|
|
|
| * |
|
Please see footnotes at the end of the earnings release and refer to
supplemental financial information for additional detail of the
above investment transactions |
| |
- Debt Financing: The Company and its equity partners (including
KWE) completed total financings and refinancings of $2.3 billion in
2015.
| |
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
| ($ in millions) |
|
|
|
Amount |
|
|
|
Interest Rate |
|
|
|
Maturity (years) |
|
|
|
% Fixed Rate |
| FY 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financings |
|
|
|
$ |
1,793.3 |
|
|
|
3.27% |
|
|
|
7.2 |
|
|
|
80% |
| Refinancings (1) |
|
|
|
|
517.3 |
|
|
|
3.02% |
|
|
|
9.7 |
|
|
|
76% |
| Total |
|
|
|
$ |
2,310.6 |
|
|
|
3.24% |
|
|
|
6.7 |
|
|
|
79% |
| Loan terms prior to refinancings |
|
|
|
$ |
385.9 |
|
|
|
4.07% |
|
|
|
4.5 |
|
|
|
21% |
| (1) |
|
Excludes new $475 million corporate line of credit, which was
undrawn as of December 31, 2015. |
| |
Services Business
The Company’s Services segment earns fees primarily from its investment
management business along with its property services and research
activities. For 4Q and FY 2015, the Company’s Services segment reported
the following results:
| |
|
|
4Q |
|
|
|
Full Year |
| ($ amounts in millions) |
|
2015 |
|
|
|
2014 |
|
|
|
% Change |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
% Change |
| Adjusted Fees(1) |
|
$ |
64.2 |
|
|
|
|
$ |
31.1 |
|
|
|
|
106% |
|
|
|
$ |
158.2 |
|
|
|
|
$ |
121.0 |
|
|
|
|
31% |
| Adjusted EBITDA - Services |
|
36.9 |
|
|
|
|
11.5 |
|
|
|
|
221% |
|
|
|
82.8 |
|
|
|
|
59.3 |
|
|
|
|
40% |
| (1) |
|
Adjusted Fees earned from KWE were $37.1 million and $5.3 million
for 4Q 2015 and 4Q 2014 and $14.0 million and $67.0 million for FY
2015 and FY 2014. See supplemental financial information for
additional information. |
| |
Subsequent events
- In February 2016, Kennedy Wilson successfully completed fundraising
for Kennedy Wilson Real Estate Fund V (“Fund V”). Fund V raised $500
million of capital commitments, including $60 million from Kennedy
Wilson. The fund has a current portfolio of nine multifamily, office,
retail and residential assets with an aggregate purchase price of $365
million, deploying $140 million of equity to date.
Footnotes for investment transactions table
| |
| (1) |
|
Cap rate includes only income-producing properties. For the three
months and year ended December 31, 2015, $67.9 million and $388.1
million of acquisitions and $160.6 million and $518.3 million of
dispositions, respectively, were non-income producing assets.
Please see “common definitions” for a definition of cap rate. |
| (2) |
|
Kennedy Wilson’s ownership is shown on a weighted-average basis. |
| (3) |
|
The three months ended and year ended December 31, 2015 includes
$308.9 million and $1.7 billion of acquisitions by KWE, respectively. |
| (4) |
|
The three months ended and year ended December 31, 2015 includes
$100.5 million and $186.5 million of dispositions by KWE,
respectively. |
| |
Conference Call and Webcast Details
Kennedy Wilson will hold a live conference call and webcast to discuss
results at 7:00 a.m. PT/ 10:00 a.m. ET on Friday, February 26.
The direct dial-in number for the conference call is (866) 807-9684 for
U.S. callers and (412) 317-5415 for international callers.
A replay of the call will be available for one week beginning two hours
after the live call and can be accessed by (888) 843-7419 for U.S.
callers and (877) 344-7529 for international callers. The passcode for
the replay is 10080114.
The webcast will be available at: http://services.choruscall.com/links/kw160226.
A replay of the webcast will be available one hour after the original
webcast on the Company’s investor relations web site for three months.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We
own, operate, and invest in real estate both on our own and through our
investment management platform. We focus on multifamily and commercial
properties located in the Western U.S., UK, Ireland, Spain, Italy and
Japan. To complement our investment business, the Company also provides
real estate services primarily to financial services clients. For
further information on Kennedy Wilson, please visit www.kennedywilson.com.
Forward-Looking Statements
Statements made by us in this report and in other reports and statements
released by us that are not historical facts constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements are necessarily
estimates reflecting the judgment of our senior management based on our
current estimates, expectations, forecasts and projections and include
comments that express our current opinions about trends and factors that
may impact future operating results. Disclosures that use words such as
“believe,” “anticipate,” “estimate,” “intend,” “may,” “could,” “plan,”
“expect,” “project” or the negative of these, as well as similar
expressions, are intended to identify forward-looking statements. These
statements are not guarantees of future performance, rely on a number of
assumptions concerning future events, many of which are outside of our
control, and involve known and unknown risks and uncertainties that
could cause our actual results, performance or achievement, or industry
results, to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These risks and uncertainties may include the factors and the risks and
uncertainties described elsewhere in this report and other filings with
the Securities and Exchange Commission (the “SEC”), including the
Item 1A. “Risk Factors” section of our Annual Report on Form 10-K for
the year end December 31, 2014, as amended by our subsequent filings
with the SEC. Any such forward-looking statements, whether made in this
report or elsewhere, should be considered in the context of the various
disclosures made by us about our businesses including, without
limitation, the risk factors discussed in our filings with the SEC.
Except as required under the federal securities laws and the rules and
regulations of the SEC, we do not have any intention or obligation to
update publicly any forward-looking statements, whether as a result of
new information, future events, changes in assumptions, or otherwise.
Common Definitions
- “KWH,” “KW,” “Kennedy Wilson,” the “Company,” “we,” “our,” or “us”
refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned
subsidiaries. The consolidated financial statements of the Company
include the results of the Company’s consolidated subsidiaries
(including KWE).
- “KWE” refers to Kennedy Wilson Europe Real Estate plc, a London Stock
Exchange-listed company that we externally manage through a
wholly-owned subsidiary. In our capacity as external manager of KWE,
we are entitled to receive certain (i) management fees equal to 1% of
KWE’s adjusted net asset value (EPRA NAV), half of which are paid in
cash and the remainder of which is paid are KWE shares; and (ii)
performance fees, all of which are paid in KWE shares. In accordance
with U.S. GAAP, the results of KWE are consolidated in our financial
statements. We own an approximately 18.2% equity interest in KWE, and
throughout this release and supplemental financial information, we
refer to our pro-rata ownership stake (based on our 18.2% equity
interest or weighted-average ownership interest during the period, as
applicable) in investments made and held directly by KWE and its
subsidiaries.
- “Acquisition-related gains” consist of non-cash gains recognized by
the Company or its consolidated subsidiaries upon a GAAP required fair
value measurement due to a business combination. These gains are
typically recognized when a loan is converted into consolidated real
estate owned and the fair value of the underlying real estate exceeds
the basis in the previously held loan. These gains also arise when
there is a change of control of an investment. The gain amount is
based upon the fair value of the Company’s or its consolidated
subsidiaries’ equity in the investment in excess of the carrying
amount of the equity immediately preceding the change of control.
- “Adjusted EBITDA” represents Consolidated EBITDA as defined below,
adjusted to exclude share-based compensation expense and EBITDA
attributable to noncontrolling interests.
- “Adjusted fees” refers to Kennedy Wilson’s gross investment
management, property services and research fees adjusted to include
fees eliminated in consolidation and Kennedy Wilson’s share of fees in
unconsolidated service businesses.
- “Adjusted Net Asset Value” is calculated by KWE as net asset value
adjusted to include properties and other investment interests at fair
value and to exclude certain items not expected to crystallize in a
long-term investment property business model such as the fair value of
financial derivatives and deferred taxes on property valuation
surpluses.
- “Adjusted Net Income” represents Consolidated Adjusted Net Income as
defined below, adjusted to exclude net income attributable to
noncontrolling interests, before depreciation and amortization.
- “Assets under Management” (“AUM”) generally refers to the properties
and other assets with respect to which we provide (or participate in)
oversight, investment management services and other advice, and which
generally consist of real estate properties or loans, and investments
in joint ventures. Our AUM is principally intended to reflect the
extent of our presence in the real estate market, not the basis for
determining our management fees. Our AUM consists of the total
estimated fair value of the real estate properties and other real
estate related assets either owned by third parties, wholly owned by
us or held by joint ventures and other entities in which our sponsored
funds or investment vehicles and client accounts have invested.
Committed (but unfunded) capital from investors in our sponsored funds
is not included in our AUM. The estimated value of development
properties is included at estimated completion cost.
- “Cap rate” represents the net operating income of an investment for
the year preceding its acquisition or disposition divided by the
purchase or sale price, as applicable. Cap rates set forth in this
presentation only includes data from income-producing properties. Cap
rates represent historical performance and are not a guarantee of
future NOI. Properties for which a cap rate is provided may not
continue to perform at that cap rate.
- “Consolidated Adjusted Net Income” represents net income before
depreciation and amortization, our share of depreciation and
amortization included in income from unconsolidated investments and
share-based compensation expense.
- “Consolidated EBITDA” represents net income before interest expense,
our share of interest expense included in income from investments in
unconsolidated investments, depreciation and amortization, our share
of depreciation and amortization included in income from
unconsolidated investments, loss on early extinguishment of corporate
debt and income taxes.
- “Consolidated investment account” refers to the sum of Kennedy
Wilson’s equity in: cash held by consolidated investments,
consolidated real estate and acquired in-place leases, net hedge
assets, unconsolidated investments, consolidated loans gross of
accumulated depreciation and amortization, and net other assets.
- “Equity multiple” is calculated by dividing the amount of total
distributions received by KW from an investment (including any gains,
return of equity invested by KW and promoted interests) by the amount
of total contributions invested by KW in such investment. This metric
does not take into account management fees, organizational fees, or
other similar expenses, all of which in the aggregate may be
substantial and lower the overall return to KW. Equity multiples
represent historical performance and are not a guarantee of the
performance of future investments.
- “Equity partners” refers to non-wholly-owned subsidiaries that we
consolidate in our financial statements under U.S. GAAP, including
KWE, and third-party equity providers.
- “Investment account” refers to the consolidated investment account
presented after noncontrolling interest on invested assets gross of
accumulated depreciation and amortization.
- “Net operating income” or “NOI” is a non-GAAP measure representing the
income produced by a property calculated by deducting operating
expenses from operating revenues.
- “Same property” refers to properties in which Kennedy Wilson has an
ownership interest during the entire span of both periods being
compared.
Note about Non-GAAP and certain other financial
information included in this presentation
In addition to the results reported in accordance with U.S. generally
accepted accounting principles (“GAAP”) included within this
presentation, Kennedy Wilson has provided certain information, which
includes non-GAAP financial measures (including, Consolidated EBITDA,
Adjusted EBITDA, Consolidated Adjusted Net Income, Adjusted Net Income,
Adjusted Net Income Per Basic Share and Adjusted Fees, as defined
above). Such information is reconciled to its closest GAAP measure in
accordance with the rules of the SEC, and such reconciliations are
included within this presentation. These measures may contain cash and
non-cash acquisition-related gains and expenses and gains and losses
from the sale of real-estate related investments. Consolidated non-GAAP
measures discussed throughout this report contain income or losses
attributable to non-controlling interests. Management believes that
these non-GAAP financial measures are useful to both management and
Kennedy Wilson’s shareholders in their analysis of the business and
operating performance of the Company. Management also uses this
information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a
substitute for any GAAP measures. Additionally, non-GAAP financial
measures as presented by Kennedy Wilson may not be comparable to
similarly titled measures reported by other companies. Annualized
figures used throughout this release and supplemental financial
information, including annualized net operating income, are not an
indicator of the actual net operating income that the Company will or
expects to realize in any period.
| |
| Kennedy-Wilson Holdings, Inc. |
| Consolidated Balance Sheets |
| (Unaudited) |
(Dollars in millions) |
| |
|
|
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
| Assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
$ |
182.6 |
|
|
|
|
$ |
174.6 |
|
| Cash held by consolidated investments |
|
|
|
|
549.0 |
|
|
|
|
|
763.1 |
|
| Accounts receivable |
|
|
|
|
54.7 |
|
|
|
|
|
55.6 |
|
| Real estate and acquired in place lease values, net of accumulated
depreciation and amortization |
|
|
|
|
5,797.5 |
|
|
|
|
|
4,228.1 |
|
| Loan purchases and originations |
|
|
|
|
299.7 |
|
|
|
|
|
313.4 |
|
| Unconsolidated investments ($210.4 and $85.9, respectively,
accounted for at fair value) |
|
|
|
|
431.7 |
|
|
|
|
|
492.2 |
|
| Other assets |
|
|
|
|
324.9 |
|
|
|
|
|
305.1 |
|
| Total assets |
|
|
|
$ |
7,640.1 |
|
|
|
|
$ |
6,332.1 |
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
$ |
22.2 |
|
|
|
|
$ |
11.7 |
|
| Accrued expenses and other liabilities |
|
|
|
|
392.0 |
|
|
|
|
|
253.2 |
|
| Investment debt |
|
|
|
|
3,658.2 |
|
|
|
|
|
2,195.9 |
|
| Senior notes payable |
|
|
|
|
702.6 |
|
|
|
|
|
702.4 |
|
| Line of Credit |
|
|
|
|
— |
|
|
|
|
|
125.0 |
|
| Total liabilities |
|
|
|
|
4,775.0 |
|
|
|
|
|
3,288.2 |
|
| Equity |
|
|
|
|
|
|
|
|
| Cumulative preferred stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
| Common Stock |
|
|
|
|
— |
|
|
|
|
|
— |
|
| Additional paid-in capital |
|
|
|
|
1,225.7 |
|
|
|
|
|
991.3 |
|
| Accumulated deficit |
|
|
|
|
(44.2 |
) |
|
|
|
|
(62.0 |
) |
| Accumulated other comprehensive loss |
|
|
|
|
(47.7 |
) |
|
|
|
|
(28.2 |
) |
| Total Kennedy-Wilson Holdings, Inc. shareholders’ equity |
|
|
|
|
1,133.8 |
|
|
|
|
|
901.1 |
|
| Noncontrolling interests |
|
|
|
|
1,731.3 |
|
|
|
|
|
2,142.8 |
|
| Total equity |
|
|
|
|
2,865.1 |
|
|
|
|
|
3,043.9 |
|
| Total liabilities and equity |
|
|
|
$ |
7,640.1 |
|
|
|
|
$ |
6,332.1 |
|
| |
| |
| Kennedy-Wilson Holdings, Inc. |
| Consolidated Statements of Operations |
| (Unaudited) |
(Dollars in millions, except per share data) |
| |
|
|
|
|
For the Three Months Ended |
|
|
|
For the Year Ended |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental |
|
|
|
$ |
109.5 |
|
|
|
|
$ |
82.5 |
|
|
|
|
$ |
404.8 |
|
|
|
|
$ |
206.9 |
|
| Hotel |
|
|
|
|
28.4 |
|
|
|
|
|
26.4 |
|
|
|
|
|
106.4 |
|
|
|
|
|
63.3 |
|
| Sale of real estate |
|
|
|
|
— |
|
|
|
|
|
9.4 |
|
|
|
|
|
3.7 |
|
|
|
|
|
28.4 |
|
| Investment management, property services, and research fees |
|
|
|
|
22.3 |
|
|
|
|
|
17.6 |
|
|
|
|
|
69.3 |
|
|
|
|
|
82.6 |
|
| Loan purchases, loan originations, and other |
|
|
|
|
6.1 |
|
|
|
|
|
5.7 |
|
|
|
|
|
19.5 |
|
|
|
|
|
17.4 |
|
| Total revenue |
|
|
|
|
166.3 |
|
|
|
|
|
141.6 |
|
|
|
|
|
603.7 |
|
|
|
|
|
398.6 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental operating |
|
|
|
|
29.5 |
|
|
|
|
|
22.5 |
|
|
|
|
|
108.0 |
|
|
|
|
|
59.3 |
|
| Hotel operating |
|
|
|
|
23.8 |
|
|
|
|
|
24.0 |
|
|
|
|
|
89.9 |
|
|
|
|
|
57.1 |
|
| Cost of real estate sold |
|
|
|
|
— |
|
|
|
|
|
6.1 |
|
|
|
|
|
2.6 |
|
|
|
|
|
20.7 |
|
| Commission and marketing |
|
|
|
|
2.9 |
|
|
|
|
|
1.8 |
|
|
|
|
|
7.3 |
|
|
|
|
|
5.6 |
|
| Compensation and related |
|
|
|
|
49.4 |
|
|
|
|
|
34.2 |
|
|
|
|
|
154.8 |
|
|
|
|
|
113.8 |
|
| General and administrative |
|
|
|
|
12.5 |
|
|
|
|
|
13.8 |
|
|
|
|
|
43.8 |
|
|
|
|
|
42.1 |
|
| Depreciation and amortization |
|
|
|
|
46.8 |
|
|
|
|
|
37.2 |
|
|
|
|
|
166.3 |
|
|
|
|
|
104.5 |
|
| Total operating expenses |
|
|
|
|
164.9 |
|
|
|
|
|
139.6 |
|
|
|
|
|
572.7 |
|
|
|
|
|
403.1 |
|
| Income from unconsolidated investments |
|
|
|
|
53.3 |
|
|
|
|
|
8.3 |
|
|
|
|
|
97.4 |
|
|
|
|
|
54.2 |
|
| Operating income |
|
|
|
|
54.7 |
|
|
|
|
|
10.3 |
|
|
|
|
|
128.4 |
|
|
|
|
|
49.7 |
|
| Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of real estate |
|
|
|
|
27.7 |
|
|
|
|
|
— |
|
|
|
|
|
72.4 |
|
|
|
|
|
— |
|
| Acquisition-related gains |
|
|
|
|
20.9 |
|
|
|
|
|
18.9 |
|
|
|
|
|
108.1 |
|
|
|
|
|
218.1 |
|
| Acquisition-related expenses |
|
|
|
|
(9.0 |
) |
|
|
|
|
(2.8 |
) |
|
|
|
|
(37.3 |
) |
|
|
|
|
(19.7 |
) |
| Interest expense - investment |
|
|
|
|
(30.9 |
) |
|
|
|
|
(16.1 |
) |
|
|
|
|
(108.8 |
) |
|
|
|
|
(46.3 |
) |
| Interest expense - corporate |
|
|
|
|
(11.4 |
) |
|
|
|
|
(17.5 |
) |
|
|
|
|
(46.9 |
) |
|
|
|
|
(57.1 |
) |
| Early extinguishment of corporate debt |
|
|
|
|
(1.0 |
) |
|
|
|
|
(25.8 |
) |
|
|
|
|
(1.0 |
) |
|
|
|
|
(27.3 |
) |
| Other (expense) income |
|
|
|
|
(1.8 |
) |
|
|
|
|
4.1 |
|
|
|
|
|
(2.5 |
) |
|
|
|
|
5.1 |
|
| Income (loss) before (provision for) benefit from income taxes |
|
|
|
|
49.2 |
|
|
|
|
|
(28.9 |
) |
|
|
|
|
112.4 |
|
|
|
|
|
122.5 |
|
| (Provision for) benefit from income taxes |
|
|
|
|
(20.9 |
) |
|
|
|
|
8.4 |
|
|
|
|
|
(53.4 |
) |
|
|
|
|
(32.4 |
) |
| Net income (loss) |
|
|
|
|
28.3 |
|
|
|
|
|
(20.5 |
) |
|
|
|
|
59.0 |
|
|
|
|
|
90.1 |
|
| Net loss (income) attributable to the noncontrolling interests |
|
|
|
|
0.7 |
|
|
|
|
|
(8.3 |
) |
|
|
|
|
15.7 |
|
|
|
|
|
(68.2 |
) |
| Preferred stock dividends and accretion of issuance costs |
|
|
|
|
(0.5 |
) |
|
|
|
|
(2.0 |
) |
|
|
|
|
(3.6 |
) |
|
|
|
|
(8.1 |
) |
| Net income (loss) attributable to Kennedy-Wilson Holdings, Inc.
common shareholders |
|
|
|
$ |
28.5 |
|
|
|
|
$ |
(30.8 |
) |
|
|
|
$ |
71.1 |
|
|
|
|
$ |
13.8 |
|
| Basic earnings per share (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) per basic |
|
|
|
$ |
0.25 |
|
|
|
|
$ |
(0.35 |
) |
|
|
|
$ |
0.66 |
|
|
|
|
$ |
0.14 |
|
| Weighted average shares outstanding for basic |
|
|
|
|
108,850,756 |
|
|
|
|
|
90,232,896 |
|
|
|
|
|
103,261,513 |
|
|
|
|
|
89,200,855 |
|
| Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) per diluted |
|
|
|
$ |
0.25 |
|
|
|
|
$ |
(0.35 |
) |
|
|
|
$ |
0.66 |
|
|
|
|
$ |
0.14 |
|
| Weighted average shares outstanding for diluted |
|
|
|
|
112,095,953 |
|
|
|
|
|
90,232,896 |
|
|
|
|
|
109,553,728 |
|
|
|
|
|
91,555,214 |
|
| Dividends declared per common share |
|
|
|
$ |
0.12 |
|
|
|
|
$ |
0.09 |
|
|
|
|
$ |
0.48 |
|
|
|
|
$ |
0.36 |
|
| (1) |
|
Includes impact of the Company allocating income and dividends per
basic and diluted share to participating securities |
| |
| |
| Kennedy-Wilson Holdings, Inc. |
| Consolidated Adjusted Net Income and Adjusted Net Income |
| (Unaudited) |
(Dollars in millions, except per share data) |
| |
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
| Net income (loss) |
|
|
|
$ |
28.3 |
|
|
|
|
$ |
(20.5 |
) |
|
|
|
$ |
59.0 |
|
|
|
|
$ |
90.1 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
46.8 |
|
|
|
|
|
37.2 |
|
|
|
|
|
166.3 |
|
|
|
|
|
104.5 |
|
| Kennedy Wilson's share of depreciation and amortization included in
unconsolidated investments |
|
|
|
|
5.6 |
|
|
|
|
|
10.0 |
|
|
|
|
|
28.1 |
|
|
|
|
|
47.1 |
|
| Share-based compensation |
|
|
|
|
11.2 |
|
|
|
|
|
7.1 |
|
|
|
|
|
30.8 |
|
|
|
|
|
15.8 |
|
| Consolidated Adjusted Net Income |
|
|
|
|
91.9 |
|
|
|
|
|
33.8 |
|
|
|
|
|
284.2 |
|
|
|
|
|
257.5 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to the noncontrolling interests, before
depreciation and amortization (1) |
|
|
|
|
(24.2 |
) |
|
|
|
|
(29.1 |
) |
|
|
|
|
(76.0 |
) |
|
|
|
|
(123.8 |
) |
| Adjusted Net Income |
|
|
|
$ |
67.7 |
|
|
|
|
$ |
4.7 |
|
|
|
|
$ |
208.2 |
|
|
|
|
$ |
133.7 |
|
| Basic weighted average number of common shares outstanding |
|
|
|
|
108,850,756 |
|
|
|
|
|
90,232,896 |
|
|
|
|
|
103,261,513 |
|
|
|
|
|
89,200,855 |
|
| Basic Adjusted Net Income Per Share |
|
|
|
$ |
0.62 |
|
|
|
|
$ |
0.05 |
|
|
|
|
$ |
2.02 |
|
|
|
|
$ |
1.50 |
|
(1) |
|
$24.8 million and $20.8 million of depreciation and amortization for
the three months ended December 31, 2015 and 2014, respectively, and
$91.6 million and $55.6 million for the years ended December 31,
2015 and 2014, respectively. |
| |
| Consolidated EBITDA and Adjusted EBITDA |
| (Unaudited) |
(Dollars in millions) |
| |
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
| Net income (loss) |
|
|
|
$ |
28.3 |
|
|
|
|
$ |
(20.5 |
) |
|
|
|
$ |
59.0 |
|
|
|
|
$ |
90.1 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense-investment |
|
|
|
|
30.9 |
|
|
|
|
|
16.1 |
|
|
|
|
|
108.8 |
|
|
|
|
|
46.3 |
|
| Interest expense-corporate |
|
|
|
|
11.4 |
|
|
|
|
|
17.5 |
|
|
|
|
|
46.9 |
|
|
|
|
|
57.1 |
|
| Early extinguishment of corporate debt |
|
|
|
|
1.0 |
|
|
|
|
|
25.8 |
|
|
|
|
|
1.0 |
|
|
|
|
|
27.3 |
|
Kennedy Wilson’s share of interest expense included in
unconsolidated investments |
|
|
|
|
7.4 |
|
|
|
|
|
7.0 |
|
|
|
|
|
28.1 |
|
|
|
|
|
35.5 |
|
| Depreciation and amortization |
|
|
|
|
46.8 |
|
|
|
|
|
37.2 |
|
|
|
|
|
166.3 |
|
|
|
|
|
104.5 |
|
Kennedy Wilson’s share of depreciation and amortization included
in unconsolidated investments |
|
|
|
|
5.6 |
|
|
|
|
|
10.0 |
|
|
|
|
|
28.1 |
|
|
|
|
|
47.1 |
|
| Provision for (benefit from) income taxes |
|
|
|
|
20.9 |
|
|
|
|
|
(8.4 |
) |
|
|
|
|
53.4 |
|
|
|
|
|
32.4 |
|
| Consolidated EBITDA |
|
|
|
|
152.3 |
|
|
|
|
|
84.7 |
|
|
|
|
|
491.6 |
|
|
|
|
|
440.3 |
|
| Add back (less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share-based compensation |
|
|
|
|
11.2 |
|
|
|
|
|
7.1 |
|
|
|
|
|
30.8 |
|
|
|
|
|
15.8 |
|
| EBITDA attributable to noncontrolling interests (1) |
|
|
|
|
(41.8 |
) |
|
|
|
|
(35.1 |
) |
|
|
|
|
(151.2 |
) |
|
|
|
|
(138.3 |
) |
| Adjusted EBITDA |
|
|
|
$ |
121.7 |
|
|
|
|
$ |
56.7 |
|
|
|
|
$ |
371.2 |
|
|
|
|
$ |
317.8 |
|
| (1) |
|
$42.5 million and $26.8 million of depreciation, amortization, taxes
and interest for the three months ended December 31, 2015 and 2014,
respectively, and $166.9 million and $70.1 million of depreciation,
amortization, taxes and interest for the year ended December 31,
2015 and 2014, respectively. |
Kennedy-Wilson Holdings, Inc.
Daven Bhavsar
Director of Investor Relations
(310) 887-3431
[email protected]
www.kennedywilson.com