Kennedy Wilson Share Discussion Threads

[citymohawk] 10/11/2014 16:02

thanks anley - please let me know if you want rid of the big chart in header / or anything else you wish to add.

CM

[anley] 08/11/2014 10:43

A little more from my NY office.........

Kennedy Wilson (KW:nyse) had a solid quarter, again. I’m surprised the stock didn’t run a bit. Kennedy Wilson, as you know, is an asset manager and owner of real estate and related assets. We bought Kennedy Wilson as a way to invest in European real estate. Since Kennedy Wilson controls Kennedy Wilson Europe, you will find the results consolidated in KW’s financial reporting.

KWE is KW’s new vehicle for investing in Europe. KW manages KWE and earns a variety of fees. It also owns 13.5% of KWE. Since its February IPO, KWE has invested over $2 billion in European property. The yields going in are 7-8%, and prices are at 20-30% discounts to replacement costs (or the cost to build the assets). KWE has a $1.6 billion pipeline of deals in the late stages of negotiation. It has another $1.6 billion of investments being underwritten today. So they have a full pipeline, and KWE has plenty of untapped buying power.

That is how I see it..............

[anley] 06/11/2014 16:50

These people have "skin" in their two businesses.


About Kennedy Wilson - USA

Founded in 1977, Kennedy Wilson (NYSE: KW) is a vertically integrated global real estate investment and services company headquartered in Beverly Hills, CA, with 25 offices in the US, UK, Ireland, Spain, Japan and Jersey. The company, on its own or with partners, invests opportunistically in a variety of real estate related investments, including commercial, multifamily, loan purchases and originations, residential, and hotels. Kennedy Wilson offers a comprehensive array of real estate services including investment management, property services, auction, conventional sales, brokerage and research. For further information on Kennedy Wilson, please visit www.kennedywilson.com

[mad foetus] 06/11/2014 15:16

I thought it was good to see that half of the management fee is paid in shares and that Mary Ricks has a decent holding and took up her full entitlement in the placing. There is alignment between the investment manager and the shareholders and I believe from contacts that KW are first rate operators.

The prospectus said that the aim was to achieve 15%pa return. Now that the company is fully invested and starting to pay out dividends let's see if they can achieve that. It would do me nicely.

[anley] 06/11/2014 14:59

Very good figures in these indifferent markets but the share price is trading at a premium to NAV and they make a play on how well the past has been...........its the future and this is the test of good management in the property world and they have a team that can do this and also put their money where their mouth is.........big point.

I know we could say that the NAV could increase but the market will only give the price an uplift if KWE starts to slowly churn the portfolio and substantial profits over book value start to flow into the cash pot.............we shall have to wait and see................

Meanwhile carry on the good work Mr Management please.

[mad foetus] 06/11/2014 08:51

As we don't have a news box on this thread...
All looks OK, dividend doubled, NAV increasing, double digit growth in rental markets.

6 November 2014
KENNEDY WILSON EUROPE REAL ESTATE PLC
("KWE", the "Company" or the "Group")
INTERIM MANAGEMENT STATEMENT
QUARTERLY DIVIDEND DOUBLED TO 4 PENCE PER SHARE
Kennedy Wilson Europe Real Estate Plc (LSE: KWE), an LSE listed property company that invests in direct real estate and real estate loans in Europe, today announces its interim management statement for the period from 1 July 2014 to the date of this announcement (the "Period").
Operational highlights:
-- GBP149.0 million of acquisitions completed in the Period across three properties and one loan portfolio, reflecting a blended net initial yield of 6.7%
-- In total GBP1,156.2 million of acquisitions have been made over the last eight months since listing
-- Property portfolio occupancy(1) of 95.0% with WAULT(2) of 8.1 years (9.5 years to expiry) -- 244,485 sq ft of new lettings, generating annualised rental income of GBP1.6 million on average lease lengths of 12.0 years
1. Excluding hotels, weighted by net rental income 2. Weighted average unexpired lease term ("WAULT") is to the shorter of first break or expiry, weighted by net rental income; excluding hotels and residential
Financial highlights:
-- EPRA NAV of GBP999.8 million or 997.6 pence per share(1) , as at 30 September 2014, an increase of 2.1% over the NAV at IPO in February of 977.0 pence per share
-- Quarterly dividend doubled to 4.0 pence per share
-- In October, GBP343 million of net proceeds raised in secondary offering -- GBP311 million of new debt financings agreed and fully drawn bringing total debt to GBP497 million; a further GBP225 million revolving credit facility ("RCF") agreed and undrawn; Group weighted average interest rate sits at 3.0% with a weighted average term to maturity of 4.7 years across all financings; LTV of 32.5% falls to 26.5% pro forma after taking account of the net proceeds following the secondary offering
1. IFRS NAV of GBP1,005.1 million or 1,002.9 pence per share Charlotte Valeur, Chair of Kennedy Wilson Europe Real Estate Plc, commented:
"The KWE team has made material progress on the strategy presented to shareholders at the time of IPO - capitalising on a significant investment pipeline and enhancing the income component of total shareholder return by doubling the quarterly dividend. The board is pleased to declare an increase in the dividend to 4.0 pence per share which reflects the Board's optimism in the robust cash flows of the business."
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented:
"Having fully invested the proceeds from our IPO in February, the recent secondary offering along with debt financings puts KWE in a strong financial position with sufficient firepower to execute on our deep pipeline of opportunities.
"We will continue to opportunistically deploy capital across our target European markets, leveraging our in-house team of real estate professionals and employing a disciplined bottom-up investment approach, looking to benefit from market dislocations and pursuing value-enhancing asset management initiatives where we are already delivering on our yield on cost targets."
Investment Management Fee - Share Issuance:
For the quarter ended 30 September 2014, based on an EPRA NAV of GBP999.8 million, a quarterly management fee of GBP2.5 million is payable to KW Investment Management Ltd, as investment manager to the Group. In line with the Investment Management Agreement, this fee is payable 50% in shares (119,568 shares) and 50% in cash (GBP1.25 million).
Dividends:
The directors of the Company have resolved to pay an interim dividend

[mad foetus] 04/11/2014 08:24

IMS coming on Thursday - I imagine it will be positive. All we need is QE in Europe and KWE will be right in the sweet spot imo.

[mad foetus] 31/10/2014 12:01

fascinating - I thought I would pop in to check the price and yet again, on the dot of midday on Friday it drops down. Another long lunch for the MMs!

[anley] 27/10/2014 10:09

Just paid 1055p to round up my holding and it does seem to be a firm price.

You need to keep an eye on the SOROS holding as he is likely to sell it in the future. He always trades with "good" information..............

[mad foetus] 24/10/2014 12:35

Interesting - I looked at buying another 5,000 shares just now and the online broker was quoting 1049.8p at a time advfn reports the midprice at 1040p. During the week I was able to trade bang on and sometimes even below the midprice from the same source.

Indicates to me that the MMs here enjoy knocking off for a long lunch on Fridays as the same thing happened last week!

[anley] 24/10/2014 10:29

Only if there is a steady buy and sell of the underlying portfolio which has not happened yet. Otherwise a small discount to NAV...............

However, we have a very cleaver board so anything can happen but certainly look for a good price up lift over the coming months.

[mad foetus] 23/10/2014 13:15

the only brokers coverage I've found on this is from Goodbody last month - strong buy with price target of 1290p

the NAV rose around 30p between the management statement and the interims - equates to about 120 per year if pro rated. Income around £90m per year, the infrequent NAVs give a great buying opportunity IMO - I suspect real NAV is above current price when you would expect a fund of this sort, in the current market, to be trading at a 10-15% premium.

[mad foetus] 22/10/2014 13:29

I was quoted below midprice today so it was just a blip the other day - it is illiquid, I suspect a couple of the MMs were on holiday etc...

[anley] 22/10/2014 13:10

1p either side if you want to deal with The Share Center........

[citymohawk] 20/10/2014 14:33

It's quite illiquid anyway... I think you'd do well to just put a GTC order in.

[anley] 20/10/2014 09:38

Then get yourself a decent broker.......who do you use?

[mad foetus] 17/10/2014 12:17

happy to accumulate at this level but can't buy any for less than 10p above the midprice!

[anley] 15/10/2014 17:40

But remember the management company takes its big cut before shareholders get their quarterly divided.

The way to play this is to do what the directors and their management company does and re-invest all the dividends back into stock.

[scottishfield] 15/10/2014 13:02

"As at 31 January 2014, the Seed Portfolio generated a gross rental income of approximately £19.7 million per annum, reflecting a gross initial yield of approximately 9.4 per cent. The weighted average remaining lease term of the Seed Portfolio was 4.9 years."

What will the yield to investors be? ie nett some of this or all of it? thanks.

[mad foetus] 07/10/2014 13:38

Just spotted on the shareholders register that Soros Fund Management own 11%. Old George usually picks winners.

[hpcg] 06/10/2014 16:14

Yes, very pleased with my timing here too. I liked the golf resort deal, and some of the inner city residential purchases. It looks like they are picking up quality locations from banks that are simply trying to cut their book.

[mad foetus] 06/10/2014 13:38

well I'm in. This looks like an excellent entry point with the price artificially depressed as a result of the additional placing: seen this time and time again, but share price will be up at previous highs by this time next week. And long term the prospects look great, they are hovering up depressed assets at rock bottom prices in Dublin, Spain and Italy. The prospects look very promising, regardless of the stock market.

[anley] 18/9/2014 15:10

When the US business bought in to Irish properties from the Irish bad bank they then sold some of the portfolio on to KWE listed on the London market.

Bingo the Irish properties will be revalued at some stage and KWE )UK) as well as USA will benefit.

That is not the end of the story............you have to invest to get the benefits and not for the short term but for the next few years.

[anley] 17/9/2014 12:30

I have just been told to buy these shares for the next few years and today paid just under 1100p.

I will post my reasons in due course.