Kennedy Wilson Share Discussion Threads

[speedsgh] 25/10/2016 10:12

Early letting success for Kennedy Wilson Europe in Frimley gives boost to M3 office market -

Kennedy Wilson Europe Real Estate Plc (LSE: KWE) has let the 16,468 sq ft ground floor offices at Theta House, Lyon Way in Frimley to Surrey and Borders Partnership NHS Foundation Trust in a boost for the M3 office market.

The offices are undergoing a major refurbishment with completion due in the next few weeks.

The NHS trust has agreed a 14 year lease with a tenant break option in year seven at £22 per sq ft, joining Amer Sports which occupies the first floor. Following this letting to the NHS trust, Theta is now 66% occupied, with only the 16,700 sq ft refurbished second floor offices available to let at a quoting rent of £23.50 per sq ft.

Giles York, asset manager at Kennedy Wilson Europe, commented: “We acquired Theta having recognised a number of opportunities to drive value and the letting of void space, as well as the strong fundamentals offered by the Frimley area. Since acquisition we have undertaken a significant asset management programme resulting in the swift letting to the Surrey and Borders Partnership NHS Foundation Trust, and successfully driving up headline rents. There is interest from a number of occupiers in the remaining space”

[spectoacc] 24/10/2016 07:36

Buyback showing no let-up, glad to see they're not doing things by halves.

[spectoacc] 11/10/2016 16:12

Approx 2/3rds UK, more than I thought. Will still have derived benefit from the weak £ on the other 1/3rd.

[skyship] 10/10/2016 09:41

This chart clearly shows the sector underperformance since 1st September:


free stock charts from uk.advfn.com

[spectoacc] 10/10/2016 09:06

Hard Brexit fears won't be helping the REITs.

I forget KWE's exact split but they've a fair bit outside the UK, mainly Dublin but also Spain/Italy. Currency weakness will be helping. Surprised the buyback hasn't had more effect tho.

[skyship] 10/10/2016 08:38

UK property sector very weak recently - down c10% over the past 5weeks:


free stock charts from uk.advfn.com

[spectoacc] 07/10/2016 15:10

Fair point - Dublin very tight.

Mind you - London's hardly great, notwithstanding that they're all there already.

[hpcg] 07/10/2016 12:21

Specto - Amsterdam is also seen as a contender. The trouble with all these cities is that to an extent they are already full.

MF - I am keenly aware that right now the UK operation I work in is getting substantially cheaper than those in the other developed countries we have locations. This is good for job security, and quite probably pay. Mercantilism is a yay for exporters of goods and services whilst domestic overheads such as government employees remain anchored.

[spectoacc] 07/10/2016 12:07

@hpcg - fair point re buyback. Not sure why they left starting it until the week after announcing.

@mf - my thought is that if people want to move from London to still have access to the Single Market, they're much more likely to go to the convivial & English-speaking Dublin than to "can't fire anyone even if you wanted to" Paris or "Frankfurt? Are you serious?".

[mad foetus] 07/10/2016 12:01

Hold it for years, the divi of 12p per quarter is well covered and I'm happy to reinvest it at a significant discount to par. The big question for me is what the big European banks do: London is getting cheaper by the day and has a pool of expertise that you can't get in Paris or Frankfurt. When margins are stretched anyway, that is a huge consideration. Enough to trump Brexit fears? Who knows, but this looks a pocket of value at a 20% discount to NAV at least IMO.

[hpcg] 07/10/2016 11:57

I suspect an overseas seller. Main thing now is for the buy back to pay the least it can to the eager sellers(s).

[spectoacc] 07/10/2016 11:55

Should be up not down today IMO - buyback continuing apace, possibility of hard Brexit, another dive in the £. Good job I'm a medium-term holder who doesn't check the price many times each day ;)

[gliderpilot2002] 06/10/2016 12:24

There was a big seller today at 1040. They may have more to sell.

[skyship] 06/10/2016 11:18

Another one with substantial Dublin holdings is that dramatic underperformer UAI. But they recently broke out of their 12month downtrend when they fell all the way back from 290p (the NAV value) to nigh on 140p!

Recently recovered to 190p, but have pulled back to the establishing upward trendline and now look a good buy ahead of the Interims in 2weeks time. They will confirm a post Brexit NAV to end August, so should be an interesting Statement.


free stock charts from uk.advfn.com

[spectoacc] 06/10/2016 07:30

Another decent chunk bought back. @Lucky - KWE is mainly commercial, also benefiting from £'s fall & perhaps "hard Brexit", with their substantial Dublin holdings.

[luckymouse] 05/10/2016 17:45

KWE was lagging behind the other Brexit 'V' shape prop recoveries so the relative sector discount prob spotted by the mgrs & acted upon - being mainly residential & not commercial helps - cant complain - wish they all did that!

next main resistance at c.1120

[hpcg] 05/10/2016 15:54

Given the supply at 1035 I thought it might hang around there a bit longer, but it has crept up.

[spectoacc] 05/10/2016 08:18

250,000 shares bought yesterday; having started slowly, they're now not messing around.

[mad foetus] 04/10/2016 20:10

That was what made me pile into SVI at 510 back in springtime: they were buying back and cancelling daily. Literally giving sweets out.

[luckymouse] 04/10/2016 19:45

yep - new buyback programme in an oversold is a good play

[hpcg] 04/10/2016 11:22

Remind me to pile on the spread bets next time a company with cash and a discount to NAV announces a buy back. Very nice trade, and further to run. If the buybacks provide medium term support then I can even hold for the dividends.

[spectoacc] 04/10/2016 07:27

Finally! 13,300 at £10.15.

[mad foetus] 30/9/2016 10:27

Interesting that no buy backs have been reported yet - just the threat of them has been enough to narrow the discount.

[hpcg] 29/9/2016 10:21

Actually, just whacked in a load of spread bets as its difficult to see the price going down from here.

[hpcg] 29/9/2016 10:12

I bought some more yesterday, though I do intend to flip them to the company to reduce my basis. I almost did the day before. Probably; the market is still reaching for yield. I take the RNSs for the Blackrock holding to mean that someone is shorting, so even the threat of a buyback might cause the discount to close somewhat.

djderry - A cap at about 90% would seem a reasonable target, which would be a price of circa 1110, still well north of here.