Kennedy Wilson Share Discussion Threads

[djderry] 05/5/2017 23:03

With the update showing good progress I think it's clear that there is a disconnect between the proposed take out price and the intrinsic value of our company.With the KW shareprice having weakened we really need a better offer,ideally with a cash component.

[mad foetus] 05/5/2017 14:10

I agree with that and the share price post the announcement means there isn't much upside in going ahead.

[hpcg] 05/5/2017 10:15

Continues to throw out good reports - obviating any particular requirement for corporate action IMO.

[mad foetus] 02/5/2017 12:53

I think GS have a big short position here. May be a battle between them and the other GS, George soros

[mad foetus] 02/5/2017 10:30

Yes travelling today so couldn't post to link thanks

[jeff h] 02/5/2017 10:19

I think this is what MF refers to:-

[mad foetus] 02/5/2017 09:22

Thanks Charlie. I think something that returns 3-5% below a fair NAV would be acceptable, but any less than that really won't fly. Most investors here are happy to take the dividend, which should actually increase as properties are renovated and new leases agreed. I saw in the Irish Times an article saying that the US investors are not happy as they think KW (US) is already trading at a big discount to NAV and don't want discounted shares being given away.

[spectoacc] 02/5/2017 09:13

Excellent. Liked this part:

"We urge the Board of Directors to honor their fiduciary duties and conduct a strategic review of all alternatives available to KWE, including a cash sale to unaffiliated third parties and an orderly liquidation of the Company over time. A more robust strategic review has the potential to attract additional value-enhancing offers and thus allow KWE shareholders to make a more informed decision as to the intrinsic value of their shares. "

[charlie] 02/5/2017 09:07

Quantum Fund (Soros) letter to Board opposing the deal!

[mad foetus] 28/4/2017 16:50

No deal and either start selling properties to reduce NAV or increase dividends. Like hpcg I'm not too bothered, happy to take 48p pa in divs and hold on. Value will out.

[spectoacc] 28/4/2017 16:32

Seems to be a Catch-22 here - if offer improved (as it should be, to NAV at least) then US parent falls, and offer worth less.

Partial cash alternative perhaps?

[hpcg] 28/4/2017 11:27

mf - Price action is saying no deal IMO, but I still don't understand the logic of selling the shares as still a long way below NAV, and likely more so come the next update. As I've said, I'll live with the discount.

[mad foetus] 28/4/2017 09:47

I'm not seeing much logic in the share price here. I thought I'd seems most things but am a bit stumped for an explanation.

[poacher45] 28/4/2017 08:50

Kennedy Wilson in USA due an update on May 4th. Probably a meeting with annalists will then get there shareprice back on track.

[mad foetus] 28/4/2017 08:40

Drop Mary Ricks an email. I think a lot of holders don't want to end up with US shares and I imagine the US shareholders are not that happy with the effect of the announcement on the US share price.

[spectoacc] 28/4/2017 07:05

Strong t/s, not sure if they're just rubbing our noses in it? Eg:

"KWE DELIVERS 270,000 SQ FT OF LEASE TRANSACTIONS AT RENTS
17% AHEAD OF PREVIOUS PASSING
Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company that invests in real estate across the UK, Ireland, Spain and Italy, announces strong leasing momentum across key investments, completing significant rent reviews at 111 Buckingham Palace Road, London, SW1 and new leases across Leavesden Park, Watford and Stillorgan Shopping Centre, Dublin 18 in Ireland, covering c. 270,000 sq ft and delivering an uplift of 17% ahead of previous passing rents and 3% ahead of valuers' ERVs."

[mad foetus] 26/4/2017 11:26

I only just realised the AGM was today, might have been worth turning up. I'm not sure it is a fait accompli. I know a few of the board personally and may try to bump into them to discuss. The discount to NAV is intolerable but ultimately the solution is to sell properties and return the proceeds to investors. As it is, the 1170 that was the strike price on Monday has already dropped by £1. The trading update next week may be interesting, but I am not sure KW are committed to the scheme of arrangement, I suspect they just want to see the market recognise the value in the company.

[spectoacc] 26/4/2017 11:18

Be interesting to see what the major shareholders make of it, but considering THE major shareholder, suspect it's a fait accompli.

[hpcg] 26/4/2017 09:55

I'll be honest, I'm voting against if the nominal exchange is too large a discount to the GBP NAV. I can quite happily live with the discount on the market as I am being paid whilst I wait.

[skyship] 26/4/2017 09:30

Back to 1065, still a good result for you being on the receiving end of a bid - long time since I've had that.

Also a very good result for us both at UAI; and LSR too doing well YTD.

Now just need PCA to pick up on the May Update and June finals. The 5% Yield and 16.3% discount provides obvious value, especially as the stats may be better than that on both counts...

[mad foetus] 26/4/2017 08:08

Also, the US share price has dropped a bit the last couple of days and the strike price is now closer to 1100p. I am not sure why we would want to agree a deal at a discount to NAV: surely realising the property is a better bet?

[bench2] 25/4/2017 10:15

Thanks hpcg ........ The other consideration is that REITS in the USA tend to trade close to NAV , so by accepting the KW paper we lose a pre bid 5% UK div yield @960p , or 4.3% at todays price of 1110p in exchange for a pre witholding tax yield of 3.5% on KW Holdgs . I prefer holding UK / European Propcos , as the discount to NAV provides a margin of safety . Reading the offer document we have a long wait as the deal will not close until Q3 2017

[hpcg] 25/4/2017 10:02

bench2 - an ISA can hold any stock from any recognised exchange anywhere in the world. To all intents and purposes this is just about all exchanges as even TSX-V is allowed, and that has the shonkiest corporate governance going. The downside of an ISA is that for the US dividends get stung by 15% withholding tax (lots of countries have a withholding tax on divis, Norway, Spain, France, Germany). On the other hand because a SIPP is a retirement account no withholding tax is charged. So you have no need to sell, but it may change your calculus.

As you say currency becomes a consideration, and stronger Sterling is a possibility IMO, but by no means a certainty.

[asmodeus] 25/4/2017 09:54

Also see hpcg (220) US withholding tax of 15% will apply to divs.

[bench2] 25/4/2017 09:29

If like me your KWE is held in a self select ISA and we stay with KWE , collect the div and accept the all share offer then I think we have about 3 months to sell out of KW Holdings ... as I do not think we will be allowed to keep a US listed stock in an ISA .... Any views ? ... We also move to a dollar based holding and so have an FX risk if sterling goes up