Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Kennedy-Wilson Holdings, Inc. | q2-20128xk.htm |
| EX-99.1 - PRESS RELEASE, DATED AUGUST 6, 2012. - Kennedy-Wilson Holdings, Inc. | q22012earningrelease.htm |
Exhibit 99.2
Kennedy-Wilson Holdings, Inc.
Second Quarter 2012
Supplemental Financial Information
Kennedy-Wilson Holdings, Inc.
Supplemental Financial Information
For the Quarter Ended June 30, 2012
TABLE OF CONTENTS
Note about Non-GAAP 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 Holdings, Inc. (Kennedy Wilson) has provided certain information, which includes non-GAAP financial measures (pro forma consolidated statements of income or operations, EBITDA and Adjusted EBITDA). Such information is reconciled to its closest GAAP measure in accordance with the rules of the Securities and Exchange Commission and is included within this presentation. 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 Kennedy Wilson. 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.
Kennedy-Wilson Holdings, Inc.
Pro Forma Consolidated Statements of Operations (Non-GAAP)
Three months ended June 30, | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Consolidated | Pro Rata Unconsolidated Investments | Pro Forma Total | Consolidated | Pro Rata Unconsolidated Investments | Pro Forma Total | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Management and leasing fees | $ | 10,232,000 | $ | — | $ | 10,232,000 | $ | 4,946,000 | $ | — | $ | 4,946,000 | ||||||||||||
Commissions | 2,401,000 | — | 2,401,000 | 2,609,000 | — | 2,609,000 | ||||||||||||||||||
Sale of real estate | — | 43,600,000 | 43,600,000 | — | 25,009,000 | 25,009,000 | ||||||||||||||||||
Rental and other income | 1,477,000 | 16,123,000 | 17,600,000 | 955,000 | 14,940,000 | 15,895,000 | ||||||||||||||||||
Interest income | — | 5,883,000 | 5,883,000 | — | 3,140,000 | 3,140,000 | ||||||||||||||||||
Total revenue | 14,110,000 | 65,606,000 | 79,716,000 | 8,510,000 | 43,089,000 | 51,599,000 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Commission and marketing expenses | 1,340,000 | — | 1,340,000 | 736,000 | — | 736,000 | ||||||||||||||||||
Compensation and related expenses | 10,294,000 | 100,000 | 10,394,000 | 8,257,000 | — | 8,257,000 | ||||||||||||||||||
Cost of real estate sold | — | 38,200,000 | 38,200,000 | — | 22,420,000 | 22,420,000 | ||||||||||||||||||
General and administrative | 4,888,000 | 200,000 | 5,088,000 | 3,040,000 | — | 3,040,000 | ||||||||||||||||||
Depreciation and amortization | 977,000 | 4,000,000 | 4,977,000 | 463,000 | 3,984,000 | 4,447,000 | ||||||||||||||||||
Rental operating expenses | 921,000 | 5,700,000 | 6,621,000 | 642,000 | 6,649,000 | 7,291,000 | ||||||||||||||||||
Total operating expenses | 18,420,000 | 48,200,000 | 66,620,000 | 13,138,000 | 33,053,000 | 46,191,000 | ||||||||||||||||||
Equity in joint venture income | 5,108,000 | (5,108,000 | ) | — | 2,551,000 | (2,551,000 | ) | — | ||||||||||||||||
Interest income from loan pool participations and notes receivable | 2,876,000 | (2,876,000 | ) | — | 2,241,000 | (2,241,000 | ) | — | ||||||||||||||||
Operating income | 3,674,000 | 9,422,000 | 13,096,000 | 164,000 | 5,244,000 | 5,408,000 | ||||||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||||||
Interest income | 1,207,000 | (1,207,000 | ) | — | 401,000 | (401,000 | ) | — | ||||||||||||||||
Carried interest on realized investment | — | 500,000 | 500,000 | — | — | — | ||||||||||||||||||
Remeasurement gain | — | — | — | 6,348,000 | — | 6,348,000 | ||||||||||||||||||
Foreign currency exchange gain | 38,000 | — | 38,000 | — | — | — | ||||||||||||||||||
Interest expense | (7,054,000 | ) | (7,715,000 | ) | (14,769,000 | ) | (6,228,000 | ) | (4,843,000 | ) | (11,071,000 | ) | ||||||||||||
Other non-operating expenses | — | (1,000,000 | ) | (1,000,000 | ) | — | — | — | ||||||||||||||||
(Loss) income before benefit from (provision for) income taxes | (2,135,000 | ) | — | (2,135,000 | ) | 685,000 | — | 685,000 | ||||||||||||||||
Benefit from (provision for) income taxes | 1,138,000 | — | 1,138,000 | (172,000 | ) | — | (172,000 | ) | ||||||||||||||||
(Loss) income from continuing operations | $ | (997,000 | ) | $ | — | $ | (997,000 | ) | $ | 513,000 | $ | — | $ | 513,000 | ||||||||||
3
Kennedy-Wilson Holdings, Inc.
Pro Forma Consolidated Statements of Income (Non-GAAP)
Six months ended June 30, | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Consolidated | Pro Rata Unconsolidated Investments | Pro Forma Total | Consolidated | Pro Rata Unconsolidated Investments | Pro Forma Total | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Management and leasing fees | $ | 18,973,000 | $ | — | $ | 18,973,000 | $ | 9,957,000 | $ | — | $ | 9,957,000 | ||||||||||||
Commissions | 4,020,000 | — | 4,020,000 | 5,170,000 | — | 5,170,000 | ||||||||||||||||||
Sale of real estate | — | 58,800,000 | 58,800,000 | 417,000 | 31,135,000 | 31,552,000 | ||||||||||||||||||
Rental and other income | 2,947,000 | 33,924,000 | 36,871,000 | 1,693,000 | 33,422,000 | 35,115,000 | ||||||||||||||||||
Interest income | — | 8,138,000 | 8,138,000 | — | 6,379,000 | 6,379,000 | ||||||||||||||||||
Total revenue | 25,940,000 | 100,862,000 | 126,802,000 | 17,237,000 | 70,936,000 | 88,173,000 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Commission and marketing expenses | 2,305,000 | — | 2,305,000 | 1,373,000 | — | 1,373,000 | ||||||||||||||||||
Compensation and related expenses | 19,294,000 | 500,000 | 19,794,000 | 16,089,000 | — | 16,089,000 | ||||||||||||||||||
Cost of real estate sold | — | 50,100,000 | 50,100,000 | 397,000 | 27,152,000 | 27,549,000 | ||||||||||||||||||
General and administrative | 8,557,000 | 300,000 | 8,857,000 | 5,853,000 | — | 5,853,000 | ||||||||||||||||||
Depreciation and amortization | 1,914,000 | 7,900,000 | 9,814,000 | 897,000 | 7,709,000 | 8,606,000 | ||||||||||||||||||
Rental operating expenses | 1,791,000 | 11,800,000 | 13,591,000 | 1,053,000 | 12,505,000 | 13,558,000 | ||||||||||||||||||
Total operating expenses | 33,861,000 | 70,600,000 | 104,461,000 | 25,662,000 | 47,366,000 | 73,028,000 | ||||||||||||||||||
Equity in joint venture income | 10,624,000 | (10,624,000 | ) | — | 7,807,000 | (7,807,000 | ) | — | ||||||||||||||||
Interest income from loan pool participations and notes receivable | 3,414,000 | (3,414,000 | ) | — | 4,787,000 | (4,787,000 | ) | — | ||||||||||||||||
Operating income | 6,117,000 | 16,224,000 | 22,341,000 | 4,169,000 | 10,976,000 | 15,145,000 | ||||||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||||||
Interest income | 2,324,000 | (2,324,000 | ) | — | 667,000 | (667,000 | ) | — | ||||||||||||||||
Carried interest on realized investment | — | 2,400,000 | 2,400,000 | — | — | — | ||||||||||||||||||
Remeasurement gain | — | — | — | 6,348,000 | — | 6,348,000 | ||||||||||||||||||
Gain on sale of marketable securities | 2,931,000 | — | 2,931,000 | — | — | — | ||||||||||||||||||
Foreign currency exchange loss | (74,000 | ) | — | (74,000 | ) | — | — | — | ||||||||||||||||
Interest expense | (13,224,000 | ) | (15,000,000 | ) | (28,224,000 | ) | (7,757,000 | ) | (10,309,000 | ) | (18,066,000 | ) | ||||||||||||
Other non-operating expenses | — | (1,300,000 | ) | (1,300,000 | ) | — | — | — | ||||||||||||||||
(Loss) income before benefit from (provision for) income taxes | (1,926,000 | ) | — | (1,926,000 | ) | 3,427,000 | — | 3,427,000 | ||||||||||||||||
Benefit from (provision for) income taxes | 2,621,000 | — | 2,621,000 | (835,000 | ) | — | (835,000 | ) | ||||||||||||||||
Income from continuing operations | $ | 695,000 | $ | — | $ | 695,000 | $ | 2,592,000 | $ | — | $ | 2,592,000 | ||||||||||||
4
Kennedy-Wilson Holdings, Inc.
Adjusted EBITDA
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net (loss) income | $ | (997,000 | ) | $ | 513,000 | $ | 485,000 | $ | 2,592,000 | |||||||
Non-GAAP adjustments: | ||||||||||||||||
Add back: | ||||||||||||||||
Interest expense | 7,054,000 | 6,228,000 | 13,224,000 | 7,757,000 | ||||||||||||
Kennedy Wilson's share of interest expense included in investment in joint ventures and loan pool participations | 7,715,000 | 4,843,000 | 15,000,000 | 10,309,000 | ||||||||||||
Depreciation and amortization | 977,000 | 463,000 | 1,914,000 | 897,000 | ||||||||||||
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures | 4,000,000 | 3,984,000 | 7,900,000 | 7,709,000 | ||||||||||||
(Benefit from) provision for income taxes | (1,138,000 | ) | 172,000 | (2,621,000 | ) | 835,000 | ||||||||||
EBITDA | 17,611,000 | 16,203,000 | 35,902,000 | 30,099,000 | ||||||||||||
Stock based compensation | 1,207,000 | 1,298,000 | 2,078,000 | 2,465,000 | ||||||||||||
Adjusted EBITDA | $ | 18,818,000 | $ | 17,501,000 | $ | 37,980,000 | $ | 32,564,000 | ||||||||
5
Kennedy-Wilson Holdings, Inc.
EBITDA by Segment
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Investments | ||||||||||||||||
Rental and other income and sale of real estate | $ | 1,477,000 | $ | 955,000 | $ | 2,947,000 | $ | 2,110,000 | ||||||||
Operating expenses | (6,305,000 | ) | (4,661,000 | ) | (11,821,000 | ) | (9,324,000 | ) | ||||||||
Equity in income of joint ventures | 5,108,000 | 2,551,000 | 10,624,000 | 7,807,000 | ||||||||||||
Income from loan pool participations and notes receivable | 2,876,000 | 2,241,000 | 3,414,000 | 4,787,000 | ||||||||||||
Operating income | 3,156,000 | 1,086,000 | 5,164,000 | 5,380,000 | ||||||||||||
Remeasurement gain | — | 6,348,000 | — | 6,348,000 | ||||||||||||
Gain on sale of marketable securities | — | — | 2,931,000 | — | ||||||||||||
Realized foreign currency exchange gain (loss) | 38,000 | — | (74,000 | ) | — | |||||||||||
Interest income - related party | 1,182,000 | — | 2,269,000 | — | ||||||||||||
Interest expense | (159,000 | ) | (74,000 | ) | (317,000 | ) | (151,000 | ) | ||||||||
Income from continuing operations | 4,217,000 | 7,360,000 | 9,973,000 | 11,577,000 | ||||||||||||
Income from discontinued operations, net of income taxes | — | — | 2,000 | — | ||||||||||||
Loss from sale of real estate, net of income taxes | — | — | (212,000 | ) | — | |||||||||||
Net income | 4,217,000 | 7,360,000 | 9,763,000 | 11,577,000 | ||||||||||||
Add back: | ||||||||||||||||
Interest expense | 159,000 | 74,000 | 317,000 | 151,000 | ||||||||||||
Kennedy Wilson's share of interest expense included in investment in joint ventures and loan pool participation | 7,715,000 | 4,843,000 | 15,000,000 | 10,309,000 | ||||||||||||
Depreciation and amortization | 860,000 | 380,000 | 1,682,000 | 739,000 | ||||||||||||
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures | 4,000,000 | 3,984,000 | 7,900,000 | 7,709,000 | ||||||||||||
EBITDA | $ | 16,951,000 | $ | 16,641,000 | $ | 34,662,000 | $ | 30,485,000 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Services | ||||||||||||||||
Management and leasing fees and commissions | $ | 12,633,000 | $ | 7,555,000 | $ | 22,993,000 | $ | 15,127,000 | ||||||||
Operating expenses | (9,096,000 | ) | (6,077,000 | ) | (16,733,000 | ) | (11,857,000 | ) | ||||||||
Operating income | 3,537,000 | 1,478,000 | 6,260,000 | 3,270,000 | ||||||||||||
Net income | 3,537,000 | 1,478,000 | 6,260,000 | 3,270,000 | ||||||||||||
Add back: | ||||||||||||||||
Depreciation and amortization | 34,000 | 30,000 | 67,000 | 65,000 | ||||||||||||
EBITDA | $ | 3,571,000 | $ | 1,508,000 | $ | 6,327,000 | $ | 3,335,000 | ||||||||
6
Kennedy-Wilson Holdings, Inc.
Consolidated Balance Sheets
June 30, 2012 | December 31, 2011 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 86,494,000 | $ | 115,926,000 | ||||
Accounts receivable | 3,465,000 | 3,114,000 | ||||||
Accounts receivable — related parties | 16,126,000 | 15,612,000 | ||||||
Notes receivable | 11,420,000 | 7,938,000 | ||||||
Notes receivable — related parties | 40,101,000 | 33,269,000 | ||||||
Real estate, net | 112,770,000 | 115,880,000 | ||||||
Investments in joint ventures | 360,781,000 | 343,367,000 | ||||||
Investment in loan pool participations | 121,328,000 | 89,951,000 | ||||||
Marketable securities | 10,326,000 | 23,005,000 | ||||||
Other assets | 20,042,000 | 20,749,000 | ||||||
Goodwill | 23,965,000 | 23,965,000 | ||||||
Total assets | $ | 806,818,000 | $ | 792,776,000 | ||||
Liabilities | ||||||||
Accounts payable | $ | 672,000 | $ | 1,798,000 | ||||
Accrued expenses and other liabilities | 22,134,000 | 24,262,000 | ||||||
Accrued salaries and benefits | 4,717,000 | 14,578,000 | ||||||
Deferred tax liability | 20,592,000 | 18,437,000 | ||||||
Senior notes payable | 249,411,000 | 249,385,000 | ||||||
Mortgage loans payable | 30,748,000 | 30,748,000 | ||||||
Borrowings under line of credit | 34,189,000 | — | ||||||
Junior subordinated debentures | 40,000,000 | 40,000,000 | ||||||
Total liabilities | 402,463,000 | 379,208,000 | ||||||
Equity | ||||||||
Common stock | 6,000 | 5,000 | ||||||
Additional paid-in capital | 405,380,000 | 407,335,000 | ||||||
(Accumulated deficit) retained earnings | (2,152,000 | ) | 9,708,000 | |||||
Accumulated other comprehensive income | 9,501,000 | 5,035,000 | ||||||
Shares held in treasury at cost | (9,856,000 | ) | (11,848,000 | ) | ||||
Total Kennedy-Wilson Holdings, Inc. shareholders' equity | 402,879,000 | 410,235,000 | ||||||
Noncontrolling interests | 1,476,000 | 3,333,000 | ||||||
Total equity | 404,355,000 | 413,568,000 | ||||||
Total liabilities and equity | $ | 806,818,000 | $ | 792,776,000 | ||||
7
Kennedy-Wilson Holdings, Inc.
Capitalization Summary
June 30, 2012 | December 31, 2011 | |||||||
Market Data | ||||||||
Common stock price per share | $ | 14.01 | $ | 10.58 | ||||
Common stock and convertible preferred stock: | ||||||||
Basic shares outstanding (1) | 55,117,598 | 51,825,998 | ||||||
Series A mandatory convertible preferred (2) | 8,058,018 | 8,058,018 | ||||||
Series B mandatory convertible preferred (3) | 3,042,056 | 3,042,056 | ||||||
Total common stock and convertible preferred stock | 66,217,672 | 62,926,072 | ||||||
Equity Market Capitalization | $ | 927,709,585 | $ | 665,757,842 | ||||
Debt | ||||||||
Senior notes payable (4) | 250,000,000 | 250,000,000 | ||||||
Borrowings under line of credit (5) | 34,189,000 | — | ||||||
Mortgage loans payable | 30,748,000 | 30,748,000 | ||||||
Junior subordinated debentures | 40,000,000 | 40,000,000 | ||||||
Total debt | $ | 354,937,000 | $ | 320,748,000 | ||||
Noncontrolling interest | 1,476,000 | 3,333,000 | ||||||
Total Capitalization | $ | 1,284,122,585 | $ | 989,838,842 | ||||
Less: cash and cash equivalents | (86,494,000 | ) | (115,926,000 | ) | ||||
Total Enterprise Value | $ | 1,197,628,585 | $ | 873,912,842 | ||||
Warrants outstanding (6) | 5,934,144 | 6,435,644 | ||||||
(1) In July 2012, the Company issued 8.6 million shares of common stock to institutional investors resulting in gross proceeds of $112.1 million.
(2) $100 million of Series A mandatory convertible preferred with a mandatory conversion date of May 19, 2015 and a conversion rate of $12.41 per share.
(3) $32.5 million of Series B mandatory convertible preferred with a mandatory conversion date of November 3, 2018 and a conversion rate of $10.70 per share.
(4) Represents principal balance of senior notes.
(5) Represents line of credit balance which was fully paid off subsequent to June 30, 2012.
(6) The warrants carry an exercise price of $12.50 and expire on November 14, 2014.
8
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Investment Account Detail
(in millions)
6/30/2012 | December 31, 2011 | |||||||
Investment in joint ventures | $ | 360.8 | $ | 343.4 | ||||
Real estate | 112.8 | 115.9 | ||||||
Mortgage debt | (30.7 | ) | (30.7 | ) | ||||
Notes receivable | 51.5 | 41.2 | ||||||
Loan pool participations | 121.3 | 90.0 | ||||||
Marketable securities | 10.3 | 23.0 | ||||||
Total | $ | 626.0 | $ | 582.8 | ||||
Investment Account Detail at June 30, 2012
Multifamily | Loans Secured by Real Estate | Commercial | Residential | Other | Total | ||||||||||||||||||
Western U.S. | $ | 128.7 | $ | 153.0 | $ | 53.5 | $ | 80.4 | $ | — | $ | 415.6 | |||||||||||
Japan | 105.2 | — | 9.0 | — | — | 114.2 | |||||||||||||||||
United Kingdom and Ireland | 15.5 | 62.3 | — | — | 10.3 | 88.1 | |||||||||||||||||
Other | 0.4 | — | 2.2 | 0.2 | 5.3 | 8.1 | |||||||||||||||||
Total | $ | 249.8 | $ | 215.3 | $ | 64.7 | $ | 80.6 | $ | 15.6 | $ | 626.0 | |||||||||||
Investment Account Detail at December 31, 2011
Multifamily | Loans Secured by Real Estate | Commercial | Residential | Other | Total | ||||||||||||||||||
Western U.S. | $ | 131.3 | $ | 106.5 | $ | 52.3 | $ | 78.4 | $ | — | $ | 368.5 | |||||||||||
Japan | 112.1 | — | 9.3 | — | — | 121.4 | |||||||||||||||||
United Kingdom and Ireland | — | 60.0 | — | — | 23.0 | 83.0 | |||||||||||||||||
Other | 0.2 | 4.8 | 0.7 | 0.1 | 4.1 | 9.9 | |||||||||||||||||
Total | $ | 243.6 | $ | 171.3 | $ | 62.3 | $ | 78.5 | $ | 27.1 | $ | 582.8 | |||||||||||
9
Kennedy-Wilson Holdings, Inc.
Operating Performance Summary: Multifamily
($ in millions)
Net Operating Income (NOI) | |||||||||||||||||||||||
# of Properties | # of Units | Occupancy (1) | QTD Annualized (2) | Debt (3) | Pre-Promote Ownership% | Book Equity (1) | |||||||||||||||||
Western U.S. | 29 | 11,118 | 93.7 | % | $ | 98.6 | $ | 1,180.1 | 28.6 | % | $ | 128.7 | |||||||||||
Japan (4) | 50 | 2,410 | 92.9 | 30.3 | 334.4 | 40.9 | 105.2 | ||||||||||||||||
United Kingdom and Ireland (4) | 1 | 210 | 98.0 | 2.9 | — | 30.0 | 15.5 | ||||||||||||||||
Other | 3 | 376 | 82.4 | 1.1 | 5.8 | 9.3 | 0.4 | ||||||||||||||||
Total | 83 | 14,114 | 93.3 | % | $ | 132.9 | $ | 1,520.3 | 31.3 | % | $ | 249.8 | |||||||||||
(1) As of June 30, 2012.
(2) Represents current quarter NOI on an annualized basis.
(3) Debt represents 100% debt balance against properties as of June 30, 2012.
(4) Estimated foreign exchange rates are ¥80 = $1 USD, £0.63 = $1 USD and €0.80 = $1 USD, related to NOI and debt.
10
Kennedy-Wilson Holdings, Inc.
Operating Performance Summary: Loan Purchases and Originations
($ in millions)
Loan Purchases
# of Loans (1) | Initial UPB (2) | # of Unresolved Loans | Total Resolutions | Current UPB | Pre-Promote KW Share of Current UPB (net of venture-level debt) | Venture-level Debt (3) | Pre-Promote Ownership% | KW Book Equity | ||||||||||||||||||||||||
Western U.S. | 103 | $ | 577.1 | 33 | $ | 352.9 | $ | 218.6 | $ | 81.3 | $ | 19.7 | 40.8 | % | $ | 67.8 | ||||||||||||||||
United Kingdom and Ireland (4) | 58 | 2,074.7 | 41 | 689.6 | 1,385.1 | 90.8 | 164.6 | 12.5 | 62.3 | |||||||||||||||||||||||
Total | 161 | $ | 2,651.8 | 74 | $ | 1,042.5 | $ | 1,603.7 | $ | 172.1 | $ | 184.3 | 16.4 | % | $ | 130.1 | ||||||||||||||||
Loan Originations
# of Loans | Current UPB | WAV Interest Rate | Venture-level Debt (3) | Pre-Promote Ownership% | KW Book Equity | |||||||||||||||
Western U.S. | 8 | $ | 85.2 | 12.4 | % | $ | — | 100.0 | % | $ | 85.2 | |||||||||
Total | 8 | $ | 85.2 | 12.4 | % | $ | — | 100.0 | % | $ | 85.2 | |||||||||
(1) Represents total number of loans at initial acquisition of respective pools.
(2) Unpaid Principal Balance.
(3) Venture-level debt represents 100% debt balance against loans as of June 30, 2012.
(4) Estimated foreign exchange rate is £0.63 = $1 USD. KW owns a 50% interest in an entity which in turn owns 25% of the loan pool. The entity has debt of $164.6 million as of June 30, 2012.
11
Kennedy-Wilson Holdings, Inc.
Operating Performance Summary: Commercial
($ in millions)
Net Operating Income (NOI) | |||||||||||||||||||||||
# of Properties | Total Sq. Ft. | Occupancy (1) | QTD Annualized (2) | Debt (3) | Pre-Promote Ownership% | Book Equity (1) | |||||||||||||||||
Western U.S. | 15 | 2,795,487 | 79.2 | % | $ | 30.8 | $ | 358.1 | 37.2 | % | $ | 53.5 | |||||||||||
Japan (4) | 1 | 9,633 | 100.0 | 0.5 | — | 78.2 | 9.0 | ||||||||||||||||
Other | 4 | 478,450 | 72.3 | 2.6 | 26.4 | 17.7 | 2.2 | ||||||||||||||||
Total | 20 | 3,283,570 | 78.3 | % | $ | 33.9 | $ | 384.5 | 36.3 | % | $ | 64.7 | |||||||||||
(1) As of June 30, 2012.
(2) Represents current quarter NOI on an annualized basis.
(3) Debt represents 100% debt balance against properties as of June 30, 2012, excluding $45.4 million of partner loans.
(4) Estimated foreign exchange rate is ¥80 = $1 USD related to NOI.
12
Kennedy-Wilson Holdings, Inc.
Operating Performance Summary: Residential and Other
($ in millions)
Residential
# of Investments | Total Units | Total Acres | Finished Lots | Pre-Promote Ownership% | KW Book Equity (1) | |||||||||||||
Western U.S. | 12 | 4 | 3,243 | 365 | 72.0 | % | $ | 80.4 | ||||||||||
Other | 1 | — | 50 | — | 3.8 | 0.2 | ||||||||||||
Total | 13 | 4 | 3,293 | 365 | 71.8 | % | $ | 80.6 | ||||||||||
Other
# of Investments | Pre-Promote Ownership% | KW Book Equity (1) | |||||||
United Kingdom and Ireland | 1 | 100.0 | % | $ | 10.3 | ||||
Other | 4 | 100.0 | 5.3 | ||||||
Total | 5 | 100.0 | % | $ | 15.6 | ||||
(1) As of June 30, 2012.
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Kennedy-Wilson Holdings, Inc.
Debt Schedule
($ in millions)
Consolidated Debt | Unconsolidated Asset Level Debt | Total Consolidated Debt + KW Share of Unconsolidated Asset Level Debt | |||||||||||||||||||||||||
Maturity | Unsecured Corporate Debt | Asset Level Debt | Total | Total | KW Share | Amount Due at Maturity Date (1) | |||||||||||||||||||||
2012 | $ | — | $ | — | $ | — | $ | 132.9 | $ | 44.1 | $ | 44.1 | $ | 41.9 | |||||||||||||
2013 | — | 4.4 | 4.4 | 123.7 | 53.7 | 58.1 | 46.3 | ||||||||||||||||||||
2014 | — | 0.2 | 0.2 | 300.9 | 97.2 | 97.4 | 58.0 | ||||||||||||||||||||
2015 | 34.2 | (2) | 0.3 | 34.5 | 188.6 | 54.7 | 89.2 | 70.7 | |||||||||||||||||||
2016 | — | 12.2 | 12.2 | 346.0 | 139.5 | 151.7 | 109.0 | ||||||||||||||||||||
2017 | — | 0.3 | 0.3 | 390.7 | 143.7 | 144.0 | 139.8 | ||||||||||||||||||||
2018 | — | 13.3 | 13.3 | 226.8 | 40.5 | 53.8 | 50.5 | ||||||||||||||||||||
2019 | 250.0 | (3) | — | 250.0 | 91.5 | 27.9 | 277.9 | 275.6 | |||||||||||||||||||
2020 | — | — | — | 100.7 | 28.0 | 28.0 | 26.1 | ||||||||||||||||||||
Thereafter | 40.0 | — | 40.0 | 156.7 | 41.9 | 81.9 | 80.9 | ||||||||||||||||||||
Total | $ | 324.2 | $ | 30.7 | $ | 354.9 | $ | 2,058.5 | $ | 671.2 | $ | 1,026.1 | $ | 898.8 | |||||||||||||
(1) Maturity dates do not reflect extension options.
(2) Represents line of credit balance which was fully paid off subsequent to June 30, 2012.
(3) Represents principal balance of senior notes.
Weighted average interest rate (KW Share): 5.4%
Weighted average remaining maturity in years (KW Share): 5.6 years
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