1,110.00p

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2015 Half-Year Results

6 August 2015

HALF-YEAR RESULTS FOR THE PERIOD ENDED 30 JUNE 2015 STRONG 9.1% NAV GROWTH AND 25% INCREASE IN QUARTERLY DIVIDEND. 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 unaudited half-year results for the period ended 30 June 2015 (the “Period”)

  30 June 2015 30 June 2014(1) Change (%)
Net operating income (“NOI”) (£m) 130.9 61.3 114
Net profit after taxation (£m) 149.3 24.2 517
EPRA earnings (£m) 25.5 2.8 811
EPRA earnings per share (p) 18.9 4.3 340
Basic earnings per share (p) 110.2 37.6 193
DPS paid (p) 15.0 - Na
Quarterly DPS announced (p) 10.0 2.0 400
       
       
  30 June 2015 31 December 2015 Change (%)
EPRA NAV (£m) 1,511.3 1,382.4 9.3
Basic NAV (£m) 1,513.1 1,389.9 8.9
EPRA NAV per share (p) 1,114.5 1,021.8 9.1
Basic NAV per share (p) 1,115.8 1,027.4 8.6
Valuation uplift (£m) 120.6 57.9 108
Net debt (£m) 689.5 111.6 518
Loan to value (LTV) (%) 31.1 7.5 23.6pp

 

Operational highlights in the Period:

  • Strong operational results with like-for-like portfolio valuation surplus of £104.5 million (+7.6%), like-for-like NOI growth +3.2%
  • Solid asset management progress contracting £5.0 million of annualised NOI in the Period, with 105 leasing transactions across 408,100 sq ft
  • Portfolio value at £2,218.8 million across 279 properties through acquisitions (£638.6 million across 173 properties and two loan portfolios, yield on cost of 7.1%2) and total valuation surplus of £120.6 million (+5.6%)
  • Took title to two office buildings converting loans to direct real estate worth £62.8 million

 Financial highlights in the Period:

  • +9.1% increase in EPRA NAV per share to 1,114.5 pence (Dec-14: 1,021.8 pence)
  • +25% increase in interim quarterly dividend to 10.0 pence per share or 40.0 pence per share annualised going forward; total of 15.0 pence per share, or £20.3 million of dividends paid in the Period
  • Successful issue of debut £300.0 million senior unsecured bond in June 2015 and simultaneous rating by Standard and Poors of BBB for both the Company and the bond

Post Period end achievements:

  • £228.4 million in acquisitions completed since 30 June 2015, including a portfolio of nine offices across the South East for £211 million reflecting a yield on cost of 8.0%, taking annualised NOI to £149.2 million and the portfolio value to £2,449.6 million


Charlotte Valeur, Chair of Kennedy Wilson Europe Real Estate Plc, commented: 
“These solid financial results demonstrate significant progress across the business both operationally and in delivering both NAV and earnings growth. The team continues to secure sustainable and cash flow accretive acquisition opportunities. As part of our total shareholder return strategy of income and capital growth, we have grown the quarterly interim dividend a further 25% over the previous quarter to 10.0 pence per share.”

Mary Ricks, President and CEO of Kennedy Wilson Europe, added: “Our active investment and asset management initiatives are bearing fruit with excellent first half operational metrics driving robust financial results with more to come. I’m particularly pleased with our ability to generate value across our like-for-like portfolio both in terms of NOI growth and our valuation surplus.

“A key milestone in the Period was securing our debut £300 million unsecured bond, which saw both the bond and the Company achieve a BBB rating from Standard & Poors, a fantastic achievement for a business as young as ours, allowing us to diversify our funding sources and extend our debt maturities.

“The team continues to source the right investment opportunities with value enhancing potential. The combination of our financing capacity and future disposal pipeline will allow us to recycle capital and deliver on our investment pipeline.”

 

Notes:

1. Period from date of incorporation on 23 December 2013 and ending on 30 June 2014

2. Excluding vacant assets and loans Pioneer Point (UK), Puerta del Sol and Postigo (Spain)

Leavesden Park, Watford, UK (1)

Investor enquiries
Juliana Weiss Dalton, CFA
Investor Relations Director,
Kennedy Wilson Europe
+44 (0) 20 7479 7429
ir@kennedywilson.eu

Press & media enquiries 
Dido Laurimore / Tom Gough
FTI Consulting
+44 (0) 20 3727 1000
kennedywilson@fticonsulting.com