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Q3-15 Business Update

5 November 2015

KWE DELIVERS CONTINUED GROWTH ACROSS ALL OPERATING METRICS 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 Q3 Business Update for the period from 1 July 2015 to 30 September 2015 (the “Period”).

 

Highlights:

  • Strong asset management progress contracting £2.0 million of incremental
    annualised NOI in the Period, with 74 leasing transactions across 586,700 sq ft
  • £289.0 million of acquisitions completed in the Period, reflecting a blended yield
    on cost of 7.7% and an acquisition capital value of c. £168 psf
  • Property portfolio occupancy of 96.4% with WAULT of 7.6 years (9.5 to expiry)
  • Total portfolio value1 stands at £2,525.9 million across 301 properties and four loan portfolios generating annualised NOI of £148.6 million
  • Group net debt of £960.5 million with a weighted average interest rate of 2.8%, a weighted average term to maturity of 5.1 years and an LTV of 38.0%
  • Post Period end, made further acquisitions of £18.4 million, reflecting a blended yield
    on cost of 5.7%; and exchanged on an additional £137.0 million (€185.5 million) following KWE’s debut investment in Italy, at a blended yield on cost of 6.3%
  • Post Period end, contracted NOI to grow by a further 12.5% to £167.2 million through annualised NOI from aggregate acquisitions of £10.1 million and contracted annualised uplifts of £8.5 million; portfolio value stands at £2,681.3 million
  • £95.7 million of disposals completed or substantially progressed, year-to-date, including deals exchanged and under offer, which is expected to generate an unlevered return on capital of 21.8%, remaining on track to deliver £300 million of disposals
  • Quarterly interim dividend remains at 10.0 pence per share, or 40.0 pence per share annualised; representing a YTD coverage ratio of 1.4x


Charlotte Valeur, Chair of Kennedy Wilson Europe Real Estate Plc, commented:
“The business continues to make material progress securing robust cash flows to underpin the dividend and drive capital growth. The Board has maintained the fully covered quarterly interim dividend at 10.0 pence per share (40.0 pence per share annualised) to reflect the balance between our strong cash flows from recent acquisitions and shorter-term income on redevelopment plays, trading assets and our disposal programme.”

Mary Ricks, President and CEO of Kennedy Wilson Europe, added: “Having built a portfolio of critical mass, KWE is now delivering strong quarter-on-quarter performance with plenty more to come from both our existing and contracted assets. It is particularly pleasing to see the level of NOI growth being generated through asset management activities, reflective of both the success of our acquisition strategy and the property skills inherent in our business.

“The existing portfolio offers numerous value enhancing opportunities and we look forward to building on the success we have achieved to date.”

1. Portfolio value is based on valuation by external valuers CBRE (for direct property portfolio) and Duff & Phelps (for loan portfolio) at 30-Jun-15 adjusted for acquisitions, capital expenditure and disposals in the Period; the investment portfolio is revalued on a semi-annual basis, at 30 June and 31 December each year, by third party external valuers appointed by the Group

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