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Q1-16 Business Update

5 May 2016

KWE poised to unlock further portfolio NOI growth.

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 Q1 Business Update for the period from 1 January 2016 to 31 March 2016 (the “Period”).

Highlights:

  • Total portfolio value1 stands at £2,773.0 million across 287 properties including two loan portfolios generating annualised NOI of £152.9 million
  • Property portfolio occupancy of 95.8% with WAULT of 7.3 years (9.3 to expiry)
  • Asset management contracted on £0.6 million of incremental annualised NOI in the Period, primarily from commercial lease transactions
  • Group net debt of £1,074.9 million with a weighted average interest rate of 2.8%, a weighted average term to maturity of 6.2 years and an LTV of 38.8%
  • Acquisitions of £19.1 million completed in the Period with a further £143.5 million of acquisitions completed post Period end, reflecting an overall blended yield on cost of 5.8% on 2016 acquisitions and a portfolio value1 of £2,920.6 million
  • Remain on track to deliver £300 million of disposals by June 2016 – sales of £143.9 million completed in the Period taking total disposals at Period end to £268.5 million
  • Tapped KWE’s 2025 €400 million unsecured bonds by a further €150 million (£118.6 million), increasing the bonds to a benchmark size of €550 million
  • Quarterly interim dividend remains at 12.0 pence per share, on track to deliver an annualised 48.0 pence per share for 2016

Charlotte Valeur, Chair of Kennedy Wilson Europe Real Estate Plc, commented: “KWE remains on track to deliver the significant dividend improvement announced at its full year results. The Board is pleased to announce a further 12.0 pence per share to be paid in Q2-16, moving towards the 48.0 pence per share annualised target for 2016, a 37% increase over 2015 and reflecting an attractive prospective dividend yield of 4.5%. An important milestone was also achieved with credit investors, as KWE recently tapped its 2025 unsecured Euro bonds by a further €150 million, improving the liquidity of the bonds by increasing the series to a benchmark size.”

Mary Ricks, President and CEO of Kennedy Wilson Europe, added: “2016 will be a year of significant asset management for KWE. With a strong level of rent review activity, we have a good opportunity to deliver material organic NOI growth by narrowing the gap between reversionary in place rents and ERVs.

“Our portfolio remains in a robust position with good occupational demand across our core sectors and geographies. We also have an ample level of liquidity for acquisitions should we wish to capitalise on any potential market dislocations.”

 

1. Portfolio value is based on valuation by external valuers CBRE & Colliers (for direct property portfolio) and Duff & Phelps (for loan portfolio) at 31-Dec-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 7123 5577
ir@kennedywilson.eu

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