Kennedy-Wilson Holdings Inc (KW) 2024 Q2 法說會逐字稿

Good day, and welcome to the Kennedy-Wilson second quarter 2024 earnings call and webcast. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Daven Bhavsar, Head of Investor Relations. Please go ahead.

美好的一天，歡迎來到甘迺迪威爾遜公司 2024 年第二季財報電話會議和網路廣播。（操作員說明）請注意此事件正在被記錄。我現在想將會議交給投資者關係主管 Daven Bhavsar。請繼續。

Thank you, and good morning. Thank you for joining us today. Today's call will be webcast live and will be archived for replay. The replay will be available phone for one week and by webcast for three months. Please see the Investor Relations website for more information. With me today are [Bill] McMorrow, CEO; Matt Windisch, President; Justin Enbody, CFO; and Mike Pegler, President of Europe.

謝謝你，早安。感謝您今天加入我們。今天的電話會議將進行網路直播，並將存檔以供重播。電話重播將持續一周，網路直播將持續三個月。請參閱投資者關係網站以了解更多資訊。今天和我在一起的是執行長 [Bill] McMorrow；馬特·溫迪施，總裁；賈斯汀‧恩博迪，財務長；和歐洲總裁麥克·佩格勒(Mike Pegler)。

On this call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. You can find a description of these items, along with the reconciliation of the most directly comparable GAAP financial measure and our second quarter 2024 earnings release, which is posted on the Investor Relations section of our website. Statements made during this call may include forward-looking statements.

在本次電話會議上，我們將參考某些非公認會計準則財務指標，包括調整後的 EBITDA 和調整後的淨利。您可以找到這些項目的描述，以及最直接可比較的 GAAP 財務指標和我們 2024 年第二季收益發布的調整表，這些資訊發佈在我們網站的投資者關係部分。本次電話會議期間發表的聲明可能包括前瞻性聲明。

Actual results may materially differ from forward-looking information discussed on this call due to the number of risks, uncertainties and other factors indicated in reports and filings with the Securities and Exchange Commission. I would now like to turn the call over to our Chairman and CEO, Bill McMorrow.

由於向美國證券交易委員會提交的報告和文件中指出的風險、不確定性和其他因素的數量，實際結果可能與本次電話會議中討論的前瞻性資訊有重大差異。我現在想將電話轉給我們的董事長兼執行長比爾·麥克莫羅 (Bill McMorrow)。

Thank you, Daven, and good morning, everybody, and thank you for joining our call. Yesterday, we reported our results in the second quarter and the first half of 2024, which highlighted improving operating fundamentals on our multifamily portfolio and solid progress on our key initiatives during what has been a challenging 24-month period of time for real estate, given that inflation rates were at a 40-year high and interest rates at a 22-year high.

謝謝達文，大家早安，謝謝您加入我們的電話會議。昨天，我們報告了2024 年第二季和上半年的業績，其中強調了我們多戶型投資組合的營運基本面的改善，以及在房地產行業充滿挑戰的24 個月期間，我們的關鍵舉措取得了紮實進展，因為通貨膨脹率達到 40 年來的最高水平，利率達到 22 年來的最高水平。

We saw continued momentum in Q2 within our investment management business and deployed $2 billion of new capital throughout the first half of the year. The deployment includes $1.7 billion through our credit platform, which fully related to the construction of new high quality market rate multifamily and student housing made to best in class sponsors and $300 million on multifamily and industrial acquisitions.

我們的投資管理業務在第二季度保持了持續的成長勢頭，並在上半年部署了 20 億美元的新資本。該部署包括透過我們的信貸平台提供的 17 億美元，完全與一流贊助商建造的新的高品質市場價格多戶住宅和學生住房有關，以及用於多戶住宅和工業收購的 3 億美元。

We also continue to finish and stabilize our development and lease up portfolio and in the quarter, stabilized five multifamily communities, which added $16 million to our estimated annual NOI. We have only two remaining active market rate developments. In total, our development and lease up portfolio is expected to add $70 million in estimated annual NOI upon stabilization.

我們也繼續完成並穩定我們的開發和租賃投資組合，並在本季度穩定了五個多戶社區，這為我們估計的年度 NOI 增加了 1600 萬美元。我們只剩下兩個活躍的市場利率發展。總的來說，我們的開發和租賃投資組合在穩定後預計年度 NOI 預計將增加 7,000 萬美元。

With our developments largely finishing, our capital spend on development has dropped from averaging $150 million per year in '22 and '23 to only $10 million remaining to be spent in the second half of '24. As a result of our Q2 activity, our estimated annual NOI grew by 5% to $485 million AUM, Assets Under Management, grew to $27 billion and is annualizing at a 16% growth rate and fee bearing capital grew to a record $8.7 billion with the ability to grow to $15 billion including $2.9 billion of future fundings from previously originated and closed construction loans and the investment of nondiscretionary capital that is available to invest.

隨著我們的開發工作基本完成，我們的開發資本支出已從 22 年和 23 年的平均每年 1.5 億美元下降到 24 年下半年僅剩 1,000 萬美元。由於我們第二季的活動，我們估計的年度 NOI 成長了 5%，達到 4.85 億美元，管理資產成長到 270 億美元，年化成長率為 16%，收費資本成長到創紀錄的 87 億美元，成長至150 億美元的能力，包括先前發放和已結束的建築貸款的29 億美元未來資金以及可用於投資的非全權投資。

Turning to market conditions, we have seen improving liquidity throughout the year, including several large portfolio transactions within the US apartment sector, which were recently completed or announced, highlighting the strong institutional demand for high-quality multifamily assets. While interest rates have been a headwind for real estate over the last few years, we've begun to see significant beneficial shifts.

就市場狀況而言，我們看到全年流動性有所改善，包括最近完成或宣布的美國公寓行業內的幾筆大型投資組合交易，凸顯了機構對優質多戶資產的強勁需求。雖然過去幾年利率一直是房地產的阻力，但我們已經開始看到重大的有利轉變。

In the US, the 10-year bond as most of you know, has declined by 100 basis points and touching 5% in October 2023. In Europe, the Bank of England cut rates last week for the first time in four years and the 10-year bond in Ireland today sits at 2.7% versus, I might add, it was close to 16% when we first went there in 2010.

在美國，眾所周知，10 年期公債已下跌 100 個基點，並於 2023 年 10 月觸及 5%。在歐洲，英格蘭銀行上週首次降息，這是四年來的首次，而愛爾蘭的 10 年期債券如今的利率為 2.7%，我想補充一下，2010 年我們第一次去那裡時，利率接近 16% 。

Further anticipated decreases in rates by the Fed also provide supportive backdrop for our valuations and increases of our portfolio. A lower cost of capital and lower base rates should help increase transaction volumes and increase our ability to find opportunities to deploy capital and realize additional cash monetizations.

聯準會進一步降息的預期也為我們的估值和投資組合的增加提供了支持性背景。較低的資本成本和較低的基本利率應有助於增加交易量，並提高我們尋找部署資本和實現額外現金貨幣化機會的能力。

This bodes well for our business, where we have created a unique platform that can scale through investing in both real estate equity and debt. I'm excited about our current positioning and the numerous opportunities we have to expand our assets under management with a focus on the following areas. First, growing our investment management platform.

這對我們的業務來說是個好兆頭，我們創建了一個獨特的平台，可以透過投資房地產股權和債務來擴大規模。我對我們目前的定位以及我們擁有的眾多機會來擴展我們管理的資產（重點關注以下領域）感到興奮。首先，發展我們的投資管理平台。

Our track record spans over three decades, in which we have navigated many different cycles and at the same time, grown our relationship network, which expands from the US to Canada, Europe and across Asia to include some of the largest sovereign wealth funds, insurance companies and other large institutional investors around the world. This includes our partners in Japan, where we recently reopened our office and our history dates back to when we established Kennedy-Wilson Japan back in 1994.

我們的業績記錄跨越了三十多年，其中我們經歷了許多不同的周期，同時發展了我們的關係網絡，該網絡從美國擴展到加拿大、歐洲和整個亞洲，包括一些最大的主權財富基金、保險世界各地的公司和其他大型機構投資者。這包括我們在日本的合作夥伴，我們最近在日本重新開設了辦事處，我們的歷史可以追溯到 1994 年成立 Kennedy-Wilson Japan 時。

We continue to see a strong desire from our partners to invest with KW in real estate debt and equity in the US, United Kingdom and Ireland. I am very confident in our ability to continue raising further third party capital to grow our investment management business. We're currently focused on three key products. First is rental housing, where our portfolio of approximately 60,000 units includes 22,000 units being financed through our construction loan platform and over 38,000 multifamily units in which we have an approximate 56% ownership interest.

我們繼續看到我們的合作夥伴強烈希望與 KW 一起投資美國、英國和愛爾蘭的房地產債務和股權。我對我們繼續籌集更多第三方資本來發展我們的投資管理業務的能力非常有信心。我們目前專注於三個關鍵產品。首先是租賃住房，我們約 60,000 個單元的投資組合包括透過我們的建築貸款平台融資的 22,000 個單元以及超過 38,000 個多戶單元，我們在其中擁有約 56% 的所有權權益。

Renter fundamentals remain very healthy as there remains a shortage of housing throughout the US, UK and Ireland. In the US, multifamily demand for largely suburban portfolio has remained strong, while supply starts have dropped significantly. We also have a very successful track record of investing in and building high quality rental housing in Dublin and the UK, and we continue to evaluate opportunities in those regions.

由於美國、英國和愛爾蘭的住房仍然短缺，租屋者的基本面仍然非常健康。在美國，對大部分郊區投資組合的多戶住宅需求依然強勁，而開工供應卻大幅下降。我們在都柏林和英國投資和建造高品質租賃住房方面也擁有非常成功的記錄，並且我們將繼續評估這些地區的機會。

Second, we look to continue growing our credit platform where we are generating solid risk adjusted returns for our shareholders. Q2 marked the one-year anniversary of our acquisition of a $4.1 billion construction loan portfolio from PacWest Bank.

其次，我們希望繼續發展我們的信貸平台，為股東創造可靠的風險調整回報。第二季是我們從 PacWest Bank 收購 41 億美元的建築貸款組合一週年。

Since then, the PacWest construction lending team that joined KW has integrated seamlessly within our KW culture, while completing $1.9 billion of multifamily and student housing construction originations with very high quality institutional sponsors. We have a strong pipeline of $600 million to $700 million that is signed up and is currently in the process of closing, which will take our closings to $2.7 billion since the acquisition.

從那時起，加入 KW 的 PacWest 建築貸款團隊無縫融入了我們的 KW 文化，同時在非常優質的機構贊助商的幫助下完成了 19 億美元的多戶住宅和學生住房建設項目。我們擁有 6 億至 7 億美元的強大管道，這些管道已簽約，目前正在交割過程中，這將使我們自收購以來的交割額達到 27 億美元。

And third, we look to continue building on our existing 12 million square feet of logistics. We acquired two industrial platforms in the quarter, totaling $180 million, one in the US and one in the United Kingdom and we are evaluating several new opportunities in our pipeline in both regions. Our second key initiative relates to our asset sale plan.

第三，我們希望繼續擴大現有 1,200 萬平方英尺的物流空間。我們在本季度收購了兩個工業平台，總計 1.8 億美元，一個在美國，一個在英國，我們正在評估這兩個地區管道中的幾個新機會。我們的第二個關鍵舉措與我們的資產出售計劃有關。

In July, we sold a retail center in Spain, which was our last wholly owned asset in the country, generated $35 million of cash to KW. This brings our year-to-date total through the end of July to $330 million of cash generated from asset sales, non-core assets and loan repayments. We have a strong disposition pipeline for the second half of the year with proceeds to be used for reducing our unsecured debt and for future co-investment opportunities.

7 月份，我們出售了西班牙的一個零售中心，這是我們在該國的最後一個全資資產，為 KW 帶來了 3500 萬美元的現金。這使得我們截至 7 月底為止的資產銷售、非核心資產和貸款償還產生的現金總額達到 3.3 億美元。我們下半年有強大的處置管道，所得款項將用於減少我們的無擔保債務和未來的共同投資機會。

I want to thank our entire organization for their hard work as we've continued working as one team across all geographies and business lines, which has set up a firm foundation for the next phase of growth at Kennedy-Wilson.

我要感謝我們整個組織的辛勤工作，因為我們在所有地區和業務線中作為一個團隊繼續工作，這為甘迺迪威爾遜下一階段的成長奠定了堅實的基礎。

With that, I'd like to turn the call over to our CFO, Justin Enbody to discuss our financial results.

說到這裡，我想將電話轉給我們的財務長賈斯汀恩博迪 (Justin Enbody)，討論我們的財務表現。

Thanks, Bill. I'll start by reviewing our financial results and then discuss our balance sheet. Investment Management revenue grew by 37% to $26 million in Q2, driven by completing nearly $1 billion in new originations in our credit platform as well as higher levels of de-bearing capital. Baseline EBITDA grew by 5% to a $105 million.

謝謝，比爾。我將首先回顧我們的財務業績，然後討論我們的資產負債表。第二季投資管理收入成長 37%，達到 2,600 萬美元，這得益於我們信貸平台中近 10 億美元的新發起以及更高水準的去軸承資本。基線 EBITDA 成長 5%，達到 1.05 億美元。

We saw minor changes in the values of our unconsolidated portfolio in the quarter and we saw overhead costs go down by 9% year to date. Additionally, post quarter end as Bill mentioned, we divested in the largest asset we held in Spain and with that we'll be closing our Spanish office. In summary, our GAAP net loss totaled $0.43 per share in Q2 which includes $0.46 per share of non-cash items including depreciation and amortization, fair value and share based compensation.

我們看到本季未合併投資組合的價值發生了微小變化，並且我們看到年初至今的間接費用下降了 9%。此外，正如比爾所提到的，季度末後，我們剝離了在西班牙持有的最大資產，因此我們將關閉我們的西班牙辦事處。總而言之，第二季度我們的 GAAP 淨虧損總計為每股 0.43 美元，其中包括每股 0.46 美元的非現金項目，包括折舊和攤提、公允價值和基於股票的薪酬。

Adjusted EBITDA totaled $79 million for Q2 and $283 million for the year. Now turning to our balance sheet and debt profile. At quarter end, we had $367 million of consolidated cash. We paid down our line of credit by $67 million in Q2 and today we have $172 million drawn on our $500 million line of credit. Our share of total debt is 98% fixed or hedged with a weighted average maturity of five years.

第二季調整後 EBITDA 總計 7,900 萬美元，全年調整後 EBITDA 總計 2.83 億美元。現在轉向我們的資產負債表和債務狀況。截至季末，我們擁有 3.67 億美元的合併現金。我們在第二季支付了 6,700 萬美元的信貸額度，今天我們從 5 億美元的信貸額度中提取了 1.72 億美元。我們佔總債務的 98% 是固定或對沖的，加權平均期限為五年。

We continue to collect cash as a result of our interest rate hedging activities, which is not reflected in our financial statements as an offset to interest expense. In Q2, we collected $11 million of cash bringing our year to date total to $23 million. Our effective interest rate 4.6% reflects a 50 basis points saving over our contractual rate as a result of our hedging strategy.

我們繼續透過利率對沖活動收取現金，但這並未在我們的財務報表中反映為利息費用的抵銷。第二季度，我們籌集了 1,100 萬美元現金，使今年迄今的現金總額達到 2,300 萬美元。由於我們的對沖策略，我們的實際利率為 4.6%，比合約利率節省了 50 個基點。

Our remaining 2024 debt maturities total $181 million which are all non-recourse at the property level. In Q3, we refinanced the construction loan at one of our recently completed multifamily projects in Dublin where the effective rate improved from 6.2% to 4.5% fixed for five years. We also continue to repurchase stock in the quarter buying another 600,000 shares which brought our year to date total through July to 1.7 million shares or approximately 1.2% of our outstanding share count.

我們剩餘的 2024 年債務到期總額為 1.81 億美元，這些債務在財產層面都是無追索權的。第三季度，我們為都柏林最近完成的一個多戶住宅項目的建築貸款進行了再融資，該項目的有效利率從 6.2% 提高到 4.5%，固定期限為 5 年。我們也持續在本季回購股票，購買了另外 60 萬股，這使我們截至 7 月的年初至今的股票總數達到 170 萬股，約占我們已發行股票數量的 1.2%。

We have $110 million remaining on our $500 million share repurchase authorization. With that, I'd now like to turn call over to our President, Matt Windisch to discuss our investment portfolio.

我們的 5 億美元股票回購授權還剩 1.1 億美元。現在，我想轉而致電我們的總裁 Matt Windisch，討論我們的投資組合。

Thanks, Justin. We continue to strengthen the quality of our portfolio as we work through disposing of non-core assets, while at the same time stabilizing brand new communities. Our stabilized portfolio totals $485 million in estimated annual NOI, which grew by 5% in the quarter. Over the last five years, our portfolio has continued to shift towards multifamily credit and industrial, which have increased from 50% to roughly 70% of our NOI.

謝謝，賈斯汀。我們透過處置非核心資產不斷強化投資組合的質量，同時穩定全新的社區。我們穩定的投資組合預計年度 NOI 總計 4.85 億美元，本季成長 5%。在過去五年中，我們的投資組合持續轉向多戶信貸和工業，其占我們 NOI 的比例從 50% 增加到約 70%。

We have also sold down our retail office and hotel portfolios, which five years ago accounted for 50% of our portfolio versus approximately 30% today. In total, our 38,000 unit multifamily business has grown to 61% of our stabilized portfolio, producing $525 million of estimated annual NOI at the property level, of which KW share is $294 million.

我們也出售了零售辦公室和飯店投資組合，五年前，這些投資組合占我們投資組合的 50%，而今天約為 30%。總的來說，我們擁有 38,000 個單元的多戶住宅業務已增長至我們穩定投資組合的 61%，在房地產層面產生了 5.25 億美元的預計年度 NOI，其中 KW 份額為 2.94 億美元。

We have 2700 units in our lease up and development pipeline, which we expect to add $29 million to estimated annual NOI at stabilization. Our US multifamily portfolio has benefited as a result of our asset management initiatives, where we are focused on driving operational efficiencies and enhancing our assets, as well as strong demand from an overall shortage of homes for sale and the high cost of home ownership.

我們的租賃和開發管道中有 2700 個單位，預計穩定後預計年度 NOI 將增加 2900 萬美元。我們的美國多戶住宅投資組合受益於我們的資產管理舉措，我們專注於提高營運效率和增強我們的資產，以及待售房屋整體短缺和居所成本高昂帶來的強勁需求。

These drivers resulted in same property occupancy growth of 1.9%, revenue growth of 3.6% and NOI growth of approximately 3%. Overall, portfolio occupancy stood at 94%. On the expense side, rising insurance costs reduced our same store NOI results in Q2 by approximately 50 basis points. However, we expect that our insurance premiums will be flat to down in the second half of the year based on our July renewals.

這些驅動因素導致同一物業入住率增加 1.9%，收入成長 3.6%，NOI 成長約 3%。整體而言，投資組合入住率為 94%。在費用方面，保險成本上漲使我們第二季的同店 NOI 業績下降了約 50 個基點。然而，根據我們 7 月的續保情況，我們預計下半年的保費將持平甚至下降。

Our market rate apartment portfolio in the US, which is over 90% suburban, saw blended leasing spreads of 2.6%, similar to what we are seeing in July, and we ended the quarter with a loss to lease totaling 4%. Turning to our regional highlights. In our California portfolio, we continue to make great progress working through delinquencies and releasing units.

我們在美國的市價公寓投資組合超過 90% 位於郊區，混合租賃利差為 2.6%，與 7 月的情況類似，本季結束時租賃損失總計 4%。轉向我們的區域亮點。在我們的加州投資組合中，我們在解決拖欠和釋放單位方面繼續取得巨大進展。

In Q2, we saw occupancy increases, lower bad debt, and stable operating expenses, leading to NOI growth of 5% across our California portfolio. In Northern California, bad debt dropped to the lowest level in two years.

第二季度，我們看到入住率增加、壞帳減少以及營運支出穩定，導致我們加州投資組合的 NOI 增加 5%。在北加州，壞帳降至兩年來的最低水準。

The Pacific Northwest also delivered an impressive 4% NOI growth, as occupancy grew by 1.4%, while our value add initiatives in this region continued to positively impact our results. In the Mountain West region, we saw occupancy improve by 2%, leading to revenue growth of 3% and NOI growth of 1%. Our portfolio here is well diversified across six states.

太平洋西北地區的 NOI 也實現了令人印象深刻的 4% 增長，入住率增長了 1.4%，而我們在該地區的增值計劃繼續對我們的業績產生積極影響。在西部山區，入住率提高了 2%，收入成長了 3%，NOI 成長了 1%。我們的投資組合在六個州實現了多元化。

Nevada and New Mexico were the strongest in our portfolio with 9% and 6% NOI growth respectively. Our Arizona properties produced NOI growth of 6% and in Utah, we saw NOI growth of 3%. In Idaho, we have seen supply impact our rental growth, although we anticipate much less new supply coming online in the years ahead.

內華達州和新墨西哥州是我們投資組合中表現最強勁的州，NOI 成長分別為 9% 和 6%。我們的亞利桑那州物業的 NOI 成長了 6%，而在猶他州，我們的 NOI 成長了 3%。在愛達荷州，我們已經看到供應量影響了我們的租金成長，儘管我們預計未來幾年新增供應量會少得多。

We continue to have conviction in these markets where our portfolio offers an attractive, lower cost alternative to higher rent units and higher tax more densely populated cities. Our Mountain West portfolio's average rents are roughly $1600 per month, and we believe these markets are set up for solid growth as supply pressures subside.

我們仍然對這些市場充滿信心，在這些市場中，我們的投資組合為人口稠密的城市提供了一種有吸引力的、成本更低的替代方案，以替代租金更高的單位和更高的稅收。我們的 Mountain West 投資組合的平均租金約為每月 1600 美元，我們相信，隨著供應壓力的消退，這些市場將實現穩健成長。

Moving over to Dublin, our portfolio there remains in strong demand. In Q2, we stabilized two multifamily projects in Dublin, Cooper's Cross Residential and The Grange, which totaled 758 units. These two properties added approximately $10 million to estimated annual NOI. We have a further 232 units undergoing lease up at Cornerstone, which we anticipate stabilizing in early 2025.

移至都柏林，我們的投資組合仍需求強勁。第二季度，我們穩定了都柏林的兩個多戶住宅項目：Cooper's Cross Residential 和 The Grange，總計 758 個單位。這兩個物業為預計年度 NOI 增加了約 1,000 萬美元。我們還有 232 個單位在 Cornerstone 進行租賃，預計到 2025 年初將穩定。

Renter fundamentals remain healthy in Ireland as labor market conditions are tight and there remains a large structural shortage of housing. With regards to our global office portfolio, we saw improving occupancies and lower operating costs lead to 6.5% NOI growth. It is worth noting that US office represents only 6% of our stabilized portfolio, where we have completed approximately 0.5 million square feet of leasing in 2024 with an average term of almost six years.

由於勞動市場狀況緊張且住房結構性短缺仍然存在，愛爾蘭的租屋者基本面依然健康。就我們的全球辦公大樓組合而言，入住率的提高和營運成本的降低導致 NOI 成長 6.5%。值得注意的是，美國辦公室僅占我們穩定投資組合的 6%，我們在 2024 年已完成約 50 萬平方英尺的租賃，平均期限近六年。

Majority of our office portfolio is located in Dublin and in the UK, where the overall leasing market environment has improved in 2024. In Q2, same property NOI increased by 2.2% in our European office portfolio, driven by slight increases in occupancy and lower operating expenses.

我們的辦公室組合大部分位於都柏林和英國，2024 年整體租賃市場環境有所改善。第二季度，在入住率小幅成長和營運費用下降的推動下，我們歐洲辦公室投資組合的同類物業 NOI 成長了 2.2%。

Stabilized occupancy in Europe remains healthy at 94% with a weighted average lease term of seven years to expiration and five years to break. In Dublin, our nine stabilized properties have less than 5% vacancy with five of the properties 100% leased. We continue to see a slight to quality, which we believe will benefit our portfolio.

歐洲的穩定入住率維持在 94% 的健康水平，加權平均租賃期限為七年到期，五年到期。在都柏林，我們的 9 處穩定房產的空置率低於 5%，其中 5 處房產已 100% 出租。我們繼續看到品質的輕微下降，我們相信這將有利於我們的投資組合。

Fundamentals in our industrial portfolio remain very strong with our portfolio 98% occupied. In Europe, leasing completed in the quarter delivered a 44% increase in rents. Demand from our existing tenants to remain in our properties remained strong, with tenants regularly engaging in early discussions ahead of their lease expiration. In place rents in Europe remain 19% below market, which allows for us to continue enhancing value as leases mature. Switching gears to our investment management business.

我們的工業投資組合的基本面仍然非常強勁，我們的投資組合佔了 98%。在歐洲，本季完成的租賃使租金增加了 44%。我們現有租戶留在我們物業的需求依然強勁，租戶經常在租約到期前進行早期討論。歐洲的現房租金仍比市場水平低 19%，這使我們能夠在租賃成熟時繼續提高價值。轉向我們的投資管理業務。

Switching gears to our investment management business. As we continue to simplify our balance sheet through non-core asset sales, investment management growth is an important focus as it allows us to generate attractive returns in a capital light manner. We have successfully grown our fee bearing capital by 93% over the past three years to a record $8.7 billion.

轉向我們的投資管理業務。隨著我們繼續透過非核心資產出售來簡化資產負債表，投資管理成長成為一個重要的焦點，因為它使我們能夠以輕資本的方式產生有吸引力的回報。過去三年，我們的收費資本成功成長了 93%，達到創紀錄的 87 億美元。

A large portion of our investment management growth has been driven by our credit business, which includes $5.1 billion in outstanding loans and $2.9 billion in future fundings. Our capital raising efforts span across the globe with the majority of our capital coming from large institutional insurance companies, sovereign wealth funds and pensions.

我們的投資管理成長很大一部分是由信貸業務推動的，其中包括 51 億美元的未償還貸款和 29 億美元的未來資金。我們的融資活動遍及全球，大部分資金來自大型機構保險公司、主權財富基金和退休金。

Combining these important relationships with an improving interest rate backdrop should strengthen liquidity and improve our ability to deploy capital at scale. In summary, we are emerging from a challenging period of time as a much stronger company positioned for growth. We greatly increased the strength of our lending capabilities in the last year.

將這些重要關係與不斷改善的利率背景相結合，應該會增強流動性並提高我們大規模部署資本的能力。總而言之，我們正在擺脫充滿挑戰的時期，成為一家更強大、有發展潛力的公司。去年我們大大增強了貸款能力。

We continue to finish and stabilize our developments, while recycling capital from our non-core asset sales, strengthening our overall portfolio, and most importantly, we have a well-seasoned and invigorated team on the field, which looks forward to growing the business over the years ahead. So with that, we can open it up to Q&A.

我們繼續完成並穩定我們的發展，同時回收非核心資產出售的資金，加強我們的整體投資組合，最重要的是，我們擁有一支經驗豐富、充滿活力的團隊，期待著業務的增長未來的歲月。這樣，我們就可以進行問答了。

Thank you. We will now begin the question and answer session to ask a question. (Operator Instructions) Anthony Paolone, JP Morgan.

謝謝。我們現在開始問答環節來提問。（操作員說明）Anthony Paolone，摩根大通。

Okay, thanks and good morning. I guess, first question as it relates to the debt platform, it seems like the origination thus far has been mostly on the construction loan side or maybe all of it has been, if I recall, but just wondering what the prospects are for doing other types of maybe longer duration type debt deals or taking advantage of some of the repayments to be the vehicle that terms out some of that debt to add some just broader duration to that book?

好的，謝謝，早安。我想，第一個問題與債務平台有關，到目前為止，似乎起源主要是在建築貸款方面，或者如果我記得的話，也許全部都是，但只是想知道做其他事情的前景如何可能是較長期限類型的債務交易類型，還是利用一些還款作為償還部分債務的工具，從而為該帳簿增加一些更廣泛的期限？

Tony, this is Matt. It's a great question. We see a great opportunity in the construction lending space within the residential sector, and so that's where our primary focus has been, but the team that we both bought and built within KW is a seasoned team of people with expertise not only in construction lending, but in permanent lending, bridge lending, you name it.

東尼，這是馬特。這是一個很好的問題。我們在住宅領域的建築貸款領域看到了巨大的機會，所以這就是我們的主要關注點，但我們在KW 內購買和建立的團隊是一支經驗豐富的團隊，他們不僅在建築貸款領域擁有專業知識，但在永久貸款、過橋貸款等方面，凡是你能想到的。

So we definitely have increase the duration increase the duration on the portfolio and look at longer term solutions for our customers and we've got capital partners that are interested in doing that with us. So it's a good question. I think you'll see over the next several quarters an expansion of our business beyond just construction lending.

因此，我們肯定會增加投資組合的久期，並為我們的客戶尋找長期解決方案，我們的資本合作夥伴有興趣與我們一起這樣做。所以這是一個好問題。我認為您將在接下來的幾個季度看到我們的業務擴展到建築貸款之外。

Okay, thanks. And then on with regards to development, the program, there seems to be winding down and simplifying the story overall for you guys. Do you think there are incremental starts in the horizon? Or do you think this is just kind of continues to wind down for a while here?

好的，謝謝。然後在開發、程式方面，對你們來說，整個故事似乎正在逐漸結束和簡化。您認為未來會出現增量的開始嗎？還是你認為這只是繼續放鬆一段時間？

No, we're really looking at that business in a different way than we have in the past, where we were a sizable equity partner in all of these deals and so we have several new projects that we're looking at right now.

不，我們確實以一種與過去不同的方式看待這項業務，過去我們是所有這些交易中相當大的股權合作夥伴，所以我們現在正在考慮幾個新項目。

We're taking both of our really experienced teams here in the United States and in Europe and for lack of a better word, really re purposing them into a construction management business, where similar to what we've been doing with the investment management platform, where we will be 5% to 10% investors in these properties that manage and run all the construction and earn the normal development fees that you would earn in developing any property.

我們正在將我們在美國和歐洲的兩個真正經驗豐富的團隊帶到這裡，由於缺乏更好的詞，我們真正將他們重新定位為建築管理業務，這與我們一直在投資管理平台上所做的類似，我們將成為這些房產 5% 到 10% 的投資者，管理和經營所有建築，並賺取您在開發任何房產時賺取的正常開發費。

So we've been doing this now for 10 years. And we've developed a very, very outstanding team of people in both Europe and here in the United States and so we don't want to slow the development down where it makes sense. But what we do want to do is do it more in the format of an investment management platform where we're the construction manager.

所以我們現在已經這樣做了 10 年。我們在歐洲和美國都培養了一支非常非常優秀的團隊，所以我們不想在有意義的地方放慢開發速度。但我們確實想做的是更多以投資管理平台的形式來做，我們是建設經理。

Okay, thanks. And then just if I could ask one last one. It seems like you're making progress towards your disposition goals. Just wondering if you can put some brackets around what all you have in the market, if we should expect anything more sizable coming or any exits of other markets or property types or anything?

好的，謝謝。然後我想問最後一個問題。看起來你正在朝著你的處置目標取得進展。只是想知道您是否可以在市場上擁有的所有內容上加上一些括號，我們是否應該期待任何更大規模的到來或其他市場或房地產類型或其他任何東西的退出？

Yes. So you saw that we did sell in our Spanish retail center in Q3, so that's obviously done. But we have a substantial pipeline of dispositions that were in various stages of selling. So it's in line with the plan that we announced late last year, and we're confident we can still hit those numbers. And for us in particular, you've seen the shift of the majority of the assets on the balance sheet being US multifamily. So I think with this disposition program, you'll continue to see that shift continue.

是的。所以你看到我們確實在第三季在西班牙零售中心進行了銷售，所以這顯然已經完成了。但我們有大量處於不同銷售階段的處置管道。因此，這符合我們去年年底宣布的計劃，我們有信心仍然可以達到這些數字。尤其是對我們來說，您已經看到資產負債表上的大部分資產都變成了美國多戶家庭資產。所以我認為透過這個處置計劃，您將繼續看到這種轉變繼續下去。

Yes. I think, Tony, just to add to what Matt said, it's very, very clear that one of our core strengths is, whether it's in the credit business or the equity side, is the multifamily business where we now are involved in almost 60,000 units and so our view of the housing market is that there's going to be significant opportunities to continue to grow that business over time.

是的。托尼，我想補充一下馬特所說的，很明顯，我們的核心優勢之一是，無論是在信貸業務還是股權方面，都是多戶型業務，我們現在涉及近 60,000 個單位因此，我們對房地產市場的看法是，隨著時間的推移，將有大量機會繼續發展該業務。

And so we have very clearly identified the other non-core assets that we want to get out of and I think to simplify the company in terms of geography, we're only focused on those three markets, the United States, the United Kingdom and Ireland and the other side of the equation is the capital that we're raising in various parts of the world and as we said earlier in the call, we're very, very focused on raising capital now out of Asia, Canada and Europe. And so and we're making really, really good progress in all of those markets.

因此，我們非常清楚地確定了我們想要擺脫的其他非核心資產，我認為為了簡化公司的地理位置，我們只專注於這三個市場，美國、英國和愛爾蘭和等式的另一邊是我們在世界各地籌集的資金，正如我們早些時候在電話會議中所說，我們現在非常非常專注於從亞洲、加拿大和歐洲籌集資金。因此，我們在所有這些市場上都取得了非常非常好的進展。

Got it. Thank you.

知道了。謝謝。

Josh Dennerlein, Bank of America.

喬許‧丹納林，美國銀行。

Yes, hey, guys. I'm just wondering, what's the it does include the fair value adjustment in adjusted EBITDA? I guess what's the rationale on that because I feel like it adds like a lot of noise to just like the overall earnings power of the company is. So just why do you guys feel it's important to include that.

是的，嘿，夥計們。我只是想知道，調整後 EBITDA 中的公允價值調整是什麼？我想這樣做的理由是什麼，因為我覺得這就像公司的整體獲利能力一樣增加了很多噪音。那麼為什麼你們覺得將其納入很重要。

I mean, I think historically, as you mentioned, it's been a little bit volatile and we typically are including everything in that metric. And that's why we introduced baseline EBITDA to be a more recurring operating metric for the for the users. So now you can choose which ones you'd like to look at.

我的意思是，我認為從歷史上看，正如您所提到的，它有點不穩定，我們通常會將所有內容都包含在該指標中。這就是為什麼我們引入基線 EBITDA 作為用戶更經常性的營運指標。所以現在您可以選擇您想查看的內容。

Okay. Sorry I missed that. So that was new for this quarter, the baseline EBITDA?

好的。抱歉我錯過了。那麼基準 EBITDA 是本季的新內容嗎？

I think second quarter or third quarter we've had it, but that was the genesis of it. So it's a good question and hopefully we're just giving you more information.

我認為第二季或第三季我們已經做到了，但這就是它的起源。所以這是一個很好的問題，希望我們能為您提供更多資訊。

Okay. And then, you guys mentioned opening a Japan office. I guess, one, I guess what's the rationale behind that? And then can you help us reconcile that with like the cost cutting progress? It just seems like maybe that's a yeah, anyway. Thank you.

好的。然後，你們提到開設日本辦事處。我想，一，我想這背後的理由是什麼？然後您能幫助我們將其與成本削減進度相協調嗎？無論如何，這似乎也許是的。謝謝。

Yeah, that's a very good question. We started in Japan in 1994 with no employees and over a seven-year period of time, up to 2002, we actually became, if not the first, one of the first U.S. real estate companies to ever go public in Japan. That was Kennedy-Wilson Japan, which went public there. We sold almost all of our position in that company over the next couple of years after 2002, but that company continued to thrive and it's currently owned it's a private company owned by one of the large Japanese financial institutions.

是的，這是一個很好的問題。我們在 1994 年在日本起步，當時沒有任何員工，在截至 2002 年的七年時間裡，我們實際上成為（即使不是第一家）在日本上市的第一批美國房地產公司之一。那就是甘迺迪威爾遜日本公司，在那裡上市。2002 年之後的幾年裡，我們幾乎賣掉了該公司的所有股份，但該公司繼續蓬勃發展，目前是日本一家大型金融機構旗下的私人公司。

Outside of that business, we also owned almost 50 apartment units, mostly in Tokyo and Osaka that turned into a very, very successful investment and we sold that business in 2015 and as luck would have it, we used the proceeds out of that to buy our 50% interest in vintage housing here in the United States, which at the time, just as an aside, had 5000 units in it and now has 12,000 units in it, but we have always maintained very, very, very deep and strong relationships with many, many Japanese, large Japanese financial institutions and companies in Japan.

除了該業務之外，我們還擁有近50 套公寓單元，大部分位於東京和大阪，這成為一項非常非常成功的投資，我們在2015 年出售了該業務，幸運的是，我們用其中的收益購買了我們對美國的老式住宅有 50% 的興趣，順便說一句，當時有 5000 套，現在有 12,000 套，但我們一直保持著非常、非常、非常深厚和牢固的關係與很多很多日本的、大型的日本金融機構和在日本的公司有合作。

And we have one existing joint venture in the Bay Area with a major Japanese construction company and then you might remember that in the Q1 of this year, we closed our first multifamily equity investment with a very large Japanese development company in Vancouver, Washington.

我們與一家大型日本建築公司在灣區現有一家合資企業，然後您可能還記得，在今年第一季度，我們與華盛頓溫哥華的一家大型日本開發公司完成了第一筆多戶住宅股權投資。

And so what this has all led to is kind of, I'd say, re-examination of all these deep relationships that we've built over the last 30 years and the Japanese institutions are very global in nature and it's obviously no surprise to anybody that Japan is faced with a declining population at this point in time. We'll see how that all goes, but it has always been the case with Japanese companies, irrespective of where the yen is at, they want to invest on a long-term basis outside of Japan and so we made a decision really earlier this year to.

因此，我想說，這一切導致了對我們在過去 30 年裡建立的所有這些深厚關係的重新審視，而日本機構本質上是非常全球化的，這顯然並不奇怪任何人都知道日本目前正面臨人口下降的問題。我們將看看這一切會如何發展，但日本公司的情況一直如此，無論日元處於什麼位置，他們都希望在日本境外進行長期投資，因此我們很早就做出了決定年至.

I'd say, intensify our capital raising efforts there, based on these long-term relationship, but to do that kind of business in Japan, you have to have a physical presence there and so we've opened reopened our office there. I would also add in this long winded answer that we've had several Japanese companies now that have come into our fund business -- discretionary fund business, including one large Japanese company that came into our fund business just a couple of weeks ago and so we've had real success raising capital there.

我想說，基於這些長期關係，加強我們在那裡的融資工作，但要在日本開展此類業務，你必須在那裡有實體存在，所以我們在那裡重新開設了辦事處。我還要在這個冗長的答案中補充一點，我們現在已經有幾家日本公司進入了我們的基金業務——全權委託基金業務，其中包括幾週前進入我們基金業務的一家大型日本公司，所以我們在那裡籌集資金取得了真正的成功。

I think one thing I'd add to that is just the team that we have covering that region, we're already employed by the company. So there's no -- we didn't add employees or anything like that as part of this. So there's not a significant change in the G&A related to opening this office.

我想我要補充的一件事是我們涵蓋該地區的團隊，我們已經受僱於該公司。所以沒有——我們沒有添加員工或類似的東西作為其中的一部分。因此，與開設該辦事處相關的一般管理費用並沒有重大變化。

Good background. Thank you.

好的背景。謝謝。

(Operator Instructions)

（操作員說明）

Tayo Okusanya, Deutsche Bank.

Tayo Okusanya，德意志銀行。

Okay, good morning. I wanted to ask about the credit platform and how we think about the growth outlook for the business, just given again if rates are coming down going forward, do you think that results in more construction loans or people all of a sudden want to start borrowing or do you think about it as they become other sources of there'll be more attractive funding for potential developers and they kind of move towards a different product? Like just how do we kind of think of how the business evolves in a world that we have declining interest rate?

好的，早安。我想問一下信貸平台以及我們如何看待業務的增長前景，如果利率繼續下降，您認為這會導致更多的建築貸款還是人們突然想要開始借貸或者您是否認為，當他們成為其他來源時，對潛在開發商來說會有更有吸引力的資金，而且他們會轉向不同的產品？就像我們如何看待在利率下降的世界中業務如何發展？

That's a good question. I mean, we've seen a significant slowdown in starts on apartment construction and so what's happened for us is we've had a combination of lower number of smaller number of people that are actually developing, but there's also a lot fewer financial institutions and lenders in the market. So the pie has shrunk dramatically from where it was three or four years ago, in terms of the overall size of the construction lending market.

這是個好問題。我的意思是，我們已經看到公寓建設的開工顯著放緩，所以我們的情況是，實際開發的人數減少了，但金融機構和設施也少了很多。因此，就建築貸款市場的整體規模而言，蛋糕與三、四年前相比已經大幅萎縮。

That being said, we've been able to capture a very sizable market share, just given that a lot of the traditional lenders are not currently active in the space. I think with the prospect of rates coming down, a couple of things could happen and our thesis really is that you will see more people start to build because the cost of building will be reduced because of lower interest costs and also the value of these assets once completed should go up and the takeout financing should be more attractive.

話雖如此，鑑於許多傳統貸款人目前在該領域並不活躍，我們已經能夠佔據非常大的市場份額。我認為隨著利率下降的前景，可能會發生一些事情，我們的論點實際上是，你會看到更多的人開始建造，因為由於利息成本降低以及這些資產的價值，建造成本將會降低一旦完成應該會上漲，外送融資應該會更有吸引力。

So you should see a pickup in new starts for people building apartment buildings. At the same time, I think it's likely you'll see new entrants come into the market, given those factors. So our hope is that the market will continue to grow and we'll be able to maintain our strong market share.

因此，您應該會看到人們建造公寓大樓的新動工增加。同時，考慮到這些因素，我認為您可能會看到新進入者進入市場。因此，我們希望市場將繼續成長，我們將能夠保持強勁的市場份額。

So I think it bodes well for us that the overall size of the opportunity will be larger and I think we've got a competitive cost of capital and a great team that has executed with these borrowers during times where others weren't there stepping up like we are.

因此，我認為這對我們來說是個好兆頭，機會的總體規模將會更大，而且我認為我們擁有具有競爭力的資本成本和一支優秀的團隊，在其他人不站出來的時候與這些借款人一起執行任務就像我們一樣。

Got you. Does it change profitability of the business because you're probably now going to be making loans at lower rates?

明白你了。它是否會改變企業的獲利能力，因為您現在可能會以較低的利率發放貸款？

It's not a significant change for Kennedy-Wilson because we're putting up relatively small amount of capital into the loans themselves and we're earning fees based on the origination and asset management and servicing of the loan. So for Kennedy-Wilson, it won't be a significant change in the return.

對於甘迺迪威爾遜來說，這並不是一個重大變化，因為我們在貸款本身中投入的資本相對較少，而且我們根據貸款的發起、資產管理和服務賺取費用。因此對甘迺迪-威爾森來說，回報不會有重大變化。

Okay. That's helpful. I guess that's it for me. Thank you

好的。這很有幫助。我想這對我來說就是這樣。謝謝

Alan Parsow, Elkhorn Partners.

艾倫·帕索，埃爾克霍恩合夥人。

Hi guys. I have two quick follow-up questions. One is on Japan and that area and if there is a way for you to elaborate on the amount of funds you've been able to this point get into your fund development and different fund issues? And then two, if you could quantify your sale of the Spanish property and give us an idea of what you made lost or whatever on that property and how much you should save from closing eventually that Spain office?

嗨，大家好。我有兩個快速跟進問題。其中一個是關於日本和該地區的，您是否有辦法詳細說明您目前能夠進入基金開發和不同基金問題的資金數量？第二，您是否可以量化您出售的西班牙財產，並讓我們了解您在該財產上損失了什麼或其他什麼，以及您最終應該透過關閉西班牙辦事處節省多少錢？

Yeah. As far as Japan is concerned, Alan, I mean, we're in the, I'd say, early stages of raising capital, but we're having, I'd say, very meaningful discussions with, I'd say, a dozen Japanese major Japanese companies.

是的。就日本而言，艾倫，我的意思是，我們正處於籌集資金的早期階段，但我想說，我們正在與…進行非常有意義的討論，日本主要的日本企業有十幾家。

The reference, if I didn't say the number, the reference I was making into our fund seven discretionary, we've had $100 million of capital come from Japan and so this is early stages and as you can see, we haven't intentionally in the last 12 months, we haven't deployed hardly any capital into the equity investment side of the business.

參考資料，如果我沒有說數字，我對我們的七號基金的參考資料是可自由支配的，我們有1 億美元的資金來自日本，所以這是早期階段，正如你所看到的，我們還沒有在過去 12 個月裡，我們幾乎沒有有意將任何資金投入到該業務的股權投資方面。

We felt a very much better use of capital was to grow the credit business. The returns were just better, but with these rates coming down, it's clearly going to benefit the equity side of the business, both in terms of the valuation of our own assets, but also our ability to get positive leverage on acquisitions and that was really the reason over the last 12 months, we've really barely moved the dial in terms of acquisitions of new equity oriented investments.

我們認為更好的資本利用方式是發展信貸業務。回報率更好，但隨著這些利率的下降，這顯然將使企業的股權方面受益，無論是在我們自己資產的估值方面，還是我們在收購中獲得積極槓桿作用的能力方面，這確實是這是因為在過去12 個月裡，我們在收購新的股權投資方面幾乎沒有任何進展。

The overhead issue. We have been very, very, very good, I would say, over the last nine months of reassessing some of the overhead costs of the company, repurposing people, repurposing places where we had people, but where we could use them better in a different location and so I and we've got further, I'd say, another 5% to go in terms of that's already identified and has taken pretty much taken place in terms of our overhead, but Spain, it represents a real cost savings for us. I would say it's kind of in the order of about $1 million to $1.5 million a year.

開銷問題。我想說，在過去的九個月裡，我們重新評估了公司的一些間接費用，重新調整了人員的用途，重新調整了我們擁有人員的地方，但我們可以在不同的地方更好地利用他們位置，所以我和我們還有更多，我想說，就已經確定的方面而言，還有5% 的支出，並且在我們的管理費用方面已經發生了很大一部分，但西班牙，這代表了真正的成本節省我們。我想說每年大約是 100 萬到 150 萬美元。

And the amount of profit or loss from the sale of the property?

出售房產的獲利或虧損金額是多少？

Yes. Well, you get your profit in two ways. We had very attractive financing on that property from one of the Spanish banks and it was there was a significant excess cash flow from that property for probably the five or six or seven years that we owned. So the returns ended up being very good, but the most of the return really came from the distribution of cash over the time we held it.

是的。好吧，你透過兩種方式獲得利潤。我們從一家西班牙銀行獲得了對該房產的非常有吸引力的融資，而且在我們擁有的五、六、七年裡，該房產可能有大量過剩的現金流。因此，回報最終非常好，但大部分回報實際上來自我們持有現金期間的分配。

Yes. So the third quarter impact from the sale itself is going to be negligible in terms of the gain.

是的。因此，就收益而言，第三季銷售本身的影響可以忽略不計。

Great. Thank you.

偉大的。謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Bill McMorrow, CEO for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議轉回執行長比爾·麥克莫羅 (Bill McMorrow) 發表閉幕詞。請繼續。

Well, thank you everybody for listening in today. We're very pleased with where we're at and as always, if there are any other questions that you've got, any of us are available to talk with you at any time. So thank you.

好的，謝謝大家今天的收聽。我們對目前的狀況感到非常滿意，並且一如既往，如果您還有任何其他問題，我們中的任何人都可以隨時與您交談。所以謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。