Kennedy-Wilson Holdings, Inc. operates as a real estate investment and services company in the United States, the United Kingdom, Ireland, Jersey, Spain, and Japan. It operates in two segments: KW Investments and KW Services. The KW Investments segment invests in various types of real estate investments, such as commercial real estate that includes office, industrial, retail, and mixed-use assets; and multifamily properties. This segment also offers loan originations/discounted loan purchases, which include individual notes on various real estate property types, as well as portfolios of loans purchased from financial institutions, corporations, and government agencies. In addition, it invests in residential properties, including land for entitlements, finished lots, urban infill condominium sites, and condominium projects, as well as invests in hotels and marketable securities. The KW Services segment offers real estate services for the full lifecycle of real estate ownership to clients that include financial institutions, institutional investors, insurance companies, developers, builders, and government agencies. This segment offers acquisition, asset management, and disposition services to its equity partners, as well as to third parties; and manages or advises on commercial and residential real estate for third-party clients, fund investors, and investments held by KW Group. It also provides data and analytics for the residential real estate development and new home construction industry; marketing programs for various investment grade and income producing real estate properties; and marketing and sales strategies for various types of commercial and residential real estate, including single family homes, mixed-use developments, estate homes, multifamily dwellings, new home projects, conversions, and scattered properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.
(Summary) (Company) (Chart)
28 February 2016
1yr Target $35.36
Payout Ratio 87.50%
1yr Cap Gain 80.31%
1yr Tot Return 83.16%
EPS (ttm) $0.64
EPS next yr $0.03
EPS next 5yr 25.00%
1yr Price Support $0.75
Market Cap $2.25 Bil
Revenues $603.70 Mil
Earnings $71.10 Mil
Profit Margin 11.77%
1yr EarnGR 51.45%
3yr EarnGR 106.67%
5yr EarnGR 64.25%
1yr DivGR 38.88%
3yr DivGR 35.30%
5yr DivGR ---
Quick Ratio ---
Current Ratio ---
The company's operations are defined by two core business units: KW Investments and KW Services. KW Investments invests our capital in real estate-related assets. KW Services provides a full array of real estate-related services to the Company and its investment partners, third party owners, and lenders, with a strong focus on financial institution based clients. Included in KW services is the management of KWE. The two segments have a symbiotic relationship and work closely together. KW Services provides insight and creates investment opportunities for KW Investments while KW Investments provides clients the ability to utilize the capabilities of KW Services.
Kennedy Wilson invests capital in real estate assets and loans secured by real estate with strategic partners through publicly traded companies, joint ventures, separate accounts, or funds. The company is typically the general partner in these joint ventures with a promoted interest in the profits of these investments beyond their ownership percentage. The Company has an average ownership interest across all investments of approximately 32%. Their equity partners include public shareholders, financial institutions, foundations, endowments, high net worth individuals and other institutional and investors.
The following are product types they invest in through the KW Investments segment:
Multifamily - The company pursues multifamily acquisition opportunities where they believe they can unlock value through a myriad of strategies, including institutional management, asset rehabilitation, repositioning and creative recapitalization. They focus primarily on apartments. As of December 31, 2014, KW holds investments in 20,721 multifamily apartment units across 105 properties primarily located in the Western United States, Ireland and Japan.
Commercial - The company sources, acquires, and finances various types of commercial real estate which includes office, industrial, retail, and mixed-use assets. After acquisition, the properties are generally repositioned to enhance market value. Assets are either sold as part of property-specific investment strategies designed to deliver above market returns for their clients and shareholders or held if producing above average returns. As of December 31, 2014, the company owns interests in 127 commercial properties, totaling over 14 million square feet, located throughout the United States, United Kingdom, Ireland, and Japan.
Loan Originations/Discounted Loan Purchases - The company acquires and/or originates loans secured by real estate. Acquisitions and originations include individual notes on all real estate property types as well as portfolios of loans purchased from financial institutions, corporations and government agencies. The company delivers value through loan resolutions, discounted payoffs, and sales. They also convert certain loans into a direct ownership in the underlying real estate collateral. Their discounted loan pool portfolio as of December 31, 2014 had current unpaid principal balance (“UPB”) of $1.1 billion. Also, as of December 31, 2014, the company's loan originations portfolio has an unpaid principal balance of $48.7 million with a weighted average interest rate of 10.1%.
Hotel, Residential and Other - The company also invests in hotels. In certain cases, the company pursues residential for sale housing acquisition opportunities, including land for entitlements, finished lots, urban condominium sites and partially finished and finished condominium projects. They also invest in marketable securities, which are typically real-estate related. They hold investments in over 4200 acres, 177 residential units, 619 lots and 975 hotel rooms.
KW Services offers a comprehensive line of real estate services for the full lifecycle of real estate ownership to clients that include shareholders of KWE, financial institutions, institutional investors, insurance companies, developers, builders and government agencies. KW Services has five main lines of business: investment management, property services, research, brokerage, and auction and conventional sales. These five business lines generate revenue for the company through fees and commissions.
The company manages over 71 million square feet of properties for the Company and its investment partners (including KWE) in the United States, Europe, and Asia. With 25 offices throughout the United States, the United Kingdom, Ireland, Jersey, Spain and Japan, the company has the capabilities and resources to provide property services to real estate owners to understand their client's concerns.
Additionally, KW Services supports the company's investment strategy by providing local market intelligence and real time data for evaluating investments, generating proprietary transaction flow and creating value through efficient implementation of asset management or repositioning strategies.
Investment Management - The company's investment management division provides acquisition, asset management and disposition services to their equity partners as well as to third parties. Currently the company has seven closed end funds for which the company serves as general partner and manager, and separate accounts with strategic partners.
Property Services - The company's property services division manages commercial real estate for third-party clients, fund investors, and investments held by Kennedy Wilson. In addition to earning property management fees, consulting fees, leasing commissions, construction management fees, disposition fees, and accounting fees, the property services division gives Kennedy Wilson insight into local markets and potential acquisitions.
Research - Meyers Research LLC or Meyers, a wholly-owned subsidiary of Kennedy Wilson, is a premier consulting practice and provider of data for residential real estate development and new home construction. Meyers’ offers a national perspective as well as local expertise to homebuilders, multifamily developers, lenders and financial institutions. These relationships have led to investment opportunities with homebuilders in the Western U.S. region. ZondaTM, a Meyers innovation launched in October 2013, is the housing industry’s most comprehensive solution for smart business analysis, real-time market data reporting and economic and housing data in one place and on-the-go.
Brokerage - The company's brokerage division represents tenants and landlords on every aspect of site selection, negotiation and occupancy. This division specializes in marketing programs tailored to client objectives for all types of investment grade and income producing real estate. The division’s property marketing programs combine proven techniques with its detailed market knowledge to create optimum results.
Auction and Conventional Sales - The auction and conventional sales division provides innovative marketing and sales strategies for all types of commercial and residential real estate, including single family homes, mixed-use developments, estate homes, multifamily dwellings, new home projects, and conversions. Generally the division’s auction sales business is countercyclical to the traditional sales real estate market and has been a bellwether for the company in forecasting market conditions.
Kennedy Wilson has a heritage dating back to 1977 in Santa Monica, CA. Some of the highlights in the company's history include:
1977 - Kennedy Wilson founded as a real estate auction company.
1988 - Company purchased by William McMorrow and partners. Auction marketing evolves into a global business with high-end property sales. Company has 11 employees in one office.
1992 - Company goes public on Nasdaq.
1993 - Kennedy Wilson makes first commercial acquisition, 520 Broadway in Santa Monica, CA.
1994 - Kennedy Wilson Japan office opens.
1995 - Commercial brokerage business launches with a focus on high value properties.
1998-1999 - Kennedy Wilson acquires Heitman Properties, Ltd. and six other real estate service companies to provide property management, leasing and construction management. Company also launches acquisition platform in Japan by acquiring Kawasaki Tech Center.
1999 - Fund management business launched.
2000 - Company launches multifamily value-added investment program.
2002 – IPO of Kennedy Wilson Japan completed. Lists on Tokyo Stock Exchange.
2009 - Kennedy-Wilson Holdings (NYSE:KW) goes public and raises $110 million of equity. Market cap is $400 million.
2011 - Kennedy Wilson Europe established when company acquires Bank of Ireland Real Estate Investment Management. Company sources and participates in the $1.5 billion recapitalization of Bank of Ireland. Company completes purchase of $1.8 billion UK loan portfolio, its first acquisition in Europe.
2012 - Company purchases the Alliance multifamily building, its first real estate purchase in Ireland. Kennedy Wilson acquires Meyers Research LLC, a premier consulting practice and the industry’s leading provider of data and analytics for residential real estate development and new home construction. Since going public, Kennedy Wilson and its partners complete over $10 billion in acquisitions.
2014 – Kennedy Wilson launches the £1 billion ($1.7 billion) IPO of Kennedy Wilson Europe Real Estate (LSE:KWE), the second largest real estate IPO in the history of the London Stock Exchange.
2015 - Kennedy Wilson establishes new headquarters at 151 S. El Camino Dr. in Beverly Hills, CA with 5,000 employees in 25 offices worldwide. Company’s global multifamily portfolio surpasses 25,000 units. Combined market cap of KWH and KWE is $5.5 billion.
Kennedy-Wilson Holdings declares $0.14/share quarterly dividend, 16.7% increase from prior dividend of $0.12. Forward yield 3.09% Payable April 7; for shareholders of record March 31; ex-div March 29.
In February 2015, KWE closed the acquisition of 163 of 180 mixed-use properties located throughout the United Kingdom for a purchase price of £443.6 million or approximately $670 million. The closing of the balance of the portfolio under contract (17 properties for a total of £59.4 million or ap- proximately $89 million) is scheduled to take place on a staggered basis during the next 12 months as various conditions under the purchase agreement are satisfied.
On February 25, 2015 our board of directors approved a $0.12 per share quarterly dividend, a 33% increase from the previous quarter, to common shareholders of record as of March 31, 2015 with a payment date of April 8, 2015. The quarterly payment equates to an annual dividend of $0.48 per common share.
While this company doesn't have a long track record, it really looks like the fundamentals are starting to take off. This is exactly the kind of company that I'm always looking for. It's a company that's been public for five years and it's increased its dividend five times. That's a nice track record and it builds confidence in the future of the company and its dividend.
I found this company by noticing that the company recently increased its dividend. I review these each week and list those companies increasing their dividend in the "Dividend Increases" section of this website. It's how I find a number of companies that I believe will do well since a dividend increase usually indicates that management also believes the company will do well.
I intend to start a small, rather than a large, position in this company because their track record is only five years long. This forces me to monitor the company more closely. As this company continues to grow revenues, earnings and especially dividends, I'll continue to add to my position. This investment could potentially be very lucrative and I may be getting in early on a great investment.