Kennedy Wilson 1Q-2022 Investor Presentation
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Kennedy Wilson 1Q-2022 Investor Presentation
TABLE OF CONTENTS
SECTION 1
Strategic Review Page 2
SECTION 2
Real Estate Portfolio and Creation Page 7
Valuation Opportunities
SECTION 3
Investment Management Platform Page 14
SECTION 4
ESG Page 16
SECTION 5
Financial Review Page 19
SECTION 6
Western U.S. Markets Page 23
SECTION 7
European Markets Page 28
© KENNEDY WILSON
SECTION 8
Appendix Page 35
90 East, Issaquah, Washington, U.S.
1Q-2022 Investor Presentation 1
© KENNEDY WILSON
S T R AT EG I C R E V I E W
The Clara, Boise, Idaho, U.S.
1Q-22 HIGHLIGHTS
Adjusted EBITDA: $160M (vs $128M in 1Q-21)
Financial Adjusted Net Income: $85M (vs $47M in 1Q-21)
Highlights
EPS: $0.24 per diluted share (vs ($0.04) in 1Q-21)
Revenue +11% and NOI +14% in global market-rate same-property portfolio
Strong Multifamily
Performance 14% NOI growth in U.S.; double-digit NOI growth across every U.S market-rate region
Completed $1.0B of Investment Transactions
6% Growth In NOI
and Fee-Bearing Estimated Annual NOI increased by 6% to $461M; +19% from 1Q-21
Capital Fee-Bearing Capital increased by 6% to $5.3B; +29% from 1Q-21
Secured expanded commitment to EU Logistics Platform
Expanded EU
Logistics Platform Target asset purchases increased to $2.5B from initial $1.0B target
Target by $1.5B
EU logistics assets grew to $1.2B, with $0.7B under offer (incl. commingled fund purchases)
+$250M or 14% growth in net loans outstanding in 1Q
+14% Growth in
Debt Platform Platform to $2.2B (incl. $266M in future funding); $1.8B in Fee-Bearing Capital
© KENNEDY WILSON
Fairfax Preferred $300M preferred equity investment by Fairfax Financial Holdings
Investment +
Fairfax increased its Debt Platform target from $2B to $5B
Platform Upsize
1Q-2022 Investor Presentation 3
KENNEDY WILSON AT A GLANCE
(NYSE: KW)
$23B 36,500
Real Estate AUM1 Multifamily Units
4.3% 24M
Dividend Yield2 Commercial Sq Ft
© KENNEDY WILSON
1 ) As defined in definitions section in the appendix
2 ) Based on annual dividend of $0.96 and closing share price of $22.41 on 5/4/22 Capital Dock, Dublin, Ireland
1Q-2022 Investor Presentation 4
ABOUT KENNEDY WILSON
We are a leading global real estate investment company. We own,
operate and invest in real estate directly and through our investment
management platform. We focus on multifamily and office properties
located in the Western U.S., UK, and Ireland.
Multifamily: Radius Office: 150 El Camino Development: Coopers Cross
Seattle, WA, U.S. Beverly Hills, CA, U.S. Dublin, Ireland
© KENNEDY WILSON
1Q-2022 Investor Presentation 5
THE KENNEDY WILSON ADVANTAGE
Globally diversified real estate portfolio in growing markets with
complementary investment management platform
Long-term relationships with major financial institutions
Local expertise to accretively allocate capital
First-mover advantage from early entry in key target markets
Proven 33-year track record as global real estate operator and
investor across the capital structure
© KENNEDY WILSON
1Q-2022 Investor Presentation 6
© KENNEDY WILSON
R EA L E S TAT E P O R T F O L I O
A N D VA LU E C R EAT I O N
O P P O R T U N I T I ES Bristol at Southport, Renton, Washington, U.S.
TWO KEY INVESTMENT SEGMENTS
Consolidated Portfolio Co-Investment Portfolio
Targeting wholly-owned investments with Includes real estate and loan investments
accretive asset management opportunities with strategic partners and commingled
fund business (KW ownership 5-50%)
U.S. Multifamily: Lofts at 10 Mile, UK Office: Embassy Gardens European Logistics: Northern Cross U.S. Office: San Mateo Gateway
Boise, ID Nine Elms, London, UK Dublin, Ireland San Mateo, CA
$295M 97% $166M $5.3B
© KENNEDY WILSON
Estimated Annual NOI1 KW Ownership Estimated Annual NOI1 Fee-Bearing Capital1
(KW Share)
1 ) As defined in definitions section in the appendix
1Q-2022 Investor Presentation 8
EXCELLENT SCALE ACROSS MULTIFAMILY AND OFFICE
Sectors Geography
$461M Multifamily: 52%
Office: 33%
$461M Western U.S.: 59%
UK: 20%
Estimated Estimated
Annual NOI1 Retail: 9% Annual NOI1 Ireland: 18%
Hotel / Loans / Italy & Spain: 3%
Industrial: 6%
385 36,465 24.2 94.5%
No. of investments No. of Commercial
Occupancy4
multifamily units2 Area (sq ft)3
© KENNEDY WILSON
1 ) As defined in definitions section in the appendix
2 ) Includes 208 lease-up units and 4,593 units under development
3 ) Includes 2.3m sq ft of lease-up assets and 0.6m sq ft under development
4 ) Occupancy at share of stabilized multifamily and commercial assets only and excludes lease-up portfolio
1Q-2022 Investor Presentation 9SUBURBAN ASSETS COMPRISE 73% OF MULTIFAMILY AND OFFICE NOI
Multifamily and Office
$391M Suburban: 73%
Multifamily: Mission Hills, Camarillo, CA, U.S.
Estimated Urban: 27%
Annual NOI
© KENNEDY WILSON
Office: Hamilton Landing, Novato, CA, U.S.
1Q-2022 Investor Presentation 10OFFICE NOI: 89% FROM LOW AND MID-RISE PROPERTIES
Low / Mid / High-Rise
Low-rise: 31%
$150M Mid-rise: 58%
Estimated High-rise: 11%
Annual NOI
Low-rise office: The Heights, Weybridge, UK
Tenant Concentration
Single Tenant /
$150M Business Park: 69%
Estimated Multiple: 31%
Annual NOI
© KENNEDY WILSON
Mid-rise office: 90 East, Issaquah, WA, U.S.
1Q-2022 Investor Presentation 11DEVELOPMENT AND LEASING PIPELINE TO ADD ~$101M IN NOI
2022-2023 2024-2025
$33M $68M
Kildare Street, Dublin 2 Dovetail, Boise, Idaho Kona Village Resort, Kona, Hawaii
136 El Camino, Beverly Hills, CA Oxbow, Bozeman, Montana Coopers Cross, Dublin
© KENNEDY WILSON
38° North Phase II, Santa Rosa, CA Grange, Dublin University Glen, Camarillo, CA
Based on completion date for development projects . The scope of these projects are subject to change.
1Q-2022 Investor Presentation 12NOI DELIVERY FROM COMPLETION OF DEVELOPMENT & FUTURE LEASING
+$101M if Est. Ann. NOI by 2025
$60
$55
$50
$21
$40
$30
$23
$20 $8
$34
$13
$10 $3
$10
$15
$9 $10
$0
2022 2023 2024 2025
US Europe
© KENNEDY WILSON
1Q-2022 Investor Presentation 13© KENNEDY WILSON
I N V E ST M E N T M A N A G E M E N T
P L AT F O R M
Clancy Quay, Dublin, IrelandFEE-BEARING CAPITAL RAISED FROM BROAD INSTITUTIONAL INVESTOR BASE
Investor Type Investor By Geography
Investor Type
Insurance Geography
Company: 49%
Canada: 34%
$5.3B Sovereign Wealth
Fund: 18% $5.3B U.S.: 28%
Fee-Bearing Pension Fund: 14% Fee-Bearing Asia: 22%
Capital1,2 Capital1
Family Office: 8% Europe: 10%
Private Equity: 7% Middle East: 6%
RIA: 3%
Other: 1%
+$4.7B pipeline of capital from announced platforms
© KENNEDY WILSON
1 ) As defined in definitions section in the appendix
2 ) 19% of Fee-Bearing Capital is through commingled funds. 66% of Fee-Bearing Capital is from Real Estate investments, 34% from Loan Investments.
1Q-2022 Investor Presentation 15© KENNEDY WILSON
E S G OV E RV I E W
Kona Village Resort, Kona, Hawaii 16OUR ESG PROGRAM FOCUSES ON FOUR PILLARS
© KENNEDY WILSON
1Q-2022 Investor PresentationESG PROGRAM AT A GLANCE
© KENNEDY WILSON
Please visit esg.kennedywilson.com for more information
1Q-2022 Investor Presentation 18© KENNEDY WILSON
FINANCIAL REVIEW
One Embassy Gardens , London, UKSOLID BALANCE SHEET WITH STRONG LIQUIDITY POSITION
Cash and Credit Facility Reduced Floating Rate Risk
$962M Cash: $462M 94% Fixed: 72%
Hedged via interest
Revolving credit Fixed or
Cash and Lines rate cap: 22%
facility: $500M hedged debt
of Credit (KW Share) Floating: 6%
Strong Credit Profile
3.6% 6.0yrs Stable Outlook
Weighted avg. Weighted avg. S&P Rating
cost of debt term to maturity
© KENNEDY WILSON
1Q-2022 Investor Presentation 20KEY ANNUAL FINANCIAL METRICS
Adjusted EBITDA Adjusted Net Income
$ in M $ in M
$928
$509
$713 $728 $443
$397
$608
$307
$456
$243
2017 18 19 20 21 2017 18 19 20 21
Fee-Bearing Capital1
EPS $ in B
$5.0
$2.24
$3.9
$1.58 $3.2 $3.0
$1.04
$0.83 $1.8
$0.66
© KENNEDY WILSON
2017 18 19 20 21 2017 18 19 20 21
1 ) As defined in definitions section in the appendix
1Q-2022 Investor Presentation 21COMPONENTS OF VALUE
Below Are Key Valuation Metrics as of March 31, 2022
Investments Kennedy Wilson’s Share ($ in millions)
Income Producing Assets Description Est. Annual NOI(1)(2)
1 Multifamily 31,664 units $240.6
2 Office 10.4 million sq ft 150.0
3 Retail and Industrial 10.9 million sq ft 51.5
4 Hotels 1 Hotel 8.5
5 Loans 33 investments (KW Loan Balance: $148.4) 10.3
Total Estimated Annual NOI $460.9
Lease-up, Development and Other Assets KW Gross Asset Value
208 multifamily units
6 Lease-up Portfolio $546.3
1.4 million office sq ft; 0.9 million retail sq ft
4,593 multifamily units
7 Development Projects 0.5 million office sq ft; 0.1 million industrial sq ft 720.4
One five-star resort
8 Residential and Other 19 investments 284.0
Total Gross Asset Value $1,550.7
Investment Management Adj. Fees(3)
9 Investment Management Asset management fees (T-12) $40.0
10 Investment Management Performance fees (T-12) 145.5
Total $185.5
Net Debt Total
11 KW Share of Debt Secured and Unsecured Debt $7,518.8
© KENNEDY WILSON
12 KW Share of Cash Cash (571.2)
Total Net Debt $6,947.6
(1), (2), (3) : See definitions in appendix
1Q-2022 Investor Presentation 22© KENNEDY WILSON
WESTERN U.S.
MARKETS
Prosper Place, Denver, Colorado, U.S.U.S. STABILIZED PORTFOLIO
$237m
$272M $272M
Estimated Estimated
Annual NOI1 Annual NOI1
Sectors Sectors
Multifamily: 77% Pacific Northwest: 34%
Office: 16% Mountain West: 33%
Retail / Industrial: 4% Southern California: 18%
Loans: 3% Northern California: 15%
© KENNEDY WILSON
1) As defined in definitions section in the appendix
1Q-2022 Investor Presentation 24MOUNTAIN WEST PORTFOLIO BY STATE
As of 1Q-22
Other2
11%
Colorado
13% Idaho
$89M 28% Alpine Meadows, Sandy, UT
Estimated
Annual NOI1
Nevada
22%
Utah
26%
© KENNEDY WILSON
Whitewater Park, Boise, ID
1 ) As defined in definitions section in the appendix
2 ) Includes New Mexico, Montana and Arizona
1Q-2022 Investor Presentation 25MOUNTAIN WEST REPRESENTS LARGEST APARTMENT REGION
216% Growth in Since 1Q-18
1Q-18 1Q-22
216%
Est. Ann. NOI1 $25M $79M
Multifamily units 129%
(stabilized)
5,006 11,445
Multifamily units
(under development)
845 1,034
© KENNEDY WILSON
1 ) As defined in definitions section in the appendix
1Q-2022 Investor Presentation 26VINTAGE HOUSING: GROWING OUR AFFORDABLE HOUSING PORTFOLIO
24% Growth in Stabilized Units by YE-24
Vintage at Urban Center, Lynwood, WA, U.S. Southside by Vintage, Seattle, WA, U.S. Steamboat by Vintage, Reno, NV, U.S.
At acquisition
(2Q-15) 1Q-22 4Q-241
Communities
(stabilized) 30 43 53
Stabilized
units
5,500 8,949 11,066
© KENNEDY WILSON
1 The figures below are projections. There can be no assurances that such projections will be realized, and actual results may be higher or lower than those indicated.
1Q-2022 Investor Presentation 27© KENNEDY WILSON
E U R O P EA N M A R K E T S
Coopers Cross, Dublin, IrelandEUROPE STABILIZED PORTFOLIO
$189M $189M
Estimated Estimated
Annual NOI1 Annual NOI1
Sectors Geography
Office: 57% United Kingdom: 49%
Retail: 17% Ireland: 43%
Multifamily: 16% Italy: 5%
Hotel: 5% Spain: 3%
Industrial / Loans: 5%
© KENNEDY WILSON
1) As defined in definitions section in the appendix
1Q-2022 Investor Presentation 29IRISH MULTIFAMILY: MARKET IMBALANCE CREATES OPPORTUNITY
Low institutional Urgent need for new Fewer apartment dwellers
ownership residential stock than other EU countries
342,612 34,000 46.2%
Private rental units Annual residential % of apartment dwellers
in Ireland1 requirement3 in EU countries5IRELAND: KW’S DOMINANT PRESENCE IN DUBLIN
1
Capital Dock 2
Alliance
Hanover Quay
Liffey Trust 1 3
12
8
Northbank 2 4
3
4 State Street 5
11
Alto Vetro 6
5
9
6 10 7
Coopers Cross
8
7 9
10
11
12
© KENNEDY WILSON
KW owned buildings
1Q-2022 Investor Presentation 31IRELAND: RESILIENT GROWTH MARKET OPPORTUNITY
Economic & Market Overview
One of the most defensive Destination for the world’s fastest
global economies growing industries4
+7.1%
GDP growth
forecasted in 20221
Global leader in innovation
1st Top 20
World ranking
for Ecological World ranking
Sustainability2 for innovation2
Top choice for UK to EU
Brexit relocations
High foreign direct investment
36 54%
Top 3 Fintech firms
targeting a
UK-based investment
managers shifting to
in the world3 Dublin relocation5 EU targeting Dublin5
© KENNEDY WILSON
1) Central Bank of Ireland Quarterly Bulletin (January 2022)
2) Global Innovation Index 2021, INSEAD / Cornell
3) Global Locations Trends Report 2019, IBM - Country in the world for high value FDI
4) Active tenant interest in the Dublin office market in 2022
5) EY Brexit Tracker March 2021, EY
1Q-2022 Investor Presentation 32STRONG OFFICE FUNDAMENTALS AND FAVORABLE UK & IRISH LEASE STRUCTURES
UK & Irish leases KW UK & Ireland office portfolio1
Long-term with 5-year
rent reviews
32%
99% Upward-only
FRI leases rent reviews or
fixed uplifts
Upward-only rent
reviews in UK (and
pre-2010 in Ireland)
8.0yrs 5.5yrs
WAULT WAULT
‘Full repairing and (to expiry) (to first break)
insuring’ (FRI) leases
with minimal leakage
from gross rents
© KENNEDY WILSON
1) Stabilized assets only
1Q-2022 Investor Presentation 33ROBUST EUROPEAN OFFICE FUNDAMENTALS DRIVING FUTURE GROWTH
Key European Office Markets For KW
Watford
Harlow
M25
M25
Reading
Windsor
London Hook
Farnborough
Dublin
London 1Q-22 South East 1Q-22 Dublin 1Q-22
Prime rents (£ psf) 125.00 Prime rents (£ psf) 38.50 Prime rents (€ psf) 58.50
Take-up (m sq ft)1 10.6 Take-up (m sq ft)1 2.0 Take-up (m sq ft)1 2.1
Vacancy (%) 9.0 Vacancy (%) 6.9 Vacancy (%) 6.9
© KENNEDY WILSON
1) Rolling 12-months
Source: CBRE.
1Q-2022 Investor Presentation 34© KENNEDY WILSON
APPENDIX
One Embassy Gardens , London, UKMULTIFAMILY PORTFOLIO: $241M OF ESTIMATED ANNUAL NOI 1
Seattle
WA
MT
Portland OR
Reno
ID Boise
NV
San Francisco UT Salt Lake City
CA Dublin
Bay Area Las Vegas
AZ
Los Angeles
Cork
U.S. Ireland
$209.6M Assets Units $31.0M Assets Units
Est. Ann. NOI1 1102 29,1202 Est. Ann. NOI1 113 2,5443
Mountain West4 Pacific Northwest (WA, OR) Dublin County Dublin
$79.1M $72.3M $20.6M $7.6M
Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1
Assets Units Assets Units Assets Units Assets Units
41 11,445 49 11,204 8 1,622 2 716
Southern California Northern California Cork
$30.2M $28.0M $2.8M
Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1
© KENNEDY WILSON
Assets Units Assets Units Assets Units
10 3,204 10 3,267 1 206
1) As defined in definitions section of appendix. Stabilized, at KW share
2) Excludes 18 assets with 208 units in lease-up and 3,603 units under development
3) Excludes 3 assets with 990 units under development
4) Includes Idaho, Nevada, Utah, Colorado, New Mexico, Montana and Arizona
1Q-2022 Investor Presentation 36OFFICE PORTFOLIO: $150M OF ESTIMATED ANNUAL NOI 1
Seattle
WA Milan
MT
OR
ID Rome
WY
NV UT
San Francisco CO
CA Denver
Bay Area
Dublin
AZ
Los Angeles London
U.S. Europe
$42.9M Assets Area (sq ft) $107.1M Assets Area (sq ft)
Est. Ann. NOI1 212 6.2M2 Est. Ann. NOI1 293 4.2M3
Pacific Northwest Southern California UK Ireland
$18.2M $12.0M $66.7M $31.3M
Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1
Assets Area (sq ft) Assets Area (sq ft) Assets Area (sq ft) Assets Area (sq ft)
3 1.2M 6 1.5M 13 2.4M 9 1.1M
Northern California Mountain West (CO,UT) Italy
$10.2M $2.5M $9.1M
Est. Ann. NOI1 Est. Ann. NOI1 Est. Ann. NOI1
© KENNEDY WILSON
Assets Area (sq ft) Assets Area (sq ft) Assets Area (sq ft)
7 1.8M 5 1.7M 7 0.7M
1) As defined in definitions section of appendix. Stabilized, at KW share.
2) Excludes 2 lease-up assets totaling 0.5m sq ft
3) Excludes 8 lease-up assets and 5 assets under development totaling 1.4m sq ft
1Q-2022 Investor Presentation 37KW TOP 20 ASSETS
KW share Commercial Units Acquisition
Accounts for 35% of Location
Asset name Estimated Annual
Region NOI Sector
of NOI2 (000 sq ft) /rooms date
1 Bella Vista Richmond, CA Nor. California Multifamily 15.6 - 1,008 May-11
2 90 East Issaquah, WA Pacific Northwest Office 15.2 587 - Jun-17
3 111 BPR London UK Office 14.7 216 - Nov-14
4 Embassy Gardens London UK Office 11.2 155 - Jun-21
5 Capital Dock Dublin Ireland Mixed-Use 10.9 243 190 Dec-14
6 Clancy Quay Dublin Ireland Multifamily 9.9 - 865 Jun-13
7 Shelbourne Dublin Ireland Hotel 8.5 - 265 Aug-14
8 La Vista Santa Maria, CA So. California Multifamily 7.0 - 460 Dec-11
9 Mission Hills Camarillo, CA So. California Multifamily 7.0 - 386 Aug-16
10 Towers Manchester U.K. Office 6.6 288 - May-16
11 Belara Auburn, WA Pacific Northwest Multifamily 6.5 - 430 Jul-16
12 Atlas Issaquah, WA Pacific Northwest Multifamily 6.1 - 343 Nov-17
13 Hamilton Landing Novato, CA Nor. California Office 6.1 345 - Nov-19
14 Moraleja Green Madrid Spain Retail 6.0 333 - Dec-15
15 Stillorgan Co. Dublin Ireland Retail 5.9 157 - Jun-14
16 Russell Court Dublin Ireland Office 5.7 139 - Jun-14
17 Heights London U.K. Office 5.7 356 - Dec-19
18 3001 Park Henderson, NV Mountain West Multifamily 5.7 - 528 Dec-21
19 Bristol at Southport Renton, WA Pacific Northwest Multifamily 5.6 - 383 Sep-21
20 Waverleygate Edinburgh U.K. Office 5.4 204 - Feb-22
$165.3 3,024 4,858
© KENNEDY WILSON
1) As defined in definitions section of appendix.
2) Represents Estimated Annual NOI. As defined in definitions section of appendix.
1Q-2022 Investor Presentation 38RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
($ in M) 1Q-22 2021 2020 2019 2018
Net income $40.0 $336.4 $107.8 $321.1 $212.1
Non-GAAP adjustments:
Add back:
Interest expense 50.5 192.4 201.9 214.2 238.2
Loss on early extinguishment of debt - 45.7 9.3 0.9 -
Kennedy Wilson’s share of interest expense included in unconsolidated
11.3 40.2 33.0 32.1 26.0
investments
Depreciation and amortization 43.3 166.3 179.6 187.6 206.1
Kennedy Wilson’s share of depreciation and amortization included in
1.1 5.3 6.9 8.2 13.2
unconsolidated investments
Provision for income taxes 8.2 126.2 43.6 41.4 58.0
Kennedy Wilson’s share of taxes included in unconsolidated investments - - 1.1 - -
Share-based compensation 7.1 28.7 32.3 30.2 37.1
EBITDA attributable to noncontrolling interests (1.4) (13.3) (7.5) (107.6) (78.0)
© KENNEDY WILSON
Adjusted EBITDA $160.1 $927.9 $608.0 $728.1 $712.7
1Q-2022 Investor Presentation 39RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
($ in M) 1Q-22 2021 2020 2019 2018
Net income $40.0 $336.4 $107.8 $321.1 $212.1
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization 43.3 166.3 179.6 187.6 206.1
Kennedy Wilson’s share of depreciation and amortization included in
1.1 5.3 6.9 8.2 13.2
unconsolidated investments
Share-based compensation 7.1 28.7 32.3 30.2 37.1
Preferred dividends and accretion of preferred stock
(5.3) (17.2) (17.2) (2.6) -
issuance costs
Net income attributable to noncontrolling interests, before depreciation and
(0.8) (10.5) (2.5) (102.0) (71.5)
amortization
Adjusted Net Income $85.4 $509.0 $306.9 $442.5 $397.0
© KENNEDY WILSON
1Q-2022 Investor Presentation 40ESTIMATED ANNUAL NOI RECONCILIATION
($ in M) 1Q-22
Rental Revenues $104.2
Hotel Revenues 6.5
Rental (Expenses) (35.7)
Hotel (Expenses) (4.3)
Loans and other 2.3
Consolidated NOI $73.0
Adjustments:
Non-controlling interest (1.3)
NOI from Unconsolidated investments (KW Share) 38.7
Property-Level NOI – 1Q-22 (KW Share) $110.4
Adjustments:
Assets acquired and disposed (net) 0.4
Lease-up and development portfolio 1.0
Hotel operations (0.1)
Assets owned and occupied by Kennedy Wilson 1.2
Amortization of above/below market leases (net) (1.0)
Straight-line and free rent (net) 2.8
Non-recurring income/expense, FX, and other 0.5
© KENNEDY WILSON
1Q-22 Estimated NOI $115.2
Estimated Annual NOI – March 31, 2022 $460.9
1Q-2022 Investor Presentation 41APPENDIX
DEFINITIONS:
Adjusted EBITDA: represents net income before interest expense, loss on early extinguishment of debt, our share of interest expense included in unconsolidated investments, depreciation and amortization, our share of depreciation
and amortization included in unconsolidated investments, provision for (benefit from) income taxes, our share of taxes included in unconsolidated investments, share-based compensation, and EBITDA adjustments attributable to
noncontrolling interests. Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com. Our management uses Adjusted
EBITDA to analyze our business because it adjusts net income for items we believe do not accurately reflect the nature of our business going forward or that relate to non-cash compensation expense or noncontrolling interests. Such
items may vary for different companies for reasons unrelated to overall operating performance. Additionally, we believe Adjusted EBITDA is useful to investors to assist them in getting a more accurate picture of our results from
operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when analyzing our operating performance, readers should use Adjusted EBITDA in addition to, and not as an alternative for, net income as
determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA
is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not remove all non-cash items (such as acquisition-related gains) or consider certain cash requirements such as tax and debt service
payments. The amount shown for Adjusted EBITDA also differs from the amount calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and
are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.
Estimated Annual NOI: “Estimated Annual NOI" is a property-level non-GAAP measure representing the estimated annual net operating income from each property as of the date shown, inclusive of rent abatements (if applicable).
The calculation excludes depreciation and amortization expense, and does not capture the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements,
and leasing commissions necessary to maintain the operating performance of our properties. For the Company’s hotel portfolio, the Company provides a trailing-12 month NOI of $8.5 million, which excludes the period during which
the hotel was fully closed due to restrictions related to the COVID-19 pandemic. Additionally, for assets wholly-owned and fully occupied by KW, the Company provides an estimated NOI for valuation purposes of $4.1 million, which
includes an assumption for applicable market rents. Any of the enumerated items above could have a material effect on the performance of our properties. Also, where specifically noted, for properties purchased in 2022, the NOI
represents estimated Year 1 NOI from our original underwriting. Estimated year 1 NOI for properties purchased in 2022 may not be indicative of the actual results for those properties. Estimated Annual NOI is not an indicator of the
actual annual net operating income that the Company will or expects to realize in any period. Please also see the definition of "Net operating income" below. Please also see the reconciliation to GAAP in the Company’s supplemental
financial information included in this release and also available at www.kennedywilson.com.
Fee-Bearing Capital: "Fee-Bearing Capital" represents total third-party committed or invested capital that we manage in our joint-ventures and commingled funds that entitle us to earn fees, including without limitation, asset
management fees, construction management fees, acquisition and disposition fees and/or promoted interest, if applicable.
Gross Asset Value: Refers to the gross carrying value of assets, before debt, depreciation and amortization, and net of noncontrolling interests.
Property-level NOI is a non-GAAP measure calculated by deducting the Company's ProRata share of rental and hotel property expenses from the Company's Pro-Rata rental and hotel revenues and includes income from loan
investments.
Real Estate AUM: Generally refers to the properties and other assets with respect to which we provide (or participate in) oversight, investment management services and other advice, and which generally consist of real estate
properties or loans, and investments in joint ventures. Our Real Estate AUM is principally intended to reflect the extent of our presence in the real estate market, not the basis for determining our management fees. Our Real Estate
AUM consists of the total estimated fair value of the real estate properties and other real estate related assets either owned by third parties, wholly-owned by us or held by joint ventures and other entities in which our sponsored
funds or investment vehicles and client accounts have invested.
FOOTNOTES (as referenced on Components of Value slide):
(1) Please see above for a definition of Estimated Annual NOI and a description of its limitations. The Company does not provide a reconciliation for Estimated Annual NOI to its most directly comparable forward looking GAAP
financial measure, because it is unable to provide a meaningful or accurate estimation of each of the component reconciling items, and the information is not available without unreasonable effort. This is due to the inherent difficulty
of forecasting the timing and/or amount of various items that would impact Estimated Annual NOI, including, for example, gains on sales of depreciable real estate and other items that have not yet occurred and are out of the
Company’s control. For the same reasons, the Company is unable to meaningfully address the probable significance of the unavailable information and believes that providing a reconciliation for estimated annual NOI would imply a
degree of precision as to its forward-looking net operating income that would be confusing or misleading to investors.
(2) Based on weighted-average ownership figures held by KW.
(3) Annual figures are representative of the trailing 12 months and are not indicators of the actual results that the Company will or expects to realize in any period
© KENNEDY WILSON
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