Kennedy Wilson Europe’s results for the year ended 31 December 2015 show its adjusted NAV climbing from 1025.2p to 1174.5p over the year. Adjusted EPS rose sharply from 25.9p to 47.9p as the portfolio became more established and the effects of gearing kicked in. They paid dividends of 35p during the year and have announced a 12p quarterly dividend. Net debt increased from £111.6m to £1.1bn as the geared up the portfolio – pushing the LTV up to 39.7% from 7.5%.
They added 217 properties to the portfolio during the year at a cost of £1.1bn – these were delivering an average yield on cost of 7.1% on acquisition. On a like for like basis the value of the property portfolio rose by 11.5%. they have been buying portfolios of distressed loans and took title to two office buildings in Dublin, one retail park in Cavan and one residential block in London, converting loans to direct real estate worth £140m.
They are targeting disposals totalling £300m and were almost half way through this at the year end with £124m of sales completed across 35 properties at an average exit yield of 5.7% generating a return on cost of 22.9%. they have completed a further £137.5m of sales since the year end.
At the year end, the £2.8bn property portfolio comprised 282 directly owned assets with a total area in excess of 11.8 million sq ft (excluding loans, hotels and development assets). This consists of a direct real estate and hotel portfolio value of £2.6bn and a further three loans secured by 20 assets, with a value of £179m.
They added £7.6m of incremental annualised net operating income through 233 leasing transactions across 1.3 million sq ft.
The portfolio now has 96.0% occupancy (+5.1 percentage points over the year), and WAULT of 7.3 years.
KWE : Kennedy Wilson Europe had a busy and profitable year