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Interim Management Statement quarterly dividend doubled to 4 pence per share

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 interim management statement for the period from 1 July 2014 to the date of this announcement (the “Period”).

Operational highlights:

  • £149.0 million of acquisitions completed in the Period across three properties and one loan portfolio, reflecting a blended net initial yield of 6.7%
  • In total £1,156.2 million of acquisitions have been made over the last eight months since listing
  • Property portfolio occupancy1 of 95.0% with WAULT2 of 8.1 years (9.5 years to expiry)
  • 244,485 sq ft of new lettings, generating annualised rental income of £1.6 million on average lease lengths of 12.0 years

1.    Excluding hotels, weighted by net rental income
2.    Weighted average unexpired lease term (“WAULT”) is to the shorter of first break or expiry, weighted by net rental income; excluding hotels and residential

Financial highlights:

  • EPRA NAV of £999.8 million or 997.6 pence per share1, as at 30 September 2014, an increase of 2.1% over the NAV at IPO in February of 977.0 pence per share
  • Quarterly dividend doubled to 4.0 pence per share
  • In October, £343 million of net proceeds raised in secondary offering
  • £311 million of new debt financings agreed and fully drawn bringing total debt to £497 million; a further £225 million revolving credit facility (“RCF”) agreed and undrawn; Group weighted average interest rate sits at 3.0% with a weighted average term to maturity of 4.7 years across all financings; LTV of 32.5% falls to 26.5% pro forma after taking account of the net proceeds following the secondary offering

1.    IFRS NAV of £1,005.1 million or 1,002.9 pence per share

Charlotte Valeur, Chair of Kennedy Wilson Europe Real Estate Plc, commented:
“The KWE team has made material progress on the strategy presented to shareholders at the time of IPO – capitalising on a significant investment pipeline and enhancing the income component of total shareholder return by doubling the quarterly dividend. The board is pleased to declare an increase in the dividend to 4.0 pence per share which reflects the Board’s optimism in the robust cash flows of the business.”

Mary Ricks, President and CEO of Kennedy Wilson Europe, commented:
“Having fully invested the proceeds from our IPO in February, the recent secondary offering along with debt financings puts KWE in a strong financial position with sufficient firepower to execute on our deep pipeline of opportunities.
“We will continue to opportunistically deploy capital across our target European markets, leveraging our in-house team of real estate professionals and employing a disciplined bottom-up investment approach, looking to benefit from market dislocations and pursuing value-enhancing asset management initiatives where we are already delivering on our yield on cost targets.”


Kennedy Wilson
151 S. El Camino Dr.
Beverly Hills, CA 90212

Phone: +1 (310) 887-6400
Fax: +1 (310) 887-3410