Kennedy Wilson Europe Real Estate (KWE) is externally managed by US-based Kennedy Wilson and was the London Stock Exchange's second largest ever real-estate initial public offering when it floated in February - that raised £1bn at £10 a share.
Since then, the group has used the proceeds to fund eight acquisitions comprising 74 direct real-estate assets and two loan portfolios, secured by 25 properties. The combined total portfolio's gross income reached £75.4m, giving a gross yield of 7.6 per cent. Just under two-thirds of the portfolio is in the UK with the balance in Ireland.
A further three acquisitions have been made since the period ended, comprising two direct real-estate assets and one loan portfolio. The £118.4m used for these acquisitions was raised through taking on £127m of debt, secured against two existing real-estate holdings in the Tiger and Artemis portfolios. Further acquisitions can be expected, too - as banks and other institutions continue to deleverage - and a number of potential purchases are currently at different stages of evaluation.
Profits included a £24.2m revaluation of assets, leaving the company with a modest loan-to-book value of just 17.3 per cent. Moreover, increasing demand for space has allowed management to successfully lease out vacant space and to renew leases at market rates - total occupancy is currently running at 89 per cent.
| KENNEDY WILSON EUROPE REAL ESTATE (KWE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,066p | MARKET VALUE: | £1.07bn | |
| TOUCH: | 1,065-1,070p | 12-MONTH HIGH: | 1,115p | LOW: 980p |
| DIVIDEND YIELD: | 0.2% | DEVELOPMENT PROP: | £7.2m | |
| PREMIUM TO NAV: | 7% | |||
| INVESTMENT PROP: | £929m | NET DEBT: | 8%* | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 991 | 24.7 | 37.6 | 2 |
| % change | - | - | - | - |
Ex-div: 13 Aug Payment: 29 Aug *Includes £25m of restricted cash | ||||
