This may be the last set of numbers from Kennedy Wilson Europe Real Estate (KWE) after a move by its US investment manager Kennedy-Wilson Holdings to take full control of the close-ended fund. In June, the transaction had secured the support of 36 per cent of KWE's shareholders, although George Soros's Quantum Partners, which owns around 12 per cent of KWE, has been openly critical of the deal.
Headline profits for the six months to June were lower as a result of a much smaller valuation uplift on the portfolio, although rental income was 3 per cent higher at £96.5m. This was enough to lift adjusted net asset value by 2.1 per cent to 1,565.8p a share.
The group’s core operation performed strongly, with 76 commercial lease transactions completed in the first half covering 1.1m sq ft, delivering an uplift over previous passing rent of 13.1 per cent and outperforming the estimated rental value by 5.2 per cent. Capital recycling raised £57.6m from disposal of non-core assets, achieving a 6.1 per premium over book value. After the period-end, further disposals have generated £75m at an 11.6 per cent premium to the previous valuation. This puts KWE well on the way to achieving its £150m disposal target announced in February.
| KENNEDY WILSON EUROPE REAL ESTATE (KWE) | ||||
| ORD PRICE: | 1,138p | MARKET VALUE: | £1.44bn | |
| TOUCH: | 1,134-1,138p | 12-MONTH HIGH: | 1,157p | LOW: 913p |
| DIVIDEND YIELD: | 4.2% | TRADING PROPERTIES: | £88.9m | |
| DISCOUNT TO NAV: | 8% | NET DEBT: | 79% | |
| INVESTMENT PROPERTIES: | £2.66bn | |||
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p*) |
| 2016 | 1,236 | 81.6 | 57.9 | 24 |
| 2017 | 1,243 | 57.8 | 43.5 | 24 |
| % change | +1 | -29 | -25 | - |
| Ex-div: | 17 Aug | |||
| Payment: | 31 Aug | |||
| *Dividends paid quarterly XD and pay date refer to third quarterly dividend of 12p a share | ||||
