Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q3 2022 Earnings Conference Call November 3, 2022 12:00 PM ET

Company Participants

Daven Bhavsar - Vice President of Investor Relations

William McMorrow - Chairman and CEO

Justin Enbody - CFO

Matt Windisch - Executive Vice President

Mary Ricks - President

Conference Call Participants

Anthony Paolone - JPMorgan

Wendy Ma - Evercore

Operator

Good morning, and welcome to the Kennedy-Wilson Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Daven Bhavsar, VP of Investor Relations. Please go ahead.

Daven Bhavsar

Thank you, and good morning. This is Daven Bhavsar. Joining us today from Kennedy-Wilson are Bill McMorrow, Chairman and CEO; Mary Ricks, President; Matt Windisch, Executive Vice President; and Justin Enbody, CFO.

Today's call will be webcast live and will be archived for replay. The replay will be available by phone for 1 week and by webcast for 3 months. Please see the Investor Relations website for more information.

On this call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. You can find a description of these items, along with the reconciliation of the most directly comparable GAAP financial measure, and our third quarter 2022 earnings release, which is posted on the Investor Relations section of our website.

Statements made during this call may include forward-looking statements. Actual results may materially differ from forward-looking information discussed on this call due to a number of risks, uncertainties and other factors indicated in reports and filings with the Securities and Exchange Commission.

I would now like to turn the call over to our Chairman and CEO, Bill McMorrow.

William McMorrow

Thanks, Daven. Good morning, everybody, and thank you for joining us today. Yesterday, we reported our third quarter results, which showed that our business and our portfolio continued to perform very well against the challenging macroeconomic environment stemming, in large part, from elevated global levels of inflation and the actions taken by the world's central banks.

Our $22 billion in assets under management is comprised of over 37,000 multifamily units and 27 million square feet of commercial properties. Within our portfolio, we have many drivers that will contribute to our future growth. These include organically growing our multifamily net operating income, further expansion of our debt and industrial portfolios and the near-term completion of our $3 billion development pipeline, which is expected to produce $92 million of incremental NOI to KW, 83% of which we expect to be stabilized by the end of 2024. These areas of growth should meaningfully add to our $473 million of estimated annual NOI, which is up 9% for the year and up 15% from Q3 of '21; and to our $5.6 billion of fee-bearing capital, which has increased by 12% for the year and by almost 50% in the last 2 years.