Kennedy-Wilson Holdings Inc.

good morning and welcome to the kennedy wilson third quarter 2022 earnings conference call all participants will be in listen only mode should you need assistance please signal conference specialist by pressing the star key followed by zero after today's presentation there'll be an opportunity to ask questions to ask a question you may press star them on your telephone keypad to withdraw your question please press star then two please note this event is being recorded I'd like to turn the conference over to Devin Bovstar, VP of Investor Relations. Please go ahead.

Thank you, and good morning. This is Devin Bovstar, and 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 one week and by webcast for three 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.

Thanks, Kevin. 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 a 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 two years. Roughly two-thirds of our NOI are from sectors where we are seeing strong cash flow growth, which include our apartment and logistics business, along with our loan portfolio and the Shelburne Hotel. We continue to see impressive revenue growth of 9% from our multifamily same property portfolio, where top line rents outpaced inflation as the high cost of home ownership is boosting demand for rental housing. The logistics market continues to see positive rental growth rates driven by low vacancy across the UK. Our global logistics portfolio, which now totals almost 11 million square feet, continued to remain almost fully occupied with occupancy at 99%. And our floating rate credit platform has continued to benefit from rising rates and a significant pullback from many of the larger traditional lenders as we continue to see a very robust pipeline of opportunities from institutional quality borrowers. The average spread on our floating rate loans is over 400 basis points, and in total, the platform is generating a return of 15% to KW. In Q3, we continued our strategic focus on multifamily debt and logistics. These sectors accounted for 100% of our $700 million of investments in the quarter. We grew our Mountain State presence by adding 260 units of best-in-class, wholly-owned apartment community in Albuquerque. And as part of this acquisition, we assumed debt with a fixed rate of 3.64%, with seven years left to maturity. In our co-investment portfolio, our key acquisitions included $234 million of U.S. and European logistics assets, and $320 million in loan originations. Our dispositions totaled $683 million in the quarter. Our largest consolidated sale was a 178-unit urban apartment community in Oakland, which we sold for $56 million at a 4% cap rate and generated a $25 million gain on sales. The IRR on this sale was 21% and resulted in a 2.5 times equity multiple. We also sold $51 million in the Western United States retail and $43 million in UK office assets, which were all consolidated and which generated $10 million in gains. And in our co-investment portfolio, we completed $525 million of disbursements dispositions in which we had a 15% ownership interest. As I've discussed in the past, we have a long-term track record and experience of investing through many decades, which has taught us some important lessons in navigating a period like we see today. First, our diversified portfolio is built to succeed across all cycles. 62% of our portfolio is comprised of multifamily logistics, and debt investments. These have been some of the best performing sectors where we have seen strong growth, and in the case of multifamily and logistics, rents are still significantly below market, which creates an ability to continue growing our cash flows. Second, a long-term principle of our capital and hedging strategy has been to protect against changes in interest and currency rates. While we are predominantly a fixed rate borrower, we increased our interest rate protection levels earlier in the year to manage any risk related to our floating rate debt. As of September 30th, 2022, 97% of our debt remains either fixed or hedged, and we have also hedged 87% of the carrying value of our European investments. We have minimal debt maturities in 2023, totaling $311 million, approximately 60% of which we currently plan to pay off using asset sales and existing cash. During the quarter, we restructured a number of our foreign currency hedges, generating $73 million of cash to KW while still maintaining a strong hedge position. Of note, since 2013, we have generated over $240 million of cash from realizations on our currency hedges. Finally, we have forged very important relationships with large strategic institutional partners that have invested successfully with us, particularly over the past decade. They continue to be well capitalized and remain active with Kennedy Wilson And with almost $4 billion of unspent non-discretionary committed capital in our announced platforms, we continue to evaluate ways of taking advantage of the new opportunities that may present themselves in the next 12 to 18 months. I'd now like to turn the call over to our CFO, Justin Enbody, to discuss our financial results in more detail.