Kennedy-Wilson Holdings Inc.

Good day, and welcome to the Kennedy-Wilson fourth quarter 2022 earnings conference call. All participants will be in a listen-only mode, and should you need any assistance during the duration of the call, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw a question, please press star, then two. Please note that this event is being recorded today. I would now like to turn the conference over to Devin Bovsar, Vice President of Investor Relations. Please go ahead.

Thank you and good morning. This is Devin Bovsar 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 in our fourth 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 the 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.

Thank you, Davin. Welcome, everybody. Good morning. Yesterday, we reported our fourth quarter and full year results for 2022, and I'm pleased with the performance of our company and how we delivered on our strategic initiatives. On the earnings front, we generated $592 million of adjusted EBITDA in 2022, which includes an increase in our recurring NOI and fees by 76 million, offset by lower gains from asset sales and changes to our fair value portfolio. Estimated annual NOI grew by 13% to a record $491 million during the year. Our fee-bearing capital grew by 18% to a record 5.9 billion. These results were in line with the goals that we set out at the beginning of the year. Our assets under management closed the year at 23 billion, up from 18 billion just two years ago. We've concentrated almost two-thirds of our stabilized portfolio in sectors where we saw strong cash flow growth, including apartments, logistics, hotel, and our floating rate loan portfolio. Fundamentals remain strong across these sectors, with multifamily same-store NOI growing by 11% in 2022. We ended the year with strong occupancy across our stabilized apartment and commercial portfolio of over 95%. Turning to our investment activity, As we continue to see lower transaction volumes, we remain very patient on our new investments. In Q4, our capital deployment was primarily through our debt platform, which is generating attractive, unlevered, double-digit returns for our shareholders and towards completion of our $3 billion construction pipelines. On the disposition front, we completed $127 million of sales from our consolidated portfolio in the quarter. The key disposition related to the partial sale of a 208 unit California apartment community in Santa Maria. We sold a 49% interest in this property into our U.S. multifamily joint venture platform at a price of $470,000 per door. We also further reduced our retail portfolio, and in total, our consolidated sales generated $58 million of cash and $53 million of gains on sale. In our coal investment portfolio, our coal mingled funds completed $184 million of sales, totaling 333,000 commercial square feet in Q4. As we look ahead, we see a number of important areas for growth for KW. First is the NOI we expect to deliver from completion of several large development projects. A recent track record has shown our team's ability to deliver and stabilize assets on time and ahead of business plan, including five multifamily and office assets that we stabilized in 2022 generating $10 million of annual NOI. In 2023, we expect complete construction on almost every single development project that is currently underway, with stabilization expected between 12 to 18 months after construction. In total, we expect to generate $96 million of additional NOI to KW, from our development and lease up portfolio when these assets are stabilized. Second, our investment management platform, which has been the fastest growing part of our business in recent years, is well positioned to continue growing. We anticipate this growth will be driven by our debt and logistics platform, both of which have strong pipelines of opportunities. These platforms are funded by very well-capitalized partners who continue to have a desire to deploy capital with KW. And third, our multifamily portfolio is poised to continue its growth as renters continue to look for amenity-rich, high-quality communities located in markets that are experiencing job growth and also provide a very high quality of life. With that, I'd like to turn the call over to our CFO, Justin Enbody, to discuss our financial results.