Kennedy-Wilson Holdings Inc.

Good day, and welcome to the Kennedy-Wilson second quarter 2023 earnings call and webcast. All participants will be in a listen-only mode. And should you need any assistance during 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 touchtone phone. And to withdraw a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Devin Bobsar, Vice President of Investor Relations. Please go ahead, sir.

Thank you, and good morning. This is Devin Bobsar, 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 second quarter 2023 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 McMorrin.

Bill McMorrin Kevin, thank you, and thank you, everybody, for joining our call. Yesterday, we reported our Q2 results, and I'm pleased with the continued progress we are making on our key growth initiatives. During the quarter, we completed the largest single transaction in our company's history, driving our assets under management to a record $25 billion, which has grown by 39% since the end of 2020. Estimated annual NOI grew to $499 million, and fee-bearing capital grew by 32% in the quarter to $7.9 billion, both at record levels for the company. Key-bearing capital has now doubled from the beginning of 2021. I'd like to start with a few highlights from the quarter, and then Justin will discuss our financial results in greater detail. As we've discussed on our recent calls, one of our core strengths has always been uncovering opportunities and finding unique ways to grow our company during periods of dislocation. This has been a recurring theme throughout our history, entering Japan in 1994, expanding outside of California, which began 20 years ago, and during the Great Recession with our initial entry into Ireland and the United Kingdom in 2011. In Q2, as multiple regional banks began to lose deposits, we were able to acquire off-market a very high-quality construction loan portfolio totaling $4.1 billion. which is purchased on a discounted basis from Pacific Western Bank. This transaction was one of the first significant loan transactions in this cycle and was sourced, underwritten, and closed in a very short period of time. Alongside the portfolio, we welcome the highly experienced PacWest construction lending team of 40 people at KW. In addition to these, team members significantly enhancing our credit capabilities, adding construction expertise to our existing specialties of bridge and mezzanine lending. Matt Windus will discuss this transaction in greater detail in just a moment. We also made substantial progress across all our developments, as several of them are now reaching completion. Our development and lease-up portfolio is expected to produce $99 million in NOI to KW, with the majority stabilizing by the end of next year. Also, Mary Ricks will also discuss these developments in more detail in just a moment. Looking ahead, our key priorities are centered around growing our assets under management, our net operating income, and our fees in three asset classes. First will be to expand our global credit business. We think there will be many opportunities on the credit side of the business, stemming from the pressure on the global banking system to reduce their balance sheet sizes and the pullback from nontraditional lenders and mortgage rates. Our expanded credit team of 50 people is ready to react to any opportunities that may arise in the United States, and in Europe, primarily in the United Kingdom and Ireland. Secondly, we anticipate that our multifamily portfolio will continue to drive cash flow growth. Our largely suburban garden-style U.S. communities continue to offer a high-quality lifestyle at an affordable price point, with additional cash flow expected from the 4,800 units in our development and lease-up pipelines. which will then grow our stabilized multifamily portfolio to over 37,000 units versus less than 30,000 units at the end of 2019. And third, we are focused on growing our cash flow in our 111 asset, 11 million square foot logistics portfolio. In-place rents are still significantly under market, paving a runway for future growth. Fundamentals remain strong within the logistics sector as we look to expand our platform with our partner over the next few years. With that, I'd like to turn the call over to our CFO, Justin Enbody, to discuss our financial results.