Kennedy-Wilson Holdings Inc.

Good day and welcome to the Kennedy Wilson third quarter 2023 earnings call and webcast. All participants are in listen only mode. Should you need assistance, 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 touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Devin Bovsar, Head of Investor Relations. Please go ahead.

Thank you and good morning. Thank you for joining us today. 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 third 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 McMorrow.

Devin, thanks very much, and thank everybody for joining us this morning. I'm very pleased and honored, actually, to be here with Matt Windisch, who most of you know is the new president of Kennedy Wilson. Matt has been together with me here at Kennedy Wilson for 17 years. We've worked together on virtually every aspect of the company. During that period of time, I'm also joined by Justin Enbody, who was recently promoted to senior executive vice president of the company. And as you also know, has been the CFO of the company for the past 12 years. And then here with me today also is Mike Pegler, who is the newly appointed president of Kennedy Wilson Europe. And Mike has been with the company now going on eight years. And I think as you've heard on many of our management calls, the constant in our company has been over long, long periods of time, we keep the same group of people together at the company. And so I'm very, very honored to have these three people alongside me today. So I'd like to start by outlining how Kennedy Wilson's position for today's market environment and highlight our strategic focus before passing it to Justin to discuss our financial results. Yesterday, we reported our third quarter results, which were highlighted by continued growth in our investment management platform, positive growth from our global multifamily same property portfolio, and solid progress on completing and stabilizing our newly developed assets. E-bearing capital grew to a record $8.2 billion, and estimated annual NOI totaled $485 million as of the quarter end. Our results were also impacted by modest non-cash fair value adjustments, which Justin will discuss in a moment. Against the backdrop of high inflation, high interest rates, and geopolitical issues, I believe KW remains very well positioned to take advantage of the opportunities that come from these type of market dislocations. We have a proven history of doing this over our 35 years of investing experience. For example, in June, we sourced and acquired off-market a $4.1 billion construction loan portfolio from a regional bank at a discount, representing the largest single transaction in our company's history. This transaction was possible given our reputation in the banking industry and our ability to move with speed and certainty to get a transaction of this size closed inside of 30 days. We were also able to do this because we could deploy a very deep bench of KW people for due diligence and underwriting of each of these loans. These are all hallmarks of what differentiates KW and positions us well to continue sourcing opportunities in today's environment. This is a very similar transaction to what we did in 2011 when we purchased at a discount $2.2 billion of high-quality loans secured by 23 assets in London, where in the end, we ended up collecting 100% of the principal balances. And as I look forward to where we think opportunities may arise, we are being very disciplined and patient on capital deployment. I believe we are entering a period of time that will present ample opportunities across the real estate capital structure, and our focus remains on growing our cash flow centered around three key sectors. First, we're focused on growing our global credit business. During Q3, we welcomed 40 new employees from the regional bank I mentioned, who have integrated perfectly into our existing operations and considerably strengthened our lending capabilities. We're currently one of the few active construction lenders in the U.S. market, and our team has a strong pipeline of new loans of which a significant amount will close here in the fourth quarter. While our credit platform today is concentrated in the U.S., we're also looking to grow our credit business primarily in the United Kingdom and Ireland, where we think there will be similar opportunities to generate attractive double-digit unlevered returns. Secondly, we look to selectively grow our stabilized multifamily portfolio. In Q3, we completed our first multifamily acquisition in nearly 18 months, where we acquired a minority position with a partner in a brand new 315-unit apartment community in suburban Seattle. We also stabilized two projects within our 12,000 unit vintage portfolio and delivered 1,000 newly constructed units in the Dublin and the Mountain West markets, with another 1,300 units we expect to deliver by the middle of next year. Our portfolio in the U.S. is comprised of garden style communities, 90% of which are suburban. that offer a high-quality lifestyle at an affordable price point, coupled with a best-in-class, amenity-rich portfolio located in Dublin, where occupancies sit at 98%. We have over 33,000 stabilized units that are 94% occupied, with another 4,000 units in development and lease-up that we expect will add $40 to $45 million in NOI to KW once completed and stabilized. Thirdly, we are focused on growing our industrial assets under management, which today totals almost 11 million square feet, where leasing trends continue to remain very favorable. We added 183,000 square feet to our logistics portfolio in the quarter, and have a number of opportunities in U.S. and Europe in our investment pipeline, including the acquisition of $115 million industrial property located in the western United States, which was completed yesterday. Importantly, we also anticipate a major reduction in development spending in 2024. We're in the final stages of completing a $3 billion construction pipeline. This year alone, we have spent $300 million of capital on new construction and value-add projects, which we anticipate going down to less than $100 million in 2024. We continue to remain very focused on reducing costs at both the corporate level and the property level. With that, I'd like to turn the call over to our CFO, Justin Enbody, to discuss our financial results.