Kennedy Wilson reports strong third quarter, announces acquisitions

Property company Kennedy Wilson Europe Real Estate said it experienced strong trading in the third quarter as it announced the acquisition of four offices in Dublin for €24.9m (£18.4m).

The Beverley Hills-headquartered company said its asset management business contracted £2m of incremental annualised net operating income in the period, with 74 leasing transactions across 586,700 square ft.

KW said its total portfolio value stood at £2.53bn across 301 properties and four loan portfolios generating annualised NOI of £148.6m. The occupancy rate, meanwhile, was 96.4% and the group completed £289m of acquisitions in the period.

The FTSE 250 group said it will pay a third quarter dividend of 10p per share or 40p per share annualised, representing a year-to-date coverage ratio of 1.4x.

President and chief executive officer Mary Ricks said: “Having built a portfolio of critical mass, KWE is now delivering strong quarter-on-quarter performance with plenty more to come from both our existing and contracted assets.

“It is particularly pleasing to see the level of NOI growth being generated through asset management activities, reflective of both the success of our acquisition strategy and the property skills inherent in our business.”

The company also announced the acquisition of offices in Dublin. It said the portfolio comprises 72,200 square ft and is 86% occupied, increasing KW's footprint in both South Docks and the attractive South Dublin suburbs, where management see increased supply-demand pricing tension.

At 1120 GMT, Kennedy Wilson shares were up 1% at 1,189p. .