Upcoming AWS Coverage on Acadia Realty Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 25, 2017 / Active Wall St. blog coverage looks at the headline from Kennedy-Wilson Holdings, Inc. (NYSE: KW) as the global real estate investment Company announced on April 24, 2017, an agreement with Kennedy Europe Real Estate PLC under an all-share combination transaction that will create a leading global real estate investment and asset management platform. As a result of the transaction, Kennedy-Wilson Europe (KWE) will become a wholly-owned subsidiary of Kennedy-Wilson (KW). Register with us now for your free membership and blog access at:

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One of Kennedy-Wilson Holdings' competitors within the Property Management space, Acadia Realty Trust (NYSE: AKR), released its Q1 2017 earnings on Monday, April 24, 2017 after market close. AWS will be initiating a research report on Acadia Realty Trust in the coming days.

Today, AWS is promoting its blog coverage on KW; touching on AKR. Get all of our free blog coverage and more by clicking on the link below:

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Details of the transaction

Under terms of the transaction, each KWE's shareholder will be entitled to receive 0.667 KW shares for each KWE share held by them. The implied value per share of KWE is 1,174 pence, which represents a premium of approximately 20% to the closing price of 979 pence per KWE share on April 21, 2017, and 22.4% to the volume weighted average closing price of 960 pence per KWE share for the three-month period ended April 21, 2017. Post the completion of the transaction, the combined Companies will have a $4 billion market capitalization and a portfolio of 400 sites worldwide.

Historical Outlook

KWE owns the Stillorgan shopping center and a number of offices and apartment developments in Dublin. KWE was spun off as a United Kingdom-based public Company in 2014. On February 28, 2014, KWE announced the closing of its initial public offering, raising about $1.7 billion in gross proceeds. KW subscribed for a total of $203 million of ordinary shares in the initial public offering. Immediately, following the closing, KW investment represented approximately 13.4% of KWE's total share capital, making the Company the largest shareholder of KWE at the initial public offering.

Strategic Outlook

Kennedy-Wilson views this transaction as a step to create a leading real estate investment and management platform. The multiple strategic benefits from the transaction are:

1. Creation of a leading Real Estate and Asset Management Platform with greater scale and liquidity, with a net market capitalization of approximately $4.0 billion and an enterprise value of about $8.2 billion.

2. Development of a global portfolio of over 400 properties with a widespread geographical mix and broad diversification across multiple real estate sectors.

3. Enables flexibility in the allocation of capital globally across asset classes and geographical markets. KW currently has about 400 employees in the US and about 100 employees in Europe to make investment decisions that offer attractive risk-adjusted returns on capital.

4. Establishment of a Company with strong pro-forma capital structure, with pro-forma leverage of about 51% net debt to enterprise value, access to diverse, global equity and debt capital sources, and approximately $1.4 billion of pro-forma liquidity to support growth.

5. Generation of multiple synergies resulting from the elimination of duplicative public Company costs, and potential additional income arising from KW's ability to manage capital more efficiently as a result of the combination, which is expected to result in expanded capacity for investment to drive growth.

Kennedy-Holdings Growth Prospects

KW recently announced a 21% increase in the common dividend per share to $0.17 per quarter, or $0.68 on an annualized basis, on February 23, 2017. Through the acquisition of this transaction, the Company expects net dividend to increase by another 12% post the closure of the transaction.

KW recently acquired Radius, a 282-unit multifamily community in the South Lake Union submarket of Seattle, Washington, for $141 million. The Company and its partner, in a 50/50 joint venture, invested a total of $72 million of equity, of which $58 million was funded from the December 2016 sale of The Grove, a 331 unit apartment built in 1964, in San Jose, California.

The KW/KWE transaction is expected to close in Q3 FY17 and is subject to customary closing conditions, including receipt of KW and KWE shareholder approval.

Stock Performance

At the closing bell, on Monday, April 24, 2017, Kennedy-Wilson Holdings' stock dropped 4.67%, ending the trading session at $21.45. A total volume of 1.98 million shares were traded at the end of the day, which was higher than the 3-month average volume of 347.72 thousand shares. In the last month and previous three months, shares of the Company have advanced 1.90% and 7.52%, respectively. Moreover, the stock gained 4.63% since the start of the year. The stock currently has a market cap of $2.39 billion and has a dividend yield of 3.17%.

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SOURCE: Active Wall Street