Kennedy-Wilson: Prime Time Pick for Global Real Estate
03/01/2017 7:00 am EST
The company focuses on multi-family and commercial properties located in the Western U.S., UK, Ireland, Spain, Italy, and Japan.
Several smart investors have been adding the stock to their portfolios over the past quarter. Perhaps they are seeing what we are.
High insider ownership:
Management currently owns 18% of the company’s stock. We like to see management with skin in the game.
Management continues to see great opportunities to invest in current platforms and future acquisitions.
This is the same team that made substantial investments in Japan during the 1990s, in the U.S. following the financial crisis, and in Europe and the UK in more recent years.
Management is planning many projects that are going to be built on excess land, which they originally acquired with little or no basis and within or adjacent to income-producing assets that they also own.
This is allowing them to build below replacement costs and create new income streams at above market cap rates.
The stock price has moved lower since we added it to our Special Situation Portfolio in September 2015, yet the underlying worth of the business continues to move higher. The stock now is a more compelling buy than it was a year ago.