Kennedy Wilson (KW) Collaborates With GIC Logistics Assets
Kennedy Wilson KW collaborated with Singapore’s sovereign wealth fund, GIC, for the acquisition and management of urban logistics properties in the U.K. Moreover, the joint venture (“JV”) is open to the possibility to expand into Ireland and Spain.
The JV will be started with a portfolio of 18 urban logistic assets in superior locations across the U.K. The $220-million portfolio is fully-owned by Kennedy Wilson at present. Additionally, the JV will eye investment opportunities in last-mile urban distribution centers, aiming for total assets of up to $1 billion.
Notably, Kennedy Wilson will have 20% stake in the JV and will be responsible for the sourcing, buyouts and management of assets. GIC will have the remaining 80% ownership in the collaboration.
Remarkably, the industrial and logistics asset class have been firing on all cylinders and have shown resilience amid the coronavirus pandemic, with low vacancy rates, high asking rents and robust rent collections. Moreover, there has been a significant increase in e-commerce’s share of total retail sales, and this is spurring the demand for warehouse and distribution spaces. Apart from this, the industrial real estate space is likely to gain traction over the long run from a projected rise in the inventory levels of companies as a precautionary measure for any potential supply-chain disruption. This, in turn, will likely keep supporting industrial landlords.
In fact, with rising e-commerce activities and supply-chain strategy transformations,Kennedy Wilson has seen robust growth in urban logistic properties. Moreover, capitalizing on this trend, the company has expanded its footprint in the logistic real estate asset class. In fact, per management, “we are thrilled to partner with a preeminent global long-term investor like GIC to further capitalize on the exciting opportunities in this sector and to build out a premier urban logistics portfolio.”
However, amid the pandemic-borne concerns, the company witnessed a year-over-year occupancy decline at its multifamily affordable same-property portfolio in the third quarter. Moreover, occupancy decline at its commercial portfolio has affected revenue growth.
Further, shares of this Zacks Rank #3 (Hold) company have lost 22.6% over the past year against the industry’s rally of 21.1%.
Stocks to Consider
FirstService Corporation’s FSV Zacks Consensus Estimate for 2020 earnings has been unchanged at $3.27 over the past month. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PennyMac Mortgage Investment Trust’s PMT earnings estimates for the current year have been revised upward to 27 cents over the past month. The company carries a Zacks Rank of 2, currently.
Legacy Housing Corporation’s LEGH Zacks Consensus Estimate for ongoing-year earnings has been unchanged at $1.41 over the past 30 days. The company has a Zacks Rank of 2 at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PennyMac Mortgage Investment Trust (PMT) : Free Stock Analysis Report
KennedyWilson Holdings Inc. (KW) : Free Stock Analysis Report
FirstService Corporation (FSV) : Free Stock Analysis Report
Legacy Housing Corporation (LEGH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
