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Kennedy Wilson Cheers Investors With Share Buyback Program

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Kennedy Wilson (KW - Free Report) has announced a $250-million share repurchase program as part of its effort to return value to shareholders. The company intends to fund this move with the proceeds from disposition of non-core assets in future.

Particularly, this global real estate investment company plans to complete the repurchase program within one and a half year and make the share buybacks in the open market, privately negotiated deals, through the net settlement of its restricted stock grants or otherwise.

Moreover, Kennedy Wilson targets to maintain a strong balance sheet with ample liquidity. As of Dec 31, 2017, the company’s liquidity amounted to $751 million. This included cash of $351 million and $400 million of undrawn capacity on its revolving line of credit. The company has limited short-term debt maturities and in fact, less than 12% of its debt is slated to mature before 2021.

The company is also focused on capital recycling through sale of non-core assets and smaller lower-yielding properties and addition of high-quality assets, developments and share buybacks. In its latest earnings conference call, the company announced its plans of reaping more than $500 million of net cash from these sales over the next 12 months.

Further, Kennedy Wilson remains committed to return value to shareholders. Post completion of its merger with Kennedy Wilson Europe Real Estate Plc. last year, the company increased its quarterly dividend by 12% to 19 cents. This marked the seventh dividend hike since the company began paying dividend seven years ago. Such efforts boost shareholders’ confidence in the stock.

Kennedy Wilson currently carries a Zacks Rank #3 (Hold). In the past month, the stock has gained 2.1% and outperformed its industry that depreciated 2.2%.



Stocks to Consider

Investors can consider some better-ranked stocks in the real estate space like HFF Inc. (HF - Free Report) , FirstService Corp. (FSV - Free Report) and Jones Lang LaSalle Incorporated (JLL - Free Report) . While HFF and Jones Lang LaSalle sport a Zacks Rank of 1 (Strong Buy), FirstService carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

HFF’s Zacks Consensus Estimates for 2018 earnings per share have been revised 22.6% upward to $2.88 over the past month. Its share price has risen 4.1% in three months’ time.

Jones Lang LaSalle’s earnings per share estimates for 2018 have been revised 7.9% upward to $9.85 in two months’ time. The stock has rallied 15.5% in the past three months.

FirstService Corporation’s earnings per share estimates for the current year have moved up 11.8% to $2.65 in the last two months. Its shares have gained 3.8% over the past three months.

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