Financial Data and Key Metrics Changes - Adjusted EBITDA nearly tripled from $190 million in 2023 to $540 million in 2024 [6] - GAAP EPS totaled $0.24 per share for Q4, compared to a loss of $1.78 in Q4 2023 [19] - Investment management revenue grew by 83% to $30 million in Q4, driven by $1.4 billion in new debt originations [20] Business Line Data and Key Metrics Changes - Investment management fees grew by 60% year-over-year to approximately $100 million in 2024 [8] - The credit platform completed a record $1.4 billion of new loan originations in Q4 and $3.5 billion for the year [9] - Same-property NOI grew by 5.6% in Q4, with the apartment portfolio ending the quarter at 95% occupancy [15][30] Market Data and Key Metrics Changes - The overall market environment is showing steady improvement, with debt markets strengthening and transaction volume rebounding [7] - In the U.S., renter fundamentals continue to strengthen, driven by high homeownership costs [29] - The Irish apartment portfolio ended the quarter at a strong 97% occupancy, with ongoing structural undersupply in the Dublin market [35] Company Strategy and Development Direction - The company focuses on increasing baseline EBITDA, growing the investment management business, and reducing unsecured debt [6] - Capital recycling through non-core asset sales is a key initiative, with an expected generation of over $400 million in 2025 [12][13] - The company aims to deploy capital into higher return opportunities, particularly within investment management platforms [13] Management's Comments on Operating Environment and Future Outlook - Management anticipates a very active year in 2025, committed to executing key initiatives while strengthening the balance sheet [17] - The company is well-positioned to capitalize on new opportunities in rental housing and industrial assets as market conditions recover [16] - Management expressed confidence in the business environment in the U.S. and the attractiveness of investing in U.S. real estate [95] Other Important Information - The company successfully closed fundraising on its seventh discretionary commingled fund, securing $400 million for U.S. investments [11] - The company has a record $8.8 billion in fee-bearing capital, with expectations to grow investment management fees by approximately 20% to 25% per annum [11] Q&A Session Summary Question: Clarification on $400 million of incremental proceeds from dispositions in 2025 - Management confirmed the figure and indicated a focus on non-core assets, particularly in housing-related investments [44][45] Question: Concerns about the competitive construction lending environment - Management believes the construction lending space remains compelling and expects a successful year in that area [50][51] Question: Expected yields and margins on the single-family rental platform - Management anticipates stabilizing yields in the high 5s towards 6% and has a strong operational team in place [70] Question: Implications of rent caps in Ireland and U.K. office demand - Management noted that the current rent cap regime in Ireland is due to expire at the end of 2025 and expressed confidence in the demand for quality offices in the U.K. [82][83] Question: Positive fair value marks on the co-investment portfolio - Management hopes for continued positive trends in fair value and carried interest, assuming stable long-term rates [86][88]

Financial Performance - Kennedy Wilson reported a GAAP net income of $33.1 million for Q4 2024, compared to a loss of $247.8 million in Q4 2023, and a full-year net loss of $76.5 million versus a loss of $341.8 million in 2023[5]. - Adjusted EBITDA for Q4 2024 was $190.8 million, a significant increase from a loss of $129.4 million in Q4 2023, while full-year adjusted EBITDA rose to $539.7 million from $189.8 million in 2023[5]. - Total revenue for Q4 2024 was $135.5 million, a decrease of 3.3% from $140.1 million in Q4 2023[26]. - The company reported a basic earnings per share of $0.24 for Q4 2024, recovering from a loss of $1.78 per share in Q4 2023[26]. - The company reported a net income of $0.3 million in Q4 2024, compared to a net loss of $1.0 million in Q4 2023[136]. - Total revenue for the year ended December 31, 2024, was $368.3 million, up from $286.9 million in 2023, representing an increase of 28.3%[139]. - The company reported a total segment revenue of $530.0 million for the year ended December 31, 2024, compared to $560.4 million in 2023, a decrease of 5.4%[150]. Revenue and Income Sources - Investment management fees increased by 83% year-over-year in Q4 2024, reaching $30 million, and grew by 60% for the full year to $99 million[8]. - The investment management segment generated base fees of $99.8 million, with carried interests receivable netting $20.5 million[50]. - The company's investment management base fees increased to $18.9 million in Q4 2024 from $14.3 million in Q4 2023[92]. - Investment management fees increased to $98.9 million in 2024 from $61.9 million in 2023, showing a significant growth of 59.5%[123]. - The company reported a total of $29.9 million in investment management fees for Q4-24, up from $16.3 million in Q4-23[121]. Asset and Liability Management - Total assets decreased to $6,961.1 million in 2024 from $7,712.1 million in 2023, reflecting a decline of 9.7%[24]. - Total liabilities reduced to $5,325.1 million in 2024, down from $5,913.7 million in 2023, a decrease of 9.9%[24]. - The company completed a €175 million redemption of its outstanding euro-denominated notes, funded by cash proceeds from asset sales[17]. - Cash and cash equivalents stood at $218 million as of December 31, 2024, with $98 million drawn on a $550 million revolving credit facility[15]. - The company has a total debt of $2,541.2 million, with a net debt of $2,437.8 million after accounting for cash[86]. Operational Metrics - Estimated annual net operating income (NOI) decreased to $467 million as of Q4 2024, down from $492 million in Q4 2023, primarily due to non-core asset dispositions[9]. - Total estimated annual NOI from income-producing assets is $466.6 million, with a stabilized portfolio occupancy rate of 94.3%[52]. - The multifamily segment consists of 35,895 units, achieving an occupancy rate of 94.7% and an estimated annual NOI of $296.6 million[50]. - The total number of stabilized units reached 35,895, including 3,701 units acquired or stabilized after January 1, 2023[100]. - Average occupancy for the total same property units was 94.7% in Q4 2024, up from 94.4% in Q4 2023[96]. Market and Investment Activities - The company launched a UK single-family rental housing joint venture targeting £1 billion in assets, with an initial commitment of £500 million from CPP Investments[12]. - In Q4-24, Kennedy-Wilson completed real estate acquisitions totaling $379.4 million with a cap rate of 5.6%[118]. - For FY-24, total acquisitions reached $797.6 million, with a cap rate of 5.8%[118]. - In Q4-24, Kennedy-Wilson's real estate dispositions amounted to $615.1 million, achieving a cap rate of 5.8%[118]. - For FY-24, total dispositions were $1,236.5 million, with a cap rate of 6.8%[118]. Equity and Stock Performance - As of December 31, 2024, the equity market capitalization of Kennedy Wilson is $1,747.5 million, down from $2,181.3 million as of December 31, 2023, representing a decrease of approximately 20%[44]. - The common stock price per share decreased to $9.99 as of December 31, 2024, from $12.38 a year earlier, reflecting a decline of approximately 19.4%[44]. - The total equity attributable to Kennedy-Wilson Holdings, Inc. shareholders decreased to $1,601.2 million in 2024 from $1,755.1 million in 2023, a decline of 8.8%[24]. - The cumulative preferred stock value remained stable at approximately $789.7 million in 2024, compared to $789.9 million in 2023[24]. Expenses and Cost Management - Total segment expenses for 2024 were $278.0 million, down from $319.0 million in 2023, reflecting a reduction of 12.9%[123]. - The company reported a decrease in hotel expenses from $37.9 million in 2023 to $7.6 million in 2024, indicating a reduction in operational costs[155]. - Total operating expenses for the market rate portfolio increased by 2.9% to $99.6 million in 2024 from $97.5 million in 2023[100]. Future Projections and Developments - The company has a 63% ownership in the Cloudveil multifamily project, which is under construction and expected to stabilize in 2026[80]. - The total remaining costs for development projects are estimated at $20.7 million, with a projected stabilized NOI of $50-$55 million across 1,360,000 square feet of leased space[75]. - The Heights office project in the UK is expected to stabilize with a NOI of $8.1 million and a leased percentage of 65%[75].

Financial Data and Key Metrics Changes - Assets under management (AUM) increased to $28 billion from $25 billion at the end of 2023, with estimated annual net operating income (NOI) growing to $492 million and fee-bearing capital reaching a record $8.8 billion [7][10][11] - Adjusted EBITDA doubled in Q3 to $66 million, with a year-to-date increase of 9% to $349 million [28] - Baseline EBITDA totaled $102 million in Q3, reflecting a 4% year-to-date increase to $309 million [28] Business Line Data and Key Metrics Changes - Investment management fees grew by 51% year-to-date in 2024 to $69 million, with a total of $85 million over the past 12 months [10][47] - The multifamily business now comprises 62% of the stabilized portfolio, with NOI from multifamily increasing by over 60% over the last five years [35] - The credit platform has completed $2.1 billion in new loan originations in 2024, with a strong pipeline of over $1.2 billion [12][20] Market Data and Key Metrics Changes - The overall real estate investment sentiment has improved, with the beginning of a rate-cutting cycle by central banks and robust liquidity for high-quality real estate assets [18][19] - The U.S. apartment delivery reached a 40-year high, but new starts have sharply declined, positively impacting the market rate portfolio [37] Company Strategy and Development Direction - The company is focusing on expanding its investment management business and has launched a new platform in the UK targeting the single-family rental housing market [14][15] - A strategic partnership with the Canadian Pension Plan Investment Board (CPPIB) aims to address the structural undersupply of housing in the UK, with an initial target of £1 billion in asset purchases [15][16] - The company plans to continue simplifying its balance sheet through non-core asset sales while growing its investment management business [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving liquidity and lower borrowing costs, which are expected to strengthen the business over the next year [19][25] - The company anticipates solid growth in 2025 and beyond, leveraging improvements made during challenging periods [49] Other Important Information - The company disposed of $234 million in assets in Q3, generating $63 million in cash, with additional planned asset sales expected to generate over $150 million in Q4 [13][14] - A EUR 175 million redemption of KWE bonds was announced, representing almost 40% of the remaining balance, funded by asset sale proceeds [17] Q&A Session Summary Question: Fee revenue expectations for next year - Management indicated that $6 billion of capital not included in fee-bearing capital relates to future funding commitments, which should support continued growth in the investment management business [52][53] Question: Details on the new single-family rental strategy in the UK - The UK platform is expected to yield between high-5s to 6% initially, with rental growth anticipated to stabilize above 6% [58] - The company plans to leverage its existing expertise and has a strong pipeline for deploying the initial $1 billion commitment [56][57]

Financial Performance - Total revenue for Q3 2024 was $127.5 million, a decrease of 11.1% from $143.8 million in Q3 2023[21]. - Rental revenue decreased to $97.8 million in Q3 2024 from $102.4 million in Q3 2023, representing a decline of 5.7%[21]. - Total revenue for the nine months ended September 30, 2024, was $395.9 million, with rental income contributing $293.0 million[156]. - The company reported a net income attributable to common shareholders of $8.1 million for the nine months ended September 30, 2024, compared to a net loss of $109.6 million in the same period of the previous year[156]. - The company reported a net loss attributable to common shareholders of $17.9 million for the three months ended September 30, 2023[158]. - The company reported a net loss attributable to common shareholders for the three months ended September 30, 2024, was $(30.6) million, compared to $(43.2) million in 2023[154]. - The company reported a net loss of $66.8 million for the three months ended September 30, 2024, compared to a net loss of $64.1 million for the same period in 2023[27]. - The company reported a net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders for Q3 2024 was $77.6 million, compared to a net loss of $74.9 million in Q3 2023, reflecting an increase in loss of approximately 3.6%[173][177]. - The company reported a loss from unconsolidated investments of $(20.3) million for the three months ended September 30, 2024[154]. - The company reported a loss from unconsolidated investments of $45.1 million for the nine months ended September 30, 2024, compared to a loss of $69.7 million in the same period in 2023[81]. Assets and Liabilities - Total assets decreased from $7,712.1 million as of December 31, 2023, to $7,444.2 million as of September 30, 2024[19]. - Total liabilities decreased from $5,913.7 million to $5,791.4 million[19]. - Total equity decreased to $1,652.8 million as of September 30, 2024, down from $1,798.4 million as of December 31, 2023, a decline of 8.1%[20]. - Total liabilities and equity amounted to $7,444.2 million as of September 30, 2024, down from $7,712.1 million as of December 31, 2023[20]. - As of September 30, 2024, total equity amounted to $1,652.8 million, a decrease from $1,710.4 million at June 30, 2024, reflecting a net loss of $66.8 million during the quarter[25]. - The company had total unconsolidated investments of $2,069.1 million as of December 31, 2023[170]. - The company reported unconsolidated investments of $2,052.9 million as of September 30, 2024[168]. - The company reported accrued capital expenditures of $2.6 million for the nine months ended September 30, 2024, compared to $6.0 million in the same period of 2023[36]. Cash Flow and Financing - Cash and cash equivalents increased from $313.7 million to $367.1 million during the same period[19]. - The net cash provided by operating activities was $25.5 million, a significant improvement from a net cash used of $2.7 million in the prior year[32]. - The company generated net proceeds of $457.6 million from the sale of consolidated real estate, up from $282.6 million in the same period last year[32]. - Cash paid for interest increased to $201.6 million from $177.3 million year-over-year[34]. - The company reported a gross foreign currency translation gain of $18.0 million for the nine months ended September 30, 2024[108]. - The company reported a total of $82.6 million in contributions to new and existing unconsolidated investments during the nine months ended September 30, 2024[79]. - The company generated $375 million in cash from asset sales and loan repayments (excluding closing costs) during the nine months ended September 30, 2024[194]. Investment and Portfolio Management - The company is focused on growing its investment management and co-investment platform, targeting high growth markets in the U.S., UK, and Ireland[40]. - The company recognized gains on the sale of real estate totaling $112.8 million during the nine months ended September 30, 2024, primarily from the sale of the Shelbourne hotel, which generated a gain of $99.1 million[71]. - The company reported minimum lease payments due from customers totaling $626.1 million for leases with periods greater than one year as of September 30, 2024[75]. - The company has 62 operating properties and three properties under development or lease up, totaling 9,928 units and 5.7 million square feet as of September 30, 2024[68]. - The company originated $2.1 billion in construction loans, with a share of $52.3 million, during the nine months ended September 30, 2024[186]. - The company reported an impairment loss of $14.2 million related to non-core office and retail buildings in the United Kingdom and Spain during the same period[71]. - The company has not adopted any new accounting standards during the nine months ended September 30, 2024[65]. - The company recorded a tax expense of $4.2 million during the nine months ended September 30, 2024, which is above the U.S. statutory tax rate[163]. Dividends and Shareholder Returns - Common stock dividends for the quarter totaled $16.5 million, while preferred stock dividends were $10.8 million[25]. - Common dividends declared but not paid amounted to $18.5 million, down from $33.5 million in the prior year[36]. - Kennedy Wilson declared $32.6 million in preferred stock dividends for the nine months ended September 30, 2024, compared to $27.1 million for the same period in 2023, a 20.4% increase[139]. - Common stock dividends declared were $66.1 million for the nine months ended September 30, 2024, down from $100.4 million in the same period of 2023, a decrease of 34%[139]. - Total shares withheld for tax obligations during the nine months ended September 30, 2024, were 129,011 shares, compared to 1,046,430 shares in 2023[142]. - The company repurchased 1,565,775 shares for $13.3 million during the nine months ended September 30, 2024, compared to no repurchases in the same period of 2023[141]. Market Conditions and Risks - Ongoing macroeconomic conditions, including elevated inflation and interest rates, continue to create volatility in business results and operations[96]. - The credit spreads used to value floating rate indebtedness ranged from 2.00% to 4.60%[102]. - The estimated capitalization rates for multifamily affordable properties ranged from 6.30% to 7.20%[101]. - Fair value decreases were recorded for certain office properties in Ireland, the United States, and the United Kingdom due to lower market assumptions, while fair value increases were noted for the minority ownership interest in Zonda following a merger transaction[83]. Operational Metrics - Same-store occupancy in the stabilized multifamily portfolio grew by 0.8% to 94.9%, with same-property revenue growth of 3.3%[193]. - Same-store occupancy in the stabilized multifamily portfolio increased by 0.4% to 94.5%, with same-property revenue growth of 3.3% and same-property NOI growth of 2.6%[194]. - The weighted-average lease term for acquired in-place lease values was 7.2 years as of September 30, 2024[69]. - The company operates through two primary segments: the Consolidated Portfolio and the Co-Investment Portfolio, focusing on maximizing property cash flow and managing co-investments in real estate[147][149].

Core Viewpoint - Kennedy-Wilson (KW) and Zillow (Z) are both considered by investors in the Real Estate - Operations sector, with a focus on determining which stock is more attractive for value investors [1] Group 1: Company Rankings and Metrics - Both KW and Z currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - The Style Score Value grade incorporates key fundamental metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share, which are essential for value investors [4] Group 2: Valuation Comparisons - KW has a forward P/E ratio of 3.63, significantly lower than Z's forward P/E of 44, suggesting that KW may be undervalued [5] - KW's PEG ratio is 0.64, while Z's PEG ratio is 2.77, indicating that KW has a more favorable valuation relative to its expected earnings growth [5] - KW's P/B ratio stands at 1.60 compared to Z's P/B of 3.20, further supporting the argument that KW is the superior value option based on these metrics [6] Group 3: Overall Assessment - KW holds a Value grade of B, while Z has a Value grade of F, reinforcing the conclusion that KW is currently the more attractive investment for value investors [6]

Financial Data and Key Metrics - Adjusted EBITDA for Q2 2024 totaled $79 million, with a year-to-date total of $283 million [12] - GAAP net loss for Q2 2024 was $0.43 per share, including $0.46 per share of non-cash items [12] - Investment Management revenue grew by 37% to $26 million in Q2, driven by $1 billion in new originations and higher fee-bearing capital [12] - Estimated annual NOI grew by 5% to $485 million, with AUM reaching $27 billion, a 16% annual growth rate [6] - Fee-bearing capital grew to a record $8.7 billion, with potential to grow to $15 billion [6] Business Line Performance - The credit platform deployed $1.7 billion in the first half of 2024, primarily for multifamily and student housing construction [4] - The multifamily portfolio stabilized five communities in Q2, adding $16 million to estimated annual NOI [5] - The industrial portfolio acquired two platforms totaling $180 million in Q2, with a strong pipeline of opportunities in the U.S. and U.K. [10] - The investment management business grew fee-bearing capital by 93% over the past three years to $8.7 billion [22] Market Performance - U.S. multifamily portfolio saw same-property occupancy growth of 1.9%, revenue growth of 3.6%, and NOI growth of 3% [16] - California portfolio delivered 5% NOI growth, with Northern California bad debt dropping to the lowest level in two years [17] - Dublin portfolio stabilized two multifamily projects, adding $10 million to estimated annual NOI [19] - European industrial portfolio achieved 98% occupancy, with a 44% increase in rents for leases completed in Q2 [21] Strategic Direction and Industry Competition - The company is focusing on growing its investment management platform, with a strong emphasis on rental housing, credit, and industrial assets [8][9][10] - The company is simplifying its balance sheet by disposing of non-core assets, with $330 million generated from asset sales year-to-date [11] - The company is expanding its credit platform, with a pipeline of $600 million to $700 million in signed deals [10] - The company is leveraging its global relationships, particularly in Japan, to raise capital and expand its investment management business [8][33] Management Commentary on Operating Environment and Future Outlook - Management highlighted improving liquidity in the U.S. apartment sector and beneficial shifts in interest rates, with the 10-year bond declining by 100 basis points [6][7] - The company expects lower interest rates to increase transaction volumes and provide opportunities for capital deployment [7] - Management expressed confidence in the multifamily market, citing a structural shortage of housing in the U.S., U.K., and Ireland [9] - The company anticipates flat to lower insurance premiums in the second half of 2024, following July renewals [16] Other Key Information - The company repurchased 600,000 shares in Q2, bringing the year-to-date total to 1.7 million shares [14] - The company closed its Spanish office after divesting its last wholly owned asset in Spain, generating $35 million in cash [11][12] - The company has $110 million remaining on its $500 million share repurchase authorization [14] Q&A Session Summary Question: Prospects for expanding the debt platform beyond construction lending - The company sees opportunities in construction lending but is also exploring longer-term debt solutions, including permanent and bridge lending [24] Question: Future of the development program - The company is shifting its development strategy to focus on construction management, with 5% to 10% equity stakes in new projects [25] Question: Progress on disposition goals - The company has a substantial pipeline of dispositions and expects to continue shifting its portfolio towards U.S. multifamily assets [26][27] Question: Rationale for including fair value adjustments in adjusted EBITDA - The company introduced baseline EBITDA as a more recurring operating metric, alongside adjusted EBITDA [29][30] Question: Rationale for reopening the Japan office - The company reopened its Japan office to strengthen capital-raising efforts, leveraging long-standing relationships with Japanese institutions [31][33] Question: Impact of declining interest rates on the credit platform - Lower interest rates are expected to increase construction starts and attract new entrants to the market, benefiting the company's credit platform [36][37] Question: Quantification of the Spanish property sale and cost savings - The sale of the Spanish property generated $35 million in cash, with negligible impact on Q3 earnings, and the closure of the Spanish office is expected to save $1 million to $1.5 million annually [41][42] Question: Capital raised from Japan - The company has raised $100 million from Japan for its discretionary fund business, with ongoing discussions with major Japanese companies [40]

Financial Performance - For the three months ended March 31, 2024, total revenue was $136.4 million, a decrease of 2.9% from $132.2 million in the same period of 2023[276][277]. - Net income attributable to common shareholders for the three months ended March 31, 2024, was $26.9 million, compared to a net loss of $40.8 million for the same period in 2023[278]. - Adjusted EBITDA increased significantly to $203.2 million for the three months ended March 31, 2024, up from $90.9 million in the prior year[278]. - Net income for the three months ended March 31, 2024, was $2.9 million, compared to $3.1 million in the same period in 2023, reflecting a decrease of 6%[283]. - Rental income decreased to $97.4 million for the three months ended March 31, 2024, down from $106.6 million in the same period in 2023, a decline of 8.6%[284]. - Gain on sale of real estate, net, was $106.4 million for the three months ended March 31, 2024, significantly up from $19.2 million in the same period in 2023, an increase of 454%[286]. - Net income for Q1 2024 was $37.7 million, a significant improvement from a net loss of $28.7 million in Q1 2023[353]. - Adjusted EBITDA for Q1 2024 reached $203.2 million, compared to $90.9 million in Q1 2023, reflecting a year-over-year increase of 123.5%[353]. - Total revenue for Q1 2024 was $136.4 million, an increase from $132.2 million in Q1 2023, representing a growth of 1.6%[364]. Operational Metrics - Adjusted Net Income excludes depreciation, amortization, and noncontrolling interests, providing a clearer picture of the company's operational results[15]. - Net Operating Income (NOI) is calculated by deducting property expenses from revenues, excluding depreciation and gains or losses from property sales, to assess property performance[22]. - Same property analysis is used to evaluate consistent performance across periods, excluding properties that were acquired, sold, or under development[28]. - Same property multifamily units occupancy remained flat at 93.9%, with net operating income increasing by 2.4% and total revenues increasing by 3.0%[281]. - Same property revenue for Q1 2024 was $123.6 million, up from $120.5 million in Q1 2023, indicating a year-over-year increase of 2.6%[364]. - Same property NOI (Net Effective) for Q1 2024 was $87.9 million, slightly higher than $86.8 million in Q1 2023, showing a growth of 1.3%[365]. - The company's net operating income for the consolidated portfolio in Q1 2024 was $59.7 million, up from a net loss of $28.7 million in Q1 2023[356]. Investment and Development - The company manages a Co-Investment Portfolio, generating NOI from properties in which it has ownership interests[17]. - The company completed $94 million in gross real estate acquisitions, including $90 million invested in two multifamily properties in the Pacific Northwest[281]. - The company incurred $229 million in costs to date for its 1,106 multifamily units under development, with an estimated total cost of $281 million[313]. - An additional $84 million is expected to be spent to complete the development projects, with $20 million funded through company cash[313]. - The company is currently developing 1,604 affordable and/or age-restricted multifamily units, expecting to receive $11.2 million in cash from developer fees and tax credit sales upon completion[314]. - The company has 11 assets comprising 1.1 million commercial square feet and 1,402 multifamily units that are currently unstabilized, with projected costs to stabilize of $44.9 million[318]. Financial Position and Liquidity - The company has $541.9 million in consolidated cash, including $342.2 million in foreign currencies as of March 31, 2024[310]. - The company has $252.1 million available under its revolving credit facility, with $247.9 million outstanding as of March 31, 2024[310]. - Cash reserves increased to $541.9 million as of March 31, 2024, compared to $313.7 million at the end of 2023, showing a significant liquidity improvement[361]. - The mortgage debt decreased to $2,773.1 million as of March 31, 2024, from $2,840.9 million at the end of 2023, reflecting a reduction in leverage[361]. - Total contractual cash obligations as of March 31, 2024, amounted to $5,384.9 million, with $2,787.5 million in mortgage debt and $1,800.0 million in senior notes[334]. - The company has $169.9 million available under its at-the-market program as of March 31, 2024, allowing for opportunistic equity sales[309]. Expenses and Costs - Interest expense increased to $39.9 million for the three months ended March 31, 2024, compared to $37.2 million in the same period in 2023, an increase of 7.3%[291]. - Co-Investment Portfolio expenses decreased to $5.5 million for the three months ended March 31, 2024, down from $13.2 million in the prior period, a decrease of 58.3%[300]. - The company spent $51.5 million on capital expenditures primarily related to development properties during the three months ended March 31, 2024[330]. - The provision for income taxes in Q1 2024 was $26.7 million, compared to a benefit of $3.9 million in Q1 2023, highlighting a shift in tax liabilities[353]. Shareholder Returns and Equity - The recent adjustment to the common stock dividend is expected to provide approximately $66 million of additional cash per year for growth opportunities or debt repayment[308]. - The company repurchased $9.1 million of its common stock under the share repurchase plan during the three months ended March 31, 2024[332]. - The company had $115.3 million remaining under the current stock repurchase plan as of March 31, 2024[323]. Compliance and Covenants - The company is required to maintain a maximum consolidated leverage ratio of not greater than 65% and a minimum fixed charge coverage ratio of at least 1.70 to 1.00[343]. - As of March 31, 2024, the company was in compliance with all financial covenants, except for one mortgage loan representing 1% of total mortgage debt[347]. - The company has unfulfilled capital commitments totaling $178.2 million to joint venture investments and $92.2 million to its loan portfolio as of March 31, 2024[350].

Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q1 2024 Results Conference Call May 9, 2024 12:00 PM ET Company Participants Daven Bhavsar - Vice President, Investor Relations William McMorrow - Chairman & Chief Executive Officer Justin Enbody - Chief Financial Officer Matthew Windisch - President Conference Call Participants Anthony Paolone - JPMorgan Joshua Dennerlein - Bank of America Conor Peaks - Deutsche Bank Operator Good day, and welcome to the Kennedy-Wilson First Quarter of 2024 Earnings Call. Please note ...

Financial Performance - GAAP net income for Q1 2024 was $26.9 million, a significant improvement from a net loss of $40.8 million in Q1 2023[5] - Adjusted EBITDA increased to $203.2 million in Q1 2024, compared to $90.9 million in Q1 2023, reflecting strong operational performance[5] - Total revenue for Q1 2024 was $136.4 million, a 3.2% increase from $132.2 million in Q1 2023[26] - Net income attributable to common shareholders was $26.9 million in Q1 2024, compared to a net loss of $40.8 million in Q1 2023[29] - Adjusted EBITDA for Q1 2024 reached $203.2 million, significantly up from $90.9 million in Q1 2023[29] - Basic earnings per share for Q1 2024 was $0.19, recovering from a loss of $0.30 per share in Q1 2023[26] - Total expenses decreased to $114.1 million in Q1 2024 from $124.5 million in Q1 2023, reflecting a 8.5% reduction[26] - Interest expense increased to $64.7 million in Q1 2024 from $62.3 million in Q1 2023[26] - Total revenue for the three months ended March 31, 2024, was $136.4 million, an increase of 11.6% compared to $122.2 million in the same period of 2023[107] - Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $66.9 million, compared to a loss of $59.6 million in the same period last year[107] - Adjusted EBITDA for the quarter was $203.2 million, reflecting a significant increase from the previous year[107] - Total operating expenses for the quarter were $114.1 million, up from $97.2 million in the same period last year[107] Investment and Asset Management - Investment management fees grew by 94% to $21 million in Q1 2024, driven by higher levels of fee-bearing capital and new loan originations[7] - The debt investment platform expanded by 10% to $7.3 billion, with $719 million in new construction loans originated during Q1 2024[7] - The company completed several multifamily construction projects, adding 814 units, which are expected to stabilize and contribute to future NOI[11] - The company declared a quarterly dividend of $0.12 per share, allowing for the retention of $66 million annually to support growth initiatives[17] - The company reported a gain on the sale of real estate of $106.4 million in Q1 2024, compared to $19.2 million in Q1 2023[26] - The company completed real estate acquisitions totaling $94.2 million with a capitalization rate of 6.0% during Q1 2024[103] - Dispositions during the same period amounted to $356.9 million, with a capitalization rate of 8.3%[103] - The company has approximately $25 billion in Real Estate Assets Under Management (AUM) as of March 31, 2024[88] Cash and Debt Management - As of March 31, 2024, total cash and cash equivalents were $541.9 million, an increase from $313.7 million at the end of 2023[24] - Total liabilities decreased slightly to $5.895 billion as of March 31, 2024, compared to $5.914 billion at the end of 2023[24] - The company repurchased 1.1 million shares in Q1 2024 at an average price of $8.76, utilizing $385 million of its $500 million share repurchase authorization since 2018[17] - The company reported total consolidated and unconsolidated debt of $8,004.4 million as of March 31, 2024, with net debt amounting to $7,367.4 million[82] - The effective interest rate on total debt is 4.5%, with a weighted average maturity of 4.6 years[82] - The company has a diversified debt structure, with 67% in multifamily properties and 13% in the United Kingdom[87] Property and Portfolio Performance - The occupancy rate for multifamily properties is reported at 93.7%, while the U.S. office occupancy rate is at 85.1%[46] - The estimated annual NOI is projected to be $464 million, with an additional $89-$94 million expected from the development and lease-up portfolio[10] - Kennedy Wilson's share of property debt is $5,443.8 million, with total capitalization at $9,510.8 million[43] - The total enterprise value of Kennedy Wilson is $8,873.8 million as of March 31, 2024[43] - The company has 34,170 multifamily units with an estimated annual NOI of $272.9 million[46] - The total Stabilized Portfolio consists of 34,170 units with an annual NOI of $463.8 million and an asset value of $8,330.5 million, representing a 37% ownership[55] - The multifamily portfolio has an overall occupancy rate of 93.9%, with average monthly rents per market-rate unit at $1,922, contributing to an estimated annual NOI of $272.9 million[58] - The office portfolio includes 53 assets with a total rentable square footage of 10.8 million sq. ft. and an average annual rent of $38.8 per sq. ft., achieving an occupancy rate of 88.2%[60] - The industrial portfolio comprises 116 assets with a total rentable square footage of 11.5 million sq. ft. and an average annual rent of $8.7 per sq. ft., with an occupancy rate of 97.8%[62] Future Outlook and Strategic Initiatives - The company anticipates continued growth in revenue and profitability, driven by strategic investments and market expansion initiatives[32] - The company plans to continue its market expansion and focus on income-producing properties in the Western U.S. and Europe[104] - The company expects to fund approximately $20 million of its share of remaining costs to complete development projects with cash[76] - The estimated completion date for several projects is set for 2024, with a total of 1,106 multifamily units and an estimated stabilized NOI of $17 million[75] - The company is focused on expanding its investment management platform and enhancing real estate services[88]

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