Kennedy Wilson Overview - Kennedy Wilson manages a global investment portfolio with 39,000 multifamily units and 12 million sq ft of industrial space[5] - The company has a 36-year track record as a global real estate operator and investor[15] - Kennedy Wilson anticipates generating over $400 million from asset sales in 2025, with $125 million already repaid on the credit facility in Q2[12] Financial Performance - The estimated annual NOI from the stabilized portfolio is $473 million[13,18] - Investment Management Fees TTM are $103 million[13] - Fee-bearing capital is $8.7 billion as of Q1 2025[23,46] Portfolio Composition - Multifamily, Loans, and Industrial represent 72% of the stabilized portfolio[18] - The global multifamily portfolio totals approximately 39,000 units with an estimated annual NOI of $302 million and 95% occupancy[24,25] - Rental housing represents approximately 66% of AUM, totaling $12 billion[48,50] Investment Management Platform - The company targets 20%+ growth in investment management fees[12] - There is a $4.4 billion pipeline of fee-bearing capital from future fundings[47] - The credit platform has $9.1 billion in loan commitments[5,57]

Financial Performance - Total revenue for Q1 2025 was $128.3 million, a decrease of 5.9% from $136.4 million in Q1 2024[32]. - Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $40.8 million in Q1 2025, compared to a net income of $26.9 million in Q1 2024[32]. - Basic loss per share for Q1 2025 was $0.30, down from a basic income per share of $0.19 in Q1 2024[32]. - Comprehensive loss for Q1 2025 was $14.9 million, compared to comprehensive income of $35.2 million in Q1 2024[35]. - The company recorded a pre-tax book loss of $34.5 million for the three months ended March 31, 2025, with a tax benefit of $4.9 million[191]. - GAAP net loss to common shareholders was $40.8 million for the three months ended March 31, 2025, compared to a net income of $26.9 million for the same period in 2024[273]. Assets and Liabilities - Total assets as of March 31, 2025, increased to $7,157.1 million from $6,961.1 million as of December 31, 2024, reflecting a growth of approximately 2.8%[30]. - Total liabilities increased to $5,564.9 million as of March 31, 2025, compared to $5,325.1 million at the end of 2024, representing a rise of about 4.5%[30]. - Total equity decreased to $1,592.2 million as of March 31, 2025, down from $1,636.0 million, a decline of about 2.7%[30]. - The company had cash and cash equivalents of $356.6 million at the end of the period, a decrease from $541.9 million at the end of March 2024[43]. - As of March 31, 2025, total mortgage debt amounted to $2,620.7 million, an increase from $2,597.2 million as of December 31, 2024, reflecting a growth of approximately 0.9%[146]. - The company has a total of $2,053.6 million in unsecured debt as of March 31, 2025, compared to $1,877.9 million as of December 31, 2024, indicating an increase of approximately 9.3%[151]. Investment Performance - The company reported a significant share of net operating income from its Co-Investment Portfolio, which is crucial for evaluating investment performance[18]. - Income from unconsolidated investments increased to $11.4 million in Q1 2025, compared to a loss of $6.7 million in Q1 2024[32]. - The company has significant influence over its joint venture interests, which are accounted for under the equity method, with ownership ranging from 5% to 50%[92]. - The company reported a total of $2,084.7 million in joint venture investments as of March 31, 2025, compared to $2,042.4 million as of December 31, 2024, indicating an increase of about 2.1%[94]. - Operating distributions from joint ventures totaled $16.0 million for the three months ended March 31, 2025, compared to $6.4 million in the prior year, marking a substantial increase of approximately 150%[97]. Cash Flow and Financing - Net cash used in operating activities was $51.9 million, a significant increase from $5.6 million in the prior year[43]. - The company reported a net cash provided by financing activities of $218.8 million, compared to a net cash used of $9.8 million in the same period of 2024[43]. - The company paid $18.3 million in common dividends, down from $34.1 million in the same period of 2024[43]. - The company has a credit facility with $272.7 million outstanding and $277.3 million available to be drawn as of March 31, 2025[154]. - The company completed loan purchases and originations of $205.1 million as of March 31, 2025, compared to $231.1 million as of December 31, 2024[137]. Market and Economic Conditions - The company focuses on investing in high growth markets, particularly in the rental housing sector and industrial properties across the U.S., UK, and Ireland[50]. - The company expects ongoing macroeconomic conditions to potentially impact the fair value of its investments, highlighting the uncertainty in the current financial environment[112]. - A significant portion of the company's investments are located outside the U.S., and fluctuations in foreign currency rates will impact results of operations[277]. Operational Metrics - The company emphasizes the importance of same property metrics for consistent performance analysis across comparable periods[27]. - Occupancy for same property multifamily units increased to 95.0% from 93.9%, with net operating income rising by 4.0% and total revenues increasing by 2.6%[276]. - For affordable rate multifamily units, occupancy decreased by 1.1% to 93.5%, while net operating income increased by 5.5% and total revenues rose by 5.3%[276]. Shareholder Returns - Dividends declared per common share decreased to $0.12 in Q1 2025 from $0.24 in Q1 2024[32]. - The company declared and paid cash distributions of $10.9 million on preferred stock and $16.6 million on common stock for the three months ended March 31, 2025[166]. - The company did not repurchase any shares under its stock repurchase program during the three months ended March 31, 2025, after repurchasing 882,454 shares for $7.5 million in the same period of 2024[169].

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 per share for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [12] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [12] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [5] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [6] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [7] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [8][24] Market Data and Key Metrics Changes - U.S. real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [6] - The Pacific Northwest portfolio saw the strongest NOI growth of 6.6%, driven by return-to-office mandates [19] - In Ireland, same property NOI in the apartment portfolio increased by 3.5%, supported by occupancy growth and strong operating expense management [21] Company Strategy and Development Direction - The company is focused on simplifying its business through asset sales, reducing unsecured debt, and increasing free cash flow [10] - The asset sale program aims to generate between $400 million to $450 million in cash by year-end, with $150 million to $200 million expected to close by the end of Q2 [10] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong Q2 pipeline [9] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [6] - Management noted that the current economic environment presents attractive investment opportunities, and the company is well-positioned to capitalize on these [9] Other Important Information - The company has reduced its unsecured debt by $250 million over the last two years and plans to continue this trend [10] - Total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and an effective interest rate of 4.7% [16] - The company has a strong pipeline of advanced stages totaling $375 million in its new U.K. single-family rental platform [26] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% annual growth in fees, supported by a strong pipeline and future fundings [29][30] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [31][32][34] Question: Stock buyback plans - Management indicated that current cash usage is focused on paying down unsecured debt, with stock buybacks reconsidered post-debt reduction [35][36][37] Question: Dispositions and cap rates - Management confirmed that dispositions are well underway, with most expected to close in June, but refrained from commenting on specific cap rates [40][42] Question: Loan origination rates - Management noted some downward pressure on spreads due to increased competition, but still finds the rates attractive relative to alternatives [49][51] Question: Exposure to government-backed housing - Management reported that about 15% of tenants have some form of HUD backing, but expressed no immediate concerns regarding capital availability [56][60]

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [14] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [14] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [6] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [7] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [8] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [10][27] Market Data and Key Metrics Changes - In the U.S., real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [7] - The company noted strong apartment demand in Q1, with blended leasing spreads increasing to 1.5% and a significant improvement in new lease rents [20] - In Ireland, same property NOI in the apartment portfolio was up 3.5%, driven by occupancy growth and strong operating expense management [23] Company Strategy and Development Direction - The company is focused on executing a non-core asset sale plan, aiming to generate between $400 million to $450 million from asset sales and recaps by year-end [12] - The strategy includes reducing unsecured debt and simplifying the business by focusing on core sectors of rental housing and industrial [30] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong pipeline of activity [11] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [7] - Management highlighted the importance of relationships in maintaining competitiveness amid increased market volatility and competition [34] Other Important Information - The company has a strong pipeline of $2.5 billion in loan originations and real estate equity acquisitions, primarily within the rental housing sector [5] - The total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and a weighted average effective interest rate of 4.7% [18] - The company is actively monitoring potential impacts from government changes on affordable housing, with 15% of tenants having some form of HUD backing [54][57] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% growth in fees, citing a strong pipeline and future funding commitments [32][33] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [34][36] Question: Stock buyback plans - The focus remains on paying down unsecured debt, with potential reconsideration of stock buybacks after addressing debt obligations [37][39] Question: Dispositions and cap rates - Management indicated that dispositions are well underway, with expected closures in June, but refrained from commenting on specific cap rates [42][44] Question: Loan origination rates and prepayments - Loan origination rates have seen downward pressure, but the quality of projects remains high; a significant prepayment was noted as an outlier [51][53] Question: Exposure to government-backed housing - Approximately 15% of tenants have HUD backing, but management does not foresee immediate concerns regarding capital availability [56][60]

Financial Performance - GAAP net loss to common shareholders for Q1-2025 was $40.8 million, compared to a net income of $26.9 million in Q1-2024[7] - Adjusted EBITDA for Q1-2025 was $98.2 million, down from $203.2 million in Q1-2024, reflecting a significant decrease[7] - Total revenue for the three months ended March 31, 2025, was $128.3 million, a decrease of 5.9% from $136.4 million in the same period of 2024[28] - Basic loss per share was $0.30, compared to earnings per share of $0.19 in the prior year[28] - Total expenses decreased to $106.8 million, down 6.4% from $114.1 million in the same period of 2024[28] - The company reported a loss on the sale of real estate of $0.8 million, a significant decrease from a gain of $106.4 million in the prior year[28] - The net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $40.8 million, compared to a net income of $26.9 million in the prior year[31] - Adjusted EBITDA for the three months ended March 31, 2025, was $98.2 million, down 51.6% from $203.2 million in the same period of 2024[31] - Total revenue for Q1 2025 was $102.7 million, an increase of 15.5% compared to $89.2 million in Q1 2024[118] - The net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders was not specified, but net income before taxes showed a loss of $0.3 million in Q1 2025[118] - The company reported a net loss attributable to noncontrolling interests of $0.3 million in Q1 2025, compared to a net income of $0.1 million in Q1 2024[126] - Net Income for Q1 2025 was $(29.6) million, compared to $37.7 million in Q1 2024, indicating a significant decrease in profitability[133] Operational Metrics - Same-property multifamily net operating income (NOI) grew by 4.3% year-over-year, driven by strong demand for rental housing[7] - Estimated annual NOI reached $473 million as of Q1-2025, up from $467 million in Q4-2024[11] - The occupancy rate for multifamily properties is 94.5%, contributing an estimated annual NOI of $301.7 million[48] - The total number of stabilized units reached 36,324, with 2,455 units acquired or stabilized after January 1, 2024[92] - The average occupancy for the market rate total reached 95.0% in Q1 2025, a 1.2% increase from 93.9% in Q1 2024[92] - The average occupancy in Ireland improved to 96.4% in Q1 2025, a 1.9% increase from 94.6% in Q1 2024[100] - The average occupancy for the Western U.S. office properties was 84.3% in Q1 2025, up from 82.7% in Q1 2024, representing a 1.9% increase[96] Investment and Asset Management - Investment management fees increased by 17% to $25 million in Q1-2025, supported by $724 million in loan originations[10] - The debt investment platform grew to $9.1 billion in Q1-2025, with a strong pipeline of over $1 billion in new originations for Q2-2025[13] - The company expects to generate over $400 million in cash from asset sales and recapitalizations during the remainder of 2025[20] - The company has 36,324 multifamily units with a 94.5% occupancy rate, contributing significantly to its NOI[48] - The total gross asset value of Kennedy Wilson is estimated at $1.69 billion[49] - The company has a total of 175,771,603 common shares outstanding as of March 31, 2025[44] - The company has 118 total industrial assets with an estimated annual NOI of $18.3 million and an average annual rent per square foot of $9.4[64] - The company originated 10 loans in Q1-25 with a gross origination commitment of $724.1 million, resulting in a KW share of commitment of $18.1 million[67] Debt and Financing - The company's share of debt had a weighted average effective interest rate of 4.7% per annum, with approximately 96% of the debt being fixed or hedged[20] - Cash and cash equivalents totaled $357 million as of March 31, 2025, with $273 million drawn on a $550 million revolving credit facility[20] - The total consolidated and unconsolidated debt amounts to $7,765.4 million, with a net debt of $7,291.1 million as of March 31, 2025[82] - The effective interest rate on total debt is 4.7%, while the contractual interest rate is 4.9%[85] - Kennedy Wilson's secured investment level debt totals $5,368.2 million, with 74% being fixed-rate debt[85] - The debt maturity schedule indicates significant repayments due in 2025, totaling $96.9 million in unsecured debt[82] Strategic Initiatives - The company anticipates continued focus on market expansion and new product development as part of its strategic initiatives moving forward[34] - The company expects to complete 1,870 multifamily units by 2026, with an estimated stabilized NOI of $9.6 million[80] - The company has a total of 3 residential investments planned, with a gross asset value of $256 million[69] - The estimated costs to complete the lease-up projects total $20.9 million[72] - The company has 5 development projects with a total estimated gross asset value of $731.5 million[76] Revenue Breakdown - Total revenues for the market rate portfolio increased to $75.5 million in Q1 2025, up 2.6% from $73.7 million in Q1 2024[92] - The affordable portfolio's total revenues rose to $19.4 million in Q1 2025, reflecting a 5.3% increase from $18.4 million in Q1 2024[92] - Total revenues for the Western U.S. office properties were $30.1 million in Q1 2025, unchanged from Q1 2024[100] - The total operating expenses for the market rate portfolio were $51.3 million in Q1 2025, compared to $49.4 million in Q1 2024, marking a 4.0% increase[92] - The total operating expenses for the Western U.S. office properties decreased by 1.2% to $4.2 million in Q1 2025 from $4.0 million in Q1 2024[100]

Group 1 - Kennedy-Wilson Holdings operates as a real estate investment company and an investment manager, making it an interesting option for investors [1] - The company has a focus on cash flow and the potential for value and growth in the oil and natural gas sector [1] Group 2 - Subscribers to the service receive access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement [2]

Foreign Operations and Currency Risks - Approximately 31% of the company's revenues were sourced from foreign operations in the United Kingdom, Ireland, Italy, and Spain, with 92% of that from the UK and Ireland[112]. - The company may experience currency losses in the future due to fluctuations in currency exchange rates, which have already led to volatility in earnings[115]. - The company’s hedging activities may not be effective, exposing it to risks associated with unexpected fluctuations in foreign currency rates and interest rates[116]. Financial Performance and Debt Management - As of December 31, 2024, $1.9 billion, or approximately 92% of unconsolidated investments and 27% of total assets, were recorded at estimated fair value[119]. - The company incurred significant amounts of debt to finance acquisitions, which could negatively affect cash flows and increase foreclosure risks[157]. - The company is subject to significant operating and financial restrictions due to existing debt obligations, which may limit business opportunities[161]. - The company’s debt obligations could lead to increased vulnerability to economic downturns and adverse competitive conditions[162]. - The company must maintain compliance with specified financial covenants, including maximum balance sheet leverage and fixed charge coverage ratios[164]. Investment Risks and Market Conditions - Poor performance of commingled funds could lead to a decline in revenue and adversely affect the ability to raise capital for future funds[129]. - The company’s ability to manage growth through acquisitions and expansions is critical, as failure to identify suitable investment opportunities may impede future growth[131]. - The profitability of the Debt Platform is significantly influenced by the ability to acquire target assets at attractive prices, with competition potentially leading to decreasing yields[134]. - Investments in mezzanine loans, B- and C-Notes, and preferred equity involve higher risks compared to long-term senior mortgage lending, with potential for significant losses[135]. - Distressed loans and loan portfolios may have a higher risk of default and delinquencies, impacting the overall investment returns[136]. - The business primarily originates and invests in floating interest rate instruments, which may lead to challenges if borrowers cannot service their debt at increased rates[137]. Real Estate Development and Environmental Risks - The company’s real estate development strategies may face risks such as delays in obtaining necessary permits and increased construction costs due to inflation[128]. - Climate change-related risks may materially adversely affect the company’s business, including increased costs for property development and insurance[132]. - The real estate debt investment business operates in a highly competitive market, impacting the ability to originate or acquire desirable loans and investments[134]. Compliance and Regulatory Risks - The company may incur significant costs related to compliance with various laws and regulations applicable to properties and operations[148]. - Regulatory restrictions, such as rent control laws, may limit the ability to increase rents and recover operating costs, impacting financial performance[143]. - Environmental, social, and governance (ESG) practices are increasingly scrutinized by stakeholders, potentially imposing additional costs and risks[142]. Stockholder and Market Considerations - As of December 31, 2024, directors and executive officers owned approximately 13% of the outstanding shares of common stock, which may influence stockholder decisions[180]. - The company has outstanding warrants convertible into approximately 25 million shares of common stock and Series A Cumulative Perpetual Convertible Preferred Stock convertible into approximately 12 million shares[181]. - The company has an at-the-market equity offering program allowing the issuance of up to $200 million of common stock, which may dilute existing stockholders' interests[181]. - Future dividends will be declared at the discretion of the board of directors, influenced by cash generated from operations and financial conditions[188]. - The trading price of the common stock has historically been volatile due to various market factors, including real estate values and investor sentiment[189]. - The company may face significant consequences if its common stock is delisted from the NYSE, including reduced trading ability and potential management entrenchment[185]. - Anti-takeover provisions in the company's organizational documents may discourage unsolicited stockholder proposals and make acquisitions more difficult[187]. - The company may consider issuing additional equity or equity-based securities to expand its business, which could dilute existing stockholders' ownership[182]. Internal Controls and Tax Considerations - The company’s internal control over financial reporting was deemed effective as of December 31, 2024, but future assessments may vary[178]. - Changes in tax laws could significantly affect the company's future tax liabilities, impacting its financial condition and operations[177]. - The company had $99.6 million of California net operating loss carryforwards and approximately $87.6 million of foreign tax credits as of December 31, 2024, which may be limited under certain conditions[174]. - The company’s ability to use net operating loss carryforwards may be limited by ownership changes, which could affect future taxable income[174]. - Approximately 27% of total assets are subject to significant non-cash volatility due to fair value accounting, which could adversely affect the trading price of common stock[119].

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 [18] - Investment management revenue grew by 83% to $30 million in Q4 [19] 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 [15] Market Data and Key Metrics Changes - The overall market environment is showing steady improvement with strengthening debt markets and rebounding transaction volume [7] - The apartment portfolio ended the quarter with 95% occupancy, with demand driven by high homeownership costs [28] - The Irish apartment portfolio ended the quarter at a strong 97% occupancy [34] 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 core focus, with an expected generation of over $400 million in 2025 [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 total of $28 billion in assets under management, producing an estimated annual NOI of $467 million [14] Q&A Session Summary Question: Clarification on $400 million of incremental proceeds from dispositions in 2025 - Yes, the company plans to focus on non-core assets, particularly in housing-related investments [44][46] Question: Construction lending environment and commitments - The company believes the construction lending space remains compelling and expects to have a successful year [50] Question: Importance of adding more equity capital - The company has significant institutional partners interested in investing in the U.S. and U.K. markets, with expectations to deploy more equity opportunities [54][56] Question: Refinancing debt in Ireland - The company is refinancing at mid-4s, replacing an in-place rate just under 3% [66] Question: Expected yields and margins on the SFR platform - The company anticipates stabilizing yields in the high 5s towards 6% [72] Question: Future funding for the debt platform - The company aims to exceed $3.5 billion in originations this year, with strong demand from investors [78] Question: Rent caps in Ireland and implications for U.K. office demand - The company is monitoring the rent regime in Ireland and sees strong demand for quality offices in the U.K. [83][101] Question: Positive fair value marks on the co-investment portfolio - The company hopes for continued positive fair value marks if rates stabilize and operational improvements continue [86][88]

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].