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Kennedy Wilson(KW) - 2024 Q2 - Earnings Call Transcript
2024-08-08 18:57
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]
Kennedy Wilson(KW) - 2024 Q1 - Quarterly Report
2024-05-09 20:30
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(KW) - 2024 Q1 - Earnings Call Transcript
2024-05-09 19:08
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 ...
Kennedy Wilson(KW) - 2024 Q1 - Quarterly Results
2024-05-08 20:37
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]
3 High-Yield Dividend-Paying Stocks Bucking Today's Downward Trend
24/7 Wall Street· 2024-04-17 17:47
3 High-Yield Dividend-Paying Stocks Bucking Today's Downward Trend Bet_Noire / iStock via Getty Images Now that the Federal Reserve has thrown a potential wrench into the interest rate game plan, investors desire greater stability more than ever. Economists and prognosticators are all over the map on economic growth, inflation, and interest rates, making passive income even more appealing for patient investors who are fine with holding for a while. There’s good news and bad news.According to The Wall Stre ...
Kennedy Wilson(KW) - 2023 Q4 - Annual Report
2024-02-22 21:31
Part I [Business](index=5&type=section&id=Item%201.%20Business) Kennedy Wilson is a global real estate investment company managing $24.5 billion in AUM, focused on high-quality real estate in the Western U.S., U.K., and Ireland [Company Overview](index=5&type=section&id=Company%20Overview) As of December 31, 2023, Kennedy Wilson managed $24.5 billion in AUM, primarily in multifamily and commercial properties, reporting a net loss of $341.8 million for FY2023 - Kennedy Wilson's AUM grew to **$24.5 billion** in 2023, with a portfolio primarily comprising multifamily (**57% of NOI**) and commercial (**35% of NOI**) properties geographically focused in the Western U.S., U.K., and Ireland[15](index=15&type=chunk)[16](index=16&type=chunk) Key Financial Metrics (2019-2023) | Metric | 2023 | 2022 | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue ($M) | $562.6 | $540.0 | $453.6 | $454.0 | $569.7 | | Net (Loss) Income to KW Shareholders ($M) | $(341.8) | $64.8 | $313.2 | $92.9 | $224.1 | | Basic (Loss) Income per Share | $(2.46) | $0.47 | $2.26 | $0.66 | $1.60 | | Adjusted EBITDA ($M) | $189.8 | $591.5 | $927.9 | $608.0 | $728.1 | | AUM ($B) | $24.5 | $23.0 | $21.6 | $17.6 | $18.1 | - For the 2023 fiscal year, **100%** of the common stock dividend was classified as a non-taxable return of capital, compared to **62.19%** in 2022[23](index=23&type=chunk) [Business Segments](index=7&type=section&id=Business%20Segments) The company operates through two main segments: the Consolidated Portfolio, focused on wholly-owned assets, and the Co-Investment Portfolio, involving joint ventures and funds with partners - The company's two primary business segments are the Consolidated Portfolio (typically wholly-owned assets) and the Co-Investment Portfolio (**5% to 50%** ownership interest alongside partners)[30](index=30&type=chunk) Consolidated Portfolio Summarized Balance Sheet ($ in millions) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $5,167.6 | $5,639.9 | | Total Liabilities | $3,518.0 | $3,681.0 | | Equity | $1,649.6 | $1,958.9 | Co-Investment Portfolio Summarized Balance Sheet ($ in millions) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $5,201.1 | $4,862.7 | | Total Liabilities | $2,884.8 | $2,475.2 | | Equity | $2,316.3 | $2,387.5 | [Investment Types](index=9&type=section&id=Investment%20Types) Kennedy Wilson invests across multifamily, commercial, and real estate debt, with active development projects and a focus on affordable housing - The company's Vintage Housing Holdings (VHH) platform focuses on affordable housing, managing **11,971 units**; in 2023, KW received **$59.1 million** in proceeds and recorded a **$51.5 million** fair value gain on its investment[40](index=40&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - The global debt platform has a total capacity of **$10.8 billion**, with **$6.7 billion** invested or committed, holding **101 loans** with an unpaid principal balance of **$4.9 billion** (KW's share: **$263.0 million**) at an average interest rate of **9.4%** as of December 31, 2023[51](index=51&type=chunk)[53](index=53&type=chunk) - The company is actively developing **1,462 multifamily units** and **415,000 commercial square feet**, with an estimated total capitalization share of approximately **$613.0 million** for these projects[50](index=50&type=chunk) - In February 2024, the company entered an agreement to sell The Shelbourne Hotel in Dublin, Ireland, with the sale expected to close in Q1 2024[57](index=57&type=chunk) [Fair Value Investments](index=12&type=section&id=Fair%20Value%20Investments) As of December 31, 2023, 93% of unconsolidated investments were held at fair value, resulting in significant net fair value losses for FY2023 - **$1.9 billion**, or **93%** of unconsolidated investments (**25%** of total assets), were held at estimated fair value as of December 31, 2023[62](index=62&type=chunk) Fair Value Changes (FY2023 vs FY2022) | Metric ($ in millions) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Fair Value (Losses) Gains | $(229.3) | $114.6 | | Performance Allocations Write-downs | $(64.3) | $(21.1) | - The company uses discounted cash flow and direct capitalization approaches to value its real estate assets, with capitalization rates ranging from **4.10% to 9.30%** and discount rates from **6.30% to 11.00%**[63](index=63&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) [Industry Overview](index=15&type=section&id=Industry%20Overview) The report details market conditions in the Western U.S., Ireland, and the U.K., highlighting impacts of interest rates and housing supply - Western U.S.: Commercial real estate transactions dropped by an estimated **59%** in 2023 due to elevated interest rates, but the multifamily sector experienced strong rental growth[76](index=76&type=chunk)[77](index=77&type=chunk) - Ireland: The economy is projected to have progressively higher GDP growth, reaching **5.4%** by year-end 2025, with a strong rental market due to significant housing undersupply[82](index=82&type=chunk)[84](index=84&type=chunk) - United Kingdom: Real GDP fell by **0.3%** in Q4 2023, and full-year office leasing was down **16%** compared to the previous year[86](index=86&type=chunk)[87](index=87&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks that could adversely affect the company's business and financial condition, including economic, operational, and stock ownership factors [Risks Related to Our Business](index=19&type=section&id=Risks%20Related%20to%20Our%20Business) The company's business is vulnerable to economic downturns, adverse credit markets, inflation, fair value volatility, and foreign operation risks - The business is highly sensitive to economic slowdowns, which can lead to decreased demand, lower rents, declining property values, and reduced access to capital[112](index=112&type=chunk)[113](index=113&type=chunk) - Elevated interest rates and credit market volatility increase borrowing costs and may negatively impact the ability to secure future financing or refinance existing debt on favorable terms[118](index=118&type=chunk) - Approximately **41%** of revenues are sourced from foreign operations, primarily the U.K. and Ireland, exposing the company to risks from currency fluctuations, political instability, and differing legal and tax systems[125](index=125&type=chunk) - As of December 31, 2023, **25%** of total assets were recorded at estimated fair value, which involves subjective judgments and can result in significant non-cash volatility in financial results[131](index=131&type=chunk)[137](index=137&type=chunk) [Risks Related to Our Company](index=29&type=section&id=Risks%20Related%20to%20Our%20Company) The company faces risks from significant debt, restrictive covenants, reliance on key personnel, and volatility in quarterly financial results - The company has significant debt and may incur more, which increases debt service costs and the risk of default; debt agreements contain restrictive covenants that limit operational and financial flexibility[176](index=176&type=chunk)[178](index=178&type=chunk)[180](index=180&type=chunk) - The company's success is highly dependent on its senior executives, particularly the CEO, and the loss of their services could significantly diminish relationships with lenders, partners, and clients[184](index=184&type=chunk) - The company's ability to use its net operating loss carryforwards (**$47.5 million** federal, **$100.8 million** California) and foreign tax credits (**$100.5 million**) may be limited by ownership changes under Section 382 of the tax code[193](index=193&type=chunk) [Risks Related to Ownership of Our Common Stock](index=33&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Stockholders face risks from significant influence by directors, potential dilution, stock price volatility, and anti-takeover provisions - As of December 31, 2023, directors and executive officers owned approximately **13%** of the outstanding common stock, giving them significant influence over stockholder votes[198](index=198&type=chunk) - Stockholders face potential dilution from outstanding warrants convertible into approximately **25 million shares** and Series A Preferred Stock convertible into approximately **12 million shares**[199](index=199&type=chunk) - The company has a staggered board and other anti-takeover provisions that may entrench management and deter takeover attempts, potentially limiting stockholders' ability to receive a premium for their shares[202](index=202&type=chunk)[204](index=204&type=chunk) [Unresolved Staff Comments](index=35&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - None[209](index=209&type=chunk) [Cybersecurity](index=35&type=section&id=Item%201C.%20Cybersecurity) The company has a NIST CSF-based cybersecurity program overseen by the Board, with no material incidents reported - The company's cybersecurity risk management program is designed and assessed based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF)[211](index=211&type=chunk) - Oversight is provided by the Board of Directors and its Audit Committee, with management responsible for implementation, assisted by a third-party IT and cybersecurity firm[213](index=213&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - The company is not aware of any cybersecurity risks or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[212](index=212&type=chunk) [Properties](index=36&type=section&id=Item%202.%20Properties) This section details the company's consolidated properties, including commercial and multifamily portfolios with high occupancy rates Consolidated Properties by Type (as of Dec 31, 2023) | Property Type | Size | Occupancy/Leased % | | :--- | :--- | :--- | | Commercial | 5.0 million sq. ft. | 93% | | Multifamily | 9,230 units | 94% | - The commercial lease expiration schedule indicates that **42%** of the annualized base rent is scheduled to expire between 2024 and 2026[221](index=221&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) The company states it is not currently involved in any legal proceedings material to its business - The company is not currently involved in any legal proceedings that it believes would be material to its business[224](index=224&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[226](index=226&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, paid quarterly dividends, repurchased shares, and saw AUM increase by 7% in 2023 - The company paid quarterly dividends of **$0.24 per share** in 2023[230](index=230&type=chunk) AUM Reconciliation for FY 2023 ($ in millions) | | Dec 31, 2022 | Increases | Decreases | Dec 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | AUM | $23,028.4 | $4,412.1 | $2,897.6 | $24,542.9 | - During FY2023, the company repurchased **0.7 million shares** of its common stock at a weighted average price of **$11.17 per share**[234](index=234&type=chunk) [Reserved](index=40&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Kennedy Wilson reported a net loss of $341.8 million and a significant drop in Adjusted EBITDA, primarily due to non-cash fair value losses and cap rate expansion [2023 Highlights](index=41&type=section&id=2023%20Highlights) The company reported a net loss of $341.8 million in 2023, driven by non-cash fair value losses, and acquired a $4.1 billion construction loan portfolio - Net loss to common shareholders was **$341.8 million** in 2023, a significant downturn from a net income of **$64.8 million** in 2022[245](index=245&type=chunk) - The company recorded **$293.6 million** of non-cash fair value losses and accrued performance allocation decreases, primarily due to estimated cap rate expansion on office and multifamily properties[245](index=245&type=chunk) - Acquired a **$4.1 billion** construction loan portfolio from Pacific Western Bank with partner Fairfax, with Kennedy Wilson taking a **5%** investment interest[245](index=245&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Total revenue increased slightly in FY2023, but significant fair value losses from unconsolidated investments led to a total net loss Results of Operations by Segment (Year Ended Dec 31, 2023, $ in millions) | Segment | Total Revenue | Net Income (Loss) | Net (Loss) Attributable to KW Shareholders | | :--- | :--- | :--- | :--- | | Consolidated | $472.4 | $22.6 | $0.2 | | Co-Investments | $88.0 | $(208.4) | $(208.4) | | Corporate | $2.2 | $(95.6) | $(133.6) | | **Total** | **$562.6** | **$(281.4)** | **$(341.8)** | - Consolidated Portfolio rental income decreased by **$19.6 million** to **$415.3 million** due to non-core asset sales, while hotel income increased by **$10.2 million** to **$57.1 million** due to improved post-pandemic travel[259](index=259&type=chunk)[260](index=260&type=chunk) - Co-Investment Portfolio investment management fees increased to **$61.9 million** from **$44.8 million**, and loan income grew to **$26.1 million** from **$11.7 million**, driven by the expanding debt platform and higher interest rates[272](index=272&type=chunk)[273](index=273&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash and credit lines, but faced a credit rating downgrade, impacting future debt market access - As of December 31, 2023, the company had **$313.7 million** of consolidated cash and **$349.6 million** of availability under its lines of credit[295](index=295&type=chunk) - In December 2023, S&P downgraded the company's credit rating to '**BB-**' and maintained a negative CreditWatch, which could impact future ability to access debt markets[299](index=299&type=chunk) - The company has an estimated **$95.0 million** in remaining costs to complete its share of active market-rate development projects[300](index=300&type=chunk) Consolidated Contractual Cash Obligations ($ in millions) | Period | Amount | | :--- | :--- | | Less than 1 year | $151.2 | | 1 - 3 years | $1,906.8 | | 4 - 5 years | $1,151.5 | | After 5 years | $2,152.4 | | **Total** | **$5,361.9** | [Critical Accounting Policies](index=68&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant judgment in fair value investments, performance allocations, and real estate acquisitions - Fair Value Investments: The company uses fair value accounting for its commingled funds and has elected the fair value option for **72** other unconsolidated investments, requiring subjective estimates for valuation[402](index=402&type=chunk)[404](index=404&type=chunk) - Performance Allocations: These are calculated each period based on the cumulative performance of funds as if the underlying investments were realized at fair value, making them subject to significant volatility and potential reversals[407](index=407&type=chunk) - Real Estate Acquisitions: The allocation of purchase price to land, buildings, and intangible lease values is based on management estimates of relative fair value, which can affect future depreciation and amortization expenses[409](index=409&type=chunk)[410](index=410&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates market risk disclosures from Item 7, covering interest rate and foreign currency risks - The information for this item is incorporated by reference from Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations[412](index=412&type=chunk) [Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited financial statements and the auditor's unqualified opinion, noting a critical audit matter on fair value investments - The independent auditor, KPMG LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of the company's internal control over financial reporting[417](index=417&type=chunk)[418](index=418&type=chunk) - A critical audit matter was identified related to the evaluation of the fair value of certain unconsolidated investments and commingled funds, citing the high degree of subjectivity and sensitivity of the discounted cash flow models used[422](index=422&type=chunk)[423](index=423&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=126&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[701](index=701&type=chunk) [Controls and Procedures](index=126&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[703](index=703&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[705](index=705&type=chunk) [Other Information](index=126&type=section&id=Item%209B.%20Other%20Information) The company reports no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q4 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended December 31, 2023[708](index=708&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=126&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company reports no applicable information for this item - None[709](index=709&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=127&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2024 annual meeting proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2024 annual meeting[711](index=711&type=chunk) [Executive Compensation](index=127&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2024 annual meeting proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2024 annual meeting[712](index=712&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=127&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's 2024 annual meeting proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2024 annual meeting[713](index=713&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=127&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2024 annual meeting proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2024 annual meeting[714](index=714&type=chunk) [Principal Accounting Fees and Services](index=127&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2024 annual meeting proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2024 annual meeting[715](index=715&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=128&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and various exhibits filed as part of the annual report - This item lists all financial statements, schedules, and exhibits filed with the Form 10-K[718](index=718&type=chunk)
Kennedy Wilson(KW) - 2023 Q4 - Annual Results
2024-02-21 21:31
BEVERLY HILLS, Calif. (February 21, 2024) - Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading global real estate investment company with $25 billion in AUM across its real estate equity and debt investment portfolio, today reported the following results for the fourth quarter and full year of 2023: Kennedy-Wilson Holdings, Inc. Supplemental Financial Information Fourth Quarter and Full Year December 31, 2023 TABLE OF CONTENTS | Earnings Release | | | --- | --- | | News Release | 3 | | Consolidated Balance ...
Kennedy Wilson(KW) - 2023 Q3 - Quarterly Report
2023-11-02 20:18
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-33824 Kennedy-Wilson Holdings, Inc. (Exact name of Registrant as specified in its charter) Delaware 26-05087 ...
Kennedy Wilson(KW) - 2023 Q2 - Quarterly Report
2023-08-03 22:05
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-33824 Kennedy-Wilson Holdings, Inc. (Exact name of Registrant as specified in its charter) Delaware 26-0508760 (S ...
Kennedy Wilson(KW) - 2023 Q1 - Earnings Call Transcript
2023-05-06 16:02
Kennedy-Wilson Holdings, Inc. (NYSE:KW) Q1 2023 Earnings Conference Call May 4, 2023 12:00 PM ET Company Participants Daven Bhavsar - Investor Relations Bill McMorrow - Chairman and Chief Executive Officer Mary Ricks - President Matt Windisch - Executive Vice President Justin Enbody - Chief Financial Officer Conference Call Participants Derek Johnston - Deutsche Bank Anthony Paolone - JPMorgan Josh Dennerlein - Bank of America Operator Good day, and welcome to the Kennedy-Wilson First Quarter 2023 Earnings ...