Kennedy Wilson(KW)2024-11-07 21:16Financial 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].