Kennedy Wilson(KW) - 2024 Q4 - Annual Results

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].