Kennedy Wilson(KW) - 2025 Q1 - Quarterly Results

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]