Kennedy Wilson(US:KW)2025-05-08 20:23Financial 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].