Kennedy Wilson(US:KW)2022-05-05 20:18Financial Performance - Total revenue for the three months ended March 31, 2022, was $124.7 million, compared to $110.7 million for the same period in 2021, representing a year-over-year increase of approximately 12.1%[244] - Adjusted EBITDA for the period was $160.1 million, with contributions of $63.5 million from the consolidated segment and $101.6 million from co-investments[244] - Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $34.8 million for the three months ended March 31, 2022[244] - GAAP net income to common shareholders increased to $34.8 million for the three months ended March 31, 2022, compared to a net loss of $5.6 million for the same period in 2021[246] - Adjusted EBITDA rose to $160.1 million for the three months ended March 31, 2022, up from $127.6 million in the same period of 2021, driven by higher fair values on European industrial assets and Western U.S. multifamily properties[246][247] - Net income for the three months ended March 31, 2022, was $40.0 million, a significant improvement from a net loss of $1.6 million in the same period of 2021[320] - The company recorded an adjusted net income of $85.4 million for Q1 2022, compared to $47.0 million in Q1 2021, representing an increase of 81.7%[320] Revenue Breakdown - The rental revenue segment generated $104.2 million, while hotel revenue contributed $6.5 million[244] - Rental income increased to $104.2 million for the three months ended March 31, 2022, compared to $88.9 million in the same period of 2021, primarily due to acquisitions of office properties in the UK[251] - Hotel income surged to $6.5 million for the three months ended March 31, 2022, from $0.8 million in the same period of 2021, attributed to the lifting of COVID-19 restrictions in Ireland[252] - Total revenues for same property multifamily units increased by 10.9% for the three months ended March 31, 2022, while net operating income rose by 13.5%[249] - For the three months ended March 31, 2022, the same property revenue was $94.8 million, an increase from $89.5 million in the same period of 2021, representing a growth of 3.6%[327] - The multifamily market rate portfolio generated revenue of $54.8 million in Q1 2022, compared to $49.5 million in Q1 2021, marking an increase of 10.7%[328] - The multifamily affordable portfolio revenue rose to $11.0 million in Q1 2022, up from $10.5 million in Q1 2021, which is a growth of 4.8%[328] Expenses and Costs - Total expenses for the period were $139.1 million, with significant costs in compensation and related expenses amounting to $29.0 million[244] - The company incurred interest expenses of $50.5 million during the quarter, impacting net income[244] - The company’s share-based compensation expenses were reported at $7.1 million, reflecting ongoing investment in employee incentives[244] - The performance allocation compensation amounted to $11.8 million, indicating a focus on aligning management incentives with investment performance[244] - Interest expense decreased to $29.0 million for the three months ended March 31, 2022, down from $32.1 million in the same period of 2021, due to the payoff of KWE Bonds[258] - Total expenses for the Co-Investment Portfolio segment increased to $29.9 million for the three months ended March 31, 2022, compared to $7.0 million in the same period of 2021, primarily due to performance allocation compensation accruals[262] - The total rental expenses for the same property were $35.7 million in Q1 2022, compared to $33.0 million in Q1 2021, reflecting an increase of 8.2%[327] Investments and Acquisitions - The company acquired $523.9 million of real estate assets and $245.6 million of loans during the three months ended March 31, 2022[249] - The company is actively developing 2,279 multifamily units, 0.5 million commercial rentable square feet, and 150 hotel rooms, with an estimated total cost of $1.2 billion[279] - The company expects to incur an additional $599.0 million to complete its development projects, with $255.0 million expected to be funded through cash[279] - The company had unfulfilled capital commitments totaling $245.9 million to joint venture investments as of March 31, 2022[317] Cash Flow and Financing - Net cash used in operating activities for Q1 2022 was $58.9 million, an improvement from $76.6 million in Q1 2021[294][295] - Net cash used in investing activities totaled $246.3 million in Q1 2022, with $103.7 million spent on acquiring consolidated real estate assets[296] - Net cash provided by financing activities was $251.4 million for Q1 2022, including $102.7 million from mortgage loans[299] - The company received $297.9 million from the issuance of perpetual preferred stock and warrants during Q1 2022[298] - The company repurchased $31.3 million of its common stock under its share repurchase plan as of March 31, 2022[299] - The company received proceeds of $1.2 billion from the issuance of 2029 and 2031 notes, while repaying $576.9 million of the 2024 notes[300] - Total contractual cash obligations as of March 31, 2022, amounted to $5,488.9 million, including $5,454.7 million in borrowings[301] - The company had $462.1 million in consolidated cash as of March 31, 2022, with $120.3 million held in unconsolidated Co-Investment Portfolio assets[276] Tax and Compliance - The effective tax rate for the three months ended March 31, 2022, was 17.0%, significantly lower than 245.5% in 2021, primarily due to a $47.1 million increase in worldwide pre-tax book income[270] - The company reported a provision for income taxes of $8.2 million for Q1 2022, compared to $2.7 million in Q1 2021[320] - The company was in compliance with all debt covenants as of March 31, 2022[315]