Kennedy Wilson(KW) - 2024 Q1 - Quarterly Results

Financial Performance - GAAP net income for Q1 2024 was $26.9 million, a significant improvement from a net loss of $40.8 million in Q1 2023[5] - Adjusted EBITDA increased to $203.2 million in Q1 2024, compared to $90.9 million in Q1 2023, reflecting strong operational performance[5] - Total revenue for Q1 2024 was $136.4 million, a 3.2% increase from $132.2 million in Q1 2023[26] - Net income attributable to common shareholders was $26.9 million in Q1 2024, compared to a net loss of $40.8 million in Q1 2023[29] - Adjusted EBITDA for Q1 2024 reached $203.2 million, significantly up from $90.9 million in Q1 2023[29] - Basic earnings per share for Q1 2024 was $0.19, recovering from a loss of $0.30 per share in Q1 2023[26] - Total expenses decreased to $114.1 million in Q1 2024 from $124.5 million in Q1 2023, reflecting a 8.5% reduction[26] - Interest expense increased to $64.7 million in Q1 2024 from $62.3 million in Q1 2023[26] - Total revenue for the three months ended March 31, 2024, was $136.4 million, an increase of 11.6% compared to $122.2 million in the same period of 2023[107] - Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $66.9 million, compared to a loss of $59.6 million in the same period last year[107] - Adjusted EBITDA for the quarter was $203.2 million, reflecting a significant increase from the previous year[107] - Total operating expenses for the quarter were $114.1 million, up from $97.2 million in the same period last year[107] Investment and Asset Management - Investment management fees grew by 94% to $21 million in Q1 2024, driven by higher levels of fee-bearing capital and new loan originations[7] - The debt investment platform expanded by 10% to $7.3 billion, with $719 million in new construction loans originated during Q1 2024[7] - The company completed several multifamily construction projects, adding 814 units, which are expected to stabilize and contribute to future NOI[11] - The company declared a quarterly dividend of $0.12 per share, allowing for the retention of $66 million annually to support growth initiatives[17] - The company reported a gain on the sale of real estate of $106.4 million in Q1 2024, compared to $19.2 million in Q1 2023[26] - The company completed real estate acquisitions totaling $94.2 million with a capitalization rate of 6.0% during Q1 2024[103] - Dispositions during the same period amounted to $356.9 million, with a capitalization rate of 8.3%[103] - The company has approximately $25 billion in Real Estate Assets Under Management (AUM) as of March 31, 2024[88] Cash and Debt Management - As of March 31, 2024, total cash and cash equivalents were $541.9 million, an increase from $313.7 million at the end of 2023[24] - Total liabilities decreased slightly to $5.895 billion as of March 31, 2024, compared to $5.914 billion at the end of 2023[24] - The company repurchased 1.1 million shares in Q1 2024 at an average price of $8.76, utilizing $385 million of its $500 million share repurchase authorization since 2018[17] - The company reported total consolidated and unconsolidated debt of $8,004.4 million as of March 31, 2024, with net debt amounting to $7,367.4 million[82] - The effective interest rate on total debt is 4.5%, with a weighted average maturity of 4.6 years[82] - The company has a diversified debt structure, with 67% in multifamily properties and 13% in the United Kingdom[87] Property and Portfolio Performance - The occupancy rate for multifamily properties is reported at 93.7%, while the U.S. office occupancy rate is at 85.1%[46] - The estimated annual NOI is projected to be $464 million, with an additional $89-$94 million expected from the development and lease-up portfolio[10] - Kennedy Wilson's share of property debt is $5,443.8 million, with total capitalization at $9,510.8 million[43] - The total enterprise value of Kennedy Wilson is $8,873.8 million as of March 31, 2024[43] - The company has 34,170 multifamily units with an estimated annual NOI of $272.9 million[46] - The total Stabilized Portfolio consists of 34,170 units with an annual NOI of $463.8 million and an asset value of $8,330.5 million, representing a 37% ownership[55] - The multifamily portfolio has an overall occupancy rate of 93.9%, with average monthly rents per market-rate unit at $1,922, contributing to an estimated annual NOI of $272.9 million[58] - The office portfolio includes 53 assets with a total rentable square footage of 10.8 million sq. ft. and an average annual rent of $38.8 per sq. ft., achieving an occupancy rate of 88.2%[60] - The industrial portfolio comprises 116 assets with a total rentable square footage of 11.5 million sq. ft. and an average annual rent of $8.7 per sq. ft., with an occupancy rate of 97.8%[62] Future Outlook and Strategic Initiatives - The company anticipates continued growth in revenue and profitability, driven by strategic investments and market expansion initiatives[32] - The company plans to continue its market expansion and focus on income-producing properties in the Western U.S. and Europe[104] - The company expects to fund approximately $20 million of its share of remaining costs to complete development projects with cash[76] - The estimated completion date for several projects is set for 2024, with a total of 1,106 multifamily units and an estimated stabilized NOI of $17 million[75] - The company is focused on expanding its investment management platform and enhancing real estate services[88]