Kennedy Wilson(US:KW)2024-05-09 20:30Financial Performance - For the three months ended March 31, 2024, total revenue was $136.4 million, a decrease of 2.9% from $132.2 million in the same period of 2023[276][277]. - Net income attributable to common shareholders for the three months ended March 31, 2024, was $26.9 million, compared to a net loss of $40.8 million for the same period in 2023[278]. - Adjusted EBITDA increased significantly to $203.2 million for the three months ended March 31, 2024, up from $90.9 million in the prior year[278]. - Net income for the three months ended March 31, 2024, was $2.9 million, compared to $3.1 million in the same period in 2023, reflecting a decrease of 6%[283]. - Rental income decreased to $97.4 million for the three months ended March 31, 2024, down from $106.6 million in the same period in 2023, a decline of 8.6%[284]. - Gain on sale of real estate, net, was $106.4 million for the three months ended March 31, 2024, significantly up from $19.2 million in the same period in 2023, an increase of 454%[286]. - Net income for Q1 2024 was $37.7 million, a significant improvement from a net loss of $28.7 million in Q1 2023[353]. - Adjusted EBITDA for Q1 2024 reached $203.2 million, compared to $90.9 million in Q1 2023, reflecting a year-over-year increase of 123.5%[353]. - Total revenue for Q1 2024 was $136.4 million, an increase from $132.2 million in Q1 2023, representing a growth of 1.6%[364]. Operational Metrics - Adjusted Net Income excludes depreciation, amortization, and noncontrolling interests, providing a clearer picture of the company's operational results[15]. - Net Operating Income (NOI) is calculated by deducting property expenses from revenues, excluding depreciation and gains or losses from property sales, to assess property performance[22]. - Same property analysis is used to evaluate consistent performance across periods, excluding properties that were acquired, sold, or under development[28]. - Same property multifamily units occupancy remained flat at 93.9%, with net operating income increasing by 2.4% and total revenues increasing by 3.0%[281]. - Same property revenue for Q1 2024 was $123.6 million, up from $120.5 million in Q1 2023, indicating a year-over-year increase of 2.6%[364]. - Same property NOI (Net Effective) for Q1 2024 was $87.9 million, slightly higher than $86.8 million in Q1 2023, showing a growth of 1.3%[365]. - The company's net operating income for the consolidated portfolio in Q1 2024 was $59.7 million, up from a net loss of $28.7 million in Q1 2023[356]. Investment and Development - The company manages a Co-Investment Portfolio, generating NOI from properties in which it has ownership interests[17]. - The company completed $94 million in gross real estate acquisitions, including $90 million invested in two multifamily properties in the Pacific Northwest[281]. - The company incurred $229 million in costs to date for its 1,106 multifamily units under development, with an estimated total cost of $281 million[313]. - An additional $84 million is expected to be spent to complete the development projects, with $20 million funded through company cash[313]. - The company is currently developing 1,604 affordable and/or age-restricted multifamily units, expecting to receive $11.2 million in cash from developer fees and tax credit sales upon completion[314]. - The company has 11 assets comprising 1.1 million commercial square feet and 1,402 multifamily units that are currently unstabilized, with projected costs to stabilize of $44.9 million[318]. Financial Position and Liquidity - The company has $541.9 million in consolidated cash, including $342.2 million in foreign currencies as of March 31, 2024[310]. - The company has $252.1 million available under its revolving credit facility, with $247.9 million outstanding as of March 31, 2024[310]. - Cash reserves increased to $541.9 million as of March 31, 2024, compared to $313.7 million at the end of 2023, showing a significant liquidity improvement[361]. - The mortgage debt decreased to $2,773.1 million as of March 31, 2024, from $2,840.9 million at the end of 2023, reflecting a reduction in leverage[361]. - Total contractual cash obligations as of March 31, 2024, amounted to $5,384.9 million, with $2,787.5 million in mortgage debt and $1,800.0 million in senior notes[334]. - The company has $169.9 million available under its at-the-market program as of March 31, 2024, allowing for opportunistic equity sales[309]. Expenses and Costs - Interest expense increased to $39.9 million for the three months ended March 31, 2024, compared to $37.2 million in the same period in 2023, an increase of 7.3%[291]. - Co-Investment Portfolio expenses decreased to $5.5 million for the three months ended March 31, 2024, down from $13.2 million in the prior period, a decrease of 58.3%[300]. - The company spent $51.5 million on capital expenditures primarily related to development properties during the three months ended March 31, 2024[330]. - The provision for income taxes in Q1 2024 was $26.7 million, compared to a benefit of $3.9 million in Q1 2023, highlighting a shift in tax liabilities[353]. Shareholder Returns and Equity - The recent adjustment to the common stock dividend is expected to provide approximately $66 million of additional cash per year for growth opportunities or debt repayment[308]. - The company repurchased $9.1 million of its common stock under the share repurchase plan during the three months ended March 31, 2024[332]. - The company had $115.3 million remaining under the current stock repurchase plan as of March 31, 2024[323]. Compliance and Covenants - The company is required to maintain a maximum consolidated leverage ratio of not greater than 65% and a minimum fixed charge coverage ratio of at least 1.70 to 1.00[343]. - As of March 31, 2024, the company was in compliance with all financial covenants, except for one mortgage loan representing 1% of total mortgage debt[347]. - The company has unfulfilled capital commitments totaling $178.2 million to joint venture investments and $92.2 million to its loan portfolio as of March 31, 2024[350].