Kennedy Wilson Reports Third Quarter 2024 Results
Kennedy Wilson (NYSE: KW) reported Q3-2024 results with a GAAP net loss of $77.4 million ($0.56 per share). The company's Adjusted EBITDA increased to $66.4 million from $33.2 million in Q3-2023. Notable developments include a 39% growth in investment management fees to $22 million and record fee-bearing capital of $8.8 billion. The company stabilized two California multifamily properties, adding $12 million in Estimated Annual NOI. Kennedy Wilson announced a €175 million partial redemption of KWE bonds and launched a new UK single-family rental housing joint venture with CPPIB targeting £1 billion in real estate.
Kennedy Wilson (NYSE: KW) ha riportato i risultati del terzo trimestre del 2024, con una perdita netta GAAP di $77,4 milioni ($0,56 per azione). L'EBITDA rettificato dell'azienda è aumentato a $66,4 milioni, rispetto ai $33,2 milioni del terzo trimestre del 2023. Tra gli sviluppi notevoli, si evidenzia una crescita del 39% delle commissioni di gestione degli investimenti, che ha raggiunto i $22 milioni, e un capitale soggetto a commissioni record di $8,8 miliardi. L'azienda ha stabilizzato due proprietà multifamiliare in California, aggiungendo $12 milioni in NOI Annuale Stimato. Kennedy Wilson ha annunciato un rimborso parziale di €175 milioni di obbligazioni KWE e ha lanciato una nuova joint venture per abitazioni in affitto unifamiliari nel Regno Unito con CPPIB, puntando a £1 miliardo in immobili.
Kennedy Wilson (NYSE: KW) informó los resultados del tercer trimestre de 2024, con una pérdida neta GAAP de $77,4 millones ($0,56 por acción). El EBITDA ajustado de la empresa aumentó a $66,4 millones desde $33,2 millones en el tercer trimestre de 2023. Los desarrollos destacados incluyen un crecimiento del 39% en las comisiones de gestión de inversiones, que alcanzaron $22 millones, y un capital sujeto a comisiones récord de $8,8 mil millones. La empresa estabilizó dos propiedades multifamiliares en California, sumando $12 millones en NOI Anual Estimado. Kennedy Wilson anunció un reembolso parcial de €175 millones de bonos KWE y lanzó una nueva joint venture de viviendas unifamiliares en alquiler en el Reino Unido con CPPIB, apuntando a £1 mil millones en bienes raíces.
케네디 윌슨 (NYSE: KW)이 2024년 3분기 실적을 발표했으며, GAAP 기준으로 순손실이 7,740만 달러($0.56 per share)로 보고되었습니다. 회사의 조정된 EBITDA는 3분기 2023년의 3,320만 달러에서 6,640만 달러로 증가했습니다. 주목할 만한 발전으로는 투자 관리 수수료가 39% 증가하여 2,200만 달러에 이르렀고, 수수료 수익 자본이 88억 달러로 기록을 세웠습니다. 회사는 두 개의 다가구 주택을 안정화하여 추정 연간 NOI에 1,200만 달러를 추가했습니다. 케네디 윌슨은 KWE 채권의 1억 7500만 유로 부분 상환을 발표하고 CPPIB와 함께 영국에서 10억 파운드의 부동산을 목표로 하는 새로운 단독 주택 임대 합작 투자를 시작했습니다.
Kennedy Wilson (NYSE: KW) a annoncé les résultats du troisième trimestre 2024, avec une perte nette GAAP de 77,4 millions de dollars (0,56 dollar par action). L'EBITDA ajusté de la société a augmenté à 66,4 millions de dollars, contre 33,2 millions de dollars au troisième trimestre 2023. Parmi les développements notables, on note une croissance de 39 % des frais de gestion des investissements, atteignant 22 millions de dollars, et un capital productif de frais record de 8,8 milliards de dollars. La société a stabilisé deux propriétés multifamiliales en Californie, ajoutant 12 millions de dollars de NOI annuel estimé. Kennedy Wilson a annoncé un remboursement partiel de 175 millions d'euros d'obligations KWE et a lancé un nouveau partenariat pour la location de maisons unifamiliales au Royaume-Uni avec CPPIB, visant 1 milliard de livres sterling en immobilier.
Kennedy Wilson (NYSE: KW) hat die Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem GAAP-Nettoverlust von 77,4 Millionen Dollar (0,56 Dollar pro Aktie). Das adjustierte EBITDA des Unternehmens stieg auf 66,4 Millionen Dollar, von 33,2 Millionen Dollar im 3. Quartal 2023. Zu den bemerkenswerten Entwicklungen gehören ein Wachstum der Investitionsverwaltungskosten um 39% auf 22 Millionen Dollar und ein Rekord an gebührenpflichtigem Kapital von 8,8 Milliarden Dollar. Das Unternehmen stabilisierte zwei Mehrfamilienhäuser in Kalifornien und fügte 12 Millionen Dollar an geschätztem jährlichen NOI hinzu. Kennedy Wilson gab eine teilweise Rückzahlung von 175 Millionen Euro von KWE-Anleihen bekannt und startete ein neues Joint Venture für Einfamilienhäuser zur Miete im Vereinigten Königreich mit CPPIB, das auf 1 Milliarde Pfund in Immobilien abzielt.
- Investment management fees grew 39% to $22 million in Q3-2024
- Fee-bearing capital reached record $8.8 billion, up 5% YTD
- Added $12 million in Estimated Annual NOI from multifamily stabilizations
- Debt investment platform grew to $8.2 billion with $422 million in new originations
- Generated $375 million in cash from asset sales YTD
- GAAP Net Loss of $77.4 million in Q3-2024
- Adjusted Net Loss of $34.7 million in Q3-2024
- Decline in rental revenue from $102.4M to $97.8M year-over-year
- Interest expense increased to $66.9M from $64.2M year-over-year
Insights
Kennedy Wilson's Q3-2024 results reveal mixed performance with notable challenges. The company reported a
The multifamily portfolio shows resilience with
Company announces
Financial Results
(Amounts in millions, except per share data) |
Q3 |
|
YTD |
||||||||
GAAP Results |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Net (Loss) Income to Common Shareholders1 |
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Per Diluted Share |
(0.56 |
) |
|
(0.66 |
) |
|
(0.79 |
) |
|
(0.67 |
) |
(Amounts in millions) |
Q3 |
|
YTD |
||||||||||||
Non-GAAP Results |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
$ |
|
|
|||
Adjusted Net (Loss) Income |
|
(34.7 |
) |
|
|
(46.7 |
) |
|
|
19.0 |
|
|
|
44.6 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA - Key Components (at KW share) |
|
|
|
|
|
|
|||||||||
Baseline EBITDA: Property NOI, loan income, and inv. mgt fees (net of compensation and general and administrative expenses) |
$ |
101.7 |
|
|
$ |
102.0 |
|
|
$ |
309.3 |
|
|
$ |
297.0 |
|
Realized gain on the sale of real estate |
|
4.9 |
|
|
|
13.6 |
|
|
|
115.1 |
|
|
|
122.3 |
|
Change in the fair value of the Co-investment portfolio and Carried interests |
|
(21.3 |
) |
|
|
(73.7 |
) |
|
|
(52.0 |
) |
|
|
(107.4 |
) |
Other income/(loss) |
|
(18.9 |
) |
|
|
(8.7 |
) |
|
|
(23.5 |
) |
|
|
7.3 |
|
Adjusted EBITDA |
$ |
66.4 |
|
|
$ |
33.2 |
|
|
$ |
348.9 |
|
|
$ |
319.2 |
|
1Includes non-cash charges totaling |
“Our Q3 activity continued the substantial progress we have been making throughout 2024 on our key initiatives, including the stabilization of our developments, the completion of non-core asset sales which generated
Portfolio Update
-
Estimated Annual NOI Grows to
and Fee-Bearing Capital Grows to$492 million billion:$8.8 -
Estimated Annual NOI: Estimated Annual NOI grew to
(from$492 million in Q2-24) primarily driven by asset stabilizations and partially offset by non-core asset dispositions.$485 million -
Investment Management Fees: Grew by
39% in Q3-24 (vs Q3-23) to primarily as a result of increasing levels of recurring base management fees and originations from KW's debt investment platform.$22 million
-
Estimated Annual NOI: Estimated Annual NOI grew to
|
Est. Annual NOI To KW ($ in millions) |
|
Fee-Bearing Capital ($ in billions) |
||
As of Q2-24 |
|
|
|
|
|
Transaction activity, net1 |
(11 |
) |
|
— |
|
Assets stabilized/(unstabilized) |
12 |
|
|
— |
|
Operations |
(2 |
) |
|
— |
|
FX and other |
8 |
|
|
0.1 |
|
Total as of Q3-24 |
|
|
|
|
|
1 Includes real estate acquisitions, dispositions, loan fundings and loan repayments completed during Q3-24. The Company also completed |
-
Multifamily Stabilizations Add
to Estimated Annual NOI in Q3-24;$12 million in YTD-24:$29 Million -
The Company stabilized two
California multifamily properties totaling 512 units during Q3-24: Anacapa Canyon inSouthern California and 38 North inNorthern California . These assets added in Estimated Annual NOI.$12 million -
In 2024, the Company has added
in Estimated Annual NOI from stabilizing approximately 2,000 multifamily units.$29 million -
With these stabilizations, the Multifamily portfolio has grown to represent
62% of Est. Annual NOI.
-
The Company stabilized two
-
Development and Lease-up Portfolio Expected To Add
~ in Estimated Annual NOI:$60 million -
Near Term Stabilization: Expected to add
in Estimated Annual NOI by YE-25 from the stabilization of the lease-up portfolio.$36 million -
U.S. Multifamily Completes Construction of 462 Units:- In addition to stabilizing Anacapa Canyon (310 units) and 38 North (202 units), the Company completed construction of Vintage at Spanish Springs (257 units) and Vintage at Washington Station (205 units) in the Mountain West, which are both currently in lease-up.
-
In total, the Company has 2,158 units in the
Western U.S. undergoing lease-up or development, which are expected to add in Estimated Annual NOI upon stabilization.$15 million
-
Development Portfolio Nears Completion: In 2024, the Company has spent
of cash on development vs.$31 million spent in 2023 (through Q3-23). The Company has$122 million of remaining development costs.$3 million
-
Near Term Stabilization: Expected to add
- Multifamily Same Property Performance(1): Improving Occupancy Leads to NOI Growth
|
Q3 - 2024 vs. Q3 - 2023 |
YTD - 2024 vs. YTD - 2023 |
||||||||||||
|
Occupancy |
|
Revenue |
|
Expenses |
|
NOI (Net Effective) |
Occupancy |
|
Revenue |
|
Expenses |
|
NOI (Net Effective) |
Multifamily - Market Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily - Affordable |
(1.2)% |
|
|
|
|
|
|
(1.7)% |
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes minority-held investments and assets undergoing development or lease-up. |
Investment Management Business
-
39% Growth in Investment Management Fees:-
Q3-24 Investment Management fees grew by
39% to (vs Q3-23) driven by higher levels of Fee-Bearing Capital and$22 million of new originations from the Company's Debt Investment Platform.$422 million -
YTD-24 Investment Management fees grew by
51% to (vs. YTD-23).$69 million
-
Q3-24 Investment Management fees grew by
-
Fee-Bearing Capital Grew to a Record
in Q3-24, +$8.8 billion 5% YTD:-
In addition to the
in Fee-Bearing Capital, the Company has future incremental Fee-Bearing Capital consisting of the following:$8.8 billion -
in future fundings on previously originated loans within the Debt Investment Platform.$3.1 billion -
in incremental non-discretionary capital available from certain strategic partners for equity and debt investment.$3.0 billion
-
-
In addition to the
-
Debt Investment Platform Grows to
in Q3-24:$8.2 billion -
Q3-24 Investment Activity Increases Platform By
3% : In Q3-24, originated in new construction loans, completed$422 million in additional fundings on existing loans, and realized$205 million in repayments$220 million -
Debt Investment Platform: Includes
in outstanding loans ($5.1 billion of Fee-Bearing Capital) and$4.9 billion of future funding commitments. KW has an average ownership of$3.1 billion 5% . -
Debt Platform Growth Since Q2-23: Completed
in new originations since June 30, 2023, with over$2.3 billion in new originations in process and expected to close in Q4-24.$1 billion
-
Q3-24 Investment Activity Increases Platform By
Real Estate Investment Activity
-
Q3-24:
in Gross Dispositions ($234 million at share):$148 million -
Consolidated Portfolio: Sold last remaining wholly-owned asset in
Spain (retail) and a multifamily property in the Pacific Northwest, for a total of . These asset sales generated$130 million of cash and a gain on sale of$63 million to KW.$6 million -
Co-Investment Portfolio: Sold
of real estate investments comprised of three investments from its commingled funds and sales from its non-core residential holdings, in which KW's weighted-average ownership was$104 million 22% .
-
Consolidated Portfolio: Sold last remaining wholly-owned asset in
-
YTD-24:
in Gross Dispositions ($650 million at share) Generated$526 million of Cash to KW$375 million
Balance Sheet and Liquidity
-
Line of Credit Renewal and Expansion: The Company's credit facility was expanded to
in partnership with a ten-member banking syndicate. The new credit facility has a fully extended maturity of September 2028.$550 million -
Cash and Line of Credit Availability: As of September 30, 2024, Kennedy Wilson had a total of
(1) in cash and cash equivalents and$367 million drawn on its$177 million revolving credit facility.$550 million -
Debt Profile: Kennedy Wilson's share of debt had a weighted average effective interest rate of
4.6% per annum and a weighted average maturity of 4.8 years as of September 30, 2024. Approximately96% of the Company's debt is either fixed or hedged with interest rate hedges. -
Interest Rate Hedging Strategy: The Company hedges its floating rate exposure through the use of interest rate caps and swaps. The Company's interest rate hedges have a weighted average maturity of 1.2 years. The Company received
of cash from its interest rate derivatives in Q3-24, which is not reflected as an offset to interest expense. Since 2022, the Company has received$10 million from its interest rate hedges.$73 million -
Foreign Currency Hedging Strategy: Kennedy Wilson hedges its exposure to foreign currency fluctuations by borrowing in the currency in which it invests and using foreign currency hedging instruments. As of September 30, 2024, the Company has hedged approximately
94% of the carrying value of its foreign currency investments, using local currency debt and hedging instruments with a weighted average term of 2.0 years.
Subsequent Events
In October, the Company announced the launch of a new
The Company announced a
Footnotes |
||
(1) |
Represents consolidated cash and includes |
|
(2) |
The final redemption price will be calculated on December 16, 2024 in accordance with the terms and conditions of the notes. |
Conference Call and Webcast Details
Kennedy Wilson will hold a live conference call and webcast to discuss results at 9:00 a.m. PT/12:00 p.m. ET on Thursday, November 7. The direct dial-in number for the conference call is (844) 340-4761 for
The webcast will be available at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=P2TRNm93. A replay of the webcast will be available one hour after the original webcast on the Company’s investor relations web site for three months.
About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading real estate investment company with
Kennedy-Wilson Holdings, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in millions) |
||||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
367.1 |
|
|
$ |
313.7 |
|
Accounts receivable, net |
|
|
43.0 |
|
|
|
57.3 |
|
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of |
|
|
4,570.7 |
|
|
|
4,837.3 |
|
Unconsolidated investments (including |
|
|
2,052.9 |
|
|
|
2,069.1 |
|
Loan purchases and originations, net |
|
|
248.1 |
|
|
|
247.2 |
|
Other assets, net |
|
|
162.4 |
|
|
|
187.5 |
|
Total assets |
|
$ |
7,444.2 |
|
|
$ |
7,712.1 |
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
9.8 |
|
|
$ |
17.9 |
|
Accrued expenses and other liabilities (including |
|
|
548.4 |
|
|
|
597.8 |
|
Mortgage debt |
|
|
2,749.1 |
|
|
|
2,840.9 |
|
KW unsecured debt |
|
|
1,955.2 |
|
|
|
1,934.3 |
|
KWE unsecured bonds |
|
|
528.9 |
|
|
|
522.8 |
|
Total liabilities |
|
|
5,791.4 |
|
|
|
5,913.7 |
|
Equity |
|
|
|
|
||||
Cumulative perpetual preferred stock |
|
|
789.9 |
|
|
|
789.9 |
|
Common stock |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
1,706.4 |
|
|
|
1,718.6 |
|
Accumulated deficit |
|
|
(510.3 |
) |
|
|
(349.0 |
) |
Accumulated other comprehensive loss |
|
|
(372.3 |
) |
|
|
(404.4 |
) |
Total Kennedy-Wilson Holdings, Inc. shareholders’ equity |
|
|
1,613.7 |
|
|
|
1,755.1 |
|
Noncontrolling interests |
|
|
39.1 |
|
|
|
43.3 |
|
Total equity |
|
|
1,652.8 |
|
|
|
1,798.4 |
|
Total liabilities and equity |
|
$ |
7,444.2 |
|
|
$ |
7,712.1 |
|
Kennedy-Wilson Holdings, Inc. Consolidated Statements of Operations (Unaudited) (Dollars in millions, except share amounts and per share data) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Rental |
|
$ |
97.8 |
|
|
$ |
102.4 |
|
|
$ |
293.0 |
|
|
$ |
315.6 |
|
Hotel |
|
|
— |
|
|
|
16.6 |
|
|
|
9.3 |
|
|
|
42.7 |
|
Investment management fees |
|
|
21.6 |
|
|
|
15.5 |
|
|
|
69.0 |
|
|
|
45.6 |
|
Loan |
|
|
7.6 |
|
|
|
8.6 |
|
|
|
23.7 |
|
|
|
17.0 |
|
Other |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
0.9 |
|
|
|
1.6 |
|
Total revenue |
|
|
127.5 |
|
|
|
143.8 |
|
|
|
395.9 |
|
|
|
422.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from unconsolidated investments |
|
|
|
|
|
|
|
|
||||||||
Principal co-investments |
|
|
(3.9 |
) |
|
|
(56.1 |
) |
|
|
— |
|
|
|
(33.4 |
) |
Carried interests |
|
|
(16.4 |
) |
|
|
(17.9 |
) |
|
|
(45.1 |
) |
|
|
(36.3 |
) |
Total loss from unconsolidated investments |
|
|
(20.3 |
) |
|
|
(74.0 |
) |
|
|
(45.1 |
) |
|
|
(69.7 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of real estate, net |
|
|
6.2 |
|
|
|
30.4 |
|
|
|
112.8 |
|
|
|
138.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
||||||||
Rental |
|
|
39.0 |
|
|
|
38.4 |
|
|
|
113.2 |
|
|
|
113.7 |
|
Hotel |
|
|
— |
|
|
|
9.8 |
|
|
|
7.6 |
|
|
|
27.4 |
|
Compensation and related (including |
|
|
30.0 |
|
|
|
31.1 |
|
|
|
89.4 |
|
|
|
98.7 |
|
Carried interests compensation |
|
|
(5.5 |
) |
|
|
(6.0 |
) |
|
|
(15.5 |
) |
|
|
(5.5 |
) |
General and administrative |
|
|
10.2 |
|
|
|
8.4 |
|
|
|
28.0 |
|
|
|
25.5 |
|
Depreciation and amortization |
|
|
36.9 |
|
|
|
38.8 |
|
|
|
112.2 |
|
|
|
118.3 |
|
Total expenses |
|
|
110.6 |
|
|
|
120.5 |
|
|
|
334.9 |
|
|
|
378.1 |
|
Interest expense |
|
|
(66.9 |
) |
|
|
(64.2 |
) |
|
|
(195.4 |
) |
|
|
(192.5 |
) |
Loss on early extinguishment of debt |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.5 |
) |
|
|
(1.6 |
) |
Other (loss) income |
|
|
(13.1 |
) |
|
|
0.7 |
|
|
|
(6.0 |
) |
|
|
22.0 |
|
Loss before benefit from (provision for) income taxes |
|
|
(77.5 |
) |
|
|
(83.8 |
) |
|
|
(73.2 |
) |
|
|
(58.8 |
) |
Benefit from (provision for) income taxes |
|
|
10.7 |
|
|
|
19.7 |
|
|
|
(4.2 |
) |
|
|
13.3 |
|
Net loss |
|
|
(66.8 |
) |
|
|
(64.1 |
) |
|
|
(77.4 |
) |
|
|
(45.5 |
) |
Net loss (income) attributable to noncontrolling interests |
|
|
0.2 |
|
|
|
(17.3 |
) |
|
|
0.4 |
|
|
|
(21.4 |
) |
Preferred dividends |
|
|
(10.8 |
) |
|
|
(10.8 |
) |
|
|
(32.6 |
) |
|
|
(27.1 |
) |
Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders |
|
$ |
(77.4 |
) |
|
$ |
(92.2 |
) |
|
$ |
(109.6 |
) |
|
$ |
(94.0 |
) |
Basic loss per share |
|
|
|
|
|
|
|
|
||||||||
Loss per share |
|
$ |
(0.56 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.79 |
) |
|
$ |
(0.67 |
) |
Weighted average shares outstanding |
|
|
137,413,758 |
|
|
|
139,391,316 |
|
|
|
137,896,626 |
|
|
|
138,914,964 |
|
Diluted loss per share |
|
|
|
|
|
|
|
|
||||||||
Loss per share |
|
$ |
(0.56 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.79 |
) |
|
$ |
(0.67 |
) |
Weighted average shares outstanding |
|
|
137,413,758 |
|
|
|
139,391,316 |
|
|
|
137,896,626 |
|
|
|
138,914,964 |
|
Dividends declared per common share |
|
$ |
0.12 |
|
|
$ |
0.24 |
|
|
$ |
0.48 |
|
|
$ |
0.72 |
|
Kennedy-Wilson Holdings, Inc. Adjusted EBITDA (Unaudited) (Dollars in millions) |
||||||||||||||||
The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted EBITDA, using Kennedy Wilson’s pro-rata share amounts for each adjustment item. |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders |
|
$ |
(77.4 |
) |
|
$ |
(92.2 |
) |
|
$ |
(109.6 |
) |
|
$ |
(94.0 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Add back (Kennedy Wilson's Share)(1): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
100.5 |
|
|
|
89.4 |
|
|
|
292.2 |
|
|
|
259.6 |
|
Loss on early extinguishment of debt |
|
|
0.3 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
1.6 |
|
Depreciation and amortization |
|
|
36.6 |
|
|
|
38.2 |
|
|
|
111.3 |
|
|
|
116.9 |
|
(Benefit from) provision for income taxes |
|
|
(10.5 |
) |
|
|
(20.3 |
) |
|
|
4.6 |
|
|
|
(13.7 |
) |
Preferred dividends |
|
|
10.8 |
|
|
|
10.8 |
|
|
|
32.6 |
|
|
|
27.1 |
|
Share-based compensation |
|
|
6.1 |
|
|
|
7.3 |
|
|
|
17.3 |
|
|
|
21.7 |
|
Adjusted EBITDA |
|
$ |
66.4 |
|
|
$ |
33.2 |
|
|
$ |
348.9 |
|
|
$ |
319.2 |
|
(1) See Appendix for reconciliation of Kennedy Wilson's Share amounts. |
Adjusted Net Income (Unaudited) (Dollars in millions, except share data) |
||||||||||||||||
The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted Net Income, using Kennedy Wilson’s pro-rata share amounts for each adjustment item. |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders |
|
$ |
(77.4 |
) |
|
$ |
(92.2 |
) |
|
$ |
(109.6 |
) |
|
$ |
(94.0 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Add back (Kennedy Wilson's Share)(1): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
36.6 |
|
|
|
38.2 |
|
|
|
111.3 |
|
|
|
116.9 |
|
Share-based compensation |
|
|
6.1 |
|
|
|
7.3 |
|
|
|
17.3 |
|
|
|
21.7 |
|
Adjusted Net (Loss) Income |
|
$ |
(34.7 |
) |
|
$ |
(46.7 |
) |
|
$ |
19.0 |
|
|
$ |
44.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for diluted |
|
|
137,413,758 |
|
|
|
139,391,316 |
|
|
|
137,896,626 |
|
|
|
138,914,964 |
|
(1) See Appendix for reconciliation of Kennedy Wilson's Share amounts. |
Forward-Looking Statements
Statements made by us in this report and in other reports and statements released by us that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are necessarily estimates reflecting the judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future operating results. Disclosures that use words such as "believe," "anticipate," "estimate," "intend," "may," "could," "plan," "expect," "project" or the negative of these, as well as similar expressions, are intended to identify forward-looking statements. These statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievement, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties may include the factors and the risks and uncertainties described elsewhere in this report and other filings with the Securities and Exchange Commission (the "SEC"), including the Item 1A. "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023, as amended by our subsequent filings with the SEC. Any such forward-looking statements, whether made in this report or elsewhere, should be considered in the context of the various disclosures made by us about our businesses including, without limitation, the risk factors discussed in our filings with the SEC. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise.
Common Definitions
-
“KWH,” “KW,” “Kennedy Wilson,” the “Company,” “we,” “our,” or “us” refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries.
-
“Adjusted EBITDA” represents net (loss) income before interest expense, loss (gain) on early extinguishment of debt, our share of interest expense included in unconsolidated investments, depreciation and amortization, our share of depreciation and amortization included in unconsolidated investments, preferred dividends, provision for (benefit from) income taxes, our share of taxes included in unconsolidated investments, share-based compensation expense for the Company, and EBITDA attributable to noncontrolling interests.
Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com. Our management uses Adjusted EBITDA to analyze our business because it adjusts net income for items we believe do not accurately reflect the nature of our business going forward or that relate to non-cash compensation expense or noncontrolling interests. Such items may vary for different companies for reasons unrelated to overall operating performance. Additionally, we believe Adjusted EBITDA is useful to investors to assist them in getting a more accurate picture of our results from operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when analyzing our operating performance, readers should use Adjusted EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not remove all non-cash items or consider certain cash requirements such as tax and debt service payments. The amount shown for Adjusted EBITDA also differs from the amount calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.
-
"Adjusted Fees" refers to Kennedy Wilson’s gross investment management and property services fees adjusted to include Kennedy Wilson's share of fees eliminated in consolidation, and performance fees included in unconsolidated investments. Our management uses Adjusted Fees to analyze our investment management and business because the measure removes required eliminations under GAAP for properties in which the Company provides services but also has an ownership interest. These eliminations understate the economic value of the investment management and property services fees and makes the Company comparable to other real estate companies that provide investment management but do not have an ownership interest in the properties they manage. Our management believes that adjusting GAAP fees to reflect these amounts eliminated in consolidation presents a more holistic measure of the scope of our investment management and real estate services business.
-
"Adjusted Net Income" represents net income (loss) before depreciation and amortization, Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments, share-based compensation, and excluding net income attributable to noncontrolling interests, before depreciation and amortization. Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com.
-
"Baseline EBITDA" is a non-GAAP measure representing net (loss) income less total income from unconsolidated investments, gain (loss) on sale of real estate, net, other income (loss) and non-controlling interest, plus share-based compensation, carried interest compensation, depreciation and amortization, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes, NOI from unconsolidated investments (at KW’s share) and fees eliminated in consolidation.
-
"Cap rate" represents the net operating income of an investment for the year preceding its acquisition or disposition, as applicable, divided by the purchase or sale price, as applicable. Capitalization ("Cap") rates discussed in this report only include data from income-producing properties. The Company calculates cap rates based on information that is supplied to it during the acquisition diligence process. This information is not audited or reviewed by independent accountants and may be presented in a manner that is different from similar information included in the Company's financial statements prepared in accordance with GAAP. In addition, cap rates represent historical performance and are not a guarantee of future net operating income ("NOI"). Properties for which a cap rate is discussed may not continue to perform at that cap rate.
-
"Carried interests" refers to amounts that are allocated to the Company under Funds and the Co-Investment investments based on the cumulative performance of such venture and are subject to preferred return thresholds of the partners of such venture. In the case of Funds, carried interests represent an allocation relating to the performance of investment management services, whereas in the case of a Co-Investment, carried interests represent returns for the performance of the underlying investments in the Co-Investment investments structures subject to collaborative decision-making.
-
"Carried interests compensation" refers to any carried interests earned by certain commingled funds and separate account investments to be allocated to certain non-NEO employees of the Company, as approved by the compensation committee of the Company’s board of directors.
-
"Equity partners" refers to non-wholly-owned subsidiaries that we consolidate in our financial statements under
U.S. GAAP and third-party equity providers.
-
"Estimated Annual NOI" is a property-level non-GAAP measure representing the estimated annual net operating income from each property as of the date shown, inclusive of rent abatements (if applicable). The calculation excludes depreciation and amortization expense, and does not capture the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements, and leasing commissions necessary to maintain the operating performance of our properties. For assets wholly-owned and fully occupied by KW, the Company provides an estimated NOI for valuation purposes of
, which includes an assumption for applicable market rents. Any of the enumerated items above could have a material effect on the performance of our properties. Also, where specifically noted, for properties purchased in 2024, the NOI represents estimated Year 1 NOI from our original underwriting. Estimated year 1 NOI for properties purchased in 2024 may not be indicative of the actual results for those properties. Estimated annual NOI is not an indicator of the actual annual net operating income that the Company will or expects to realize in any period. Please also see the definition of "Net operating income" below. Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com.$4.3 million
-
"Fee-Bearing Capital" represents total third-party committed or invested capital that we manage in our joint-ventures, commingled funds, and debt platform that entitle us to earn fees, including without limitation, asset management fees, construction management fees, acquisition and disposition fees and/or promoted interest, if applicable.
-
"Gross Asset Value" refers to the gross carrying value of assets, before debt, depreciation and amortization, and net of noncontrolling interests.
-
"Net operating income" or "NOI" is a non-GAAP measure representing the income produced by a property calculated by deducting certain property expenses from property revenues. Our management uses net operating income to assess and compare the performance of our properties and to estimate their fair value. Net operating income does not include the effects of depreciation or amortization or gains or losses from the sale of properties because the effects of those items do not necessarily represent the actual change in the value of our properties resulting from our value-add initiatives or changing market conditions. Our management believes that net operating income reflects the core revenues and costs of operating our properties and is better suited to evaluate trends in occupancy and lease rates. Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com.
-
"Noncontrolling interests" represents the portion of equity ownership in a consolidated subsidiary not attributable to Kennedy Wilson.
-
"Principal co-investments" consists of the Company’s share of income or loss earned on investments in which the Company can exercise significant influence but does not have control. Income from unconsolidated investments includes income from ordinary course operations of the underlying investment, gains on sale, fair value gains and losses.
-
"Pro-Rata" represents Kennedy Wilson's share calculated by using our proportionate economic ownership of each asset in our portfolio. Please also refer to the pro-rata financial data in our supplemental financial information.
-
"Property NOI" or "Property-level NOI" is a non-GAAP measure calculated by deducting the Company's Pro-Rata share of rental and hotel property expenses from the Company's Pro-Rata rental, hotel and loans and other revenues. Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com.
-
"Real Estate Assets under Management" ("AUM") generally refers to the properties and other assets with respect to which the Company provides (or participates in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, and investments in joint ventures. AUM is principally intended to reflect the extent of the Company's presence in the real estate market, not the basis for determining management fees. AUM consists of the total estimated fair value of the real estate properties, total loan commitments made through out debt investment platform, inclusive of both currently outstanding loan amounts and contractual future fundings, and other real estate-related assets either owned by third parties, wholly-owned by the Company or held by joint ventures and other entities in which its sponsored funds or investment vehicles and client accounts have invested. The estimated value of development properties is included at estimated completion cost. The accuracy of estimating fair value for investments cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets and may not be realized in a current sale or immediate settlement of the asset or liability (particularly given the ongoing macroeconomic conditions such as, but not limited to recent adverse developments affecting regional banks and other financial institutions, and ongoing military conflicts around the world and uncertainty with respect to fluctuating interest rates continue to fuel recessionary fears and create volatility in Kennedy Wilson's business results and operations). Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had an impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts. All valuations of real estate involve subjective judgments.
-
"Same property" refers to stabilized consolidated and unconsolidated properties in which Kennedy Wilson has an ownership interest during the entire span of both periods being compared. This analysis excludes properties that during the comparable periods (i) were acquired, (ii) were sold, (iii) are either under development or undergoing lease up or major repositioning as part of the Company’s asset management strategy, (iv) were investments in which the Company holds a minority ownership position, and (v) certain non-recurring income and expenses. The analysis only includes Office, Multifamily and Hotel properties, where applicable. To derive an appropriate measure of operating performance across the comparable periods, the Company removes the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the
U.S. dollar, for both periods. Amounts are calculated using Kennedy Wilson’s ownership share in the Company’s consolidated and unconsolidated properties. Management evaluates the performance of the operating properties the Company owns and manages using a “same property” analysis because the population of properties in this analysis is consistent from period to period, which allows management and investors to analyze (i) the Company’s ongoing business operations and (ii) the revenues and expenses directly associated with owning and operating the Company’s properties and the impact to operations from trends in occupancy rates, rental rates and operating costs. Same property metrics are widely recognized measures in the real estate industry, however, other publicly-traded real estate companies may not calculate and report same property results in the same manner as the Company. Please also see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Certain Non-GAAP Measures and Reconciliations” for a reconciliation of “same property” results to the most comparable measure reported under GAAP.
Note about Non-GAAP and certain other financial information included in this presentation
In addition to the results reported in accordance with
KW-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106098062/en/
Investor Relations
Daven Bhavsar, CFA
(310) 887-3431
dbhavsar@kennedywilson.com
Corporate Headquarters
151 S. El Camino Drive
www.kennedywilson.com
Source: Kennedy-Wilson Holdings, Inc.
FAQ
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