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Mar 31, 2023
Kennedy-Wilson Q1 2023 Earnings Report
Reported first quarter results, demonstrating growth in recurring property NOI and investment management platform, offset by a lower mark to market in fair value portfolio.
Key Takeaways
Kennedy Wilson reported Q1 2023 results, with growth in recurring property NOI and its investment management platform. These gains were offset by a lower mark to market in the company's fair value portfolio. The company is nearing completion on a significant portion of its $3 billion development and lease-up portfolio, which is expected to meaningfully grow recurring cash flow.
Adjusted EBITDA of $91 million (vs. $160 million in Q1-22) driven by higher levels of recurring NOI offset by changes in fair value.
KW's share of property NOI, loan income and fees totaled $127 million in Q1-23, an increase of $5 million from Q1-22.
Estimated Annual NOI Totals $496 million, an Increase of 8% from Q1-22 and 1% YTD.
Fee-Bearing Capital Grows to $6.0 billion, an Increase of 13% from Q1-22 and 2% YTD.
Revenue by Segment
Forward Guidance
Kennedy Wilson expects significant growth from its development and lease-up portfolio.
Positive Outlook
- The development and lease-up portfolio is expected to add $97 million of Estimated Annual NOI.
- 70% of the development and lease-up portfolio is expected to stabilize by YE-24.
- The Company expects to fund its share of remaining development costs primarily with cash from non-core asset sales and proceeds from property-level financings.
- Kona Village Resort is expected to open on July 1, 2023.
- Completed $113 million in new loan originations and fundings, resulting in 5% growth from YE-22.
Challenges Ahead
- Changes in fair value
- Foreign currency fluctuations
- Macroeconomic conditions
- High inflation
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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