Kennedy-Wilson Q1 2023 Earnings Report
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.
Kennedy-Wilson
Kennedy-Wilson
Kennedy-Wilson 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
- Central banks raising interest rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income