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Mar 31
Kennedy-Wilson Q1 2025 Earnings Report
Kennedy-Wilson reported its first quarter 2025 results, showing a decrease in net income but growth in Adjusted EBITDA and investment management fees.
Key Takeaways
Kennedy-Wilson Holdings, Inc. reported a net loss of $40.8 million for Q1 2025, a decrease from a net income of $26.9 million in Q1 2024. However, Adjusted EBITDA increased by 5% to $98.2 million, driven by higher property NOI and a 17% increase in investment management fees to $25 million. The company deployed or committed approximately $1 billion of capital in Q1 and expects to generate over $400 million from non-core asset sales in the remainder of 2025.
Net loss attributable to common shareholders was $40.8 million, compared to net income of $26.9 million in Q1 2024.
Adjusted EBITDA increased by 5% to $98.2 million, up from $203.2 million in Q1 2024.
Investment Management Fees grew by 17% to $25 million, driven by increased recurring base management fees and $724 million in loan originations.
The company deployed or committed approximately $1 billion of capital in Q1 2025 and expects over $400 million from non-core asset sales in the remainder of 2025.
Kennedy-Wilson
Kennedy-Wilson
Kennedy-Wilson Revenue by Segment
Kennedy-Wilson Revenue by Geographic Location
Revenue by Segment
Rental Revenue
CapyFin.comHotel Revenue
CapyFin.comInvestment Management Fees Revenue
CapyFin.comLoan Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.comIreland Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Kennedy Wilson anticipates continued capital deployment, strategic asset sales, and balance sheet strengthening in the coming quarters.
Positive Outlook
- Strong demand for rental housing properties, leading to 4.3% same-property multifamily net operating income growth.
- Deployment or commitment of approximately $1 billion of capital in Q1 2025.
- Completion or in-process closing of $2.4 billion in new construction loan originations, accelerating capital deployment.
- Expectation to generate over $400 million in proceeds from non-core asset sales during the remainder of 2025.
- Proceeds from asset sales will be allocated towards strengthening the balance sheet through unsecured debt reduction.
Challenges Ahead
- No assurances that asset sales and recapitalizations will be completed when expected or at all.
- No assurances that new originations in the pipeline for Q2 2025 will be completed.
- The accuracy of estimating fair value for investments cannot be determined with precision and may not be realized in a current sale or immediate settlement.
- Ongoing macroeconomic conditions, military conflicts, and fluctuating interest rates continue to fuel recessionary fears and create volatility.
- Lack of liquidity in capital markets and limited transactions have impacted fair value measurement inputs.