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Sep 30, 2024
Kennedy-Wilson Q3 2024 Earnings Report
Reported third quarter 2024 results, with investment management fees growing and progress made on key initiatives.
Key Takeaways
Kennedy Wilson reported a GAAP Net Loss to Common Shareholders of $77.4 million. However, the company saw growth in investment management fees and made progress on key initiatives such as asset stabilizations and non-core asset dispositions.
Estimated Annual NOI grew to $492 million, driven by asset stabilizations and partly offset by non-core asset dispositions.
Investment Management fees grew by 39% to $22 million, driven by higher Fee-Bearing Capital and new originations from the Debt Investment Platform.
The Company stabilized two California multifamily properties, adding $12 million in Estimated Annual NOI.
The Company completed $422 million in loan originations during Q3-24.
Kennedy-Wilson
Kennedy-Wilson
Kennedy-Wilson Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comLoan Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Kennedy Wilson expects continued growth in their investment management business and NOI.
Positive Outlook
- Near Term Stabilization: Expected to add $36 million in Estimated Annual NOI by YE-25 from the stabilization of the lease-up portfolio.
- Debt Platform Growth Since Q2-23: Completed $2.3 billion in new originations since June 30, 2023, with over $1 billion in new originations in process and expected to close in Q4-24.
- Line of Credit Renewal and Expansion: The Company's credit facility was expanded to $550 million in partnership with a ten-member banking syndicate. The new credit facility has a fully extended maturity of September 2028.
- In October, the Company announced the launch of a new UK single-family rental housing joint-venture with Canadian Pension Plan Investment Board targeting £1 billion in real estate.
- The Company announced a €175 million early redemption of its €475 million outstanding euro-denominated 3.25% notes due November 2025
Challenges Ahead
- Loss from unconsolidated investments for principal co-investments was $(3.9) million
- Loss from unconsolidated investments for carried interests was $(16.4) million
- Depreciation and amortization totalled $36.9 million
- Interest expense was $(66.9) million
- Other (loss) income was $(13.1) million
Revenue & Expenses
Visualization of income flow from segment revenue to net income