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Dec 31, 2019
Kennedy-Wilson Q4 2019 Earnings Report
Kennedy-Wilson reported record quarterly and annual GAAP EPS, adjusted EBITDA, and adjusted net income.
Key Takeaways
Kennedy Wilson reported strong Q4 and full year 2019 results, with record quarterly and annual GAAP EPS, Adjusted EBITDA, and Adjusted Net Income. The company's purchasing power is at its highest level in history, which will enable them to continue growing their property NOI and investment management fee revenue.
Same property NOI increased by 4.9% in Q4 2019.
Fee-bearing capital grew by 39% to $3.0 billion in 2019, including a net increase of $0.5 billion in Q4 2019.
In-place estimated annual NOI grows to $421 million; targeting an additional $105 million from development and leasing by 2023.
The Company's share of total gains from the sale of real estate in Q4 2019 was $182 million, an increase of $94 million from Q4 2018.
Kennedy-Wilson
Kennedy-Wilson
Kennedy-Wilson Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comHotel Revenue
CapyFin.comInvestment Management Fees Revenue
CapyFin.com Forward Guidance
Kennedy Wilson is under contract to purchase one fund investment in the Western U.S. for $110 million and anticipates financing the acquisition with a combination of debt financing, balance sheet cash and partner equity. In addition, Kennedy Wilson and its equity partners are under separate contracts to dispose of one residential project and one minority-owned 437-unit multifamily property in the Western U.S., one loan investment in Ireland and eight wholly-owned retail properties in the UK at an aggregate sales price of approximately $382 million.
Positive Outlook
- The Company sold one wholly-owned 294-unit multifamily property and five wholly-owned commercial properties totaling 0.3 million square feet in the UK and completed the partial sale of two multifamily properties totaling 468 units in Dublin for approximately $239 million.
- The Company along with its equity partners acquired a loan investment in the Western U.S. and a fund investment in the UK at an aggregate sales price of $107 million.
- The Company along with its equity partners are under contract to purchase one fund investment in the Western U.S. for $110 million.
- Financing the acquisition with a combination of debt financing, balance sheet cash and partner equity.
- We currently expect to receive a total of approximately $82 million in proceeds from these transactions.
Challenges Ahead
- There can be no assurance that we will complete the potential acquisition under contract.
- The amount of our equity investment in the acquisition has not yet been determined, but we currently expect our equity investment in the acquisition to be $5 million.
- There can be no assurance that we will complete the potential dispositions under contract.
Revenue & Expenses
Visualization of income flow from segment revenue to net income