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Dec 31, 2024
Kennedy-Wilson Q4 2024 Earnings Report
Kennedy-Wilson reported its Q4 2024 earnings with significant improvements in net income and Adjusted EBITDA.
Key Takeaways
Kennedy-Wilson Holdings, Inc. reported a strong fourth quarter and full year 2024, with Q4 GAAP Net Income of $33.1 million compared to a loss in the prior year. Adjusted EBITDA also saw substantial growth, reaching $190.8 million. The company completed over $4 billion in capital deployment for the full year and generated $122 million in cash from asset sales in Q4.
GAAP Net Income (Loss) to Common Shareholders improved significantly to $33.1 million in Q4 2024 from a loss of $247.8 million in Q4 2023.
Adjusted EBITDA increased to $190.8 million in Q4 2024 from a loss of $129.4 million in Q4 2023, driven by realized gains on real estate sales and increased investment management fees.
Investment Management Fees grew by 83% in Q4 2024 to $30 million, primarily due to recurring base management fees and originations from the debt investment platform.
The company generated $122 million in cash from $615 million in gross asset sales in Q4 2024, with a 43% company share.
Kennedy-Wilson
Kennedy-Wilson
Kennedy-Wilson Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comInvestment Management Fees Revenue
CapyFin.comLoan Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Kennedy Wilson is focused on growing its rental housing and investment management business while reducing unsecured debt in 2025. The company has minimal equity commitments for current development projects in FY-25 and a strong pipeline for new originations in Q1-25.
Positive Outlook
- Global platform continues to gain momentum.
- Focused on growing rental housing business.
- Focused on growing investment management business.
- Minimal equity commitments related to current development projects in FY-25.
- Strong pipeline of over $1 billion in new originations for Q1-25, primarily multifamily or student-housing construction projects.
Challenges Ahead
- Uncertainties in estimating fair value for investments due to lack of liquidity in capital markets and limited transactions.
- Accuracy of estimated fair value for investments cannot be determined with precision.
- Macroeconomic conditions, including interest rate fluctuations, may impact business results.
- Potential impact of withholding taxes on cash repatriation from foreign subsidiaries.
- Covenant implications from KWE Notes may impact availability of funds at the corporate level.