Yahoo Finance

• Adjusted EBITDA: Increased from $190 million in 2023 to $540 million in 2024.

• Investment Management Fees: Grew by 60% year-over-year to approximately $100 million in 2024.

• New Loan Originations: Completed a record $1.4 billion in Q4 and $3.5 billion for the year.

• Asset Sales: Generated $475 million in cash and $200 million in gains in 2024.

• GAAP EPS: $0.24 per share for Q4 compared to a loss of $1.78 in Q4 2023.

• Investment Management Revenue: Increased by 83% to $30 million in Q4.

• Baseline EBITDA: Totaled $98 million in Q4, increased by 4% year-to-date to $407 million.

• Estimated Annual NOI: $467 million from real estate equity and credit investments.

• Same-Property NOI Growth: 5.6% in Q4.

• Occupancy Rate: Apartment portfolio ended the quarter with 95% occupancy.

• Unsecured Debt Repayment: $262 million repaid in Q4, including $184 million of KWE bonds.

• Consolidated Cash: Ended the quarter with $218 million.

• Fee-Bearing Capital: Reached a record $8.8 billion.

• Interest Rate Hedging: Produced cash benefits of $8 million in Q4 and $41 million in 2024.

• Apartment Portfolio NOI: $300 million with an additional $16 million expected from development.

• Mountain West NOI Growth: 7.3% in Q4.

• Pacific Northwest NOI Growth: 6.6% in Q4.

• Vintage Housing NOI Growth: 10.5% in Q4.

• Irish Apartment Portfolio Occupancy: 97% at the end of the quarter.

• Office Portfolio NOI Growth: 2% same-property growth in 2024.

• European Industrial Platform: 98% occupied with 23% rent increase in Q4.

• Warning! GuruFocus has detected 5 Warning Signs with KW.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kennedy-Wilson Holdings Inc (NYSE:KW) reported a significant increase in adjusted EBITDA, nearly tripling from $190 million in 2023 to $540 million in 2024.

• Investment Management fees grew by 60% year-over-year, reaching approximately $100 million in 2024, driven by strong momentum in their credit platform.

• The company successfully completed a record $1.4 billion of new loan originations in Q4 and $3.5 billion for the year, focusing on high-quality market rate multifamily and student housing.

• Kennedy-Wilson Holdings Inc (NYSE:KW) achieved its $550 million asset sale target for 2024, generating $475 million in cash and $200 million in gains from asset sales.

• The company's apartment portfolio ended the quarter with 95% occupancy, and same-property NOI grew by 5.6% in Q4, indicating strong operational performance.

Negative Points

• Despite improvements, the company still faces the challenge of reducing its unsecured debt, with $310 million maturing in November 2025.

• The refinancing of Irish apartment portfolio debt will result in higher interest rates, moving from just under 3% to mid-4s, potentially impacting future cash flows.

• The company is exiting non-core markets like Italy and Spain, which may limit its geographic diversification.

• Kennedy-Wilson Holdings Inc (NYSE:KW) is still exposed to potential interest rate volatility, although 97% of its debt is fixed or hedged.

• The company faces ongoing challenges in the office sector, with a focus on exiting non-core office and retail assets, which could impact short-term revenue.