Kennedy-Wilson Holdings, Inc. has reported its financial results for the first quarter of 2024, showing significant improvements compared to the same period in 2023.
Under GAAP, the company reported a net income to common shareholders of $26.9 million for Q1-2024, a notable improvement from the loss of $40.8 million in Q1-2023.
When looking at non-GAAP metrics, the adjusted EBITDA for Q1-2024 was $203.2 million, a substantial increase from $90.9 million in Q1-2023. Adjusted net income also showed remarkable growth, reaching $70.5 million in Q1-2024, compared to $5.3 million in the same period last year.
The investment management business saw a 94% growth in fee income, reaching $21 million in Q1-2024, driven by higher levels of fee-bearing capital and $719 million of new originations from the company's debt investment platform.
The debt investment platform grew by 10% to $7.3 billion in Q1-2024, with significant investment activity, including originating $719 million in new construction loans and completing $210 million in additional fundings on existing loans.
In terms of real estate investment activity, Kennedy-Wilson completed $94 million in gross acquisitions and $357 million in gross dispositions. The company also completed several large multifamily construction projects on schedule and on budget, which are expected to contribute significantly to future net operating income.
The company's estimated annual NOI was reported at $464 million, with fee-bearing capital amounting to $8.6 billion in Q1-2024. Additionally, the development and lease-up portfolio are expected to add $89-94 million in estimated annual NOI.
The balance sheet and liquidity position of the company also showed strength, with a total of $542 million in cash and cash equivalents as of March 31, 2024, and a dividend of $0.12 per share declared for common shareholders.
Kennedy-Wilson Holdings, Inc. has also engaged in share repurchases, having repurchased 1.1 million shares in Q1-2024 at a weighted average price of $8.76.
The market has reacted to these announcements by moving the company's shares 0.8% to a price of $8.95. Check out the company's full 8-K submission here.
