Kennedy Wilson Europe Real Estate Limited has released its audited consolidated financial statements for the year ended December 31, 2024. The company's gross revenues decreased from £165.6 million in 2023 to £113.0 million in 2024, primarily due to the sale of The Shelbourne Hotel and other assets. Rental income also saw a decline from £118.1 million in 2023 to £105.6 million in 2024. The net change in fair value of investment and development property resulted in a loss of £16.0 million in 2024, leading to a loss for the year after taxation of £61.8 million. The cash balance decreased to £49.8 million at the end of 2024 from £93.1 million in 2023. Furthermore, the company made loan repayments of £236.1 million during the year, higher than the £162.5 million repaid in 2023, maintaining a strong financial position.
The Directors of Kennedy Wilson Europe Real Estate Limited highlighted the significant transactions during the year, including the sales of Moraleja Green Shopping Centre, Norfolk House, and The Shelbourne Hotel. No distributions were declared or paid during the year ended December 31, 2024, compared to £Nil in 2023.
The independent auditor, KPMG, provided an unqualified opinion, stating that the consolidated financial statements give a true and fair view of the company's financial position and its financial performance for the year ended December 31, 2024. The auditor identified the valuation of the Group’s investment and development properties as a key audit matter, emphasizing the significance of the estimates and judgments involved in the valuation process.
The company's financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. The management and the directors are responsible for the preparation and fair presentation of the consolidated financial statements, as well as assessing the Group’s ability to continue as a going concern.
The Group’s investment and development property portfolio amounted to £1,183 million at the end of 2023, representing 60% of the Group’s total assets, while the Group held an indirect interest in nine equity-accounted investees valued at £235.6 million at the end of 2023.
The market has reacted to these announcements by moving the company's shares 1.2% to a price of $6.59. Check out the company's full 8-K submission here.
