NYSE$KW

Kennedy-Wilson Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results, demonstrating growth in recurring property NOI and investment management platform, offset by a lower mark to market in fair value portfolio.

Kennedy Wilson reported Q1 2023 results, with growth in recurring property NOI and its investment management platform. These gains were offset by a lower mark to market in the company's fair value portfolio. The company is nearing completion on a significant portion of its $3 billion development and lease-up portfolio, which is expected to meaningfully grow recurring cash flow.

  • Adjusted EBITDA of $91 million (vs. $160 million in Q1-22) driven by higher levels of recurring NOI offset by changes in fair value.
  • KW's share of property NOI, loan income and fees totaled $127 million in Q1-23, an increase of $5 million from Q1-22.
  • Estimated Annual NOI Totals $496 million, an Increase of 8% from Q1-22 and 1% YTD.
  • Fee-Bearing Capital Grows to $6.0 billion, an Increase of 13% from Q1-22 and 2% YTD.

Headline financials

Total Revenue

$132M

Previous: $125M+6.0%
EPS (adj)

$0.04

Previous: $0.24-83.3%
Adjusted EBITDA

$90.9M

No prior period
Fee-Bearing Capital

$6B

Previous: $5.3B+13.2%
Capital Expenditures

-$39.2M

Previous: -$26.6M-47.4%
Free Cash Flow

-$67.9M

Previous: $13.4M-606.7%
Net Income

-$28.7M

Previous: $40M-171.8%
Operating Income

-$49.6M

Previous: -$53M+6.4%
Gross Profit

$87.7M

Previous: $84.7M+3.5%
Cash & Equivalents

$349M

Previous: $462M-24.4%
Total Assets

$8.15B

Previous: $8.07B+1.0%
Stock-Based Comp

$7.1M

Previous: $7.1M+0.0%

Revenue & EPS history

Kennedy-Wilson · Revenue · Quarterly

$132M

Q1 2023+6%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Kennedy-Wilson · $117M total across 2 segments · Q1 2023

  • Rental
    $107M+2.3%
  • Hotel
    $10.6M+63.1%

Forward guidance

Kennedy Wilson expects significant growth from its development and lease-up portfolio.

Tailwinds

  • The development and lease-up portfolio is expected to add $97 million of Estimated Annual NOI.
  • 70% of the development and lease-up portfolio is expected to stabilize by YE-24.
  • The Company expects to fund its share of remaining development costs primarily with cash from non-core asset sales and proceeds from property-level financings.
  • Kona Village Resort is expected to open on July 1, 2023.
  • Completed $113 million in new loan originations and fundings, resulting in 5% growth from YE-22.

Headwinds

  • Changes in fair value
  • Foreign currency fluctuations
  • Macroeconomic conditions
  • High inflation
  • Central banks raising interest rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.0%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-0.0%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+13.1%

Q4 2015

Best reaction

-8.8%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+0.9%+0.8%
Q4 2025-0.1%+0.6%+0.7%
Q3 2025-2.3%-1.0%-1.0%
Q1 2025-7.0%-2.9%-0.8%
Q4 2024+4.4%+7.2%-6.1%
Q3 2024+1.4%+5.4%+1.9%
Q2 2024+3.6%+1.8%+9.4%
Q1 2024+11.6%+18.4%+11.0%
Q4 2023-6.4%-16.9%-18.8%
Q3 2023-4.0%-4.2%-8.6%
Q2 2023+0.1%+1.9%-2.3%
Q1 2023-8.8%-10.0%-0.2%
Q4 2022-3.1%-4.8%-10.8%
Q3 2022-5.6%-2.8%+1.4%
Q2 2022-3.6%+0.1%-11.1%
Q1 2022-2.0%-8.0%-7.0%
Q4 2021-2.1%-3.2%+6.6%
Q3 2021+3.6%+5.6%-1.2%
Q2 2021+3.2%+3.5%+9.9%
Q1 2021-3.2%-3.8%-3.7%
Q4 2020+2.4%+2.0%+13.3%
Q3 2020+2.6%+6.0%+18.6%
Q2 2020-4.4%+0.7%-2.1%
Q1 2020+5.5%+3.1%+25.3%
Q4 2019-2.8%-1.9%-35.9%
Q3 2019+0.5%+1.8%-1.2%
Q2 2019+4.3%-1.1%-2.4%
Q1 2019+1.9%+4.5%-4.6%
Q4 2018-0.5%+0.6%+2.4%
Q3 2018+5.4%+2.8%+4.1%
Q2 2018+4.1%+4.3%+2.6%
Q1 2018-2.1%-0.3%+7.1%
Q4 2017+0.6%-0.9%+3.3%
Q3 2017-1.5%-0.8%-1.5%
Q2 2017-0.8%-1.8%-3.5%
Q1 2017-2.2%-1.7%-2.5%
Q4 2016+3.1%+3.8%-0.2%
Q3 2016+5.1%+7.1%-0.2%
Q2 2016+1.3%+1.8%+7.0%
Q1 2016-3.0%
Q4 2015+13.1%
Q3 2015+4.7%
Q2 2015-3.8%
Q1 2015-2.2%
Q4 2014+1.5%
Q3 2014-1.5%
Q2 2014+6.1%
Q1 2014+5.0%
Q4 2013-0.3%
Q3 2013+1.7%
Q2 2013+1.2%
Q1 2013+3.3%
Q4 2012-4.1%
Q3 2012+0.3%
Q2 2012-0.3%
Q1 2011+0.0%
Q1 2012+1.0%
Q4 2009-5.0%
Q4 2011-5.0%
Q3 2010-7.4%
Q3 2011-7.4%
Q2 2011-2.2%
Q2 2010-2.2%
Q4 2010-1.2%
Q1 2010+2.9%

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