Kennedy-Wilson Holdings Inc (KW) Q1 2025 earnings call highlights: strategic growth in the middle …

Appearance date: May 08, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Kennedy-Wilson Holdings Inc (NYSE: KW) was used or committed around $ 1 billion in new capital in the first quarter, mainly of origin in your credit platform.

• In the past two years, the assets managed have risen by 26% to 29 billion US dollars and have produced an estimated annual NOI and fees of around 575 million dollars.

• The rental apartment sector, a core focus for KW, corresponds to 66% of its managed assets and is expected to grow to over 80% in the next three years.

• The fees for investment management rose by 17%in the first quarter, which reflects the strong performance in your credit platform and the continued growth of the stock platforms.

• KW has a strong activity pipeline that focuses on rental apartments. A committed pipeline of a total of 2.5 billion US dollars in credit orientations and real estate capital acquisitions.

• The GAAP EPS for the first quarter led to a loss of $ 0.30 per share compared to the income of $ 0.19 per share in the first quarter of 2024.

• The spread of loan promotion has caused a certain pressure after downward pressure, with an average of 30 to 40 basis points due to increased competition.

• The company focuses on reducing unsecured debts, which can restrict the availability of cash for share buyback backs.

• The advance payments for loans were higher than typical, including a significant payment of 200 million US dollars for an office loan that was somewhat common.

• About 15% of tenants in the affordable housing location portfolio have a kind of HUD support, which can be influenced by changes in government policy.

Q: Can you explain your trust in the annual growth of fee growth of 20 to 25% this year? A: (Unidiendified_5) The growth target refers to fees rather than to fees. We have achieved growth of 17% of Q1 to the first quarter, and based on our pipeline and future financial resources, we are confident that we can achieve the fee growth target. Timing differences in payments and financial resources can influence the fee-bearing capital, but we are familiar with our forecasts based on recurring investment fees and originating fees.

Q: How do you see the partner capital costs and the ability to continue to award lending if the competition increases? A: (Unidiendified_5) We have a healthy pipeline and saw some offers with lower spreads than a year ago. The competition has increased from life insurance companies, banks and private lenders. However, our strong relationships and repetitions with sponsors and borrowers give us flexibility. We have easily adapted the pricing and remain competitive, especially since some lenders exhaust their allocations in the middle of the year.