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Kennedy-Wilson Holdings, Inc. (NYSE:KW), a global real estate investment company with a market capitalization of $888 million, has made a significant move in its strategic asset recycling plan. On Monday, the company completed a recapitalization transaction involving a hotel property owned through a joint venture. This transaction resulted in Kennedy-Wilson receiving $125 million in cash and a reduction of its ownership interest in the joint venture from 50% to 35%. According to InvestingPro data, the company offers a substantial 7.48% dividend yield, having maintained dividend payments for 15 consecutive years.
The joint venture secured an additional $150 million on its existing mortgage, including a $25 million reserve. The initial proceeds from this increase were used to redeem part of Kennedy-Wilson’s ownership interests. With this transaction, the company anticipates generating over $400 million in cash from its asset recycling program for the remainder of 2025. This strategic move comes as the stock has experienced a significant 39.1% decline over the past six months, though InvestingPro analysis shows analysts expect the company to return to profitability this year.
Kennedy-Wilson plans to use the $125 million from the recapitalization to pay down its corporate line of credit. After this payment, approximately $151 million will remain outstanding on its $550 million revolving line of credit. The company intends to use additional proceeds from its recycling strategy to further reduce its unsecured debt, which includes repaying the Kennedy Wilson Europe Unsecured Notes due in November 2025 and other amounts owed under its corporate line of credit.
The information presented in this article is based on the latest 8-K filing by Kennedy-Wilson Holdings with the Securities and Exchange Commission.
In other recent news, Kennedy Wilson Holdings Inc. announced a larger-than-anticipated loss for the first quarter of 2025, with earnings per share (EPS) at a negative $0.30, missing the forecasted loss of $0.19. Despite the earnings miss, the company’s revenue surpassed expectations, reaching $128.3 million compared to the projected $97.46 million. The firm also reported a 5% year-over-year increase in Baseline EBITDA, amounting to $108 million. Kennedy Wilson’s assets under management have grown by 26% over the past two years, totaling $29 billion. Looking ahead, the company plans to target asset sales between $400 million and $450 million in 2025, with an expected 20-25% annual growth in fee revenue. The company is focusing on expanding its credit solutions and rental housing sectors, supported by a Q2 capital deployment pipeline of $2.5 billion. In terms of strategic initiatives, Kennedy Wilson is also working on reducing its unsecured debt and executing its non-core asset sale plan.
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