Kennedy-Wilson reports $250 million in asset sales and debt reduction for Q2

Kennedy-Wilson Holdings, Inc. (NYSE:KW) reported Wednesday that, during the quarter ended June 30, it completed several asset sales and recapitalizations, generating approximately $250 million in cash proceeds. This figure exceeds the company’s previously announced target of $200 million for the quarter under its strategic asset recycling plan, according to a statement based on an SEC filing.

The company’s completed transactions included the sale of two office buildings in Dublin, Ireland, where Kennedy-Wilson held an average 81% ownership stake, the sale of a wholly owned office building in Italy, and the sale of a multifamily property in Richmond, California, where Kennedy-Wilson retained a 10% ownership interest and will continue to manage the property for customary fees.

Kennedy-Wilson stated that these sales and recapitalizations resulted in an estimated gain of $45 million to $50 million, not including non-cash adjustments unrelated to these transactions. Proceeds from the asset recycling plan were primarily used to reduce unsecured debt, with the company reporting a reduction of approximately $170 million on its corporate line of credit during the quarter. This debt reduction effort is particularly significant given the company’s high debt-to-equity ratio of 6.52, as reported by InvestingPro, which offers comprehensive financial analysis through its Pro Research Reports covering over 1,400 US stocks.

The company’s investment management platform acquired four multifamily properties in the Mountain West and Pacific Northwest for a combined purchase price of about $387 million, with Kennedy-Wilson investing $17 million and holding an average 12% ownership interest in these assets. Additionally, its UK single-family rental housing joint venture acquired two development sites for $102 million, representing 192 planned rental units, with Kennedy-Wilson holding a 10% stake.

During the same period, Kennedy-Wilson originated 13 construction loans totaling $1.2 billion in commitments, with the company’s share at 2.5%. The company earns management fees and carried interests as asset manager in these investment vehicles.

All information is based on a press release statement included in the company’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, Kennedy-Wilson Holdings, Inc. reported a larger-than-expected loss for the first quarter of 2025, with earnings per share at a negative $0.30, which was below the anticipated loss of $0.19. Despite this, the company’s revenue exceeded expectations, reaching $128.3 million compared to the forecasted $97.46 million. In a strategic move, Kennedy-Wilson completed a recapitalization transaction involving a hotel property, resulting in $125 million in cash and a reduction of its ownership interest in the joint venture from 50% to 35%. The joint venture also secured an additional $150 million on its existing mortgage, which includes a $25 million reserve. The company plans to use the proceeds to reduce its unsecured debt, including repaying the Kennedy Wilson Europe Unsecured Notes due in November 2025. Additionally, Kennedy-Wilson is targeting asset sales between $400 million and $450 million for 2025. These recent developments reflect the company’s ongoing efforts to manage its financial position and strategic asset recycling plan.

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