Profit Plunges 77% at Kennedy-Wilson

Kennedy-Wilson Inc. on Wednesday reported a 77% drop in net income for the first quarter to $385,000, or 5 cents a share, from $1.68 million, or 17 cents, a year ago.

The Beverly Hills-based real estate services and investment company said revenue fell 54% to $17.7 million from the year-earlier period, when sales of residential real estate were unusually high.

Property management and leasing fees declined 3.5% to $8.2 million and commission revenue slipped 2.8% to $3.5 million.

Expenses were down 53% to $17.1 million, in part because of aggressive cost-reduction initiatives that reduced compensation and general and administrative expenses by $3.4 million from the same quarter last year.

Total expenses also decreased due to the reduced costs related to the sales of residential real estate.

Founded in 1977, the firm was known for many years primarily for its residential and apartment auction business and a real estate marketing operation.

The company went public in 1992 and has steadily expanded its services, including brokerage, asset management, property management, development and investment sales and acquisition.

The firm also acquires property for its own portfolio and in partnership with institutional investors.

In recent years the firm has expanded operations in Japan by acquiring numerous buildings, primarily in the Tokyo area.

Kennedy-Wilson shares dropped 6 cents to $3.80 on Nasdaq.