Kennedy-Wilson Holdings (KW) has reported 46.21 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $15.60 million, or $0.13 a share in the quarter, compared with $29 million, or $0.25 a share for the same period last year. On an adjusted basis, net profit for the quarter was $64.70 million, when compared with $67.70 million in the last year period.

Revenue during the quarter grew 8.48 percent to $180.40 million from $166.30 million in the previous year period.

Cost of revenue surged 32.08 percent or $17.10 million during the quarter to $70.40 million. Gross margin for the quarter contracted 697 basis points over the previous year period to 60.98 percent.

Total expenses were $127 million for the quarter, up 13.80 percent or $15.40 million from year-ago period. Operating margin for the quarter contracted 329 basis points over the previous year period to 29.60 percent.

Operating income for the quarter was $53.40 million, compared with $54.70 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $116.90 million compared with $121.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 838 basis points in the quarter to 64.80 percent from 73.18 percent in the last year period.

Revenue from real estate activities during the quarter increased 12.37 percent or $16.30 million to $148.10 million. Revenue from sale of real estate during the quarter was at $12.60 million.

Income from operating leases during the quarter rose 12.15 percent or $13.30 million to $122.80 million.

Income from management fees during the quarter plunged 43.05 percent or $9.60 million to $12.70 million.

Other income during the quarter was $3.40 million, down 44.26 percent or $2.70 million from year-ago period.

"During 2016 we continued to make great progress on increasing the recurring cash flow to the company through a variety of asset management and revenue generating capex initiatives, which allowed us to increase our annual dividend for the sixth consecutive year" said William McMorrow, chairman and chief executive officer of Kennedy Wilson. "After a year where we returned a record amount of capital to our shareholders, we entered 2017 well positioned with strong liquidity and with 86% of our debt fixed or hedged against long term increases in interest rates."

Net receivables were at $159 million as on Dec. 31, 2016, down 55.14 percent or $195.40 million from year-ago. Accounts payable plunged 49.55 percent or $11 million to $11.20 million on Dec. 31, 2016.

Total assets were almost stable over the past one year at $7,659.10 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,316 million as on Dec. 31, 2016, up 11.33 percent or $541 million from year-ago.

Return on assets moved up 27 basis points to 0.79 percent in the quarter. At the same time, return on equity moved down 38 basis points to 0.61 percent in the quarter.