With the perception that real estate values are bottoming, one of the biggest private equity players in the industry is planning to ramp up its property acquisitions in the coming months.
After spending $8B in the second quarter on mostly real estate buys, as of April 1, New York-based KKR & Co. had closed or was under contract to outlay $10B in real estate equity, KKR co-CEO Scott Nuttall said on the firm’s earnings call Wednesday.
“The real estate investment opportunity is highly compelling,” Nuttall said, adding that the firm has a “full pipeline as some owners of real estate seek liquidity and sell their best assets.”
“And in this environment, scale is trading at a discount,” he said.
KKR generated $668M of net income in the second quarter, and its revenue in the first six months of 2024 doubled year-over-year to $13.8B. It increased its assets under management by 16% to $601B, including $152B in real assets, which includes real estate, according to its earnings report.
