Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.05 per share compared to a loss of $0.43 per share in Q2 of the previous year [15] - Baseline EBITDA for Q2 was $117 million, a 12% increase year over year, bringing the trailing twelve-month baseline EBITDA to $425 million [15] - Adjusted EBITDA totaled $147 million, significantly up from $79 million in Q2 of the previous year [15] Business Line Data and Key Metrics Changes - Assets under management grew to a record $30 billion, increasing by 70% since the beginning of 2021 [6] - The rental housing sector, representing 65% of assets under management, comprises approximately 70,000 units [7] - The company originated $1.3 billion in new rental housing construction loans, marking the second-largest quarter in originations to date [7] Market Data and Key Metrics Changes - The U.S. apartment sector is experiencing strong rental demand due to a persistent housing shortage and declining new supply, setting the stage for rental growth [12][13] - In the Pacific Northwest, NOI growth was the strongest across the portfolio at 5.6%, driven by demand from companies like Amazon and Starbucks [22] - The Mountain West region, particularly Idaho, saw impressive NOI growth of 7.2% due to higher rents and lower real estate taxes [23] Company Strategy and Development Direction - The company is focused on increasing its exposure to rental housing, aiming for this sector to grow to over 80% of assets under management over the next two years [7] - The strategy includes expanding the multifamily and affordable housing sectors while disposing of non-core assets [20] - The company plans to continue recycling capital into higher return investment opportunities within its investment management platform [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the real estate fundamentals strengthening and the compelling risk-adjusted opportunities in the rental housing sector [12] - The company anticipates a record level of new capital deployment in the remainder of 2025, supported by strong partnerships and a robust pipeline of activity [14] - Management highlighted the importance of maintaining a diversified investment management business to enhance shareholder value [14] Other Important Information - The company generated $275 million from asset sales for the year, keeping it on track to meet its goal of $400 million by year-end [11] - The company has $113 million of consolidated unrestricted cash and $450 million of undrawn availability on its credit facility [19] - The company began utilizing its share repurchase plan, repurchasing approximately 400,000 shares at an average price of $6.21 [19] Q&A Session Summary Question: Can you discuss the UK single-family rental business and its attractiveness? - The UK single-family rental market is in its early stages, with significant growth potential and a focus on a build-to-rent strategy [34][36] - Targeted returns are mid-teens at the asset level, potentially reaching the 20s with fees included [37] Question: How does the company view competition in the debt platform? - The company will continue to focus on residential construction lending, with potential expansion into bridge lending and permanent solutions [42] - The company has expertise in other property types but will primarily focus on housing [43] Question: What are the plans for non-core asset sales for the remainder of the year? - The company is on track to exceed its goal of $400 million in asset sales, having already generated $275 million [44] Question: What are the preferences between affordable versus market-rate multifamily investments? - The company is interested in expanding exposure to both affordable and market-rate sectors, with a focus on the U.S. market [47][48] - The company aims to increase the number of units it manages to between 90,000 and 100,000 over the next few years [51] Question: How is the company addressing upcoming debt maturities? - The company plans to continue disposing of non-core assets to free up capital for debt maturities and refinancing [63] - The average rate on maturing debt is close to 6%, which is above the current borrowing cost [65]

[Earnings Release](index=3&type=section&id=Earnings%20Release) [News Release](index=3&type=section&id=News%20Release) **Kennedy Wilson** reported strong **Q2 2025** results, with **Adjusted EBITDA** at **$147.1 million** and **AUM** reaching **$30 billion**, driven by asset sales and **fee growth** Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :--- | :--- | :--- | | **GAAP Net Loss to Common Shareholders** | ($6.4 million) | ($59.1 million) | | GAAP EPS (Diluted) | ($0.05) | ($0.43) | | **Adjusted EBITDA** | $147.1 million | $79.3 million | | **Adjusted Net Income (Loss)** | $34.5 million | ($16.8 million) | - CEO William McMorrow attributed the strong financial results to the execution of the **asset sale program** and **strengthening fundamentals**, highlighting that **Assets under Management (AUM)** grew to a **record $30 billion**, leading to a **39% increase** in **investment management fees** to a quarterly record of **$36 million**[6](index=6&type=chunk) - Key operational achievements in **Q2 2025** include: **Baseline EBITDA** grew by **12% YoY** to **$117 million**; **Fee-Bearing Capital** increased to a **record $9.2 billion**; and the **Debt Investment Platform** originated **$1.2 billion** in **new construction loans** and grew to **$10.1 billion**[7](index=7&type=chunk)[8](index=8&type=chunk)[11](index=11&type=chunk) Multifamily Same Property NOI Growth (Q2-2025 vs. Q2-2024) | Portfolio | Revenue Growth (%) | Expense Growth (%) | NOI Growth (%) | | :--- | :--- | :--- | :--- | | Market Rate | 2.0% | (0.2)% | 3.1% | | Affordable | 6.2% | 8.6% | 4.9% | | **Total** | **2.9%** | **1.6%** | **3.5%** | - The company generated **$250 million** in cash from dispositions and recapitalizations, including the sale of **$409 million** in **non-core consolidated assets**, also repaying **$170 million** on its **revolving credit facility** and repurchasing **0.4 million shares**[13](index=13&type=chunk)[15](index=15&type=chunk) - Subsequent to the quarter's end, the company announced the **full redemption** of its **€300 million 3.25% notes** due **November 2025**, to be completed on **October 3, 2025**[14](index=14&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) **Consolidated Balance Sheet** shows **total assets** of **$6.80 billion** and **total liabilities** of **$5.20 billion** as of **June 30, 2025**, with **Q2 2025 net loss** at **$6.4 million** [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary (as of June 30, 2025) | Account | Amount (in millions USD) | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $309.1 | | Real estate, net | $4,078.8 | | Unconsolidated investments | $2,034.7 | | **Total Assets** | **$6,796.9** | | **Liabilities & Equity** | | | Mortgage debt | $2,385.2 | | Total unsecured debt | $2,237.1 | | **Total Liabilities** | **$5,200.6** | | **Total Equity** | **$1,596.3** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 Statement of Operations Summary (vs. Q2 2024) | Line Item | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | | :--- | :--- | :--- | | **Total Revenue** | $135.7 | $132.0 | | **Gain on sale of real estate, net** | $55.1 | $0.2 | | Total Expenses | $110.4 | $110.2 | | **Interest Expense** | ($62.5) | ($63.8) | | Net Income (Loss) | $5.6 | ($48.3) | | **Net Loss to Common Shareholders** | **($6.4)** | **($59.1)** | [Non-GAAP Metrics](index=10&type=section&id=Non-GAAP%20Metrics) **Q2 2025 Adjusted EBITDA** significantly increased to **$147.1 million**, with **Adjusted Net Income** at **$34.5 million**, reversing a prior-year loss Adjusted EBITDA Reconciliation Summary (Q2 2025) | Item | Amount (in millions USD) | | :--- | :--- | | **Net loss to common shareholders** | ($6.4) | | Add back: **Interest expense** (KW Share) | $95.2 | | Add back: **Depreciation** & amortization (KW Share) | $34.4 | | Add back: Provision for income taxes | $4.4 | | Add back: Preferred dividends | $10.9 | | Add back: **Share-based compensation** | $6.5 | | **Adjusted EBITDA** | **$147.1** | Adjusted Net Income Reconciliation Summary (Q2 2025) | Item | Amount (in millions USD) | | :--- | :--- | | **Net loss to common shareholders** | ($6.4) | | Add back: **Depreciation** & amortization (KW Share) | $34.4 | | Add back: **Share-based compensation** | $6.5 | | **Adjusted Net Income (Loss)** | **$34.5** | [Supplemental Financial Information](index=15&type=section&id=Supplemental%20Financial%20Information) [Capitalization and Value Summary](index=16&type=section&id=Capitalization%20and%20Value%20Summary) As of **June 30, 2025**, **Kennedy Wilson's total enterprise value** was **$8.33 billion**, primarily from **income-producing assets** generating **$467.7 million** in **NOI** and **$9.2 billion** in **fee-bearing capital** Capitalization Summary (as of June 30, 2025) | Metric | Value (in millions USD) | | :--- | :--- | | **Equity Market Capitalization** | $1,192.6 | | **Total Kennedy Wilson's share of debt** | $7,577.9 | | **Total Capitalization** | $8,770.5 | | Less: **Kennedy Wilson's share of cash** | ($440.1) | | **Total Enterprise Value** | **$8,330.4** | Components of Value (KW's Share) | Category | Key Metric | Value (in millions USD) | | :--- | :--- | :--- | | **Income Producing Assets** | **Est. Annual NOI** | $467.7 | | **Lease-up, Development, etc.** | **KW Gross Asset Value** | $1,627.0 | | **Investment Management** | **Fee-Bearing Capital** | $9,200 | | **Net Debt** | **Total Net Debt** | $7,137.8 | [Stabilized Portfolio Analysis](index=19&type=section&id=Stabilized%20Portfolio%20Analysis) The **stabilized portfolio** generates **$467.7 million** in **Estimated Annual NOI**, primarily from **Multifamily** and **Office** segments, with **Mountain West**, **Ireland**, and the **UK** as major geographic contributors - The **stabilized portfolio's Estimated Annual NOI** of **$467.7 million** is primarily driven by **Multifamily** (**$298.1 million**) and **Office** (**$119.2 million**) assets[49](index=49&type=chunk) - Geographically, the largest contributors to **NOI** are the **Mountain West** (**$116.9 million**), **Ireland** (**$88.3 million**), and the **UK** (**$74.8 million**)[46](index=46&type=chunk) [Segment Investment Summary](index=20&type=section&id=Segment%20Investment%20Summary) Stabilized Portfolio by Segment (KW Share) | KW Segment | Est. Annual NOI (USD) | Fee Bearing Capital (USD) | KW Gross Asset Value (USD) | Avg. KW Own. % (%) | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $234.6 million | $0 | $4,381.6 million | 97% | | Co-investment | $233.1 million | $9.2 billion | $4,125.7 million | 23% | | **Total** | **$467.7 million** | **$9.2 billion** | **$8,507.3 million** | **37%** | [Multifamily Portfolio](index=21&type=section&id=Multifamily%20Portfolio) - The **total stabilized multifamily portfolio** consists of **37,736 units** with a **94.2% occupancy rate** (**KW Share**) and generates **$298.1 million** in **Estimated Annual NOI**[51](index=51&type=chunk) - The **Western U.S. portfolio** (**34,226 units**) generates **$249.2 million** in **NOI**, while the **Ireland portfolio** (**3,510 units**) generates **$48.9 million**[51](index=51&type=chunk) [Office Portfolio](index=22&type=section&id=Office%20Portfolio) - The **stabilized office portfolio** comprises **7.1 million rentable square feet** with a **91.4% occupancy rate** (**KW Share**), generating **$119.2 million** in **Estimated Annual NOI**[53](index=53&type=chunk) - The **European office portfolio** (**2.7 million sq. ft.**) is the primary contributor with **$91.1 million** in **NOI**, compared to the **Western U.S. portfolio** (**4.4 million sq. ft.**) which generates **$28.1 million** in **NOI**[53](index=53&type=chunk) [Industrial Portfolio](index=23&type=section&id=Industrial%20Portfolio) - The **stabilized industrial portfolio** consists of **11.5 million rentable square feet** with a high **98.3% occupancy** (**KW Share**), generating **$19.5 million** in **Estimated Annual NOI**[56](index=56&type=chunk) [Loan Investment Portfolio](index=24&type=section&id=Loan%20Investment%20Portfolio) - The **loan portfolio** includes **125 loans** with a total **KW share balance** of **$215.4 million**, generating **$18.5 million** in **annual interest income** at an average **interest rate** of **8.6%**[58](index=58&type=chunk) - In **Q2 2025**, the company originated **13 new loans** with a **gross commitment** of **$1.24 billion** and realized **$321.3 million** in **repayments**[58](index=58&type=chunk) [Other Investments](index=25&type=section&id=Other%20Investments) - **Other investments** include a **retail portfolio** generating **$12.4 million** in **NOI** and a **residential/other portfolio** with a **KW Gross Asset Value** of **$274.5 million**, which includes the **UK Single Family Rental platform**[60](index=60&type=chunk) [Lease-up and Development Portfolio](index=26&type=section&id=Lease-up%20and%20Development%20Portfolio) The **lease-up portfolio** has a **gross asset value** of **$700.5 million** and is expected to generate **$46-$49 million** in **stabilized NOI**, with **1,870 units** in the **affordable housing pipeline** Lease-up Portfolio Summary (KW Share) | of Assets | Commercial Sq. Ft. | Leased % (%) | Est. Stabilized NOI (USD) | KW Gross Asset Value (USD) | | :--- | :--- | :--- | :--- | :--- | | 7 | 1,392,000 | 22% | $46 million - $49 million | $700.5 million | - The **Vintage Housing affordable platform** has **1,870 units** in its **lease-up and development pipeline**, which are expected to generate **$9.6 million** in **stabilized NOI** (**KW Share**) upon completion[71](index=71&type=chunk) [Debt and Liquidity](index=29&type=section&id=Debt%20and%20Liquidity) **Kennedy Wilson's total debt** is **$7.58 billion** with **net debt** of **$7.14 billion**, a **4.6-year weighted average maturity**, and **4.7% effective interest rate**, with **98%** of debt fixed or hedged Debt Summary (KW Share as of June 30, 2025) | Metric | Value (USD) | | :--- | :--- | | **Total Debt** | $7,577.9 million | | **Net Debt** | $7,137.8 million | | **Weighted Avg. Effective Interest Rate** | 4.7% | | **Weighted Avg. Years to Maturity** | 4.6 years | - The company's **debt** is largely insulated from **interest rate volatility**, with **74%** being **fixed-rate** and **24% hedged**, leaving only **2%** exposed to **floating rates**[77](index=77&type=chunk) - **Secured investment-level debt** totals **$5.32 billion**, with the largest allocations to the **Multifamily** (**$3.62 billion**) and **Office** (**$1.23 billion**) sectors[77](index=77&type=chunk) [Investment Management Platform](index=31&type=section&id=Investment%20Management%20Platform) The **investment management platform** had **$30 billion** in **Real Estate AUM** as of **June 30, 2025**, with **Q2 2025 total adjusted fees** increasing to **$34.9 million** Adjusted Fees (Q2 2025 vs Q2 2024) | Fee Description | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | | :--- | :--- | :--- | | Investment Management — Base | $15.9 | $16.2 | | Investment Management — Transaction | $20.7 | $10.1 | | Investment Management — Carried Interests | ($2.0) | ($12.3) | | **Total Adjusted Fees** | **$34.9** | **$14.1** | - The company's **accrued net carried interests receivable** stood at **$13.4 million** as of **June 30, 2025**[78](index=78&type=chunk) [Same Property Analysis](index=32&type=section&id=Same%20Property%20Analysis) For **Q2 2025**, **multifamily same-property NOI** grew **3.5%**, while **office NOI** declined **5.7%**, primarily due to an **8.3% revenue drop** in **Western U.S. assets** [Same Property - Multifamily](index=32&type=section&id=Same%20Property%20-%20Multifamily) Multifamily Same Property Performance (Q2 2025 vs Q2 2024) | Portfolio | Revenue Change (%) | Expense Change (%) | NOI Change (%) | | :--- | :--- | :--- | :--- | | Market Rate | +2.0% | -0.2% | +3.1% | | Affordable | +6.2% | +8.6% | +4.9% | | **Total** | **+2.9%** | **+1.6%** | **+3.5%** | [Same Property - Office](index=34&type=section&id=Same%20Property%20-%20Office) Office Same Property Performance (Q2 2025 vs Q2 2024, incl. straight-line rents) | Region | Revenue Change (%) | Expense Change (%) | NOI Change (%) | | :--- | :--- | :--- | :--- | | Western U.S. | -8.3% | +5.6% | -19.3% | | Europe | -0.7% | +37.0% | -2.7% | | **Total** | **-2.7%** | **+13.3%** | **-5.7%** | [Real Estate Investment Transactions](index=38&type=section&id=Real%20Estate%20Investment%20Transactions) In **Q2 2025**, **Kennedy Wilson** was a **net seller of real estate**, acquiring **$490.8 million** of assets at a **5.2% cap rate** and disposing of **$618.0 million** at a **6.5% cap rate** Q2 2025 Transaction Summary (100% Value) | Transaction Type | Aggregate Price (USD) | Cap Rate (%) | | :--- | :--- | :--- | | Acquisitions | $490.8 million | 5.2% | | Dispositions | $618.0 million | 6.5% | [Segment Detail](index=39&type=section&id=Segment%20Detail) For **Q2 2025**, the **Consolidated segment** generated **$96.4 million** in **Segment Adjusted EBITDA**, with the **Co-Investment segment** contributing **$58.3 million**, indicating strong growth Segment Adjusted EBITDA (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | | :--- | :--- | :--- | | Consolidated | $96.4 | $48.4 | | Co-Investment | $58.3 | $33.5 | | **Total** | **$154.7** | **$81.9** | [Pro-rata Financial Information](index=41&type=section&id=Pro-rata%20Financial%20Information) **KW's share** of **unconsolidated investments** included **$4.85 billion** in **net real estate assets** and **$2.98 billion** in **mortgage debt** as of **June 30, 2025**, generating **$77.8 million** in **rental revenue** KW Share of Unconsolidated Investments (as of June 30, 2025) | Account | Amount (in millions USD) | | :--- | :--- | | Cash and cash equivalents | $134.3 | | Real estate, net | $4,854.2 | | Mortgage debt | $2,977.6 | [Appendix](index=45&type=section&id=Appendix) [Reconciliation of Non-GAAP Measures](index=46&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The **appendix** provides **detailed reconciliations** for **non-GAAP** and **supplemental metrics** like **Estimated Annual NOI**, **Adjusted Fees**, **Baseline EBITDA**, and **Same Property NOI**, ensuring **transparency** - The **Estimated Annual NOI** of **$467.7 million** is reconciled from **Q2-25 Property-Level NOI** of **$114.7 million**, after adjustments for **transactions**, **lease-up**, and other items[126](index=126&type=chunk) - Detailed tables reconcile **Kennedy Wilson's Share** of **interest expense**, **depreciation**, and **taxes** from **consolidated figures** by adjusting for **noncontrolling interests** and adding the share from **unconsolidated investments**[128](index=128&type=chunk) - **Same Property NOI** is reconciled to **GAAP Net Income**, detailing adjustments for **non-same-property assets**, **unconsolidated investments**, and various **non-cash or non-recurring items**[132](index=132&type=chunk)[141](index=141&type=chunk) - **Baseline EBITDA** of **$117.0 million** for **Q2 2025** is reconciled from **GAAP Net Income** by adjusting for **non-core items** like **gains on sale**, **taxes**, **interest**, and **depreciation**, and including **NOI from unconsolidated investments**[147](index=147&type=chunk)

Group 1 - Kennedy-Wilson (KW) closed at $7.6, with a 9.2% gain over the past four weeks, and a mean price target of $9.9 indicating a 30.3% upside potential [1] - The average price targets range from a low of $7.70 to a high of $13.00, with a standard deviation of $2.76, suggesting variability in analyst estimates [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for KW has increased by 109.1% due to one estimate moving higher over the last 30 days without any negative revisions [12] - KW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [14]

Core Viewpoint - Kennedy-Wilson (KW) has shown a significant price increase of 11.3% over the past four weeks, with a mean price target of $9.9 indicating a potential upside of 32.7% from the current price of $7.46 [1] Price Targets and Analyst Consensus - The average price targets for KW range from a low of $7.70 to a high of $13.00, with a standard deviation of $2.76, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 3.2% increase, while the highest suggests a 74.3% upside, highlighting the potential for significant price movement [2] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price direction [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about KW's earnings prospects, with a strong consensus on revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 245.5% over the past month, indicating positive sentiment among analysts [12] - KW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, further supporting its potential upside [13] Caution on Price Targets - While price targets are commonly referenced by investors, they can often mislead, as empirical research shows that they rarely predict actual stock price movements accurately [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Kennedy Wilson Overview - Kennedy Wilson manages a global investment portfolio with 39,000 multifamily units and 12 million sq ft of industrial space[5] - The company has a 36-year track record as a global real estate operator and investor[15] - Kennedy Wilson anticipates generating over $400 million from asset sales in 2025, with $125 million already repaid on the credit facility in Q2[12] Financial Performance - The estimated annual NOI from the stabilized portfolio is $473 million[13,18] - Investment Management Fees TTM are $103 million[13] - Fee-bearing capital is $8.7 billion as of Q1 2025[23,46] Portfolio Composition - Multifamily, Loans, and Industrial represent 72% of the stabilized portfolio[18] - The global multifamily portfolio totals approximately 39,000 units with an estimated annual NOI of $302 million and 95% occupancy[24,25] - Rental housing represents approximately 66% of AUM, totaling $12 billion[48,50] Investment Management Platform - The company targets 20%+ growth in investment management fees[12] - There is a $4.4 billion pipeline of fee-bearing capital from future fundings[47] - The credit platform has $9.1 billion in loan commitments[5,57]

Financial Performance - Total revenue for Q1 2025 was $128.3 million, a decrease of 5.9% from $136.4 million in Q1 2024[32]. - Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $40.8 million in Q1 2025, compared to a net income of $26.9 million in Q1 2024[32]. - Basic loss per share for Q1 2025 was $0.30, down from a basic income per share of $0.19 in Q1 2024[32]. - Comprehensive loss for Q1 2025 was $14.9 million, compared to comprehensive income of $35.2 million in Q1 2024[35]. - The company recorded a pre-tax book loss of $34.5 million for the three months ended March 31, 2025, with a tax benefit of $4.9 million[191]. - GAAP net loss to common shareholders was $40.8 million for the three months ended March 31, 2025, compared to a net income of $26.9 million for the same period in 2024[273]. Assets and Liabilities - Total assets as of March 31, 2025, increased to $7,157.1 million from $6,961.1 million as of December 31, 2024, reflecting a growth of approximately 2.8%[30]. - Total liabilities increased to $5,564.9 million as of March 31, 2025, compared to $5,325.1 million at the end of 2024, representing a rise of about 4.5%[30]. - Total equity decreased to $1,592.2 million as of March 31, 2025, down from $1,636.0 million, a decline of about 2.7%[30]. - The company had cash and cash equivalents of $356.6 million at the end of the period, a decrease from $541.9 million at the end of March 2024[43]. - As of March 31, 2025, total mortgage debt amounted to $2,620.7 million, an increase from $2,597.2 million as of December 31, 2024, reflecting a growth of approximately 0.9%[146]. - The company has a total of $2,053.6 million in unsecured debt as of March 31, 2025, compared to $1,877.9 million as of December 31, 2024, indicating an increase of approximately 9.3%[151]. Investment Performance - The company reported a significant share of net operating income from its Co-Investment Portfolio, which is crucial for evaluating investment performance[18]. - Income from unconsolidated investments increased to $11.4 million in Q1 2025, compared to a loss of $6.7 million in Q1 2024[32]. - The company has significant influence over its joint venture interests, which are accounted for under the equity method, with ownership ranging from 5% to 50%[92]. - The company reported a total of $2,084.7 million in joint venture investments as of March 31, 2025, compared to $2,042.4 million as of December 31, 2024, indicating an increase of about 2.1%[94]. - Operating distributions from joint ventures totaled $16.0 million for the three months ended March 31, 2025, compared to $6.4 million in the prior year, marking a substantial increase of approximately 150%[97]. Cash Flow and Financing - Net cash used in operating activities was $51.9 million, a significant increase from $5.6 million in the prior year[43]. - The company reported a net cash provided by financing activities of $218.8 million, compared to a net cash used of $9.8 million in the same period of 2024[43]. - The company paid $18.3 million in common dividends, down from $34.1 million in the same period of 2024[43]. - The company has a credit facility with $272.7 million outstanding and $277.3 million available to be drawn as of March 31, 2025[154]. - The company completed loan purchases and originations of $205.1 million as of March 31, 2025, compared to $231.1 million as of December 31, 2024[137]. Market and Economic Conditions - The company focuses on investing in high growth markets, particularly in the rental housing sector and industrial properties across the U.S., UK, and Ireland[50]. - The company expects ongoing macroeconomic conditions to potentially impact the fair value of its investments, highlighting the uncertainty in the current financial environment[112]. - A significant portion of the company's investments are located outside the U.S., and fluctuations in foreign currency rates will impact results of operations[277]. Operational Metrics - The company emphasizes the importance of same property metrics for consistent performance analysis across comparable periods[27]. - Occupancy for same property multifamily units increased to 95.0% from 93.9%, with net operating income rising by 4.0% and total revenues increasing by 2.6%[276]. - For affordable rate multifamily units, occupancy decreased by 1.1% to 93.5%, while net operating income increased by 5.5% and total revenues rose by 5.3%[276]. Shareholder Returns - Dividends declared per common share decreased to $0.12 in Q1 2025 from $0.24 in Q1 2024[32]. - The company declared and paid cash distributions of $10.9 million on preferred stock and $16.6 million on common stock for the three months ended March 31, 2025[166]. - The company did not repurchase any shares under its stock repurchase program during the three months ended March 31, 2025, after repurchasing 882,454 shares for $7.5 million in the same period of 2024[169].

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 per share for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [12] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [12] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [5] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [6] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [7] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [8][24] Market Data and Key Metrics Changes - U.S. real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [6] - The Pacific Northwest portfolio saw the strongest NOI growth of 6.6%, driven by return-to-office mandates [19] - In Ireland, same property NOI in the apartment portfolio increased by 3.5%, supported by occupancy growth and strong operating expense management [21] Company Strategy and Development Direction - The company is focused on simplifying its business through asset sales, reducing unsecured debt, and increasing free cash flow [10] - The asset sale program aims to generate between $400 million to $450 million in cash by year-end, with $150 million to $200 million expected to close by the end of Q2 [10] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong Q2 pipeline [9] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [6] - Management noted that the current economic environment presents attractive investment opportunities, and the company is well-positioned to capitalize on these [9] Other Important Information - The company has reduced its unsecured debt by $250 million over the last two years and plans to continue this trend [10] - Total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and an effective interest rate of 4.7% [16] - The company has a strong pipeline of advanced stages totaling $375 million in its new U.K. single-family rental platform [26] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% annual growth in fees, supported by a strong pipeline and future fundings [29][30] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [31][32][34] Question: Stock buyback plans - Management indicated that current cash usage is focused on paying down unsecured debt, with stock buybacks reconsidered post-debt reduction [35][36][37] Question: Dispositions and cap rates - Management confirmed that dispositions are well underway, with most expected to close in June, but refrained from commenting on specific cap rates [40][42] Question: Loan origination rates - Management noted some downward pressure on spreads due to increased competition, but still finds the rates attractive relative to alternatives [49][51] Question: Exposure to government-backed housing - Management reported that about 15% of tenants have some form of HUD backing, but expressed no immediate concerns regarding capital availability [56][60]

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [14] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [14] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [6] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [7] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [8] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [10][27] Market Data and Key Metrics Changes - In the U.S., real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [7] - The company noted strong apartment demand in Q1, with blended leasing spreads increasing to 1.5% and a significant improvement in new lease rents [20] - In Ireland, same property NOI in the apartment portfolio was up 3.5%, driven by occupancy growth and strong operating expense management [23] Company Strategy and Development Direction - The company is focused on executing a non-core asset sale plan, aiming to generate between $400 million to $450 million from asset sales and recaps by year-end [12] - The strategy includes reducing unsecured debt and simplifying the business by focusing on core sectors of rental housing and industrial [30] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong pipeline of activity [11] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [7] - Management highlighted the importance of relationships in maintaining competitiveness amid increased market volatility and competition [34] Other Important Information - The company has a strong pipeline of $2.5 billion in loan originations and real estate equity acquisitions, primarily within the rental housing sector [5] - The total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and a weighted average effective interest rate of 4.7% [18] - The company is actively monitoring potential impacts from government changes on affordable housing, with 15% of tenants having some form of HUD backing [54][57] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% growth in fees, citing a strong pipeline and future funding commitments [32][33] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [34][36] Question: Stock buyback plans - The focus remains on paying down unsecured debt, with potential reconsideration of stock buybacks after addressing debt obligations [37][39] Question: Dispositions and cap rates - Management indicated that dispositions are well underway, with expected closures in June, but refrained from commenting on specific cap rates [42][44] Question: Loan origination rates and prepayments - Loan origination rates have seen downward pressure, but the quality of projects remains high; a significant prepayment was noted as an outlier [51][53] Question: Exposure to government-backed housing - Approximately 15% of tenants have HUD backing, but management does not foresee immediate concerns regarding capital availability [56][60]

Financial Performance - GAAP net loss to common shareholders for Q1-2025 was $40.8 million, compared to a net income of $26.9 million in Q1-2024[7] - Adjusted EBITDA for Q1-2025 was $98.2 million, down from $203.2 million in Q1-2024, reflecting a significant decrease[7] - Total revenue for the three months ended March 31, 2025, was $128.3 million, a decrease of 5.9% from $136.4 million in the same period of 2024[28] - Basic loss per share was $0.30, compared to earnings per share of $0.19 in the prior year[28] - Total expenses decreased to $106.8 million, down 6.4% from $114.1 million in the same period of 2024[28] - The company reported a loss on the sale of real estate of $0.8 million, a significant decrease from a gain of $106.4 million in the prior year[28] - The net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $40.8 million, compared to a net income of $26.9 million in the prior year[31] - Adjusted EBITDA for the three months ended March 31, 2025, was $98.2 million, down 51.6% from $203.2 million in the same period of 2024[31] - Total revenue for Q1 2025 was $102.7 million, an increase of 15.5% compared to $89.2 million in Q1 2024[118] - The net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders was not specified, but net income before taxes showed a loss of $0.3 million in Q1 2025[118] - The company reported a net loss attributable to noncontrolling interests of $0.3 million in Q1 2025, compared to a net income of $0.1 million in Q1 2024[126] - Net Income for Q1 2025 was $(29.6) million, compared to $37.7 million in Q1 2024, indicating a significant decrease in profitability[133] Operational Metrics - Same-property multifamily net operating income (NOI) grew by 4.3% year-over-year, driven by strong demand for rental housing[7] - Estimated annual NOI reached $473 million as of Q1-2025, up from $467 million in Q4-2024[11] - The occupancy rate for multifamily properties is 94.5%, contributing an estimated annual NOI of $301.7 million[48] - The total number of stabilized units reached 36,324, with 2,455 units acquired or stabilized after January 1, 2024[92] - The average occupancy for the market rate total reached 95.0% in Q1 2025, a 1.2% increase from 93.9% in Q1 2024[92] - The average occupancy in Ireland improved to 96.4% in Q1 2025, a 1.9% increase from 94.6% in Q1 2024[100] - The average occupancy for the Western U.S. office properties was 84.3% in Q1 2025, up from 82.7% in Q1 2024, representing a 1.9% increase[96] Investment and Asset Management - Investment management fees increased by 17% to $25 million in Q1-2025, supported by $724 million in loan originations[10] - The debt investment platform grew to $9.1 billion in Q1-2025, with a strong pipeline of over $1 billion in new originations for Q2-2025[13] - The company expects to generate over $400 million in cash from asset sales and recapitalizations during the remainder of 2025[20] - The company has 36,324 multifamily units with a 94.5% occupancy rate, contributing significantly to its NOI[48] - The total gross asset value of Kennedy Wilson is estimated at $1.69 billion[49] - The company has a total of 175,771,603 common shares outstanding as of March 31, 2025[44] - The company has 118 total industrial assets with an estimated annual NOI of $18.3 million and an average annual rent per square foot of $9.4[64] - The company originated 10 loans in Q1-25 with a gross origination commitment of $724.1 million, resulting in a KW share of commitment of $18.1 million[67] Debt and Financing - The company's share of debt had a weighted average effective interest rate of 4.7% per annum, with approximately 96% of the debt being fixed or hedged[20] - Cash and cash equivalents totaled $357 million as of March 31, 2025, with $273 million drawn on a $550 million revolving credit facility[20] - The total consolidated and unconsolidated debt amounts to $7,765.4 million, with a net debt of $7,291.1 million as of March 31, 2025[82] - The effective interest rate on total debt is 4.7%, while the contractual interest rate is 4.9%[85] - Kennedy Wilson's secured investment level debt totals $5,368.2 million, with 74% being fixed-rate debt[85] - The debt maturity schedule indicates significant repayments due in 2025, totaling $96.9 million in unsecured debt[82] Strategic Initiatives - The company anticipates continued focus on market expansion and new product development as part of its strategic initiatives moving forward[34] - The company expects to complete 1,870 multifamily units by 2026, with an estimated stabilized NOI of $9.6 million[80] - The company has a total of 3 residential investments planned, with a gross asset value of $256 million[69] - The estimated costs to complete the lease-up projects total $20.9 million[72] - The company has 5 development projects with a total estimated gross asset value of $731.5 million[76] Revenue Breakdown - Total revenues for the market rate portfolio increased to $75.5 million in Q1 2025, up 2.6% from $73.7 million in Q1 2024[92] - The affordable portfolio's total revenues rose to $19.4 million in Q1 2025, reflecting a 5.3% increase from $18.4 million in Q1 2024[92] - Total revenues for the Western U.S. office properties were $30.1 million in Q1 2025, unchanged from Q1 2024[100] - The total operating expenses for the market rate portfolio were $51.3 million in Q1 2025, compared to $49.4 million in Q1 2024, marking a 4.0% increase[92] - The total operating expenses for the Western U.S. office properties decreased by 1.2% to $4.2 million in Q1 2025 from $4.0 million in Q1 2024[100]

Group 1 - Kennedy-Wilson Holdings operates as a real estate investment company and an investment manager, making it an interesting option for investors [1] - The company has a focus on cash flow and the potential for value and growth in the oil and natural gas sector [1] Group 2 - Subscribers to the service receive access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement [2]