Kennedy Wilson(US:KW)2025-11-05 21:34Financial Performance - Kennedy Wilson reported a GAAP net loss of $21.2 million for Q3 2025, compared to a loss of $77.4 million in Q3 2024, with a diluted loss per share of $0.15[7]. - Adjusted EBITDA for Q3 2025 was $125.2 million, significantly up from $66.4 million in Q3 2024, while year-to-date adjusted EBITDA reached $370.5 million compared to $348.9 million in the previous year[7]. - Total revenue for Q3 2025 was $116.4 million, a decrease of 8.7% compared to $127.5 million in Q3 2024[27]. - The company reported a basic loss per share of $0.15 for Q3 2025, compared to a loss of $0.56 per share in Q3 2024[27]. - Net loss attributable to common shareholders for Q3 2025 was $21.2 million, compared to a net loss of $77.4 million in Q3 2024[27]. - Total revenues for the nine months ended September 30, 2025, increased to $267.2 million, up 2.4% from $260.7 million in 2024[96]. - The company reported a net loss of $68.4 million for the nine months ended September 30, 2025, compared to a loss of $109.6 million in the same period of 2024[122]. Revenue Sources - Rental revenue decreased to $87.2 million in Q3 2025 from $97.8 million in Q3 2024, representing a decline of 6.1%[27]. - Investment management fees increased to $23.4 million in Q3 2025, up 8.3% from $21.6 million in Q3 2024[27]. - Total revenues for the investment management segment increased to $85.1 million for YTD 2025, compared to $69.6 million for YTD 2024[88]. - The total revenues for the market rate portfolio in Q3 2025 were $74.1 million, a 2.1% increase from $72.5 million in Q3 2024[92]. - The total net operating income for the affordable portfolio was $20.5 million in Q3 2025, compared to $20.0 million in Q3 2024, reflecting a 2.3% increase[92]. Assets and Liabilities - Total assets as of September 30, 2025, were $6,698.2 million, down from $6,961.1 million as of December 31, 2024[24]. - Total liabilities decreased to $5,138.2 million as of September 30, 2025, from $5,325.1 million as of December 31, 2024[24]. - Cash and cash equivalents increased to $382.6 million as of September 30, 2025, from $217.5 million as of December 31, 2024[24]. - The company’s total debt, including senior notes and credit facilities, was reported at $7,383.6 million as of September 30, 2025, down from $7,507.5 million[43]. - The company has a total consolidated debt of $2,330.8 million as of September 30, 2025, with a net debt of $2,218.8 million[83]. Operational Metrics - Estimated annual NOI decreased to $434 million as of Q3 2025, down from $467 million in Q4 2024, primarily due to transaction activity and operational changes[9]. - Total Estimated Annual NOI from income-producing assets is $434.2 million, with 51% derived from consolidated assets[50]. - The average monthly rent per market-rate unit in the multifamily portfolio is $1,881, with an estimated annual NOI of $273.4 million[57]. - The average occupancy rate for the market rate portfolio was 95.1% in Q3 2025, up from 94.9% in Q3 2024[92]. - The total number of units stabilized as of September 30, 2025, was 38,492[96]. Debt and Interest Rates - Approximately 96% of the company's debt is either fixed or hedged, with a weighted average effective interest rate of 4.7%[18]. - The effective interest rate on the company's debt is 4.6%, while the contractual interest rate is 4.9%[83]. - Interest expense for Q3 2025 was $93.2 million, a decrease from $100.5 million in Q3 2024[141]. Acquisitions and Investments - Kennedy Wilson announced the acquisition of Toll Brothers' Apartment Living platform, expected to add $5 billion in AUM and expand the rental housing portfolio to over 60,000 units[7][12]. - The company completed real estate acquisitions totaling $932.0 million year-to-date 2025, with a cap rate of 5.5%[116]. - The company has 23 investments in the residential and other category, contributing to a total estimated annual NOI of $12 million[56]. Market Presence and Strategy - The company continues to focus on expanding its market presence and enhancing its portfolio through strategic acquisitions and developments[160]. - The company has exposure to both fixed and floating rate debt through its corporate debt and debt encumbering its consolidated properties[86].