Kennedy Wilson(US:KW)2025-11-07 21:19Revenue and Income - Total segment revenue for the three months ended September 30, 2025, was $116.3 million, compared to $87.2 million in rental revenue[298]. - Rental income decreased to $87.2 million for the three months ended September 30, 2025, down from $97.8 million in 2024, primarily due to asset sales and deconsolidations[305]. - Total revenues for the same property market rate multifamily units increased by 2.1% for the three months ended September 30, 2025, compared to the same period in 2024[302]. - Total segment revenue for the nine months ended September 30, 2025, was $379.8 million, compared to $395.0 million for the same period in 2024[331][332]. - Total revenue for Q3 2025 was $116.4 million, a decrease of 8.7% from $127.5 million in Q3 2024[420]. - Total income from unconsolidated investments for Q3 2025 was $34.5 million, compared to $20.3 million in Q3 2024[422]. Adjusted EBITDA and Performance Metrics - Segment Adjusted EBITDA for the same period was $130.6 million, with $50.9 million from rental and $79.7 million from co-investments[298]. - Adjusted EBITDA is used by management to analyze business performance, excluding non-cash related expenses[15]. - Segment Adjusted EBITDA increased to $130.6 million for the three months ended September 30, 2025, up from $80.5 million in the same period of 2024, reflecting a growth of 62.1%[300]. - Adjusted EBITDA for the three months ended September 30, 2025, was $125.2 million, significantly higher than $66.4 million in 2024, reflecting a year-over-year increase of 88.5%[410]. - Segment Adjusted EBITDA for the nine months ended September 30, 2025, was $392.6 million, compared to $361.9 million for the same period in 2024[331][332]. - Same Property NOI (Net Effective) for the nine months ended September 30, 2025, was $248.4 million, compared to $246.7 million in the same period of 2024[422]. Net Loss and Comprehensive Loss - Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $21.2 million for the three months ended September 30, 2025[298]. - GAAP net loss to common shareholders was $77.4 million for the three months ended September 30, 2024, compared to a net loss of $21.2 million for the same period in 2025, indicating a significant improvement[300]. - The company experienced a comprehensive loss of $25.3 million for the three months ended September 30, 2025, compared to a loss of $45.2 million in the same period in 2024[329]. - For the nine months ended September 30, 2025, the net loss was $34.2 million, compared to a net loss of $77.4 million in 2024, indicating a 55.8% improvement[411]. - The company recorded a loss from unconsolidated investments of $34.5 million for the three months ended September 30, 2025, compared to a loss of $20.3 million in 2024[315]. Expenses and Interest - Total segment expenses amounted to $67.4 million, with $47.4 million from rental and $20.0 million from co-investments[298]. - Rental segment expenses included $34.7 million, while compensation and related expenses totaled $19.6 million[298]. - Interest expense decreased to $34.4 million for the three months ended September 30, 2025, down from $41.3 million in 2024, due to a decline in consolidated mortgage balances[311]. - Interest expense decreased to $108.6 million for the nine months ended September 30, 2025, compared to $120.6 million in 2024, due to reduced consolidated mortgage balances[347]. - The company reported interest expense of $182.3 million for the nine months ended September 30, 2025, down from $195.4 million in 2024, representing a decrease of 5.3%[411]. Real Estate and Acquisitions - The company completed $253.1 million in gross real estate acquisitions during the three months ended September 30, 2025, with a 14.1% ownership interest[302]. - The company acquired nine multifamily properties and industrial properties for $682.8 million, with a weighted-average ownership interest of 13.0%[342]. - Gain on sale of real estate, net was a loss of $65.4 million for the nine months ended September 30, 2025, compared to a gain of $112.8 million in the same period in 2024[341]. Cash Flow and Financing Activities - Net cash used in operating activities for the nine months ended September 30, 2025, was $17.5 million, compared to $25.5 million provided in the same period of 2024[384]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was $591.7 million, significantly higher than $258.2 million in 2024[385][386]. - Net cash used in financing activities totaled $413.2 million for the nine months ended September 30, 2025, compared to $237.8 million in 2024[387][388]. - The company repurchased $9.2 million of its common stock under the share repurchase plan during the nine months ended September 30, 2025[387]. - The board of directors authorized an expansion of the share repurchase plan from $250 million to $500 million, with $100.9 million remaining as of September 30, 2025[378]. Debt and Obligations - Total contractual cash obligations amounted to $4,657.8 million, with $444.8 million due in less than one year[389]. - Total borrowings include $2,384.4 million in mortgage debt, $1,800.0 million in senior notes, and $352.5 million in KWE unsecured bonds[389]. - The Company issued $500.0 million of 4.750% senior notes due 2029 and $500.0 million of 5.000% senior notes due 2031, with additional notes issued later[392]. - The Company has $102.3 million outstanding on its Third A&R Facility, with $447.7 million available to be drawn as of September 30, 2025[396]. - The Third A&R Facility has a maturity date of September 12, 2027, with an option to extend by one year[395]. Development Projects - The company is nearing completion of a 10-year development pipeline totaling $5 billion, with 420 multifamily units actively being developed[370]. - The company expects to spend an additional $21.0 million to complete the currently active development project, fully funded with a property-level construction loan[370]. - The company is developing 1,960 affordable and/or age-restricted multifamily units within its VHH platform, expecting no cash equity basis at completion due to the use of property-level debt[371]. - The company has seven unstabilized assets totaling 1.4 million commercial square feet and 150 hotel rooms, with projected costs to complete of $21.3 million[375]. Foreign Currency and Other Income - The company recorded unrealized foreign currency translation gains of $73.0 million for the nine months ended September 30, 2025, driven by the strengthening of the Euro and GBP against the US Dollar[364]. - Other income increased to $0.2 million for the three months ended September 30, 2025, compared to a loss of $8.3 million for the same period in 2024[326].