Kennedy-Wilson Holdings, Inc.

GAAP EPS was a loss of $0.15 per share versus a loss of $0.56 per share in Q3 last year. Adjusted EBITDA was $125 million, up from $66 million a year ago, and adjusted EBITDA was up 6% year to date to $371 million. Q3 baseline EBITDA was $101 million, with trailing 12-month baseline EBITDA of $425 million. Investment management fees increased 8% in the quarter and 23% year to date, and income from unconsolidated investments increased by $55 million versus Q3 2024. On the balance sheet, the company paid off its last tranche of KWE unsecured bonds totaling $352 million in October; total debt is 96% fixed or hedged, with a weighted average maturity of 4.5 years and a weighted average effective interest rate of 4.7%, and consolidated unrestricted cash was $255 million. No formal next-quarter or full-year financial guidance was given, but management said it expects to reduce the line of credit over the next few quarters from additional noncore asset sales.

Bill McMorrow emphasized that the quarter showed steady progress in expanding the investment management platform while executing the noncore asset sale plan. He highlighted the company’s housing-focused strategy, saying rental housing remains supported by a long-term supply-demand imbalance and that lower borrowing costs and improving capital availability should support more transaction activity. He also framed the Toll Brothers deal as an immediate scale opportunity that would expand AUM and deepen the rental housing platform.

Justin Enbody focused on the quarter’s financial improvement and the balance sheet. He said GAAP EPS improved to a loss of $0.15 from a loss of $0.56, adjusted EBITDA reached $125 million, and investment management fees rose 8% in the quarter and 23% year to date. He also noted the payoff of the remaining $352 million KWE unsecured bonds, the simplified debt structure, 96% fixed or hedged debt, a 4.7% weighted average effective rate, and $255 million of unrestricted cash.

Analysts asked about multifamily cap rates, and management said the market is seeing trades in the high 4s to high 5s depending on age, submarket, and supply, with spreads on new development generally targeted at 125 to 175 basis points over market cap rates. On origination volumes, management said Q3 is typically slower seasonally and acknowledged heightened competition and some spread compression, but said the lending pipeline remains strong. Questions on the U.K. single-family rental platform drew a constructive response: the venture is about 1,300 homes with almost 200 built and leased, several more acquisitions are expected in Q4, and management sees room to grow into 2026.