Q2 2025 Kennedy-Wilson Holdings Inc Earnings Call Transcript
Key Points
- Kennedy-Wilson Holdings Inc (KW) exceeded their business plan for Q2 2025, deploying or committing $1.7 billion in new capital.
- Assets under management grew to a record $30 billion, a 70% increase since 2021.
- Investment management fees grew by 39% in Q2 to a quarterly record of $36 million.
- The company successfully executed over $600 million in noncore asset sales, generating $250 million in cash proceeds.
- KW's rental housing sector is expected to grow to over 80% of their assets under management in the next two years.
- GAAP EPS for the quarter was a loss of $0.05 per share, although this was an improvement from a loss of $0.43 per share in Q2 of last year.
- The office portfolio in Europe saw a 3% decline in same-property NOI due to a decline in occupancy at two UK assets.
- The Northern California portfolio results were largely flat due to higher delinquency, despite higher rents.
- The company faces competition in the private credit market, with spreads on construction lending having decreased by 30 to 50 basis points.
- KW's total debt is 98% fixed or hedged, but the weighted average effective interest rate is relatively high at 4.7%.
Good day, and welcome to the Kennedy-Wilson second-quarter 2025 earnings call and webcast. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Daven Bhavsar, Head of Investor Relations. Please go ahead.
Thank you, and good morning. Thank you for joining us today. Today's call will be webcast live and will be archived for replay. The replay will be available by phone for one week and by webcast for three months. Please see the Investor Relations website for more information.
With me today are Bill McMorrow, CEO; Matt Windisch, President; Justin Enbody, CFO; and Mike Pegler, President of Europe. On this call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. You can find a description of these items, along with the reconciliation of the most directly comparable GAAP financial measure and our second quarter 2025 earnings release, which will be posted
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