Kennedy-Wilson (KW) Q3 2024 earnings summary

Executive summary

• Q3 2024 net loss attributable to common shareholders was $77.4 million, or $(0.56) per diluted share, an improvement from $92.2 million in Q3 2023, driven by lower non-cash fair value losses and higher investment management fees.

• Adjusted EBITDA doubled to $66.4 million in Q3 2024 from $33.2 million in Q3 2023, with year-to-date Adjusted EBITDA reaching $348.9 million.

• Fee-bearing capital reached a record $8.8 billion, up 7% year-over-year, and investment management fees grew 39% to $22 million in Q3 2024.

• Assets under management rose to $28 billion as of September 30, 2024, with a primary focus on rental housing and industrial properties.

• Launched a £1 billion UK single-family rental JV with CPPIB, targeting rental housing and logistics.

Financial highlights

• Q3 2024 revenue was $127.5 million, down from $143.8 million in Q3 2023, mainly due to asset sales and deconsolidations.

• Estimated annual NOI for the stabilized portfolio grew to $492 million, with an additional $60 million expected from development and lease-up by year-end 2026.

• YTD 2024 gross dispositions totaled $650 million, generating $375 million in cash.

• Cash and cash equivalents totaled $367 million as of September 30, 2024; total liquidity including undrawn credit was $740 million.

• Investment management revenue grew 39% to $22 million in Q3; fees on track to reach $100 million in 2024.

Outlook and guidance

• Asset sales on track to generate $550–$750 million in proceeds by Q1 2025, with over $150 million in additional Q4 sales planned.

• Development and lease-up portfolio expected to add approximately $60 million in estimated annual NOI by year-end 2026.

• Fee revenue for 2025 projected at $120 million, with growth supported by existing capital deployment pace.

• Positive market outlook due to improving liquidity, lower rates, and strong demand for rental housing.

• Continued focus on expanding investment management, especially in rental housing, credit, and logistics.