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1. Company Snapshot

1.a. Company Description

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company.The company owns, operates, and invests in real estate both on its own and through its investment management platform.It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan.


As of December 31, 2021, the company had ownership interests in 10,460 multifamily units, 4.9 million square feet of office space, 3.4 million square feet of retail and industrial space, and one hotel.It is also involved in the development, redevelopment, and entitlement of real estate properties.The company was founded in 1977 and is headquartered in Beverly Hills, California.

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1.b. Last Insights on KW

Kennedy-Wilson Holdings' recent performance was driven by improved profitability, significant growth in assets under management, and a $10.25/share buyout offer from its CEO and Fairfax Financial, representing a 38% premium. The company's Q3 results showed a GAAP net loss of $21.2 million, or $0.15 per diluted share, narrowing from $77.4 million, or $0.56 per diluted share, in Q3 2024. Its portfolio transformation and $31 billion in AUM also contributed to the positive momentum. Additionally, the proposed buyout would allow management to focus on long-term strategy.

1.c. Company Highlights

2. Kennedy-Wilson's Q3 2025 Earnings: A Resilient Performance Amidst a Potential Take-Private Transaction

Kennedy-Wilson reported a loss of $0.15 per share in Q3 2025, a significant improvement from the loss of $0.56 per share in Q3 2024. However, the actual EPS beat estimates, coming in at $0.14. Adjusted EBITDA totaled $125 million, almost double the $66 million recorded in Q3 2024. The company's revenue growth is expected to be 2.4% next year, according to analysts' estimates. The P/E Ratio stands at 165.68, indicating a high valuation, while the P/B Ratio is 0.89, suggesting the stock might be undervalued relative to its book value.

Publication Date: Nov -24

📋 Highlights
  • Take-Private Proposal:: Consortium led by Bill McMorrow and Fairfax Financial submitted a proposal to take Kennedy-Wilson private.
  • Adjusted EBITDA Growth:: Q3 adjusted EBITDA rose to $125M, nearly double the $66M reported in Q3 2024.
  • Assets Under Management (AUM):: AUM increased to $31 billion, reflecting an 11% year-over-year growth.
  • Capital Deployment:: $900M deployed in Q3, bringing YTD total to $3.5 billion, focused on rental housing credit and equity investments.
  • Stabilized Real Estate NOI:: Portfolio generated $434M annualized net operating income, with 70% exposure to rental housing and industrial sectors.

Investment Management Business Drives Growth

The growth in the investment management business was a key driver of the results, with assets under management growing to $31 billion in Q3, an 11% year-over-year increase. The company deployed or committed approximately $900 million in Q3, driving total capital deployment to $3.5 billion year-to-date through September. As Justin Enbody, CFO, reviewed the Q3 financial results, he highlighted the improvements in adjusted EBITDA and adjusted net income.

Credit Team's Performance and Rental Housing Sector

The credit team has surpassed $6 billion of new loan originations since July 2023, while also successfully realizing over $2 billion of repayments from loans purchased as part of the PacWestern Bank loan portfolio transaction. The rental housing sector remains strong, with a long-term undersupply of housing and homeownership remaining unaffordable, generating estimated annual NOI of $434 million to KW.

Potential Take-Private Transaction and Valuation

The Board of Directors received a proposal letter from a consortium consisting of Bill McMorrow and Fairfax Financial Holdings Limited for a potential take-private transaction. Given the EV/EBITDA ratio of 26.38, the company's valuation appears to be high. The Dividend Yield stands at 4.87%, which might be attractive to income-seeking investors. The Net Debt / EBITDA ratio is 19.96, indicating a significant level of debt relative to EBITDA.

Operational Highlights and Outlook

Matthew Windisch mentioned that the SFR platform has had good growth over the past year, with a strong pipeline ahead and a good appetite for doing more acquisitions. The company is also seeing a better pipeline in office leasing, with committed deals that will boost office occupancy over the next couple of quarters. The market is recovering, and they're seeing a better pipeline than before, particularly with Coopers Cross, where they have a good pipeline of interest and are under offer to a promising tenant.

3. NewsRoom

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KW STOCKHOLDER NOTICE: Kaskela Law LLC Announces Investigation of Kennedy-Wilson Holdings, Inc. (KW) and Encourages KW Stockholders to Contact the Firm

Nov -25

Source: newsfilecorp.com

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KENNEDY-WILSON SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of Kennedy-Wilson Holdings, Inc. (KW) and Encourages KW Shareholders to Contact the Firm to Protect Their Investment 

Nov -12

Source: prnewswire.com

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Kennedy-Wilson Holdings, Inc. (KW) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Kennedy-Wilson Holdings: An Interesting Catalyst Doesn't Justify Meaningful Upside

Nov -06

Source: seekingalpha.com

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Kennedy Wilson Reports Third Quarter 2025 Results

Nov -05

Source: businesswire.com

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Mutual of America Capital Management LLC Lowers Stock Holdings in Kennedy-Wilson Holdings Inc. $KW

Oct -31

Source: defenseworld.net

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Kennedy Wilson to Announce Third Quarter 2025 Earnings

Oct -09

Source: businesswire.com

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Kennedy Wilson to Acquire Toll Brothers' Apartment Living Platform for $347 Million, Adding Over $5 Billion of Assets Under Management

Sep -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.67%)

6. Segments

Consolidated Portfolio

Expected Growth: 4.65%

Kennedy-Wilson Holdings, Inc.'s consolidated portfolio growth of 4.65% is driven by strategic acquisitions, strong property operations, and favorable market conditions. The company's diversified portfolio across the US and UK, with a focus on office and multifamily properties, has enabled it to capitalize on growing demand and limited supply. Effective asset management and value-add initiatives have also contributed to the portfolio's growth.

Co-Investments

Expected Growth: 4.77%

Co-investments from Kennedy-Wilson Holdings, Inc. drove 4.77% growth, fueled by strategic partnerships, expanded investment portfolio, and increased access to capital. Additionally, the company's diversified asset base, strong property management capabilities, and favorable market conditions contributed to this growth.

Corporate

Expected Growth: 4.65%

Kennedy-Wilson Holdings, Inc.'s 4.65% growth is driven by its diversified real estate investment portfolio, strategic acquisitions, and strong property management capabilities. The company's focus on value-add opportunities, rent growth, and disciplined capital allocation also contribute to its growth. Additionally, its global presence and diversified tenant base provide a stable source of income, supporting its long-term growth prospects.

7. Detailed Products

Real Estate Investments

Kennedy-Wilson Holdings, Inc. invests in and manages a diversified portfolio of real estate properties, including office, industrial, retail, and multifamily properties.

Real Estate Services

The company provides real estate services, including property management, leasing, and brokerage services to third-party owners and investors.

Commercial Property Management

Kennedy-Wilson Holdings, Inc. offers commercial property management services, including financial management, maintenance, and tenant relations.

Residential Property Management

The company provides residential property management services, including financial management, maintenance, and tenant relations.

Investment Management

Kennedy-Wilson Holdings, Inc. offers investment management services, including fund management and investment advisory services.

8. Kennedy-Wilson Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Kennedy-Wilson Holdings, Inc. is medium due to the presence of alternative investment options in the real estate industry.

Bargaining Power Of Customers

The bargaining power of customers for Kennedy-Wilson Holdings, Inc. is low due to the company's diversified portfolio and strong brand reputation.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Kennedy-Wilson Holdings, Inc. is medium due to the company's dependence on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants for Kennedy-Wilson Holdings, Inc. is high due to the relatively low barriers to entry in the real estate industry.

Intensity Of Rivalry

The intensity of rivalry for Kennedy-Wilson Holdings, Inc. is high due to the competitive nature of the real estate industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.12%
Debt Cost 5.84%
Equity Weight 24.88%
Equity Cost 9.22%
WACC 6.69%
Leverage 301.86%

11. Quality Control: Kennedy-Wilson Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
RMR Group

A-Score: 6.2/10

Value: 7.4

Growth: 4.4

Quality: 5.8

Yield: 10.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Kennedy-Wilson Holdings

A-Score: 5.1/10

Value: 5.7

Growth: 3.7

Quality: 3.5

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Newmark

A-Score: 4.9/10

Value: 5.0

Growth: 4.0

Quality: 5.4

Yield: 2.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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RE/MAX

A-Score: 4.3/10

Value: 8.5

Growth: 3.2

Quality: 6.8

Yield: 2.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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FRP Holdings

A-Score: 3.9/10

Value: 2.5

Growth: 4.0

Quality: 6.5

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Marcus Millichap

A-Score: 3.9/10

Value: 5.1

Growth: 1.4

Quality: 5.0

Yield: 3.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.7$

Current Price

9.7$

Potential

-0.00%

Expected Cash-Flows