• Assets Under Management (AUM): Increased to $28 billion from $25 billion.

• Estimated Annual Net Operating Income (NOI): Grew to $492 million.

• Fee Bearing Capital: Reached a record $8.8 billion.

• Investment Management Fees: Increased by 51% year-to-date to $69 million.

• New Loan Originations: Completed $2.1 billion in 2024 with a pipeline of over $1.2 billion.

• Cash Generated from Asset Sales: $63 million in Q3, totaling $375 million year-to-date.

• Planned Asset Sales: Expected to generate over $150 million in Q4.

• Investment Management Revenue: Grew by 39% to $22 million in Q3.

• Baseline EBITDA: Totaled $102 million in Q3, increased by 4% year-to-date to $309 million.

• Total Adjusted EBITDA: Doubled in the quarter to $66 million, increased by 9% to $349 million for the year.

• Interest Rate Hedging Cash Received: $10 million in Q3, totaling $33 million year-to-date.

• Effective Interest Rate: 4.6%, reflecting 37 basis points savings due to hedging.

• Same Property NOI Growth: 3% in Q3.

• Overall Portfolio Occupancy: 94%.

• Multifamily NOI: $305 million, increased by over 60% over the last five years.

• Same Property Revenue Growth: 3.3% in Q3.

• Office Portfolio NOI Growth in Europe: 2%.

• Industrial Portfolio Occupancy in the US: 99%.

• Investment Management Business Fee Bearing Capital: $8.8 billion at the end of the quarter.

• Investment Management Fees Over Past 12 Months: $85 million.

• Warning! GuruFocus has detected 10 Warning Signs with KW.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kennedy-Wilson Holdings Inc (NYSE:KW) reported a significant growth in assets under management, reaching $28 billion, up from $25 billion.

• The company has seen a 51% increase in investment management fees year-to-date, with fees on track to hit approximately $100 million in 2024.

• KW has successfully completed $2.1 billion in new loan originations in 2024, with a strong pipeline of over $1.2 billion in new loan opportunities.

• The company has generated $375 million in cash from asset sales year-to-date, with additional planned sales expected to generate over $150 million in Q4.

• KW's multifamily portfolio has shown strong performance, with a 94% occupancy rate and an estimated annual NOI growth of $29 million from stabilizing approximately 2,000 units.

Negative Points

• Despite growth in various areas, Kennedy-Wilson Holdings Inc (NYSE:KW) has been a net seller of assets, which may impact future revenue streams.

• The company's unconsolidated portfolio saw minor changes in valuation, indicating potential challenges in asset appreciation.

• KW's portfolio in Utah, Idaho, and Colorado has been impacted by elevated levels of supply, affecting occupancy and revenue growth.

• The office portfolio in the US faces challenges, with the company noting differences in market conditions compared to Europe.

• The company's effective interest rate savings from hedging strategies may not be sustainable long-term, potentially affecting future interest expenses.