Kennedy Wilson Reports Q4 and Full Year 2025 Results

BEVERLY HILLS, Calif.–(BUSINESS WIRE)–$KW—Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading global real estate investment company with $36 billion in AUM across its real estate equity and debt investment portfolio, today reported the following results for the fourth quarter and full year of 2025:

Financial Results

Portfolio & Operations Update

• Kennedy Wilson Acquires Toll Brothers Apartment Living Platform, Adds $5 Billion in AUM:
  • In Q4-25, the Company completed the first two phases of its acquisition of the Toll Brothers Apartment Living platform, which included the in-house development team and equity interests in a portfolio of completed properties and assets under development. The third and final phase was completed in Q1-26. The total purchase price across all three phases was $334 million, of which Kennedy Wilson invested $131 million, with the remainder funded by third-party fee-bearing equity.
  • The transaction added over $5 billion of assets under management (“AUM”) to Kennedy Wilson, including $1.9 billion of AUM from an 11% weighted average ownership interest in 18 apartment and student housing properties and $3.4 billion of AUM in 21 apartment and student housing properties that Kennedy Wilson will manage on behalf of Toll Brothers. The transaction also added $1.0 billion to Fee-Bearing Capital.
  • Additionally, Kennedy Wilson acquired a pipeline of 24 development sites which, if completed, would total approximately $2.9 billion in capitalization.
• 16% Growth in Investment Management Fees: Investment Management Fees totaled $30.4 million, an increase of 2% from Q4-24, driven by Fee-Bearing Capital reaching $11.0 billion and $1.0 billion in loan originations completed in Q4-25. For FY-25, investment management fees grew by 16% to $115 million in FY-25 (vs. FY-24). Assets under management grew to $36 billion.
• Q4-25 Asset Sales Generate $65 million of Cash: For FY-25, the Company completed $1.4 billion of asset sales and recapitalizations, generating $534 million of cash to KW.
• Baseline EBITDA Totals $87 million: Baseline EBITDA totaled $87 million in Q4-25 (vs. $98 million in Q4-24), driven by higher levels of investment management fees and offset by lower property NOI due to non-core asset sales completed since Q4-24.
• Estimated Annual NOI of $431 million and Fee-Bearing Capital of $11.0 billion:

• Multifamily Same Property Performance¹:

Investment Management and Co-Investment Portfolio Update

• Co-Investment Platform Deploys or Commits $1.9 billion in Q4-25 (KW share 9%):
  • Debt Investment Platform Grows to $10.9 billion in Q4-25: Comprised of $5.1 billion in outstanding loans and $5.8 billion in future funding commitments. KW’s share in this platform is 3%.
    • Originations Total $1.0 billion in Q4-25; $3.6 billion in 2025: Completed $1.0 billion in new construction loan originations in Q4-25 across 8 market-rate multifamily and student housing developments. For the year, the Company originated $3.6 billion across 36 market-rate multifamily and student housing construction loans.
    • Fundings and Repayments:
      • Fundings: Completed $573 million in additional fundings on existing loans in Q4-25, resulting in $1.9 billion of fundings completed in FY-25. KW has an average ownership of 3% in these loans.
      • Repayments: Collected $624 million in repayments in Q4-25, resulting in $1.6 billion of repayments in FY-25. KW’s share of its repayments was 5% .
  • Real Estate Platforms Complete $501 million in Acquisitions:
    • UK Single Family Rental Housing Platform Adds $345 million in New Sites:
      • In Q4-25, acquired 8 development sites with 666 planned homes for $345 million. In FY-25, acquired 13 development sites with 1,064 planned homes for $542 million.
      • Platform expands to $932 million of committed investment across 22 sites with 1,965 planned homes. KW has a 10% interest in this platform, which currently has a target of $1.3 billion in assets.
    • U.S. Multifamily Acquisitions Total $116 million:
      • In addition to the Toll Brothers Apartment Living transaction described above, the Company acquired a 320-unit multifamily community in the Mountain West and a development site in Southern California for a total of $116 million. KW has a 19% weighted-average ownership interest in these acquisitions.
    • Balance Sheet Acquisitions for Planned Recapitalization: Acquired a wholly-owned industrial development site in the United Kingdom and a multifamily development site in the Southeast U.S. for a total of $40 million. The Company plans to pursue partner-led recapitalizations for both investments.
• $65 million of Cash Generated from Dispositions in Q4-25:
  • Consolidated Portfolio:
    • Sold a 300-unit multifamily property in the Mountain West and a UK office property for a combined total of $100 million. These asset sales generated $36 million of cash and a GAAP gain on sale of $13 million to KW.
  • Co-Investment Portfolio:
    • Non-Core Sales: The Company sold two multifamily properties in Southern California, an office asset in Ireland, an industrial property in Spain, and real estate from its non-core residential holdings for a combined total of $140 million, of which KW’s share was $54 million.

Balance Sheet and Liquidity

• Cash and Line of Credit Availability: As of December 31, 2025, Kennedy Wilson had cash and cash equivalents of $185 million⁽¹⁾ and $285 million drawn on its $550 million revolving credit facility.
• KWE Bond Redemption: Kennedy Wilson completed full redemption of €300 million outstanding euro-denominated 3.25% notes due November 2025 (the “Notes”) issued by Kennedy Wilson Europe Real Estate Limited, a wholly-owned subsidiary of Kennedy Wilson.
• Debt Profile: Kennedy Wilson’s share of debt had a weighted average effective annual interest rate of 4.8% and a weighted-average maturity of 4.4 years as of December 31, 2025. Approximately 92% of the Company’s share of debt is either fixed (71%) or hedged with interest rate derivatives (21%).
• Interest Rate Hedging Strategy: The Company hedges its floating rate exposure through the use of interest rate caps and swaps:
  • Interest rate hedges have a weighted-average maturity of 1.0 years and result in a 40 basis point improvement in the effective interest rate of its floating-rate hedged debt.
  • Received $3 million of cash from interest rate derivatives in Q4-25 and $19 million in FY-25, which are not reflected as an offset to interest expense.
• 2025 Dividend Taxability: The Company’s 2025 dividend distributions were characterized as 100.00% return of capital. Please refer to kennedywilson.com for further information.

Subsequent Events

On February 16, 2026, the Company entered into an agreement and plan of merger to be acquired by an entity affiliated with a consortium led by William McMorrow, Chairman and Chief Executive Officer of the Company, and certain other senior executives of the Company , together with Fairfax (collectively, the “Consortium”). If the transaction is consummated, the Consortium will acquire all outstanding common shares of Kennedy Wilson other than certain shares owned by the members of the Consortium and their respective affiliates for $10.90 per share in cash (the “Transaction”). The Transaction is currently expected to close in the second quarter of 2026 and is subject to customary closing conditions, including the receipt of (i) the approval by holders of a majority in voting power of the Company’s outstanding capital stock entitled to vote on the Transaction, (ii) the approval by a majority of the votes cast by holders of Kennedy Wilson equity securities (other than holders affiliated with the Consortium) and entitled to vote on the Transaction, and (iii) any required regulatory approvals and the expiration or termination of any applicable waiting periods.

In Q1-2026, the Company completed the third and final phase of its acquisition of the Toll Brothers Apartment Living platform, which included equity interests in four multifamily communities totaling 1,405 units and a wholly-owned leasehold interest in a multifamily development site for a total purchase price of $71 million, of which Kennedy Wilson invested $16 million with the remainder funded by third-party fee-bearing equity. Additionally, the Company acquired a wholly-owned multifamily development site for $13 million. The Company plans to pursue partner-led recapitalizations for both development projects.

In Q1-2026, the Company drew $95 million on its revolving credit facility and currently has an outstanding balance of $380 million.

Footnotes

⁽¹⁾ Represents consolidated cash and includes $89 million of restricted cash, which is included in cash and cash equivalents and primarily relates to lender reserves associated with consolidated mortgages that we hold on properties. These reserves typically relate to interest, tax, insurance and future capital expenditures at the properties. Additionally, we are subject to withholding taxes to the extent we repatriate cash from certain of our foreign subsidiaries. The Company’s share of cash, including unconsolidated joint-ventures, totals $298 million.

Conference Call

Due to the pending merger transaction, the Company will not be hosting a fourth quarter 2025 earnings conference call and webcast. For further detail and discussion of our financial performance please refer to our annual report on Form 10-K for the year ended December 31, 2025.

About Kennedy Wilson

Kennedy Wilson (NYSE: KW) is a leading real estate investment company with $36 billion of assets under management in high growth markets across the United States, the UK and Ireland. Drawing on decades of experience, our relationship-oriented team excels at identifying opportunities and building value through market cycles, closing more than $65 billion in total transactions across the property spectrum since going public in 2009. Kennedy Wilson owns, operates, and builds real estate within our high-quality, core real estate portfolio and through our investment management platform, where we target opportunistic equity and debt investments alongside our partners. For further information, please visit www.kennedywilson.com.

Forward-Looking Statements

Statements made by us in this report and in other reports and statements released by us that are not historical facts constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are necessarily estimates reflecting the judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future operating results. Disclosures that use words such as “believe,” “anticipate,” “estimate,” “intend,” “may,” “could,” “plan,” “expect,” “project” or the negative of these, as well as similar expressions, are intended to identify forward-looking statements. These statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievement, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties may include the factors and the risks and uncertainties described elsewhere in this report and other filings with the Securities and Exchange Commission (the “SEC”), including the Item 1A. “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2025, as amended by our subsequent filings with the SEC. Any such forward-looking statements, whether made in this report or elsewhere, should be considered in the context of the various disclosures made by us about our businesses including, without limitation, the risk factors discussed in our filings with the SEC. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise.

Common Definitions

· “KWH,” “KW,” “Kennedy Wilson,” the “Company,” “we,” “our,” or “us” refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries.

· “Adjusted EBITDA” represents net (loss) income before interest expense, loss (gain) on early extinguishment of debt, our share of interest expense included in unconsolidated investments, depreciation and amortization, our share of depreciation and amortization included in unconsolidated investments, preferred dividends, provision for (benefit from) income taxes, our share of taxes included in unconsolidated investments, share-based compensation expense for the Company, and EBITDA attributable to noncontrolling interests.

Please also see the reconciliation to GAAP in the Company’s supplemental financial information included in this release and also available at www.kennedywilson.com. Our management uses Adjusted EBITDA to analyze our business because it adjusts net income for items we believe do not accurately reflect the nature of our business going forward or that relate to non-cash compensation expense or noncontrolling interests. Such items may vary for different companies for reasons unrelated to overall operating performance. Additionally, we believe Adjusted EBITDA is useful to investors to assist them in getting a more accurate picture of our results from operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when analyzing our operating performance, readers should use Adjusted EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not remove all non-cash items or consider certain cash requirements such as tax and debt service payments. The amount shown for Adjusted EBITDA also differs from the amount calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.

· “Adjusted Fees” refers to Kennedy Wilson’s gross investment management and property services fees adjusted to include Kennedy Wilson’s share of fees eliminated in consolidation, and performance fees included in unconsolidated investments. Our management uses Adjusted Fees to analyze our investment management and business because the measure removes required eliminations under GAAP for properties in which the Company provides services but also has an ownership interest. These eliminations understate the economic value of the investment management and property services fees and makes the Company comparable to other real estate companies that provide investment management but do not have an ownership interest in the properties they manage. Our management believes that adjusting GAAP fees to reflect these amounts eliminated in consolidation presents a more holistic measure of the scope of our investment management and real estate services business.

Contacts

Investor Relations
Daven Bhavsar, CFA

(310) 887-3431

[email protected]

Corporate Headquarters
151 S. El Camino Drive

Beverly Hills, CA 90212

www.kennedywilson.com

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