Kennedy Wilson Reports First Quarter 2025 Results

BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading global real estate investment company with $29 billion in AUM across its real estate equity and debt investment portfolio, today reported results for Q1-2025:

Financial Results

(Amounts in millions, except per share data)		Q1
GAAP Results		2025			2024
GAAP Net (Loss) Income to Common Shareholders1		($40.8	)		$26.9
Per Diluted Share		(0.30	)		0.19

(Amounts in millions)		Q1
Non-GAAP Results		2025			2024
Adjusted EBITDA		$98.2			$203.2
Adjusted Net (Loss) Income		(0.7	)		70.5
Adjusted EBITDA - Key Components (at KW share)
Baseline EBITDA: Property NOI, loan income, and inv. mgt fees (net of compensation and general and administrative expenses)		$108.3			$103.1
Realized gain on the sale of real estate		(1.9	)		108.3
Change in the fair value of the Co-investment portfolio and Carried interests		3.1			(10.1	)
Other		(11.3	)		1.9
Adjusted EBITDA		$98.2			$203.2
1Includes non-cash charges totaling $37 million and $61 million for Q1-25 and Q1-24, respectively, which primarily includes depreciation and amortization and fair-value changes.

“In the first quarter, we saw strong demand for our rental housing properties leading to same-property multifamily net operating income growth of 4.3%. Our global rental housing business represents our largest sector and has expanded to 65,000 units, which we either hold an equity interest in or are currently financing,” said William McMorrow, CEO of Kennedy Wilson. “We are off to a strong start in 2025, having deployed or committed approximately $1 billion of capital in Q1. We have completed or are in the process of closing $2.4 billion in new construction loan originations, compared to $3.5 billion for the entirety of 2024 - highlighting the accelerated pace of capital deployment. Additionally, we expect to generate over $400 million in proceeds from non-core asset sales during the remainder of 2025. These proceeds will be allocated toward strengthening our balance sheet through the reduction of unsecured debt and to support the continued growth of our investment management platform.”

Portfolio & Operational Update

• Baseline EBITDA Grows by 5% to $108 Million: Baseline EBITDA grew by 5% (vs. Q1-24), driven by higher property NOI and investment management fees.

• Investment Management Fees Increase by 17%: Investment Management Fees grew by 17% in Q1-25 (vs Q1-24) to $25 million driven by increasing levels of recurring base management fees and $724 million of originations completed in Q1-25 by KW's debt investment platform.

• Estimated Annual NOI of $473 million and Fee-Bearing Capital of $8.7 billion:

		Est. Annual NOI To KW ($ in millions)			Fee-Bearing Capital ($ in billions)
As of Q4-24		$467			$8.8
Transaction activity, net1		(2	)		(0.2	)
Operations		2			—
FX and other		6			0.1
Total as of Q1-25		$473			$8.7
1 Includes real estate acquisitions, dispositions, loan fundings and loan repayments completed during Q1-25. The Company also completed $724 million in loan originations during Q1-25, which will primarily be funded in future quarters.

• Multifamily Same Property Performance⁽¹⁾ : Improving Occupancy Leads to NOI Growth

		Q1 - 2025 vs. Q1 - 2024
		Occupancy			Revenue			Expenses			NOI (Net Effective)
Multifamily - Market Rate		1.2	%		2.6	%		(0.4	)%		4.0	%
Multifamily - Affordable		(1.1	)%		5.3	%		5.0	%		5.5	%
Total		0.6	%		3.1	%		0.8	%		4.3	%
(1) Excludes minority-held investments and assets undergoing development or lease-up.

Investment Management Business and Co-Investment Portfolio Update

• Debt Investment Platform Grows to $9.1 billion in Q1-25:
  • Q1-25 Investment Activity: In Q1-25, originated 10 new construction loans, completed $371 million in additional fundings on existing loans, and realized $527 million in repayments
  • Debt Investment Platform Includes $4.5 Billion of Future Fundings: Includes $4.6 billion in outstanding loans ($4.4 billion of Fee-Bearing Capital) and $4.5 billion of future funding commitments, of which $4.4 billion is expected to be added to the Company's Fee-Bearing Capital when funded. KW has an average ownership of 4%.
  • Strong Pipeline: Currently over $1 billion in new originations in process for Q2-25, all of which relate to multifamily or student-housing construction projects. There can be no assurances that these transactions will be completed.

• Co-Investment Portfolio Real Estate Acquisitions:
  • UK Single Family Rental Housing Platform:
    • In Q1-25, acquired a development site with 84 planned units, which grew platform to $406 million of committed investment across 985 planned units. KW has a 10% interest in this platform.
    • Active pipeline of opportunities totaling an incremental 1,000 units, with the current platform capacity to potentially reach approximately 4,000 units at full capital deployment.
  • U.S. Commingled Fund Acquisitions:
    • Acquired two multifamily properties in the Mountain West and an industrial property in the Pacific Northwest for $107 million. KW has a 13% ownership interest in these acquisitions.

• Co-Investment Portfolio Real Estate Dispositions: The Company sold $58 million of real estate investments (KW share 36%) comprised of an industrial asset and sales from its non-core residential holdings.

Consolidated Real Estate Investment Activity

• Minimal Activity in Q1: Acquired an industrial development site in the United Kingdom for $48 million, which is expected to be recapitalized with a partner. The Company also sold a non-core office asset for $9 million.

Balance Sheet and Liquidity

• Cash and Line of Credit: As of March 31, 2025, Kennedy Wilson had a total of $357 million⁽¹⁾ in cash and cash equivalents and $273 million drawn on its $550 million revolving credit facility.

• Asset Disposition and Recap Update: The Company expects to generate over $400 million in cash from asset sales and recapitalizations during the remainder of 2025, including approximately $200 million in Q2-25. The proceeds from these asset sales and recapitalizations will be used to reduce the Company's unsecured debt (including the repayment of its KWE Unsecured Notes due November 2025). There can be no assurances that these asset sales and recapitalizations will be completed when expected, or at all.

• Debt Profile: Kennedy Wilson's share of debt had a weighted average effective interest rate of 4.7% per annum and a weighted average maturity of 4.8 years as of March 31, 2025. Approximately 96% of the Company's debt is either fixed (74%) or hedged with interest rate derivatives (22%).

• Interest Rate Hedging Update: 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 1.2 years and result in an 80 basis point improvement in the effective interest rate of its floating-rate hedged debt.
  • Received $5 million of cash from interest rate derivatives in Q1-25, which is not reflected as an offset to interest expense.

• Foreign Currency Hedging Update: Kennedy Wilson hedges its exposure to foreign currency fluctuations by borrowing in the currency in which it invests and using foreign currency hedging instruments. As of March 31, 2025, the Company has hedged approximately 90% of the carrying value of its foreign currency investments, using local currency debt and hedging instruments with a weighted average term of 1.8 years.

Subsequent Events

As previously announced, the Company completed a $510 million refinancing of existing mortgages secured by five multifamily assets primarily located in Dublin, Ireland. These assets are owned through an unconsolidated joint venture which the Company manages and holds a 50% ownership interest in. The new 5-year secured financing carries a floating all-in rate of 3-month Euribor + 1.95% (current rate is approximately 4.1% per annum).

Footnotes

(1)

Represents consolidated cash and includes $194 million of restricted cash, which is included in cash and cash equivalents, that primarily relates to lender reserves associated with consolidated mortgages that we hold on properties and reserves held on behalf of the borrowers under our construction loans. These reserves typically relate to interest, tax, insurance and future capital expenditures at the properties and on our loan investments. Additionally, we are subject to withholding taxes to the extent we repatriate cash from certain of our foreign subsidiaries. Under the KWE Notes covenants, we have to maintain certain interest coverage and leverage ratios to remain in compliance (see "Indebtedness and Related Covenants" for more detail on KWE Notes in the Company's quarterly report). Due to these covenants, we evaluate the tax and covenant implications before we distribute cash, which could impact the availability of funds at the corporate level. The Company's share of cash, including unconsolidated joint ventures, totals $474 million.

Conference Call and Webcast Details

Kennedy Wilson will hold a live conference call and webcast to discuss results at 9:00 a.m. PT/ 12:00 p.m. ET on Thursday, May 8. The direct dial-in number for the conference call is (844) 340-4761 for U.S. callers and (412) 717-9616 for international callers. A replay of the call will be available for one week beginning one hour after the live call and can be accessed by (877) 344-7529 for U.S. callers and (412) 317-0088 for international callers. The passcode for the replay is 4535343. The webcast will be available at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=8fUchqCX. A replay of the webcast will be available one hour after the original webcast on the Company’s investor relations web site for three months.

About Kennedy Wilson

Kennedy Wilson (NYSE: KW) is a leading real estate investment company with $29 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 $60 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.

Kennedy-Wilson Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in millions)
		March 31, 2025				December 31, 2024
Assets
Cash and cash equivalents		$	356.6			$	217.5
Accounts receivable, net			35.0				38.7
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of $995.6 and $949.1)			4,336.6				4,290.4
Unconsolidated investments (including $1,911.1 and $1,884.4 at fair value)			2,084.7				2,042.4
Loan purchases and originations, net			205.1				231.1
Other assets, net			139.1				141.0
Total assets		$	7,157.1			$	6,961.1
Liabilities
Accounts payable		$	9.1			$	10.8
Accrued expenses and other liabilities (including $216.8 and $225.2 of deferred tax liabilities)			557.7				529.4
Mortgage debt			2,620.7				2,597.2
KW unsecured debt			2,053.6				1,877.9
KWE unsecured bonds			323.8				309.8
Total liabilities			5,564.9				5,325.1
Equity
Cumulative perpetual preferred stock			789.7				789.7
Common stock			—				—
Additional paid-in capital			1,712.4				1,712.8
Accumulated deficit			(551.1	)			(493.7	)
Accumulated other comprehensive loss			(393.0	)			(407.6	)
Total Kennedy-Wilson Holdings, Inc. shareholders’ equity			1,558.0				1,601.2
Noncontrolling interests			34.2				34.8
Total equity			1,592.2				1,636.0
Total liabilities and equity		$	7,157.1			$	6,961.1

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except share amounts and per share data)
		Three Months Ended March 31,
		2025				2024
Revenue
Rental		$	97.3			$	97.4
Hotel			—				9.3
Investment management fees			25.0				21.3
Loan			5.8				8.1
Other			0.2				0.3
Total revenue			128.3				136.4
Income (loss) from unconsolidated investments
Principal co-investments			19.6				9.7
Carried interests			(8.2	)			(16.4	)
Total income (loss) from unconsolidated investments			11.4				(6.7	)
(Loss) gain on sale of real estate, net			(0.8	)			106.4
Expenses
Rental			38.1				37.2
Hotel			—				7.6
Compensation and related (including $6.3 and $5.2 of share-based compensation)			26.9				27.6
Carried interests compensation			(2.7	)			(5.5	)
General and administrative			10.4				8.3
Depreciation and amortization			34.1				38.9
Total expenses			106.8				114.1
Interest expense			(61.4	)			(64.7	)
Gain on early extinguishment of debt			—				0.3
Other (loss) income			(5.2	)			6.8
(Loss) income before benefit from (provision for) income taxes			(34.5	)			64.4
Benefit from (provision for) income taxes			4.9				(26.7	)
Net loss (income)			(29.6	)			37.7
Net (income) loss attributable to noncontrolling interests			(0.3	)			0.1
Preferred dividends			(10.9	)			(10.9	)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders		$	(40.8	)		$	26.9
Basic (loss) earnings per share
(Loss) earnings per share		$	(0.30	)		$	0.19
Weighted average shares outstanding			137,745,032				138,472,579
Diluted (loss) earnings per share
(Loss) earnings per share		$	(0.30	)		$	0.19
Weighted average shares outstanding			137,745,032				138,628,139
Dividends declared per common share		$	0.12			$	0.24

Kennedy-Wilson Holdings, Inc.
Adjusted EBITDA
(Unaudited)
(Dollars in millions)

The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted EBITDA, using Kennedy Wilson’s pro-rata share amounts for each adjustment item.

		Three Months Ended
		March 31,
		2025				2024
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders		$	(40.8	)		$	26.9
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Interest expense			92.9				95.2
Gain on early extinguishment of debt			—				(0.3	)
Depreciation and amortization			33.8				38.4
(Benefit from) provision for income taxes			(4.9	)			26.9
Preferred dividends			10.9				10.9
Share-based compensation			6.3				5.2
Adjusted EBITDA		$	98.2			$	203.2
(1) See Appendix for reconciliation of Kennedy Wilson's Share amounts.

Adjusted Net Income
(Unaudited)
(Dollars in millions, except share data)

The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted Net Income, using Kennedy Wilson’s pro-rata share amounts for each adjustment item.

		Three Months Ended
		March 31,
		2025				2024
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders		$	(40.8	)		$	26.9
Non-GAAP adjustments:
Add back (Kennedy Wilson's Share)(1):
Depreciation and amortization			33.8				38.4
Share-based compensation			6.3				5.2
Adjusted Net (Loss) Income		$	(0.7	)		$	70.5
Weighted average shares outstanding for diluted			137,745,032				138,628,139
(1) See Appendix for reconciliation of Kennedy Wilson's Share amounts.

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, 2024, 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.

• "Adjusted Net Income" represents net income (loss) before depreciation and amortization, Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments, share-based compensation, and excluding net income attributable to noncontrolling interests, before depreciation and amortization. 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.

• "Baseline EBITDA" is a non-GAAP measure representing net (loss) income less total income from unconsolidated investments, gain (loss) on sale of real estate, net, other income (loss) and non-controlling interest, plus share-based compensation, carried interest compensation, depreciation and amortization, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes, NOI from unconsolidated investments (at KW’s share) and fees eliminated in consolidation.

• "Cap rate" represents the net operating income of an investment for the year preceding its acquisition or disposition, as applicable, divided by the purchase or sale price, as applicable. Capitalization ("Cap") rates discussed in this report only include data from income-producing properties. The Company calculates cap rates based on information that is supplied to it during the acquisition diligence process. This information is not audited or reviewed by independent accountants and may be presented in a manner that is different from similar information included in the Company's financial statements prepared in accordance with GAAP. In addition, cap rates represent historical performance and are not a guarantee of future net operating income ("NOI"). Properties for which a cap rate is discussed may not continue to perform at that cap rate.

• "Carried interests” refers to amounts that are allocated to the Company under Funds and the Co-Investment investments based on the cumulative performance of such venture and are subject to preferred return thresholds of the partners of such venture. In the case of Funds, carried interests represent an allocation relating to the performance of investment management services, whereas in the case of a Co-Investment, carried interests represent returns for the performance of the underlying investments in the Co-Investment investments structures subject to collaborative decision-making.

• "Carried interests compensation” refers to any carried interests earned by certain commingled funds and separate account investments to be allocated to certain non-NEO employees of the Company, as approved by the compensation committee of the Company’s board of directors.

• "Equity partners" refers to non-wholly-owned subsidiaries that we consolidate in our financial statements under U.S. GAAP and third-party equity providers.

• "Estimated Annual NOI" is a property-level non-GAAP measure representing the estimated annual net operating income from each property as of the date shown, inclusive of rent abatements (if applicable). The calculation excludes depreciation and amortization expense, and does not capture the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements, and leasing commissions necessary to maintain the operating performance of our properties. For assets wholly-owned and fully occupied by KW, the Company provides an estimated NOI for valuation purposes of $4.3 million, which includes an assumption for applicable market rents. Any of the enumerated items above could have a material effect on the performance of our properties. Also, where specifically noted, for properties purchased in 2025, the NOI represents estimated Year 1 NOI from our original underwriting. Estimated year 1 NOI for properties purchased in 2025 may not be indicative of the actual results for those properties. Estimated annual NOI is not an indicator of the actual annual net operating income that the Company will or expects to realize in any period. Please also see the definition of "Net operating income" below. 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.

• "Fee-Bearing Capital" represents total third-party committed or invested capital that we manage in our joint-ventures, commingled funds, and debt platform that entitle us to earn fees, including without limitation, asset management fees, construction management fees, acquisition and disposition fees and/or promoted interest, if applicable.

• "Gross Asset Value” refers to the gross carrying value of assets, before debt, depreciation and amortization, and net of noncontrolling interests.

• "Net operating income" or "NOI” is a non-GAAP measure representing the income produced by a property calculated by deducting certain property expenses from property revenues. Our management uses net operating income to assess and compare the performance of our properties and to estimate their fair value. Net operating income does not include the effects of depreciation or amortization or gains or losses from the sale of properties because the effects of those items do not necessarily represent the actual change in the value of our properties resulting from our value-add initiatives or changing market conditions. Our management believes that net operating income reflects the core revenues and costs of operating our properties and is better suited to evaluate trends in occupancy and lease rates. 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.

• "Noncontrolling interests" represents the portion of equity ownership in a consolidated subsidiary not attributable to Kennedy Wilson.

• "Principal co-investments” consists of the Company’s share of income or loss earned on investments in which the Company can exercise significant influence but does not have control. Income from unconsolidated investments includes income from ordinary course operations of the underlying investment, gains on sale, fair value gains and losses.

• "Pro-Rata" represents Kennedy Wilson's share calculated by using our proportionate economic ownership of each asset in our portfolio. Please also refer to the pro-rata financial data in our supplemental financial information.

• "Property NOI" or "Property-level NOI" is a non-GAAP measure calculated by deducting the Company's Pro-Rata share of rental and hotel property expenses from the Company's Pro-Rata rental, hotel and loans and other revenues. 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.

• "Real Estate Assets under Management" ("AUM") generally refers to the properties and other assets with respect to which the Company provides (or participates in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, and investments in joint ventures. AUM is principally intended to reflect the extent of the Company's presence in the real estate market, not the basis for determining management fees. AUM consists of the total estimated fair value of the real estate properties, total loan commitments made through our debt investment platform, inclusive of both currently outstanding loan amounts and contractual future fundings, and other real estate-related assets either owned by third parties, wholly-owned by the Company or held by joint ventures and other entities in which its sponsored funds or investment vehicles and client accounts have invested. The estimated value of development properties is included at estimated completion cost. The accuracy of estimating fair value for investments cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets and may not be realized in a current sale or immediate settlement of the asset or liability (particularly given the ongoing macroeconomic conditions such as, but not limited to recent adverse developments affecting regional banks and other financial institutions, and ongoing military conflicts around the world and uncertainty with respect to fluctuating interest rates continuing to fuel recessionary fears and create volatility in Kennedy Wilson's business results and operations). Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had an impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts. All valuations of real estate involve subjective judgments.

• "Same property" refers to stabilized consolidated and unconsolidated properties in which Kennedy Wilson has an ownership interest during the entire span of both periods being compared. This analysis excludes properties that during the comparable periods (i) were acquired, (ii) were sold, (iii) are either under development or undergoing lease up or major repositioning as part of the Company’s asset management strategy, (iv) were investments in which the Company holds a minority ownership position, and (v) certain non-recurring income and expenses. The analysis only includes Office, Multifamily and Hotel properties, where applicable. To derive an appropriate measure of operating performance across the comparable periods, the Company removes the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods. Amounts are calculated using Kennedy Wilson’s ownership share in the Company’s consolidated and unconsolidated properties. Management evaluates the performance of the operating properties the Company owns and manages using a “same property” analysis because the population of properties in this analysis is consistent from period to period, which allows management and investors to analyze (i) the Company’s ongoing business operations and (ii) the revenues and expenses directly associated with owning and operating the Company’s properties and the impact to operations from trends in occupancy rates, rental rates and operating costs. Same property metrics are widely recognized measures in the real estate industry; however, other publicly-traded real estate companies may not calculate and report same property results in the same manner as the Company. Please also see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Certain Non-GAAP Measures and Reconciliations” for a reconciliation of “same property” results to the most comparable measure reported under GAAP.

Note about Non-GAAP and certain other financial information included in this presentation

In addition to the results reported in accordance with U.S. generally accepted accounting principles ("GAAP") included within this presentation, Kennedy Wilson has provided certain information, which includes non-GAAP financial measures (including Adjusted EBITDA, Adjusted Net Income, Net Operating Income, and Adjusted Fees, as defined above). Such information is reconciled to its closest GAAP measure in accordance with the rules of the SEC, and such reconciliations are included within this presentation. These measures may contain cash and non-cash acquisition-related gains and expenses and gains and losses from the sale of real-estate related investments. Consolidated non-GAAP measures discussed throughout this report contain income or losses attributable to non-controlling interests. Management believes that these non-GAAP financial measures are useful to both management and Kennedy Wilson's shareholders in their analysis of the business and operating performance of the Company. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measures. Additionally, non-GAAP financial measures as presented by Kennedy Wilson may not be comparable to similarly titled measures reported by other companies. Annualized figures used throughout this release and supplemental financial information, and our estimated annual net operating income metrics, are not an indicator of the actual net operating income that the Company will or expects to realize in any period.

KW-IR

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Investor Relations

Daven Bhavsar, CFA

(310) 887-3431

dbhavsar@kennedywilson.com



Corporate Headquarters

151 S. El Camino Drive

Beverly Hills, CA 90212

www.kennedywilson.com

Source: Kennedy-Wilson Holdings, Inc.