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Kennedy-wilson (KW)
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Kennedy-Wilson (KW) AI Stock Analysis

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KW

Kennedy-Wilson

(NYSE:KW)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
$8.00
▲(2.43% Upside)
Kennedy-Wilson's overall stock score reflects a balance of challenges and opportunities. The company's financial performance is hindered by declining revenue and high leverage, but improved cash flow and strategic growth in the rental housing sector provide optimism. The technical analysis suggests a neutral trend, while the valuation highlights risks due to ongoing losses. The positive sentiment from the earnings call, with significant achievements in capital deployment and asset management, is a key strength.

Kennedy-Wilson (KW) vs. SPDR S&P 500 ETF (SPY)

Kennedy-Wilson Business Overview & Revenue Model

Company DescriptionKennedy-Wilson (KW) is a global real estate investment and services firm headquartered in Beverly Hills, California. The company specializes in the acquisition, management, and development of income-producing real estate across various sectors, including multifamily, office, and retail properties. KW offers a range of services such as property management, leasing, and asset management, catering to both institutional investors and private clients. Through its extensive expertise and strategic partnerships, Kennedy-Wilson aims to enhance the value of its real estate investments while delivering attractive returns to its stakeholders.
How the Company Makes MoneyKennedy-Wilson generates revenue primarily through its real estate investment activities, which include the acquisition and management of properties. The company earns income from rental payments from tenants in its managed properties, as well as through property sales and capital appreciation. Additionally, KW provides real estate services, which contribute to its revenue stream by charging fees for property management, leasing, and advisory services. Significant partnerships with institutional investors and private equity firms also enhance its investment capabilities, allowing KW to leverage additional capital for its projects and further diversify its income sources.

Kennedy-Wilson Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in capital deployment, asset management growth, and expansion in the rental housing sector. Despite a GAAP EPS loss and minor setbacks in the European office portfolio, the overall performance and strategic advancements depict a positive trajectory for the company.
Q2-2025 Updates
Positive Updates
Record Capital Deployment
Deployed or committed $1.7 billion of new capital in Q2, driving total capital deployment to $2.6 billion for the first half of 2025. On track to exceed the $4.3 billion deployed in 2024.
Asset Management Growth
Assets under management grew to a record $30 billion, a 70% increase since the beginning of 2021. Fee-bearing capital reached a record $9.2 billion, with investment management fees up 39% in Q2.
Non-Core Asset Sales Success
Successfully executed over $600 million in non-core asset sales, generating $250 million in cash proceeds, exceeding the $200 million target.
Rental Housing Expansion
Focus remains on rental housing, representing 65% of assets under management. Acquisition of 4 communities totaling 1,200 units for $387 million and $1.3 billion in new rental housing construction loans originated.
Improved Financial Metrics
Baseline EBITDA for Q2 increased by 12% year-over-year to $117 million. Adjusted EBITDA totaled $147 million, up from $79 million in Q2 of last year.
Negative Updates
GAAP EPS Loss
GAAP EPS for the quarter totaled a loss of $0.05 per share compared to a loss of $0.43 per share in Q2 of last year.
Office Portfolio Decline
Same-property NOI for European office portfolio declined by 3% in the quarter due to a decline in occupancy at two U.K. assets.
Company Guidance
During the Kennedy-Wilson Second Quarter 2025 Earnings Call, the company reported strong performance metrics, surpassing their business plan expectations. They deployed or committed $1.7 billion of new capital in Q2, bringing total capital deployment to $2.6 billion for the first half of 2025, with a goal to exceed the $4.3 billion deployed in 2024. Noncore asset sales generated $250 million in cash proceeds, exceeding their $200 million target, and $170 million was used to reduce their unsecured line of credit. Assets under management reached a record $30 billion, a 70% increase since early 2021. Their stabilized investments generated $1.6 billion in revenue and $1.3 billion in stabilized NOI, with Kennedy-Wilson holding a 37% ownership interest in these assets. The rental housing sector, comprising 65% of their assets, is expected to grow to over 80% of AUM in the next two years. The company originated $1.3 billion in new rental housing construction loans, marking their second largest quarter in originations. Additionally, they acquired four multifamily communities totaling 1,200 units for $387 million. Their investment management fees grew by 39% in Q2 to a quarterly record of $36 million, with fee-bearing capital reaching $9.2 billion, a record level. The company plans to continue recycling capital into higher return investment opportunities and aims to reach $400 million in asset sales by year-end, having already generated $275 million. They anticipate robust rental growth due to a persistent housing shortage and declining new starts, with 40,000 apartment units positioned to benefit from favorable supply-demand dynamics.

Kennedy-Wilson Financial Statement Overview

Summary
Kennedy-Wilson's financial performance is mixed. The income statement shows declining revenue and profitability, with a negative net profit margin. The balance sheet indicates high leverage, posing financial stability risks. However, cash flow has improved significantly, with strong free cash flow growth and efficient cash management.
Income Statement
45
Neutral
Kennedy-Wilson's income statement shows a mixed performance. The TTM data reveals a significant decline in revenue and profitability, with a negative net profit margin of -9.11% and a negative EBIT margin. The gross profit margin remains relatively healthy at 57.10%, but the revenue growth rate is negative, indicating a decline in sales. The company has struggled to maintain profitability, as evidenced by the negative net income figures over the periods.
Balance Sheet
50
Neutral
The balance sheet reflects a high debt-to-equity ratio of 2.96, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity is negative, highlighting challenges in generating returns for shareholders. However, the equity ratio is stable, suggesting a reasonable proportion of equity financing relative to total assets.
Cash Flow
60
Neutral
Cash flow analysis shows improvement in free cash flow growth, with a notable increase of 95.86% in the TTM period. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is strong, suggesting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue527.00M531.40M562.60M540.00M453.60M454.00M
Gross Profit300.90M373.80M214.30M359.30M308.20M304.50M
EBITDA197.10M385.90M212.10M228.50M70.30M125.50M
Net Income-48.00M-33.00M-303.80M93.70M330.40M110.10M
Balance Sheet
Total Assets6.80B6.96B7.71B8.27B7.88B7.33B
Cash, Cash Equivalents and Short-Term Investments309.10M217.50M313.70M439.30M524.80M965.10M
Total Debt4.62B4.78B5.30B5.59B5.43B5.09B
Total Liabilities5.20B5.33B5.91B6.26B6.07B5.66B
Stockholders Equity1.56B1.60B1.76B1.96B1.78B1.64B
Cash Flow
Free Cash Flow56.80M-76.50M-168.30M-128.00M-169.50M-206.70M
Operating Cash Flow9.30M55.10M48.90M32.90M-30.30M-12.60M
Investing Cash Flow707.40M414.20M-11.70M-361.60M-1.04B590.80M
Financing Cash Flow-777.90M-565.50M-164.80M264.20M632.00M-206.60M

Kennedy-Wilson Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.81
Price Trends
50DMA
8.24
Negative
100DMA
7.66
Positive
200DMA
7.66
Positive
Market Momentum
MACD
-0.07
Negative
RSI
48.80
Neutral
STOCH
82.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KW, the sentiment is Neutral. The current price of 7.81 is below the 20-day moving average (MA) of 7.91, below the 50-day MA of 8.24, and above the 200-day MA of 7.66, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KW.

Kennedy-Wilson Risk Analysis

Kennedy-Wilson disclosed 37 risk factors in its most recent earnings report. Kennedy-Wilson reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Kennedy-Wilson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.78B-12.78%1.77%3.55%-36.05%
$287.44M18.482.21%-5.21%
$2.17B12.193.79%4.94%3.15%1.96%
$1.20B-10.97-6.89%2.74%-118.94%
$477.44M87.541.26%2.45%-29.26%
$1.22B-98.33-1.99%1.60%17.89%65.32%
$1.12B-2.97%6.03%-4.15%75.18%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KW
Kennedy-Wilson
7.96
-2.41
-23.24%
MMI
Marcus & Millichap
31.24
-6.51
-17.25%
FRPH
FRP Holdings
24.53
-4.93
-16.73%
HOUS
Anywhere Real Estate ate
10.71
6.93
183.33%
RMAX
Re/Max Holdings
8.70
-3.48
-28.57%
EXPI
eXp World Holdings
11.29
-1.33
-10.54%

Kennedy-Wilson Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Kennedy-Wilson Completes Redemption of Euro Notes
Neutral
Oct 3, 2025

On October 3, 2025, Kennedy Wilson Europe Real Estate Limited completed the redemption of its outstanding 3.25% euro-denominated Notes due November 2025, amounting to €300,000,000, plus accrued interest of €8,681,520. This financial maneuver was funded through proceeds from asset sales, existing liquidity, and a corporate revolving credit facility, indicating strategic financial management and potential implications for the company’s liquidity and investment strategy.

The most recent analyst rating on (KW) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Kennedy-Wilson stock, see the KW Stock Forecast page.

Business Operations and StrategyM&A Transactions
Kennedy-Wilson Acquires Toll Brothers’ Apartment Platform
Positive
Sep 18, 2025

On September 18, 2025, Kennedy Wilson announced an agreement to acquire Toll Brothers’ apartment development platform for $347 million, with the transaction expected to close in the fourth quarter of 2025. This acquisition will add over $5 billion of assets under management to Kennedy Wilson, including interests in 18 apartment and student housing properties and a pipeline of 29 development sites. The transaction will enhance Kennedy Wilson’s investment management platform and multifamily development capabilities, while Toll Brothers will focus on its core homebuilding business. The deal also establishes a strategic alliance between the two companies for future investment opportunities in rental and for-sale housing.

The most recent analyst rating on (KW) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Kennedy-Wilson stock, see the KW Stock Forecast page.

Financial Disclosures
Kennedy-Wilson Releases Interim Financial Statements
Neutral
Aug 20, 2025

On August 20, 2025, Kennedy Wilson Europe Real Estate Limited released its interim IFRS financial statements for the six-month period ending June 30, 2025. The financial report, which complies with covenants under its unsecured bonds, shows a decrease in rental income and hotel revenue compared to the same period in 2024. Despite this, the review by KPMG Chartered Accountants found no material misstatements in the financial statements, and the company continues to operate under the going concern basis of accounting.

The most recent analyst rating on (KW) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Kennedy-Wilson stock, see the KW Stock Forecast page.

Kennedy-Wilson’s Earnings Call Highlights Strategic Growth
Aug 12, 2025

Kennedy-Wilson’s recent earnings call was marked by a generally positive sentiment, highlighting the company’s strategic achievements and growth. Despite reporting a GAAP EPS loss, the call emphasized strong capital deployment, successful asset sales, and significant growth in assets under management. The expansion in rental housing and investment management fee growth further underscored the company’s robust performance, with positive developments outweighing the challenges faced in certain regions and sectors.

Kennedy-Wilson Reports Strong Q2 2025 Results
Aug 8, 2025

Kennedy-Wilson Holdings, Inc. is a prominent global real estate investment company with a diverse portfolio of real estate equity and debt investments, managing assets worth $30 billion across the United States, the UK, and Ireland. The company specializes in identifying opportunities and building value through market cycles, focusing on multifamily, office, and industrial properties.

Business Operations and StrategyPrivate Placements and Financing
Kennedy-Wilson Announces Redemption of Euro Notes
Neutral
Aug 7, 2025

On August 7, 2025, Kennedy Wilson Europe Real Estate Limited announced its decision to redeem all of its outstanding 3.250% euro-denominated Notes due 2025 on October 3, 2025. The redemption will involve the principal amount of €300,000,000 along with accrued interest totaling €8,681,520, after which no Notes will remain outstanding. This move signifies a strategic financial decision by the company, potentially impacting its financial structure and signaling a shift in its debt management strategy.

The most recent analyst rating on (KW) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Kennedy-Wilson stock, see the KW Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025