Kennedy-Wilson Holdings Inc.

Good afternoon and welcome to the Kennedy Wilson first quarter 2025 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Devin Bovsar, Head of Investor Relations. Please go ahead.

Thank you, and good morning. Thank you for joining us today. Today's call will be webcast live and will be archived for replay. Replay will be available by phone for one week and by webcast for three months. Please see the Investor Relations website for more information. With me today are Bill McMorrow, CEO, Matt Windisch, President, Justin Enbody, CFO, and Mike Pegler, President of Europe. On this call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. You can find a description of these items, along with the reconciliation of the most directly comparable GAAP financial measure and our first quarter 2025 earnings release, which is posted on the investor relations section of our website. Statements made during this call may include forward-looking statements Actual results may materially differ from forward-looking information discussed on this call due to the number of risks, uncertainties, and other factors indicated in reports and filings with the Securities and Exchange Commission. I would now like to turn the call over to our Chairman and CEO, Bill McMorrow.

Thanks, Devin, and thank you, everybody, for joining the call. Yesterday, we reported our results for the first quarter of 2025, reluctant reflecting a solid start to the year and continuing the momentum we saw in 2024. Justin will discuss our results in detail in just a moment. We deployed or committed approximately $1 billion of new capital in Q1, driven primarily by originations within our credit platform. Activity has picked up in Q2 with our current committed pipeline totaling $2.5 billion of loan originations and real estate equity acquisitions, all within the rental housing sector. That should drive our total capital deployment to $3.5 billion for the first half of 2025, compared to $4 billion for all of 2024. During the quarter, we saw strong fundamentals within our rental housing business and continued growth of our investment management fees, while making progress on a number of non-core asset sales, and recap initiatives, a meaningful portion of which should be completed in Q2. I will discuss this in further detail in just a moment. On today's call, I'll review our portfolio and the progress we've made across our 2025 strategic initiatives, and in particular, our asset sales and unsecured debt reductions. Starting with our portfolio, assets under management have grown by 26% in the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees to KW. Rental housing, our core sector, represents 66% of our assets under management, comprised of approximately 65,000 units, that we either have an equity ownership interest in or are financing. We expect this sector to grow to over 80% of our assets under management over the next three years. Real estate market fundamentals continue to see an improvement in Q1. In the U.S., real estate transaction volumes increased by 23%, and we have not seen any material changes in sentiment in Q2. We believe the best risk-adjusted returns are found in the rental housing sector, given the demand tailwinds driven by a housing shortage across all KW markets, single-family affordability issues, and declining new supply that began in 2024 through a combination of absorption and fewer new construction starts. This healthy backdrop was evident in our Q1 results where we were able to increase our same property multifamily occupancy to 95% and grew same property revenue by 3% and same property NOI by 4.3%. Capital deployment in Q1 was focused primarily on rental housing credit. We completed an additional $725 million in new loan originations, 100% of which relate to construction of new multifamily or student housing projects. Our debt business is on track to surpass $6 billion in new loan originations since we completed the purchase of the regional bank portfolio in the summer of 2023, making KW one of the top construction lenders in multifamily and the student housing sector. We also completed approximately $200 million of real estate acquisitions which related to the expansion of our U.S. apartment and European single-family rental and industrial platforms. Investment management growth continues to be a key initiative for KW. Fees grew by 17% in Q1 to $25 million. Over the last 15 years, we have extensively grown our group of strategic partners to include some of the world's largest institutional investors spanning North America, Asia, the Middle East, and Europe. Our longtime partners, who are very well capitalized, are actively looking to deploy capital with KW across both equity and debt investment opportunities at an increasing rate. Given our strong Q2 pipeline, I'm confident of our ability to reach our fee revenue growth targets of 20 to 25% annually. As market volatility has increased this year, we're also seeing corresponding increase in attractive investment opportunities. With our own capital base and the support of our major global strategic partners, we're well positioned to capitalize on any opportunities that may emerge. This approach has served us well over the last 35 years, where we have demonstrated our ability to navigate periods of uncertainty similar to what we see today. Shifting to our asset sale program, the disposal of identified assets is an important focus in the near term. In Q1, we progressed a number of sale and recap initiatives, keeping us on track to generating between $400 to $450 million of cash from asset sales and recaps by year end, including $150 to $200 million we currently expect to close by the end of Q2. These proceeds will be used to reduce our unsecured debt, including our KWE bonds due in November, which we have already paid down by $250 million over the last two years. We will also look to reduce our line of credit balance while also recycling capital into higher return opportunities in our investment management platform. We're entering the second quarter with an existing portfolio that is well positioned, a strong pipeline of activity centered around rental housing, simplifying our business through asset sales, de-levering the balance sheet, and increasing free cash flow. Importantly, we believe we have a best-in-class team that is well-equipped to drive growth across our core platforms in rental housing, credit, and industrial. With that, I'll turn the call over to Justin and Bonnie.