Kennedy-Wilson Holdings Inc.

Good day and welcome to the Kennedy Wilson Third Quarter 2025 Earnings Conference Call and Webcast. All participants will be in a 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 a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to hand 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. The 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 Embody, 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 third 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 and reports and filings with the Securities and Exchange Commission. As you may have seen in our Form 8K that we filed on Tuesday, the Board of Directors of the company have received a proposal letter from a consortium consisting of Bill McMorrow, our Chairman and CEO, and Fairfax Financial Holdings Limited about a potential take private transaction. The Board has formed a special committee to evaluate the proposal and its options. The company does not plan to provide any updates on an ongoing basis until there is a definitive transaction to announce or the process has been terminated. We will not be taking any questions with respect to this potential transaction or any related matters on today's call. I would now like to turn the call over to Bill McMorrin.

Thanks, Kevin. We reported our results for the third quarter of 2025 yesterday, which reflects the progress we achieved on expanding our investment management platform while executing on our non-core asset sale plan. Starting with our quarterly highlights, we saw improvement across several of our key financial metrics in the quarter, including adjusted EBITDA and adjusted net income compared to Q3 of last year. Driving our results was the growth in our investment management business with assets under management growing to $31 billion in Q3, which reflects an increase of 11% year over year. Fee-bearing capital grew to $9.7 billion, an increase of 10% from a year ago. Fee-bearing capital has now grown by approximately 20% per year over the last four years. Growth in our fee business this quarter was driven by capital deployment, supported by improving liquidity across the commercial real estate market. We deployed or committed approximately $900 million in Q3, driving total capital deployment to $3.5 billion year-to-date through September. Capital employment in the quarter was largely focused toward rental housing-related credit and equity investments. On the credit side, we originated another $600 million in new rental housing construction loans, driving total originations to $2.6 billion for the year. Our share of these loans is 2.5%. Since July of 2023, our credit team has surpassed $6 billion in new loan originations, while also successfully realizing over $2 billion of repayments from loans purchased as part of the PAC Western Bank loan portfolio transaction. On the credit side, our commingled US fund acquired three multifamily communities and an industrial property for a combined total of 173 million. In Europe, our investment activity remains centered around expanding our UK single-family rental platform with CPPIB. There remains a meaningful housing supply demand imbalance driven by population growth, as well as the cost of purchasing a new home. In Q3, we added $62 million in new investments which brings our total portfolio to 1,300 homes. Since launching in Q4 of last year, the platform has demonstrated good momentum, reaching approximately $585 million of committed capital relative to the initial $1.3 billion purchase target. In our co-investment portfolio, we recapitalized two existing U.S. multifamily joint ventures, reducing our ownership from 51% to 10%. We also sold a smaller, wholly owned multifamily asset built in 1988, located in suburban Salt Lake City. Our Q3 sale and recap activity generated approximately $200 million of cash to KW, $130 million of additional fee-bearing capital, and $30 million of realized gains. Year-to-date, we have generated $470 million of cash from our asset sales to KW and exceeded our target of $400 million for the year. We have achieved real progress on our initiatives over the last two years to grow our investment management business. In 2023, we added the credit team from a regional bank growing that platform from $4 billion to $10 billion in AUM today. In 2024, we launched our UK single-family rental platform, as I mentioned, targeting $1.3 billion in asset purchases, where we are approximately $0.50 committed against that target. And in September, we announced our pending acquisition of Toll Brothers Apartment Living platforms, including its in-house development team. The transaction will include a minority interest in 18 apartment communities and student housing properties, $3 billion of assets that Kennedy Wilson will manage on behalf of Toll Brothers, and a development pipeline, which would total approximately $3.6 billion in new development projects. This combination will create immediate scale for our investment management platform. First, the acquisition will immediately add $5 billion to assets under management and includes a portfolio of 21,000 existing and planned units. On a pro forma basis, our total AUM is expected to increase to $36 billion of which over 70% will be attributable to rental housing. Our national rental housing platform would grow to over 90,000 units, inclusive of the units we currently own, we are financing, or have in the development pipeline. Turning to the markets in general, we continue to see improvement in both the cost of capital and the availability of capital. lower borrowing costs and spreads, supportive of higher transaction levels. Rental fundamentals remain strong, as the structural undersupply of housing across all our markets remains a long-term tailwind, and renting continues to be significantly more affordable than buying. With that, I'd like to turn the call over to Justin and Boddy, our CFO.