10-Q 1 kw-20230930.htm 10-Q kw-20230930
000140810012/312023Q3false1200014081002023-01-012023-09-3000014081002023-10-31xbrli:shares00014081002023-09-30iso4217:USD00014081002022-12-310001408100us-gaap:RelatedPartyMember2023-09-300001408100us-gaap:RelatedPartyMember2022-12-310001408100us-gaap:MortgagesMember2023-09-300001408100us-gaap:MortgagesMember2022-12-310001408100us-gaap:UnsecuredDebtMember2023-09-300001408100us-gaap:UnsecuredDebtMember2022-12-310001408100us-gaap:SubordinatedDebtMember2023-09-300001408100us-gaap:SubordinatedDebtMember2022-12-310001408100us-gaap:SeriesAPreferredStockMember2023-09-30iso4217:USDxbrli:shares0001408100us-gaap:SeriesAPreferredStockMember2022-12-310001408100us-gaap:SeriesBPreferredStockMember2022-12-310001408100us-gaap:SeriesBPreferredStockMember2023-09-300001408100us-gaap:SeriesCPreferredStockMember2023-09-300001408100us-gaap:SeriesCPreferredStockMember2022-12-310001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001408100kw:InvestmentDebtMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001408100kw:InvestmentDebtMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001408100kw:RentalServicesMember2023-07-012023-09-300001408100kw:RentalServicesMember2022-07-012022-09-300001408100kw:RentalServicesMember2023-01-012023-09-300001408100kw:RentalServicesMember2022-01-012022-09-300001408100srt:HotelMember2023-07-012023-09-300001408100srt:HotelMember2022-07-012022-09-300001408100srt:HotelMember2023-01-012023-09-300001408100srt:HotelMember2022-01-012022-09-300001408100us-gaap:RelatedPartyMember2023-07-012023-09-300001408100us-gaap:RelatedPartyMember2022-07-012022-09-300001408100us-gaap:RelatedPartyMember2023-01-012023-09-300001408100us-gaap:RelatedPartyMember2022-01-012022-09-300001408100kw:InvestmentManagementAndPropertyServicesFeesMember2023-07-012023-09-300001408100kw:InvestmentManagementAndPropertyServicesFeesMember2022-07-012022-09-300001408100kw:InvestmentManagementAndPropertyServicesFeesMember2023-01-012023-09-300001408100kw:InvestmentManagementAndPropertyServicesFeesMember2022-01-012022-09-300001408100us-gaap:RealEstateMember2023-07-012023-09-300001408100us-gaap:RealEstateMember2022-07-012022-09-300001408100us-gaap:RealEstateMember2023-01-012023-09-300001408100us-gaap:RealEstateMember2022-01-012022-09-300001408100kw:OtherRevenueMember2023-07-012023-09-300001408100kw:OtherRevenueMember2022-07-012022-09-300001408100kw:OtherRevenueMember2023-01-012023-09-300001408100kw:OtherRevenueMember2022-01-012022-09-3000014081002023-07-012023-09-3000014081002022-07-012022-09-3000014081002022-01-012022-09-300001408100kw:CompensationAndRelatedMember2023-07-012023-09-300001408100kw:CompensationAndRelatedMember2022-07-012022-09-300001408100kw:CompensationAndRelatedMember2023-01-012023-09-300001408100kw:CompensationAndRelatedMember2022-01-012022-09-300001408100us-gaap:ForeignExchangeContractMember2023-07-012023-09-300001408100us-gaap:ForeignExchangeContractMember2022-07-012022-09-300001408100us-gaap:ForeignExchangeContractMember2023-01-012023-09-300001408100us-gaap:ForeignExchangeContractMember2022-01-012022-09-300001408100us-gaap:InterestRateSwapMember2023-07-012023-09-300001408100us-gaap:InterestRateSwapMember2022-07-012022-09-300001408100us-gaap:InterestRateSwapMember2023-01-012023-09-300001408100us-gaap:InterestRateSwapMember2022-01-012022-09-300001408100us-gaap:PreferredStockMember2023-06-300001408100us-gaap:CommonStockMember2023-06-300001408100us-gaap:AdditionalPaidInCapitalMember2023-06-300001408100us-gaap:RetainedEarningsMember2023-06-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001408100us-gaap:NoncontrollingInterestMember2023-06-3000014081002023-06-300001408100us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001408100us-gaap:NoncontrollingInterestMember2023-07-012023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001408100us-gaap:RetainedEarningsMember2023-07-012023-09-300001408100us-gaap:PreferredStockMember2023-09-300001408100us-gaap:CommonStockMember2023-09-300001408100us-gaap:AdditionalPaidInCapitalMember2023-09-300001408100us-gaap:RetainedEarningsMember2023-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001408100us-gaap:NoncontrollingInterestMember2023-09-300001408100us-gaap:PreferredStockMember2022-06-300001408100us-gaap:CommonStockMember2022-06-300001408100us-gaap:AdditionalPaidInCapitalMember2022-06-300001408100us-gaap:RetainedEarningsMember2022-06-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001408100us-gaap:NoncontrollingInterestMember2022-06-3000014081002022-06-300001408100us-gaap:PreferredStockMember2022-07-012022-09-300001408100us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001408100us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001408100us-gaap:InterestRateSwapMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001408100us-gaap:RetainedEarningsMember2022-07-012022-09-300001408100us-gaap:PreferredStockMember2022-09-300001408100us-gaap:CommonStockMember2022-09-300001408100us-gaap:AdditionalPaidInCapitalMember2022-09-300001408100us-gaap:RetainedEarningsMember2022-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001408100us-gaap:NoncontrollingInterestMember2022-09-3000014081002022-09-300001408100us-gaap:PreferredStockMember2022-12-310001408100us-gaap:CommonStockMember2022-12-310001408100us-gaap:AdditionalPaidInCapitalMember2022-12-310001408100us-gaap:RetainedEarningsMember2022-12-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001408100us-gaap:NoncontrollingInterestMember2022-12-310001408100us-gaap:PreferredStockMemberus-gaap:PreferredStockMember2023-01-012023-09-300001408100us-gaap:PreferredStockMember2023-01-012023-09-300001408100us-gaap:CommonStockMemberus-gaap:CommonStockMember2023-01-012023-09-300001408100us-gaap:AdditionalPaidInCapitalMemberus-gaap:CommonStockMember2023-01-012023-09-300001408100us-gaap:CommonStockMember2023-01-012023-09-300001408100us-gaap:CommonStockMember2023-01-012023-09-300001408100us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001408100us-gaap:NoncontrollingInterestMember2023-01-012023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001408100us-gaap:RetainedEarningsMember2023-01-012023-09-300001408100us-gaap:PreferredStockMember2021-12-310001408100us-gaap:CommonStockMember2021-12-310001408100us-gaap:AdditionalPaidInCapitalMember2021-12-310001408100us-gaap:RetainedEarningsMember2021-12-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001408100us-gaap:NoncontrollingInterestMember2021-12-3100014081002021-12-310001408100us-gaap:PreferredStockMember2022-01-012022-09-300001408100us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001408100us-gaap:CommonStockMember2022-01-012022-09-300001408100us-gaap:RetainedEarningsMember2022-01-012022-09-300001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001408100us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001408100us-gaap:InterestRateSwapMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001408100kw:DebtRedemptionMember2023-09-300001408100kw:DebtRedemptionMember2022-12-310001408100kw:WhollyOwnedMarketRatePropertiesMember2023-09-30xbrli:pure0001408100srt:MultifamilyMember2023-09-30kw:property0001408100kw:VintageHousingHoldingsMember2023-01-012023-09-30kw:segmentkw:investment0001408100kw:AccruedLiabilitiesAndOtherLiabilitiesMember2023-09-300001408100kw:AccruedLiabilitiesAndOtherLiabilitiesMember2022-12-310001408100us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2023-09-300001408100us-gaap:LeasesAcquiredInPlaceMember2023-01-012023-09-300001408100kw:WhollyOwnedMarketRateMultifamilyMember2023-01-012023-09-300001408100kw:WesternUnitedStatesPropertyMember2023-01-012023-09-300001408100kw:ConsolidatedMultifamilyMember2023-01-012023-09-300001408100srt:ParentCompanyMemberkw:ConsolidatedMultifamilyMember2023-01-012023-09-300001408100kw:UnitedKingdomAndIrelandMemberkw:OfficeAndRetailPropertyMember2023-01-012023-09-300001408100us-gaap:WestRegionMemberkw:UrbanMultifamilyMember2022-01-012022-09-300001408100us-gaap:RetailMemberkw:MountainWestMember2022-01-012022-09-300001408100country:GBsrt:OfficeBuildingMember2022-01-012022-09-300001408100kw:UnitedKingdomAndIrelandMemberkw:OfficeAndRetailPropertyMember2022-01-012022-09-300001408100srt:MinimumMemberkw:VariousComingledFundsAndSeparateAccountsMember2023-09-300001408100kw:VariousComingledFundsAndSeparateAccountsMembersrt:MaximumMember2023-09-300001408100srt:MultifamilyMemberus-gaap:WestRegionMember2023-09-300001408100kw:CommercialMemberus-gaap:WestRegionMember2023-09-300001408100us-gaap:WestRegionMembersrt:HotelMember2023-09-300001408100kw:FundsMemberus-gaap:WestRegionMember2023-09-300001408100kw:ResidentialAndOtherMemberus-gaap:WestRegionMember2023-09-300001408100us-gaap:WestRegionMember2023-09-300001408100srt:MultifamilyMembercountry:IE2023-09-300001408100country:IEkw:CommercialMember2023-09-300001408100country:IEsrt:HotelMember2023-09-300001408100country:IEkw:FundsMember2023-09-300001408100country:IEkw:ResidentialAndOtherMember2023-09-300001408100country:IE2023-09-300001408100srt:MultifamilyMembercountry:GB2023-09-300001408100country:GBkw:CommercialMember2023-09-300001408100country:GBsrt:HotelMember2023-09-300001408100country:GBkw:FundsMember2023-09-300001408100country:GBkw:ResidentialAndOtherMember2023-09-300001408100country:GB2023-09-300001408100srt:MultifamilyMember2023-09-300001408100kw:CommercialMember2023-09-300001408100srt:HotelMember2023-09-300001408100kw:FundsMember2023-09-300001408100kw:ResidentialAndOtherMember2023-09-300001408100srt:MultifamilyMemberus-gaap:WestRegionMember2022-12-310001408100kw:CommercialMemberus-gaap:WestRegionMember2022-12-310001408100us-gaap:WestRegionMembersrt:HotelMember2022-12-310001408100kw:FundsMemberus-gaap:WestRegionMember2022-12-310001408100kw:ResidentialAndOtherMemberus-gaap:WestRegionMember2022-12-310001408100us-gaap:WestRegionMember2022-12-310001408100srt:MultifamilyMembercountry:IE2022-12-310001408100country:IEkw:CommercialMember2022-12-310001408100country:IEsrt:HotelMember2022-12-310001408100country:IEkw:FundsMember2022-12-310001408100country:IEkw:ResidentialAndOtherMember2022-12-310001408100country:IE2022-12-310001408100srt:MultifamilyMembercountry:GB2022-12-310001408100country:GBkw:CommercialMember2022-12-310001408100country:GBsrt:HotelMember2022-12-310001408100country:GBkw:FundsMember2022-12-310001408100country:GBkw:ResidentialAndOtherMember2022-12-310001408100country:GB2022-12-310001408100srt:MultifamilyMember2022-12-310001408100kw:CommercialMember2022-12-310001408100srt:HotelMember2022-12-310001408100kw:FundsMember2022-12-310001408100kw:ResidentialAndOtherMember2022-12-310001408100kw:MultifamilyRecapitalizedToSeparateAccountPlatformMember2023-09-300001408100kw:MultifamilyRecapitalizedToVintageHousingHoldingsMember2023-09-300001408100us-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100srt:MultifamilyMemberus-gaap:WestRegionMember2023-01-012023-09-300001408100kw:CommercialMemberus-gaap:WestRegionMember2023-01-012023-09-300001408100kw:FundsMemberus-gaap:WestRegionMember2023-01-012023-09-300001408100kw:ResidentialAndOtherMemberus-gaap:WestRegionMember2023-01-012023-09-300001408100us-gaap:WestRegionMember2023-01-012023-09-300001408100srt:MultifamilyMembercountry:IE2023-01-012023-09-300001408100country:IEkw:CommercialMember2023-01-012023-09-300001408100country:IEkw:FundsMember2023-01-012023-09-300001408100country:IEkw:ResidentialAndOtherMember2023-01-012023-09-300001408100country:IE2023-01-012023-09-300001408100srt:MultifamilyMembercountry:GB2023-01-012023-09-300001408100country:GBkw:CommercialMember2023-01-012023-09-300001408100country:GBkw:FundsMember2023-01-012023-09-300001408100country:GBkw:ResidentialAndOtherMember2023-01-012023-09-300001408100country:GB2023-01-012023-09-300001408100srt:MultifamilyMember2023-01-012023-09-300001408100kw:CommercialMember2023-01-012023-09-300001408100kw:FundsMember2023-01-012023-09-300001408100kw:ResidentialAndOtherMember2023-01-012023-09-300001408100kw:MultifamilyInFundVIMember2023-01-012023-09-300001408100kw:MultifamilyInEuropeFundIIMember2023-01-012023-09-300001408100kw:SocialImpactRealEstateFundManagerMember2023-01-012023-09-300001408100kw:CoWorkingOfficeBuildingMember2023-09-300001408100kw:JointVentureMemberus-gaap:EquityMethodInvestmentsMember2023-01-012023-09-300001408100kw:JointVentureMemberus-gaap:EquityMethodInvestmentsMember2022-01-012022-09-300001408100kw:VintageHousingHoldingsMember2023-09-300001408100kw:VintageHousingHoldingsMember2022-12-310001408100us-gaap:EquityMethodInvestmentsMember2023-09-30kw:jointVenture0001408100kw:EquityMethodInvestmentsClosedEndFundsMember2023-09-30kw:fund0001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-09-300001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-09-300001408100us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001408100us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100us-gaap:EquityMethodInvestmentsMember2022-12-310001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-07-012023-09-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-012022-09-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-01-012023-09-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-09-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001408100us-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberus-gaap:MeasurementInputCapRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberus-gaap:MeasurementInputDiscountRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:FairValueInputsLevel3Membersrt:MultifamilyMemberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberus-gaap:MeasurementInputCapRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberus-gaap:MeasurementInputDiscountRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:FairValueInputsLevel3Membersrt:OfficeBuildingMemberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMembersrt:MaximumMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMembersrt:IndustrialPropertyMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMembersrt:MaximumMembersrt:IndustrialPropertyMember2023-09-300001408100srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:IndustrialPropertyMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMembersrt:IndustrialPropertyMember2023-09-300001408100srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMembersrt:IndustrialPropertyMember2023-09-300001408100us-gaap:FairValueInputsLevel3Memberkw:ValuationTechniqueDirectCapitalizationMemberus-gaap:MeasurementInputCapRateMembersrt:MaximumMembersrt:IndustrialPropertyMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCapRateMembersrt:RetailSiteMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:RetailSiteMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:HotelMemberus-gaap:MeasurementInputCapRateMember2023-09-300001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:HotelMemberus-gaap:MeasurementInputDiscountRateMember2023-09-300001408100srt:MinimumMemberus-gaap:MeasurementInputCreditSpreadMember2023-09-300001408100srt:MaximumMemberus-gaap:MeasurementInputCreditSpreadMember2023-09-300001408100kw:ForeignExchangeContractOneMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-30iso4217:EUR0001408100kw:ForeignExchangeContractOneMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100kw:ForeignExchangeContractOneMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractOneMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractTwoMemberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:ForeignExchangeContractTwoMemberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:ForeignExchangeContractTwoMemberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-01-012023-09-300001408100us-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberkw:ForeignExchangeContractTwoMemberkw:KennedyWilsonEuropeRealEstatePLLCMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100kw:ForeignExchangeContractThreeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100kw:ForeignExchangeContractThreeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-01-012023-09-300001408100kw:ForeignExchangeContractThreeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberkw:KennedyWilsonEuropeRealEstatePLLCMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractFourMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-30iso4217:GBP0001408100kw:ForeignExchangeContractFourMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100kw:ForeignExchangeContractFourMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractFourMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractFiveMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100kw:ForeignExchangeContractFiveMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100kw:ForeignExchangeContractFiveMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembercurrency:EUR2023-09-300001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembercurrency:GBP2023-09-300001408100kw:InterestRateSwapsAndCapsMemberus-gaap:NondesignatedMember2023-01-012023-09-300001408100us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-09-300001408100kw:InterestRateSwapsAndCapsMemberus-gaap:NondesignatedMember2022-01-012022-09-300001408100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-09-300001408100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2022-12-310001408100us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300001408100us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-3100014081002023-09-302023-09-300001408100kw:KennedyWilsonMember2023-01-012023-09-300001408100kw:InterestRateCapAndSwapsMember2023-09-300001408100kw:InterestRateCapAndSwapsMember2022-12-310001408100kw:HedgeAssetsMember2023-09-300001408100kw:HedgeAssetsMember2022-12-310001408100us-gaap:FurnitureAndFixturesMember2023-09-300001408100us-gaap:FurnitureAndFixturesMember2022-12-310001408100us-gaap:AboveMarketLeasesMember2023-09-300001408100us-gaap:AboveMarketLeasesMember2022-12-310001408100us-gaap:RealEstateMember2023-01-012023-09-30kw:lease0001408100us-gaap:LandMember2023-01-012023-09-300001408100srt:MinimumMember2023-09-300001408100srt:MaximumMember2023-09-300001408100us-gaap:MortgagesMemberkw:MortgageLoansSecuredByMultiFamilyPropertiesMemberus-gaap:WestRegionMember2023-09-300001408100us-gaap:MortgagesMemberkw:MortgageLoansSecuredByMultiFamilyPropertiesMemberus-gaap:WestRegionMember2022-12-310001408100us-gaap:MortgagesMembercountry:GBkw:MortgageLoansSecuredByCommercialPropertiesMember2023-09-300001408100us-gaap:MortgagesMembercountry:GBkw:MortgageLoansSecuredByCommercialPropertiesMember2022-12-310001408100us-gaap:MortgagesMembercountry:IEkw:MortgageLoansSecuredByCommercialPropertiesMember2023-09-300001408100us-gaap:MortgagesMembercountry:IEkw:MortgageLoansSecuredByCommercialPropertiesMember2022-12-310001408100us-gaap:MortgagesMemberkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:WestRegionMember2023-09-300001408100us-gaap:MortgagesMemberkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:WestRegionMember2022-12-310001408100us-gaap:MortgagesMembercountry:ESkw:MortgageLoansSecuredByCommercialPropertiesMember2023-09-300001408100us-gaap:MortgagesMembercountry:ESkw:MortgageLoansSecuredByCommercialPropertiesMember2022-12-31kw:loan0001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-09-300001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-12-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2023-09-300001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2022-12-310001408100kw:A4750SeniorNotesDue2030Memberus-gaap:SeniorNotesMember2023-09-300001408100kw:A4750SeniorNotesDue2030Memberus-gaap:SeniorNotesMember2022-12-310001408100kw:A5000SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2023-09-300001408100kw:A5000SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2022-12-310001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2020-03-250001408100srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberkw:SecuredOvernightFinancingRateSOFRMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2023-06-122023-06-120001408100us-gaap:RevolvingCreditFacilityMemberkw:SecuredOvernightFinancingRateSOFRMemberus-gaap:LineOfCreditMembersrt:MaximumMemberkw:ARFacilityMember2023-06-122023-06-120001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2023-06-122023-06-120001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2023-09-300001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2023-01-012023-09-300001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2021-02-110001408100kw:A5000SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2021-02-110001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2021-03-150001408100kw:A5000SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2021-03-150001408100kw:A4750SeniorNotesDue2030Memberus-gaap:SeniorNotesMember2021-08-230001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029And5000SeniorNotesDue2031Member2021-02-112021-02-110001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029And5000SeniorNotesDue2031Member2021-02-110001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029And5000SeniorNotesDue2031Membersrt:MaximumMember2021-02-112021-02-110001408100us-gaap:SeniorNotesMember2021-02-110001408100us-gaap:SeniorNotesMember2023-09-300001408100us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberkw:ARFacilityMember2020-03-252020-03-250001408100kw:EuroMediumTermNoteMemberus-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100kw:EuroMediumTermNoteMemberus-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2022-12-310001408100us-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-09-300001408100us-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2022-12-310001408100kw:KennedyWilsonEuropeRealEstatePLLCMember2023-01-012023-09-300001408100us-gaap:PrivatePlacementMemberus-gaap:PreferredStockMember2023-06-162023-06-160001408100us-gaap:PrivatePlacementMember2023-06-162023-06-1600014081002023-06-160001408100us-gaap:PrivatePlacementMemberus-gaap:PreferredStockMember2022-03-082022-03-080001408100us-gaap:PrivatePlacementMember2022-03-082022-03-0800014081002022-03-080001408100kw:ATMProgramMember2022-05-310001408100us-gaap:RestrictedStockMember2022-01-012022-09-300001408100us-gaap:RestrictedStockMember2023-01-012023-09-3000014081002020-11-0300014081002020-11-040001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2022-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2022-12-310001408100us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2023-01-012023-09-300001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-09-300001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2023-09-300001408100us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001408100us-gaap:AociAttributableToNoncontrollingInterestMember2023-09-300001408100kw:RentalServicesMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001408100kw:RentalServicesMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-07-012023-09-300001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2023-07-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMembersrt:HotelMember2023-07-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2023-07-012023-09-300001408100us-gaap:CorporateNonSegmentMembersrt:HotelMember2023-07-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMember2023-07-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:InvestmentManagementFeesMember2023-07-012023-09-300001408100us-gaap:CorporateNonSegmentMemberkw:InvestmentManagementFeesMember2023-07-012023-09-300001408100kw:InvestmentManagementFeesMember2023-07-012023-09-300001408100us-gaap:RealEstateMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001408100us-gaap:RealEstateMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-07-012023-09-300001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2023-07-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:OtherRevenueMember2023-07-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2023-07-012023-09-300001408100us-gaap:CorporateNonSegmentMemberkw:OtherRevenueMember2023-07-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-07-012023-09-300001408100us-gaap:CorporateNonSegmentMember2023-07-012023-09-300001408100kw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001408100kw:CompensationAndRelatedMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-07-012023-09-300001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2023-07-012023-09-300001408100kw:RentalServicesMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001408100kw:RentalServicesMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-09-300001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2023-01-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMembersrt:HotelMember2023-01-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2023-01-012023-09-300001408100us-gaap:CorporateNonSegmentMembersrt:HotelMember2023-01-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMember2023-01-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:InvestmentManagementFeesMember2023-01-012023-09-300001408100us-gaap:CorporateNonSegmentMemberkw:InvestmentManagementFeesMember2023-01-012023-09-300001408100kw:InvestmentManagementFeesMember2023-01-012023-09-300001408100us-gaap:RealEstateMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001408100us-gaap:RealEstateMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-09-300001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2023-01-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:OtherRevenueMember2023-01-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2023-01-012023-09-300001408100us-gaap:CorporateNonSegmentMemberkw:OtherRevenueMember2023-01-012023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-09-300001408100us-gaap:CorporateNonSegmentMember2023-01-012023-09-300001408100kw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001408100kw:CompensationAndRelatedMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-09-300001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2023-01-012023-09-300001408100kw:RentalServicesMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001408100kw:RentalServicesMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-07-012022-09-300001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMembersrt:HotelMember2022-07-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2022-07-012022-09-300001408100us-gaap:CorporateNonSegmentMembersrt:HotelMember2022-07-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMember2022-07-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:InvestmentManagementFeesMember2022-07-012022-09-300001408100us-gaap:CorporateNonSegmentMemberkw:InvestmentManagementFeesMember2022-07-012022-09-300001408100kw:InvestmentManagementFeesMember2022-07-012022-09-300001408100us-gaap:RealEstateMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001408100us-gaap:RealEstateMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-07-012022-09-300001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:OtherRevenueMember2022-07-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2022-07-012022-09-300001408100us-gaap:CorporateNonSegmentMemberkw:OtherRevenueMember2022-07-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-07-012022-09-300001408100us-gaap:CorporateNonSegmentMember2022-07-012022-09-300001408100kw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001408100kw:CompensationAndRelatedMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-07-012022-09-300001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300001408100kw:RentalServicesMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001408100kw:RentalServicesMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-01-012022-09-300001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMembersrt:HotelMember2022-01-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2022-01-012022-09-300001408100us-gaap:CorporateNonSegmentMembersrt:HotelMember2022-01-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMember2022-01-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:InvestmentManagementFeesMember2022-01-012022-09-300001408100us-gaap:CorporateNonSegmentMemberkw:InvestmentManagementFeesMember2022-01-012022-09-300001408100kw:InvestmentManagementFeesMember2022-01-012022-09-300001408100us-gaap:RealEstateMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001408100us-gaap:RealEstateMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-01-012022-09-300001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMemberkw:OtherRevenueMember2022-01-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2022-01-012022-09-300001408100us-gaap:CorporateNonSegmentMemberkw:OtherRevenueMember2022-01-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-01-012022-09-300001408100us-gaap:CorporateNonSegmentMember2022-01-012022-09-300001408100kw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001408100kw:CompensationAndRelatedMemberus-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-01-012022-09-300001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2023-09-300001408100kw:ConsolidatedSegmentMemberus-gaap:OperatingSegmentsMember2022-12-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-09-300001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2022-12-310001408100us-gaap:CorporateNonSegmentMember2023-09-300001408100us-gaap:CorporateNonSegmentMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2023-09-300001408100srt:ConsolidationEliminationsMember2023-09-300001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2023-09-300001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2023-09-300001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-09-300001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2023-09-300001408100us-gaap:MortgagesMembersrt:ConsolidationEliminationsMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMemberus-gaap:UnsecuredDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:SubsidiaryIssuerMember2023-09-300001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:GuarantorSubsidiariesMember2023-09-300001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:NonGuarantorSubsidiariesMember2023-09-300001408100srt:ConsolidationEliminationsMemberus-gaap:UnsecuredDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMemberus-gaap:SubordinatedDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMemberus-gaap:SubordinatedDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMemberus-gaap:SubordinatedDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMemberus-gaap:SubordinatedDebtMember2023-09-300001408100srt:ConsolidationEliminationsMemberus-gaap:SubordinatedDebtMember2023-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2022-12-310001408100srt:ConsolidationEliminationsMember2022-12-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2022-12-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2022-12-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2022-12-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2022-12-310001408100us-gaap:MortgagesMembersrt:ConsolidationEliminationsMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMemberus-gaap:UnsecuredDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:SubsidiaryIssuerMember2022-12-310001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:GuarantorSubsidiariesMember2022-12-310001408100srt:ReportableLegalEntitiesMemberus-gaap:UnsecuredDebtMembersrt:NonGuarantorSubsidiariesMember2022-12-310001408100srt:ConsolidationEliminationsMemberus-gaap:UnsecuredDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMemberus-gaap:SubordinatedDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMemberus-gaap:SubordinatedDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMemberus-gaap:SubordinatedDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMemberus-gaap:SubordinatedDebtMember2022-12-310001408100srt:ConsolidationEliminationsMemberus-gaap:SubordinatedDebtMember2022-12-310001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2023-07-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2023-07-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-07-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2023-07-012023-09-300001408100srt:ConsolidationEliminationsMember2023-07-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2023-01-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2023-01-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-01-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2023-01-012023-09-300001408100srt:ConsolidationEliminationsMember2023-01-012023-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2022-07-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2022-07-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2022-07-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2022-07-012022-09-300001408100srt:ConsolidationEliminationsMember2022-07-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:ParentCompanyMember2022-01-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:SubsidiaryIssuerMember2022-01-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2022-01-012022-09-300001408100srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2022-01-012022-09-300001408100srt:ConsolidationEliminationsMember2022-01-012022-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
  
(Mark One)                        
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission file number 001-33824
Kennedy-Wilson Holdings, Inc.
(Exact name of Registrant as specified in its charter)

Delaware 26-0508760
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
151 S El Camino Drive
Beverly Hills, CA 90212
(Address of principal executive offices)
Registrant’s telephone number, including area code:
(310) 887-6400

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $.0001 par valueKWNYSE
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See definition of “large accelerated filer," "accelerated filer," "smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filer
Non-accelerated filer  Smaller reporting company
Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No
The number of shares of common stock outstanding as of October 31, 2023 was 139,390,837.


Index
 



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 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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,” "may," “anticipate,” “estimate,” “intend,” “could,” “plan,” “expect,” “project” or the negative of these, as well as similar expressions, are intended to identify forward-looking statements.
Forward-looking 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 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 this quarterly report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022. 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.
Non-GAAP Measures and Certain Definitions

    In addition to the results reported in accordance with U.S. generally accepted accounting principles ("GAAP") included within this report, Kennedy Wilson has provided certain information, which includes non-GAAP financial measures (including Adjusted Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"), Adjusted Net Income (Loss) and Net Operating Income, as defined below). Such information is reconciled to its closest GAAP measure in accordance with the rules of the SEC, and such reconciliations are included within this report. These measures may contain cash and non-cash 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.
    “Adjusted EBITDA” represents net income before interest expense, loss (gain) on early extinguishment of debt, the Company's share of interest expense included in unconsolidated investments, depreciation and amortization, the Company's share of depreciation and amortization included in unconsolidated investments, provision for (benefit from) income taxes, the Company's share of taxes included in unconsolidated investments, share-based compensation expense for the Company and EBITDA attributable to noncontrolling interests. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP measures” for a reconciliation of Adjusted EBITDA to net income as reported under GAAP. The Company's management uses Adjusted EBITDA to analyze its business because it adjusts net income for items the Company believes do not accurately reflect the nature of its 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, the Company believes Adjusted EBITDA is useful to investors to assist them in getting a more accurate picture of the Company's results from operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when analyzing its 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, the Company's 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 the Company's 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 the Company's ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.  
i

    “Adjusted Net Income (Loss)” represents net income (loss) before depreciation and amortization, the Company'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 and preferred dividends. 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 Adjusted Net Income to net income as reported under GAAP. The Company's management uses Adjusted Net Income to analyze its business because it adjusts net income for items the Company believes do not accurately reflect the nature of its 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, the Company believes Adjusted Net Income is useful to investors to assist them in getting a more accurate picture of the Company's results from operations. However, Adjusted Net Income is not a recognized measurement under GAAP and when analyzing its operating performance, readers should use Adjusted Net Income in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, the Company's presentation of Adjusted Net Income may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted Net Income 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.

“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.

“Co-Investment Portfolio NOI” refers to the Company's share of NOI that is generated from the properties in which the Company has an ownership interest and that are held in the Company's Co-Investment Portfolio business segment. 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 Co-Investment Portfolio NOI to net income as reported under GAAP.
    “Consolidated Portfolio NOI” refers to the NOI that is generated from the properties that the Company has an ownership interest in and are held in the Company's Consolidated Portfolio business segment. 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 Consolidated Portfolio NOI to net income as reported under GAAP.
"Equity partners" refers to non-wholly-owned subsidiaries that are consolidated in the Company's financial statements under U.S. GAAP and third-party equity providers.
"Fee Bearing Capital" represents total third-party committed or invested capital that the Company manages in its joint-ventures, commingled funds and debt platform that entitle the Company 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.
“KWH,” "KW," “Kennedy Wilson,” the "Company," "we," "our," or "us" refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries. The consolidated financial statements of the Company include the results of the Company's consolidated subsidiaries.
    “KWE” refers to Kennedy Wilson Europe Real Estate Limited.  
    "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. The Company's management uses net operating income to assess and compare the performance of its 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 the Company's properties resulting from its value-add initiatives or changing market conditions. Management believes that net operating income reflects the core revenues and costs of operating its properties and is better suited to evaluate trends in occupancy and lease rates. 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 Net Operating Income to net income as reported under GAAP.
    "Noncontrolling interests" represents the portion of equity ownership in a consolidated subsidiary not attributable to Kennedy Wilson.
ii

“Performance allocations” relates to allocations to the Company of Kennedy Wilson's co-investments it invests in and manages based on the cumulative performance of the fund or investment vehicle, as applicable, and are subject to preferred return thresholds of the limited partners.

“Performance allocation compensation” - the compensation committee of the Company’s board of directors approved and reserved between twenty percent (20%) and thirty-five percent (35%) of any performance allocation earned by certain commingled funds and separate account investments to be allocated to certain non-NEO employees of the Company.

“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.
"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 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, high inflation and central banks raising interest rates to curtail high inflation continue to fuel recessionary fears). 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.
iii

PART I
FINANCIAL INFORMATION
 
Item 1.Financial Statements (Unaudited)

Kennedy-Wilson Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in millions, except share and per share amounts)
September 30,
2023
December 31,
2022
Assets
Cash and cash equivalents$330.9 $439.3 
Accounts receivable, net (including $15.4 and $13.9 of related party)
47.4 40.8 
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of $922.1 and $882.2)
4,849.6 5,188.1 
Unconsolidated investments (including $2,089.2 and $2,093.7 at fair value)
2,232.7 2,238.1 
Loan purchases and originations, net of allowance for credit losses238.0 149.4 
Other assets, net211.7 216.1 
Total assets(1)
$7,910.3 $8,271.8 
Liabilities
Accounts payable$14.0 $16.2 
Accrued expenses and other liabilities593.1 658.2 
Mortgage debt2,821.2 3,018.0 
KW unsecured debt1,928.9 2,062.6 
KWE unsecured bonds500.8 506.4 
Total liabilities(1)
5,858.0 6,261.4 
Equity
Series A cumulative preferred Stock, $0.0001 par value, $1,000 per share liquidation preference, 1,000,000 shares authorized, 300,000 shares outstanding as of September 30, 2023 and December 31, 2022, Series B cumulative preferred Stock, $0.0001 par value, $1,000 per share liquidation preference, 1,000,000 shares authorized, 300,000 shares outstanding as of September 30, 2023 and December 31, 2022 and Series C cumulative preferred Stock, $0.0001 par value, $1,000 per share liquidation preference, 1,000,000 shares authorized, 200,000 shares outstanding as of September 30, 2023.
790.5 592.5 
Common stock, $0.0001 par value per share, 200,000,000 authorized, 139,390,837 and 137,790,768 shares issued and outstanding as of September 30, 2023 and December 31, 2022
  
Additional paid-in capital1,717.7 1,679.5 
(Accumulated deficit) retained earnings(72.3)122.1 
 Accumulated other comprehensive loss(427.3)(430.1)
Total Kennedy-Wilson Holdings, Inc. shareholders' equity2,008.6 1,964.0 
Noncontrolling interests43.7 46.4 
Total equity2,052.3 2,010.4 
Total liabilities and equity$7,910.3 $8,271.8 


(1) The assets and liabilities as of September 30, 2023 include $155.8 million (including cash held by consolidated investments of $5.3 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $120.5 million) and $76.0 million (including investment debt of $52.6 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2022 include $169.8 million (including cash held by consolidated investments of $6.1 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $137.8 million) and $82.4 million (including investment debt of $51.2 million), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company.

See accompanying notes to consolidated financial statements.
1

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Revenue
Rental$102.4 $110.9 $315.6 $324.4 
Hotel16.6 14.0 42.7 33.2 
Investment management fees (includes $15.1, $11.2, $37.8, $33.5 of related party fees)
15.5 11.2 45.6 33.5 
Loan6.1 3.0 14.5 8.0 
Other0.7 0.5 1.6 1.3 
Total revenue141.3 139.6 420.0 400.4 
(Loss) income from unconsolidated investments
Principal co-investments(56.1)30.3 (33.4)147.9 
Performance allocations(17.9)(18.0)(36.3)0.5 
Total (loss) income from unconsolidated investments(74.0)12.3 (69.7)148.4 
Gain on sale of real estate, net30.4 37.0 138.6 50.8 
Expenses
Rental38.4 38.6 113.7 110.7 
Hotel9.8 8.6 27.4 20.5 
Compensation and related (including $7.3, $7.3, $21.7, $21.7 of share-based compensation)
31.1 33.8 98.7 103.7 
Performance allocation compensation(6.0)(6.6)(5.5)3.2 
General and administrative8.4 9.2 25.5 26.5 
Depreciation and amortization38.8 46.1 118.3 132.7 
Total expenses120.5 129.7 378.1 397.3 
Interest expense(64.2)(57.1)(192.5)(160.8)
Loss on early extinguishment of debt (1.3)(1.6)(2.4)
Other income3.2 36.7 24.5 46.1 
(Loss) income before benefit from (provision for) income taxes(83.8)37.5 (58.8)85.2 
Benefit from (provision for) income taxes19.7 (13.9)13.3 (22.5)
Net (loss) income (64.1)23.6 (45.5)62.7 
Net (income) loss attributable to the noncontrolling interests(17.3)0.7 (21.4)0.5 
 Preferred dividends(10.8)(7.9)(27.1)(21.0)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(92.2)$16.4 $(94.0)$42.2 
Basic (loss) earnings per share
(Loss) earnings per share$(0.66)$0.12 $(0.67)$0.31 
Weighted average shares outstanding139,391,316 136,840,874 138,914,964 136,832,102 
Diluted (loss) earnings per share
(Loss) earnings per share$(0.66)$0.12 $(0.67)$0.31 
Weighted average shares outstanding139,391,316 137,078,495 138,914,964 137,136,352 
Dividends declared per common share$0.24 $0.24 $0.72 $0.72 

See accompanying notes to consolidated financial statements.
2

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited)
(Dollars in millions)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Net (loss) income $(64.1)$23.6 $(45.5)$62.7 
Other comprehensive (loss) income, net of tax:
Unrealized foreign currency translation loss(32.2)(61.4)(6.4)(149.7)
Amounts reclassified from AOCI (0.8) (0.8)
Unrealized foreign currency derivative contracts gain4.7 29.9 9.9 60.0 
Unrealized gain on interest rate swaps 1.3  5.2 
Total other comprehensive (loss) income for the period(27.5)(31.0)3.5 (85.3)
Comprehensive loss (91.6)(7.4)(42.0)(22.6)
Comprehensive (income) loss attributable to noncontrolling interests(17.1)2.3 (22.1)4.5 
Comprehensive loss attributable to Kennedy-Wilson Holdings, Inc.$(108.7)$(5.1)$(64.1)$(18.1)

See accompanying notes to consolidated financial statements.

3

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
(Unaudited)
(Dollars in millions, except share amounts)
Three Months Ended September 30, 2023
 Preferred StockCommon StockAdditional
Paid-in Capital
Retained Earnings (Accumulated Deficit)Accumulated
Other
Comprehensive Loss
Noncontrolling Interests 
SharesAmountSharesAmountTotal
Balance at June 30, 2023800,000 $790.5 139,390,837 $ $1,710.5 $53.4 $(400.0)$46.2 $2,200.6 
At-the-market equity offering program costs— — — — (0.1)— — — (0.1)
Share-based compensation— — — — 7.3 — — — 7.3 
Other comprehensive (loss) income:
Unrealized foreign currency translation loss, net of tax— — — — — — (32.0)(0.2)(32.2)
Unrealized foreign currency derivative contract gain, net of tax— — — — — — 4.7 — 4.7 
Common stock dividends— — — — — (33.5)— — (33.5)
Preferred stock dividends— — — — — (10.8)— — (10.8)
Net (loss) income — — — — — (81.4)— 17.3 (64.1)
Contributions from noncontrolling interests— — — — — — — 0.1 0.1 
Distributions to noncontrolling interests— — — — — — — (19.7)(19.7)
Balance at September 30, 2023800,000 $790.5 139,390,837 $ $1,717.7 $(72.3)$(427.3)$43.7 $2,052.3 
4

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
(Unaudited)
(Dollars in millions, except share amounts)
Three Months Ended September 30, 2022
 Preferred StockCommon StockAdditional
Paid-in Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
Noncontrolling Interests 
SharesAmountSharesAmountTotal
Balance at June 30, 2022600,000 $593.2 137,790,768 $ $1,665.3 $149.2 $(441.5)$24.2 $1,990.4 
Preferred stock issuance— (0.7)— — — — — — (0.7)
At-the-market equity offering program costs— — — — (0.3)— — — (0.3)
Share-based compensation— — — — 7.3 — — — 7.3 
Other comprehensive (loss) income:
Unrealized foreign currency translation loss, net of tax— — — — — — (59.8)(1.6)(61.4)
Unrealized foreign currency derivative contract gain, net of tax— — — — — — 29.9 — 29.9 
Unrealized gain on interest rate swaps, net of tax— — — — — — 0.5 — 0.5 
Common stock dividends— — — — — (33.1)— — (33.1)
Preferred stock dividends— — — — — (7.9)— — (7.9)
Net income— — — — — 24.3 — (0.7)23.6 
Contributions from noncontrolling interests— — — — — — — 4.2 4.2 
Distributions to noncontrolling interests— — — — — — — (9.3)(9.3)
Balance at September 30, 2022600,000 $592.5 137,790,768 $ $1,672.3 $132.5 $(470.9)$16.8 $1,943.2 
5

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
(Unaudited)
(Dollars in millions, except share amounts)
Nine Months Ended September 30, 2023
 Preferred StockCommon StockAdditional
Paid-in Capital
Retained Earnings (Accumulated Deficit)Accumulated
Other
Comprehensive Loss
Noncontrolling Interests 
SharesAmountSharesAmountTotal
Balance at December 31, 2022600,000 $592.5 137,790,768 $ $1,679.5 $122.1 $(430.1)$46.4 $2,010.4 
Preferred stock issuance, net of issuance costs200,000 198.0 — — —  — — 198.0 
Issuance of common stock, net of issuance costs— — 1,690,743 — 29.9 — — — 29.9 
Restricted stock grants (RSG) — — 955,756 — — — — — — 
Shares retired due to RSG vesting— — (1,046,430)— (13.4)— — — (13.4)
Share-based compensation— — — — 21.7 — — — 21.7 
Other comprehensive income (loss):
Unrealized foreign currency translation loss, net of tax— — — — — — (7.1)0.7 (6.4)
Unrealized foreign currency derivative contract gain, net of tax— — — — — — 9.9 — 9.9 
Common stock dividends— — — — — (100.4)— — (100.4)
Preferred stock dividends— — — — — (27.1)— — (27.1)
Net (loss) income— — — — — (66.9)— 21.4 (45.5)
Contributions from noncontrolling interests— — — — — — — 1.0 1.0 
Distributions to noncontrolling interests— — — — — — — (25.8)(25.8)
Balance at September 30, 2023800,000 $790.5 139,390,837 $ $1,717.7 $(72.3)$(427.3)$43.7 $2,052.3 




















6

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
(Unaudited)
(Dollars in millions, except share amounts)
Nine Months Ended September 30, 2022
 Preferred StockCommon StockAdditional
Paid-in Capital
Retained Earnings Accumulated
Other
Comprehensive Loss
Noncontrolling Interests 
(Dollars in millions, except share amounts)SharesAmountSharesAmountTotal
Balance at December 31, 2021300,000 $295.2 137,955,479 $ $1,679.6 $192.4 $(389.6)$26.3 $1,803.9 
Preferred stock issuance, net of issuance costs 300,000 297.3 — — — — — — 297.3 
At-the-market equity offering program costs— — — — (0.7)— — — (0.7)
Restricted stock grants (RSG) — — 1,221,362 — — — — — — 
Shares retired due to RSG vesting— — (796,756)— (18.6)— — — (18.6)
Shares retired due to common stock repurchase program— — (589,317)— (9.7)(2.9)— — (12.6)
Share-based compensation— — — — 21.7 — — — 21.7 
Other comprehensive (loss) income:
Unrealized foreign currency translation loss, net of tax— — — — — — (145.7)(4.0)(149.7)
Unrealized foreign currency derivative contract gain, net of tax— — — — — — 60.0 — 60.0 
Unrealized gain on interest rate swaps, net of tax— — — — — — 4.4 — 4.4 
Common stock dividends— — — — — (99.2)— — (99.2)
Preferred stock dividends— — — — — (21.0)— — (21.0)
Net income— — — — — 63.2 — (0.5)62.7 
Contributions from noncontrolling interests— — — — — — — 5.6 5.6 
Distributions to noncontrolling interests— — — — — — — (10.6)(10.6)
Balance at September 30, 2022600,000 $592.5 137,790,768 $ $1,672.3 $132.5 $(470.9)$16.8 $1,943.2 

See accompanying notes to consolidated financial statements.
7

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
Nine Months Ended September 30,
20232022
Cash flows from operating activities:
Net (loss) income$(45.5)$62.7 
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Gain on sale of real estate, net(138.6)(50.8)
Depreciation and amortization118.3 132.7 
Above/below market and straight-line rent amortization(5.6)(6.5)
Uncollectible lease income4.6 6.5 
Accretion of discount on loans receivable(2.3) 
Provision for credit losses2.5  
(Benefit from) provision for deferred income taxes(21.0)11.6 
Amortization of deferred loan costs6.8 6.6 
Amortization of discount and accretion of premium on issuance of senior notes and mortgage debt(1.6)(0.9)
Unrealized net gain on derivatives
(20.6)(51.8)
Loss (income) from unconsolidated investments69.7 (148.4)
Operating distributions from unconsolidated investments53.5 58.5 
Deferred compensation3.7 12.4 
Share-based compensation21.7 21.7 
Change in assets and liabilities:
Accounts receivable(11.8)(10.0)
Other assets(4.6)(20.7)
Accounts payable, accrued expenses and other liabilities(31.9)(28.3)
Net cash used in operating activities(2.7)(4.7)
Cash flows from investing activities:
Proceeds from collection of loans receivable40.8 28.4 
Issuance and acquisition of loans receivable, net of discounts(129.6)(39.0)
Net proceeds from sale of consolidated real estate282.6 267.7 
Purchases of real estate (408.5)
Capital expenditures to real estate(146.5)(109.3)
Proceeds from on settlement of derivative contracts3.4 87.5 
Distributions from unconsolidated investments49.6 142.0 
Contributions to unconsolidated investments(120.9)(327.6)
Net cash used in investing activities(20.6)(358.8)
Cash flows from financing activities:
Issuance of preferred stock, net of issuance costs198.0 297.3 
Borrowings under line of credit50.0 425.0 
Repayment of line of credit(185.0)(300.0)
Borrowings under mortgage debt370.8 383.5 
Repayment of mortgage debt(386.8)(336.9)
Payment of deferred loan costs(0.6)(4.9)
Repurchase and retirement of common stock(13.4)(31.2)
Proceeds from issuance of common stock, net of issuance costs29.9 (0.7)
Common dividends paid(102.5)(101.8)
Preferred dividends paid(23.6)(18.0)
Contributions from noncontrolling interests1.0 5.6 
Distributions to noncontrolling interests(25.8)(10.6)
Net cash (used in) provided by financing activities(88.0)307.3 
Effect of currency exchange rate changes on cash and cash equivalents2.9 (48.3)
Net change in cash and cash equivalents(1)
(108.4)(104.5)
Cash and cash equivalents, beginning of period439.3 524.8 
Cash and cash equivalents, end of period$330.9 $420.3 
(1) See discussion of non-cash effects in the supplemental cash flow information.
See accompanying notes to consolidated financial statements.
8

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)

Supplemental cash flow information:
Nine Months Ended September 30,
(Dollars in millions)20232022
Cash paid for:
Interest(1)(2)
$177.3 $164.5 
Income taxes16.7 15.2 
Cash received from consolidated and unconsolidated asset sales and loan repayments, net266.5 280.0 


(1) $1.9 million and $3.0 million attributable to noncontrolling interests for the nine months ended September 30, 2023 and 2022, respectively.
(2) Excludes $3.8 million and $2.5 million of capitalized interest for the nine months ended September 30, 2023 and 2022, respectively.

    As of September 30, 2023 and December 31, 2022 the Company had $64.8 million and $21.4 million, respectively, 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 loans in the newly acquired Construction Loan Portfolio (as defined herein) on behalf of the borrowers under such loans. These reserves typically relate to interest, tax, insurance and future capital expenditures at the properties and on our loan investments.

Supplemental disclosure of non-cash investing and financing activities:
Nine Months Ended September 30,
(Dollars in millions)20232022
Accrued capital expenditures$6.0 $4.4 
Common dividends declared but not paid on common stock33.5 33.1 
Preferred dividends declared but not paid on preferred stock10.2 6.7 

During the nine months ended September 30, 2023, the Company sold a 49% interest in two previously wholly-owned market-rate multifamily properties into an existing joint venture platform managed by the Company (see gain on sale of real estate in Note 3 for further description of the transaction) and retained a noncontrolling 51% interest in such properties which was treated as a non-cash activity with the remaining share of real estate, mortgage loan and other balance sheet items being removed from the consolidated balance sheet with an increase of $33.4 million to unconsolidated investments.

The Company also sold a previously wholly-owned multifamily property into its Vintage Housing Holdings ("VHH") platform, with the Company retaining an interest in the property through its investment in VHH. The transaction was treated as a non-cash activity with the remaining share of real estate, mortgage loan and other balance sheet items being removed from the consolidated balance sheet with an increase of $16.8 million to unconsolidated investments.
    
See accompanying notes to consolidated financial statements.
9


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)

NOTE 1—BASIS OF PRESENTATION
Kennedy-Wilson Holdings, Inc. (“KWH,” NYSE: KW), a Delaware corporation and its wholly owned and consolidated subsidiaries (collectively the "Company" or "Kennedy Wilson"), is a global real estate investment company. The Company owns, operates, and invests in real estate and real estate-related assets (including loans secured by real estate) both on its own and through its investment management platform. The Company primarily focuses on multifamily and office properties as well as industrial and debt investments in its Investment Management business in the United States, United Kingdom and Ireland. The Company's operations are defined by two business segments; its Consolidated Portfolio and Co-Investment Portfolio. Investment activities in the Consolidated Portfolio involve ownership of multifamily units, office, retail space and one hotel. The Co-Investment Portfolio segment consists of investments the Company makes with partners in which it receives (i) fees (including, without limitation, asset management fees and construction management fees), (ii) performance allocations and (iii) distributions and profits from its ownership interest in the underlying operations of its co-investments.
    Kennedy Wilson's unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") may have been condensed or omitted pursuant to SEC rules and regulations, although the Company believes that the disclosures are adequate to make their presentation not misleading. In the Company's opinion, all adjustments, consisting of only normal and recurring items, necessary for a fair presentation of the results of operations for the three and nine months ended September 30, 2023 and 2022 have been included. The results of operations for these periods are not necessarily indicative of results that might be expected for the full year ending December 31, 2023. For further information, your attention is directed to the footnote disclosures found in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Throughout these unaudited interim consolidated financial statements “Kennedy Wilson” is referenced, which is defined as the Company and its subsidiaries that are consolidated in its financial statements under U.S. GAAP.  All intercompany balances and transactions have been eliminated in consolidation.
     In addition, throughout these unaudited interim consolidated financial statements, “equity partners” is referred to, which is defined as both the non-wholly owned subsidiaries that are consolidated in the Company's financial statements under U.S. GAAP and third-party equity partners. 
    Kennedy Wilson evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") as defined in the Accounting Standards Codification ("ASC") Subtopic 810-10, Consolidation, as amended by Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, and to assess whether it is the primary beneficiary of such entities. If the determination is made that Kennedy Wilson is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with the ASC Subtopic 810-10.
    The preparation of the accompanying consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosure about contingent assets and liabilities, and reported amounts of revenues and expenses. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.
NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
    REVENUE RECOGNITION — Revenue consists of rental and hotel income, management fees, leasing and commission fees, loan interest income and sales of real estate. ASC Topic 606, Revenue from Contracts with Customers, is a five step model to recognize revenue from customer contracts. The model identifies the contract, any separate performance obligations in the contract, determines the transaction price, allocates the transaction price and recognizes revenue when the performance obligations are satisfied. Management has concluded that, with the exception of performance allocations and loan interest income, the nature of the Company's revenue streams is such that the requirements are generally satisfied at the time that the fee becomes receivable.
    Rental income from operating leases is generally recognized on a straight-line basis over the terms of the leases in accordance with ASC Topic 842, Leases. Hotel income is earned when rooms are occupied or goods and services have been
10


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
delivered or rendered. Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property.
    Investment management fees are earned from limited partners of funds, co-investments, or separate accounts and are generally based on a fixed percentage of committed capital or net asset value. The Company provides investment management on investments it also has an ownership interest in. Fees earned on consolidated properties are eliminated in consolidation and fees on unconsolidated investments are eliminated for the portion that relate to the Company's ownership interest.
    Investment management fees include acquisition, arrangement and disposition fees. Acquisition, arrangement and disposition fees are earned for identifying and closing investments on behalf of investors and are based on a fixed percentage of the acquisition or disposition price, as applicable. Acquisition and disposition fees are recognized upon the successful completion of an acquisition or disposition after all required services have been performed.
Interest income from investments in performing loans which Kennedy Wilson originates or acquires are recognized at the stated interest rate plus any amortization of premiums/discounts or fees earned on the loans. Interest income from investments in loans acquired at a discount are recognized using the effective interest method. When a loan or loans are acquired with deteriorated credit quality primarily for the rewards of collateral ownership, such loans are accounted for as loans until Kennedy Wilson is in possession of the collateral. However, accrual of income is not recorded during the conversion period under ASC Subtopic 310-30-25, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality. Income is recognized to the extent that cash is received from the loan. The Company has evaluated its loan portfolio under ASC Subtopic 326, Financial Instruments – Credit Losses for current expected credit losses ("CECL") reserves. CECL reserves reflect the Company's current estimate of potential credit losses related to loans included in the Company's consolidated balance sheets. Changes to the CECL reserve are recognized through interest income on the Company's consolidated statements of operations. While ASC Subtopic 326 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions. The Company has not identified any specific loans which require a reserve but has established a general reserve for the entire loan platform.
    Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property. Under ASC Subtopic 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, the Company recognizes the entire gain attributed to contributions of real estate properties to unconsolidated entities.
Property services fees are earned from the Company's auction sales and marketing business. In the case of auction and real estate sales commissions, the revenue is generally recognized when escrow closes. In accordance with the guidelines established for Reporting Revenue Gross as a Principal versus Net as an Agent in ASC Topic 606, Kennedy Wilson records commission revenues and expenses on a gross basis. Of the criteria listed in ASC Topic 606, Kennedy Wilson is the primary obligor in the transaction, does not have inventory risk, performs all or part of the service and has wide latitude in establishing the price of services rendered and discretion in selection of agents and determination of service specifications.
    REAL ESTATE ACQUISITIONS—The purchase price of acquired properties is recorded to land, buildings and building improvements and intangible lease value (value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any). The ownership of the other interest holders in consolidated subsidiaries is reflected as noncontrolling interests. Real estate is recorded based on cumulative costs incurred and allocated based on relative fair value. Acquisition fees and expenses associated with the acquisition of properties determined to be business combinations are expensed as incurred. Acquisition fees and expenses associated with transactions determined to be asset acquisitions are capitalized as part of the real estate acquired.
    The valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate is valued, in part, based on third party valuations and management estimates also using an income approach.
    UNCONSOLIDATED INVESTMENTS — Kennedy Wilson has a number of joint venture interests that were formed to acquire, manage, and/or sell real estate or real estate related investments. Investments in unconsolidated investments are accounted for under the equity method of accounting as Kennedy Wilson can exercise significant influence, but does not have the ability to control the unconsolidated investment. An investment in an unconsolidated investment is recorded at its initial investment and is increased or decreased by Kennedy Wilson’s share of income or loss, contributions, distributions and foreign
11


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
currency movements. A decline in the value of an unconsolidated investment that is other than temporary is recognized when evidence indicates that such a decline has occurred in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures.
Kennedy Wilson elected the fair value option for 72 investments in unconsolidated investment entities ("FV Option" investments). Due to the nature of these investments, Kennedy Wilson elected to record these investments at fair value in order to report the change in value in the underlying investments in the results of our current operations.
    Additionally, Kennedy Wilson records its investments in commingled funds it manages and sponsors (the "Funds") that are investment companies under ASC Topic 946, Financial Services - Investment Companies, based upon the net assets that would be allocated to its interests in the Funds assuming the Funds were to liquidate their investments at fair value as of the reporting date. Thus, the Funds reflect their investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in their earnings.
Performance allocations or carried interest are allocated to the general partner, special limited partner or asset manager of Kennedy Wilson's real estate funds based on the cumulative performance of the fund and are subject to preferred return thresholds of the limited partners. At the end of each reporting period, Kennedy Wilson calculates the performance allocation that would be due as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as performance allocation to reflect either (a) positive performance resulting in an increase in the performance allocation to the general partner or asset manager or (b) negative performance that would cause the amount due to Kennedy Wilson to be less than the amount previously recorded as income from unconsolidated investments, resulting in a negative adjustment to performance allocations to the general partner or asset manager. As of September 30, 2023, the Company has $105.3 million of accrued performance allocations recorded to unconsolidated investments that are subject to future adjustments based on the underlying performance of investments.

    The Company has concluded that performance allocations to the Company from equity method investments, based on cumulative performance to-date, represent carried interests. Consequently, in following the guidance set forth in ASC Topic 606 and ASC Topic 323, these allocations are included as a component of the total income from unconsolidated investments in the accompanying consolidated statements of income.
Performance allocation compensation is recorded in the same period that the related performance allocations are recorded and can be reversed during periods when there is a reversal of performance allocations that were previously recorded. As of September 30, 2023 and December 31, 2022, the Company has $31.9 million and $37.1 million of accrued performance allocation compensation recorded to accrued expenses and other liabilities that are subject to future adjustments based on the underlying performance of investments.         

    FAIR VALUE MEASUREMENTS — Kennedy Wilson accounts for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recorded or disclosed at fair value in the financial statements on a recurring basis under the provisions of ASC Topic 820, Fair Value Measurement. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When estimating fair value in the absence of an orderly transaction between market participants, valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate and the investments in debt securities are valued, in part, based on third party valuations and management estimates also using an income approach. The use of different market assumptions or estimation methodologies may have a material impact on the estimated fair value amounts.
    FAIR VALUE OF FINANCIAL INSTRUMENTS — The estimated fair value of financial instruments is determined using available market information and appropriate valuation methodologies. Considerable judgment, is necessary, however, to interpret market data and develop the related estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material impact on the estimated fair value amounts.

    FOREIGN CURRENCIES — The financial statements of Kennedy Wilson's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly
12


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
rate. The foreign currencies include the euro and the British pound sterling. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income.
    Investment level debt is generally incurred in local currencies. Fluctuations in foreign exchanges rates may have a significant impact on the results of the Company's operations. In order to manage currency fluctuations, Kennedy Wilson entered into currency derivative contracts to manage its exposure to currency fluctuations between its functional currency (U.S. dollar) and the functional currency (euro and the British pound) of certain of its wholly-owned and consolidated subsidiaries. KWE has also entered into currency derivative contracts to manage its exposure to euro to British pound currency fluctuations. See Note 5 for a more detailed discussion of Kennedy Wilson's currency derivative contracts.
LONG-LIVED ASSETS — Kennedy Wilson reviews its long-lived assets (excluding goodwill) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Subtopic 360-10, Property, Plant and Equipment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. If certain criteria are met, assets to be disposed of are presented separately in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The assets and liabilities of the assets to be disposed of are classified as held for sale and would be presented separately in the appropriate asset and liability sections of the balance sheet.
    RECENT ACCOUNTING PRONOUNCEMENTS
    For information regarding accounting standards that the Company adopted during the periods presented, see note 2 of the notes to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company did not adopt any new accounting standards during the nine months ended September 30, 2023.
    The FASB did not issue any other ASUs during the first nine months of 2023 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations.
RECLASSIFICATIONS—Certain balances included in prior year's financial statements have been reclassified to conform to the current year's presentation.
NOTE 3—REAL ESTATE AND IN-PLACE LEASE VALUE
    The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at September 30, 2023 and December 31, 2022:
 September 30,December 31,
(Dollars in millions)20232022
Land$1,309.0 $1,319.2 
Buildings3,679.7 3,961.9 
Building improvements503.4 494.2 
In-place lease values279.6 295.0 
5,771.7 6,070.3 
Less accumulated depreciation and amortization(922.1)(882.2)
Real estate and acquired in place lease values, net of accumulated depreciation and amortization$4,849.6 $5,188.1 
    Real property, including land, buildings, and building improvements are included in real estate and are generally stated at cost. Buildings and building improvements are depreciated on a straight-line method over their estimated lives not to exceed 40 years. Acquired in-place lease values are recorded at their estimated fair value and depreciated over their respective weighted-average lease term which was 6.9 years at September 30, 2023.
    Consolidated Acquisitions    
13


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
The purchase of property is recorded to land, buildings, building improvements, and intangible lease value (including the value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated relative fair values. The purchase price generally approximates the fair value of the properties as acquisitions are transacted with willing third-party sellers.
During the nine months ended September 30, 2023, Kennedy Wilson did not acquire any consolidated properties.
    Gain on Sale of Real Estate, Net
During the nine months ended September 30, 2023, Kennedy Wilson recognized gains on sale of real estate, net of $138.6 million. These gains were primarily due to (i) the Company's sale of a 49% of its equity interest in two previously wholly-owned market-rate multifamily properties into an existing joint venture platform managed by the Company and retained a noncontrolling 51% interest in such properties, which resulted in a gain on sale of real estate of $79.5 million; (ii) the sale of a Western United States property to VHH, pursuant to which the Company retains an interest in the asset through its ownership interest in VHH, which resulted in a gain of $15.1 million; (iii) the sale of a consolidated multifamily property owned with a noncontrolling interest partner which resulted in a gain of $37.6 million ($20.1 million of which was at the Company's share) and (iv) the remainder of gain on sale of real estate relates to the sale of non-core retail and residential properties in the Western United States, United Kingdom and Ireland. The gain on sale of real estate, net includes an impairment loss of $13.7 million relating to non-core office and retail buildings in the United Kingdom and Ireland that were marketed for sale during such period.
During the nine months ended September 30, 2022, Kennedy Wilson recognized gains on sale of real estate, net of $50.8 million from the sale of one urban multifamily asset in Western United States, two non-core retail assets in the Mountain West and two non-core UK office assets. The gain on sale of real estate, net includes an impairment loss of $6.7 million relating to non-core office and retail buildings in the United Kingdom and Ireland that are being marketed for sale.
    Leases
    The Company leases its operating properties to customers under agreements that are classified as operating leases. The total minimum lease payments provided for under the leases are recognized on a straight-line basis over the lease term unless circumstances indicate revenue should be recognized on a cash basis. The majority of the Company's rental expenses, including common area maintenance and real estate taxes and insurance on commercial properties, are recovered from the Company's tenants. The Company records amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. The reimbursements are recognized in rental income in the consolidated statements of operations as the Company is the primary obligor with respect to purchasing and selecting goods and services from third-party vendors and bearing the associated credit risk.
    The following table summarizes the minimum lease payments due from the Company's customers on leases with lease periods greater than one year at September 30, 2023:
(Dollars in millions)Minimum
Rental Revenues(1)
2023 (remainder)$34.9 
2024129.1 
2025118.7 
202699.8 
202778.2 
Thereafter244.6 
Total$705.3 
(1) These amounts do not reflect future rental revenues from the renewal or replacement of existing leases, rental increases that are not fixed and exclude reimbursements of rental expenses.
14


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
NOTE 4—UNCONSOLIDATED INVESTMENTS
    Kennedy Wilson has a number of joint venture interests including commingled funds and separate accounts, generally ranging from 5% to 50%, that were formed to acquire, manage, develop, service and/or sell real estate. Kennedy Wilson has significant influence over these entities, but not control. Accordingly, these investments are accounted for under the equity method.
Joint Venture and Fund Holdings
The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of September 30, 2023:
(Dollars in millions)MultifamilyCommercialHotelFundsResidential and OtherTotal
Western U.S.$879.6 $74.7 $250.8 $