10-Q 1 kw-20240331.htm 10-Q kw-20240331
000140810012/312024Q1false12xbrli:sharesiso4217:USDiso4217:USDxbrli:shareskw:segmentxbrli:purekw:investmentkw:assetkw:jointVenturekw:fundkw:yeariso4217:EURiso4217:GBPkw:leasekw:loan00014081002024-01-012024-03-3100014081002024-05-0700014081002024-03-3100014081002023-12-310001408100us-gaap:RelatedPartyMember2024-03-310001408100us-gaap:RelatedPartyMember2023-12-310001408100us-gaap:MortgagesMember2024-03-310001408100us-gaap:MortgagesMember2023-12-310001408100us-gaap:UnsecuredDebtMember2024-03-310001408100us-gaap:UnsecuredDebtMember2023-12-310001408100us-gaap:SubordinatedDebtMember2024-03-310001408100us-gaap:SubordinatedDebtMember2023-12-310001408100us-gaap:SeriesAPreferredStockMember2023-12-310001408100us-gaap:SeriesAPreferredStockMember2024-03-310001408100us-gaap:SeriesBPreferredStockMember2024-03-310001408100us-gaap:SeriesBPreferredStockMember2023-12-310001408100us-gaap:SeriesCPreferredStockMember2023-12-310001408100us-gaap:SeriesCPreferredStockMember2024-03-310001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2024-03-310001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberkw:InvestmentDebtMember2024-03-310001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-12-310001408100us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberkw:InvestmentDebtMember2023-12-310001408100kw:RentalServicesMember2024-01-012024-03-310001408100kw:RentalServicesMember2023-01-012023-03-310001408100srt:HotelMember2024-01-012024-03-310001408100srt:HotelMember2023-01-012023-03-310001408100kw:InvestmentManagementFeesRelatedPartyMember2024-01-012024-03-310001408100kw:InvestmentManagementFeesRelatedPartyMember2023-01-012023-03-310001408100kw:InvestmentManagementAndPropertyServicesFeesMember2024-01-012024-03-310001408100kw:InvestmentManagementAndPropertyServicesFeesMember2023-01-012023-03-310001408100us-gaap:RealEstateMember2024-01-012024-03-310001408100us-gaap:RealEstateMember2023-01-012023-03-310001408100kw:OtherRevenueMember2024-01-012024-03-310001408100kw:OtherRevenueMember2023-01-012023-03-3100014081002023-01-012023-03-310001408100kw:CompensationAndRelatedMember2024-01-012024-03-310001408100kw:CompensationAndRelatedMember2023-01-012023-03-310001408100us-gaap:PreferredStockMember2023-12-310001408100us-gaap:CommonStockMember2023-12-310001408100us-gaap:AdditionalPaidInCapitalMember2023-12-310001408100us-gaap:RetainedEarningsMember2023-12-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001408100us-gaap:NoncontrollingInterestMember2023-12-310001408100us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001408100us-gaap:CommonStockMember2024-01-012024-03-310001408100us-gaap:RetainedEarningsMember2024-01-012024-03-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001408100us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001408100us-gaap:PreferredStockMember2024-03-310001408100us-gaap:CommonStockMember2024-03-310001408100us-gaap:AdditionalPaidInCapitalMember2024-03-310001408100us-gaap:RetainedEarningsMember2024-03-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001408100us-gaap:NoncontrollingInterestMember2024-03-310001408100us-gaap:PreferredStockMember2022-12-310001408100us-gaap:CommonStockMember2022-12-310001408100us-gaap:AdditionalPaidInCapitalMember2022-12-310001408100us-gaap:RetainedEarningsMember2022-12-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001408100us-gaap:NoncontrollingInterestMember2022-12-3100014081002022-12-310001408100us-gaap:CommonStockMemberus-gaap:CommonStockMember2023-01-012023-03-310001408100us-gaap:AdditionalPaidInCapitalMemberus-gaap:CommonStockMember2023-01-012023-03-310001408100us-gaap:CommonStockMember2023-01-012023-03-310001408100us-gaap:CommonStockMember2023-01-012023-03-310001408100us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001408100us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001408100us-gaap:RetainedEarningsMember2023-01-012023-03-310001408100us-gaap:PreferredStockMember2023-03-310001408100us-gaap:CommonStockMember2023-03-310001408100us-gaap:AdditionalPaidInCapitalMember2023-03-310001408100us-gaap:RetainedEarningsMember2023-03-310001408100us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001408100us-gaap:NoncontrollingInterestMember2023-03-3100014081002023-03-310001408100kw:DebtRedemptionMember2024-03-310001408100kw:DebtRedemptionMember2023-12-310001408100srt:MinimumMember2024-03-310001408100srt:MaximumMember2024-03-310001408100kw:AccruedLiabilitiesAndOtherLiabilitiesMember2024-03-310001408100kw:AccruedLiabilitiesAndOtherLiabilitiesMember2023-12-310001408100us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2024-03-310001408100us-gaap:LeasesAcquiredInPlaceMember2024-01-012024-03-310001408100kw:ShelbourneHotelMember2024-01-012024-03-310001408100us-gaap:BuildingMember2024-01-012024-03-310001408100kw:OfficeAndRetailPropertyMemberkw:UnitedKingdomAndSpainMember2024-01-012024-03-310001408100us-gaap:RetailMemberkw:SouthernCaliforniaMember2023-01-012023-03-310001408100us-gaap:RetailMembercountry:GB2023-01-012023-03-310001408100kw:ResidentialMemberstpr:HI2023-01-012023-03-310001408100country:IEsrt:OfficeBuildingMember2023-01-012023-03-310001408100us-gaap:RetailMemberkw:UnitedKingdomAndWesternUnitedStatesMember2023-01-012023-03-310001408100kw:VariousComingledFundsAndSeparateAccountsMembersrt:MinimumMember2024-03-310001408100kw:VariousComingledFundsAndSeparateAccountsMembersrt:MaximumMember2024-03-310001408100srt:MultifamilyMemberus-gaap:WestRegionMember2024-03-310001408100us-gaap:WestRegionMemberkw:CommercialMember2024-03-310001408100srt:HotelMemberus-gaap:WestRegionMember2024-03-310001408100us-gaap:WestRegionMemberkw:FundsMember2024-03-310001408100us-gaap:WestRegionMemberkw:ResidentialAndOtherMember2024-03-310001408100us-gaap:WestRegionMember2024-03-310001408100srt:MultifamilyMembercountry:IE2024-03-310001408100country:IEkw:CommercialMember2024-03-310001408100srt:HotelMembercountry:IE2024-03-310001408100country:IEkw:FundsMember2024-03-310001408100kw:ResidentialAndOtherMembercountry:IE2024-03-310001408100country:IE2024-03-310001408100srt:MultifamilyMembercountry:GB2024-03-310001408100kw:CommercialMembercountry:GB2024-03-310001408100srt:HotelMembercountry:GB2024-03-310001408100kw:FundsMembercountry:GB2024-03-310001408100kw:ResidentialAndOtherMembercountry:GB2024-03-310001408100country:GB2024-03-310001408100srt:MultifamilyMember2024-03-310001408100kw:CommercialMember2024-03-310001408100srt:HotelMember2024-03-310001408100kw:FundsMember2024-03-310001408100kw:ResidentialAndOtherMember2024-03-310001408100srt:MultifamilyMemberus-gaap:WestRegionMember2023-12-310001408100us-gaap:WestRegionMemberkw:CommercialMember2023-12-310001408100srt:HotelMemberus-gaap:WestRegionMember2023-12-310001408100us-gaap:WestRegionMemberkw:FundsMember2023-12-310001408100us-gaap:WestRegionMemberkw:ResidentialAndOtherMember2023-12-310001408100us-gaap:WestRegionMember2023-12-310001408100srt:MultifamilyMembercountry:IE2023-12-310001408100country:IEkw:CommercialMember2023-12-310001408100srt:HotelMembercountry:IE2023-12-310001408100country:IEkw:FundsMember2023-12-310001408100kw:ResidentialAndOtherMembercountry:IE2023-12-310001408100country:IE2023-12-310001408100srt:MultifamilyMembercountry:GB2023-12-310001408100kw:CommercialMembercountry:GB2023-12-310001408100srt:HotelMembercountry:GB2023-12-310001408100kw:FundsMembercountry:GB2023-12-310001408100kw:ResidentialAndOtherMembercountry:GB2023-12-310001408100country:GB2023-12-310001408100srt:MultifamilyMember2023-12-310001408100kw:CommercialMember2023-12-310001408100srt:HotelMember2023-12-310001408100kw:FundsMember2023-12-310001408100kw:ResidentialAndOtherMember2023-12-310001408100us-gaap:FairValueMeasurementsRecurringMember2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMember2023-12-310001408100srt:MultifamilyMemberus-gaap:WestRegionMember2024-01-012024-03-310001408100us-gaap:WestRegionMemberkw:CommercialMember2024-01-012024-03-310001408100us-gaap:WestRegionMemberkw:FundsMember2024-01-012024-03-310001408100us-gaap:WestRegionMemberkw:ResidentialAndOtherMember2024-01-012024-03-310001408100us-gaap:WestRegionMember2024-01-012024-03-310001408100srt:MultifamilyMembercountry:IE2024-01-012024-03-310001408100country:IEkw:CommercialMember2024-01-012024-03-310001408100country:IEkw:FundsMember2024-01-012024-03-310001408100kw:ResidentialAndOtherMembercountry:IE2024-01-012024-03-310001408100country:IE2024-01-012024-03-310001408100srt:MultifamilyMembercountry:GB2024-01-012024-03-310001408100kw:CommercialMembercountry:GB2024-01-012024-03-310001408100kw:FundsMembercountry:GB2024-01-012024-03-310001408100kw:ResidentialAndOtherMembercountry:GB2024-01-012024-03-310001408100country:GB2024-01-012024-03-310001408100srt:MultifamilyMember2024-01-012024-03-310001408100kw:CommercialMember2024-01-012024-03-310001408100kw:FundsMember2024-01-012024-03-310001408100kw:ResidentialAndOtherMember2024-01-012024-03-310001408100kw:JointVentureMemberus-gaap:EquityMethodInvestmentsMember2024-01-012024-03-310001408100kw:JointVentureMemberus-gaap:EquityMethodInvestmentsMember2023-01-012023-03-310001408100kw:VintageHousingHoldingsMember2024-03-310001408100kw:VintageHousingHoldingsMember2023-12-310001408100kw:VintageHousingHoldingsMember2024-01-012024-03-310001408100us-gaap:EquityMethodInvestmentsMember2024-03-310001408100kw:EquityMethodInvestmentsClosedEndFundsMember2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001408100us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2023-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2022-12-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2024-01-012024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2023-01-012023-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2024-03-310001408100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquityMethodInvestmentsMember2023-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputExpectedTermMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MultifamilyMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MultifamilyMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MultifamilyMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MultifamilyMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:MultifamilyMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:MultifamilyMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:OfficeBuildingMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:OfficeBuildingMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:OfficeBuildingMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:OfficeBuildingMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:OfficeBuildingMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:OfficeBuildingMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:IndustrialPropertyMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:IndustrialPropertyMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:IndustrialPropertyMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:IndustrialPropertyMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:IndustrialPropertyMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCapRateMemberkw:ValuationTechniqueDirectCapitalizationMembersrt:IndustrialPropertyMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:RetailSiteMember2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Membersrt:RetailSiteMember2024-03-310001408100us-gaap:MeasurementInputCapRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:HotelMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:HotelMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Member2024-03-310001408100us-gaap:MeasurementInputCreditSpreadMembersrt:MinimumMember2024-03-310001408100us-gaap:MeasurementInputCreditSpreadMembersrt:MaximumMember2024-03-310001408100srt:MinimumMemberkw:MeasurementInputMarketRateMember2024-03-310001408100kw:MeasurementInputMarketRateMembersrt:MaximumMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractOneMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractOneMemberus-gaap:FairValueInputsLevel2Member2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractOneMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractOneMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractTwoMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractTwoMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractTwoMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractTwoMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-01-012024-03-310001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-01-012024-03-310001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractFourMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractFourMemberus-gaap:FairValueInputsLevel2Member2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractFourMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberkw:ForeignExchangeContractFourMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativesOutstandingMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:ForeignExchangeContractFiveMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:ForeignExchangeContractFiveMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Memberkw:ForeignExchangeContractFiveMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMember2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Memberkw:DerivativeSettledMember2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMemberus-gaap:FairValueInputsLevel2Member2024-01-012024-03-310001408100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembercurrency:EUR2024-03-310001408100currency:GBPus-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001408100kw:InterestRateSwapsAndCapsMemberus-gaap:NondesignatedMember2024-01-012024-03-310001408100us-gaap:InterestRateSwapMember2024-01-012024-03-310001408100kw:InterestRateSwapsAndCapsMemberus-gaap:NondesignatedMember2023-01-012023-03-310001408100us-gaap:InterestRateSwapMember2023-01-012023-03-310001408100us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001408100us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001408100us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001408100us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001408100kw:KennedyWilsonMember2024-01-012024-03-310001408100kw:InterestRateCapAndSwapsMember2024-03-310001408100kw:InterestRateCapAndSwapsMember2023-12-310001408100kw:HedgeAssetsMember2024-03-310001408100kw:HedgeAssetsMember2023-12-310001408100us-gaap:FurnitureAndFixturesMember2024-03-310001408100us-gaap:FurnitureAndFixturesMember2023-12-310001408100us-gaap:AboveMarketLeasesMember2024-03-310001408100us-gaap:AboveMarketLeasesMember2023-12-310001408100us-gaap:RealEstateMember2024-01-012024-03-310001408100us-gaap:LandMember2024-01-012024-03-310001408100us-gaap:WestRegionMemberkw:MortgageLoansSecuredByMultiFamilyPropertiesMemberus-gaap:MortgagesMember2024-03-310001408100us-gaap:WestRegionMemberkw:MortgageLoansSecuredByMultiFamilyPropertiesMemberus-gaap:MortgagesMember2023-12-310001408100kw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMembercountry:GB2024-03-310001408100kw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMembercountry:GB2023-12-310001408100country:IEkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2024-03-310001408100country:IEkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2023-12-310001408100us-gaap:WestRegionMemberkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2024-03-310001408100us-gaap:WestRegionMemberkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2023-12-310001408100country:ESkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2024-03-310001408100country:ESkw:MortgageLoansSecuredByCommercialPropertiesMemberus-gaap:MortgagesMember2023-12-310001408100us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-03-310001408100us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-12-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2024-03-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2023-12-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2030Member2024-03-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2030Member2023-12-310001408100us-gaap:SeniorNotesMemberkw:A5000SeniorNotesDue2031Member2024-03-310001408100us-gaap:SeniorNotesMemberkw:A5000SeniorNotesDue2031Member2023-12-310001408100kw:ARFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-03-250001408100kw:ARFacilityMemberkw:SecuredOvernightFinancingRateSOFRMembersrt:MinimumMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-06-122023-06-120001408100kw:ARFacilityMemberkw:SecuredOvernightFinancingRateSOFRMembersrt:MaximumMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-06-122023-06-120001408100kw:ARFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-06-122023-06-120001408100kw:ARFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-03-310001408100kw:ARFacilityMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-04-012024-04-300001408100kw:ARFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-01-012024-03-310001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2021-02-110001408100us-gaap:SeniorNotesMemberkw:A5000SeniorNotesDue2031Member2021-02-110001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2029Member2021-03-150001408100us-gaap:SeniorNotesMemberkw:A5000SeniorNotesDue2031Member2021-03-150001408100us-gaap:SeniorNotesMemberkw:A4750SeniorNotesDue2030Member2021-08-230001408100us-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:SeniorNotesMember2024-03-310001408100kw:ARFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-03-252020-03-250001408100us-gaap:SubordinatedDebtMemberkw:EuroMediumTermNoteMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100us-gaap:SubordinatedDebtMemberkw:EuroMediumTermNoteMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-12-310001408100us-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2024-03-310001408100us-gaap:SubordinatedDebtMemberkw:KennedyWilsonEuropeRealEstatePLLCMember2023-12-310001408100kw:ForeignExchangeContractThreeMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel2Memberkw:KennedyWilsonEuropeRealEstatePllcMember2024-01-012024-03-310001408100us-gaap:PrivatePlacementMemberus-gaap:PreferredStockMember2023-06-162023-06-160001408100us-gaap:PrivatePlacementMember2023-06-162023-06-1600014081002023-06-160001408100kw:ATMProgramMember2022-05-310001408100kw:ATMProgramMember2024-01-012024-03-310001408100kw:ATMProgramMember2024-03-310001408100us-gaap:RestrictedStockMember2024-01-012024-03-310001408100us-gaap:RestrictedStockMember2023-01-012023-03-3100014081002020-11-0300014081002020-11-040001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2023-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2023-12-310001408100us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2024-01-012024-03-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2024-01-012024-03-310001408100us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ForeignExchangeContractMember2024-03-310001408100us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:InterestRateSwapMember2024-03-310001408100us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001408100us-gaap:AociAttributableToNoncontrollingInterestMember2024-03-310001408100us-gaap:OperatingSegmentsMemberkw:RentalServicesMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:RentalServicesMember2024-01-012024-03-310001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMembersrt:HotelMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2024-01-012024-03-310001408100srt:HotelMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMemberkw:CoInvestmentsPortfolioSegmentMember2024-01-012024-03-310001408100kw:InvestmentManagementFeesMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100kw:InvestmentManagementFeesMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberus-gaap:RealEstateMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberus-gaap:RealEstateMemberkw:CoInvestmentsPortfolioSegmentMember2024-01-012024-03-310001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:OtherRevenueMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2024-01-012024-03-310001408100kw:OtherRevenueMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2024-01-012024-03-310001408100us-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CompensationAndRelatedMemberkw:CoInvestmentsPortfolioSegmentMember2024-01-012024-03-310001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2024-01-012024-03-310001408100us-gaap:OperatingSegmentsMemberkw:RentalServicesMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:RentalServicesMember2023-01-012023-03-310001408100kw:RentalServicesMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMembersrt:HotelMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMembersrt:HotelMember2023-01-012023-03-310001408100srt:HotelMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:InvestmentManagementFeesMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-03-310001408100kw:InvestmentManagementFeesMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100kw:InvestmentManagementFeesMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberus-gaap:RealEstateMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberus-gaap:RealEstateMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-03-310001408100us-gaap:RealEstateMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:OtherRevenueMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMemberkw:OtherRevenueMember2023-01-012023-03-310001408100kw:OtherRevenueMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-03-310001408100us-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CompensationAndRelatedMemberkw:ConsolidatedSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:CompensationAndRelatedMemberkw:CoInvestmentsPortfolioSegmentMember2023-01-012023-03-310001408100kw:CompensationAndRelatedMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310001408100us-gaap:OperatingSegmentsMemberkw:ConsolidatedSegmentMember2024-03-310001408100us-gaap:OperatingSegmentsMemberkw:ConsolidatedSegmentMember2023-12-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2024-03-310001408100us-gaap:OperatingSegmentsMemberkw:CoInvestmentsPortfolioSegmentMember2023-12-310001408100us-gaap:CorporateNonSegmentMember2024-03-310001408100us-gaap:CorporateNonSegmentMember2023-12-310001408100srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2024-03-310001408100srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:ConsolidationEliminationsMember2024-03-310001408100srt:ParentCompanyMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:SubsidiaryIssuerMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2024-03-310001408100srt:NonGuarantorSubsidiariesMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:ConsolidationEliminationsMemberus-gaap:MortgagesMember2024-03-310001408100srt:ParentCompanyMemberus-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:SubsidiaryIssuerMemberus-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMember2024-03-310001408100us-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2024-03-310001408100us-gaap:UnsecuredDebtMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100srt:ConsolidationEliminationsMemberus-gaap:UnsecuredDebtMember2024-03-310001408100us-gaap:SubordinatedDebtMembersrt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2024-03-310001408100us-gaap:SubordinatedDebtMembersrt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2024-03-310001408100us-gaap:SubordinatedDebtMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2024-03-310001408100us-gaap:SubordinatedDebtMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2024-03-310001408100us-gaap:SubordinatedDebtMembersrt:ConsolidationEliminationsMember2024-03-310001408100srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-12-310001408100srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:ConsolidationEliminationsMember2023-12-310001408100srt:ParentCompanyMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:SubsidiaryIssuerMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100us-gaap:MortgagesMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-12-310001408100srt:NonGuarantorSubsidiariesMemberus-gaap:MortgagesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:ConsolidationEliminationsMemberus-gaap:MortgagesMember2023-12-310001408100srt:ParentCompanyMemberus-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:SubsidiaryIssuerMemberus-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMember2023-12-310001408100us-gaap:UnsecuredDebtMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-12-310001408100us-gaap:UnsecuredDebtMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100srt:ConsolidationEliminationsMemberus-gaap:UnsecuredDebtMember2023-12-310001408100us-gaap:SubordinatedDebtMembersrt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2023-12-310001408100us-gaap:SubordinatedDebtMembersrt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2023-12-310001408100us-gaap:SubordinatedDebtMembersrt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-12-310001408100us-gaap:SubordinatedDebtMembersrt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2023-12-310001408100us-gaap:SubordinatedDebtMembersrt:ConsolidationEliminationsMember2023-12-310001408100srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2024-01-012024-03-310001408100srt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2024-01-012024-03-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2024-01-012024-03-310001408100srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2024-01-012024-03-310001408100srt:ConsolidationEliminationsMember2024-01-012024-03-310001408100srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2023-01-012023-03-310001408100srt:SubsidiaryIssuerMembersrt:ReportableLegalEntitiesMember2023-01-012023-03-310001408100srt:ReportableLegalEntitiesMembersrt:GuarantorSubsidiariesMember2023-01-012023-03-310001408100srt:NonGuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2023-01-012023-03-310001408100srt:ConsolidationEliminationsMember2023-01-012023-03-310001408100us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-04-012024-05-080001408100us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-05-08
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 March 31, 2024
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 May 7, 2024 was 137,528,139.


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 our Annual Report on Form 10-K for the year ended December 31, 2023. 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 carried 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 and a reconciliation of Net Operating Income (Net Effective) (with respect to same property) to net income as reported under GAAP and a reconciliation of Net Operating Income (Net Effective) (with respect to same property) 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.

"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, elevated levels of inflation and interest rates, banks' ability and willingness to lend, recent adverse developments affecting regional banks and other financial institutions, currency fluctuations and ongoing military conflicts around the world, continue to fuel recessionary fears and create volatility in Kennedy Wilson's business results and operations). Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had an impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts. All valuations of real estate involve subjective judgments.

    “Same property” refers to stabilized consolidated and unconsolidated properties in which Kennedy Wilson has an ownership interest during the entire span of both periods being compared. This analysis excludes properties that during the comparable periods (i) were acquired, (ii) were sold, (iii) are either under development or undergoing lease up or major repositioning as part of the Company’s asset management strategy, (iv) were investments in which the Company holds a minority ownership position, and (v) certain non-recurring income and expenses. The analysis only includes Office, Multifamily and Hotel properties, where applicable. To derive an appropriate measure of operating performance across the comparable periods, the Company removes the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods. Amounts are calculated using Kennedy Wilson’s ownership share in the Company’s consolidated and unconsolidated properties. Management evaluates the performance of the operating properties the Company owns and manages using a “same property” analysis because the population of properties in this analysis is consistent from period to period, which allows management and investors to analyze (i) the Company’s ongoing business operations and (ii) the revenues and expenses directly associated with owning and operating the Company’s properties and the impact to operations from trends in occupancy rates, rental rates and operating costs. Same property metrics are widely recognized measures in the real estate industry, however, other publicly-traded real estate companies may not calculate and report same property results in the same manner as the Company. Please also see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Certain Non-GAAP Measures and Reconciliations” for a reconciliation of “same property” results to the most comparable measure reported under GAAP.
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)
March 31,
2024
December 31,
2023
Assets
Cash and cash equivalents$541.9 $313.7 
Accounts receivable, net (including $11.7 and $13.8 of related party)
42.5 57.3 
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of $906.0 and $957.8)
4,603.5 4,837.3 
Unconsolidated investments (including $1,917.6 and $1,927.0 at fair value)
2,059.6 2,069.1 
Loan purchases and originations, net of allowance for credit losses250.4 247.2 
Other assets, net182.4 187.5 
Total assets(1)
$7,680.3 $7,712.1 
Liabilities
Accounts payable$15.5 $17.9 
Accrued expenses and other liabilities562.8 597.8 
Mortgage debt2,773.1 2,840.9 
KW unsecured debt2,032.5 1,934.3 
KWE unsecured bonds511.5 522.8 
Total liabilities(1)
5,895.4 5,913.7 
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 March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023
789.9 789.9 
Common stock, $0.0001 par value per share, 200,000,000 authorized, 138,095,244 and 138,727,521 shares issued and outstanding as of March 31, 2024 and December 31, 2023
  
Additional paid-in capital1,706.5 1,718.6 
Accumulated deficit(347.1)(349.0)
 Accumulated other comprehensive loss(406.7)(404.4)
Total Kennedy-Wilson Holdings, Inc. shareholders' equity1,742.6 1,755.1 
Noncontrolling interests42.3 43.3 
Total equity1,784.9 1,798.4 
Total liabilities and equity$7,680.3 $7,712.1 


(1) The assets and liabilities as of March 31, 2024 include $169.8 million (including cash held by consolidated investments of $4.8 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $134.6 million) and $71.7 million (including investment debt of $53.9 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2023 include $154.9 million (including cash held by consolidated investments of $3.6 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $121.8 million) and $101.4 million (including investment debt of $54.9 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 March 31,
20242023
Revenue
Rental$97.4 $106.6 
Hotel9.3 10.6 
Investment management fees (includes $14.4 and $11.0 of related party fees)
21.3 11.0 
Loan8.1 3.7 
Other0.3 0.3 
Total revenue136.4 132.2 
(Loss) income from unconsolidated investments
Principal co-investments9.7 16.4 
Performance allocations(16.4)(10.7)
Total (loss) income from unconsolidated investments(6.7)5.7 
Gain on sale of real estate, net106.4 19.2 
Expenses
Rental37.2 36.6 
Hotel7.6 7.9 
Compensation and related (including $5.2 and $7.1 of share-based compensation)
27.6 30.6 
Performance allocation compensation(5.5)1.6 
General and administrative8.3 8.4 
Depreciation and amortization38.9 39.4 
Total expenses114.1 124.5 
Interest expense(64.7)(62.3)
Gain on early extinguishment of debt0.3 0.1 
Other income (loss)6.8 (3.0)
Income (loss) before (provision for) benefit from income taxes64.4 (32.6)
(Provision for) benefit from income taxes(26.7)3.9 
Net income (loss) 37.7 (28.7)
Net loss (income) attributable to the noncontrolling interests0.1 (4.2)
 Preferred dividends(10.9)(7.9)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders$26.9 $(40.8)
Basic earnings (loss) per share
Earnings (loss) per share$0.19 $(0.30)
Weighted average shares outstanding138,472,579 137,949,018 
Diluted earnings (loss) per share
Earnings (loss) per share$0.19 $(0.30)
Weighted average shares outstanding138,628,139 137,949,018 
Dividends declared per common share$0.24 $0.24 

See accompanying notes to consolidated financial statements.
2

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Comprehensive Operations
(Unaudited)
(Dollars in millions)
Three Months Ended March 31,
20242023
Net income (loss) $37.7 $(28.7)
Other comprehensive (loss) income, net of tax:
Unrealized foreign currency translation (loss) gain(17.5)14.1 
Amounts reclassified from AOCI5.1  
Unrealized foreign currency derivative contracts gain (loss)9.9 (1.2)
Total other comprehensive (loss) income for the period(2.5)12.9 
Comprehensive income (loss) 35.2 (15.8)
Comprehensive loss (income) attributable to noncontrolling interests0.1 (5.0)
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc.$35.3 $(20.8)

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 March 31, 2024
 Preferred StockCommon StockAdditional
Paid-in Capital
Accumulated DeficitAccumulated
Other
Comprehensive Loss
Noncontrolling Interests 
SharesAmountSharesAmountTotal
Balance at December 31, 2023800,000 $789.9 138,727,521 $ $1,718.6 $(349.0)$(404.4)$43.3 $1,798.4 
Issuance of common stock, net of issuance costs— — — — (0.1)— — — (0.1)
Restricted stock grants (RSG) — — 379,188 — — — — — — 
Shares retired due to RSG vesting— — (129,011)— (1.6)— — — (1.6)
Shares retired due to common stock repurchase program— — (882,454)— (15.6)8.1 — — (7.5)
Share-based compensation— — — — 5.2 — — — 5.2 
Other comprehensive income (loss):
Unrealized foreign currency translation loss, net of tax— — — — — — (12.0)(0.1)(12.1)
Unrealized foreign currency derivative contract gain, net of tax— — — — — — 9.7 — 9.7 
Common stock dividends— — — — — (33.1)— — (33.1)
Preferred stock dividends— — — — — (10.9)— — (10.9)
Net income— — — — — 37.8 — (0.1)37.7 
Distributions to noncontrolling interests— — — — — — — (0.8)(0.8)
Balance at March 31, 2024800,000 $789.9 138,095,244 $ $1,706.5 $(347.1)$(406.7)$42.3 $1,784.9 





















4



Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
(Unaudited)
(Dollars in millions, except share amounts)
Three Months Ended March 31, 2023
 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, 2022600,000 $592.5 137,790,768 $ $1,679.5 $122.1 $(430.1)$46.4 $2,010.4 
Issuance of common stock— — 1,644,144 — 29.3 — — — 29.3 
Restricted stock grants (RSG) — — 955,756 — — — — — — 
Shares retired due to RSG vesting— — (1,046,430)— (13.4)— — — (13.4)
Share-based compensation— — — — 7.1 — — — 7.1 
Other comprehensive income (loss):
Unrealized foreign currency translation gain, net of tax— — — — — — 13.3 0.8 14.1 
Unrealized foreign currency derivative contract loss, net of tax— — — — — — (1.2)— (1.2)
Common stock dividends— — — — — (33.4)— — (33.4)
Preferred stock dividends— — — — — (7.9)— — (7.9)
Net loss— — — — — (32.9)— 4.2 (28.7)
Contributions from noncontrolling interests— — — — — — — 0.1 0.1 
Distributions to noncontrolling interests— — — — — — — (5.0)(5.0)
Balance at March 31, 2023600,000 $592.5 139,344,238 $ $1,702.5 $47.9 $(418.0)$46.5 $1,971.4 

See accompanying notes to consolidated financial statements.
5

Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
Three Months Ended March 31,
20242023
Cash flows from operating activities:
Net income (loss)$37.7 $(28.7)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on sale of real estate, net(106.4)(19.2)
Depreciation and amortization38.9 39.4 
Above/below market and straight-line rent amortization0.4 (2.4)
Uncollectible lease income0.7 1.8 
Accretion of discount on loans receivable(1.1) 
Provision for credit losses5.6  
Provision for (benefit from) deferred income taxes13.6 (6.2)
Amortization of deferred loan costs2.2 2.1 
Amortization of discount and accretion of premium on senior notes and mortgage debt(2.7)1.3 
Unrealized net loss on derivatives2.1 2.4 
Loss (income) from unconsolidated investments6.7 (5.7)
Operating distributions from unconsolidated investments14.0 19.1 
Deferred compensation(3.7)5.3 
Share-based compensation5.2 7.1 
Change in assets and liabilities:
Accounts receivable13.7 (3.0)
Other assets(1.4)(5.0)
Accounts payable, accrued expenses and other liabilities(31.1)(75.3)
Net cash used in operating activities(5.6)(67.0)
Cash flows from investing activities:
Proceeds from collection of loans receivable2.8 2.1 
Issuance and acquisition of loans receivable, net of discounts(9.5)(3.5)
Net proceeds from sale of consolidated real estate328.2 111.9 
Capital expenditures to real estate(51.5)(39.2)
Proceeds from on settlement of derivative contracts0.3 0.7 
Distributions from unconsolidated investments2.7 15.2 
Contributions to unconsolidated investments(28.2)(50.3)
Net cash provided by investing activities244.8 36.9 
Cash flows from financing activities:
Borrowings under line of credit100.0 25.0 
Repayment of line of credit (60.0)
Borrowings under mortgage debt73.4 310.1 
Repayment of mortgage debt(127.8)(302.7)
Payment of deferred loan costs(0.4)(0.9)
Repurchase and retirement of common stock(9.1)(13.4)
Proceeds from issuance of common stock, net of issuance costs(0.1)29.3 
Common dividends paid(34.1)(35.6)
Preferred dividends paid(10.9)(7.9)
Contributions from noncontrolling interests 0.1 
Distributions to noncontrolling interests(0.8)(5.0)
Net cash used in financing activities(9.8)(61.0)
Effect of currency exchange rate changes on cash and cash equivalents(1.2)1.1 
Net change in cash and cash equivalents(1)
228.2 (90.0)
Cash and cash equivalents, beginning of period313.7 439.3 
Cash and cash equivalents, end of period$541.9 $349.3 
(1) See discussion of non-cash effects in the supplemental cash flow information.
See accompanying notes to consolidated financial statements.
6

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

Supplemental cash flow information:
Three Months Ended March 31,
(Dollars in millions)20242023
Cash paid for:
Interest(1)(2)
$80.9 $78.3 
Income taxes1.1 8.4 
Cash received from consolidated and unconsolidated asset sales and loan repayments, net244.4 102.0 
(1) $0.3 million and $0.7 million attributable to noncontrolling interests for the three months ended March 31, 2024 and 2023, respectively.
(2) Excludes $1.3 million and $1.1 million of capitalized interest for the three months ended March 31, 2024 and 2023, respectively.

    As of March 31, 2024 and December 31, 2023, the Company had $104.6 million and $69.6 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:
Three Months Ended March 31,
(Dollars in millions)20242023
Accrued capital expenditures$5.0 $6.9 
Common dividends declared but not paid on common stock33.1 33.4 
Preferred dividends declared but not paid on preferred stock9.2 6.7 
    
See accompanying notes to consolidated financial statements.
7


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 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 Western United States, United Kingdom and Ireland. The Company also has a global debt platform primarily focused on construction lending secured by high-quality multifamily and student housing properties throughout the United States. 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 real estate assets (primarily multifamily units). The Co-Investment Portfolio consists of (i) the co-investments in real estate and real estate-related assets, including loans secured by real estate, that we have made through the commingled funds and separate accounts that we manage; (ii) fees (including, without limitation, asset management fees, construction management fees, and/or acquisition and disposition fees); and (iii) performance allocations or carried interest that we earn on the Company's co-invested capital.
    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 months ended March 31, 2024 and 2023 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, 2024. 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, 2023. 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.
8


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
    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 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. The Company typically earns origination fees on loan originations in its debt platform business. The fees are earned when the loan closes and are recorded as part of investment management fees for the portion of the loan that the Company does not have an ownership interest in which is typically 95% to 97.5%. The remaining portion of the fee is deferred and accreted over the expected loan term through interest income.
Loan 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.
    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 and are recorded as part of the Other revenue line item on the Company's statement of operations. 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.
9


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
    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 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 March 31, 2024, the Company has $60.9 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 March 31, 2024 and December 31, 2023, the Company has $17.1 million and $22.8 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
10


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
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 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, 2023. The Company did not adopt any new accounting standards during the three months ended March 31, 2024.
    The FASB did not issue any other ASUs during the first three months of 2024 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations.
NOTE 3—REAL ESTATE AND IN-PLACE LEASE VALUE
    The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at March 31, 2024 and December 31, 2023:
 March 31,December 31,
(Dollars in millions)20242023
Land$1,273.9 $1,328.3 
Buildings3,503.2 3,679.1 
Building improvements478.7 511.3 
In-place lease values253.7 276.4 
5,509.5 5,795.1 
Less accumulated depreciation and amortization(906.0)(957.8)
Real estate and acquired in place lease values, net of accumulated depreciation and amortization$4,603.5 $4,837.3 
    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
11


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
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 7.1 years at March 31, 2024.
    Consolidated Acquisitions    
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 three months ended March 31, 2024, Kennedy Wilson did not acquire any consolidated properties.
    Gain on Sale of Real Estate, Net
During the three months ended March 31, 2024, Kennedy Wilson recognized gains on sale of real estate, net of $106.4 million. These gains were primarily due to (i) the Company's sale of the Shelbourne hotel located in Dublin, Ireland, resulting in a gain of $99.1 million; (ii) the sale of a building that is a part of a larger office park resulting in a gain of $21.6 million; and (iii) the remainder of gain on sale of real estate relates to the sale of non-core retail in the United Kingdom. The gain on sale of real estate, net includes an impairment loss of $14.3 million relating to non-core office and retail buildings in the United Kingdom and Spain that were marketed for sale during such period.
During the three months ended March 31, 2023, Kennedy Wilson recognized gains on sale of real estate, net of $19.2 million from the sale of one non-core retail asset in Southern California, six non-core retail assets in the United Kingdom, one residential asset in Hawaii, and one non-core Ireland office asset. The gains on sale of real estate, net include an impairment loss of $6.2 million relating to non-core retail buildings in the United Kingdom and a non-core retail property in the Western United States 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 March 31, 2024:
(Dollars in millions)Minimum
Rental Revenues(1)
2024 (remainder)$81.3 
2025104.0 
2026101.6 
202784.9 
202867.9 
Thereafter164.6 
Total$604.3 
(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.
12


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 March 31, 2024:
(Dollars in millions)MultifamilyCommercialHotelFundsResidential and OtherTotal
Western U.S.$817.2 $69.3 $253.9 $84.7 $175.6 $1,400.7 
Ireland312.6 149.8  5.3  467.7 
United Kingdom 139.8  31.0 20.4 191.2 
Total$1,129.8 $358.9 $253.9 $121.0 $196.0 $2,059.6 
    The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of December 31, 2023:
(Dollars in millions)MultifamilyCommercialHotelFundsResidential and OtherTotal
Western U.S.$820.9 $71.6 $253.0 $96.2 $156.2 $1,397.9 
Ireland313.8 158.7  5.4  477.9 
United Kingdom 139.8  31.5 22.0 193.3 
Total$1,134.7 $370.1 $253.0 $133.1 $178.2 $2,069.1 
    During the three months ended March 31, 2024, the change in unconsolidated investments primarily relates to $28.2 million of contributions to new and existing unconsolidated investments primarily for capital calls for development at Kona Village Resort and Cooper's Cross and new commingled fund in the Western United States, $16.7 million of distributions from unconsolidated investments, $6.7 million of losses from unconsolidated investments (which includes fair value movements), and a $14.0 million decrease related to other items, which primarily related to foreign exchange movements. Please see below for additional details.
    As of March 31, 2024 and December 31, 2023, $1,917.6 million and $1,927.0 million, respectively, of unconsolidated investments were accounted for under fair value. See Note 5 for more detail.
Distributions from Joint Ventures
    The following table details cash distributions by investment type and geographic location for the three months ended March 31, 2024:
MultifamilyCommercialFundsResidential and OtherTotal
(Dollars in millions)OperatingInvestingOperatingInvestingOperatingInvestingOperatingInvestingOperatingInvesting
Western U.S.$8.7 $1.6 $1.8 $ $ $ $0.2 $1.1 $10.7 $2.7 
Ireland2.0  0.9      2.9  
United Kingdom      0.4  0.4  
Total$10.7 $1.6 $2.7 $ $ $ $0.6 $1.1 $14.0 $2.7 
    Operating distributions resulted from operating cash flow generated by the joint venture investments that have been distributed to the Company. Investing distributions related to conversions of VHH properties from development to operating and the redemption of an interest in a hedge fund investment.
(Loss) Income from Unconsolidated Investments
13


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
    The following table presents (loss) income from unconsolidated investments recorded by Kennedy Wilson during the three and three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
(Dollars in millions)20242023
Income from unconsolidated investments - operating performance$7.8 $14.0 
Income from unconsolidated investments - fair value1.9 2.4 
Loss from unconsolidated investments - performance allocations(16.4)(10.7)
$(6.7)$5.7 
    
During the three months ended March 31, 2024, the Company recorded fair value increases from non-cash fair value gains relating to the completion of a merger by the entity that holds the Company's ownership interest in Zonda. Zonda is a technology based real estate business that offers residential construction data providing insights and solutions for leaders in the home building industry. This fair value gain was offset by non-cash fair value losses on: (i) office properties in Western United States, Ireland and United Kingdom due to cap rate expansion and (ii) non-cash fair value losses on mortgage debt as previous non-cash fair value gains unwind as loans move closer to their respective maturity dates.

During the three months ended March 31, 2024, the Company recorded a $16.4 million decrease in the accrual for performance allocations primarily related to the fair value decreases that we recorded with respect to office properties in one of our Western United States commingled funds as described above.

During the three months ended March 31, 2023, we recorded fair value increases with respect to: (i) recorded fair value increases with respect to our investment in Vintage Housing Holdings ("VHH") (our affordable rate multifamily platform) due to gains on the conversion of the status of one of VHH’s largest properties from development to operating and gains associated with the conversion of the loan secured by such property from a floating rate construction loan to a long-term fixed rate mortgage (the rate of which was set in 2019); (ii) recorded fair value increases on certain of our development projects located in Dublin, Ireland as we are near completion in such projects; and (iii) foreign exchange movements, net of any foreign exchange hedges as the euro and pound sterling strengthened against the dollar. These fair value increases were offset by (i) certain office properties in one of our existing commingled funds due to cap rate expansion, which also led to us recording a decrease of the accrued performance allocations with respect to such fund as discussed below; (ii) certain market rate multifamily properties in the Western United States and Ireland and our European industrial assets because of increased interest rates leading to cap rate expansion; (iii) certain secured mortgage debt and interest rate derivatives due to a slight decline in the equivalent fixed rates and time decay in the current period.

During the three months ended March 31, 2023, we recorded a $10.7 million decrease in the accrual for performance allocations primarily related to the fair value decreases that we recorded with respect to one of our commingled funds as described above. These decreases were offset by an increase in performance allocations on our European commingled fund due to the increase in value associated with an investment held by such fund. There is no performance allocation structure that we benefit from with respect to our investment in VHH.

Vintage Housing Holdings
    As of March 31, 2024 and December 31, 2023, the carrying value of the Company's investment in VHH was $285.0 million and $285.9 million, respectively. For the three months ended March 31, 2024 VHH had distributions of $3.8 million and equity income pickup of $3.2 million which, included $0.7 million relating to fair value adjustments.
Capital Commitments
    As of March 31, 2024, Kennedy Wilson had unfulfilled capital commitments totaling $178.2 million to eight of its unconsolidated joint ventures, including $64.5 million relating to four closed-end funds managed by Kennedy Wilson, under the respective operating agreements. The Company may be called upon to contribute additional capital to joint ventures in satisfaction of such capital commitment obligations.
14


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
NOTE 5—FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION
    The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of March 31, 2024:
(Dollars in millions)Level 1Level 2Level 3Total
Unconsolidated investments$ $ $1,917.6 $1,917.6 
Net currency derivative contracts (13.1) (13.1)
Total$ $(13.1)$1,917.6 $1,904.5 
    The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2023:
(Dollars in millions)Level 1Level 2Level 3Total
Unconsolidated investments$ $ $1,927.0 $1,927.0 
Net currency derivative contracts (23.7) (23.7)
Total$ $(23.7)$1,927.0 $1,903.3 
Unconsolidated Investments    
    Kennedy Wilson elected to use the fair value option for 72 unconsolidated investments to more accurately reflect the timing of the value created in the underlying investments and report those results in current operations. Kennedy Wilson's investment balance in the FV Option investments was $1,803.0 million and $1,793.9 million at March 31, 2024 and December 31, 2023, respectively, which is included in unconsolidated investments in the accompanying balance sheets.
    Additionally, Kennedy Wilson records its investments in the Funds 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. Kennedy Wilson’s investment balance in the Funds was $114.6 million and $133.1 million at March 31, 2024 and December 31, 2023, respectively, which is included in unconsolidated investments on the accompanying consolidated balance sheets. See Note 4 for more information on the fluctuations for these investments.
    In estimating fair value of real estate held by the Funds and the 72 FV Option investments, the Company considers significant unobservable inputs to be the capitalization and discount rates.
The following table presents changes in Level 3 investments in Funds and FV Options for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
(Dollars in millions)20242023
Beginning balance$1,927.0 $2,093.7 
Unrealized and realized gains39.4 56.6 
Unrealized and realized losses(51.0)(56.4)
Contributions27.9 50.7 
Distributions(13.0)(30.1)
Foreign exchange(12.0)11.3 
Other(0.7)(0.3)
Ending balance$1,917.6 $2,125.5 
Unobservable Inputs for Real Estate
The Company accounts for a number of unconsolidated investments under fair value, the accuracy of estimating fair value 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. Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had impact on the inputs associated with fair values.
15


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including market-derived estimated 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.
Ongoing macroeconomic conditions, such as, but not limited to, elevated levels of inflation and interest rates, banks' ability and willingness to lend, recent adverse developments affecting regional banks and other financial institutions, currency fluctuations and the ongoing military conflicts around the world, continue to fuel recessionary fears and create volatility in our business results and operations. Any prolonged downturn in the financial markets or a recession, either globally or locally in the United States or in other countries in which we conduct business, could impact the fair value of investments held by the Company. As a result of the rapid development, fluidity and uncertainty surrounding these situations, the Company expects that information with respect to fair value measurement may change, potentially significantly, going forward and may not be indicative of the actual impact on our business, operations, cash flows and financial condition for the three months ended March 31, 2024 and future periods.
In determining estimated fair market values, the Company utilizes two approaches to value real estate, a discounted cash flow analysis and direct capitalization approach.
Discounted cash flow models estimate future cash flows from a buyer's perspective (including terminal values) and compute a present value using a market discount rate. The holding period in the analysis is typically ten years. This is consistent with how market participants often estimate values in connection with buying real estate but these holding periods can be shorter depending on the life of the structure an investment is held within. The cash flows include a projection of the net sales proceeds at the end of the holding period, computed using a market reversionary capitalization rate.
Under the direct capitalization approach, the Company applies a market derived capitalization rate to current and future income streams with appropriate adjustments for tenant vacancies or rent-free periods. These capitalization rates and future income streams are derived from comparable property and leasing transactions and are considered to be key inputs in the valuation. Other factors that are taken into consideration include tenancy details, planning, building and environmental factors that might affect the property.
The Company also utilizes valuations from independent real estate appraisal firms on some of its investments ("appraised valuations"), with certain investment structures requiring appraised valuations periodically (typically annually). All appraised valuations are reviewed and approved by the Company.
The table below describes the range of unobservable inputs for real estate assets as of March 31, 2024:
Estimated Rates Used for
Capitalization RatesDiscount Rates
MultifamilyIncome approach - discounted cash flow
5.00% —7.20%
6.50% — 9.70%
Income approach - direct capitalization
4.30% — 5.80%
N/A
OfficeIncome approach - discounted cash flow
5.20% — 7.50%
7.30% — 9.30%
Income approach - direct capitalization
4.50% — 9.30%
N/A
Industrial Income approach - discounted cash flow
5.00% — 6.30%
6.30% — 7.80%
Income approach - direct capitalization
4.00% — 9.00%
N/A
RetailIncome approach - discounted cash flow
6.50%
8.30%
HotelIncome approach - discounted cash flow
6.00%
8.30%
    In valuing indebtedness, the Company considers significant inputs such as the term of the debt, value of collateral, credit quality of investment entities and market interest rates and spreads as well as market loan-to-value ratios relative to the Company's debt instruments. The credit spreads used by Kennedy Wilson to value floating rate indebtedness range from 2.00% to 4.60%, while the market rates used to value fixed rate indebtedness range from 4.6% to 9.3%.
    There is no active secondary market for the Company's development projects and no readily available market value given the uncertainty of the amount and timing of future cash flows. Accordingly, its determination of fair value of its development projects requires judgment and extensive use of estimates. Therefore, the Company typically uses investment cost
16


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
as the estimated fair value until future cash flows become more predictable. Additionally, the fair value of its development projects may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. If the Company were required to liquidate an investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.
Currency Derivative Contracts
    Kennedy Wilson uses foreign currency derivative contracts such as forward contracts and options to manage its foreign currency risk exposure against the effects of a portion of its certain non-U.S. dollar denominated currency net investments. Foreign currency options are valued using a variant of the Black-Scholes model tailored for currency derivatives and the foreign currency forward contracts are valued based on the difference between the contract rate and the forward rate at maturity of the underlying currency applied to the notional value in the underlying currency discounted at a market rate for similar risks. Although the Company has determined that the majority of the inputs used to value its currency derivative contracts fall within Level 2 of the fair value hierarchy, the counterparty risk adjustments associated with the currency derivative contracts utilize Level 3 inputs. However, as of March 31, 2024, Kennedy Wilson assessed the significance of the impact of the counterparty valuation adjustments on the overall valuation of its derivative positions and determined that the counterparty valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Company has determined that its derivative valuation in its entirety be classified in Level 2 of the fair value hierarchy.
     Changes in fair value are recorded in other comprehensive income (loss) on the accompanying consolidated statements of comprehensive income as the portion of the currency forward and option contracts used to hedge currency exposure of its certain consolidated subsidiaries qualifies as a net investment hedge under ASC Topic 815, Derivatives and Hedging. Changes in fair value on hedges associated with investments that are held at fair value are recorded through principal co-investments within income from unconsolidated investments. The Company has elected to amortize the spot to forward difference ("forward points") to interest expense over the contractual life of the hedges. On hedges associated with fair value investments the forward point amortization to interest expense is recorded as a component of principal co-investments.
    The fair value of the currency derivative contracts held as of March 31, 2024 and December 31, 2023 are reported in other assets for hedge assets and included in accrued expenses and other liabilities for hedge liabilities on the accompanying consolidated balance sheets.
    The table below details the currency derivative contracts Kennedy Wilson held as of March 31, 2024 and the activity during the three months ended March 31, 2024.
(Dollars, Euros and British Pound Sterling in millions)March 31, 2024Three Months Ended March 31, 2024
Currency HedgedUnderlying CurrencyNotionalHedge AssetsHedge LiabilitiesOCI Gains (Losses) Income Statement Gains Interest ExpenseCash Received
Outstanding
EURUSD287.5 $4.4 $(12.9)$0.2 $6.0 $1.1 $ 
EUR(1)
GBP40.0  (1.2)(0.8)   
EUR(1)(2)
GBP475.0   7.8    
GBPUSD£475.0 11.3 (14.7)3.7 0.5 0.4  
Total Outstanding15.7 (28.8)10.9 6.5 1.5  
Settled
GBPUSD  (0.2) 0.1 0.3 
Total Settled  (0.2) 0.1 0.3 
Total $15.7 $(28.8)$10.7 
(3)
$6.5 $1.6 $0.3 
(1) Hedge is held by KWE on its wholly-owned subsidiaries.
17


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
(2) Relates to KWE's Euro Medium Term Note. See discussion in Note 10.
(3) Excludes deferred tax expense of $0.8 million relating to activity for the three months ended March 31, 2024. Also excludes $0.7 million of hedge gains and $0.6 million of deferred tax expense that were reclassified out of other comprehensive income.

    The gains recorded through other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying investments that they were hedging are substantially liquidated by Kennedy Wilson. During the three months ended March 31, 2024, the Company reclassified a loss of $8.7 million from other comprehensive income to gain on sale of real estate relating to the sale of the Shelbourne hotel which consisted of $9.5 million loss associated with foreign currency translation adjustments and a $0.8 million gain on hedges that had been previously recognized to other comprehensive income.
The currency derivative contracts discussed above are offset by foreign currency translation of the Company's foreign net assets. For the three months ended March 31, 2024, Kennedy Wilson had a gross foreign currency translation loss on its net assets of $17.4 million. As of March 31, 2024, the Company has hedged 96% of the net asset carrying value of its euro denominated investments and 93% of the net asset carrying value of its GBP denominated investments. See Note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations.

Interest Rate Swaps and Caps

    The Company has interest rate swaps and caps to hedge its exposure to rising interest rates. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value gains of $9.7 million for the three months ended March 31, 2024. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $2.3 million gain recorded in principal co-investments. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value losses of $2.9 million for the three months ended March 31, 2023. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $3.1 million loss through principal co-investments for the three months ended March 31, 2023.
Fair Value of Financial Instruments
    The carrying amounts of cash and cash equivalents, accounts receivable including related party receivables, accounts payable, accrued expenses and other liabilities, accrued salaries and benefits, and deferred and accrued income taxes approximate fair value due to their short-term maturities. The carrying value of loans (excluding related party loans as they are presumed not to be an arm’s length transaction) approximates fair value as the terms are similar to loans with similar characteristics available in the market.
    Debt liabilities are accounted for at face value plus net unamortized debt premiums/discounts and any fair value adjustments as part of business combinations. The fair value as of March 31, 2024 and December 31, 2023 for the mortgage debt, Kennedy Wilson unsecured debt, and KWE unsecured bonds were estimated to be approximately $4.8 billion and $4.8 billion, respectively, based on a comparison of the yield that would be required in a current transaction, taking into consideration the risk of the underlying collateral and the Company's credit risk to the current yield of a similar security, compared to their carrying value of $5.3 billion and $5.3 billion at March 31, 2024 and December 31, 2023, respectively. The inputs used to value the Company's mortgage debt, Kennedy Wilson unsecured debt, and KWE unsecured bonds are based on observable inputs for similar assets and quoted prices in markets that are not active and are therefore determined to be Level 2 inputs.
NOTE 6—LOANS
The global debt platform consists of two groups: our construction lending portfolio, which was established with the acquisition of pool of construction loans from Pacific Western Bank in the second quarter of 2023 and our bridge loan portfolio.
The construction lending portfolio has a current outstanding balance of $2.6 billion (Kennedy Wilson share of $126.0 million), not including the 4.5% discount on gross commitment amounts from the time of purchase. As of March 31, 2024, we had unfulfilled capital commitments totaling $92.2 million to our loan portfolio.
18


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
The Company has loan purchases and originations of $250.4 million and $247.2 million at March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024 and 2023, the Company had loan income of $8.1 million and $3.7 million, respectively. For the three months ended March 31, 2024, the Company recorded a $5.6 million credit loss reserve through other income with no comparable activity in the prior period. See Note 2 for more detail on CECL reserves.
NOTE 7—OTHER ASSETS
    Other assets consist of the following: 
(Dollars in millions)March 31, 2024December 31, 2023
Straight line rent receivable$42.8 $45.8 
Interest rate caps and swaps27.2 29.0 
Goodwill23.9 23.9 
Hedge assets15.7 13.3 
Prepaid expenses13.6 13.1 
Deferred taxes, net9.3 10.0 
Right of use asset, net8.7 8.9 
Leasing commissions, net of accumulated amortization of $12.5 and $13.4 at March 31, 2024 and December 31, 2023, respectively
8.1 9.0 
Furniture and equipment net of accumulated depreciation of $21.2 and $30.8 at March 31, 2024 and December 31, 2023, respectively
5.9 7.0 
Above-market leases, net of accumulated amortization of $40.6 and $42.4 at March 31, 2024 and December 31, 2023, respectively
2.1 2.5 
Other25.1 25.0 
Other Assets$182.4 $187.5 

Right of use asset, net

    The Company, as a lessee, has three office leases and two ground leases, which qualify as operating leases, with remaining lease terms of 2 to 235 years. The payments associated with office space leases have been discounted using the Company's incremental borrowing rate which is based on collateralized interest rates in the market and risk profile of the associated lease. For ground leases the rate implicit in the lease was used to determine the right of use asset.

    The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted to calculate the right of use asset and related lease liability for its operating leases in which we are the lessee:
(Dollars in millions)Minimum
Rental Payments
2024 (remainder)$0.8 
20251.0 
20261.3 
20271.4 
20281.3 
Thereafter30.8 
Total undiscounted rental payments36.6 
Less imputed interest(28.0)
Right of use asset, net$8.6 

19


Kennedy-Wilson Holdings, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
NOTE 8—MORTGAGE DEBT
    The following table details mortgage debt secured by Kennedy Wilson's consolidated properties as of March 31, 2024 and December 31, 2023:
(Dollars in millions)
Carrying amount of
mortgage debt as of (1)
Mortgage Debt by Product TypeRegionMarch 31, 2024December 31, 2023
Multifamily(1)
Western U.S.$1,744.4