Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 254

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 254
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 Company's bridge loan portfolio includes loans secured by multifamily, office, retail, industrial and hotel assets in the Western United States and United Kingdom.  It also includes certain mezzanine loans that are fixed rate with maturities of 5 to 10 years and are secured by office or multifamily properties in the Western United States.  The Company has loan purchases and originations outstanding of $216.1 million and $231.1 million at September 30, 2025 and December 31, 2024, respectively.  For the three and nine months ended September 30, 2025 the Company had loan income of $5.7 million and $17.2 million, respectively, and for the three and nine months ended September 30, 2024 the Company had loan income of $7.6 million and $23.7 million, respectively. The Company had $13.0 million and $47.8 million of investment management fees which includes base management fees and origination fees for the three and nine months ended September 30, 2025, respectively, as compared to $10.7 million and $39.9 million for the three and nine months ended September 30, 2024, respectively. The decline in the loan balance and interest income is primarily due to the Company taking a lower ownership percentage in newer loans.  The Company's lower ownership interest however, leads to higher investment management fees as the Company receives higher fees as it increases the amount of assets under management.  During the nine months ended September 30, 2025, the Company also completed a deed-in-lieu transaction on a retail asset in its bridge loan portfolio that had a $14.4 million loan balance at the Company's share. The Company did not recognize any gain or loss as the fair value of the underlying real estate approximated the loan balance.    

For the three and nine months ended September 30, 2025, the Company recorded a $0.9 million and $4.0 million credit loss reserve, and for the three and nine months ended September 30, 2024, the Company recorded a $1.5 million and $10.3 million credit loss reserve, respectively, in other income. See Note 2 for more detail on CECL reserves.  

21

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

NOTE 7—OTHER ASSETS, NET