Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 101

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 101
---
 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 Company's global debt platform consists of two portfolios: the Company's construction lending portfolio, which was established with the acquisition of the Construction Loan Portfolio from a bank in the second quarter of 2023, and the Company's bridge loan portfolio.Within its construction loan portfolio, the Company focuses on originating senior loans to high quality sponsors secured primarily by new market-rate apartment or student housing properties across the United States.  The current outstanding balance of commitments total $2.5 billion (Kennedy Wilson share of $112.6 million).  As of March 31, 2025, we had unfulfilled capital commitments totaling $130.9 million to our loan portfolio.The 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 completed loan purchases and originations of $205.1 million and $231.1 million as of March 31, 2025 and December 31, 2024, respectively.  For the three months ended March 31, 2025 and 2024 the Company had loan income of $5.8 million and $8.1 million, respectively.  The Company had $15.9 million of investment management fees, which includes base management fees and origination fees, for the three months ended March 31, 2025 as compared to $13.3 million for three months ended March 31, 2024.  The decline in the loan balance and interest income is due to the Company taking a lower ownership percentage in newer loans in order to continue to grow the portfolio.  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.  The Company also completed a deed-in-lieu transaction on a retail asset in its bridge loan portfolio that had a $14.4 million balance at the Company's share.  The Company did not recognize any gain or loss as the fair value