Company: KW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001408100-25-000084
Chunk: 103

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 103
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 compensation under Code Section 162(m), changes in our estimated state effective tax rate and KWE recognizing higher tax gain on sales of real estate, which is offset by a partial release of the valuation allowance against the deferred tax asset associated with our excess tax basis in the KWE investment.  During the year ended December 31, 2024, our net deferred tax asset (and associated valuation allowance) related to our excess tax basis in the legacy UK real estate assets increased due to book depreciation taken on UK real estate buildings, which is not subjected to depreciation for UK tax purposes.  In addition, the deferred tax asset (and associated valuation allowance) related to our investment in KWE increased due to higher taxable income compared to book income.

Preferred dividends were $43.5 million for the year ended December 31, 2024 as compared to $38.0 million for the year ended December 31, 2023.  The increase was due to the issuance of $200 million of our Series C cumulative perpetual preferred stock to affiliates of Fairfax Financial Holdings Limited (collectively, "Fairfax") during June 2023.  

Comprehensive Income 

The two major components that drive the change in other comprehensive income are the changes in foreign currency rates and the gains or loss of any associated foreign currency hedges. Please refer to the section titled "Currency Risk - Foreign Currencies" in Item 7 for a discussion of our risks relating to foreign currency and our hedging strategy.  Below is a table that details the activity for the years ended December 31, 2024 and 2023.  

Year Ended December 31,(Dollars in millions)20242023Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(76.5)$(341.8)Unrealized foreign currency translation (loss) gain, net of noncontrolling interests and tax(36.1)31.3 Amounts reclassified out of accumulated other comprehensive loss during the period5.1 — Unrealized foreign currency derivative contract gain (loss), net of noncontrolling interests and tax29.5 (5.5)Comprehensive loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(78.0)$(316.0)

The main currencies that the Company has exposure to are the euro and pound sterling.  The table below represents the change in rates over the years ended December 31, 2024 and 2023 as compared to the U.S.