Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 252

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 252
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 KWE on its wholly-owned subsidiaries.(2) Relates to KWE's Euro Medium Term Note.  See discussion in Note 10.(3) Relates to amount outstanding denominated in euro on the Company's revolving line of credit(4) Excludes deferred tax benefit of $12.7 million.    The amounts 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. The Company recognized a $0.4 million gain on a foreign currency hedge that was associated with the sale of office buildings in Ireland during the nine months ended September 30, 2025.  The currency derivative contracts discussed above are offset by foreign currency translation of the Company's foreign net assets.  For the nine months ended September 30, 2025, Kennedy Wilson had a gross foreign currency translation gain on its net assets of $79.3 million. As of September 30, 2025, the Company has hedged 117% of the net asset carrying value of its euro denominated investments and 85% of the net asset carrying value of its GBP denominated investments.  The Company entered into some euro denominated hedges at the end of the third quarter 2025 in anticipation of the repayment of the KWE Notes, which were accounted for as a hedging instrument against euro denominated assets, on October 3, 2025.  After the repayment of the KWE Notes the Company was 97% hedged on euro denominated assets. See Note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations.Interest Rate Derivatives    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 losses of $2.1 million for the nine months ended September 30, 2025.  Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $1.4 million loss 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 gains of $6.7 million for the nine months ended September 30, 2024. Some of the Company's unconsolidated investments have interest rate caps, which resulted in