Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 118

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 118
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 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 and six months ended June 30, 2025 and 2024:Three Months Ended June 30,Six Months Ended June 30,(Dollars in millions)2025202420252024Beginning balance$1,911.1 $1,918.9 $1,884.4 $1,927.0 Unrealized and realized gains16.6 15.4 49.3 56.1 Unrealized and realized losses(32.3)(40.3)(62.6)(91.3)Contributions45.9 31.1 64.4 59.0 Distributions(164.8)(13.5)(183.5)(26.5)Foreign exchange52.8 2.4 77.6 (9.6)Other0.3 — — (0.7)Ending balance$1,829.6 $1,914.0 $1,829.6 $1,914.0 Unobservable Inputs for Real EstateThe 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 

17

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

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. 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, uncertainty and volatility of debt and equity markets driven by changing tariff policies, elevated levels of inflation and interest rates, banks' ability and willingness to lend, and other financial institutions 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