Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 115

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 115
---
  These increases were offset by interest expense due to the increase in assets in the Co-Investment portfolio.    During the nine months ended September 30, 2025, the Company recorded fair value decreases with respect to: (i) fair value losses associated with the recapitalization of a multifamily property portfolio, comprised of nine (9) properties in the Western United Sates, which resulted in the Company's interest decreasing from 51% to 10%; (ii) fair value decreases at an Irish office asset as its lease up period pushes out and decreases in expected market rents; (iii) fair value decreases on U.S. office assets;  (iv) fair value decreases associated with mortgages as lower cost mortgages move closer to maturity dates; and (v) costs associated with originating new mortgages.  These fair value decreases were offset by (i) non-cash fair value gains on multifamily assets in Western United States and Ireland from increased operations at such properties; (ii) fair value increases on VHH due to increases in operations; (iii) fair value increase on a minority interest the Company owns in a technology based real estate business that offers residential construction data providing insights and solutions for leaders in the home building industry ("Zonda") relating to improvements in the underlying business and (iv) foreign exchange gains, net of hedges, as the euro and GBP increased in value in relation to the dollar during the current period. During the nine months ended September 30, 2025, the Company recorded a $5.4 million decrease in the accrual for carried interests in our Funds primarily related to the fair value decreases that we recorded with respect to a delayed disposition of office assets in one of our Western United States commingled funds and a $4.0 million increase in carried interests on certain separate account platforms that hold multifamily assets in the Western United States. As of September 30, 2025, the Company’s net accrued carried interests totaled $26.3 million.  During the nine months ended September 30, 2024, the Company recorded fair value decreases with respect to: (i) certain office properties located in Ireland, United States and the United Kingdom due to a lower market assumptions of vacancy and rental growth (ii) non-cash fair value losses on mortgage debt and hedges associated with interest rates as previous non-cash fair value gains unwind as loans and hedges move closer to maturity dates. These fair value decreases were offset by (i) fair value increases with respect to our