Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 41

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 41
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 properties and the reduction of cost of capital for the business as interest rates have come down.

During the nine months ended September 30, 2024, we recorded a $45.1 million decrease in the accrual for carried interests primarily related to the fair value decreases that we recorded with respect to (i) one of our Western United States commingled funds (as discussed above) and (ii) certain separate account platforms that hold multifamily assets in the Western United States primarily due to changes in the projected length of hold.

Segment Expenses

Co-Investment Portfolio expenses increased to $52.4 million for the nine months ended September 30, 2025 as compared to $39.9 million during the prior period. The increase compared to the prior period was primarily due to higher allocation of corporate expenses due to the growth of the real estate credit business as well as a lower reversal of previously recognized carried interest expense allocations. We also had a $4.0 million and $10.3 million the nine months ended September 30, 2025 and 2024, respectively of general reserves that we recorded in other income on our loan portfolio relating to our bridge loan portfolio as market conditions indicate that there could be potential credit losses due to the current interest rate environment and general market conditions.

    Non-Segment Items

Compensation and related expenses, corporate increased to $31.0 million for the nine months ended September 30, 2025 as compared to $30.2 million for the nine months ended September 30, 2024 due to higher share-based compensation due to the timing of share grants in the prior period.  

    Non-Segment interest expense was $75.9 million for the nine months ended September 30, 2025 as compared to $74.8 million for the same period in 2024 due to higher amortization of non-cash debt issuance costs relating to the Third A&R Facility that closed in September 2024. Interest expense was offset by $0.8 million and $6.5 million that we received on interest rate derivative contracts that paid out during the nine months ended September 30, 2025 and 2024 recorded to other income which is discussed below   

Other loss increased to $5.9 million for the nine months ended September 30, 2025 as compared to other income of $4.3 million for the same period in 2024. During the nine months ended September