Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 302

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 302
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 2025 as compared to $10.0 million for the three months ended June 30, 2024 due to higher stock based compensation due to the timing of grants in the prior period for the three months ended June 30, 2025.

    Interest expense was $26.2 million for the three months ended June 30, 2025 as compared to $24.4 million for the same period in 2024.  For the three months ended June 30, 2025, we had higher average outstanding balance drawn on the line of credit. 

Other (loss) income decreased to a loss of $1.9 million for the three months ended June 30, 2025 as compared to other income of $3.0 million for the same period in 2024. During the current reporting period, we recorded mark to market fair value decreases of $0.2 million on interest rate caps and swaps that the Company bought to hedge its variable rate interest rate exposure compared to an increase of $1.4 million in the prior period.  The fair value of these contracts has declined period over period as the expectation of future interest rate hikes has declined, the maturity dates of some of our contracts are closer in time than in the prior period and we are starting to receive payments on such contracts.  We received $0.3 million and $1.9 million in cash payments on these contracts during the three months ended June 30, 2025 and 2024.  For the three months ended June 30, 2025, we also had $2.0 million in dead deal costs.  

Our income tax provision was $4.4 million for the three months ended June 30, 2025 as compared to an $11.8 million income tax benefit for the same period in 2024. The decrease in income tax benefit is primarily attributable to additional pre-tax book income in the current period as compared to the same period in 2024. Our effective tax rate for the three months ended June 30, 2025 was 44.0% as compared to an effective tax rate of 19.7% for the same period in 2024. Significant items impacting the quarterly tax provision include: tax charges associated with non-deductible executive compensation under IRC Section 162(m) and additional valuation allowance against the Company's deferred tax asset on the outside basis difference of its investment in KWE.

59

    Other Comprehensive (Loss)