Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 301

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 301
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; and (iv) certain U.S. office assets.  These fair value decreases were offset by (i) fair value increases on VHH due to increases in NOI and (iii) foreign exchange gains, net of hedges as euro and GBP increased in value in relation to the dollar in the current period.  

During the three months ended June 30, 2025, we recorded a $2.0 million decrease in the accrual for carried interests primarily related to certain separate account platforms that hold multifamily assets in the Western United States primarily due to changes in the projected lengths of hold.

During the three months ended June 30, 2024, we recorded non-cash fair value losses with a decrease of approximately 1% in fair values. The minor decreases primarily related to: (i) certain office properties located in Ireland, United States and the United Kingdom due to lower market assumptions of vacancy and rental growth; (ii) certain market rate multifamily properties in the Western United States because of lowered projected growth on NOI; and (iii) non-cash losses on the fair value of debt and interest rate hedges as mortgages move closer to their maturity dates. These fair value decreases were offset by (i) non-cash fair value increases on our investment in Zonda due to increased EBITDA from its recently completed merger and (ii) recorded fair value increases on foreign exchange movements, net of hedges on our euro and GBP denominated fair value investments.

During the three months ended June 30, 2024, we recorded a $12.3 million decrease in the accrual for carried interests primarily related to the fair value decreases that we recorded on (i) commingled funds in the United States due to declines in the value of office assets (as discussed above) and (ii) certain separate account platforms that hold multifamily assets in the Western United States.

Please also see Part I. Item 1. "Fair Value Investments" for additional details.

Expenses

Co-Investment Portfolio expenses increased to $17.8 million for the three months ended June 30, 2025 as compared to $16.8 million for the same period in 2024. The increase compared to the prior period was primarily due to decrease in the reversal of previously recognized carried interest expense allocations and lower reserves for credit losses in our debt business.  

    Non-Segment Items

Compensation expense increased to $11.0 million for the three months ended June 30,