Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 40

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 40
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 maturity dates. These fair value decreases were offset by non-cash fair value gain relating to the completion of a merger by entity that holds our ownership interest in Zonda.

During the six months ended June 30, 2024, we recorded a $28.7 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.

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Segment Expenses

Co-Investment Portfolio expenses increased to $32.4 million for the six months ended June 30, 2025 as compared to $27.6 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 $3.1 million and$8.5 million the six months ended June 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 $20.5 million for the six months ended June 30, 2025 as compared to $19.8 million for the six months ended June 30, 2024 due to higher share-based compensation due to the timing of share grants in the prior period.  

    Non-Segment interest expense was $51.7 million for the six months ended June 30, 2025 as compared to $49.2 million for the same period in 2024 due to higher average outstanding balance on the revolving line of credit in the current period.  Interest expense was offset by $0.6 million and $4.6 million that we received on interest rate derivative contracts that paid out during the six months ended June 30, 2025 and 2024 recorded to other income which is discussed below   

Other income decreased to $6.1 million for the six months ended June 30, 2025 as compared to $12.6 million for the same period in 2024. During the six months ended June 30, 202