Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 322

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 322
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 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 receivable totaled $26.3 million.  

During the nine months ended September 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 higher market assumptions of vacancy and lower rental growth rates; (ii) non-cash fair 

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value losses on mortgage debt and interest rate derivatives as previous fair value increases unwind as loans move closer to maturity dates. These fair value decreases were offset by fair value increases related to our investment in Zonda due to increased EBITDA from its recently completed merger and fair value increases in VHH due to increasing NOI at the 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