Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 177

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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 interest expense net of the impact of interest rate derivatives as part of its interest rate risk analysis.     

57

Co-Investment Portfolio Segment

Investment Management

     We receive fees, including asset management fees, construction management fees, and/or acquisition and disposition fees, for managing assets in our Co-Investment Portfolio on behalf of our partners.  During the three months ended June 30, 2025, we had fees recorded through revenues of $36.4 million as compared to $26.1 million for the same period in 2024. During the three months ended June 30, 2025, the increase primarily related to a $7 million one-time development completion fee related to the completion of a Southern California development project and an acquisition fee related to the closing of a multifamily property in Seattle in a new separate account platform.

Co-Investment Operations - Loans

Loan income decreased to $5.7 million during the three months ended June 30, 2025 as compared to $8.0 million for the same period in 2024.  These amounts represent interest income on our share of loan investments within our global real estate credit platform and the decrease is due to our newer originations being at a lower ownership percentage than previous loans. Loans in our construction portfolio have moved from 5% ownership on legacy loans to 2.5% on any new originations. Loans in our bridge loan portfolio were also at ownership levels 5% and greater. Although the platform is growing we expect to have lower interest income levels and higher management fee levels going forward.

Co-Investment Operations - Real Estate

    In addition to our management of investments in the Co-Investment Portfolio, we have ownership interests in the properties that sit within our Co-Investment Portfolio.  The table below represents a breakout of the amounts within income from unconsolidated investments which represents our share of underlying property investments in the Co-Investment Portfolio assets for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,20252024RevenueRental$77.8 $72.0 Hotel 8.9 6.4 Sale of real estate— 16.7 Total revenue86.7 95.1 Fair value/other adjustments(7.5)(12.8)Carried interests(2.0)(12.3)ExpensesRental24.6 23.6 Hotel9.0 8.3 Cost of real