Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 29

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 29
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iii) declines in 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) fair value increases at VHH due to increased NOI at the properties and lowered cost of capital associated with the business due to decreases in interest rates (ii) fair value increases related to our investment in Zonda due to increased EBITDA from its recently completed merger and (iii) fair value increases on foreign exchange movements, net of hedges on our euro and GBP denominated fair value investments.

During the three months ended September 30, 2024, we recorded a $16.4 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 primarily due to changes in the projected lengths of hold.

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

Expenses

Co-Investment Portfolio expenses increased to $20.0 million for the three months ended September 30, 2025 as compared to $12.3 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 $10.5 million for the three months ended September 30, 2025 as compared to $10.4 million for the three months ended September 30, 2024 due to higher stock based compensation due to the timing of grants in the prior period for the three months ended September 30, 2025.

    Interest expense was $24.2 million for the three months ended September 30, 2025 as compared to $25.6 million for the same period in 2024.  For the three months ended September 30, 2025, we had a lower average outstanding balance drawn on the line of credit. 

Other income increased to $0.2 million for the three months ended September 30, 2025 as compared to other loss of $8.3 million for the same period in 2024. During the current reporting period, we recorded mark to market fair value increases of