Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 223

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 223
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— Fixed rate borrowings413.0 106.5 102.0 336.6 1,407.4 1,419.2 3,784.7 3,547.2 Average interest rate3.41 %5.64 %3.86 %4.68 %4.79 %4.45 %4.50 %— Total$441.0 $417.8 $353.1 $447.5 $1,407.4 $1,586.8 $4,653.6 $4,410.1 Weighted average interest rate3.58 %6.01 %5.62 %5.12 %4.79 %4.62 %4.82 %

(*) Represents principal balance of interest rate receivables, excluding $2.0 million of unamortized discount and $20.3 million of loan loss reserves.

Currency Risk - Foreign Currencies 

    A significant portion of our business is located outside the United States. As such, we have foreign currency fluctuation risk with respect to those investments and business units. In certain instances, we utilize foreign currency hedging derivatives to mitigate the impact of this risk on our equity.  

    The financial statements of Kennedy Wilson's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The foreign currencies primarily include the euro and GBP. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income. Currency translation gains and losses and currency derivative gains and losses will remain in other comprehensive income unless and until the Company substantially liquidates the underlying investments. 

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    Approximately 37% of our investment account is invested through our foreign platforms in their local currencies.   Investment level debt is generally incurred in local currencies and therefore we consider our equity investment as the appropriate exposure to evaluate for hedging purposes.  In order to manage the effect of these fluctuations, we generally hedge our book equity exposure to foreign currencies through currency forward contracts and options.  As of June 30, 2025, we have hedged 96% of the net asset carrying value of our