Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 321

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 321
---
)Provision for income taxes— (0.4)Income (loss) from unconsolidated investments$45.7 $(45.1)    

The increase in income from unconsolidated investments is primarily due to the following:

Operating performance

The increase in income from unconsolidated investments related to the following items: (i) the recapitalization of a 687-unit Southern California multifamily community that the Company did not account for at fair value, reducing the Company's ownership from 51% to 10% through a new joint venture and resulting in $17.0 million of cash and a gain on sale of real estate, net of $17.1 million; (ii) increase in rental operations due to the growth of our Co-Investment Portfolio; and (iii) improved hotel operations at Kona Village as the property continues to progress towards.  These increases were offset by interest expense due to the increase in assets in the Co-Investment portfolio.    

Fair Value

During the nine months ended September 30, 2025, the Company recorded fair value decreases (i) fair value losses associated with the recapitalization of a multifamily portfolio consisting of nine (9) properties, totaling 2,809 units, reducing the Company's ownership from 51% to 10%, (ii) fair value decreases at an Irish office asset as its lease up period pushes out and decreases in expected market rents; (iii) fair value decreases on U.S. office assets;  (iv) fair value decreases associated with mortgages as lower cost mortgages move closer to maturity dates and (v) costs associated with originating new mortgages.    These fair value decreases were offset by (i) non-cash fair value gains on multifamily assets in Western United States and Ireland from increased NOI at the properties (ii) fair value increases on VHH due to increases in NOI as well (iii) fair value increase at Zonda due to improvements in the underlying business and (iv) foreign exchange gains, net of hedges as euro and GBP increased in value in relation to the dollar in the current period. 

During the nine months ended September 30, 2025, the Company recorded a $5.4 million decrease in the accrual for carried interests in our Funds primarily related to the fair value decreases that we recorded with respect to one of our Western United States commingled funds as the timing of disposing office assets has been pushed out and $4.0 million increase in carried interests on