Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 179

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 179
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ii) recorded fair value increases on foreign exchange movements, net of hedges on our euro and GBP denominated fair value investments.

During the three months ended June 30, 2024, we recorded a $12.3 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.

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

Expenses

Co-Investment Portfolio expenses increased to $17.8 million for the three months ended June 30, 2025 as compared to $16.8 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 $11.0 million for the three months ended June 30, 2025 as compared to $10.0 million for the three months ended June 30, 2024 due to higher stock based compensation due to the timing of grants in the prior period for the three months ended June 30, 2025.

    Interest expense was $26.2 million for the three months ended June 30, 2025 as compared to $24.4 million for the same period in 2024.  For the three months ended June 30, 2025, we had higher average outstanding balance drawn on the line of credit. 

Other (loss) income decreased to a loss of $1.9 million for the three months ended June 30, 2025 as compared to other income of $3.0 million for the same period in 2024. During the current reporting period, we recorded mark to market fair value decreases of $0.2 million on interest rate caps and swaps that the Company bought to hedge its variable rate interest rate exposure compared to an increase of $1.4 million in the prior period.  The fair value of these contracts has declined period over period as the expectation of future interest rate hikes has declined, the maturity dates of some of our contracts are closer in time than in the prior period and we are starting to receive payments on such contracts.  We