Company: KW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001408100-25-000084
Chunk: 122

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 122
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 prime rate, EURIBOR, GBP LIBOR, SOFR, SONIA plus an applicable borrowing margin. Additionally, in order to mitigate some of the risk associated with increasing interest rates, we have purchased interest rate caps that limit the amount that interest expense can increase with rate increases.  However, some of our debt is uncapped and the mortgages that do have interest caps are subject to increased interest expense until rates hit the level of caps that have been purchased.  If there was a 100-basis point increase or decrease, we would have a $3.3 million increase in interest expense or $8.0 million decrease in interest expense savings during 2025 on our current share of indebtedness. The weighted average strike price on caps and maturity of Kennedy Wilson’s variable rate mortgages are 3.17% and approximately 1.2 years, respectively, as of December 31, 2024. 

The table below represents contractual balances of our financial instruments at the expected maturity dates as well as the fair value as of December 31, 2024.  The weighted average interest rate for the various assets and liabilities presented are actual as of December 31, 2024. We closely monitor the fluctuation in interest rates, and if rates were to increase significantly, we believe that we would be able to either hedge the change in the interest rate or refinance the loans with fixed interest rate debt. All instruments included in this analysis are non-trading.

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 Principal Maturing in: Fair Value  20252026202720282029ThereafterTotalDecember 31, 2024(Dollars in millions)Interest rate sensitive assetsCash equivalents$219.9 $— $— $— $— $— $219.9 $219.9 Average interest rate1.87 %— %— %— %— %— %1.87 %— Fixed rate receivables17.8 12.2 19.5 10.0 — 6.1 65.6 62.7 Average interest rate(1)3.64 %5.76 %4.00 %6.80 %— %6.49 %4.89 %— Variable rate receivables38.2 90.1 51.3 7.2 0.7 — 187.5 185.1