Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 233

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 233
---
 3—REAL ESTATE AND IN-PLACE LEASE VALUE

    The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at June 30, 2025 and December 31, 2024: June 30,December 31,(Dollars in millions)20252024Land$964.2 $979.6 Buildings3,419.0 3,548.7 Building improvements408.7 466.9 In-place lease values250.4 244.3 5,042.3 5,239.5 Less accumulated depreciation and amortization(963.5)(949.1)Real estate and acquired in place lease values, net of accumulated depreciation and amortization$4,078.8 $4,290.4     Real property, including land, buildings, and building improvements are included in real estate and are generally stated at cost.  Buildings and building improvements are depreciated on a straight-line method over their estimated lives not to exceed 40 years.  Acquired in-place lease values are recorded at their estimated fair value and amortized over their respective weighted-average lease term which was 7.3 years at June 30, 2025.    Consolidated Acquisitions    The purchase of property is recorded to land, buildings, building improvements, and intangible lease value (including the value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated relative fair values.  The purchase price generally approximates the fair value of the properties as acquisitions are transacted with willing third-party sellers. During the six months ended June 30, 2025, Kennedy Wilson spent $25.7 million for the consolidated acquisition of an industrial development in the United Kingdom.    Gain on Sale of Real Estate, Net During the six months ended June 30, 2025, Kennedy Wilson recognized gain on sale of real estate, net of $54.3 million. This includes gain on sale of (i) the sale of 90% equity interest and deconsolidation of a wholly-owned multifamily property, which generated $39.5 million in cash and a gain of  $32.2 million; (ii) the sale of non-core office assets in Ireland, Italy and the United Kingdom for a gain of $21.7 million; and (iii) the contribution of three wholly-owned, vacant land