Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 28

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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.3)(33.4)Other loss(9.6)(6.8)Loss from unconsolidated investments$(0.2)$(18.1)

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) increase in rental operations due to the growth of our Co-Investment Portfolio (ii) improved hotel operations at Kona Village as the property continues to progress towards stabilization. These increases were offset by lower gains on sale of homes at Kohaniki and higher non-recurring expenses in other loss.    

58

Fair Value

During the three months ended June 30, 2025, the Company recorded fair value decreases with respect to (i) mortgages; as lower cost mortgages move closer to maturity dates; (ii) costs associated with originating new mortgages (iii) Irish office asset as its lease up period pushes out and decreases in expected market rents; and (iv) certain U.S. office assets.  These fair value decreases were offset by (i) fair value increases on VHH due to increases in NOI and (iii) foreign exchange gains, net of hedges as euro and GBP increased in value in relation to the dollar in the current period.  

During the three months ended June 30, 2025, we recorded a $2.0 million decrease in the accrual for carried interests primarily related to certain separate account platforms that hold multifamily assets in the Western United States primarily due to changes in the projected lengths of hold.

During the three months ended June 30, 2024, we recorded non-cash fair value losses with a decrease of approximately 1% in fair values. The minor decreases primarily related to: (i) certain office properties located in Ireland, United States and the United Kingdom due to lower market assumptions of vacancy and rental growth; (ii) certain market rate multifamily properties in the Western United States because of lowered projected growth on NOI; and (iii) non-cash losses on the fair value of debt and interest rate hedges as mortgages move closer to their maturity dates. These fair value decreases were offset by (i) non-cash fair value increases on our investment in Zonda due to increased EBITDA from its recently completed merger and (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,