Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 26

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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Other loss was $1.5 million for the three months ended June 30, 2025 as compared to other income of $0.5 million for the three months ended June 30, 2024. We recorded mark to market fair value losses of $1.1 million on undesignated interest rate caps and swap contracts associated with consolidated investments held in the current period, primarily at KWE. We received $2.6 million in cash payments on these derivatives during the three months ended June 30, 2025.  We entered into these undesignated contracts to hedge against rising interest rates.  We also had realized foreign exchange losses of $0.7 million for the three months ended June 30, 2025. Other income for the three months ended June 30, 2024 was due to mark to market fair value gains of $1.7 million and received $4.7 million in cash payments. We also had realized foreign exchange losses of $1.5 million for the three months ended June 30, 2024.

The following items are not in Segment Adjusted EBITDA above for the Consolidated portfolio but are in net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders:      

Depreciation and amortization decreased to $34.5 million during the three months ended June 30, 2025 as compared to $36.4 million for the same period in 2024 due to sales and deconsolidations of consolidated assets as discussed above. 

Interest expense was $38.4 million for the three months ended June 30, 2025 as compared to $39.4 million for the same period in 2024. The decrease is due to a decline in consolidated mortgage balances due to asset sales and deconsolidations.  Additionally, we hold certain interest rate derivatives that are currently in the money and we are receiving cash payments to offset increase in interest rates.  These cash payments are recorded in other loss (income) as a component of fair value movements on undesignated interest rate derivatives.  During the three months ended June 30, 2025 and 2024, the Company received $2.6 million and $4.7 million, respectively, in cash payments from its interest rate derivatives on consolidated mortgages.  The Company views interest expense net of the impact of interest rate derivatives as part of its interest rate risk analysis.     

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Co-Investment Portfolio Segment

Investment Management

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