Company: KW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001408100-25-000147
Chunk: 313

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 313
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3.1 million and$8.5 million the six months ended June 30, 2025 and 2024, respectively of general reserves that we recorded in other income on our loan portfolio relating to our bridge loan portfolio as market conditions indicate that there could be potential credit losses due to the current interest rate environment and general market conditions.

    Non-Segment Items

Compensation and related expenses, corporate increased to $20.5 million for the six months ended June 30, 2025 as compared to $19.8 million for the six months ended June 30, 2024 due to higher share-based compensation due to the timing of share grants in the prior period.  

    Non-Segment interest expense was $51.7 million for the six months ended June 30, 2025 as compared to $49.2 million for the same period in 2024 due to higher average outstanding balance on the revolving line of credit in the current period.  Interest expense was offset by $0.6 million and $4.6 million that we received on interest rate derivative contracts that paid out during the six months ended June 30, 2025 and 2024 recorded to other income which is discussed below   

Other income decreased to $6.1 million for the six months ended June 30, 2025 as compared to $12.6 million for the same period in 2024. During the six months ended June 30, 2025, we had $4.9 million in foreign exchange losses.  We had $3.2 million of foreign exchange gains in the prior period.  For the six months ended June 30, 2024 we had $5.1 million in fair value gains on interest rate derivatives which the current period had minimal fair value movements. During the six months ended June 30, 2025 we had $2.0 million in dead deal costs.        

Our income tax benefit was $0.5 million for the six months ended June 30, 2025 as compared to income tax expense of $14.9 million for the same period in 2024.  Our effective tax rate for the six months ended June 30, 2025 was 2.0% as compared to an effective tax rate of 346.5% for the same period in 2024.  Significant items impacting the quarterly tax provision include: tax charges associated with non-deduct