Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 95

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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 is included in unconsolidated investments in the accompanying balance sheets.    Additionally, Kennedy Wilson records its investments in its Funds based upon the net assets that would be allocated to its interests in the Funds, assuming the Funds were to liquidate their investments at fair value as of the reporting date.  Kennedy Wilson’s investment balance in the Funds was $97.1 million and $96.7 million at March 31, 2025 and December 31, 2024, respectively, which is included in unconsolidated investments in the accompanying consolidated balance sheets.  See Note 4 for more information on the fluctuations for these investments.

14

Kennedy-Wilson Holdings, Inc.Notes to Consolidated Financial Statements(Unaudited)

As of March 31, 2025, there were cumulative fair value gains on investments held of $282.0 million.    In estimating fair value of real estate held by the Funds and the 72 FV Option investments, the Company considers significant unobservable inputs to be the capitalization and discount rates. The following table presents changes in Level 3 investments in Funds and FV Options for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,(Dollars in millions)20252024Beginning balance$1,884.4 $1,927.0 Unrealized and realized gains32.7 39.4 Unrealized and realized losses(30.3)(51.0)Contributions18.5 27.9 Distributions(18.7)(13.0)Foreign exchange24.8 (12.0)Other(0.3)(0.7)Ending balance$1,911.1 $1,917.6 Unobservable Inputs for Real EstateThe Company accounts for a number of unconsolidated investments under fair value, the accuracy of estimating fair value cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets and may not be realized in a current sale or immediate settlement of the asset or liability. Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including market-derived estimated capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts