Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 30

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 30
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 $0.2 million on interest rate caps and swaps that the Company bought to hedge its variable rate interest rate exposure compared to a decrease of $3.8 million in the prior period. The fair value of these contracts has declined period over period as the expectation of future interest rate hikes has declined, the maturity dates of some of our contracts are closer in time than in the prior period and we are starting to receive payments on such contracts. We received $0.2 million and $2.0 million in cash payments on these contracts during the three months ended September 30, 2025 and 2024. For the three months ended September 30, 2024, we also had (i) a $4.4 million realized foreign exchange loss on Company's portion of line of credit drawn in euros as the value of the euro has increased against the U.S. dollar and (ii) a $0.5 million increase in interest income on bank deposits as we have earned higher interest on our cash deposits.  

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Our income tax provision was $3.0 million for the three months ended September 30, 2025 as compared to an $10.7 million income tax benefit for the same period in 2024. The decrease in income tax benefit is primarily attributable to additional pre-tax book income in the current period as compared to the same period in 2024. Our effective tax rate for the three months ended September 30, 2025 was (41.7)% as compared to an effective tax rate of 13.8% for the same period in 2024. Significant items impacting the quarterly tax provision include: tax charges associated with non-deductible executive compensation under IRC Section 162(m) and additional valuation allowance against the Company's deferred tax asset on the outside basis difference of its investment in KWE.

    Other Comprehensive (Loss) Income

The two major components that drive the change in other comprehensive loss are the change in foreign currency rates and the gain or loss of any associated foreign currency hedges. Please refer to the Currency Risk - Foreign Currencies section in Item 3 for a discussion of our risks relating to foreign currency and our hedging strategy. Below is a table that details the activity for the three months ended September 30, 2025 and 2024.  

Three Months Ended September 30,(Dollars in millions)20252024Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders$(21.2)$(77.