Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 97

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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uations periodically (typically annually). All appraised valuations are reviewed and approved by the Company.The Company's investment in Zonda that is accounted for at fair value and is valued using a multiple on trailing twelve month EBITDA.The table below describes the range of unobservable inputs for real estate assets as of March 31, 2025: Estimated Rates Used forCapitalization RatesDiscount RatesMultifamily - AffordableIncome approach - discounted cash flow6.30% —7.00%8.30% — 9.00%Multifamily - Affordable GP interestIncome approach - discounted cash flowN/A16.00% — 20.00%Multifamily - Market RateIncome approach - direct capitalization4.50% — 6.40%N/AOfficeIncome approach - discounted cash flow5.20% — 7.50%7.30% — 9.30%Income approach - direct capitalization5.20% — 10.30%N/AIndustrial Income approach - discounted cash flow5.00% — 6.30%6.30% — 7.80%Income approach - direct capitalization4.00% — 8.80%N/AHotelIncome approach - discounted cash flow6.00%8.30%     In valuing indebtedness, the Company considers significant inputs such as the term of the debt, value of collateral, credit quality of investment entities and market interest rates and spreads as well as market loan-to-value ratios relative to the Company's debt instruments. The credit spreads used by Kennedy Wilson to value floating rate indebtedness range from 2.10% to 3.80%, while the market rates used to value fixed rate indebtedness range from 4.10% to 9.30%.     There is no active secondary market for the Company's development projects and no readily available market value given the uncertainty of the amount and timing of future cash flows. Accordingly, determination of fair value of its development projects requires judgment and extensive use of estimates. Therefore, the Company typically uses investment cost as the estimated fair value until future cash flows become more predictable. Additionally, the fair value of its development projects may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. If the Company were required to liquidate an investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded