Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 274

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 274
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 interest rates we have purchased interest rate caps and swaps.  Our interest rate caps and swaps are typically undesignated as they are bought at the corporate level and changes in value are recorded to other income/loss.  However we view the fair value movements associated with these interest rate derivatives in conjunction with our interest expense in order to limit the amount of financial statement impact that interest expense can increase with rate increases.  However, even though we hold interest rate swaps and caps we are subject to increased interest expense until rates hit the level of caps that have been purchased. If there was a 100-basis point increase or decrease, we would have a $4.3 million increase in interest expense or $10.0 million of interest expense savings during 2025 on our current share of indebtedness.  The weighted average strike price on caps and maturity of Kennedy Wilson’s variable rate mortgages is 3.06% and approximately 1.0 years, respectively, as of March 31, 2025.

The table below represents contractual balances of our consolidated financial instruments at the expected maturity dates as well as the fair value as of March 31, 2025. The weighted average interest rate for the various assets and liabilities presented are actual as of March 31, 2025. We closely monitor the fluctuation in interest rates, and if rates were to increase significantly, we believe that we would be able to either hedge the change in the interest rate or refinance the loans with fixed interest rate debt. All instruments included in this analysis are non-trading.

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 Principal Maturing in:Fair Value(Dollars in millions)20252026202720282029ThereafterTotalAs of March 31, 2025Interest rate sensitive assetsCash and cash equivalents$356.6 $— $— $— $— $— $356.6 $356.6 Average interest rate2.30 %— %— %— %— %— %2.30 %— Fixed rate receivables*— 6.9 20.0 10.0 5.3 6.1 48.3 44.8 Average interest rate— %4.55 %3.98 %6.80 %6.00 %6.49 %5.19 %— Variable rate receivables*10.8 87.8 61.