Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 310

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 310
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9 million. These fair value decreases were offset by fair value increases of $19.1 million at VHH due to increases in NOI and $5.5 million increase at Zonda due to improvements in the underlying business.  

During the three months ended September 30, 2025, we recorded a $8.8 million increase in the accrual for carried interests primarily related to certain separate account platforms that hold multifamily assets in the Western United States.

During the three months ended September 30, 2024, we recorded non-cash fair value losses with a decrease of less than 1% in fair values. The minor decreases primarily related to: (i) certain office properties located in Ireland, United States and the United Kingdom due to a higher market assumptions of vacancy and lower rental growth rates; (ii) certain market rate multifamily properties in the Western United States because lowered growth on NOI; and (iii) declines in the fair value of debt and interest rate hedges as mortgages move closer to their maturity dates. These fair value decreases were offset by (i) fair value increases at VHH due to increased NOI at the properties and lowered cost of capital associated with the business due to decreases in interest rates (ii) fair value increases related to our investment in Zonda due to increased EBITDA from its recently completed merger and (iii) fair value increases on foreign exchange movements, net of hedges on our euro and GBP denominated fair value investments.

During the three months ended September 30, 2024, we recorded a $16.4 million decrease in the accrual for carried interests primarily related to the fair value decreases that we recorded on (i) commingled funds in the United States due to declines in the value of office assets (as discussed above) and (ii) certain separate account platforms that hold multifamily assets in the Western United States primarily due to changes in the projected lengths of hold.

Please also see Part I. Item 1. "Fair Value Investments" for additional details.

Expenses

Co-Investment Portfolio expenses increased to $20.0 million for the three months ended September 30, 2025 as compared to $12.3 million for the same period in 2024. The increase compared to the prior period was primarily due to decrease in the reversal of previously recognized carried interest expense allocations and lower reserves for credit losses in our debt business.  

    Non-Segment Items

Compensation expense increased to $10.5 million for