Company: KW
Filing Date: 2025-08-08
Form Type: 424B3
Source: 0001408100-25-000150
Chunk: 41

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-08-08
Form: 424B3
Chunk 41
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9 |     | $         | -2.1 |

(1) Hedge is held by KWE on its wholly-owned subsidiaries.

(2) Relates to KWE's Euro Medium Term Note. See discussion in Note 10.

(3) Relates to amount outstanding denominated in euro on the Company's revolving line of credit

(4) Excludes deferred tax benefit of $9.7 million.

The amounts recorded through other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying investments that they were hedging are substantially liquidated by Kennedy Wilson. The Company recognized a $0.4 million gain on a foreign currency hedge that was associated with the sale of office buildings in Ireland during the six months ended June 30, 2025.

The currency derivative contracts discussed above are offset by foreign currency translation of the Company's foreign net assets. For the six months ended June 30, 2025, Kennedy Wilson had a gross foreign currency translation gain on its net assets of $89.0 million. As of June 30, 2025, the Company has hedged 96% of the net asset carrying value of its euro denominated investments and 86% of the net asset carrying value of its GBP denominated investments. See Note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations.

Interest Rate Derivatives

The Company has interest rate swaps and caps to hedge its exposure to rising interest rates. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value losses of $2.6 million for the six months ended June 30, 2025. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $1.3 million loss recorded in principal co-investments. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value gains of $12.8 million for the six months ended June 30, 2024. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $3.2 million gain through principal co-investments for the six months ended June 30, 2024.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable including related party receivables, accounts payable, accrued expenses and other liabilities, accrued salaries and benefits, and deferred and accrued