Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 17

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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.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 to be the term of the debt, value of collateral, market loan-to-value ratios, market interest rates and spreads, and credit quality of investment entities. The credit spreads used by the Company 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 our development projects and no readily available market value given the uncertainty of the amount and timing of future cash flows. Accordingly, our determination of fair value of our development projects requires judgment and extensive use of estimates. Therefore, we typically use investment cost as the estimated fair value until future cash flows become more predictable.  Additionally, the fair value of our 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 we may ultimately realize. If we were required to liquidate an investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized or incurred on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.

Real Estate Assets Under Management (AUM) 

    AUM generally refers to the properties and other assets with respect to which we provide (or participate in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, and investments in joint ventures. Our AUM is