Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 167

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 167
---
. In addition to our Construction Loan Portfolio, we have originated and purchased bridge loans that consist of predominantly variable rate loans, with terms that are generally three-years with one or two 12-month extension options (the "Bridge Loan Portfolio"). Our bridge loans are secured by multifamily, office, retail, industrial and hotel assets in the Western United States or United Kingdom. We also invest in certain mezzanine loans that are fixed rate and tend to have maturities of 5 to 10 years and are secured by multifamily or office properties in the Western United States.  In April 2025, we announced a $200 million preferred equity and mezzanine real estate investment platform with Tokyu Land Corporation.  

    As of September 30, 2025, we held interests in 127 loans in our global debt platform, 87% of which have floating interest rates with an average interest rate of 8.4% per annum and an unpaid principal balance ("UPB") of $5.2 billion (of which our share was a UPB of $221.7 million). Some of our loans contain additional funding commitments that will increase our loan balances if they are utilized. As of September 30, 2025, our loans had unfulfilled capital commitments totaling $5.3 billion (our share of which was $144.6 million).

We have stopped and may stop accruing for interest income if certain loans become non-performing and account for loans on a cash basis. In the event of a borrower defaulting on its obligations under any loan agreement, we will explore all of our remedies including, without limitation, pursuing a foreclosure action or deed in lieu of foreclosure to take control of the underlying collateral securing the loans, although there is no guarantee or assurance that we will be able to do so successfully. As of September 30, 2025, we had three loans (in our bridge loan portfolio) out of the 127 loans in our global debt platform with a $12.6 million carrying value at our share and net of any loan reserves that are not paying interest current on a contractual basis. Per the terms of the applicable loan agreements, however, we have implemented a full cash sweep of any cash flow that is generated from the collateral and are working on exercising our available remedies, which may include taking control of the underlying collateral. We are no longer accruing interest under these loans and accounting for them on a cash basis going forward.

Commercial 

Our industrial portfolio consists of