Company: KW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001408100-25-000179
Chunk: 308

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 308
---
ization decreased to $32.6 million during the three months ended September 30, 2025 as compared to $36.9 million for the same period in 2024 due to sales and deconsolidations of consolidated assets as discussed above. 

Interest expense was $34.4 million for the three months ended September 30, 2025 as compared to $41.3 million for the same period in 2024. The decrease is due to a decline in consolidated mortgage balances due to asset sales and deconsolidations.  Additionally, we hold certain interest rate derivatives that are currently in the money and we are receiving cash payments to offset increase in interest rates.  These cash payments are recorded in other loss (income) as a component of fair value movements on undesignated interest rate derivatives.  During the three months ended September 30, 2025 and 2024, 

57

the Company received $2.1 million and $4.8 million, respectively, in cash payments from its interest rate derivatives on consolidated mortgages.  The Company views interest expense net of the impact of interest rate derivatives as part of its interest rate risk analysis.     

Co-Investment Portfolio Segment

Investment Management

     We receive fees, including asset management fees, construction management fees, and/or acquisition and disposition fees, for managing assets in our Co-Investment Portfolio on behalf of our partners. During the three months ended September 30, 2025, we had fees recorded through revenues of $23.4 million as compared to $21.6 million for the same period in 2024. 

Co-Investment Operations - Loans

Loan income decreased to $5.7 million during the three months ended September 30, 2025 as compared to $7.6 million for the same period in 2024. These amounts represent interest income on our share of loan investments within our global real estate credit platform and the decrease is due to our newer originations being at a lower ownership percentage than previous loans. Loans in our construction portfolio have moved from 5% ownership on legacy loans to 2.5% on any new originations. Loans in our bridge loan portfolio were also at ownership levels 5% and greater. Although the platform is growing we expect to have lower interest income levels and higher management fee levels going forward.

Co-Investment Operations - Real Estate

    In addition to our management of investments in the Co-Investment Portfolio, we have ownership interests in the properties that sit within our Co