| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2025 |
| (dollars in millions) | | Consolidated | | Co-Investment | | Total |
| Revenues | | $ | 2.1 | | | 2 | % | | $ | 0.2 | | | — | % | | $ | 2.3 | | | 2 | % |
| Net (loss) income | | — | | | — | % | | 14.8 | | | 231 | % | | 14.8 | | | 231 | % |
| Adjusted EBITDA | | 2.0 | | | 1 | % | | 16.5 | | | 12 | % | | 18.5 | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2024 |
| (dollars in millions) | | Consolidated | | Co-Investment | | Total |
| Revenues | | $ | (0.2) | | | — | % | | $ | — | | | — | % | | $ | (0.2) | | | — | % |
| Net (loss) income | | (0.8) | | | (1) | % | | 1.9 | | | 3 | % | | 1.1 | | | 2 | % |
| Adjusted EBITDA | | (1.0) | | | (1) | % | | 1.7 | | | 2 | % | | 0.7 | | | 1 | % |
Consolidated Portfolio Segment
Rental income was $93.3 million for the three months ended June 30, 2025 as compared to $97.8 million for the same period in 2024. The $4.5 million decrease is primarily due to asset sales the majority of which were non-core assets in Europe and the Western United States, as well as deconsolidations of multifamily properties in the prior year as a result of asset recapitalizations that resulted in the Company not maintaining sole control of the investments and the investments moving to our investment management business and our Co-Investment Portfolio segment. These decreases have been offset by certain multifamily developments that have been completed and are now operating properties.
Gain on sale of real estate, net was $55.1 million for the three months ended June 30, 2025 as compared to $0.2 million during the same period in 2024. The gain on sale of real estate, net during the three months ended June 30, 2025 was due to (i) recapitalized and deconsolidated a 1,008 unit wholly-owned multifamily property which reduced the Company’s ownership interests in the asset to 10%; and (ii) sold non-core office assets in Ireland, Italy and the United Kingdom. These dispositions generated $123.1 million of cash to KW and a gain on sale of $52.4 million.
Rental expenses was $35.4 million for the three months ended June 30, 2025 as compared to $37.0 million for the three months ended June 30, 2024. The decrease is due to asset sales as discussed above.
Compensation and related expenses increased to $8.7 million for three months ended June 30, 2025 as compared to $7.8 million for the three months ended June 30, 2024 due to higher allocations of overhead expenses to the Consolidated segment as there were higher gains on sale of real estate, net in the current period.
General and administrative expenses increased to $3.6 million for three months ended June 30, 2025 as compared to $3.3 million for the three months ended June 30, 2024 due to higher allocations of overhead expenses to the Consolidated segment as discussed above.
Other loss was $1.5 million for the three months ended June 30, 2025 as compared to other income of $0.5 million for the three months ended June 30, 2024. We recorded mark to market fair value losses of $1.1 million on undesignated interest rate caps and swap contracts associated with consolidated investments held in the current period, primarily at KWE. We received $2.6 million in cash payments on these derivatives during the three months ended June 30, 2025. We entered into these undesignated contracts to hedge against rising interest rates. We also had realized foreign exchange losses of $0.7 million for the three months ended June 30, 2025. Other income for the three months ended June 30, 2024 was due to mark to market fair value gains of $1.7 million and received $4.7 million in cash payments. We also had realized foreign exchange losses of $1.5 million for the three months ended June 30, 2024.
The following items are not in Segment Adjusted EBITDA above for the Consolidated portfolio but are in net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders:
Depreciation and amortization decreased to $34.5 million during the three months ended June 30, 2025 as compared to $36.4 million for the same period in 2024 due to sales and deconsolidations of consolidated assets as discussed above.
Interest expense was $38.4 million for the three months ended June 30, 2025 as compared to $39.4 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 June 30, 2025 and 2024, the Company received $2.6 million and $4.7 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 June 30, 2025, we had fees recorded through revenues of $36.4 million as compared to $26.1 million for the same period in 2024. During the three months ended June 30, 2025, the increase primarily related to a $7 million one-time development completion fee related to the completion of a Southern California development project and an acquisition fee related to the closing of a multifamily property in Seattle in a new separate account platform.
Co-Investment Operations - Loans
Loan income decreased to $5.7 million during the three months ended June 30, 2025 as compared to $8.0 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-Investment Portfolio. The table below represents a breakout of the amounts within income from unconsolidated investments which represents our share of underlying property investments in the Co-Investment Portfolio assets for the three months ended June 30, 2025 and 2024:
| | | | | | | | | | | | | | |
| | Three Months Ended June 30, |
| | 2025 | | 2024 |
| Revenue | | | | |
| Rental | | $ | 77.8 | | | $ | 72.0 | |
| Hotel | | 8.9 | | | 6.4 | |
| Sale of real estate | | — | | | 16.7 | |
| Total revenue | | 86.7 | | | 95.1 | |
| | | | |
| Fair value/other adjustments | | (7.5) | | | (12.8) | |
| Carried interests | | (2.0) | | | (12.3) | |
| | | | |
| Expenses | | | | |
| Rental | | 24.6 | | | 23.6 | |
| Hotel | | 9.0 | | | 8.3 | |
| Cost of real estate sold | | — | | | 15.0 | |
| Depreciation and amortization | | 0.9 | | | 1.0 | |
| Total expenses | | 34.5 | | | 47.9 | |
| | | | |
| Interest expense | | (33.3) | | | (33.4) | |
| Other loss | | (9.6) | | | (6.8) | |
| Loss from unconsolidated investments | | $ | (0.2) | | | $ | (18.1) | |
The increase in income from unconsolidated investments is primarily due to the following:
Operating performance
The increase in income from unconsolidated investments related to the following items: (i) increase in rental operations due to the growth of our Co-Investment Portfolio (ii) improved hotel operations at Kona Village as the property continues to progress towards stabilization. These increases were offset by lower gains on sale of homes at Kohaniki and higher non-recurring expenses in other loss.
Fair Value
During the three months ended June 30, 2025, the Company recorded fair value decreases with respect to (i) mortgages; as lower cost mortgages move closer to maturity dates; (ii) costs associated with originating new mortgages (iii) Irish office asset as its lease up period pushes out and decreases in expected market rents; and (iv) certain U.S. office assets. These fair value decreases were offset by (i) fair value increases on VHH due to increases in NOI and (iii) foreign exchange gains, net of hedges as euro and GBP increased in value in relation to the dollar in the current period.
During the three months ended June 30, 2025, we recorded a $2.0 million decrease in the accrual for carried interests primarily related to certain separate account platforms that hold multifamily assets in the Western United States primarily due to changes in the projected lengths of hold.
During the three months ended June 30, 2024, we recorded non-cash fair value losses with a decrease of approximately 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 lower market assumptions of vacancy and rental growth; (ii) certain market rate multifamily properties in the Western United States because of lowered projected growth on NOI; and (iii) non-cash losses on 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) non-cash fair value increases on our investment in Zonda due to increased EBITDA from its recently completed merger and (ii) recorded fair value increases on foreign exchange movements, net of hedges on our euro and GBP denominated fair value investments.
During the three months ended June 30, 2024, we recorded a $12.3 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.
Please also see Part I. Item 1. "Fair Value Investments" for additional details.
Expenses
Co-Investment Portfolio expenses increased to $17.8 million for the three months ended June 30, 2025 as compared to $16.8 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 $11.0 million for the three months ended June 30, 2025 as compared to $10.0 million for the three months ended June 30, 2024 due to higher stock based compensation due to the timing of grants in the prior period for the three months ended June 30, 2025.
Interest expense was $26.2 million for the three months ended June 30, 2025 as compared to $24.4 million for the same period in 2024. For the three months ended June 30, 2025, we had higher average outstanding balance drawn on the line of credit.
Other (loss) income decreased to a loss of $1.9 million for the three months ended June 30, 2025 as compared to other income of $3.0 million for the same period in 2024. During the current reporting period, we recorded mark to market fair value decreases of $0.2 million on interest rate caps and swaps that the Company bought to hedge its variable rate interest rate exposure compared to an increase of $1.4 million in the prior period. The fair value of these contracts has declined period over period as the expectation of future interest rate hikes has declined, the maturity dates of some of our contracts are closer in time than in the prior period and we are starting to receive payments on such contracts. We received $0.3 million and $1.9 million in cash payments on these contracts during the three months ended June 30, 2025 and 2024. For the three months ended June 30, 2025, we also had $2.0 million in dead deal costs.
Our income tax provision was $4.4 million for the three months ended June 30, 2025 as compared to an $11.8 million income tax benefit for the same period in 2024. The decrease in income tax benefit is primarily attributable to additional pre-tax book income in the current period as compared to the same period in 2024. Our effective tax rate for the three months ended June 30, 2025 was 44.0% as compared to an effective tax rate of 19.7% for the same period in 2024. Significant items impacting the quarterly tax provision include: tax charges associated with non-deductible executive compensation under IRC Section 162(m) and additional valuation allowance against the Company's deferred tax asset on the outside basis difference of its investment in KWE.
Other Comprehensive (Loss) Income
The two major components that drive the change in other comprehensive loss are the change in foreign currency rates and the gain or loss of any associated foreign currency hedges. Please refer to the Currency Risk - Foreign Currencies section in Item 3 for a discussion of our risks relating to foreign currency and our hedging strategy. Below is a table that details the activity for the three months ended June 30, 2025 and 2024.
| | | | | | | | | | | | | | |
| | Three Months Ended June 30, |
| (Dollars in millions) | | 2025 | | 2024 |
| Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | $ | (6.4) | | | $ | (59.1) | |
| Unrealized foreign currency translation gains (losses), net of noncontrolling interests and tax | | 58.1 | | | (2.9) | |
| Amounts reclassified out of accumulated other comprehensive loss during the period | | 3.0 | | | — | |
| Unrealized foreign currency derivative contract (losses) gains, net of noncontrolling interests and tax | | (37.1) | | | 5.2 | |
| Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | $ | 17.6 | | | $ | (56.8) | |
The main currencies that we have exposure to are the euro and pound sterling. The table below represents the change in rates over the three months ended June 30, 2025 and 2024 as compared to the U.S. Dollar:
| | | | | | | | | | | | | | |
| | Three Months Ended June 30, |
| | 2025 | | 2024 |
| Euro | | 9.0 | % | | (0.3) | % |
| GBP | | 6.1 | % | | 0.8 | % |
Comprehensive income (loss), net of taxes and noncontrolling interests, for the three months ended June 30, 2025 and 2024 was income of $17.6 million and a loss of $56.8 million, respectively. The Company experienced net unrealized gains on foreign currency through other comprehensive income for the period due to strengthening of the euro against the GBP and the U.S. Dollar. These translation gains were offset by hedge losses the Company has on its GBP denominated investments.
Kennedy Wilson Consolidated Financial Results: Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
| | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2025 |
| | | | | |
| (Dollars in millions) | | Consolidated | | Co-Investments | | Total |
| Segment Revenue | | | | | | |
| Rental | | $ | 190.6 | | | $ | — | | | $ | 190.6 | |
| Investment management fees | | — | | | 61.4 | | | 61.4 | |
| Loans | | — | | | 11.5 | | | 11.5 | |
| Total segment revenue | | 190.6 | | | 72.9 | | | 263.5 | |
| | | | | | |
| Income from unconsolidated investments | | | | | | |
| Principal co-investments | | — | | | 21.4 | | | 21.4 | |
| Carried interests | | — | | | (10.2) | | | (10.2) | |
Company's share of interest, depreciation, and taxes included in income from unconsolidated investments(1) | | — | | | 67.2 | | | 67.2 | |
| Income from unconsolidated investments | | — | | | 78.4 | | | 78.4 | |
| | | | | | |
| Gain on sale of real estate, net | | 54.3 | | | — | | | 54.3 | |
| | | | | | |
| Segment Expenses | | | | | | |
| Rental | | 73.5 | | | — | | | 73.5 | |
| Compensation and related | | 14.5 | | | 24.2 | | | 38.7 | |
| Carried interests compensation | | — | | | (3.3) | | | (3.3) | |
| General and administrative | | 6.9 | | | 8.9 | | | 15.8 | |
| Other loss | | 1.9 | | | 2.8 | | | 4.7 | |
Other segment items(1) | | 5.0 | | | (0.2) | | | 4.8 | |
| Total segment expenses | | 101.8 | | | 32.4 | | | 134.2 | |
| | | | | | |
| Segment Adjusted EBITDA | | 143.1 | | | 118.9 | | | 262.0 | |
| | | | | | |
| Reconciliation of Segment Adjusted EBITDA to net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | | | | | |
| Other revenue | | | | | | 0.5 | |
| Compensation and related, corporate | | | | | | (20.5) | |
| General and administrative, corporate | | | | | | (3.4) | |
| Depreciation and amortization | | | | | | (68.6) | |
| Interest expense | | | | | | (123.9) | |
| Loss on early extinguishment of debt | | | | | | (2.1) | |
| Other loss, corporate | | | | | | (6.1) | |
| Benefit from income taxes | | | | | | 0.5 | |
Company's share of interest, depreciation, and taxes included in income from unconsolidated investments(1) | | | | | | (67.2) | |
| Income from unconsolidated investments excluded from Segment Adjusted EBITDA | | | | | | 4.8 | |
| Net loss | | | | | | (24.0) | |
| Net income attributable to noncontrolling interests | | | | | | (1.4) | |
| Preferred dividends | | | | | | (21.8) | |
| Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | | | | | $ | (47.2) | |
| | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2024 |
| | | | | |
| (Dollars in millions) | | Consolidated | | Co-Investments | | Total |
| Segment Revenue | | | | | | |
| Rental | | $ | 195.2 | | | $ | — | | | $ | 195.2 | |
| Hotel | | 9.3 | | | — | | | 9.3 | |
| Investment management fees | | — | | | 47.4 | | | 47.4 | |
| Loans | | — | | | 16.1 | | | 16.1 | |
| Total segment revenue | | 204.5 | | | 63.5 | | | 268.0 | |
| | | | | | |
| Income from unconsolidated investments | | | | | | |
| Principal co-investments | | — | | | 3.9 | | | 3.9 | |
| Carried interests | | — | | | (28.7) | | | (28.7) | |
Company's share of interest, depreciation, and taxes included in income from unconsolidated investments(1) | | — | | | 66.5 | | | 66.5 | |
| Income from unconsolidated investments | | — | | | 41.7 | | | 41.7 | |
| | | | | | |
| Gain on sale of real estate, net | | 106.6 | | | — | | | 106.6 | |
| | | | | | |
| Segment Expenses | | | | | | |
| Rental | | 74.2 | | | — | | | 74.2 | |
| Hotel | | 7.6 | | | — | | | 7.6 | |
| Compensation and related | | 17.5 | | | 22.1 | | | 39.6 | |
| Carried interests compensation | | — | | | (10.0) | | | (10.0) | |
| General and administrative | | 7.1 | | | 7.4 | | | 14.5 | |
| Other (income) loss | | (3.0) | | | 8.5 | | | 5.5 | |
Other segment items(1) | | 3.9 | | | (0.4) | | | 3.5 | |
| Total segment expenses | | 107.3 | | | 27.6 | | | 134.9 | |
| | | | | | |
| Segment Adjusted EBITDA | | 203.8 | | | 77.6 | | | 281.4 | |
| | | | | | |
| Reconciliation of Segment Adjusted EBITDA to net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | | | | | |
| Other revenue | | | | | | 0.4 | |
| Compensation and related, corporate | | | | | | (19.8) | |
| General and administrative, corporate | | | | | | (3.3) | |
| Depreciation and amortization | | | | | | (75.3) | |
| Interest expense | | | | | | (128.5) | |
| Loss on early extinguishment of debt | | | | | | (0.2) | |
| Other income, corporate | | | | | | 12.6 | |
| Provision for income taxes | | | | | | (14.9) | |
Company's share of interest, depreciation, and taxes included in income from unconsolidated investments(1) | | | | | | (66.5) | |
| Income from unconsolidated investments excluded from Segment Adjusted EBITDA | | | | | | 3.5 | |
| Net income | | | | | | (10.6) | |
| Net loss attributable to noncontrolling interests | | | | | | 0.2 | |
| Preferred dividends | | | | | | (21.8) | |
| Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | | | | | $ | (32.2) | |
Financial Highlights
GAAP net loss to common shareholders was $47.2 million and $32.2 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders for the six months ended June 30, 2025 as compared to the same period in 2024, was primarily due to (i) the sales in the first quarter of 2024 generated higher gains on sale compared to the current period; (ii) lower NOI from hotel operations due to the sale of the Shelbourne hotel in the prior period; and (iii) fair value losses on interest rate derivatives that were recorded during the current period. These were offset by (i) higher investment management fees relating to a one-time development completion fee related to the completion of a Southern California development project, acquisition fee associated with a multifamily asset in Seattle with a new partner and increased acquisition fees in our construction loan business due to more loan closings; and (ii) fair value gains on real estate and foreign exchange movements unconsolidated investments in the current period compared to fair value losses and higher reversals of carried interest accruals in the prior period.
Segment Adjusted EBITDA was $262.0 million and $281.4 million for the six months ended June 30, 2025 and 2024, respectively.
Our consolidated results of operations often are impacted from, among other things, property acquisitions, dispositions, and stabilization of development and redevelopment projects. The results of operations of any acquired properties are included in our financial statements as of the date of acquisition. Our results of operations may also be affected by national, regional and local economic conditions, as well as macroeconomic conditions, which are at times subject to volatility and uncertainty such as the recent market volatility as a result of changes in tariff policies.
Operational Highlights
Same store property highlights for the six months ended June 30, 2025 include:
•For our 16,911 same property multifamily units for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:
◦occupancy increased to 95.0% from 94.4%
◦net operating income increased by 3.6%
◦total revenues increased by 2.3%
•For our 10,367 same property affordable rate multifamily units for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:
◦occupancy was down 1.2% to 93.6%
◦net operating income increased by 5.1%
◦total revenues increased by 5.8%
•For 3.3 million square feet of same property office real estate for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:
◦occupancy was flat at 91.9%
◦net operating income increased by (4.0)%
◦total revenues increased by (2.1)%
•Investment Transactions
◦Consolidated Portfolio:
▪(i) Acquired an industrial development site in the United Kingdom for $48 million, which we expect to recapitalize with a partner; (ii) recapitalized and deconsolidated a 1,008 unit wholly-owned multifamily property which reduced the Company’s ownership interests in the asset to 10%; and (iii) sold non-core office assets in Ireland, Italy and the United Kingdom. These transactions dispositions $132.0 million of cash to KW and a gain on sale of $54.6 million
◦Co-Investment Portfolio:
▪Acquired six multifamily properties in the Mountain West and an industrial property in the Pacific Northwest for $493.7 million. KW has a weighted-average 12.1% ownership interest in these acquisitions. Acquired three additional sites for our UK single family platform.
▪Originated $1,961.2 million in new construction loans, completed $802.7 million in additional fundings on existing loans, and realized $802.7 million in repayments, the Company’s share of which were $49.0 million, $26.3 million and $39.8 million respectively.
Foreign Exchange - Results of Operations
A significant portion of our investments are located outside of the United States and denominated in foreign currencies. In order to reduce the impact of foreign currency exchange rates we hedge some of our exposure. However we typically do not hedge future operations or cash flows and, therefore, changes in foreign currency rates will have an impact on our results of operations. We have included the table below to illustrate the impact these fluctuations have had on our revenues, net income and Adjusted EBITDA by applying the relevant exchange rates for the prior period. Please refer to the Currency Risk - Foreign Currencies section in Item 3 for a discussion of risks relating to foreign currency and our hedging strategy and the "Other Comprehensive Income" section below for a discussion of the balance sheet impact of foreign currency movements on our results of operations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2025 |
| (dollars in millions) | | Consolidated | | Co-Investment | | Total |
| Revenues | | $ | 2.3 | | | 1 | % | | $ | 0.3 | | | — | % | | $ | 2.6 | | | 1 | % |
| Net (loss) income | | (4.3) | | | (9) | % | | 22.3 | | | 47 | % | | 18.0 | | | 38 | % |
| Segment Adjusted EBITDA | | (2.1) | | | (1) | % | | 24.2 | | | 10 | % | | 22.1 | | | 9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2024 |
| (dollars in millions) | | Consolidated | | Co-Investment | | Total |
| Revenues | | $ | (0.6) | | | — | % | | $ | (0.1) | | | — | % | | $ | (0.7) | | | — | % |
| Net (loss) income | | 1.0 | | | 3 | % | | 3.4 | | | 11 | % | | 4.4 | | | 14 | % |
| Segment Adjusted EBITDA | | 0.5 | | | — | % | | 3.0 | | | 1 | % | | 3.5 | | | 1 | % |
Consolidated Portfolio Segment
Rental income decreased to $190.6 million for the six months ended June 30, 2025 as compared to $195.2 million for the same period in 2024. The $4.6 million decrease is due to the sale and deconsolidation of consolidation of assets which was offset by the stabilization of recently completed developments as well as rental growth of properties held period over period.
Hotel income was $9.3 million six months ended June 30, 2024 with no comparable activity in the current period as we sold the Shelbourne hotel in the first quarter of 2024 (which was our only hotel in our Consolidated Portfolio).
Gain on sale of real estate, net was a loss of $54.3 million for the six months ended June 30, 2025 compared to $106.6 million during the same period in 2024. The gain on sale of real estate, net during the six months ended June 30, 2025 was due to (i) recapitalizing and deconsolidation of a 1,008 unit wholly-owned multifamily property which reduced the Company’s ownership interests in the asset to 10%; and (ii) sold non-core office assets in Ireland, Italy and the United Kingdom. These transactions dispositions $132.0 million of cash to KW and a gain on sale of $54.6 million The gain on sale of real estate, net includes an impairment loss of $3.0 million relating to non-core office building in Italy that was marketed for sale during such period. The gain recognized during the six months ended June 30, 2024 relates to the sale of the Shelbourne hotel which resulted in a gain of $99.1 million; (ii) the sale of a building that is part of a larger office park which resulted in a gain of $21.6 million; and (iii) the remainder of gain on sale of real estate relates to the sale of non-core retail in the United Kingdom. The gain on sale of real estate, net includes an impairment loss of $14.2 million relating to non-core office and retail buildings in the United Kingdom and Spain that were marketed for sale during such period.
Rental expenses decreased slightly to $73.5 million for the six months ended June 30, 2025 as compared to $74.2 million for the six months ended June 30, 2024. Similar to rental income decreases from properties that had been sold or deconsolidated offset by development properties that have been stabilized.
Hotel expenses was $7.6 million for the six months ended June 30, 2024 with no comparable activity in the current period due to the sale of the Shelbourne hotel in the first quarter of 2024.
Compensation expense was $14.5 million for the six months ended June 30, 2025 as compared to $17.5 million for the six months ended June 30, 2024 due to lower discretionary and deferred compensation accruals in the current period.
General and administrative expenses were essentially flat at $6.9 million for the six months ended June 30, 2025 as compared to $7.1 million for the six months ended June 30, 2024.
Other loss was $1.9 million for the six months ended June 30, 2025 as compared to other income of $3.0 million for the six months ended June 30, 2024. We had mark to market fair value decreases of $2.0 million on the Company's undesignated interest rate caps and swap contracts for the six months ended June 30, 2025 as compared to $5.1 million increases in the prior period. The six months ended June 30, 2025 also had a $0.4 million gain on sale of some furniture and fixtures.
The following items are not in Segment Adjusted EBITDA above for Consolidated portfolio but are in net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders:
Depreciation and amortization decreased to $68.6 million during the six months ended June 30, 2025 as compared to $75.3 million for the six months ended June 30, 2024 as a result of the Company being a net seller of assets over the last year.
Interest expense was $74.2 million during the six months ended June 30, 2025 as compared to $79.3 million for the six months ended June 30, 2024. The decrease is primarily due to decreases in consolidated mortgage balance over 2024 due to asset sales over the current and prior periods.
Co-Investment Portfolio Segment
Investment Management
We receive asset management fees for managing assets on behalf of our partners on our Co-Investment Portfolio assets. During the six months ended June 30, 2025, we had fees recorded through revenues of $61.4 million as compared to $47.4 million from the same period in 2024. During the six months ended June 30, 2025, the increase primarily related to higher origination fees that we earned on the origination of construction loans in the current period. We also had a $7 million one-time development completion fee related to the completion of a Southern California development project and an acquisition fee related to the closing of a multifamily property in Seattle in a new separate account platform. We had higher base management fees as a result of having more AUM in our Co-Investment Portfolio mainly from the growth of our global credit platform and Western United States multifamily separate accounts.
Co-Investment Operations- Loans
Loan income decreased to $11.5 million during the six months ended June 30, 2025 as compared to $16.1 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 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-Investment Portfolio. The table below represents a breakout of the amounts within income from unconsolidated investments which represents our share of underlying property investments in the Co-Investment Portfolio assets for the six months ended June 30, 2025 and 2024:
| | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| | 2025 | | 2024 |
| Revenue | | | | |
| Rental | | $ | 152.0 | | | $ | 141.9 | |
| Hotel | | 20.8 | | | 12.6 | |
| Sale of real estate | | 16.6 | | | 29.8 | |
| Total revenue | | 189.4 | | | 184.3 | |
| | | | |
| Fair value/other adjustments | | 1.1 | | | (12.0) | |
| Carried interests | | (10.2) | | | (28.7) | |
| | | | |
| Expenses | | | | |
| Rental | | 48.8 | | | 46.5 | |
| Hotel | | 19.7 | | | 17.3 | |
| Cost of real estate sold | | 17.7 | | | 26.2 | |
| Depreciation and amortization | | 1.8 | | | 1.9 | |
| Total expenses | | 88.0 | | | 91.9 | |
| | | | |
| Interest expense | | (65.4) | | | (64.5) | |
| Other loss | | (15.7) | | | (11.8) | |
| Provision for income taxes | | — | | | (0.2) | |
| Income (loss) from unconsolidated investments | | $ | 11.2 | | | $ | (24.8) | |
The increase in income from unconsolidated investments is primarily due to the following:
Operating performance
The increase in income from unconsolidated investments related to the following items: (i) increase in rental operations due to the growth of our Co-Investment Portfolio (ii) improved hotel operations at Kona Village as the property continues to progress towards stabilization. These increases were offset by lower gains on sale of homes at Kohaniki and higher interest expense due to higher mortgage balances from the increase in investments in the Co-Investment Portfolio.
Fair Value
During the six months ended June 30, 2025, the Company recorded fair value increases with respect to (i) non-cash fair value gains on multifamily assets in Western United States and Ireland from increased NOI at the properties (ii) fair value increases on VHH due to increases in NOI as well and (iii) foreign exchange gains, net of hedges as euro and GBP increased in value in relation to the dollar in the current period. These fair value increases were offset by (i) fair value decreases at an Irish office asset as its lease up period pushes out and decreases in expected market rents; (ii) fair value decreases on U.S. office assets (iii) fair value decreases associated with mortgages as lower cost mortgages move closer to maturity dates and (iv) costs associated with originating new mortgages.
During the six months ended June 30, 2025, the Company recorded a $5.5 million decrease in the accrual for carried interests in our Funds primarily related to the fair value decreases that we recorded with respect to one of our Western United States commingled funds as the timing of disposing office assets has been pushed out and $4.7 million decrease in carried interests on certain separate account platforms that hold multifamily assets in the Western United States. As of June 30, 2025, the Company’s net accrued carried interests receivable totaled $17.4 million.
During the six months ended June 30, 2024, we recorded non-cash fair value losses with a decrease of approximately 2% 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 lower market assumptions of vacancy and rental growth; (ii) non-cash fair value losses on mortgage debt as previous non-cash fair value gains unwind as loans move closer to maturity dates. These fair value decreases were offset by non-cash fair value gain relating to the completion of a merger by entity that holds our ownership interest in Zonda.
During the six months ended June 30, 2024, we recorded a $28.7 million decrease in the accrual for carried interests primarily related to the fair value decreases that we recorded with respect to (i) one of our Western United States commingled funds (as discussed above) and (ii) certain separate account platforms that hold multifamily assets in the Western United States.
Segment Expenses
Co-Investment Portfolio expenses increased to $32.4 million for the six months ended June 30, 2025 as compared to $27.6 million during the prior period. The increase compared to the prior period was primarily due to higher allocation of corporate expenses due to the growth of the real estate credit business as well as a lower reversal of previously recognized carried interest expense allocations. We also had a $3.1 million and$8.5 million the six months ended June 30, 2025 and 2024, respectively of general reserves that we recorded in other income on our loan portfolio relating to our bridge loan portfolio as market conditions indicate that there could be potential credit losses due to the current interest rate environment and general market conditions.
Non-Segment Items
Compensation and related expenses, corporate increased to $20.5 million for the six months ended June 30, 2025 as compared to $19.8 million for the six months ended June 30, 2024 due to higher share-based compensation due to the timing of share grants in the prior period.
Non-Segment interest expense was $51.7 million for the six months ended June 30, 2025 as compared to $49.2 million for the same period in 2024 due to higher average outstanding balance on the revolving line of credit in the current period. Interest expense was offset by $0.6 million and $4.6 million that we received on interest rate derivative contracts that paid out during the six months ended June 30, 2025 and 2024 recorded to other income which is discussed below
Other income decreased to $6.1 million for the six months ended June 30, 2025 as compared to $12.6 million for the same period in 2024. During the six months ended June 30, 2025, we had $4.9 million in foreign exchange losses. We had $3.2 million of foreign exchange gains in the prior period. For the six months ended June 30, 2024 we had $5.1 million in fair value gains on interest rate derivatives which the current period had minimal fair value movements. During the six months ended June 30, 2025 we had $2.0 million in dead deal costs.
Our income tax benefit was $0.5 million for the six months ended June 30, 2025 as compared to income tax expense of $14.9 million for the same period in 2024. Our effective tax rate for the six months ended June 30, 2025 was 2.0% as compared to an effective tax rate of 346.5% for the same period in 2024. Significant items impacting the quarterly tax provision include: tax charges associated with non-deductible executive compensation under IRC Section 162(m) and additional valuation allowance against the Company's deferred tax asset on the outside basis difference of its investment in KWE.
Other Comprehensive Income (Loss)
The two major components that drive the change in other comprehensive loss are the change in foreign currency rates and the gain or loss of any associated foreign currency hedges. Please refer to the Currency Risk - Foreign Currencies section in Item 3 for a discussion of our risks relating to foreign currency and our hedging strategy. Below is a table that details the activity for the six months ended June 30, 2025 and 2024.
| | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| (Dollars in millions) | | 2025 | | 2024 |
| Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | $ | (47.2) | | | $ | (32.2) | |
| Unrealized foreign currency translation gain (loss), net of noncontrolling interests and tax | | 84.6 | | | (20.2) | |
| Amounts reclassified out of accumulated other comprehensive loss during the period | | 3.0 | | | 5.2 | |
| Unrealized foreign currency derivative contract (loss) gain, net of noncontrolling interests and tax | | (49.0) | | | 15.0 | |
| Comprehensive loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders | | $ | (8.6) | | | $ | (32.2) | |
The main currencies that we have exposure to are the euro and pound sterling. The table below represents the change in rates over the six months ended June 30, 2025 and 2024 as compared to the U.S. Dollar:
| | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| | 2025 | | 2024 |
| Euro | | 13.6 | % | | (2.9) | % |
| GBP | | 9.6 | % | | (0.7) | % |
Comprehensive loss, net of taxes and noncontrolling interests, for the six months ended June 30, 2025 and 2024 was $8.6 million and $32.2 million, respectively. The Company experienced net unrealized gains on foreign currency through other comprehensive income for the period due to the strengthening of the Euro and GBP against the US Dollar in the period. Hedge
losses were due to hedges the Company held on GBP investments and KWE held on its Euro denominated investments.
Liquidity and Capital Resources
Our liquidity and capital resources requirements include acquisitions of real estate and real estate related assets, funding development projects, loan draws (particularly on our construction loan business), capital expenditures for consolidated real estate and unconsolidated investments, working capital needs, interest and principal payments on our debt and dividends to our common and preferred shareholders. We finance these activities with internally generated funds through general operations including rental income, interest income, asset management fees, asset sales, borrowings under our revolving line of credit, sales of equity (common and preferred) and debt securities and cash out refinancings to the extent they are available and fit within our overall portfolio leverage strategy. Our investments in real estate are typically financed with equity from our balance sheet, third party equity and mortgage loans secured by such real estate. These mortgage loans are generally non-recourse in that, in the event of default, recourse will be limited to the mortgaged property serving as collateral, subject to limited customary exceptions. In some cases, we guarantee a portion of the loan related to a consolidated property or an unconsolidated investment, usually until some condition, such as completion of construction or leasing or certain net operating income criteria, has been met. We do not expect these guarantees to materially affect liquidity or capital resources. Please refer to the section titled "Off Balance Sheet Arrangements" for further information.
Our short-term liquidity requirements primarily consist of operating expenses and other expenditures associated with our properties and loan investments, dividend payments to our common and preferred shareholders, interest on our unsecured corporate debt, repayment of the KWE notes (as described below), development, redevelopment and capital expenditures and, potentially, share repurchases and acquisitions. We currently expect to meet our short-term liquidity requirements through our existing cash and cash equivalents plus capital generated from our investments, and sales of real estate as well as availability on our current revolving lines of credit. Our need to raise funds from time to time to meet our capital requirements will depend on many factors, including the success and pace of the implementation of our strategy for strategic and accretive growth where appropriate. Additionally, we may opportunistically seek to raise capital (equity or debt) when we believe market conditions are favorable and when consistent with our growth and financing strategies. We may also seek third party financing to the extent that we engage in additional strategic investments, including in order to raise capital necessary to acquire real estate, note portfolios, or other real estate related companies or real estate related securities or execute potential development or redevelopment strategies. Similarly, we may from time to time seek to refinance our existing indebtedness opportunistically in order to reduce our overall cost of debt capital or optimize the maturity schedule of our outstanding indebtedness, or for other strategic reasons. Actual sales will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of its common stock, the Company's determination of the appropriate sources of funding for the Company, and potential uses of funding available.
As of June 30, 2025, we and our consolidated subsidiaries had $309.1 million ($84.1 million of which is in foreign currencies of the EUR or the GBP) of consolidated cash (as shown on our consolidated balance sheet), our share of cash held at unconsolidated Co-Investment Portfolio assets of $134.3 million and had $447.6 million of availability under our revolving credit facility ($102.4 million outstanding as of June 30, 2025). As of June 30, 2025, we have $113.2 million of restricted cash, which is included in cash and cash equivalents, that primarily relates to lender reserves associated with consolidated mortgages that we hold on properties and reserves held on loans in the Construction Loan Portfolio (as defined herein) on behalf of the borrowers under such loans. These reserves typically relate to interest, taxes, insurance and future capital expenditures at the properties as well as reserves held on our loan investments.
Additionally, we are subject to withholding taxes to the extent we repatriate cash from certain of our foreign subsidiaries. Under the KWE Notes covenants we have to maintain certain interest coverage and leverage ratios to remain in compliance (see "Indebtedness and Related Covenants" for more detail on KWE Notes). Due to these covenants, we evaluate the tax and covenant implications before we distribute cash, which could impact the availability of funds at the corporate level.
As discussed throughout this report, ongoing macroeconomic conditions, such as, but not limited to, elevated levels of inflation and interest rates, banks' ability and willingness to lend, adverse developments affecting financial institutions and other geopolitical issues, including large-scale conflicts and warfare, and government responses to the same, continue to adversely impact the global economy and create volatility in our business results and operations, including our ability to access the capital markets at desired terms or at all. Please also see Part I. Item 1A. Risk Factors to our Annual Report on Form 10-K for the year ended December 31, 2024.
Development and Redevelopment
We have neared the completion of a 10-year development pipeline totaling $5 billion in 2024. As of June 30, 2025, we have 288 multifamily units we are actively developing and another project we are still in the planning phase. On the project we
are actively developing we currently expect to spend an additional $13.0 million to complete the project and expect this to be fully funded with a property level construction loan.
In addition to the market rate development and redevelopment projects described above, we have 1,870 affordable and/or age-restricted multifamily units within our VHH platform that we are currently developing or are in the process of stabilizing. We expect to have no cash equity basis in these projects at completion due to the use of property level debt and proceeds from the sale of tax credits. If these projects are brought to completion, we expect to receive $23.2 million in cash from paid developer fees and proceeds from the sale of tax credits.
The figures described in the two preceding paragraphs and in the table below are budgeted costs and are subject to change. There is no certainty that the Company will develop or redevelop any or all of these potential projects and the Company and its equity partners are under no obligation to complete these projects and may dispose of any such assets after adding value through the entitlement process. These are budgeted figures and are subject to change (increase or decrease) due to a number of factors (some of which are beyond our control), including, that these projects are being developed under construction management contracts with the general contractors and therefore we and our equity partners could be called upon to contribute additional capital in the event that actual costs exceed budgeted costs. The scope of these projects may also change. The estimated costs and amounts of cash to complete projects reflected in the table below represent management's current expectations and the total costs incurred to date include the land costs of these projects.
The table below describes the market rate development or redevelopment projects that the Company is undergoing or considering, and excludes the affordable and/or age-restricted multifamily units that it is developing in its VHH platform and its residential investments ($ in millions).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | If Completed | Current |
| Location | Type | Investment | Status | Est. Completion Date(1) | Est. Stabilization Date | MF Units | KW Est.
Total Cost(3) | KW Costs Incurred(3) | KW Est. Costs to Complete(2) |
| Mountain West | Multifamily | Cloudveil | Under Construction | 2026 | 2026 | 288 | 45.8 | $ | 33 | | $ | 13 | |
| Pacific Northwest | Multifamily | Bend | In Planning | TBD | TBD | TBD | TBD | 22 | | TBD |
| Total | | | | 288 | | $ | 45.8 | | $ | 55 | | $ | 13 | |
Note: The table above excludes minority-interest development projects and one development project where the scope is still being explored
(1) The actual completion date for projects is subject to several factors, many of which are not within our control. Accordingly, the projects identified may not be completed when expected, or at all.
(2) Figures shown in this column are an estimate of KW's remaining costs to develop to completion or to complete the entitlement process, as applicable, as of June 30, 2025. Total remaining costs may be financed with third-party cash contributions, proceeds from projected sales, and/or debt financing. These figures are budgeted costs and are subject to change. There is no guarantee that the Company will be able to secure the project-level debt financing that is assumed in the figures above. If the Company is unable to secure such financing, the amount of capital that the Company will have to invest to complete the projects above may significantly increase. KW cost to complete differs from KW share total capitalization as the latter includes costs that have already been incurred to date while the former relates to future estimated costs.
(3) Includes land costs.
Unstabilized and Value Add Capital Expenditure Programs
We currently have seven assets that comprise 1.4 million commercial square feet that are currently unstabilized and are undergoing various stages of lease up, value add or development. In order to stabilize these assets, we project our share of the costs to complete to be $19.5 million. The cost to complete this work and the time frame described is subject to many uncertainties that are beyond our control, and the actual costs may be significantly higher than the estimates shown below.
The table below describes assets that are currently unstabilized.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property | Segment | Location | Type | KW Ownership % | # of Assets | Commercial Sq. Ft. | Leased % | KW Est. Costs to Complete(1) |
| Coopers Cross | Co-Investment | Ireland(2) | Office | 50% | 1 | 395,000 | | — | | $ | 2 | |
| 90 East Buildings | Consolidated | Pacific Northwest | Office | 100% | 1 | 410,000 | | — | | 11 |
H4 and H7 at Hamilton Landing(4) | Consolidated | Northern California | Office | 100% | 1 | 118,000 | | 34 | | 6 | |
| Stockley Park | Consolidated | United Kingdom(2) | Office | 100% | 1 | 54,000 | | — | | — | |
| The Heights | Co-Investment | United Kingdom(2) | Office | 51% | 1 | 356,000 | | 65 | | — | |
| Kona Village | Co-Investment | Hawaii | Hotel | 35% | 1 | — | | N/A | — | |
| | Total Lease-Up | | 6 | 1,333,000 | | 22 | % | $ | 19 | |
(1) Figures shown in this column are an estimate of KW's remaining costs to develop to completion or to complete the entitlement process, as applicable, as of June 30, 2025. Total remaining costs may be financed with third-party cash contributions, proceeds from projected sales, and/or debt financing. These figures are budgeted costs and are subject to change. There is no guarantee that the Company will be able to secure the project-level debt financing that is
assumed in the figures above. If the Company is unable to secure such financing, the amount of capital that the Company will have to invest to complete the projects above may significantly increase.
(2) Estimated foreign exchange rates are €1.00 = $1.18 USD, and £1.00 = $1.37 USD related to NOI.
In addition to our development, redevelopment and stabilization initiatives we regularly implement a value-add approach to our consolidated and unconsolidated investments which includes rehabbing properties and adding or updating property amenities. The capital required to implement these value-add initiatives is typically funded with capital calls, refinancing or supplemental financings at the property level. We are not required to make these investments, but they are a key driver in our ability to increase net operating income at our properties post-acquisition.
Other Items
On November 3, 2020, the Company's board of directors authorized an expansion of its existing $250 million share repurchase plan to $500 million. Repurchases under the program may be made in the open market, in privately negotiated transactions, through the net settlement of the Company’s restricted stock grants or otherwise, with the amount and timing of repurchases dependent on market conditions and subject to the Company’s discretion. The program does not obligate the Company to repurchase any specific number of shares and, subject to compliance with applicable laws, may be suspended or terminated at any time without prior notice. As of June 30, 2025, we had $100.9 million remaining under the current plan for stock repurchases. Please also see "Unregistered Sales of Equity Securities and Use of Proceeds" section in Item 2.
The Company maintains a deferred compensation program for certain employees of the Company (the “Deferred Compensation Program”). The named executive officers of the Company are not participants of the Deferred Compensation Program. The compensation committee of the Company’s board of directors approves an amount annually to be allocated to certain employees of the Company in the United States and in Europe. The amount allocated to each employee vests ratably over a three-year vesting period, subject to continued employment with the Company and is tied specifically to the performance and value of the Company’s common stock at the time of each vesting. Under the Deferred Compensation Program, at the time of each vesting, the employees receive an amount equal to either the dividend yield of the Company’s common stock or the actual amount of dividends paid on the Company common stock (in the case of Bonus Units) during the immediately preceding year on the amount that is subject to such vesting. During the six months ended June 30, 2025 and 2024 the Company recorded $3.2 million and $3.3 million, respectively, under the Deferred Compensation Program.
As discussed throughout this report, the Company also maintains a carried interests sharing program for certain employees of the Company (the “Carried Interests Sharing Program”). The compensation committee of the Company’s board of directors recently approved, reserved and authorized increasing the pool available for the Company employees from thirty-five percent to fifty percent issue of any carried interests earned by certain commingled funds and separate account investments to be allocated to certain employees of the Company. Sixty percent of the award to each employee vests ratably over four years and the remaining forty percent vest upon the consummation of a liquidity event of the investment whereby the Company actually receives cash carried interests from its partner. The full carried interests earned by the Company will be recorded to income from unconsolidated investments and the amount allocated to employees is recorded as carried interests compensation. Not all of the Company’s co-investment structures are included in the Carried Interests Sharing Program either because a structure does not incorporate carried interests that the Company is eligible to receive and/or a structure was an existing structure prior to the Board’s approval of the Carried Interests Sharing Program. As of June 30, 2025, (i) of the 72 investments in the Company’s co-investment portfolio, 11 of such investments are a part of the Carried Interests Sharing Program; (ii) the Company’s total accrued carried interests in its financial statements is $17.4 million, of which $4.0 million was accrued as carried interests compensation expense as part of the Carried Interests Program. During the six months ended June 30, 2025 and 2024, the Company recorded a reversal of $3.3 million and $10.0 million, respectively related to this program.
The Company also maintains a global employee co-investment program (the “Co-Investment Program”). The named executive officers are not participants of the Co-Investment Program. Under the Co-Investment Program, certain employees are provided the opportunity to invest alongside the Company in its investments (in all future investments and certain recently acquired transactions). The amount of funds that the employees, as a group, can invest in the Company’s investments is capped at 1.5% of the Company’s equity. Generally (with certain exceptions), participants in the Co-Investment Program will make commitments to the program on an annual basis and invest in every investment made by the Company (investments that such employee has an active role in acquiring and managing) in the applicable year.
Cash Flows
The following table summarizes the cash provided by or used in our operating, investing and financing activities for the six months ended June 30, 2025 and 2024.
| | | | | | | | | | | |
| Six Months Ended June 30, |
| (Dollars in millions) | 2025 | | 2024 |
| Net cash (used in) provided by operating activities | $ | (9.9) | | | $ | 31.1 | |
| Net cash provided by investing activities | 462.1 | | | 173.6 | |
| Net cash used in financing activities | (364.4) | | | (151.9) | |
Operating
Our cash flows from operating activities are primarily dependent upon operations from consolidated properties, the operating distributions and fees from our Co-Investment Platform, general and administrative costs, compensation and interest expense payments. Net cash flows used in operating activities totaled $9.9 million and cashflows provided by operating activities were $31.1 million for the six months ended June 30, 2025 and 2024, respectively. The six months ended June 30, 2025 cash flows used in operations were primarily due to the payment of discretionary compensation and interest payments. The increase in cash used in operations as compared to the prior period is due to the receipt of restricted cash amounts relating to escrow amounts in the Construction Loan Portfolio during the six months ended June 30, 2024 as we took servicing of the debt platform in house.
Investing
Our cash flows from investing activities are generally comprised of cash used to fund property acquisitions, investments in co-investments, capital expenditures, purchases and originations of loans secured by real estate, as well as cash received from property sales and sales from our co-investments. Net cash provided by investing activities totaled $462.1 million for the six months ended June 30, 2025. We received $423.9 million from the sale and deconsolidation of a 90% interest in a wholly-owned multifamily asset in Northern California, two non-core office buildings in Ireland and non-core commercial assets in the United Kingdom. We received $167.3 million in investing distributions from our co-investments primarily from the recapitalization of our interest in Kona Village, excess proceeds from multifamily properties that were refinanced, the payoff of a loan in our European loan business and the redemption of our interests in hedge funds. Loan draws and our share of new loans issued as part of our Construction Loan and bridge credit platform totaled $26.0 million. We received $32.9 million of proceeds from repayments on loans previously issued. We spent $25.7 million on acquisition of an industrial development asset in London and $20.4 million on capital expenditures related to consolidated assets primarily relating to development properties as well as value add additions to our operating properties. We also contributed $87.8 million to unconsolidated investments that were primarily used to fund new acquisitions, capital expenditures for new home construction at our Kohanaiki residential development and to pay down property debt held within unconsolidated investments.
Net cash provided by investing activities totaled $173.6 million for the six months ended June 30, 2024. We received $330.6 million from the sale of Shelbourne Hotel, a building at the 90 East office complex in Issaquah, Washington and non-core commercial assets in the United Kingdom. We received $4.8 million in investing distributions from our co-investments primarily from conversion of VHH assets and redemption of a hedge fund investment. Loan draws and our share of new loans issued as part of our Construction Loan and bridge credit platform totaled $21.0 million. We received $15.3 million of proceeds from repayments on loans previously issued. We spent $88.7 million on capital expenditures on consolidated assets primarily relating to development properties as well as value add additions to our operating properties. We also contributed $59.4 million to unconsolidated investments that were primarily used to fund our share of new acquisitions made within our new commingled fund in the United States, capital calls on European developments, capital calls on Kona Village while we are working towards stabilization and merger relating to our investment in Zonda.
Financing
Our net cash related to financing activities are generally impacted by capital-raising activities net of dividends and distributions paid to common and preferred shareholders and noncontrolling interests as well as financing activities for consolidated real estate investments. Net cash used in financing activities totaled $364.4 million for the six months ended June 30, 2025. During the six months ended June 30, 2025, we drew $170.0 million on our revolving line of credit and repaid $178.7 million on the line of credit. We made $304.0 million of repayments on mortgage debt relating to the recapitalization of multifamily property discussed above and sale of two non-core office buildings in Ireland. During the six months ended June 30, 2025, we paid common dividends of $34.9 million and preferred dividends of $21.8 million and we repurchased $9.2 million of our common stock under our share repurchase plan. We received $15.6 million in cash in our real estate credit platform relating to a loan that paid off that will be distributed to partners in the third quarter 2025.
Net cash used in financing activities totaled $151.9 million for the six months ended June 30, 2024. We drew $100.0 million on our revolving line of credit. Kennedy Wilson received proceeds of $97.6 million from mortgage loans to refinance consolidated property loans. These proceeds were offset by the repayment of $167.9 million of mortgage debt primarily related to proceeds from the 90 East building sale. During the six months ended June 30, 2024, we paid common dividends of $67.2
million and preferred dividends of $21.8 million and we repurchased $14.8 million of our common stock under our share repurchase plan.
Contractual Obligations and Commercial Commitments
At June 30, 2025, Kennedy Wilson's contractual cash obligations, including debt, operating leases and ground leases, included the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Payments Due by Period(9) |
| (Dollars in millions) | | Total | | Less than 1 year | | 1-3 years | | 4-5 years | | After 5 years |
Contractual Obligations(6) | | | | | | | | | | |
Borrowings:(1) (4) | | | | | | | | | | |
Mortgage Debt(2) (4) | | $ | 2,398.4 | | | $ | 93.0 | | | $ | 1,119.3 | | | $ | 411.2 | | | $ | 774.9 | |
Senior notes(3) (4) | | 1,800.0 | | | — | | | — | | | 1,200.0 | | | 600.0 | |
Credit Facility(4) | | 102.4 | | | — | | | 102.4 | | | — | | | — | |
KWE Unsecured bonds(4) (5) | | 353.0 | | | 353.0 | | | — | | | — | | | — | |
| Total borrowings | | 4,653.8 | | | 446.0 | | | 1,221.7 | | | 1,611.2 | | | 1,374.9 | |
| Operating leases | | 11.8 | | | 0.7 | | | 3.5 | | | 3.4 | | | 4.2 | |
Ground leases(8) | | 28.9 | | | 0.1 | | | 0.4 | | | 0.4 | | | 28.0 | |
Total contractual cash obligations(7) | | $ | 4,694.5 | | | $ | 446.8 | | | $ | 1,225.6 | | | $ | 1,615.0 | | | $ | 1,407.1 | |
(1) Figures do not include scheduled interest payments. Assuming each debt obligation is held until maturity, we estimate that we will make the following interest payments: Less than 1 year - $64.4 million; 1-3 years - $264.7 million; 4-5 years - $87.8 million; After 5 years - $35.8 million. The interest payments on variable rate debt have been calculated using the interest rate in effect at June 30, 2025.
(2) Excludes $1.3 million of net unamortized debt discount on mortgage debt.
(3) Excludes $2.5 million of net unamortized debt premium on senior notes.
(4) Excludes $32.5 million of unamortized loan fees.
(5) Excludes $0.2 million net unamortized discount on KWE unsecured bonds
(6) Kennedy Wilson's share of contractual obligations, (excluding amounts that are attributable to noncontrolling interests), including debt and operating leases, consisted of the following: Less than 1 year - $446.8 million; 1-3 years - $1,224.7 million; 4-5 years - $1,602.2 million; After 5 years - $1,367.3 million.
(7) Table above excludes $227.8 million unfulfilled capital commitments to our unconsolidated and fund investments and $145.8 million to our loan investments.
(8) Ground leases on consolidated assets. Amounts are undiscounted and have leases that expire as far out as 2258.
(9) Principal debt payments include the effect of extension options.
Indebtedness and Related Covenants
The following describes certain indebtedness and related covenants.
KWI Notes
On February 11, 2021, Kennedy-Wilson, Inc. ("KWI"), issued $500.0 million aggregate principal amount of 4.750% senior notes due 2029 (the “2029 Notes”) and $500.0 million aggregate principal amount of 5.000% senior notes due 2031 (the “2031 Notes” and, together with the 2029 Notes, the “initial notes”). On March 15, 2021, KWI issued an additional $100 million aggregate principal of the 2029 Notes and an additional $100 million of the 2031 Notes. These additional notes were issued as "additional notes" under the indentures pursuant to which KWI previously issued 2029 Notes and the 2031 Notes. On August 23, 2021, KWI issued $600.0 million aggregate principal amount of 4.750% senior notes due 2030 (the "2030 Notes", together with the 2029 Notes, the 2031 notes and the additional notes, the "notes"). The notes are senior, unsecured obligations of KWI and are guaranteed by Kennedy-Wilson Holdings, Inc. and certain subsidiaries of KWI.
The notes accrue interest at a rate of 4.750% (in the case of the 2029 Notes), 4.750% (in the case of the 2030 Notes) and 5.000% (in the case of the 2031 Notes) per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2021 for the 2029 Notes and 2031 Notes and March 1, 2022 for the 2030 Notes. The notes will mature on March 1, 2029 (in the case of the 2029 Notes), February 1, 2030 (in the case of 2030 Notes) and March 1, 2031 (in the case of the 2031 Notes), in each case unless earlier repurchased or redeemed. At any time prior to March 1, 2024 (in the case of the 2029 Notes), September 1, 2024 (in the case of the 2030 Notes) or March 1, 2026 (in the case of the 2031 Notes), KWI may
redeem the notes of the applicable series, in whole or in part, at a redemption price equal to 100% of their principal amount, plus an applicable “make-whole” premium and accrued and unpaid interest, if any, to the redemption date. At any time and from time to time on or after March 1, 2024 (in the case of the 2029 Notes), September 1, 2024 (in the case of the 2030 Notes) or March 1, 2026 (in the case of the 2031 Notes), KWI may redeem the notes of the applicable series, in whole or in part, at specified redemption prices set forth in the indenture governing the notes of the applicable series, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to March 1, 2024 (for 2029 Notes and 2031 Notes) and September 1, 2024 (for 2030 Notes), KWI may redeem up to 40% of the notes of either series from the proceeds of certain equity offerings. No sinking fund will be provided for the notes. Upon the occurrence of certain change of control or termination of trading events, holders of the notes may require KWI to repurchase their notes for cash equal to 101% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. The amount of the 2029 Notes, 2030 Notes and 2031 Notes included in the Company's consolidated balance sheets was $601.2 million, $600.0 million and $601.3 million at June 30, 2025.
KWE Notes
As of June 30, 2025, KWE has notes outstanding ("KWE Notes") of $353.0 million (based on June 30, 2025 rates), have an annual fixed coupon of 3.25% and mature in November 2025. The KWE Notes are subject to the restrictive covenants discussed below.
Borrowings Under Line of Credit
On September 12, 2024, the Company, through a wholly-owned subsidiary, extended its existing revolving line of credit and increased the capacity to $550 million ("Third A&R Facility"). The Third A&R Facility has a maturity date of September 12, 2027. Subject to certain conditions precedent and at Kennedy-Wilson, Inc.’s (the "Borrower") option, the maturity date of the Third A&R Facility may be extended by a year.
The Company has $102.4 million outstanding on the Third A&R Facility with $447.6 million available to be drawn as of June 30, 2025.
Debt Covenants
The Third A&R Facility and the indentures governing the notes contain numerous restrictive covenants that, among other things, limit the Company and certain of its subsidiaries' ability to incur additional indebtedness, pay dividends or make distributions to stockholders, repurchase capital stock or debt, make investments, sell assets or subsidiary stock, create or permit liens, engage in transactions with affiliates, enter into sale/leaseback transactions, issue subsidiary equity and enter into consolidations or mergers.
The Third Amended and Restated Credit Agreement, dated as of September 12, 2024 (the "Credit Agreement") also contains financial covenants, which require the Company to maintain (i) a maximum consolidated leverage ratio (as defined in the Credit Agreement) of not greater than 65%, measured as of the last day of each fiscal quarter; (ii) a minimum fixed charge coverage ratio (as defined in the Credit Agreement) of not less than 1.60 to 1.00, measured as of the last day of each fiscal quarter for the period of four full fiscal quarters then ended; (iii) a minimum consolidated tangible net worth equal to or greater than the sum of $1,844,222,000 plus an amount equal to fifty percent (50%) of net equity proceeds received by the Company after the date of the most recent financial statements that are available as of September 12, 2024, measured as of the last day of each fiscal quarter; (iv) a maximum recourse leverage ratio (as defined in the Credit Agreement) of not greater than an amount equal to consolidated tangible net worth as of the measurement date multiplied by 1.5, measured as of the last day of each fiscal quarter; (v) a maximum secured recourse leverage ratio (as defined in the Credit Agreement) of not greater than an amount equal to 3.5% of consolidated total asset value (as defined in the Credit Agreement) and $313,054,000, measured as of the last day of each fiscal quarter; (vi) a maximum adjusted secured leverage ratio (as defined in the Credit Agreement) of not greater than 55%, measured as of the last day of each fiscal quarter; and (vii) liquidity (as defined in the Credit Agreement) of at least $75.0 million. As of June 30, 2025, the Company was in compliance with these financial covenants. The obligations of Kennedy-Wilson, Inc. pursuant to the Credit Agreement are guaranteed by the Company and certain wholly-owned subsidiaries of the Company.
The indentures governing the notes limit Kennedy-Wilson, Inc.'s ability to incur additional indebtedness if, on the date of such incurrence and after giving effect to the new indebtedness, Kennedy-Wilson, Inc.'s maximum balance sheet leverage ratio (as defined in the indenture) is greater than 1.50 to 1.00. This ratio is measured at the time of incurrence of additional indebtedness.
The KWE Notes require KWE to maintain (i) consolidated net indebtedness (as defined in the trust deed for the notes) of no more than 60% of the total asset value; (ii) consolidated secured indebtedness (less cash and cash equivalents) of no more than 50% of total asset value; (iii) an interest coverage ratio of at least 1.5 to 1.0; and (iv) unencumbered assets of no less than 125% of the unsecured indebtedness (less cash & cash equivalents). The covenants associated with KWE Notes are not an obligation of KWH and these amounts are presented as a component of our investment debt as it is an unsecured obligation relating to an underlying investment of ours. As of June 30, 2025, the Company was in compliance with these covenants.
In addition, loan agreements that govern the Company's property-level non-recourse financings that are secured by its properties may contain operational and financial covenants, including but not limited to, debt yield related covenants and debt service coverage ratio covenants and, with respect to mortgages secured by certain properties in Europe, loan-to-value ratio covenants. Property-level non-recourse financings with such loan-to-value covenants require that the underlying properties are valued on a periodic basis (at least annually). The failure by the Company to comply with such covenants and/or secure waivers from lenders could result in defaults under these instruments. In addition, if the Company defaults under a mortgage loan and/or such loan is accelerated by the lender, it may automatically be in default under any of its property and corporate unsecured loans that contain cross-default and/or cross-acceleration provisions. Please also see Part I. Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024.
As of June 30, 2025, the Company was in compliance with all covenant calculations. On August 6, 2025, a $60.0 million property-level, non-recourse loan, secured by a wholly-owned office building in Northern California, matured. The Company is in discussions with lender regarding a loan modification and/or extension.
Off-Balance Sheet Arrangements
Guarantees
Most of our real estate properties within our equity partnerships are encumbered by traditional non-recourse debt obligations. In connection with most of these loans, however, we entered into certain “non-recourse carve out” guarantees, which provide for the loans to become partially or fully recourse against us if certain triggering events occur. Although these events are different for each guarantee, some of the common events include:
•the special purpose property-owning subsidiary’s filing a voluntary petition for bankruptcy;
•the special purpose property-owning subsidiary’s failure to maintain its status as a special purpose entity; and
•subject to certain conditions, the special purpose property-owning subsidiary’s failure to obtain lender’s written consent prior to any subordinate financing or other voluntary lien encumbering the associated property.
In the event that any of these triggering events occur and the loans become partially or fully recourse against us, our business, financial condition, results of operations and common stock price could be materially adversely affected.
In addition, other items that are customarily recourse to a non-recourse carve out guarantor include, but are not limited to, the payment of real property taxes, liens which are senior to the mortgage loan and outstanding security deposits.
Capital Commitments
As of June 30, 2025, we had unfulfilled capital commitments totaling $227.8 million to our joint venture investments and $145.8 million to our loan portfolio. In addition to the unfunded capital commitments on our joint venture investments, we had $35.4 million of equity commitments relating to unconsolidated development projects and our UK single family platform. In addition to the unfunded capital commitments on our joint venture investments, we had $85.9 million related to future ground lease payments that run through 2085 on Kona Village. As we identify investment opportunities in the future, we may be called upon to contribute additional capital to unconsolidated investments in satisfaction of our capital commitment obligations.
Please refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for discussion of our non-recourse carve-out guarantees arrangements, as there have been no material changes to that disclosure.
Certain Non-GAAP Measures and Reconciliations
The table below is a reconciliation of Non-GAAP measures to their most comparable GAAP measures, for amounts relating to the three and six months ended June 30, 2025 dated back through 2021.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, |
| (dollars in millions) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 |
| Net income (loss) | | $ | 5.6 | | | $ | (48.3) | | | $ | 47.3 | | | $ | (0.9) | | | $ | 221.2 | |
| Non-GAAP Adjustments | | | | | | | | | | |
| Add back (less): | | | | | | | | | | |
| Interest expense | | 62.5 | | | 63.8 | | | 66.0 | | | 53.2 | | | 44.5 | |
| Loss on early extinguishment of debt | | 2.1 | | | 0.5 | | | 1.7 | | | 1.1 | | | 23.8 | |
| Kennedy Wilson's share of interest expense included in unconsolidated investments | | 33.3 | | | 33.2 | | | 23.3 | | | 15.1 | | | 8.9 | |
| Depreciation and amortization | | 34.5 | | | 36.4 | | | 40.1 | | | 43.3 | | | 41.7 | |
| Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments | | 0.9 | | | 1.1 | | | 0.8 | | | 0.9 | | | 1.4 | |
| Provision for (benefit from) income taxes | | 4.4 | | | (11.8) | | | 10.3 | | | 0.4 | | | 64.9 | |
| Share-based compensation | | 6.5 | | | 6.0 | | | 7.3 | | | 7.3 | | | 7.3 | |
| EBITDA attributable to noncontrolling interests | | (2.7) | | | (1.6) | | | (1.7) | | | (2.0) | | | (3.5) | |
Adjusted EBITDA(1) | | $ | 147.1 | | | $ | 79.3 | | | $ | 195.1 | | | $ | 118.4 | | | $ | 410.2 | |
(1) See "Non-GAAP Measures and Certain Definitions" for definitions and discussion of Adjusted EBITDA.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| (dollars in millions) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 |
| Net (loss) income | | $ | (24.0) | | | $ | (10.6) | | | $ | 18.6 | | | $ | 39.1 | | | $ | 219.6 | |
| Non-GAAP Adjustments | | | | | | | | | | |
| Add back (less): | | | | | | | | | | |
| Interest expense | | 123.9 | | | 128.5 | | | 128.3 | | | 103.7 | | | 96.1 | |
| Loss on early extinguishment of debt | | 2.1 | | | 0.2 | | | 1.6 | | | 1.1 | | | 38.6 | |
| Kennedy Wilson's share of interest expense included in unconsolidated investments | | 65.4 | | | 64.3 | | | 43.1 | | | 26.4 | | | 16.8 | |
| Depreciation and amortization | | 68.6 | | | 75.3 | | | 79.5 | | | 86.6 | | | 86.1 | |
| Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments | | 1.8 | | | 2.0 | | | 1.6 | | | 2.0 | | | 3.1 | |
| (Benefit from) provision for income taxes | | (0.5) | | | 14.9 | | | 6.4 | | | 8.6 | | | 67.6 | |
| Kennedy Wilson's share of taxes included in unconsolidated investments | | — | | | 0.2 | | | 0.2 | | | — | | | — | |
| Share-based compensation | | 12.8 | | | 11.2 | | | 14.4 | | | 14.4 | | | 15.0 | |
| EBITDA attributable to noncontrolling interests | | (4.8) | | | (3.5) | | | (7.7) | | | (3.4) | | | (5.1) | |
Adjusted EBITDA(1) | | $ | 245.3 | | | $ | 282.5 | | | $ | 286.0 | | | $ | 278.5 | | | $ | 537.8 | |
(1) See "Non-GAAP Measures and Certain Definitions" for definitions and discussion of Adjusted EBITDA.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, |
| (dollars in millions) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 |
| Net income (loss) | | $ | 5.6 | | | $ | (48.3) | | | $ | 47.3 | | | $ | (0.9) | | | $ | 221.2 | |
| Non-GAAP adjustments: | | | | | | | | | | |
| Add back (less): | | | | | | | | | | |
| Depreciation and amortization | | 34.5 | | | 36.4 | | | 40.1 | | | 43.3 | | | 41.7 | |
| Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments | | 0.9 | | | 1.1 | | | 0.8 | | | 0.9 | | | 1.4 | |
| Share-based compensation | | 6.5 | | | 6.0 | | | 7.3 | | | 7.3 | | | 7.3 | |
| Preferred dividends | | (10.9) | | | (10.9) | | | (8.4) | | | (7.8) | | | (4.3) | |
| Net income attributable to the noncontrolling interests, before depreciation and amortization | | (2.1) | | | (1.1) | | | (1.1) | | | (1.4) | | | (2.7) | |
Adjusted Net Income (Loss)(1) | | $ | 34.5 | | | $ | (16.8) | | | $ | 86.0 | | | $ | 41.4 | | | $ | 264.6 | |
(1) See "Non-GAAP Measures and Certain Definitions" for definitions and discussion of Adjusted Net Income.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, |
| (dollars in millions) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 |
| Net (loss) income | | $ | (24.0) | | | $ | (10.6) | | | $ | 18.6 | | | $ | 39.1 | | | $ | 219.6 | |
| Non-GAAP adjustments: | | | | | | | | | | |
| Add back (less): | | | | | | | | | | |
| Depreciation and amortization | | 68.6 | | | 75.3 | | | 79.5 | | | 86.6 | | | 86.1 | |
| Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments | | 1.8 | | | 2.0 | | | 1.6 | | | 2.0 | | | 3.1 | |
| Share-based compensation | | 12.8 | | | 11.2 | | | 14.4 | | | 14.4 | | | 15.0 | |
| Preferred dividends | | (21.8) | | | (21.8) | | | (16.3) | | | (13.1) | | | (8.6) | |
| Net income attributable to the noncontrolling interests, before depreciation and amortization | | (3.6) | | | (2.4) | | | (6.5) | | | (2.2) | | | (3.6) | |
Adjusted Net Income(1) | | $ | 33.8 | | | $ | 53.7 | | | $ | 91.3 | | | $ | 126.8 | | | $ | 311.6 | |
(1) See "Non-GAAP Measures and Certain Definitions" for definitions and discussion of Adjusted Net Income.
Net Operating Income
| | | | | | | | | | | | | | | | | | | | |
| 2025 | | QTD | | YTD |
| | Consolidated Portfolio | Co-Investment Portfolio | | Consolidated Portfolio | Co-Investment Portfolio |
| Net income (loss) | | $ | 5.6 | | $ | (0.2) | | | $ | (24.0) | | $ | 11.2 | |
| Add: Provision for (benefit from) income taxes | | 4.4 | | — | | | (0.5) | | — | |
| Add: Loss (income) from unconsolidated investments | | 0.2 | | — | | | (11.2) | | — | |
Less: Gain on sale of real estate, net(1) | | (55.1) | | — | | | (54.3) | | — | |
| Add: Interest expense | | 62.5 | | 33.3 | | | 123.9 | | 65.4 | |
| Add: Loss on early extinguishment of debt | | 2.1 | | — | | | 2.1 | | — | |
| Add: Other loss | | 5.6 | | 9.6 | | | 10.8 | | 15.7 | |
Less: Sale of real estate(1) | | — | | — | | | — | | (16.6) | |
| Less: Investment management | | (36.4) | | — | | | (61.4) | | — | |
| Less: Other | | (0.3) | | — | | | (0.5) | | — | |
| Less: Loans | | (5.7) | | — | | | (11.5) | | — | |
| Add: Carried interests | | — | | 2.0 | | | — | | 10.2 | |
Add: Cost of real estate sold(1) | | — | | — | | | — | | 17.7 | |
| Add: Compensation and related | | 32.3 | | — | | | 59.2 | | — | |
| Add: Carried interests expense | | (0.6) | | — | | | (3.3) | | — | |
| Add: General and administrative | | 8.8 | | — | | | 19.2 | | — | |
| Add: Depreciation and amortization | | 34.5 | | 0.9 | | | 68.6 | | 1.8 | |
| Add: Fair value adjustments | | — | | 7.5 | | | — | | (1.1) | |
| Less: NCI adjustments | | (2.0) | | — | | | (4.2) | | — | |
| Net Operating Income | | $ | 55.9 | | $ | 53.1 | | | $ | 112.9 | | $ | 104.3 | |
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded from Co-Investment NOI.
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | QTD | | YTD |
| | Consolidated Portfolio | Co-Investment Portfolio | | Consolidated Portfolio | Co-Investment Portfolio |
| Net loss | | $ | (48.3) | | $ | (18.1) | | | $ | (10.6) | | $ | (24.8) | |
| Add: (Benefit from) provision for income taxes | | (11.8) | | — | | | 14.9 | | 0.2 | |
| Add: Loss from unconsolidated investments | | 18.1 | | — | | | 24.8 | | — | |
Less: Gain on sale of real estate, net(1) | | (0.2) | | — | | | (106.6) | | — | |
| Add: Interest expense | | 63.8 | | 33.4 | | | 128.5 | | 64.5 | |
| Less: Loss on early extinguishment of debt | | 0.5 | | — | | | 0.2 | | — | |
| Less: Other (income) loss | | (0.3) | | 6.8 | | | (7.1) | | 11.8 | |
| Less: Sale of real estate | | — | | (16.7) | | | — | | (29.8) | |
| Less: Loans | | (8.0) | | — | | | (16.1) | | — | |
| Less: Investment management | | (26.2) | | — | | | (47.8) | | — | |
| Less: Carried interests | | — | | 12.3 | | | — | | 28.7 | |
| Add: Cost of real estate sold | | — | | 15.0 | | | — | | 26.2 | |
| Add: Compensation and related | | 31.8 | | — | | | 59.4 | | — | |
| Add: Carried interests expense | | (4.5) | | — | | | (10.0) | | — | |
| Add: General and administrative | | 9.5 | | — | | | 17.8 | | — | |
| Add: Depreciation and amortization | | 36.4 | | 1.0 | | | 75.3 | | 1.9 | |
| Less: Fair value adjustments | | — | | 12.8 | | | — | | 12.0 | |
| Less: NCI adjustments | | (1.9) | | — | | | (4.1) | | — | |
| Net Operating Income | | $ | 58.9 | | $ | 46.5 | | | $ | 118.6 | | $ | 90.7 | |
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded from Co-Investment NOI.
| | | | | | | | | | | | | | | | | | | | |
| 2023 | | QTD | | YTD |
| | Consolidated Portfolio | Co-Investment Portfolio | | Consolidated Portfolio | Co-Investment Portfolio |
| Net income (loss) | | $ | 47.3 | | $ | (1.4) | | | $ | 18.6 | | $ | 4.3 | |
| Less: Provision for income taxes | | 10.3 | | — | | | 6.4 | | 0.2 | |
| Add: Loss (income) from unconsolidated investments | | 1.4 | | — | | | (4.3) | | — | |
Less: Gain on sale of real estate, net(1) | | (89.0) | | — | | | (108.2) | | — | |
| Add: Interest expense | | 66.0 | | 23.1 | | | 128.3 | | 43.0 | |
| Less: Loss on early extinguishment of debt | | 1.7 | | — | | | 1.6 | | — | |
| Less: Other (income) loss | | (24.3) | | — | | | (21.3) | | 5.6 | |
| Less: Sale of real estate | | — | | (10.5) | | | — | | (10.5) | |
| Less: Loans | | (4.7) | | — | | | (8.4) | | — | |
| Less: Investment management | | (19.7) | | — | | | (31.0) | | — | |
| Less: Carried interests | | — | | 7.7 | | | — | | 18.4 | |
| Add: Cost of real estate sold | | — | | 5.8 | | | — | | 5.8 | |
| Add: Compensation and related | | 37.0 | | — | | | 67.6 | | — | |
| Add: Carried interests expense | | (1.1) | | — | | | 0.5 | | — | |
| Add: General and administrative | | 8.7 | | — | | | 17.1 | | — | |
| Add: Depreciation and amortization | | 40.1 | | 0.8 | | | 79.5 | | 1.6 | |
| Less: Fair value adjustments | | — | | 16.2 | | | — | | 14.8 | |
| Less: NCI adjustments | | (2.0) | | — | | | (3.9) | | — | |
| Net Operating Income | | $ | 71.7 | | $ | 41.7 | | | $ | 142.5 | | $ | 83.2 | |
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded from Co-Investment NOI.
| | | | | | | | | | | | | | | | | | | | |
| 2022 | | QTD | | YTD |
| | Consolidated Portfolio | Co-Investment Portfolio | | Consolidated Portfolio | Co-Investment Portfolio |
| Net (loss) income | | $ | (0.9) | | $ | 30.7 | | | $ | 39.1 | | $ | 136.1 | |
| Add: Provision for income taxes | | 0.4 | | — | | | 8.6 | | — | |
| Less: Income from unconsolidated investments | | (30.7) | | — | | | (136.1) | | — | |
Less: Gain on sale of real estate, net(1) | | (11.9) | | — | | | (13.8) | | — | |
| Add: Interest expense | | 53.2 | | 15.2 | | | 103.7 | | 26.5 | |
| Add: Loss on early extinguishment of debt | | 1.1 | | — | | | 1.1 | | — | |
| Less: Other (income) loss | | (3.6) | | 3.3 | | | (9.4) | | 9.3 | |
Less: Sale of real estate(1) | | — | | (27.1) | | | — | | (35.1) | |
| Less: Loans | | (2.7) | | — | | | (5.0) | | — | |
| Less: Investment management | | (11.4) | | — | | | (23.1) | | — | |
| Less: Carried interests | | — | | 8.7 | | | — | | (18.5) | |
Add: Cost of real estate sold(1) | | — | | 22.7 | | | — | | 28.4 | |
| Add: Compensation and related | | 33.8 | | — | | | 69.9 | | — | |
| Add: Carried interests expense | | (2.0) | | — | | | 9.8 | | — | |
| Add: General and administrative | | 9.4 | | — | | | 17.3 | | — | |
| Add: Depreciation and amortization | | 43.3 | | 0.9 | | | 86.6 | | 2.0 | |
| Less: Fair value adjustments | | — | | (14.6) | | | — | | (70.2) | |
| Less: NCI adjustments | | (1.7) | | — | | | (3.0) | | — | |
| Net Operating Income | | $ | 76.3 | | $ | 39.8 | | | $ | 145.7 | | $ | 78.5 | |
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded from Co-Investment NOI.
| | | | | | | | | | | | | | | | | | | | |
| 2021 | | QTD | | YTD |
| | Consolidated Portfolio | Co-Investment Portfolio | | Consolidated Portfolio | Co-Investment Portfolio |
| Net (loss) income | | $ | 221.2 | | $ | 52.4 | | | $ | 219.6 | | $ | 70.8 | |
| Add: Provision for income taxes | | 64.9 | | — | | | 67.6 | | — | |
| Less: Income from unconsolidated investments | | (52.4) | | — | | | (70.8) | | — | |
Less: Gain on sale of real estate, net(1) | | (328.5) | | 3.1 | | | (402.0) | | 3.1 | |
| Add: Interest expense | | 44.5 | | 8.8 | | | 96.1 | | 16.7 | |
| Add: Loss on early extinguishment of debt | | 23.8 | | — | | | 38.6 | | — | |
| Add: Other loss | | 0.7 | | — | | | 4.0 | | 7.5 | |
Less: Sale of real estate(1) | | — | | 2.6 | | | — | | (19.1) | |
| Less: Loans | | (2.2) | | (0.5) | | | (3.8) | | — | |
| Less: Investment management | | (9.3) | | — | | | (17.4) | | — | |
| Less: Carried interests | | — | | (16.1) | | | — | | (15.7) | |
Add: Cost of real estate sold(1) | | — | | 1.1 | | | — | | 17.0 | |
| Add: Compensation and related | | 48.4 | | — | | | 83.0 | | — | |
| Add: Carried interests expense | | 0.2 | | — | | | 0.3 | | — | |
| Add: General and administrative | | 9.0 | | — | | | 15.8 | | — | |
| Add: Depreciation and amortization | | 41.7 | | 1.5 | | | 86.1 | | 3.3 | |
| Less: Fair value adjustments | | — | | (25.9) | | | — | | (30.2) | |
| Less: NCI adjustments | | (1.4) | | — | | | (3.3) | | — | |
| Net Operating Income | | $ | 60.6 | | $ | 27.0 | | | $ | 113.8 | | $ | 53.4 | |
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded from Co-Investment NOI.
| | | | | | | | | | | | | | |
| June 30, 2025 |
| ($ in millions) | Consolidated | Co-Investment | Non-Segment | Total |
Cash(1) | $ | 147.3 | | $ | — | | $ | 161.8 | | $ | 309.1 | |
| Real estate | 4,078.8 | | — | | — | | 4,078.8 | |
| Unconsolidated Investments | — | | 2,034.7 | | — | | 2,034.7 | |
| Loan purchases and originations | — | | 209.9 | | — | | 209.9 | |
| Accounts receivable and other assets | 86.7 | | — | | 77.7 | | 164.4 | |
| Total Assets | $ | 4,312.8 | | $ | 2,244.6 | | $ | 239.5 | | $ | 6,796.9 | |
| | | | |
| Accounts payable and accrued expenses | 149.5 | | — | | 428.8 | | 578.3 | |
| Mortgage debt | 2,385.2 | | — | | — | | 2,385.2 | |
| KW unsecured debt | — | | — | | 1,884.4 | | 1,884.4 | |
| KWE bonds | 352.7 | | — | | — | | 352.7 | |
| Total Liabilities | 2,887.4 | | — | | 2,313.2 | | 5,200.6 | |
| | | | |
| Equity | 1,425.4 | | 2,244.6 | | (2,073.7) | | 1,596.3 | |
| Total liabilities and equity | $ | 4,312.8 | | $ | 2,244.6 | | $ | 239.5 | | $ | 6,796.9 | |
| | | | | | | | | | | | | | |
| December 31, 2024 |
| ($ in millions) | Consolidated | Co-Investment | Non-Segment | Total |
Cash(1) | $ | 117.4 | | $ | — | | $ | 100.1 | | $ | 217.5 | |
| Real estate | 4,290.4 | | — | | — | | 4,290.4 | |
| Unconsolidated Investments | — | | 2,042.4 | | — | | 2,042.4 | |
| Loan purchases and originations | — | | 231.1 | | — | | 231.1 | |
| Accounts receivable and other assets | 99.7 | | — | | 80.0 | | 179.7 | |
| Total Assets | $ | 4,507.5 | | $ | 2,273.5 | | $ | 180.1 | | $ | 6,961.1 | |
| | | | |
| Accounts payable and accrued expenses | 118.7 | | — | | 421.5 | | 540.2 | |
| Mortgage debt | 2,597.2 | | — | | — | | 2,597.2 | |
| KW unsecured debt | — | | — | | 1,877.9 | | 1,877.9 | |
| KWE bonds | 309.8 | | — | | — | | 309.8 | |
| Total Liabilities | 3,025.7 | | — | | 2,299.4 | | 5,325.1 | |
| | | | |
| Equity | 1,481.8 | | 2,273.5 | | (2,119.3) | | 1,636.0 | |
| Total liabilities and equity | $ | 4,507.5 | | $ | 2,273.5 | | $ | 180.1 | | $ | 6,961.1 | |
Same property analysis
The tables below are reconciliations of non-GAAP measures included in the Company's same property analysis to their most comparable GAAP measures.
| | | | | | | | | | | | | | |
| | Same Property - Revenue(6)* |
| | For the Three Months Ended June 30, |
| | 2025 | | 2024 |
| Total Revenue | | $ | 135.7 | | | $ | 132.0 | |
Less: Investment management fees | | (36.4) | | | (26.1) | |
| Less: Loans | | (5.7) | | | (8.0) | |
Less: Other | | (0.3) | | | (0.1) | |
Less: NCI adjustments (1) | | (2.4) | | | (3.1) | |
Add: Unconsolidated investment adjustments (2) | | 52.2 | | | 50.5 | |
Add: Above/below market rents (6) | | (0.1) | | | (0.5) | |
Less: Reimbursement of recoverable operating expenses | | (6.8) | | | (7.8) | |
Less: Properties bought and sold (3) | | (2.9) | | | (7.8) | |
Less: Other properties excluded (4) | | (9.5) | | | (5.5) | |
Other Reconciling Items (5) | | 0.8 | | | (0.7) | |
| Same Property | | $ | 124.6 | | | $ | 122.9 | |
| | | | | | | | | | | | | | |
| | Same Property - Revenue(6)* |
| | For the Three Months Ended June 30, |
| Same Property (Reported) | | 2025 | | 2024 |
| Office - Same Property | | $ | 28.5 | | | $ | 29.4 | |
| Multifamily Market Rate Portfolio - Same Property | | 76.3 | | | 74.8 | |
| Multifamily Affordable Portfolio - Same Property | | 19.8 | | | 18.7 | |
| Same Property | | $ | 124.6 | | | $ | 122.9 | |
| | | | | | | | | | | | | | |
| | Same Property - Revenue(6)* |
| | For the Six Months Ended June 30, |
| | 2025 | | 2024 |
| Total Revenue | | $ | 264.0 | | | $ | 268.4 | |
Less: Investment management fees | | (61.4) | | | (47.4) | |
Less: Loans | | (11.5) | | | (16.1) | |
Less: Other | | (0.5) | | | (0.4) | |
Less: NCI adjustments (1) | | (6.2) | | | (6.4) | |
Add: Unconsolidated investment adjustments (2) | | 103.8 | | | 100.6 | |
Add: Above/below market rents (6) | | (0.2) | | | (0.9) | |
Less: Reimbursement of recoverable operating expenses | | (16.8) | | | (16.4) | |
Less: Properties bought and sold (3) | | (5.1) | | | (26.7) | |
Less: Other properties excluded (4) | | (19.6) | | | (10.9) | |
Other Reconciling Items (5) | | 2.2 | | | 0.6 | |
| Same Property | | $ | 248.7 | | | $ | 244.4 | |
| | | | | | | | | | | | | | |
| | Same Property - Revenue(6)* |
| | For the Three Months Ended June 30, |
| Same Property (Reported) | | 2025 | | 2024 |
| Office - Same Property | | $ | 57.1 | | | $ | 58.4 | |
| Multifamily Market Rate Portfolio - Same Property | | 152.4 | | | 148.9 | |
| Multifamily Affordable Portfolio - Same Property | | 39.2 | | | 37.1 | |
| Same Property | | $ | 248.7 | | | $ | 244.4 | |
(*) This is a Non-GAAP financial measure. Please see “Non-GAAP Measures and Certain Definitions” for a further explanation and discussion.(1) Represents rental revenue and hotel revenue attributable to non-controlling interests.
(2) Represents the Company’s share of unconsolidated investment rental revenues, as applicable, which are within the applicable same property population.
(3) Represents properties excluded from the same property population that were purchased or sold during the applicable period.
(4) Represents properties excluded from the same property population that were not stabilized during the applicable period, or retail or industrial properties.
(5) Represents other properties excluded from the same property population that were not classified as a commercial or multifamily property within the Company’s portfolio. Also includes immaterial adjustments for foreign exchange rates, changes in ownership percentages, and certain non-recurring income and expenses.
| | | | | | | | | | | | | | |
| | Same Property - NOI (Net Effective)(6)* |
| | For the Three Months Ended June 30, |
| | 2025 | | 2024 |
| Net Income | | $ | 5.6 | | | $ | (48.3) | |
Less: Investment management fees | | (36.4) | | | (26.1) | |
Less: Loans | | (5.7) | | | (8.0) | |
Less: Other | | (0.3) | | | (0.1) | |
Less: Total Income from unconsolidated investments | | 0.2 | | | 18.1 | |
Less: Gain on sale of real estate, net | | (55.1) | | | (0.2) | |
Add: Compensation and related | | 32.3 | | | 31.8 | |
Add: Carried interests compensation | | (0.6) | | | (4.5) | |
Add: General and administrative | | 8.8 | | | 9.5 | |
Add: Depreciation and amortization | | 34.5 | | | 36.4 | |
Add: Interest Expense | | 62.5 | | | 63.8 | |
Add: Gain (loss) on early extinguishment of debt | | 2.1 | | | 0.5 | |
Less: Other income (loss) | | 5.6 | | | (0.3) | |
Add: Provision for income taxes | | 4.4 | | | (11.8) | |
Less: NCI adjustments (1) | | (1.8) | | | (1.9) | |
Add: Unconsolidated investment adjustments (2) | | 36.7 | | | 35.4 | |
Add: Straight-line and above/below market rents (6) | | (0.1) | | | (0.5) | |
Less: Properties bought and sold (3) | | (2.5) | | | (5.4) | |
Less: Other properties excluded (4) | | (3.9) | | | (1.8) | |
Other Reconciling Items (5) | | 2.0 | | | 0.8 | |
| Same Property NOI (Net Effective)* | | $ | 88.3 | | | $ | 87.4 | |
| | | | | | | | | | | | | | |
| | Same Property - NOI (Net Effective)(6)* |
| | For the Three Months Ended June 30, |
| Same Property (Reported) | | 2025 | | 2024 |
| Office - Same Property | | $ | 23.5 | | | $ | 24.8 | |
| Multifamily Market Rate Portfolio - Same Property | | 51.9 | | | 50.3 | |
| Multifamily Affordable Portfolio - Same Property | | 12.9 | | | 12.3 | |
| Same Property NOI (Net Effective)* (Reported) | | $ | 88.3 | | | $ | 87.4 | |
| | | | | | | | | | | | | | |
| | Same Property - NOI (Net Effective)(6)* |
| | For the Six Months Ended June 30, |
| | 2025 | | 2024 |
| Net Income | | $ | (24.0) | | | $ | (10.6) | |
Less: Investment management fees | | (61.4) | | | (47.4) | |
Less: Loans | | (11.5) | | | (16.1) | |
Less: Other | | (0.5) | | | (0.4) | |
Less: Total Income from unconsolidated investments | | (11.2) | | | 24.8 | |
Less: Gain on sale of real estate, net | | (54.3) | | | (106.6) | |
Add: Compensation and related | | 59.2 | | | 59.4 | |
Add: Carried interests compensation | | (3.3) | | | (10.0) | |
Add: General and administrative | | 19.2 | | | 17.8 | |
Add: Depreciation and amortization | | 68.6 | | | 75.3 | |
Add: Interest Expense | | 123.9 | | | 128.5 | |
Add: Gain (loss) on early extinguishment of debt | | 2.1 | | | 0.2 | |
Less: Other income (loss) | | 10.8 | | | (7.1) | |
Add: Provision for income taxes | | (0.5) | | | 14.9 | |
Less: NCI adjustments (1) | | (3.9) | | | (4.1) | |
Add: Unconsolidated investment adjustments (2) | | 72.8 | | | 70.5 | |
Add: Straight-line and above/below market rents (6) | | (0.2) | | | (0.9) | |
Less: Properties bought and sold (3) | | (4.6) | | | (14.2) | |
Less: Other properties excluded (4) | | (7.9) | | | (2.9) | |
Other Reconciling Items (5) | | 2.7 | | | 2.0 | |
| Same Property NOI (Net Effective)* | | $ | 176.0 | | | $ | 173.1 | |
| | | | | | | | | | | | | | |
| | Same Property - NOI (Net Effective)(6)* |
| | For the Six Months Ended June 30, |
| Same Property (Reported) | | 2025 | | 2024 |
| Office - Same Property | | $ | 47.1 | | | $ | 48.9 | |
| Multifamily Market Rate Portfolio - Same Property | | 103.6 | | | 100.0 | |
| Multifamily Affordable Portfolio - Same Property | | 25.3 | | | 24.2 | |
| Same Property NOI (Net Effective)* (Reported) | | $ | 176.0 | | | $ | 173.1 | |
(*) This is a Non-GAAP financial measure. Please see “Non-GAAP Measures and Certain Definitions” for a further explanation and discussion.(1) Represents rental revenue and operating expenses and hotel revenue and operating expenses attributable to non-controlling interests.
(2) Represents the Company’s share of unconsolidated investment rental revenues and net operating income, as applicable, which are within the applicable same property population.
(3) Represents properties excluded from the same property population that were purchased or sold during the applicable period.
(4) Represents properties excluded from the same property population that were not stabilized during the applicable period, or retail or industrial properties.
(5) Represents other properties excluded from the same property population that were not classified as a commercial or multifamily property within the Company’s portfolio. Also includes immaterial adjustments for foreign exchange rates, changes in ownership percentages, and certain non-recurring income and expenses.
(6) Excludes above/below market rents from the same property population, as they are representative of non-cash purchase price accounting income.
