Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-33824 | |
Entity Registrant Name | Kennedy-Wilson Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0508760 | |
Entity Address, Address Line One | 151 S El Camino Drive | |
Entity Address, City or Town | Beverly Hills | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90212 | |
City Area Code | 310 | |
Local Phone Number | 887-6400 | |
Title of 12(b) Security | Common stock, $.0001 par value | |
Trading Symbol | KW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 137,528,139 | |
Entity Central Index Key | 0001408100 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and cash equivalents | $ 541.9 | $ 313.7 | |
Accounts receivable, net (including $11.7 and $13.8 of related party) | 42.5 | 57.3 | |
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of $906.0 and $957.8) | 4,603.5 | 4,837.3 | |
Unconsolidated investments (including $1,917.6 and $1,927.0 at fair value) | 2,059.6 | 2,069.1 | |
Loan purchases and originations, net of allowance for credit losses | 250.4 | 247.2 | |
Other assets, net | 182.4 | 187.5 | |
Total assets | [1] | 7,680.3 | 7,712.1 |
Liabilities | |||
Accounts payable | 15.5 | 17.9 | |
Accrued expenses and other liabilities | 562.8 | 597.8 | |
Total liabilities | [1] | 5,895.4 | 5,913.7 |
Equity | |||
Preferred stock | 789.9 | 789.9 | |
Common stock, $0.0001 par value per share, 200,000,000 authorized, 138,095,244 and 138,727,521 shares issued and outstanding as of March 31, 2024 and December 31, 2023 | 0 | 0 | |
Additional paid-in capital | 1,706.5 | 1,718.6 | |
Accumulated deficit | (347.1) | (349) | |
Accumulated other comprehensive loss | (406.7) | (404.4) | |
Total Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,742.6 | 1,755.1 | |
Noncontrolling interests | 42.3 | 43.3 | |
Total equity | 1,784.9 | 1,798.4 | |
Total liabilities and equity | 7,680.3 | 7,712.1 | |
Mortgage debt | |||
Liabilities | |||
Long-term debt | 2,773.1 | 2,840.9 | |
KW unsecured debt | |||
Liabilities | |||
Long-term debt | 2,032.5 | 1,934.3 | |
KWE unsecured bonds | |||
Liabilities | |||
Long-term debt | $ 511.5 | $ 522.8 | |
[1]The assets and liabilities as of March 31, 2024 include $169.8 million (including cash held by consolidated investments of $4.8 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $134.6 million) and $71.7 million (including investment debt of $53.9 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2023 include $154.9 million (including cash held by consolidated investments of $3.6 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $121.8 million) and $101.4 million (including investment debt of $54.9 million), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Related party accounts receivable, net | $ 42.5 | $ 57.3 | |
Accumulated depreciation and amortization of real estate and acquired in place lease values | 906 | 957.8 | |
Fair value of unconsolidated investments | $ 1,917.6 | $ 1,927 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |
Common stock, shares issued (in shares) | 138,095,244 | 138,727,521 | |
Common stock, shares outstanding (in shares) | 138,095,244 | 138,727,521 | |
Assets from VIEs | [1] | $ 7,680.3 | $ 7,712.1 |
Cash held by consolidated investments from VIEs | 541.9 | 313.7 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization from VIEs | 4,603.5 | 4,837.3 | |
Liabilities from VIEs | [1] | 5,895.4 | 5,913.7 |
Variable Interest Entity, Primary Beneficiary | |||
Assets from VIEs | 169.8 | 154.9 | |
Cash held by consolidated investments from VIEs | 4.8 | 3.6 | |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization from VIEs | 134.6 | 121.8 | |
Liabilities from VIEs | 71.7 | 101.4 | |
Variable Interest Entity, Primary Beneficiary | Investment Debt | |||
Investment debt from VIEs | $ 53.9 | $ 54.9 | |
Series A Cumulative Preferred Stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares outstanding (in shares) | 300,000 | 300,000 | |
Series B Cumulative Preferred Stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares outstanding (in shares) | 300,000 | 300,000 | |
Series C Cumulative Preferred Stock | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares outstanding (in shares) | 200,000 | 200,000 | |
Related Party | |||
Related party accounts receivable, net | $ 11.7 | $ 13.8 | |
[1]The assets and liabilities as of March 31, 2024 include $169.8 million (including cash held by consolidated investments of $4.8 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $134.6 million) and $71.7 million (including investment debt of $53.9 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2023 include $154.9 million (including cash held by consolidated investments of $3.6 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $121.8 million) and $101.4 million (including investment debt of $54.9 million), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total revenue | $ 136.4 | $ 132.2 |
(Loss) income from unconsolidated investments | ||
Principal co-investments | 9.7 | 16.4 |
Performance allocations | (16.4) | (10.7) |
Total (loss) income from unconsolidated investments | (6.7) | 5.7 |
Gain on sale of real estate, net | 106.4 | 19.2 |
Expenses | ||
Performance allocation compensation | (5.5) | 1.6 |
General and administrative | 8.3 | 8.4 |
Depreciation and amortization | 38.9 | 39.4 |
Total expenses | 114.1 | 124.5 |
Interest expense | (64.7) | (62.3) |
Gain on early extinguishment of debt | 0.3 | 0.1 |
Other income (loss) | 6.8 | (3) |
Income (loss) before (provision for) benefit from income taxes | 64.4 | (32.6) |
(Provision for) benefit from income taxes | (26.7) | 3.9 |
Net income (loss) | 37.7 | (28.7) |
Net loss (income) attributable to the noncontrolling interests | 0.1 | (4.2) |
Preferred dividends | (10.9) | (7.9) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 26.9 | $ (40.8) |
Basic earnings (loss) per share | ||
Earnings (loss) per share (in dollars per share) | $ 0.19 | $ (0.30) |
Weighted average shares outstanding (in shares) | 138,472,579 | 137,949,018 |
Diluted earnings (loss) per share | ||
Earnings (loss) per share (in dollars per share) | $ 0.19 | $ (0.30) |
Weighted average shares outstanding (in shares) | 138,628,139 | 137,949,018 |
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.24 |
Rental | ||
Revenue | ||
Total revenue | $ 97.4 | $ 106.6 |
Expenses | ||
Cost of goods and services | 37.2 | 36.6 |
Hotel | ||
Revenue | ||
Total revenue | 9.3 | 10.6 |
Expenses | ||
Cost of goods and services | 7.6 | 7.9 |
Investment Management And Property Services Fees | ||
Revenue | ||
Total revenue | 21.3 | 11 |
Loan | ||
Revenue | ||
Total revenue | 8.1 | 3.7 |
Other | ||
Revenue | ||
Total revenue | 0.3 | 0.3 |
Compensation and related | ||
Expenses | ||
Cost of goods and services | $ 27.6 | $ 30.6 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related party investment management fees | $ 136.4 | $ 132.2 |
Share-based compensation related to compensation and related expenses | 5.2 | 7.1 |
Investment Management Fees, Related Party | ||
Related party investment management fees | $ 14.4 | $ 11 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 37.7 | $ (28.7) |
Other comprehensive (loss) income, net of tax: | ||
Unrealized foreign currency translation (loss) gain | (17.5) | 14.1 |
Amounts reclassified from AOCI | 5.1 | 0 |
Unrealized foreign currency derivative contracts gain (loss) | 9.9 | (1.2) |
Total other comprehensive (loss) income for the period | (2.5) | 12.9 |
Comprehensive income (loss) | 35.2 | (15.8) |
Comprehensive loss (income) attributable to noncontrolling interests | 0.1 | (5) |
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc. | $ 35.3 | $ (20.8) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Common Stock | Common Stock Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at beginning of period, preferred stock (in shares) at Dec. 31, 2022 | 600,000 | |||||||||
Balance at beginning of period at Dec. 31, 2022 | $ 2,010.4 | $ 592.5 | $ 0 | $ 1,679.5 | $ 122.1 | $ (430.1) | $ 46.4 | |||
Balance at beginning of period, common stock (in shares) at Dec. 31, 2022 | 137,790,768 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock issuance, net of issuance costs (in shares) | 1,644,144 | |||||||||
Stock issuance, net of issuance costs | $ 29.3 | $ 29.3 | ||||||||
Restricted stock grants (RSG) (in shares) | 955,756 | |||||||||
Shares retired due to RSG vesting (in shares) | (1,046,430) | |||||||||
Shares retired due to RSG vesting | (13.4) | (13.4) | ||||||||
Shares retired due to common stock repurchase program (in shares) | 0 | |||||||||
Share-based compensation | 7.1 | 7.1 | ||||||||
Other comprehensive income (loss): | ||||||||||
Unrealized foreign currency translation gain, net of tax | 14.1 | 13.3 | 0.8 | |||||||
Unrealized foreign currency derivative contract gain (loss), net of tax | (1.2) | (1.2) | ||||||||
Common stock dividends | (33.4) | (33.4) | ||||||||
Preferred stock dividends | (7.9) | (7.9) | ||||||||
Net income (loss) | (28.7) | (32.9) | 4.2 | |||||||
Contributions from noncontrolling interests | 0.1 | 0.1 | ||||||||
Distributions to noncontrolling interests | (5) | (5) | ||||||||
Balance at end of period, preferred stock (in shares) at Mar. 31, 2023 | 600,000 | |||||||||
Balance at end of period at Mar. 31, 2023 | 1,971.4 | $ 592.5 | $ 0 | 1,702.5 | 47.9 | (418) | 46.5 | |||
Balance at end of period, common stock (in shares) at Mar. 31, 2023 | 139,344,238 | |||||||||
Balance at beginning of period, preferred stock (in shares) at Dec. 31, 2023 | 800,000 | |||||||||
Balance at beginning of period at Dec. 31, 2023 | $ 1,798.4 | $ 789.9 | $ 0 | 1,718.6 | (349) | (404.4) | 43.3 | |||
Balance at beginning of period, common stock (in shares) at Dec. 31, 2023 | 138,727,521 | 138,727,521 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock issuance, net of issuance costs | $ (0.1) | (0.1) | ||||||||
Restricted stock grants (RSG) (in shares) | 379,188 | |||||||||
Shares retired due to RSG vesting (in shares) | (129,011) | |||||||||
Shares retired due to RSG vesting | (1.6) | (1.6) | ||||||||
Shares retired due to common stock repurchase program (in shares) | (882,454) | |||||||||
Shares retired due to common stock repurchase program | (7.5) | $ (7.5) | (15.6) | 8.1 | ||||||
Share-based compensation | 5.2 | 5.2 | ||||||||
Other comprehensive income (loss): | ||||||||||
Unrealized foreign currency translation gain, net of tax | (12.1) | (12) | (0.1) | |||||||
Unrealized foreign currency derivative contract gain (loss), net of tax | 9.7 | 9.7 | ||||||||
Common stock dividends | (33.1) | (33.1) | ||||||||
Preferred stock dividends | (10.9) | (10.9) | ||||||||
Net income (loss) | 37.7 | 37.8 | (0.1) | |||||||
Distributions to noncontrolling interests | (0.8) | (0.8) | ||||||||
Balance at end of period, preferred stock (in shares) at Mar. 31, 2024 | 800,000 | |||||||||
Balance at end of period at Mar. 31, 2024 | $ 1,784.9 | $ 789.9 | $ 0 | $ 1,706.5 | $ (347.1) | $ (406.7) | $ 42.3 | |||
Balance at end of period, common stock (in shares) at Mar. 31, 2024 | 138,095,244 | 138,095,244 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 37,700,000 | $ (28,700,000) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Gain on sale of real estate, net | (106,400,000) | (19,200,000) | |
Depreciation and amortization | 38,900,000 | 39,400,000 | |
Above/below market and straight-line rent amortization | 400,000 | (2,400,000) | |
Uncollectible lease income | 700,000 | 1,800,000 | |
Accretion of discount on loans receivable | (1,100,000) | 0 | |
Provision for credit losses | 5,600,000 | 0 | |
Provision for (benefit from) deferred income taxes | 13,600,000 | (6,200,000) | |
Amortization of deferred loan costs | 2,200,000 | 2,100,000 | |
Amortization of discount and accretion of premium on senior notes and mortgage debt | (2,700,000) | 1,300,000 | |
Unrealized net loss on derivatives | 2,100,000 | 2,400,000 | |
Loss (income) from unconsolidated investments | 6,700,000 | (5,700,000) | |
Operating distributions from unconsolidated investments | 14,000,000 | 19,100,000 | |
Deferred compensation | (3,700,000) | 5,300,000 | |
Share-based compensation | 5,200,000 | 7,100,000 | |
Change in assets and liabilities: | |||
Accounts receivable | 13,700,000 | (3,000,000) | |
Other assets | (1,400,000) | (5,000,000) | |
Accounts payable, accrued expenses and other liabilities | (31,100,000) | (75,300,000) | |
Net cash used in operating activities | (5,600,000) | (67,000,000) | |
Cash flows from investing activities: | |||
Proceeds from collection of loans receivable | 2,800,000 | 2,100,000 | |
Issuance and acquisition of loans receivable, net of discounts | (9,500,000) | (3,500,000) | |
Net proceeds from sale of consolidated real estate | 328,200,000 | 111,900,000 | |
Capital expenditures to real estate | (51,500,000) | (39,200,000) | |
Proceeds from on settlement of derivative contracts | 300,000 | 700,000 | |
Distributions from unconsolidated investments | 2,700,000 | 15,200,000 | |
Contributions to unconsolidated investments | (28,200,000) | (50,300,000) | |
Net cash provided by investing activities | 244,800,000 | 36,900,000 | |
Cash flows from financing activities: | |||
Borrowings under line of credit | 100,000,000 | 25,000,000 | |
Repayment of line of credit | 0 | (60,000,000) | |
Borrowings under mortgage debt | 73,400,000 | 310,100,000 | |
Repayment of mortgage debt | (127,800,000) | (302,700,000) | |
Payment of deferred loan costs | (400,000) | (900,000) | |
Repurchase and retirement of common stock | (9,100,000) | (13,400,000) | |
Proceeds from issuance of common stock, net of issuance costs | (100,000) | 29,300,000 | |
Common dividends paid | (34,100,000) | (35,600,000) | |
Preferred dividends paid | (10,900,000) | (7,900,000) | |
Contributions from noncontrolling interests | 0 | 100,000 | |
Distributions to noncontrolling interests | (800,000) | (5,000,000) | |
Net cash used in financing activities | (9,800,000) | (61,000,000) | |
Effect of currency exchange rate changes on cash and cash equivalents | (1,200,000) | 1,100,000 | |
Net change in cash and cash equivalents | [1] | 228,200,000 | (90,000,000) |
Cash and cash equivalents, beginning of period | 313,700,000 | 439,300,000 | |
Cash and cash equivalents, end of period | 541,900,000 | 349,300,000 | |
Supplemental cash flow information: | |||
Interest | [2],[3] | 80,900,000 | 78,300,000 |
Income taxes | 1,100,000 | 8,400,000 | |
Cash received from consolidated and unconsolidated asset sales and loan repayments, net | 244,400,000 | 102,000,000 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrued capital expenditures | 5,000,000 | 6,900,000 | |
Common dividends declared but not paid on common stock | 33,100,000 | 33,400,000 | |
Preferred dividends declared but not paid on preferred stock | $ 9,200,000 | $ 6,700,000 | |
[1] See discussion of non-cash effects in the supplemental cash flow information. $0.3 million and $0.7 million attributable to noncontrolling interests for the three months ended March 31, 2024 and 2023, respectively. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Interest attributable to noncontrolling interest | $ 0.3 | $ 0.7 | |
Interest, capitalized | 1.3 | $ 1.1 | |
Debt Redemption | |||
Restricted cash | $ 104.6 | $ 69.6 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Kennedy-Wilson Holdings, Inc. (“KWH,” NYSE: KW), a Delaware corporation and its wholly owned and consolidated subsidiaries (collectively the "Company" or "Kennedy Wilson"), is a global real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company primarily focuses on multifamily and office properties, as well as industrial and debt investments in its Investment Management business in the Western United States, United Kingdom and Ireland. The Company also has a global debt platform primarily focused on construction lending secured by high-quality multifamily and student housing properties throughout the United States. The Company's operations are defined by two business segments; its Consolidated Portfolio and Co-Investment Portfolio. Investment activities in the Consolidated Portfolio involve ownership of real estate assets (primarily multifamily units). The Co-Investment Portfolio consists of (i) the co-investments in real estate and real estate-related assets, including loans secured by real estate, that we have made through the commingled funds and separate accounts that we manage; (ii) fees (including, without limitation, asset management fees, construction management fees, and/or acquisition and disposition fees); and (iii) performance allocations or carried interest that we earn on the Company's co-invested capital. Kennedy Wilson's unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") may have been condensed or omitted pursuant to SEC rules and regulations, although the Company believes that the disclosures are adequate to make their presentation not misleading. In the Company's opinion, all adjustments, consisting of only normal and recurring items, necessary for a fair presentation of the results of operations for the three months ended March 31, 2024 and 2023 have been included. The results of operations for these periods are not necessarily indicative of results that might be expected for the full year ending December 31, 2024. For further information, your attention is directed to the footnote disclosures found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Throughout these unaudited interim consolidated financial statements “Kennedy Wilson” is referenced, which is defined as the Company and its subsidiaries that are consolidated in its financial statements under U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation. In addition, throughout these unaudited interim consolidated financial statements, “equity partners” is referred to, which is defined as both the non-wholly owned subsidiaries that are consolidated in the Company's financial statements under U.S. GAAP and third-party equity partners. Kennedy Wilson evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") as defined in the Accounting Standards Codification ("ASC") Subtopic 810-10, Consolidation , as amended by Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis , and to assess whether it is the primary beneficiary of such entities. If the determination is made that Kennedy Wilson is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with the ASC Subtopic 810-10. |
Summary of Significant Accounti
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS REVENUE RECOGNITION — Revenue consists of rental and hotel income, management fees, leasing and commission fees, loan interest income and sales of real estate. ASC Topic 606, Revenue from Contracts with Customers , is a five step model to recognize revenue from customer contracts. The model identifies the contract, any separate performance obligations in the contract, determines the transaction price, allocates the transaction price and recognizes revenue when the performance obligations are satisfied. Management has concluded that, with the exception of performance allocations and loan interest income, the nature of the Company's revenue streams is such that the requirements are generally satisfied at the time that the fee becomes receivable. Rental income from operating leases is generally recognized on a straight-line basis over the terms of the leases in accordance with ASC Topic 842, Leases . Hotel income is earned when rooms are occupied or goods and services have been delivered or rendered. Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property. Investment management fees are earned from limited partners of funds, co-investments, or separate accounts and are generally based on a fixed percentage of committed capital or net asset value. The Company provides investment management on investments it also has an ownership interest in. Fees earned on consolidated properties are eliminated in consolidation and fees on unconsolidated investments are eliminated for the portion that relate to the Company's ownership interest. Investment management fees include acquisition, arrangement and disposition fees. Acquisition, arrangement and disposition fees are earned for identifying and closing investments on behalf of investors and are based on a fixed percentage of the acquisition or disposition price, as applicable. Acquisition and disposition fees are recognized upon the successful completion of an acquisition or disposition after all required services have been performed. The Company typically earns origination fees on loan originations in its debt platform business. The fees are earned when the loan closes and are recorded as part of investment management fees for the portion of the loan that the Company does not have an ownership interest in which is typically 95% to 97.5%. The remaining portion of the fee is deferred and accreted over the expected loan term through interest income. Loan income from investments in performing loans which Kennedy Wilson originates or acquires are recognized at the stated interest rate plus any amortization of premiums/discounts or fees earned on the loans. Interest income from investments in loans acquired at a discount are recognized using the effective interest method. When a loan or loans are acquired with deteriorated credit quality primarily for the rewards of collateral ownership, such loans are accounted for as loans until Kennedy Wilson is in possession of the collateral. However, accrual of income is not recorded during the conversion period under ASC Subtopic 310-30-25, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality . Income is recognized to the extent that cash is received from the loan. The Company has evaluated its loan portfolio under ASC Subtopic 326, Financial Instruments – Credit Losses for current expected credit losses ("CECL") reserves. CECL reserves reflect the Company's current estimate of potential credit losses related to loans included in the Company's consolidated balance sheets. Changes to the CECL reserve are recognized through interest income on the Company's consolidated statements of operations. While ASC Subtopic 326 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions. Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property. Under ASC Subtopic 610-20 , Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, the Company recognizes the entire gain attributed to contributions of real estate properties to unconsolidated entities. Property services fees are earned from the Company's auction sales and marketing business and are recorded as part of the Other revenue line item on the Company's statement of operations. In the case of auction and real estate sales commissions, the revenue is generally recognized when escrow closes. In accordance with the guidelines established for Reporting Revenue Gross as a Principal versus Net as an Agent in ASC Topic 606, Kennedy Wilson records commission revenues and expenses on a gross basis. Of the criteria listed in ASC Topic 606, Kennedy Wilson is the primary obligor in the transaction, does not have inventory risk, performs all or part of the service and has wide latitude in establishing the price of services rendered and discretion in selection of agents and determination of service specifications. REAL ESTATE ACQUISITIONS—The purchase price of acquired properties is recorded to land, buildings and building improvements and intangible lease value (value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any). The ownership of the other interest holders in consolidated subsidiaries is reflected as noncontrolling interests. Real estate is recorded based on cumulative costs incurred and allocated based on relative fair value. Acquisition fees and expenses associated with the acquisition of properties determined to be business combinations are expensed as incurred. Acquisition fees and expenses associated with transactions determined to be asset acquisitions are capitalized as part of the real estate acquired. The valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate is valued, in part, based on third party valuations and management estimates also using an income approach. UNCONSOLIDATED INVESTMENTS — Kennedy Wilson has a number of joint venture interests that were formed to acquire, manage, and/or sell real estate or real estate related investments. Investments in unconsolidated investments are accounted for under the equity method of accounting as Kennedy Wilson can exercise significant influence, but does not have the ability to control the unconsolidated investment. An investment in an unconsolidated investment is recorded at its initial investment and is increased or decreased by Kennedy Wilson’s share of income or loss, contributions, distributions and foreign currency movements. A decline in the value of an unconsolidated investment that is other than temporary is recognized when evidence indicates that such a decline has occurred in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures . Kennedy Wilson elected the fair value option for 72 investments in unconsolidated investment entities ("FV Option" investments). Due to the nature of these investments, Kennedy Wilson elected to record these investments at fair value in order to report the change in value in the underlying investments in the results of our current operations. Additionally, Kennedy Wilson records its investments in commingled funds it manages and sponsors (the "Funds") that are investment companies under ASC Topic 946, Financial Services - Investment Companies , based upon the net assets that would be allocated to its interests in the Funds assuming the Funds were to liquidate their investments at fair value as of the reporting date. Thus, the Funds reflect their investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in their earnings. Performance allocations or carried interest are allocated to the general partner, special limited partner or asset manager of Kennedy Wilson's real estate funds based on the cumulative performance of the fund and are subject to preferred return thresholds of the limited partners. At the end of each reporting period, Kennedy Wilson calculates the performance allocation that would be due as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as performance allocation to reflect either (a) positive performance resulting in an increase in the performance allocation to the general partner or asset manager or (b) negative performance that would cause the amount due to Kennedy Wilson to be less than the amount previously recorded as income from unconsolidated investments, resulting in a negative adjustment to performance allocations to the general partner or asset manager. As of March 31, 2024, the Company has $60.9 million of accrued performance allocations recorded to unconsolidated investments that are subject to future adjustments based on the underlying performance of investments. The Company has concluded that performance allocations to the Company from equity method investments, based on cumulative performance to-date, represent carried interests. Consequently, in following the guidance set forth in ASC Topic 606 and ASC Topic 323, these allocations are included as a component of the total income from unconsolidated investments in the accompanying consolidated statements of income. Performance allocation compensation is recorded in the same period that the related performance allocations are recorded and can be reversed during periods when there is a reversal of performance allocations that were previously recorded. As of March 31, 2024 and December 31, 2023, the Company has $17.1 million and $22.8 million of accrued performance allocation compensation recorded to accrued expenses and other liabilities that are subject to future adjustments based on the underlying performance of investments. FAIR VALUE MEASUREMENTS — Kennedy Wilson accounts for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recorded or disclosed at fair value in the financial statements on a recurring basis under the provisions of ASC Topic 820, Fair Value Measurement . ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When estimating fair value in the absence of an orderly transaction between market participants, valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate and the investments in debt securities are valued, in part, based on third party valuations and management estimates also using an income approach. The use of different market assumptions or estimation methodologies may have a material impact on the estimated fair value amounts. FAIR VALUE OF FINANCIAL INSTRUMENTS — The estimated fair value of financial instruments is determined using available market information and appropriate valuation methodologies. Considerable judgment, is necessary, however, to interpret market data and develop the related estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material impact on the estimated fair value amounts. FOREIGN CURRENCIES — The financial statements of Kennedy Wilson's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The foreign currencies include the euro and the British pound sterling. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income. Investment level debt is generally incurred in local currencies. Fluctuations in foreign exchanges rates may have a significant impact on the results of the Company's operations. In order to manage currency fluctuations, Kennedy Wilson entered into currency derivative contracts to manage its exposure to currency fluctuations between its functional currency (U.S. dollar) and the functional currency (euro and the British pound) of certain of its wholly-owned and consolidated subsidiaries. KWE has also entered into currency derivative contracts to manage its exposure to euro to British pound currency fluctuations. See Note 5 for a more detailed discussion of Kennedy Wilson's currency derivative contracts. LONG-LIVED ASSETS — Kennedy Wilson reviews its long-lived assets (excluding goodwill) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Subtopic 360-10, Property, Plant and Equipment . Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. If certain criteria are met, assets to be disposed of are presented separately in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The assets and liabilities of the assets to be disposed of are classified as held for sale and would be presented separately in the appropriate asset and liability sections of the balance sheet. RECENT ACCOUNTING PRONOUNCEMENTS For information regarding accounting standards that the Company adopted during the periods presented, see note 2 of the notes to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The Company did not adopt any new accounting standards during the three months ended March 31, 2024. The FASB did not issue any other ASUs during the first three months of 2024 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations. |
Real Estate and In-Place Lease
Real Estate and In-Place Lease Value | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
REAL ESTATE AND IN-PLACE LEASE VALUE | REAL ESTATE AND IN-PLACE LEASE VALUE The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at March 31, 2024 and December 31, 2023: March 31, December 31, (Dollars in millions) 2024 2023 Land $ 1,273.9 $ 1,328.3 Buildings 3,503.2 3,679.1 Building improvements 478.7 511.3 In-place lease values 253.7 276.4 5,509.5 5,795.1 Less accumulated depreciation and amortization (906.0) (957.8) Real estate and acquired in place lease values, net of accumulated depreciation and amortization $ 4,603.5 $ 4,837.3 Real property, including land, buildings, and building improvements are included in real estate and are generally stated at cost. Buildings and building improvements are depreciated on a straight-line method over their estimated lives not to exceed 40 years. Acquired in-place lease values are recorded at their estimated fair value and depreciated over their respective weighted-average lease term which was 7.1 years at March 31, 2024. Consolidated Acquisitions The purchase of property is recorded to land, buildings, building improvements, and intangible lease value (including the value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated relative fair values. The purchase price generally approximates the fair value of the properties as acquisitions are transacted with willing third-party sellers. During the three months ended March 31, 2024, Kennedy Wilson did not acquire any consolidated properties. Gain on Sale of Real Estate, Net During the three months ended March 31, 2024, Kennedy Wilson recognized gains on sale of real estate, net of $106.4 million. These gains were primarily due to (i) the Company's sale of the Shelbourne hotel located in Dublin, Ireland, resulting in a gain of $99.1 million; (ii) the sale of a building that is a part of a larger office park resulting 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 $14.3 million relating to non-core office and retail buildings in the United Kingdom and Spain that were marketed for sale during such period. During the three months ended March 31, 2023, Kennedy Wilson recognized gains on sale of real estate, net of $19.2 million from the sale of one non-core retail asset in Southern California, six non-core retail assets in the United Kingdom, one residential asset in Hawaii, and one non-core Ireland office asset. The gains on sale of real estate, net include an impairment loss of $6.2 million relating to non-core retail buildings in the United Kingdom and a non-core retail property in the Western United States that are being marketed for sale. Leases The Company leases its operating properties to customers under agreements that are classified as operating leases. The total minimum lease payments provided for under the leases are recognized on a straight-line basis over the lease term unless circumstances indicate revenue should be recognized on a cash basis. The majority of the Company's rental expenses, including common area maintenance and real estate taxes and insurance on commercial properties, are recovered from the Company's tenants. The Company records amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. The reimbursements are recognized in rental income in the consolidated statements of operations as the Company is the primary obligor with respect to purchasing and selecting goods and services from third-party vendors and bearing the associated credit risk. The following table summarizes the minimum lease payments due from the Company's customers on leases with lease periods greater than one year at March 31, 2024: (Dollars in millions) Minimum Rental Revenues (1) 2024 (remainder) $ 81.3 2025 104.0 2026 101.6 2027 84.9 2028 67.9 Thereafter 164.6 Total $ 604.3 (1) These amounts do not reflect future rental revenues from the renewal or replacement of existing leases, rental increases that are not fixed and exclude reimbursements of rental expenses. |
Unconsolidated Investments
Unconsolidated Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED INVESTMENTS | UNCONSOLIDATED INVESTMENTS Kennedy Wilson has a number of joint venture interests including commingled funds and separate accounts, generally ranging from 5% to 50%, that were formed to acquire, manage, develop, service and/or sell real estate. Kennedy Wilson has significant influence over these entities, but not control. Accordingly, these investments are accounted for under the equity method. Joint Venture and Fund Holdings The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of March 31, 2024: (Dollars in millions) Multifamily Commercial Hotel Funds Residential and Other Total Western U.S. $ 817.2 $ 69.3 $ 253.9 $ 84.7 $ 175.6 $ 1,400.7 Ireland 312.6 149.8 — 5.3 — 467.7 United Kingdom — 139.8 — 31.0 20.4 191.2 Total $ 1,129.8 $ 358.9 $ 253.9 $ 121.0 $ 196.0 $ 2,059.6 The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of December 31, 2023: (Dollars in millions) Multifamily Commercial Hotel Funds Residential and Other Total Western U.S. $ 820.9 $ 71.6 $ 253.0 $ 96.2 $ 156.2 $ 1,397.9 Ireland 313.8 158.7 — 5.4 — 477.9 United Kingdom — 139.8 — 31.5 22.0 193.3 Total $ 1,134.7 $ 370.1 $ 253.0 $ 133.1 $ 178.2 $ 2,069.1 During the three months ended March 31, 2024, the change in unconsolidated investments primarily relates to $28.2 million of contributions to new and existing unconsolidated investments primarily for capital calls for development at Kona Village Resort and Cooper's Cross and new commingled fund in the Western United States, $16.7 million of distributions from unconsolidated investments, $6.7 million of losses from unconsolidated investments (which includes fair value movements), and a $14.0 million decrease related to other items, which primarily related to foreign exchange movements. Please see below for additional details. As of March 31, 2024 and December 31, 2023, $1,917.6 million and $1,927.0 million, respectively, of unconsolidated investments were accounted for under fair value. See Note 5 for more detail. Distributions from Joint Ventures The following table details cash distributions by investment type and geographic location for the three months ended March 31, 2024: Multifamily Commercial Funds Residential and Other Total (Dollars in millions) Operating Investing Operating Investing Operating Investing Operating Investing Operating Investing Western U.S. $ 8.7 $ 1.6 $ 1.8 $ — $ — $ — $ 0.2 $ 1.1 $ 10.7 $ 2.7 Ireland 2.0 — 0.9 — — — — — 2.9 — United Kingdom — — — — — — 0.4 — 0.4 — Total $ 10.7 $ 1.6 $ 2.7 $ — $ — $ — $ 0.6 $ 1.1 $ 14.0 $ 2.7 Operating distributions resulted from operating cash flow generated by the joint venture investments that have been distributed to the Company. Investing distributions related to conversions of VHH properties from development to operating and the redemption of an interest in a hedge fund investment. (Loss) Income from Unconsolidated Investments The following table presents (loss) income from unconsolidated investments recorded by Kennedy Wilson during the three and three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions) 2024 2023 Income from unconsolidated investments - operating performance $ 7.8 $ 14.0 Income from unconsolidated investments - fair value 1.9 2.4 Loss from unconsolidated investments - performance allocations (16.4) (10.7) $ (6.7) $ 5.7 During the three months ended March 31, 2024 , the Company recorded fair value increases from non-cash fair value gains relating to the completion of a merger by the entity that holds the Company's ownership interest in Zonda. Zonda is a technology based real estate business that offers residential construction data providing insights and solutions for leaders in the home building industry. This fair value gain was offset by non-cash fair value losses on: (i) office properties in Western United States, Ireland and United Kingdom due to cap rate expansion and (ii) non-cash fair value losses on mortgage debt as previous non-cash fair value gains unwind as loans move closer to their respective maturity dates. During the three months ended March 31, 2024 , the Company recorded a $16.4 million decrease in the accrual for performance allocations primarily related to the fair value decreases that we recorded with respect to office properties in one of our Western United States commingled funds as described above. During the three months ended March 31, 2023, we recorded fair value increases with respect to: (i) recorded fair value increases with respect to our investment in Vintage Housing Holdings ("VHH") (our affordable rate multifamily platform) due to gains on the conversion of the status of one of VHH’s largest properties from development to operating and gains associated with the conversion of the loan secured by such property from a floating rate construction loan to a long-term fixed rate mortgage (the rate of which was set in 2019); (ii) recorded fair value increases on certain of our development projects located in Dublin, Ireland as we are near completion in such projects; and (iii) foreign exchange movements, net of any foreign exchange hedges as the euro and pound sterling strengthened against the dollar. These fair value increases were offset by (i) certain office properties in one of our existing commingled funds due to cap rate expansion, which also led to us recording a decrease of the accrued performance allocations with respect to such fund as discussed below; (ii) certain market rate multifamily properties in the Western United States and Ireland and our European industrial assets because of increased interest rates leading to cap rate expansion; (iii) certain secured mortgage debt and interest rate derivatives due to a slight decline in the equivalent fixed rates and time decay in the current period. During the three months ended March 31, 2023, we recorded a $10.7 million decrease in the accrual for performance allocations primarily related to the fair value decreases that we recorded with respect to one of our commingled funds as described above. These decreases were offset by an increase in performance allocations on our European commingled fund due to the increase in value associated with an investment held by such fund. There is no performance allocation structure that we benefit from with respect to our investment in VHH. Vintage Housing Holdings As of March 31, 2024 and December 31, 2023, the carrying value of the Company's investment in VHH was $285.0 million and $285.9 million, respectively. For the three months ended March 31, 2024 VHH had distributions of $3.8 million and equity income pickup of $3.2 million which, included $0.7 million relating to fair value adjustments. Capital Commitments |
Fair Value Measurements and the
Fair Value Measurements and the Fair Value Option | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION | FAIR VALUE MEASUREMENTS AND THE FAIR VALUE OPTION The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of March 31, 2024: (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 1,917.6 $ 1,917.6 Net currency derivative contracts — (13.1) — (13.1) Total $ — $ (13.1) $ 1,917.6 $ 1,904.5 The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2023: (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 1,927.0 $ 1,927.0 Net currency derivative contracts — (23.7) — (23.7) Total $ — $ (23.7) $ 1,927.0 $ 1,903.3 Unconsolidated Investments Kennedy Wilson elected to use the fair value option for 72 unconsolidated investments to more accurately reflect the timing of the value created in the underlying investments and report those results in current operations. Kennedy Wilson's investment balance in the FV Option investments was $1,803.0 million and $1,793.9 million at March 31, 2024 and December 31, 2023, respectively, which is included in unconsolidated investments in the accompanying balance sheets. Additionally, Kennedy Wilson records its investments in the Funds based upon the net assets that would be allocated to its interests in the Funds, assuming the Funds were to liquidate their investments at fair value as of the reporting date. Kennedy Wilson’s investment balance in the Funds was $114.6 million and $133.1 million at March 31, 2024 and December 31, 2023, respectively, which is included in unconsolidated investments on the accompanying consolidated balance sheets. See Note 4 for more information on the fluctuations for these investments. In estimating fair value of real estate held by the Funds and the 72 FV Option investments, the Company considers significant unobservable inputs to be the capitalization and discount rates. The following table presents changes in Level 3 investments in Funds and FV Options for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions) 2024 2023 Beginning balance $ 1,927.0 $ 2,093.7 Unrealized and realized gains 39.4 56.6 Unrealized and realized losses (51.0) (56.4) Contributions 27.9 50.7 Distributions (13.0) (30.1) Foreign exchange (12.0) 11.3 Other (0.7) (0.3) Ending balance $ 1,917.6 $ 2,125.5 Unobservable Inputs for Real Estate The Company accounts for a number of unconsolidated investments under fair value, the accuracy of estimating fair value cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets and may not be realized in a current sale or immediate settlement of the asset or liability. Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including market-derived estimated capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts. All valuations of real estate involve subjective judgments. Ongoing macroeconomic conditions, such as, but not limited to, elevated levels of inflation and interest rates, banks' ability and willingness to lend, recent adverse developments affecting regional banks and other financial institutions, currency fluctuations and the ongoing military conflicts around the world, continue to fuel recessionary fears and create volatility in our business results and operations. Any prolonged downturn in the financial markets or a recession, either globally or locally in the United States or in other countries in which we conduct business, could impact the fair value of investments held by the Company. As a result of the rapid development, fluidity and uncertainty surrounding these situations, the Company expects that information with respect to fair value measurement may change, potentially significantly, going forward and may not be indicative of the actual impact on our business, operations, cash flows and financial condition for the three months ended March 31, 2024 and future periods. In determining estimated fair market values, the Company utilizes two approaches to value real estate, a discounted cash flow analysis and direct capitalization approach. Discounted cash flow models estimate future cash flows from a buyer's perspective (including terminal values) and compute a present value using a market discount rate. The holding period in the analysis is typically ten years. This is consistent with how market participants often estimate values in connection with buying real estate but these holding periods can be shorter depending on the life of the structure an investment is held within. The cash flows include a projection of the net sales proceeds at the end of the holding period, computed using a market reversionary capitalization rate. Under the direct capitalization approach, the Company applies a market derived capitalization rate to current and future income streams with appropriate adjustments for tenant vacancies or rent-free periods. These capitalization rates and future income streams are derived from comparable property and leasing transactions and are considered to be key inputs in the valuation. Other factors that are taken into consideration include tenancy details, planning, building and environmental factors that might affect the property. The Company also utilizes valuations from independent real estate appraisal firms on some of its investments ("appraised valuations"), with certain investment structures requiring appraised valuations periodically (typically annually). All appraised valuations are reviewed and approved by the Company. The table below describes the range of unobservable inputs for real estate assets as of March 31, 2024: Estimated Rates Used for Capitalization Rates Discount Rates Multifamily Income approach - discounted cash flow 5.00% —7.20% 6.50% — 9.70% Income approach - direct capitalization 4.30% — 5.80% N/A Office Income approach - discounted cash flow 5.20% — 7.50% 7.30% — 9.30% Income approach - direct capitalization 4.50% — 9.30% N/A Industrial Income approach - discounted cash flow 5.00% — 6.30% 6.30% — 7.80% Income approach - direct capitalization 4.00% — 9.00% N/A Retail Income approach - discounted cash flow 6.50% 8.30% Hotel Income approach - discounted cash flow 6.00% 8.30% In valuing indebtedness, the Company considers significant inputs such as the term of the debt, value of collateral, credit quality of investment entities and market interest rates and spreads as well as market loan-to-value ratios relative to the Company's debt instruments. The credit spreads used by Kennedy Wilson to value floating rate indebtedness range from 2.00% to 4.60%, while the market rates used to value fixed rate indebtedness range from 4.6% to 9.3%. There is no active secondary market for the Company's development projects and no readily available market value given the uncertainty of the amount and timing of future cash flows. Accordingly, its determination of fair value of its development projects requires judgment and extensive use of estimates. Therefore, the Company typically uses investment cost as the estimated fair value until future cash flows become more predictable. Additionally, the fair value of its development projects may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. If the Company were required to liquidate an investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations. Currency Derivative Contracts Kennedy Wilson uses foreign currency derivative contracts such as forward contracts and options to manage its foreign currency risk exposure against the effects of a portion of its certain non-U.S. dollar denominated currency net investments. Foreign currency options are valued using a variant of the Black-Scholes model tailored for currency derivatives and the foreign currency forward contracts are valued based on the difference between the contract rate and the forward rate at maturity of the underlying currency applied to the notional value in the underlying currency discounted at a market rate for similar risks. Although the Company has determined that the majority of the inputs used to value its currency derivative contracts fall within Level 2 of the fair value hierarchy, the counterparty risk adjustments associated with the currency derivative contracts utilize Level 3 inputs. However, as of March 31, 2024, Kennedy Wilson assessed the significance of the impact of the counterparty valuation adjustments on the overall valuation of its derivative positions and determined that the counterparty valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Company has determined that its derivative valuation in its entirety be classified in Level 2 of the fair value hierarchy. Changes in fair value are recorded in other comprehensive income (loss) on the accompanying consolidated statements of comprehensive income as the portion of the currency forward and option contracts used to hedge currency exposure of its certain consolidated subsidiaries qualifies as a net investment hedge under ASC Topic 815, Derivatives and Hedging . Changes in fair value on hedges associated with investments that are held at fair value are recorded through principal co-investments within income from unconsolidated investments. The Company has elected to amortize the spot to forward difference ("forward points") to interest expense over the contractual life of the hedges. On hedges associated with fair value investments the forward point amortization to interest expense is recorded as a component of principal co-investments. The fair value of the currency derivative contracts held as of March 31, 2024 and December 31, 2023 are reported in other assets for hedge assets and included in accrued expenses and other liabilities for hedge liabilities on the accompanying consolidated balance sheets. The table below details the currency derivative contracts Kennedy Wilson held as of March 31, 2024 and the activity during the three months ended March 31, 2024. (Dollars, Euros and British Pound Sterling in millions) March 31, 2024 Three Months Ended March 31, 2024 Currency Hedged Underlying Currency Notional Hedge Assets Hedge Liabilities OCI Gains (Losses) Income Statement Gains Interest Expense Cash Received Outstanding EUR USD € 287.5 $ 4.4 $ (12.9) $ 0.2 $ 6.0 $ 1.1 $ — EUR (1) GBP € 40.0 — (1.2) (0.8) — — — EUR (1)(2) GBP € 475.0 — — 7.8 — — — GBP USD £ 475.0 11.3 (14.7) 3.7 0.5 0.4 — Total Outstanding 15.7 (28.8) 10.9 6.5 1.5 — Settled GBP USD — — (0.2) — 0.1 0.3 Total Settled — — (0.2) — 0.1 0.3 Total $ 15.7 $ (28.8) $ 10.7 (3) $ 6.5 $ 1.6 $ 0.3 (1) Hedge is held by KWE on its wholly-owned subsidiaries. (2) Relates to KWE's Euro Medium Term Note. See discussion in Note 10. (3) Excludes deferred tax expense of $0.8 million relating to activity for the three months ended March 31, 2024. Also excludes $0.7 million of hedge gains and $0.6 million of deferred tax expense that were reclassified out of other comprehensive income. The gains recorded through other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying investments that they were hedging are substantially liquidated by Kennedy Wilson. During the three months ended March 31, 2024, the Company reclassified a loss of $8.7 million from other comprehensive income to gain on sale of real estate relating to the sale of the Shelbourne hotel which consisted of $9.5 million loss associated with foreign currency translation adjustments and a $0.8 million gain on hedges that had been previously recognized to other comprehensive income. The currency derivative contracts discussed above are offset by foreign currency translation of the Company's foreign net assets. For the three months ended March 31, 2024, Kennedy Wilson had a gross foreign currency translation loss on its net assets of $17.4 million. As of March 31, 2024, the Company has hedged 96% of the net asset carrying value of its euro denominated investments and 93% of the net asset carrying value of its GBP denominated investments. See Note 11 for a complete discussion on other comprehensive income including currency derivative contracts and foreign currency translations. Interest Rate Swaps and Caps The Company has interest rate swaps and caps to hedge its exposure to rising interest rates. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value gains of $9.7 million for the three months ended March 31, 2024. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $2.3 million gain recorded in principal co-investments. Changes in the value of interest rate swaps and caps that are undesignated are recorded to other income and had fair value losses of $2.9 million for the three months ended March 31, 2023. Some of the Company's unconsolidated investments have interest rate caps, which resulted in a $3.1 million loss through principal co-investments for the three months ended March 31, 2023. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable including related party receivables, accounts payable, accrued expenses and other liabilities, accrued salaries and benefits, and deferred and accrued income taxes approximate fair value due to their short-term maturities. The carrying value of loans (excluding related party loans as they are presumed not to be an arm’s length transaction) approximates fair value as the terms are similar to loans with similar characteristics available in the market. Debt liabilities are accounted for at face value plus net unamortized debt premiums/discounts and any fair value adjustments as part of business combinations. The fair value as of March 31, 2024 and December 31, 2023 for the mortgage debt, Kennedy Wilson unsecured debt, and KWE unsecured bonds were estimated to be approximately $4.8 billion and $4.8 billion, respectively, based on a comparison of the yield that would be required in a current transaction, taking into consideration the risk of the underlying collateral and the Company's credit risk to the current yield of a similar security, compared to their carrying value of $5.3 billion and $5.3 billion at March 31, 2024 and December 31, 2023, respectively. The inputs used to value the Company's mortgage debt, Kennedy Wilson unsecured debt, and KWE unsecured bonds are based on observable inputs for similar assets and quoted prices in markets that are not active and are therefore determined to be Level 2 inputs. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
LOANS | LOANS The global debt platform consists of two groups: our construction lending portfolio, which was established with the acquisition of pool of construction loans from Pacific Western Bank in the second quarter of 2023 and our bridge loan portfolio. The construction lending portfolio has a current outstanding balance of $2.6 billion (Kennedy Wilson share of $126.0 million), not including the 4.5% discount on gross commitment amounts from the time of purchase. As of March 31, 2024, we had unfulfilled capital commitments totaling $92.2 million to our loan portfolio. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following: (Dollars in millions) March 31, 2024 December 31, 2023 Straight line rent receivable $ 42.8 $ 45.8 Interest rate caps and swaps 27.2 29.0 Goodwill 23.9 23.9 Hedge assets 15.7 13.3 Prepaid expenses 13.6 13.1 Deferred taxes, net 9.3 10.0 Right of use asset, net 8.7 8.9 Leasing commissions, net of accumulated amortization of $12.5 and $13.4 at March 31, 2024 and December 31, 2023, respectively 8.1 9.0 Furniture and equipment net of accumulated depreciation of $21.2 and $30.8 at March 31, 2024 and December 31, 2023, respectively 5.9 7.0 Above-market leases, net of accumulated amortization of $40.6 and $42.4 at March 31, 2024 and December 31, 2023, respectively 2.1 2.5 Other 25.1 25.0 Other Assets $ 182.4 $ 187.5 Right of use asset, net The Company, as a lessee, has three office leases and two ground leases, which qualify as operating leases, with remaining lease terms of 2 to 235 years. The payments associated with office space leases have been discounted using the Company's incremental borrowing rate which is based on collateralized interest rates in the market and risk profile of the associated lease. For ground leases the rate implicit in the lease was used to determine the right of use asset. The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted to calculate the right of use asset and related lease liability for its operating leases in which we are the lessee: (Dollars in millions) Minimum Rental Payments 2024 (remainder) $ 0.8 2025 1.0 2026 1.3 2027 1.4 2028 1.3 Thereafter 30.8 Total undiscounted rental payments 36.6 Less imputed interest (28.0) Right of use asset, net $ 8.6 |
Mortgage Debt
Mortgage Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
MORTGAGE DEBT | MORTGAGE DEBT The following table details mortgage debt secured by Kennedy Wilson's consolidated properties as of March 31, 2024 and December 31, 2023: (Dollars in millions) Carrying amount of mortgage debt as of (1) Mortgage Debt by Product Type Region March 31, 2024 December 31, 2023 Multifamily (1) Western U.S. $ 1,744.4 $ 1,711.0 Commercial (1) United Kingdom 476.2 509.9 Commercial (1) Ireland 329.8 337.8 Commercial Western U.S. 199.0 258.2 Commercial Spain 36.8 37.7 Mortgage debt (excluding loan fees) (1) 2,786.2 2,854.6 Unamortized loan fees (13.1) (13.7) Total Mortgage Debt $ 2,773.1 $ 2,840.9 (1) The mortgage debt balances include unamortized debt discount. Debt discount represents the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized as an increase of interest expense for discounts and a reduction of interest expense for premiums over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan discount as of March 31, 2024 and December 31, 2023 was $1.3 million and $1.0 million, respectively. The Company's mortgage debt had a weighted average interest rate of 5.18% per annum as of March 31, 2024 and 5.10% as of December 31, 2023. Including the impact of the interest rate hedging strategy deployed by the Company through the use of interest rate caps and swaps, the weighted average effective interest rate is 4.5% as of March 31, 2024 and December 31, 2023. Additionally, the Company has recorded fair value movements and interest expense savings as the value of the interest rate caps and swaps have increased with rising interest rates. See Interest Rate Caps and Swaps in Note 5 for more detail. As of March 31, 2024, 64% of Kennedy Wilson's property level debt was fixed rate, 33% was floating rate with interest caps and swaps and 3% was floating rate without interest caps and swaps, compared to 65% of Kennedy Wilson's consolidated property level debt was fixed rate, 35% was floating rate with interest caps and swaps and 0% was floating rate without interest caps and swaps, as of December 31, 2023. The weighted average strike price on caps and maturity of Kennedy Wilson's variable rate mortgage debt is 2.63% and approximately 1.4 years, respectively, as of March 31, 2024. Mortgage Loan Transactions and Maturities During the three months ended March 31, 2024, the Company had one loan that was refinanced with a new loan and had two principal pay downs on debt facilities from proceeds from asset sales. The Company is current on all payments (principal and interest) for its consolidated mortgages. As of March 31, 2024, the Company was in compliance with all of its covenants (financial and otherwise) that are contained in its consolidated mortgages other than with respect to one mortgage loan. The Company was out of compliance with an interest coverage covenant in one of its non-recourse mortgage loans, representing 1% of its total mortgage debt. The Company and Lender have agreed to terms, including, but not limited to, waiving the covenant upon the Company’s funding of approximately $1 million into an interest reserve account. The Company expects to have the waiver finalized during the second quarter of 2024. The aggregate maturities of mortgage loans as of March 31, 2024, including amortization and the effects of any extension options. In certain cases, extension options will only be granted after meeting certain lender loan covenants. (Dollars in millions) Aggregate Maturities 2024 (remainder) (1) $ 79.3 2025 172.0 2026 659.1 2027 349.5 2028 340.3 Thereafter 1,187.3 2,787.5 Unamortized debt discount (1.3) Unamortized loan fees (13.1) Total Mortgage Debt $ 2,773.1 (1) The Company is actively negotiating loan extensions and refinances with lenders on these loans. As of March 31, 2024, except as discussed above, the Company was in compliance with all financial mortgage debt covenants. |
KW Unsecured Debt
KW Unsecured Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
KW UNSECURED DEBT | KW UNSECURED DEBT The following table details KW unsecured debt as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 Credit facility $ 247.9 $ 150.4 Senior notes (1) : 2029 Notes 601.5 601.5 2030 Notes 600.0 600.0 2031 Notes 601.6 601.6 KW unsecured debt 2,051.0 1,953.5 Unamortized loan fees (18.5) (19.2) Total KW Unsecured Debt $ 2,032.5 $ 1,934.3 (1) The senior notes balances include unamortized debt premiums. Debt premiums represent the difference between the fair value of debt and the principal value of debt issued and is amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized debt premium as of March 31, 2024 and December 31, 2023 was $3.1 million and $3.1 million, respectively. Borrowings Under Credit Facilities On March 25, 2020, the Kennedy-Wilson, Inc., a wholly-owned subsidiary of the Company (the "Borrower"), the Company and certain of the Company's subsidiaries entered into that certain Second Amended and Restated Credit Agreement (the "Credit Agreement", and the $500 million revolving line of credit thereunder, the "Second A&R Facility") with Bank of America, N.A., as administrative agent, and the lenders and letter of credit issuers party thereto. On June 12, 2023, the Borrower, the Company, and certain of the Company’s subsidiaries entered into the Second Amendment to the Second A&R Facility (the "Second Amendment"). Pursuant to the terms of the Second Amendment, the LIBOR-based interest rate applicable to borrowings under the Second A&R Facility was replaced with a SOFR-based interest rate, subject to adjustment as specified in the Second Amendment. Loans under the Second A&R Facility bear interest at a rate equal to Daily SOFR or Term SOFR plus an applicable rate between 1.75% and 2.50%, depending on the consolidated leverage ratio as of the applicable measurement date. The Second A&R Facility has a maturity date of September 25, 2024. Subject to certain conditions precedent and at the Borrower's option, the maturity date of the Second A&R Facility may be extended by six months. The Second A&R Facility has certain covenants as set forth in the Credit Agreement 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 Credit Agreement requires 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 1.70 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 $1,700,000,000 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 March 25, 2020, 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 $299,000,000, (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 March 31, 2024, the Company was in compliance with these covenants. As of March 31, 2024, the Second A&R Facility had $247.9 million outstanding with $252.1 million available to be drawn. The Company paid down the Second A&R Facility by $60.0 million in April 2024. The average outstanding borrowings under the Second A&R Facility was $211.3 million during the three months ended March 31, 2024. Senior Notes On February 11, 2021, Kennedy-Wilson, Inc. ("KWI"), as issuer, 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"). 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 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 indentures governing the 2031 notes, 2030 notes, and 2029 notes contain various restrictive covenants, including, among others, limitations on the Company's ability and the ability of certain of the Company's subsidiaries to incur or guarantee additional indebtedness, make restricted payments, pay dividends or make any other distributions from restricted subsidiaries, redeem or repurchase capital stock, sell assets or subsidiary stocks, engage in transactions with affiliates, create or permit liens, enter into sale/leaseback transactions, and enter into consolidations or mergers. The indenture governing the 2031 notes, 2030 notes, and 2029 notes limit the ability of KWI and its restricted subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the new indebtedness, the maximum balance sheet leverage ratio (as defined in the indenture) is greater than 1.50 to 1.00, subject to certain exceptions. As of March 31, 2024, the maximum balance sheet leverage ratio was 1.28 to 1.00. See Note 15 for the guarantor and non-guarantor financial statements. As of March 31, 2024, the Company was in compliance with all financial covenants. The following table details KWE unsecured bonds as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 KWE Euro Medium Term Note Programme (1) $ 511.9 $ 523.3 Unamortized loan fees (0.4) (0.5) Total KWE Unsecured Bonds $ 511.5 $ 522.8 (1) The KWE unsecured bonds balances include unamortized debt discounts. Debt discounts represent the difference between the fair value of debt at issuance and the principal value of debt and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The net unamortized discount as of March 31, 2024 and December 31, 2023 was $0.9 million and $1.0 million, respectively. As of March 31, 2024, KWE has senior unsecured notes for an aggregate principal amount of approximately $512.8 million (based on March 31, 2024 rates) (€475 million) (the "KWE Notes"). The KWE Notes were issued at a discount and have a carrying value of $511.9 million, with an annual fixed coupon of 3.25% and mature in November 2025. As KWE invested proceeds from the KWE Notes to fund equity investments in euro denominated assets, KWE designated the KWE Notes as net investment hedges under ASC Topic 815. Subsequent fluctuations in foreign currency rates that impact the carrying value of the KWE Notes are recorded to accumulated other comprehensive income. During the three months ended March 31, 2024, Kennedy Wilson recorded a gain of $7.0 million in other comprehensive income due to the weakening of the euro against the GBP during the period. The trust deed that governs the bonds contains various restrictive covenants for KWE, including, among others, limitations on KWE’s and its material subsidiaries’ ability to provide certain negative pledges. The trust deed limits the ability of KWE and its subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the incurrence of the new indebtedness, (1) KWE’s consolidated net indebtedness (as defined in the trust deed) would exceed 60% of KWE’s total assets (as calculated pursuant to the terms of the trust deed); and (2) KWE’s consolidated secured indebtedness (as defined in the trust deed) would exceed 50% of KWE’s total assets (as calculated pursuant to the terms of the trust deed). The trust deed also requires KWE, as of each reporting date, to maintain an interest coverage ratio (as defined in the trust deed) of at least 1.50 to 1.00 and have unencumbered assets of no less than 125% of its unsecured indebtedness (as defined in the trust deed). As of March 31, 2024, KWE was in compliance with these covenants. |
KWE Unsecured Bonds
KWE Unsecured Bonds | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
KWE UNSECURED BONDS | KW UNSECURED DEBT The following table details KW unsecured debt as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 Credit facility $ 247.9 $ 150.4 Senior notes (1) : 2029 Notes 601.5 601.5 2030 Notes 600.0 600.0 2031 Notes 601.6 601.6 KW unsecured debt 2,051.0 1,953.5 Unamortized loan fees (18.5) (19.2) Total KW Unsecured Debt $ 2,032.5 $ 1,934.3 (1) The senior notes balances include unamortized debt premiums. Debt premiums represent the difference between the fair value of debt and the principal value of debt issued and is amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized debt premium as of March 31, 2024 and December 31, 2023 was $3.1 million and $3.1 million, respectively. Borrowings Under Credit Facilities On March 25, 2020, the Kennedy-Wilson, Inc., a wholly-owned subsidiary of the Company (the "Borrower"), the Company and certain of the Company's subsidiaries entered into that certain Second Amended and Restated Credit Agreement (the "Credit Agreement", and the $500 million revolving line of credit thereunder, the "Second A&R Facility") with Bank of America, N.A., as administrative agent, and the lenders and letter of credit issuers party thereto. On June 12, 2023, the Borrower, the Company, and certain of the Company’s subsidiaries entered into the Second Amendment to the Second A&R Facility (the "Second Amendment"). Pursuant to the terms of the Second Amendment, the LIBOR-based interest rate applicable to borrowings under the Second A&R Facility was replaced with a SOFR-based interest rate, subject to adjustment as specified in the Second Amendment. Loans under the Second A&R Facility bear interest at a rate equal to Daily SOFR or Term SOFR plus an applicable rate between 1.75% and 2.50%, depending on the consolidated leverage ratio as of the applicable measurement date. The Second A&R Facility has a maturity date of September 25, 2024. Subject to certain conditions precedent and at the Borrower's option, the maturity date of the Second A&R Facility may be extended by six months. The Second A&R Facility has certain covenants as set forth in the Credit Agreement 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 Credit Agreement requires 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 1.70 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 $1,700,000,000 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 March 25, 2020, 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 $299,000,000, (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 March 31, 2024, the Company was in compliance with these covenants. As of March 31, 2024, the Second A&R Facility had $247.9 million outstanding with $252.1 million available to be drawn. The Company paid down the Second A&R Facility by $60.0 million in April 2024. The average outstanding borrowings under the Second A&R Facility was $211.3 million during the three months ended March 31, 2024. Senior Notes On February 11, 2021, Kennedy-Wilson, Inc. ("KWI"), as issuer, 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"). 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 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 indentures governing the 2031 notes, 2030 notes, and 2029 notes contain various restrictive covenants, including, among others, limitations on the Company's ability and the ability of certain of the Company's subsidiaries to incur or guarantee additional indebtedness, make restricted payments, pay dividends or make any other distributions from restricted subsidiaries, redeem or repurchase capital stock, sell assets or subsidiary stocks, engage in transactions with affiliates, create or permit liens, enter into sale/leaseback transactions, and enter into consolidations or mergers. The indenture governing the 2031 notes, 2030 notes, and 2029 notes limit the ability of KWI and its restricted subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the new indebtedness, the maximum balance sheet leverage ratio (as defined in the indenture) is greater than 1.50 to 1.00, subject to certain exceptions. As of March 31, 2024, the maximum balance sheet leverage ratio was 1.28 to 1.00. See Note 15 for the guarantor and non-guarantor financial statements. As of March 31, 2024, the Company was in compliance with all financial covenants. The following table details KWE unsecured bonds as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 KWE Euro Medium Term Note Programme (1) $ 511.9 $ 523.3 Unamortized loan fees (0.4) (0.5) Total KWE Unsecured Bonds $ 511.5 $ 522.8 (1) The KWE unsecured bonds balances include unamortized debt discounts. Debt discounts represent the difference between the fair value of debt at issuance and the principal value of debt and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The net unamortized discount as of March 31, 2024 and December 31, 2023 was $0.9 million and $1.0 million, respectively. As of March 31, 2024, KWE has senior unsecured notes for an aggregate principal amount of approximately $512.8 million (based on March 31, 2024 rates) (€475 million) (the "KWE Notes"). The KWE Notes were issued at a discount and have a carrying value of $511.9 million, with an annual fixed coupon of 3.25% and mature in November 2025. As KWE invested proceeds from the KWE Notes to fund equity investments in euro denominated assets, KWE designated the KWE Notes as net investment hedges under ASC Topic 815. Subsequent fluctuations in foreign currency rates that impact the carrying value of the KWE Notes are recorded to accumulated other comprehensive income. During the three months ended March 31, 2024, Kennedy Wilson recorded a gain of $7.0 million in other comprehensive income due to the weakening of the euro against the GBP during the period. The trust deed that governs the bonds contains various restrictive covenants for KWE, including, among others, limitations on KWE’s and its material subsidiaries’ ability to provide certain negative pledges. The trust deed limits the ability of KWE and its subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the incurrence of the new indebtedness, (1) KWE’s consolidated net indebtedness (as defined in the trust deed) would exceed 60% of KWE’s total assets (as calculated pursuant to the terms of the trust deed); and (2) KWE’s consolidated secured indebtedness (as defined in the trust deed) would exceed 50% of KWE’s total assets (as calculated pursuant to the terms of the trust deed). The trust deed also requires KWE, as of each reporting date, to maintain an interest coverage ratio (as defined in the trust deed) of at least 1.50 to 1.00 and have unencumbered assets of no less than 125% of its unsecured indebtedness (as defined in the trust deed). As of March 31, 2024, KWE was in compliance with these covenants. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock On June 16, 2023, the Company announced the issuance of its $200 million perpetual preferred stock to Fairfax. Under the terms of the agreement, Fairfax purchased $200 million in cumulative perpetual preferred stock carrying a 6.00% annual dividend rate and 7-year warrants for approximately 12.3 million common shares with an initial exercise price of $16.21 per share. The preferred stock described above is callable by Kennedy Wilson at any time. The cumulative perpetual preferred stock is treated as permanent equity in accordance with ASC Topic 480, Distinguishing Liabilities from Equity . At-the-Market Equity Offering Program In May 2022, the Company established an at-the-market equity offering program (the “ATM Program”) pursuant to which it may issue and sell shares of the Company’s common stock having an aggregate gross sales price of up to $200.0 million in amounts and at times as the Company determines from time to time. During the three months ended March 31, 2024, the Company did not issue any shares under the ATM Program. The ATM program is available through the Company's current shelf registration which expires in March 2025 and the Company has $169.9 million of capacity remaining. The Company has no obligation to sell any of such shares under its ATM Program. 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. Dividend Distributions Kennedy Wilson declared and paid the following cash distributions on its preferred and common stock: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 (Dollars in millions) Declared Paid Declared Paid Preferred Stock $ 10.9 $ 10.9 $ 7.9 $ 7.9 Common Stock (1) 33.1 34.1 33.4 35.6 (1) The difference between declared and paid is the amount accrued on the consolidated balance sheets. Share-based Compensation During the three months ended March 31, 2024 and 2023, Kennedy Wilson recognized $5.2 million and $7.1 million of compensation expense, respectively, related to the amortization of grant date fair values of restricted stock grants. Common Stock Repurchase Program On November 4, 2020, the Company's board of directors authorized an expansion of its existing $250.0 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. During the three months ended March 31, 2024, Kennedy Wilson repurchased and retired 882,454 shares on the open market for $7.5 million under the previous stock repurchase program for an average price of $8.50 per share. During the three months ended March 31, 2023, Kennedy Wilson did not repurchase any shares under the stock repurchase program. There is $115.3 million remaining under the stock repurchase program. Generally, upon vesting, the restricted stock granted to employees is net share-settled such that the Company will withhold shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes and remit the cash to the appropriate taxing authorities. The restricted shares that vested during three months ended March 31, 2024 and 2023 were net-share settled. The total shares withheld during the three months ended March 31, 2024 and 2023 were 129,011 shares and 1,046,430 shares, respectively. During the three months ended March 31, 2024 and 2023, total payments for the employees’ tax obligations to the taxing authorities for the shares which were net-share settled were $1.6 million and $13.4 million, respectively. These activities are reflected as a financing activity within Kennedy Wilson's consolidated statements of cash flows. Accumulated Other Comprehensive (Loss) Income The following table summarizes the changes in each component of accumulated other comprehensive (loss) income, net of taxes from December 31, 2023 to March 31, 2024: (Dollars in millions) Foreign Currency Translation Currency Derivative Contracts Interest Rate Swaps Total Accumulated Other Comprehensive Loss (1) Balance at December 31, 2023 $ (125.7) $ 76.5 $ 3.2 $ (46.0) Unrealized (losses) gains, arising during the period (17.6) 10.6 — (7.0) Deferred taxes on unrealized losses (gains), arising during the period 0.2 (0.8) — (0.6) Amounts reclassified out of AOCI during the period, gross 9.5 (0.7) — 8.8 Amounts reclassified out of AOCI during the period, tax (4.2) 0.6 — (3.6) Noncontrolling interests 0.1 — — 0.1 Balance at March 31, 2024 $ (137.7) $ 86.2 $ 3.2 $ (48.3) (1) Excludes $358.4 million of inception to date accumulated other comprehensive losses associated with noncontrolling interest holders of KWE that the Company was required to record as part of the KWE Transaction in October 2017. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed after adjusting the numerator and denominator of the basic earnings per share computation for the effects of all potentially dilutive common shares. The dilutive effect of non-vested stock issued under share‑based compensation plans is computed using the treasury stock method. The dilutive effect of the cumulative preferred stock is computed using the if‑converted method. The following is a summary of the elements used in calculating basic and diluted income (loss) per share for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions, except share and per share amounts) 2024 2023 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 26.9 $ (40.8) Weighted average shares outstanding for basic 138,472,579 137,949,018 Basic earnings (loss) per basic share $ 0.19 $ (0.30) Weighted average shares outstanding for diluted (1) 138,628,139 137,949,018 Diluted earnings (loss) per diluted share $ 0.19 $ (0.30) (1) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Segment Presentation The Company evaluates its reportable segments in accordance with the guidance of ASC Topic 280, Segment Reporting, which aligns with how the business is being run and evaluated by the chief operating decision makers. Segments The Company's operations are defined by two business segments: its Consolidated investment portfolio (the "Consolidated Portfolio") and its Co-Investment Portfolio: • Consolidated Portfolio consists of the investments that the Company has made in real estate and real estate-related assets and consolidates on its balance sheet. The Company typically wholly-owns the assets in its Consolidated Portfolio. • Co-Investment Portfolio consists of (i) the co-investments that the Company has made in real estate and real estate-related assets, including loans secured by real estate, through the commingled funds and joint ventures that it manages; and (ii) the fees (including, without limitation, asset management fees and construction management fees); and (iii) performance allocations. The Company typically owns a 5-50% ownership interest in the assets in its Co-Investment Portfolio. In addition to the Company's two primary business segments the Company's Corporate segment includes, among other things, corporate overhead and the Company's auction group. Consolidated Portfolio Consolidated Portfolio is a permanent capital vehicle focused on maximizing property cash flow. These assets are primarily wholly-owned and tend to have longer hold periods and the Company targets investments with accretive asset management opportunities. The Company typically focuses on office and multifamily assets in the Western United States and commercial assets in the United Kingdom and Ireland within this segment. Co-Investment Portfolio Co-Investment Portfolio consists of (i) the co-investments in real estate and real estate-related assets, including loans secured by real estate, that we have made through the commingled funds and joint ventures that we manage; (ii) fees (including, without limitation, asset management fees, construction management fees, and/or acquisition and disposition fees); and (iii) performance allocations. The Company utilizes different platforms in the Co-Investment Portfolio segment depending on the asset and risk return profiles. The following tables summarize income activity by segment and corporate for the three months ended March 31, 2024 and 2023 and balance sheet data as of March 31, 2024 and December 31, 2023: Three Months Ended March 31, 2024 (Dollars in millions) Consolidated Co-Investments Corporate Total Revenue Rental $ 97.4 $ — $ — $ 97.4 Hotel 9.3 — — 9.3 Investment management fees — 21.3 — 21.3 Loans — 8.1 — 8.1 Other — — 0.3 0.3 Total revenue 106.7 29.4 0.3 136.4 (Loss) income from unconsolidated investments Principal co-investments — 9.7 — 9.7 Performance allocations — (16.4) — (16.4) Total loss from unconsolidated investments — (6.7) — (6.7) Gain on sale of real estate, net 106.4 — — 106.4 Expenses Rental 37.2 — — 37.2 Hotel 7.6 — — 7.6 Compensation and related 9.7 8.1 9.8 27.6 Performance allocation compensation — (5.5) — (5.5) General and administrative 3.8 2.9 1.6 8.3 Depreciation and amortization 38.9 — — 38.9 Total expenses 97.2 5.5 11.4 114.1 Interest expense (39.9) — (24.8) (64.7) Gain on extinguishment of debt 0.3 — — 0.3 Other income 2.7 2.4 1.7 6.8 Provision for income taxes (12.2) — (14.5) (26.7) Net income (loss) 66.8 19.6 (48.7) 37.7 Net loss attributable to noncontrolling interests 0.1 — — 0.1 Preferred dividends — — (10.9) (10.9) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 66.9 $ 19.6 $ (59.6) $ 26.9 Three Months Ended March 31, 2023 (Dollars in millions) Consolidated Co-Investments Corporate Total Revenue Rental $ 106.6 $ — $ — $ 106.6 Hotel 10.6 — — 10.6 Investment management fees — 11.0 — 11.0 Loans — 3.7 — 3.7 Other — — 0.3 0.3 Total revenue 117.2 14.7 0.3 132.2 Income (loss) from unconsolidated investments Principal co-investments — 16.4 — 16.4 Performance allocations — (10.7) — (10.7) Income from unconsolidated investments — 5.7 — 5.7 Gain on sale of real estate, net 19.2 — — 19.2 Expenses Rental 36.6 — — 36.6 Hotel 7.9 — — 7.9 Compensation and related 9.8 8.4 12.4 30.6 Performance allocation compensation — 1.6 — 1.6 General and administrative 3.6 3.2 1.6 8.4 Depreciation and amortization 39.4 — — 39.4 Total expenses 97.3 13.2 14.0 124.5 Interest expense (37.2) — (25.1) (62.3) Gain on extinguishment of debt 0.1 — — 0.1 Other loss (1.0) — (2.0) (3.0) (Provision for) benefit from income taxes (1.8) — 5.7 3.9 Net (loss) income (0.8) 7.2 (35.1) (28.7) Net income attributable to noncontrolling interests (4.2) — — (4.2) Preferred dividends — — (7.9) (7.9) Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (5.0) $ 7.2 $ (43.0) $ (40.8) (Dollars in millions) March 31, 2024 December 31, 2023 Total assets Consolidated $ 5,160.5 $ 5,196.3 Co-investment 2,310.0 2,316.3 Corporate 209.8 199.5 Total assets $ 7,680.3 $ 7,712.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company derives a significant portion of its income from the rental and sale of real property. As a result, a substantial portion of its foreign earnings is subject to U.S. taxation under certain provisions of the Internal Revenue Code of 1986, as amended ("IRC"), applicable to controlled foreign corporations (known as the "Subpart F rules"). In determining the quarterly provisions for income taxes, the Company calculates income tax expense based on actual year-to-date income and statutory tax rates. The year-to-date income tax expense reflects the impact of foreign operations and income allocated to noncontrolling interests which is generally not subject to corporate tax. During the three months ended March 31, 2024, the Company generated pre-tax book income of $64.4 million related to its global operations and recorded a tax provision of $26.7 million. The tax expense for the period is above the U.S. statutory tax rate. Significant items impacting the quarterly tax provision include: increase in valuation allowance against the Company’s deferred tax asset on the outside basis difference of its investment in KWE and tax charges associated with non-deductible executive compensation under IRC Section 162(m). During the period, the Company's net deferred tax asset (and associated valuation allowance) related to its excess tax basis in legacy European real estate assets increased as a result of KWE realizing higher taxable income than book income on the disposition of real estate and impairment losses not recognized for tax. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements | 3 Months Ended |
Mar. 31, 2024 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
GUARANTOR AND NON-GARANTOR FINANCIAL STATEMENTS | GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information and condensed consolidating financial information include: (1) Condensed consolidating balance sheets as of March 31, 2024 and December 31, 2023; consolidating statements of operations for the three months ended March 31, 2024 and 2023, of (a) Kennedy-Wilson Holdings, Inc., as the parent, (b) Kennedy-Wilson, Inc., as the subsidiary issuer, (c) the guarantor subsidiaries, (d) the non-guarantor subsidiaries and (e) Kennedy-Wilson Holdings, Inc. on a consolidated basis; and (2) Elimination of entries necessary to consolidate Kennedy-Wilson Holdings, Inc., as the parent, with Kennedy-Wilson, Inc. and its guarantor and non-guarantor subsidiaries. Kennedy Wilson owns 100% of all of the guarantor subsidiaries, and, as a result, in accordance with Rule 3-10(d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of and for the three months ended March 31, 2024 or 2023. Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 53.6 $ 125.5 $ 362.8 $ — $ 541.9 Accounts receivable — 0.8 21.5 20.2 — 42.5 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,494.0 3,109.5 — 4,603.5 Unconsolidated investments — 13.7 660.0 1,385.9 — 2,059.6 Investments in and advances to consolidated subsidiaries 1,787.0 3,985.7 2,539.6 — (8,312.3) — Loan purchases and originations, net of allowance for credit losses — 0.7 218.1 31.6 — 250.4 Other assets — 62.3 50.9 69.2 — 182.4 Total assets $ 1,787.0 $ 4,116.8 $ 5,109.6 $ 4,979.2 $ (8,312.3) $ 7,680.3 Liabilities and equity Liabilities Accounts payable $ — $ 0.9 $ 5.9 $ 8.7 $ — $ 15.5 Accrued expenses and other liabilities 44.4 296.4 110.3 111.7 — 562.8 Mortgage debt — — 1,007.7 1,765.4 — 2,773.1 KW unsecured debt — 2,032.5 — — — 2,032.5 KWE unsecured bonds — — — 511.5 — 511.5 Total liabilities 44.4 2,329.8 1,123.9 2,397.3 — 5,895.4 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,742.6 1,787.0 3,985.7 2,539.6 (8,312.3) 1,742.6 Noncontrolling interests — — — 42.3 — 42.3 Total equity 1,742.6 1,787.0 3,985.7 2,581.9 (8,312.3) 1,784.9 Total liabilities and equity $ 1,787.0 $ 4,116.8 $ 5,109.6 $ 4,979.2 $ (8,312.3) $ 7,680.3 Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 73.3 $ 99.4 $ 141.0 $ — $ 313.7 Accounts receivable — 0.9 22.0 34.4 — 57.3 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,522.3 3,315.0 — 4,837.3 Unconsolidated investments — 14.6 652.0 1,402.5 — 2,069.1 Investments in and advances to consolidated subsidiaries 1,800.4 3,938.2 2,511.6 — (8,250.2) — Loan purchases and originations, net of allowance for credit losses — 0.7 214.8 31.7 — 247.2 Other assets — 59.4 51.6 76.5 — 187.5 Total assets $ 1,800.4 $ 4,087.1 $ 5,073.7 $ 5,001.1 $ (8,250.2) $ 7,712.1 Liabilities Accounts payable $ — $ 0.5 $ 6.0 $ 11.4 $ — 17.9 Accrued expense and other liabilities 45.3 351.9 91.5 109.1 — 597.8 Mortgage debt — — 1,038.0 1,802.9 — 2,840.9 KW unsecured debt — 1,934.3 — — — 1,934.3 KWE unsecured bonds — — 522.8 — 522.8 Total liabilities 45.3 2,286.7 1,135.5 2,446.2 — 5,913.7 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,755.1 1,800.4 3,938.2 2,511.6 (8,250.2) 1,755.1 Noncontrolling interests — — — 43.3 — 43.3 Total equity 1,755.1 1,800.4 3,938.2 2,554.9 (8,250.2) 1,798.4 Total liabilities and equity $ 1,800.4 $ 4,087.1 $ 5,073.7 $ 5,001.1 $ (8,250.2) $ 7,712.1 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2024 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Total revenue $ — $ — $ 62.9 $ 73.5 $ — $ 136.4 Income (loss) from unconsolidated investments — 0.3 (10.0) 3.0 — (6.7) Gain on sale of real estate, net — 0.8 21.6 84.0 — 106.4 Total expenses 5.2 14.8 37.1 57.0 — 114.1 Income from consolidated subsidiaries 42.8 86.1 65.4 — (194.3) — Interest expense — (24.8) (10.7) (29.2) — (64.7) Gain on early extinguishment of debt — — 0.3 — — 0.3 Other income (loss) 0.1 9.6 (6.1) 3.2 — 6.8 Income before provision for income taxes 37.7 57.2 86.3 77.5 (194.3) 64.4 Provision for income taxes — (14.4) (0.2) (12.1) — (26.7) Net income 37.7 42.8 86.1 65.4 (194.3) 37.7 Net loss attributable to the noncontrolling interests — — — 0.1 — 0.1 Preferred dividends (10.9) — — — — (10.9) Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 26.8 $ 42.8 $ 86.1 $ 65.5 $ (194.3) $ 26.9 CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (Dollars in millions) Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Total revenue $ — $ 0.1 $ 56.4 $ 75.7 $ — $ 132.2 (Loss ) income from unconsolidated investments — — (26.9) 32.6 — 5.7 Gain on sale of real estate, net — — 3.7 15.5 — 19.2 Total expenses 7.6 17.0 44.0 55.9 — 124.5 (Loss) income from consolidated subsidiaries (21.2) 17.3 37.5 — (33.6) — Interest expense — (25.2) (10.8) (26.3) — (62.3) (Loss) gain on early extinguishment of debt — — (0.5) 0.6 — 0.1 Other income (loss) 0.1 (2.1) 0.9 (1.9) — (3.0) (Loss) income before benefit from (provision for) income taxes (28.7) (26.9) 16.3 40.3 (33.6) (32.6) Benefit from (provision for) income taxes — 5.7 1.0 (2.8) — 3.9 Net (loss) income (28.7) (21.2) 17.3 37.5 (33.6) (28.7) Net income attributable to the noncontrolling interests — — — (4.2) — (4.2) Preferred dividends (7.9) — — — — (7.9) Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (36.6) $ (21.2) $ 17.3 $ 33.3 $ (33.6) $ (40.8) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to March 31, 2024, the Company repaid $60 million on its revolving line of credit. The company has an outstanding balance of $187.9 million with $312.1 million available to draw. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION — Revenue consists of rental and hotel income, management fees, leasing and commission fees, loan interest income and sales of real estate. ASC Topic 606, Revenue from Contracts with Customers , is a five step model to recognize revenue from customer contracts. The model identifies the contract, any separate performance obligations in the contract, determines the transaction price, allocates the transaction price and recognizes revenue when the performance obligations are satisfied. Management has concluded that, with the exception of performance allocations and loan interest income, the nature of the Company's revenue streams is such that the requirements are generally satisfied at the time that the fee becomes receivable. Rental income from operating leases is generally recognized on a straight-line basis over the terms of the leases in accordance with ASC Topic 842, Leases . Hotel income is earned when rooms are occupied or goods and services have been delivered or rendered. Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property. Investment management fees are earned from limited partners of funds, co-investments, or separate accounts and are generally based on a fixed percentage of committed capital or net asset value. The Company provides investment management on investments it also has an ownership interest in. Fees earned on consolidated properties are eliminated in consolidation and fees on unconsolidated investments are eliminated for the portion that relate to the Company's ownership interest. Investment management fees include acquisition, arrangement and disposition fees. Acquisition, arrangement and disposition fees are earned for identifying and closing investments on behalf of investors and are based on a fixed percentage of the acquisition or disposition price, as applicable. Acquisition and disposition fees are recognized upon the successful completion of an acquisition or disposition after all required services have been performed. The Company typically earns origination fees on loan originations in its debt platform business. The fees are earned when the loan closes and are recorded as part of investment management fees for the portion of the loan that the Company does not have an ownership interest in which is typically 95% to 97.5%. The remaining portion of the fee is deferred and accreted over the expected loan term through interest income. Loan income from investments in performing loans which Kennedy Wilson originates or acquires are recognized at the stated interest rate plus any amortization of premiums/discounts or fees earned on the loans. Interest income from investments in loans acquired at a discount are recognized using the effective interest method. When a loan or loans are acquired with deteriorated credit quality primarily for the rewards of collateral ownership, such loans are accounted for as loans until Kennedy Wilson is in possession of the collateral. However, accrual of income is not recorded during the conversion period under ASC Subtopic 310-30-25, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality . Income is recognized to the extent that cash is received from the loan. The Company has evaluated its loan portfolio under ASC Subtopic 326, Financial Instruments – Credit Losses for current expected credit losses ("CECL") reserves. CECL reserves reflect the Company's current estimate of potential credit losses related to loans included in the Company's consolidated balance sheets. Changes to the CECL reserve are recognized through interest income on the Company's consolidated statements of operations. While ASC Subtopic 326 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions. Sales of real estate are recognized when title to the real property passes to the buyer and there is no continuing involvement in the real property. Under ASC Subtopic 610-20 , Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, the Company recognizes the entire gain attributed to contributions of real estate properties to unconsolidated entities. Property services fees are earned from the Company's auction sales and marketing business and are recorded as part of the Other revenue line item on the Company's statement of operations. In the case of auction and real estate sales commissions, the revenue is generally recognized when escrow closes. In accordance with the guidelines established for Reporting Revenue Gross as a Principal versus Net as an Agent in ASC Topic 606, Kennedy Wilson records commission revenues and expenses on a gross basis. Of the criteria listed in ASC Topic 606, Kennedy Wilson is the primary obligor in the transaction, does not have inventory risk, performs all or part of the service and has wide latitude in establishing the price of services rendered and discretion in selection of agents and determination of service specifications. |
REAL ESTATE ACQUISITIONS | REAL ESTATE ACQUISITIONS—The purchase price of acquired properties is recorded to land, buildings and building improvements and intangible lease value (value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any). The ownership of the other interest holders in consolidated subsidiaries is reflected as noncontrolling interests. Real estate is recorded based on cumulative costs incurred and allocated based on relative fair value. Acquisition fees and expenses associated with the acquisition of properties determined to be business combinations are expensed as incurred. Acquisition fees and expenses associated with transactions determined to be asset acquisitions are capitalized as part of the real estate acquired. The valuations of real estate are based on management estimates of the real estate assets using income and market approaches. The indebtedness securing the real estate is valued, in part, based on third party valuations and management estimates also using an income approach. |
UNCONSOLIDATED INVESTMENTS | UNCONSOLIDATED INVESTMENTS — Kennedy Wilson has a number of joint venture interests that were formed to acquire, manage, and/or sell real estate or real estate related investments. Investments in unconsolidated investments are accounted for under the equity method of accounting as Kennedy Wilson can exercise significant influence, but does not have the ability to control the unconsolidated investment. An investment in an unconsolidated investment is recorded at its initial investment and is increased or decreased by Kennedy Wilson’s share of income or loss, contributions, distributions and foreign currency movements. A decline in the value of an unconsolidated investment that is other than temporary is recognized when evidence indicates that such a decline has occurred in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures . Kennedy Wilson elected the fair value option for 72 investments in unconsolidated investment entities ("FV Option" investments). Due to the nature of these investments, Kennedy Wilson elected to record these investments at fair value in order to report the change in value in the underlying investments in the results of our current operations. Additionally, Kennedy Wilson records its investments in commingled funds it manages and sponsors (the "Funds") that are investment companies under ASC Topic 946, Financial Services - Investment Companies , based upon the net assets that would be allocated to its interests in the Funds assuming the Funds were to liquidate their investments at fair value as of the reporting date. Thus, the Funds reflect their investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in their earnings. Performance allocations or carried interest are allocated to the general partner, special limited partner or asset manager of Kennedy Wilson's real estate funds based on the cumulative performance of the fund and are subject to preferred return thresholds of the limited partners. At the end of each reporting period, Kennedy Wilson calculates the performance allocation that would be due as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as performance allocation to reflect either (a) positive performance resulting in an increase in the performance allocation to the general partner or asset manager or (b) negative performance that would cause the amount due to Kennedy Wilson to be less than the amount previously recorded as income from unconsolidated investments, resulting in a negative adjustment to performance allocations to the general partner or asset manager. As of March 31, 2024, the Company has $60.9 million of accrued performance allocations recorded to unconsolidated investments that are subject to future adjustments based on the underlying performance of investments. The Company has concluded that performance allocations to the Company from equity method investments, based on cumulative performance to-date, represent carried interests. Consequently, in following the guidance set forth in ASC Topic 606 and ASC Topic 323, these allocations are included as a component of the total income from unconsolidated investments in the accompanying consolidated statements of income. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS — Kennedy Wilson accounts for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recorded or disclosed at fair value in the financial statements on a recurring basis under the provisions of ASC Topic 820, Fair Value Measurement |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS — The estimated fair value of financial instruments is determined using available market information and appropriate valuation methodologies. Considerable judgment, is necessary, however, to interpret market data and develop the related estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material impact on the estimated fair value amounts. |
FOREIGN CURRENCIES | FOREIGN CURRENCIES — The financial statements of Kennedy Wilson's subsidiaries located outside the United States are measured using the local currency as this is their functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The foreign currencies include the euro and the British pound sterling. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in the consolidated statement of equity as a component of accumulated other comprehensive income. Investment level debt is generally incurred in local currencies. Fluctuations in foreign exchanges rates may have a significant impact on the results of the Company's operations. In order to manage currency fluctuations, Kennedy Wilson entered into currency derivative contracts to manage its exposure to currency fluctuations between its functional currency (U.S. dollar) and the functional currency (euro and the British pound) of certain of its wholly-owned and consolidated subsidiaries. KWE has also entered into currency derivative contracts to manage its exposure to euro to British pound currency fluctuations. See Note 5 for a more detailed discussion of Kennedy Wilson's currency derivative contracts. |
LONG-LIVED ASSETS | LONG-LIVED ASSETS — Kennedy Wilson reviews its long-lived assets (excluding goodwill) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Subtopic 360-10, Property, Plant and Equipment |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS For information regarding accounting standards that the Company adopted during the periods presented, see note 2 of the notes to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The Company did not adopt any new accounting standards during the three months ended March 31, 2024. The FASB did not issue any other ASUs during the first three months of 2024 that the Company expects to be applicable and have a material impact on the Company's financial position or results of operations. |
SEGMENT PRESENTATION | The Company evaluates its reportable segments in accordance with the guidance of ASC Topic 280, Segment Reporting, |
Real Estate and In-Place Leas_2
Real Estate and In-Place Lease Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Investment in Consolidated Real Estate Properties | The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at March 31, 2024 and December 31, 2023: March 31, December 31, (Dollars in millions) 2024 2023 Land $ 1,273.9 $ 1,328.3 Buildings 3,503.2 3,679.1 Building improvements 478.7 511.3 In-place lease values 253.7 276.4 5,509.5 5,795.1 Less accumulated depreciation and amortization (906.0) (957.8) Real estate and acquired in place lease values, net of accumulated depreciation and amortization $ 4,603.5 $ 4,837.3 |
Schedule of Minimum Lease Payments | The following table summarizes the minimum lease payments due from the Company's customers on leases with lease periods greater than one year at March 31, 2024: (Dollars in millions) Minimum Rental Revenues (1) 2024 (remainder) $ 81.3 2025 104.0 2026 101.6 2027 84.9 2028 67.9 Thereafter 164.6 Total $ 604.3 (1) These amounts do not reflect future rental revenues from the renewal or replacement of existing leases, rental increases that are not fixed and exclude reimbursements of rental expenses. |
Unconsolidated Investments (Tab
Unconsolidated Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Joint Ventures by Investment Type and Geographic Location | The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of March 31, 2024: (Dollars in millions) Multifamily Commercial Hotel Funds Residential and Other Total Western U.S. $ 817.2 $ 69.3 $ 253.9 $ 84.7 $ 175.6 $ 1,400.7 Ireland 312.6 149.8 — 5.3 — 467.7 United Kingdom — 139.8 — 31.0 20.4 191.2 Total $ 1,129.8 $ 358.9 $ 253.9 $ 121.0 $ 196.0 $ 2,059.6 The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of December 31, 2023: (Dollars in millions) Multifamily Commercial Hotel Funds Residential and Other Total Western U.S. $ 820.9 $ 71.6 $ 253.0 $ 96.2 $ 156.2 $ 1,397.9 Ireland 313.8 158.7 — 5.4 — 477.9 United Kingdom — 139.8 — 31.5 22.0 193.3 Total $ 1,134.7 $ 370.1 $ 253.0 $ 133.1 $ 178.2 $ 2,069.1 |
Schedule of Joint Venture Cash Distributions by Investment Type and Geographic Location | The following table details cash distributions by investment type and geographic location for the three months ended March 31, 2024: Multifamily Commercial Funds Residential and Other Total (Dollars in millions) Operating Investing Operating Investing Operating Investing Operating Investing Operating Investing Western U.S. $ 8.7 $ 1.6 $ 1.8 $ — $ — $ — $ 0.2 $ 1.1 $ 10.7 $ 2.7 Ireland 2.0 — 0.9 — — — — — 2.9 — United Kingdom — — — — — — 0.4 — 0.4 — Total $ 10.7 $ 1.6 $ 2.7 $ — $ — $ — $ 0.6 $ 1.1 $ 14.0 $ 2.7 |
Schedule of (Loss) Income from Unconsolidated Investments | The following table presents (loss) income from unconsolidated investments recorded by Kennedy Wilson during the three and three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions) 2024 2023 Income from unconsolidated investments - operating performance $ 7.8 $ 14.0 Income from unconsolidated investments - fair value 1.9 2.4 Loss from unconsolidated investments - performance allocations (16.4) (10.7) $ (6.7) $ 5.7 |
Fair Value Measurements and t_2
Fair Value Measurements and the Fair Value Option (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of March 31, 2024: (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 1,917.6 $ 1,917.6 Net currency derivative contracts — (13.1) — (13.1) Total $ — $ (13.1) $ 1,917.6 $ 1,904.5 The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2023: (Dollars in millions) Level 1 Level 2 Level 3 Total Unconsolidated investments $ — $ — $ 1,927.0 $ 1,927.0 Net currency derivative contracts — (23.7) — (23.7) Total $ — $ (23.7) $ 1,927.0 $ 1,903.3 |
Schedule of Changes in Level 3 Investments | The following table presents changes in Level 3 investments in Funds and FV Options for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions) 2024 2023 Beginning balance $ 1,927.0 $ 2,093.7 Unrealized and realized gains 39.4 56.6 Unrealized and realized losses (51.0) (56.4) Contributions 27.9 50.7 Distributions (13.0) (30.1) Foreign exchange (12.0) 11.3 Other (0.7) (0.3) Ending balance $ 1,917.6 $ 2,125.5 |
Schedule of Range of Unobservable Inputs for Real Estate Assets | The table below describes the range of unobservable inputs for real estate assets as of March 31, 2024: Estimated Rates Used for Capitalization Rates Discount Rates Multifamily Income approach - discounted cash flow 5.00% —7.20% 6.50% — 9.70% Income approach - direct capitalization 4.30% — 5.80% N/A Office Income approach - discounted cash flow 5.20% — 7.50% 7.30% — 9.30% Income approach - direct capitalization 4.50% — 9.30% N/A Industrial Income approach - discounted cash flow 5.00% — 6.30% 6.30% — 7.80% Income approach - direct capitalization 4.00% — 9.00% N/A Retail Income approach - discounted cash flow 6.50% 8.30% Hotel Income approach - discounted cash flow 6.00% 8.30% |
Schedule of Currency Derivative Contracts | The table below details the currency derivative contracts Kennedy Wilson held as of March 31, 2024 and the activity during the three months ended March 31, 2024. (Dollars, Euros and British Pound Sterling in millions) March 31, 2024 Three Months Ended March 31, 2024 Currency Hedged Underlying Currency Notional Hedge Assets Hedge Liabilities OCI Gains (Losses) Income Statement Gains Interest Expense Cash Received Outstanding EUR USD € 287.5 $ 4.4 $ (12.9) $ 0.2 $ 6.0 $ 1.1 $ — EUR (1) GBP € 40.0 — (1.2) (0.8) — — — EUR (1)(2) GBP € 475.0 — — 7.8 — — — GBP USD £ 475.0 11.3 (14.7) 3.7 0.5 0.4 — Total Outstanding 15.7 (28.8) 10.9 6.5 1.5 — Settled GBP USD — — (0.2) — 0.1 0.3 Total Settled — — (0.2) — 0.1 0.3 Total $ 15.7 $ (28.8) $ 10.7 (3) $ 6.5 $ 1.6 $ 0.3 (1) Hedge is held by KWE on its wholly-owned subsidiaries. (2) Relates to KWE's Euro Medium Term Note. See discussion in Note 10. (3) Excludes deferred tax expense of $0.8 million relating to activity for the three months ended March 31, 2024. Also excludes $0.7 million of hedge gains and $0.6 million of deferred tax expense that were reclassified out of other comprehensive income. |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: (Dollars in millions) March 31, 2024 December 31, 2023 Straight line rent receivable $ 42.8 $ 45.8 Interest rate caps and swaps 27.2 29.0 Goodwill 23.9 23.9 Hedge assets 15.7 13.3 Prepaid expenses 13.6 13.1 Deferred taxes, net 9.3 10.0 Right of use asset, net 8.7 8.9 Leasing commissions, net of accumulated amortization of $12.5 and $13.4 at March 31, 2024 and December 31, 2023, respectively 8.1 9.0 Furniture and equipment net of accumulated depreciation of $21.2 and $30.8 at March 31, 2024 and December 31, 2023, respectively 5.9 7.0 Above-market leases, net of accumulated amortization of $40.6 and $42.4 at March 31, 2024 and December 31, 2023, respectively 2.1 2.5 Other 25.1 25.0 Other Assets $ 182.4 $ 187.5 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted to calculate the right of use asset and related lease liability for its operating leases in which we are the lessee: (Dollars in millions) Minimum Rental Payments 2024 (remainder) $ 0.8 2025 1.0 2026 1.3 2027 1.4 2028 1.3 Thereafter 30.8 Total undiscounted rental payments 36.6 Less imputed interest (28.0) Right of use asset, net $ 8.6 |
Mortgage Debt (Tables)
Mortgage Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgage Debt | The following table details mortgage debt secured by Kennedy Wilson's consolidated properties as of March 31, 2024 and December 31, 2023: (Dollars in millions) Carrying amount of mortgage debt as of (1) Mortgage Debt by Product Type Region March 31, 2024 December 31, 2023 Multifamily (1) Western U.S. $ 1,744.4 $ 1,711.0 Commercial (1) United Kingdom 476.2 509.9 Commercial (1) Ireland 329.8 337.8 Commercial Western U.S. 199.0 258.2 Commercial Spain 36.8 37.7 Mortgage debt (excluding loan fees) (1) 2,786.2 2,854.6 Unamortized loan fees (13.1) (13.7) Total Mortgage Debt $ 2,773.1 $ 2,840.9 (1) The mortgage debt balances include unamortized debt discount. Debt discount represents the difference between the fair value of debt and the principal value of debt assumed in various acquisitions and are amortized as an increase of interest expense for discounts and a reduction of interest expense for premiums over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan discount as of March 31, 2024 and December 31, 2023 was $1.3 million and $1.0 million, respectively. |
Schedule of Aggregate Maturities of Mortgage Loans | The aggregate maturities of mortgage loans as of March 31, 2024, including amortization and the effects of any extension options. In certain cases, extension options will only be granted after meeting certain lender loan covenants. (Dollars in millions) Aggregate Maturities 2024 (remainder) (1) $ 79.3 2025 172.0 2026 659.1 2027 349.5 2028 340.3 Thereafter 1,187.3 2,787.5 Unamortized debt discount (1.3) Unamortized loan fees (13.1) Total Mortgage Debt $ 2,773.1 (1) The Company is actively negotiating loan extensions and refinances with lenders on these loans. |
KW Unsecured Debt (Tables)
KW Unsecured Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt KW Unsecured Debt | The following table details KW unsecured debt as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 Credit facility $ 247.9 $ 150.4 Senior notes (1) : 2029 Notes 601.5 601.5 2030 Notes 600.0 600.0 2031 Notes 601.6 601.6 KW unsecured debt 2,051.0 1,953.5 Unamortized loan fees (18.5) (19.2) Total KW Unsecured Debt $ 2,032.5 $ 1,934.3 (1) The senior notes balances include unamortized debt premiums. Debt premiums represent the difference between the fair value of debt and the principal value of debt issued and is amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized debt premium as of March 31, 2024 and December 31, 2023 was $3.1 million and $3.1 million, respectively. (Dollars in millions) March 31, 2024 December 31, 2023 KWE Euro Medium Term Note Programme (1) $ 511.9 $ 523.3 Unamortized loan fees (0.4) (0.5) Total KWE Unsecured Bonds $ 511.5 $ 522.8 (1) The KWE unsecured bonds balances include unamortized debt discounts. Debt discounts represent the difference between the fair value of debt at issuance and the principal value of debt and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The net unamortized discount as of March 31, 2024 and December 31, 2023 was $0.9 million and $1.0 million, respectively. |
KWE Unsecured Bonds (Tables)
KWE Unsecured Bonds (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of KW Unsecured Bonds | The following table details KW unsecured debt as of March 31, 2024 and December 31, 2023: (Dollars in millions) March 31, 2024 December 31, 2023 Credit facility $ 247.9 $ 150.4 Senior notes (1) : 2029 Notes 601.5 601.5 2030 Notes 600.0 600.0 2031 Notes 601.6 601.6 KW unsecured debt 2,051.0 1,953.5 Unamortized loan fees (18.5) (19.2) Total KW Unsecured Debt $ 2,032.5 $ 1,934.3 (1) The senior notes balances include unamortized debt premiums. Debt premiums represent the difference between the fair value of debt and the principal value of debt issued and is amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized debt premium as of March 31, 2024 and December 31, 2023 was $3.1 million and $3.1 million, respectively. (Dollars in millions) March 31, 2024 December 31, 2023 KWE Euro Medium Term Note Programme (1) $ 511.9 $ 523.3 Unamortized loan fees (0.4) (0.5) Total KWE Unsecured Bonds $ 511.5 $ 522.8 (1) The KWE unsecured bonds balances include unamortized debt discounts. Debt discounts represent the difference between the fair value of debt at issuance and the principal value of debt and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The net unamortized discount as of March 31, 2024 and December 31, 2023 was $0.9 million and $1.0 million, respectively. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Dividends Declared and Paid | Kennedy Wilson declared and paid the following cash distributions on its preferred and common stock: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 (Dollars in millions) Declared Paid Declared Paid Preferred Stock $ 10.9 $ 10.9 $ 7.9 $ 7.9 Common Stock (1) 33.1 34.1 33.4 35.6 (1) The difference between declared and paid is the amount accrued on the consolidated balance sheets. |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following table summarizes the changes in each component of accumulated other comprehensive (loss) income, net of taxes from December 31, 2023 to March 31, 2024: (Dollars in millions) Foreign Currency Translation Currency Derivative Contracts Interest Rate Swaps Total Accumulated Other Comprehensive Loss (1) Balance at December 31, 2023 $ (125.7) $ 76.5 $ 3.2 $ (46.0) Unrealized (losses) gains, arising during the period (17.6) 10.6 — (7.0) Deferred taxes on unrealized losses (gains), arising during the period 0.2 (0.8) — (0.6) Amounts reclassified out of AOCI during the period, gross 9.5 (0.7) — 8.8 Amounts reclassified out of AOCI during the period, tax (4.2) 0.6 — (3.6) Noncontrolling interests 0.1 — — 0.1 Balance at March 31, 2024 $ (137.7) $ 86.2 $ 3.2 $ (48.3) (1) Excludes $358.4 million of inception to date accumulated other comprehensive losses associated with noncontrolling interest holders of KWE that the Company was required to record as part of the KWE Transaction in October 2017. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the elements used in calculating basic and diluted income (loss) per share for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (Dollars in millions, except share and per share amounts) 2024 2023 Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 26.9 $ (40.8) Weighted average shares outstanding for basic 138,472,579 137,949,018 Basic earnings (loss) per basic share $ 0.19 $ (0.30) Weighted average shares outstanding for diluted (1) 138,628,139 137,949,018 Diluted earnings (loss) per diluted share $ 0.19 $ (0.30) (1) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize income activity by segment and corporate for the three months ended March 31, 2024 and 2023 and balance sheet data as of March 31, 2024 and December 31, 2023: Three Months Ended March 31, 2024 (Dollars in millions) Consolidated Co-Investments Corporate Total Revenue Rental $ 97.4 $ — $ — $ 97.4 Hotel 9.3 — — 9.3 Investment management fees — 21.3 — 21.3 Loans — 8.1 — 8.1 Other — — 0.3 0.3 Total revenue 106.7 29.4 0.3 136.4 (Loss) income from unconsolidated investments Principal co-investments — 9.7 — 9.7 Performance allocations — (16.4) — (16.4) Total loss from unconsolidated investments — (6.7) — (6.7) Gain on sale of real estate, net 106.4 — — 106.4 Expenses Rental 37.2 — — 37.2 Hotel 7.6 — — 7.6 Compensation and related 9.7 8.1 9.8 27.6 Performance allocation compensation — (5.5) — (5.5) General and administrative 3.8 2.9 1.6 8.3 Depreciation and amortization 38.9 — — 38.9 Total expenses 97.2 5.5 11.4 114.1 Interest expense (39.9) — (24.8) (64.7) Gain on extinguishment of debt 0.3 — — 0.3 Other income 2.7 2.4 1.7 6.8 Provision for income taxes (12.2) — (14.5) (26.7) Net income (loss) 66.8 19.6 (48.7) 37.7 Net loss attributable to noncontrolling interests 0.1 — — 0.1 Preferred dividends — — (10.9) (10.9) Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 66.9 $ 19.6 $ (59.6) $ 26.9 Three Months Ended March 31, 2023 (Dollars in millions) Consolidated Co-Investments Corporate Total Revenue Rental $ 106.6 $ — $ — $ 106.6 Hotel 10.6 — — 10.6 Investment management fees — 11.0 — 11.0 Loans — 3.7 — 3.7 Other — — 0.3 0.3 Total revenue 117.2 14.7 0.3 132.2 Income (loss) from unconsolidated investments Principal co-investments — 16.4 — 16.4 Performance allocations — (10.7) — (10.7) Income from unconsolidated investments — 5.7 — 5.7 Gain on sale of real estate, net 19.2 — — 19.2 Expenses Rental 36.6 — — 36.6 Hotel 7.9 — — 7.9 Compensation and related 9.8 8.4 12.4 30.6 Performance allocation compensation — 1.6 — 1.6 General and administrative 3.6 3.2 1.6 8.4 Depreciation and amortization 39.4 — — 39.4 Total expenses 97.3 13.2 14.0 124.5 Interest expense (37.2) — (25.1) (62.3) Gain on extinguishment of debt 0.1 — — 0.1 Other loss (1.0) — (2.0) (3.0) (Provision for) benefit from income taxes (1.8) — 5.7 3.9 Net (loss) income (0.8) 7.2 (35.1) (28.7) Net income attributable to noncontrolling interests (4.2) — — (4.2) Preferred dividends — — (7.9) (7.9) Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (5.0) $ 7.2 $ (43.0) $ (40.8) (Dollars in millions) March 31, 2024 December 31, 2023 Total assets Consolidated $ 5,160.5 $ 5,196.3 Co-investment 2,310.0 2,316.3 Corporate 209.8 199.5 Total assets $ 7,680.3 $ 7,712.1 |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 53.6 $ 125.5 $ 362.8 $ — $ 541.9 Accounts receivable — 0.8 21.5 20.2 — 42.5 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,494.0 3,109.5 — 4,603.5 Unconsolidated investments — 13.7 660.0 1,385.9 — 2,059.6 Investments in and advances to consolidated subsidiaries 1,787.0 3,985.7 2,539.6 — (8,312.3) — Loan purchases and originations, net of allowance for credit losses — 0.7 218.1 31.6 — 250.4 Other assets — 62.3 50.9 69.2 — 182.4 Total assets $ 1,787.0 $ 4,116.8 $ 5,109.6 $ 4,979.2 $ (8,312.3) $ 7,680.3 Liabilities and equity Liabilities Accounts payable $ — $ 0.9 $ 5.9 $ 8.7 $ — $ 15.5 Accrued expenses and other liabilities 44.4 296.4 110.3 111.7 — 562.8 Mortgage debt — — 1,007.7 1,765.4 — 2,773.1 KW unsecured debt — 2,032.5 — — — 2,032.5 KWE unsecured bonds — — — 511.5 — 511.5 Total liabilities 44.4 2,329.8 1,123.9 2,397.3 — 5,895.4 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,742.6 1,787.0 3,985.7 2,539.6 (8,312.3) 1,742.6 Noncontrolling interests — — — 42.3 — 42.3 Total equity 1,742.6 1,787.0 3,985.7 2,581.9 (8,312.3) 1,784.9 Total liabilities and equity $ 1,787.0 $ 4,116.8 $ 5,109.6 $ 4,979.2 $ (8,312.3) $ 7,680.3 Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Assets Cash and cash equivalents $ — $ 73.3 $ 99.4 $ 141.0 $ — $ 313.7 Accounts receivable — 0.9 22.0 34.4 — 57.3 Real estate and acquired in place lease values, net of accumulated depreciation and amortization — — 1,522.3 3,315.0 — 4,837.3 Unconsolidated investments — 14.6 652.0 1,402.5 — 2,069.1 Investments in and advances to consolidated subsidiaries 1,800.4 3,938.2 2,511.6 — (8,250.2) — Loan purchases and originations, net of allowance for credit losses — 0.7 214.8 31.7 — 247.2 Other assets — 59.4 51.6 76.5 — 187.5 Total assets $ 1,800.4 $ 4,087.1 $ 5,073.7 $ 5,001.1 $ (8,250.2) $ 7,712.1 Liabilities Accounts payable $ — $ 0.5 $ 6.0 $ 11.4 $ — 17.9 Accrued expense and other liabilities 45.3 351.9 91.5 109.1 — 597.8 Mortgage debt — — 1,038.0 1,802.9 — 2,840.9 KW unsecured debt — 1,934.3 — — — 1,934.3 KWE unsecured bonds — — 522.8 — 522.8 Total liabilities 45.3 2,286.7 1,135.5 2,446.2 — 5,913.7 Equity Kennedy-Wilson Holdings, Inc. shareholders' equity 1,755.1 1,800.4 3,938.2 2,511.6 (8,250.2) 1,755.1 Noncontrolling interests — — — 43.3 — 43.3 Total equity 1,755.1 1,800.4 3,938.2 2,554.9 (8,250.2) 1,798.4 Total liabilities and equity $ 1,800.4 $ 4,087.1 $ 5,073.7 $ 5,001.1 $ (8,250.2) $ 7,712.1 |
Schedule of Consolidating Statement of Operations | Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Total revenue $ — $ — $ 62.9 $ 73.5 $ — $ 136.4 Income (loss) from unconsolidated investments — 0.3 (10.0) 3.0 — (6.7) Gain on sale of real estate, net — 0.8 21.6 84.0 — 106.4 Total expenses 5.2 14.8 37.1 57.0 — 114.1 Income from consolidated subsidiaries 42.8 86.1 65.4 — (194.3) — Interest expense — (24.8) (10.7) (29.2) — (64.7) Gain on early extinguishment of debt — — 0.3 — — 0.3 Other income (loss) 0.1 9.6 (6.1) 3.2 — 6.8 Income before provision for income taxes 37.7 57.2 86.3 77.5 (194.3) 64.4 Provision for income taxes — (14.4) (0.2) (12.1) — (26.7) Net income 37.7 42.8 86.1 65.4 (194.3) 37.7 Net loss attributable to the noncontrolling interests — — — 0.1 — 0.1 Preferred dividends (10.9) — — — — (10.9) Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ 26.8 $ 42.8 $ 86.1 $ 65.5 $ (194.3) $ 26.9 Parent Kennedy-Wilson, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Elimination Consolidated Total Total revenue $ — $ 0.1 $ 56.4 $ 75.7 $ — $ 132.2 (Loss ) income from unconsolidated investments — — (26.9) 32.6 — 5.7 Gain on sale of real estate, net — — 3.7 15.5 — 19.2 Total expenses 7.6 17.0 44.0 55.9 — 124.5 (Loss) income from consolidated subsidiaries (21.2) 17.3 37.5 — (33.6) — Interest expense — (25.2) (10.8) (26.3) — (62.3) (Loss) gain on early extinguishment of debt — — (0.5) 0.6 — 0.1 Other income (loss) 0.1 (2.1) 0.9 (1.9) — (3.0) (Loss) income before benefit from (provision for) income taxes (28.7) (26.9) 16.3 40.3 (33.6) (32.6) Benefit from (provision for) income taxes — 5.7 1.0 (2.8) — 3.9 Net (loss) income (28.7) (21.2) 17.3 37.5 (33.6) (28.7) Net income attributable to the noncontrolling interests — — — (4.2) — (4.2) Preferred dividends (7.9) — — — — (7.9) Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (36.6) $ (21.2) $ 17.3 $ 33.3 $ (33.6) $ (40.8) |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Polices and Adoption of New Accounting Pronouncements (Details) $ in Millions | Mar. 31, 2024 USD ($) investment | Dec. 31, 2023 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of investments electing fair value option | investment | 72 | |
Accrued performance allocations | $ 60.9 | |
Accrued Expenses and Other Liabilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accrued performance allocations | $ 17.1 | $ 22.8 |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Portion of the loan the Company does not have ownership interest in | 0.95 | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Portion of the loan the Company does not have ownership interest in | 0.975 |
Real Estate and In-Place Leas_3
Real Estate and In-Place Lease Value - Schedule of Investment in Consolidated Real Estate Properties (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate [Abstract] | ||
Land | $ 1,273.9 | $ 1,328.3 |
Buildings | 3,503.2 | 3,679.1 |
Building improvements | 478.7 | 511.3 |
In-place lease values | 253.7 | 276.4 |
Real estate, gross | 5,509.5 | 5,795.1 |
Less accumulated depreciation and amortization | (906) | (957.8) |
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | $ 4,603.5 | $ 4,837.3 |
Real Estate and In-Place Leas_4
Real Estate and In-Place Lease Value - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) asset | |
Real Estate [Line Items] | ||
Gain on sale of properties | $ 106.4 | $ 19.2 |
Shelbourne Hotel | ||
Real Estate [Line Items] | ||
Gain on sale of properties | 99.1 | |
Building | ||
Real Estate [Line Items] | ||
Gain on sale of properties | 21.6 | |
Office And Retail | United Kingdom and Ireland | ||
Real Estate [Line Items] | ||
Impairment loss | $ 14.3 | |
Retail | Southern California | ||
Real Estate [Line Items] | ||
Number of real estate properties sold | asset | 1 | |
Retail | United Kingdom | ||
Real Estate [Line Items] | ||
Number of real estate properties sold | asset | 6 | |
Retail | United Kingdom and Western United States | ||
Real Estate [Line Items] | ||
Impairment loss | $ 6.2 | |
Residential | HAWAII | ||
Real Estate [Line Items] | ||
Number of real estate properties sold | asset | 1 | |
Office | Ireland | ||
Real Estate [Line Items] | ||
Number of real estate properties sold | asset | 1 | |
Leases, Acquired-in-Place | ||
Real Estate [Line Items] | ||
Weighted average lease term | 7 years 1 month 6 days | |
Maximum | Building and Building Improvements | ||
Real Estate [Line Items] | ||
Estimated lives of buildings and building improvements | 40 years |
Real Estate and In-Place Leas_5
Real Estate and In-Place Lease Value - Schedule of Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Real Estate [Abstract] | |
2024 (remainder) | $ 81.3 |
2025 | 104 |
2026 | 101.6 |
2027 | 84.9 |
2028 | 67.9 |
Thereafter | 164.6 |
Total | $ 604.3 |
Unconsolidated Investments - Ad
Unconsolidated Investments - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) fund jointVenture | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Contributions to unconsolidated investments | $ 28.2 | ||
Distributions from unconsolidated investments | 16.7 | ||
Income (loss) from unconsolidated investments | (6.7) | ||
Income (loss) from other items | (14) | ||
Unconsolidated investments | 1,917.6 | $ 1,927 | |
Increase (decrease) in accrual for performance allocations | (31.1) | $ (75.3) | |
Distributions | 14 | ||
Equity income pickup | $ (6.7) | 5.7 | |
Number of joint ventures with unfulfilled capital commitments | jointVenture | 8 | ||
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Unfunded capital commitments | $ 178.2 | ||
Equity Method Investments Closed-End Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Unfunded capital commitments | $ 64.5 | ||
Number of closed-end funds with unfulfilled capital commitments | fund | 4 | ||
Recurring | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated investments | $ 1,917.6 | 1,927 | |
Various Comingled Funds And Separate Accounts | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 5% | ||
Various Comingled Funds And Separate Accounts | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 50% | ||
VHH | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of investment | $ 285 | $ 285.9 | |
Distributions | 3.8 | ||
Equity income pickup | 3.2 | ||
Fair value adjustments | 0.7 | ||
Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Increase (decrease) in accrual for performance allocations | $ (16.4) | $ (10.7) |
Unconsolidated Investments - Sc
Unconsolidated Investments - Schedule of Joint Ventures by Investment Type and Geographic Location (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | $ 2,059.6 | $ 2,069.1 |
Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 1,400.7 | 1,397.9 |
Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 467.7 | 477.9 |
United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 191.2 | 193.3 |
Multifamily | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 1,129.8 | 1,134.7 |
Multifamily | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 817.2 | 820.9 |
Multifamily | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 312.6 | 313.8 |
Multifamily | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Commercial | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 358.9 | 370.1 |
Commercial | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 69.3 | 71.6 |
Commercial | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 149.8 | 158.7 |
Commercial | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 139.8 | 139.8 |
Hotel | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 253.9 | 253 |
Hotel | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 253.9 | 253 |
Hotel | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Hotel | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 121 | 133.1 |
Funds | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 84.7 | 96.2 |
Funds | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 5.3 | 5.4 |
Funds | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 31 | 31.5 |
Residential and Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 196 | 178.2 |
Residential and Other | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 175.6 | 156.2 |
Residential and Other | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | 0 | 0 |
Residential and Other | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in joint ventures | $ 20.4 | $ 22 |
Unconsolidated Investments - _2
Unconsolidated Investments - Schedule of Joint Venture Cash Distributions by Investment Type and Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Operating | $ 14 | |
Investing | 2.7 | $ 15.2 |
Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 10.7 | |
Investing | 2.7 | |
Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 2.9 | |
Investing | 0 | |
United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0.4 | |
Investing | 0 | |
Multifamily | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 10.7 | |
Investing | 1.6 | |
Multifamily | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 8.7 | |
Investing | 1.6 | |
Multifamily | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 2 | |
Investing | 0 | |
Multifamily | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Commercial | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 2.7 | |
Investing | 0 | |
Commercial | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 1.8 | |
Investing | 0 | |
Commercial | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0.9 | |
Investing | 0 | |
Commercial | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Funds | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Funds | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Funds | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Residential and Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0.6 | |
Investing | 1.1 | |
Residential and Other | Western U.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0.2 | |
Investing | 1.1 | |
Residential and Other | Ireland | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0 | |
Investing | 0 | |
Residential and Other | United Kingdom | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating | 0.4 | |
Investing | $ 0 |
Unconsolidated Investments - _3
Unconsolidated Investments - Schedule of (Loss) Income from Unconsolidated Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Income from unconsolidated investments - operating performance | $ 7.8 | $ 14 |
Income from unconsolidated investments - fair value | 1.9 | 2.4 |
Loss from unconsolidated investments - performance allocations | (16.4) | (10.7) |
Total (loss) income from unconsolidated investments | $ (6.7) | $ 5.7 |
Fair Value Measurements and t_3
Fair Value Measurements and the Fair Value Option - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | $ 1,917.6 | $ 1,927 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 1,917.6 | 1,927 |
Total | 1,904.5 | 1,903.3 |
Recurring | Currency Derivative Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net currency derivative contracts | (13.1) | (23.7) |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 0 | 0 |
Total | 0 | 0 |
Recurring | Level 1 | Currency Derivative Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net currency derivative contracts | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 0 | 0 |
Total | (13.1) | (23.7) |
Recurring | Level 2 | Currency Derivative Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net currency derivative contracts | (13.1) | (23.7) |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unconsolidated investments | 1,917.6 | 1,927 |
Total | 1,917.6 | 1,927 |
Recurring | Level 3 | Currency Derivative Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net currency derivative contracts | $ 0 | $ 0 |
Fair Value Measurements and t_4
Fair Value Measurements and the Fair Value Option - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) year investment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Number of investments electing fair value option | investment | 72 | ||
Fair value option | $ 1,803 | $ 1,793.9 | |
Alternative investment | 114.6 | 133.1 | |
Gain (loss) on sale of real estate, net | 106.4 | $ 19.2 | |
Principal co-investments | 9.7 | 16.4 | |
Reported Value Measurement | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Long-term debt fair value | 5,300 | 5,300 | |
Level 2 | Estimate of Fair Value Measurement | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Long-term debt fair value | 4,800 | $ 4,800 | |
Interest Rate Swaps and Caps | Not Designated as Hedging Instrument | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Gain on derivatives | 9.7 | ||
Loss on derivatives | 2.9 | ||
Interest Rate Swaps | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Principal co-investments | 2.3 | $ (3.1) | |
Foreign Currency Translation | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Gross foreign currency translation loss on net assets | $ 17.4 | ||
Foreign Currency Translation | Euro | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of asset carrying values hedged | 96% | ||
Foreign Currency Translation | GBP | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of asset carrying values hedged | 93% | ||
Shelbourne Hotel | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Gain (loss) on sale of real estate, net | $ (8.7) | ||
Loss associated with foreign currency translation adjustments | 9.5 | ||
Gain on hedges that had been previously recognized to comprehensive income | $ 0.8 | ||
Measurement Input, Expected Term | Income approach - discounted cash flow | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Measurement inputs | year | 10 | ||
Measurement Input, Credit Spread | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Measurement inputs | 0.0200 | ||
Measurement Input, Credit Spread | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Measurement inputs | 0.0460 | ||
Measurement Input, Market Rate | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Measurement inputs | 0.046 | ||
Measurement Input, Market Rate | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Measurement inputs | 0.093 |
Fair Value Measurements and t_5
Fair Value Measurements and the Fair Value Option - Schedule of Changes in Level 3 Investments (Details) - Recurring - Level 3 - Equity Method Investments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,927 | $ 2,093.7 |
Unrealized and realized gains | 39.4 | 56.6 |
Unrealized and realized losses | (51) | (56.4) |
Contributions | 27.9 | 50.7 |
Distributions | (13) | (30.1) |
Foreign exchange | (12) | 11.3 |
Other | (0.7) | (0.3) |
Ending balance | $ 1,917.6 | $ 2,125.5 |
Fair Value Measurements and t_6
Fair Value Measurements and the Fair Value Option - Schedule of Range of Unobservable Inputs for Real Estate Assets (Details) - Level 3 | Mar. 31, 2024 |
Capitalization Rates | Income approach - discounted cash flow | Multifamily | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0500 |
Capitalization Rates | Income approach - discounted cash flow | Multifamily | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0720 |
Capitalization Rates | Income approach - discounted cash flow | Office | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0520 |
Capitalization Rates | Income approach - discounted cash flow | Office | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0750 |
Capitalization Rates | Income approach - discounted cash flow | Industrial | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0500 |
Capitalization Rates | Income approach - discounted cash flow | Industrial | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0630 |
Capitalization Rates | Income approach - discounted cash flow | Retail | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0650 |
Capitalization Rates | Income approach - discounted cash flow | Hotel | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0600 |
Capitalization Rates | Income approach - direct capitalization | Multifamily | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0430 |
Capitalization Rates | Income approach - direct capitalization | Multifamily | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0580 |
Capitalization Rates | Income approach - direct capitalization | Office | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0450 |
Capitalization Rates | Income approach - direct capitalization | Office | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0930 |
Capitalization Rates | Income approach - direct capitalization | Industrial | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0400 |
Capitalization Rates | Income approach - direct capitalization | Industrial | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0900 |
Discount Rates | Income approach - discounted cash flow | Multifamily | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0650 |
Discount Rates | Income approach - discounted cash flow | Multifamily | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0970 |
Discount Rates | Income approach - discounted cash flow | Office | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0730 |
Discount Rates | Income approach - discounted cash flow | Office | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0930 |
Discount Rates | Income approach - discounted cash flow | Industrial | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0630 |
Discount Rates | Income approach - discounted cash flow | Industrial | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0780 |
Discount Rates | Income approach - discounted cash flow | Retail | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0830 |
Discount Rates | Income approach - discounted cash flow | Hotel | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement inputs | 0.0830 |
Fair Value Measurements and t_7
Fair Value Measurements and the Fair Value Option - Schedule of Currency Derivative Contracts (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 EUR (€) | Mar. 31, 2024 GBP (£) | |
Derivative [Line Items] | ||||
Interest Expense | $ 64.7 | $ 62.3 | ||
Hedge gains reclassified | 9.7 | $ (1.2) | ||
Designated as Hedging Instrument | Currency Derivative Contracts | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 15.7 | |||
Hedge Liabilities | (28.8) | |||
OCI Gains (Losses) | 10.7 | |||
Income Statement Gains | 6.5 | |||
Cash Received | 0.3 | |||
Deferred tax expense | 0.8 | |||
Designated as Hedging Instrument | Currency Derivative Contracts | Level 2 | Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative [Line Items] | ||||
Hedge gains reclassified | 0.7 | |||
Deferred tax expense on hedge gains reclassified | 0.6 | |||
Designated as Hedging Instrument | Currency Derivative Contracts | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 1.6 | |||
Designated as Hedging Instrument | Derivatives Outstanding | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 15.7 | |||
Hedge Liabilities | (28.8) | |||
OCI Gains (Losses) | 10.9 | |||
Income Statement Gains | 6.5 | |||
Cash Received | 0 | |||
Designated as Hedging Instrument | Derivatives Outstanding | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 1.5 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, One | ||||
Derivative [Line Items] | ||||
Notional | € | € 287.5 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, One | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 4.4 | |||
Hedge Liabilities | (12.9) | |||
OCI Gains (Losses) | 0.2 | |||
Income Statement Gains | 6 | |||
Cash Received | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, One | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 1.1 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Two | KWE | ||||
Derivative [Line Items] | ||||
Notional | € | 40 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Two | Level 2 | KWE | ||||
Derivative [Line Items] | ||||
Hedge Assets | 0 | |||
Hedge Liabilities | (1.2) | |||
OCI Gains (Losses) | (0.8) | |||
Income Statement Gains | 0 | |||
Cash Received | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Two | Level 2 | KWE | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Three | KWE | ||||
Derivative [Line Items] | ||||
Notional | € | € 475 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Three | Level 2 | KWE | ||||
Derivative [Line Items] | ||||
Hedge Assets | 0 | |||
Hedge Liabilities | 0 | |||
OCI Gains (Losses) | 7.8 | |||
Income Statement Gains | 0 | |||
Cash Received | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Three | Level 2 | KWE | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Four | ||||
Derivative [Line Items] | ||||
Notional | £ | £ 475 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Four | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 11.3 | |||
Hedge Liabilities | (14.7) | |||
OCI Gains (Losses) | 3.7 | |||
Income Statement Gains | 0.5 | |||
Cash Received | 0 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Four | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 0.4 | |||
Designated as Hedging Instrument | Derivative Settled | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 0 | |||
Hedge Liabilities | 0 | |||
OCI Gains (Losses) | (0.2) | |||
Income Statement Gains | 0 | |||
Cash Received | 0.3 | |||
Designated as Hedging Instrument | Derivative Settled | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | 0.1 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Five | Level 2 | ||||
Derivative [Line Items] | ||||
Hedge Assets | 0 | |||
Hedge Liabilities | 0 | |||
OCI Gains (Losses) | (0.2) | |||
Income Statement Gains | 0 | |||
Cash Received | 0.3 | |||
Designated as Hedging Instrument | Foreign Exchange Contract, Five | Level 2 | Interest Expense | ||||
Derivative [Line Items] | ||||
Interest Expense | $ 0.1 |
Loans (Details)
Loans (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Committed capital | $ 2,600,000,000 | ||
Percentage discount on gross commitment | 4.50% | ||
Unfulfilled capital commitments | $ 92,200,000 | ||
Loan purchases and originations | 250,400,000 | $ 247,200,000 | |
Loan income | 136,400,000 | $ 132,200,000 | |
CECL loan reserve | 5,600,000 | 0 | |
Loan | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loan income | 8,100,000 | $ 3,700,000 | |
Kennedy Wilson | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Committed capital | $ 126,000,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Straight line rent receivable | $ 42.8 | $ 45.8 |
Goodwill | 23.9 | 23.9 |
Prepaid expenses | 13.6 | 13.1 |
Deferred taxes, net | 9.3 | 10 |
Right of use asset, net | 8.7 | 8.9 |
Leasing commissions, net of accumulated amortization of $12.5 and $13.4 at March 31, 2024 and December 31, 2023, respectively | 8.1 | 9 |
Other | 25.1 | 25 |
Other Assets | 182.4 | 187.5 |
Accumulated amortization of leasing commissions | 12.5 | 13.4 |
Above Market Leases | ||
Other Assets [Abstract] | ||
Above-market leases, net of accumulated amortization of $40.6 and $42.4 at March 31, 2024 and December 31, 2023, respectively | 2.1 | 2.5 |
Accumulated amortization of above-market leases | 40.6 | 42.4 |
Furniture and Equipment | ||
Other Assets [Abstract] | ||
Furniture and equipment net of accumulated depreciation of $21.2 and $30.8 at March 31, 2024 and December 31, 2023, respectively | 5.9 | 7 |
Accumulated depreciation of furniture and equipment | 21.2 | 30.8 |
Interest rate caps and swaps | ||
Other Assets [Abstract] | ||
Interest rate caps and swaps / Hedge assets | 27.2 | 29 |
Hedge assets | ||
Other Assets [Abstract] | ||
Interest rate caps and swaps / Hedge assets | $ 15.7 | $ 13.3 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 lease | |
Minimum | |
Real Estate [Line Items] | |
Remaining lease term | 2 years |
Maximum | |
Real Estate [Line Items] | |
Remaining lease term | 235 years |
Office | |
Real Estate [Line Items] | |
Number of leases | 3 |
Ground | |
Real Estate [Line Items] | |
Number of leases | 2 |
Other Assets - Schedule of Futu
Other Assets - Schedule of Future Minimum Rental Payments (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2024 (remainder) | $ 0.8 |
2025 | 1 |
2026 | 1.3 |
2027 | 1.4 |
2028 | 1.3 |
Thereafter | 30.8 |
Total undiscounted rental payments | 36.6 |
Less imputed interest | (28) |
Right of use asset, net | $ 8.6 |
Mortgage Debt - Schedule of Mor
Mortgage Debt - Schedule of Mortgage Debt (Details) - Mortgage debt - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | $ 2,786.2 | $ 2,854.6 |
Unamortized loan fees | (13.1) | (13.7) |
Total debt | 2,773.1 | 2,840.9 |
Unamortized discount (premium) | 1.3 | 1 |
Multifamily | Western U.S. | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | 1,744.4 | 1,711 |
Commercial | Western U.S. | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | 199 | 258.2 |
Commercial | United Kingdom | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | 476.2 | 509.9 |
Commercial | Ireland | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | 329.8 | 337.8 |
Commercial | Spain | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | $ 36.8 | $ 37.7 |
Mortgage Debt - Additional Info
Mortgage Debt - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) loan | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Weighted-average interest rate | 4.50% | 4.50% |
Number of loans refinanced | 1 | |
Number of real estate investments, principal pay downs on debt facilities | 2 | |
Number of mortgage loans out of compliance with financial covenant | 1 | |
Percentage of mortgage debt out of compliance with financial covenant | 0.01 | |
Interest reserve account funding related to covenant waiver | $ | $ 1 | |
Mortgage debt | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate | 5.18% | 5.10% |
Percent of property level debt with fixed rate | 64% | 65% |
Percent of property level debt with floating rate and interest caps | 33% | 35% |
Percent of property level debt with floating rate and without interest caps | 3% | 0% |
Weighted average cap strike price | 2.63% | |
Maturity of debt | 1 year 4 months 24 days |
Mortgage Debt - Schedule of Agg
Mortgage Debt - Schedule of Aggregate Maturities of Mortgage Loans (Details) - Mortgage debt - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
2024 (remainder) | $ 79.3 | |
2025 | 172 | |
2026 | 659.1 | |
2027 | 349.5 | |
2028 | 340.3 | |
Thereafter | 1,187.3 | |
Long-term debt, gross | 2,787.5 | |
Unamortized debt discount | (1.3) | $ (1) |
Unamortized loan fees | (13.1) | (13.7) |
Total debt | $ 2,773.1 | $ 2,840.9 |
KW Unsecured Debt - Schedule of
KW Unsecured Debt - Schedule of Unsecured Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
KW unsecured debt | ||
Debt Instrument [Line Items] | ||
Debt (excluding loan fees) | $ 2,051 | $ 1,953.5 |
Unamortized loan fees | (18.5) | (19.2) |
Total debt | 2,032.5 | 1,934.3 |
Unamortized debt premium | 3.1 | 3.1 |
Credit facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt (excluding loan fees) | 247.9 | 150.4 |
Senior notes | 2029 Notes | ||
Debt Instrument [Line Items] | ||
Debt (excluding loan fees) | 601.5 | 601.5 |
Senior notes | 2030 Notes | ||
Debt Instrument [Line Items] | ||
Debt (excluding loan fees) | 600 | 600 |
Senior notes | 2031 Notes | ||
Debt Instrument [Line Items] | ||
Debt (excluding loan fees) | $ 601.6 | $ 601.6 |
KW Unsecured Debt - Borrowings
KW Unsecured Debt - Borrowings Under Credit Facilities (Details) - Line of Credit - Revolving Credit Facility - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Jun. 12, 2023 | Mar. 25, 2020 | Apr. 30, 2024 | Mar. 31, 2024 | May 08, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | ||||||
Outstanding debt | $ 247,900,000 | $ 150,400,000 | ||||
Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt available to be drawn | $ 312,100,000 | |||||
A&R Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
Maturity extension period | 6 months | |||||
Maximum consolidated leverage ratio | 65% | |||||
Minimum fixed charge coverage ratio | 1.70 | |||||
Minimum tangible net worth | $ 1,700,000,000 | |||||
Covenant, percent of new equity offerings | 50% | |||||
Maximum recourse leverage ratio | 1.5 | |||||
Maximum secured recourse leverage ratio | 3.50% | |||||
Maximum liquidity value | $ 299,000,000 | |||||
Maximum adjusted secured leverage ratio | 55% | |||||
Minimum liquidity value | $ 75,000,000 | |||||
Outstanding debt | 247,900,000 | |||||
Debt available to be drawn | 252,100,000 | |||||
Average outstanding amount | $ 211,300,000 | |||||
Fixed charge coverage ratio, measurement period | 12 months | |||||
A&R Facility | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt paid down | $ 60,000,000 | |||||
A&R Facility | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
A&R Facility | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.50% |
KW Unsecured Debt - Senior Note
KW Unsecured Debt - Senior Notes (Details) - Senior Notes | Feb. 11, 2021 USD ($) | Mar. 31, 2024 | Aug. 23, 2021 USD ($) | Mar. 15, 2021 USD ($) |
Debt Instrument [Line Items] | ||||
Maximum balance sheet leverage ratio | 1.50 | 1.28 | ||
4.75% Senior Notes Due 2029 and 5% Senior Notes Due 2031 | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
Redemption option percentage | 40% | |||
4.75% Senior Notes Due 2029 and 5% Senior Notes Due 2031 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101% | |||
2029 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt | $ 500,000,000 | $ 100,000,000 | ||
Interest rate | 4.75% | |||
2031 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt | $ 500,000,000 | $ 100,000,000 | ||
Interest rate | 5% | |||
2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt | $ 600,000,000 | |||
Interest rate | 4.75% |
KWE Unsecured Bonds - Schedule
KWE Unsecured Bonds - Schedule of KWE Unsecured Bonds (Details) - KWE unsecured bonds - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 511.5 | $ 522.8 |
Unamortized debt discount | 0.9 | 1 |
KWE | ||
Debt Instrument [Line Items] | ||
Unamortized loan fees | (0.4) | (0.5) |
Total debt | 511.5 | 522.8 |
KWE | KWE Euro Medium Term Note Programme | ||
Debt Instrument [Line Items] | ||
Mortgage debt (excluding loan fees) | $ 511.9 | $ 523.3 |
KWE Unsecured Bonds - Additiona
KWE Unsecured Bonds - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) | |
KWE | Level 2 | Designated as Hedging Instrument | Foreign Exchange Contract, Three | |||
Debt Instrument [Line Items] | |||
OCI Gains (Losses) | $ 7.8 | ||
KWE | KWE unsecured bonds | |||
Debt Instrument [Line Items] | |||
Maximum percentage of total assets | 60% | 60% | |
Maximum ratio of consolidated secured indebtedness to total assets | 50% | 50% | |
Minimum interest coverage ratio | 1.50 | 1.50 | |
Minimum ratio of unencumbered assets to unsecured indebtedness | 125% | 125% | |
KWE | KWE unsecured bonds | KWE Euro Medium Term Note Programme | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of debt | $ 512.8 | € 475,000,000 | |
Mortgage debt (excluding loan fees) | $ 511.9 | $ 523.3 | |
Annual fixed coupon rate | 3.25% | 3.25% | |
Kennedy Wilson Europe Real Estate, Pllc | Level 2 | Designated as Hedging Instrument | Foreign Exchange Contract, Three | |||
Debt Instrument [Line Items] | |||
OCI Gains (Losses) | $ 7 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) $ / shares in Units, shares in Millions, $ in Millions | Jun. 16, 2023 USD ($) $ / shares shares |
Subsidiary, Sale of Stock [Line Items] | |
Warrant term | 7 years |
Number of shares issued in transaction (in shares) | shares | 12.3 |
Exercise price of warrants (in USD per share) | $ / shares | $ 16.21 |
Private Placement | |
Subsidiary, Sale of Stock [Line Items] | |
Annual dividend rate | 6% |
Private Placement | Preferred Stock | |
Subsidiary, Sale of Stock [Line Items] | |
Considerations received on issuance of stock | $ | $ 200 |
Equity - At-the-Market Equity O
Equity - At-the-Market Equity Offering Program (Details) - ATM Program - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | May 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||
Maximum consideration receivable on sale of stock | $ 200,000,000 | |
Sale of stock, shares issued (in shares) | 0 | |
Shelf registration remaining capacity | $ 169,900,000 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends Declared and Paid (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Declared | ||
Preferred Stock | $ 10.9 | $ 7.9 |
Common Stock | 33.1 | 33.4 |
Paid | ||
Preferred Stock | 10.9 | 7.9 |
Common Stock | $ 34.1 | $ 35.6 |
Equity - Share-Based Compensati
Equity - Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 5.2 | $ 7.1 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 5.2 | $ 7.1 |
Equity - Common Stock Repurchas
Equity - Common Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Nov. 04, 2020 | Nov. 03, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount of stock to repurchase | $ 500,000,000 | $ 250,000,000 | ||
Value of stock repurchased | $ 7,500,000 | |||
Restricted Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares withheld (in shares) | 129,011 | 1,046,430 | ||
Payments for employee tax obligations | $ 1,600,000 | $ 13,400,000 | ||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased and retired (in shares) | 882,454 | 0 | ||
Value of stock repurchased | $ 7,500,000 | |||
Shares acquired, average cost per share (in dollars per share) | $ 8.50 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 115,300,000 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 1,798.4 | |
Unrealized (losses) gains, arising during the period | (7) | |
Deferred taxes on unrealized losses (gains), arising during the period | (0.6) | |
Amounts reclassified out of AOCI during the period, gross | 8.8 | |
Amounts reclassified out of AOCI during the period, tax | (3.6) | |
Noncontrolling interests | 0.1 | |
Balance at end of period | 1,784.9 | |
Accumulated other comprehensive losses | 406.7 | $ 404.4 |
Total Accumulated Other Comprehensive Income Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (46) | |
Balance at end of period | (48.3) | |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (125.7) | |
Unrealized (losses) gains, arising during the period | (17.6) | |
Deferred taxes on unrealized losses (gains), arising during the period | 0.2 | |
Amounts reclassified out of AOCI during the period, gross | 9.5 | |
Amounts reclassified out of AOCI during the period, tax | (4.2) | |
Noncontrolling interests | 0.1 | |
Balance at end of period | (137.7) | |
Currency Derivative Contracts and Interest Rate Swaps | Currency Derivative Contracts | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 76.5 | |
Unrealized (losses) gains, arising during the period | 10.6 | |
Deferred taxes on unrealized losses (gains), arising during the period | (0.8) | |
Amounts reclassified out of AOCI during the period, gross | (0.7) | |
Amounts reclassified out of AOCI during the period, tax | 0.6 | |
Noncontrolling interests | 0 | |
Balance at end of period | 86.2 | |
Currency Derivative Contracts and Interest Rate Swaps | Interest Rate Swaps | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 3.2 | |
Unrealized (losses) gains, arising during the period | 0 | |
Deferred taxes on unrealized losses (gains), arising during the period | 0 | |
Amounts reclassified out of AOCI during the period, gross | 0 | |
Amounts reclassified out of AOCI during the period, tax | 0 | |
Noncontrolling interests | 0 | |
Balance at end of period | 3.2 | |
Noncontrolling Interest Holders | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive losses | $ 358.4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ 26.9 | $ (40.8) |
Weighted average shares outstanding for basic (in shares) | 138,472,579 | 137,949,018 |
Basic earnings (loss) per basic share (in dollars per share) | $ 0.19 | $ (0.30) |
Weighted average shares outstanding for diluted (in shares) | 138,628,139 | 137,949,018 |
Diluted earnings (loss) per diluted share (in dollars per share) | $ 0.19 | $ (0.30) |
Potentially dilutive securities (in shares) | 40,103,280 | 16,253,806 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Minimum | |
Segment Reporting Information [Line Items] | |
Average ownership interest in investments | 5% |
Maximum | |
Segment Reporting Information [Line Items] | |
Average ownership interest in investments | 50% |
Segment Information - Schedule
Segment Information - Schedule of Income Activity by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | ||
Revenue | ||||
Total revenue | $ 136.4 | $ 132.2 | ||
Principal co-investments | 9.7 | 16.4 | ||
Performance allocations | (16.4) | (10.7) | ||
Total (loss) income from unconsolidated investments | (6.7) | 5.7 | ||
Gain on sale of real estate, net | 106.4 | 19.2 | ||
Expenses | ||||
Performance allocation compensation | (5.5) | 1.6 | ||
General and administrative | 8.3 | 8.4 | ||
Depreciation and amortization | 38.9 | 39.4 | ||
Total expenses | 114.1 | 124.5 | ||
Non-operating income (expense) | ||||
Interest expense | (64.7) | (62.3) | ||
Gain on extinguishment of debt | 0.3 | 0.1 | ||
Other income (loss) | 6.8 | (3) | ||
(Provision for) benefit from income taxes | (26.7) | 3.9 | ||
Net income (loss) | 37.7 | (28.7) | ||
Net loss (income) attributable to noncontrolling interests | 0.1 | (4.2) | ||
Preferred dividends | (10.9) | (7.9) | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 26.9 | (40.8) | ||
Segment Reporting Information, Assets [Abstract] | ||||
Total assets | [1] | 7,680.3 | $ 7,712.1 | |
Rental | ||||
Revenue | ||||
Total revenue | 97.4 | 106.6 | ||
Expenses | ||||
Cost of goods and services | 37.2 | 36.6 | ||
Hotel | ||||
Revenue | ||||
Total revenue | 9.3 | 10.6 | ||
Expenses | ||||
Cost of goods and services | 7.6 | 7.9 | ||
Investment management fees | ||||
Revenue | ||||
Total revenue | 21.3 | 11 | ||
Loans | ||||
Revenue | ||||
Total revenue | 8.1 | 3.7 | ||
Compensation and related | ||||
Expenses | ||||
Cost of goods and services | 27.6 | 30.6 | ||
Other | ||||
Revenue | ||||
Total revenue | 0.3 | 0.3 | ||
Operating Segments | Consolidated | ||||
Revenue | ||||
Total revenue | 106.7 | 117.2 | ||
Principal co-investments | 0 | 0 | ||
Performance allocations | 0 | 0 | ||
Total (loss) income from unconsolidated investments | 0 | 0 | ||
Gain on sale of real estate, net | 106.4 | 19.2 | ||
Expenses | ||||
Performance allocation compensation | 0 | 0 | ||
General and administrative | 3.8 | 3.6 | ||
Depreciation and amortization | 38.9 | 39.4 | ||
Total expenses | 97.2 | 97.3 | ||
Non-operating income (expense) | ||||
Interest expense | (39.9) | (37.2) | ||
Gain on extinguishment of debt | 0.3 | 0.1 | ||
Other income (loss) | 2.7 | (1) | ||
(Provision for) benefit from income taxes | (12.2) | (1.8) | ||
Net income (loss) | 66.8 | (0.8) | ||
Net loss (income) attributable to noncontrolling interests | 0.1 | (4.2) | ||
Preferred dividends | 0 | 0 | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 66.9 | (5) | ||
Segment Reporting Information, Assets [Abstract] | ||||
Total assets | 5,160.5 | 5,196.3 | ||
Operating Segments | Consolidated | Rental | ||||
Revenue | ||||
Total revenue | 97.4 | 106.6 | ||
Expenses | ||||
Cost of goods and services | 37.2 | 36.6 | ||
Operating Segments | Consolidated | Hotel | ||||
Revenue | ||||
Total revenue | 9.3 | 10.6 | ||
Expenses | ||||
Cost of goods and services | 7.6 | 7.9 | ||
Operating Segments | Consolidated | Investment management fees | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Operating Segments | Consolidated | Loans | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Operating Segments | Consolidated | Compensation and related | ||||
Expenses | ||||
Cost of goods and services | 9.7 | 9.8 | ||
Operating Segments | Consolidated | Other | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Operating Segments | Co-Investments | ||||
Revenue | ||||
Total revenue | 29.4 | 14.7 | ||
Principal co-investments | 9.7 | 16.4 | ||
Performance allocations | (16.4) | (10.7) | ||
Total (loss) income from unconsolidated investments | (6.7) | 5.7 | ||
Gain on sale of real estate, net | 0 | 0 | ||
Expenses | ||||
Performance allocation compensation | (5.5) | 1.6 | ||
General and administrative | 2.9 | 3.2 | ||
Depreciation and amortization | 0 | 0 | ||
Total expenses | 5.5 | 13.2 | ||
Non-operating income (expense) | ||||
Interest expense | 0 | 0 | ||
Gain on extinguishment of debt | 0 | 0 | ||
Other income (loss) | 2.4 | 0 | ||
(Provision for) benefit from income taxes | 0 | 0 | ||
Net income (loss) | 19.6 | 7.2 | ||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | ||
Preferred dividends | 0 | 0 | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 19.6 | 7.2 | ||
Segment Reporting Information, Assets [Abstract] | ||||
Total assets | 2,310 | 2,316.3 | ||
Operating Segments | Co-Investments | Rental | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Expenses | ||||
Cost of goods and services | 0 | 0 | ||
Operating Segments | Co-Investments | Hotel | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Expenses | ||||
Cost of goods and services | 0 | 0 | ||
Operating Segments | Co-Investments | Investment management fees | ||||
Revenue | ||||
Total revenue | 21.3 | 11 | ||
Operating Segments | Co-Investments | Loans | ||||
Revenue | ||||
Total revenue | 8.1 | 3.7 | ||
Operating Segments | Co-Investments | Compensation and related | ||||
Expenses | ||||
Cost of goods and services | 8.1 | 8.4 | ||
Operating Segments | Co-Investments | Other | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Corporate | ||||
Revenue | ||||
Total revenue | 0.3 | 0.3 | ||
Principal co-investments | 0 | 0 | ||
Performance allocations | 0 | 0 | ||
Total (loss) income from unconsolidated investments | 0 | 0 | ||
Gain on sale of real estate, net | 0 | 0 | ||
Expenses | ||||
Performance allocation compensation | 0 | 0 | ||
General and administrative | 1.6 | 1.6 | ||
Depreciation and amortization | 0 | 0 | ||
Total expenses | 11.4 | 14 | ||
Non-operating income (expense) | ||||
Interest expense | (24.8) | (25.1) | ||
Gain on extinguishment of debt | 0 | 0 | ||
Other income (loss) | 1.7 | (2) | ||
(Provision for) benefit from income taxes | (14.5) | 5.7 | ||
Net income (loss) | (48.7) | (35.1) | ||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | ||
Preferred dividends | (10.9) | (7.9) | ||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | (59.6) | (43) | ||
Segment Reporting Information, Assets [Abstract] | ||||
Total assets | 209.8 | $ 199.5 | ||
Corporate | Rental | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Expenses | ||||
Cost of goods and services | 0 | 0 | ||
Corporate | Hotel | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Expenses | ||||
Cost of goods and services | 0 | 0 | ||
Corporate | Investment management fees | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Corporate | Loans | ||||
Revenue | ||||
Total revenue | 0 | 0 | ||
Corporate | Compensation and related | ||||
Expenses | ||||
Cost of goods and services | 9.8 | 12.4 | ||
Corporate | Other | ||||
Revenue | ||||
Total revenue | $ 0.3 | $ 0.3 | ||
[1]The assets and liabilities as of March 31, 2024 include $169.8 million (including cash held by consolidated investments of $4.8 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $134.6 million) and $71.7 million (including investment debt of $53.9 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2023 include $154.9 million (including cash held by consolidated investments of $3.6 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $121.8 million) and $101.4 million (including investment debt of $54.9 million), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Pre-tax book income | $ 64.4 | $ (32.6) |
Income tax provision | $ 26.7 | $ (3.9) |
Guarantor and Non-Guarantor F_3
Guarantor and Non-Guarantor Financial Statements - Schedule of Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||||
Cash and cash equivalents | $ 541.9 | $ 313.7 | |||
Accounts receivable | 42.5 | 57.3 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 4,603.5 | 4,837.3 | |||
Unconsolidated investments | 2,059.6 | 2,069.1 | |||
Investments in and advances to consolidated subsidiaries | 0 | 0 | |||
Loan purchases and originations, net of allowance for credit losses | 250.4 | 247.2 | |||
Other assets | 182.4 | 187.5 | |||
Total assets | [1] | 7,680.3 | 7,712.1 | ||
Liabilities | |||||
Accounts payable | 15.5 | 17.9 | |||
Accrued expenses and other liabilities | 562.8 | 597.8 | |||
Total liabilities | [1] | 5,895.4 | 5,913.7 | ||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,742.6 | 1,755.1 | |||
Noncontrolling interests | 42.3 | 43.3 | |||
Total equity | 1,784.9 | 1,798.4 | $ 1,971.4 | $ 2,010.4 | |
Total liabilities and equity | 7,680.3 | 7,712.1 | |||
Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 2,773.1 | 2,840.9 | |||
KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 2,032.5 | 1,934.3 | |||
KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | 511.5 | 522.8 | |||
Reportable Legal Entities | Parent | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |||
Unconsolidated investments | 0 | 0 | |||
Investments in and advances to consolidated subsidiaries | 1,787 | 1,800.4 | |||
Loan purchases and originations, net of allowance for credit losses | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 1,787 | 1,800.4 | |||
Liabilities | |||||
Accounts payable | 0 | 0 | |||
Accrued expenses and other liabilities | 44.4 | 45.3 | |||
Total liabilities | 44.4 | 45.3 | |||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,742.6 | 1,755.1 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 1,742.6 | 1,755.1 | |||
Total liabilities and equity | 1,787 | 1,800.4 | |||
Reportable Legal Entities | Parent | Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Parent | KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Parent | KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | 0 | ||||
Reportable Legal Entities | Kennedy-Wilson, Inc. | |||||
Assets | |||||
Cash and cash equivalents | 53.6 | 73.3 | |||
Accounts receivable | 0.8 | 0.9 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |||
Unconsolidated investments | 13.7 | 14.6 | |||
Investments in and advances to consolidated subsidiaries | 3,985.7 | 3,938.2 | |||
Loan purchases and originations, net of allowance for credit losses | 0.7 | 0.7 | |||
Other assets | 62.3 | 59.4 | |||
Total assets | 4,116.8 | 4,087.1 | |||
Liabilities | |||||
Accounts payable | 0.9 | 0.5 | |||
Accrued expenses and other liabilities | 296.4 | 351.9 | |||
Total liabilities | 2,329.8 | 2,286.7 | |||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 1,787 | 1,800.4 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 1,787 | 1,800.4 | |||
Total liabilities and equity | 4,116.8 | 4,087.1 | |||
Reportable Legal Entities | Kennedy-Wilson, Inc. | Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Kennedy-Wilson, Inc. | KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 2,032.5 | 1,934.3 | |||
Reportable Legal Entities | Kennedy-Wilson, Inc. | KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 125.5 | 99.4 | |||
Accounts receivable | 21.5 | 22 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 1,494 | 1,522.3 | |||
Unconsolidated investments | 660 | 652 | |||
Investments in and advances to consolidated subsidiaries | 2,539.6 | 2,511.6 | |||
Loan purchases and originations, net of allowance for credit losses | 218.1 | 214.8 | |||
Other assets | 50.9 | 51.6 | |||
Total assets | 5,109.6 | 5,073.7 | |||
Liabilities | |||||
Accounts payable | 5.9 | 6 | |||
Accrued expenses and other liabilities | 110.3 | 91.5 | |||
Total liabilities | 1,123.9 | 1,135.5 | |||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 3,985.7 | 3,938.2 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 3,985.7 | 3,938.2 | |||
Total liabilities and equity | 5,109.6 | 5,073.7 | |||
Reportable Legal Entities | Guarantor Subsidiaries | Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 1,007.7 | 1,038 | |||
Reportable Legal Entities | Guarantor Subsidiaries | KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Guarantor Subsidiaries | KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Non-guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 362.8 | 141 | |||
Accounts receivable | 20.2 | 34.4 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 3,109.5 | 3,315 | |||
Unconsolidated investments | 1,385.9 | 1,402.5 | |||
Investments in and advances to consolidated subsidiaries | 0 | 0 | |||
Loan purchases and originations, net of allowance for credit losses | 31.6 | 31.7 | |||
Other assets | 69.2 | 76.5 | |||
Total assets | 4,979.2 | 5,001.1 | |||
Liabilities | |||||
Accounts payable | 8.7 | 11.4 | |||
Accrued expenses and other liabilities | 111.7 | 109.1 | |||
Total liabilities | 2,397.3 | 2,446.2 | |||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | 2,539.6 | 2,511.6 | |||
Noncontrolling interests | 42.3 | 43.3 | |||
Total equity | 2,581.9 | 2,554.9 | |||
Total liabilities and equity | 4,979.2 | 5,001.1 | |||
Reportable Legal Entities | Non-guarantor Subsidiaries | Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 1,765.4 | 1,802.9 | |||
Reportable Legal Entities | Non-guarantor Subsidiaries | KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Reportable Legal Entities | Non-guarantor Subsidiaries | KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | 511.5 | 522.8 | |||
Elimination | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization | 0 | 0 | |||
Unconsolidated investments | 0 | 0 | |||
Investments in and advances to consolidated subsidiaries | (8,312.3) | (8,250.2) | |||
Loan purchases and originations, net of allowance for credit losses | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (8,312.3) | (8,250.2) | |||
Liabilities | |||||
Accounts payable | 0 | 0 | |||
Accrued expenses and other liabilities | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Equity | |||||
Kennedy-Wilson Holdings, Inc. shareholders' equity | (8,312.3) | (8,250.2) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (8,312.3) | (8,250.2) | |||
Total liabilities and equity | (8,312.3) | (8,250.2) | |||
Elimination | Mortgage debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Elimination | KW unsecured debt | |||||
Liabilities | |||||
Long-term debt | 0 | 0 | |||
Elimination | KWE unsecured bonds | |||||
Liabilities | |||||
Long-term debt | $ 0 | $ 0 | |||
[1]The assets and liabilities as of March 31, 2024 include $169.8 million (including cash held by consolidated investments of $4.8 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $134.6 million) and $71.7 million (including investment debt of $53.9 million), respectively, from consolidated variable interest entities ("VIEs"). The assets and liabilities as of December 31, 2023 include $154.9 million (including cash held by consolidated investments of $3.6 million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $121.8 million) and $101.4 million (including investment debt of $54.9 million), respectively, from VIEs. These assets can only be used to settle obligations of the consolidated VIEs, and the liabilities do not have recourse to the Company. |
Guarantor and Non-Guarantor F_4
Guarantor and Non-Guarantor Financial Statements - Schedule of Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | $ 136.4 | $ 132.2 |
Income (loss) from unconsolidated investments | (6.7) | 5.7 |
Gain on sale of real estate, net | 106.4 | 19.2 |
Total expenses | 114.1 | 124.5 |
(Loss) income from consolidated subsidiaries | 0 | 0 |
Interest expense | (64.7) | (62.3) |
(Loss) gain on early extinguishment of debt | 0.3 | 0.1 |
Other income (loss) | 6.8 | (3) |
Income (loss) before (provision for) benefit from income taxes | 64.4 | (32.6) |
Benefit from (provision for) income taxes | (26.7) | 3.9 |
Net income (loss) | 37.7 | (28.7) |
Net loss (income) attributable to the noncontrolling interests | 0.1 | (4.2) |
Preferred dividends | (10.9) | (7.9) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 26.9 | (40.8) |
Reportable Legal Entities | Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 0 | 0 |
Income (loss) from unconsolidated investments | 0 | 0 |
Gain on sale of real estate, net | 0 | 0 |
Total expenses | 5.2 | 7.6 |
(Loss) income from consolidated subsidiaries | 42.8 | (21.2) |
Interest expense | 0 | 0 |
(Loss) gain on early extinguishment of debt | 0 | 0 |
Other income (loss) | 0.1 | 0.1 |
Income (loss) before (provision for) benefit from income taxes | 37.7 | (28.7) |
Benefit from (provision for) income taxes | 0 | 0 |
Net income (loss) | 37.7 | (28.7) |
Net loss (income) attributable to the noncontrolling interests | 0 | 0 |
Preferred dividends | (10.9) | (7.9) |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 26.8 | (36.6) |
Reportable Legal Entities | Kennedy-Wilson, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 0 | 0.1 |
Income (loss) from unconsolidated investments | 0.3 | 0 |
Gain on sale of real estate, net | 0.8 | 0 |
Total expenses | 14.8 | 17 |
(Loss) income from consolidated subsidiaries | 86.1 | 17.3 |
Interest expense | (24.8) | (25.2) |
(Loss) gain on early extinguishment of debt | 0 | 0 |
Other income (loss) | 9.6 | (2.1) |
Income (loss) before (provision for) benefit from income taxes | 57.2 | (26.9) |
Benefit from (provision for) income taxes | (14.4) | 5.7 |
Net income (loss) | 42.8 | (21.2) |
Net loss (income) attributable to the noncontrolling interests | 0 | 0 |
Preferred dividends | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 42.8 | (21.2) |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 62.9 | 56.4 |
Income (loss) from unconsolidated investments | (10) | (26.9) |
Gain on sale of real estate, net | 21.6 | 3.7 |
Total expenses | 37.1 | 44 |
(Loss) income from consolidated subsidiaries | 65.4 | 37.5 |
Interest expense | (10.7) | (10.8) |
(Loss) gain on early extinguishment of debt | 0.3 | (0.5) |
Other income (loss) | (6.1) | 0.9 |
Income (loss) before (provision for) benefit from income taxes | 86.3 | 16.3 |
Benefit from (provision for) income taxes | (0.2) | 1 |
Net income (loss) | 86.1 | 17.3 |
Net loss (income) attributable to the noncontrolling interests | 0 | 0 |
Preferred dividends | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 86.1 | 17.3 |
Reportable Legal Entities | Non-guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 73.5 | 75.7 |
Income (loss) from unconsolidated investments | 3 | 32.6 |
Gain on sale of real estate, net | 84 | 15.5 |
Total expenses | 57 | 55.9 |
(Loss) income from consolidated subsidiaries | 0 | 0 |
Interest expense | (29.2) | (26.3) |
(Loss) gain on early extinguishment of debt | 0 | 0.6 |
Other income (loss) | 3.2 | (1.9) |
Income (loss) before (provision for) benefit from income taxes | 77.5 | 40.3 |
Benefit from (provision for) income taxes | (12.1) | (2.8) |
Net income (loss) | 65.4 | 37.5 |
Net loss (income) attributable to the noncontrolling interests | 0.1 | (4.2) |
Preferred dividends | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | 65.5 | 33.3 |
Elimination | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 0 | 0 |
Income (loss) from unconsolidated investments | 0 | 0 |
Gain on sale of real estate, net | 0 | 0 |
Total expenses | 0 | 0 |
(Loss) income from consolidated subsidiaries | (194.3) | (33.6) |
Interest expense | 0 | 0 |
(Loss) gain on early extinguishment of debt | 0 | 0 |
Other income (loss) | 0 | 0 |
Income (loss) before (provision for) benefit from income taxes | (194.3) | (33.6) |
Benefit from (provision for) income taxes | 0 | 0 |
Net income (loss) | (194.3) | (33.6) |
Net loss (income) attributable to the noncontrolling interests | 0 | 0 |
Preferred dividends | 0 | 0 |
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders | $ (194.3) | $ (33.6) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Line of Credit - Revolving Credit Facility $ in Millions | 1 Months Ended |
May 08, 2024 USD ($) | |
Subsequent Event [Line Items] | |
Repayments of long-term debt | $ 60 |
Long-term debt | 187.9 |
Remaining borrowing capacity | $ 312.1 |