Annual Report 2024
Kennedy Wilson is a leading real estate investment
company with $28 billion of assets under
management in high-growth markets across the
United States, the UK and Ireland. We focus primarily
on rental housing, with over 60,000 multifamily and
student housing units owned by the company or
financed through our growing credit platform.
Drawing on decades of experience, our relationship-
oriented team excels at identifying opportunities
and building value through market cycles, with more
than $60 billion in total transactions closed across
the property spectrum since going public in 2009.
Kennedy Wilson owns, operates and builds real estate
within our high-quality, core real estate portfolio
and through our investment management platform,
where we target opportunistic investments alongside
our partners.
470
Global
Real Estate
Investments
38k
Multifamily Units
25M
Industrial, Retail
and Office
Square Feet
$28B
Assets Under
Management
See page 67 for certain definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP
measures. Information shown as of December 31, 2024, except where indicated.
Axle
Seattle, Washington
KENNEDY WILSON ANNUAL REPORT 2024
3
2
KENNEDY WILSON ANNUAL REPORT 2024
Dear Fellow
Shareholders,
It has been fi ve years since March 2020,
when the global pandemic began and
profoundly disrupted so many aspects
of daily life. During this unprecedented
crisis, not only was there a widespread
shift to remote work, but governments
worldwide implemented expansive
monetary policies, which ultimately
led to the highest infl ation rate in four
decades and the highest interest rates in
22 years. Against this uncertain backdrop,
our talented team at Kennedy Wilson
proved their resilience and collaborated
to tackle each challenge, further
strengthening our global business. These
circumstances narrowed our focus to
our core businesses and proved our
fundamental strengths of identifying and
acting on opportunities through volatility.
2024 was another strong year of
executing on all of our key strategic
initiatives, including growing the
investment management business,
increasing baseline EBITDA, expanding
$540M
Adjusted EBITDA,
an Increase of
184% YOY
60%
Growth in Investment
Management Fees
to a Record
$100 Million
73%
of AUM is Comprised
of Rental Housing and
Industrial Investments
vs. 64% in 2023
2024 Performance Highlights
strategic partnerships, simplifying our
business through recycling capital
from non-core sales into strategic
growth initiatives and managing our
balance sheet. Growing the investment
management business is a key long-
term priority where we made signifi cant
progress in 2024. We achieved record
levels of fee-bearing capital totaling $8.8
billion and increased our investment
management fees to a record $100
million in 2024, which represented 60%
growth year-over-year.
As a result, Kennedy Wilson’s real estate
assets under management hit a record
$28 billion in 2024, up from $25 billion in
2023. We deployed $4 billion of capital
into new investments, 90% of which was
allocated to new loan originations under
our real estate credit business for the
construction of market-rate multifamily
and student housing projects across the
U.S., and our new single-family homes for
rent initiative in the UK. During 2024, we
also nearly tripled our adjusted EBITDA
year-over-year for a total of $540 million,
compared to $190 million in 2023. We did
all of this while strengthening our balance
sheet by reducing our unsecured debt by
$266 million with early paydowns.
We believe the strongest opportunities
for sustained growth and value creation
across our global portfolio lie in our
core equity businesses – rental housing
and industrial investments – and the
continued expansion of our credit
platform. Consistent with this view, 73% of
our real estate assets under management
are comprised of rental housing, credit
extended to the construction of rental
housing, and industrial investments,
compared to 64% in 2023.
William J. McMorrow
Chairman and
Chief Executive Offi cer
Sandford Lodge
Dublin, Ireland
KENNEDY WILSON ANNUAL REPORT 2024
5
4
KENNEDY WILSON ANNUAL REPORT 2024
Our Core Businesses
Today, we are exceptionally well
positioned, with 66% of our
stabilized portfolio located in the
U.S. and 32% in the UK and
Ireland. Our portfolio strategy is
centered around investing in top-
tier locations within our three core
sectors: rental housing, real estate
credit (primarily construction loans
to high-quality institutional sponsors
to build rental housing and student
housing assets), and industrial.
Rental Housing
We are focused on rental housing equity
investments in markets with strong
education systems and universities,
growing employment opportunities, a
talented labor pool and great lifestyle
benefits. Today, we currently have an
equity ownership interest in 40,000
units (including those under contract)
and are financing 30,000 units of new
construction market-rate multifamily
and student housing, with approximately
two thirds of our estimated annual NOI
generated from such sources.
Renter fundamentals are continuing to
strengthen as there is a chronic shortage
of affordable housing in the U.S., UK and
Ireland. Our asset management team
continues to drive strong occupancy rates
across our multifamily portfolio, which
ended the year at 95% occupancy.
At the 100% level on our 40,000 units,
total revenue is approximately $800
million. Given our 55% ownership
of this portfolio, our share of NOI is
approximately $300 million.
In the U.S., the Mountain West is
currently our largest apartment region.
Our properties in this region are
benefiting from revenue growth as well
as a reduction in operating expenses
driven by declining real estate taxes,
lower property insurance costs and
better management of payroll at the
property level. In the Pacific Northwest,
particularly in our suburban Seattle
market, we are seeing improvement
in our revenue across our apartment
portfolio as employees return to the
geographies where their companies
are headquartered. We expect that
employment and economic growth
driven by tech companies allocating
resources to artificial intelligence as
well as return-to-office mandates in the
Pacific Northwest and across Northern
California will continue to support high
levels of occupancy and rent growth.
Kennedy Wilson and Vintage Housing’s
U.S. affordable and senior housing
strategy also continues its growth. Our
investment in this strategy began through
the creation of a partnership with Vintage
Housing in 2015 and the acquisition of
interest in a 5,500-unit portfolio, which
has since grown to approximately 13,000
units through new construction by the
very talented Vintage Housing team.
Our peak capital investment was $80
million, and we have received $241
million of cash distributions. In 2024, we
achieved 6% growth in NOI year-over-
year, and are focused on identifying
additional opportunities to scale our
affordable housing footprint to meet the
extraordinary demand for senior and
affordable housing we are seeing in our
Western U.S. markets.
95% Multifamily Occupancy
Our talented asset management team continues to drive strong
occupancy rates across our multifamily portfolio, which ended
the year at 95% occupancy and generates approximately
$300 million in estimated annual NOI.
38° North
Santa Rosa, California
4
KENNEDY WILSON ANNUAL REPORT 2024
The Bristol at Southport
Renton, WA
KENNEDY WILSON ANNUAL REPORT 2024
7
6
KENNEDY WILSON ANNUAL REPORT 2024
In Ireland, we own 3,500 highly
amenitized apartment units primarily
in Dublin, where there is a significant
structural undersupply of housing
combined with continued employment
growth and an extremely strong
economy. Ireland is one of the few
countries in the world generating a
positive budget surplus and currently
has one of the lowest 10-year bond
rates in the developed world.
In 2024, we were able to leverage our
expertise in rental housing development
in Ireland to launch a new UK single-
family rental platform alongside Canada
Pension Plan Investment Board (CPP
Investments), one of the world’s largest
global investors with approximately $425
billion in assets under management.
The joint venture with CPP Investments
is initially targeting $1.3 billion in single-
family rental properties. We are off to a
strong start in this new platform, with
total purchases to date amounting
to $400 million and near-term
opportunities to continue scaling this
business. We expect that our targeted
$1.3 billion in capital deployment will
result in the venture initially owning up
to approximately 4,000 single-family
homes over the next 18 to 24 months.
The Cornerstone
Dublin, Ireland
Station by Vintage
Covington, Washington
Kennedy Wilson’s affordable
housing strategy continues to
be a source of strength in our
multifamily portfolio, with
6% growth in NOI for the year.
Our Portfolio
350 Properties • 120 Loans
MID
ATLANTIC
NORTHERN
CALIFORNIA
SOUTHERN
CALIFORNIA
MOUNTAIN
WEST
PACIFIC
NORTHWEST
HAWAII
MIDWEST
SOUTH
EAST
TEXAS
IRELAND
UNITED
KINGDOM
U.S. PROPERTIES & LOAN COMMITMENTS
EUROPEAN PROPERTIES
KENNEDY WILSON ANNUAL REPORT 2024
9
8
KENNEDY WILSON ANNUAL REPORT 2024
Credit Platform
Our credit platform saw significant
growth in 2024, as we originated $3.5
billion of new construction loans and
solidified Kennedy Wilson as a major
player in the U.S. construction lending
business focused on multifamily projects
and student housing. Since acquiring a
loan portfolio from a regional bank in
mid-2023, we have closed approximately
$5 billion in new loans. The sponsors of
these projects are some of the premier
real estate companies in the U.S.
As a refresher, in mid-2023, we acquired
a high-quality, $4.1 billion construction
loan portfolio at a meaningful discount
from a U.S. regional bank in an off-market
transaction. In addition to acquiring this
high-quality portfolio, the team of 40
professionals who originated these loans
joined Kennedy Wilson to significantly
enhance our credit platform and expand
our reach into new markets across the
country. The thought process was to
acquire the business with high-quality
assets and an exceptional team, and then
take advantage of the void in the market
as regional banks and many commercial
banks pulled back on lending. Our
strategy proved spot on. Twenty-two of
the original 65 loans acquired in 2023
were paid off in full in 2024, including the
discount, and we expect the remainder
of these loans to be paid off at par over
the next two years.
The team’s growth has carried over into
2025 with $1.3 billion in new originations
already completed and another $1 billion
in closing. In total, our loan commitments
are nearly $11 billion today, including
those in closing and our bridge lending
portfolio, up 65% from 2023, and we are
now among the largest student housing
construction lenders in the country, with a
student housing portfolio that has grown
to $1.6 billion. We are currently originating
loans at 50-65% loan to cost, with an
average loan size of approximately $100
million. The total loan portfolio currently
has $5 billion in outstandings as our
borrowers are generally required to put
their equity into the project before we
fund the first dollar of our loans.
As many banks and other non-bank
lenders continue to sit on the sidelines,
we remain confident in our ability to
continue generating high-quality, low-risk
credit opportunities.
In April 2025, we expanded our credit
platform through a newly announced
partnership with Tokyu Land US
Corporation, one of Japan’s largest real
estate developers, to launch a new
preferred equity and mezzanine real
estate investment platform. Kennedy
Wilson will invest 10% of the capital in
this new venture with a target investment
size of over $200 million. Our focus will
be originating new preferred equity and
mezzanine investments with high-quality
sponsors of multifamily and industrial
properties located throughout the
United States. The platform builds on
our success in the construction lending
business and expands our capabilities
across all parts of the capital structure.
In total, commitments are nearly
$11 billion today, including loans
in closing, up 65% from 2023,
with $5 billion of loans outstanding.
$1.6B in Student Housing Loans
Today, we are among the largest student housing construction
lenders in the country, with a portfolio that has grown to
$1.6 billion in student housing loans.
Mosaic
North Las Vegas, Nevada
10
KENNEDY WILSON ANNUAL REPORT 2024
Industrial Business
Our global logistics portfolio,
concentrated in the UK and Ireland,
now totals 12.4 million square feet
across 117 properties with a total
AUM of $2.2 billion. The platform is
benefiting from long-term growth in
e-commerce and the need to have
industrial properties located in close
proximity to population centers.
A common characteristic of our
industrial asset acquisitions is the
short-term duration of the in-place
leases that provide an opportunity to
enter into new leases at higher market
rates. We are continuing to see strong
leasing demand with our team closing
60 lease transactions in 2024. Our
team is currently signing leases at 36%
higher rents versus expiring leases, and
market rents are still well above our
in-place rents.
117
Properties
$2.2B
AUM
12.4M
Square Feet
2024 Global Logistics Portfolio
Horndon Industrial Park
Essex, UK
Leighton Buzzard
Bedfordshire, UK
Vaughan Park
Tipton, UK
KENNEDY WILSON ANNUAL REPORT 2024
11
$15M Estimated Annual NOI
2024 marked the completion of the development of Anacapa Canyon.
Today, the community is 96% occupied, with the market-rate multifamily
portion of the project generating $15 million in estimated annual NOI,
making it one of the highest income-generating properties in Kennedy
Wilson’s global portfolio.
Anacapa Canyon
Camarillo, California
KENNEDY WILSON ANNUAL REPORT 2024
13
12
KENNEDY WILSON ANNUAL REPORT 2024
Development Completions
Our global development group continues
to deliver top quality, energy efficient
projects. In 2024, we completed the
stabilization of several assets that we
recently built resulting in the addition of
a total of $29 million to our estimated
annual NOI. We expect further estimated
annual NOI increases at project
stabilization from the company’s lease-
up and development portfolio, with
minimal capital requirements from
Kennedy Wilson. These projects bring
us close to the finish line on a 10-year
development pipeline totaling $5 billion
focused largely on new housing that
required significant amounts of equity
capital from Kennedy Wilson. We have
essentially completed that pipeline, with
only one remaining project currently
under construction.
2024 marked the completion of the
development of Anacapa Canyon, a
589-unit master planned community on
the western edge of the Santa Monica
Mountains in Camarillo, California,
designed to provide a range of market
rate and senior affordable housing
options. The project is a continuation
of a unique public-private partnership
that the multifamily team launched
with California State University Channel
Islands in 2016 through the acquisition
of the adjacent 386-unit University
Glen community. Anacapa Canyon,
which covers approximately 30 acres
adjacent to University Glen, includes
310 market-rate apartments, 109 for-
sale homes and townhomes, and 170
senior affordable apartments that were
developed by Vintage Housing using the
same construction company as Kennedy
Wilson to build the market rate units. The
single-family lots were sold to Comstock
Homes with a continuing Kennedy Wilson
profit sharing participation as Comstock
builds and sells the single-family homes.
This portion of the Anacapa Canyon
project is almost entirely constructed and
sold out, with the final closings expected
to occur in the fourth quarter of 2025.
Today, the combined University Glen
community is 96% occupied, with the
market-rate multifamily portion of
the project generating $15 million in
estimated annual NOI, making it one of
the highest income-generating properties
in Kennedy Wilson’s global portfolio.
In Dublin, our six-acre mixed use
development Coopers Cross is a
combination of 471 apartment units and
400,000 square feet of first-class, highly
amenitized office space. The apartment
portion is fully stabilized and 100% leased.
In 2024, we welcomed Wells Fargo as
our first client with their new lease of
26,000 square feet in the office portion
of the development. We expect that the
office portion will be fully leased over
the next 24 months as there continues
to be strong demand for Class-A office
occupancy in Dublin.
2024 also marked the completion of the
second and third phases of construction
at 38° North in Santa Rosa, California,
bringing the total unit count to 322 units
that generate approximately $7 million
of NOI. In Dublin, our final ground-up
construction project, Cornerstone,
includes 232 units and 27,000 square feet
of ground-floor retail and is expected to
stabilize in the second quarter of 2025.
Coopers Cross
Dublin, Ireland
38° North
Santa Rosa, California
KENNEDY WILSON ANNUAL REPORT 2024
15
14
KENNEDY WILSON ANNUAL REPORT 2024
Balance Sheet and
Asset Recycling
A key focus of the company is to continue
strengthening our balance sheet by the
sale of non-core assets, with the proceeds
used to reduce unsecured debt and
property-level debt. In 2024, we generated
approximately $571 million in cash
from asset sales and loan repayments,
which in turn generated $160 million in
consolidated gains on assets. This enabled
us to repay a total of $266 million of
unsecured debt, including repaying $214
million of KWE bonds and $52 million on
our revolving credit facility. Our plan for
2025 is to reduce our unsecured debt
by a further $400 million through the
continued sale of non-core assets.
Of note, we anticipated that high inflation
was not transitory and, in fact, would
produce much higher interest rates.
In 2021, we began in earnest buying
interest rate caps, extending term on our
financings and fixing interest rates on
property-level debt. These programs have
continued each year and through 2024, as
we successfully renewed our $550 million
corporate unsecured line of credit with an
expanded banking syndicate. Also, in 2024,
we refinanced $1.3 billion of property-
level debt with negligible increases in
interest costs. Our share of total debt
is currently 97% fixed or hedged, with a
weighted average maturity of 4.9 years
and a weighted average effective interest
rate of 4.6%. The effective rate includes
the benefit from our interest rate hedging
strategy, which produced a cash benefit
of $41 million in 2024.
We recently completed a $510 million
property-level financing secured by 1,689
units across five multifamily properties
in Dublin and Cork that form part of our
50/50 Irish joint venture with AXA IM
Alts. This was the largest property-level
financing in Kennedy Wilson’s history
and represents about 40% of the total
secured debt maturities for Kennedy
Wilson in 2025. Thirty-five banks offered
to participate in all or part of this
financing, which enabled us to agree to
very competitive terms on a five-year
floating rate loan at 4.2% (3 month Euribor
+ 1.95%). The terms of the loan and the
strong interest we received highlight the
high levels of liquidity in the European
debt market, the quality of our Irish
multifamily portfolio and the embedded
equity value of the assets.
The Grange
Dublin, Ireland
Representing the largest property-level refinancing in
Kennedy Wilson’s history, we recently secured a $510 million,
five-year facility secured by five stabilized multifamily assets
located primarily in Dublin that form part of our 50/50 Irish
multifamily joint venture with AXA formed in 2018.
Sandford Lodge
Dublin, Ireland
16
KENNEDY WILSON ANNUAL REPORT 2024
KENNEDY WILSON ANNUAL REPORT 2024
17
Strategic Partnerships
and Fundraising
Reflecting our focus on capital raising, we
saw meaningful growth in our investment
management platform last year with
the addition of several new institutional
partners from the U.S., Asia, Canada and
Europe. We also successfully closed
fundraising on our seventh discretionary
commingled fund, securing $400
million in discretionary capital for U.S.
investments from a top-tier group of
limited partners, including capital from
major companies based in Asia.
As a result, our fee-bearing capital
reached a record $8.8 billion, and our
investment management fees grew by
60% year-over-year to approximately
$100 million in 2024.
We are honored to partner with many
prestigious global institutional investors
including AXA, CPP Investments, Security
Benefit, sovereign wealth funds and
many others. Our biggest partner over the
last 15 years has been Fairfax Financial,
led by Prem Watsa, Wade Burton, Peter
Clarke and their outstanding team.
Fairfax is one of the leading property
casualty insurance companies in the
world with assets of approximately $100
billion and 22,000 employees. We have
invested approximately $18 billion in
various strategies over the last 15 years
and generated an internal rate of return
of 22% on our realized investments.
Alongside this investment platform,
Fairfax continues to be our largest
shareholder, and we are extremely
grateful to Prem, Wade, Peter and the
entire Fairfax management team for their
trust and support of Kennedy Wilson.
Looking ahead, we will remain focused
on capital raising across North America,
Asia, Europe and the Middle East. We
believe that these capital raising and
capital deployment initiatives will result
in our ability to grow our investment
management fees by approximately
15% to 20% per annum over the next
several years.
In 2024, our fee-bearing capital
reached a record $8.8 billion,
and our investment management
fees grew by 60% year-over-year
to approximately $100 million.
Atlas
Issaquah, Washington
Vintage at Washington Station
Reno, Nevada
KENNEDY WILSON ANNUAL REPORT 2024
19
18
KENNEDY WILSON ANNUAL REPORT 2024
Looking Forward
In 2025, we expect that uncertainty
and volatility will continue to dominate
global markets. However, it has been
our experience over 35 years that out of
chaos comes off-market opportunities
sourced through our global proprietary
network of relationships, where we
have earned the reputation of being an
extremely reliable counterparty in large
transactions. We witnessed this through
the expansion of our credit business
in 2023 caused by the U.S. regional
banking crisis, our growth in the U.S.
and Europe coming off the heels of the
Great Recession, and the creation of
our business in Japan in 1995. During
these periods of uncertainty, we were
able to secure and execute on major
growth opportunities.
We have top-tier global capital partners
and an extremely talented and seasoned
Kennedy Wilson team, which is very
focused on our key initiatives, including
growing shareholder value, asset sales
and debt reductions, while at the same
time looking for new opportunities
to deploy capital into assets that will
produce an above-average risk adjusted
rate of return.
With over three decades of experience navigating various interest
rate environments and market volatility, we have the creativity
to identify opportunities, the fl exibility to deploy capital across
the entire real estate stack and the greatest possible global team in
place to execute on our growth initiatives.
I want to express my immense gratitude to our shareholders, partners, capital
providers and clients for their continued contributions to our success as well
as our dedicated Board of Directors for their counsel. I also want to give huge
thanks to our Executive Management Team – Matt Windisch, Mike Pegler,
Justin Enbody, In Ku Lee, Regina Finnegan and Kurt Zech – as well as the
global Kennedy Wilson team for their hard work and dedication, and for
sharing a culture of humility, transparent communication and collaboration.
I am highly confi dent that these attributes will enable Kennedy Wilson to
grow and prosper in the coming years.
With much gratitude and respect,
William J. McMorrow
Chairman and Chief Executive Offi cer
20
KENNEDY WILSON ANNUAL REPORT 2024
Vintage at Anacapa Canyon
Camarillo, California
KENNEDY WILSON ANNUAL REPORT 2024
21
Annual Report 2024
KENNEDY WILSON ANNUAL REPORT 2024
23
22
KENNEDY WILSON ANNUAL REPORT 2024
Financial Report
Table of Contents
23
Business
41
Management’s Discussion and Analysis of Financial Condition and Results of Operations
77
Report of Independent Registered Public Accounting Firm
81
Consolidated Balance Sheets
82
Consolidated Statements of Operations
83
Consolidated Statements of Comprehensive (Loss) Income
84
Consolidated Statements of Equity
87
Consolidated Statements of Cash Flows
89
Notes to Consolidated Financial Statements
130
Performance Graph
131
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities
133
Forward-Looking Statements
134
Reconciliation to Adjusted EBITDA
22
KENNEDY WILSON ANNUAL REPORT 2024
Company Overview
We are a real estate investment company as well as an investment manager with over $28.0 billion of Real
Estate Assets Under Management (“AUM”) in high growth markets across the United States, the United
Kingdom and Ireland. With an objective of generating strong long-term risk-adjusted returns for our
shareholders and partners and drawing on over three decades of experience in identifying opportunities
and building value through various market cycles, we primarily focus on (i) investing in the rental housing
sector (both market rate and affordable units) and industrial properties; and (ii) originating, managing and
servicing real estate loans (primarily senior construction loans secured by high quality multifamily and
student housing properties that are being developed by institutional sponsors throughout the United
States). We have recently focused on growing our investment management and co-investment platform
whereby we invest a minority position (with the potential for carried interest) and earn our pro-rata
share of income as well as asset management fees in our role as asset manager. During the year ended
December 31, 2024, our investment management platform generated a total of $98.9 million of asset
management fees representing a growth of 60% over the same period in 2023.
For the year ended December 31, 2024, our 246 employees managed our $28.0 billion of AUM,
which includes a total of 62,270 multifamily units in which we hold an ownership interest in (38,285
multifamily units and 901 single family units) or finance (23,084 units). Over the past several years, in
line with our focus on the growth of our investments in housing and the continued execution of our
capital recycling plan and our recent non-core asset disposition plan, our global investment portfolio has
significantly evolved to be weighted heavily in equity and debt investments in the rental housing sector,
specifically multifamily, both market rate and affordable, and student housing. The table below details
key metrics and information of our global investment portfolio (in total and in each of our segments):
Total
Consolidated
Co-Investments
Ownership(1)
AUM (billions)
$
28.0
$
13.6
$
14.4
35%
Rental Housing
Multifamily units–market rate units(2)
25,590
9,258
16,332
57%
Multifamily units–affordable units(2)
12,695
—
12,695
45%
Single family housing units
901
—
901
10%
Real Estate Credit
(primarily secured by Rental Housing Assets)
Real estate debt investments–100% (billions)
4.9
$
—
$
4.9
5%
Industrial and Other Real Estate Investments
Industrial square feet (millions)(2)
12.4
—
12.4
18%
US Office square feet (millions)(2)
5.8
1.4
4.4
34%
Europe Office square feet (millions)(2)
4.6
2.5
2.1
58%
Retail square feet (millions)(2)
2.1
1.1
1.0
48%
Hotels(2)
1
—
1
50%
(1) Weighted-average ownership percentages.
(2) Includes amounts for properties that are stabilized, under development and unstabilized.
As of December 31, 2024, our global team, managed $28.0 billion of AUM (as noted above) of which
$27.0 billion is operating properties and real estate loans (excluding development properties) which
produced total revenue of $2.0 billion ($739.9 million at KW’s share) compared to $22.8 billion of
operating properties as of December 31, 2023 with total revenue of $1.8 billion ($736.0 million at
KW’s share). In addition, as of December 31, 2024, we held interests in 118 real estate loans in our
global debt platform, 81% of which have floating interest rates, with an average interest rate of 8.0%
per annum, and an unpaid principal balance of $4.9 billion ($256.1 million at KW’s share) compared to
Business
KENNEDY WILSON ANNUAL REPORT 2024
25
24
KENNEDY WILSON ANNUAL REPORT 2024
The table below highlights some of the Company’s balance sheet metrics over the past five years:
As of December 31,
(In millions)
2024
2023
2022
2021
2020
Balance sheet data:
Cash and cash equivalents
$ 217.5
$ 313.7
$ 439.3
$ 524.8
$ 965.1
Total assets
6,961.1
7,712.1
8,271.8
7,876.5
7,329.0
Mortgage debt
2,597.2
2,840.9
3,018.0
2,959.8
2,589.8
KW unsecured debt
1,877.9
1,934.3
2,062.6
1,852.3
1,332.2
KWE unsecured bonds
309.8
522.8
506.4
622.8
1,172.5
Kennedy Wilson equity
1,601.2
1,755.1
1,964.0
1,777.6
1,644.5
Noncontrolling interests
34.8
43.3
46.4
26.3
28.2
Total equity
1,636.0
1,798.4
2,010.4
1,803.9
1,672.7
Common shares outstanding
137.4
138.7
137.8
138.0
141.4
The following table shows the historical U.S. federal income tax treatment of the Company’s common
stock dividend for the years ended December 31, 2024 through 2020:
December 31,
2024
2023
2022
2021
2020
Taxable Dividend
100.00 %
—%
37.81%
—%
27.14%
Non-Taxable Return of Capital
—%
100.00 %
62.19%
100.00 %
72.86%
Total
100.00 %
100.00 %
100.00 %
100.00 %
100.00 %
Business Segments
Our operations are defined by two primary business segments: our consolidated investment portfolio
(the “Consolidated Portfolio”) and our co-investment portfolio (the “Co-Investment Portfolio”). In
addition to our two primary business segments, we have among other things, corporate overhead and
unsecured corporate debt and preferred stock that is not allocated to either of our segments.
Consolidated Portfolio
Our Consolidated Portfolio consists of the investments in real estate and real estate-related assets
that we have made and consolidate on our balance sheet, primarily multifamily communities. We
typically wholly-own these assets, which have longer hold periods and accretive asset management
opportunities.
The non-GAAP table below represents a summarized balance sheet of our Consolidated Portfolio,
which is held at historical depreciated cost as of December 31, 2024 and 2023. This table does not
include amounts such as corporate cash and the KWI Notes.
($ in millions)
December 31,
2024
December 31,
2023
Cash and cash equivalents(1)
$
117.4
$
184.2
Real estate and acquired in place lease values
4,290.4
4,837.3
Accounts receivable and other assets, net
99.7
146.1
Total Assets
$
4,507.5
$
5,167.6
Accounts payable, accrued expenses and other liabilities
118.7
154.3
Mortgage debt
2,597.2
2,840.9
KWE unsecured bonds
309.8
522.8
Total Liabilities
3,025.7
3,518.0
Equity
$
1,481.8
$
1,649.6
(1) Excludes $100.1 million and $129.5 million as of December 31, 2024 and 2023, respectively, of corporate non-property level cash.
101 real estate loans, 85% of which had floating interest rates, with an average interest rates of 9.4%
per annum, and an unpaid principal balance of $4.9 billion ($263.0 million at KW’s share) during the
same period in 2023. During the year ended December 31, 2024, the Company also completed a total
of $797.6 million of gross acquisitions and $3.5 billion of loan investments (KW’s ownership interest of
13.3% and 2.5%, respectively) and $1.2 billion of gross dispositions and $1.0 billion of loan repayments
(KW’s ownership interest of 61.8% and 4.9%, respectively).
Investment Approach
The following is our investment approach:
• Identify markets with an attractive investment landscape and the potential for growth
• Establish operating platforms in our target markets
• Develop local intelligence and create and maintain long-lasting relationships, primarily with financial
institutions and the brokerage community
• Leverage relationships and local knowledge to drive proprietary investment opportunities with a
focus on off-market transactions that we expect will result in above average cash flows and returns
over the long term
• Acquire high quality assets, primarily through our investment management platform with strategic
partners and funds that we manage
• Reposition assets to enhance cash flows post-acquisition
• Explore development opportunities or acquire development assets that fit within our overall
investment strategy
• Continuously evaluate and selectively harvest asset and entity value through strategic realizations
using both the public and private markets
In order to help the user of the financial statements understand our company, we have included certain
five-year selected financial data. The table below highlights some of the Company’s key metrics over the
past five years:
Year Ended December 31,
($ in millions, except fee bearing capital which $ in billions)
2024
2023
2022
2021
2020
GAAP
Revenue
$
531.4
$
562.6
$
540.0
$ 453.6
$ 454.0
Net (loss) income to Kennedy-Wilson Holdings Inc.
common shareholders
(76.5)
(341.8)
64.8
313.2
92.9
Basic (loss) income per share of common stock
(0.56)
(2.46)
0.47
2.26
0.66
Diluted (loss) earnings per share of common stock
(0.56)
(2.46)
0.47
2.24
0.66
Non-GAAP(1)
Adjusted EBITDA(1)
539.7
189.8
591.5
927.9
608.0
% change
184.4%
(67.9)%
(36.3)%
52.6%
—%
Adjusted Net Income (Loss)(1)
94.3
(151.3)
264.9
509.0
306.9
Adjusted Net Income (Loss) percentage change
162.3%
(157.1)%
(48.0)%
65.9%
—%
Non-cash fair value (losses) gains
(6.3)
(229.3)
114.6
213.5
47.2
Non-cash carried interests (decreases) increases
(49.7)
(64.3)
(21.1)
117.9
2.7
Consolidated Portfolio NOI(1)
234.2
274.3
294.2
255.8
262.3
% change
(14.6)%
(6.8)%
15.0%
(2.5)%
—%
Co-Investment Portfolio NOI(1)
190.5
168.3
157.6
124.4
102.5
% change
13.2%
6.8%
26.7%
21.4%
—%
Fee-bearing capital
8.8
8.4
5.9
5.0
3.9
% change
4.8%
42.4%
18.0%
28.2%
—%
AUM
28.0
24.5
23.0
21.6
17.6
% change
14.3%
6.5%
6.5%
22.7%
—%
(1) Please refer to “Certain Non-GAAP Measures and Reconciliations” for a reconciliation of certain non-GAAP items to U.S. GAAP.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
27
26
KENNEDY WILSON ANNUAL REPORT 2024
Commingled funds:
We currently have four closed-end funds that we manage and through which we receive investment
management fees and potentially carried interests. We focus on sourcing investors in the U.S., Europe,
Japan and Middle East and target investments in the U.S. and Europe with respect to our commingled
funds. Each of our funds have, among other things, defined investment guidelines, investment hold
periods and target returns. Currently our U.S.-based funds focus on value-add properties in the U.S.
that have an expected hold period of 5 to 7 years. Our European fund focuses on value-add commercial
properties in the United Kingdom, Ireland and Spain that also have expected hold periods of 5 to 7
years. As of December 31, 2024, our weighted average ownership interest in the commingled funds
that we manage was 14%.
Vintage Housing Holdings (“VHH”):
Through our VHH partnership, we acquire and develop income and age restricted properties. See a
detailed discussion of this business in the Multifamily section below.
Investment Product Types
The following are the product types we invest in both through our Consolidated Portfolio and
Co-Investment Portfolio segments.
Rental Housing
We pursue multifamily acquisition opportunities where we can unlock value through a myriad of
strategies, including institutional management, asset rehabilitation, repositioning and recapitalization.
We focus primarily on apartments in supply-constrained, infill markets.
As of December 31, 2024, our global rental housing portfolio consisted of 38,285 units and 901 single
family housing units.
Total
Total
Consolidated
Consolidated
Co-Investments
Co-Investments
Multifamily units—market rate units(1)
25,590
25,590
9,258
9,258
16,332
16,332
Multifamily units—affordable rate units(1)
12,695
12,695
—
12,695
12,695
Single family housing units
901
901
—
901
901
(1) Includes 2,390 units that are under development or undergoing lease up.
Our largest Western United States multifamily regions are the Mountain West region (which includes
our investments in Idaho, Utah, Nevada, Arizona and New Mexico) and the Pacific Northwest (primarily
the state of Washington). The remainder of the Western United States portfolio is located in Northern
and Southern California. In Europe, we focus on Ireland, particularly Dublin city center and its
immediately surrounding suburbs.
Our asset management strategy entails installing strong property management teams to drive leasing
activity and upkeep of the properties. We also seek to add amenities designed to promote health
and wellness, celebrate local and cultural events and enhance the lives of residents living in our
communities. We also incorporate spaces for rest and socialization across our global multifamily
portfolio, including clubhouses, fitness centers, business suites, outdoor play areas, pools and dog parks.
Co-Investment Portfolio
In addition to investing our shareholder’s capital, we invest capital on behalf of our partners in real
estate and real estate-related assets, primarily construction loans, through our Co-Investment Portfolio.
We invest alongside our partners and typically have a 5% to 50% ownership interest in the assets in our
Co-Investment Portfolio and through our ownership positions, we have the potential to earn carried
interest as further discussed below. As of December 31, 2024, we have a weighted average ownership
of 40% in our Co-Investment Portfolio. We also earn fees for managing our fee-bearing capital (total
third-party committed or invested capital that we manage in our joint ventures and commingled funds),
including, without limitation, asset management fees, construction management fees, acquisition and
disposition fees and origination fees.
The non-GAAP table below represents the carrying value of our Co-Investment Portfolio balance
sheet which is primarily at fair value (approximately 92% and 93%, respectively), at our share of the
underlying investments as of December 31, 2024 and 2023. The Co-Investment Portfolio consists of
our unconsolidated investments as well as our loan purchases and originations.
($ in millions)
December 31,
2024
December 31,
2023
Cash and cash equivalents
$
137.5
$
94.8
Real estate and acquired in place lease values
4,564.9
4,619.7
Loan purchases and originations
243.2
259.3
Accounts receivable and other assets, net
236.9
227.3
Total Assets
$
5,182.5
$
5,201.1
Accounts payable, accrued expenses and other liabilities
151.5
125.0
Mortgage debt
2,757.5
2,759.8
Total Liabilities
2,909.0
2,884.8
Equity
$
2,273.5
$
2,316.3
As of December 31, 2024, our fee-bearing capital was $8.8 billion and we recognized $98.9 million in
base investment management fees and had $27.6 million in net accrued carried interests receivable
(allocated amounts to us on co-investments we managed based on the cumulative performance of the
underlying investment), which included a non-cash write down of $64.3 million of carried interests
during the year ended December 31, 2024.
Co-Investment Portfolio Investment Platforms
We have a number of platforms through which we invest in alongside our partners and manage in our
Co-Investment Portfolio. For each specific investment opportunity, we evaluate various investment
parameters, primarily the asset type, risk return profiles and other parameters against the defined
investment parameters of the applicable platforms.
Separate accounts/Joint ventures:
We have several high-quality institutional equity partners that we invest alongside with and for
whom we act as the general partner and receive investment management fees. Our separate account
platforms have defined investment parameters such as asset types, leverage and return profiles and
expected hold periods. As of December 31, 2024, our weighted average ownership interest in the
various joint ventures that we manage was 44%.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
29
28
KENNEDY WILSON ANNUAL REPORT 2024
During the year ended December 31, 2024, we received $27.4 million of proceeds from VHH, including
$10.3 million from recurring monthly distributions, $6.8 million from paid developer fees at conversion
and $10.3 million from sales and refinancings.
We acquired our ownership interest in VHH in 2015 for approximately $80.0 million. As of
December 31, 2024, we have contributed an additional $186.2 million into VHH and have received
$380.9 million in cash distributions. VHH is an unconsolidated investment that we account for using
the fair value option which had a carrying value of $333.9 million as of December 31, 2024. Since we
acquired our ownership interests in VHH, we have recorded $356.4 million worth of fair value gains on
our investment in VHH, including $36.4 million during the year ended December 31, 2024.
The fair value of the real estate investments held through VHH is determined through a discounted
cash flow analysis on a partnership-by-partnership basis. This methodology assumes ordinary
distributions during the ownership period and the future sale of the underlying properties after the tax
credit period has expired. Our methodology of estimating the fair value of such real estate investments
assumes certain market inputs, including average capitalization rates at sale between 6.25%–7.20% and
discount rates ranging from 8.25%–9.20%.
• With respect to investments held by VHH with tax credit LPs, the discounted cash flow analysis
also factors in the distinct economic splits between VHH and its tax credit LPs. We also record an
estimated fair value of the our GP interests with respect to VHH ownership structures with tax
credit LPs by taking the fair value of the underlying real estate utilizing the method described above
and then factoring in (i) cashflow after debt service and then, (ii) discounting the net cashflow
utilizing a levered discount rate that ranges between 16.0% to 19.5% (the “levered discount rates”).
• With respect to investments held by VHH fee simple (without tax credit LPs), we also fair value the
underlying secured loans on each of the properties, as described further below under “Fair Value
Investments”.
In addition to completed projects, VHH holds certain investments that they are currently being
developed as described above. With respect to such investments VHH is paid developer fees for its
work as development manager. Prior to the completion of the development, we estimate the fair value
of these investments by applying the levered discount rate described above to the cashflow associated
with the paid developer fees. Once complete, the property will be held by VHH with tax credit LPs
and we will calculate and record the fair value of such investments utilizing the discounted cash flow
methodology described in the previous paragraph.
Real Estate Debt Credit
We have a global credit platform that, as of December 31, 2024, had a total capacity of $12 billion
with $9 billion invested or committed to future fundings. Our global credit platform, which includes
institutional partners across insurance and sovereign wealth funds, invests across the entire real estate
credit capital structure in the United States, United Kingdom and Europe and primarily targets loans
secured by high-quality real estate located in such jurisdictions. In addition to interest income (which
includes origination, exit and extension fees), in our role as asset manager, we earn customary fees for
managing the platform. Currently, our global credit investment platform investments have been made
without the use of any leverage and are invested through our Co-Investment Portfolio.
In addition to traditional multifamily units, during the fourth quarter 2024 we launched a new UK
single-family rental housing joint-venture with the Canada Pension Plan Investment Board (“CPPIB”),
targeting £1 billion in real estate. Under this arrangement, CPPIB will own 90% of the ownership
interests, initially committing £500 million in equity and we will own 10% of the ownership interests
initially committing £56 million in equity. This joint venture will look to acquire single-family rental
properties throughout the UK, targeting areas with strong and growing local economies. As of
December 31, 2024 this joint venture has acquired ownership interest in nine sites which consists of
901 single family rental units.
Multifamily—Affordable Housing
Through our VHH platform we focus on affordable units based on income and in some cases age
restrictions. With homes reserved for residents that make 50% to 60% of the area’s median income,
VHH provides an affordable long-term solution for qualifying working families and active senior
citizens, coupled with modern amenities that are a hallmark of our traditional multifamily portfolio.
Fundamental to VHH’s success is a shared commitment to delivering quality affordable homes and
building communities that enrich residents’ lives, including providing programs such as social support
groups, after-school programs, transportation assistance, computer training, and wellness classes.
As of December 31, 2024, we hold an approximate 50% interest in VHH which acts as the general
partner (“GP interest”) (developer/asset manager) of 60 affordable housing projects totaling 12,695
units (48 investments held with a tax credit limited partner (“tax credit LP”) and 12 investments held fee
simple which does not have any outside tax credit LPs). The VHH portfolio includes 12,695 units (10,825
operating units and 1,870 units that are under development or lease up), as of December 31, 2024.
When we acquired our interest in VHH in 2015, the portfolio consisted of a total of 5,485 units. All of
the VHH platform’s units are included in our multifamily unit count discussed throughout this report.
With respect to the assets that are held with tax credit LPs, VHH generally sells 99.9% of the legal
ownership interest in the applicable asset to the tax credit LPs, in exchange for cash that is used to
build and/or rehabilitate the property. Although legal ownership interests in these assets are sold to
the tax credit LPs, VHH continues to receive a majority of the cash flow generated from these assets
through deferred developer fees and other fee arrangements and profit splits agreed to between VHH
and the tax credit LPs (a commonly used structure by peer companies with similar businesses). This
structure results in VHH maintaining on average 75% of the economic ownership interests in the assets
across the portfolio.
Our VHH platform also has a development component where we find suitable sites and develop
properties from the ground up and then lease up the property upon the completion of construction.
VHH is paid developer fees for its work as development manager and receive a conversion fee when
the property is placed into operation.
Further, on properties where tax credits are sold, VHH typically utilizes tax-exempt bond financing to
help finance its partnership investments. Typical financing includes a bridge to permanent financing
solution, where a floating rate option is utilized during the construction and lease-up period and a
permanent loan with a fixed rate locked at the time of closing becomes effective upon conversion/
stabilization. The typical term for these loan facilities is 17 years.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
31
30
KENNEDY WILSON ANNUAL REPORT 2024
Consolidated Portfolio and the remaining 6.4 million rentable square feet is in our Co-Investment
Portfolio (which we have a weighted ownership interest of 38%). Office assets in our Consolidated
Portfolio are typically large high-quality properties with high replacement costs. Office assets in our
Co-Investment Portfolio range from suburban office buildings to office buildings located in central
business districts of major cities. Some of our offices consist of flex space for medical lab work or light
industrial use and many of our offices focus on tenants in the tech sector.
Our retail portfolio consists of approximately 2.1 million square feet of primarily suburban shopping
centers located in the United Kingdom as well as Dublin and Western United States.
Residential, Hotel and Other
In certain cases, we may pursue for-sale housing acquisition opportunities, including land for
entitlements, finished lots, urban infill housing sites and partially finished and finished housing projects.
On certain income-producing acquisitions, there are adjacent land parcels for which we may pursue
entitlement activities or, in some cases, development or redevelopment opportunities.
As of December 31, 2024, we held 19 investments primarily comprised of 1,069 acres of land located in
Hawaii and the Western United States and are primarily invested through our Co-Investment Portfolio.
These investments are in various stages of completion, ranging from securing the proper entitlements
on land positions to sales of units/lots. As of December 31, 2024, these investments had a Gross
Asset Value of $261.3 million, and includes our investment in Kohanaiki a private club and residential
community located in Kona, Hawaii. We have $99.6 million equity value in Kohanaiki which represents
a 55% ownership interest. In addition to our ownership interest, we manage the Kohanaiki asset and
develop residential lots and homes for sale.
We also hold ownership interests in the five-star, Rosewood flagged Kona Village Resort that consists
of 150 rooms in Kona, Hawaii and which sits in our Co-Investment Portfolio. After we fully redeveloped
the project over seven years, we fully opened the Kona Village Resort in July 2023. We currently expect
the property to stabilize in 2026. We have $249.7 million equity value which represents an ownership
interest of 50% in the Kona Village Resort.
We have a minority ownership interest in Zonda, a technology based real estate business that offers
residential construction data providing insights and solutions for leaders in the home building industry.
We account for our ownership interest at fair value and it is included within our unconsolidated
investments.
This group also includes our investment in liquid non-real estate investments which include investment
funds that hold marketable securities and private equity investments.
Development and redevelopment
We have development, redevelopment and entitlement projects that are underway or in the planning
stages. Unlike the residential projects that are held for sale and described in the Residential and Other
section below, these initiatives may ultimately result in income-producing assets. As of December 31,
2024, we are actively developing 288 multifamily units. If these projects are brought to completion,
the Company’s estimated share of the total capitalization of these projects would be approximately
$46.0 million (approximately 48% of which has already been funded), which we expect would be funded
through our existing equity, third-party equity, project sales, tax credit financing and secured debt
financing. This represents total capital over the life of the projects and is not a representation of peak
In the United States, we primarily focus on originating real estate construction loans that consist of
variable rate senior loans secured by high-quality, institutional commercial real estate, primarily multifamily
and student housing properties, located across the U.S. capitalized by experienced, well-capitalized real
estate owners and operators (the “Construction Loan Portfolio”). Our construction loan originations
typically finance 50% to 65% of the cost to construct the underlying properties, with loan fundings
typically occurring after sponsor capital has been invested. The terms are generally three years with short-
term, performance-based extension options. Interest typically accrues into principal balance during the
construction period, with principal and interest being paid at maturity. In addition to our Construction
Loan Portfolio, we have originated and purchased bridge loans that consist of predominantly variable rate
loans, with terms that are generally three-years with one or two 12-month extension options (the “Bridge
Loan Portfolio”). Our bridge loans are secured by multifamily, office, retail, industrial and hotel assets in
the Western United States or United Kingdom. We also invest in certain mezzanine loans that are fixed
rate and tend to have maturities of 5 to 10 years and are secured by multifamily or office properties in the
Western United States.
As of December 31, 2024, we held interests in 118 loans in our global debt platform, 81% of which
have floating interest rates with an average interest rate of 8.0% per annum and an unpaid principal
balance (“UPB”) of $4.9 billion (of which our share was a UPB of $256.1 million). Some of our loans
contain additional funding commitments that will increase our loan balances if they are utilized. As of
December 31, 2024, our loans had unfulfilled capital commitments totaling $4.1 billion (our share of
which was $123.4 million).
We have stopped and may stop accruing for interest income if certain loans become non-performing
and account for loans on a cash basis. In the event of a borrower defaulting on its obligations under any
loan agreement, we will explore all of our remedies including, without limitation, pursuing a foreclosure
action or deed in lieu of foreclosure to take control of the underlying collateral securing the loans,
although there is no guarantee or assurance that we will be able to do so successfully. As of the year
ended December 31, 2024, we successfully completed a deed in lieu of foreclosure for one multifamily
asset in the Western United States that is now an asset in our Co-Investment Portfolio (our share of
which is 5% or $3.5 million of equity). As of December 31, 2024, we had three loans (in our bridge loan
portfolio) out of the 118 loans in our global debt platform with a $12.7 million carrying value at our
share and net of any loan reserves that are not paying interest current on a contractual basis. Per the
terms of the applicable loan agreements, however, we have implemented a full cash sweep of any cash
flow that is generated from the collateral and are working on exercising our available remedies, which
may include taking control of the underlying collateral. We are no longer accruing interest under these
loans and accounting for them on a cash basis going forward.
Commercial
Our industrial portfolio consists of approximately 12.4 million rentable square feet of distribution
centers located primarily in the United Kingdom, Ireland and the Mountain West and Northern
California regions of the United States. All of the assets in our industrial portfolio are in our
Co-Investment Portfolio and we have a weighted average ownership interest of 18% in such assets.
Our office portfolio consists of approximately 10.5 million rentable square feet of office properties
located primarily in the United Kingdom, Ireland and the Western United States. Of the 10.5 million
rentable square feet in our office portfolio, approximately 4.1 million rentable square feet (2.5 million
rentable square feet of which is from assets located in the United Kingdom and Ireland) is in our
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
33
32
KENNEDY WILSON ANNUAL REPORT 2024
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 estimated
capitalization rate to current and future income streams with appropriate adjustments for tenant
vacancies or rent-free periods. These estimated 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 we take into account under both approaches may include transaction structuring
efficiencies, 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 periodically (typically annually)
requiring appraised valuations. All appraised valuations are reviewed and approved by the Company.
The Company has an investment in a Zonda, a technology based real estate business that offers
residential construction data that is accounted for at fair value which is valued at the Company’s share
of the business using a multiple on trailing twelve months EBITDA.
The methodology to determine the value of the Company’s investment in VHH is described above
under “Multifamily-Affordable Housing.”
The table below describes the range of inputs used as of December 31, 2024 for real estate assets:
Estimated Rates Used For
Capitalization Rates
Discount Rates
Multifamily—Affordable
Income approach—discounted cash flow
6.30%—7.20%
8.30%—9.20%
Multifamily—Affordable GP interest
Income approach—discounted cash flow
N/A
16.00%—19.50%
Multifamily—Market Rate
Income approach—direct capitalization
4.60%—6.50%
N/A
Office
Income approach—discounted cash flow
5.20%—7.50%
7.30%—9.30%
Income approach—direct capitalization
5.30%—10.30%
N/A
Industrial
Income approach—discounted cash flow
5.00%—6.30%
6.30%—7.80%
Income approach—direct capitalization
4.00%—8.90%
N/A
Hotel
Income approach—discounted cash flow
6.00%
8.30%
In valuing indebtedness, the Company considers significant inputs to be the term of the debt, value
of collateral, market loan-to-value ratios, market interest rates and spreads, and credit quality of
investment entities. The credit spreads used by the Company to value floating rate indebtedness range
from 2.00% to 3.60%, while the market rates used to value fixed rate indebtedness range from 4.10%
to 9.30%.
There is no active secondary market for our development projects and no readily available market value
given the uncertainty of the amount and timing of future cash flows. Accordingly, our determination
of fair value of our development projects requires judgment and extensive use of estimates. Therefore,
we typically use investment cost as the estimated fair value until future cash flows become more
capital and does not take into account any distributions over the course of the investment. We and
our equity partners are under no obligation to complete these projects and may dispose of any such
assets after adding value through the entitlement process. Please also see the section titled “Liquidity
and Capital Resources—Development and redevelopment” in Management’s Discussion and Analysis of
Financial Condition and Results of Operations included in this report for additional detail on these
investments.
Fair Value Accounting
The Company accounts for a number of unconsolidated investments under fair value accounting. 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. In recent years, 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, adverse developments affecting financial institutions
and other geopolitical issues, including large-scale conflicts and warfare, and government responses
to the same, continue to adversely impact the global economy and create volatility in the financial
markets. Any prolonged downturn in the financial markets or a recession or continued volatility in
the financial markets, 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 year ended December 31, 2024 and future periods.
As of December 31, 2024, $1.9 billion, or 92%, of our investments in unconsolidated investments
(27% of total assets) were held at estimated fair value. As of December 31, 2024, there were
cumulative fair value gains of $315.4 million which comprises 17% of the $1.9 billion carrying value
of fair value unconsolidated investments that are currently held. Our investment in VHH is our largest
unconsolidated investment held at estimated fair value and was held at $333.9 million and $285.9
million as of December 31, 2024 and 2023, respectively. Fair value changes consist of changes in the
underlying value of properties and associated mortgage debt as well as foreign currency fluctuations
(net of any hedges) for non-dollar denominated investments. During the year ended December 31,
2024, we recognized $6.3 million and $49.7 million, respectively, of net fair value losses and
write downs of carried interests on Co-Investment portfolio investments. During the year ended
December 31, 2023, we recognized $229.3 million and $64.3 million, respectively, of net fair value
losses and write downs of carried interests on Co-Investment portfolio investments.
In determining estimated fair market values, the Company utilizes two approaches to value real estate, a
discounted cash flow analysis and direct capitalization approach.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
35
34
KENNEDY WILSON ANNUAL REPORT 2024
Competitive Strengths
We have a unique platform from which to execute our investment and investment management
strategy. The combination of an investment and investment management platform provides several
competitive strengths when compared to other real estate buyers and asset managers operating
stand-alone or investment-focused firms and may allow us to generate superior risk-adjusted returns.
Our investment strategy focuses on investments that offer significant appreciation potential through
intensive asset management, leasing, repositioning, redevelopment and the opportunistic use of capital.
We differentiate ourselves from other firms in the industry with our full service, investment-oriented
structure.
Our competitive strengths include:
• Transaction experience: Our senior management team has an average of over 23 years of real estate
experience and has been working and investing together on average for almost 19 years. Members
of the senior management team have collectively acquired, developed and managed in excess of
$30 billion of real estate investments in the United States, the United Kingdom, Ireland, Spain, Italy
and Japan throughout various economic cycles, both at our Company and throughout their careers.
• Extensive relationship and sourcing network: We leverage our relationships in order to source
attractive on and off-market deals. In addition, the senior management team and our acquisition
team have transacted deals in nearly every major metropolitan market on the West Coast of the
United States, as well as in the United Kingdom, Ireland, Spain, Italy and Japan. Their local presence
and reputation in these markets have enabled them to cultivate key relationships with major holders
of property inventory, in particularly financial institutions, throughout the real estate community.
• Structuring expertise and speed of execution: Prior acquisitions completed by us have taken a variety
of forms, including direct property investments, joint ventures, exchanges involving stock or
operating partnership units, participating loans and investments in performing and non-performing
mortgages at various capital stack positions with the objective of long-term ownership. We believe
we have developed a reputation of being able to quickly execute, as well as originate and creatively
structure acquisitions, dispositions and financing transactions.
• Strategic partnerships: Through our relationships and transaction experience we have been able
to establish various strategic partnerships with a variety of different companies and institutions
in which we are highly collaborative and aligned with our partners in the deals. Coupled with our
ability to structure acquisitions in a variety of ways that fit the needs of our strategic partners, we
have been able to access various forms of capital due to our experience and versatility.
• Vertically integrated platform for operational enhancement: We have 246 employees in 14 offices
throughout the United States, the United Kingdom and Ireland. We have a hands-on approach to
real estate investing and possess the local expertise in property and asset management, leasing,
construction management, development and investment sales, which we believe enable us to
invest successfully in selected submarkets.
• Calculated risk taking: We underwrite our investments based upon a thorough examination of
property economics and a critical understanding of market dynamics and risk management
strategies. We conduct an in-depth sensitivity analysis on each of our acquisitions. This analysis
applies various economic scenarios that include changes to rental rates, absorption periods,
operating expenses, interest rates, exit values and holding periods. We use this analysis to develop
our disciplined acquisition strategies.
predictable. Additionally, the fair value of our development projects may differ significantly from the
values that would have been used had a ready market existed for such investments and may differ
materially from the values that we may ultimately realize. If we were required to liquidate an investment
in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded
it. In addition, changes in the market environment and other events that may occur over the life of the
investments may cause the gains or losses ultimately realized or incurred on these investments to be
different than the unrealized gains or losses reflected in the currently assigned valuations.
Value Creation
Our differentiated and unique approach to investing is the cornerstone of how we create value for our
shareholders. Our investment philosophy is based on three core fundamentals:
• Leverage our global footprint and complementary investment and investment management
businesses to identify attractive investment markets across the world.
• Selectively invest in opportunities across many real estate product types with a goal of maximizing
cash flow and risk-adjusted return on capital.
• Actively manage assets and finance our assets in a manner designed to generate stable, predictable
and growing cash flows for shareholders and clients.
Kennedy Wilson is able to create value for its shareholders in the following ways:
• We are able to identify and acquire attractive real estate assets across many markets, in part due
to the significant proprietary deal flow driven from an established global network of industry
relationships, particularly with financial institutions. This can create value by allowing us to maintain
and develop a large pipeline of attractive opportunities.
• Our operating expertise allows us to focus on opportunistic investments where we believe we can
increase the value of assets and cash flows and include transactions with distressed real estate
owners or lenders seeking liquidity, or purchases of under-managed or under-leased assets, and
repositioning opportunities.
• We have been able to create place-making areas in our investment locations where we are able to
make multiple investments in a particular city either through direct investments or development
initiatives that further drives interest in the area.
• Many times, these investments are acquired at a discount to replacement cost or recent
comparative sales, thereby offering opportunities to achieve above average total returns. In many
cases, this may lead to significant additional returns, such as carried interests (where we have
partners), based on the performance of the assets.
• Our long-lasting and deep relationships with financial institutions allow us to refinance loans
(generally after we implement our value-add initiatives) to reduce interest rates and/or increase
borrowings due to property appreciation and thereby obtain cash flow to use for new investments.
• We have been able to attract third party capital due to our ability to generate above-market returns
for our partners, diversity of geographic markets and investment product types as well as our
flexibility in structuring deals through funds, separate accounts and equity partner arrangements.
• We understand that real estate is cyclical. Our management team employs a multi-cyclical approach
that has resulted in our AUM being globally diversified across many sectors of real estate while
maintaining a healthy liquidity position and adequate access to capital.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
37
36
KENNEDY WILSON ANNUAL REPORT 2024
The Office sector faced ongoing challenges as hybrid work models continued. There continued to be
a divide between high-quality, well located assets and lower quality, older assets. However, the office
market is expected to shift into 2025, as the lack of new supply, greater corporate confidence, and the
potential for increasing office usage is expected to drive demand for higher quality office assets (similar
to the office assets within the Company’s office portfolio).
Hawaii
Hawaii’s real estate market remains consistent in 2024 driven by tourism. Hawaii saw similar levels of
visitors as compared to 2023 with more than 8.7 million visitors in the first 11 months of 2024, a 0.2%
decrease year over year. However, during that same period, total visitor spending was $2.9 billion a
6.1% increase over 2023. The median sale price of single family homes increased 8% year over year to
$975,000, reaffirming Hawaii’s enduring appeal despite economic headwinds.
Ireland
Ireland’s economy is estimated to have had nominal GDP growth of 1.4% in 2024, and the Organization
for Economic Co-operation and Development is forecasting Ireland to have progressively higher GDP
growth over the next two years reach 5.4% by year-end 2026. Real estate investment volumes were
30% higher year over year comparing 2024 with 2024 with €2.4 billion of investment during 2024.
Dublin office take-up was more than 2.26 million square feet in 2024 with prime headline city center
rents remained unchanged at €62.50 per square foot but are expected to increase to €65.00 per square
foot over 2025. The multifamily investment market still remains quiet, however, the rental market
remains strong with a significant structural undersupply of rental accommodation and continued
growing employment and wage inflation.
United Kingdom
In the United Kingdom, total investment volumes of £53.6 billion during 2024 represents a 20%
increase year over year in comparison to 2023. Top sectors for trades were industrial, retail and office.
Office take up increased in Central London with a total of 9.6 million sq ft for 2024 but still remains 3%
below the 10 year average. Total industrial take up in 2024 ended up 6% to 48.7 million square feet.
Manufacturers continue to drive the improvement in demand which has settled at pre-pandemic levels,
and forward commitments by retailers and data center operators also helped drive demand.
Environmental, Social and Governance (ESG)
Kennedy Wilson’s approach to ESG aligns with its business strategy to maximize the inherent value of
our assets and by striving to deliver long-term value across our portfolio and to our key stakeholders.
We aim to integrate ESG factors into key business processes, underpinned by a measure, manage, and
monitor approach framed by four pillars most relevant to our business: Optimizing Resources, Creating
Great Places, Building Communities and Operating Responsibly.
The ESG Committee of the Board of Directors (the “committee”) oversees the Company’s ESG program,
including opportunities and risk management strategies. The committee’s main areas of focus include:
• Overseeing and reviewing the Company’s ESG strategies, initiatives, and policies, including the
Company’s ESG-related reporting and disclosures.
• In conjunction with the Compensation Committee, overseeing and reviewing the Company’s
culture and human capital management strategy, initiatives, and policies
• Management’s alignment with shareholders: As of December 31, 2024, our directors and executive
officers and their respective affiliates owned an aggregate of approximately 13% of the outstanding
shares of our common stock. Due to our management team’s ownership interest in the Company
its interests are in alignment with common shareholders of the Company and gives us an owner’s
mentality on the investments we own and manage.
The real estate business is cyclical. Real estate cycles are generally impacted by many factors, including
availability of equity and debt capital, borrowing cost, rent levels, and asset values. Our strategy
has resulted in a strong track record of creating both asset and entity value for the benefit of our
shareholders and partners over these various real estate cycles.
Industry Overview
Key Investment Markets
Western United States
In 2024, the Federal Reserve (the “Fed”) began to shift its interest rate policy and reducing interest
rates for the first time in four years. Beginning in September 2024, the Fed reduced its target federal
funds rate by 1%, ending the year with a range of 4.25% to 4.50%. These adjustments aimed to balance
economic growth with inflation control. The U.S. economy demonstrated resilience, with real gross
domestic product (“GDP”) increasing at an annual rate of 2.8% in the third quarter, driven by robust
consumer spending, which rose by 3.7%. The reduction in rates helped support an improvement in
liquidity and a recovery in commercial real estate transaction volumes.
The U.S. multifamily sector demonstrated resiliency in 2024. The combination of high mortgage rates
and a high cost of living continued to make homeownership difficult, creating sustained fundamental
demand for rental housing. Despite record deliveries, occupancy has remained healthy as the United
States is still facing a significant housing shortage of approximately 3.9 million units. The delivery of
newly developed rental housing is expected to slow significantly in the coming years as a result of lower
construction starts, which is expected to continue to sustain healthy demand for multifamily assets.
The Industrial sector experienced a recalibration after a period of rapid expansion. Following three years
of exceptional rental growth and absorption, the sector faced an inflection point in 2024. Market rents
declined slightly due to lower-than-expected absorption amid significant deliveries. While corrections
were market wide, coastal markets felt the brunt of the impact due to significantly higher deliveries in
recent years. Despite short term adjustments, the long-term outlook for industrial remains favorable
driven by sustained e-commerce activity, supply chain optimization efforts and onshoring.
The lending environment in 2024 remained slow from banks and Federal Deposit Insurance
Corporation (“FDIC”) insured institutions. The total volume of outstanding acquisition, development,
and construction loans made by FDIC-insured institutions fell for the third consecutive quarter during
the third quarter of 2024 to a volume of $490.7 billion, down from $495.8 billion in the second quarter.
The decline reflects tighter lending conditions. Residential construction and land development loans
from such traditional banking institutions fell to $90.8 billion, an 8.4% year-over-year drop.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
39
38
KENNEDY WILSON ANNUAL REPORT 2024
Foreign Currency
Approximately 34% of our investment account is invested through our foreign platforms in their local
currencies. Investment level debt is generally incurred in local currencies and we consider our equity
investment as the appropriate exposure to evaluate for balance sheet hedging purposes. We typically
do not hedge foreign exchange rates for future operations or cash flows of operations, which may have
a significant impact on the results of our operations. In order to manage the effect of fluctuations in
foreign exchange rates, we generally hedge our book equity exposure to foreign currencies through
currency forward contracts and options.
We wholly-own Kennedy Wilson Europe Real Estate Limited (“KWE”), which is domiciled in the United
Kingdom and has GBP as its functional currency. KWE has investments in assets that have functional
currencies of GBP and euros. Kennedy-Wilson Holdings, Inc. does not have a direct interest in the
euro-denominated investments but has indirect ownership through its interest in KWE. We cannot
directly hedge the foreign currency movements in these euro-denominated assets but we do hedge
foreign currency movements in euro assets at the KWE level through GBP/EUR hedging instruments.
We then are able to hedge the USD/GBP foreign currency exposure through our direct interest in KWE.
Within KWE we have historically utilized two types of contracts to hedge our GBP/EUR exposure:
foreign forward and option currency contracts and the KWE Euro Medium Term Notes (“KWE
Notes”). The KWE Notes were issued in euros and held by KWE but we have elected to treat the
foreign currency movements as a net investment hedge on our euro-denominated investments in
KWE. The foreign currency movements on these hedge items above are recorded to unrealized
foreign currency derivative contract gains/losses within other comprehensive income for GBP/EUR
movements. However, when we translate our investment in KWE from USD/GBP, the foreign currency
movements on these items go through unrealized foreign currency translation gains/losses within other
comprehensive income.
Please refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operation for a discussion regarding foreign currency and currency derivative instruments.
Transaction-Based Results
A significant portion of our cash flow is tied to transaction activity which can affect an investor’s ability
to compare our financial condition and results of operations on a quarter-by-quarter or year-over-
year basis or to easily evaluate the breadth of our operation. Historically, this variability has caused
our revenue, net income and cash flows to be tied to transaction activity, which is not necessarily
concentrated in any one quarter.
Employees
As of December 31, 2024, we have 246 employees in 14 offices throughout the United States, the
United Kingdom and Ireland. We believe that we have been able to attract and maintain high quality
employees. There are no employees subject to collective bargaining agreements. In addition, we believe
we have a strong relationship with our employees.
• In conjunction with the Audit Committee, overseeing risk management and oversight programs and
performance-related material to ESG matters affecting Kennedy Wilson.
• Compliance with all federal, state and local ESG-related mandates, including those related to
climate risk and building performance.
The committee is also responsible for overseeing Kennedy Wilson’s management-level Global
ESG Committee. That Global ESG Committee, manages the Company’s ESG responsibilities and
commitments and is responsible for formulating and implementing procedures and priorities to deliver
the Company’s ESG strategy.
The Global ESG Committee focuses on the following: monitoring compliance with existing and future
material ESG-related laws and regulations applicable to the Company and its investments that would
have a material impact on business operations; setting appropriate global ESG priorities with the aim
to align across target markets; monitoring delivery progress; and supporting ESG communication to
investors and other stakeholders.
Human Capital Management
Company Overview and Values
We operate as a teamwork-oriented, and nimble organization. We promote an entrepreneurial culture,
and at our core, we are powered by a team of focused, high-performance people who thrive on
excellence in the workplace and a shared desire to make an impact. We strive to maintain a corporate
culture, that allows for better representation of different viewpoints, perspective and can bring fresh
ideas to all levels of the Company. Within Kennedy Wilson’s total workforce comprises 246 employees.
Training and Development
Kennedy Wilson would not exist without our most important asset: our people. We strive to maintain
a culture that fosters collaboration and innovation, and we take great pride in building and maintaining
a driven, results-oriented workforce. Our talent development program includes access to formal and
informal mentorships, tuition reimbursement, where we are supporting employees who are seeking
advanced certificates in areas of specialty that pertain to their role at Kennedy Wilson, and “Lunch and
Learn” sessions. These alongside our regular global senior management calls continue to develop our
managers to become more effective leaders. A dynamic internship and internal transfer program also
helps promote personal development and improves leadership skills across all departments.
Through our annual summer internship program, we continue to build a diverse pipeline of talented
individuals in the real estate industry with the intention to introduce our business to those who may
not have considered a career in real estate. Through our own efforts, and through partnerships with
organizations, our aim continues to be training and developing the next group of leaders.
Competition
We compete with a range of global, national and local real estate firms, individual investors and
other corporations, both private and public. In our real estate credit debt business we compete with
banks and life insurance companies. Our investment business competes with real estate investment
partnerships, real estate investments trusts, private equity firms and other investment companies and
regional investors and developers. We believe that our relationships with the sellers and our ability to
close an investment transaction in a short time period at competitive pricing provides us a competitive
advantage.
Business (continued)
KENNEDY WILSON ANNUAL REPORT 2024
41
40
KENNEDY WILSON ANNUAL REPORT 2024
The following discussion and analysis should be read in conjunction with the financial statements and related
notes and the other financial information appearing elsewhere in this report. This discussion and analysis
contains forward-looking statements that involve risks, uncertainties and assumptions. See the section
titled “Forward-Looking Statements” for more information. Actual results could differ materially from those
anticipated in the forward-looking statements as a result of many factors, including those discussed in the
section titled “Risk Factors” and elsewhere in this report.
Unless specifically noted otherwise, as used throughout this Management’s Discussion and Analysis section, “we,”
“our,” “us,” “the Company” or “Kennedy Wilson” refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned
subsidiaries. “Equity partners” refers to the subsidiaries that we consolidate in our financial statements under
U.S. GAAP (other than wholly-owned subsidiaries) and third-party equity providers. Please refer to “Non-GAAP
Measures and Certain Definitions” for definitions of certain terms used throughout this report.
Overview
We are a real estate investment company as well as investment manager with over $28.0 billion of AUM
in high growth markets across the United States, the United Kingdom and Ireland. With an objective
of generating strong long-term risk-adjusted returns for our shareholders and partners and drawing on
over three decades of experience in identifying opportunities and building value through various market
cycles, we primarily focus on (i) investing in the rental housing sector (both market rate and affordable
units) and industrial properties; and (ii) originating, managing and servicing real estate loans (primarily
senior construction loans secured by high quality multifamily and student housing properties that are
being developed by institutional sponsors throughout the United States). We also have investments in
office assets and other investments which include hotel and retail properties.
2024 Highlights
During the year ended December 31, 2024, we achieved the following:
• Originated $3.5 billion of new senior construction loans through our debt investment platform
• Generated total investment management fees of $98.9 million, an increase of 59.8% from the year
ended December 31, 2023
• Continued to see strength in our stabilized multifamily portfolio which saw same-store occupancy
grow by 0.8% to 94.6%, same-property revenue growth of 3.5%, and same-property NOI growth
of 3.6%
• Generated $1.7 billion of cash from asset sales and loan repayments (our share of which was $520
million) and redeployed capital to pay down indebtedness and to consummate new investment
opportunities
• Grew Fee-Bearing Capital by 5% to a record $8.8 billion
• Repaid €175 million of KWE Notes and $45 million net pay down on the Company’s credit facility
Available Information
Information about us is available on our website (http://www.kennedywilson.com) (this website address is
not intended to function as a hyperlink, and the information contained in, or accessible from, our website
is not intended to be a part of this filing). We make available on our website, free of charge, copies of
our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy
Statements on Schedule 14A and amendments to those reports and other statements filed or furnished
pursuant to Section 13(a), 14 or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as
reasonably practicable after filing or submitting such material electronically or otherwise furnishing it
to the SEC. In addition, we have previously filed registration statements and other documents with the
SEC. Any document we file is available at the SEC’s internet address at http://www.sec.gov (this website
address is not intended to function as a hyperlink, and the information contained in, or accessible from,
the SEC’s website is not intended to be a part of this filing).
Business (continued)
Management’s Discussion and Analysis of Financial Condition and Results
of Operations
KENNEDY WILSON ANNUAL REPORT 2024
43
42
KENNEDY WILSON ANNUAL REPORT 2024
Year Ended December 31, 2024
(Dollars in millions)
Co n s o l i da
t e d
Co-Investments
Total
Segment Revenue
Rental
$
390.6
$
—
$
390.6
Hotel
9.3
—
9.3
Investment management fees
—
98.9
98.9
Loans
—
31.2
31.2
Total segment revenue
399.9
130.1
530.0
Income from unconsolidated investments
Principal co-investments
—
56.2
56.2
Carried interests
—
(49.7)
(49.7)
Company’s share of Interest, Depreciation, and Taxes included in income
from unconsolidated investments
—
135.4
135.4
Income from unconsolidated investments
—
141.9
141.9
Gain on sale of real estate, net
160.1
—
160.1
Segment Expenses
Rental
150.0
—
150.0
Hotel
7.6
—
7.6
Compensation and related
39.4
49.1
88.5
Carried interests compensation
—
(16.6)
(16.6)
General and administrative
14.9
16.7
31.6
Other (income) loss
(1.0)
11.0
10.0
Other segment items(1)
7.8
(0.9)
6.9
Total segment expenses
218.7
59.3
278.0
Segment Adjusted EBITDA
$
341.3
$
212.7
$
554.0
Reconciliation of Segment Adjusted EBITDA to Net Income attributable to
Kennedy-Wilson Holdings, Inc. Common Shareholders
Other revenue
1.4
Compensation and related, corporate
(46.3)
General and administrative, corporate
(7.2)
Depreciation and amortization
(148.3)
Interest expense
(261.1)
Loss on early extinguishment of debt
(1.7)
Other income
14.2
Provision for income taxes
(10.2)
Company’s share of Interest, Depreciation, and Taxes included in income
from unconsolidated investments
(135.4)
EBITDA adjustments to NCI
6.9
Net loss
(33.7)
Net loss attributable to noncontrolling interests
0.7
Preferred dividends
(43.5)
Net loss attributable to Kennedy-Wilson Holdings, Inc. common
shareholders
$
(76.5)
For the year ended December 31, 2024, we had net loss attributable to Kennedy-Wilson Holdings, Inc.
common shareholders of $76.5 million as compared to a net loss of $341.8 million for the same period in
2023. For the year ended December 31, 2024 we had Adjusted EBITDA of $539.7 million as compared
to $189.8 million for the same period in 2023. These results include $213 million and $473 million of
non-cash expenses for the years ended December 31, 2024 and 2023, respectively, which primarily
consist of depreciation and amortization and changes in fair values. For the year ended December 31,
2024, as described above, we recognized higher investment management fees and interest income
primarily driven from our debt investment platform. These increases were offset by lower levels of NOI
from hotel operations as we sold the Shelbourne hotel during the first quarter of 2024.
In our Co-Investment portfolio, we had $29.9 million of realized operating results, $32.6 million realized
gain on sale of an unconsolidated investment that was not accounted for at fair value and recorded
non-cash unrealized fair value and carried interests declines of $56.0 million during the year ended
December 31, 2024 as compared to $40.8 million of realized operating results and $293.6 million of
non-cash unrealized fair value and carried interest declines during the same period in 2023. During
the year ended December 31, 2024, we had non-cash unrealized fair value losses and carried interests
write downs primarily relating to (i) lower fair values with respect to office properties in the Western
United States, Ireland and United Kingdom due to lower market assumptions of vacancy and rental
growth with respect to the same; and (ii) the reversal of previously accrued interests with respect to
the assets described in (i) above that are located in the Western United States. Such fair value losses
were offset by a $30.4 million fair value increase on our minority investment in Zonda which closed a
merger transaction during the first quarter of 2024. This transaction led to cost synergy opportunities
and increase in earnings in that business. Operating results in our Co-Investments Portfolio declined
due to losses at recently completed development projects as we work towards stabilizing operations
and occupancy. The properties were not in service in the year ended December 31, 2023 and any costs
associated with the properties were capitalized as they were still under development during such period.
Results of Operations
The following tables summarize our results of operations by segment for the years ended December 31,
2024 and 2023 and is intended to be helpful in understanding the year over year explanations following
the tables.
Our results of operations for 2023 and 2022 can be found under Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations, which is incorporated by reference herein
to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC
on February 22, 2024, and is available on the SEC’s website at www.sec.gov and our Investor Relations
website at www.ir.kennedywilson.com (this website address is not intended to function as a hyperlink,
and the information contained in, or accessible from, our website is not intended to be part of this filing).
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
45
44
KENNEDY WILSON ANNUAL REPORT 2024
value gains and lower levels of write downs on carried interests on our investments in our Co-Investment
Portfolio as compared to the prior year. Please see “Co-Investment Portfolio Segment” below for a
discussion of the fair value movements during the current and prior periods.
Operational Highlights
Same property highlights for the year ended December 31, 2024 include:
•
For our 17,279 same property market rate multifamily units for the year ended December 31, 2024
as compared to the prior period:
•
occupancy increased 95% from 94%
•
net operating income (net effective) increased 3%
•
total revenues increased 3%
•
For our 9,157 same property affordable rate multifamily units for the year ended December 31,
2024 as compared to the prior period:
•
occupancy increased 0.4% to 95%
•
net operating income (net effective) increased 6%
•
total revenues increased 6%
•
For our 3.5 million square feet of same property office real estate for the year ended December 31,
2024 as compared to the prior period:
•
occupancy remained flat at 94%
•
net operating income (net effective) increased 2%
•
total revenues increased 2%
•
Investment Transactions for the year ended December 31, 2024 include:
•
Consolidated Portfolio:
•
Recognized $160.1 million of gain on sale of real estate, net which generated $367 million
in cash to us. The major sales included: (i) the Company’s sale of the Shelbourne hotel which
resulted in a gain of $99.1 million; (ii) the sale of a wholly-owned multifamily asset in Western
United States which resulted in a gain of $56.1 million; (iii) the sale of a building in an office
campus which had a gain of $21.6 million; (iv) the deconsolidation of a previously wholly-owned
multifamily property as a result of our sale of 90% of the ownership interest to a new partner
which resulted in a gain of $8.1 million; and (v) the remainder of gain on sale of real estate, net
was a realized loss relating to the sale of non-core retail in the United Kingdom and Spain. The
gain on sale of real estate, net includes an impairment loss of $22.1 million relating to non-core
office and retail buildings in the United Kingdom, Spain and Italy that were marketed for sale
during such period.
•
Co-Investment Portfolio
•
Completed $797.6 million in gross real estate acquisitions in which the Company had a 13.3%
ownership interest and dispositions of $613.3 million in which the Company had a 23.8%
ownership interest.
•
Originated $3.5 billion in new construction loans, completed $1.1 billion in additional fundings
on existing loans, and realized $1.0 billion in repayments, the Company’s share of which were
$86.6 million, $43.4 million and $50.1 million respectively.
Year Ended December 31, 2023
(Dollars in millions)
Co n s o li da
t e d
Co-Investments
Total
Segment Revenue
Rental
$
415.3
$
—
$
415.3
Hotel
57.1
—
57.1
Investment management fees
—
61.9
61.9
Loans
—
26.1
26.1
Total segment revenue
472.4
88.0
560.4
Loss from unconsolidated investments
Principal co-investments
—
(188.5)
(188.5)
Carried interests
—
(64.3)
(64.3)
Company’s share of Interest, Depreciation, and Taxes included in income
from unconsolidated investments
—
102.4
102.4
Loss from unconsolidated investments
—
(150.4)
(150.4)
Gain on sale of real estate, net
127.6
—
127.6
Expenses
Rental
152.6
—
152.6
Hotel
37.9
—
37.9
Compensation and related
42.7
39.0
81.7
Carried interests compensation
—
(15.1)
(15.1)
General and administrative
15.5
12.7
28.2
Other (income) loss
(2.3)
7.0
4.7
Other segment items(1)
29.3
(0.3)
29.0
Total expenses
275.7
43.3
319.0
Segment Adjusted EBITDA
$
324.3
$
(105.7)
$
218.6
Reconciliation of Segment Adjusted EBITDA to Net Income attributable to
Kennedy-Wilson Holdings, Inc. Common Shareholders
Other revenue
2.2
Compensation and related, corporate
(57.7)
General and administrative, corporate
(7.5)
Depreciation and amortization
(157.8)
Interest expense
(259.2)
Loss on early extinguishment of debt
(1.6)
Other loss
(0.3)
Benefit from income taxes
55.3
Company’s share of Interest, Depreciation, and Taxes included in income
from unconsolidated investments
(102.4)
EBITDA adjustments to NCI
29.0
Net loss
(281.4)
Net income attributable to noncontrolling interests
(22.4)
Preferred dividends
(38.0)
Net loss attributable to Kennedy-Wilson Holdings, Inc. common
shareholders
$
(341.8)
Kennedy Wilson Consolidated Financial Results: Year Ended December 31, 2024 Compared to the Year Ended
December 31, 2023
Financial Highlights
GAAP net loss to common shareholders was $76.5 million and $341.8 million for the year ended
December 31, 2024 and 2023, respectively.
Adjusted EBITDA was $539.7 million for the year ended December 31, 2024, a 189% increase from
$189.8 million for 2023. Adjusted segment EBITDA was $554.0 million for the year ended December 31,
2024 and $218.6 million for 2023. The increase in GAAP net income to common shareholders and
Adjusted EBITDA is primarily due to (i) higher levels of investment management fees (60% increase) from
our real estate debt business as compared to the prior year; and (ii) higher levels of non-cash unrealized fair
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
47
46
KENNEDY WILSON ANNUAL REPORT 2024
such properties, which resulted in a gain on sale of real estate of $79.5 million; (ii) the sale of a property
in the Western United States to our VHH platform, pursuant to which the Company retained an interest
in the asset through its ownership interest in VHH, which resulted in a gain of $15.1 million; (iii) the sale
of a consolidated multifamily property owned with a noncontrolling interest partner which resulted in
a gain of $37.6 million ($20.1 million of which was at the Company’s share) and (iv) the remainder of
gain on sale of real estate relates to the sale of non-core retail and residential properties in the Western
United States, United Kingdom, Ireland, and Spain. These sales generated total cash proceeds of $267.8
million during the year ended December 31, 2023. These gains are net of $28.6 million of impairments
relating to retail assets in the United Kingdom, Ireland and the Western United States that have been
identified for sale.
Rental expenses decreased to $150.0 million for the year ended December 31, 2024 as compared to
$152.6 million for the year ended December 31, 2023. The decrease is due to sales of properties as
discussed above which were offset by inflationary increases on items like payroll, utilities and insurance.
Hotel expenses decreased to $7.6 million for the year ended December 31, 2024 as compared to $37.9
million for the year ended December 31, 2023 due to the sale of the Shelbourne hotel in the first
quarter of 2024.
Compensation and related expenses decreased to $39.4 million for the year ended December 31,
2024 as compared to $42.7 million for the year ended December 31, 2023 due to a lower allocation of
corporate expenses to the Consolidated segment in the current period due to the growth of the
Co-Investments segment.
General and administrative expenses decreased to $14.9 million for year the ended December 31, 2024 as
compared to $15.5 million for the year ended December 31, 2023. While general and administrative
expenses were slightly higher overall for the Company during the year ended December 31, 2024 as
compared to the prior periods, there was a lower allocation of corporate expenses to the Consolidated
segment in the current period due to the growth of the Co-Investments segment.
Other income was $1.0 million for the year ended December 31, 2024 as compared to $2.3 million for
the year ended December 31, 2023. The difference period-over-period was primarily attributed to:
(i) mark to market fair value losses of $14.0 million on the Company’s undesignated interest rate caps
and swap contracts for the year ended December 31, 2024 as compared to $18.3 million in the prior
period; (ii) $18.5 million of cash proceeds received during the year ended December 31, 2024 on
interest rate caps and swaps and $16.7 million in the prior period which offset the mark to market fair
value losses discussed above; and (iii) $4.8 million of foreign exchange losses during the year ended
December 31, 2024 as compared to a loss of $0.3 million in the prior period. In addition, during the
year ended December 31, 2024 we had $4.4 million in interest income as compared to $1.3 million in
the prior period, as a result of our higher cash balance in Europe from the sale of the Shelbourne hotel.
In the current period we had $3.1 million in expenses due to severance and acquisition related costs
primarily in Europe with minimal activity in the prior year.
Net income attributable to noncontrolling interests was $0.7 million for the year ended December 31,
2024 as compared to $22.4 million for the year ended December 31, 2023. The decrease is due to
allocation of gains from the sale of real estate, net on a consolidated multifamily property and a
non-core retail asset both in the Western United States during the prior period.
Foreign Exchange—Results of Operations
A significant portion of our investments are in foreign currencies. We typically do not hedge future
operations or cash flows so changes in foreign currency rates will have an impact on our results of
operations. We have included the table below to illustrate the impact these fluctuations have had on
our revenues, net income and Adjusted EBITDA by applying the relevant exchange rates for the prior
period. Please refer to the section titled “Currency Risk—Foreign Currencies” in Item 7 for a discussion
of risks relating to foreign currency and our hedging strategy and the “Other Comprehensive Income”
section below for a discussion of the balance sheet impact of foreign currency movements on our
results of operations.
Year Ended December 31, 2024
Consolidated
Co-Investment
Total
Revenues
$
0.3
— %
$
(0.2)
—%
$
0.1
— %
Net Income
1.4
2%
1.0
1%
2.4
3%
Adjusted EBITDA
1.7
—%
0.4
—%
2.1
— %
Year Ended December 31, 2023
Consolidated
Co-Investment
Total
Revenues
$
5.9
1%
$
0.1
— %
$
6.0
1%
Net Income
(5.2)
(2)%
—
—%
(5.2)
(2)%
Adjusted EBITDA
(1.3)
(1)%
0.6
1%
(0.7)
—%
Consolidated Portfolio Segment
Rental income was $390.6 million for the year ended December 31, 2024 as compared to $415.3
million for the same period in 2023. The $24.7 million decrease is primarily due to (i) the sale of a
building in a wholly-owned office campus in Western United States in the first quarter of 2024 as well
as a major tenant vacating from other buildings in the same office campus in the fourth quarter of 2023;
(ii) the sale of a retail property in Ireland in the third quarter of 2023 and a retail property in Spain in
third quarter of 2024.
Hotel income was $9.3 million for the year ended December 31, 2024 as compared to $57.1 million for
2023. The $47.8 million decrease is due to the sale of the Shelbourne hotel in the first quarter of 2024.
Gain on sale of real estate, net was $160.1 million for the year ended December 31, 2024 as compared
to $127.6 million in the prior period. The gains recognized during the year ended December 31, 2024
are primarily due to (i) the Company’s sale of the Shelbourne hotel which resulted in a gain of
$99.1 million; (ii) the sale of a wholly-owned multifamily asset in Western United States for a gain
of $56.1 million; (iii) the sale of a building in a wholly-owned office campus which resulted in a gain of
$21.6 million; (iv) the deconsolidation of a previously wholly-owned multifamily property as a result of
our sale of 90% of the ownership interest to a new partner which resulted in a gain of $8.1 million; and
(v) the remainder of gain on sale of real estate, net relates to the sale of non-core retail in the United
Kingdom and Spain which had a realized loss in addition to impairment discussed below. These sales
generate total cash proceeds of $367.0 million during the year ended December 31, 2024. The gain on
sale of real estate, net includes an impairment loss of $22.1 million relating to non-core office and retail
buildings in the United Kingdom, Spain and Italy that were marketed for sale during such period. The
gains recognized during the year ended December 31, 2023 are primarily due to (i) the Company’s sale
of 49% of its equity interest in two previously wholly-owned market-rate multifamily properties into an
existing joint venture platform managed by the Company and retained a noncontrolling 51% interest in
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
49
48
KENNEDY WILSON ANNUAL REPORT 2024
Year Ended December 31,
2024
2023
Revenue
Rental
$
289.9
$
256.3
Hotel
31.7
11.1
Sale of real estate
46.7
19.5
Total revenue
368.3
286.9
Fair value/other adjustments
(9.8)
(233.7)
Gain on sale of real estate, net
32.6
—
Carried interests
(49.7)
(64.3)
Expenses
Rental
94.8
82.8
Hotel
36.3
16.3
Cost of real estate sold
43.1
13.6
Depreciation and amortization
3.9
3.2
Total expenses
178.1
115.9
Interest expense
(131.0)
(99.0)
Other loss
(25.4)
(26.6)
Provision for income taxes
(0.4)
(0.2)
Income (loss) from unconsolidated investments
$
6.5
$
(252.8)
The increase in income from unconsolidated investments is primarily due to the following:
Operating performance
During the year ended December 31, 2024, the Company recognized an increase in rental and
hotel revenue of $54.2 million as compared to the same period in 2023, primarily as a result of the
recapitalization of certain previously consolidated multifamily properties that are now a part of our
co-investment portfolio and the opening of the Kona Village Resort in July 2023. This increase in rental
and hotel revenue was offset by: (i) costs associated with the ongoing stabilization of the Kona Village
Resort and development properties in Europe that are in the process of leasing up, as these projects
were under development in prior period and all costs were capitalized during construction (ii) higher
interest expense due to changes in the contractual interest rates of our indebtedness and higher debt
balances due to the increase in assets in Co-Investment portfolio; and (iii) lower income from sales of
residential units at our Kohanaiki development in Hawaii as compared to the prior period.
We had a gain on sale of real estate, net of $32.6 million during the year ended December 31, 2024 due
to the sale of the majority of our interest in a multifamily property in Western United States that was
not accounted for under fair value and we did not have comparable activity in the prior period.
Fair Value
During the year ended December 31, 2024, the Company recorded fair value decreases with respect to:
(i) lower fair values with respect to office properties in the Western United States, Ireland and United
Kingdom due to lower market assumptions of vacancy and rental growth with respect to the same; and
(ii) non-cash fair value losses on mortgage debt and hedges associated with interest rates as previous
non-cash fair value gains unwind as loans and hedges move closer to maturity dates. These fair value
The following items are not in Adjusted Segment EBITDA above for Consolidated portfolio but are in
net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders:
Depreciation and amortization decreased to $148.3 million for year ended December 31, 2024 the as
compared to $157.8 million for the year ended December 31, 2023 as a result of the Company being a
net seller of assets over the last year.
Interest expense was $160.5 million for the year ended December 31, 2024 as compared to $162.0
million for the year ended December 31, 2023. The decrease is primarily due to decreases in
consolidated mortgage balance over 2024 due to asset sales over the current and prior periods which
was offset by higher interest rates on mortgages in the current period.
Co-Investment Portfolio Segment
Investment Management
We receive fees, including asset management fees, construction management fees, and/or acquisition
and disposition fees, for managing assets in our Co-Investment Portfolio on behalf of our partners.
During the year ended December 31, 2024, fees recorded through revenues were $98.9 million as
compared to $61.9 million for the same period in 2023. The increase in recorded fees for the year
ended December 31, 2024 as compared to the same period in 2023 was due to origination fees on loan
originations in the construction loan portfolio and higher base management fees for the year ended
December 31, 2024 as a result of having more AUM in our Co-Investment Portfolio mainly due to the
growth of our global debt platform and Western United Sates multifamily separate accounts.
Co-Investment Operations—Loans
Loan income from loan investments increased to $31.2 million for the year ended December 31, 2024
as compared to $26.1 million for the same period in 2023. These amounts represent interest income
on our share of loan investments within our global debt platform. The increase is primarily due to the
growth of the global debt platform and rising interest rates as the majority of our loans in our global
debt platform are floating rate loans.
We recognized $11.0 million of reserves against our loan portfolio in other loss during the year ended
December 31, 2024 as compared to $7.0 million in the prior period. The reserves on our loan portfolio
relate to our bridge loan portfolio as market conditions indicate that there could be potential credit
losses due to the current interest rate environment and general market conditions.
Co-Investment Operations—Real Estate
In addition to our management of investments in the Co-Investment Portfolio, we generally have
ownership interests in the properties. The table below represents a breakout of the amounts
within income from unconsolidated investments which represents our share of underlying property
investments in the Co-Investment Portfolio assets and any associated carried interests for the year
ended December 31, 2024 and 2023:
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
51
50
KENNEDY WILSON ANNUAL REPORT 2024
additional expense in the prior period in connection with the retirement of the Company’s former
President (the “former executive”) from the Company. Pursuant to the terms of the former executive’s
separation and consulting agreement with the Company (the “Agreement”), the former executive’s
outstanding restricted share units, held as of her separation date, will continue to vest in future periods
in accordance with the terms of the applicable restricted stock unit grants agreements. However, the
arrangement per the Agreement is considered a modification of her awards and the Company has
revalued her share awards over the remaining periods, which resulted in a one-time $5.5 million of
additional expense year ended December 31, 2023.
Non-Segment interest expense on our corporate unsecured debt was $100.6 million for the year ended
December 31, 2024 as compared to $97.2 million for the same period in 2023. For the year ended
December 31, 2024 we had lower capitalized interest in the current period as our development pipeline
has neared completion.
Other income (loss) increased to income of $14.2 million for the year ended December 31, 2024 as
compared to other loss of $0.3 million for the same period in 2023. The Company recorded realized
foreign exchange gains of $6.5 million for the year ended December 31, 2024 as compared to realized
losses of $3.3 million in the prior period primarily due to decreases in the euro exchange rate on
portion of its line of credit that was drawn in euros. We recorded $5.9 million in expenses associated
with future compensation and consulting fees in connection with the former executive’s Agreement,
as discussed above during the prior period with no comparable activity in the current period. During
the year ended December 31, 2024, we recorded $5.5 million of mark to market fair value gains on
interest rate caps and swaps that the Company bought to hedge its variable rate interest rate exposure
as compared to $4.3 million in year ended December 31, 2023. We received $7.6 million and $7.4
million in cash on interest rate caps and swaps during the year ended December 31, 2024 and 2023,
respectively. For the year ended December 31, 2024 we received $2.5 million of interest income on
bank deposits due to rising interest rates as compared to $4.3 million in the prior period.
Provision for income taxes was $10.2 million for the year ended December 31, 2024 as compared to
a benefit from taxes of $55.3 million for the year ended December 31, 2023. The increase in income
tax expense was primarily attributable to a $313.2 million increase in worldwide pre-tax book income
in 2024 as compared to 2023, primarily as a result of the prior period having significant non-cash fair
value decreases during the year. Our effective tax rate for the year ended December 31, 2024 was
(43.6)% as compared to an effective tax rate of 16.4% in 2023. Significant items impacting the tax
provision include: tax charges associated with non-deductible executive compensation under Code
Section 162(m), changes in our estimated state effective tax rate and KWE recognizing higher tax
gain on sales of real estate, which is offset by a partial release of the valuation allowance against the
deferred tax asset associated with our excess tax basis in the KWE investment. During the year ended
December 31, 2024, our net deferred tax asset (and associated valuation allowance) related to our
excess tax basis in the legacy UK real estate assets increased due to book depreciation taken on UK real
estate buildings, which is not subjected to depreciation for UK tax purposes. In addition, the deferred
tax asset (and associated valuation allowance) related to our investment in KWE increased due to higher
taxable income compared to book income.
Preferred dividends were $43.5 million for the year ended December 31, 2024 as compared to $38.0
million for the year ended December 31, 2023. The increase was due to the issuance of $200 million
of our Series C cumulative perpetual preferred stock to affiliates of Fairfax Financial Holdings Limited
(collectively, “Fairfax”) during June 2023.
decreases were offset by (i) fair value increases with respect to our minority ownership interest in
Zonda, a technology based real estate residential housing advisory business, as a result of its recent
completion of a merger transaction; (ii) fair value increases associated with our investment in VHH due
to increases in NOI at the underlying properties and lower cost of capital associated with the business
as interest rates have moved down; and (iii) fair value increase on a recently completed multifamily
development in the Western United States as operations ramp up.
During the year ended December 31, 2024, we recorded a $49.7 million decrease in the accrual for
carried interests in our commingled funds primarily related to the fair value decreases that the Company
recorded with respect to office assets in a United States commingled fund and on certain separate
account platforms that hold multifamily assets in the Western United States.
During the year ended December 31, 2023, valuations continued to pull back primarily as a result
of continued expansion of estimated capitalization rates and significant reductions in transaction
volumes and liquidity due to, increased borrowing rates as the Federal Reserve continued its interest
rate hikes and increased the federal funds rate by 100 basis points during 2023. As such, during the
year ended December 31, 2023 the Company recorded fair value decreases with respect to: (i) certain
office properties in the Western United States, Ireland and United Kingdom primarily due to expansion
in estimated capitalization rates, primarily as a result of increased interest rates, which also led to us
recording a decrease of the accrued carried interests with respect to funds that held these investments
as discussed below; (ii) certain market rate multifamily properties in the Western United States and
Ireland primarily due to expansion in estimated capitalization rates; (iii) the write off of a $5 million
investment in a social impact real estate fund manager; and (iv) a decrease in the fair value of a building
that we hold a 10% ownership interest in due to a national co-working office tenant no longer paying
rent at such property. These fair value decreases were offset by (i) a fair value increase of $51.5 million
with respect to our investment in 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, 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), the resyndication of
properties and (ii) fair value increases recognized by the Company on fixed rate mortgages due to
increases in market interest rates.
During the year ended December 31, 2023, we recorded a $64.3 million decrease in the accrual
(non-cash) for carried interests primarily related to the fair value decreases noted above. VHH does not
have a carried interests arrangement associated with the investment, and therefore, such increases in
non-cash fair value noted above did not contribute to the caried interests results.
Please also see “Part I. Item 1. “Fair Value Investments”” for additional details.
Segment Expenses
Expenses increased to $59.3 million for the year ended December 31, 2024 as compared to $43.3
million for the same period in 2023. The increase compared to the prior period was primarily due to
higher allocation of corporate expenses due to the growth of our real estate debt business.
Non-Segment Items
Compensation and related, corporate for the year ended December 31, 2024 were $46.3 million
as compared to $57.7 million for the year ended December 31, 2023. The decrease in expenses is
primarily due to lower share-based compensation due to lower share price on recent grants and
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
53
52
KENNEDY WILSON ANNUAL REPORT 2024
Our short-term liquidity requirements primarily consist of operating expenses and other expenditures
associated with our properties and loan investments, dividend payments to our common and preferred
shareholders, interest on our unsecured corporate debt, development, redevelopment and capital
expenditures and, potentially, share repurchases and acquisitions. We currently expect to meet our
short-term liquidity requirements through our existing cash and cash equivalents plus capital generated
from our investments, and sales of real estate as well as availability on our current revolving lines of
credit. Our need to raise funds from time to time to meet our capital requirements will depend on
many factors, including the success and pace of the implementation of our strategy for strategic and
accretive growth where appropriate. Additionally, we may opportunistically seek to raise capital (equity
or debt) when we believe market conditions are favorable and when consistent with our growth and
financing strategies. We may also seek third party financing to the extent that we engage in additional
strategic investments, including in order to raise capital necessary to execute potential development or
redevelopment strategies or acquire real estate, note portfolios, or other real estate related companies
or real estate related securities. Similarly, we may from time to time seek to refinance our existing
indebtedness opportunistically in order to reduce our overall cost of debt capital or optimize the
maturity schedule of our outstanding indebtedness, or for other strategic reasons. We have an at-the-
market (“ATM Program”) pursuant to which we 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. As of December 31, 2024, the Company has $169.9 million
available under the ATM Program. The Company did not issue any shares under the ATM program
in 2024. During the year ended December 31, 2023, the Company issued 1.7 million shares at a
weighted average price of $18.07 per share for net proceeds of $29.8 million under our ATM Program.
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.
As of December 31, 2024, we and our consolidated subsidiaries had approximately $217.5 million
($62.6 million of which is in foreign currencies of GBP or EUR) of consolidated cash (as shown on our
consolidated balance sheet), our share of cash held at unconsolidated Co-Investment Portfolio assets
was $137.5 million and we had $451.7 million of availability under lines of credit. As of December 31,
2024, we have $94.5 million of restricted cash, which is included in cash and cash equivalents, that
primarily relates to lender reserves associated with consolidated mortgages that we hold on properties
and reserves held on loans in the Construction Loan Portfolio (as defined herein) on behalf of the
borrowers under such loans. These reserves typically relate to interest, taxes, insurance and future
capital expenditures at the properties as well as reserves held on our loan investments.
Additionally, we are subject to withholding taxes to the extent we repatriate cash from certain of our
foreign subsidiaries. Under the KWE Notes covenants, we have to maintain certain interest coverage
and leverage ratios to remain in compliance (see “Indebtedness and Related Covenants” for more detail
on KWE Notes). Due to these covenants, we evaluate the tax and covenant implications before we
distribute cash, which could impact the availability of funds at the corporate level.
As discussed throughout this report, ongoing macroeconomic conditions, such as, but not limited
to, elevated levels of inflation and interest rates, banks’ ability and willingness to lend, adverse
developments affecting financial institutions and other geopolitical issues, including large-scale conflicts
Comprehensive Income
The two major components that drive the change in other comprehensive income are the changes in
foreign currency rates and the gains or loss of any associated foreign currency hedges. Please refer to
the section titled “Currency Risk—Foreign Currencies” in Item 7 for a discussion of our risks relating to
foreign currency and our hedging strategy. Below is a table that details the activity for the years ended
December 31, 2024 and 2023.
Year Ended December 31,
(Dollars in millions)
2024
2023
Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders
$
(76.5)
$
(341.8)
Unrealized foreign currency translation (loss) gain, net of noncontrolling interests and tax
(36.1)
31.3
Amounts reclassified out of accumulated other comprehensive loss during the period
5.1
—
Unrealized foreign currency derivative contract gain (loss), net of noncontrolling
interests and tax
29.5
(5.5)
Comprehensive loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders
$
(78.0)
$
(316.0)
The main currencies that the Company has exposure to are the euro and pound sterling. The table
below represents the change in rates over the years ended December 31, 2024 and 2023 as compared
to the U.S. Dollar:
Year Ended December 31,
2024
2023
Euro
(6.2)%
3.1%
GBP
(1.7)%
5.2%
Comprehensive loss, net of taxes and noncontrolling interests, for the year ended December 31, 2024
and 2023 was a loss of $78.0 million and $316.0 million, respectively. The Company experienced net
unrealized loss on foreign currency through other comprehensive income for the period due to the EUR
and GBP weakening against the U.S. Dollar. Unrealized hedge gains were driven by hedges that the
Company has on its GBP-denominated investments.
Liquidity and Capital Resources
Our liquidity and capital resources requirements include acquisitions of real estate and real estate
related assets, funding development projects, loan draws (particularly on our construction loan
business), capital expenditures for consolidated real estate and unconsolidated investments, working
capital needs, interest and principal payments on our debt and dividends to our common and preferred
shareholders. We finance these activities with internally generated funds through general operations
including rental income, interest income, asset management fees, asset sales, borrowings under our
revolving line of credit, sales of equity (common and preferred) and debt securities and cash out
refinancings to the extent they are available and fit within our overall portfolio leverage strategy. Our
investments in real estate are typically financed with equity from our balance sheet, third party equity
and mortgage loans secured by such real estate. These mortgage loans are generally non-recourse in
that, in the event of default, recourse will be limited to the mortgaged property serving as collateral,
subject to limited customary exceptions. In some cases, we guarantee a portion of the loan related
to a consolidated property or an unconsolidated investment, usually until some condition, such as
completion of construction or leasing or certain net operating income criteria, has been met. We do not
expect these guarantees to materially affect liquidity or capital resources. Please refer to the section
titled “Off Balance Sheet Arrangements” for further information.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
55
54
KENNEDY WILSON ANNUAL REPORT 2024
The table below describes the market rate development or redevelopment projects that the Company is
undergoing or considering, and excludes the affordable and/or age-restricted multifamily units that it is
developing in its VHH platform and its residential investments ($ in millions).
If Completed
Current
Location
Type
Investment
Status
Est.
Completion
Date(1)
MF
Units
KW Est.
Total
Cost(3)
KW
Costs
Incurred(3)
KW Est.
Costs to
Complete(2)
Mountain West
Multifamily
Cloudveil
Under Construction
2025
288
46
22
23
Pacific Northwest
Multifamily
Bend
In Planning
TBD
TBD
TBD
22
TBD
Total
288
$
46
$
44
$
23
(1) The actual completion date for projects is subject to several factors, many of which are not within our control. Accordingly, the
projects identified may not be completed when expected, or at all.
(2) Figures shown in this column are an estimate of our remaining costs to develop to completion or to complete the entitlement
process, as applicable, as of December 31, 2024. Total remaining costs may be financed with third-party cash contributions, proceeds
from projected sales, and/or debt financing. These figures are budgeted costs and are subject to change. There is no guarantee
that we will be able to secure the project-level debt financing that is assumed in the figures above. If we are unable to secure
such financing, the amount of capital we will have to invest to complete the projects above may significantly increase. Our cost to
complete differs from our share total capitalization as the latter includes costs that have already been incurred to date while the
former relates to future estimated costs.
(3) Includes land costs.
Unstabilized and Value Add Capital Expenditure Programs
We currently have seven assets that comprise 1.4 million commercial square feet, 150 hotel rooms and
232 multifamily units that are currently unstabilized and are undergoing various stages of lease-up,
value-add or development. In order to stabilize these assets we project our share of costs to complete
to be $20.7 million. The cost to complete this work and the time frame described is subject to many
uncertainties that are beyond our control, and the actual costs may be significantly higher than the
estimates shown below.
The table below describes assets that are currently unstabilized ($ in millions):
Property
Location
Type
KW
Ownership %
# of
Assets
Commercial
Sq. Ft.
Hotel Rooms/
MF Units
Leased %
KW Est.
Costs(1)
Kona Village
Hawaii
Hotel
50%
1
—
150
N/A
$
—
Coopers Cross
Ireland(2)
Office
50%
1
395,000
—
—
3.0
The Cornerstone
Ireland(2)
Multifamily
50%
1
27,000
232
50
0.8
The Heights
United Kingdom(2) Office
51%
1
356,000
—
65
—
Stockley Park
United Kingdom(2) Office
100%
1
54,000
—
—
—
H4 and H7 at
Hamilton Landing(3)
Northern
California
Office
100%
1
118,000
—
34
5.8
90 East
Pacific Northwest Office
100%
1
410,000
—
—
11.1
Total Lease-Up
7
1,360,000
382
24 % $
20.7
(1) Figures shown in this column are an estimate of KW’s remaining costs to develop to completion or to complete the entitlement
process, as applicable, as of December 31, 2024. Total remaining costs may be financed with third-party cash contributions, proceeds
from projected sales, and/or debt financing. These figures are budgeted costs and are subject to change. There is no guarantee that
the Company will be able to secure the project-level debt financing that is assumed in the figures above. If the Company is unable to
secure such financing, the amount of capital that the Company will have to invest to complete the projects above may significantly
increase.
(2) Estimated foreign exchange rates are €1.00 = $1.03 and £1.00 = $1.25, related to NOI.
and warfare, and government responses to the same, continue to adversely impact the global economy
and create volatility in our business results and operations, including our ability to access the capital
markets at desired terms or at all. In addition to such market conditions, Moody’s Investors Service, Inc.
(“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), a division of The McGraw-Hill Companies,
Inc., rate our outstanding debt. These ratings are based on a variety of factors, including our current
leverage and transactional activity. In December 2024, S&P downgraded us to ‘B+’ from ‘BB-’, the KWE
Notes to ‘BB-’ from ‘BB’ and the KWI Notes to ‘B’ from ‘B+’. These ratings and downgrades thereof may
impact our ability to access the debt market in the future at desired terms or at all. S&P also lowered
their issue-level rating on Kennedy Wilson’s preferred stock to “CCC+”. On June 5, 2023 Moody’s
downgraded the Company’s rating from “B1” to “B2” with a stable outlook. Please also see “Part I.
Item 1A. Risk Factors”.
Development and Redevelopment
Kennedy Wilson has market rate development, redevelopment and entitlement projects that are
underway or are in the planning stages. These initiatives, if completed, will result in market-rate income
producing assets. As of December 31, 2024, we have 288 multifamily units we are actively developing.
If these projects were brought to completion, the estimated share of the Company’s total cost would
be approximately $46.0 million, which we expect would be funded through our existing equity, third-
party equity, project sales and secured debt financing. As of December 31, 2024, we have incurred
$44.0 million of costs to date and expect to spend an additional $23.0 million to develop to completion
or complete the entitlement process on these projects. Of the $23.0 million of remaining costs to
complete, we currently expect it to be funded through secured mortgage financing. This represents
total capital over the life of the projects and is not a representation of peak equity and does not take
into account any distributions over the course of the investment. When development projects are
completed, they typically move into our unstabilized category as they undergo lease up post-completion.
In addition to the market rate development and redevelopment projects described above, we have
1,870 affordable and/or age-restricted multifamily units within our VHH platform that we are currently
developing or in the process of stabilizing. We expect to have no cash equity basis in these projects
at completion due to the use of property level debt and proceeds from the sale of tax credits. If these
projects are brought to completion, we expect to receive $23.2 million in cash from paid developer fees
and proceeds from the sale of tax credits.
The figures described in the two preceding paragraphs and in the table below are budgeted costs and
are subject to change. There is no certainty that the Company will develop or redevelop any or all of
these potential projects and the Company and its equity partners are under no obligation to complete
these projects and may dispose of any such assets after adding value through the entitlement process.
These are budgeted figures and are subject to change (increase or decrease) due to a number of factors
(some of which are beyond our control), including, that these projects are being developed under
construction management contracts with the general contractors and therefore we and our equity
partners could be called upon to contribute additional capital in the event that actual costs exceed
budgeted costs. The scope of these projects may also change. The estimated costs and amounts of cash
to complete projects reflected in the table below represent management’s current expectations and the
total costs incurred to date include the land costs of these projects.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
57
56
KENNEDY WILSON ANNUAL REPORT 2024
Program. As of December 31, 2024, (i) of the 75 investments in the Company’s co-investment portfolio,
11 of such investments are a part of the Carried Interests Sharing Program; (ii) the Company’s total
accrued carried interests in its financial statements is $27.6 million, of which $7.1 million was accrued
as carried interests compensation expense as part of the Carried Interests Program. During the years
ended December 31, 2024, 2023 and 2022, the Company recognized a reversal of $16.6 million, $15.1
million and $4.3 million respectively of previously recognized expenses, related to this program.
The Company also maintains a global employee co-investment program (the “Co-Investment
Program”). The named executive officers are not participants of the Co-Investment Program. Under
the Co-Investment Program, certain employees are provided the opportunity to invest alongside the
Company in its investments (in all future investments and certain recently acquired transactions). The
amount of funds that the employees, as a group, can invest in the Company’s investments is capped at
1.5% of the Company’s equity. Generally (with certain exceptions), participants in the Co-Investment
Program will make commitments to the program on an annual basis and invest in every investment
made by the Company (investments that such employee has an active role in acquiring and managing) in
the applicable year.
Cash Flows
The following table summarizes the cash provided by or used in our operating, investing and financing
activities for the years ended December 31, 2024 and 2023:
Year ended December 31,
(Dollars in millions)
2024
2023
Net cash provided by operating activities
$
55.1
$
48.9
Net cash provided by (used in) investing activities
414.2
(11.7)
Net cash (used in) provided by financing activities
(565.5)
(164.8)
Operating
Our cash flows from operating activities are primarily dependent upon operations from consolidated
properties, the operating distributions and fees from our Co-Investment Platform, general and
administrative costs, compensation and interest expense payments. For the years ended December 31,
2024 and 2023, cash flows provided by operations were $55.1 million and $48.9 million, respectively.
The increase in cash provided by operations was primarily due to fees and interest income earned on
our real estate credit business earned during the year ended December 31, 2024.
Investing
Our cash flows from investing activities are generally comprised of cash used to fund property
acquisitions, investments in unconsolidated investments, capital expenditures, purchases of loans
secured by real estate, as well as cash received from property sales and return of capital from our
co-investments.
Year Ended December 31, 2024
Net cash used in investing activities totaled $414.2 million for the year ended December 31, 2024.
During the year ended December 31, 2024, we received $589.5 million primarily from the sale of
Shelbourne Hotel, a building at the 90 East office complex in Issaquah, Washington, and two multifamily
properties in Western United States and non-core commercial assets in the United Kingdom and Spain.
We received $86.6 million in investing distributions from our co-investments primarily from the sale of
a multifamily property in the Western United States, excess proceeds from refinancing mortgage loans
In addition to our development, redevelopment and stabilization initiatives, we regularly implement a
value-add approach to our consolidated and unconsolidated investments, which includes rehabbing
properties and adding or updating property amenities. The capital required to implement these value-
add initiatives is typically funded with capital calls, refinancing or supplemental financings at the
property level. We are not required to make these investments, but they are a key driver in our ability
to increase net operating income at our properties post-acquisition.
Other Items
On November 3, 2020, the Company’s board of directors authorized an expansion of its existing $250
million share repurchase plan to $500 million. Repurchases under the program may be made in the open
market, in privately negotiated transactions, through the net settlement of the Company’s restricted
stock grants or otherwise, with the amount and timing of repurchases dependent on market conditions
and subject to the Company’s discretion. The program does not obligate the Company to repurchase
any specific number of shares and, subject to compliance with applicable laws, may be suspended or
terminated at any time without prior notice. As of December 31, 2024, we had $109.7 million remaining
under the plan for stock repurchases. Please see the section titled “Purchases of Equity Securities by the
Company” in Part II of this annual report on Form 10-K for additional information.
The Company maintains a deferred compensation program for certain employees of the Company (the
“Deferred Compensation Program”). The named executive officers of the Company are not participants
of the Deferred Compensation Program. The compensation committee of the Company’s board of
directors approves an amount annually to be allocated to certain employees of the Company in the
United States and in Europe. The amount allocated to each employee vests ratably over a three-year
vesting period, subject to continued employment with the Company. Prior to 2022, half of the allocated
amount was tied specifically to the performance and value of the Company’s common stock at the
time of each vesting (“Bonus Units”). Beginning in 2022, the entire amount allocated to each employee
consisted of Bonus Units. Under the Deferred Compensation Program, at the time of each vesting,
the employees receive an amount equal to either the dividend yield of the Company’s common stock
or the actual amount of dividends paid on the Company common stock (in the case of Bonus Units)
during the immediately preceding year on the amount that is subject to such vesting. During the years
ended December 31, 2024, 2023 and 2022 the Company recognized $6.4 million, $8.2 million and
$9.2 million, respectively, under the Deferred Cash Bonus Program.
As discussed throughout this report, the Company also maintains a carried interests sharing program
for certain employees of the Company (the “Carried Interests Sharing Program”). The compensation
committee of the Company’s board of directors recently approved, reserved and authorized increasing
the pool available for the Company employees from thirty-five percent to fifty percent issue of any
carried interests earned by certain commingled funds and separate account investments to be allocated
to certain employees of the Company. Sixty percent of the award to each employee vests ratably over
four years and the remaining forty percent vest upon the consummation of a liquidity event of the
investment whereby the Company actually receives cash carried interests from its partner. The full
carried interests earned by the Company will be recorded to income from unconsolidated investments
and the amount allocated to employees is recorded as carried interests compensation. Not all of the
Company’s co-investment structures are included in the Carried Interests Sharing Program either
because a structure does not incorporate carried interests that the Company is eligible to receive and/
or a structure was an existing structure prior to the Board’s approval of the Carried Interests Sharing
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
59
58
KENNEDY WILSON ANNUAL REPORT 2024
Year Ended December 31, 2023
Net cash used in financing activities totaled $164.8 million for the year ended December 31, 2023.
During the year ended December 31, 2023, the Company received proceeds of $197.4 million from the
issuance of its Series C perpetual preferred stock and warrants to Fairfax. We drew $50.0 million on our
revolving line of credit and repaid $185.0 million on our revolving line of credit during the year ended
December 31, 2023. Kennedy Wilson received proceeds of $408.9 million from mortgage loans to
finance and refinance consolidated property acquisitions. These proceeds were offset by the repayment
of $446.4 million of mortgage debt. Additionally, we paid common dividends of $136.0 million and
preferred dividends of $35.5 million, and we repurchased $20.9 million of our common stock under our
share repurchase plan.
Contractual Obligations and Commercial Commitments
At December 31, 2024, Kennedy Wilson’s consolidated contractual cash obligations, including debt,
lines of credit, operating leases and ground leases included the following:
Payments due by period(9)
(Dollars in millions)
Total
Less than
1 year
1–3 years
4–5 years
After
5 years
Contractual obligations
Borrowings:(1)(4)
Mortgage debt(2)
$
2,613.1
$
100.4
$
1,230.1
$
507.7
$
774.9
Senior notes(3)
1,800.0
—
—
1,200.0
600.0
Credit facility
98.3
—
98.3
—
—
KWE unsecured bonds(5)
310.5
310.5
—
—
Total borrowings(4)
4,821.9
410.9
1,328.4
1,707.7
1,374.9
Operating leases
9.9
0.7
2.0
2.3
4.9
Ground leases(8)
28.7
0.1
0.4
0.4
27.8
Total contractual cash obligations(6)(7)
$
4,860.5
$
411.7
$
1,330.8
$
1,710.4
$
1,407.6
(1) See Notes 8-10 of our Notes to Consolidated Financial Statements. Figures do not include scheduled interest payments. Assuming
each debt obligation is held until maturity, we estimate that we will make the following interest payments: Less than 1 year - $136.7
million; 1-3 years - $277.5 million; 4-5 years - $91.1 million; After 5 years - $36.3 million. The interest payments on variable rate debt
have been calculated at the interest rate in effect as of December 31, 2024.
(2) Excludes $1.4 million net unamortized debt discount on mortgage debt.
(3) Excludes $2.7 million unamortized debt premium on senior notes.
(4) Excludes $37.8 million of unamortized loan fees.
(5) Excludes $0.5 million net unamortized discount on KWE unsecured bonds.
(6) Kennedy Wilson’s share of contractual obligations, (excluding amounts that are attributable to noncontrolling interests), including
debt, lines of credit, operating leases and ground leases, consisted of the following: Less than 1 year - $411.7 million; 1-3 years -
$1,329.8 million; 4-5 years - $1,678.1 million; After 5 years - $1,368.9 million.
(7) Table above excludes $284.7 million unfulfilled capital commitments to our unconsolidated investments and $123.4 million on loan
investments.
(8) Ground leases on consolidated assets. Amounts are undiscounted and have leases that expire as far out as 2258.
(9) Principal debt payments include the effect of extension options.
Indebtedness and Related Covenants
The following describes certain indebtedness and related covenants.
KWI Notes
On February 11, 2021, Kennedy-Wilson, Inc., issued $500.0 million aggregate principal amount of 2029
Notes and $500.0 million aggregate principal amount of 2031 Notes (together with the 2029 Notes, the
“initial notes”). On March 15, 2021, Kennedy-Wilson, Inc. issued an additional $100 million aggregate
on unconsolidated investments, conversion of VHH assets and redemption of a hedge fund investment.
Loan draws and our share of new loans issued as part of our global debt platform were $40.1 million.
We received $49.8 million of proceeds from repayments on loans previously issued. We spent $131.6
million on capital expenditures on consolidated assets primarily relating to development properties
as well as value add additions to our operating properties. We also contributed $125.0 million to
unconsolidated investments that were primarily used to fund our share of new acquisitions made
within our new commingled fund in the United States, capital calls on European developments, capital
calls on the Kona Village hotel while we are working towards stabilization and a merger relating to our
investment in Zonda.
Year Ended December 31, 2023
Net cash used in investing activities totaled $11.7 million for the year ended December 31, 2023.
During the year ended December 31, 2023, we received $383.9 million primarily from sale of equity
interests in three Western United States multifamily properties into existing co-investment platforms
which triggered deconsolidation and the recognition of capital gains, the sale of a multifamily property
in Western United States to a third party, the sale of non-core retail assets in the United Kingdom,
Ireland, Spain and Western United States and a residential investment in the Western United States.
We received $92.4 million in investing distributions from our co-investments primarily from the
sale of assets within our comingled funds and financing distributions from multifamily properties in
Ireland. Our share of new loans issued acquired as part of our global debt platform were $150.2 million
(including $106.4 million relating to the Construction Loan Portfolio acquisition), and we received $48.9
million of proceeds from repayments on loans previously issued. We spent $217.2 million on capital
expenditures on consolidated assets, as well as continued investments in our development properties
and value add on our operating properties. We also contributed $167.4 million to unconsolidated
investments that were primarily used to fund our share of construction for the completion of Kona
Village as well as European development projects and new acquisitions made within our European
Industrial JV platform and commingled funds. We spent $2.1 million in premiums on new derivative
contracts entered into during the year ended December 31, 2023.
Financing
Our net cash related to financing activities is generally impacted by capital-raising activities net of
dividends and distributions paid to common and preferred shareholders and noncontrolling interests as
well as financing activities for consolidated real estate investments.
Year Ended December 31, 2024
Net cash used in financing activities totaled $565.5 million for the year ended December 31, 2024. We
drew $170.0 million on our revolving line of credit and repaid $215.2 million on our revolving line of
credit during the year ended December 31, 2024. Kennedy Wilson received proceeds of $360.7 million
from mortgage loans to finance and refinance consolidated property acquisitions. These proceeds were
offset by the repayment of $521.1 million of mortgage debt, the $181.1 million repayment of KWE
Notes, and $13.9 million of loan issuance costs primarily relating to the extension of our revolving line
of credit. Additionally, we paid common dividends of $100.2 million and preferred dividends of $43.5
million, and we repurchased $15.0 million of our common stock under our share repurchase plan.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
61
60
KENNEDY WILSON ANNUAL REPORT 2024
The Company has $98.3 million outstanding on the A&R Facility as of December 31, 2024 with $451.7
million available to be drawn under the revolving credit facility.
Debt Covenants
The Third A&R Facility and the indentures governing the notes contain numerous restrictive covenants
that, among other things, limit the Company and certain of its subsidiaries’ ability to incur additional
indebtedness, pay dividends or make distributions to stockholders, repurchase capital stock or debt,
make investments, sell assets or subsidiary stock, create or permit liens, engage in transactions with
affiliates, enter into sale/leaseback transactions, issue subsidiary equity and enter into consolidations
or mergers.
The Third Amended and Restated Credit Agreement, dated as of September 12, 2024 (the “Credit
Agreement”) also contains financial covenants, which require the Company to maintain (i) a maximum
consolidated leverage ratio (as defined in the Credit Agreement) of not greater than 65%, measured
as of the last day of each fiscal quarter; (ii) a minimum fixed charge coverage ratio (as defined in the
Credit Agreement) of not less than 1.60 to 1.00, measured as of the last day of each fiscal quarter for
the period of four full fiscal quarters then ended; (iii) a minimum consolidated tangible net worth equal
to or greater than the sum of $1,844,222,000 plus an amount equal to fifty percent (50%) of net equity
proceeds received by the Company after the date of the most recent financial statements that are
available as of September 12, 2024, measured as of the last day of each fiscal quarter; (iv) a maximum
recourse leverage ratio (as defined in the Credit Agreement) of not greater than an amount equal to
consolidated tangible net worth as of the measurement date multiplied by 1.5, measured as of the
last day of each fiscal quarter; (v) a maximum secured recourse leverage ratio (as defined in the Credit
Agreement) of not greater than an amount equal to 3.5% of consolidated total asset value (as defined
in the Credit Agreement) and $313,054,000, measured as of the last day of each fiscal quarter; (vi) a
maximum adjusted secured leverage ratio (as defined in the Credit Agreement) of not greater than 55%,
measured as of the last day of each fiscal quarter; and (vii) liquidity (as defined in the Credit Agreement)
of at least $75.0 million. As of December 31, 2024, the Company was in compliance with the foregoing
financial covenants. The obligations of the Borrower pursuant to the Credit Agreement are guaranteed
by the Company and certain wholly-owned subsidiaries of the Company.
The indentures governing the notes limit Kennedy-Wilson, Inc.’s ability to incur additional indebtedness
if, on the date of such incurrence and after giving effect to the new indebtedness, Kennedy-Wilson,
Inc.’s maximum balance sheet leverage ratio (as defined in the indenture) is greater than 1.50 to 1.00.
This ratio is measured at the time of incurrence of additional indebtedness.
The KWE Notes require KWE to maintain (i) consolidated net indebtedness (as defined in the trust deed
for the notes) of no more than 60% of the total asset value; (ii) consolidated secured indebtedness (less
cash and cash equivalents) of no more than 50% of total asset value; (iii) an interest coverage ratio of at
least 1.5 to 1.0, and (iv) unencumbered assets of no less than 125% of the unsecured indebtedness (less
cash & cash equivalents). The covenants associated with KWE Notes are not an obligation of KWH and
these amounts are presented as a component of our investment debt as it is an unsecured obligation
relating to an underlying investment of ours. As of December 31, 2024, the Company was in compliance
with these covenants.
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 Kennedy Wilson previously
issued 2029 Notes and the 2031 Notes. On August 23, 2021, Kennedy-Wilson, Inc. issued $600.0
million aggregate principal amount of 2030 Notes (together with the 2029 Notes, the 2031 Notes and
the additional notes, the “notes”). The notes are senior, unsecured obligations of Kennedy Wilson and
are guaranteed by Kennedy-Wilson Holdings, Inc. and certain subsidiaries of Kennedy Wilson.
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), Kennedy Wilson had the right to (with the respect to the 2029
Notes and 20230 Notes) and may redeem the 2031 Notes, 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), Kennedy Wilson 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),
Kennedy Wilson 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 Kennedy Wilson 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 total
amount of the 2029 Notes, 2030 Notes and 2031 Notes included in the Company’s consolidated
balance sheets was $1.8 billion at December 31, 2024.
KWE Notes
As of December 31, 2024, KWE has notes outstanding (“KWE Notes”) of $310.0 million (based on
December 31, 2024 rates), have an annual fixed coupon of 3.25% and mature in 2025. During the year
ended December 31, 2024, the Company redeemed a total of $181.1 million in aggregate nominal
amount of the outstanding KWE Notes. The KWE Notes are subject to the restrictive covenants
discussed below.
Borrowings Under Line of Credit
On September 12, 2024, the Company, through a wholly-owned subsidiary, extended its existing
revolving line of credit and increased the capacity to $550 million (“Third A&R Facility”). The Third
A&R Facility has a maturity date of September 12, 2027. Subject to certain conditions precedent and
at Kennedy-Wilson, Inc.’s (the “Borrower”) option, the maturity date of the Third A&R Facility may be
extended by a year.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
63
62
KENNEDY WILSON ANNUAL REPORT 2024
Capital Commitments
As of December 31, 2024, we have unfulfilled capital commitments totaling $284.7 million to our
unconsolidated investments and $123.4 million to our loan portfolio. In addition to the unfunded
capital commitments on its joint venture investments, has $1.2 million of equity commitments relating
to unconsolidated development projects and $43.4 million at its share related to future ground lease
payments that run through 2085 on Kona Village. As we identify investment opportunities in the future,
we may be called upon to contribute additional capital to unconsolidated investments in satisfaction of
our capital commitment obligations.
Impact of Inflation and Changing Prices
As discussed throughout this report, high inflation impacted the global economy during the year
ended December 31, 2024 and continues to impact the global economy. Our exposure to market risk
from changing prices consists primarily of fluctuations in rental rates of commercial and multifamily
properties, market interest rates on investment mortgages and debt obligations and real estate property
values. Rental rate increases are dependent upon market conditions and the competitive environments
in the respective locations of the properties. To the extent that we engage in development activities,
we may have exposure to changing prices in materials or cost of labor. The revenues of the investment
management operations with respect to rental properties are highly dependent upon the aggregate
rents of the properties managed, which are affected by rental rates and building occupancy rates.
Employee compensation is the principal cost element of investment management.
We may be able to recoup all or a significant portion of any impact that we may suffer from rising costs
through rental increases. To the extent that the rate of increase in expenses is greater than the rate of
increase in rental rates, changing price will have an adverse impact on the Company. See also Inflation
may adversely affect our financial condition and results of operations in Item 1A. Risk Factors for more
detailed discussion on the impact of inflation on the Company.
Qualitative and Quantitative Disclosures about Market Risk
Our primary market risk exposure relates to changes in interest rates in connection with our short-
term borrowings and fluctuations in foreign currency exchange rates in connection with our foreign
operations.
Interest Rate Risk
We have established an interest rate management policy, which attempts to minimize our overall
cost of debt while taking into consideration the earnings implications associated with the volatility of
short-term interest rates. As part of this policy, we have elected to maintain a combination of variable
and fixed rate debt. As of December 31, 2024, 82% of our consolidated debt is fixed rate, 17% is
floating rate with interest caps. As such, fluctuations in interest rates may impact our floating rate debt
(and floating rate debt with interest caps to a lesser extent) and cause our consolidated interest expense
and income from unconsolidated investments to fluctuate. Typically, these fluctuations do not give rise
to a significant long-term interest rate risk because they generally have short maturities.
We hold variable rate debt on some of our consolidated and unconsolidated properties that is subject
to interest rate fluctuations. These variable rates generally are based on the lender’s base rate, prime
rate, EURIBOR, GBP LIBOR, SOFR, SONIA plus an applicable borrowing margin. Additionally, in order to
mitigate some of the risk associated with increasing interest rates, we have purchased interest rate caps
In addition, loan agreements that govern the Company’s property-level non-recourse financings that are
secured by its properties may contain operational and financial covenants, including but not limited to,
debt yield related covenants and debt service coverage ratio covenants and, with respect to mortgages
secured by certain properties in Europe, loan-to-value ratio covenants. Property-level non-recourse
financings with such loan-to-value covenants require that the underlying properties are valued on a
periodic basis (at least annually). As of December 31, 2024, the Company was in compliance with all
property-level mortgages and was current on all payments (principal and interest) with respect to the
same. The failure by the Company to comply with such covenants and/or secure waivers from lenders
could result in defaults under these instruments. In addition, if the Company defaults under a mortgage
loan and/or such loan is accelerated by the lender, it may automatically be in default under any of its
property and corporate unsecured loans that contain cross-default and/or cross-acceleration provisions.
Please also see Part I. Item 1A Risk Factors.
Off-Balance Sheet Arrangements
Guarantees
We have provided guarantees associated with loans secured by consolidated assets. At December 31,
2024, the maximum potential amount of future payments (undiscounted) we could be required to
make under the guarantees was approximately $119.4 million at December 31, 2024. The guarantees
expire through 2031 and our performance under the guarantees would be required to the extent there
is a shortfall in liquidation between the principal amount of the loan and the net sale proceeds of the
applicable properties. If we were to become obligated to perform on these guarantees, it could have an
adverse effect on our financial condition.
Most of our real estate properties within our equity partnerships are encumbered by traditional
non-recourse debt obligations. In connection with most of these loans, however, we entered into
certain “non-recourse carve out” guarantees, which provide for the loans to become partially or fully
recourse against us if certain triggering events occur. Although these events are different for each
guarantee, some of the common events include:
• the special purpose property-owning subsidiary’s filing a voluntary petition for bankruptcy;
• the special purpose property-owning subsidiary’s failure to maintain its status as a special purpose
entity; and
• subject to certain conditions, the special purpose property-owning subsidiary’s failure to obtain
lender’s written consent prior to any subordinate financing or other voluntary lien encumbering the
associated property.
In the event that any of these triggering events occur and the loans become partially or fully recourse
against us, our business, financial condition, results of operations and common stock price could be
materially adversely affected.
In addition, other items that are customarily recourse to a non-recourse carve out guarantor include,
but are not limited to, the payment of real property taxes, liens which are senior to the mortgage loan
and outstanding security deposits.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
65
64
KENNEDY WILSON ANNUAL REPORT 2024
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. Currency translation gains and losses and currency derivative gains and
losses will remain in other comprehensive income unless and until the Company substantially liquidates
underlying investments.
Approximately 34% of our investment account is invested through our foreign platforms in their local
currencies. Investment level debt is generally incurred in local currencies and therefore we consider
our equity investment as the appropriate exposure to evaluate for hedging purposes. Additionally, the
costs to operate these businesses, such as compensation, overhead and interest expense are incurred in
local currencies. We typically do not hedge future operations or cash flows of operations denominated
in foreign currencies, which may have a significant impact on the results of our operations for both
the Consolidated and Co-Invest segments. In order to manage the effect of these fluctuations, we
generally hedge our book equity exposure to foreign currencies through currency forward contracts
and options. As of December 31, 2024, we have hedged 95% of the gross asset carrying value of our
euro-denominated investments and 83% of the gross asset carrying value of our GBP-denominated
investments.
Our investment management businesses typically do not require much capital, so foreign currency
translation and derivative activity primarily relates to the investments segment as that has greater
balance sheet exposure to foreign currency fluctuations.
If there was a 5% increase or decrease in foreign exchange rates on the currencies we invest to the U.S.
Dollar our net asset value would increase by $20.5 million or decrease by $22.4 million. If rates moved
10%, we would have an increase of $39.5 million and a decrease of $44.7 million.
Financial Measures and Descriptions.
Rental—Rental income is comprised of rental revenue earned by our consolidated real estate
investments.
Hotel—Hotel income is comprised of hotel revenue earned by our consolidated hotels.
Investment Management Fees—Investment management fees are primarily comprised of base asset
management fees and acquisition fees generated by our investment management division. Fees earned
from consolidated investments are eliminated in consolidation with the amount relating to our equity
partners being recognized through income attributable to noncontrolling interests.
Loans—Interest income earned on consolidated loans.
Income from unconsolidated investments—principal co-investments—Income from unconsolidated
investments—principal co-investments consists of the Company’s share of income or loss earned on
investments in which the Company can exercise significant influence but does not have control. Income
from unconsolidated investments includes income or loss from ordinary course operations of the
underlying investment, gains or losses on sale and fair value gains and losses.
that limit the amount that interest expense can increase with rate increases. However, some of our debt
is uncapped and the mortgages that do have interest caps are subject to increased interest expense
until rates hit the level of caps that have been purchased. If there was a 100-basis point increase or
decrease, we would have a $3.3 million increase in interest expense or $8.0 million decrease in interest
expense savings during 2025 on our current share of indebtedness. The weighted average strike price
on caps and maturity of Kennedy Wilson’s variable rate mortgages are 3.17% and approximately
1.2 years, respectively, as of December 31, 2024.
The table below represents contractual balances of our financial instruments at the expected maturity
dates as well as the fair value as of December 31, 2024. The weighted average interest rate for the
various assets and liabilities presented are actual as of December 31, 2024. We closely monitor the
fluctuation in interest rates, and if rates were to increase significantly, we believe that we would be able
to either hedge the change in the interest rate or refinance the loans with fixed interest rate debt. All
instruments included in this analysis are non-trading.
Principal Maturing in:
Fair Value
(Dollars in millions)
2025
2026
2027
2028
2029
Thereafter
Total
December 31,
2024
Interest rate
sensitive assets
Cash equivalents
$ 219.9
$
—
$
—
$
—
$
—
$
—
$
219.9
$
219.9
Average interest
rate
1.87%
—%
—%
—%
—%
—%
1.87%
—
Fixed rate
receivables
17.8
12.2
19.5
10.0
—
6.1
65.6
62.7
Average interest
rate(1)
3.64%
5.76%
4.00%
6.80%
—%
6.49%
4.89%
—
Variable rate
receivables
38.2
90.1
51.3
7.2
0.7
—
187.5
185.1
Average interest
rate
9.32%
8.49%
7.93%
7.92%
8.05%
—%
8.49%
—
Total
$ 275.9
$102.3
$ 70.8
$ 17.2
$
0.7
$
6.1
$
473.0
$
467.7
Weighted average
interest rate(1)
3.02%
8.17%
6.85%
17.20%
8.05 %
6.49%
4.91%
Interest rate
sensitive
liabilities
Variable rate
borrowings
$ 28.2
$335.2
$237.4
$106.9
$
—
$
167.4
$
875.1
$
866.2
Average interest
rate
6.16%
6.51%
6.72%
6.45%
—%
6.04%
4.46%
—
Fixed rate
borrowings
370.5
226.6
102.0
324.2
1,507.9
1,415.6
3,946.8
3,608.1
Average
interest rate
3.43%
4.02%
3.86%
4.63%
4.67%
4.44%
4.41%
—
Total
$ 398.7
$561.8
$339.4
$431.1
$1,507.9
$ 1,583.0
$4,821.9
$
4,474.3
Weighted average
interest rate
3.62%
5.51%
5.86%
5.08%
4.67%
4.61%
4.78%
(1) Interest rate sensitive assets’ weighted average interest rates are exclusive of non-performing receivables.
Currency Risk—Foreign Currencies
A significant portion of our business is located outside the United States. As such, we have foreign
currency fluctuation risk with respect to those investments and business units. In certain instances, we
utilize foreign currency hedging derivatives to mitigate the impact of this risk on our equity.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
67
66
KENNEDY WILSON ANNUAL REPORT 2024
Accumulated other comprehensive income (loss)—Accumulated other comprehensive income (loss)
represents the Company›s share of foreign currency movement on translating Kennedy Wilson’s foreign
subsidiaries from their functional currency into the Company›s reporting currency. These amounts are
offset by Kennedy Wilson’s effective portion of currency related hedge instruments that have been
designated.
Non-GAAP Measures and Certain Definitions
“KWH,” “KW,” “Kennedy Wilson,” the “Company,” “we,” “our,” or “us” refers to Kennedy-Wilson Holdings,
Inc. and its wholly-owned subsidiaries. The consolidated financial statements of the Company include
the results of the Company’s consolidated subsidiaries.
“KWE” refers to Kennedy Wilson Europe Real Estate Limited.
“Adjusted EBITDA” represents net (loss) income before interest expense, loss (gain) on early
extinguishment of debt, our share of interest expense included in unconsolidated investments,
depreciation and amortization, our share of depreciation and amortization included in unconsolidated
investments, preferred dividends, provision for (benefit from) income taxes, our share of taxes included
in unconsolidated investments, share-based compensation expense for the Company, and EBITDA
attributable to noncontrolling interests. Please also see the reconciliation to GAAP in the Company’s
supplemental financial information included in this release and also available at www.kennedywilson.
com. Our management uses Adjusted EBITDA to analyze our business because it adjusts net income
for items we believe do not accurately reflect the nature of our business going forward or that relate
to non-cash compensation expense or noncontrolling interests. Such items may vary for different
companies for reasons unrelated to overall operating performance. Additionally, we believe Adjusted
EBITDA is useful to investors to assist them in getting a more accurate picture of our results from
operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when
analyzing our operating performance, readers should use Adjusted EBITDA in addition to, and not as
an alternative for, net income as determined in accordance with GAAP. Because not all companies
use identical calculations, our presentation of Adjusted EBITDA may not be comparable to similarly
titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure
of free cash flow for management’s discretionary use, as it does not remove all non-cash items or
consider certain cash requirements such as tax and debt service payments. The amount shown for
Adjusted EBITDA also differs from the amount calculated under similarly titled definitions in our debt
instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used
to determine compliance with financial covenants and our ability to engage in certain activities, such as
incurring additional debt and making certain restricted payments.
“Adjusted Net Income (Loss)” represents net income (loss) before depreciation and amortization,
Kennedy Wilson’s share of depreciation and amortization included in unconsolidated investments,
share-based compensation, and excluding net income attributable to noncontrolling interests, before
depreciation and amortization.
“Carried interests” relates to allocations to the Company of Kennedy Wilson’s co-investments it invests
in and manages based on the cumulative performance of the fund or investment vehicle, as applicable,
and are subject to preferred return thresholds of the limited partners.
Income from unconsolidated investments—carried interests—Carried interests relate to allocations to
the general partner, special limited partner or asset manager of Kennedy Wilson’s co-investments
it manages based on the cumulative performance of the fund and are subject to preferred return
thresholds of the limited partners.
Gain on sale of real estate, net—Gain on sale of real estate, net relates to the amount received over the
carrying value of assets sold. Impairments on consolidated real estate assets are also recorded to this
line to the extent that do not require separate presentation.
Rental—Rental expenses consist of the expenses of our consolidated real estate investments, including
items such as property taxes, insurance, maintenance and repairs, utilities, supplies, salaries and
management fees.
Hotel—Hotel expenses consist of expenses of our consolidated hotel investments, including items such
as property taxes, insurance, maintenance and repairs, utilities, supplies, salaries and management fees.
Compensation and related—Employee compensation, comprising of salary, bonus, employer payroll taxes
and benefits paid on behalf of employees.
Carried interests compensation—Compensation associated with up to thirty-five percent (35%) of any
carried interests earned by certain commingled funds and separate account investments to be allocated
to certain non-NEO employees of the Company.
General and administrative—General and administrative expenses represent administrative costs
necessary to run Kennedy Wilson’s businesses and include items such as occupancy and equipment
expenses, professional fees, public company costs, travel and related expenses, and communications
and information services.
Depreciation and amortization—Depreciation and amortization is comprised of depreciation expense
which is recognized ratably over the useful life of an asset and amortization expense which primarily
consist of the amortization of assets allocated to the value of in-place leases upon acquisition of a
consolidated real estate asset.
Interest expense—Interest expense represents interest costs associated with our senior notes payable,
revolving credit facility, mortgages on our consolidated real estate, and unsecured debt held by KWE.
Other income (loss)—Other income (loss) includes the realized foreign currency exchange income or loss
relating to the settlement of foreign transactions during the year which arise due to changes in currency
exchange rates, realized gains or losses related to undesignated derivative instruments, interest income
on bank deposits, commission expenses on property services and transaction related expenses related
to unsuccessful deals.
Income taxes—The Company’s services business operates globally as corporate entities subject to
federal, state, and local income taxes and the investment business operates through various partnership
structures to acquire wholly-owned or jointly-owned investments in multifamily, commercial, residential
and development properties. The Company’s distributive share of income from its partnership
investments will be subject to federal, state, and local taxes and the related tax provision attributable to
the Company’s share of the income tax is reflected in the consolidated financial statements.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
69
68
KENNEDY WILSON ANNUAL REPORT 2024
value-add initiatives or changing market conditions. Management believes that net operating income
reflects the core revenues and costs of operating its properties and is better suited to evaluate trends
in occupancy and lease rates. Please also see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations – Certain Non-GAAP Measures and Reconciliations” for a
reconciliation of Net Operating Income to net income as reported under GAAP and a reconciliation of
Net Operating Income (Net Effective) (with respect to same property) to net income as reported under
GAAP.
“Noncontrolling interests” represents the portion of equity ownership in a consolidated subsidiary not
attributable to Kennedy Wilson.
“Principal co-investments” consists of the Company’s share of income or loss earned on investments
in which the Company can exercise significant influence but does not have control. Income from
unconsolidated investments includes income from ordinary course operations of the underlying
investment, gains on sale, fair value gains and losses.
“Real Estate Assets under Management” (“AUM”) generally refers to the properties and other assets
with respect to which the Company provides (or participates in) oversight, investment management
services and other advice, and which generally consist of real estate properties or loans, and
investments in joint ventures. AUM is principally intended to reflect the extent of the Company’s
presence in the real estate market, not the basis for determining management fees. AUM consists
of the total estimated fair value of the real estate properties, total loan commitments made through
out debt investment platform, inclusive of both currently outstanding loan amounts and contractual
future fundings, and other real estate-related assets either owned by third parties, wholly-owned by
the Company or held by joint ventures and other entities in which its sponsored funds or investment
vehicles and client accounts have invested. The estimated value of development properties is
included at estimated completion cost. The accuracy of estimating fair value for investments 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
(particularly given the ongoing macroeconomic conditions such as, but not limited to recent adverse
developments affecting regional banks and other financial institutions, and ongoing military conflicts
around the world and uncertainty with respect to fluctuating interest rates continue to fuel recessionary
fears and create volatility in Kennedy Wilson’s business results and operations). Recently, there has also
been a lack of liquidity in the capital markets as well as limited transactions which has had an 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 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.
“Same property” refers to stabilized consolidated and unconsolidated properties in which Kennedy
Wilson has an ownership interest during the entire span of both periods being compared. This analysis
excludes properties that during the comparable periods (i) were acquired, (ii) were sold, (iii) are either
“Carried interests compensation”—the compensation committee of the Company’s board of directors
approved and reserved between twenty percent (20%) and thirty-five percent (35%) of any carried
interests earned by certain commingled funds and separate account investments to be allocated to
certain non-NEO employees of the Company.
“Cap rate” represents the net operating income of an investment for the year preceding its acquisition
or disposition, as applicable, divided by the purchase or sale price, as applicable. Capitalization (“Cap”)
rates discussed in this report only include data from income-producing properties. The Company
calculates cap rates based on information that is supplied to it during the acquisition diligence process.
This information is not audited or reviewed by independent accountants and may be presented in
a manner that is different from similar information included in the Company’s financial statements
prepared in accordance with GAAP. In addition, cap rates represent historical performance and are not
a guarantee of future net operating income (“NOI”). Properties for which a cap rate is discussed may not
continue to perform at that cap rate.
“Co-Investment Portfolio NOI” refers to the Company’s share of NOI that is generated from the
properties in which the Company has an ownership interest and that are held in the Company’s
Co-Investment Portfolio business segment. Please also see “Management’s Discussion and Analysis
of Financial Condition and Results of Operations - Certain Non-GAAP Measures and Reconciliations”
for a reconciliation of Co-Investment Portfolio NOI to net income as reported under GAAP.
“Consolidated Portfolio NOI” refers to the NOI that is generated from the properties that the
Company has an ownership interest in and are held in the Company’s Consolidated Portfolio business
segment. Please also see “Management’s Discussion and Analysis of Financial Condition and Results
of Operations - Certain Non-GAAP Measures and Reconciliations” for a reconciliation of Consolidated
Portfolio NOI to net income as reported under GAAP.
“Equity partners” refers to non-wholly-owned subsidiaries that we consolidate in our financial
statements under U.S. GAAP and third-party equity providers.
“Fee Bearing Capital” represents total third-party committed or invested capital that we manage in
our joint ventures, commingled funds, and debt platform that entitle us to earn fees, including without
limitation, asset management fees, construction management fees, acquisition and disposition fees
and/or carried interest, if applicable.
“Gross Asset Value” refers to the gross carrying value of assets, before debt, depreciation and
amortization, and net of noncontrolling interests.
“Net operating income” or “NOI” is a non-GAAP measure representing the income produced by a
property calculated by deducting certain property expenses from property revenues. The Company’s
management uses net operating income to assess and compare the performance of its properties
and to estimate their fair value. Net operating income does not include the effects of depreciation or
amortization or gains or losses from the sale of properties because the effects of those items do not
necessarily represent the actual change in the value of the Company’s properties resulting from its
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
71
70
KENNEDY WILSON ANNUAL REPORT 2024
Years Ended December 31,
(Dollars in millions)
2024
2023
2022
2021
2020
Net (loss) income
$
(33.7)
$ (281.4)
$ 101.9
$ 336.4
$ 107.8
Non-GAAP adjustments:
Add back (less):
Depreciation and amortization
148.3
157.8
172.9
166.3
179.6
Kennedy Wilson’s share of depreciation and amortization
included in unconsolidated investments
4.0
3.2
3.5
5.3
6.9
Share-based compensation
23.6
34.5
29.0
28.7
32.3
Net income attributable to the noncontrolling interests,
before depreciation and amortization(1)
(4.4)
(27.4)
(13.5)
(10.5)
(2.5)
Preferred dividends
(43.5)
(38.0)
(28.9)
(17.2)
(17.2)
Adjusted Net Income (Loss)(2)
$
94.3
$ (151.3)
$ 264.9
$ 509.0
$ 306.9
(1) (2) See “Non-GAAP Measures and Certain Definitions” for definitions and discussion of Adjusted Net Income.
Net Operating Income
Years Ended December 31,
2024
2023
2022
Consolidated
Portfolio
Co-
Investment
Portfolio
Consolidated
Portfolio
Co-
Investment
Portfolio
Consolidated
Portfolio
Co-
Investment
Portfolio
Net (loss) income
$
(33.7)
$
6.5
$
(281.4)
$
(252.8)
$
101.9
$
178.4
Less: Provision for (benefit from)
income taxes
10.2
0.4
(55.3)
0.2
36.2
2.7
Less: Loss (income) from
unconsolidated investments
(6.5)
—
252.8
—
(178.4)
—
Less: (Gain) loss on sale of real
estate, net(1)
(160.1)
(32.6)
(127.6)
—
(103.7)
(4.9)
Add: Interest expense
261.1
131.0
259.2
99.0
220.8
60.1
Less: Loss (gain) on early
extinguishment of debt
1.7
—
1.6
—
(27.5)
—
Less: Other (income) loss
(4.2)
25.4
5.0
26.6
(36.1)
17.9
Less: Sale of real estate(1)
—
(46.7)
—
(19.5)
—
(52.0)
Less: Interest income
(31.2)
—
(26.1)
—
(11.7)
—
Less: Investment management and
property services
(100.3)
—
(64.1)
—
(46.5)
—
Less: Carried interests
—
49.7
—
64.3
—
21.1
Add: Cost of real estate sold(1)
—
43.1
—
13.6
—
40.7
Add: Compensation and related
134.8
—
139.4
—
140.3
—
Add: Carried interests expense
(16.6)
—
(15.1)
—
(4.3)
—
Add: General and administrative
38.8
—
35.7
—
37.2
—
Add: Depreciation
148.3
3.9
157.8
3.2
172.9
3.8
Less: Fair value adjustments
—
9.8
—
233.7
—
(110.2)
Less: NCI adjustments
(8.1)
—
(7.6)
—
(6.9)
—
Net Operating Income
$
234.2
$
190.5
$
274.3
$
168.3
$
294.2
$
157.6
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating
properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, Revenue from Contracts with Customers
(“Topic 606”) because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business
segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of
the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real
estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded
from Co-Investment NOI.
under development or undergoing lease up or major repositioning as part of the Company’s asset
management strategy, (iv) were investments in which the Company holds a minority ownership position,
and (v) certain non-recurring income and expenses. The analysis only includes Office, Multifamily
and Hotel properties, where applicable. To derive an appropriate measure of operating performance
across the comparable periods, the Company removes the effects of foreign currency exchange rate
movements by using the reported period-end exchange rate to translate from local currency into the
U.S. dollar, for both periods. Amounts are calculated using Kennedy Wilson’s ownership share in the
Company’s consolidated and unconsolidated properties. Management evaluates the performance of
the operating properties the Company owns and manages using a “same property” analysis because the
population of properties in this analysis is consistent from period to period, which allows management
and investors to analyze (i) the Company’s ongoing business operations and (ii) the revenues and
expenses directly associated with owning and operating the Company’s properties and the impact to
operations from trends in occupancy rates, rental rates and operating costs. Same property metrics
are widely recognized measures in the real estate industry, however, other publicly-traded real estate
companies may not calculate and report same property results in the same manner as the Company.
Please also see “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Certain Non-GAAP Measures and Reconciliations” for a reconciliation of “same property”
results to the most comparable measure reported under GAAP.
We use certain non-GAAP measures to analyze our business, including Adjusted EBITDA and Adjusted
Net Income. We use these metrics for evaluating the success of our company and believe that they
enhance the understanding of our operating results. A reconciliation of net income to Adjusted EBITDA
and Adjusted Net Income is presented below:
Years Ended December 31,
(Dollars in millions)
2024
2023
2022
2021
2020
Net (loss) income
$
(33.7)
$ (281.4)
$ 101.9
$ 336.4
$ 107.8
Non-GAAP adjustments:
Add back (less):
Interest expense
261.1
259.2
220.8
192.4
201.9
Loss (gain) on early extinguishment of debt
1.7
1.6
(27.5)
45.7
9.3
Kennedy Wilson’s share of interest expense included
in unconsolidated investments
131.0
99.1
60.2
40.2
33.0
Depreciation and amortization
148.3
157.8
172.9
166.3
179.6
Kennedy Wilson’s share of depreciation and amortization
included in unconsolidated investments
4.0
3.2
3.5
5.3
6.9
Provision for (benefit from) income taxes
10.2
(55.3)
36.2
126.2
43.6
Kennedy Wilson’s share of taxes included in unconsolidated
investments
0.4
0.1
2.7
—
1.1
Share-based compensation
23.6
34.5
29.0
28.7
32.3
EBITDA attributable to noncontrolling interests(1)
(6.9)
(29.0)
(8.2)
(13.3)
(7.5)
Adjusted EBITDA(2)
$ 539.7
$ 189.8
$ 591.5
$ 927.9
$ 608.0
(1) (2) See “Non-GAAP Measures and Certain Definitions” for definitions and discussion of Adjusted EBITDA.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
73
72
KENNEDY WILSON ANNUAL REPORT 2024
December 31, 2023
($ in millions)
Co n s o l i da
t e d
Co-Investment
No n Se g m
e n t
Total
Ca s h
$
184.2
$
—
$
129.5
$
313.7
Real estate
4,837.3
—
—
4,837.3
Unconsolidated Investments
—
2,069.1
—
2,069.1
Loan purchases and originations
—
247.2
—
247.2
Accounts receivable and other assets
146.1
—
98.7
244.8
Total Assets
$
5,167.6
$
2,316.3
$
228.2
$
7,712.1
Accounts payable and accrued expenses
154.3
—
461.4
615.7
Mortgage debt
2,840.9
—
—
2,840.9
KW unsecured debt
—
—
1,934.3
1,934.3
KWE No t e s
522.8
—
—
522.8
Total Liabilities
3,518.0
—
2,395.7
5,913.7
Equity
1,649.6
2,316.3
(2,167.5)
1,798.4
Total liabilities and equity
$
5,167.6
$
2,316.3
$
228.2
$
7,712.1
Same property analysis
The tables below are reconciliations of non-GAAP measures included in the Company’s same property
analysis to their most comparable GAAP measures.
Same Property—Revenue(6)*
For the Year Ended December 31,
2024
2023
Total Revenue
$
531.4
$
562.6
Less: Investment management fees
(98.9)
(61.9)
Less: Other
(1.4)
(2.2)
Less: Loans
(31.2)
(26.1)
Less: NCI adjustments(1)
(12.3)
(12.8)
Add: Unconsolidated investment adjustments(2)
193.1
187.5
Add: Above/below market rents(6)
(1.1)
(1.8)
Less: Reimbursement of recoverable operating expenses
(31.7)
(33.2)
Less: Properties bought and sold(3)
(29.0)
(109.0)
Less: Other properties excluded(4)
(36.2)
(36.7)
Other Reconciling Items(5)
(6.1)
(4.4)
Same Property
$
476.6
$
462.0
Same Property—Revenue(6)*
For the Year Ended December 31,
Same Property (Reported)
2024
2023
Office—Same Property
$
109.5
$
107.1
Multifamily Market Rate Portfolio—Same Property
300.3
292.0
Multifamily Affordable Portfolio—Same Property
66.8
62.9
Same Property
$
476.6
$
462.0
(*) This is a Non-GAAP financial measure. Please see our “Common Definitions” for a further explanation and discussion.
(1) Represents rental revenue and hotel revenue attributable to non-controlling interests.
(2) Represents the Company’s share of unconsolidated investment rental revenues, as applicable, which are within the applicable same
property population.
(3) Represents properties excluded from the same property population that were purchased or sold during the applicable period.
(4) Represents properties excluded from the same property population that were not stabilized during the applicable period, or retail or
industrial properties.
(5) Represents other properties excluded from the same property population that were not classified as a commercial or multifamily
property within the Company’s portfolio. Also includes immaterial adjustments for foreign exchange rates, changes in ownership
percentages, and certain non-recurring income and expenses.
(6) Excludes above/below market rents from the same property population, as they are representative of non-cash purchase price
accounting income.
Years Ended December 31,
2021
2020
Co n s o li da
t e d
Portfolio
Co-
Investment
Portfolio
Co n s o li da
t e d
Portfolio
Co-
Investment
Portfolio
Net income
$
336.4
$
389.0
$
107.8
$
81.0
Add: Provision for income taxes
126.2
—
43.6
1.0
Less: Income from unconsolidated investments
(389.0)
—
(81.0)
—
Less: (Gain) loss on sale of real estate, net(1)
(412.7)
3.1
(338.0)
11.5
Add: Interest expense
192.4
40.0
201.9
33.1
Add: Loss on extinguishment of debt
45.7
—
9.3
—
Add: Other loss
5.0
17.9
2.3
13.7
Less: Sale of real estate(1)
—
(39.5)
—
(11.5)
Less: Interest income
(8.6)
—
(3.1)
—
Less: Investment management and property services
(37.4)
—
(33.1)
—
Add: Carried interests expense
—
(117.9)
—
(2.6)
Add: Cost of real estate sold(1)
—
36.8
—
13.3
Add: Compensation and related
162.6
—
144.2
—
Add: Carried interests expense
42.0
—
0.2
—
Add: General and administrative
33.3
—
34.6
—
Add: Depreciation
166.3
5.6
179.6
6.9
Less: Fair value adjustments
—
(210.6)
—
(43.9)
Less: NCI adjustments
(6.4)
—
(6.0)
—
Net Operating Income
$
255.8
$
124.4
$
262.3
$
102.5
(1) The Company’s joint ventures in its Co-Investment business segment predominantly acquire and hold and may ultimately dispose of operating
properties which are presented by the Company as net gain or loss on disposition under ASC Topic 606, Revenue from Contracts with Customers
(“Topic 606”) because the disposition is not considered an “output of the entity’s ordinary activities.” Certain joint ventures in the same business
segment, however, dispose of non-operating properties (such as land and condominiums) from time-to-time, and such sales are an “output of
the entity’s ordinary activities” under Topic 606. Accordingly the sale of such real estate is presented by the Company on a gross basis (sale of real
estate and cost of real estate sold), and, therefore, the portion of the same that is not attributable to the Company’s ownership share is excluded
from Co-Investment NOI.
December 31, 2024
($ in millions)
Co n s o li da
t e d
Co-Investment
No n Se g m
e n t
Total
Cash
$
117.4
$
—
$
100.1
$
217.5
Real estate
4,290.4
—
—
4,290.4
Unconsolidated Investments
—
2,042.4
—
2,042.4
Loan purchases and originations
—
231.1
—
231.1
Accounts receivable and other assets
99.7
—
80.0
179.7
Total Assets
$
4,507.5
$
2,273.5
$
180.1
$
6,961.1
Accounts payable and accrued expenses
118.7
—
421.5
540.2
Mortgage debt
2,597.2
—
—
2,597.2
KW unsecured debt
—
—
1,877.9
1,877.9
KWE No t es
309.8
—
—
309.8
Total Liabilities
3,025.7
—
2,299.4
5,325.1
Equity
1,481.8
2,273.5
(2,119.3)
1,636.0
Total liabilities and equity
$
4,507.5
$
2,273.5
$
180.1
$
6,961.1
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
75
74
KENNEDY WILSON ANNUAL REPORT 2024
Fair Value Investments
Kennedy Wilson records its investments in certain commingled funds it manages and sponsors (the
“Funds”) that are investment companies under the Accounting Standards Codification (“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. Kennedy Wilson has retained the
specialized accounting for the Funds as discussed in ASC Topic 323, Investments—Equity Method and
Joint Ventures in recording its equity in joint venture income from the Funds.
Additionally, Kennedy Wilson elected the fair value option for 72 investments in unconsolidated
investment entities. Due to the nature of these investments, Kennedy Wilson elected to record these
investments at fair value in order to report the value in the underlying investments in the results of our
current operations.
The use of different assumptions to fair value these investments could have material impact on the
consolidated statements of income.
See Item 1. Business “Fair Value Investments” for detail on fair value methods and range of inputs that
are used as part of valuations.
Carried Interests
Carried interests are allocated to the general partner, special limited partner or asset manager of Kennedy
Wilson’s real estate funds and fair value option unconsolidated investments based on the cumulative
performance of the fund or underlying investments and are subject to preferred return thresholds of the
limited partners and participants. At the end of each reporting period, Kennedy Wilson calculates the
carried interests 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 carried
interests to reflect either (a) positive performance resulting in an increase in the carried interests 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 recognized, resulting in a negative adjustment to carried
interests to the general partner or asset manager. To the extent that a fund or investment has a carried
interests sharing program, a portion of carried interests will be recorded to carried interests compensation.
The Company has concluded that carried interests 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, Revenue from Contracts with Customers and Topic 323, Investments—
Equity Method and Joint Ventures, these allocations are included as a component of the total income from
unconsolidated investments in the accompanying consolidated statements of income.”
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.
Same Property—NOI (Net Effective)(6)*
For the Year Ended December 31,
2024
2023
Net Income
$
(33.7)
$
(281.4 )
Less: Investment management fees
(98.9)
(61.9)
Less: Other
(1.4)
(2.2)
Less: Loans
(31.2)
(26.1)
Less: Total Income from unconsolidated investments
(6.5)
252.8
Less: Gain on sale of real estate, net
(160.1)
(127.6)
Add: Compensation and related
134.8
139.4
Add: Carried interests compensation
(16.6)
(15.1)
Add: General and administrative
38.8
35.7
Add: Depreciation and amortization
148.3
157.8
Add: Interest Expense
261.1
259.2
Add: Gain (loss) on early extinguishment of debt
1.7
1.6
Less: Other income (loss)
(4.2)
5.0
Add: Provision for income taxes
10.2
(55.3)
Less: NCI adjustments(1)
(7.5)
(8.0)
Add: Unconsolidated investment adjustments(2)
134.4
131.0
Add: Straight-line and above/below market rents(6)
(1.1)
(1.8)
Less: Properties bought and sold(3)
(14.0)
(54.8)
Less: Other properties excluded(4)
(13.2)
(20.2)
Other Reconciling Items(5)
(1.9)
0.6
Same Property NOI (Net Effective)*
$
339.0
$
328.7
Same Property—NOI (Net Effective)(6)*
For the Year Ended December 31,
Same Property (Reported)
2024
2023
Office—Same Property
$
94.6
$
92.8
Multifamily Market Rate Portfolio—Same Property
200.7
194.4
Multifamily Affordable Portfolio—Same Property
43.7
41.5
Same Property NOI (Net Effective)* (Reported)
$
339.0
$
328.7
(*) This is a Non-GAAP financial measure. Please see our “Common Definitions” for a further explanation and discussion.
(1) Represents rental revenue and operating expenses and hotel revenue and operating expenses attributable to non-controlling
interests.
(2) Represents the Company’s share of unconsolidated investment rental revenues and net operating income, as applicable, which are
within the applicable same property population.
(3) Represents properties excluded from the same property population that were purchased or sold during the applicable period.
(4) Represents properties excluded from the same property population that were not stabilized during the applicable period, or retail or
industrial properties.
(5) Represents other properties excluded from the same property population that were not classified as a commercial or multifamily
property within the Company’s portfolio. Also includes immaterial adjustments for foreign exchange rates, changes in ownership
percentages, and certain non-recurring income and expenses.
(6) Excludes above/below market rents from the same property population, as they are representative of non-cash purchase price
accounting income.
Critical Accounting Policies
A critical accounting policy is one that involves an estimate or assumption that is subjective and
requires judgment on the part of management about the effect of a matter that is inherently uncertain
and is material to an entity’s financial condition and results of operations. Estimates are prepared using
management’s best judgment, after considering past and current economic conditions and expectations
for the future. Changes in estimates could affect our financial position and specific items in our results
of operations that are used by stockholders, potential investors, industry analysts and lenders in
their evaluation of our performance. Of the significant accounting policies discussed in Note 2 to the
Consolidated Financial Statements, those presented below have been identified by us as meeting the
criteria to be considered critical accounting policies. Refer to Note 2 for more information on these
critical accounting policies.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
77
76
KENNEDY WILSON ANNUAL REPORT 2024
To the Shareholders and Board of Directors
Kennedy-Wilson Holdings, Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Kennedy-Wilson Holdings, Inc. and
subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of
operations, comprehensive (loss) income, equity, and cash flows for each of the years in the three-year
period ended December 31, 2024, and the related notes and financial statement schedules III and IV
(collectively, the consolidated financial statements). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2024
and 2023, and the results of its operations and its cash flows for each of the years in the three-year
period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024,
based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission, and our report dated February 28, 2025 expressed
an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audits.
We are a public accounting firm registered with the PCAOB and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement, whether due to error or fraud. Our audits included
performing procedures to assess the risks of material misstatement of the consolidated financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the
audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated
financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of a critical audit matter does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter
below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.
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.
The use of different assumptions to value the acquired properties and intangible assets and assumed
liabilities could affect the future revenues and expenses we recognize over the estimated remaining
useful life or lease term.
Recently Issued Accounting Pronouncements
See Note 2 to the Consolidated Financial Statements.
Report of Independent Registered Public Accounting Firm
Management’s Discussion and Analysis of Financial Condition and Results of
Operations (continued)
KENNEDY WILSON ANNUAL REPORT 2024
79
78
KENNEDY WILSON ANNUAL REPORT 2024
To the Shareholders and Board of Directors
Kennedy-Wilson Holdings, Inc.:
Opinion on Internal Control Over Financial Reporting
We have audited Kennedy-Wilson Holdings, Inc. and subsidiaries’ (the Company) internal control over
financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31,
2024 and 2023, the related consolidated statements of operations, comprehensive (loss) income,
equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and
the related notes and financial statement schedules III and IV (collectively, the consolidated financial
statements), and our report dated February 28, 2025 expressed an unqualified opinion on those
consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal control over financial reporting,
included in the accompanying Management’s Report on Internal Control over Financial Reporting.
Our responsibility is to express an opinion on the Company’s internal control over financial reporting
based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects. Our audit of internal control
over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audit also included performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company’s
internal control over financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide
Evaluation of the fair value of certain unconsolidated investments and commingled funds
As discussed in Notes 2 and 5 to the consolidated financial statements, the Company elected to record
certain unconsolidated investments using the fair value option to more accurately reflect the timing
of the value created in the underlying investments and report those changes in current operations.
Additionally, the Company records its investments in its managed commingled funds (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. As of December 31, 2024, these
investments had a fair value of $1,884.4 million.
We identified the evaluation of the fair value of certain unconsolidated investments and commingled
funds as a critical audit matter. A high degree of subjectivity was required in applying and evaluating
results from procedures over the respective discounted cash flow models used to calculate the fair
value of the underlying real estate investments. Specifically, the respective cash flow models were
sensitive to changes in certain key assumptions, including discount, terminal capitalization, and
overall capitalization rates, which have a significant effect on the determination of fair value of these
investments.
The following are the primary procedures we performed to address this critical audit matter. We
evaluated the design and tested the operating effectiveness of certain internal controls over the
Company’s fair value process for unconsolidated investments and commingled funds, including controls
related to the development of the overall capitalization rate, discount rate and terminal capitalization
rate assumptions. For a selection of the Company’s investments, we involved valuation professionals
with specialized skills and knowledge who assisted in comparing the discount rate and terminal
capitalization rate used by the Company to independently developed ranges using market information
obtained from third-party real estate publications or to rates observed in similar investments in the
current period.
/s/ KPMG LLP
We have served as the Company’s auditor since 2002.
Los Angeles, California
February 28, 2025
Report of Independent Registered Public Accounting Firm (continued)
KENNEDY WILSON ANNUAL REPORT 2024
81
80
KENNEDY WILSON ANNUAL REPORT 2024
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP
Los Angeles, California
February 28, 2025
Report of Independent Registered Public Accounting Firm (continued)
(Dollars in millions)
December 31,
2024
2023
Assets
Cash and cash equivalents
$
217.5
$
313.7
Accounts receivable, net (including $12.4 and $13.8 of related party)
38.7
57.3
Real estate and acquired in place lease values (net of accumulated depreciation and
amortization of $949.1 and $957.8)
4,290.4
4,837.3
Unconsolidated investments (including $1,884.4 and $1,927.0 at fair value)
2,042.4
2,069.1
Other assets, net
141.0
187.5
Loan purchases and originations, net
231.1
247.2
Total assets(1)
$
6,961.1
$
7,712.1
Liabilities
Accounts payable
$
10.8
$
17.9
Accrued expenses and other liabilities
529.4
597.8
Mortgage debt
2,597.2
2,840.9
KW unsecured debt
1,877.9
1,934.3
KWE unsecured bonds
309.8
522.8
Total liabilities(1)
5,325.1
5,913.7
Equity
Series A cumulative preferred stock, $0.0001 par value, $1,000 per share liquidation
preference, 1,000,000 shares authorized, 300,000 shares outstanding as of December 31, 2024
and December 31, 2023 and Series B cumulative preferred Stock, $0.0001 par value, $1,000
per share liquidation preference, 1,000,000 shares authorized and 300,000 shares outstanding
as of December 31, 2024 and December 31, 2023 and Series C cumulative preferred Stock,
$0.0001 par value, $1,000 per share liquidation preference, 1,000,000 shares authorized,
200,000 shares outstanding as of December 31, 2024 and December 31, 2023.
789.7
789.9
Common Stock, $0.0001 par value, 200,000,000 authorized, 137,442,778 and 138,727,521
shares issued outstanding as of December 31, 2024 and December 31, 2023, respectively
—
—
Additional paid-in capital
1,712.8
1,718.6
Accumulated deficit
(493.7)
(349.0)
Accumulated other comprehensive loss
(407.6)
(404.4)
Total Kennedy-Wilson Holdings, Inc. shareholders’ equity
1,601.2
1,755.1
Noncontrolling interests
34.8
43.3
Total equity
1,636.0
1,798.4
Total liabilities and equity
$
6,961.1 $
7,712.1
(1) The assets and liabilities as of December 31, 2024 include $169.3 million (including cash held by consolidated investments of $4.3
million and real estate and acquired in place lease values, net of accumulated depreciation and amortization of $128.7 million) and
$49.6 million (including investment debt of $50.0 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.
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Balance Sheets
KENNEDY WILSON ANNUAL REPORT 2024
83
82
KENNEDY WILSON ANNUAL REPORT 2024
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Net (loss) income
$
(33.7)
$
(281.4)
$
101.9
Other comprehensive (loss) income, net of tax:
Unrealized foreign currency translation (loss) gain
(36.5)
32.1
(71.7)
Amounts reclassified out of AOCI
3.5
—
(0.8)
Unrealized currency derivative contracts gain (loss)
29.5
(5.5)
23.4
Unrealized gain on interest rate swaps
—
—
5.6
Total other comprehensive (loss) income
(3.5)
26.6
(43.5)
Comprehensive (loss) income
(37.2)
(254.8)
58.4
Comprehensive loss (income) attributable to noncontrolling interests
1.0
(23.3)
(5.2)
Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc.
$
(36.2)
$
(278.1)
$
53.2
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Comprehensive (Loss) Income
Year ended December 31,
(Dollars in millions, except per share data)
2024
2023
2022
Revenue
Rental
$
390.6
$
415.3
$
434.9
Hotel
9.3
57.1
46.9
Investment management fees (includes $49.3, $51.9, and $44.8 of
related party fees, respectively)
98.9
61.9
44.8
Loans
31.2
26.1
11.7
Other
1.4
2.2
1.7
Total revenue
531.4
562.6
540.0
Income (loss) from unconsolidated investments
Principal co-investments
56.2
(188.5)
199.5
Carried interests
(49.7)
(64.3)
(21.1)
Total income (loss) from unconsolidated investments
6.5
(252.8)
178.4
Gain on sale of real estate, net
160.1
127.6
103.7
Expenses
Rental
150.0
152.6
151.2
Hotel
7.6
37.9
29.5
Compensation and related (including $23.6, $34.5 and $29.0 of
share-based compensation)
134.8
139.4
140.3
Carried interests compensation
(16.6)
(15.1)
(4.3)
General and administrative
38.8
35.7
37.2
Depreciation and amortization
148.3
157.8
172.9
Total expenses
462.9
508.3
526.8
Interest expense
(261.1)
(259.2)
(220.8)
(Loss) gain on early extinguishment of debt
(1.7)
(1.6)
27.5
Other income (loss)
4.2
(5.0)
36.1
(Loss) income before (provision for) benefit from income taxes
(23.5)
(336.7)
138.1
(Provision for) benefit from income taxes
(10.2)
55.3
(36.2)
Net (loss) income
(33.7)
(281.4)
101.9
Net loss (income) attributable to noncontrolling interests
0.7
(22.4)
(8.2)
Preferred dividends
(43.5)
(38.0)
(28.9)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc.
common shareholders
$
(76.5)
$
(341.8)
$
64.8
Basic (loss) earnings per share
(Loss) income per basic
$
(0.56)
$
(2.46)
$
0.47
Weighted average shares outstanding for basic
137,778,812
138,930,517
136,900,875
Diluted (loss) earnings per share
(Loss) income per diluted
$
(0.56)
$
(2.46)
$
0.47
Weighted average shares outstanding for diluted
137,778,812
138,930,517
138,567,534
Dividends declared per common share
$
0.60
$
0.96
$
0.96
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Operations
KENNEDY WILSON ANNUAL REPORT 2024
85
84
KENNEDY WILSON ANNUAL REPORT 2024
Year Ended December 31, 2023
Preferred Stock
Common Stock
Additional
Paid-in
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total
(Dollars in millions, except
share amounts)
Shares
Amount
Shares
Amount
Balance, December 31, 2022
600,000
$ 592.5
137,790,768
$ —
$ 1,679.5
$ 122.1
$ (430.1) $ 46.4
$2,010.4
Preferred stock issuance, net of
issuance costs
200,000
197.4
—
—
—
—
—
—
197.4
Issuance of common stock,
net of issuance costs
—
—
1,690,743
—
29.8
—
—
—
29.8
Restricted stock grants
—
—
961,045
—
—
—
—
—
—
Shares retired due to RSG vesting
—
—
(781,303)
—
(13.4)
—
—
—
(13.4)
Shares retired due to common
stock repurchase program
—
—
(666,701)
—
(11.8)
4.3
—
—
(7.5)
Shares forfeited
—
—
(267,031)
—
—
—
—
—
—
Stock based compensation
—
—
—
—
34.5
—
—
—
34.5
Other comprehensive (loss)
income:
Unrealized foreign currency
translation gain, net of tax
—
—
—
—
—
—
31.2
0.9
32.1
Unrealized foreign currency
derivative contract loss, net of tax
—
—
—
—
—
—
(5.5)
—
(5.5)
Common stock dividends
—
—
—
—
—
(133.6)
—
—
(133.6)
Preferred stock dividends
—
—
—
—
—
(38.0)
—
—
(38.0)
Net income
—
—
—
—
—
(303.8)
—
22.4
(281.4)
Contributions from
noncontrolling interests
—
—
—
—
—
—
—
1.3
1.3
Distributions to
noncontrolling interests
—
—
—
—
—
—
—
(27.7)
(27.7)
Balance, December 31, 2023
800,000
$ 789.9
138,727,521
$ —
$ 1,718.6
$ (349.0)
$ (404.4) $ 43.3
$1,798.4
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
Year Ended December 31, 2024
(Dollars in millions, except share
amounts)
Preferred Stock
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Shares
Amount
Shares
Amount
Total
Balance, December 31, 2023
800,000
$ 789.9
138,727,521
$
— $ 1,718.6
$
(349.0) $
(404.4) $
43.3 $1,798.4
Preferred stock costs
—
(0.2)
—
—
—
—
—
—
(0.2)
Issuance of common stock, net
of issuance costs
—
—
—
—
(0.1)
—
—
—
(0.1)
Restricted stock grants (RSG)
—
—
412,148
—
—
—
—
—
—
Shares retired due to RSG vesting
—
—
(131,116)
—
(1.6)
—
—
—
(1.6)
Shares retired due to common
stock repurchase program
—
—
(1,565,775)
—
(27.7)
14.4
—
—
(13.3)
At-the-market equity offering
program costs
—
—
—
—
(0.1)
—
—
—
(0.1)
Stock based compensation
—
—
—
—
23.6
—
—
—
23.6
Other comprehensive (loss)
income:
Unrealized foreign currency
translation loss, net of tax
—
—
—
—
—
—
(30.9)
(0.3)
(31.2)
Unrealized foreign currency
derivative contract gain, net of tax
—
—
—
—
—
—
29.3
—
29.3
Unrealized loss on interest rate
swaps, net of tax
—
—
—
—
—
—
(1.6)
—
(1.6)
Common stock dividends
—
—
—
—
—
(82.6)
—
—
(82.6)
Preferred stock dividends
—
—
—
—
—
(43.5)
—
—
(43.5)
Net loss
—
—
—
—
—
(33.0)
—
(0.7)
(33.7)
Contributions from
noncontrolling interests
—
—
—
—
—
—
—
0.6
0.6
Deconsolidation of
noncontrolling interests
—
—
—
—
—
—
—
(1.6)
(1.6)
Distributions to noncontrolling
interests
—
—
—
—
—
—
—
(6.5)
(6.5)
Balance, December 31, 2024
800,000
$ 789.7
137,442,778
$
—
$ 1,712.8
$
(493.7) $
(407.6) $
34.8
$1,636.0
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
KENNEDY WILSON ANNUAL REPORT 2024
87
86
KENNEDY WILSON ANNUAL REPORT 2024
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Cash flows from operating activities:
Net (loss) income
$
(33.7)
$
(281.4)
$
101.9
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Gain on sale of real estate, net
(160.1)
(127.6)
(103.7)
Depreciation and amortization
148.3
157.8
172.9
Above/below market and straight-line rent amortization
(1.6)
(5.5)
(8.0)
Uncollectible lease income
3.6
5.4
8.0
Provision for (benefit from) deferred income taxes
(10.4)
(65.9)
18.3
Amortization of loan fees
9.9
9.2
9.1
Amortization of discount and accretion of premium and transactional
foreign exchange
(7.5)
2.9
2.6
Unrealized net loss (gain) on derivatives
14.8
16.4
(45.9)
Loss (gain) on early extinguishment of debt
1.7
1.6
(27.5)
(Income) loss from unconsolidated investments
(6.5)
252.8
(178.4)
Provision for loan loss reserves
11.2
7.0
—
Accretion of discount on loans
(4.1)
(3.5)
—
Share-based compensation expense
23.6
34.5
29.0
Deferred compensation
(7.9)
(3.8)
7.6
Operating distributions from unconsolidated investments
60.8
69.2
78.1
Change in assets and liabilities:
Accounts receivable
11.6
(23.8)
(13.4)
Other assets
(4.5)
(1.3)
(9.7)
Accrued expenses and other liabilities
5.9
4.9
(8.0)
Net cash provided by operating activities
55.1
48.9
32.9
Cash flows from investing activities:
Issuance of loans
(40.1)
(150.2)
(50.9)
Proceeds from collection of loans
49.8
48.9
34.5
Net proceeds from sale of consolidated real estate
589.5
383.9
325.9
Purchases of consolidated real estate
(16.6)
—
(408.2)
Capital expenditures to real estate
(131.6)
(217.2)
(160.9)
Investing distributions from unconsolidated investments
86.6
92.4
157.1
Contributions to unconsolidated investments
(125.0)
(167.4)
(361.3)
Proceeds from settlement of derivative contracts
1.6
—
112.6
Premiums paid for settlement of derivative contracts
—
(2.1)
(10.4)
Net cash provided by (used in) investing activities
414.2
(11.7)
(361.6)
Cash flow from financing activities:
Borrowings under line of credit/term loan
170.0
50.0
528.4
Repayment of line of credit/term loan
(215.2)
(185.0)
(325.0)
Borrowings under mortgage debt
360.7
408.9
401.3
Repayment of mortgage debt
(521.1)
(446.4)
(389.6)
Repayment of KWE Notes
(181.1)
—
(65.8)
Payment of loan fees
(13.9)
(0.7)
(5.0)
Issuance of common stock, net of issuance costs
(0.1)
29.8
(0.7)
Repurchase of common stock
(15.0)
(20.9)
(31.2)
Preferred stock issuance, net of issuance costs
(0.2)
197.4
297.3
Common stock dividends paid
(100.2)
(136.0)
(134.6)
Preferred stock dividends paid
(43.5)
(35.5)
(25.9)
Contributions from noncontrolling interests
0.6
1.3
25.8
Distributions to noncontrolling interests
(6.5)
(27.7)
(10.8)
Net cash (used in) provided by financing activities
(565.5)
(164.8)
264.2
Effect of currency exchange rate changes on cash and cash equivalents
—
2.0
(21.0)
Net change in cash and cash equivalents
(96.2)
(125.6)
(85.5)
Cash and cash equivalents, beginning of year
313.7
439.3
524.8
Cash and cash equivalents, end of year
$
217.5
$
313.7
$
439.3
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Cash Flows
Year Ended December 31, 2022
(Dollars in millions, except
share amounts)
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total
Preferred Stock
Common Stock
Shares
Amount
Shares
Amount
Balance, December 31, 2021
300,000
$ 295.2
137,955,479
$ —
$ 1,679.6
$ 192.4
$ (389.6) $ 26.3 $ 1,803.9
Preferred stock issuance, net
of issuance costs
300,000
297.3
—
—
—
—
—
—
297.3
At-the-market equity
offering program costs
—
—
—
—
(0.7)
—
—
—
(0.7)
Restricted stock grants
—
—
1,221,362
—
—
—
—
—
—
Shares retired due to RSG vesting
—
—
(834,911)
—
(18.6)
—
—
—
(18.6)
Shares retired due to common
stock repurchase program
—
—
(551,162)
—
(9.8)
(2.8)
—
—
(12.6)
Stock based compensation
—
—
—
—
29.0
—
—
—
29.0
Other comprehensive
income (loss):
Unrealized foreign currency
translation loss, net of tax
—
—
—
—
—
—
(68.7)
(3.0)
(71.7)
Unrealized foreign currency
derivative contract gain, net of tax
—
—
—
—
—
—
23.4
—
23.4
Unrealized gain on interest rate
swaps, net of tax
—
—
—
—
—
—
4.8
—
4.8
Common stock dividends
—
—
—
—
—
(132.3)
—
—
(132.3)
Preferred stock dividends
—
—
—
—
—
(28.9)
—
—
(28.9)
Net income
—
—
—
—
—
93.7
—
8.2
101.9
Contributions from
noncontrolling interests
—
—
—
—
—
—
—
25.7
25.7
Distributions to
noncontrolling interests
—
—
—
—
—
—
—
(10.8)
(10.8)
Balance, December 31, 2022
600,000
$ 592.5
137,790,768
$ —
$ 1,679.5
$ 122.1
$ (430.1) $ 46.4 $ 2,010.4
See accompanying notes to consolidated financial statements.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Equity
KENNEDY WILSON ANNUAL REPORT 2024
89
88
KENNEDY WILSON ANNUAL REPORT 2024
NOTE 1—ORGANIZATION
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 real estate
investment company that invests in high growth markets across the United States (“U.S.”), the United
Kingdom (“UK”) and Ireland. With an objective of generating strong long-term risk-adjusted returns
for its shareholders and partners and drawing on over three decades of experience in identifying
opportunities and building value through various market cycles, in its markets, the Company focuses
on (i) investing in the rental housing sector (both market rate and affordable units) and industrial
properties; and (ii) originating, managing and servicing real estate loans (primarily senior construction
loans secured by high quality multifamily and student housing properties that are being developed by
institutional sponsors 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 primarily involve ownership of multifamily assets. 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 the Company has made through its commingled funds and joint ventures that it
manages; (ii) fees (including, without limitation, asset management fees, construction management fees,
and/or acquisition and disposition fees); and (iii) carried interests.
NOTE 2—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
BASIS OF PRESENTATION—The consolidated financial statements include the accounts of Kennedy
Wilson and voting interest entities which it controls. All intercompany balances and transactions have
been eliminated in consolidation. In addition, Kennedy Wilson evaluates its relationships with other
entities to identify whether they are variable interest entities (“VIE”) as defined by Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 810, Consolidation, and to
assess whether it is the primary beneficiary of such entities. In determining whether Kennedy Wilson is the
primary beneficiary of a VIE, qualitative and quantitative factors are considered, including, but not limited
to: the amount and characteristics of Kennedy Wilson’s investment; the obligation or likelihood for Kennedy
Wilson to provide financial support; Kennedy Wilson’s ability to control or significantly influence key
decisions for the VIE; and the similarity with and significance to the business activities of Kennedy Wilson.
The Company determines the appropriate accounting method with respect to all investments that
are not VIEs based on the control-based framework (controlled entities are consolidated) provided by
the consolidation guidance in ASC Subtopic 810. The Company accounts for joint ventures where it is
deemed that the Company does not have control through the equity method of accounting while joint
ventures that the Company controls are consolidated in Kennedy Wilson’s financial statements.
USE OF ESTIMATES—The preparation of the accompanying consolidated financial statements in
conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make
estimates and assumptions about future events. These estimates and the underlying assumptions affect
the amounts of assets and liabilities reported, disclosure about contingent assets and liabilities, and
reported amounts of revenues and expenses. Management evaluates its estimates and assumptions
on an ongoing basis using historical experience and other factors, including the current economic
environment, which management believes to be reasonable under the circumstances. Management
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022
Supplemental cash flow information:
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Cash paid for:
Interest(1)(2)
$
256.1
$
252.0
$
214.4
Income taxes
9.2
21.8
19.9
Cash received from consolidated and unconsolidated asset sales and loan
repayments, net
600.9
376.1
369.8
Cash received on interest rate hedges
26.0
24.0
0.9
(1) $1.1 million, $1.4 million, and $4.0 million attributable to non-controlling interests for the years ended December 31, 2024, 2023,
and 2022, respectively.
(2) Net of $4.5 million, $5.0 million, and $3.3 million of capitalized interest for the years ended December 31, 2024, 2023 and 2022,
respectively.
As of December 31, 2024, 2023, and 2022, we have $94.5 million, $69.6 million, and $21.4 million,
respectively, of restricted cash, which is included in cash and cash equivalents, that primarily relates
to lender reserves associated with consolidated mortgages that we hold on properties and reserves
held on loans in the newly acquired Construction Loan Portfolio (as defined herein) on behalf of the
borrowers under such loans. These reserves typically relate to interest, tax, insurance and future capital
expenditures at the properties and on our loan investments.
Supplemental disclosure of non-cash investing and financing activities:
During the year ended December 31, 2024, the Company also sold a previously consolidated
multifamily property into its Vintage Housing Holdings (“VHH”) platform, with the Company retaining
an interest in the property through its investment in VHH. The transaction was treated as a non-cash
activity with the remaining share of real estate, mortgage loan and other balance sheet items being
removed from the consolidated balance sheet with an increase of $16.5 million to unconsolidated
investments.
During the year ended December 31, 2023, the Company sold a 49% equity interest in two previously
wholly-owned market-rate multifamily properties into an existing joint venture platform managed by
the Company (see gain on sale of real estate in Note 3 for further description of the transaction) and
retained a noncontrolling 51% interest in such properties, which was treated as a non-cash activity with
the remaining share of real estate, mortgage loan and other balance sheet items being removed from
the consolidated balance sheet with an increase of $33.4 million to unconsolidated investments.
During the year ended December 31, 2023, the Company also sold a previously wholly-owned
multifamily property into its VHH platform, with the Company retaining an interest in the property
through its investment in VHH. The transaction was treated as a non-cash activity with the remaining
share of real estate, mortgage loan and other balance sheet items being removed from the consolidated
balance sheet with an increase of $16.8 million to unconsolidated investments.
During the year ended December 31, 2022, the noncontrolling 51% interest that the Company retained
as part of the sale of a 49% ownership interest in a multifamily asset in the Western United States
(see gain on sale of real estate in Note 3 for further description of the transaction) was treated as
a non-cash activity with the remaining share of real estate, mortgage loan and other balance sheet
items being removed from the consolidated balance sheet resulting in an increase of $31.9 million to
unconsolidated investments.
Kennedy-Wilson Holdings, Inc.
Consolidated Statements of Cash Flows (continued)
KENNEDY WILSON ANNUAL REPORT 2024
91
90
KENNEDY WILSON ANNUAL REPORT 2024
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 in Other section of revenues. 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 (“NCI”). 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.
The Company is involved in all stages of real estate ownership, including development. Once a project
is in development, consistent with ASC Topic, 360 Property Plant, and Equipment, costs including interest
and real estate taxes and associated costs directly related to the project under development, are
capitalized. During the predevelopment period of a probable project and the period in which a project
is under construction, the Company capitalizes all direct and indirect costs associated with planning,
developing, and constructing the project. Once a project is constructed and deemed substantially
complete and ready for occupancy, carrying costs, such as real estate taxes, interest and associated
costs, are expensed as incurred.
UNCONSOLIDATED INVESTMENTS—Kennedy Wilson has a number of joint venture interests that
were formed to acquire, manage, and/or sell real estate. 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, plus additional contributions and less distributions. 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 Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
adjusts such estimates and assumptions when facts and circumstances dictate. As future events and
their effects cannot be determined with precision, actual results could differ significantly from these
estimates. Changes in those estimates will be reflected in the financial statements in future periods.
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 carried interests, 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 revenue 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.
Management fees are primarily comprised of investment management fees. 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.
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. Loan 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 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.
KENNEDY WILSON ANNUAL REPORT 2024
93
92
KENNEDY WILSON ANNUAL REPORT 2024
Carried interests compensation is recognized in the same period that the related carried interests
are recognized and can be reversed during periods when there is a reversal of carried interests that
were previously recognized. As of December 31, 2024 and 2023, the Company has $7.1 million and
$22.8 million, respectively, of accrued carried interests compensation recorded to accrued expenses
and other liabilities that are subject to future adjustments based on the underlying performance of
investments. During the year ended December 31, 2024 and 2023, the Company did not pay out
any carried interests compensation. During the year ended December 31, 2022, the Company paid
$1.2 million to employees for carried interests that were realized during the period.
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 recognized
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.
DISTRIBUTIONS FROM UNCONSOLIDATED INVESTMENTS—The Company utilizes the nature of
distributions approach and distributions are reported under operating cash flow unless the facts and
circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating
dividend or distribution of the proceeds from unconsolidated investments’ sale of assets), in which case
it is reported as an investing activity. This enables Kennedy Wilson to look to the nature and source of
the distribution received and classify it appropriately between operating and investing activities on the
statement of cash flows based upon the source.
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 the effect
of these fluctuations, the Company enters into hedging transactions, in the form of currency derivative
The Company records its investments in certain commingled funds it manages and sponsors (the
“Funds”) that are investment companies under the 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 the Company’s investments at fair value, with unrealized gains and losses resulting from changes
in fair value reflected in their earnings.
In addition, the Company elected the fair value option for 72 investments in unconsolidated investment
entities (“FV Option” investments). These co-investments are structured as limited liability companies
and limited partnerships with one partner and function under a collaborative decision-making structure.
The Company owns a weighted average ownership of approximately 40% of the equity investment in
such co-investment investments. The Company elected to record these co-investments at fair value in
order to report the change in value in the underlying investments in the results of its current operations
consistent with its investments in certain commingled funds, as described above.
The Company has adopted an ownership model for carried interests representing allocations to the
Company from equity method investments, based on cumulative performance to-date. Consequently,
in accordance with 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 operations as “carried interests”. Carried interests are allocated to the
Company under the Funds and such co-investment investments based on the cumulative performance
of the venture and are subject to preferred return thresholds of the partners. In the case of the Funds,
these carried interests represent an allocation relating to the performance of investment management
services, whereas they represent returns for the performance of the underlying investments in the co-
investment investments structures subject to collaborative decision-making.
At the end of each reporting period, the Company calculates the carried interest 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 carried interests to reflect either
(a) positive performance resulting in an increase in the carried interests 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 recognized as income from unconsolidated investments, resulting in a
negative adjustment to carried interests to the general partner or asset manager. As of December 31,
2024 and 2023, the Company has $27.6 million and $77.3 million, respectively, of accrued carried
interests recorded to unconsolidated investments that are subject to future adjustments based on the
underlying performance of investments. During the year ended December 31, 2024 and 2023, the
Company did not collect any carried interests. During the year ended December 31, 2022, the Company
collected $6.8 million of carried interests. The amount of the Company’s non-cash carried interest
accruals recorded from its Funds and its FV Option investments for the years ended December 31,
2024, 2023 and 2022 are as follows:
Years Ended December 31,
(Dollars in millions)
2024
2023
2022
Funds
$
(38.8)
$
(39.5)
$
(18.4)
Co-investments
(10.9)
(24.8)
(2.7)
Total
$
(49.7) $
(64.3) $
(21.1)
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
95
94
KENNEDY WILSON ANNUAL REPORT 2024
ACCOUNTS RECEIVABLE—Accounts receivable are recorded at the contractual amount as determined
by the underlying agreements and do not bear interest. The Company recognizes revenue to the extent
that amounts are probable that substantially all rental income will be collected.
CONCENTRATION OF CREDIT RISK—Financial instruments that subject Kennedy Wilson to credit risk
consist primarily of accounts and notes receivable, cash equivalents and derivative instruments. Credit risk
is generally diversified due to the large number of entities composing Kennedy Wilson’s customer base
and their geographic dispersion throughout the United States, the United Kingdom, Ireland and to a lesser
extent Spain and Italy. Kennedy Wilson performs ongoing credit evaluations of its customers and debtors.
EARNINGS PER SHARE—Basic earnings per share is computed based upon the weighted average
number of shares of common stock outstanding during the periods presented. Diluted earnings per
share is computed based upon the weighted average number of shares of common stock and potentially
dilutive securities outstanding during the periods presented. The dilutive impact of potentially dilutive
securities includes convertible securities, and unvested stock which were outstanding during the
period. Unvested stock are calculated by the “treasury stock” method and the convertible securities
under the “if converted” method.
COMPREHENSIVE INCOME (LOSS)—Comprehensive income (loss) consists of net income (loss) and
other comprehensive income (loss). In the accompanying consolidated balance sheets, accumulated
other comprehensive income consists of foreign currency translation adjustments and unrealized gains
(losses) on derivative instruments.
REPURCHASE OF EQUITY INSTRUMENTS—Upon the decision to retire repurchased equity
instruments, Kennedy Wilson records the retirement as a reduction to additional paid in capital for the
amount that shares were initially issued at with the excess paid recorded to retained earnings.
SHARE-BASED PAYMENT ARRANGEMENTS—Kennedy Wilson accounts for its share-based payment
arrangements under the provisions of ASC Subtopic 718-10, Compensation—Stock Compensation.
Compensation cost for employee service received in exchange for an award of equity instruments
is based on the grant-date fair value of the share-based award that is ultimately settled in equity
of Kennedy Wilson. The cost of employee services is recognized over the period during which an
employee provides service in exchange for the share-based payment award. Share-based payment
arrangements with only services conditions that vest ratably over the requisite service period are
recognized on the straight-line basis and performance awards that vest ratably are recognized on a
tranche by tranche basis over the performance period.
INCOME TAXES—Income taxes are accounted for under the asset and liability method. Deferred tax
assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in income in the period that includes the enactment date. In accordance with accounting
for uncertainty in ASC Subtopic 740-10, Income Taxes, Kennedy Wilson recognizes the effect of income
tax positions only if those positions are more likely than not of being sustained. Recognized income tax
positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in
recognition or measurement are reflected in the period in which the change in judgment occurs.
contracts, that are designed to reduce its book equity exposure to foreign currencies. KWE has also
entered into currency derivative contracts to manage its exposure to euro to British pound currency
fluctuations. See Note 5 for a complete discussion on currency derivative contracts.
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES—Kennedy Wilson has derivatives to reduce
its exposure to foreign currencies. All derivative instruments are recognized as either assets or liabilities
in the balance sheet at their respective fair values. For derivatives designated in hedging relationships,
changes in fair value of cash flow hedges or net investment hedges are recognized in accumulated other
comprehensive income, to the extent the derivative is effective at offsetting the changes in the item
being hedged until the hedged item affects earnings.
Fluctuations in foreign exchanges rates may have a significant impact on the Company’s results of
operations. In order to manage the potential exposure from adverse changes in foreign exchange
rates arising from the Company’s net investments in foreign operations, the Company may enter into
currency derivative contracts to hedge all or portions of the net investments in the Company’s non-U.S.
dollar denominated foreign operations.
GOODWILL—Goodwill results from the difference between the purchase price and the fair value
of net assets acquired based upon the purchase method of accounting for business combinations.
In accordance with ASC Subtopic 350-20, Accounting for Intangibles—Goodwill and Other, goodwill is
reviewed for impairment on an annual basis. The Company performs its annual review of impairment
at year end and when a triggering event occurs between annual year end reviews. As a result of
the evaluation performed as described above, Kennedy Wilson has determined that there was no
impairment of goodwill during the years ended December 31, 2024, 2023 and 2022.
CASH AND CASH EQUIVALENTS—Cash and cash equivalents consist of cash and all highly liquid
investments purchased with maturities of three months or less. Cash and cash equivalents are
invested in institutions insured by government agencies. Certain accounts contain balances in excess
of the insured limits. Kennedy Wilson’s operations and financial position are affected by fluctuations
in currency exchange rates between the euro and British pound sterling against the U.S. Dollar. As
of December 31, 2024, 2023, and 2022 we have $94.5 million, $69.6 million, and $21.4 million,
respectively, of restricted cash, which is included in cash and cash equivalents on the accompanying
consolidated balance sheets, that primarily relates to lender reserves associated with consolidated
mortgages that we hold on properties and reserves held on loans in the Company’s real estate credit
business on behalf of the borrowers under such loans. These reserves typically relate to interest, tax,
insurance and future capital expenditures at the properties and on our loan investments.
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 gain
on sale of real estate, net in the amount by which the carrying amount of the asset exceeds the fair
value of the asset. 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 consolidated balance sheets.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
97
96
KENNEDY WILSON ANNUAL REPORT 2024
NOTE 3—REAL ESTATE AND ACQUIRED IN PLACE LEASE VALUE
The following table summarizes the Company’s investment in consolidated real estate properties at
December 31, 2024 and 2023:
December 31,
(Dollars in millions)
2024
2023
Land
$
979.6
$
1,328.3
Buildings
3,548.7
3,679.1
Building improvements
466.9
511.3
Acquired in-place lease values
244.3
276.4
5,239.5
5,795.1
Less accumulated depreciation and amortization
(949.1)
(957.8)
Real estate and acquired in place lease values, net of accumulated depreciation and
amortization
$
4,290.4
$
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 the 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 amortized over their respective weighted-average lease term which was
7.2 years at December 31, 2024.
Depreciation and amortization expense on buildings, building improvements and acquired in-place lease
values for the years ended December 31, 2024, 2023 and 2022 was $141.4 million, $148.9 million and
$162.7 million, respectively.
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 third-party
willing sellers after arms-length negotiations.
During the years ended December 31, 2024 and 2023, Kennedy Wilson did not acquire any
consolidated properties. The Company initially acquired the first asset in its United Kingdom single
family rental unit platform while its partner was completing due diligence. This asset was subsequently
sold into this new platform during the year ended December 31, 2024 and is accounted for as an
unconsolidated investment.
Gains on Sale of Real Estate, Net
During the year ended December 31, 2024, Kennedy Wilson recognized gains on sale of real estate,
net of $160.1 million. These gains were primarily due to (i) the Company’s sale of the Shelbourne Hotel,
which resulted in a gain of $99.1 million; (ii) the sale of a wholly-owned multifamily asset in Western
United States for a gain of $56.1 million; (iii) the sale of a building in an office campus, which resulted
in a gain of $21.6 million; (iv) the deconsolidation of a previously wholly-owned multifamily property
as a result of our sale of 90% of the ownership interest to a new partner which resulted in a gain of
$8.1 million; and (v) the remainder of gain on sale of real estate, net relates to the sale of non-core
retail assets in the United Kingdom and Spain which resulted in loss on sale in addition to impairments
referenced below.
Kennedy Wilson records interest related to unrecognized tax benefits in interest expense and penalties
in general and administrative expenses on the consolidated statements of operations.
NONCONTROLLING INTERESTS—Noncontrolling interests are reported within equity as a separate
component of Kennedy Wilson’s equity in accordance with ASC Subtopic 810-10. Revenues, expenses,
gains, losses, net income or loss, and other comprehensive income are reported in the consolidated
statements of operations at the consolidated amounts and net income and comprehensive income
attributable to noncontrolling interests are separately stated.
RECENT ACCOUNTING PRONOUNCEMENTS
On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update enhances
reportable segment disclosures by requiring a public entity to: (i) disclose, on an annual and interim
basis, significant segment expenses that are regularly provided to the chief operating decision maker
(“CODM”) and included within each reported measure of segment profit or loss, (ii) disclose, on an
annual and interim basis, an amount of other segment items by reportable segment and a description of
its composition, (iii) provide all annual disclosures about a reportable segment’s profit or loss and assets
currently required by Topic 280 in interim periods and (iv) disclose the title and position of the CODM
and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing
segment performance and deciding how to allocate resources. This ASU also clarifies that, in addition to
the measure that is most consistent with the measurement principles under GAAP, a public entity is not
precluded from reporting additional measures of a segment’s profit or loss that are used by the CODM
in assessing segment performance and deciding how to allocate resources. This guidance is effective
for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning
after December 15, 2024. The Company adopted ASU 2023-07 in the fourth quarter of 2024 and have
updated its segment disclosures to comply with the updated requirements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU
requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as
information on income taxes paid and will be effective for annual periods beginning after December 15,
2024. The new requirements should be applied on a prospective basis with an option to apply them
retrospectively. Early adoption is permitted. The Company is evaluating the impact that ASU 2023-09
will have on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive
Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses. This ASU requires public business entities to disclose additional information about specific
expense categories in the notes to financial statements at interim and annual reporting periods. This
guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within
fiscal years beginning after December 15, 2027 with early adoption permitted. These requirements
should be applied on a prospective basis with an option to apply them retrospectively. The Company is
evaluating the impact that ASU 2024-03 will have on our consolidated financial statement disclosures.
The FASB did not issue any other ASUs during the year ended December 31, 2024 that the Company
expects to be applicable and have a material impact on the Company’s financial statements.
RECLASSIFICATIONS—Certain balances included in prior year’s financial statements have been
reclassified to conform to the current year’s presentation.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
99
98
KENNEDY WILSON ANNUAL REPORT 2024
NOTE 4—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 December 31, 2024:
(Dollars in millions)
Multifamily
Commercial
Hotel
Funds
Residential and Other
Total
Western U.S.
$
856.0
$
74.1
$
249.7
$
63.4
$
183.3
$
1,426.5
Ireland
279.2
125.1
—
4.9
—
409.2
United Kingdom
7.7
154.2
—
28.4
16.4
206.7
Total
$
1,142.9
$
353.4
$
249.7
$
96.7
$
199.7
$
2,042.4
The following table details the 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 year ended December 31, 2024, the change in unconsolidated investments primarily relates
to $125.0 million of cash contributions to unconsolidated investments, $147.4 million of distributions
from unconsolidated investments, $16.5 million associated with the deconsolidations, $6.4 million of
gains from unconsolidated investments (net of $6.3 million of fair value losses), and a $29.9 million
decrease related to other items, which primarily related to foreign exchange movements.
As of December 31, 2024 and December 31, 2023, $1,884.4 million and $1,927.0 million, respectively,
of unconsolidated investments were accounted for at fair value. See Note 5 for more detail.
Contributions to Joint Ventures
During the year ended December 31, 2024, Kennedy Wilson contributed $125.0 million to joint
ventures, primarily to capital calls with respect to the new European investments in industrial and single
family housing, and fund new acquisitions in the Company’s new United States based commingled fund
and multifamily properties in Western United States with separate account partners.
Distributions from Joint Ventures
The following table details cash distributions by investment type and geographic location for the year
ended December 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.
$
34.7 $
74.4 $
9.2 $
1.7 $
1.3 $
2.8 $
0.2 $
4.5 $
45.4 $
83.4
Ireland
9.8
—
4.3
2.1
—
—
—
—
14.1
2.1
United Kingdom
—
—
0.1
0.2
—
—
1.2
0.9
1.3
1.1
Total
$
44.5 $
74.4 $
13.6 $
4.0 $
1.3 $
2.8 $
1.4 $
5.4 $
60.8 $
86.6
During the year ended December 31, 2023, Kennedy Wilson recognized gains on sale of real estate,
net of $127.6 million. These gains were primarily due to (i) the Company’s sale of 49% of its equity
interest in two previously wholly-owned market-rate multifamily properties into an existing joint
venture platform managed by the Company and which the Company retained a noncontrolling 51%
interest in such properties, which resulted in a gain on sale of real estate of $79.5 million; (ii) the sale
of a Western United States property to VHH, pursuant to which the Company retains an interest in the
asset through its ownership interest in VHH, which resulted in a gain of $15.1 million; (iii) the sale of a
consolidated multifamily property owned with a noncontrolling interest partner which resulted in a gain
of $37.6 million ($20.1 million of which was at the Company’s share) and (iv) the remainder of gain on
sale of real estate relates to the sale of non-core retail and residential properties in the Western United
States, United Kingdom, Ireland, and Spain.
During the year ended December 31, 2022, due to the sale and deconsolidation of multifamily asset
in the Western United States, the Company recognized a $56.7 million gain on sale of real estate,
net and generated $30.2 million of cash proceeds for the Company. The gain is due to the sale of the
49% interest to the Company’s partner and the recording of the Company’s retained 51% interest in
unconsolidated investments at the fair value established by the transaction.
Included in the net gains for the year ended December 31, 2024, 2023 and 2022 are impairment losses
of $22.1 million, $28.6 million and $13.3 million, respectively, primarily relating to European non-core
retail and office assets.
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. The majority of the Company’s rental expenses, including
common area maintenance, real estate taxes and insurance, 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 tenants on
leases with lease periods greater than one year at December 31, 2024:
(Dollars in millions)
Minimum
Rental Revenues(1)
2025
$
118.6
2026
103.7
2027
90.7
2028
75.8
2029
59.5
Thereafter
124.8
Total
$
573.1
(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.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
101
100
KENNEDY WILSON ANNUAL REPORT 2024
During the year ended December 31, 2024, we recorded a $38.8 million decrease in the accrual for
carried interests in our Funds, primarily related to the fair value decreases that the Company recorded
with respect to certain office assets within the Company’s United States commingled fund. There
was also a $10.9 million decrease in carried interests on certain separate account platforms that hold
multifamily assets in the Western United States.
During the year ended December 31, 2023, valuations pulled back primarily as a result of continued
expansion of estimated capitalization rates and significant reductions in transaction volumes and liquidity
due to, increased borrowing rates as the Federal Reserve continued its interest rate hikes and increased
the federal funds rate by 100 basis points during 2023. As such, during the year ended December 31, 2023
the Company recorded fair value decreases with respect to: (i) certain office properties in the Western
United States, Ireland and United Kingdom primarily due to expansion in estimated capitalization rates,
primarily as a result of increased interest rates, which also led to us recording a decrease of the accrued
carried interests with respect to funds that held these investments as discussed below; (ii) certain market
rate multifamily properties in the Western United States and Ireland primarily due to expansion in
estimated capitalization rates; (iii) the write off of a $5 million investment in a social impact real estate
fund manager; and (iv) a decrease in the fair value of a building that we hold a 10% ownership interest
in due to a national co-working office tenant no longer paying rent at such property. These fair value
decreases were offset by (i) a fair value increase of $51.5 million with respect to our investment in 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, 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), the resyndication of properties and (ii) fair value increases recognized by
the Company on fixed rate mortgages due to increases in market interest rates.
During the year ended December 31, 2023, the Company recorded a $39.5 million decrease in the
accrual for carried interests relating to commingled funds that hold office assets and a $24.8 million
reduction on carried interests associated with market rate multifamily separate account platforms in the
Western United States and Ireland.
Vintage Housing Holdings
As of December 31, 2024 and 2023, the carrying value of the Company’s investment in VHH was
$333.9 million and $285.9 million, respectively. The total equity income recognized from the Company’s
investment in VHH was $47.1 million, $63.0 million and $119.8 million for the years ended December 31,
2024, 2023 and 2022, respectively. Distributions in the current period primarily relate to operating
distributions and distributions associated with the conversion of development properties to operating
properties.
During the year ended December 31, 2024, the Company received $27.4 million of proceeds from
VHH, including $10.3 million from recurring monthly distributions, $6.8 million from paid developer
fees at conversion from development properties to operating properties and $10.3 million from sales
and refinancings.
Capital Commitments
As of December 31, 2024, Kennedy Wilson had unfulfilled capital commitments totaling $284.7 million
to ten of its unconsolidated joint ventures, including $61.1 million relating to four closed-end funds
managed by Kennedy Wilson, under the respective operating agreements.
Investing distributions resulted primarily from sale of a multifamily property in Western United States,
conversions of VHH properties from development to operating, the redemption of an interest in a
hedge fund investment and excess proceeds from the refinancing of mortgage loans on properties.
Operating distributions resulted from operating cash flow generated by the joint venture investments
that have been distributed to the Company.
Income from Unconsolidated Investments
The following table presents income from unconsolidated investments recognized by Kennedy Wilson
during the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
(Dollars in millions)
2024
2023
2022
Income from unconsolidated investments—operating performance
$
29.9
$
40.8
$
80.2
Income from unconsolidated investments—realized gains from cost basis investments
32.6
—
4.7
(Loss) income from unconsolidated investments—unrealized and realized fair value (losses) gains
(6.3)
(229.3)
114.6
Principal co-investments
56.2
(188.5)
199.5
Loss from unconsolidated investments—carried interests Funds
(38.8)
(39.5)
(18.4)
Loss from unconsolidated investments—carried interests co-investments
(10.9)
(24.8)
(2.7)
Income (loss) from unconsolidated investments
$
6.5
$(252.8)
$ 178.4
Operating performance
During the year ended December 31, 2024, the Company recognized an increase in rental and hotel
revenue compared to the same period in 2023, primarily as a result of the recapitalization of certain
previously consolidated multifamily properties that are now a part of our Co-Investment Portfolio and
the opening of the Kona Village Resort in July 2023. This increase in rental and hotel revenue was
offset by: (i) costs associated with the ongoing stabilization of the Kona Village Resort and development
properties in Europe that are in the process of leasing up, as these projects were under development
in prior period and all costs were capitalized during construction (ii) higher interest expense due to
changes in the contractual interest rates of our indebtedness and higher debt balances due to the
increase in assets in Co-Investment Portfolio; and (iii) lower income from sales of residential units at our
Kohanaiki development in Hawaii as compared to the prior period.
Realized Gains
During the year ended December 31, 2024, the Company sold the majority of its interest in an
unconsolidated investment that was not accounted for under the fair value method of accounting and
recognized a gain of $32.6 million.
Fair Value
During the year ended December 31, 2024, the Company recorded fair value decreases with respect to:
(i) lower fair values with respect to office properties in the Western United States, Ireland and United
Kingdom due to market assumptions of higher vacancy rates and lower rental growth with respect to
the same; and (ii) non-cash fair value losses on mortgage debt and interest rate hedges as previous
non-cash fair value gains unwind due to loans and hedges moving closer to maturity dates. These fair
value decreases were offset by (i) fair value increases with respect to our minority ownership interest
in Zonda, a technology based real estate residential housing advisory business, as a result of its recent
completion of a merger transaction; (ii) fair value increases associated with our investment in VHH due
to increases in NOI at the underlying properties and lower cost of capital associated with the business
as interest rates have moved down; and (iii) fair value increase on a recently completed multifamily
development in the Western United States as operations ramp up.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
103
102
KENNEDY WILSON ANNUAL REPORT 2024
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 FV Option for 72 unconsolidated investments to more accurately
reflect the timing of the value created in the underlying investments and report those changes in
current operations. Kennedy Wilson’s investment balance in the FV Option investments was $1,787.7
million and $1,793.9 million at December 31, 2024 and 2023, respectively, which are included in
unconsolidated investments in the accompanying balance sheets.
Additionally, Kennedy Wilson records its investments in its managed commingled funds (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. The Company’s investment balance
in the Funds was $96.7 million and $133.1 million at December 31, 2024 and 2023, respectively, which
is included in unconsolidated investments in the accompanying consolidated balance sheets.
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 summarizes the Company’s investments in unconsolidated investments held at fair
value by type:
(Dollars in millions)
December 31, 2024
December 31, 2023
FV Option
$
1,787.7
$
1,793.9
Funds
96.7
133.1
Total
$
1,884.4
$
1,927.0
The following table presents changes in Level 3 investments, investments in investment companies and
investments in joint ventures that elected the fair value option, for the years ended December 31:
(Dollars in millions)
2024
2023
2022
Beginning balance
$
1,927.0
$
2,093.7 $
1,794.8
Unrealized and realized gains, including carried interests
142.2
111.5
274.4
Unrealized and realized losses
(178.1)
(377.4)
(114.1)
Contributions
105.3
168.8
348.1
Distributions
(97.2)
(143.9)
(188.9)
Foreign exchange
(29.8)
25.0
(55.8)
Other
15.0
49.3
35.2
Ending balance
$
1,884.4
$
1,927.0 $
2,093.7
The Other balance for the year ended December 31, 2024 relates to the non-cash transfer of one
consolidated multifamily property into VHH. The Other balance for the year ended December 31, 2023
primarily consists of non-cash contributions relating to two recapitalized multifamily investments into
a separate account platform and one multifamily property into VHH. The Other balance for the year
ended December 31, 2022 includes $31.9 million related to the sale of a 49% ownership interest in
multifamily asset located in the Western United States. As the increase in unconsolidated investments
Summarized Financial Data
VHH
The income from VHH was a significant component of the Company’s operations for the year ended
December 31, 2024 and 2022. Information for year ended December 31, 2023 is show for comparative
purposes.
Summarized financial information is provided below:
VHH
December 31,
(Dollars in millions)
2024
2023
Cash and cash equivalents
$ 148.5 $
44.0
Accounts receivable
28.3
3.7
Real estate
2,141.3
2,054.9
Other
38.7
0.3
Total assets
$ 2,356.8 $
2,102.9
Liabilities
Accounts payable and accrued expenses
$ 120.1 $
21.1
Mortgage debt
1,523.9
1,417.4
Total liabilities
1,644.0
1,438.5
Equity
Kennedy Wilson—investment in unconsolidated investment
332.6
285.9
Partners
380.2
378.5
Total equity
712.8
664.4
Total liabilities and equity
$ 2,356.8
$
2,102.9
VHH
Year Ended December 31,
(Dollars in millions)
2024
2023
2022
Rental income
$
174.9 $
154.6 $
131.0
Unrealized fair value gains
36.4
114.4
270.7
Rental expenses
(61.2)
(52.1)
(41.0)
Interest expense
(62.8)
(52.0)
(45.6)
Other expense
(4.2)
(8.2)
—
Net income
83.1
156.7
315.1
Income attributable to partner
(36.0)
(93.7)
(195.3)
Income from unconsolidated investment
$
47.1 $
63.0 $
119.8
NOTE 5—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 December 31, 2024:
(Dollars in millions)
Level 1
Level 2
Level 3
Total
Unconsolidated investments
$
—
$
—
$1,884.4
$1,884.4
Net currency derivative contracts
—
(1.2)
—
(1.2)
Total
$
—
$
(1.2)
$1,884.4
$1,883.2
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
105
104
KENNEDY WILSON ANNUAL REPORT 2024
Other factors that the Company takes into account under both approaches may include transaction
structuring efficiencies, 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 Company has an investment in a Zonda, a technology based real estate business that offers
residential construction data that is accounted for at fair value which is valued at the Company’s share
of the business using a multiple on trailing twelve months EBITDA.
The table below describes the range of inputs used as of December 31, 2024 for real estate assets:
Estimated Rates Used For
Capitalization Rates
Discount Rates
Multifamily—Affordable
Income approach—discounted cash flow
6.30% — 7.20%
8.30% — 9.20%
Multifamily—Affordable GP interest
Income approach—discounted cash flow
N/A
16.00% — 19.50%
Multifamily—Market Rate
Income approach—direct capitalization
4.60% — 6.50%
N/A
Office
Income approach—discounted cash flow
5.20% — 7.50%
7.30% — 9.30%
Income approach—direct capitalization
5.30% — 10.30%
N/A
Industrial
Income approach—discounted cash flow
5.00% —6.30%
6.30% — 7.80%
Income approach—direct capitalization
4.00% — 8.90%
N/A
Hotel
Income approach—discounted cash flow
6.00%
8.30%
In valuing indebtedness, Kennedy Wilson considers significant inputs to be the term of the debt,
value of collateral, market loan-to-value ratios, market interest rates and spreads, and credit quality of
investment entities. The credit spreads used by Kennedy Wilson to value floating rate indebtedness
range from 2.00% to 3.60%, while the market rates used to value fixed rate indebtedness range from
4.10% to 9.30%.
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,
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 has 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 a portion of 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
was due to a non-cash movement the amounts are reflected in Other above. See notes to cash flow
statement and Note 3 for further discussion regarding the sale.
The change in unrealized gains and losses on Level 3 investments during 2024 and 2023 for
investments still held as of December 31, 2024 and 2023 were losses of $16.7 million and losses
of $178.2 million, respectively. The change in unrealized and realized gains and losses are included
in principal co-investments within income from unconsolidated investments on the accompanying
consolidated statements of income.
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 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 year ended December 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. For our investment in VHH the
Company fair values its general partner (“GP”) interests net cashflows utilizing a levered discount rate.
Under the direct capitalization approach, the Company applies a market derived estimated
capitalization rate to current and future income streams with appropriate adjustments for tenant
vacancies or rent-free periods. These estimated capitalization rates and future income streams are
derived from comparable property and leasing transactions and are considered to be key inputs in the
valuation.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
107
106
KENNEDY WILSON ANNUAL REPORT 2024
The gains and losses recognized through other comprehensive income (loss) will remain in accumulated
other comprehensive income (loss) until the underlying investments they were hedging are substantially
liquidated by Kennedy Wilson. During the year ended December 31, 2024, the Company reclassified
a loss of $8.8 million from other comprehensive loss to gain on sale of real estate relating to the sale
of the Shelbourne hotel and $2.1 million gain on an interest rate swap due to the repayment of the
underlying mortgage.
The currency derivative contracts discussed above are offset by foreign currency translation of the
Company’s foreign net assets. For the year ended December 31, 2024, Kennedy Wilson had a gross
foreign currency translation losses on its net assets of $37.1 million. As of December 31, 2024, the
Company has hedged 95% of the net asset carrying value of its euro denominated investments and
83% of the net asset carrying value of its GBP denominated investments. See Note 15 for a complete
discussion on other comprehensive income including currency derivative contracts and foreign currency
translations.
Interest Rate Derivatives
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 $10.0 million and $5.9 million for the years ended December 31, 2024 and
2023, respectively. Some of the Company’s unconsolidated investments have interest rate caps, which
resulted in a gain of $0.4 million and a loss of $5.2 million recorded in principal co-investments for the
years ended December 31, 2024 and 2023, respectively.
The carrying amounts of cash and cash equivalents, accounts receivable including related party
receivables, accounts payable, accrued expenses and other liabilities 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. Debt assumed in
an asset acquisition, or business combination, is recorded at fair value on the date of acquisition. The
aggregate fair value as of December 31, 2024 and 2023 for mortgages, KW unsecured debt, and KWE
unsecured bonds were estimated to be approximately $4.5 billion and $5.0 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 aggregate carrying value of $4.8 billion and $5.6 billion as of December 31,
2024 and 2023, respectively. The inputs used to value mortgages, KW 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.
NOTE 6—LOANS
The global debt platform consists of two groups: the Company’s construction lending portfolio, which
was established with the acquisition of the Construction Loan Portfolio from Pacific Western Bank in
the second quarter of 2023 (as detailed below) and the Company’s bridge loan portfolio.
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 December 31,
2024 and 2023, 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 our 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) in 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 December 31, 2024 and 2023 are
reported in other assets for hedge assets and included in accrued expenses and other liabilities for
hedge liabilities on the accompanying balance sheet. See Note 15 for a complete discussion on
other comprehensive income including currency forward and option contracts and foreign currency
translations.
The table below details the currency forward contracts and currency option contracts Kennedy Wilson
had as of December 31, 2024:
(Dollars in millions)
December 31, 2024
Year Ended December 31, 2024
Currency Hedged
Underlying
Currency
Notional
Hedge
Asset
Hedge
Liability
Change in
Unrealized
Gains
(Losses)
Recognized
Gains
Interest
Expense
Cash
Received
(Paid)
Outstanding
EUR
USD
€ 155.0
$
— $
4.4
$
0.4
$
8.7 $
1.4 $
—
EUR(1)
GBP
€
40.0
—
0.6
(0.2)
—
—
—
EUR(1)(2)
GBP
€ 300.0
—
—
24.4
—
—
—
GBP
USD
£ 375.0
4.9
1.1
3.7
0.6
0.5
—
Total Outstanding
4.9
6.1
28.3
9.3
1.9
—
Settled
EUR
USD
—
—
—
2.7
2.1
4.0
GBP
USD
—
—
2.5
0.7
1.0
(2.4)
Total Settled
—
—
2.5
3.4
3.1
1.6
Total
$
4.9 $
6.1
$
30.8(3) $
12.7 $
5.0 $
1.6
(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 $1.4 million.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
109
108
KENNEDY WILSON ANNUAL REPORT 2024
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:
Minimum
(Dollars in millions)
Rental Payments
2025
$
1.0
2026
1.3
2027
1.3
2028
1.3
2029
1.3
Thereafter
29.1
Total undiscounted rental payments
35.3
Less imputed interest
(26.7)
Right of use asset
$
8.6
Rental expense was $1.1 million, $0.7 million, and $0.6 million for the years ended December 31, 2024,
2023 and 2022, respectively, and is included in general and administrative expense on the accompanying
consolidated statements of operations.
NOTE 8—MORTGAGE DEBT
The following table details mortgage debt secured by Kennedy Wilson’s consolidated properties as of
December 31, 2024 and 2023:
(Dollars in millions)
Carrying amount of mortgage debt as of
December 31,(1)
Mortgage Debt by Product Type
Region
2024
2023
Multifamily(1)
Western U.S.
$
1,664.9
$
1,711.0
Commercial(1)
United Kingdom
434.3
509.9
Commercial
Western U.S.
209.4
258.2
Commercial(1)
Ireland
303.1
337.8
Commercial
Spain
—
37.7
Mortgage debt (excluding loan fees)(1)
2,611.7
2,854.6
Unamortized loan fees
(14.5)
(13.7)
Total Mortgage Debt
$
2,597.2
$
2,840.9
(1) The mortgage debt payable balances include unamortized debt discount. Debt discount represent the difference between the fair
value of debt and the principal value of debt assumed in various acquisitions 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 loan discount
as of December 31, 2024 and 2023 was $1.4 million and $1.0 million, respectively.
The mortgage debt had a weighted average interest rate of 4.84% and 5.10% per annum as of
December 31, 2024 and 2023, respectively. As of December 31, 2024, 70% of Kennedy Wilson’s
property level debt was fixed rate, 27% was floating rate with interest caps and 2% was floating rate
without interest caps, compared to 65% fixed rate, 35% floating rate with interest caps and 0% floating
rate without interest caps, as of December 31, 2023.
Mortgage Debt Transactions and Maturities
During the year ended December 31, 2024, six existing mortgages were refinanced and one loan was
deconsolidated.
During the year ended December 31, 2023, the Company and affiliates of Fairfax Financial Holdings
Limited (collectively, “Fairfax”), its equity partner, acquired a $4.1 billion construction loan portfolio
from Pacific Western Bank (the “Construction Loan Portfolio”). The Company’s investment in the
Construction Loan Portfolio was 5% of the purchase price and the future funding obligations. The
$4.1 billion represented the gross commitment amount for the Construction Loan Portfolio, which has
been reduced to $3.7 billion as of December 31, 2023, due to loan repayments. The Construction Loan
Portfolio has a current outstanding balance of $2.4 billion (Kennedy Wilson share of $118.9 million),
not including the 4.5% discount on gross commitment amounts from the time of purchase. As of
December 31, 2024, the Company had unfulfilled capital commitments totaling $123.4 million to our
loan portfolio.
The Company had loan purchases and originations of $231.1 million and $247.2 million at
December 31, 2024 and December 31, 2023, respectively. During the year ended December 31, 2024
and December 31, 2023, the Company had loan income of $31.2 million and $26.1 million, respectively.
During the year ended December 31, 2024 and 2023, the Company recorded a $11.2 million and
$7.0 million of credit loss reserve through other (loss) income. See Note 2 for more detail on CECL
reserves.
NOTE 7—OTHER ASSETS
Other assets consist of the following:
December 31,
(Dollars in millions)
2024
2023
Straight line rent receivable
$
40.5
$
45.8
Interest rate caps and swaps
12.9
29.0
Goodwill
23.9
23.9
Hedge assets
4.9
13.3
Prepaid expenses
14.0
13.1
Deferred taxes, net
7.0
10.0
Leasing commissions, net of accumulated amortization of $13.5 and $13.4 at December 31, 2024
and 2023, respectively
7.9
9.0
Right of use asset, net
10.1
8.9
Furniture and equipment net of accumulated depreciation of $21.7 and $30.8
at December 31, 2024 and 2023, respectively
5.3
7.0
Above-market leases, net of accumulated amortization of $38.5 and $42.4
at December 31, 2024 and 2023, respectively
1.4
2.5
Other
13.1
25.0
Other Assets
$
141.0
$
187.5
Depreciation and amortization expense related to the above depreciable assets were $6.9 million, $8.8
million, and $10.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.
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 two 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.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
111
110
KENNEDY WILSON ANNUAL REPORT 2024
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 require the Company to maintain (i) a maximum consolidated leverage ratio (as defined in
the Credit Agreement) of not greater than 65%, measured as of the last day of each fiscal quarter, (ii) a
minimum fixed charge coverage ratio (as defined in the Credit Agreement) of not less than 1.60 to 1.00,
measured as of the last day of each fiscal quarter for the period of four full fiscal quarters then ended,
(iii) a minimum consolidated tangible net worth equal to or greater than the sum of $1,844,222,000
plus an amount equal to fifty percent (50%) of net equity proceeds received by the Company after the
date of the most recent financial statements that are available as of September 12, 2024, measured
as of the last day of each fiscal quarter, (iv) a maximum recourse leverage ratio (as defined in the
Credit Agreement) of not greater than an amount equal to consolidated tangible net worth as of the
measurement date multiplied by 1.5, measured as of the last day of each fiscal quarter, (v) a maximum
secured recourse leverage ratio (as defined in the Credit Agreement) of not greater than an amount
equal to 3.5% of consolidated total asset value (as defined in the Credit Agreement) and $313,054,000,
(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 December 31, 2024, the Company was in compliance with all financial covenant calculations. The
obligations of the Borrower pursuant to the Credit Agreement are guaranteed by the Company and
certain wholly-owned subsidiaries of the Company.
As of December 31, 2024, the Company had $98.3 million outstanding on the Third A&R Facility with
$451.7 million available to be drawn.
The average outstanding borrowings under credit facilities was $186.8 million during the year ended
December 31, 2024.
Senior Notes
On February 11, 2021, Kennedy-Wilson, Inc., 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, Kennedy-Wilson, Inc. 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 Kennedy Wilson previously issued 2029
notes and the 2031 notes. On August 23, 2021, Kennedy-Wilson, Inc. issued $600.0 million aggregate
principal amount of 4.750% senior notes due 2030 (the “2030 notes” and, together with the 2029 notes
and the 2031 notes, the “notes”). The notes are senior, unsecured obligations of Kennedy Wilson and are
guaranteed by Kennedy-Wilson Holdings, Inc. and certain subsidiaries of Kennedy Wilson.
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
The aggregate maturities of mortgage loans including amortization and effects of any extension options
as of December 31, 2024 are as follows:
(Dollars in millions)
Aggregate
Maturities
2025(1)
$
141.3
2026
515.0
2027
341.3
2028
332.9
2029
304.5
Thereafter
978.1
2,613.1
Unamortized debt discount
(1.4)
Unamortized loan fees
(14.5)
Total Mortgage Debt
$
2,597.2
(1) The Company expects to repay the amounts maturing in the next twelve months with new mortgage loans, cash generated from
operations, existing cash balances, proceeds from dispositions of real estate investments, or as necessary, with borrowings on the
Company’s Third A&R Facility.
As of December 31, 2024, the Company was in compliance with all property-level mortgages and was
current on all payments (principal and interest) with respect to the same.
NOTE 9—KW UNSECURED DEBT
The following table details KW unsecured debt as of December 31, 2024 and 2023:
December 31,
(Dollars in millions)
2024
2023
Credit Facility
$
98.3
$
150.4
Senior Notes(1)
1,802.7
1,803.1
KW Unsecured Debt
1,901.0
1,953.5
Unamortized loan fees
(23.1)
(19.2)
Total KW Unsecured Debt
$ 1,877.9
$ 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 assumed in various acquisitions and are 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 December 31,
2024 and December 31, 2023 was $2.7 million and $3.1 million, respectively.
Borrowings Under Credit Facilities
On September 12, 2024, 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 Third
Amended and Restated Credit Agreement (the “Credit Agreement”, and the $550 million revolving line
of credit thereunder, the “Third A&R Facility”) with Bank of America, N.A., as administrative agent, and
the lenders and letter of credit issuers party thereto. Loans under the Third A&R Facility bear interest
at a rate equal to Daily Secured Overnight Financing Rate (“SOFR”) or Term SOFR plus an applicable
rate between 1.75% and 2.75%, depending on the consolidated leverage ratio as of the applicable
measurement date. The Third A&R Facility has a maturity date of September 12, 2027 and has two
six-month extension options.
The Third 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,
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
113
112
KENNEDY WILSON ANNUAL REPORT 2024
Notes are recorded to accumulated other comprehensive income. During the year ended December 31,
2024, Kennedy Wilson recognized a gain of $24.4 million in accumulated other comprehensive income
due to the weakening of the euro against the GBP during the period. On December 18, 2024, KWE
completed a redemption of €175 million in aggregate nominal amount of its KWE Notes at a price of
100.4% of the principal amount redeemed plus accrued interest. During the year ended December 31,
2022, KWE launched a cash tender offer for up to €150.0 million in aggregate nominal amount of the
KWE Notes and accepted all of the €75.0 million (approximately $80.3 million, based on December 31,
2022 rates) in aggregate nominal amount of KWE Notes validly tendered pursuant to the tender offer
for a purchase price equal to 82% of the nominal amount of the KWE Notes, which resulted in a gain
on extinguishment of debt of $13.9 million. The Company intends to repay the KWE Notes through a
combination of cash on hand, proceeds from asset sales and its unsecured credit facility.
The trust deed that governs the bonds contain 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 December 31, 2024, KWE was in compliance with these financial covenants.
NOTE 11—RELATED PARTY TRANSACTIONS
Related party revenue is fees and other income received from investments in which the Company
has an ownership interest, excluding amounts eliminated in consolidation discussed below. Kennedy
Wilson earned related party fees of $49.3 million, $61.9 million and $45.2 million for the periods ended
December 31, 2024, 2023 and 2022, respectively.
The Company provides investment and property management and other property related services
on properties in which it also has an ownership interest. 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. During the years ended December 31, 2024, 2023 and
2022 fees of $0.9 million, $0.3 million and $0.4 million, respectively, were eliminated in consolidation.
NOTE 12—INCOME TAXES
The table below represents a geographical breakdown of book (loss) income before the provision for
(benefit from) income taxes:
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Domestic
$
(40.3)
$
(238.8)
$
88.5
Foreign
16.8
(97.9)
49.6
Total
$
(23.5)
$
(336.7)
$
138.1
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), Kennedy Wilson had the right to (with respect to the 2029 Notes and 2030
Notes) and may redeem the 2031 Notes, 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), Kennedy Wilson 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), Kennedy Wilson 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 Kennedy Wilson 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 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 indentures governing the notes limit the
ability of Kennedy Wilson 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 December 31, 2024, the maximum balance sheet leverage ratio was 1.28 to 1.00. See Note 18 for
the guarantor and non-guarantor financial statements.
As of December 31, 2024, the Company was in compliance with all financial covenants.
NOTE 10—KWE UNSECURED BONDS
The following table details the KWE unsecured bonds as of December 31, 2024 and 2023:
December 31,
(Dollars in millions)
2024
2023
KWE Euro Medium Term Note Programme(1)
$
310.0
$
523.3
Unamortized loan fees
(0.2)
(0.5)
Total KWE Unsecured Bonds
$
309.8
$
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 loan discount as of December 31,
2024 and 2023 was $0.5 million and $1.0 million, respectively.
KWE issued senior unsecured notes for an aggregate principal amount of (€550 million) (the “KWE
Notes”). The KWE Notes were issued at a discount with an annual fixed coupon of 3.25%, and mature
in November 2025. KWE invested proceeds from the KWE Notes to fund equity investments in euro
denominated assets and has designated the KWE Notes as a net investment hedge under ASC Topic
815. Subsequent fluctuations in foreign currency rates that impact the carrying value of the KWE
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
115
114
KENNEDY WILSON ANNUAL REPORT 2024
During the year ended December 31, 2019, the United Kingdom enacted a Finance Act, which
introduced a new capital gain tax for non-UK resident investors who dispose of UK real estate. The
new capital gain tax law became effective on April 6, 2019. Beginning on this date, non-UK resident
investors are subject to UK tax on gains arising from the direct and indirect dispositions of UK real
estate held for investment purposes. Transitional provisions allowed for rebasing of UK real estate
values to fair market value as of April 5, 2019 (“UK Basis Step-Up”). Accordingly, only gains arising from
property value increases after April 5, 2019 are subject to tax. The step-up led to a higher tax basis
relative to the carrying value of the UK real estate, thus resulting in a UK deferred tax asset of $107.0
million. The realizability of this deferred tax asset is dependent on future disposition of real estate at a
fair market value in excess of appraised value as of April 5, 2019. Given uncertainties surrounding Brexit
and its potential impact on future real estate values, the Company concluded that the U.K. deferred
tax asset did not meet the more likely than not threshold of being realizable. Therefore, a full valuation
allowance was recorded against the UK deferred tax asset. As the economic environment in the UK real
estate market is still uncertain and highly depended on numerous general economic factors, including
but not limited to rising interest rates, foreign currency fluctuations, inflation, etc, the Company has
maintained a full valuation allowance against its UK Basis Step-Up deferred tax asset. During fiscal year
2024, the valuation allowance on the UK Basis Step-Up increased to $167.0 million, primarily due to
current year depreciation expense.
During March 2018, Kennedy Wilson elected to treat KWE as a partnership for U.S. tax purposes
retroactive to December 29, 2017. Due to unrealized foreign exchange losses not yet deductible for
tax purposes and the consideration paid to acquire the non-controlling interests in KWE exceeding the
book carrying value of the non-controlling interests in KWE, the Company’s tax basis in KWE exceeded
its book carrying value at December 29, 2017, and every period thereafter. Prior to the election to
treat KWE as a partnership, KWE was taxed as a controlled foreign corporation. As a controlled foreign
corporation, the Company was precluded from recognizing a deferred tax asset for its tax basis in
excess of book carrying value for its investment in KWE as the excess tax basis from the investment
was not expected to reverse in the foreseeable future. However, as a result of the conversion of KWE
to a partnership for U.S. tax purposes, the Company was required to record a deferred tax asset for
its investment in KWE. As of December 31, 2018, the Company recorded a $98.3 million deferred tax
asset related to its excess tax basis over book carrying value for its investment in KWE. As a significant
portion of the excess tax basis would only reverse upon a strengthening of foreign currencies or upon a
disposition of KWE, the Company determined that a valuation allowance of $98.3 million was required
for the tax basis that was in excess of the Company’s carrying value for its investment in KWE as it did
not meet the more likely than not recognition threshold. During the years ended December 31, 2023,
the Company’s excess tax basis over book basis in KWE decreased due to unrealized foreign currency
gains that has no tax basis. During the year ended December 31, 2024, the Company’s excess tax
basis over book basis in KWE increased, primarily due to higher tax gains on sales of real estate. As of
December 31, 2024, Kennedy Wilson’s excess tax basis in KWE and the related valuation allowance
were $89.1 million and $76.6 million, respectively.
As of December 31, 2024, Kennedy Wilson had California and other state net operating losses of $99.6
million and $10.1 million, respectively. California net operating losses begin to expire in 2034. As of
December 31, 2024, Kennedy Wilson had $156.5 million of foreign net operating loss carryforwards,
which have no expiration date. The Company has foreign tax credit carryforwards of $87.6 million, of
which $6.3 million begin to expire in 2027.
The U.S. and foreign components of provision for income taxes consisted of the following components.
However, it is not reflective of the cash tax results of the Company.
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Federal
Current
$
—
$
—
$
—
Deferred
(11.8)
(66.0)
3.6
(11.8)
(66.0)
3.6
State
Current
5.6
0.7
0.3
Deferred
(1.1)
0.8
11.3
4.5
1.5
11.6
Foreign
Current
15.0
9.9
17.6
Deferred
2.5
(0.7)
3.4
17.5
9.2
21.0
Provision for (benefit from) income taxes
$
10.2
$
(55.3)
$
36.2
A reconciliation of the statutory federal income tax rate of 21% with Kennedy Wilson’s effective income
tax rate is as follows:
Year ended December 31,
(Dollars in millions)
2024
2023
2022
Tax computed at the statutory rate
$
(4.9)
$
(70.7)
$
29.0
Domestic permanent differences, primarily disallowed executive compensation
6.8
8.7
7.8
Foreign permanent differences, primarily non-deductible depreciation,
amortization and interest expenses in the United Kingdom
1.0
1.9
1.7
Effect of foreign operations, net of foreign tax credit
5.6
11.2
(8.8)
Noncontrolling interests
0.2
(5.1)
(1.1)
State income taxes, net of federal benefit
(1.1)
(7.8)
2.8
Other
2.6
6.5
4.8
Provision for (benefit from) income taxes
$
10.2
$
(55.3)
$
36.2
Cumulative tax effects of temporary differences are shown below at December 31, 2024 and 2023:
Year ended December 31,
(Dollars in millions)
2024
2023
Deferred tax assets:
Foreign currency translation
$
1.2
$
4.8
Net operating loss carryforward and credits
135.3
178.0
Depreciation and amortization
90.8
69.4
Investment basis difference
101.3
89.6
Stock option expense
1.7
1.7
Hedging transactions
17.0
15.5
Lease liability
0.1
0.1
Capitalized interest
0.2
—
Accrued reserves
6.4
7.9
Total deferred tax assets
354.0
367.0
Valuation allowance
(277.5)
(283.3)
Net deferred tax assets
76.5
83.7
Deferred tax liabilities:
Investment basis and reserve differences
288.7
304.1
Prepaid expenses and other
5.5
3.7
Capitalized interest
—
0.1
Total deferred tax liabilities
294.2
307.9
Deferred tax liability, net
$
(217.7)
$
(224.2)
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
117
116
KENNEDY WILSON ANNUAL REPORT 2024
equity (the “ROE awards”) (for the years ended December 31, 2023 and 2022), performance-based
restricted stock units of Company common stock subject to vesting based on the Company’s return on
invested assets (the “ROIA awards”) (for the year ended December 31, 2024) and time-based restricted
shares of Company common stock or time-based restricted stock units covering Company common
stock (the “time-based awards”) (collectively, the “awards”), under the Second Amended and Restated
Plan. Up to 100% of the TSR awards will be eligible to vest based on the Company’s total shareholder
return relative to the MSCI World Real Estate GICS Level 1 Index (or replacement thereof) during a
three-year performance period (subject to continued employment through the vesting date), with the
actual number of shares subject to such TSR awards that vest and cease to be subject to restrictions
with respect to the performance period determined by multiplying (i) the total number of shares subject
to the TSR award by (ii) the applicable vesting percentage (which is determined based on the level of
the Company’s relative total shareholder return attained during the performance period). Up to one-
third of the ROE awards and/or ROIA awards (as applicable) will be eligible to vest with respect to
each Company fiscal year of the performance period (each, a “performance year”) to the extent that
the Company satisfies the return on equity goals for such performance year (subject to continued
employment through the vesting date). One-third of the time-based awards will vest on each of the first
three anniversaries of the grant date, subject to continued employment through the vesting date. Stock-
based compensation expense is based on the fair values on the date of grant for the ROE and ROIA
awards and time-based awards. Certain ROE and ROIA awards and time-based awards were granted
with a three-year sale restriction period upon vesting. Due to the lack of marketability of these shares
with the three-year sale restriction period upon vesting, a 12.5% discount was applied to the grant
price of these shares when computing stock compensation expense. The fair value of the TSR awards
are estimated using a Monte Carlo simulation. As of December 31, 2024, there was $27.5 million of
unrecognized compensation cost for the Second Amended and Restated Plan related to unvested
shares which will vest over the next three years.
Upon vesting, the restricted stock granted to employees discussed directly above is net share-settled
to cover the withholding tax. Shares that vested during the years ended December 31, 2024, 2023
and 2022 were net-share settled such that the Company withheld shares with values equivalent to
the employees’ minimum statutory obligations for the applicable income and other employment taxes,
and remitted the cash to the appropriate taxing authorities. The total shares withheld during the years
ended December 31, 2024, 2023 and 2022 were 131,116 shares, 781,303 shares, and 834,911 shares
respectively, and were valued based on the Company’s closing stock price on the respective vesting
dates. During the years ended December 31, 2024, 2023 and 2022, total payments for the employees’
tax obligations to the taxing authorities were $1.6 million, $13.4 million, and $18.6 million respectively.
These figures are reflected as a financing activity on the accompanying consolidated statements of
cash flows.
During the years ended December 31, 2024, 2023 and 2022, Kennedy Wilson recognized $23.6 million,
$34.5 million, and $29.0 million, respectively, of compensation expense related to the vesting of
restricted common stock and is included in compensation and related expense in the accompanying
consolidated statements of income.
The Company’s valuation allowance on deferred tax assets decreased by $5.8 million in 2024 and
increased by $17.4 million in 2023. The decrease in the valuation allowance during 2024 primarily
relates to a partial release of the valuation allowance against the deferred tax asset associated with our
excess tax basis in KWE investment relating to assets intended for sale in the foreseeable future. The
increase in the 2023 valuation allowance principally relates to additional valuation allowance recorded
on the Company’s UK Basis Step-Up deferred tax asset as a result of depreciation.
In June 2021, the Company received a notification of a general tax inquiry being conducted by the
Spanish tax authorities for several of its Spanish entities for tax years 2016 and 2017. As a result of
the Spanish tax inquiry, management has reassessed the Company’s prior Spanish tax filing positions
and the need to accrue additional taxes. Based on this reassessment, the Company believes that no
additional Spanish tax accruals are required.
Kennedy Wilson’s federal and state income tax returns remain open to examination for the years 2021
through 2023 and 2020 through 2023, respectively. However, due to the existence of prior year loss
carryovers, the IRS may examine any tax years for which the carryovers are used to offset future taxable
income. Our foreign subsidiaries’ tax returns remain open to examination for the years 2020 through
2023. The Spanish loss carryovers may be subject to tax examination for a period of 10 years from the
period in which such losses were generated.
NOTE 13—COMMITMENTS AND CONTINGENCIES
CAPITAL COMMITMENTS—As of December 31, 2024 and 2023, the Company has unfunded capital
commitments of $284.7 million and $187.7 million to its joint ventures under the respective operating
agreements. It also has commitments of $123.4 million and $87.7 million as of December 31, 2024 and
2023 to its global loan platform. The Company may be called upon to contribute additional capital to
joint ventures in satisfaction of the Company’s capital commitment obligations.
LITIGATION—Kennedy Wilson is currently a defendant in certain routine litigation arising in the
ordinary course of business. It is the opinion of management and legal counsel that the outcome of
these actions will not have a material effect on the financial statements taken as a whole.
NOTE 14—STOCK COMPENSATION AND OTHER RELATED PLANS
The Company maintains a shareholder-approved equity participation plan (the “Second Amended and
Restated Plan”) under which shares of common stock are reserved for issuance pursuant to grants of
restricted stock and other awards to officers, employees, non-employee directors and consultants.
The Second Amended and Restated Plan also allows for share recycling on net settled restricted
stock awards, restricted stock unit awards, performance unit awards and performance share awards.
Certain senior employees of the Company (“Senior Employees”) participate in the Second Amended
and Restated Plan. During the years ended December 31, 2024, 2023 and 2022, the compensation
committee of the board of directors approved the total grant of 4.8 million shares of performance-
based restricted stock units, 3.4 million shares of performance-based restricted stock units and
2.8 million shares of performance-based restricted stock units of Company common stock, respectively,
subject to vesting based on the Company’s total shareholder return (the “TSR restricted awards”),
performance-based restricted shares of Company common stock or performance-based restricted
stock units covering Company common stock subject to vesting based on the Company’s return on
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
119
118
KENNEDY WILSON ANNUAL REPORT 2024
NOTE 15—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.
On March 8, 2022, the Company announced the issuance of its $300 million cumulative perpetual
preferred stock, in addition to approximately 13 million of its warrants to affiliates of Fairfax. Under
the terms of the agreements, Fairfax purchased $300 million in cumulative perpetual preferred stock
carrying a 4.75% annual dividend rate and approximately 13 million 7-year warrants, which are initially
convertible to the same number of common shares with and an initial exercise price of $23.00 per share.
Both perpetual preferred stock issuances are treated as permanent 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 as the Company may determine from time to time.
During the year ended December 31, 2023, the Company issued 1,690,743 shares for $29.8 million, net
of issuance costs, under its ATM Program. During 2024 and 2022 there were no shares issued through
the ATM Program.
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.
Common Stock Repurchase Program
On March 20, 2018, the Company announced that its board of directors authorized a $250.0 million
stock repurchase program. 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. On November 4, 2020, the Company’s board of directors authorized an
expansion of its existing $250 million share repurchase plan to $500 million.
During the year ended December 31, 2024, Kennedy Wilson repurchased and retired 1,565,775 shares
for $13.3 million. During the year ended December 31, 2023, Kennedy Wilson repurchased and retired
666,701 shares for $7.5 million under the previous stock repurchase program.
Generally, upon vesting, the restricted stock units 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. See Note 14 for more detail.
The following table sets forth activity under the Amended and Restated Plan, the First Amended and
Restated Plan, and the Second Amended and Restated Plan for the Company’s fiscal years ending
December 31, 2024, 2023 and 2022:
Shares
Nonvested at December 31, 2022
1,700,558
Granted
961,045
Vested
(781,303)
Forfeited
(267,031)
Nonvested at December 31, 2023
1,613,269
Granted
412,148
Vested
(131,116)
Forfeited
—
Nonvested at December 31, 2024
1,894,301
Non-NEO Deferred Compensation Program and Carried Interests Sharing Program
The Company maintains a deferred compensation program for certain employees of the Company (the
“Deferred Compensation Program”). The named executive officers of the Company are not participants
of the Deferred Compensation Program. The compensation committee of the Company’s board of
directors approves an amount annually to be allocated to certain employees of the Company in the
United States and in Europe. The amount allocated to each employee vests ratably over a three-year
vesting period, subject to continued employment with the Company. Prior to 2022, half of the allocated
amount was tied specifically to the performance and value of the Company’s common stock at the
time of each vesting (“Bonus Units”). Beginning in 2022, the entire amount allocated to each employee
consisted of Bonus Units. Under the Deferred Compensation Program, at the time of each vesting, the
employees receive an amount equal to either the dividend yield of the Company’s common stock or
the actual amount of dividends paid on the Company common stock (in the case of Bonus Units) during
the immediately preceding year on the amount that is subject to such vesting. During the years ended
December 31, 2024, 2023 and 2022 the Company recognized compensation expense of $6.4 million,
$8.2 million and $9.2 million, respectively, under the Deferred Compensation Program.
The Company also maintains a carried interests sharing program for certain employees of the
Company (the “Carried Interests Sharing Program”). On January 29, 2025, compensation committee
of the Company’s board of directors recently approved, reserved and authorized increasing the pool
available for the Company employees from thirty-five percent to fifty percent (50%) issue of any carried
interests earned by certain commingled funds and separate account investments to be allocated to
certain employees of the Company (including the Company’s executive officers). Sixty percent of the
award to each employee vests ratably over four years and the remaining forty percent vests upon the
consummation of a liquidity event of the investment whereby the Company actually receives cash
carried interests from its partner. The full carried interests earned by the Company will be recorded
to income from unconsolidated investments and the amount allocated to employees is recorded as
carried interests expense. During the years ended December 31, 2024, 2023 and 2022 the Company
recognized reversals of $16.6 million, $15.1 million and $4.3 million, respectively, of carried interests
compensation to employees.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
121
120
KENNEDY WILSON ANNUAL REPORT 2024
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 GBP) of certain of its wholly-owned and consolidated subsidiaries. See
Note 5 for a more detailed discussion of Kennedy Wilson’s currency derivative contracts.
NOTE 16—EARNINGS PER SHARE
Basic earnings 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 per share for
the years ended December 31, 2024, 2023 and 2022:
Year ended December 31,
(Dollars in millions, except share amounts and per share data)
2024
2023
2022
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc.
common shareholders
$
(76.5)
$
(341.8)
$
64.8
Weighted-average shares outstanding for basic
137,778,812
138,930,517
136,900,875
(Loss) income per share—basic
$
(0.56)
$
(2.46)
$
0.47
Weighted average shares outstanding for diluted
137,778,812
138,930,517
138,567,534
(Loss) income per share—diluted
$
(0.56)
$
(2.46)
$
0.47
There was a total of 40,726,571, 42,977,012 and 26,958,511 during the years ended December 31,
2024, 2023 and 2022, respectively, potentially dilutive securities were not included in the diluted
weighted average shares as they were anti-dilutive. Potentially anti-dilutive securities include preferred
stock and unvested restricted stock grants.
NOTE 17—SEGMENT INFORMATION
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 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. The Company typically owns a 5% to 50% ownership interest
in the assets in its Co-Investment Portfolio. It also includes the fees (including, without limitation,
asset management fees, construction management fees, and/or acquisition and disposition fees)
that the Company earns on its fee bearing capital as well as the potential for carried interests.
Dividend Distributions
Kennedy Wilson declared and paid the following cash dividends on its common stock:
Year Ended
December 31, 2024
Year Ended
December 31, 2023
(Dollars in millions)
Declared
Paid
Declared
Paid
Preferred Stock
$
43.5
$
43.5
$
38.0
$
35.5
Common Stock(1)
82.6
100.2
133.6
136.0
(1) The difference between declared and paid is the amount accrued on the consolidated balance sheets.
Taxability of Dividends
Earnings and profits, which determine the taxability of distributions to stockholders, may differ from
income reported for financial reporting purposes due to the differences for federal income tax purposes
in the treatment of revenue recognition, compensation expense, derivative investments and the basis of
depreciable assets and estimated useful lives used to compute depreciation.
The Company’s dividends related to its common stock will be classified for U.S. federal income tax
purposes as follows:
Record Date
Payment
Date
Distributions
Per Share
Ordinary
Dividends
Return of
Capital
12/29/2023
1/4/2024
$
0.2400
$ 0.2400
$
—
3/27/2024
4/4/2024
0.2400
0.2400
—
6/28/2024
7/5/2024
0.1200
0.1200
—
9/30/2024
10/3/2024
0.1200
0.1200
—
Totals
$
0.7200
$ 0.7200
$
—
Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in each component of accumulated other comprehensive
loss (“AOCI”), net of taxes:
(Dollars in millions)
Foreign
Currency
Translation
Foreign
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
(37.1)
30.9
—
(6.2)
Taxes on unrealized losses (gains), arising during the period
0.6
(1.4)
—
(0.8)
Amounts reclassified out of AOCI during the period, gross
9.5
(0.8 )
(2.1 )
6.6
Amounts reclassified out of AOCI during the period, taxes
(4.2)
0.6
0.5
(3.1)
Noncontrolling interest
0.3
—
—
0.3
Balance at December 31, 2024
$
(156.6)
$
105.8
$
1.6
$
(49.2)
(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.
The local currencies for the Company’s interests in foreign operations include the euro and the British
pound sterling. The related amounts on our balance sheets are translated into U.S. dollars at the
exchange rates at the respective financial statement date, while amounts on our statements of income
are translated at the average exchange rates during the respective period. Unrealized gains on foreign
currency translation is a result of the strengthening of the euro and British pound sterling against the
U.S. dollar during the year ended December 31, 2024.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
123
122
KENNEDY WILSON ANNUAL REPORT 2024
The following tables summarize the income and expense activity by segment for the years ended
December 31, 2024, 2023 and 2022 and total assets as of December 31, 2024 and 2023.
Year Ended December 31, 2024
(Dollars in millions)
Consolidated
Co-Investments
Total
Segment Revenue
Rental
$
390.6
$
—
$
390.6
Hotel
9.3
—
9.3
Investment management fees
—
98.9
98.9
Loans
—
31.2
31.2
Total segment revenue
399.9
130.1
530.0
Income from unconsolidated investments
Principal co-investments
—
56.2
56.2
Carried interests
—
(49.7)
(49.7)
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments
—
135.4
135.4
Income from unconsolidated investments
—
141.9
141.9
Gain on sale of real estate, net
160.1
—
160.1
Segment Expenses
Rental
150.0
—
150.0
Hotel
7.6
—
7.6
Compensation and related
39.4
49.1
88.5
Carried interests compensation
—
(16.6)
(16.6)
General and administrative
14.9
16.7
31.6
Other (income) loss
(1.0)
11.0
10.0
Other segment items(1)
7.8
(0.9)
6.9
Total segment expenses
218.7
59.3
278.0
Segment Adjusted EBITDA
$
341.3
$
212.7
$
554.0
Reconciliation of Segment Adjusted EBITDA to Net Income
attributable to Kennedy-Wilson Holdings, Inc. Common Shareholders
Other revenue
1.4
Compensation and related, corporate
(46.3)
General and administrative, corporate
(7.2)
Depreciation and amortization
(148.3)
Interest expense
(261.1)
Loss on early extinguishment of debt
(1.7)
Other income
14.2
Provision for income taxes
(10.2)
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments
(135.4)
EBITDA adjustments to NCI
6.9
Net loss
(33.7)
Net loss attributable to noncontrolling interests
0.7
Preferred dividends
(43.5)
Net loss attributable to Kennedy-Wilson Holdings, Inc. common
shareholders
$
(76.5)
(1) Includes fees eliminated in consolidation between Consolidated and Co-Investments segments and noncontrolling interests (“NCI”)
items such as net (income) loss to noncontrolling interests and EBITDA adjustments associated with NCI.
In addition to the Company’s two primary business segments the Company’s has among other things,
corporate overhead and unsecured corporate debt and preferred stock that is not allocated to either of
its segments.
The chief operating decision makers who have been identified for the purposes of the reportable
segments listed above are the Chief Executive Officer, President and Chief Financial Officer collectively
the (“CODM”). They are regularly provided operating results of the Company’s reportable segments.
These operating results include key operating metrics which inform the CODM’s decisions regarding
allocation of resources and assessment of the Company’s overall operational performance. The
key operating metric that the CODM utilize to evaluate the segments is earnings before interest,
taxes, depreciation and amortization, which is further adjusted to add back non-cash share based
compensation (“Adjusted EBITDA”). The Company has included a reconciliation of Adjusted EBITDA to
net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders in the tables below.
No single third-party client accounted for 10% or more of the Company’s revenue during any period
presented in these financial statements.
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
multifamily and office assets in the Western United States and office assets in the United Kingdom and
Ireland within this segment.
Co-Investment Portfolio
Co-Investment Portfolio consists of the co-investments in real estate and real estate-related assets,
including loans secured by real estate, that the Company has made through the commingled funds and
joint ventures that it manages. The Company utilizes different platforms in the Co-Investment Portfolio
segment depending on the asset and risk return profiles.
In addition, the Company manages real estate assets and loans for the Company’s equity partner. In
the Company’s capacity as manager it earns fees (including, without limitation, asset management fees,
construction management fees, and/or acquisition and disposition fees) and carried interests.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
125
124
KENNEDY WILSON ANNUAL REPORT 2024
Year Ended December 31, 2022
(Dollars in millions)
Consolidated
Co-Investments
Total
Segment Revenue
Rental
$
434.9
$
—
$
434.9
Hotel
46.9
—
46.9
Investment management fees
—
44.8
44.8
Loans
—
11.7
11.7
Total segment revenue
481.8
56.5
538.3
Income from unconsolidated investments
Principal co-investments
—
199.5
199.5
Carried interests
—
(21.1)
(21.1)
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments(1)
—
66.4
66.4
Income from unconsolidated investments
—
244.8
244.8
Gain on sale of real estate, net
103.7
—
103.7
Segment Expenses
Rental
151.2
—
151.2
Hotel
29.5
—
29.5
Compensation and related
41.5
44.6
86.1
Carried interests compensation
—
(4.3)
(4.3)
General and administrative
14.7
14.8
29.5
Other (income) loss
(20.8)
—
(20.8)
Other segment items(1)
8.6
(0.4)
8.2
Total segment expenses
224.7
54.7
279.4
Segment Adjusted EBITDA
$
360.8
$
246.6
$
607.4
Reconciliation of Segment Adjusted EBITDA to Net Income
attributable to Kennedy-Wilson Holdings, Inc. Common Shareholders
Other revenue
1.7
Compensation and related, corporate
(54.2)
General and administrative, corporate
(7.7)
Depreciation and amortization
(172.9)
Interest expense
(220.8)
Gain on early extinguishment of debt
27.5
Other income
15.3
Provision for income taxes
(36.2)
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments
(66.4)
EBITDA adjustments to NCI
8.2
Net income
101.9
Net income attributable to noncontrolling interests
(8.2)
Preferred dividends
(28.9)
Net income attributable to Kennedy-Wilson Holdings, Inc.
common shareholders
$
64.8
(1) Includes fees eliminated in consolidation between Consolidated and Co-Investments segments and noncontrolling interests (“NCI”)
items such as net (income) loss to noncontrolling interests and EBITDA adjustments associated with NCI.
Year Ended December 31, 2023
(Dollars in millions)
Consolidated
Co-Investments
Total
Segment Revenue
Rental
$
415.3
$
—
$
415.3
Hotel
57.1
—
57.1
Investment management fees
—
61.9
61.9
Loans
—
26.1
26.1
Total segment revenue
472.4
88.0
560.4
Loss from unconsolidated investments
Principal co-investments
—
(188.5)
(188.5)
Carried interests
—
(64.3)
(64.3)
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments
—
102.4
102.4
Loss from unconsolidated investments
—
(150.4)
(150.4)
Gain on sale of real estate, net
127.6
—
127.6
Expenses
Rental
152.6
—
152.6
Hotel
37.9
—
37.9
Compensation and related
42.7
39.0
81.7
Carried interests compensation
—
(15.1)
(15.1)
General and administrative
15.5
12.7
28.2
Other (income) loss
(2.3)
7.0
4.7
Other segment items(1)
29.3
(0.3)
29.0
Total expenses
275.7
43.3
319.0
Segment Adjusted EBITDA
$
324.3
$
(105.7)
$
218.6
Reconciliation of Segment Adjusted EBITDA to Net Income
attributable to Kennedy-Wilson Holdings, Inc. Common Shareholders
Other revenue
2.2
Compensation and related, corporate
(57.7)
General and administrative, corporate
(7.5)
Depreciation and amortization
(157.8)
Interest expense
(259.2)
Loss on early extinguishment of debt
(1.6)
Other loss
(0.3)
Benefit from income taxes
55.3
Company’s share of Interest, Depreciation, and Taxes included in
income from unconsolidated investments
(102.4)
EBITDA adjustments to NCI
29.0
Net loss
(281.4)
Net income attributable to noncontrolling interests
(22.4)
Preferred dividends
(38.0)
Net loss attributable to Kennedy-Wilson Holdings, Inc. common
shareholders
$
(341.8)
(1) Includes fees eliminated in consolidation between Consolidated and Co-Investments segments and noncontrolling interests (“NCI”)
items such as net (income) loss to noncontrolling interests and EBITDA adjustments associated with NCI.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
127
126
KENNEDY WILSON ANNUAL REPORT 2024
Condensed Consolidating Balance Sheet
As of December 31, 2024
(Dollars in millions)
Parent
Kennedy-
Wilson, Inc.
Guarantor
Subsidiaries
Non-guarantor
Subsidiaries
Elimination
Consolidated
Total
Assets
Cash and cash equivalents
$
—
$
36.7
$
103.4
$
77.4
$
—
$
217.5
Accounts receivable, net
—
—
22.2
16.5
—
38.7
Real estate and acquired in place
lease values, net of accumulated
depreciation and amortization, net
—
—
1,394.7
2,895.7
—
4,290.4
Unconsolidated investments
—
14.2
679.6
1,348.6
—
2,042.4
Investments in and advances to
consolidated subsidiaries
1,628.8
3,726.8
2,339.9
—
(7,695.5)
—
Other assets, net
—
44.8
50.9
45.3
—
141.0
Loan purchases and originations, net
—
0.4
201.7
29.0
—
231.1
Total assets
$ 1,628.8
$
3,822.9
$
4,792.4
$
4,412.5
$ (7,695.5)
$
6,961.1
Liabilities
Accounts payable
—
1.0
2.5
7.3
—
10.8
Accrued expenses and other
liabilities
27.6
315.2
96.6
90.0
—
529.4
Mortgage debt
—
—
966.5
1,630.7
—
2,597.2
KW unsecured debt
—
1,877.9
—
—
—
1,877.9
KWE unsecured bonds
—
—
—
309.8
—
309.8
Total liabilities
27.6
2,194.1
1,065.6
2,037.8
—
5,325.1
Equity
Kennedy-Wilson Holdings, Inc.
shareholders’ equity
1,601.2
1,628.8
3,726.8
2,339.9
(7,695.5)
1,601.2
Noncontrolling interests
—
—
—
34.8
—
34.8
Total equity
1,601.2
1,628.8
3,726.8
2,374.7
(7,695.5)
1,636.0
Total liabilities and equity
$ 1,628.8
$
3,822.9
$
4,792.4
$
4,412.5
$ (7,695.5)
$
6,961.1
Condensed Consolidating Balance Sheet
As of December 31, 2023
(Dollars in millions)
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, net
—
0.9
22.0
34.4
—
57.3
Real estate and acquired in place
lease values, net of accumulated
depreciation and amortization, net
—
—
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)
—
Other assets, net
—
59.4
51.6
76.5
—
187.5
Loan purchases and originations, net
—
0.7
214.8
31.7
—
247.2
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 expenses 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
The table below reconciles segment revenue to total revenue for the years ended December 31, 2024,
2023 and 2022:
Year Ended December 31,
(Dollars in millions)
2024
2023
2022
Segment revenue
$
530.0
$
560.4
$
538.3
Other revenue
1.4
2.2
1.7
Total consolidated revenue
$
531.4
$
562.6
$
540.0
December 31,
(Dollars in millions)
2024
2023
Assets
Consolidated
$
4,591.6
$
5,196.3
Co-investment
2,273.5
2,316.3
Corporate
96.0
199.5
Total assets
$
6,961.1
$
7,712.1
December 31,
(Dollars in millions)
2024
2023
2022
Expenditures for long lived assets
Investments
$
(148.2)
$
(217.2)
$
(569.1)
Geographic Information
The revenue shown in the table below is allocated based upon the region in which services are
performed.
Year Ended December 31,
(Dollars in millions)
2024
2023
2022
United States
$
368.0
$
334.1
$
317.5
Europe
163.4
228.5
222.5
Total revenue
$
531.4
$
562.6
$
540.0
NOTE 18—GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS
The following consolidating financial information and condensed consolidating financial information
includes:
(1) Condensed consolidating balance sheets as of December 31, 2024 and 2023, respectively;
consolidating statements of income for the years ended December 31, 2024, 2023 and 2022,
respectively; of (a) Kennedy-Wilson Holdings, Inc. on an unconsolidated basis as the parent (and
guarantor), (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 entries necessary to consolidate Kennedy-Wilson Holdings, Inc., as the parent guarantor,
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 December 31, 2024 or 2023 and for the years ended December 31, 2024,
2023 or 2022.
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
129
128
KENNEDY WILSON ANNUAL REPORT 2024
Condensed Consolidating Statement of Operations
for the Year Ended December 31, 2022
(Dollars in millions)
Parent
Kennedy-
Wilson, Inc.
Guarantor
Subsidiaries(1)
Non-
guarantor
Subsidiaries
Elimination
Consolidated
Total
Total revenue
$
—
$
0.2
$
225.1
$
314.7
$
—
$
540.0
Income from
unconsolidated investments
—
1.1
12.0
165.3
178.4
Gain on sale of real estate, net
—
—
68.1
35.6
—
103.7
Total expenses
29.0
92.7
172.5
232.6
—
526.8
Income from consolidated
subsidiaries
130.8
314.4
230.7
—
(675.9)
—
Interest expense
—
(92.6)
(41.8)
(86.4)
—
(220.8)
Loss (gain) on early extinguishment
of debt
—
—
(1.6)
29.1
—
27.5
Other income (loss)
0.1
15.6
(1.3)
21.7
—
36.1
Income before provision for
income taxes
101.9
146.0
318.7
247.4
(675.9)
138.1
Provision for income taxes
—
(15.2)
(4.3)
(16.7)
—
(36.2)
Net income
101.9
130.8
314.4
230.7
(675.9)
101.9
Net income attributable to the
noncontrolling interests
—
—
—
(8.2)
—
(8.2)
Preferred dividends
(28.9)
—
—
—
—
(28.9)
Net income attributable to
Kennedy-Wilson Holdings, Inc.
common shareholders
$
73.0
$
130.8
$
314.4
$
222.5
$
(675.9)
$
64.8
NOTE 19—SUBSEQUENT EVENTS
Subsequent to December 31, 2024, the Company has drawn an additional $95.0 million on its revolving
line of credit. The Company has $356.0 million still available to draw on its revolving line of credit.
Condensed Consolidating Statement of Operations
for the Year Ended December 31, 2024
(Dollars in millions)
Parent
Kennedy-
Wilson, Inc.
Guarantor
Subsidiaries
Non-
guarantor
Subsidiaries
Elimination
Consolidated
Total
Total revenue
$
—
$
0.1
$
270.6
$
260.7
$
—
$
531.4
Total income (loss) from
unconsolidated investments
—
0.7
8.3
(2.5)
—
6.5
Gain on sale of real estate, net
—
0.8
86.0
73.3
—
160.1
Total expenses
23.6
84.7
163.8
190.8
—
462.9
(Loss) income from consolidated
subsidiaries
(10.6)
152.1
13.1
—
(154.6)
—
Interest expense
—
(100.6)
(45.6)
(114.9)
—
(261.1)
Loss on early extinguishment of debt
—
—
(0.4)
(1.3)
—
(1.7)
Other income (loss)
0.5
13.7
(13.1)
3.1
—
4.2
(Loss) income before provision
for income taxes
(33.7)
(17.9)
155.1
27.6
(154.6)
(23.5)
(Provision for) benefit from
income taxes
—
7.3
(3.0)
(14.5)
—
(10.2)
Net (loss) income
(33.7)
(10.6)
152.1
13.1
(154.6)
(33.7)
Net loss attributable to the
noncontrolling interests
—
—
—
0.7
—
0.7
Preferred dividends
(43.5)
—
—
—
—
(43.5)
Net (loss) income attributable
to Kennedy-Wilson Holdings,
Inc. common shareholders
$
(77.2)
$
(10.6)
$
152.1
$
13.8
$
(154.6)
$
(76.5)
Condensed Consolidating Statement of Operations
for the Year Ended December 31, 2023
(Dollars in millions)
Parent
Kennedy-
Wilson, Inc.
Guarantor
Subsidiaries
Non-
guarantor
Subsidiaries
Elimination
Consolidated
Total
Total revenues
$
—
$
0.2
$
239.6
$
322.8
$
—
$
562.6
Loss from
unconsolidated investments
—
—
(110.5)
(142.3)
—
(252.8)
Gain on sale of real estate, net
—
—
98.8
28.8
—
127.6
Total expenses
35.1
82.1
158.5
232.6
—
508.3
Loss from consolidated
subsidiaries
(246.7)
(131.5)
(147.5)
—
525.7
—
Interest expense
—
(97.2)
(45.0)
(117.0)
(259.2)
(Loss) gain on early
extinguishment of debt
—
—
(2.0)
0.4
—
(1.6)
Other income (loss)
0.4
(0.9)
(6.4)
1.9
(5.0)
Loss before provision for
income taxes
(281.4)
(311.5)
(131.5)
(138.0)
525.7
(336.7)
Benefit from (provision for)
income taxes
—
64.8
—
(9.5)
—
55.3
Net loss
(281.4)
(246.7)
(131.5)
(147.5)
525.7
(281.4)
Net income attributable to the
noncontrolling interests
—
—
—
(22.4)
—
(22.4)
Preferred dividends
(38.0)
—
—
—
—
(38.0)
Net loss attributable to
Kennedy-Wilson Holdings, Inc.
common shareholders
$ (319.4)
$
(246.7)
$
(131.5)
$
(169.9)
$
525.7
$
(341.8)
Kennedy-Wilson Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2024, 2023 and 2022 (continued)
KENNEDY WILSON ANNUAL REPORT 2024
131
130
KENNEDY WILSON ANNUAL REPORT 2024
Stock Price Information
Our common stock trades on the NYSE under the symbol “KW.”
Holders
As of February 20, 2025, we had approximately 65 holders of record of our common stock.
Dividends
We declared and paid quarterly dividends of $0.12 for the last three quarters of 2024 and $0.24 per
share for the first quarter of 2024 and each quarter of 2023.
Recent Sales of Unregistered Securities
None.
Equity Compensation Plan Information
See Item 12—“Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.”
Purchases of Equity Securities by the Company
Months
Total
Number of
Shares Purchased
Average Price
Paid per Share
Total
Number of
Shares Purchased as
Part of Publicly
Announced Plan(1)
Maximum
Amount that
May Yet be
Purchased Under
the Plan(1)
October 1–October 31, 2024
—
$
—
26,528,959
$
109,739,985
November 1–November 30, 2024
—
—
26,528,959
109,739,985
December 1–December 31, 2024
2,105
10.66
26,531,064
109,717,542
Total
2,105
$
—
26,531,064
$
109,717,542
(1) On March 20, 2018, we announced that our board of directors authorized us to repurchase up to $250 million of our common
shares, from time to time, subject to market conditions. On November 4, 2020, we announced that our board of directors authorized
us to repurchase an additional $250 million of our common shares, from time to time, subject to market conditions.
During the year ended December 31, 2024, the Company repurchased and retired a total of 1.6 million
shares of its common stock at a weighted average price of $8.50. During the year ended December 31,
2023, the Company repurchased and retired a total of 0.7 million shares of its common stock at a
weighted average price of $11.15.
In addition to the repurchases of the Company’s common stock made above, the Company also
withheld shares with respect to the vesting of restricted stock that the Company made to its
employees. Shares that vested during the year ended December 31, 2024 and 2023 were net-share
settled such that the Company withheld shares with value equivalent to the employees’ minimum
statutory obligation for the applicable income and other employment taxes and remitted the cash to the
appropriate taxing authorities. During the year ended December 31, 2024 and 2023, total payments
for the employees’ tax obligations to the taxing authorities were $1.6 million (131,116 shares withheld)
and $13.4 million (781,303 shares withheld), respectively.
Real Estate Assets Under Management (AUM)
AUM generally refers to the properties and other assets with respect to which we provide (or
participate in) oversight, investment management services and other advice, and which generally
consist of real estate properties or loans, and investments in joint ventures. Our AUM is principally
intended to reflect the extent of our presence in the real estate market, not the basis for determining
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
The graph below compares the cumulative total return of our common stock from December 31, 2019
through December 31, 2024, with the comparable cumulative return of companies comprising the
S&P 500 Index and the MSCI World Real Estate GICS Level 1 Index. The graph plots the growth in
value of an initial investment of $100 in each of our common stock, the S&P 500 Index, and the MSCI
World Real Estate GICS Level 1 Index for the five-year period ended December 31, 2024, and assumes
reinvestment of all dividends, if any, paid on the securities. The stock price performance shown on the
graph is not necessarily indicative of future price performance.
KW
S&P 500
MSCI World
Real Estate
Index GICS
Level 1
1/2/2019
4/2/2019
7/2/2019
10/2/2019
1/2/2020
4/2/2020
7/2/2020
10/2/2020
1/2/2021
4/2/2021
7/2/2021
10/2/2021
1/2/2022
4/2/2022
7/2/2022
10/2/2022
1/2/2023
4/2/2023
7/2/2023
10/2/2023
1/2/2024
4/2/2024
7/2/2024
10/2/2024
$200
$250
$150
$100
$50
$-
Kennedy Wilson uses the MSCI World Real Estate GICS Level 1 Index, which includes international
real estate companies as a comparable benchmark. The information under this caption, “Performance
Graph,” is deemed not to be incorporated by reference into any filings under the Securities Act of 1933,
as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that such filing
specifically states otherwise.
Performance Graph
KENNEDY WILSON ANNUAL REPORT 2024
133
132
KENNEDY WILSON ANNUAL REPORT 2024
Statements made by us in this report and in other reports and statements released by us that are not
historical facts constitute “forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are necessarily
estimates reflecting the judgment of our senior management based on our current estimates,
expectations, forecasts and projections and include comments that express our current opinions about
trends and factors that may impact future results. Disclosures that use words such as “believe,” “may,”
“anticipate,” “estimate,” “intend,” “could,” “plan,” “expect,” “project” or the negative of these, as well as
similar expressions, are intended to identify forward-looking statements.
Forward-looking statements are not guarantees of future performance, rely on a number of
assumptions concerning future events, many of which are outside of our control, and involve known
and unknown risks and uncertainties that could cause our actual results, performance or achievement,
or industry results, to differ materially from any future results, performance or achievements, expressed
or implied by such forward-looking statements. Although we believe that our plans, intentions,
expectations, strategies and prospects as reflected in or suggested by those forward-looking statements
are reasonable, we do not guarantee that the transactions and events described will happen as
described (or that they will happen at all). In addition, this report contains information and statistics
regarding, among other things, the industry, markets, submarkets and sectors in which we operate. We
obtained this information and these statistics from various third-party sources and our own internal
estimates. We believe that these sources and estimates are reliable but have not independently verified
them and cannot guarantee their accuracy or completeness.
Any such forward-looking statements, whether made in this report or elsewhere, should be considered
in the context of the various disclosures made by us about our businesses including, without limitation,
the risk factors discussed in Part I, Item IA of this Report. Except as required under the federal securities
laws and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), we do
not have any intention or obligation to update publicly any forward-looking statements, whether as a
result of new information, future events, changes in assumptions, or otherwise. Please refer to “Non-
GAAP Measures and Certain Definitions” in Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations for definitions of certain terms used throughout this report.
FORWARD-LOOKING STATEMENTS
our management fees. Our AUM consists of the total estimated fair value of the real estate properties
and other real estate related assets either owned by third parties, wholly-owned by us or held by joint
ventures and other entities in which our sponsored funds or investment vehicles and client accounts
have invested. Committed (but unfunded) capital from investors in our sponsored funds is not included
in our AUM. The estimated value of development properties is included at estimated completion cost.
The table below details the changes in the Company’s AUM for the twelve months ended December 31,
2024:
(in millions)
December 31, 2023
Increases
Decreases
December 31, 2024
AUM
$
24,542.9
$
6,400.7
$
2,990.7
$
27,952.9
AUM increased 14% to approximately $28.0 billion as of December 31, 2024. The increase is due to
the inclusion of future loan commitments, asset acquisitions in our comingled funds and loan fundings
in our debt platform. These increases were offset by consolidated asset sales and fair value losses in our
Co-Investment portfolio.
Please also see “Fair Value Investments” in Item 1. Business for a discussion of our fair value
investments and accounting methodology and any limitations with respect to the same.
Foreign currency and currency derivative instruments
Please refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operation for a discussion regarding foreign currency and currency derivative instruments.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities (continued)
KENNEDY WILSON ANNUAL REPORT 2024
135
134
KENNEDY WILSON ANNUAL REPORT 2024
(Dollars in millions)
Initial Cost
Costs Capitalized
Subsequent to
Acquisition
Gross Balance at December 31,
2024(1)
Description
Region
Encumbrances
Land
Building &
Improvements
Improvements
Land
Building &
Improvements
Total(2)
Accumulated
Depreciation
Depreciable
Life in Years
Date of
Construction
Date
Acquired(3)
Office
Pacific
Northwest
18.0
21.4
74.2
2.4
21.4
76.6
98.0
(14.7)
39 years
1999/2001
2017
Office
Ireland
15.3
4.9
18.5
7.8
4.2
24.0
28.2
(3.9)
39 years
1841
2017
Office
Ireland
51.4
11.0
—
—
9.7
51.4
61.1
(3.6)
39 years
1840/2000
2017
Office
Northern
California
60.0
23.5
57.3
11.6
23.5
68.8
92.3
(9.9)
39 years
2000
2019
Office
United
Kingdom
108.6
71.2
177.9
—
64.1
160.4
224.5
(14.0)
39 years
2019
2021
Office
United
Kingdom
39.7
25.3
54.8
4.6
23.4
55.3
78.7
(3.0)
39 years
2001/2007
2021
Office
United
Kingdom
49.8
25.5
74.1
6.6
23.8
75.4
99.2
(5.3)
39 years
2004
2022
Office
Ireland
50.9
0.5
3.4
48.8
0.5
57.8
58.3
(3.5)
39 years
Various
2015
Multifamily
366-unit asset
Mountain
West
77.8
9.1
36.3
16.1
9.1
52.4
61.5
(24.3)
39 years
2000
2012
1,008-unit asset
Northern
California
175.0
62.3
152.5
34.3
62.3
186.7
249.0
(63.7)
39 years
1988
2015
204-unit asset
Mountain
West
32.5
2.0
17.6
5.1
1.9
22.7
24.6
(7.5)
39 years
1999
2016
168-unit asset
Mountain
West
10.9
1.8
13.1
5.0
1.8
18.0
19.8
(6.2)
39 years
1992
2016
386-unit asset
Southern
California
66.0
—
81.4
10.7
—
92.1
92.1
(24.8)
39 years
2002
2016
310-unit asset
Southern
California
76.7
0.6
—
0.1
—
118.8
118.8
(1.4)
39 years
2024
2018
300-unit asset
Mountain
West
39.0
4.8
29.2
7.3
4.8
36.6
41.4
(9.6)
39 years
1995
2017
210-unit asset
Pacific
Northwest
44.5
11.0
46.7
2.4
11.0
49.1
60.1
(9.9)
39 years
2007
2017
172-unit asset
Mountain
West
58.0
0.2
—
0.2
3.4
72.8
76.2
(0.9)
39 years
2024
2018
Reconciliation to Adjusted EBITDA (continued)
Kennedy-Wilson Holdings, Inc.
Schedule III—Real Estate and Accumulated Depreciation
December 31, 2024
(Dollars in millions)
Initial Cost
Costs Capitalized
Subsequent to
Acquisition
Gross Balance at December 31,
2024(1)
Description
Region
Encumbrances
Land
Building &
Improvements
Improvements
Land
Building &
Improvements
Total(2)
Accumulated
Depreciation
Depreciable
Life in Years
Date of
Construction
Date
Acquired(3)
Commercial
Office
Southern
California $
35.0 $
11.2 $
18.5 $
34.8 $ 11.5 $
54.3
$65.8 $
(13.1)
39 years
1955/1981/
1982
2013
Commercial
portfolio
United
Kingdom
—
16.6
3.9
5.8
1.3
16.1
17.4
(4.3)
39 years
Various
2014
Commercial
portfolio
United
Kingdom
—
34.3
208.2
10.3
19.5
158.0
177.5
(49.2)
39 years
Various
2014
Office
Ireland
51.6
8.2
102.6
—
6.2
78.0
84.2
(20.5)
39 years
2003
2014
Retail
Ireland
46.7
52.8
49.7
21.0
39.8
57.0
96.8
(12.6)
39 years
1966/2005
2014
Office
Ireland
51.0
20.4
73.8
5.6
15.5
61.6
77.1
(17.8)
39 years
1980
2014
Office
United
Kingdom
175.6
85.3
232.0
27.6
76.7
211.3
288.0
(73.0)
39 years
2003
2014
Retail
United
Kingdom
—
6.2
109.5
8.2
4.7
90.9
95.6
(24.4)
39 years
2010
2014
Office
Southern
California
33.1
31.8
60.6
27.7
31.8
88.3
120.1
(26.3)
39 years
1982
2015
Office
Southern
California
28.3
11.6
36.5
5.8
11.6
42.2
53.8
(12.5)
39 years
1968
2015
Office
Southern
California
35.0
20.7
47.9
26.4
20.7
54.2
74.9
(15.4)
39 years
1982
2015
Commercial
portfolio
United
Kingdom
—
49.4
101.4
3.2
20.5
37.5
58.0
(9.4)
39 years
Various
2015
Office portfolio
United
Kingdom
—
19.0
41.2
18.9
20.7
43.6
64.3
(8.0)
39 years
Various
2015
Office portfolio
Italy
—
24.8
70.1
1.1
28.1
72.7
100.8
(18.0)
39 years
Various
2015
Office portfolio
United
Kingdom
60.7
32.1
70.4
11.0
27.7
71.8
99.5
(16.1)
39 years
Various
2016
Office
Ireland
36.2
4.2
64.0
2.7
3.8
60.2
64.0
(13.2)
39 years
2009
2016
Reconciliation to Adjusted EBITDA
KENNEDY WILSON ANNUAL REPORT 2024
137
136
KENNEDY WILSON ANNUAL REPORT 2024
(Dollars in millions)
Initial Cost
Costs Capitalized
Subsequent to
Acquisition
Gross Balance at December 31,
2024(1)
Description
Region
Encumbrances
Land
Building &
Improvements
Improvements
Land
Building &
Improvements
Total(2)
Accumulated
Depreciation
Depreciable
Life in Years
Date of
Construction
Date
Acquired(3)
160-unit asset
Mountain
West
13.8
4.5
18.0
0.4
4.5
18.7
23.2
(1.8)
39 years
1990/1998
2021
332-unit asset
Mountain
West
76.2
26.7
106.9
4.2
26.7
111.0
137.7
(10.2)
39 years
2002
2021
383-unit asset
Pacific
Northwest
119.5
38.3
153.0
10.1
38.3
163.1
201.4
(15.1)
39 years
2002/2008
2021
164-unit asset
Pacific
Northwest
43.0
14.8
59.1
0.7
14.8
59.8
74.6
(5.0)
39 years
2020
2021
528-unit asset
Mountain
West
101.1
31.1
124.4
8.5
31.1
132.9
164.0
(11.8)
39 years
1989/1990
2021
350-unit asset
Mountain
West
64.9
33.2
132.6
6.5
33.2
139.2
172.4
(10.7)
39 years
1985
2022
404-unit asset
Mountain
West
61.6
29.6
118.3
3.2
29.6
121.5
151.1
(8.9)
39 years
1996
2022
356-unit asset
Mountain
West
40.9
20.8
83.1
5.5
20.8
88.7
109.5
(6.9)
39 years
1995/2008
2022
260-unit asset
Mountain
West
34.4
15.7
62.6
2.2
15.6
64.8
80.4
(4.3)
39 years
2013
2022
Development
Office
Ireland
—
1.2
0.9
0.9
1.1
0.9
2.0
—
N/A
N/A
2020
Multifamily
Southern
California
—
6.0
—
5.1
6.8
5.1
11.9
—
N/A
N/A
2015
Multifamily
Ireland
—
—
9.6
—
—
14.0
14.0
(0.7)
39 years
1980
2022
Multifamily
Southern
California
—
0.4
—
—
0.4
—
0.4
—
N/A
N/A
2024
3 Lots
Hawaii
—
16.5
—
—
16.5
—
16.5
—
N/A
N/A
2020
Land
Hawaii
—
0.7
—
—
0.7
—
0.7
—
N/A
1912
2010
Grand Total
$
2,611.7 $1,073.2 $
3,447.1 $
466.9 $ 979.6 $
4,015.6 $4,995.2 $
(716.1)
(1) The tax basis of all the properties in aggregate totaled $4,047.3 million.
(2) Excludes acquired in place lease values.
(3) For assets that were consolidated the date acquired represents when the asset was presented as real estate not when initially acquired by Kennedy Wilson.
Reconciliation to Adjusted EBITDA (continued)
(Dollars in millions)
Initial Cost
Costs Capitalized
Subsequent to
Acquisition
Gross Balance at December 31,
2024(1)
Description
Region
Encumbrances
Land
Building &
Improvements
Improvements
Land
Building &
Improvements
Total(2)
Accumulated
Depreciation
Depreciable
Life in Years
Date of
Construction
Date
Acquired(3)
343-unit asset
Pacific
Northwest
84.0
26.8
107.4
2.1
26.8
109.5
136.3
(20.5)
39 years
2016
2017
179-unit asset
Pacific
Northwest
25.5
11.9
47.4
2.6
11.9
50.0
61.9
(9.8)
39 years
2013
2017
88-unit asset
Mountain
West
8.6
2.6
10.4
2.2
2.6
12.7
15.3
(3.3)
39 years
1988
2018
492-unit asset
Mountain
West
59.1
15.8
63.2
9.8
15.8
73.0
88.8
(17.2)
39 years
1985
2018
66-unit asset
Mountain
West
8.0
0.8
—
0.2
0.7
9.3
10.0
(1.1)
39 years
2021
2018
89-unit asset
Mountain
West
17.7
2.1
—
0.1
2.0
21.5
23.5
(1.3)
39 years
2024
2018
188-unit asset
Mountain
West
13.3
4.9
19.7
9.8
4.9
29.4
34.3
(8.1)
39 years
1985
2018
120-unit asset
Mountain
West
32.3
5.7
—
0.9
1.9
38.5
40.4
(4.4)
39 years
2021
2018
277-unit asset
Mountain
West
62.2
4.0
—
6.8
2.7
55.3
58.0
(10.2)
39 years
2021
2019
10-unit asset
Mountain
West
—
—
—
—
—
2.3
2.3
(0.2)
39 years
2021
2019
260-unit asset
Mountain
West
51.4
13.4
53.6
3.9
13.4
57.6
71.0
(6.9)
39 years
2014
2020
280-unit asset
Mountain
West
39.6
13.3
53.2
0.4
13.3
53.6
66.9
(5.1)
39 years
2019
2021
30-unit asset
Mountain
West
—
—
—
—
—
13.6
13.6
(0.2)
39 years
2024
2021
344-unit asset
Mountain
West
39.2
13.0
52.1
6.2
13.0
58.3
71.3
(6.5)
39 years
1985
2021
240-unit asset
Mountain
West
43.0
4.6
—
—
14.4
48.4
62.8
(1.5)
39 years
2024
2021
240-unit asset
Mountain
West
45.1
11.1
44.3
1.5
11.1
46.3
57.4
(4.4)
39 years
2020
2021
138
KENNEDY WILSON ANNUAL REPORT 2024
Changes in real estate for the years ended December 31, 2024, 2023 and 2022 were as follows:
For the year ended December 31,
(Dollars in millions)
2024
2023
2022
Balance at the beginning of period
$
5,518.7
$
5,775.3
$
5,567.3
Additions during the period:
Other acquisitions
16.6
—
167.6
Improvements
119.7
218.6
604.2
Foreign currency
(73.8)
90.9
(226.0)
Deductions during the period:
Cost of real estate sold
(586.0)
(566.1)
(337.8)
Balance at close of period
$
4,995.2
$
5,518.7
$
5,775.3
Changes in accumulated depreciation for the years ended December 31, 2024, 2023 and 2022 were as
follows:
For the year ended December 31,
(Dollars in millions)
2024
2023
2022
Balance at the beginning of period
$
702.1
$
619.6
$
564.0
Additions during the period:
Depreciation expense
132.5
136.5
133.8
Deductions during the period:
Dispositions
(106.0)
(66.5)
(50.8)
Foreign currency
(12.5)
12.5
(27.4)
Balance at close of period
$
716.1
$
702.1
$
619.6
See accompanying report of independent registered public accounting firm.
Reconciliation to Adjusted EBITDA (continued)
William J. McMorrow
Chairman and Chief Executive Officer
Kennedy Wilson
Todd Boehly
Co-Founder, Chairman,
Chief Executive Officer and
Controlling Member
Eldridge Industries, LLC
Richard Boucher
Former Group CEO
Bank of Ireland
Trevor Bowen
Former Director
Principle Management Limited
Wade Burton
President and Chief Investment
Officer of Hamblin Watsa Investment
Counsel Ltd.
Michael Eisner
Managing Partner
Eisner, LLP
Cathy Hendrickson
Retired President and
Chief Executive Officer
Bay Cities National Bank
(Now Opus Bank)
Jeff Meyers
CEO
Zonda
David A. Minella
Managing Member
Minella Capital Management LLC
Nadine Watt
CEO
Watt Capital Partners
Sanaz Zaimi
Former Head of Global FICC Sales
Bank of America Merrill Lynch
Stanley Zax
Retired Chairman
Zenith National Insurance
Corporation
Corporate Information
Certain of the matters discussed herein are discussed more fully in our filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K. We filed our Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC on February 28,
2025, which, in the section titled “Risk Factors,” contains a detailed discussion of risks and uncertainties that could cause actual results and
events to differ materially from any forward-looking statements contained herein.
Annual Report Design by Big Pivot Partners / www.bigpivot.net
Corporate Headquarters
151 South El Camino Drive
Beverly Hills, CA 90212
+1 (310) 887-6400
Annual Meeting
Beverly Wilshire
9500 Wilshire Blvd.
Beverly Hills, CA 90212
9 a.m., Thursday, June 5, 2025
Stock Listing
New York Stock Exchange
Symbol “KW”
Transfer Agent
Continental Stock Transfer
1 State Street - SC-1
New York, NY 10004
+1 (212) 509-4000
Independent Auditors
KPMG LLP
Legal Counsel
Latham & Watkins LLP
Investor Information
A copy of our Annual Report on
Form 10-K, as filed with the SEC,
will be furnished to shareholders
and interested investors free of
charge upon written request to us
at 151 South El Camino Drive,
Beverly Hills, CA 90212, Attention:
Investor Relations
For more information
For more information on Kennedy
Wilson, please visit our website at
www.kennedywilson.com
Board of Directors
Executive Officers
William J. McMorrow
Chairman and Chief Executive Officer
Matt Windisch
President
Justin Enbody
Senior Executive Vice President,
Chief Financial Officer
In Ku Lee
Executive Vice President and
General Counsel
Regina Finnegan
Executive Vice President,
Global Director of Risk Management
& Human Resources
Mike Pegler
President, Europe
151 South El Camino Drive Beverly Hills, CA 90212
Tel: +1 (310) 887-6400
www.kennedywilson.com
Our Locations
U.S.
Bellevue
3055 112th Ave. NE, Suite 125
Bellevue, WA 98004
Beverly Hills
(Global Corporate Headquarters)
151. S. El Camino Drive
Beverly Hills, CA 90212
Boise
365 N. Whitewater Park Blvd.
Boise, ID 83702
Denver
8101 E. Prentice Ave., Suite 275
Greenwood Village, CO 800111
Farmington
20 Waterside Drive
Suite 201
Farmington, CT 06032
New York City
420 Lexington Avenue, Suite 2640
New York, NY 10170
Portland
2270 NW Savier St.
Portland, OR 97210
Salt Lake City
1496 Spring Lane
Holladay, UT 84117
San Francisco
400 California Street
San Francisco, CA 94104
Scotsdale
6900 E. Camelback Road
Suite 880
Scotsdale, AZ 85251
Washington, D.C.
7700 Wisconsin Avenue, Suite 330
Bethesda, MD 20814
Europe
Dublin
94 St Stephen’s Green
Dublin 2
Ireland
London
50 Grosvenor Hill
London, W1K 3QT
United Kingdom
Bellevue
Boise
Portland
Denver
Farmington
Salt Lake City
Scotsdale
San Francisco
Beverly Hills
Corporate
Headquarters
New York City
Washington D.C.
Dublin
London