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.



(Dollars in millions)	Multifamily		Commercial		Hotel		Funds		Residential and Other		Total
Western U.S.	$	230.5	$	78.1	$	72.8	$	139.6	$	246.8	$	767.8
Ireland	378.7		139.4		—		—		—		518.1
United Kingdom	—		48.7		—		—		—		48.7
Total	$	609.2	$	266.2	$	72.8	$	139.6	$	246.8	$	1,334.6



(Dollars in millions)	Multifamily		Commercial		Hotel		Funds		Residential and Other		Total
Western U.S.	$	184.1	$	47.0	$	70.9	$	102.5	$	193.8	$	598.3
Ireland	216.5		35.2				—		—		251.7
United Kingdom	—		9.9				—		—		9.9
Total	$	400.6	$	92.1	$	70.9	$	102.5	$	193.8	$	859.9

During the year ended December 31, 2019, the change in unconsolidated investments primarily relates to $266.0 million of cash contributions to unconsolidated investments, $218.0 million of non-cash contributions to unconsolidated investments, $189.1 million of distributions from unconsolidated investments, $179.7 million of income from unconsolidated investments with the remainder relating to other items which primarily related to foreign exchange movements as described in more detail below.

As of December 31, 2019 and December 31, 2018, $1,107.4 million and $662.2 million of unconsolidated investments were accounted for at fair value. See Note 5 for more detail.

During the year ended December 31, 2019, Kennedy Wilson contributed $266.0 million to joint ventures, primarily for separate account arrangements for three office properties, four multifamily properties and three note investments in the Western United States, one office property in the United Kingdom, and contributions to Kennedy Wilson Real Estate Fund VI, LP ("Fund VI") and existing development projects in Ireland and Hawaii.

In addition to the cash contributions during the year ended December 31, 2019, the deconsolidation and contribution to the AXA Joint Venture of the State Street office building, Capital Dock office buildings, Capital Dock residential tower, Vantage residential towers and Alto Vetro residential building in Dublin, Ireland, comprised the $218.0 million of non-cash contributions.



	Multifamily				Commercial				Funds				Residential and Other				Total
(Dollars in millions)	Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing
Western U.S.	$	50.6	$	91.5	$	3.4	$	1.0	$	11.2	$	13.6	$	1.4	$	5.1	$	66.6	$	111.2
Ireland	6.4		—		1.1		3.8		—		—		—		—		7.5		3.8
Total	$	57.0	$	91.5	$	4.5	$	4.8	$	11.2	$	13.6	$	1.4	$	5.1	$	74.1	$	115.0

Investing distributions resulted primarily from the sale of three multifamily properties and residential lots in the Western United States. Operating distributions resulted operating cash flow generated by the joint venture investments.



	Year Ended December 31,
(Dollars in millions)	2019			2018		2017
Income from unconsolidated investments - operating performance	$	35.5		$	18.8	$	16.4
Income from unconsolidated investments - realized gains	53.5			22.1		14.0
Income from unconsolidated investments - fair value	64.7			10.4		38.6
Income from unconsolidated investments - performance fees	36.3			27.4		8.8
Income from unconsolidated investments - impairment	(10.3		)	—		—
	$	179.7		$	78.7	$	77.8

Operating performance is related to underlying performance from unconsolidated investments. Realized gains are related to asset sales primarily from the sale of three multifamily properties in the Western United States. Fair value gains and performance fees are primarily related to resyndications under the Company's VHH partnership, cap rate compression, asset sales, and improved property performance by the Company's FV Option investments and investments held within the Funds managed by the Company. The fair value gains were partially offset by foreign exchange fair value losses on multifamily and development joint ventures in Ireland. Additionally, during the year ended December 31, 2019, the Company recorded an other than temporary impairment loss on a residential project in the Western United States owned by an unconsolidated investment.

As of December 31, 2019 and 2018, the carrying value of the Company's investment in VHH was $142.8 million and $101.5 million, respectively. Fair value gains in the current period primarily relate to improved property performance and cap rate compression as a result of declines in borrowing rates and conversions. Prior period fair value gains are due to resyndications in which VHH dissolves an existing partnership and recapitalizes into a new partnership with tax exempt bonds and tax credits that are sold to a new tax credit partner and, in many cases, yields cash back to VHH. Upon resyndication, VHH retains a GP

interest in the partnership and receives various future streams of cash flows including: development fees, asset management fees, other GP management fees and distributions from operations.

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 consolidations guidance in ASC Topic 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.

Refer to the description of the AXA Joint Venture in Note 3 for a discussion of the change in control transactions that occurred during the years ended December 31, 2019 and 2018. As of December 31, 2019 and 2018, the carrying value of the Company's investment in AXA Joint Venture was $479.4 million and $209.2 million, respectively.