Segment Information

3 Months Ended

Mar. 31, 2020

Segment Presentation

The Company had historically presented Investments and Services as its two main operating segments. As the Company has expanded on its separate account and commingled fund platforms, it determined that the segment presentation detailed below is more informative. Unconsolidated investments that had historically been part of the Investments segment and are now included in the Co-Investment Portfolio segment. The Investment Management and Property Services businesses were historically included in the Services segment. The Investment Management business is now presented in the Co-Investment Portfolio segment. This combines the equity the Company invests as well as the fees it earns from its partners on co-investments into one segment to provide a better understanding of the total performance of these investments. As the Company has grown its Consolidated Portfolio and Co-Investment Portfolio the Property Services group has had a less significant impact on the Company's results and thus Property Services is now presented in Corporate.

Segments

The Company's operations are defined by two business segments: its Consolidated investment portfolio (the "Consolidated Portfolio") and its Co-Investment Portfolio


•	Consolidated Portfolio consists of the investments that the Company has made in real estate and real estate-related assets and consolidates on its balance sheet. The Company typically wholly-owns the assets in its Consolidated Portfolio.

•

Co-Investment Portfolio consists of (i) the co-investments that the Company has made in real estate and real estate-related assets through the commingled funds and joint ventures that it manages; and (ii) the fees (including, without limitation, asset management fees, construction management fees and performance fees) that it earns on its fee bearing capital. The Company typically owns a 5-50% ownership interest in the assets in its Co-investment Portfolio.

In addition to the Company's two primary business segments the Company's Corporate segment includes, among other things, corporate overhead and the Property Services group.

Consolidated Portfolio

Consolidated Portfolio is a permanent capital vehicle focused on maximizing property cash flow. These assets are primarily wholly-owned and tend to have longer hold periods and the Company targets investments with accretive asset management opportunities. The Company typically focuses on office and multifamily assets in the Western United States and commercial assets in the United Kingdom and Ireland within this segment.

Co-Investment Portfolio

Co-investment Portfolio segment consists of investments the Company makes with partners in which it receives (i) fees for managing its partners equity and (ii) rental income from its co-investments in these assets. The Company utilizes different platforms in the Co-investment Portfolio segment depending on the asset and risk return profiles.

KW Europe Fund II

During the three months ended March 31, 2020 we deconsolidated our investment in KW Europe Fund II as the Company no longer controls it. Amounts for KW Europe Fund II are in the Consolidated Portfolio segment in the prior period and in the Co-Investment Portfolio segment for the current period.

The following tables summarize income activity by segment and corporate for the three months ended March 31, 2020 and 2019 and balance sheet data as of March 31, 2020 and December 31, 2019:



	Three Months Ended March 31, 2020

(Dollars in millions)	Consolidated Portfolio			Co-Investment Portfolio		Corporate			Total
Revenue
Rental	$	107.7		$	—	$	—		$	107.7
Hotel	7.2			—		—			7.2
Investment management and property services fees	—			4.5		3.9			8.4
Total revenue	114.9			4.5		3.9			123.3
Expenses
Rental	36.7			—		—			36.7
Hotel	6.0			—		—			6.0
Commission and marketing	—			—		0.7			0.7
Compensation and related	11.9			4.6		14.9			31.4
General and administrative	5.6			1.7		2.2			9.5
Depreciation and amortization	45.5			—		—			45.5
Total expenses	105.7			6.3		17.8			129.8
Income from unconsolidated investments, net of depreciation and amortization	—			10.9		—			10.9
Gain on sale of real estate, net	44.2			—		—			44.2
Transaction-related expenses	(0.2		)	—		—			(0.2		)
Interest expense	(33.4		)	—		(15.4		)	(48.8		)
Other (loss) income	(0.7		)	—		0.9			0.2
Provision for income taxes	(5.1		)	—		(0.6		)	(5.7		)
Net income (loss)	14.0			9.1		(29.0		)	(5.9		)
Net loss attributable to noncontrolling interests	0.3			—		—			0.3
Preferred dividends and accretion of preferred stock issuance costs	—			—		(4.3		)	(4.3		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	14.3		$	9.1	$	(33.3	)	$	(9.9	)



	Three Months Ended March 31, 2019

(Dollars in millions)	Consolidated Portfolio			Co-Investment Portfolio		Corporate			Total
Revenue
Rental	$	115.8		$	—	$	—		$	115.8
Hotel	15.0			—		—			15.0
Sale of real estate	1.1			—		—			1.1
Investment management and property services fees	—			5.1		3.7			8.8
Total revenue	131.9			5.1		3.7			140.7
Expenses
Rental	41.0			—		—			41.0
Hotel	14.6			—		—			14.6
Cost of real estate sold	1.2			—		—			1.2
Commission and marketing	—			—		1.0			1.0
Compensation and related	11.2			6.4		17.7			35.3
General and administrative	5.8			2.5		2.6			10.9
Depreciation and amortization	49.1			—		—			49.1
Total expenses	122.9			8.9		21.3			153.1
Income from unconsolidated investments, net of depreciation and amortization	—			41.7		—			41.7
Gain on sale of real estate, net	34.9			—		—			34.9
Transaction-related expenses	(0.8		)	—		—			(0.8		)
Interest expense	(37.1		)	—		(18.2		)	(55.3		)
Other income (loss)	(2.8		)	—		0.3			(2.5		)
Provision for income taxes	(2.1		)	—		(1.9		)	(4.0		)
Net income (loss)	1.1			37.9		(37.4		)	1.6
Net income attributable to noncontrolling interests	(6.9		)	—		—			(6.9		)
Preferred dividends and accretion of preferred stock issuance costs	—			—		—			—
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(5.8	)	$	37.9	$	(37.4	)	$	(5.3	)



(Dollars in millions)	March 31, 2020		December 31, 2019
Total assets
Consolidated Portfolio	$	5,373.8	$	5,671.6
Co-Investment Portfolio	1,256.4		1,334.6
Corporate	317.8		298.3
Total assets	$	6,948.0	$	7,304.5