Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Segment Presentation

    The Company evaluates its reportable segments in accordance with the guidance of ASC Topic 280, Segment Reporting. Kennedy Wilson 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 indicative to how the business is being run and evaluated by the chief operating decision makers. 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 and evaluation of the total performance of these investments by the Company's chief decision makers. 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.

    During the nine months ended September 30, 2020, we deconsolidated our investment in KW Europe Fund II as the Company no longer held a controlling financial interest in 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 and nine months ended September 30, 2020 and 2019 and balance sheet data as of September 30, 2020 and December 31, 2019:

	Three Months Ended September 30, 2020
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	102.2	$	—	$	—	$	102.2
Hotel	3.1		—		—		3.1
Investment management and property services fees	—		5.5		3.4		8.9
Total revenue	105.3		5.5		3.4		114.2
Expenses
Rental	33.5		—		—		33.5
Hotel	2.7		—		—		2.7
Commission and marketing	—		—		0.9		0.9
Compensation and related	9.4		4.5		12.4		26.3
General and administrative	4.8		1.8		2.0		8.6
Depreciation and amortization	44.3		—		—		44.3
Total expenses	94.7		6.3		15.3		116.3
Income from unconsolidated investments, net of depreciation and amortization	—		14.9		—		14.9
Gain on sale of real estate, net	4.0		—		—		4.0
Transaction-related expenses	(0.1)		—		—		(0.1)
Interest expense	(32.8)		—		(18.0)		(50.8)
Other income (loss)	1.1		—		0.5		1.6
(Provision for) benefit from income taxes	(0.8)		—		13.6		12.8
Net (loss) income	(18.0)		14.1		(15.8)		(19.7)
Net income attributable to noncontrolling interests	(1.1)		—		—		(1.1)
Preferred dividends and accretion of preferred stock issuance costs	—		—		(4.3)		(4.3)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(19.1)	$	14.1	$	(20.1)	$	(25.1)

	Three Months Ended September 30, 2019
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	108.3	$	—	$	—	$	108.3
Hotel	25.1		—		—		25.1
Investment management and property services fees	—		5.3		4.3		9.6
Total revenue	133.4		5.3		4.3		143.0
Expenses
Rental	39.0		—		—		39.0
Hotel	17.3		—		—		17.3
Commission and marketing	—		—		1.2		1.2
Compensation and related	11.4		9.2		15.0		35.6
General and administrative	3.0		2.8		2.6		8.4
Depreciation and amortization	46.4		—		—		46.4
Total expenses	117.1		12.0		18.8		147.9
Income from unconsolidated investments, net of depreciation and amortization	—		84.0		—		84.0
Gain on sale of real estate, net	6.3		—		—		6.3
Transaction-related expenses	(4.0)		—		—		(4.0)
Interest expense	(35.1)		—		(16.7)		(51.8)
Other income (loss)	3.3		—		(3.3)		—
Provision for income taxes	(2.2)		—		(8.0)		(10.2)
Net (loss) income	(15.4)		77.3		(42.5)		19.4
Net loss attributable to noncontrolling interests	1.3		—		—		1.3
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(14.1)	$	77.3	$	(42.5)	$	20.7

	Nine Months Ended September 30, 2020
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	308.8	$	—	$	—	$	308.8
Hotel	10.4		—		—		10.4
Investment management and property services fees	—		15.2		10.0		25.2
Total revenue	319.2		15.2		10.0		344.4
Expenses
Rental	102.2		—		—		102.2
Hotel	10.9		—		—		10.9
Commission and marketing	—		—		2.5		2.5
Compensation and related	30.3		14.0		40.8		85.1
General and administrative	14.6		5.1		6.4		26.1
Depreciation and amortization	135.1		—		—		135.1
Total expenses	293.1		19.1		49.7		361.9
Income from unconsolidated investments, net of depreciation and amortization	—		45.0		—		45.0
Gain on sale of real estate, net	47.7		—		—		47.7
Transaction-related expenses	(0.6)		—		—		(0.6)
Interest expense	(99.8)		—		(51.5)		(151.3)
Other income (loss)	—		—		1.7		1.7
(Provision for) benefit from income taxes	(8.4)		—		18.7		10.3
Net (loss) income	(35.0)		41.1		(70.8)		(64.7)
Net loss attributable to noncontrolling interests	0.5		—		—		0.5
Preferred dividends and accretion of preferred stock issuance costs	—		—		(12.9)		(12.9)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(34.5)	$	41.1	$	(83.7)	$	(77.1)

	Nine Months Ended September 30, 2019
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	336.1	$	—	$	—	$	336.1
Hotel	62.9		—		—		62.9
Sale of real estate	1.1		—		—		1.1
Investment management and property services fees	—		15.1		12.2		27.3
Total revenue	400.1		15.1		12.2		427.4
Expenses
Rental	113.3		—		—		113.3
Hotel	47.6		—		—		47.6
Cost of real estate sold	1.2		—		—		1.2
Commission and marketing	—		—		2.9		2.9
Compensation and related	39.4		19.7		48.8		107.9
General and administrative	15.9		6.3		8.0		30.2
Depreciation and amortization	141.7		—		—		141.7
Total expenses	359.1		26.0		59.7		444.8
Income from unconsolidated investments, net of depreciation and amortization	—		131.6		—		131.6
Gain on sale of real estate, net	252.4		—		—		252.4
Transaction-related expenses	(5.9)		—		—		(5.9)
Interest expense	(109.5)		—		(53.3)		(162.8)
Other income (loss)	1.8		—		(2.4)		(0.6)
Provision for income taxes	(5.8)		—		(29.3)		(35.1)
Net income (loss)	174.0		120.7		(132.5)		162.2
Net income attributable to noncontrolling interests	(96.0)		—		—		(96.0)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	78.0	$	120.7	$	(132.5)	$	66.2

(Dollars in millions)	September 30, 2020		December 31, 2019
Total assets
Consolidated	$	5,491.1	$	5,679.7
Co-investment	1,277.0		1,326.5
Corporate	408.5		298.3
Total assets	$	7,176.6	$	7,304.5