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.	$	857.6	$	89.2	$	195.9	$	158.3	$	169.1	$	1,470.1
Ireland	378.1		176.7		—		8.0		—		562.8
United Kingdom	—		138.7		—		36.3		30.2		205.2
Total	$	1,235.7	$	404.6	$	195.9	$	202.6	$	199.3	$	2,238.1


(Dollars in millions)	Multifamily		Commercial		Hotel		Funds		Residential and Other		Total
Western U.S.	$	592.1	$	81.0	$	131.0	$	189.2	$	179.6	$	1,172.9
Ireland	389.5		141.1		—		3.1		—		533.7
United Kingdom	—		169.3		—		42.9		28.8		241.0
Total	$	981.6	$	391.4	$	131.0	$	235.2	$	208.4	$	1,947.6

During the year ended December 31, 2022, the change in unconsolidated investments primarily relates to $361.3 million of cash contributions to unconsolidated investments, $235.2 million of distributions from unconsolidated investments, $31.9 million associated with the deconsolidation of Montiavo as discussed in Note 3, $178.4 million of income from unconsolidated investments (including $114.6 million of fair value gains), and a $41.8 million decrease related to other items, which primarily related to foreign exchange movements.

As of December 31, 2022 and December 31, 2021, $2,093.7 million and $1,794.8 million, respectively, of unconsolidated investments were accounted for at fair value. See Note 5 for more detail.

During the year ended December 31, 2022, Kennedy Wilson contributed $361.3 million to joint ventures, primarily to fund new acquisitions in the Company's European Industrial JV and multifamily properties in Western United States with separate account partners and capital calls with respect to the Kona Village hotel development.


	Multifamily				Commercial				Funds				Residential and Other				Total
(Dollars in millions)	Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing
Western U.S.	$	38.8	$	66.6	$	11.2	$	0.2	$	10.2	$	10.7	$	0.2	$	23.5	$	60.4	$	101.0
Ireland	8.0		38.6		7.3		—		—		4.9		—		—		15.3		43.5
United Kingdom	—		—		1.7		1.3		—		—		0.7		11.3		2.4		12.6
Total	$	46.8	$	105.2	$	20.2	$	1.5	$	10.2	$	15.6	$	0.9	$	34.8	$	78.1	$	157.1

Investing distributions resulted primarily from the sales of three multifamily properties and one office property in Fund VI, refinancing and buyouts from limited partners in the VHH portfolio, and distributions from mortgage refinancing on multifamily properties in the Western United States and Ireland. Operating distributions resulted from operating cash flow generated by the joint venture investments that have been distributed to the Company.


	Year Ended December 31,
(Dollars in millions)	2022		2021		2020
Income from unconsolidated investments - operating performance	$	80.2	$	60.7	$	43.4
Income from unconsolidated investments - realized gains from cost basis investments	4.7		—		—
Income from unconsolidated investments - unrealized and realized fair value gains	114.6		213.5		47.2
Income from unconsolidated investments - realized losses and impairment	—		(3.1)		(12.3)
Principal co-investments	199.5		271.1		78.3

(Loss) income from unconsolidated investments - performance allocation	(21.1)		117.9		2.7
	$	178.4	$	389.0	$	81.0

Realized gains during the year ended December 31, 2022, relates to the sale of a legacy multifamily property accounted for at historical cost in the Western United States at a sales price greater than its carrying value.

The decrease in income from unconsolidated investments is due to lower fair value gains and decreases in performance allocations on Western United States multifamily assets and commingled fund assets. The Company had a net fair value gain for the year ended December 31, 2022 as fair value losses on real estate and foreign exchange movements were more than offset by fair value gains on mortgages and interest rate derivatives as detailed below.

Valuations of global market rate multifamily assets in the Company's Western United States and Dublin markets and industrial assets in the United Kingdom were at historic levels at the end of 2021 and into the first quarter of 2022 and the Company has started to see this pull back slightly with cap rate expansion, which led to fair value losses on real estate during the year ended December 31, 2022. The Company also had fair value foreign exchange losses, net of any hedges on our foreign fair value investments as the GBP and Euro were at historically low levels in relation to the U.S. Dollar during the same period.

Fair value losses on real estate were also offset by fair value gains on fixed rate mortgages that are secured by certain properties, primarily related to having long term fixed rate debt that is at substantially lower interest rates than the current market interest rates as a result of higher base rates and spreads in today's financing market driven by recent rate increases implemented by the Federal Reserve and the European Central Bank ("ECB"). There were also fair value gains associated with interest rate derivatives held by properties on variable rate mortgages which have increased in value with rising interest rates.

VHH has had significant fair value gains in the current year due to gains on its fixed rate property loans and increases in NOI at the properties driven by rental increases and the stabilization of properties that have recently completed development. However, VHH does not have a performance allocation structure associated with the investment, which drove performance allocations being lower in relation to fair value gains.

During the year ended December 31, 2022, the Company recorded a $21.1 million decrease in the accrual for performance allocations relating to its commingled funds and separate account investments as the fair value of assets within these funds decreased. During the year ended December 31, 2022, the Company collected $6.8 million of performance allocations.

The Company evaluates on a quarterly basis the carrying value of its historical cost based investments and to the extent the carrying value is in excess of its fair value, an impairment loss is recorded. Realized losses and impairment are related to asset sales on non-core retail assets in the United Kingdom during the year ended December 31, 2021 and 2020.

As of December 31, 2022 and 2021, the carrying value of the Company's investment in VHH was $272.3 million and $157.9 million, respectively. The total equity income recognized from the Company's investment in VHH was $119.8 million, $41.4 million and $22.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Distributions in the current period primarily relate to the refund of advances on two development projects in which VHH provides cash for the construction costs in advance, and other partners subsequently pay their share of the costs back to VHH, a resyndication and investing distributions from refinancing proceeds. Fair value gains in the current period primarily relate to having long term

fixed rate debt that is at substantially lower interest rates than the current market interest rates. There were also fair value gains associated with increases in rents as area median income ("AMI") in the relevant market increased by an average rate of 10% and additional NOI from the stabilization of properties that have recently completed development. Prior period fair value gains primarily relate 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.

As of December 31, 2022, Kennedy Wilson had unfulfilled capital commitments totaling $246.6 million to nine of its unconsolidated joint ventures, including $76.8 million relating to four closed-end funds managed by Kennedy Wilson, under the respective operating agreements. In addition to the unfunded capital commitments, the Company has $87.4 million of equity commitments on various development projects. The Company may be called upon to contribute additional capital to joint ventures in satisfaction of such capital commitment obligations.

The income from VHH was a significant component of the Company's operations for the year ended December 31, 2022 when it had $119.8 million of income from unconsolidated investments, which consisted of $108.4 million of fair value gains and $11.4 million relating to the Company's ownership in the underlying operations and as such VHH is considered a significant subsidiary for the year ended December 31, 2022. Financial information is provided for December 31, 2021 for comparative purposes.

The income from the MF seed portfolio was a significant component of the Company's operations for the year ended December 31, 2021 when it had $92.1 million of income from unconsolidated investments, which consisted of $73.3 million of fair value gains, $15.7 million of performance allocations and $3.2 million relating to the Company's ownership in the underlying operations and as such the MF seed portfolio is considered a significant subsidiary for the year ended December 31, 2021. Financial information is provided for December 31, 2022 for comparative purposes.

The MF seed portfolio had $43.8 million of income from unconsolidated investments, which consisted of $28.6 million of fair value gains, $5.2 million of performance allocations and $9.9 million relating to the Company's ownership in the underlying operations of the properties in the portfolio for the year ended December 31, 2022.


	VHH				MF Seed Portfolio
	December 31,				December 31,
(Dollars in millions)	2022		2021		2022		2021
Cash and cash equivalents	$	37.0	$	31.9	$	12.4	$	10.9
Accounts receivable	4.4		4.9		2.0		2.4
Real estate	1,802.7		1,553.3		970.5		943.5
Other	2.0		—		1.1		1.5
Total assets	$	1,846.1	$	1,590.1	$	986.0	$	958.3

Liabilities
Accounts payable and accrued expenses	$	17.6	$	19.9	$	5.4	$	5.2
Mortgage debt	1,180.6		1,188.6		448.7		457.0
Total liabilities	1198.2		1,208.5		454.1		462.2

Equity
Kennedy Wilson - investment in unconsolidated investment	271.8		157.9		291.9		268.6
Partners	376.1		223.7		240.0		227.5
Total equity	647.9		381.6		531.9		496.1

Total liabilities and equity	$	1,846.1	$	1,590.1	$	986.0	$	958.3


	VHH						MF Seed Portfolio
(Dollars in millions)	Year Ended December 31,						Year Ended December 31,
	2022		2021		2020		2022		2021
Rental income	$	131.0	$	114.7	$	102.1	$	64.8	$	31.6

Unrealized fair value gains	270.7		77.4		31.3		56.1		140.6

Rental expenses	(41.0)		(34.8)		(31.4)		(21.1)		(8.5)
Interest expense	(45.6)		(37.5)		(31.8)		(17.6)		(8.2)
Other expense	—		(0.1)		(0.9)		(4.1)		(11.8)
Net income	315.1		119.7		69.3		78.1		143.7
Income attributable to partner	(195.3)		(78.3)		(46.5)		(33.0)		(54.8)
Income from unconsolidated investment	$	119.8	$	41.4	$	22.8	$	45.1	$	88.9