Mortgage Debt

6 Months Ended

Jun. 30, 2023

The following table details mortgage debt secured by Kennedy Wilson's consolidated properties as of June 30, 2023 and December 31, 2022:


(Dollars in millions)		Carrying amount of mortgage debt as of (1)
Mortgage Debt by Product Type	Region	June 30, 2023		December 31, 2022
Multifamily(1)	Western U.S.	$	1,659.4	$	1,692.9
Commercial(1)	United Kingdom	558.0		637.4
Commercial(1)	Ireland	378.2		370.7
Commercial	Western U.S.	268.7		296.6
Commercial	Spain	37.5		36.9
Mortgage debt (excluding loan fees)(1)		2,901.8		3,034.5
Unamortized loan fees		(14.8)		(16.5)
Total Mortgage Debt		$	2,887.0	$	3,018.0

(1) The mortgage debt 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 as an increase of interest expense for discounts and a reduction of interest expense for premiums over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan premium as of June 30, 2023 and December 31, 2022 was $0.8 million and $0.6 million, respectively.

The Company's mortgage debt had a weighted average interest rate of 4.94% per annum as of June 30, 2023 and 4.12% as of December 31, 2022. Including the impact of the interest rate hedging strategy deployed by the Company through the use of interest rate caps and swaps, the weighted average effective interest rate is 4.1% as of June 30, 2023 and December 31, 2022 including the effect of interest rate hedges. Additionally, the Company has recorded fair value movements and interest expense savings as the value of the interest rate caps and swaps have increased with rising interest rates. See Interest Rate Caps and Swaps in Note 5 for more detail. As of June 30, 2023, 61% of Kennedy Wilson's property level debt was fixed rate, 38% was floating rate with interest caps and swaps and 1% was floating rate without interest caps and swaps, compared to 65% of Kennedy Wilson's consolidated property level debt was fixed rate, 27% was floating rate with interest caps and swaps and 8% was floating rate without interest caps and swaps, as of December 31, 2022. The weighted average strike price on caps and maturity of Kennedy Wilson's variable rate mortgage debt is 2.37% and approximately 1.7 years, respectively, as of June 30, 2023.

Mortgage Loan Transactions and Maturities

During the six months ended June 30, 2023, the Company had five loans that were refinanced with new loans.

The aggregate maturities of mortgage loans including amortization and the effects of any extension options as of June 30, 2023 are as follows:


(Dollars in millions)	Aggregate Maturities
2023 (remainder)	$	143.7
2024	186.8
2025	303.5
2026	529.8
2027	382.6
Thereafter	1,356.2
	2,902.6
Unamortized debt premium	(0.8)
Unamortized loan fees	(14.8)
Total Mortgage Debt	$	2,887.0

As of June 30, 2023, the Company was in compliance with all financial mortgage debt covenants.