Segment Information

6 Months Ended

Jun. 30, 2023

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, which aligns with how the business is being run and evaluated by the chief operating decision makers.

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, including loans secured by real estate, through the commingled funds and joint ventures that it manages; and (ii) the fees (including, without limitation, asset management fees and construction management fees); and (iii) performance allocations 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 Company's auction 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) the fees (including, without limitation, asset management fees and construction management fees); (ii) performance allocations that it earns on its fee bearing capital; and (iii) distributions and profits from its ownership interest in the underlying operations of its co-investments. The Company utilizes different platforms in the Co-Investment Portfolio segment depending on the asset and risk return profiles.

The following tables summarize income activity by segment and corporate for the three and six months ended June 30, 2023 and 2022 and balance sheet data as of June 30, 2023 and December 31, 2022:

	Three Months Ended June 30, 2023
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	106.6	$	—	$	—	$	106.6
Hotel	15.5		—		—		15.5
Investment management fees	—		19.1		—		19.1
Loans	—		4.7		—		4.7
Other	—		—		0.6		0.6
Total revenue	122.1		23.8		0.6		146.5
Income (loss) from unconsolidated investments
Principal co-investments	—		6.3		—		6.3
Performance allocations	—		(7.7)		—		(7.7)
(Loss) income from unconsolidated investments	—		(1.4)		—		(1.4)
Gain on sale of real estate, net	89.0		—		—		89.0
Expenses
Rental	38.7		—		—		38.7
Hotel	9.7		—		—		9.7
Compensation and related	13.4		10.1		13.5		37.0
Performance allocation compensation	—		(1.1)		—		(1.1)
General and administrative	4.3		2.5		1.9		8.7
Depreciation and amortization	40.1		—		—		40.1
Total expenses	106.2		11.5		15.4		133.1
Interest expense	(41.0)		—		(25.0)		(66.0)
Loss on extinguishment of debt	(1.7)		—		—		(1.7)
Other income	13.0		—		11.3		24.3
Provision for income taxes	(6.2)		—		(4.1)		(10.3)
Net income (loss)	69.0		10.9		(32.6)		47.3
Net loss attributable to noncontrolling interests	0.1		—		—		0.1
Preferred dividends	—		—		(8.4)		(8.4)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	69.1	$	10.9	$	(41.0)	$	39.0

	Six Months Ended June 30, 2023
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	213.2	$	—	$	—	$	213.2
Hotel	26.1		—		—		26.1
Investment management fees	—		30.1		—		30.1
Loans	—		8.4		—		8.4
Other	—		—		0.9		0.9
Total revenue	239.3		38.5		0.9		278.7
Income (loss) from unconsolidated investments
Principal co-investments	—		22.7		—		22.7
Performance allocations	—		(18.4)		—		(18.4)
Income from unconsolidated investments	—		4.3		—		4.3
Gain on sale of real estate, net	108.2		—		—		108.2
Expenses
Rental	75.3		—		—		75.3
Hotel	17.6		—		—		17.6
Compensation and related	23.2		18.5		25.9		67.6
Performance allocation compensation	—		0.5		—		0.5
General and administrative	7.9		5.7		3.5		17.1
Depreciation and amortization	79.5		—		—		79.5
Total expenses	203.5		24.7		29.4		257.6
Interest expense	(78.2)		—		(50.1)		(128.3)
Loss on extinguishment of debt	(1.6)		—		—		(1.6)
Other income	12.0		—		9.3		21.3
(Provision for) benefit from income taxes	(8.0)		—		1.6		(6.4)
Net income (loss)	68.2		18.1		(67.7)		18.6
Net income attributable to noncontrolling interests	(4.1)		—		—		(4.1)
Preferred dividends	—		—		(16.3)		(16.3)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	64.1	$	18.1	$	(84.0)	$	(1.8)

	Three Months Ended June 30, 2022
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	109.3	$	—	$	—	$	109.3
Hotel	12.7		—		—		12.7
Investment management fees	—		11.0		—		11.0
Loans	—		2.7		—		2.7
Other	—		—		0.4		0.4
Total revenue	122.0		13.7		0.4		136.1
Income (loss) from unconsolidated investments
Principal co-investments	—		39.4		—		39.4
Performance allocations	—		(8.7)		—		(8.7)
Income from unconsolidated investments	—		30.7		—		30.7
Gain on sale of real estate, net	11.9		—		—		11.9
Expenses
Rental	36.4		—		—		36.4
Hotel	7.6		—		—		7.6
Compensation and related	9.8		10.9		13.1		33.8
Performance allocation compensation	—		(2.0)		—		(2.0)
General and administrative	3.6		3.9		1.9		9.4
Depreciation and amortization	43.3		—		—		43.3
Total expenses	100.7		12.8		15.0		128.5
Interest expense	(30.7)		—		(22.5)		(53.2)
Loss on extinguishment	(1.1)		—		—		(1.1)
Other income	2.8		—		0.8		3.6
(Provision for) benefit from income taxes	(8.5)		—		8.1		(0.4)
Net (loss) income	(4.3)		31.6		(28.2)		(0.9)
Net income attributable to noncontrolling interests	(0.3)		—		—		(0.3)
Preferred dividends	—		—		(7.8)		(7.8)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(4.6)	$	31.6	$	(36.0)	$	(9.0)

	Six Months Ended June 30, 2022
(Dollars in millions)	Consolidated		Co-Investments		Corporate		Total
Revenue
Rental	$	213.5	$	—	$	—	$	213.5
Hotel	19.2		—		—		19.2
Investment management fees	—		22.3		—		22.3
Loans	—		5.0		—		5.0
Other	—		—		0.8		0.8
Total revenue	232.7		27.3		0.8		260.8
Income from unconsolidated investments
Principal co-investments	—		117.6		—		117.6
Performance allocations	—		18.5		—		18.5
Income from unconsolidated investments	—		136.1		—		136.1
Gain on sale of real estate, net	13.8		—		—		13.8
Expenses
Rental	72.1		—		—		72.1
Hotel	11.9		—		—		11.9
Compensation and related	18.0		25.3		26.6		69.9
Performance allocation compensation	—		9.8		—		9.8
General and administrative	6.1		7.6		3.6		17.3
Depreciation and amortization	86.6		—		—		86.6
Total expenses	194.7		42.7		30.2		267.6
Interest expense	(59.7)		—		(44.0)		(103.7)
Loss on extinguishment of debt	(1.1)		—		—		(1.1)
Other income	5.9		—		3.5		9.4
(Provision for) benefit from income taxes	(10.4)		—		1.8		(8.6)
Net (loss) income	(13.5)		120.7		(68.1)		39.1
Net income attributable to noncontrolling interests	(0.2)		—		—		(0.2)
Preferred dividends	—		—		(13.1)		(13.1)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(13.7)	$	120.7	$	(81.2)	$	25.8

(Dollars in millions)	June 30, 2023		December 31, 2022
Total assets
Consolidated	$	5,338.6	$	5,684.1
Co-investment	2,565.0		2,387.5
Corporate	290.3		200.2
Total assets	$	8,193.9	$	8,271.8