Fair Value Measurements and the Fair Value Option (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements

The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of June 30, 2023:

(Dollars in millions)	Level 1		Level 2		Level 3		Total
Unconsolidated investments	$	—	$	—	$	2,174.7	$	2,174.7
Net currency derivative contracts	—		(13.6)		—		(13.6)
Total	$	—	$	(13.6)	$	2,174.7	$	2,161.1

    The following table presents fair value measurements (including items that are required to be measured at fair value and items for which the fair value option has been elected) as of December 31, 2022:

(Dollars in millions)	Level 1		Level 2		Level 3		Total
Unconsolidated investments	$	—	$	—	$	2,093.7	$	2,093.7
Net currency derivative contracts	—		7.0		—		7.0
Total	$	—	$	7.0	$	2,093.7	$	2,100.7

Schedule of Changes in Level 3 Investments

The following table presents changes in Level 3 investments in Funds and FV Options for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2023		2022		2023		2022
Beginning balance	$	2,125.5	$	2,012.5	$	2,093.7	$	1,794.8
Unrealized and realized gains	41.7		66.9		98.3		182.6
Unrealized and realized losses	(50.7)		(21.6)		(107.1)		(37.9)
Contributions	42.6		109.8		93.3		257.7
Distributions	(42.4)		(75.3)		(72.5)		(95.7)
Foreign Exchange	7.9		(57.5)		19.2		(67.2)
Other	50.1		0.7		49.8		1.2
Ending Balance	$	2,174.7	$	2,035.5	$	2,174.7	$	2,035.5

The Other balance for the three and six months ended June 30, 2023 primarily consists of non-cash contributions relating to two recapitalized multifamily investments into a separate account platform and one multifamily property into VHH. See notes to cash flow statement and Note 3 for further discussion regarding the sale of equity interests in these properties and subsequent deconsolidation of these investments into unconsolidated investments.

Schedule of the Funds and Fair Value Option Investments, Significant Inputs

The table below describes the range of unobservable inputs for real estate assets as of June 30, 2023:

		Estimated Rates Used for
		Capitalization Rates	Discount Rates
Multifamily	Income approach - discounted cash flow	5.00% —7.50%	7.30% — 9.80%
	Income approach - direct capitalization	4.10% — 5.70%	N/A
Office	Income approach - discounted cash flow	5.20% — 7.50%	7.50% — 9.30%
	Income approach - direct capitalization	4.30% — 8.70%	N/A
Industrial	Income approach - discounted cash flow	5.00% — 6.30%	6.30% — 7.80%
	Income approach - direct capitalization	3.90% — 8.10%	N/A
Retail	Income approach - discounted cash flow	6.50%	8.30%
Hotel	Income approach - discounted cash flow	6.00%	8.30%

Schedule of Currency Forward Contracts

The table below details the currency derivative contracts Kennedy Wilson held as of June 30, 2023 and the activity during the six months ended June 30, 2023.

(Dollars, Euros and British Pound Sterling in millions)				June 30, 2023				Six Months Ended June 30, 2023
Currency Hedged	Underlying Currency	Notional		Hedge Assets		Hedge Liabilities		OCI (Losses) Gains			Income Statement Losses		Interest Expense		Cash Paid
Outstanding
EUR	USD	€	287.5	$	3.6	$	15.7	$	(0.2)		$	(6.5)	$	2.0	$	—
EUR(1)	GBP	€	40.0	—		1.0		(1.8)			—		—		—
EUR(1)(2)	GBP	€	475.0	—		—		16.8			—		—		—
GBP	USD	£	515.0	18.3		18.8		(15.2)			(1.9)		0.9		—
Total Outstanding				21.9		35.5		(0.4)			(8.4)		2.9		—
Settled
GBP	USD			—		—		2.5			—		0.1		0.7
Total Settled				—		—		2.5			—		0.1		0.7
Total				$	21.9	$	35.5	$	2.1	(3)	$	(8.4)	$	3.0	$	0.7

(1) Hedge is held by KWE on its wholly-owned subsidiaries.

(2) Relates to KWE's Euro Medium Term Note. See discussion in Note 10.

(3) Excludes deferred tax benefit of $3.1 million.