Kennedy-Wilson Holdings, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Kennedy-Wilson Holdings, Inc. filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Kennedy-Wilson Holdings, Inc. (KW) filed a Annual Report (10-K) with the SEC on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. Kennedy-Wilson Holdings, Inc. is incorporated in Delaware. The company's principal business address is 151 S El Camino Dr, Beverly Hills, CA. The filing includes data for the fiscal years 2023, 2022, and 2021. The company's SIC code is 6500 (Real Estate).

Why It Matters

For investors and stakeholders tracking Kennedy-Wilson Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kennedy-Wilson's financial health, operational segments, and risk factors for the past fiscal year, crucial for investors assessing the company's performance and future prospects. The detailed financial data, including revenue breakdowns and debt levels, allows stakeholders to understand the company's financial position and compare it against previous periods and industry benchmarks.

Risk Assessment

Risk Level: medium — Kennedy-Wilson Holdings, Inc. shows moderate risk based on this filing. The company operates in the real estate sector, which is subject to market fluctuations, interest rate changes, and economic downturns, as indicated by the various real estate and debt-related line items in the filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Kennedy-Wilson's performance in the real estate market and its debt management strategies.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-22 — Filed As Of Date (Filing date)
• 2007-07-27 — Date of Name Change (From Prospect Acquisition Corp)
• 6500 — Standard Industrial Classification (Real Estate)

Key Players & Entities

• Kennedy-Wilson Holdings, Inc. (company) — Filer name
• Prospect Acquisition Corp (company) — Former company name
• BEVERLY HILLS (company) — Business address city
• DE (company) — State of incorporation

FAQ

Risk Factors

• Real Estate Market Risks [high — market]: The company's performance is significantly tied to the real estate market, which is subject to economic conditions, interest rate fluctuations, and property value volatility.
• Debt and Leverage Risks [high — financial]: The company utilizes significant debt financing, exposing it to risks associated with interest rate changes, refinancing needs, and covenants.
• Property Management and Operations [medium — operational]: Operational risks include challenges in property management, tenant relations, and maintaining occupancy rates across its diverse portfolio.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $24.5 billion — , our 259 employees, managed a total of $24.5 billion of Real Estate Assets Under Management
• $1.8 billion — or in process of being developed), and $1.8 billion of development, residential and other.
• $22.8 billion — r the year ended December 31, 2023, the $22.8 billion of operating properties within our AUM
• $736.0 million — f $1.8 billion (KW's share of which was $736.0 million) compared to $20.5 billion of operating
• $20.5 billion — f which was $736.0 million) compared to $20.5 billion of operating properties as of December
• $1.4 billion — December 31, 2022 with total revenue of $1.4 billion (KW's share of which was $706.0 million
• $706.0 million — f $1.4 billion (KW's share of which was $706.0 million) during the same period in 2022. In add
• $4.9 billion — num) and an unpaid principal balance of $4.9 billion (of which our share was $263.0 million)
• $263.0 million — of $4.9 billion (of which our share was $263.0 million). Our global team, located primarily in
• $283.2 million — eland, also managed the consummation of $283.2 million of gross acquisitions and $2.3 billion
• $2.3 billion — 283.2 million of gross acquisitions and $2.3 billion of loan investments, which includes $2.
• $2.1 billion — ion of loan investments, which includes $2.1 billion relating to loans acquired in our newly
• $823.1 million — terest of 18% and 5%, respectively) and $823.1 million of gross dispositions and $614.8 millio
• $614.8 million — 823.1 million of gross dispositions and $614.8 million of loan repayments (KW's ownership inte
• $8.4 b — r 31, 2023, our fee-bearing capital was $8.4 billion, which increased $2.5 billion, or

Filing Documents

• kw-20231231.htm (10-K) — 4652KB
• ex412kw-supplementalindent.htm (EX-4.12) — 44KB
• ex413kw-supplementalindent.htm (EX-4.13) — 41KB
• ex414kw-supplementalindent.htm (EX-4.14) — 41KB
• ex420-descriptionofsecurit.htm (EX-4.20) — 74KB
• ex1027kw-joinderagreementd.htm (EX-10.27) — 36KB
• kw20231231ex21listofsubsid.htm (EX-21) — 659KB
• kw2023123110kexhibit231.htm (EX-23.1) — 3KB
• kw2023123110kexhibit311.htm (EX-31.1) — 10KB
• kw2023123110kexhibit312.htm (EX-31.2) — 10KB
• kw2023123110kexhibit321.htm (EX-32.1) — 6KB
• kw2023123110kexhibit322.htm (EX-32.2) — 7KB
• ex97kw-clawbackpolicy2023.htm (EX-97) — 42KB
• kw-20231231_g1.jpg (GRAPHIC) — 747KB
• 0001408100-24-000060.txt (&nbsp;) — 23546KB
• kw-20231231.xsd (EX-101.SCH) — 114KB
• kw-20231231_cal.xml (EX-101.CAL) — 126KB
• kw-20231231_def.xml (EX-101.DEF) — 715KB
• kw-20231231_lab.xml (EX-101.LAB) — 1308KB
• kw-20231231_pre.xml (EX-101.PRE) — 994KB
• kw-20231231_htm.xml (XML) — 3906KB

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 31

Cybersecurity

Item 1C. Cybersecurity 31

Properties

Item 2. Properties 32

Legal Proceedings

Item 3. Legal Proceedings 33

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 34 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

Reserved

Item 6. Reserved 36

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 65

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 66

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 119

Controls and Procedures

Item 9A. Controls and Procedures 119

Other Information

Item 9B. Other Information 119

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 119 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 120

Executive Compensation

Item 11. Executive Compensation 120

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 120

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 120

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 120 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 122 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Statements made by us in this report and in other reports and statements released by us that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are necessarily estimates reflecting the judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future results. Disclosures that use words such as "believe," "may," "anticipate," "estimate," "intend," "could," "plan," "expect," "project" or the negative of these, as well as similar expressions, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievement, or industry results, to differ materially from any future results, performance or achievements, expressed or implied by such forward-looking statements. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we do not guarantee that the transactions and events described will happen as described (or that they will happen at all). In addition, this report contains information and statistics regarding, among other things, the industry, markets, submarkets and sectors in which we operate. We obtained this information and these statistics from various third-party sources and our own internal estimates. We believe that these sources and estimates are reliable but have not independently verifi

Business

Item 1. Business Company Overview Kennedy Wilson is a global real estate investment company. We own, operate and develop high-quality real estate across markets in the Western United States, the United Kingdom and Ireland with the objective of generating long-term risk-adjusted returns for our shareholders and partners. In addition to owning and managing real estate assets, we have a growing global debt platform primarily focused on construction lending secured by high-quality multifamily and student housing properties throughout the United States. As of December 31, 2023, our 259 employees, managed a total of $24.5 billion of Real Estate Assets Under Management ("AUM"), which includes 37,644 multifamily units (including 3,824 units under lease up or in process of being developed), 10.9 million office square feet, 11.4 million industrial square feet and 3.0 million retail square feet (including 2.3 million square feet under lease up or in process of being developed), and $1.8 billion of development, residential and other. For the year ended December 31, 2023, the $22.8 billion of operating properties within our AUM as of December 31, 2023 produced total revenue of $1.8 billion (KW's share of which was $736.0 million) compared to $20.5 billion of operating properties as of December 31, 2022 with total revenue of $1.4 billion (KW's share of which was $706.0 million) during the same period in 2022. In addition, as of December 31, 2023, we held interests in 101 real estate loans in our global debt platform, 85% of which have floating interest rates (average interest rate of 9.4% per annum) and an unpaid principal balance of $4.9 billion (of which our share was $263.0 million). Our global team, located primarily in offices throughout the United States, the United Kingdom and Ireland, also managed the consummation of $283.2 million of gross acquisitions and $2.3 billion of loan investments, which includes $2.1 billion relating to loans acquired in our newly formed Const