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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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26-0508760
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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151 S El Camino Dr
Beverly Hills, CA
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90212
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on which Registered
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Common Stock, $.0001 par value
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NYSE
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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•
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disruptions in general economic and business conditions, particularly in geographies where our business may be concentrated;
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volatility and disruption of the capital and credit markets, higher interest rates, higher loan costs, less desirable loan terms and a reduction in the availability of mortgage loans, all of which could increase costs and could limit our ability to acquire additional real estate assets;
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high levels of unemployment and general slowdowns in commercial activity;
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our leverage and ability to refinance existing indebtedness or incur additional indebtedness;
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an increase in our debt service obligations;
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our ability to generate a sufficient amount of cash to satisfy working capital requirements and to service our existing and future indebtedness;
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our ability to achieve improvements in operating efficiency;
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foreign currency fluctuations;
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performance of our foreign currency hedge and similar instruments;
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adverse changes in the securities markets;
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our ability to retain our senior management and attract and retain qualified and experienced employees;
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changes in tax laws in the United States (including those made by the Tax Cuts and Jobs Act enacted in December 2017), Ireland, United Kingdom, Spain, Italy or Japan that reduce or eliminate deductions or other tax benefits we receive;
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our ability to repatriate investment funds in a tax-efficient manner;
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future acquisitions may not be available at favorable prices or upon advantageous terms and conditions;
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costs relating to the acquisition of assets we may acquire could be higher than anticipated;
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our ability to retain major clients and renew related contracts; and
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trends in use of large, full-service commercial real estate providers.
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Item 1.
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Business
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•
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Identify countries and markets with an attractive investment landscape
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•
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Establish operating platforms in our target markets
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Develop local intelligence and create long-lasting relationships, primarily with financial institutions
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Leverage relationships and local knowledge to drive proprietary investment opportunities with a focus on off-market transactions that we expect will result in above average cash flows and returns over the long term
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•
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Acquire high quality assets, either on our own or with strategic partners, utilizing cash from our balance sheet (funded by cash flows from operations, refinancing of current investments, investments sales or the sale of equity or debt securities) and typically financing them on a long-term basis
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•
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Reposition assets to enhance cash flows post-acquisition
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Explore development opportunities on underutilized portions of assets, primarily excess land with little or no basis that is adjacent to income producing properties
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Continuously evaluate and selectively harvest asset and entity value through strategic realizations utilizing both the public and private markets
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Utilize our services businesses to meet client needs, strengthen relationships with financial institutions, and position us as a valuable resource and partner to these institutions for any future real estate opportunities
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(In millions, except per share amounts)
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Year Ended December 31,
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2017
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2016
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2015
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2014
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2013
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Statements of operations data and
dividends: |
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Revenue
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$
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810.6
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$
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703.4
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$
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603.7
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$
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398.6
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$
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123.1
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Net income (loss) to Kennedy-Wilson Holdings Inc. common shareholders
(1)
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100.5
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2.8
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71.1
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13.8
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(14.5
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)
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Basic income (loss) per share
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0.83
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0.01
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0.66
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0.14
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(0.21
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)
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Dividends declared per share of common stock
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0.70
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0.56
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0.48
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0.36
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0.28
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Adjusted EBITDA
(2)
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455.7
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349.9
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371.2
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317.8
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159.1
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Adjusted EBITDA annual increase (decrease)
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30
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%
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(6
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)%
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17
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%
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100
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%
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Adjusted Net Income
(2)
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242.5
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191.3
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208.2
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133.7
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61.1
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Adjusted Net Income annual increase (decrease)
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27
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%
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(8
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)%
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56
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%
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119
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%
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Adjusted Fees
(2)
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86.6
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108.9
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158.2
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121.0
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72.4
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Adjusted Fees annual (decrease) increase
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(20
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)%
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(31
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)%
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31
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%
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67
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%
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||||||
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As of December 31,
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2017
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2016
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2015
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2014
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2013
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Balance sheet data:
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Cash and cash equivalents
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$
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351.3
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$
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885.7
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$
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731.6
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$
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937.7
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$
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178.2
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Total assets
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7,724.8
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7,656.6
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7,595.6
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6,297.6
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1,786.8
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Mortgage debt
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3,156.6
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2,770.4
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2,772.5
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2,175.7
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400.2
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KW unsecured debt
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1,179.4
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934.1
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688.8
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813.1
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438.6
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KWE unsecured bonds
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1,325.9
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1,185.7
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855.0
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—
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—
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Kennedy Wilson equity
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1,365.6
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1,048.0
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1,133.8
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901.1
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768.3
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Noncontrolling interests
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211.9
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1,295.1
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1,731.3
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2,142.8
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50.6
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Total equity
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1,577.5
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2,343.1
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2,865.1
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3,043.9
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818.9
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Common shares outstanding
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151.6
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115.7
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114.5
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96.1
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82.6
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•
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KW Investments invests our capital in real estate-related assets.
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•
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IMRES encompasses our fee-generating businesses and includes both our investment management platform as well as our third-party services business. These businesses offer a comprehensive line of real estate services for the full lifecycle of real estate ownership to clients that include financial institutions, institutional investors, insurance companies, developers, builders and government agencies and included shareholders of KWE prior to the closing of the KWE Transaction. IMRES has five main lines of business: investment management, property services, research, brokerage, and auction and conventional sales.
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Leverage our global footprint and complementary investments and services businesses to identify attractive investment markets across the world.
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Selectively invest in opportunities across many real estate product types with a goal of maximizing cash flow and return on capital.
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Actively manage assets and finance them conservatively in a manner designed to generate stable, predictable and growing cash flows for shareholders and clients.
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We are able to identify and acquire attractive real estate assets across many markets, in part due to the significant proprietary deal flow driven from an established global network of industry relationships, particularly with financial institutions. This can create value by allowing us to maintain and develop a large pipeline of attractive opportunities.
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•
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Our operating expertise allows us to focus on opportunistic investments where we believe we can increase the value of assets and cash flows, such as distressed real estate owners or lenders seeking liquidity, under-managed or under-leased assets, and repositioning opportunities.
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Many times, these investments are acquired at a discount to replacement cost or recent comparative sales, thereby offering opportunities to achieve above average total returns. In many cases, this may lead to significant additional returns, such as a promoted interest, based on the performance of the assets.
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In many instances, our long-lasting and deep relationships with financial institutions allow us to refinance loans to reduce interest rates and/or increase borrowings due to property appreciation and thereby obtain cash flow to use for new investments. We generally implement this strategy after our value add initiatives have been executed, thus allowing us to maintain moderate levels of leverage.
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•
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KW Investment Management and Real Estate Services (IMRES) plays a critical role in supporting our investment strategy by providing local market intelligence and real-time data for evaluating investments, generating proprietary transaction flow and creating value through efficient implementation of asset management or repositioning strategies.
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•
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We understand that real estate is cyclical. Our management team employs a multi-cyclical approach that has resulted in our IMRES AUM being globally diversified across many sectors of real estate while maintaining a healthy liquidity position and adequate access to capital.
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Transaction experience:
Our Executive Committee has more than 125 years of combined real estate experience and has been working and investing together on average for over 15 years. Members of the Executive Committee have collectively acquired, developed and managed in excess of $20 billion of real estate investments in the United States, the United Kingdom, Ireland, Spain, Italy and Japan throughout various economic cycles, both at our Company and throughout their careers.
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•
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Extensive relationship and sourcing network:
We leverage our services business in order to source off-market deals. In addition, the Executive Committee and our acquisition team have transacted deals in nearly every major metropolitan market on the West Coast of the United States, as well as in the United Kingdom, Ireland, Spain, Italy and Japan. Their local presence and reputation in these markets have enabled them to cultivate key relationships with major holders of property inventory, in particularly financial institutions, throughout the real estate community.
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•
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Structuring expertise and speed of execution:
Prior acquisitions completed by us have taken a variety of forms, including direct property investments, joint ventures, exchanges involving stock or operating partnership units, participating loans and investments in performing and non-performing mortgages at various capital stock positions with the objective of long-term ownership. We believe we have developed a reputation of being able to quickly execute, as well as originate and creatively structure acquisitions, dispositions and financing transactions.
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•
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Vertically integrated platform for operational enhancement:
We have over
498
employees in both KW Investments and IMRES, with
25
offices throughout the United States, the United Kingdom, Ireland, Spain, Jersey and Japan. We have a hands-on approach to real estate investing and possess the local expertise in property management, leasing, construction management, development and investment sales, which we believe enable us to invest successfully in selected submarkets.
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•
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Risk protection and investment discipline:
We underwrite our investments based upon a thorough examination of property economics and a critical understanding of market dynamics and risk management strategies. We conduct an in-depth sensitivity analysis on each of our acquisitions. This analysis applies various economic scenarios that include changes to rental rates, absorption periods, operating expenses, interest rates, exit values and holding periods. We use this analysis to develop our disciplined acquisition strategies.
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•
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Management's alignment with shareholders
: As of
December 31, 2017
our directors and executive officers and their respective affiliates owned an aggregate of approximately
13%
of the outstanding shares of our common stock. Due to management team's ownership interest in the Company its interests are in alignment with common shareholders of the Company.
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Item 1A.
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Risk Factors
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•
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a general decline in rents due to defaulting tenants or less favorable terms for renewed or new leases;
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a decline in actual and projected sale prices of our properties, resulting in lower returns on the properties in which we have invested;
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•
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higher interest rates, higher loan costs, less desirable loan terms and a reduction in the availability of mortgage loans, all of which could increase costs and limit our ability to acquire additional real estate assets; and
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•
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a decrease in the availability of lines of credit and the public equity and debt markets and other sources of capital used to purchase real estate investments and distressed notes.
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•
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civil unrest, acts of war and terrorism and acts of God, including earthquakes, hurricanes and other natural disasters (which may result in uninsured or underinsured losses);
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•
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the impact of present or future legislation in the United States, United Kingdom, Ireland, and to a lesser extent, Spain, Italy and Japan (including environmental regulation, changes in laws concerning foreign ownership of property, changes in tax rates, changes in zoning laws and laws requiring upgrades to accommodate disabled persons) and the cost of compliance with these types of legislation; and
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•
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liabilities relating to claims, to the extent insurance is not available or is inadequate.
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•
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shortages of materials or skilled labor;
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•
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a change in the scope of the original project;
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•
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difficulty in obtaining necessary zoning, land-use, environmental, building, occupancy and other governmental permits and authorizations;
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•
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the discovery of structural or other latent defects in the property after we acquire the property; and
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•
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delays in obtaining tenants.
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•
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restrictions and problems relating to the repatriation of profits;
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•
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difficulties and costs of staffing and managing international operations;
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•
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the burden of complying with multiple and potentially conflicting laws;
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•
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laws restricting foreign companies from conducting business;
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•
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unexpected changes in regulatory requirements;
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•
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the impact of different business cycles and economic instability;
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•
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political instability and civil unrest;
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•
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greater difficulty in perfecting our security interests, collecting accounts receivable, foreclosing on secured assets and protecting our interests as a creditor in bankruptcies in certain geographic regions;
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•
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potentially adverse tax consequences;
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•
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share ownership restrictions on foreign operations;
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•
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tariff regimes of the countries in which we do business; and
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•
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geographic, time zone, language and cultural differences between personnel in different areas of the world.
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•
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we may not be able to obtain, or may experience delays in obtaining, all necessary zoning, land-use, building, occupancy and other governmental permits and authorizations;
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•
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we may not be able to obtain financing for development projects, or obtain financing on favorable terms;
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•
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construction costs of a project may exceed the original estimates or construction may not be concluded on schedule, making the project less profitable than originally estimated or not profitable at all (including the possibility of errors or omissions in the project's design, contract default, contractor or subcontractor default, performance bond surety default, the effects of local weather conditions, the possibility of local or national strikes and the possibility of shortages in materials, building supplies or energy and fuel for equipment);
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•
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tenants which pre-lease space or contract with us for a build-to-suit project may default prior to occupying the project;
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upon completion of construction, we may not be able to obtain, or obtain on advantageous terms, permanent financing for activities that we financed through construction loans;
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we may not achieve sufficient occupancy levels and/or obtain sufficient rents to ensure the profitability of a completed project; and
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development projects in which we have invested may be abandoned and the related investment will be impaired.
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•
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purchasing real estate, as well as undeveloped land for our own account;
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acquiring secured and unsecured loans;
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selling commercial and residential properties on behalf of customers through brokerage and auction services;
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leasing and property management, including construction and engineering services;
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•
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the attractiveness of our properties to tenants;
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•
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competition from other available space;
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•
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our ability to provide adequate maintenance and obtain insurance and to pay increased operating expenses, which may not be passed through to tenants;
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•
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the availability of capital to periodically renovate, repair and maintain the properties, as well as for other operating expenses; and
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•
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the existence of potential tenants desiring to lease the properties.
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•
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cash flow may be insufficient to make required payments of principal and interest;
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•
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existing indebtedness on our properties may not be refinanced and our leverage could increase our vulnerability to general economic downturns and adverse competitive and industry conditions, placing us at a disadvantage compared to those of our competitors that are less leveraged;
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•
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our debt service obligations could limit our flexibility in planning for, or reacting to, changes in our business and in the commercial real estate services industry;
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•
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our failure to comply with the financial and other restrictive covenants in the documents governing our indebtedness could result in an event of default that, if not cured or waived, results in foreclosure on substantially all of our assets; and
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•
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the terms of available new financing may not be as favorable as the terms of existing indebtedness.
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•
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incur additional indebtedness;
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•
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repay indebtedness (including our 5.875% senior notes due 2024) prior to stated maturities;
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•
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pay dividends on, redeem or repurchase our stock or make other distributions;
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•
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make acquisitions or investments;
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•
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create or incur liens;
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transfer or sell certain assets or merge or consolidate with or into other companies;
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•
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enter into certain transactions with affiliates;
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•
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sell stock in our subsidiaries;
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•
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restrict dividends, distributions or other payments from our subsidiaries; and
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•
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otherwise conduct necessary corporate activities.
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•
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the special purpose property-owning subsidiary’s filing a voluntary petition for bankruptcy;
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•
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the special purpose property-owning subsidiary’s failure to maintain its status as a special purpose entity; and
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•
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subject to certain conditions, the special purpose property-owning subsidiary’s failure to obtain lender’s written consent prior to obtaining any subordinate financing or encumbering the associated property.
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•
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changes in real estate prices;
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•
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actual or anticipated fluctuations in our quarterly and annual results and those of our publicly held competitors;
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•
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mergers and strategic alliances among any real estate companies;
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•
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market conditions in the industry;
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•
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changes in government regulation and taxes;
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•
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shortfalls in our operating results from levels forecasted by securities analysts;
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•
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investor sentiment toward the stock of real estate companies in general;
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•
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announcements concerning us or our competitors; and
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•
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the general state of the securities markets.
|
•
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a limited availability of market quotations for our common stock;
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•
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a limited amount of news and analyst coverage for our company;
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•
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a decreased ability for us to issue additional securities or obtain additional financing in the future; and
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•
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limited liquidity for our stockholders due to thin trading.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Consolidated Properties by Region
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||||
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Units/Lots
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Acres
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KW Ownership %
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# of Investments
|
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Residential and Land
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|
|
|
|
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||||
Western U.S.
|
|
71
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|
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2,712
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|
|
97
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%
|
|
4
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|
Europe
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|
—
|
|
|
—
|
|
|
—
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%
|
|
—
|
|
Total Residential and Land
|
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71
|
|
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2,712
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|
|
97
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%
|
|
4
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Consolidated Properties by Region
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|
|
|
|
|
|
|||
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Rooms
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KW Ownership %
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# of Investments
|
|||
Hotel
(1)
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|
|
|
|
|
|
|||
Western U.S.
|
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363
|
|
|
54
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%
|
|
2
|
|
Europe
|
|
611
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|
|
100
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%
|
|
3
|
|
Total Hotel
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974
|
|
|
86.6
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%
|
|
5
|
|
Year of Lease Expiration
|
|
Number of Leases Expiring
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|
Rentable Square Feet
(1)
|
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Annualized Base Rent
(1)
|
|
Expiring Annualized Base Rent as a Percent of Total
|
|||||
2018
|
|
175
|
|
|
0.8
|
|
|
$
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20.3
|
|
|
8
|
%
|
2019
|
|
93
|
|
|
1.6
|
|
|
32.9
|
|
|
13
|
%
|
|
2020
|
|
123
|
|
|
1.3
|
|
|
23.8
|
|
|
9
|
%
|
|
2021
|
|
89
|
|
|
0.7
|
|
|
25.2
|
|
|
10
|
%
|
|
2022
|
|
115
|
|
|
2.1
|
|
|
37.8
|
|
|
15
|
%
|
|
2023
|
|
52
|
|
|
0.5
|
|
|
9.0
|
|
|
3
|
%
|
|
2024
|
|
28
|
|
|
1.0
|
|
|
17.6
|
|
|
7
|
%
|
|
2025
|
|
35
|
|
|
0.5
|
|
|
12.1
|
|
|
5
|
%
|
|
2026
|
|
29
|
|
|
0.6
|
|
|
12.9
|
|
|
5
|
%
|
|
2027
|
|
23
|
|
|
0.4
|
|
|
6.6
|
|
|
3
|
%
|
|
Thereafter
|
|
109
|
|
|
2.8
|
|
|
57.9
|
|
|
22
|
%
|
|
Total
|
|
871
|
|
|
12.3
|
|
|
$
|
256.1
|
|
|
100
|
%
|
Location
|
|
Use
|
|
Approximate
Square Footage
|
|
Lease Expiration
|
|
Beverly Hills, CA
|
|
Corporate Headquarters
|
|
60,000
|
|
|
N/A*
|
London, England
|
|
Regional Office
|
|
4,712
|
|
|
3/3/2023
|
Dublin, Ireland
|
|
Regional Office
|
|
3,380
|
|
|
8/31/18
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
|
Common Stock
|
||||||
High
|
|
Low
|
||||||
Fiscal year 2017
|
|
|
|
|
||||
Quarter ended March 31, 2017
|
|
$
|
22.65
|
|
|
$
|
19.95
|
|
Quarter ended June 30, 2017
|
|
22.65
|
|
|
17.95
|
|
||
Quarter ended September 30, 2017
|
|
20.60
|
|
|
18.10
|
|
||
Quarter ended December 31, 2017
|
|
20.15
|
|
|
17.15
|
|
||
Fiscal year 2016
|
|
|
|
|
||||
Quarter ended March 31, 2016
|
|
24.26
|
|
|
15.74
|
|
||
Quarter ended June 30, 2016
|
|
22.64
|
|
|
17.29
|
|
||
Quarter ended September 30, 2016
|
|
23.77
|
|
|
17.93
|
|
||
Quarter ended December 31, 2016
|
|
23.00
|
|
|
20.00
|
|
Amounts shown in millions
|
|||||||||
Aggregate dividends declared since inception
|
Preferred
|
Common
|
Total
|
||||||
2009
|
$
|
3.2
|
|
$
|
—
|
|
$
|
3.2
|
|
2010
|
4.5
|
|
—
|
|
4.5
|
|
|||
2011
|
8.7
|
|
5.7
|
|
14.4
|
|
|||
2012
|
8.1
|
|
11.7
|
|
19.8
|
|
|||
2013
|
8.1
|
|
21.8
|
|
29.9
|
|
|||
2014
|
8.1
|
|
33.7
|
|
41.8
|
|
|||
2015
|
3.6
|
|
53.3
|
|
56.9
|
|
|||
2016
|
2.8
|
|
63.9
|
|
66.7
|
|
|||
2017
|
—
|
|
87.4
|
|
87.4
|
|
|||
Total
|
$
|
47.1
|
|
$
|
277.5
|
|
$
|
324.6
|
|
Months
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
(1)
|
Maximum Amount that May Yet be Purchased Under the Plan
(1)
|
||||||
January 1 - January 31, 2016
|
—
|
|
$
|
—
|
|
—
|
|
$
|
100,000,000
|
|
February 1 - February 29, 2016
|
—
|
|
—
|
|
—
|
|
100,000,000
|
|
||
March 1 - March 31, 2016
|
240,000
|
|
20.74
|
|
240,000
|
|
95,022,013
|
|
||
April 1 - April 30, 2016
|
—
|
|
—
|
|
240,000
|
|
95,022,013
|
|
||
May 1 - May 31, 2016
|
676,073
|
|
20.22
|
|
916,073
|
|
81,350,503
|
|
||
June 1 - June 30, 2016
|
505,179
|
|
18.53
|
|
1,421,252
|
|
71,990,945
|
|
||
July 1 - July 31, 2016
|
32,585
|
|
18.00
|
|
1,453,837
|
|
71,404,578
|
|
||
August 1 - October 31, 2016
|
—
|
|
—
|
|
1,453,837
|
|
71,404,578
|
|
||
November 1 - November 30, 2016
|
545,768
|
|
22.24
|
|
1,999,605
|
|
59,267,713
|
|
||
December 1 - December 31, 2016
|
440,951
|
|
21.06
|
|
2,440,556
|
|
49,981,041
|
|
||
January 1 - January 31, 2017
|
77,155
|
|
20.00
|
|
2,517,711
|
|
48,438,200
|
|
||
February 1 - October 31, 2017
|
—
|
|
—
|
|
2,517,711
|
|
48,438,200
|
|
||
November 1 - November 30, 2017
|
428,055
|
|
19.22
|
|
2,945,766
|
|
40,212,250
|
|
||
December 1 - December 31, 2017
|
1,140,606
|
|
17.51
|
|
4,086,372
|
|
20,239,515
|
|
||
Total
|
4,086,372
|
|
$
|
19.52
|
|
4,086,372
|
|
$
|
20,239,515
|
|
Item 6.
|
Selected Financial Data
|
(In millions, except per share amounts)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Statements of operations data and
dividends: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
810.6
|
|
|
$
|
703.4
|
|
|
$
|
603.7
|
|
|
$
|
398.6
|
|
|
$
|
123.1
|
|
Net income (loss) to Kennedy-Wilson Holdings Inc. common shareholders
(1)
|
|
100.5
|
|
|
2.8
|
|
|
71.1
|
|
|
13.8
|
|
|
(14.5
|
)
|
|||||
Basic income (loss) per share
|
|
0.83
|
|
|
0.01
|
|
|
0.66
|
|
|
0.14
|
|
|
(0.21
|
)
|
|||||
Dividends declared per share of common stock
|
|
0.70
|
|
|
0.56
|
|
|
0.48
|
|
|
0.36
|
|
|
0.28
|
|
|||||
Adjusted EBITDA
(2)
|
|
455.7
|
|
|
349.9
|
|
|
371.2
|
|
|
317.8
|
|
|
159.1
|
|
|||||
Adjusted EBITDA annual increase (decrease)
|
|
30
|
%
|
|
(6
|
)%
|
|
17
|
%
|
|
100
|
%
|
|
|
||||||
Adjusted Net Income
(2)
|
|
242.5
|
|
|
191.3
|
|
|
208.2
|
|
|
133.7
|
|
|
61.1
|
|
|||||
Adjusted Net Income annual increase (decrease)
|
|
26.8
|
%
|
|
(8.1
|
)%
|
|
55.7
|
%
|
|
118.8
|
%
|
|
|
||||||
Adjusted Fees
(2)
|
|
86.6
|
|
|
108.9
|
|
|
158.2
|
|
|
121.0
|
|
|
72.4
|
|
|||||
Adjusted Fees annual (decrease) increase
|
|
(20
|
)%
|
|
(31
|
)%
|
|
31
|
%
|
|
67
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
As of December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Balance sheet data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
351.3
|
|
|
$
|
885.7
|
|
|
$
|
731.6
|
|
|
$
|
937.7
|
|
|
$
|
178.2
|
|
Total assets
|
|
7,724.8
|
|
|
7,656.6
|
|
|
7,595.6
|
|
|
6,297.6
|
|
|
1,786.8
|
|
|||||
Mortgage debt
|
|
3,156.6
|
|
|
2,770.4
|
|
|
2,772.5
|
|
|
2,175.7
|
|
|
400.2
|
|
|||||
KW unsecured debt
|
|
1,179.4
|
|
|
934.1
|
|
|
688.8
|
|
|
813.1
|
|
|
438.6
|
|
|||||
KWE unsecured bonds
|
|
1,325.9
|
|
|
1,185.7
|
|
|
855.0
|
|
|
—
|
|
|
—
|
|
|||||
Kennedy Wilson equity
|
|
1,365.6
|
|
|
1,048.0
|
|
|
1,133.8
|
|
|
901.1
|
|
|
768.3
|
|
|||||
Noncontrolling interests
|
|
211.9
|
|
|
1,295.1
|
|
|
1,731.3
|
|
|
2,142.8
|
|
|
50.6
|
|
|||||
Total equity
|
|
1,577.5
|
|
|
2,343.1
|
|
|
2,865.1
|
|
|
3,043.9
|
|
|
818.9
|
|
|||||
Common shares outstanding
|
|
151.6
|
|
|
115.7
|
|
|
114.5
|
|
|
96.1
|
|
|
82.6
|
|
(in millions)
|
December 31, 2016
|
|
Increases
|
|
Decreases
|
|
December 31, 2017
|
|
||||
IMRES AUM
|
$
|
17,171.3
|
|
$
|
2,380.7
|
|
$
|
(3,822.6
|
)
|
$
|
15,729.4
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
Year Ended
December 31, 2017
|
||||||||||||||
(Dollars in millions)
|
|
Investments
|
|
IMRES
|
|
Corporate
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Rental
|
|
$
|
504.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
504.7
|
|
Hotel
|
|
127.5
|
|
|
—
|
|
|
—
|
|
|
127.5
|
|
||||
Sale of real estate
|
|
111.5
|
|
|
—
|
|
|
—
|
|
|
111.5
|
|
||||
Investment management, property services and research fees
|
|
—
|
|
|
51.7
|
|
|
—
|
|
|
51.7
|
|
||||
Loan purchases, loan originations, and other
|
|
15.2
|
|
|
—
|
|
|
—
|
|
|
15.2
|
|
||||
Revenue
|
|
758.9
|
|
|
51.7
|
|
|
—
|
|
|
810.6
|
|
||||
Operating expenses
|
|
(433.8
|
)
|
|
(54.3
|
)
|
|
(70.2
|
)
|
|
(558.3
|
)
|
||||
Depreciation and amortization
|
|
(212.2
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
(212.5
|
)
|
||||
Income from unconsolidated investments, net of depreciation and amortization
|
|
66.4
|
|
|
2.6
|
|
|
—
|
|
|
69.0
|
|
||||
Operating income (expense)
|
|
179.3
|
|
|
(0.3
|
)
|
|
(70.2
|
)
|
|
108.8
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of real estate
|
|
226.7
|
|
|
—
|
|
|
—
|
|
|
226.7
|
|
||||
Acquisition - related expenses
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
||||
Interest expense
|
|
(145.6
|
)
|
|
—
|
|
|
(72.1
|
)
|
|
(217.7
|
)
|
||||
Other non-operating (expenses) income
|
|
(5.1
|
)
|
|
—
|
|
|
13.4
|
|
|
8.3
|
|
||||
(Provision for) benefit from income taxes
|
|
(4.8
|
)
|
|
—
|
|
|
21.1
|
|
|
16.3
|
|
||||
Total non-operating income (loss)
|
|
66.8
|
|
|
—
|
|
|
(37.6
|
)
|
|
29.2
|
|
||||
Net income (loss)
|
|
246.1
|
|
|
(0.3
|
)
|
|
(107.8
|
)
|
|
138.0
|
|
||||
Add back (less):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
145.6
|
|
|
—
|
|
|
72.1
|
|
|
217.7
|
|
||||
Kennedy Wilson's share of interest expense included in unconsolidated investments
|
|
22.5
|
|
|
0.5
|
|
|
|
|
|
23.0
|
|
||||
Depreciation and amortization
|
|
212.2
|
|
|
0.3
|
|
|
—
|
|
|
212.5
|
|
||||
Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments
|
|
13.5
|
|
|
2.7
|
|
|
|
|
|
16.2
|
|
||||
(Provision for) benefit from income taxes
|
|
4.8
|
|
|
—
|
|
|
(21.1
|
)
|
|
(16.3
|
)
|
||||
Fees eliminated in consolidation
|
|
(26.9
|
)
|
|
26.9
|
|
|
—
|
|
|
—
|
|
||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
38.4
|
|
|
38.4
|
|
||||
EBITDA attributable to noncontrolling interests
(2)
|
|
(173.8
|
)
|
|
—
|
|
|
—
|
|
|
(173.8
|
)
|
||||
Adjusted EBITDA
(1)
|
|
$
|
444.0
|
|
|
$
|
30.1
|
|
|
$
|
(18.4
|
)
|
|
$
|
455.7
|
|
|
|
Year Ended
December 31, 2016
|
||||||||||||||
(Dollars in millions)
|
|
Investments
|
|
IMRES
|
|
Corporate
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Rental
|
|
$
|
485.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
485.9
|
|
Hotel
|
|
116.2
|
|
|
—
|
|
|
—
|
|
|
116.2
|
|
||||
Sale of real estate
|
|
29.3
|
|
|
—
|
|
|
—
|
|
|
29.3
|
|
||||
Investment management, property services and research fees
|
|
—
|
|
|
59.4
|
|
|
—
|
|
|
59.4
|
|
||||
Loan purchases, loan originations, and other
|
|
12.6
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
||||
Revenue
|
|
644.0
|
|
|
59.4
|
|
|
—
|
|
|
703.4
|
|
||||
Operating expenses
|
|
(345.2
|
)
|
|
(54.9
|
)
|
|
(93.6
|
)
|
|
(493.7
|
)
|
||||
Depreciation and amortization
|
|
(197.4
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(198.2
|
)
|
||||
Income from unconsolidated investments, net of depreciation and amortization
|
|
122.8
|
|
|
3.8
|
|
|
—
|
|
|
126.6
|
|
||||
Operating income (loss)
|
|
224.2
|
|
|
7.5
|
|
|
(93.6
|
)
|
|
138.1
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of real estate
|
|
130.7
|
|
|
—
|
|
|
—
|
|
|
130.7
|
|
||||
Acquisition - related gains
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
16.2
|
|
||||
Acquisition - related expenses
|
|
(9.5
|
)
|
|
—
|
|
|
—
|
|
|
(9.5
|
)
|
||||
Interest expense
|
|
(137.4
|
)
|
|
—
|
|
|
(54.2
|
)
|
|
(191.6
|
)
|
||||
Other non-operating expenses
|
|
(1.2
|
)
|
|
—
|
|
|
7.8
|
|
|
6.6
|
|
||||
Provision for income taxes
|
|
5.0
|
|
|
—
|
|
|
(19.0
|
)
|
|
(14.0
|
)
|
||||
Total non-operating income (loss)
|
|
3.8
|
|
|
—
|
|
|
(65.4
|
)
|
|
(61.6
|
)
|
||||
Net income (loss)
|
|
228.0
|
|
|
7.5
|
|
|
(159.0
|
)
|
|
76.5
|
|
||||
Add back (less):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
137.4
|
|
|
—
|
|
|
54.2
|
|
|
191.6
|
|
||||
Kennedy Wilson's share of interest expense included in unconsolidated investments
|
|
22.1
|
|
|
0.9
|
|
|
—
|
|
|
23.0
|
|
||||
Depreciation and amortization
|
|
198.2
|
|
|
—
|
|
|
—
|
|
|
198.2
|
|
||||
Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments
|
|
17.2
|
|
|
3.6
|
|
|
—
|
|
|
20.8
|
|
||||
Provision for income taxes
|
|
(5.0
|
)
|
|
—
|
|
|
19.0
|
|
|
14.0
|
|
||||
Fees eliminated in consolidation
|
|
(36.9
|
)
|
|
36.9
|
|
|
—
|
|
|
—
|
|
||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
65.1
|
|
|
65.1
|
|
||||
EBITDA attributable to noncontrolling interests
(2)
|
|
(239.3
|
)
|
|
—
|
|
|
—
|
|
|
(239.3
|
)
|
||||
Adjusted EBITDA
(1)
|
|
$
|
321.7
|
|
|
$
|
48.9
|
|
|
$
|
(20.7
|
)
|
|
$
|
349.9
|
|
|
|
Year Ended
December 31, 2015 |
||||||||||||||
(Dollars in millions)
|
|
Investments
|
|
IMRES
|
|
Corporate
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Rental
|
|
$
|
404.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
404.8
|
|
Hotel
|
|
106.4
|
|
|
—
|
|
|
—
|
|
|
106.4
|
|
||||
Sale of real estate
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
||||
Investment management, property services and research fees
|
|
—
|
|
|
69.3
|
|
|
—
|
|
|
69.3
|
|
||||
Loan purchases, loan originations, and other
|
|
19.5
|
|
|
—
|
|
|
—
|
|
|
19.5
|
|
||||
Revenue
|
|
534.4
|
|
|
69.3
|
|
|
—
|
|
|
603.7
|
|
||||
Operating expenses
|
|
(283.3
|
)
|
|
(69.7
|
)
|
|
(53.4
|
)
|
|
(406.4
|
)
|
||||
Depreciation and amortization
|
|
(165.5
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(166.3
|
)
|
||||
Income from unconsolidated investments, net of depreciation and amortization
|
|
93.6
|
|
|
3.8
|
|
|
—
|
|
|
97.4
|
|
||||
Operating income (loss)
|
|
179.2
|
|
|
2.6
|
|
|
(53.4
|
)
|
|
128.4
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of real estate
|
|
72.4
|
|
|
—
|
|
|
—
|
|
|
72.4
|
|
||||
Acquisition - related gains
|
|
108.1
|
|
|
—
|
|
|
—
|
|
|
108.1
|
|
||||
Acquisition - related expenses
|
|
(37.3
|
)
|
|
—
|
|
|
—
|
|
|
(37.3
|
)
|
||||
Interest expense
|
|
(108.8
|
)
|
|
—
|
|
|
(46.9
|
)
|
|
(155.7
|
)
|
||||
Loss on extinguishment of corporate debt
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||
Other non-operating expenses
|
|
(2.5
|
)
|
|
|
|
—
|
|
|
(2.5
|
)
|
|||||
Provision for income taxes
|
|
(23.4
|
)
|
|
—
|
|
|
(30.0
|
)
|
|
(53.4
|
)
|
||||
Total non-operating income (loss)
|
|
8.5
|
|
|
—
|
|
|
(77.9
|
)
|
|
(69.4
|
)
|
||||
Net income (loss)
|
|
187.7
|
|
|
2.6
|
|
|
(131.3
|
)
|
|
59.0
|
|
||||
Add back (less):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
108.8
|
|
|
—
|
|
|
46.9
|
|
|
155.7
|
|
||||
Early extinguishment of corporate debt
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
Kennedy Wilson's share of interest expense included in unconsolidated investments
|
|
27.0
|
|
|
1.1
|
|
|
—
|
|
|
28.1
|
|
||||
Depreciation and amortization
|
|
166.3
|
|
|
—
|
|
|
—
|
|
|
166.3
|
|
||||
Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments
|
|
25.2
|
|
|
2.9
|
|
|
—
|
|
|
28.1
|
|
||||
Provision for income taxes
|
|
23.4
|
|
|
—
|
|
|
30.0
|
|
|
53.4
|
|
||||
Fees eliminated in consolidation
|
|
(75.0
|
)
|
|
75.0
|
|
|
—
|
|
|
—
|
|
||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|
30.8
|
|
||||
EBITDA attributable to noncontrolling interests
(2)
|
|
(151.6
|
)
|
|
0.4
|
|
|
—
|
|
|
(151.2
|
)
|
||||
Adjusted EBITDA
(1)
|
|
$
|
311.8
|
|
|
$
|
82.0
|
|
|
$
|
(22.6
|
)
|
|
$
|
371.2
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||
|
|
Investments
|
|
Investment Management and Real Estate Services
|
|
Total
|
||||||||||||
Revenues
|
|
$
|
26.6
|
|
3
|
%
|
|
$
|
0.3
|
|
—
|
%
|
|
$
|
26.9
|
|
3
|
%
|
Net Income
|
|
4.3
|
|
4
|
%
|
|
0.2
|
|
—
|
%
|
|
4.5
|
|
4
|
%
|
|||
Adjusted EBITDA
|
|
9.2
|
|
2
|
%
|
|
0.9
|
|
—
|
%
|
|
10.1
|
|
2
|
%
|
•
|
investment management, including acquisition, asset management and disposition services. Fees earned from consolidated investments, for example KWE prior the KWE Transaction, are eliminated in consolidation with the amount relating to our equity partners being recognized through income attributable to noncontrolling interests;
|
•
|
property services, including management of commercial real estate for third-party clients, fund investors, and investments held by Kennedy Wilson;
|
•
|
research, including consulting practice and data and analytics for the residential real estate development and new home construction industry;
|
•
|
auction and conventional sales, including innovative marketing and sales strategies for all types of commercial and residential real estate, including single family homes, mixed-use developments, estate homes, multifamily dwellings, new home projects, conversions and scattered properties; and
|
•
|
brokerage services, including innovative marketing programs tailored to client objectives for all types of investment grade and income producing real estate.
|
|
|
Year Ended
|
||||||
|
|
December 31,
|
||||||
(dollars in millions)
|
|
2017
|
|
2016
|
||||
Investment management, property services and research fees
|
|
$
|
51.7
|
|
|
$
|
59.4
|
|
Non-GAAP adjustments:
|
|
|
|
|
||||
Add back:
|
|
|
|
|
||||
Fees eliminated in consolidation
(1)
|
|
26.3
|
|
|
36.9
|
|
||
Kennedy Wilson's share of fees in unconsolidated service businesses
|
|
8.6
|
|
|
12.6
|
|
||
Adjusted Fees
(2)
|
|
$
|
86.6
|
|
|
$
|
108.9
|
|
|
|
Year Ended
|
||||||
(dollars in millions)
|
|
December 31,
|
||||||
Fee Description
|
|
2017
|
|
2016
|
||||
Property Services
|
|
$
|
28.9
|
|
|
$
|
36.3
|
|
Research
|
|
12.4
|
|
|
11.4
|
|
||
Investment Management - Base
|
|
35.7
|
|
|
41.1
|
|
||
Investment Management - Performance
|
|
8.7
|
|
|
19.8
|
|
||
Investment Management - Acquisition / Disposition
|
|
0.9
|
|
|
0.3
|
|
||
Investment Management - Total
|
|
45.3
|
|
|
61.2
|
|
||
Total Adjusted Fees
(1)
|
|
$
|
86.6
|
|
|
$
|
108.9
|
|
|
|
Year Ended December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Operating performance
|
|
$
|
13.8
|
|
|
$
|
7.7
|
|
Realized gains
|
|
14.0
|
|
|
59.0
|
|
||
Equity in joint venture income - fair value
|
|
38.6
|
|
|
56.6
|
|
||
Interest (loss) income recognized
(1)
|
|
—
|
|
|
(0.5
|
)
|
||
|
|
$
|
66.4
|
|
|
$
|
122.8
|
|
(Dollars in millions)
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Unrealized foreign currency translation gain (loss), net of noncontrolling interests and tax
|
$
|
48.9
|
|
|
$
|
(32.5
|
)
|
Amounts reclassified out of accumulated other comprehensive income during the period
|
2.0
|
|
|
3.4
|
|
||
Unrealized foreign currency derivative contract (losses) gains, net of noncontrolling interests and tax
|
(48.6
|
)
|
|
5.5
|
|
||
Unrealized gains on marketable securities, net of noncontrolling interests and tax
|
0.2
|
|
|
0.1
|
|
||
Other comprehensive loss
|
2.5
|
|
|
(23.5
|
)
|
||
Realized foreign currency exchange gain - consolidated statements of operations
|
24.2
|
|
|
(2.5
|
)
|
||
Realized foreign currency derivative contract (loss) gain - consolidated statements of operations
|
(10.8
|
)
|
|
7.8
|
|
||
Comprehensive loss - foreign exchange
|
$
|
15.9
|
|
|
$
|
(18.2
|
)
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||
|
|
Investments
|
|
Investment Management and Real Estate Services
|
|
Total
|
||||||||||||
Revenues
|
|
$
|
(28.8
|
)
|
(4
|
)%
|
|
$
|
—
|
|
—
|
%
|
|
$
|
(28.8
|
)
|
(4
|
)%
|
Net Income
|
|
(2.1
|
)
|
(75
|
)%
|
|
(1.5
|
)
|
(53
|
)%
|
|
(3.6
|
)
|
(128
|
)%
|
|||
Adjusted EBITDA
|
|
(5.3
|
)
|
(2
|
)%
|
|
(1.4
|
)
|
—
|
%
|
|
(6.7
|
)
|
(2
|
)%
|
•
|
investment management, including acquisition, asset management and disposition services;
|
•
|
property services, including management of commercial real estate for third-party clients, fund investors, and investments held by KW;
|
•
|
research, including consulting practice and data and analytics for the residential real estate development and new home construction industry;
|
•
|
auction and conventional sales, including innovative marketing and sales strategies for all types of commercial and residential real estate, including single family homes, mixed-use developments, estate homes, multifamily dwellings, new home projects, conversions and scattered properties; and
|
•
|
brokerage services, including innovative marketing programs tailored to client objectives for all types of investment grade and income producing real estate.
|
|
|
Year Ended
|
||||||
|
|
December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Investment management, property services and research fees
|
|
$
|
59.4
|
|
|
$
|
69.3
|
|
Non-GAAP adjustments:
|
|
|
|
|
||||
Add back:
|
|
|
|
|
||||
Fees eliminated in consolidation
(1)
|
|
36.9
|
|
|
75.0
|
|
||
Kennedy Wilson's share of fees in unconsolidated service businesses
|
|
12.6
|
|
|
13.9
|
|
||
Adjusted Fees
(2)
|
|
$
|
108.9
|
|
|
$
|
158.2
|
|
|
|
Year Ended
|
||||||
|
|
December 31,
|
||||||
Fee Description
|
|
2016
|
|
2015
|
||||
Property Services
|
|
$
|
36.3
|
|
|
$
|
39.3
|
|
Research
|
|
11.4
|
|
|
9.2
|
|
||
Investment Management - Base
|
|
41.1
|
|
|
44.0
|
|
||
Investment Management - Performance
|
|
19.8
|
|
|
62.5
|
|
||
Investment Management - Acquisition / Disposition
|
|
0.3
|
|
|
3.2
|
|
||
Investment Management - Total
|
|
61.2
|
|
|
109.7
|
|
||
Total Adjusted Fees
(1)
|
|
$
|
108.9
|
|
|
$
|
158.2
|
|
|
|
Year Ended December 31,
|
||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
||||
Operating performance
|
|
$
|
7.7
|
|
|
$
|
7.8
|
|
Realized gains
|
|
59.0
|
|
|
46.6
|
|
||
Equity in joint venture income - fair value
|
|
56.6
|
|
|
34.9
|
|
||
Interest (loss) income recognized
(1)
|
|
(0.5
|
)
|
|
4.3
|
|
||
|
|
$
|
122.8
|
|
|
$
|
93.6
|
|
(Dollars in millions)
|
Year Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
Unrealized foreign currency translation loss, net of noncontrolling interests and tax
|
$
|
(32.5
|
)
|
|
$
|
(46.3
|
)
|
Amounts reclassified out of accumulated other comprehensive income during the period
|
3.4
|
|
|
9.7
|
|
||
Unrealized foreign currency derivative contract gains, net of noncontrolling interests and tax
|
5.5
|
|
|
17.0
|
|
||
Unrealized losses on marketable securities, net of noncontrolling interests tax
|
0.1
|
|
|
0.1
|
|
||
Other comprehensive loss
|
(23.5
|
)
|
|
(19.5
|
)
|
||
Realized foreign currency exchange loss - consolidated statements of operations
|
(2.5
|
)
|
|
(0.5
|
)
|
||
Realized foreign currency derivative contract gain - consolidated statements of operations
|
7.8
|
|
|
2.9
|
|
||
Comprehensive loss - foreign exchange
|
$
|
(18.2
|
)
|
|
$
|
(17.1
|
)
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net cash provided by operating activities
|
$
|
73.0
|
|
|
$
|
102.9
|
|
|
$
|
178.2
|
|
Net cash used in investing activities
|
(70.2
|
)
|
|
(286.7
|
)
|
|
(1,483.6
|
)
|
|||
Net cash (used in) provided by financing activities
|
(565.3
|
)
|
|
419.8
|
|
|
1,118.8
|
|
|
|
Payments due by period
|
||||||||||||||||||
(Dollars in millions)
|
|
Total
|
|
Less than
1 year
|
|
1 - 3 years
|
|
4 - 5 years
|
|
After 5 years
|
||||||||||
Contractual obligations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings:
(1)(4)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage debt
(2)(4)
|
|
$
|
3,178.1
|
|
|
$
|
67.7
|
|
|
$
|
680.2
|
|
|
$
|
886.9
|
|
|
$
|
1,543.3
|
|
Senior notes
(3)(4)
|
|
900.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
900.0
|
|
|||||
Credit Facility
(4)
|
|
300.0
|
|
|
—
|
|
|
300.0
|
|
|
—
|
|
|
—
|
|
|||||
KWE unsecured bonds
(4)(5)
|
|
1,335.6
|
|
|
—
|
|
|
—
|
|
|
675.8
|
|
|
659.8
|
|
|||||
Total borrowings
|
|
5,713.7
|
|
|
67.7
|
|
|
980.2
|
|
|
1,562.7
|
|
|
3,103.1
|
|
|||||
Operating leases
|
|
9.7
|
|
|
2.8
|
|
|
5.3
|
|
|
1.6
|
|
|
—
|
|
|||||
Total contractual cash obligations
|
|
$
|
5,723.4
|
|
|
$
|
70.5
|
|
|
$
|
985.5
|
|
|
$
|
1,564.3
|
|
|
$
|
3,103.1
|
|
(1)
|
See Notes 8-11 of our Notes to Consolidated Financial Statements. Figures do not include scheduled interest payments. Assuming each debt obligation is held until maturity, we estimate that we will make the following interest payments: Less than 1 year-
$196.6
million; 1-3 years-
$548.2
million; 4-5 years-
$291.5
million; After 5 years:
$164.6
million. The interest payments on variable rate debt have been calculated at the interest rate in effect as of
December 31, 2017
.
|
(2)
|
Excludes
$2.4 million
net unamortized debt premium on mortgage debt.
|
(3)
|
Excludes
$1.9 million
unamortized debt discount on senior notes.
|
(4)
|
Excludes
$48.0 million
unamortized loan fees.
|
(5)
|
Excludes
$4.3 million
net unamortized discount on KWE unsecured bonds.
|
|
|
Payments due by period
|
||||||||||||||||||
(Dollars in millions)
|
|
Total
|
|
Less than
1 year
|
|
1 - 3 years
|
|
4 - 5 years
|
|
After 5 years
|
||||||||||
Contractual obligations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings:
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage debt
|
|
$
|
2,896.2
|
|
|
$
|
62.7
|
|
|
$
|
601.1
|
|
|
$
|
876.8
|
|
|
$
|
1,355.6
|
|
Senior notes
(2)
|
|
900.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
900.0
|
|
|||||
Credit Facility
|
|
300.0
|
|
|
—
|
|
|
300.0
|
|
|
—
|
|
|
—
|
|
|||||
KWE unsecured bonds
(3)
|
|
1,335.6
|
|
|
—
|
|
|
—
|
|
|
675.8
|
|
|
659.8
|
|
|||||
Total borrowings
|
|
5,431.8
|
|
|
62.7
|
|
|
901.1
|
|
|
1,552.6
|
|
|
2,915.4
|
|
|||||
Operating leases
|
|
9.7
|
|
|
2.8
|
|
|
5.3
|
|
|
1.6
|
|
|
—
|
|
|||||
Total contractual cash obligations
|
|
$
|
5,441.5
|
|
|
$
|
65.5
|
|
|
$
|
906.4
|
|
|
$
|
1,554.2
|
|
|
$
|
2,915.4
|
|
(1)
|
See Notes 8-11 of our Notes to Consolidated Financial Statements. Figures do not include scheduled interest payments.
|
(2)
|
Excludes
$1.9 million
net unamortized debt discount on senior notes.
|
(3)
|
Excludes
$4.3 million
net unamortized discount on KWE unsecured bonds.
|
•
|
the special purpose property-owning subsidiary’s filing a voluntary petition for bankruptcy;
|
•
|
the special purpose property-owning subsidiary’s failure to maintain its status as a special purpose entity; and
|
•
|
subject to certain conditions, the special purpose property-owning subsidiary’s failure to obtain lender’s written consent prior to any subordinate financing or other voluntary lien encumbering the associated property.
|
|
|
Principal Maturing in:
|
|
|
|
Fair Value
|
||||||||||||||||||||||||||
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
|
December 31, 2017
|
||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||
Interest rate sensitive assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash equivalents
|
|
$
|
351.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
351.3
|
|
|
$
|
351.3
|
|
Average interest rate
|
|
0.02
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.02
|
%
|
|
—
|
|
||||||||
Fixed rate receivables
|
|
68.9
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73.4
|
|
|
73.4
|
|
||||||||
Average interest rate
(1)
|
|
6.00
|
%
|
|
5.00
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.22
|
%
|
|
—
|
|
||||||||
Variable rate receivables
|
|
11.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.3
|
|
|
11.3
|
|
||||||||
Average interest rate
|
|
3.53
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.53
|
%
|
|
—
|
|
||||||||
Total
|
|
$
|
431.5
|
|
|
$
|
4.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
436.0
|
|
|
$
|
436.0
|
|
Weighted average interest rate
(1)
|
|
0.15
|
%
|
|
5.00
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.22
|
%
|
|
|
|
||||||||
Interest rate sensitive liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Variable rate borrowings
|
|
$
|
35.9
|
|
|
$
|
260.4
|
|
|
$
|
37.4
|
|
|
$
|
401.1
|
|
|
$
|
384.1
|
|
|
$
|
371.0
|
|
|
$
|
1,489.9
|
|
|
$
|
1,508.3
|
|
Average interest rate
|
|
2.68
|
%
|
|
2.66
|
%
|
|
2.95
|
%
|
|
3.59
|
%
|
|
1.98
|
%
|
|
2.15
|
%
|
|
2.61
|
%
|
|
—
|
|
||||||||
Fixed rate borrowings
|
|
53.9
|
|
|
53.3
|
|
|
114.3
|
|
|
46.3
|
|
|
688.7
|
|
|
3,267.3
|
|
|
4,223.8
|
|
|
4,285.7
|
|
||||||||
Average interest rate
|
|
4.14
|
%
|
|
4.23
|
%
|
|
3.14
|
%
|
|
4.85
|
%
|
|
3.96
|
%
|
|
4.05
|
%
|
|
4.02
|
%
|
|
—
|
|
||||||||
Total
|
|
$
|
89.8
|
|
|
$
|
313.7
|
|
|
$
|
151.7
|
|
|
$
|
447.4
|
|
|
$
|
1,072.8
|
|
|
$
|
3,638.3
|
|
|
$
|
5,713.7
|
|
|
$
|
5,794.0
|
|
Weighted average interest rate
|
|
3.55
|
%
|
|
2.92
|
%
|
|
3.09
|
%
|
|
3.72
|
%
|
|
3.25
|
%
|
|
3.86
|
%
|
|
3.66
|
%
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Net income
|
|
$
|
138.0
|
|
|
$
|
76.5
|
|
|
$
|
59.0
|
|
|
$
|
90.1
|
|
|
$
|
13.9
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
217.7
|
|
|
191.6
|
|
|
155.7
|
|
|
103.4
|
|
|
51.7
|
|
|||||
Early extinguishment of corporate debt
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
27.3
|
|
|
—
|
|
|||||
Kennedy Wilson's share of interest expense included in investment
in unconsolidated investments |
|
23.0
|
|
|
23.0
|
|
|
28.1
|
|
|
35.5
|
|
|
45.0
|
|
|||||
Depreciation and amortization
|
|
212.5
|
|
|
198.2
|
|
|
166.3
|
|
|
104.5
|
|
|
17.4
|
|
|||||
Kennedy Wilson's share of depreciation and amortization included
in unconsolidated investments |
|
16.2
|
|
|
20.8
|
|
|
28.1
|
|
|
47.1
|
|
|
46.7
|
|
|||||
Provision for (benefit from) income taxes
|
|
(16.3
|
)
|
|
14.0
|
|
|
53.4
|
|
|
32.4
|
|
|
2.9
|
|
|||||
Share-based compensation
|
|
38.4
|
|
|
65.1
|
|
|
30.8
|
|
|
15.8
|
|
|
7.5
|
|
|||||
EBITDA attributable to noncontrolling interests
(1)
|
|
(173.8
|
)
|
|
(239.3
|
)
|
|
(151.2
|
)
|
|
(138.3
|
)
|
|
(26.0
|
)
|
|||||
Adjusted EBITDA
(2)
|
|
$
|
455.7
|
|
|
$
|
349.9
|
|
|
$
|
371.2
|
|
|
$
|
317.8
|
|
|
$
|
159.1
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Net income
|
|
$
|
138.0
|
|
|
$
|
76.5
|
|
|
$
|
59.0
|
|
|
$
|
90.1
|
|
|
$
|
13.9
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
|
212.5
|
|
|
198.2
|
|
|
166.3
|
|
|
104.5
|
|
|
17.4
|
|
|||||
Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments
|
|
16.2
|
|
|
20.8
|
|
|
28.1
|
|
|
47.1
|
|
|
46.7
|
|
|||||
Share-based compensation
|
|
38.4
|
|
|
65.1
|
|
|
30.8
|
|
|
15.8
|
|
|
7.5
|
|
|||||
Net income attributable to the noncontrolling interests, before depreciation and amortization
(1)
|
|
(117.8
|
)
|
|
(169.3
|
)
|
|
(76.0
|
)
|
|
(123.8
|
)
|
|
(24.4
|
)
|
|||||
One-time tax remeasurement
|
|
(44.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Adjusted Net Income
(2)
|
|
$
|
242.5
|
|
|
$
|
191.3
|
|
|
$
|
208.2
|
|
|
$
|
133.7
|
|
|
$
|
61.1
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Investment management, property services and research fees
(1)
|
$
|
51.7
|
|
|
$
|
59.4
|
|
|
$
|
69.3
|
|
|
$
|
82.6
|
|
|
$
|
68.1
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Fees eliminated in consolidation
|
26.3
|
|
|
36.9
|
|
|
75.0
|
|
|
21.6
|
|
|
4.3
|
|
|||||
Kennedy Wilson's share of fees in unconsolidated service businesses
|
8.6
|
|
|
12.6
|
|
|
13.9
|
|
|
16.8
|
|
|
—
|
|
|||||
Adjusted Fees
|
$
|
86.6
|
|
|
$
|
108.9
|
|
|
$
|
158.2
|
|
|
$
|
121.0
|
|
|
$
|
72.4
|
|
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||
|
|
Same Property
|
|
Same Property
|
||||||||||||
(dollars in millions)
|
|
Revenue
|
|
NOI
|
|
Revenue
|
|
NOI
|
||||||||
Operating Income
|
|
$
|
108.8
|
|
|
$
|
108.8
|
|
|
$
|
138.1
|
|
|
$
|
138.1
|
|
Less
: Sale of real estate
|
|
(111.5
|
)
|
|
(111.5
|
)
|
|
(29.3
|
)
|
|
(29.3
|
)
|
||||
Less:
Investment management, property services and research fees
|
|
(51.7
|
)
|
|
(51.7
|
)
|
|
(59.4
|
)
|
|
(59.4
|
)
|
||||
Less:
Loans and other income
|
|
(15.2
|
)
|
|
(15.2
|
)
|
|
(12.6
|
)
|
|
(12.6
|
)
|
||||
Add
: Rental operating
|
|
151.2
|
|
|
—
|
|
|
135.4
|
|
|
—
|
|
||||
Add
: Hotel operating
|
|
100.3
|
|
|
—
|
|
|
96.3
|
|
|
—
|
|
||||
Add:
Cost of real estate sold
|
|
80.2
|
|
|
80.2
|
|
|
22.1
|
|
|
22.1
|
|
||||
Add:
Commission and marketing
|
|
7.2
|
|
|
7.2
|
|
|
8.0
|
|
|
8.0
|
|
||||
Add
: Compensation and related
|
|
177.2
|
|
|
177.2
|
|
|
186.5
|
|
|
186.5
|
|
||||
Add:
General and administrative
|
|
42.2
|
|
|
42.2
|
|
|
45.4
|
|
|
45.4
|
|
||||
Add:
Depreciation and amortization
|
|
212.5
|
|
|
212.5
|
|
|
198.2
|
|
|
198.2
|
|
||||
Less:
Income from unconsolidated investments
|
|
(69.0
|
)
|
|
(69.0
|
)
|
|
(126.6
|
)
|
|
(126.6
|
)
|
||||
Property-Level (Consolidated)
|
|
$
|
632.2
|
|
|
$
|
380.7
|
|
|
$
|
602.1
|
|
|
$
|
370.4
|
|
Less:
NCI adjustments
(1)
|
|
(50.2
|
)
|
|
(18.3
|
)
|
|
(47.7
|
)
|
|
(18.6
|
)
|
||||
Add:
Unconsolidated investment adjustments
(2)
|
|
58.5
|
|
|
39.3
|
|
|
55.8
|
|
|
37.0
|
|
||||
Add:
Straight-line and above/below market rents
|
|
(10.2
|
)
|
|
(10.2
|
)
|
|
(7.1
|
)
|
|
(7.1
|
)
|
||||
Less:
Reimbursement of recoverable operating expenses
|
|
(27.6
|
)
|
|
—
|
|
|
(27.9
|
)
|
|
—
|
|
||||
Less:
Properties bought and sold
(3)
|
|
(93.2
|
)
|
|
(64.7
|
)
|
|
(78.5
|
)
|
|
(58.1
|
)
|
||||
Less:
Other properties excluded
(4)
|
|
(36.8
|
)
|
|
(16.3
|
)
|
|
(41.2
|
)
|
|
(25.1
|
)
|
||||
Other Reconciling Items
(5)
|
|
1.6
|
|
|
4.9
|
|
|
0.3
|
|
|
7.5
|
|
||||
Same Property
|
|
$
|
474.3
|
|
|
$
|
315.4
|
|
|
$
|
455.8
|
|
|
$
|
306.0
|
|
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||
|
|
Same Property
|
|
Same Property
|
||||||||||||
Same Property (Reported)
|
|
Revenue
|
|
NOI
|
|
Revenue
|
|
NOI
|
||||||||
Commercial - Same Property
|
|
$
|
186.9
|
|
|
$
|
169.5
|
|
|
$
|
187.4
|
|
|
$
|
172.7
|
|
Multifamily Market Rate Portfolio - Same Property
|
|
151.8
|
|
|
102.3
|
|
|
143.3
|
|
|
95.8
|
|
||||
Multifamily Affordable Portfolio - Same Property
|
|
27.3
|
|
|
18.2
|
|
|
26.1
|
|
|
17.2
|
|
||||
Hotel - Same Property
|
|
108.3
|
|
|
25.4
|
|
|
99.0
|
|
|
20.3
|
|
||||
Same Property
|
|
$
|
474.3
|
|
|
$
|
315.4
|
|
|
$
|
455.8
|
|
|
$
|
306.0
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
|
Page
|
Kennedy-Wilson Holdings, Inc.:
|
|
|
|
||
|
||
Financial Statements
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Financial Statement Schedules
|
|
|
|
||
|
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
351.3
|
|
|
$
|
885.7
|
|
Accounts receivable (including $5.2 and $3.0 of related party)
|
|
62.7
|
|
|
44.0
|
|
||
Loan purchases and originations
|
|
84.7
|
|
|
87.7
|
|
||
Real estate and acquired in place lease values (net of accumulated depreciation and amortization of $552.2 and $374.3)
|
|
6,443.7
|
|
|
5,814.2
|
|
||
Unconsolidated investments (including $346.1 and $329.4 at fair value)
|
|
486.4
|
|
|
555.6
|
|
||
Other assets
|
|
296.0
|
|
|
269.4
|
|
||
Total assets
(1)
|
|
$
|
7,724.8
|
|
|
$
|
7,656.6
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
19.5
|
|
|
$
|
11.2
|
|
Accrued expenses and other liabilities
|
|
465.9
|
|
|
412.1
|
|
||
Mortgage debt
|
|
3,156.6
|
|
|
2,770.4
|
|
||
KW unsecured debt
|
|
1,179.4
|
|
|
934.1
|
|
||
KWE unsecured bonds
|
|
1,325.9
|
|
|
1,185.7
|
|
||
Total liabilities
(1)
|
|
6,147.3
|
|
|
5,313.5
|
|
||
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Common Stock, 151,561,284 and 115,740,906 shares issued outstanding as of December 31, 2017 and December 31, 2016
|
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
|
1,883.3
|
|
|
1,231.4
|
|
||
Accumulated deficit
|
|
(90.6
|
)
|
|
(112.2
|
)
|
||
Accumulated other comprehensive loss
|
|
(427.1
|
)
|
|
(71.2
|
)
|
||
Total Kennedy-Wilson Holdings, Inc. shareholders’ equity
|
|
1,365.6
|
|
|
1,048.0
|
|
||
Noncontrolling interests
|
|
211.9
|
|
|
1,295.1
|
|
||
Total equity
|
|
1,577.5
|
|
|
2,343.1
|
|
||
Total liabilities and equity
|
|
$
|
7,724.8
|
|
|
$
|
7,656.6
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
Revenue
|
|
|
|
|
|
|
||||||
Rental
|
|
$
|
504.7
|
|
|
$
|
485.9
|
|
|
$
|
404.8
|
|
Hotel
|
|
127.5
|
|
|
116.2
|
|
|
106.4
|
|
|||
Sale of real estate
|
|
111.5
|
|
|
29.3
|
|
|
3.7
|
|
|||
Investment management, property services, and research fees (includes $20.8, $28.9, and $37.8 million of related party fees, respectively)
|
|
51.7
|
|
|
59.4
|
|
|
69.3
|
|
|||
Loan purchases, loan originations, and other
|
|
15.2
|
|
|
12.6
|
|
|
19.5
|
|
|||
Total revenue
|
|
810.6
|
|
|
703.4
|
|
|
603.7
|
|
|||
Operating expenses
|
|
|
|
|
|
|
||||||
Rental operating
|
|
151.2
|
|
|
135.4
|
|
|
108.0
|
|
|||
Hotel operating
|
|
100.3
|
|
|
96.3
|
|
|
89.9
|
|
|||
Cost of real estate sold
|
|
80.2
|
|
|
22.1
|
|
|
2.6
|
|
|||
Commission and marketing
|
|
7.2
|
|
|
8.0
|
|
|
7.3
|
|
|||
Compensation and related
|
|
177.2
|
|
|
186.5
|
|
|
154.8
|
|
|||
General and administrative
|
|
42.2
|
|
|
45.4
|
|
|
43.8
|
|
|||
Depreciation and amortization
|
|
212.5
|
|
|
198.2
|
|
|
166.3
|
|
|||
Total operating expenses
|
|
770.8
|
|
|
691.9
|
|
|
572.7
|
|
|||
Income from unconsolidated investments
|
|
69.0
|
|
|
126.6
|
|
|
97.4
|
|
|||
Operating income
|
|
108.8
|
|
|
138.1
|
|
|
128.4
|
|
|||
Non-operating income (expense)
|
|
|
|
|
|
|
||||||
Gain on sale of real estate
|
|
226.7
|
|
|
130.7
|
|
|
72.4
|
|
|||
Acquisition-related gains
|
|
—
|
|
|
16.2
|
|
|
108.1
|
|
|||
Acquisition-related expenses
|
|
(4.4
|
)
|
|
(9.5
|
)
|
|
(37.3
|
)
|
|||
Interest expense
|
|
(217.7
|
)
|
|
(191.6
|
)
|
|
(156.7
|
)
|
|||
Other income (loss)
|
|
8.3
|
|
|
6.6
|
|
|
(2.5
|
)
|
|||
Income before benefit from (provision for) income taxes
|
|
121.7
|
|
|
90.5
|
|
|
112.4
|
|
|||
Benefit from (provision for) income taxes
|
|
16.3
|
|
|
(14.0
|
)
|
|
(53.4
|
)
|
|||
Net income
|
|
138.0
|
|
|
76.5
|
|
|
59.0
|
|
|||
Net (income) loss attributable to the noncontrolling interests
|
|
(37.5
|
)
|
|
(70.9
|
)
|
|
15.7
|
|
|||
Preferred dividends and accretion of preferred stock issuance costs
|
|
—
|
|
|
(2.8
|
)
|
|
(3.6
|
)
|
|||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
100.5
|
|
|
$
|
2.8
|
|
|
$
|
71.1
|
|
Basic Earnings per share
|
|
|
|
|
|
|
||||||
Income per basic
|
|
$
|
0.83
|
|
|
$
|
0.01
|
|
|
$
|
0.66
|
|
Weighted average shares outstanding for basic
|
|
119,147,192
|
|
|
109,094,530
|
|
|
103,261,513
|
|
|||
Diluted Earnings per share
|
|
|
|
|
|
|
||||||
Income per diluted
|
|
$
|
0.83
|
|
|
$
|
0.01
|
|
|
$
|
0.66
|
|
Weighted average shares outstanding for diluted
|
|
119,147,192
|
|
|
109,094,530
|
|
|
109,553,728
|
|
|||
Dividends declared per common share
|
|
$
|
0.70
|
|
|
$
|
0.56
|
|
|
$
|
0.48
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
138.0
|
|
|
$
|
76.5
|
|
|
$
|
59.0
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Unrealized gain on marketable securities
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|||
Unrealized foreign currency translation gain (loss)
|
|
155.3
|
|
|
(164.1
|
)
|
|
(138.3
|
)
|
|||
Amounts reclassified out of AOCI during the period
|
|
2.0
|
|
|
3.4
|
|
|
9.7
|
|
|||
Unrealized currency derivative contracts (loss) gain
|
|
(68.3
|
)
|
|
(100.1
|
)
|
|
6.3
|
|
|||
Total other comprehensive income (loss) for the period
|
|
89.2
|
|
|
(260.7
|
)
|
|
(122.2
|
)
|
|||
|
|
|
|
|
|
|
||||||
Comprehensive income (loss)
|
|
227.2
|
|
|
(184.2
|
)
|
|
(63.2
|
)
|
|||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
(124.2
|
)
|
|
166.3
|
|
|
118.4
|
|
|||
Comprehensive (loss) income attributable to Kennedy-Wilson Holdings, Inc.
|
|
$
|
103.0
|
|
|
$
|
(17.9
|
)
|
|
$
|
55.2
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
Accumulated Other
|
|
|
|
|
||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
||||||||||||||||||||
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
Income
|
|
Interests
|
|
Total
|
||||||||||||||
Balance at January 1, 2015
|
132,550
|
|
|
—
|
|
|
96,091,446
|
|
|
$
|
—
|
|
|
$
|
991.3
|
|
|
$
|
(62.0
|
)
|
|
$
|
(28.2
|
)
|
|
$
|
2,142.8
|
|
|
$
|
3,043.9
|
|
|
Issuance of 8,625,000 shares, net
|
—
|
|
|
—
|
|
|
8,625,000
|
|
|
—
|
|
|
215.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215.0
|
|
|||||||
Shares forfeited
|
—
|
|
|
—
|
|
|
(57,148
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RSG Grants
|
—
|
|
|
—
|
|
|
1,754,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Shares retired due to RSG Vesting
|
—
|
|
|
—
|
|
|
(435,415
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|||||||
Conversion of preferred stock to common stock
|
—
|
|
|
—
|
|
|
8,554,948
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock based compensation
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Unrealized foreign currency translation loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.5
|
)
|
|
(92.0
|
)
|
|
(119.5
|
)
|
|||||||
Unrealized foreign currency derivative contract gain (loss), net of tax
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
|
(10.7
|
)
|
|
(2.7
|
)
|
|||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|||||||
Common stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53.3
|
)
|
|
—
|
|
|
—
|
|
|
(53.3
|
)
|
|||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74.7
|
|
|
—
|
|
|
(15.7
|
)
|
|
59.0
|
|
|||||||
Acquisition of Kennedy Wilson Europe (KWE) shares from noncontrolling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68.4
|
)
|
|
(68.4
|
)
|
|||||||
Contributions from noncontrolling interests, excluding KWE
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.5
|
|
|
14.5
|
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239.2
|
)
|
|
(239.2
|
)
|
|||||||
Balance, December 31, 2015
|
32,550
|
|
|
—
|
|
|
114,533,581
|
|
|
—
|
|
|
1,225.7
|
|
|
(44.2
|
)
|
|
(47.7
|
)
|
|
1,731.3
|
|
|
2,865.1
|
|
|||||||
Shares forfeited
|
—
|
|
|
—
|
|
|
(31,900
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Conversion of preferred stock to common stock
|
(32,550
|
)
|
|
—
|
|
|
3,366,973
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RSG Grants
|
—
|
|
|
—
|
|
|
1,006,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Shares retired due to RSG Vesting
|
—
|
|
|
—
|
|
|
(693,942
|
)
|
|
—
|
|
|
(14.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.7
|
)
|
|||||||
Shares retired due to common stock repurchase program
|
—
|
|
|
—
|
|
|
(2,440,556
|
)
|
|
—
|
|
|
(43.2
|
)
|
|
(6.9
|
)
|
|
—
|
|
|
—
|
|
|
(50.1
|
)
|
|||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65.1
|
|
|||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Unrealized foreign currency translation loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28.7
|
)
|
|
(131.6
|
)
|
|
(160.3
|
)
|
|||||||
Unrealized foreign currency derivative contract gain (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
(105.6
|
)
|
|
(100.5
|
)
|
|||||||
Unrealized gains on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|||||||
Common stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63.9
|
)
|
|
—
|
|
|
—
|
|
|
(63.9
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
|
70.9
|
|
|
76.5
|
|
|||||||
Acquisition of Kennedy Wilson Europe (KWE) shares from noncontrolling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(196.9
|
)
|
|
(196.9
|
)
|
|||||||
Acquisition of noncontrolling interests from consolidated entity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|||||||
Contributions from noncontrolling interests, excluding KWE
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.1
|
|
|
42.1
|
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(116.6
|
)
|
|
(116.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Retained
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
Additional
|
|
Earnings
|
|
Accumulated Other
|
|
|
|
|
|||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Paid-in
|
|
(Accumulated
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
|||||||||||||||||||||
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit)
|
|
Income
|
|
Interests
|
|
Total
|
|||||||||||||||
Balance, December 31, 2016
|
—
|
|
|
$
|
—
|
|
|
115,740,906
|
|
|
$
|
—
|
|
|
$
|
1,231.4
|
|
|
$
|
(112.2
|
)
|
|
$
|
(71.2
|
)
|
|
$
|
1,295.1
|
|
|
2,343.1
|
|
||
Cumulative effect of ASU 2016-09 adoption
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
||||||||
Shares forfeited
|
—
|
|
|
—
|
|
|
(57,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock grants (RSG)
|
—
|
|
|
—
|
|
|
1,756,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Shares retired due to RSG Vesting
|
—
|
|
|
—
|
|
|
(1,460,251
|
)
|
|
—
|
|
|
(37.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37.9
|
)
|
||||||||
Shares retired due to common stock repurchase program
|
—
|
|
|
—
|
|
|
(1,645,816
|
)
|
|
—
|
|
|
(29.1
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
(29.9
|
)
|
||||||||
KWE Acquisition
|
—
|
|
|
—
|
|
|
37,226,695
|
|
|
—
|
|
|
680.7
|
|
|
—
|
|
|
(358.4
|
)
|
|
(1,145.5
|
)
|
|
(823.2
|
)
|
||||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.2
|
|
||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Unrealized foreign currency translation gains, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.0
|
|
|
106.4
|
|
|
158.4
|
|
||||||||
Unrealized foreign currency derivative contract loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.7
|
)
|
|
(19.7
|
)
|
|
(69.4
|
)
|
||||||||
Unrealized gains on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||||||
Common stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87.4
|
)
|
|
—
|
|
|
—
|
|
|
(87.4
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.5
|
|
|
—
|
|
|
37.5
|
|
|
138.0
|
|
||||||||
Acquisition of Kennedy Wilson Europe (KWE) shares from noncontrolling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
(3.3
|
)
|
||||||||
Contributions from noncontrolling interests, excluding KWE
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.4
|
|
|
47.4
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106.0
|
)
|
|
(106.0
|
)
|
||||||||
Balance, December 31, 2017
|
—
|
|
|
$
|
—
|
|
|
151,561,284
|
|
|
$
|
—
|
|
|
$
|
1,883.3
|
|
|
$
|
(90.6
|
)
|
|
$
|
(427.1
|
)
|
|
$
|
211.9
|
|
|
$
|
1,577.5
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
138.0
|
|
|
$
|
76.5
|
|
|
$
|
59.0
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||||||
Net gain from sale of real estate
|
|
(258.0
|
)
|
|
(137.9
|
)
|
|
(70.7
|
)
|
|||
Acquisition-related gains
|
|
—
|
|
|
(16.2
|
)
|
|
(108.1
|
)
|
|||
Depreciation and amortization
|
|
212.5
|
|
|
198.2
|
|
|
166.3
|
|
|||
Above/below and straight-line rent amortization
|
|
(10.2
|
)
|
|
(7.1
|
)
|
|
0.6
|
|
|||
Provision for deferred income taxes
|
|
(24.5
|
)
|
|
8.8
|
|
|
24.4
|
|
|||
Amortization of deferred loan costs
|
|
12.3
|
|
|
12.3
|
|
|
8.2
|
|
|||
Amortization of discount and accretion of premium on issuance of the senior notes payable
|
|
0.4
|
|
|
(2.1
|
)
|
|
(8.6
|
)
|
|||
Unrealized net (gains) losses on derivatives
|
|
11.1
|
|
|
(6.5
|
)
|
|
3.4
|
|
|||
Income from unconsolidated investments
|
|
(69.0
|
)
|
|
(126.6
|
)
|
|
(97.2
|
)
|
|||
Accretion of interest income on loans
|
|
(12.1
|
)
|
|
(11.7
|
)
|
|
(8.9
|
)
|
|||
Stock compensation expense
|
|
38.2
|
|
|
65.1
|
|
|
30.8
|
|
|||
Operating distributions from unconsolidated investments
|
|
85.7
|
|
|
62.8
|
|
|
78.8
|
|
|||
Operating distributions from loans
|
|
6.4
|
|
|
32.7
|
|
|
9.7
|
|
|||
Change in assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(13.9
|
)
|
|
(22.9
|
)
|
|
2.0
|
|
|||
Other assets
|
|
(14.9
|
)
|
|
(10.9
|
)
|
|
(14.8
|
)
|
|||
Accrued expenses and other liabilities
|
|
(29.0
|
)
|
|
(11.6
|
)
|
|
103.3
|
|
|||
Net cash provided by operating activities
|
|
73.0
|
|
|
102.9
|
|
|
178.2
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Additions to loans
|
|
—
|
|
|
(16.1
|
)
|
|
(235.8
|
)
|
|||
Collections of loans
|
|
16.9
|
|
|
146.9
|
|
|
27.8
|
|
|||
Nonrefundable escrow deposits
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|||
Net proceeds from sale of real estate
|
|
659.1
|
|
|
540.1
|
|
|
622.6
|
|
|||
Purchases of and additions to real estate
|
|
(814.3
|
)
|
|
(949.6
|
)
|
|
(1,927.6
|
)
|
|||
Investment in marketable securities
|
|
(0.8
|
)
|
|
(3.2
|
)
|
|
(5.0
|
)
|
|||
Proceeds from sale of marketable securities
|
|
1.1
|
|
|
—
|
|
|
6.2
|
|
|||
Investing distributions from unconsolidated investments
|
|
133.4
|
|
|
89.6
|
|
|
180.0
|
|
|||
Contributions to unconsolidated investments
|
|
(79.9
|
)
|
|
(124.9
|
)
|
|
(184.3
|
)
|
|||
Proceeds from settlement of foreign currency derivative contracts
|
|
(2.8
|
)
|
|
38.6
|
|
|
41.5
|
|
|||
Purchases of foreign currency derivative contracts
|
|
(0.4
|
)
|
|
(8.1
|
)
|
|
(5.2
|
)
|
|||
Additions to development project asset
|
|
(19.4
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from development project asset
|
|
36.9
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
|
(70.2
|
)
|
|
(286.7
|
)
|
|
(1,483.6
|
)
|
|||
Cash flow from financing activities:
|
|
|
|
|
|
|
||||||
Borrowings under senior notes payable
|
|
—
|
|
|
250.0
|
|
|
—
|
|
|||
Repayment of senior notes payable
|
|
(55.0
|
)
|
|
—
|
|
|
—
|
|
|||
Costs associated with KWE Transaction
|
|
(55.8
|
)
|
|
—
|
|
|
—
|
|
|||
Borrowings under lines of credit
|
|
800.0
|
|
|
125.0
|
|
|
95.0
|
|
|||
Repayment of lines of credit
|
|
(500.0
|
)
|
|
(125.0
|
)
|
|
(220.0
|
)
|
|||
Borrowings under investment debt
|
|
848.3
|
|
|
1,189.7
|
|
|
2,087.9
|
|
|||
Repayment of investment debt
|
|
(684.7
|
)
|
|
(608.1
|
)
|
|
(681.1
|
)
|
|||
Debt issue costs
|
|
(9.5
|
)
|
|
(10.8
|
)
|
|
(21.7
|
)
|
|||
Issuance of common stock
|
|
—
|
|
|
—
|
|
|
215.0
|
|
|||
Repurchase of common stock
|
|
(67.7
|
)
|
|
(64.8
|
)
|
|
(11.4
|
)
|
|||
Cash paid to acquire noncontrolling interest in KWE
|
|
(719.8
|
)
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
|
(59.2
|
)
|
|
(64.8
|
)
|
|
(51.8
|
)
|
|||
Acquisition of noncontrolling interests
|
|
(3.3
|
)
|
|
(196.9
|
)
|
|
(68.4
|
)
|
|||
Contributions from noncontrolling interests
|
|
47.4
|
|
|
42.1
|
|
|
14.5
|
|
|||
Distributions to noncontrolling interests
|
|
(106.0
|
)
|
|
(116.6
|
)
|
|
(239.2
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(565.3
|
)
|
|
419.8
|
|
|
1,118.8
|
|
|||
Effect of currency exchange rate changes on cash and cash equivalents
|
|
28.1
|
|
|
(81.9
|
)
|
|
(19.5
|
)
|
|||
Net change in cash and cash equivalents
|
|
(534.4
|
)
|
|
154.1
|
|
|
(206.1
|
)
|
|||
Cash and cash equivalents, beginning of year
|
|
885.7
|
|
|
731.6
|
|
|
937.7
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
351.3
|
|
|
$
|
885.7
|
|
|
$
|
731.6
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash paid for:
|
|
|
|
|
|
|
||||||
Interest
(1)
|
|
$
|
206.7
|
|
|
$
|
170.7
|
|
|
$
|
133.5
|
|
Income taxes
(2)
|
|
16.1
|
|
|
10.7
|
|
|
3.0
|
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Land
|
|
$
|
1,509.4
|
|
|
$
|
1,383.2
|
|
Buildings
|
|
4,558.0
|
|
|
4,048.7
|
|
||
Building improvements
|
|
511.2
|
|
|
373.5
|
|
||
Acquired in-place lease values
|
|
417.3
|
|
|
383.1
|
|
||
|
|
6,995.9
|
|
|
6,188.5
|
|
||
Less accumulated depreciation and amortization
|
|
(552.2
|
)
|
|
(374.3
|
)
|
||
Real estate and acquired in place lease values, net of depreciation and amortization
|
|
$
|
6,443.7
|
|
|
$
|
5,814.2
|
|
(Dollars in millions)
|
Preliminary Purchase Price Allocation at Acquisition
(1)
|
||||||||||||||||||
Location
|
Description
|
Land
|
Building
|
Acquired in-place lease values
(2)
|
Investment debt
|
NCI
|
KWH Shareholders' Equity
|
||||||||||||
Western U.S.
|
Two retail centers, six multifamily and one commercial property
|
$
|
99.3
|
|
$
|
427.9
|
|
$
|
24.1
|
|
$
|
312.3
|
|
$
|
3.8
|
|
$
|
235.1
|
|
Ireland
|
One development project, one office and one multifamily
|
28.7
|
|
58.8
|
|
—
|
|
—
|
|
4.9
|
|
83.8
|
|
||||||
|
|
$
|
128.0
|
|
$
|
486.7
|
|
$
|
24.1
|
|
$
|
312.3
|
|
$
|
8.7
|
|
$
|
318.9
|
|
(Dollars in millions)
|
Preliminary Purchase Price Allocation at Acquisition
(1)
|
||||||||||||||||||
Location
|
Description
|
Land
|
Building
|
Acquired in place lease values
(2)
|
Investment debt
|
NCI
(3)
|
KWH Shareholders' Equity
|
||||||||||||
Western U.S.
|
Three retail centers, six multifamily and two residential properties
(5)
|
$
|
124.6
|
|
$
|
360.2
|
|
$
|
8.7
|
|
$
|
295.8
|
|
$
|
2.0
|
|
$
|
195.7
|
|
United Kingdom
|
Portfolio of 10 office properties and two commercial property
(4)
|
44.0
|
|
88.4
|
|
18.0
|
|
—
|
|
118.1
|
|
32.3
|
|
||||||
Ireland
|
Three commercial properties and one development property
(4)
|
25.3
|
|
84.9
|
|
5.8
|
|
—
|
|
91.6
|
|
24.4
|
|
||||||
Spain
|
One development project and one supermarket
(4)
|
1.9
|
|
17.1
|
|
0.3
|
|
—
|
|
15.3
|
|
4.0
|
|
||||||
|
|
$
|
195.8
|
|
$
|
550.6
|
|
$
|
32.8
|
|
$
|
295.8
|
|
$
|
227.0
|
|
$
|
256.4
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Property
|
Type
|
Location
|
Cash
|
Real estate and acquired in-place lease values
|
Accounts receivable and other assets
|
Accounts payable, accrued expenses, and other liabilities
|
Investment debt
|
Noncontrolling interests
|
Acquisition related gain
|
||||||||||||||
Development project in Hawaii
|
Hotel
|
Western US
|
$
|
—
|
|
$
|
76.3
|
|
$
|
5.9
|
|
$
|
1.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7.6
|
|
One retail center
|
Commercial
|
Western US
|
0.8
|
|
46.5
|
|
—
|
|
0.4
|
|
29.0
|
|
1.8
|
|
8.6
|
|
|||||||
|
|
|
$
|
0.8
|
|
$
|
122.8
|
|
$
|
5.9
|
|
$
|
1.4
|
|
$
|
29.0
|
|
$
|
1.8
|
|
$
|
16.2
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Property
|
Type
|
Location
|
Cash
|
Real estate and acquired in-place lease values
|
Accounts receivable and other assets
|
Accounts payable, accrued expenses, and other liabilities
|
Investment debt
|
Noncontrolling interests
|
Acquisition related gain
(1)
|
||||||||||||||
1,468 units across multiple properties
|
Multifamily
|
Western US
|
$
|
2.9
|
|
$
|
283.6
|
|
$
|
0.8
|
|
$
|
3.9
|
|
$
|
166.0
|
|
$
|
0.5
|
|
$
|
46.5
|
|
490K sq. ft. across multiple properties
|
Commercial
|
Western US
|
7.8
|
|
234.7
|
|
2.5
|
|
6.0
|
|
97.9
|
|
5.0
|
|
37.9
|
|
|||||||
|
|
|
$
|
10.7
|
|
$
|
518.3
|
|
$
|
3.3
|
|
$
|
9.9
|
|
$
|
263.9
|
|
$
|
5.5
|
|
$
|
84.4
|
|
(Dollars in millions)
|
Gain on sale of real estate
|
|||||||||
Year ended December 31,
|
Description
|
Consolidated
(1)
|
NCI
|
Net of NCI
|
||||||
2017
|
Three multifamily properties and one retail center in the Western U.S., one commercial development and three commercial properties in Ireland, one residential property in the United Kingdom, 25 commercial properties across the United Kingdom and Ireland, two condo unit sales in Spain and a residential property in Spain
|
$
|
258.0
|
|
$
|
43.3
|
|
$
|
214.7
|
|
2016
|
One commercial property in Japan, one commercial property, one development project, one condo unit, a vacant lot and a parcel of land in the Western U.S. and 44 commercial properties across the United Kingdom and Ireland
|
137.9
|
|
82.6
|
|
55.3
|
|
|||
2015
|
Japanese multifamily portfolio, one retail pad and one condo unit in the Western U.S.
and 23 commercial properties across the United Kingdom and Ireland |
73.5
|
|
43.0
|
|
30.5
|
|
|
|
Unaudited
|
||||||
|
|
Year Ended December 31,
|
||||||
(Dollars in millions, except for per share data)
|
|
2017
|
|
2016
|
||||
Pro forma revenues
|
|
$
|
835.0
|
|
|
$
|
740.2
|
|
Pro forma net income
|
|
150.1
|
|
|
99.5
|
|
||
Pro forma net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
111.9
|
|
|
24.8
|
|
||
Pro forma net income per share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.94
|
|
|
$
|
0.23
|
|
Diluted
|
|
$
|
0.94
|
|
|
$
|
0.23
|
|
(Dollars in millions)
|
Multifamily
|
Commercial
|
Funds
|
Residential and Other
|
Total
|
||||||||||
Western U.S.
|
$
|
199.7
|
|
$
|
39.4
|
|
$
|
55.1
|
|
$
|
179.8
|
|
$
|
474.0
|
|
United Kingdom
|
—
|
|
9.9
|
|
—
|
|
—
|
|
9.9
|
|
|||||
Spain
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Japan
|
2.5
|
|
—
|
|
—
|
|
—
|
|
2.5
|
|
|||||
Total
|
$
|
202.2
|
|
$
|
49.3
|
|
$
|
55.1
|
|
$
|
179.8
|
|
$
|
486.4
|
|
(Dollars in millions)
|
Multifamily
|
Commercial
|
Funds
|
Residential and Other
|
Total
|
||||||||||
Western U.S.
|
$
|
168.6
|
|
$
|
51.6
|
|
$
|
47.0
|
|
$
|
252.6
|
|
$
|
519.8
|
|
United Kingdom
|
—
|
|
13.8
|
|
—
|
|
—
|
|
13.8
|
|
|||||
Spain
|
—
|
|
—
|
|
—
|
|
15.9
|
|
15.9
|
|
|||||
Japan
|
6.1
|
|
—
|
|
—
|
|
—
|
|
6.1
|
|
|||||
Total
|
$
|
174.7
|
|
$
|
65.4
|
|
$
|
47.0
|
|
$
|
268.5
|
|
$
|
555.6
|
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Equity in joint venture income
|
|
$
|
30.4
|
|
|
$
|
70.5
|
|
|
$
|
58.2
|
|
Equity in joint venture income - fair value
|
|
38.6
|
|
|
56.6
|
|
|
34.9
|
|
|||
Interest (loss) income recognized
(1)
|
|
—
|
|
|
(0.5
|
)
|
|
4.3
|
|
|||
|
|
$
|
69.0
|
|
|
$
|
126.6
|
|
|
$
|
97.4
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||||||
(
Dollars in millions
)
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||
Investment Type
|
|
Region
|
|
No. of Properties
|
Initial Contribution
|
|
No. of Properties
|
Initial Contribution
|
|
No. of Properties
|
Initial Contribution
|
||||||
Multifamily
|
|
Western U.S.
|
|
5
|
$
|
13.9
|
|
|
1
|
$
|
19.9
|
|
|
31
|
$
|
80.5
|
|
Commercial
|
|
Western U.S.
|
|
—
|
—
|
|
|
1
|
13.4
|
|
|
1
|
9.1
|
|
|||
Residential
|
|
Western U.S.
|
|
—
|
—
|
|
|
1
|
1.0
|
|
|
4
|
1.4
|
|
|||
Residential
|
|
Japan
|
|
—
|
—
|
|
|
—
|
—
|
|
|
50
|
6.2
|
|
|||
Other
|
|
Western U.S.
|
|
2
|
1.8
|
|
|
1
|
2.1
|
|
|
1
|
2.0
|
|
|||
Total
|
|
|
|
7
|
$
|
15.7
|
|
|
4
|
$
|
36.4
|
|
|
87
|
$
|
99.2
|
|
|
Multifamily
|
Commercial
|
Funds
|
Residential and Other
|
Total
|
|||||||||||||||||||||||||
(Dollars in millions)
|
Operating
|
Investing
|
Operating
|
Investing
|
Operating
|
Investing
|
Operating
|
Investing
|
Operating
|
Investing
|
||||||||||||||||||||
Western U.S.
|
$
|
26.1
|
|
$
|
26.1
|
|
$
|
6.5
|
|
$
|
15.3
|
|
$
|
4.0
|
|
$
|
5.7
|
|
$
|
42.6
|
|
$
|
64.1
|
|
$
|
79.2
|
|
$
|
111.2
|
|
United Kingdom
|
—
|
|
—
|
|
2.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.3
|
|
—
|
|
||||||||||
Spain
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4.0
|
|
17.3
|
|
4.0
|
|
17.3
|
|
||||||||||
Japan
|
0.2
|
|
4.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.2
|
|
4.9
|
|
||||||||||
Total
|
$
|
26.3
|
|
$
|
31.0
|
|
$
|
8.8
|
|
$
|
15.3
|
|
$
|
4.0
|
|
$
|
5.7
|
|
$
|
46.6
|
|
$
|
81.4
|
|
$
|
85.7
|
|
$
|
133.4
|
|
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Unconsolidated investments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
346.1
|
|
|
$
|
346.1
|
|
Marketable securities
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
||||
Net currency derivative contracts
|
|
—
|
|
|
(100.9
|
)
|
|
—
|
|
|
(100.9
|
)
|
||||
Total
|
|
$
|
7.5
|
|
|
$
|
(100.9
|
)
|
|
$
|
346.1
|
|
|
$
|
252.7
|
|
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Unconsolidated investments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
329.4
|
|
|
$
|
329.4
|
|
Marketable securities
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
||||
Net currency derivative contracts
|
|
—
|
|
|
(47.2
|
)
|
|
—
|
|
|
(47.2
|
)
|
||||
Total
|
|
$
|
7.5
|
|
|
$
|
(47.2
|
)
|
|
$
|
329.4
|
|
|
$
|
289.7
|
|
(Dollars in millions)
|
December 31, 2017
|
|
December 31, 2016
|
||||
FV Option
|
$
|
291.0
|
|
|
$
|
282.4
|
|
Funds
|
55.1
|
|
|
47.0
|
|
||
Total
|
$
|
346.1
|
|
|
$
|
329.4
|
|
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning balance
|
|
$
|
329.4
|
|
|
$
|
223.8
|
|
|
$
|
95.2
|
|
Unrealized and realized gains
|
|
53.2
|
|
|
65.7
|
|
|
42.3
|
|
|||
Unrealized and realized losses
|
|
(1.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||
Contributions
|
|
58.1
|
|
|
76.3
|
|
|
128.5
|
|
|||
Distributions
|
|
(117.0
|
)
|
|
(75.3
|
)
|
|
(41.0
|
)
|
|||
Other
|
|
23.5
|
|
|
38.9
|
|
|
(1.1
|
)
|
|||
Ending Balance
|
|
$
|
346.1
|
|
|
$
|
329.4
|
|
|
$
|
223.8
|
|
|
|
Estimated Rates Used For
|
||
|
|
Capitalization Rates
|
|
Discount Rates
|
Office
|
|
4.50% — 7.25%
|
|
6.75% — 8.00%
|
Retail
|
|
5.75% — 9.50%
|
|
7.25% — 11.50%
|
Multifamily
|
|
4.75% — 7.75%
|
|
8.00% — 9.75%
|
Residential
|
|
N/A
|
|
6.00% — 12.00%
|
Hotel
|
|
6.50%
|
|
10.50%
|
(Dollars in millions)
|
|
December 31, 2017
|
|
Year Ended December 31, 2017
|
|||||||||||||||||||
Currency Hedged
|
Underlying Currency
|
Notional
|
Hedge Asset
|
|
Hedge Liability
|
|
Change in Unrealized Gains (Losses)
|
|
Realized Gains (Losses)
|
|
Cash Received (Paid)
|
||||||||||||
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EUR
|
USD
|
€
|
130.0
|
|
$
|
0.3
|
|
|
$
|
(7.1
|
)
|
|
$
|
(10.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
EUR
(1)
|
GBP
|
€
|
360.0
|
|
—
|
|
|
(77.0
|
)
|
|
(17.7
|
)
|
|
—
|
|
|
—
|
|
|||||
EUR
(1)(2)
|
GBP
|
—
|
|
—
|
|
|
—
|
|
|
(22.0
|
)
|
|
—
|
|
|
—
|
|
||||||
GBP
|
USD
|
£
|
540.7
|
|
2.1
|
|
|
(19.2
|
)
|
|
(20.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||||
GBP
(3)
|
USD
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.8
|
)
|
|
—
|
|
||||||
Total Outstanding
|
|
2.4
|
|
|
(103.3
|
)
|
|
(70.8
|
)
|
|
(10.8
|
)
|
|
(0.4
|
)
|
||||||||
Settled
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EUR
(4)
|
USD
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
1.8
|
|
|
—
|
|
|||||||
Yen
|
USD
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||||
GBP
|
USD
|
|
|
—
|
|
|
—
|
|
|
(5.4
|
)
|
|
0.2
|
|
|
(2.7
|
)
|
||||||
Total Settled
|
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
|
2.0
|
|
|
(2.8
|
)
|
|||||||
Total
|
|
$
|
2.4
|
|
|
$
|
(103.3
|
)
|
|
$
|
(78.0
|
)
|
|
$
|
(8.8
|
)
|
|
$
|
(3.2
|
)
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Above-market leases, net of accumulated amortization of $44.3 million and $28.1 million at December 31, 2017 and 2016, respectively
|
|
$
|
63.1
|
|
|
$
|
72.4
|
|
Development project asset
|
|
55.3
|
|
|
—
|
|
||
Office furniture and equipment net of accumulated depreciation of $35.8 million and $24.4 million at December 31, 2017 and 2016, respectively
|
|
44.3
|
|
|
25.4
|
|
||
Accrued performance fees
|
|
32.9
|
|
|
27.3
|
|
||
Straight line rent
|
|
24.0
|
|
|
11.7
|
|
||
Goodwill
|
|
23.9
|
|
|
23.9
|
|
||
Prepaid expenses
|
|
13.3
|
|
|
10.2
|
|
||
Other, net of accumulated amortization of $2.6 million and $2.3 million at December 31, 2017 and 2016, respectively
|
|
10.7
|
|
|
10.0
|
|
||
Leasing commissions, net of accumulated amortization of $2.2 million and $1.7 million at December 31, 2017 and 2016, respectively
|
|
10.1
|
|
|
7.4
|
|
||
Marketable securities
|
|
7.5
|
|
|
7.5
|
|
||
VAT receivable
|
|
5.0
|
|
|
23.2
|
|
||
Deposits
|
|
3.5
|
|
|
1.8
|
|
||
Hedge assets
|
|
2.4
|
|
|
20.2
|
|
||
Deferred tax asset, net
|
|
—
|
|
|
28.4
|
|
||
Other Assets
|
|
$
|
296.0
|
|
|
$
|
269.4
|
|
(Dollars in millions)
|
|
|
|
Carrying amount of investment debt as of December 31,
(1)
|
||||||
Investment Debt by Product Type
|
|
Region
|
|
2017
|
|
2016
|
||||
Multifamily
(1)
|
|
Western U.S.
|
|
$
|
1,227.5
|
|
|
$
|
1,180.8
|
|
Commercial
(1)(2)
|
|
United Kingdom
|
|
583.2
|
|
|
616.9
|
|
||
Commercial
(1)(2)
|
|
Ireland
|
|
505.0
|
|
|
331.5
|
|
||
Commercial
|
|
Western U.S.
|
|
370.6
|
|
|
290.2
|
|
||
Multifamily
(1)(2)
|
|
Ireland
|
|
263.2
|
|
|
159.3
|
|
||
Commercial
(2)
|
|
Spain
|
|
95.5
|
|
|
84.4
|
|
||
Hotel
|
|
Ireland
|
|
86.4
|
|
|
75.7
|
|
||
Hotel
|
|
Western U.S.
|
|
49.1
|
|
|
49.8
|
|
||
Mortgage debt (excluding loan fees)
(1)(2)
|
|
|
|
3,180.5
|
|
|
2,788.6
|
|
||
Unamortized loan fees
|
|
|
|
(23.9
|
)
|
|
(18.2
|
)
|
||
Total Investment Debt
|
|
|
|
$
|
3,156.6
|
|
|
$
|
2,770.4
|
|
(Dollars in millions)
|
|
Aggregate Maturities
|
||
2018
|
|
$
|
67.7
|
|
2019
|
|
356.6
|
|
|
2020
|
|
164.3
|
|
|
2021
|
|
159.4
|
|
|
2022
|
|
434.9
|
|
|
Thereafter
|
|
1,995.2
|
|
|
|
|
3,178.1
|
|
|
Debt premium
|
|
2.4
|
|
|
Unamortized loan fees
|
|
(23.9
|
)
|
|
Total Investment Debt
|
|
$
|
3,156.6
|
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Credit Facility
|
|
$
|
300.0
|
|
|
$
|
—
|
|
Senior Notes
(1)
|
|
898.1
|
|
|
952.8
|
|
||
KW Unsecured Debt
|
|
1,198.1
|
|
|
952.8
|
|
||
Unamortized loan fees
|
|
(18.7
|
)
|
|
(18.7
|
)
|
||
Total KW Unsecured Debt
|
|
$
|
1,179.4
|
|
|
$
|
934.1
|
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
KWE Bonds
|
|
$
|
675.6
|
|
|
$
|
616.8
|
|
KWE Euro Medium Term Note Programme
|
|
655.7
|
|
|
575.6
|
|
||
KWE Unsecured Bonds (excluding loan fees)
(1)(2)
|
|
1,331.3
|
|
|
1,192.4
|
|
||
Unamortized loan fees
|
|
(5.4
|
)
|
|
(6.7
|
)
|
||
Total KWE Unsecured Bonds
|
|
$
|
1,325.9
|
|
|
$
|
1,185.7
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Domestic
|
|
$
|
90.6
|
|
|
$
|
33.9
|
|
|
$
|
61.2
|
|
Foreign
|
|
31.1
|
|
|
56.6
|
|
|
51.2
|
|
|||
Total
|
|
$
|
121.7
|
|
|
$
|
90.5
|
|
|
$
|
112.4
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Federal
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
(0.3
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
0.2
|
|
Deferred
|
|
(17.9
|
)
|
|
17.0
|
|
|
13.2
|
|
|||
|
|
(18.2
|
)
|
|
16.2
|
|
|
13.4
|
|
|||
State
|
|
|
|
|
|
|
||||||
Current
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|||
Deferred
|
|
(3.1
|
)
|
|
2.8
|
|
|
0.3
|
|
|||
|
|
(3.0
|
)
|
|
2.9
|
|
|
0.3
|
|
|||
Foreign
|
|
|
|
|
|
|
||||||
Current
|
|
8.4
|
|
|
5.8
|
|
|
31.9
|
|
|||
Deferred
|
|
(3.5
|
)
|
|
(10.9
|
)
|
|
7.8
|
|
|||
|
|
4.9
|
|
|
(5.1
|
)
|
|
39.7
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
(16.3
|
)
|
|
$
|
14.0
|
|
|
$
|
53.4
|
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Tax computed at the statutory rate
|
|
$
|
42.6
|
|
|
$
|
31.7
|
|
|
$
|
39.3
|
|
Tax Reform federal rate change
|
|
(44.8
|
)
|
|
—
|
|
|
—
|
|
|||
Tax deduction in excess of book compensation from restricted stock vesting
|
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign permanent differences, primarily non-deductible depreciation, amortization and acquisition-related expenses in the United Kingdom
|
|
6.1
|
|
|
6.5
|
|
|
13.7
|
|
|||
Sale of KWR, investment basis difference
|
|
—
|
|
|
—
|
|
|
10.6
|
|
|||
Effect of foreign tax operations, net of foreign tax credits
|
|
1.6
|
|
|
1.1
|
|
|
(3.8
|
)
|
|||
Noncontrolling interests
|
|
(15.0
|
)
|
|
(25.8
|
)
|
|
(2.8
|
)
|
|||
Adjustment to investment basis
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|||
Non-vested stock expense
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||
State income taxes, net of federal benefit
|
|
(3.8
|
)
|
|
2.8
|
|
|
(1.5
|
)
|
|||
Other
|
|
0.7
|
|
|
(2.3
|
)
|
|
(4.5
|
)
|
|||
Provision for (benefit from) income taxes
|
|
$
|
(16.3
|
)
|
|
$
|
14.0
|
|
|
$
|
53.4
|
|
|
|
Year ended December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Foreign currency translation
|
|
$
|
11.9
|
|
|
$
|
131.9
|
|
Net operating loss carryforward and credits
|
|
103.7
|
|
|
85.2
|
|
||
Stock option expense
|
|
5.2
|
|
|
19.5
|
|
||
Hedging transactions
|
|
8.1
|
|
|
—
|
|
||
Marketable securities
|
|
0.1
|
|
|
0.4
|
|
||
Accrued reserves
|
|
0.1
|
|
|
0.1
|
|
||
Total deferred tax assets
|
|
129.1
|
|
|
237.1
|
|
||
Valuation allowance
|
|
(32.7
|
)
|
|
(29.9
|
)
|
||
Net deferred tax assets
|
|
96.4
|
|
|
207.2
|
|
||
|
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
||||
Investment basis, depreciation, amortization and reserve differences
|
|
119.8
|
|
|
157.6
|
|
||
Hedging transactions
|
|
—
|
|
|
5.0
|
|
||
Prepaid expenses and other
|
|
9.2
|
|
|
13.9
|
|
||
Capitalized interest
|
|
1.4
|
|
|
2.3
|
|
||
Total deferred tax liabilities
|
|
130.4
|
|
|
178.8
|
|
||
|
|
|
|
|
||||
Deferred tax asset (liability), net
|
|
$
|
(34.0
|
)
|
|
$
|
28.4
|
|
(Dollars in millions)
|
|
|
||
Year ending December 31,
|
|
|
||
2018
|
|
$
|
2.8
|
|
2019
|
|
2.1
|
|
|
2020
|
|
1.8
|
|
|
2021
|
|
1.4
|
|
|
2022
|
|
1.2
|
|
|
Thereafter
|
|
0.4
|
|
|
Total minimum payments
|
|
$
|
9.7
|
|
|
|
Shares
|
|
Nonvested at December 31, 2015
|
|
6,274,345
|
|
Granted
|
|
1,006,750
|
|
Vested
|
|
(1,526,731
|
)
|
Forfeited
|
|
(31,900
|
)
|
Nonvested at December 31, 2016
|
|
5,722,464
|
|
Granted
|
|
1,756,750
|
|
Vested
|
|
(3,285,671
|
)
|
Forfeited
|
|
(57,000
|
)
|
Nonvested at December 31, 2017
|
|
4,136,543
|
|
(Dollars in millions)
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||
|
|
Declared
|
|
Paid
|
|
Declared
|
|
Paid
|
||||||||
Preferred Stock
|
|
|
|
|
|
|
|
|
||||||||
Series B
(1)
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
2.8
|
|
||||
Total Preferred Stock
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
2.8
|
|
||||
Common Stock
|
|
87.4
|
|
|
59.2
|
|
|
63.9
|
|
|
62.0
|
|
||||
Total
(2)
|
|
$
|
87.4
|
|
|
$
|
59.2
|
|
|
$
|
66.7
|
|
|
$
|
64.8
|
|
(Dollars in millions)
|
|
Foreign Currency Translation
|
|
Foreign Currency Derivative Contracts
|
|
Marketable Securities
|
|
Total Accumulated Other Comprehensive Income
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
|
$
|
(98.6
|
)
|
|
$
|
27.5
|
|
|
$
|
(0.1
|
)
|
|
$
|
(71.2
|
)
|
Unrealized gains (losses), arising during the period
|
|
212.4
|
|
|
(76.2
|
)
|
|
0.3
|
|
|
136.5
|
|
||||
Amounts reclassified out of AOCI during the period
|
|
3.1
|
|
|
(1.1
|
)
|
|
—
|
|
|
2.0
|
|
||||
Taxes on unrealized (losses) gains, arising during the period
|
|
(57.1
|
)
|
|
7.9
|
|
|
(0.1
|
)
|
|
(49.3
|
)
|
||||
Noncontrolling interest
|
|
(106.4
|
)
|
|
19.7
|
|
|
—
|
|
|
(86.7
|
)
|
||||
Balance (of Kennedy Wilson's share) at December 31, 2017
|
|
$
|
(46.6
|
)
|
|
$
|
(22.2
|
)
|
|
$
|
0.1
|
|
|
$
|
(68.7
|
)
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in millions, except share amounts and per share data)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
100.5
|
|
|
$
|
2.8
|
|
|
$
|
71.1
|
|
Net income and dividends allocated to participating securities
|
|
(1.1
|
)
|
|
(1.7
|
)
|
|
(2.9
|
)
|
|||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities
|
|
99.4
|
|
|
1.1
|
|
|
68.2
|
|
|||
Dividends declared on common shares
|
|
(86.5
|
)
|
|
(62.3
|
)
|
|
(51.1
|
)
|
|||
Undistributed earnings (losses) attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
12.9
|
|
|
$
|
(61.2
|
)
|
|
$
|
17.1
|
|
|
|
|
|
|
|
|
||||||
Distributed earnings per share
|
|
$
|
0.70
|
|
|
$
|
0.56
|
|
|
$
|
0.48
|
|
Undistributed earnings (losses) per share
|
|
0.13
|
|
|
(0.55
|
)
|
|
0.18
|
|
|||
Income per basic
|
|
0.83
|
|
|
0.01
|
|
|
0.66
|
|
|||
|
|
|
|
|
|
|
||||||
Income per diluted
|
|
$
|
0.83
|
|
|
$
|
0.01
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
||||||
Weighted-average shares outstanding for basic
|
|
119,147,192
|
|
|
109,094,530
|
|
|
103,261,513
|
|
|||
Weighted average shares outstanding for diluted
|
|
119,147,192
|
|
|
109,094,530
|
|
|
109,553,728
|
|
|||
Dividends declared per common share
|
|
$
|
0.70
|
|
|
$
|
0.56
|
|
|
$
|
0.48
|
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Investments
|
|
|
|
|
|
|
||||||
Rental
|
|
$
|
504.7
|
|
|
$
|
485.9
|
|
|
$
|
404.8
|
|
Hotel
|
|
127.5
|
|
|
116.2
|
|
|
106.4
|
|
|||
Sale of real estate
|
|
111.5
|
|
|
29.3
|
|
|
3.7
|
|
|||
Loans and other income
|
|
15.2
|
|
|
12.6
|
|
|
19.5
|
|
|||
Total revenue
|
|
758.9
|
|
|
644.0
|
|
|
534.4
|
|
|||
Depreciation and amortization
|
|
(212.2
|
)
|
|
(198.2
|
)
|
|
(166.3
|
)
|
|||
Operating Expenses
|
|
(433.8
|
)
|
|
(345.2
|
)
|
|
(283.3
|
)
|
|||
Income from unconsolidated investments
|
|
66.4
|
|
|
122.8
|
|
|
93.6
|
|
|||
Operating Income
|
|
179.3
|
|
|
223.4
|
|
|
178.4
|
|
|||
Gain on sale of real estate
|
|
226.7
|
|
|
130.7
|
|
|
72.4
|
|
|||
Acquisition-related gains
|
|
—
|
|
|
16.2
|
|
|
108.1
|
|
|||
Acquisition-related expenses
|
|
(4.4
|
)
|
|
(9.5
|
)
|
|
(37.3
|
)
|
|||
Interest expense
|
|
(145.6
|
)
|
|
(137.4
|
)
|
|
(108.8
|
)
|
|||
Other
|
|
(5.1
|
)
|
|
(1.2
|
)
|
|
(2.5
|
)
|
|||
Income before benefit from income taxes
|
|
250.9
|
|
|
222.2
|
|
|
210.3
|
|
|||
(Provision for) benefit from income taxes
|
|
(4.8
|
)
|
|
5.0
|
|
|
(23.4
|
)
|
|||
Net income
|
|
246.1
|
|
|
227.2
|
|
|
186.9
|
|
|||
Net (income) loss attributable to the non-controlling interests
|
|
(37.5
|
)
|
|
(70.9
|
)
|
|
15.3
|
|
|||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
208.6
|
|
|
$
|
156.3
|
|
|
$
|
202.2
|
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Investment Management and Real Estate Services
|
|
|
|
|
|
|
||||||
Investment management, property services, and research fees (includes $20.8, $28.9, and $37.8 million of related party fees, respectively)
|
|
$
|
51.7
|
|
|
$
|
59.4
|
|
|
$
|
69.3
|
|
Total revenue
|
|
51.7
|
|
|
59.4
|
|
|
69.3
|
|
|||
Depreciation and amortization
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|||
Operating expenses
|
|
(54.3
|
)
|
|
(54.9
|
)
|
|
(69.7
|
)
|
|||
Income from unconsolidated investments
|
|
2.6
|
|
|
3.8
|
|
|
3.8
|
|
|||
Net Income
|
|
(0.3
|
)
|
|
8.3
|
|
|
3.4
|
|
|||
Net loss attributable to the noncontrolling interests
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
(0.3
|
)
|
|
$
|
8.3
|
|
|
$
|
3.8
|
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Corporate
|
|
|
|
|
|
|
||||||
Operating expenses
|
|
$
|
(70.2
|
)
|
|
$
|
(93.6
|
)
|
|
$
|
(53.4
|
)
|
Operating loss
|
|
(70.2
|
)
|
|
(93.6
|
)
|
|
(53.4
|
)
|
|||
Interest expense
|
|
(72.1
|
)
|
|
(54.2
|
)
|
|
(47.9
|
)
|
|||
Other
|
|
13.4
|
|
|
7.8
|
|
|
—
|
|
|||
Loss before benefit from (provision for) income taxes
|
|
(128.9
|
)
|
|
(140.0
|
)
|
|
(101.3
|
)
|
|||
Benefit from (provision for) income taxes
|
|
21.1
|
|
|
(19.0
|
)
|
|
(30.0
|
)
|
|||
Net loss
|
|
(107.8
|
)
|
|
(159.0
|
)
|
|
(131.3
|
)
|
|||
Preferred dividends and accretion of preferred stock issuance costs
|
|
—
|
|
|
(2.8
|
)
|
|
(3.6
|
)
|
|||
Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
(107.8
|
)
|
|
$
|
(161.8
|
)
|
|
$
|
(134.9
|
)
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Consolidated
|
|
|
|
|
|
|
||||||
Rental
|
|
$
|
504.7
|
|
|
$
|
485.9
|
|
|
$
|
404.8
|
|
Hotel
|
|
127.5
|
|
|
116.2
|
|
|
106.4
|
|
|||
Sale of real estate
|
|
111.5
|
|
|
29.3
|
|
|
3.7
|
|
|||
Investment management, property services, and research fees (includes $20.8, $28.9, and $37.8 million of related party fees, respectively)
|
|
51.7
|
|
|
59.4
|
|
|
69.3
|
|
|||
Loans purchases, loan originations, and other
|
|
15.2
|
|
|
12.6
|
|
|
19.5
|
|
|||
Total revenue
|
|
810.6
|
|
|
703.4
|
|
|
603.7
|
|
|||
Operating expenses
|
|
558.3
|
|
|
493.7
|
|
|
406.4
|
|
|||
Depreciation and amortization
|
|
212.5
|
|
|
198.2
|
|
|
166.3
|
|
|||
Total operating expenses
|
|
770.8
|
|
|
691.9
|
|
|
572.7
|
|
|||
Income from unconsolidated investments
|
|
69.0
|
|
|
126.6
|
|
|
97.4
|
|
|||
Operating income
|
|
108.8
|
|
|
138.1
|
|
|
128.4
|
|
|||
Gain on sale of real estate
|
|
226.7
|
|
|
130.7
|
|
|
72.4
|
|
|||
Acquisition-related gains
|
|
—
|
|
|
16.2
|
|
|
108.1
|
|
|||
Acquisition-related expenses
|
|
(4.4
|
)
|
|
(9.5
|
)
|
|
(37.3
|
)
|
|||
Interest expense
|
|
(217.7
|
)
|
|
(191.6
|
)
|
|
(156.7
|
)
|
|||
Other
|
|
8.3
|
|
|
6.6
|
|
|
(2.5
|
)
|
|||
Income before benefit from (provision for) income taxes
|
|
121.7
|
|
|
90.5
|
|
|
112.4
|
|
|||
Benefit from (provision for) income taxes
|
|
16.3
|
|
|
(14.0
|
)
|
|
(53.4
|
)
|
|||
Net income
|
|
138.0
|
|
|
76.5
|
|
|
59.0
|
|
|||
Net (income) loss attributable to the noncontrolling interests
|
|
(37.5
|
)
|
|
(70.9
|
)
|
|
15.7
|
|
|||
Preferred dividends and accretion of preferred stock issuance costs
|
|
—
|
|
|
(2.8
|
)
|
|
(3.6
|
)
|
|||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
100.5
|
|
|
$
|
2.8
|
|
|
$
|
71.1
|
|
|
|
December 31,
|
||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
||||
Investments
|
|
$
|
7,563.7
|
|
|
$
|
7,375.5
|
|
Services
|
|
70.5
|
|
|
78.1
|
|
||
Corporate
|
|
90.6
|
|
|
203.0
|
|
||
Total assets
|
|
$
|
7,724.8
|
|
|
$
|
7,656.6
|
|
|
|
December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Expenditures for long lived assets
|
|
|
|
|
|
|
||||||
Investments
|
|
$
|
(814.3
|
)
|
|
$
|
(949.6
|
)
|
|
$
|
(1,927.6
|
)
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
United States
|
|
$
|
316.3
|
|
|
$
|
304.1
|
|
|
$
|
229.3
|
|
Europe
|
|
493.3
|
|
|
397.2
|
|
|
361.1
|
|
|||
Japan
|
|
1.0
|
|
|
2.1
|
|
|
13.3
|
|
|||
Total revenue
|
|
$
|
810.6
|
|
|
$
|
703.4
|
|
|
$
|
603.7
|
|
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2017
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
33.4
|
|
|
$
|
54.9
|
|
|
$
|
263.0
|
|
|
$
|
—
|
|
|
$
|
351.3
|
|
Accounts receivable
|
|
—
|
|
|
0.9
|
|
|
10.1
|
|
|
51.7
|
|
|
—
|
|
|
62.7
|
|
||||||
Loan purchases and originations
|
|
—
|
|
|
—
|
|
|
5.8
|
|
|
78.9
|
|
|
—
|
|
|
84.7
|
|
||||||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization
|
|
—
|
|
|
—
|
|
|
1,750.0
|
|
|
4,693.7
|
|
|
—
|
|
|
6,443.7
|
|
||||||
Unconsolidated investments
|
|
—
|
|
|
20.2
|
|
|
298.3
|
|
|
167.9
|
|
|
—
|
|
|
486.4
|
|
||||||
Investments in and advances to consolidated subsidiaries
|
|
1,394.5
|
|
|
2,642.1
|
|
|
1,629.4
|
|
|
—
|
|
|
(5,666.0
|
)
|
|
—
|
|
||||||
Other assets
|
|
—
|
|
|
—
|
|
|
73.1
|
|
|
222.9
|
|
|
—
|
|
|
296.0
|
|
||||||
Total assets
|
|
$
|
1,394.5
|
|
|
$
|
2,696.6
|
|
|
$
|
3,821.6
|
|
|
$
|
5,478.1
|
|
|
$
|
(5,666.0
|
)
|
|
$
|
7,724.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
|
—
|
|
|
0.8
|
|
|
2.5
|
|
|
16.2
|
|
|
—
|
|
|
19.5
|
|
||||||
Accrued expenses and other liabilities
|
|
28.9
|
|
|
121.9
|
|
|
39.7
|
|
|
275.4
|
|
|
|
|
465.9
|
|
|||||||
Mortgage debt
|
|
—
|
|
|
—
|
|
|
1,137.3
|
|
|
2,019.3
|
|
|
|
|
3,156.6
|
|
|||||||
KW unsecured debt
|
|
—
|
|
|
1,179.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179.4
|
|
||||||
KWE unsecured bonds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,325.9
|
|
|
—
|
|
|
1,325.9
|
|
||||||
Total liabilities
|
|
28.9
|
|
|
1,302.1
|
|
|
1,179.5
|
|
|
3,636.8
|
|
|
—
|
|
|
6,147.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Kennedy-Wilson Holdings, Inc. shareholders' equity
|
|
1,365.6
|
|
|
1,394.5
|
|
|
2,642.1
|
|
|
1,629.4
|
|
|
(5,666.0
|
)
|
|
1,365.6
|
|
||||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
211.9
|
|
|
—
|
|
|
211.9
|
|
||||||
Total equity
|
|
1,365.6
|
|
|
1,394.5
|
|
|
2,642.1
|
|
|
1,841.3
|
|
|
(5,666.0
|
)
|
|
1,577.5
|
|
||||||
Total liabilities and equity
|
|
$
|
1,394.5
|
|
|
$
|
2,696.6
|
|
|
$
|
3,821.6
|
|
|
$
|
5,478.1
|
|
|
$
|
(5,666.0
|
)
|
|
$
|
7,724.8
|
|
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2016
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
106.0
|
|
|
$
|
45.4
|
|
|
$
|
734.3
|
|
|
$
|
—
|
|
|
$
|
885.7
|
|
Accounts receivable
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|
33.8
|
|
|
—
|
|
|
44.0
|
|
||||||
Loan purchases and originations
|
|
—
|
|
|
0.3
|
|
|
12.1
|
|
|
75.3
|
|
|
—
|
|
|
87.7
|
|
||||||
Real estate and acquired in place lease values, net of accumulated depreciation and amortization
|
|
—
|
|
|
—
|
|
|
1,482.5
|
|
|
4,331.7
|
|
|
—
|
|
|
5,814.2
|
|
||||||
Unconsolidated investments
|
|
—
|
|
|
18.8
|
|
|
380.0
|
|
|
156.8
|
|
|
—
|
|
|
555.6
|
|
||||||
Investments in and advances to consolidated subsidiaries
|
|
1,063.8
|
|
|
2,073.1
|
|
|
1,171.7
|
|
|
—
|
|
|
(4,308.6
|
)
|
|
—
|
|
||||||
Other assets
|
|
—
|
|
|
0.2
|
|
|
66.9
|
|
|
202.3
|
|
|
—
|
|
|
269.4
|
|
||||||
Total assets
|
|
$
|
1,063.8
|
|
|
$
|
2,198.4
|
|
|
$
|
3,168.8
|
|
|
$
|
5,534.2
|
|
|
$
|
(4,308.6
|
)
|
|
$
|
7,656.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
1.6
|
|
|
$
|
9.1
|
|
|
$
|
—
|
|
|
$
|
11.2
|
|
Accrued expenses and other liabilities
|
|
15.8
|
|
|
200.0
|
|
|
157.2
|
|
|
39.1
|
|
|
—
|
|
|
412.1
|
|
||||||
Mortgage debt
|
|
—
|
|
|
—
|
|
|
936.8
|
|
|
1,833.6
|
|
|
—
|
|
|
2,770.4
|
|
||||||
KW unsecured debt
|
|
—
|
|
|
934.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
934.1
|
|
||||||
KWE unsecured bonds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,185.7
|
|
|
—
|
|
|
1,185.7
|
|
||||||
Total liabilities
|
|
15.8
|
|
|
1,134.6
|
|
|
1,095.6
|
|
|
3,067.5
|
|
|
—
|
|
|
5,313.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Kennedy-Wilson Holdings, Inc. shareholders' equity
|
|
1,048.0
|
|
|
1,063.8
|
|
|
2,073.2
|
|
|
1,171.6
|
|
|
(4,308.6
|
)
|
|
1,048.0
|
|
||||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,295.1
|
|
|
—
|
|
|
1,295.1
|
|
||||||
Total equity
|
|
1,048.0
|
|
|
1,063.8
|
|
|
2,073.2
|
|
|
2,466.7
|
|
|
(4,308.6
|
)
|
|
2,343.1
|
|
||||||
Total liabilities and equity
|
|
$
|
1,063.8
|
|
|
$
|
2,198.4
|
|
|
$
|
3,168.8
|
|
|
$
|
5,534.2
|
|
|
$
|
(4,308.6
|
)
|
|
$
|
7,656.6
|
|
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2017
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
143.9
|
|
|
$
|
360.8
|
|
|
$
|
—
|
|
|
$
|
504.7
|
|
Hotel
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127.5
|
|
|
—
|
|
|
127.5
|
|
||||||
Sale of real estate
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
109.2
|
|
|
—
|
|
|
111.5
|
|
||||||
Investment management, property services, and research fees
|
|
—
|
|
|
—
|
|
|
43.4
|
|
|
8.3
|
|
|
—
|
|
|
51.7
|
|
||||||
Loan purchases, loan originations, and other
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
14.7
|
|
|
—
|
|
|
15.2
|
|
||||||
Total revenue
|
|
—
|
|
|
—
|
|
|
190.1
|
|
|
620.5
|
|
|
—
|
|
|
810.6
|
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental operating
|
|
—
|
|
|
—
|
|
|
54.7
|
|
|
96.5
|
|
|
—
|
|
|
151.2
|
|
||||||
Hotel operating
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.3
|
|
|
—
|
|
|
100.3
|
|
||||||
Cost of real estate sold
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|
78.4
|
|
|
—
|
|
|
80.2
|
|
||||||
Commission and marketing
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
0.2
|
|
|
—
|
|
|
7.2
|
|
||||||
Compensation and related
|
|
38.4
|
|
|
78.3
|
|
|
52.8
|
|
|
7.7
|
|
|
—
|
|
|
177.2
|
|
||||||
General and administrative
|
|
—
|
|
|
14.0
|
|
|
17.6
|
|
|
10.6
|
|
|
—
|
|
|
42.2
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
1.4
|
|
|
50.1
|
|
|
161.0
|
|
|
—
|
|
|
212.5
|
|
||||||
Total operating expenses
|
|
38.4
|
|
|
93.7
|
|
|
184.0
|
|
|
454.7
|
|
|
—
|
|
|
770.8
|
|
||||||
Income from unconsolidated investments
|
|
—
|
|
|
3.7
|
|
|
33.0
|
|
|
32.3
|
|
|
—
|
|
|
69.0
|
|
||||||
Income from consolidated subsidiaries
|
|
176.4
|
|
|
307.5
|
|
|
256.2
|
|
|
—
|
|
|
(740.1
|
)
|
|
—
|
|
||||||
Operating income
|
|
138.0
|
|
|
217.5
|
|
|
295.3
|
|
|
198.1
|
|
|
(740.1
|
)
|
|
108.8
|
|
||||||
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sale of real estate
|
|
—
|
|
|
—
|
|
|
46.6
|
|
|
180.1
|
|
|
—
|
|
|
226.7
|
|
||||||
Acquisition-related gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Acquisition-related expenses
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(3.1
|
)
|
|
—
|
|
|
(4.4
|
)
|
||||||
Interest expense
|
|
—
|
|
|
(72.1
|
)
|
|
(38.0
|
)
|
|
(107.6
|
)
|
|
—
|
|
|
(217.7
|
)
|
||||||
Other income
|
|
—
|
|
|
9.9
|
|
|
1.6
|
|
|
(3.2
|
)
|
|
—
|
|
|
8.3
|
|
||||||
Income before provision from income taxes
|
|
138.0
|
|
|
155.3
|
|
|
304.2
|
|
|
264.3
|
|
|
(740.1
|
)
|
|
121.7
|
|
||||||
Benefit from (provision for) income taxes
|
|
—
|
|
|
21.1
|
|
|
3.3
|
|
|
(8.1
|
)
|
|
—
|
|
|
16.3
|
|
||||||
Net income
|
|
138.0
|
|
|
176.4
|
|
|
307.5
|
|
|
256.2
|
|
|
(740.1
|
)
|
|
138.0
|
|
||||||
Net loss attributable to the noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37.5
|
)
|
|
—
|
|
|
(37.5
|
)
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc.
|
|
138.0
|
|
|
176.4
|
|
|
307.5
|
|
|
218.7
|
|
|
(740.1
|
)
|
|
100.5
|
|
||||||
Preferred dividends and accretion of preferred stock issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
138.0
|
|
|
$
|
176.4
|
|
|
$
|
307.5
|
|
|
$
|
218.7
|
|
|
$
|
(740.1
|
)
|
|
$
|
100.5
|
|
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2016
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114.0
|
|
|
$
|
371.9
|
|
|
$
|
—
|
|
|
$
|
485.9
|
|
Hotel
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116.2
|
|
|
—
|
|
|
116.2
|
|
||||||
Sale of real estate
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
17.1
|
|
|
—
|
|
|
29.3
|
|
||||||
Investment management, property services, and research fees
|
|
—
|
|
|
—
|
|
|
53.7
|
|
|
5.7
|
|
|
—
|
|
|
59.4
|
|
||||||
Loan purchases, loan originations, and other
|
|
—
|
|
|
0.1
|
|
|
1.1
|
|
|
11.4
|
|
|
—
|
|
|
12.6
|
|
||||||
Total revenue
|
|
—
|
|
|
0.1
|
|
|
181.0
|
|
|
522.3
|
|
|
—
|
|
|
703.4
|
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental operating
|
|
—
|
|
|
—
|
|
|
48.7
|
|
|
86.7
|
|
|
—
|
|
|
135.4
|
|
||||||
Hotel operating
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96.3
|
|
|
—
|
|
|
96.3
|
|
||||||
Cost of real estate sold
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
12.5
|
|
|
—
|
|
|
22.1
|
|
||||||
Commission and marketing
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|
0.7
|
|
|
—
|
|
|
8.0
|
|
||||||
Compensation and related
|
|
65.1
|
|
|
66.4
|
|
|
47.5
|
|
|
7.5
|
|
|
—
|
|
|
186.5
|
|
||||||
General and administrative
|
|
—
|
|
|
15.9
|
|
|
16.3
|
|
|
13.2
|
|
|
—
|
|
|
45.4
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
1.3
|
|
|
39.5
|
|
|
157.4
|
|
|
—
|
|
|
198.2
|
|
||||||
Total operating expenses
|
|
65.1
|
|
|
83.6
|
|
|
168.9
|
|
|
374.3
|
|
|
—
|
|
|
691.9
|
|
||||||
Income from unconsolidated investments
|
|
—
|
|
|
5.6
|
|
|
64.0
|
|
|
57.0
|
|
|
—
|
|
|
126.6
|
|
||||||
Income from consolidated subsidiaries
|
|
141.6
|
|
|
285.1
|
|
|
204.9
|
|
|
—
|
|
|
(631.6
|
)
|
|
—
|
|
||||||
Operating income
|
|
76.5
|
|
|
207.2
|
|
|
281.0
|
|
|
205.0
|
|
|
(631.6
|
)
|
|
138.1
|
|
||||||
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sale of real estate
|
|
—
|
|
|
—
|
|
|
19.6
|
|
|
111.1
|
|
|
—
|
|
|
130.7
|
|
||||||
Acquisition-related gains
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|
8.6
|
|
|
—
|
|
|
16.2
|
|
||||||
Acquisition-related expenses
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(7.2
|
)
|
|
—
|
|
|
(9.5
|
)
|
||||||
Interest expense
|
|
—
|
|
|
(54.2
|
)
|
|
(25.4
|
)
|
|
(112.0
|
)
|
|
—
|
|
|
(191.6
|
)
|
||||||
Other income (loss)
|
|
—
|
|
|
7.7
|
|
|
(2.7
|
)
|
|
1.6
|
|
|
—
|
|
|
6.6
|
|
||||||
Income before benefit from income taxes
|
|
76.5
|
|
|
160.7
|
|
|
277.8
|
|
|
207.1
|
|
|
(631.6
|
)
|
|
90.5
|
|
||||||
Provision for income taxes
|
|
—
|
|
|
(19.1
|
)
|
|
7.3
|
|
|
(2.2
|
)
|
|
—
|
|
|
(14.0
|
)
|
||||||
Net income
|
|
76.5
|
|
|
141.6
|
|
|
285.1
|
|
|
204.9
|
|
|
(631.6
|
)
|
|
76.5
|
|
||||||
Net income attributable to the noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70.9
|
)
|
|
—
|
|
|
(70.9
|
)
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc.
|
|
76.5
|
|
|
141.6
|
|
|
285.1
|
|
|
134.0
|
|
|
(631.6
|
)
|
|
5.6
|
|
||||||
Preferred dividends and accretion of preferred stock issuance costs
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
73.7
|
|
|
$
|
141.6
|
|
|
$
|
285.1
|
|
|
$
|
134.0
|
|
|
$
|
(631.6
|
)
|
|
$
|
2.8
|
|
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2015
(
Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
(1)
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental
|
|
—
|
|
|
—
|
|
|
65.4
|
|
|
339.4
|
|
|
—
|
|
|
404.8
|
|
||||||
Hotel
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.4
|
|
|
—
|
|
|
106.4
|
|
||||||
Sale of real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
||||||
Investment management, property services, and research fees
|
|
—
|
|
|
—
|
|
|
66.1
|
|
|
3.2
|
|
|
—
|
|
|
69.3
|
|
||||||
Loan purchases, loan originations, and other
|
|
—
|
|
|
0.1
|
|
|
1.2
|
|
|
18.2
|
|
|
—
|
|
|
19.5
|
|
||||||
Total revenue
|
|
—
|
|
|
0.1
|
|
|
132.7
|
|
|
470.9
|
|
|
—
|
|
|
603.7
|
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rental operating
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|
82.7
|
|
|
—
|
|
|
108.0
|
|
||||||
Hotel operating
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89.9
|
|
|
—
|
|
|
89.9
|
|
||||||
Cost of real estate sold
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
2.6
|
|
||||||
Commission and marketing
|
|
—
|
|
|
1.6
|
|
|
4.6
|
|
|
1.1
|
|
|
—
|
|
|
7.3
|
|
||||||
Compensation and related
|
|
30.8
|
|
|
50.1
|
|
|
65.4
|
|
|
8.5
|
|
|
—
|
|
|
154.8
|
|
||||||
General and administrative
|
|
—
|
|
|
15.0
|
|
|
16.7
|
|
|
12.1
|
|
|
—
|
|
|
43.8
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
0.8
|
|
|
20.8
|
|
|
144.7
|
|
|
—
|
|
|
166.3
|
|
||||||
Total operating expenses
|
|
30.8
|
|
|
67.5
|
|
|
132.8
|
|
|
341.6
|
|
|
—
|
|
|
572.7
|
|
||||||
Income from unconsolidated investments
|
|
—
|
|
|
0.4
|
|
|
79.3
|
|
|
17.7
|
|
|
—
|
|
|
97.4
|
|
||||||
Income from consolidated subsidiaries
|
|
89.8
|
|
|
220.1
|
|
|
95.9
|
|
|
—
|
|
|
(405.8
|
)
|
|
—
|
|
||||||
Operating income
|
|
59.0
|
|
|
153.1
|
|
|
175.1
|
|
|
147.0
|
|
|
(405.8
|
)
|
|
128.4
|
|
||||||
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sale of real estate
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
72.3
|
|
|
—
|
|
|
72.4
|
|
||||||
Acquisition-related gains
|
|
—
|
|
|
—
|
|
|
70.0
|
|
|
38.1
|
|
|
—
|
|
|
108.1
|
|
||||||
Acquisition-related expenses
|
|
—
|
|
|
(0.8
|
)
|
|
(0.7
|
)
|
|
(35.8
|
)
|
|
—
|
|
|
(37.3
|
)
|
||||||
Interest expense
|
|
—
|
|
|
(47.9
|
)
|
|
(15.8
|
)
|
|
(93.0
|
)
|
|
—
|
|
|
(156.7
|
)
|
||||||
Other income (loss)
|
|
—
|
|
|
1.0
|
|
|
(1.7
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
(2.5
|
)
|
||||||
Income before provision for income taxes
|
|
59.0
|
|
|
105.4
|
|
|
227.0
|
|
|
126.8
|
|
|
(405.8
|
)
|
|
112.4
|
|
||||||
Provision for income taxes
|
|
—
|
|
|
(15.6
|
)
|
|
(6.9
|
)
|
|
(30.9
|
)
|
|
—
|
|
|
(53.4
|
)
|
||||||
Net income
|
|
59.0
|
|
|
89.8
|
|
|
220.1
|
|
|
95.9
|
|
|
(405.8
|
)
|
|
59.0
|
|
||||||
Net income attributable to the noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
|
—
|
|
|
15.7
|
|
||||||
Net income attributable to Kennedy-Wilson Holdings, Inc.
|
|
59.0
|
|
|
89.8
|
|
|
220.1
|
|
|
111.6
|
|
|
(405.8
|
)
|
|
74.7
|
|
||||||
Preferred dividends and accretion of preferred stock issuance costs
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
||||||
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders
|
|
$
|
55.4
|
|
|
$
|
89.8
|
|
|
$
|
220.1
|
|
|
$
|
111.6
|
|
|
$
|
(405.8
|
)
|
|
$
|
71.1
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2017
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Net income (loss)
|
|
$
|
138.0
|
|
|
$
|
176.4
|
|
|
$
|
307.5
|
|
|
$
|
256.2
|
|
|
$
|
(740.1
|
)
|
|
$
|
138.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain on marketable securities
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.2
|
|
||||||
Unrealized foreign currency translation gain
|
|
155.3
|
|
|
155.3
|
|
|
30.6
|
|
|
458.7
|
|
|
(644.6
|
)
|
|
155.3
|
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
|
2.0
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
(4.0
|
)
|
|
2.0
|
|
||||||
Unrealized forward contract forward currency loss
|
|
(68.3
|
)
|
|
(68.3
|
)
|
|
(21.9
|
)
|
|
(46.4
|
)
|
|
136.6
|
|
|
(68.3
|
)
|
||||||
Total other comprehensive income for the period
|
|
$
|
89.2
|
|
|
$
|
89.2
|
|
|
$
|
8.7
|
|
|
$
|
414.3
|
|
|
$
|
(512.2
|
)
|
|
$
|
89.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
|
227.2
|
|
|
265.6
|
|
|
316.2
|
|
|
670.5
|
|
|
(1,252.3
|
)
|
|
227.2
|
|
||||||
Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124.2
|
)
|
|
—
|
|
|
(124.2
|
)
|
||||||
Comprehensive income attributable to Kennedy-Wilson Holdings, Inc.
|
|
$
|
227.2
|
|
|
$
|
265.6
|
|
|
$
|
316.2
|
|
|
$
|
546.3
|
|
|
$
|
(1,252.3
|
)
|
|
$
|
103.0
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2016
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Net income (loss)
|
|
$
|
76.5
|
|
|
$
|
141.6
|
|
|
$
|
285.1
|
|
|
$
|
204.9
|
|
|
$
|
(631.6
|
)
|
|
$
|
76.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain on marketable securities
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
||||||
Unrealized foreign currency translation loss
|
|
(164.1
|
)
|
|
(164.1
|
)
|
|
(23.1
|
)
|
|
(161.9
|
)
|
|
349.1
|
|
|
(164.1
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
|
3.4
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|
(6.8
|
)
|
|
3.4
|
|
||||||
Unrealized forward contract forward currency (loss) gain
|
|
(100.1
|
)
|
|
(100.1
|
)
|
|
21.3
|
|
|
(121.4
|
)
|
|
200.2
|
|
|
(100.1
|
)
|
||||||
Total other comprehensive (loss) income for the period
|
|
(260.7
|
)
|
|
(260.7
|
)
|
|
(1.8
|
)
|
|
(279.9
|
)
|
|
542.4
|
|
|
(260.7
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
|
$
|
(184.2
|
)
|
|
$
|
(119.1
|
)
|
|
$
|
283.3
|
|
|
$
|
(75.0
|
)
|
|
$
|
(89.2
|
)
|
|
$
|
(184.2
|
)
|
Comprehensive loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
166.3
|
|
|
—
|
|
|
166.3
|
|
||||||
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc.
|
|
$
|
(184.2
|
)
|
|
$
|
(119.1
|
)
|
|
$
|
283.3
|
|
|
$
|
91.3
|
|
|
$
|
(89.2
|
)
|
|
$
|
(17.9
|
)
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2015
(Dollars in millions)
|
||||||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Elimination
|
|
Consolidated Total
|
||||||||||||
Net income (loss)
|
|
$
|
59.0
|
|
|
$
|
89.8
|
|
|
$
|
220.1
|
|
|
$
|
95.9
|
|
|
$
|
(405.8
|
)
|
|
$
|
59.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain on marketable securities
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
||||||
Unrealized foreign currency translation gain (loss)
|
|
(138.3
|
)
|
|
(138.3
|
)
|
|
(13.6
|
)
|
|
(29.6
|
)
|
|
181.5
|
|
|
(138.3
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
|
9.7
|
|
|
9.7
|
|
|
(0.6
|
)
|
|
10.3
|
|
|
(19.4
|
)
|
|
9.7
|
|
||||||
Unrealized forward contract forward currency gain (loss)
|
|
6.3
|
|
|
6.3
|
|
|
11.5
|
|
|
(5.2
|
)
|
|
(12.6
|
)
|
|
6.3
|
|
||||||
Total other comprehensive loss for the period
|
|
(122.2
|
)
|
|
(122.2
|
)
|
|
(2.7
|
)
|
|
(24.5
|
)
|
|
149.4
|
|
|
(122.2
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive (loss) income
|
|
$
|
(63.2
|
)
|
|
$
|
(32.4
|
)
|
|
$
|
217.4
|
|
|
$
|
71.4
|
|
|
$
|
(256.4
|
)
|
|
$
|
(63.2
|
)
|
Comprehensive loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118.4
|
|
|
—
|
|
|
118.4
|
|
||||||
Comprehensive income (loss) attributable to Kennedy-Wilson Holdings, Inc.
|
|
$
|
(63.2
|
)
|
|
$
|
(32.4
|
)
|
|
$
|
217.4
|
|
|
$
|
189.8
|
|
|
$
|
(256.4
|
)
|
|
$
|
55.2
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2017
(Dollars in millions)
|
||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Consolidated Total
|
||||||||||
Net cash provided by operating activities
|
|
$
|
(15.3
|
)
|
|
$
|
(182.8
|
)
|
|
$
|
(51.4
|
)
|
|
$
|
322.5
|
|
|
$
|
73.0
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collections of loans
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
10.5
|
|
|
16.9
|
|
|||||
Net proceeds from sale of real estate
|
|
—
|
|
|
—
|
|
|
130.8
|
|
|
528.3
|
|
|
659.1
|
|
|||||
Purchases of and additions to real estate
|
|
—
|
|
|
—
|
|
|
(422.5
|
)
|
|
(391.8
|
)
|
|
(814.3
|
)
|
|||||
Investment in marketable securities
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||||
Proceeds from sale of marketable securities
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||||
Investing distributions from unconsolidated investments
|
|
—
|
|
|
—
|
|
|
95.2
|
|
|
38.2
|
|
|
133.4
|
|
|||||
Contributions to unconsolidated investments
|
|
—
|
|
|
—
|
|
|
(49.8
|
)
|
|
(30.1
|
)
|
|
(79.9
|
)
|
|||||
Proceeds from settlement of foreign currency derivative contracts
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|||||
Purchases of foreign currency derivative contracts
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|||||
Additions to development project asset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.4
|
)
|
|
(19.4
|
)
|
|||||
Proceeds from development project asset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36.9
|
|
|
36.9
|
|
|||||
(Investments in) distributions from consolidated subsidiaries, net
|
|
198.0
|
|
|
(126.2
|
)
|
|
166.3
|
|
|
(238.1
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
|
198.0
|
|
|
(129.4
|
)
|
|
(73.3
|
)
|
|
(65.5
|
)
|
|
(70.2
|
)
|
|||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of senior notes payable
|
|
—
|
|
|
(55.0
|
)
|
|
—
|
|
|
—
|
|
|
(55.0
|
)
|
|||||
Costs associated with KWE Transaction
|
|
(55.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55.8
|
)
|
|||||
Borrowings under lines of credit
|
|
—
|
|
|
800.0
|
|
|
—
|
|
|
—
|
|
|
800.0
|
|
|||||
Repayment of lines of credit
|
|
—
|
|
|
(500.0
|
)
|
|
—
|
|
|
—
|
|
|
(500.0
|
)
|
|||||
Borrowings under investment debt
|
|
—
|
|
|
—
|
|
|
239.5
|
|
|
608.8
|
|
|
848.3
|
|
|||||
Repayment of investment debt
|
|
—
|
|
|
—
|
|
|
(103.4
|
)
|
|
(581.3
|
)
|
|
(684.7
|
)
|
|||||
Debt issue costs
|
|
—
|
|
|
(5.4
|
)
|
|
(1.9
|
)
|
|
(2.2
|
)
|
|
(9.5
|
)
|
|||||
Repurchase of common stock
|
|
(67.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67.7
|
)
|
|||||
Cash paid to acquire noncontrolling interest in KWE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(719.8
|
)
|
|
(719.8
|
)
|
|||||
Dividends paid
|
|
(59.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59.2
|
)
|
|||||
Acquisitions of noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
(3.3
|
)
|
|||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.4
|
|
|
47.4
|
|
|||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106.0
|
)
|
|
(106.0
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
(182.7
|
)
|
|
239.6
|
|
|
134.2
|
|
|
(756.4
|
)
|
|
(565.3
|
)
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28.1
|
|
|
28.1
|
|
|||||
Net change in cash and cash equivalents
|
|
—
|
|
|
(72.6
|
)
|
|
9.5
|
|
|
(471.3
|
)
|
|
(534.4
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
|
—
|
|
|
106.0
|
|
|
45.4
|
|
|
734.3
|
|
|
885.7
|
|
|||||
Cash and cash equivalents, end of year
|
|
$
|
—
|
|
|
$
|
33.4
|
|
|
$
|
54.9
|
|
|
$
|
263.0
|
|
|
$
|
351.3
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2016
(Dollars in millions)
|
||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Consolidated Total
|
||||||||||
Net cash (used in) provided by operating activities:
|
|
$
|
(0.2
|
)
|
|
$
|
(207.9
|
)
|
|
$
|
102.2
|
|
|
$
|
208.8
|
|
|
$
|
102.9
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to loans
|
|
—
|
|
|
(11.6
|
)
|
|
(4.5
|
)
|
|
—
|
|
|
(16.1
|
)
|
|||||
Collections of loans
|
|
—
|
|
|
6.6
|
|
|
4.9
|
|
|
135.4
|
|
|
146.9
|
|
|||||
Net proceeds from sale of real estate
|
|
—
|
|
|
—
|
|
|
109.2
|
|
|
430.9
|
|
|
540.1
|
|
|||||
Purchases of and additions to real estate
|
|
—
|
|
|
—
|
|
|
(404.2
|
)
|
|
(545.4
|
)
|
|
(949.6
|
)
|
|||||
Investment in marketable securities
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
|||||
Investing distributions from unconsolidated investments
|
|
—
|
|
|
|
|
54.5
|
|
|
35.1
|
|
|
89.6
|
|
||||||
Contributions to unconsolidated investments
|
|
—
|
|
|
(1.0
|
)
|
|
(104.4
|
)
|
|
(19.5
|
)
|
|
(124.9
|
)
|
|||||
Proceeds from settlement of foreign currency derivative contracts
|
|
—
|
|
|
38.6
|
|
|
—
|
|
|
—
|
|
|
38.6
|
|
|||||
Purchases of foreign currency derivative contracts
|
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
|||||
(Investments in) distributions from consolidated subsidiaries, net
|
|
129.8
|
|
|
(36.9
|
)
|
|
(95.4
|
)
|
|
2.5
|
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
|
129.8
|
|
|
(12.4
|
)
|
|
(443.1
|
)
|
|
39.0
|
|
|
(286.7
|
)
|
|||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under senior notes payable
|
|
—
|
|
|
250.0
|
|
|
—
|
|
|
—
|
|
|
250.0
|
|
|||||
Borrowings under lines of credit
|
|
—
|
|
|
125.0
|
|
|
—
|
|
|
—
|
|
|
125.0
|
|
|||||
Repayment of lines of credit
|
|
—
|
|
|
(125.0
|
)
|
|
—
|
|
|
—
|
|
|
(125.0
|
)
|
|||||
Borrowings under investment debt
|
|
—
|
|
|
—
|
|
|
530.9
|
|
|
658.8
|
|
|
1,189.7
|
|
|||||
Repayment of investment debt
|
|
—
|
|
|
—
|
|
|
(179.5
|
)
|
|
(428.6
|
)
|
|
(608.1
|
)
|
|||||
Debt issue costs
|
|
—
|
|
|
(3.9
|
)
|
|
(2.1
|
)
|
|
(4.8
|
)
|
|
(10.8
|
)
|
|||||
Repurchase of common stock
|
|
(64.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64.8
|
)
|
|||||
Dividends paid
|
|
(64.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64.8
|
)
|
|||||
Acquisitions of noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(196.9
|
)
|
|
(196.9
|
)
|
|||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.1
|
|
|
42.1
|
|
|||||
Distributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(116.6
|
)
|
|
(116.6
|
)
|
|||||
Net cash provided by financing activities
|
|
(129.6
|
)
|
|
246.1
|
|
|
349.3
|
|
|
(46.0
|
)
|
|
419.8
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81.9
|
)
|
|
(81.9
|
)
|
|||||
Net change in cash and cash equivalents
|
|
—
|
|
|
25.8
|
|
|
8.4
|
|
|
119.9
|
|
|
154.1
|
|
|||||
Cash and cash equivalents, beginning of year
|
|
—
|
|
|
80.2
|
|
|
37.0
|
|
|
614.4
|
|
|
731.6
|
|
|||||
Cash and cash equivalents, end of year
|
|
$
|
—
|
|
|
$
|
106.0
|
|
|
$
|
45.4
|
|
|
$
|
734.3
|
|
|
$
|
885.7
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2015
(
Dollars in millions)
|
||||||||||||||||||||
|
|
Parent
|
|
Kennedy-Wilson, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-guarantor Subsidiaries
|
|
Consolidated Total
|
||||||||||
Net cash provided by (used in) operating activities:
|
|
$
|
5.3
|
|
|
$
|
67.4
|
|
|
$
|
105.4
|
|
|
$
|
0.1
|
|
|
$
|
178.2
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to loans
|
|
—
|
|
|
(41.0
|
)
|
|
—
|
|
|
(194.8
|
)
|
|
(235.8
|
)
|
|||||
Settlements of loans
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|
19.0
|
|
|
27.8
|
|
|||||
Net proceeds from sale of real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
622.6
|
|
|
622.6
|
|
|||||
Purchases of and additions to real estate
|
|
—
|
|
|
—
|
|
|
(220.3
|
)
|
|
(1,707.3
|
)
|
|
(1,927.6
|
)
|
|||||
Nonrefundable escrow deposits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|
(3.8
|
)
|
|||||
Investment in marketable securities
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|
—
|
|
|
(5.0
|
)
|
|||||
Proceeds from sale of marketable securities
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
6.2
|
|
|||||
Distributions from unconsolidated investments
|
|
—
|
|
|
—
|
|
|
83.1
|
|
|
96.9
|
|
|
180.0
|
|
|||||
Contributions to unconsolidated investments
|
|
—
|
|
|
(2.9
|
)
|
|
(81.5
|
)
|
|
(99.9
|
)
|
|
(184.3
|
)
|
|||||
Proceeds from settlement of foreign currency derivative contracts
|
|
—
|
|
|
23.4
|
|
|
—
|
|
|
18.1
|
|
|
41.5
|
|
|||||
Purchases of foreign currency derivative contracts
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
(5.2
|
)
|
|||||
(Investments in) distributions from consolidated subsidiaries, net
|
|
(157.1
|
)
|
|
128.4
|
|
|
(40.0
|
)
|
|
68.7
|
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
|
(157.1
|
)
|
|
104.3
|
|
|
(248.7
|
)
|
|
(1,182.1
|
)
|
|
(1,483.6
|
)
|
|||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under lines of credit
|
|
—
|
|
|
95.0
|
|
|
—
|
|
|
—
|
|
|
95.0
|
|
|||||
Repayment of lines of credit
|
|
—
|
|
|
(220.0
|
)
|
|
—
|
|
|
—
|
|
|
(220.0
|
)
|
|||||
Borrowings under investment debt
|
|
—
|
|
|
—
|
|
|
168.1
|
|
|
1,919.8
|
|
|
2,087.9
|
|
|||||
Repayment of investment debt
|
|
—
|
|
|
—
|
|
|
(7.4
|
)
|
|
(673.7
|
)
|
|
(681.1
|
)
|
|||||
Debt issuance costs
|
|
—
|
|
|
(4.7
|
)
|
|
(1.4
|
)
|
|
(15.6
|
)
|
|
(21.7
|
)
|
|||||
Issuance of common stock
|
|
215.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215.0
|
|
|||||
Repurchase of common stock
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|||||
Dividends paid
|
|
(51.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51.8
|
)
|
|||||
Acquisitions of noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68.4
|
)
|
|
(68.4
|
)
|
|||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.5
|
|
|
14.5
|
|
|||||
Distributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239.2
|
)
|
|
(239.2
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
151.8
|
|
|
(129.7
|
)
|
|
159.3
|
|
|
937.4
|
|
|
1,118.8
|
|
|||||
Effect of currency exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.5
|
)
|
|
(19.5
|
)
|
|||||
Net change in cash and cash equivalents
|
|
—
|
|
|
42.0
|
|
|
16.0
|
|
|
(264.1
|
)
|
|
(206.1
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
|
—
|
|
|
38.2
|
|
|
21.0
|
|
|
878.5
|
|
|
937.7
|
|
|||||
Cash and cash equivalents, end of year
|
|
$
|
—
|
|
|
$
|
80.2
|
|
|
$
|
37.0
|
|
|
$
|
614.4
|
|
|
$
|
731.6
|
|
(Dollars in millions, except earnings per share amounts)
|
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2017
|
|
Fourth
Quarter
|
|
Third
Quarter
|
|
Second
Quarter
|
|
First
Quarter
|
||||||||
Revenues
|
|
$
|
181.5
|
|
|
$
|
277.2
|
|
|
$
|
177.8
|
|
|
$
|
174.2
|
|
Operating expenses
|
|
206.0
|
|
|
231.2
|
|
|
178.3
|
|
|
155.4
|
|
||||
Income from unconsolidated investments
|
|
20.2
|
|
|
12.9
|
|
|
13.4
|
|
|
22.6
|
|
||||
Operating (loss) income
|
|
(4.3
|
)
|
|
58.9
|
|
|
12.9
|
|
|
41.4
|
|
||||
Non-operating (expenses) income
|
|
92.5
|
|
|
(52.8
|
)
|
|
17.7
|
|
|
(44.4
|
)
|
||||
Income (loss) before provision for income taxes
|
|
88.2
|
|
|
6.1
|
|
|
30.6
|
|
|
(3.0
|
)
|
||||
(Provision for) benefit from income taxes
|
|
17.2
|
|
|
3.7
|
|
|
(8.8
|
)
|
|
4.2
|
|
||||
Net income (loss)
|
|
105.4
|
|
|
9.8
|
|
|
21.8
|
|
|
1.2
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
|
(6.2
|
)
|
|
(18.7
|
)
|
|
(12.4
|
)
|
|
(0.2
|
)
|
||||
Preferred stock dividends and accretion of issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net (loss) income attributable to Kennedy-Wilson
Holdings, Inc. common shareholders |
|
$
|
99.2
|
|
|
$
|
(8.9
|
)
|
|
$
|
9.4
|
|
|
$
|
1.0
|
|
Basic (loss) earnings per share
|
|
$
|
0.69
|
|
|
$
|
(0.08
|
)
|
|
$
|
0.08
|
|
|
$
|
—
|
|
Diluted (loss) earnings per share
|
|
$
|
0.69
|
|
|
$
|
(0.08
|
)
|
|
$
|
0.08
|
|
|
$
|
—
|
|
(Dollars in millions, except earnings per share amounts)
|
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2016
|
|
Fourth
Quarter |
|
Third
Quarter |
|
Second
Quarter |
|
First
Quarter |
||||||||
Revenues
|
|
$
|
180.4
|
|
|
$
|
174.3
|
|
|
$
|
176.5
|
|
|
$
|
172.2
|
|
Operating expenses
|
|
194.3
|
|
|
166.1
|
|
|
168.6
|
|
|
162.9
|
|
||||
Income from unconsolidated investments
|
|
67.3
|
|
|
31.7
|
|
|
8.4
|
|
|
19.2
|
|
||||
Operating income (loss)
|
|
53.4
|
|
|
39.9
|
|
|
16.3
|
|
|
28.5
|
|
||||
Non-operating (expenses) income
|
|
3.7
|
|
|
(21.3
|
)
|
|
(22.4
|
)
|
|
(7.6
|
)
|
||||
Income (loss) before provision for income taxes
|
|
57.1
|
|
|
18.6
|
|
|
(6.1
|
)
|
|
20.9
|
|
||||
(Provision for) benefit from income taxes
|
|
(11.9
|
)
|
|
(5.5
|
)
|
|
3.9
|
|
|
(0.5
|
)
|
||||
Net income (loss)
|
|
45.2
|
|
|
13.1
|
|
|
(2.2
|
)
|
|
20.4
|
|
||||
Net (income) loss attributable to noncontrolling interests
|
|
(29.6
|
)
|
|
(15.1
|
)
|
|
1.1
|
|
|
(27.3
|
)
|
||||
Preferred stock dividends and accretion of issuance costs
|
|
(1.2
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
(0.6
|
)
|
||||
Net (loss) income attributable to Kennedy-Wilson
Holdings, Inc. common shareholders |
|
$
|
14.4
|
|
|
$
|
(2.5
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(7.5
|
)
|
Basic (loss) earnings per share
|
|
$
|
0.13
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.07
|
)
|
Diluted (loss) earnings per share
|
|
$
|
0.13
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.07
|
)
|
(Dollars in millions)
|
|
|
|
|
|
Initial Cost
|
|
Costs Capitalized Subsequent to Acquisition
|
|
Gross Balance at December 31, 2017
(1)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Description
|
|
Region
|
|
Encumbrances
|
|
Land
|
|
Building & Improvements
|
|
Improvements
|
|
Land
|
|
Building & Improvements
|
|
Total
(2)
|
|
Accumulated Depreciation
|
|
Depreciable Life in Years
|
|
Date of Construction
|
|
Date Acquired
(3)
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office
|
|
Southern California
|
|
$
|
34.2
|
|
|
$
|
11.2
|
|
|
$
|
18.5
|
|
|
$
|
34.6
|
|
|
$
|
11.5
|
|
|
$
|
54.1
|
|
|
$
|
65.6
|
|
|
$
|
(3.3
|
)
|
|
39 yrs
|
|
1955/1981/1982
|
|
2013
|
Retail
|
|
Mountain States
|
|
3.6
|
|
|
1.3
|
|
|
4.2
|
|
|
0.4
|
|
|
1.3
|
|
|
4.6
|
|
|
5.9
|
|
|
(0.5
|
)
|
|
39 yrs
|
|
1981
|
|
2013
|
||||||||
Retail
|
|
Mountain States
|
|
5.3
|
|
|
2.1
|
|
|
2.9
|
|
|
0.9
|
|
|
1.8
|
|
|
3.8
|
|
|
5.6
|
|
|
(0.4
|
)
|
|
39 yrs
|
|
1958/1974-1976/1985/1989/2006
|
|
2013
|
||||||||
Retail
|
|
Mountain States
|
|
11.2
|
|
|
5.1
|
|
|
7.8
|
|
|
1.1
|
|
|
5.1
|
|
|
8.9
|
|
|
14.0
|
|
|
(0.9
|
)
|
|
39 yrs
|
|
1989
|
|
2013
|
||||||||
Retail
|
|
Mountain States
|
|
7.4
|
|
|
3.5
|
|
|
7.4
|
|
|
1.3
|
|
|
3.5
|
|
|
8.7
|
|
|
12.2
|
|
|
(0.9
|
)
|
|
39 yrs
|
|
1980/1983
|
|
2013
|
||||||||
Retail
|
|
Northern California
|
|
6.9
|
|
|
2.7
|
|
|
6.7
|
|
|
1.1
|
|
|
2.7
|
|
|
7.8
|
|
|
10.5
|
|
|
(0.7
|
)
|
|
39 yrs
|
|
1975
|
|
2013
|
||||||||
Retail
|
|
Southern California
|
|
24.5
|
|
|
9.1
|
|
|
14.0
|
|
|
9.4
|
|
|
9.1
|
|
|
23.4
|
|
|
32.5
|
|
|
(1.6
|
)
|
|
39 yrs
|
|
1985
|
|
2014
|
||||||||
Retail
|
|
Mountain States
|
|
7.2
|
|
|
2.3
|
|
|
5.4
|
|
|
1.5
|
|
|
2.3
|
|
|
6.8
|
|
|
9.1
|
|
|
(0.7
|
)
|
|
39 yrs
|
|
1979/1980
|
|
2014
|
||||||||
Commercial portfolio
|
|
United Kingdom
|
|
—
|
|
|
47.5
|
|
|
121.2
|
|
|
20.1
|
|
|
38.8
|
|
|
118.5
|
|
|
157.3
|
|
|
(10.4
|
)
|
|
39 yrs
|
|
Various
|
|
2014
|
||||||||
Commercial portfolio
|
|
United Kingdom
|
|
171.8
|
|
|
88.9
|
|
|
328.9
|
|
|
11.5
|
|
|
72.3
|
|
|
274.7
|
|
|
347.0
|
|
|
(25.4
|
)
|
|
39 yrs
|
|
Various
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
2.1
|
|
|
8.8
|
|
|
4.1
|
|
|
1.5
|
|
|
13.9
|
|
|
15.4
|
|
|
(2.1
|
)
|
|
39 yrs
|
|
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
13.9
|
|
|
21.9
|
|
|
0.3
|
|
|
12.2
|
|
|
71.5
|
|
|
83.7
|
|
|
(3.2
|
)
|
|
39 yrs
|
|
1973/2016
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
84.5
|
|
|
8.2
|
|
|
102.6
|
|
|
—
|
|
|
7.2
|
|
|
90.4
|
|
|
97.6
|
|
|
(7.9
|
)
|
|
39 yrs
|
|
2003
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
57.6
|
|
|
5.0
|
|
|
63.0
|
|
|
0.5
|
|
|
4.4
|
|
|
56.1
|
|
|
60.5
|
|
|
(5.0
|
)
|
|
39 yrs
|
|
1999/2006
|
|
2014
|
||||||||
Retail
|
|
Ireland
|
|
104.4
|
|
|
59.8
|
|
|
83.1
|
|
|
12.4
|
|
|
52.7
|
|
|
86.0
|
|
|
138.7
|
|
|
(6.7
|
)
|
|
39 yrs
|
|
1966/2005
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
82.3
|
|
|
20.4
|
|
|
73.8
|
|
|
0.2
|
|
|
18.0
|
|
|
65.2
|
|
|
83.2
|
|
|
(5.7
|
)
|
|
39 yrs
|
|
1980
|
|
2014
|
||||||||
Office
|
|
United Kingdom
|
|
—
|
|
|
85.3
|
|
|
232.0
|
|
|
16.2
|
|
|
72.6
|
|
|
213.8
|
|
|
286.4
|
|
|
(17.8
|
)
|
|
39 yrs
|
|
2003
|
|
2014
|
||||||||
Office
|
|
Ireland
|
|
87.6
|
|
|
48.6
|
|
|
131.1
|
|
|
0.4
|
|
|
7.7
|
|
|
114.6
|
|
|
122.3
|
|
|
(10.8
|
)
|
|
39 yrs
|
|
2009
|
|
2014
|
||||||||
Retail
|
|
United Kingdom
|
|
71.8
|
|
|
6.2
|
|
|
109.5
|
|
|
5.6
|
|
|
5.1
|
|
|
94.8
|
|
|
99.9
|
|
|
(8.5
|
)
|
|
39 yrs
|
|
2010
|
|
2014
|
||||||||
Retail
|
|
Mountain States
|
|
12.8
|
|
|
5.7
|
|
|
12.7
|
|
|
0.7
|
|
|
5.7
|
|
|
13.4
|
|
|
19.1
|
|
|
(1.0
|
)
|
|
39 yrs
|
|
1979/1980
|
|
2015
|
||||||||
Office
|
|
Southern California
|
|
49.5
|
|
|
37.8
|
|
|
60.6
|
|
|
5.6
|
|
|
37.8
|
|
|
66.1
|
|
|
103.9
|
|
|
(5.0
|
)
|
|
39 yrs
|
|
1982
|
|
2015
|
||||||||
Office
|
|
Southern California
|
|
30.0
|
|
|
11.6
|
|
|
36.5
|
|
|
3.2
|
|
|
11.6
|
|
|
39.7
|
|
|
51.3
|
|
|
(2.9
|
)
|
|
39 yrs
|
|
1968
|
|
2015
|
||||||||
Retail
|
|
Mountain States
|
|
5.0
|
|
|
1.6
|
|
|
6.0
|
|
|
—
|
|
|
1.6
|
|
|
6.0
|
|
|
7.6
|
|
|
(0.4
|
)
|
|
39 yrs
|
|
1979/2002
|
|
2015
|
||||||||
Office
|
|
Southern California
|
|
34.9
|
|
|
20.7
|
|
|
47.9
|
|
|
25.0
|
|
|
20.7
|
|
|
52.7
|
|
|
73.4
|
|
|
(3.1
|
)
|
|
39 yrs
|
|
1982
|
|
2015
|
||||||||
Commercial portfolio
|
|
United Kingdom
|
|
339.7
|
|
|
207.3
|
|
|
316.6
|
|
|
4.6
|
|
|
184.7
|
|
|
277.0
|
|
|
461.7
|
|
|
(19.8
|
)
|
|
39 yrs
|
|
Various
|
|
2015
|
||||||||
Office portfolio
|
|
United Kingdom
|
|
—
|
|
|
95.8
|
|
|
167.4
|
|
|
8.1
|
|
|
83.2
|
|
|
142.6
|
|
|
225.8
|
|
|
(8.3
|
)
|
|
39 yrs
|
|
Various
|
|
2015
|
||||||||
Retail portfolio
|
|
Spain
|
|
51.6
|
|
|
21.5
|
|
|
60.1
|
|
|
—
|
|
|
23.4
|
|
|
65.5
|
|
|
88.9
|
|
|
(3.8
|
)
|
|
39 yrs
|
|
Various
|
|
2015
|
Retail
|
|
Spain
|
|
43.9
|
|
|
27.1
|
|
|
46.2
|
|
|
11.0
|
|
|
31.8
|
|
|
65.3
|
|
|
97.1
|
|
|
(2.7
|
)
|
|
39 yrs
|
|
1995
|
|
2015
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
0.7
|
|
|
6.8
|
|
|
—
|
|
|
0.7
|
|
|
7.2
|
|
|
7.9
|
|
|
(0.3
|
)
|
|
39 yrs
|
|
1998
|
|
2015
|
||||||||
Office portfolio
|
|
Ireland
|
|
—
|
|
|
1.8
|
|
|
9.6
|
|
|
4.3
|
|
|
4.1
|
|
|
24.7
|
|
|
28.8
|
|
|
(0.5
|
)
|
|
39 yrs
|
|
Various
|
|
2015
|
||||||||
Office portfolio
|
|
Italy
|
|
—
|
|
|
47.5
|
|
|
135.1
|
|
|
0.9
|
|
|
52.0
|
|
|
148.7
|
|
|
200.7
|
|
|
(7.2
|
)
|
|
39 yrs
|
|
Various
|
|
2015
|
||||||||
Retail
|
|
Mountain States
|
|
7.6
|
|
|
2.6
|
|
|
9.5
|
|
|
—
|
|
|
2.6
|
|
|
9.5
|
|
|
12.1
|
|
|
(0.4
|
)
|
|
39 yrs
|
|
1961
|
|
2017
|
||||||||
Office building
|
|
Ireland
|
|
—
|
|
|
2.0
|
|
|
11.9
|
|
|
—
|
|
|
2.1
|
|
|
13.0
|
|
|
15.1
|
|
|
(0.6
|
)
|
|
39 yrs
|
|
2007
|
|
2017
|
||||||||
Retail
|
|
Mountain States
|
|
29.0
|
|
|
9.3
|
|
|
30.0
|
|
|
0.6
|
|
|
9.3
|
|
|
30.5
|
|
|
39.8
|
|
|
(1.1
|
)
|
|
39 yrs
|
|
1984/2008
|
|
2017
|
||||||||
Industrial
|
|
United Kingdom
|
|
—
|
|
|
6.9
|
|
|
8.8
|
|
|
—
|
|
|
8.6
|
|
|
7.3
|
|
|
15.9
|
|
|
(0.3
|
)
|
|
39 yrs
|
|
1984/2003
|
|
2017
|
||||||||
Office portfolio
|
|
United Kingdom
|
|
—
|
|
|
32.1
|
|
|
70.4
|
|
|
0.8
|
|
|
29.9
|
|
|
66.4
|
|
|
96.3
|
|
|
(2.6
|
)
|
|
39 yrs
|
|
Various
|
|
2016
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
4.2
|
|
|
64.0
|
|
|
1.6
|
|
|
4.4
|
|
|
68.2
|
|
|
72.6
|
|
|
(2.7
|
)
|
|
39 yrs
|
|
2009
|
|
2017
|
||||||||
Industrial
|
|
United Kingdom
|
|
—
|
|
|
5.0
|
|
|
9.2
|
|
|
—
|
|
|
5.3
|
|
|
9.8
|
|
|
15.1
|
|
|
(0.3
|
)
|
|
39 yrs
|
|
2002
|
|
2017
|
||||||||
Retail
|
|
Mountain States
|
|
4.3
|
|
|
1.3
|
|
|
5.6
|
|
|
0.4
|
|
|
1.3
|
|
|
6.0
|
|
|
7.3
|
|
|
(0.2
|
)
|
|
39 yrs
|
|
1995/1996
|
|
2017
|
||||||||
Retail
|
|
Pacific Northwest
|
|
7.5
|
|
|
2.3
|
|
|
8.1
|
|
|
—
|
|
|
2.3
|
|
|
8.1
|
|
|
10.4
|
|
|
(0.1
|
)
|
|
39 yrs
|
|
1956
|
|
2017
|
||||||||
Office
|
|
Pacific Northwest
|
|
77.0
|
|
|
30.6
|
|
|
106.0
|
|
|
—
|
|
|
30.6
|
|
|
106.0
|
|
|
136.6
|
|
|
(1.6
|
)
|
|
39 yrs
|
|
1999/2001
|
|
2017
|
||||||||
Retail
|
|
Mountain States
|
|
12.9
|
|
|
4.1
|
|
|
12.2
|
|
|
—
|
|
|
4.1
|
|
|
12.2
|
|
|
16.3
|
|
|
(0.1
|
)
|
|
39 yrs
|
|
1967/1983
|
|
2017
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
4.9
|
|
|
18.5
|
|
|
—
|
|
|
4.9
|
|
|
18.8
|
|
|
23.7
|
|
|
(0.1
|
)
|
|
39 yrs
|
|
1841
|
|
2017
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
11.0
|
|
|
—
|
|
|
1.4
|
|
|
11.3
|
|
|
1.4
|
|
|
12.7
|
|
|
—
|
|
|
39 yrs
|
|
1840/2000
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Multifamily
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
450-unit asset
|
|
Mountain States
|
|
47.3
|
|
|
18.4
|
|
|
43.0
|
|
|
5.0
|
|
|
18.4
|
|
|
48.0
|
|
|
66.4
|
|
|
(7.1
|
)
|
|
39 yrs
|
|
1974
|
|
2013
|
||||||||
297-unit asset
|
|
Pacific Northwest
|
|
22.1
|
|
|
3.9
|
|
|
25.8
|
|
|
2.0
|
|
|
3.9
|
|
|
27.8
|
|
|
31.7
|
|
|
(3.3
|
)
|
|
39 yrs
|
|
1999
|
|
2013
|
||||||||
178-unit asset
|
|
Northern California
|
|
31.4
|
|
|
12.3
|
|
|
18.5
|
|
|
7.3
|
|
|
12.3
|
|
|
25.7
|
|
|
38.0
|
|
|
(5.2
|
)
|
|
39 yrs
|
|
1975
|
|
2012
|
||||||||
217-unit asset
|
|
Pacific Northwest
|
|
23.9
|
|
|
2.6
|
|
|
41.4
|
|
|
2.7
|
|
|
2.5
|
|
|
41.9
|
|
|
44.4
|
|
|
(5.9
|
)
|
|
39 yrs
|
|
2011
|
|
2012
|
||||||||
366-unit asset
|
|
Mountain States
|
|
53.3
|
|
|
9.1
|
|
|
36.3
|
|
|
7.8
|
|
|
9.1
|
|
|
44.1
|
|
|
53.2
|
|
|
(8.1
|
)
|
|
39 yrs
|
|
2000
|
|
2012
|
||||||||
205-unit asset
|
|
Ireland
|
|
55.2
|
|
|
17.7
|
|
|
55.3
|
|
|
—
|
|
|
17.3
|
|
|
54.3
|
|
|
71.6
|
|
|
(1.2
|
)
|
|
39 yrs
|
|
2007/2009
|
|
2014/2017
|
||||||||
272-unit asset
|
|
Ireland
|
|
—
|
|
|
32.7
|
|
|
81.5
|
|
|
8.7
|
|
|
28.5
|
|
|
130.0
|
|
|
158.5
|
|
|
(13.4
|
)
|
|
39 yrs
|
|
2008
|
|
2014
|
||||||||
26-unit asset
|
|
Ireland
|
|
12.4
|
|
|
0.6
|
|
|
14.8
|
|
|
—
|
|
|
0.5
|
|
|
13.2
|
|
|
13.7
|
|
|
(1.3
|
)
|
|
39 yrs
|
|
2009
|
|
2014
|
||||||||
210-unit asset
|
|
Ireland
|
|
46.1
|
|
|
12.2
|
|
|
61.6
|
|
|
—
|
|
|
10.7
|
|
|
52.7
|
|
|
63.4
|
|
|
(4.9
|
)
|
|
39 yrs
|
|
2005
|
|
2014
|
||||||||
118-unit asset
|
|
Ireland
|
|
27.5
|
|
|
11.0
|
|
|
36.1
|
|
|
2.1
|
|
|
9.6
|
|
|
33.6
|
|
|
43.2
|
|
|
(3.7
|
)
|
|
39 yrs
|
|
2007
|
|
2014
|
||||||||
423-unit asset
|
|
Ireland
|
|
122.1
|
|
|
17.9
|
|
|
105.0
|
|
|
13.6
|
|
|
18.2
|
|
|
163.6
|
|
|
181.8
|
|
|
(11.3
|
)
|
|
39 yrs
|
|
2008
|
|
2014
|
||||||||
294-unit asset
|
|
United Kingdom
|
|
—
|
|
|
22.1
|
|
|
84.0
|
|
|
16.0
|
|
|
20.3
|
|
|
93.1
|
|
|
113.4
|
|
|
(4.1
|
)
|
|
39 yrs
|
|
2012
|
|
2015
|
||||||||
203-unit asset
|
|
Pacific Northwest
|
|
19.5
|
|
|
2.6
|
|
|
23.8
|
|
|
2.2
|
|
|
2.6
|
|
|
26.1
|
|
|
28.7
|
|
|
(3.0
|
)
|
|
39 yrs
|
|
2005
|
|
2014
|
||||||||
542-unit asset
|
|
Northern California
|
|
91.5
|
|
|
38.3
|
|
|
57.5
|
|
|
7.7
|
|
|
38.3
|
|
|
65.2
|
|
|
103.5
|
|
|
(7.5
|
)
|
|
39 yrs
|
|
1987
|
|
2014
|
||||||||
240-unit asset
|
|
Pacific Northwest
|
|
18.7
|
|
|
3.9
|
|
|
22.3
|
|
|
3.4
|
|
|
3.9
|
|
|
25.7
|
|
|
29.6
|
|
|
(2.8
|
)
|
|
39 yrs
|
|
1990
|
|
2014
|
||||||||
396-unit asset
|
|
Pacific Northwest
|
|
30.6
|
|
|
8.7
|
|
|
34.7
|
|
|
5.7
|
|
|
8.7
|
|
|
40.4
|
|
|
49.1
|
|
|
(4.4
|
)
|
|
39 yrs
|
|
1989/1995
|
|
2014
|
||||||||
118-unit asset
|
|
Pacific Northwest
|
|
13.5
|
|
|
2.1
|
|
|
18.6
|
|
|
1.1
|
|
|
2.1
|
|
|
19.7
|
|
|
21.8
|
|
|
(1.9
|
)
|
|
39 yrs
|
|
1990
|
|
2014
|
||||||||
324-unit asset
|
|
Mountain States
|
|
25.8
|
|
|
3.2
|
|
|
28.6
|
|
|
5.2
|
|
|
3.2
|
|
|
33.8
|
|
|
37.0
|
|
|
(3.5
|
)
|
|
39 yrs
|
|
1996
|
|
2014
|
||||||||
280-unit asset
|
|
Pacific Northwest
|
|
37.3
|
|
|
6.0
|
|
|
40.3
|
|
|
1.7
|
|
|
6.0
|
|
|
41.9
|
|
|
47.9
|
|
|
(3.5
|
)
|
|
39 yrs
|
|
2004/2006
|
|
2014
|
||||||||
750-unit asset
|
|
Pacific Northwest
|
|
84.8
|
|
|
22.1
|
|
|
78.2
|
|
|
6.8
|
|
|
22.1
|
|
|
85.0
|
|
|
107.1
|
|
|
(7.8
|
)
|
|
39 yrs
|
|
1987
|
|
2014
|
||||||||
Condo
|
|
Pacific Northwest
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
39 yrs
|
|
2005
|
|
2014
|
208-unit asset
|
|
Southern California
|
|
37.7
|
|
|
9.3
|
|
|
37.3
|
|
|
3.5
|
|
|
9.3
|
|
|
40.8
|
|
|
50.1
|
|
|
(3.2
|
)
|
|
39 yrs
|
|
2004
|
|
2015
|
||||||||
1,008-unit asset
|
|
Northern California
|
|
175.0
|
|
|
62.7
|
|
|
152.5
|
|
|
12.0
|
|
|
62.3
|
|
|
164.4
|
|
|
226.7
|
|
|
(11.8
|
)
|
|
39 yrs
|
|
1988
|
|
2015
|
||||||||
460-unit asset
|
|
Southern California
|
|
45.4
|
|
|
13.2
|
|
|
53.0
|
|
|
2.6
|
|
|
13.2
|
|
|
55.6
|
|
|
68.8
|
|
|
(3.6
|
)
|
|
39 yrs
|
|
1988
|
|
2015
|
||||||||
204-unit asset
|
|
Mountain States
|
|
13.9
|
|
|
2.0
|
|
|
17.6
|
|
|
1.3
|
|
|
2.0
|
|
|
18.9
|
|
|
20.9
|
|
|
(0.8
|
)
|
|
39 yrs
|
|
1999
|
|
2016
|
||||||||
168-unit asset
|
|
Mountain States
|
|
10.1
|
|
|
1.8
|
|
|
13.1
|
|
|
1.4
|
|
|
1.8
|
|
|
14.4
|
|
|
16.2
|
|
|
(0.7
|
)
|
|
39 yrs
|
|
1992
|
|
2016
|
||||||||
430-unit asset
|
|
Pacific Northwest
|
|
62.6
|
|
|
12.8
|
|
|
67.4
|
|
|
1.0
|
|
|
12.8
|
|
|
68.3
|
|
|
81.1
|
|
|
(2.6
|
)
|
|
39 yrs
|
|
2006
|
|
2016
|
||||||||
386-unit asset
|
|
Southern California
|
|
64.8
|
|
|
—
|
|
|
81.4
|
|
|
3.4
|
|
|
0.6
|
|
|
84.9
|
|
|
85.5
|
|
|
(3.0
|
)
|
|
39 yrs
|
|
2002
|
|
2016
|
||||||||
157-unit asset
|
|
Southern California
|
|
42.9
|
|
|
14.5
|
|
|
46.0
|
|
|
0.3
|
|
|
14.5
|
|
|
46.3
|
|
|
60.8
|
|
|
(1.6
|
)
|
|
39 yrs
|
|
2013
|
|
2016
|
||||||||
408-unit asset
|
|
Pacific Northwest
|
|
60.4
|
|
|
9.2
|
|
|
83.3
|
|
|
1.5
|
|
|
9.3
|
|
|
84.7
|
|
|
94.0
|
|
|
(2.4
|
)
|
|
39 yrs
|
|
1998
|
|
2016
|
||||||||
300-unit asset
|
|
Mountain States
|
|
22.9
|
|
|
4.8
|
|
|
29.2
|
|
|
0.6
|
|
|
4.8
|
|
|
29.9
|
|
|
34.7
|
|
|
(0.2
|
)
|
|
39 yrs
|
|
1995
|
|
2017
|
||||||||
210-unit asset
|
|
Pacific Northwest
|
|
29.0
|
|
|
11.0
|
|
|
46.7
|
|
|
—
|
|
|
11.0
|
|
|
46.7
|
|
|
57.7
|
|
|
(0.3
|
)
|
|
39 yrs
|
|
2007
|
|
2017
|
||||||||
200-unit asset
|
|
Mountain States
|
|
20.7
|
|
|
1.4
|
|
|
25.9
|
|
|
—
|
|
|
1.4
|
|
|
26.0
|
|
|
27.4
|
|
|
(0.2
|
)
|
|
39 yrs
|
|
2012
|
|
2017
|
||||||||
264-unit asset
|
|
Pacific Northwest
|
|
25.5
|
|
|
6.4
|
|
|
44.9
|
|
|
—
|
|
|
6.4
|
|
|
45.0
|
|
|
51.4
|
|
|
(0.2
|
)
|
|
39 yrs
|
|
1997
|
|
2017
|
||||||||
343-unit asset
|
|
Pacific Northwest
|
|
84.0
|
|
|
26.8
|
|
|
107.4
|
|
|
—
|
|
|
26.8
|
|
|
107.4
|
|
|
134.2
|
|
|
(0.3
|
)
|
|
39 yrs
|
|
2016
|
|
2017
|
||||||||
179-unit asset
|
|
Pacific Northwest
|
|
32.9
|
|
|
11.9
|
|
|
47.4
|
|
|
—
|
|
|
11.9
|
|
|
47.4
|
|
|
59.3
|
|
|
—
|
|
|
39 yrs
|
|
2013
|
|
2017
|
Hotel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hotel
|
|
Northern California
|
|
38.8
|
|
|
9.8
|
|
|
76.7
|
|
|
2.7
|
|
|
16.7
|
|
|
84.2
|
|
|
100.9
|
|
|
(7.5
|
)
|
|
39 yrs
|
|
2006
|
|
2013
|
||||||||
Hotel
|
|
Mountain States
|
|
10.2
|
|
|
1.3
|
|
|
15.6
|
|
|
—
|
|
|
1.3
|
|
|
15.8
|
|
|
17.1
|
|
|
(1.4
|
)
|
|
39 yrs
|
|
1982
|
|
2014
|
||||||||
Hotel and golf course
|
|
United Kingdom
|
|
—
|
|
|
12.0
|
|
|
37.3
|
|
|
4.6
|
|
|
9.9
|
|
|
42.5
|
|
|
52.4
|
|
|
(3.2
|
)
|
|
39 yrs
|
|
2001/2008
|
|
2014
|
||||||||
Hotel and golf course
|
|
Ireland
|
|
—
|
|
|
6.8
|
|
|
30.6
|
|
|
3.4
|
|
|
6.0
|
|
|
35.6
|
|
|
41.6
|
|
|
(6.0
|
)
|
|
39 yrs
|
|
1894/1995
|
|
2014
|
||||||||
Hotel
|
|
Ireland
|
|
86.4
|
|
|
54.0
|
|
|
114.3
|
|
|
21.5
|
|
|
49.9
|
|
|
129.7
|
|
|
179.6
|
|
|
(11.1
|
)
|
|
39 yrs
|
|
1824/2005
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Single family home
|
|
Hawaii
|
|
—
|
|
|
4.1
|
|
|
4.2
|
|
|
0.1
|
|
|
3.4
|
|
|
3.3
|
|
|
6.7
|
|
|
(1.0
|
)
|
|
39 yrs
|
|
2008
|
|
2008
|
||||||||
Retail
|
|
Spain
|
|
—
|
|
|
—
|
|
|
34.7
|
|
|
10.9
|
|
|
—
|
|
|
46.9
|
|
|
46.9
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|
2015
|
||||||||
Office
|
|
Ireland
|
|
—
|
|
|
0.5
|
|
|
3.4
|
|
|
—
|
|
|
0.6
|
|
|
10.0
|
|
|
10.6
|
|
|
—
|
|
|
N/A
|
|
Various
|
|
2015
|
||||||||
Mixed-Use
|
|
Ireland
|
|
88.6
|
|
|
46.2
|
|
|
0.6
|
|
|
150.4
|
|
|
34.5
|
|
|
150.4
|
|
|
184.9
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|
2014
|
||||||||
Retail
|
|
Spain
|
|
—
|
|
|
—
|
|
|
13.8
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
|
14.8
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|
2014
|
||||||||
Retail
|
|
Ireland
|
|
—
|
|
|
17.2
|
|
|
—
|
|
|
0.5
|
|
|
18.3
|
|
|
0.5
|
|
|
18.8
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2700 acres
|
|
Hawaii
|
|
—
|
|
|
31.7
|
|
|
3.7
|
|
|
0.7
|
|
|
38.7
|
|
|
4.3
|
|
|
43.0
|
|
|
(1.4
|
)
|
|
N/A
|
|
1912
|
|
2010
|
||||||||
Grand Total
|
|
|
|
$
|
3,180.8
|
|
|
$
|
1,637.4
|
|
|
$
|
4,698.0
|
|
|
$
|
511.2
|
|
|
$
|
1,509.4
|
|
|
$
|
5,069.2
|
|
|
$
|
6,578.6
|
|
|
$
|
(344.0
|
)
|
|
|
|
|
|
|
|
|
For the year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at the beginning of period
|
|
$
|
5,805.4
|
|
|
$
|
5,624.2
|
|
|
$
|
4,067.1
|
|
Additions during the period:
|
|
|
|
|
|
|
||||||
Acquisitions through foreclosure
|
|
—
|
|
|
—
|
|
|
99.3
|
|
|||
Other acquisitions
|
|
179.5
|
|
|
542.7
|
|
|
1,473.1
|
|
|||
Improvements
|
|
615.7
|
|
|
366.9
|
|
|
168.1
|
|
|||
Consolidations
|
|
—
|
|
|
39.3
|
|
|
602.1
|
|
|||
Foreign currency
|
|
426.9
|
|
|
(423.6
|
)
|
|
(270.3
|
)
|
|||
Deductions during the period:
|
|
|
|
|
|
|
||||||
Cost of real estate sold
|
|
(448.9
|
)
|
|
(344.1
|
)
|
|
(515.2
|
)
|
|||
Balance at close of period
|
|
$
|
6,578.6
|
|
|
$
|
5,805.4
|
|
|
$
|
5,624.2
|
|
|
|
For the year ended December 31,
|
||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at the beginning of period
|
|
$
|
230.3
|
|
|
$
|
139.1
|
|
|
$
|
61.9
|
|
Additions during the period:
|
|
|
|
|
|
|
||||||
Depreciation expense
|
|
128.2
|
|
|
113.0
|
|
|
88.1
|
|
|||
Deductions during the period:
|
|
|
|
|
|
|
||||||
Dispositions
|
|
(34.8
|
)
|
|
(11.3
|
)
|
|
(7.8
|
)
|
|||
Foreign currency
|
|
20.3
|
|
|
(10.5
|
)
|
|
(3.1
|
)
|
|||
Balance at close of period
|
|
$
|
344.0
|
|
|
$
|
230.3
|
|
|
$
|
139.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Description
|
|
Region
|
|
Interest Rate
|
|
Final Maturity Date
|
|
Balloon Amount
|
|
Face Amount of Mortgages
|
|
Carrying Amount December 31, 2017
|
|
Principal Amount of Loans Subject to Delinquent Principal or Interest
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Office
|
|
Southern California
|
|
1-Mo LIBOR + 2.25%
|
|
2021
|
|
$
|
49.4
|
|
|
$
|
49.4
|
|
|
$
|
49.4
|
|
|
$
|
—
|
|
Retail
|
|
Mountain States
|
|
4.79%
|
|
2018
|
|
3.5
|
|
|
3.6
|
|
|
3.6
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.01%
|
|
2018
|
|
12.7
|
|
|
12.8
|
|
|
12.8
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.41%
|
|
2018
|
|
4.9
|
|
|
5.0
|
|
|
5.0
|
|
|
—
|
|
||||
Retail
|
|
Southern California
|
|
1-Mo LIBOR + 2.75%
|
|
2020
|
|
24.1
|
|
|
24.5
|
|
|
24.5
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.10%
|
|
2020
|
|
10.6
|
|
|
11.2
|
|
|
11.2
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
5.75%
|
|
2023
|
|
6.2
|
|
|
7.4
|
|
|
7.4
|
|
|
—
|
|
||||
Retail
|
|
Northern California
|
|
5.00%
|
|
2023
|
|
6.0
|
|
|
6.9
|
|
|
6.9
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.73%
|
|
2024
|
|
4.5
|
|
|
5.5
|
|
|
5.5
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.56%
|
|
2024
|
|
1.4
|
|
|
1.7
|
|
|
1.7
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.36%
|
|
2025
|
|
4.3
|
|
|
5.3
|
|
|
5.3
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
4.10%
|
|
2021
|
|
6.7
|
|
|
7.6
|
|
|
7.6
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
1-Mo LIBOR + 2.35%
|
|
2021
|
|
28.3
|
|
|
29.0
|
|
|
29.0
|
|
|
—
|
|
||||
Retail
|
|
Mountain States
|
|
3.99%
|
|
2019
|
|
4.2
|
|
|
4.3
|
|
|
4.3
|
|
|
—
|
|
||||
Office
|
|
Southern California
|
|
1-Mo LIBOR + 2.00%
|
|
2025
|
|
27.3
|
|
|
34.2
|
|
|
34.1
|
|
|
—
|
|
||||
Office
|
|
Southern California
|
|
1-Mo LIBOR + 2.25%
|
|
2025
|
|
24.9
|
|
|
30.0
|
|
|
30.0
|
|
|
—
|
|
||||
Office
|
|
Southern California
|
|
1-Mo LIBOR + 2.25%
|
|
2025
|
|
30.0
|
|
|
34.9
|
|
|
34.9
|
|
|
—
|
|
||||
Office
|
|
Pacific Northwest
|
|
4.75%
|
|
2020
|
|
7.1
|
|
|
7.5
|
|
|
7.5
|
|
|
—
|
|
||||
Office
|
|
Pacific Northwest
|
|
3.85%
|
|
2027
|
|
77.0
|
|
|
77.0
|
|
|
77.0
|
|
|
—
|
|
||||
Office
|
|
Mountain States
|
|
4.69%
|
|
2022
|
|
11.5
|
|
|
12.9
|
|
|
12.9
|
|
|
—
|
|
||||
Commercial portfolio
|
|
United Kingdom
|
|
3-Mo GBP LIBOR + 1.80%
|
|
2019
|
|
171.8
|
|
|
171.8
|
|
|
171.8
|
|
|
—
|
|
||||
Retail
|
|
United Kingdom
|
|
2.82%
|
|
2025
|
|
71.7
|
|
|
71.7
|
|
|
71.7
|
|
|
—
|
|
||||
Office
|
|
Ireland
|
|
3-Mo EURIBOR + 1.80%
|
|
2022
|
|
84.5
|
|
|
84.5
|
|
|
84.5
|
|
|
—
|
|
||||
Office
|
|
Ireland
|
|
3-Mo EURIBOR + 1.80%
|
|
2022
|
|
57.6
|
|
|
57.6
|
|
|
57.6
|
|
|
—
|
|
||||
Retail
|
|
Ireland
|
|
3-Mo EURIBOR + 2.00%
|
|
2022
|
|
94.8
|
|
|
104.4
|
|
|
104.4
|
|
|
—
|
|
||||
Office
|
|
Ireland
|
|
3-Mo EURIBOR + 1.80%
|
|
2022
|
|
82.3
|
|
|
82.3
|
|
|
82.3
|
|
|
—
|
|
||||
Commercial portfolio
|
|
United Kingdom
|
|
3-Mo GBP LIBOR + 2.50%
|
|
2018
|
|
25.7
|
|
|
25.7
|
|
|
25.7
|
|
|
—
|
|
||||
Commercial portfolio
|
|
United Kingdom
|
|
2.90%
|
|
2020
|
|
95.5
|
|
|
95.5
|
|
|
95.5
|
|
|
—
|
|
||||
Commercial portfolio
|
|
United Kingdom
|
|
2.91%
|
|
2023
|
|
218.5
|
|
|
218.5
|
|
|
218.5
|
|
|
—
|
|
||||
Office
|
|
Ireland
|
|
2.59%
|
|
2024
|
|
87.6
|
|
|
87.6
|
|
|
87.6
|
|
|
—
|
|
||||
Retail portfolio
|
|
Spain
|
|
3-Mo EURIBOR + 1.60%
|
|
2030
|
|
2.5
|
|
|
43.9
|
|
|
43.9
|
|
|
—
|
|
Retail portfolio
|
|
Spain
|
|
3-Mo EURIBOR + 1.60%
|
|
2031
|
|
6.7
|
|
|
51.6
|
|
|
51.6
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Multifamily
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
1,008-unit asset
|
|
Northern California
|
|
3.50%
|
|
2026
|
|
175.0
|
|
|
175.0
|
|
|
175.0
|
|
|
—
|
|
||||
460-unit asset
|
|
Southern California
|
|
4.07%
|
|
2018
|
|
31.8
|
|
|
32.5
|
|
|
32.5
|
|
|
—
|
|
||||
240-unit asset
|
|
Pacific Northwest
|
|
4.25%
|
|
2019
|
|
18.3
|
|
|
18.6
|
|
|
18.7
|
|
|
—
|
|
||||
396-unit asset
|
|
Pacific Northwest
|
|
4.25%
|
|
2019
|
|
29.8
|
|
|
30.4
|
|
|
30.6
|
|
|
—
|
|
||||
460-unit asset
|
|
Southern California
|
|
1-Mo LIBOR + 3.24%
|
|
2020
|
|
12.1
|
|
|
12.9
|
|
|
12.9
|
|
|
—
|
|
||||
203-unit asset
|
|
Pacific Northwest
|
|
3.86%
|
|
2026
|
|
17.7
|
|
|
19.5
|
|
|
19.5
|
|
|
—
|
|
||||
118-unit asset
|
|
Pacific Northwest
|
|
1-Mo LIBOR + 1.74%
|
|
2021
|
|
13.5
|
|
|
13.5
|
|
|
13.5
|
|
|
—
|
|
||||
217-unit asset
|
|
Pacific Northwest
|
|
3.35%
|
|
2023
|
|
21.0
|
|
|
23.9
|
|
|
23.9
|
|
|
—
|
|
||||
450-unit asset
|
|
Mountain States
|
|
3.58%
|
|
2023
|
|
41.2
|
|
|
47.3
|
|
|
47.3
|
|
|
—
|
|
||||
750-unit asset
|
|
Pacific Northwest
|
|
3.73%
|
|
2023
|
|
51.7
|
|
|
59.1
|
|
|
59.4
|
|
|
—
|
|
||||
750-unit asset
|
|
Pacific Northwest
|
|
1-Mo LIBOR + 3.05%
|
|
2023
|
|
25.4
|
|
|
25.4
|
|
|
25.4
|
|
|
—
|
|
||||
542-unit asset
|
|
Northern California
|
|
3.78%
|
|
2024
|
|
69.9
|
|
|
77.2
|
|
|
77.2
|
|
|
—
|
|
||||
542-unit asset
|
|
Northern California
|
|
1-Mo LIBOR + 2.80%
|
|
2024
|
|
13.0
|
|
|
14.3
|
|
|
14.3
|
|
|
—
|
|
||||
366-unit asset
|
|
Mountain States
|
|
3.24%
|
|
2025
|
|
47.8
|
|
|
53.3
|
|
|
53.3
|
|
|
—
|
|
||||
324-unit asset
|
|
Mountain States
|
|
5.30%
|
|
2025
|
|
13.8
|
|
|
15.1
|
|
|
16.8
|
|
|
—
|
|
||||
324-unit asset
|
|
Mountain States
|
|
1-Mo LIBOR + 2.64%
|
|
2025
|
|
8.0
|
|
|
9.0
|
|
|
9.0
|
|
|
—
|
|
||||
280-unit asset
|
|
Pacific Northwest
|
|
3.59%
|
|
2025
|
|
32.9
|
|
|
37.3
|
|
|
37.3
|
|
|
—
|
|
||||
208-unit asset
|
|
Southern California
|
|
3.77%
|
|
2025
|
|
34.1
|
|
|
37.7
|
|
|
37.7
|
|
|
—
|
|
||||
297-unit asset
|
|
Pacific Northwest
|
|
4.93%
|
|
2026
|
|
19.0
|
|
|
22.1
|
|
|
22.1
|
|
|
—
|
|
||||
178-unit asset
|
|
Northern California
|
|
3.74%
|
|
2027
|
|
31.4
|
|
|
31.4
|
|
|
31.4
|
|
|
—
|
|
||||
204-unit asset
|
|
Mountain States
|
|
1-Mo LIBOR + 2.36%
|
|
2026
|
|
12.4
|
|
|
13.9
|
|
|
13.9
|
|
|
—
|
|
||||
168-unit asset
|
|
Mountain States
|
|
1-Mo LIBOR + 2.36%
|
|
2026
|
|
8.9
|
|
|
10.1
|
|
|
10.1
|
|
|
—
|
|
||||
430-unit asset
|
|
Pacific Northwest
|
|
3.63%
|
|
2026
|
|
56.6
|
|
|
62.6
|
|
|
62.6
|
|
|
—
|
|
||||
386-unit asset and 14 retail units
|
|
Southern California
|
|
1-Mo LIBOR + 2.48%
|
|
2023
|
|
59.5
|
|
|
64.8
|
|
|
64.8
|
|
|
—
|
|
||||
157-unit asset
|
|
Southern California
|
|
3.63%
|
|
2026
|
|
40.7
|
|
|
42.9
|
|
|
42.9
|
|
|
—
|
|
||||
204-unit asset
|
|
Mountain States
|
|
3.59%
|
|
2026
|
|
54.8
|
|
|
60.4
|
|
|
60.4
|
|
|
—
|
|
||||
300-unit asset
|
|
Mountain States
|
|
3.64%
|
|
2022
|
|
14.6
|
|
|
16.3
|
|
|
16.3
|
|
|
—
|
|
||||
300-unit asset
|
|
Mountain States
|
|
1-Mo LIBOR + 3.37%
|
|
2022
|
|
6.1
|
|
|
6.6
|
|
|
6.6
|
|
|
—
|
|
||||
210-unit asset
|
|
Pacific Northwest
|
|
1-Mo LIBOR + 1.52%
|
|
2027
|
|
29.0
|
|
|
29.0
|
|
|
29.0
|
|
|
—
|
|
||||
200-unit asset
|
|
Mountain States
|
|
4.13%
|
|
2027
|
|
18.8
|
|
|
20.7
|
|
|
20.7
|
|
|
—
|
|
||||
264-unit asset
|
|
Pacific Northwest
|
|
4.30%
|
|
2025
|
|
22.7
|
|
|
24.8
|
|
|
25.5
|
|
|
—
|
|
||||
343-unit asset
|
|
Pacific Northwest
|
|
3.86%
|
|
2027
|
|
84.0
|
|
|
84.0
|
|
|
84.0
|
|
|
—
|
|
||||
179-unit asset
|
|
Pacific Northwest
|
|
3.50%
|
|
2025
|
|
33.3
|
|
|
33.3
|
|
|
32.9
|
|
|
—
|
|
||||
26-unit asset
|
|
Ireland
|
|
3-Mo EURIBOR + 1.75%
|
|
2024
|
|
11.4
|
|
|
12.4
|
|
|
12.4
|
|
|
—
|
|
||||
210-unit asset
|
|
Ireland
|
|
2.57%
|
|
2025
|
|
46.1
|
|
|
46.1
|
|
|
46.1
|
|
|
—
|
|
||||
118-unit asset
|
|
Ireland
|
|
2.57%
|
|
2025
|
|
27.5
|
|
|
27.5
|
|
|
27.5
|
|
|
—
|
|
||||
423-unit asset
|
|
Ireland
|
|
2.57%
|
|
2025
|
|
67.8
|
|
|
67.8
|
|
|
67.8
|
|
|
—
|
|
176-unit asset
|
|
Ireland
|
|
2.03%
|
|
2025
|
|
54.2
|
|
|
54.2
|
|
|
54.2
|
|
|
—
|
|
||||
124-unit asset
|
|
Ireland
|
|
3-Mo EURIBOR + 2.5%
|
|
2022
|
|
54.0
|
|
|
55.2
|
|
|
55.2
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mixed-Use and Hotel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Development - Mixed-Use
|
|
Ireland
|
|
1-Mo EURIBOR + 4.25%
|
|
2019
|
|
88.6
|
|
|
88.6
|
|
|
88.6
|
|
|
—
|
|
||||
Hotel
|
|
Mountain States
|
|
1-Mo LIBOR + 3.00%
|
|
2018
|
|
10.3
|
|
|
10.3
|
|
|
10.3
|
|
|
—
|
|
||||
Hotel
|
|
Northern California
|
|
5.00%
|
|
2021
|
|
36.3
|
|
|
38.8
|
|
|
38.8
|
|
|
—
|
|
||||
Hotel
|
|
Ireland
|
|
3.88%
|
|
2025
|
|
86.4
|
|
|
86.4
|
|
|
86.4
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
$
|
2,975.2
|
|
|
$
|
3,178.0
|
|
|
$
|
3,180.5
|
|
|
$
|
—
|
|
|
|
|
||
Balance - December 31, 2016
|
|
$
|
2,788.8
|
|
New mortgage loans
|
|
916.5
|
|
|
Other additions
|
|
17.0
|
|
|
Amortization of mortgage premium
|
|
(4.0
|
)
|
|
Payments of principal
|
|
(690.0
|
)
|
|
Foreign currency gain (loss)
|
|
152.2
|
|
|
Balance - December 31, 2017
|
|
$
|
3,180.5
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
(1)
|
Financial Statements
. See the accompanying Index to Consolidated Financial Statements, which appears on page 63 of the annual report. The Report of Independent Registered Public Accounting Firm, the Consolidated Financial Statements and the Notes to Consolidated Financial Statements listed in the Index to Consolidated Financial Statements, which appear beginning on page 64 of this report, are incorporated by reference into this Item 15.
|
(2)
|
Financial Statement Schedules
. Schedules III and IV are listed in the Index to Consolidated Financial Statements, which appear beginning on page 118 of this report, are incorporated by reference into this Item 15. All other Financial Statement Schedules have been omitted because the information required to be set forth therein is either not applicable or is included in the Consolidated Financial Statements or the notes thereto.
|
(3)
|
Exhibits
. See Item 15(b) below.
|
Exhibit
No.
|
Description
|
Location
|
3.1
|
Filed as Exhibit 3.1 to Registrant’s Current Report on Form 8-K (File No.: 001-33824) filed June 19, 2014.
|
|
3.2
|
Filed as Exhibit 3.1 to Registrant’s Current Report on Form 8-K (001-33824) filed February 5, 2018.
|
|
4.1
|
Filed as an Exhibit to the Registrant's Registration Statement on Amendment no. 1 to Form 8-A (File No.: 333-145110) filed on November 16, 2009 and incorporated by reference herein.
|
|
4.2
|
|
Filed as Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed May 12, 2014
|
4.3
|
|
Filed as Exhibit 4.2 to Registrant’s Current Report on Form 8-K (001-33824) filed March 26, 2014.
|
4.4
|
|
Filed as Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed November 10, 2014.
|
4.5
|
|
Filed as Exhibit 4.4 to Registrant’s Current Report on Form 8-K (001-33824) filed November 18, 2014.
|
4.6
|
|
Filed as Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed May 6, 2016.
|
4.7
|
|
Filed as Exhibit 10.2 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed May 6, 2016.
|
4.8
|
|
Filed as Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed August 5, 2016.
|
4.9
|
|
Filed as Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed May 10, 2017.
|
4.10
|
|
Filed herewith.
|
4.11
|
Filed as Exhibit 4.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed May 12, 2014.
|
|
10.1†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
10.14†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.15†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.16†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.17†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.18†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.19†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.20†
|
Filed as an Exhibit to Kennedy-Wilson Holdings, Inc.'s Registration Statement on Form S-4 (File No.: 333-162116) filed on September 24, 2009 and incorporated by reference herein.
|
|
10.21†
|
Filed as an Exhibit to the Registrant's Current Report on Form 8-K (File No.: 001-33824) filed January 30, 2012.
|
|
10.22†
|
Filed as Exhibit 10.1 to Registrant’s Current Report on Form 8-K (001-33824) filed June 19, 2014.
|
|
10.23†
|
|
Filed as Exhibit 10.1 to Registrant’s Current Report on Form 8-K (001-33824) filed June 16, 2017.
|
10.24†
|
|
Filed as Exhibit 10.114 to Registrant’s Annual Report on Form 10-K filed March 12, 2013.
|
10.25†
|
|
Filed as Exhibit 10.115 to Registrant’s Annual Report on Form 10-K filed March 12, 2013.
|
10.26†
|
|
Filed as Exhibit 10.116 to Registrant’s Annual Report on Form 10-K filed March 12, 2013.
|
10.27†
|
|
Filed as Exhibit 10.1 to Registrant’s Current Report on Form 8-K (001-33824) filed July 18, 2014.
|
10.28†
|
|
Filed as Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q (001-33824) filed August 8, 2014
|
10.29†
|
|
Filed as an Exhibit to the Registrant's Current Report on Form 8-K (File No.: 001-33824) filed October 16, 2015
|
32.2
|
Filed herewith.
|
|
101
|
The following materials from Kennedy-Wilson Holdings, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets (ii) the Consolidated Statements of Operations and Comprehensive (Loss) Income (iii) the Consolidated Statements of Equity (iv) the Consolidated Statements of Cash Flows (v) related notes to those financial statements and (vi) Schedule III - Real Estate and Accumulated Depreciation.
|
Filed herewith.
|
†
|
Management Contract, Compensation Plan or Agreement.
|
|
|
|
K
ENNEDY
-W
ILSON
H
OLDINGS
, I
NC
.,
a Delaware corporation
|
||
|
|
|
By:
|
|
/s/ W
ILLIAM
J. M
C
M
ORROW
|
|
|
William J. McMorrow
|
|
|
Chief Executive Officer
|
|
|
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
||
/
S
/ W
ILLIAM
J. M
C
M
ORROW
William J. McMorrow
|
|
Chief Executive Officer (principal executive officer) and Chairman
|
|
February 26, 2018
|
|
|
|
||
/
S
/ J
USTIN
E
NBODY
Justin Enbody
|
|
Chief Financial Officer (principal financial officer and principal accounting officer)
|
|
February 26, 2018
|
|
|
|
||
/
S
/ N
ORM
C
REIGHTON
Norm Creighton
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/
S
/ C
ATHY
H
ENDRICKSON
Cathy Hendrickson
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/
S
/ D
AVID
A. M
INELLA
David A. Minella
|
|
Director
|
|
February 26, 2018
|
|
|
|
||
/
S
/ K
ENT
M
OUTON
Kent Mouton
|
|
Director
|
|
February 26, 2018
|
|
|
|
||
/S/
M
ARY
R
ICKS
Mary Ricks |
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/
S
/ J
ERRY
R. S
OLOMON
Jerry R. Solomon
|
|
Director
|
|
February 26, 2018
|
|
|
|
||
/s/
J
OHN
R
.
T
AYLOR
John Taylor
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/
S
/ S
TANLEY
Z
AX
Stanley Zax
|
|
Director
|
|
February 26, 2018
|
|
|
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
Title:
|
Vice President
|
By:
|
Name: In Ku Lee |
By:
|
Name: |
By:
|
Name: Kent Mouton Title: President |
Name of
Guarantor |
Type of Organization
|
Jurisdiction of Incorporation/Organization
|
Taxpayer ID/
Identification Number |
KW Hanover Quay, LLC
|
Limited liability company
|
Delaware
|
46-3916487
|
Kennedy Wilson Property Services VI, LLC
|
Limited liability company
|
Delaware
|
46-3920569
|
Kennedy Wilson Property Equity VI, LLC
|
Limited liability company
|
Delaware
|
46-3916532
|
KW LV 3 Sponsor, LLC
|
Limited liability company
|
Delaware
|
46-3920650
|
KW NB LLC
|
Limited liability company
|
Delaware
|
46-3920773
|
KW Camarillo Land, LLC
|
Limited liability company
|
Delaware
|
46-3920817
|
1.
|
I have reviewed this Annual Report on Form 10-K for the period ended
December 31, 2017
of Kennedy-Wilson Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ WILLIAM J. MCMORROW
|
|
William J. McMorrow
Chief Executive Officer
|
|
1.
|
I have reviewed this Annual Report on Form 10-K for the period ended
December 31, 2017
of Kennedy-Wilson Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/JUSTIN ENBODY
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Justin Enbody
Chief Financial Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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February 26, 2018
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/s/ WILLIAM J. MCMORROW
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William J. McMorrow
Chief Executive Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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February 26, 2018
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/s/ JUSTIN ENBODY
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Justin Enbody
Chief Financial Officer
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