REAL ESTATE

The following table summarizes Kennedy Wilson's investment in consolidated real estate properties at June 30, 2013 and December 31, 2012:



	June 30,			December 31,
	2013			2012
Land	$	157,662,000		$	99,595,000
Buildings	335,297,000			193,302,000
Building improvements	6,213,000			3,964,000
	499,172,000			296,861,000
Less accumulated depreciation	(10,737,000		)	(7,412,000		)
Real estate, net	$	488,435,000		$	289,449,000

On June 27, 2013, the Company acquired a Class A office building in the golden triangle section of Beverly Hills, CA for $29.7 million which was financed with an $18.7 million mortgage loan and equity.

On April 29, 2013, the Company acquired a 450-unit apartment building in Salt Lake City, UT for $61.8 million and financed it with a $49.7 million mortgage loan and equity.

On March 28, 2013, the Company acquired the interest of some of its existing partners in a 615-unit apartment building in Northern California, increasing its ownership from 15% to 94%. The original 15% interest had a book value of $0 due to prior distributions. Cash consideration of $15.7 million was paid by the Company to increase its ownership in the property to 94%. As a result of obtaining control, the Company was required to consolidate the assets and liabilities at fair value in accordance with Business Combination guidance. Kennedy Wilson recorded an acquisition related gain in the amount of $9.5 million in the accompanying consolidated statements of operations for the six months ended June 30, 2013 as the fair value was in excess of the carrying value of its ownership interest. As the transaction was between willing third party market participants, the purchase price was an approximation of fair value.

Accordingly, $1.3 million in cash and cash equivalents, $0.1 million in accounts receivable, $2.2 million in other assets (including $1.2 million of acquired in-place lease values), $120.1 million in real estate, net, $0.1 million in accounts payable, $3.1 million in accrued expenses and other liabilities, $93.5 million in mortgage loans payable, and $1.8 million in noncontrolling interest were recorded as a result of the consolidation.

The results of operations of the assets acquired have been included in our consolidated financial statements since the date of its acquisition. The unaudited pro forma data presented below assumes that the acquisitions occurred as of January 1, 2012. The Company’s unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had this acquisition been consummated at the beginning of the periods presented.



	Unaudited
	Three months ended June 30,						Six months ended June 30,
Dollars in thousands, except for per share data	2013			2012			2013			2012
Pro forma revenues	$	36,420		$	18,062		$	63,069		$	33,785
Pro forma net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders	(2,564		)	(2,602		)	(6,224		)	(5,069		)
Pro forma net loss per share:
Basic and diluted	$	(0.04	)	$	(0.05	)	$	(0.09	)	$	(0.10	)