INVESTMENTS IN JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Joint Ventures by Investment Type and Geographic Location

The following table details our investments in joint ventures by investment type and geographic location as of December 31, 2013:



	Commercial		Multifamily		Loan		Residential and Hotel		Other		Total
(Dollars in millions)
Western U.S.	$	156.7	$	133.1	$	50.3	$	48.4	$	0.4	$	388.9
Japan	—		68.8		—		—		—		68.8
United Kingdom	104.5		—		6.3		—		—		110.8
Ireland	96.1		48.2		—		—		—		144.3
Spain	—		—		—		—		26.9		26.9
Other U.S.	3.6		0.2		—		0.3		7.6		11.7
Total	$	360.9	$	250.3	$	56.6	$	48.7	$	34.9	$	751.4

The following table details our investments in joint ventures by investment type and geographic location as of December 31, 2012:



	Commercial		Multifamily		Loan		Residential and Hotel		Other		Total
(Dollars in millions)
Western U.S.	$	141.6	$	126.9	$	41.8	$	51.8	$	0.4	$	362.5
Japan	—		102.7		—		—		—		102.7
Ireland	9.5		22.4		36.7		—		—		68.6
Other U.S.	3.5		0.4		—		0.2		5.3		9.4
Total	$	154.6	$	252.4	$	78.5	$	52.0	$	5.7	$	543.2

Schedule of Joint Venture Cash Distributions

During the years ended December 31, 2013, 2012, and 2011, the Company received the following cash distributions from its investment in KWR for the settlement of hedges, refinancing of property level debt, and operating distributions:



	Years Ended December 31,
	2013		2012		2011
(Dollars in millions)
Settlement of hedges	$	10.8	$	—	$	2.1
Refinancing of property level debt	5.8		1.8		5.8
Operating distributions	9.4		9.6		3.3
Total	$	26.0	$	11.4	$	11.2

Schedule of New Joint Venture Investments

See the table below for a breakdown of contributions to new joint venture investments for the years ended December 31, 2013, 2012, and 2011:



		Years Ended December 31,
(Dollars in millions)		2013			2012			2011
Investment Type	Region	No. of Properties	Initial Contribution		No. of Properties	Initial Contribution		No. of Properties	Initial Contribution
Commercial	Western U.S.	4	$	30.3	9	$	26.9	5	$	25.8
Commercial	United Kingdom	42	92.2		—	—		—	—
Commercial	Ireland	14	38.7		2	45.8		—	—
Multifamily	Western U.S.	2	9.1		5	22.9		8	19.9
Multifamily	Ireland	1	58.0		2	34.3		—	—
Residential	Western U.S.	3	10.0		2	19.6		2	17.9
Other	Spain	1	27.2		—	—		—	—
Total		67	$	265.5	20	$	149.5	15	$	63.6

Schedule of Cash Distributions by Investment Type and Geographic Location

The following table details cash distributions by investment type and geographic location for the year ended December 31, 2013:



	Multifamily				Commercial				Loan				Residential				Total
(Dollars in millions)	Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing		Operating		Investing
Western U.S.	$	10.0	$	7.1	$	12.8	$	20.9	$	—	$	—	$	3.9	$	3.0	$	26.7	$	31.0
Japan	9.4		16.6		—		—		—		—		—		—		9.4		16.6
United Kingdom	—		—		9.2		4.4		4.0		0.3		—		—		13.2		4.7
Ireland	2.9		28.9		3.5		—		—		—		—		—		6.4		28.9
Other	0.4		0.2		—		—		—		—		—		0.1		0.4		0.3
Total	$	22.7	$	52.8	$	25.5	$	25.3	$	4.0	$	0.3	$	3.9	$	3.1	$	56.1	$	81.5

Joint Venture Summarized Financial Data, Balance Sheet

Summarized financial data of the joint ventures is as follows:



	December 31, 2013						December 31, 2012
(Dollars in millions)	Greater than 20% ⁽¹⁾		Other		Total		Greater than 20% ⁽¹⁾		Other		Total
Balance sheets for equity method investments:
Assets
Cash and restricted cash	$	74.0	$	40.9	$	114.9	$	7.7	$	75.7	$	83.4
Real estate	1,996.8		2,438.8		4,435.6		311.1		3,065.2		3,376.3
Loan pool participation ⁽²⁾	4.0		—		4.0		137.1		—		137.1
Other	466.8		150.7		617.5		11.6		210.7		222.3
Total assets ⁽³⁾	$	2,541.6	$	2,630.4	$	5,172.0	$	467.5	$	3,351.6	$	3,819.1

Liabilities
Debt	$	1,263.6	$	1,714.1	$	2,977.7	$	139.8	$	1,977.5	$	2,117.3
Other	75.5		64.7		140.2		4.2		61.6		65.8
Total liabilities	1,339.1		1,778.8		3,117.9		144.0		2,039.1		2,183.1
Partners’ capital
Kennedy Wilson - investments in joint ventures	379.5		344.7		724.2		35.2		483.7		518.9
Other partners	818.6		506.9		1,325.5		176.6		828.8		1,005.4
Total partners' capital-investments in joint ventures	1,198.1		851.6		2,049.7		211.8		1,312.5		1,524.3
Kennedy Wilson - investments in loan pool participation ⁽²⁾	2.2		—		2.2		60.3		—		60.3
Other partners	2.2		—		2.2		51.4		—		51.4
Total partners' capital - investments in loan pool participation	4.4		—		4.4		111.7		—		111.7
Total liabilities and partners’ capital	$	2,541.6	$	2,630.4	$	5,172.0	$	467.5	$	3,351.6	$	3,819.1

Total investments are comprised of the following:



	December 31, 2013						December 31, 2012
(Dollars in millions)	Greater than 20% ⁽¹⁾		Other		Total		Greater than 20% ⁽¹⁾		Other		Total
Equity method	$	379.5	$	344.7	$	724.2	$	35.2	$	483.7	$	518.9
Unrealized gain on fair value option	—		19.6		19.6		18.6		—		18.6
	379.5		364.3		743.8		53.8		483.7		537.5
Cost method	—		7.6		7.6		—		5.7		5.7
Total Investments in joint ventures	$	379.5	$	371.9	$	751.4	$	53.8	$	489.4	$	543.2

Loan pool participation ⁽²⁾	$	—	$	—			$	60.4	$	—

—————

⁽¹⁾ Equity in income from the joint venture or income from loan pool participation for the year ended December 31, 2013, 2012 or 2011 exceeds 20% of Kennedy Wilson's income from continuing operations before income taxes for the year ended December 31, 2013, 2012 or 2011. No individual investments in joint ventures or loan pool participation exceeds 20% of the total assets of Kennedy Wilson as of December 31, 2013 or 2012.

⁽²⁾ This loan pool has been included in the investment in joint ventures footnote greater than 20% column as this entity was determined to be a significant investment for purposes of S-X §210.3-09. See further discussion on this loan pool participation in note 6. The other investments in loan pool participation were excluded as they were determined to be not significant investments.

⁽³⁾ The balance sheets and income statements include all investments in joint ventures as well as an investment in a loan pool participation, which was determined to be significant investments for the purposes of S-X §210.3-09.

Joint Venture Summarized Financial Data, Income Statement

Equity in joint venture income for the years ended December 31:



(Dollars in millions)	2013		2012		2011
Net income allocation	$	28.8	$	13.7	$	9.1
Unrealized gain on fair value option	1.0		7.8		3.4
Total equity in joint venture income	$	29.8	$	21.5	$	12.5
Participation income allocation	$	8.7	$	7.9	$	1.4



	Year Ended December 31, 2013							Year Ended December 31, 2012
(Dollars in millions)	Greater than 20% ⁽¹⁾			Other		Total		Greater than 20% ⁽¹⁾			Other		Total
Statements of income:
Revenues	$	229.6		$	427.5	$	657.1	$	38.2		$	532.5	$	570.7
Depreciation	58.1			57.9		116.0		(4.1		)	72.6		68.5
Interest	42.3			86.8		129.1		22.0			87.9		109.9
Other expenses	83.6			271.7		355.3		(0.7		)	337.6		336.9
Total expenses	184.0			416.4		600.4		17.2			498.1		515.3
Net income ⁽³⁾	$	45.6		$	11.1	$	56.7	$	21.0		$	34.4	$	55.4
Net income allocation:
Kennedy Wilson - investments in joint ventures	$	28.6		$	0.2	$	28.8	$	(3.3	)	$	17.0	$	13.7
Kennedy Wilson - investments in loan pool participation ⁽²⁾	8.7			—		8.7		7.9			—		7.9
Other partners	(4.3		)	10.9		6.6		16.2			17.4		33.6
Other partners - investments in loan pool participation⁽²⁾	12.6			—		12.6		0.2			—		0.2
Net income ⁽³⁾	$	45.6		$	11.1	$	56.7	$	21.0		$	34.4	$	55.4



	Year Ended December 31, 2011
(Dollars in millions)	Greater than 20% ⁽¹⁾			Other		Total
Statements of income:
Revenues	$	45.8		$	249.1	$	294.9
Depreciation	10.2			48.3		58.5
Interest	14.0			69.3		83.3
Other expenses	16.5			127.8		144.3
Total expenses	40.7			245.4		286.1
Gains on extinguishment of debt	—			9.3		9.3
Net income	$	5.1		$	13.0	$	18.1
Net income allocation:
Kennedy Wilson - investments in joint ventures	$	1.3		$	7.8	$	9.1
Kennedy Wilson - investments in loan pool participation⁽²⁾	1.4			—		1.4
Other partners - investments in joint ventures	3.3			5.2		8.5
Other partners - investments in loan pool participation	(0.9		)	—		(0.9		)
Net income	$	5.1		$	13.0	$	18.1

—————

⁽¹⁾ See discussion above.

⁽²⁾ See discussion above.

⁽³⁾ See discussion above.