SEGMENT INFORMATION

Kennedy Wilson is a global real estate investment company. The Company owns, operates, and invests in real estate both on its own and through our investment management platform. To complement its investment business, the Company also provides real estate services primarily to financial services clients.

Kennedy Wilson’s segment disclosure with respect to the determination of segment profit or loss and segment assets is based on these two core segments: KW Investments and KW Investment Management and Real Estate Services (IMRES).

KW Investments

KW Investments invests in multifamily, office, retail, and residential properties as well as loans secured by real estate in the Western U.S., United Kingdom, Ireland, Spain and Italy. The Company has an average ownership interest across all investments of approximately 66% as of June 30, 2018.

When it has partners, those partners include financial institutions, foundations, endowments, high net worth individuals and other institutional investors. In these instances, the Company is typically the general partner in the arrangement with a promoted interest in the profits of its investments beyond the Company's ownership percentage. These promoted interests are typically fees earned by IMRES as described below.

KW Investment Management and Real Estate Services (IMRES)

IMRES encompasses the Company fee generating businesses which includes both the Company's investment management platform as well as the Company's third-party services business. The Company's clients include financial institutions, institutional investors, insurance companies, developers, builders and government agencies. IMRES has five main lines of business: investment management, property services, research, brokerage, and auction and conventional sales. These five business lines generate revenue for the Company's through fees and commissions.

The Company manages approximately 51 million square feet of properties for the Company and its investment partners in the United States and Europe, which includes assets the Company has ownership interests in and third party owned assets. With 26 offices throughout the United States, the United Kingdom, Ireland, Jersey, Spain and Japan, the Company has the capabilities and resources to provide investment management and property services to real estate owners as well as the experience, as a real estate investor, to understand client concerns. The managers of IMRES have an extensive track record in their respective lines of business and in the real estate community as a whole.

Additionally, IMRES plays a critical role in supporting the Company's 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.

The following tables summarize income activity by segment and corporate for the three and six months ended June 30, 2018 and 2017 and balance sheet data as of June 30, 2018 and December 31, 2017:



	Three Months Ended June 30, 2018

(Dollars in millions)	Investments			Investment Management and Real Estate Services		Corporate			Total
Revenue
Rental	$	134.9		$	—	$	—		$	134.9
Hotel	37.8			—		—			37.8
Sale of real estate	32.8			—		—			32.8
Investment management, property services and research fees	—			12.3		—			12.3
Loan purchases, loan originations and other	0.5			—		—			0.5
Total revenue	206.0			12.3		—			218.3
Operating expenses
Rental operating	39.7			—		—			39.7
Hotel operating	29.4			—		—			29.4
Cost of real estate sold	31.4			—		—			31.4
Commission and marketing	—			2.1		—			2.1
Compensation and related	20.1			9.0		15.8			44.9
General and administrative	8.4			3.3		1.8			13.5
Depreciation and amortization	51.4			0.1		—			51.5
Total operating expenses	180.4			14.5		17.6			212.5
Income from unconsolidated investments, net of depreciation and amortization	4.1			6.8		—			10.9
Operating income (loss)	29.7			4.6		(17.6		)	16.7
Non-operating income (expense)
Gain on sale of real estate	236.8			—		—			236.8
Acquisition-related expenses	(0.2		)	—		—			(0.2		)
Interest expense	(47.9		)	—		(19.3		)	(67.2		)
Other income	0.3			—		10.3			10.6
Provision for income taxes	(0.6		)	—		(28.8		)	(29.4		)
Total non-operating income (loss)	188.4			—		(37.8		)	150.6
Net income (loss)	218.1			4.6		(55.4		)	167.3
Net income attributable to noncontrolling interests	(57.7		)	—		—			(57.7		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	160.4		$	4.6	$	(55.4	)	$	109.6



	Six Months Ended June 30, 2018

(Dollars in millions)	Investments			Investment Management and Real Estate Services		Corporate			Total
Revenue
Rental	$	269.2		$	—	$	—		$	269.2
Hotel	74.1			—		—			74.1
Sale of real estate	42.2			—		—			42.2
Investment management, property services and research fees	—			22.4		—			22.4
Loan purchases, loan originations and other	1.1			—		—			1.1
Total revenue	386.6			22.4		—			409.0
Operating expenses
Rental operating	81.3			—		—			81.3
Hotel operating	60.2			—		—			60.2
Cost of real estate sold	39.8			—		—			39.8
Commission and marketing	—			3.5		—			3.5
Compensation and related	36.4			17.7		30.4			84.5
General and administrative	15.6			6.1		3.2			24.9
Depreciation and amortization	107.1			0.1		—			107.2
Total operating expenses	340.4			27.4		33.6			401.4
Income from unconsolidated investments, net of depreciation and amortization	19.8			17.1		—			36.9
Operating income (loss)	66.0			12.1		(33.6		)	44.5
Non-operating income (expense)
Gain on sale of real estate	264.8			—		—			264.8
Acquisition-related expenses	(0.2		)	—		—			(0.2		)
Interest expense	(86.8		)	—		(39.3		)	(126.1		)
Other income	0.3			—		9.8			10.1
Provision for income taxes	—			—		(26.8		)	(26.8		)
Total non-operating gain (loss)	178.1			—		(56.3		)	121.8
Net income (loss)	244.1			12.1		(89.9		)	166.3
Net income attributable to noncontrolling interests	(59.1		)	—		—			(59.1		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	185.0		$	12.1	$	(89.9	)	$	107.2



	Three Months Ended June 30, 2017

(Dollars in millions)	Investments			Investment Management and Real Estate Services			Corporate			Total
Revenue
Rental	$	123.8		$	—		$	—		$	123.8
Hotel	29.0			—			—			29.0
Sale of real estate	12.8			—			—			12.8
Investment management, property services and research fees	—			10.3			—			10.3
Loan purchases, loan originations and other	4.5			—			—			4.5
Total revenue	170.1			10.3			—			180.4
Operating expenses
Rental operating	36.6			—			—			36.6
Hotel operating	22.8			—			—			22.8
Cost of real estate sold	9.6			—			—			9.6
Commission and marketing	—			1.7			—			1.7
Compensation and related	19.5			9.7			16.3			45.5
General and administrative	5.8			2.9			1.3			10.0
Depreciation and amortization	52.1			—			—			52.1
Total operating expenses	146.4			14.3			17.6			178.3
Income (loss) from unconsolidated investments, net of depreciation and amortization	12.6			(1.8		)	—			10.8
Operating income (loss)	36.3			(5.8		)	(17.6		)	12.9
Non-operating income (expense)
Gain on sale of real estate	66.3			—			—			66.3
Acquisition-related expenses	(0.9		)	—			—			(0.9		)
Interest expense	(35.5		)	—			(16.6		)	(52.1		)
Other (expense) income	(0.2		)	—			4.6			4.4
Provision for income taxes	(1.4		)	—			(7.4		)	(8.8		)
Total non-operating income (loss)	28.3			—			(19.4		)	8.9
Net income (loss)	64.6			(5.8		)	(37.0		)	21.8
Net income attributable to noncontrolling interests	(12.4		)	—			—			(12.4		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	52.2		$	(5.8	)	$	(37.0	)	$	9.4



	Six Months Ended June 30, 2017

(Dollars in millions)	Investments			Investment Management and Real Estate Services			Corporate			Total
Revenue
Rental	$	248.1		$	—		$	—		$	248.1
Hotel	58.5			—			—			58.5
Sale of real estate	13.6			—			—			13.6
Investment management, property services and research fees	—			21.3			—			21.3
Loan purchases, loan originations and other	6.5			—			—			6.5
Total revenue	326.7			21.3			—			348.0
Operating expenses
Rental operating	72.6			—			—			72.6
Hotel operating	47.2			—			—			47.2
Cost of real estate sold	10.3			—			—			10.3
Commission and marketing	—			3.7			—			3.7
Compensation and related	30.1			18.6			29.5			78.2
General and administrative	11.8			5.8			2.3			19.9
Depreciation and amortization	101.8			—			—			101.8
Total operating expenses	273.8			28.1			31.8			333.7
Income from unconsolidated investments, net of depreciation and amortization	34.2			5.6			—			39.8
Operating income (loss)	87.1			(1.2		)	(31.8		)	54.1
Non-operating income (expense)
Gain on sale of real estate	71.7			—			—			71.7
Acquisition-related expenses	(1.2		)	—			—			(1.2		)
Interest expense	(69.9		)	—			(32.2		)	(102.1		)
Other income	0.5			—			4.4			4.9
Provision for income taxes	(2.3		)	—			(2.3		)	(4.6		)
Total non-operating loss	(1.2		)	—			(30.1		)	(31.3		)
Net income (loss)	85.9			(1.2		)	(61.9		)	22.8
Net income attributable to noncontrolling interests	(12.6		)	—			—			(12.6		)
Net income (loss) attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	73.3		$	(1.2	)	$	(61.9	)	$	10.2



(Dollars in millions)	June 30, 2018		December 31, 2017
Total assets
Investments	$	7,262.6	$	7,563.7
Investment management and real estate services	73.3		70.5
Corporate	169.5		90.6
Total assets	$	7,505.4	$	7,724.8