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Unconsolidated Investments
 6 Months Ended
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
UNCONSOLIDATED INVESTMENTS UNCONSOLIDATED INVESTMENTS
Kennedy Wilson has a number of joint venture interests including commingled funds and separate accounts, generally ranging from 5% to 50%, that were formed to acquire, manage, develop, service and/or sell real estate. Kennedy Wilson has significant influence over these entities, but not control. Accordingly, these investments are accounted for under the equity method.
Joint Venture and Fund Holdings
The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of June 30, 2019:
(Dollars in millions)
Multifamily
Commercial
Hotel
Funds
Residential and Other
Total
Western U.S.
$
198.7

$
57.1

$
67.8

$
94.6

$
238.2

$
656.4

Ireland
270.6

136.6

—

—

—

407.2

United Kingdom
—

10.2

—

—

—

10.2

Total
$
469.3

$
203.9

$
67.8

$
94.6

$
238.2

$
1,073.8

The following table details Kennedy Wilson's investments in joint ventures by investment type and geographic location as of December 31, 2018:
(Dollars in millions)
Multifamily
Commercial
Hotel
Funds
Residential and Other
Total
Western U.S.
$
184.1

$
47.0

$
70.9

$
102.5

$
193.8

$
598.3

Ireland
216.5

35.2

—

—

—

251.7

United Kingdom
—

9.9

—

—

—

9.9

Total
$
400.6

$
92.1

$
70.9

$
102.5

$
193.8

$
859.9


During the six months ended June 30, 2019, the change in unconsolidated investments primarily relates to $229.9 million of contributions to unconsolidated investments, $61.9 million of distributions from unconsolidated investments, $47.6 million of income from unconsolidated investments and a $1.7 million decrease relating to other items which primarily related to foreign exchange movements as described in more detail below.
As of June 30, 2019 and December 31, 2018 $835.8 million and $662.2 million of unconsolidated investments were accounted for under fair value. See Note 5 for more detail.
Contributions to Joint Ventures    
During the six months ended June 30, 2019, Kennedy Wilson contributed $229.9 million to joint ventures, primarily for the deconsolidation of the State Street office building, Capital Dock office buildings and Capital Dock residential tower in Dublin, Ireland discussed in Note 3 which included $125.5 million of non-cash contributions. In addition to the State Street and Capital
Dock deconsolidation contributions included two office properties in the Western United States and contributions to existing development projects in Ireland and Hawaii.
Distributions from Joint Ventures
During the six months ended June 30, 2019, Kennedy Wilson received $61.9 million in operating and investing distributions from its joint ventures.
The following table details cash distributions by investment type and geographic location for the six months ended June 30, 2019:
 
Multifamily
Commercial
Funds
Residential and Other
Total
(Dollars in millions)
Operating
Investing
Operating
Investing
Operating
Investing
Operating
Investing
Operating
Investing
Western U.S.
$
16.1

$
17.9

$
2.4

$
—

$
6.9

$
9.3

$
0.3

$
2.6

$
25.7

$
29.8

Ireland
2.6

—

—

3.8

—

—

—

—

2.6

3.8

Total
$
18.7

$
17.9

$
2.4

$
3.8

$
6.9

$
9.3

$
0.3

$
2.6

$
28.3

$
33.6


Investing distributions resulted primarily from the sale of a multifamily property and residential lots in the Western United States. Operating distributions resulted from distributions in excess of invested basis and operating cash flow generated by the joint venture investments.
Income from Unconsolidated Investments
The following table presents income from unconsolidated investments recognized by Kennedy Wilson during the six months ended June 30, 2019 and 2018:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in millions)
 
2019
 
2018
 
2019
 
2018
Income from unconsolidated investments - operating performance
 
$
5.6

 
$
2.6

 
$
14.5

 
$
5.3

Income from unconsolidated investments - realized gains
 
—

 
1.7

 
2.4

 
2.0

Income from unconsolidated investments - fair value
 
5.4

 
(0.2
)
 
33.6

 
12.5

Income from unconsolidated investments - performance fees
 
5.2

 
6.8

 
7.4

 
17.1

Income from unconsolidated investments - impairment
 
(10.3
)
 
—

 
(10.3
)
 
—

 
 
$
5.9

 
$
10.9

 
$
47.6

 
$
36.9


Operating performance is related to underlying performance from unconsolidated investments. Realized gains are related to asset sales. Fair value gains and performance fees are primarily related to resyndications under the Company's VHH partnership, cap rate compression, asset sales, and improved property performance by the Company's FV Option investments and investments held within the Funds managed by the Company. The fair value gains were partially offset by foreign exchange fair value losses on multifamily and development joint ventures in Ireland. Additionally, during the three and six months ended June 30, 2019, the Company recorded an other than temporary impairment loss on a residential project in the Western United States.
Vintage Housing Holdings ("VHH")
As of June 30, 2019 and December 31, 2018, the carrying value of the Company's investment in VHH was $110.5 million and $101.5 million, respectively. Fair value gains in the current period primarily relate to cap rate compression as a result of declines in borrowing rates. Prior period fair value gains are due to resyndications in which VHH dissolves an existing partnership and recapitalizes into a new partnership with tax exempt bonds and tax credits that are sold to a new tax credit partner and, in many cases, yields cash back to VHH. Upon resyndication, VHH retains a GP interest in the partnership and receives various future streams of cash flows including: development fees, asset management fees, other GP management fees and distributions from operations.
Capital Commitments
As of June 30, 2019, Kennedy Wilson had unfulfilled capital commitments totaling $106.7 million to three of its joint ventures, primarily closed-end funds managed by Kennedy Wilson, under the respective operating agreements. The Company may be called upon to contribute additional capital to joint ventures in satisfaction of such capital commitment obligations.