CaliberCos Inc. · NASDAQ:CWD
CaliberCos — Sidoti Micro Cap Conference January 2024
42 slides from CaliberCos's conference presentation, January 2024
Slide 1: Sidoti Micro Cap Conference
Sidoti Micro Cap Conference January 2024 NASDAQ: CWD
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation includes statements concerning CaliberCos Inc.’s (the “Company,” or “Caliber”) expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance, or growth and other statements that are not
Slide 3: Introducing Caliber (Nasdaq: CWD)
Introducing Caliber (Nasdaq: CWD) • Caliber has a 15-year track record and more than $2.9 billion in assets under management and assets under development • We invest in real estate assets in markets we know, primarily in the Western US • We create funds and investment strategies for accredited inves
Slide 4: We Invest in Diverse Real Estate Asset Classes in the Middle Market
We Invest in Diverse Real Estate Asset Classes in the Middle Market HOSPITALITY/HOTEL MULTI-FAMILY HOUSING BEHAVIORAL HEALTH HOSPITAL OPPORTUNITY ZONE ASSETS 4
Slide 5: The Best Opportunities are in the Middle-Market
The Best Opportunities are in the Middle-Market Middle-Market Assets Middle Market Geographies • $5 to $50 million per project • Demonstrated Population & Job Growth • Large opportunity set • Underserved in terms of financing • Highly-fragmented market options • Less competition • Opportunity Zone t
Slide 6: Caliber Serves a Large and Growing Market for Alternative Investments
Caliber Serves a Large and Growing Market for Alternative Investments $23 Trillion in Alternative Global AUM Forecasted by 2026 24 23.0 22 CAGR: 11.7% 20 17.2 18 Assets Under Management ( $trillion) 15.6 16 14.2 14 13.0 11.8 12 10.8 10.7 9.5 10 8.8 7.4 7.8 8 6.6 6.9 5.6 6 4.6 4.1 4 2 0 ‘10 ‘11 ‘12 ‘
Slide 7: Majority of Investors Want Greater Access to Alternatives
Majority of Investors Want Greater Access to Alternatives Investor Intentions Regarding Allocations to Alternatives 60% 55% 50% Proportion of Respondents 40% 30% 26% 20% 16% 10% 2% 1% 0% Will Increase Significantly Will Increase Stay the Same Will Decrease Will Decrease Significantly Source: Preqin
Slide 8: Wealth Managers are Seeking Alternatives
Wealth Managers are Seeking Alternatives 29% of wealth management clients are currently invested in alternatives, a figure expected to rise 27% over the next three years to an estimated mean 37%. % of Clients Currently Invested in % of Clients Expected to be Invested in Alternatives Alternatives Thr
Slide 9: Our Products Solve Customer Needs
Our Products Solve Customer Needs Desired Outcome Caliber Product Income Lending, CORE Plus, Value Add Distressed and Special Situations, Growth Adaptive Re-Use & Development Opportunity Zone Funds, 1031 Tax Planning/Reduction Investments Caliber seeks to build trust with our customers once and serv
Slide 10: Caliber Has Multiple Fundraising Channels
Caliber Has Multiple Fundraising Channels Caliber Caliber Caliber Private Client Wholesale Institutional Sales Registered Investment Advisors High Net-Worth & Family Offices Boutique Institutions Investors Independent Broker-Dealers THE WEALTH DEVELOPMENT COMPANY 10
Slide 11: Caliber is Designed to Deliver Sustained Growth
Caliber is Designed to Deliver Sustained Growth Grow Raise Revenue Capital Grow Assets Under Management Caliber’s model utilizes fundraising in its products to grow the tangible value of Caliber without dilutive corporate financings THE WEALTH DEVELOPMENT COMPANY 11
Slide 12: We Have Multiple Revenue Streams
We Have Multiple Revenue Streams Asset Management Fees Performance Fees Asset Services We Hire Ourselves at Real Estate Real Estate Construction Market Rates Development Brokerage Management Note: asset services performed in-house at market rates. THE WEALTH DEVELOPMENT COMPANY 12
Slide 13: Caliber Earns More Per Dollar in AUM
Caliber Earns More Per Dollar in AUM Caliber has optimized in-house and third-party services to maximize control and profitability Caliber’s Vertical Integration: Traditional Asset Managers: Increased Control & Multiple Revenue Streams Lower Control & Fewer Revenue Opportunities Asset Management Ass
Slide 14: Revenue Growth Driven by Annual Recurring Fees
Revenue Growth Driven by Annual Recurring Fees Annual Caliber uses the Run Rate to demonstrate how annualized Run Rate asset management fees change as compared to prior periods Asset Asset Months in Annualized Increase Management Management Fees X the Year = Revenue vs FY22 Revenue (for month ended
Slide 15: Caliber Hospitality Trust – Asset Management Fee Growth
Caliber Hospitality Trust – Asset Management Fee Growth • Externally advised private hospitality real estate investment trust (“CHT”) • $186M in Caliber-managed hotel assets contributed in Q1 2023 to seed CHT • $220m in 2nd Contribution signed with LTD, taking portfolio to $400m+ • Target portfolio
Slide 16: Caliber Could Expand Fundraising by Growing Sales Distribution
AM Revenue Driven by Fundraising Success Caliber Could Expand Fundraising by Growing Sales Distribution Retail Salesforce Wholesale Salesforce Capital Production Production Expansion Average Annual Production Average Annual Production per Salesperson per Salesperson Experienced Established Territori
Slide 17: Caliber BD/RIA Expansion – Recent Announcement
Caliber BD/RIA Expansion – Recent Announcement Caliber formally expands its national wholesaling team National Wholesaling Team • Skyway Capital Markets to serve as a managing broker-dealer for our funds’ primary investment products • Skyway is an independent managing broker dealer offering a compr
Slide 18: Revenue Growth Focused on Asset Management Fees
Revenue Growth Focused on Asset Management Fees Diversified Revenue Streams* Management Fee Revenue Growing Steadily (2022 Revenue Share ) Performance Fees 9%+ YoY 30,000 Management (Carried Interest) Fee Growth Grow with AUM and 11% 25,000 Asset as funds mature 47.6% 34% Management Fees Revenues ($
Slide 19: Experienced & Aligned Executive Leaders
Caliber Leadership Innovates Over the Past 15 Years Experienced & Aligned Executive Leaders Chris Loeffler – CEO & Co-Founder Jennifer Schrader – President and COO & Co-Founder Jade Leung – CFO Roy Bade – Chief Development Officer John Hartman – CIO Yaron Ashkenazi – Head of Hospitality George Pace
Slide 20: Leading in Distressed Assets, Fundraising & Opportunity Zones
Leading in Distressed Assets, Fundraising & Opportunity Zones Track Record of Innovation ✓ 2008-2012 led on distressed real estate investing, auctions, non-performing notes, and special situations ✓ Early leaders in Public Fundraising following the 2013 JOBS Act ✓ Developed a fundraising engine that
Slide 21: Independent Board Committed to Strong Corporate Governance
Independent Board Committed to Strong Corporate Governance Our Directors Public Company, Asset Management, Real Estate and Public Company Experience • Chris Loeffler – Chief Executive Officer & Co-Founder • Jennifer Schrader – President, Chief Operating Officer & Co-Founder • Dan Hansen – Lead Indep
Slide 22: Scaling Topline Growth (Fiscal 2022)
Scaling Topline Growth (Fiscal 2022) 50% YoY Total Segment Revenue 50% YoY Consolidated Revenue Growth Growth $100,000 $30,000 $90,000 $83,956 $25,000 $80,000 $70,000 $20,000 $56,033 $60,000 (000s) (000s) $15,000 $50,000 $10,000 $40,000 $5,000 $30,000 $- $20,000 2021 2022 $10,000 $- Asset Mgmt Fees
Slide 23: 3rd Quarter Summary Results
3rd Quarter Summary Results Total Segment Revenue Total Consolidated Revenue $10,000 $25,000 $8,399 $19,506 $8,000 $20,000 $17,025 $6,000 $15,000 (000s) (000s) $4,000 $3,728 $10,000 $2,000 $5,000 $- $- Q3'22 Q3'23 Q3'22 Q3'23 Asset Mgmt Fees Performance Transaction Total Caliber Adj. EBITDA (Loss) N
Slide 24: Path Forward for Enterprise Value Growth
Path Forward for Enterprise Value Growth Fundraising Product Innovation Acquisitions THE WEALTH DEVELOPMENT COMPANY 24
Slide 25: Why Invest in Caliber?
Why Invest in Caliber? 1. Large and growing addressable market opportunity - alternative asset management 2. Unique focus on attractive and overlooked middle-market real estate investment opportunities 3. In-house fundraising drives growth with non-dilutive capital 4. Multiple revenue streams and va
Slide 26: Contacts
Contacts: Chris Loeffler, CEO Chris.Loeffler@CaliberCo.com Lisa Fortuna, Investor Relations, Financial Profiles lfortuna@finprofiles.com CaliberCos NASDAQ: CWD https://www.caliberco.com/
Slide 27: Appendix
Appendix THE WEALTH DEVELOPMENT COMPANY 27
Slide 28: 3rd Quarter – Summary Highlights
3rd Quarter – Summary Highlights • Total revenues of $17.0 million • Asset management revenue of $2.4 million Financial • Asset management revenue run rate of $9.8 million Measures • Net loss attributable to Caliber of $3.4 million, or $0.16 per diluted share • Adjusted EBITDA loss of $1.5 million •
Slide 29: GAAP Income Statement
GAAP Income Statement CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Asset management fees $ 1,273 $ 982 $ 3,784 $
Slide 30: GAAP Income Statement (cont.)
GAAP Income Statement (cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Consolidated funds - gain on sale of real estate investments — — — 21,530 Other income (loss), net 414 25 1,479 241 Gain on extingu
Slide 31: GAAP Balance Sheet
GAAP Balance Sheet CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) September 30, December 31, 2023 2022 Assets Cash $ 995 $ 1,921 Restricted cash 2,479 23 Real estate investments, net 21,383 2,065 Due from
Slide 32: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) September 30, December 31, 2023 2022 Liabilities and Stockholders’ Equity Notes payable $ 54,254 $ 14,653 Notes payable - related
Slide 33: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) Commitments and Contingencies Preferred stock Series B, $0.001 par value; 12,500,000 shares authorized, no shares issued and outst
Slide 34: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation NON-GAAP INCOME STATEMENT (AMOUNTS IN THOUSANDS) Three Months Ended September 30, 2023 2022 Net loss $ (12,222) $ (667) Interest expense 1,316 342 Depreciation expense 140 15 Consolidated funds’ EBITDA adjustments 7,210 4,810 Consolidated EBITDA (3,556) 4,50
Slide 35: NON-GAAP Reconciliation: Fund Management Segment
NON-GAAP Reconciliation FUND MANAGEMENT SEGMENT (AMOUNTS IN THOUSANDS) Three Months Ended September 30, 2023 2022 $ Change % Change Revenues Asset management fees $ 2,428 $ 1,927 $ 501 26.0 % Performance allocations 24 103 (79) (76.7)% Transaction and advisory fees 560 5,008 (4,448) (88.8)% Total re
Slide 36: NON-GAAP Reconciliation: Development Segment
NON-GAAP Reconciliation DEVELOPMENT SEGMENT (AMOUNTS IN THOUSANDS) Three Months Ended September 30, 2023 2022 $ Change % Change Revenues Transaction and advisory fees $ 516 $ 1,182 $ (666) (56.3)% Total revenues 516 1,182 (666) (56.3)% Expenses Operating costs 394 321 73 22.7% General and administra
Slide 37: NON-GAAP Reconciliation: Brokerage Segment
NON-GAAP Reconciliation BROKERAGE SEGMENT (AMOUNTS IN THOUSANDS) Three Months Ended September 30, 2023 2022 $ Change % Change Revenues Transaction and advisory fees $ 200 $ 179 $ 21 11.7% Total revenues 200 179 21 11.7% Expenses Operating costs 102 31 71 229.0% General and administrative 24 23 1 4.3
Slide 38: NON-GAAP Reconciliation: Managed Capital
NON-GAAP Reconciliation MANAGED CAPITAL (AMOUNTS IN THOUSANDS) Managed Capital Balances as of December 31, 2022 $ 383,189 Originations 12,050 Redemptions (2,742) Balances as of March 31, 2023 392,497 Originations 11,227 Redemptions (1,968) Balances as of June 30, 2023 401,756 Originations 12,958 Red
Slide 39: NON-GAAP Reconciliation: FV AUM
NON-GAAP Reconciliation FV AUM (AMOUNTS IN THOUSANDS) FV AUM Balances as of December 31, 2022 $ 745,514 Assets acquired(1) 28,604 Construction and net market appreciation 33,019 Assets sold or disposed (5,820) Credit(2) 4,242 Other(3) 1,360 Balances as of March 31, 2023 806,919 Assets acquired(1) —
Slide 40: NON-GAAP Reconciliation: FV AUM
NON-GAAP Reconciliation FV AUM (AMOUNTS IN THOUSANDS) September 30, 2023 December 31, 2022 Real Estate Hospitality $ 316,000 $ 319,300 Residential 148,600 86,900 Commercial 266,900 255,197 Total Real Estate 731,500 661,397 Credit(2) 79,758 74,766 Other(3) 11,212 9,351 Total $ 822,470 $ 745,514 _____
Slide 41: Definitions and Non-GAAP Measures
Definitions and Non-GAAP Measures Asset Management Revenue Run Rate. This is an estimate that annualizes asset management revenue, which are on a basis that deconsolidates the consolidated funds. Assets Under Development. We define development, redevelopment, construction, and entitlement projects t
Slide 42: Definitions and Non-GAAP Measures
Definitions and Non-GAAP Measures Fair Value Assets Under Management (“FV AUM”). FV AUM is defined as the aggregate fair value of the real estate assets the Company manages from which it derives management fees, performance revenues and other fees and expense reimbursements. We estimate the value of
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