Slide 1: Earnings Presentation 3Q 2023
1 EARNINGS PRESENTATION 3Q 2023 November 1, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities laws, including statements relating to (i) our strategy, outlook and growth prospects, (ii) our operational and financial targets, (iii) t
Slide 3: Important Note Regarding Non-GAAP Financial Measures
3 IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES This presentation includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including certain of the financial metrics defined below, of which the calculations may differ from me
Slide 4: DBRG Reports Third Quarter 2023 Results
4 DBRG REPORTS THIRD QUARTER 2023 RESULTS Boca Raton, November 1st, 2023 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the third quarter ended September 30, 2023. The Company reported third quarter 20
Slide 5: DigitalBridge Third Quarter 2023 GAAP Results
5 DIGITALBRIDGE THIRD QUARTER 2023 GAAP RESULTS Three Months Ended September 30, 20222023 Revenues $ 41,263$ 65,240Fee income 121,698168,891Carried interest allocation (reversal) 11,53117,943Principal investment income (loss) 244,336214,058Property operating income 11,02410,948Other income 429,85247
Slide 6: Agenda
6 AGENDA BUSINESS UPDATESE CT IO N 1 FINANCIAL RESULTSSE CT IO N 2 SE CT IO N 3 EXECUTING THE DIGITAL PLAYBOOK
Slide 7: Business Update
1 BUSINESS UPDATE ‘] 2s 218 2s 218 cotta DIGITALBRIDGE
Slide 8: Progress on Our 2023 Priorities: The Things That Matter
8 PROGRESS ON OUR 2023 PRIORITIES: THE 3 THINGS THAT MATTER In 3Q23, DigitalBridge delivered strong financial results and continued to make progress on its key 2023 priorities, including capital formation, Operating segment deconsolidation, and persistent growth across its portfolio companies. Str
Slide 9: New Capital Formation
9 $2.5 $2.2 $0.7 NEW CAPITAL FORMATION DigitalBridge has raised $5.4B in new fee-earning equity YTD(1), up $2.0B since last quarter, driven principally by continuing commitments to the latest DBP Series and co-invest. DBRG remains on track to meet its FY 2023 fundraising targets. Capital raised
Slide 10: Assets & Fee Earning Equity Under Management
10 $23.1 $30.2 $32.5 $16.5 $20.0 $19.4 $8.9 $8.8 $7.7 $8.0 $8.7 $1.0 $3.3 $3.6 $2.0 $1.8 $1.6 $50.3 $72.2 $74.6 3Q22 2Q23 3Q23 $10.8 $11.3 $11.3 $6.3 $8.0 $8.5 $5.1 $5.1 $2.4 $2.3 $2.4 $1.0 $2.4 $2.6 $20.5 $29.1 $29.9 3Q22 2Q23 3Q23 ASSETS & FEE EARNING EQUITY UNDER MANAGEMENT Fee-Earning Equity Und
Slide 11: Simplification – DataBank Deconsolidated
11 $1,000M $750M SIMPLIFICATION – DATABANK DECONSOLIDATED DBRG completed the $2.2 billion recapitalization of DataBank on September 14, resulting in $50 million in incremental gross proceeds and bringing net monetized value to DBRG to $471 million(1), while generating a 32% IRR for DBRG shareholders
Slide 12: Simplification: Fund Performance Reporting
12 SIMPLIFICATION FUND PERFORMANCE REPORTING As DigitalBridge finalizes its transition to a pure-play alternative asset manager, we continue to align our reporting with our peers. This quarter we are introducing fund performance metrics into our 10K/Q financial reporting framework. (1) Listed herein
Slide 13: Portfolio Performance
13 PORTFOLIO PERFORMANCE Powerful secular tailwinds, driving demand for compute and connectivity, continue to underpin positive performance across our diversified global portfolio. Ultimately portfolio performance drives returns. (1) The Company defines Monthly Recurring Revenue “MRR”, as revenue fr
Slide 14: Financial Results
14 2 FINANCIAL RESULTS
Slide 15: Third Quarter 2023 Highlights – Key Metrics
15 Distributable Earnings - Corporate $182.0M $276.1M 3Q22 3Q23 $50.3B $74.6B 3Q22 3Q23 $20.5B $29.9B 3Q22 3Q23 $32.3M $35.0M 3Q22 3Q23 $21.5M $29.2M 3Q22 3Q23 $42.0M $66.1M 3Q22 3Q23 DIGITALBRIDGE’S THIRD QUARTER 2023 HIGHLIGHTS – KEY METRICS Fee Income – IM Segment Fee Related Earnings – IM Segmen
Slide 16: Third Quarter 2023 Highlights & KPIs
16 THIRD QUARTER 2023 HIGHLIGHTS & KPIs At share, DBRG shareholder metrics for the quarter ended September 30, 2023: Fee Income in the investment management segment was $66.1 million, up 57% year-over-year. Fee Related Earnings in the investment management segment (“IM FRE”) was $29.2 million, u
Slide 17: Total Company
17 TOTAL COMPANY 3Q22 3Q23 % Change YOY 3Q22 LTM 3Q23 LTM % Change YOY Fee Income $41.3 65.2 +58% $184.4 $234.4 +27% Carried Interest (realized and unrealized) 121.7 168.9 +39% 231.3 370.3 +60% Principal Investment Income 11.5 17.9 +56% 89.0 73.4 (18%) Property Operating Income 244.3 214.1 (12%) 871
Slide 18: Investment Management ("IM")
18 INVESTMENT MANAGEMENT ("IM") 3Q22 3Q23 % Change YOY 3Q22 LTM 3Q23 LTM % Change YOY Fee Income, excluding incentive fees $42.0 $66.1 +57% $182.8 $237.0 +30% Other Income 0.4 0.4 1.4 2.5 G&A (20.9) (37.3) (77.9) (117.2) Minority Holder Allocation of Adjusted EBITDA – – (23.3) – Fee Related Earnings
Slide 19: Carried Interest Detail and IM Segment Detail
19 % Change YoY3Q233Q22Carried Interest Detail $141.0 ($1.8) Unrealized Carried Interest – Income 27.9 123.5 Realized Carried Interest – Income 39%$168.9 $121.7 Carried Interest – Income (as reported on GAAP Income Statement) ($72.9)($1.0)Unrealized Carried Interest – Compensation Expense –(79.8) Re
Slide 20: Operating Segment Results (Non-GAAP)
20 OPERATING 3Q22 3Q23 % Change YOY 3Q22 LTM 3Q23 LTM % Change YOY Revenues $36.5 $25.3 (31%) $144.8 $106.8 (26%) Expenses (21.3) (14.7) (31%) (82.3) ($59.8) (27%) Adjusted EBITDA $15.2 $10.6 (30%) $62.5 $47.0 (25%) Interest & Other Expenses (7.1) (6.2) (14%) (27.9) (24.4) (13%) Maintenance Capex (1
Slide 21: Investment Management Growth
21 $276M Run Rate Fee Revenue INVESTMENT MANAGEMENT GROWTH (1) Based on 9/30/23 FEEUM multiplied by the weighted average annual fee rate % and inclusive of capital raised for new products that have yet to begin charging fees and recurring business service fees. Run-Rate Fee Revenue is calculated by
Slide 22: Consolidated Balance Sheet
22 ($ in Millions) Consolidated Balance Sheet Assets 6/30/23 Other Q3 Activity Deconsolidation of DataBank 9/30/23 Cash and Cash Equivalents 427$ 60$ (53)$ 434$ Restricted Cash 155 (1) (50) 105 Investments 1,289 591 – 1,880 Real Estate 6,178 107 (3,235) 3,051 Goodwill 923 6 (463) 466 Deferred Leasin
Slide 23: Balance Sheet Profile
23 BALANCE SHEET PROFILE Assets Equity Investments (At Share) $303GP Affiliated Investment in DBP Series 321GP Affiliated Investments - Other & Warehoused Investments (Credit, Core, Infrabridge, Liquid, Ventures) 434GP Affiliated Investment in DataBank $1,058Equity Investments Total (at share) 224Op
Slide 24: DigitalBridge Credit
24 3 EXECUTING THE DIGITAL PLAYBOOK DIGITALBRIDGE CREDIT
Slide 25: Private Credit: A Growing Force in Global Markets
25 109% -25% 0% 25% 50% 75% 100% 125% 2018 2019 2020 2021 2022 2.72% 3.88% PRIVATE CREDIT: A GROWING FORCE IN GLOBAL MARKETS Since 2010, $1.8 trillion of aggregate capital has been raised by institutional asset managers to fund the growing demand for credit, taking share from traditional lenders and
Slide 26: Private Credit: Increasing Institutional Appetite
26 PRIVATE CREDIT: INCREASING INSTITUTIONAL APPETITE Attractive risk-adjusted returns boosted by a rising rate environment are driving strong interest in private credit from institutional investors. 63% 58% 0% 10% 20% 30% 40% 50% 60% 70% Private Equity Venture Capital Private Debt Hedge Funds Real E
Slide 27: DigitalBridge Private Credit Platform
27 DigitalBridge finished Q3 2023 with $1B of capital raised across fund investments, separately managed accounts and co- investments Providing financial sponsors with skill capital that leverages the DBRG ecosystem Flexible check sizes between $20M - $300M Full spectrum credit solutions: firs
Slide 28: DigitalBridge Credit Case Study: CoreWeave
28 BEST ‘POUND FOR POUND’ AI COMPUTE FAST, FLEXIBLE & COST EFFECTIVE HIGHLY SCALABLE $160B TAM(1) DIGITALBRIDGE CREDIT CASE STUDY: COREWEAVE FINANCING NEXT-GEN AI COMPUTE CoreWeave is leading a new generation of Specialized Cloud Providers focused on serving AI workloads at scale with the latest tec
Slide 29: Case Study: Leveraging the DigitalBridge Ecosystem
29 SOURCE VET ACCELERATE Significant market intelligence and tangible value proposition Ability to de-risk transactions by leveraging DigitalBridge’s ecosystem CoreWeave attracted to breadth of DigitalBridge data center assets and industry expertise Credit underwriting process enhanced by access
Slide 30: 2023 CEO Priorities: Things That Matter
30 2023 CEO PRIORITIES: 3 THINGS THAT MATTER CEO 2023 Checklist Secular Tailwinds Around Connectivity – Big Growing TAM The Leading Management Team 25+ years Investing and Operating Digital Assets Converged Vision with Exposure to Entire Digital Ecosystem Focus on realization of high-growth digital
Slide 31: Q&A Session
cotta DIGITALBRIDGE Q&A SESSION
Slide 32: Appendix
5 APPENDIX DIGITAUBRIDGE
Slide 33: Non-GAAP Reconciliations
33 NON-GAAP RECONCILIATIONS ($ in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Net income (loss) attributable to common stockholders $ 261,828 $ (22,411) $ (212,473) $ (19,356) $ (63,273) $ (37,321) $ (262,316) $ (20,686) Net income (loss) attributable to noncontrolling common interests in Ope
Slide 34: Non-GAAP Reconciliations
34 NON-GAAP RECONCILIATIONS ($ in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 IM net income (loss) $100,014 $ 35,177 $ (2,804) $ 81,167 $ 46,065 $ 67,995 $ (9,143) $ 28,194 Adjustments: Interest expense (income) 2,128 2,268 2,411 2,200 2,906 2,771 2,500 2,499 Investment expense, net of reimbu
Slide 35: Balance Sheet
35 BALANCE SHEET ($ in thousands, except per share data) (unaudited) As of September 30, Consolidated Assets Cash and cash equivalents $ 434,044 Restricted cash 104,626 Investments 1,879,981 Real estate 3,050,577 Goodwill 466,092 Deferred leasing costs and intangible assets 697,754 Other assets 165,
Slide 36: Definitions
36 DEFINITIONS Assets Under Management (“AUM”) AUM represents the total capital for which we provide investment management services. AUM is generally composed of (a) third party capital managed by the Company and its affiliates, including capital that is not yet fee earning, or not subject to fees a
Slide 37: DigitalBridge
DIGITALBRIDGE