Slide 1: Earnings Presentation 3Q 2023
EARNINGS PRESENTATION 3Q 2023 November 1, 2023 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
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) the
Slide 3: Important Note Regarding Non-GAAP Financial Measures
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 meth
Slide 4: DBRG Reports Third Quarter 2023 Results
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 2023
Slide 5: DigitalBridge Third Quarter 2023 GAAP Results
DIGITALBRIDGE THIRD QUARTER 2023 GAAP RESULTS CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended September 30, (In thousands, except per share data, unaudited) 2023 2022 Revenues Fee income $ 65,240 $ 41,263 Carried interest allocation (reversal) 168,891 121,698 Principal investment income (los
Slide 6: Agenda
AGENDA 1 SECTION BUSINESS UPDATE 2 SECTION FINANCIAL RESULTS 3 SECTION EXECUTING THE DIGITAL PLAYBOOK 6
Slide 7: Business Update
DIGITALBRIDGE ball TE | >| BUSINESS UPDATE 1
Slide 8: Progress on Our 2023 Priorities: The Things That Matter
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. Stron
Slide 9: New Capital Formation
NEW CAPITAL DBP Series FORMATION Co-Invest DigitalBridge has raised $5.4B $9.5 Core, Credit, Liquid in new fee-earning equity YTD(1), RANGE $8.0 up $2.0B since last quarter, midpoint driven principally by continuing ($ in Billions; cumulative) commitments to the latest DBP $6.5 $5.4 Q3 Adds Series
Slide 10: Assets & Fee Earning Equity Under Management
ASSETS & FEE EARNING EQUITY UNDER MANAGEMENT Fee-Earning Equity Under Management (FEEUM) increased $9.4B, or 46% YoY, to $29.9B as of September 30, 2023, powered by organic capital formation and contribution from the InfraBridge acquisition. FEEUM(1) AUM(1) ($ in Billions) ($ in Billions) +48% $74.6
Slide 11: Simplification – DataBank Deconsolidated
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. The final closi
Slide 12: Simplification Fund Performance Reporting
SIMPLIFICATION FUND PERFORMANCE REPORTING We have a demonstrated record of As DigitalBridge finalizes its transition to a pure-play alternative asset manager, we continue producing attractive returns consistent to align our reporting with our peers. This quarter we are introducing fund performance
Slide 13: Portfolio Performance
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. DATA CENTER TOWER FIBER SMALL PORTFOLIO PORTFOLIO PORTFOLIO CELLS/EDGE 20
Slide 14: Financial Results
2 FINANCIAL RESULTS 14
Slide 15: DigitalBridge's Third Quarter 2023 Highlights – Key Metrics
DIGITALBRIDGE’S THIRD QUARTER 2023 HIGHLIGHTS – KEY METRICS Fee Income – IM Segment Fee Related Earnings – IM Segment Distributable Earnings - Corporate $66.1M $29.2M $35.0M $32.3M 8% 57% 36% $21.5M $42.0M 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 FEEUM AUM Run Rate Fee Revenue(1) $29.9B $74.6B $276.1M 46% 48%
Slide 16: Third Quarter 2023 Highlights & KPIs
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. Financial Fee Related Earnings in the investment management segment (“IM FRE”) was $29.2 mil
Slide 17: Consolidated Results (Non-GAAP)
CONSOLIDATED RESULTS (NON-GAAP) Consolidated revenues were up 11% YoY, led by Fee Income growth of 58%, driven by higher Fee-Earning Equity Under Management. Adjusted EBITDA of $34 million grew 15%, with increased earnings from our IM segment offset by reduced ownership of operating segment assets.
Slide 18: Investment Management Results (Non-GAAP)
INVESTMENT MANAGEMENT RESULTS (NON-GAAP) During 3Q23, Fee Income increased 57% driven by increased FEEUM from new strategies and the InfraBridge acquisition. FRE and segment-level distributable earnings increased 36% and 51% respectively. FRE Margin was impacted by higher corporate expenses attribut
Slide 19: Investment Management Segment Detail (Non-GAAP)
INVESTMENT MANAGEMENT SEGMENT DETAIL (NON-GAAP) Carried interest income of $169 million, up 39% YoY, including accruals of $141 million and realized carried interest of $28 million resulting from the final closing of the DataBank recapitalization. Other IM Expenses continue to decline YoY. % Change
Slide 20: Operating Segment Results (Non-GAAP)
OPERATING SEGMENT RESULTS (NON-GAAP) DBRG at-share Operating Segment revenues and earnings declined YoY due to lower DBRG ownership of businesses in this segment. Notably, since 3Q22, progress on the DataBank recap lowered DBRG ownership from 22%(1) to 9.9%, ultimately resulting in its deconsolidati
Slide 21: Investment Management Growth
INVESTMENT MANAGEMENT GROWTH 3Q Annualized Fee Revenue increased 45% YoY and declined slightly QoQ due to coinvest syndications which reduced FEEUM and were not yet offset by newly activated FEEUM. IM Segment FRE on a QoQ basis was impacted by higher corporate expenses attributed to the IM segment.
Slide 22: DataBank Deconsolidation
DATABANK DECONSOLIDATION The most significant change to the balance sheet during 3Q was the deconsolidation of DataBank, which substantially reduced consolidated debt and further simplified our corporate profile. Key Takeaways ($ in Millions) Consolidated Balance Sheet Other Q3 Deconsolidation Asset
Slide 23: Balance Sheet Profile
BALANCE SHEET PROFILE Primary assets are equity investments where we invest alongside our LPs, Operating Segment Net Equity Value and Corporate Cash. DigitalBridge continues to maintain strong liquidity levels. Assets Capitalization Equity Investments (At Share) DigitalBridge consolidates financial
Slide 24: Executing the Digital Playbook: DigitalBridge Credit
3 EXECUTING THE DIGITAL PLAYBOOK DIGITALBRIDGE CREDIT 24
Slide 25: Private Credit: A Growing Force in Global Markets
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 capital markets. WHY PRIVATE CREDIT NOW? Demand Growth in debt outstanding
Slide 26: Private Credit: Increasing Institutional Appetite
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. RISING ‘INTENT TO ALLOCATE’ CAPITAL FORMATION IN PRIVATE CREDIT DigitalBridge Credit is at the intersect
Slide 27: DigitalBridge Private Credit Platform
DIGITALBRIDGE PRIVATE CREDIT PLATFORM DigitalBridge Credit delivers investment solutions to support the growth of companies across the Digital Infrastructure sector. A Focused and Dedicated Digital Infrastructure Player in Private Credit $1B LIQUID Public Market Investing CREDIT INVESTMENT TEAM Fee
Slide 28: DigitalBridge Credit Case Study: CoreWeave Financing Next-Gen AI Compute
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 technology. CUSTOMER VALUE PROP BEST ‘POUND FOR POUND’ TECHNOLOGY STACK CLOUD INFRA SERVICE PROVIDER
Slide 29: DigitalBridge Credit Case Study: CoreWeave Leveraging the DigitalBridge Ecosystem
DIGITALBRIDGE CREDIT CASE STUDY: COREWEAVE LEVERAGING THE DIGITALBRIDGE ECOSYSTEM Source/Vet/Accelerate: DigitalBridge Credit participation in CoreWeave financing highlights strategic value of DigitalBridge Ecosystem $2.3 Billion Debt Financing SOURCE VET Growth capex to fund purchase of Significant
Slide 30: 2023 CEO Priorities: Things That Matter
2023 CEO PRIORITIES: 3 THINGS THAT MATTER CEO 2023 Checklist FUNDRAISE Secular Tailwinds Around • $5.4B on the way to $8B in new capital formed Connectivity – Big Growing TAM • Strong finish into year end 2023 The Leading Management Team SIMPLIFY – 50% COMPLETE 25+ years Investing and Deconsolidat
Slide 31: Q&A Session
teat! DIGITALBRIDGE Q&A SESSION
Slide 32: Appendix
5 APPENDIX 32
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ 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 Operat
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands) 3 Q2 3 2 Q2 3 1 Q2 3 4 Q2 2 3 Q2 2 2 Q2 2 1 Q2 2 4 Q2 1 I M net income (loss) $100,014 $ 35,177 $ (2 , 8 0 4 ) $ 81,167 $ 46,065 $ 67,995 $ (9 , 1 4 3 ) $ 28,194 Adjustments: Interest expense (income) 2,128 2,268 2,411 2,200 2,906 2,771 2,500 2,499 Investmen
Slide 35: Balance Sheet
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 165,340
Slide 36: Definitions
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 and/
Slide 37: DigitalBridge
DIGITALBRIDGE