Calibercos Inc. · NASDAQ:CWD
Calibercos — LD Micro Main Event XVI Conference (October 2023)
36 slides from Calibercos's conference presentation, October 2023
Slide 1: LD Micro Main Event XVI Conference
LD Micro Main Event XVI Conference October 2023 NASDAQ: CWD
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 historical facts
Slide 3: We Invest in, Manage and Develop Real Estate
We Invest in, Manage and Develop Real Estate • Caliber has a 15-year track record and $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 inve
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: AM Revenue Driven by Fundraising Success
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: 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 19: 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 20: 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 21: 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 22: 2nd Quarter Summary Results
2nd Quarter Summary Results Total Segment Revenue Total Consolidated Revenue $5,000 $25,000 $4,382 $20,445 $4,000 $20,000 $18,681 $3,373 $3,000 $15,000 (000s) (000s) $2,000 $10,000 $1,000 $5,000 $- $- Q2'22 Q2'23 Q2'22 Q2'23 Asset Mgmt Fees Performance Transaction Total Caliber Adj. EBITDA (Loss) Ne
Slide 23: 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 ($0
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 Investor Relations Tamara Gonzalez, Financial Profiles Tgonzalez@finprofiles.com CaliberCos NASDAQ: CWD https://www.caliberco.com/
Slide 27: Appendix
Appendix THE WEALTH DEVELOPMENT COMPANY 27
Slide 28: 2nd Quarter – Summary Highlights
2nd Quarter – Summary Highlights • Total revenues of $20.4 million, a 9.4% increase Financial • Net loss attributable to Caliber of $5.7 million, or $0.29 per diluted share, compared to a net loss of Measures $0.5 million or $0.03 per diluted share • Caliber Adjusted EBITDA loss of $2.3 million, com
Slide 29: Consolidated Statements of Operations
Consolidated Statements of Operations CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues Asset management fees $ 1,229 $ 1,135 $
Slide 30: Consolidated Statements of Operations (Cont.)
Consolidated Statements of Operations (Cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Consolidated funds - gain on sale of real
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) June 30, 2023 December 31, 2022 Assets Cash $ 1,335 $ 1,921 Restricted cash 2,330 23 Real estate investments, net 21,411 2,065 Due
Slide 32: Consolidated Balance Sheet (Cont.)
Consolidated Balance Sheet (Cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) June 30, 2023 December 31, 2022 Liabilities and Stockholders’ Equity Notes payable $ 54,964 $ 14,653 Notes payable - relat
Slide 33: Consolidated Balance Sheet (Cont.)
Consolidated Balance Sheet (Cont.) CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) June 30, 2023 December 31, 2022 Liabilities and Stockholders’ Equity Preferred stock Series B, $0.001 par value; 12,500,00
Slide 34: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation The following table presents a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for periods presented (in thousands) Three Months Ended June 30, 2023 2022 Net loss $ (11,580) $ (1,959) Interest expense 1,261 175 Depreciation expense 137 7 Co
Slide 35: 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 36: 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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