Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony Capital — Investor Presentation (December 2019)
37 slides from Digitalbridge's investor presentation, Dec 12, 2019
Slide 1: Investor Presentation
December 11, 2019 INVESTOR PRESENTATION Thomas J. Barrack, Jr. Executive Chairman & Chief Executive Officer Colony Capital Marc C. Ganzi CEO Digital Bridge Holdings, LLC and CEO - Elect, Colony Capital
Slide 2: Disclaimer
Disclaimer 2 This presentation may contain forward - looking statements within the meaning of the federal securities laws . Forward - looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters
Slide 3: Disclaimer: Important Additional Information
Disclaimer 3 Important Additional Information The Company, its directors and its executive officers will be participants in the solicitation of proxies from the Company’s stockholders in connection with the matters to be considered at the 2020 Annual Meeting of Stockholders (the “ 2020 Annual Meetin
Slide 4: Table of Contents
4 Table of Contents 1 2019 Accomplishments 2 Digital Fuels the New Economy 3 Colony Digital Playbook 4 2020 Plan
Slide 5: 2019 Accomplishments
5 2019 Accomplishments
Slide 6: Our Commitment to Shareholders
Our Commitment to Shareholders 6 In 2018, the Board of Directors determined that Tom Barrack would be the most qualified and experienced candidate to lead Colony as CEO through the Company’s next chapter given his experience as the Founder, the Executive Chairman, and the single largest individual s
Slide 7: Our Commitment to Shareholders (continued)
Our Commitment to Shareholders (continued) 7 Clear Guardrails of Our Transformational Plan 5 CO - INVEST GROW STRENGTHEN SIMPLIFY ROTATE our balance sheet capital into total - return driven assets in which we have a durable competitive advantage, favorable growth prospects, low recurring capital exp
Slide 8: What We Have Accomplished in 2019: Simplification
What We Have Accomplished in 2019: SIMPLIFICATION 8 x Industrial: Completed the sale of our light industrial platform for $5.7 billion, delivering a 17% IRR to our shareholders while utilizing modest leverage x Other Equity and Debt (“OED”): Exceeded 2019 target of $500 million of OED monetizations
Slide 9: What We Have Accomplished in 2019: A Thematic Growth Story
Today , we manage more than $20 billion of digital real estate AUM 1 , an extraordinary increase from just $0 in digital real estate AUM only two years ago What We Have Accomplished in 2019: A THEMATIC GROWTH STORY 9 x Digital Colony Partners (“ DCP”): Closed on $4.1 billion of commitments for Digit
Slide 10: Our Mission for 2020 and Beyond
Our Mission for 2020 and Beyond 10 Bridging the Digital Divide OUR FOCUSED MISSION: Become the leading real asset solutions provider of occupancy, connectivity, and capital to the world's leading mobile communications and technology logos. Together with our limited partners, we will invest in digita
Slide 11: Digital Fuels the New Economy
11 DIGITAL FUELS THE NEW ECONOMY
Slide 12: Data Demand: A Global Opportunity
12 Data Demand: A Global Opportunity Mobile operators are forecasted to invest greater than $480 BILLION WORLDWIDE between 2018 and 2020 in mobile capex, with half coming from countries expected to have launched 5G by 2020 1 Mobile Internet Users 2018 3.6bn 47% PENETRATION RATE (% of population) 61%
Slide 13: 5G Will Drive the Future Network Society
13 5G Will Drive the Future Network Society 5G technology is much more than just the future of mobile networks ; we believe it represents a massive step function that will be the catalyst for a revolution in industrial and consumer applications X 1,000 Increasing wireless capacity 1,000 times 7 Bill
Slide 14: Next Generation Networks Require a Converged Approach
14 Next Generation Networks Require a Converged Approach to Infrastructure Development and Ownership 5G End to End 5G CITIES WORLDWIDE 5G will Enable Low - Latency Applications • Bandwidth • Content Control • Security • Privacy • Reliability Technology Transformation • Data center performance will s
Slide 15: Mobile & Internet Infrastructure Key Segments
Mobile & Internet Infrastructure Key Segments 15 Description Steel structures typically ranging from 30 - 120 meters that hold communications equipment Fiber - fed antenna systems used for both outdoor urban deployments and indoor locations Specialized buildings equipped with power and cooling infra
Slide 16: Colony Digital Playbook
16 COLONY DIGITAL PLAYBOOK Colony is the only global REIT that owns, manages, and operates across all components of the digital ecosystem
Slide 17: The Colony Digital Playbook
The Colony Digital Playbook 17 Colony’s pivot relies on a multi - decade formula for success CORE STRENGTHS 1. People — Established operators, investors and thought leaders with over two decades of experience in towers, data centers, fiber and small cells 2 . Best - in - Class Assets — Mission - cri
Slide 18: People: Accomplished Management
People: Accomplished Management - Digital Colony Is the Leading Global Investment and Operational Team in Digital Infrastructure 18 Jon Mauck Managing Director INVESTMENT AND ASSET MANAGEMENT TEAM Hayden Boucher Vice President Scott McBride Vice President Jeff Ginsberg Managing Director & COO IC Mem
Slide 19: Best-in-Class Assets: Colony Footprint
Best - in - Class Assets: Colony Footprint 19 ENTERPRISE AND HYPERSCALE DATA CENTER ASSETS SMALL CELL ASSETS Provide critical network coverage and capacity TOWER ASSETS Fueling global innovation. Providing mission - critical connectivity Enable additional network densification in high demand areas D
Slide 20: Digital portfolio company descriptions
20 Digita transmits radio and television programs in Finland. Digita applies the latest digital technology in order to develop and offer versatile online television and radio services. In addition, its service portfolio includes comprehensive Internet of Things services based on its nationwide netwo
Slide 21: Best-in-Class Assets: Colony vs. Peer Group
ALTERNATIVE ASSET MANAGERS ~2,400 (3) ~65 (4) — — 6 4 — — — 18 (5) — — Best - in - Class Assets: Colony vs. Peer Group 21 Colony controls the only U.S. end - to - end digital infrastructure platform United States Digital Infra Asset Owners / Operators Macro Towers (Number Of Sites) Small Cells (Numb
Slide 22: Disciplined Framework: Four Corners of Asset Selection
Disciplined Framework: Four Corners of Asset Selection 22 INVESTMENT PRINCIPLES CONTRACT QUALITY Focus on long - term contracts with investment grade customers and build in maximum flexibility to add additional tenants MARKET DYNAMICS Focus on stable markets with catalysts for near - term Digital In
Slide 23: Disciplined Framework: Alpha Creation
Disciplined Framework: Alpha Creation 23 Proprietary Back - Office Systems Differentiated M&A Program Direct Operating Experience Dynamic Balance Sheet Management Human Capital Digital Colony seeks outperformance in our companies through hands - on participation in all of our businesses Recruiting,
Slide 24: Operational Excellence: Alpha in Towers
Operational Excellence: Alpha in Towers 24 Vertical Bridge, a U.S. tower portfolio company managed by Digital Bridge, has outperformed the tower businesses of the big three public REITs over the last three years NET ORGANIC LEASING GROWTH (1) (2016A - 2019E) ADJ. EBITDA CAGR (3) (2016A - 2019E) 9.6%
Slide 25: Operational Excellence: Alpha in Hyper-scale Data Centers
Operational Excellence: Alpha in Hyper - scale Data Centers 25 Vantage, a U.S. data center portfolio company managed by Digital Bridge, has consistently proven the ability to “punch above its weight - class”, exemplified by a track record of out - leasing much larger peers TTM Domestic Leasing ($ in
Slide 26: Operational Excellence: ESG Principles and Goals
Operational Excellence: ESG Principles and Goals 26 Fulfilling Colony Digital’s mission of becoming a leading Digital real estate solutions and capital provider will require the Company to adhere to the highest Environmental, Social & Governance standards Environmental We seek to improve our operati
Slide 27: Proprietary Deal Flow
Tower Assets Small Cell & Fiber Assets Data Center / Hosting / Fiber Enterprise Fiber Enterprise Data Centers Hyper Scale Data Centers 2013 2014 2016 2018 2015 2018 2019 2019 2016 2017 Proprietary Deal Flow 27 Colony has a proven ability to source compelling proprietary investment opportunities in b
Slide 28: Products: DCP Overview
Products: DCP Overview 28 DCP has invested in five companies to - date excluding Zayo 1 and other announced and new transactions to be done with the remaining investable amounts. The five portfolio companies are well diversified across a spectrum of geographies and sectors within digital infrastruct
Slide 29: Products: Growing the Digital IM Franchise
Products: Growing the Digital IM Franchise 29 We are positioned to take the momentum of Digital Colony Partners’ success to scale FEEUM as the leader in opportunistic digital infrastructure private equity and establish other highly scalable, high margin investment management strategies, which levera
Slide 30: Products: Growing the Digital IM Franchise
Products: Growing the Digital IM Franchise 30 Over the next 12 - 24 months, we plan to deliver material FEEUM growth in Digital IM $ 1.5B to $ 2.0B 100bps $ 2.2B $ 7B 9/30/19 FEEUM of ~$ 7billion ; expected to grow by over 15% in 2020 (1) and accelerate in 2021 $2.2 billion of coinvest committed to
Slide 31: 2020 Plan
31 2020 Plan 4
Slide 32: 2020 Plan: Balance Sheet Investment Framework
32 2020 Plan: Balance Sheet Investment Framework Colony will continually evaluate these uses of balance sheet capital to ensure maximum shareholder value is achieved Colony believes in a disciplined and methodical approach to investing balance sheet capital with a sharp focus on achieving the highes
Slide 33: 2020 Plan: Use of Industrial Sales Proceeds
$1.2bn $412 $403 $185 $200 33 2020 Plan: Use of Industrial Sales Proceeds Uses of Remaining Proceeds New Digital Investments • GP Co - Investments • Permanent Balance Sheet Investments • Warehouse Investments for Future Vehicles Capital Structure Net Industrial Sale Proceeds Preferred Redemption Ser
Slide 34: Agreement to acquire 20.4% interest in DataBank
Colony has signed a definitive agreement to acquire from existing 3rd party investors an ownership interest of 20.4% in DataBank , the leading private owner and manager of Edge Data Centers in the U.S. with a nationwide footprint, for approximately $185 million • DataBank is the leading private owne
Slide 35: Core FFO in Transition
Core FFO in Transition • 2020 Core FFO excluding gains/losses is expected to decrease as income - producing assets are sold in advance of de - levering and rotation to Digital - Cash Reserves: Over $400 million of current estimated pro forma cash (after anticipated preferred redemptions and investme
Slide 36: Definitions and Important Notes
Definitions and Important Notes 36 Assets Under Management (“AUM”) : Assets for which the Company and its affiliates provide investment management services, including assets for which the Company may or may not charge management fees and/or performance allocations . AUM is based on reported gross un
Slide 37: Definitions and Important Notes
Definitions and Important Notes 37 Pro - rata : The Company computes pro - rata financial information by applying its economic interest to each financial statement line item on an investment - by - investment basis . Similarly, noncontrolling interests’ share of assets, liabilities, profits and loss
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