Calibercos Inc. · NASDAQ:CWD
Calibercos — Q3 2023 Earnings Presentation
44 slides from Calibercos's earnings presentation, Nov 9, 2023
Slide 1: Caliber Reports Third Quarter 2023 Results
Caliber (Nasdaq: CWD) Reports Third Quarter 2023 Results Date: November 9, 2023 Conference Call Information: The conference call will be broadcast live on the Investor Relations section of Caliber’s website at https://ir.caliberco.com/ or at https://viavid.webcasts.com/starthere.jsp?ei=1638838&tp_ke
Slide 2: 3Q23 Quarterly Earnings Supplemental
3Q23 Quarterly Earnings Supplemental ©2023 Caliber Building on a 15-year track record of profitable growth and success
Slide 3: Forward-Looking Statements
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 historical
Slide 4: Today's Speakers
Today’s Speakers 4T H E W E A L T H D E V E L O P M E N T C O M P A N Y Chris Loeffler CHIEF EXECUTIVE OFFICER Jade Leung CHIEF FINANCIAL OFFICER Chris Loeffler has served as the CEO and Chairman of Caliber’s Board of Directors since its inception. As CEO, Chris directs and executes global strategy,
Slide 5: CEO Commentary
CEO Commentary 5T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 6: Introducing Caliber
6 • 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 investors who want access to alternat
Slide 7: 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 value creation at each st
Slide 8: We Invest in Diverse Real Estate Asset Classes in the Middle Market
8 BEHAVIORAL HEALTH HOSPITAL HOSPITALITY/HOTEL MULTI-FAMILY HOUSING OPPORTUNITY ZONE ASSETS We Invest in Diverse Real Estate Asset Classes in the Middle Market
Slide 9: The Best Opportunities are in the Middle-Market
9T H E W E A L T H D E V E L O P M E N T C O M P A N Y The Best Opportunities are in the Middle-Market Middle-Market Assets • $5 to $50 million per project • Large opportunity set • Highly-fragmented market • Less competition • Caliber’s in-house services model enables access Middle Market Geographi
Slide 10: Caliber Serves a Large and Growing Market for Alternative Investments
Caliber Serves a Large and Growing Market for Alternative Investments 10T H E W E A L T H D E V E L O P M E N T C O M P A N Y 0 ‘10 2 4 6 8 10 12 14 16 18 20 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20* ‘21 ‘22 ‘23 ‘24 ‘25 A ss e ts U n d e r M an ag e m e n t ( $ tr ill io n ) 4.1 4.6 5.6 6.6 6.9 7.4 7
Slide 11: Majority of Investors Want Greater Access to Alternatives
Majority of Investors Want Greater Access to Alternatives 11T H E W E A L T H D E V E L O P M E N T C O M P A N Y Source: Preqin Investor Survey, August 2020 *2020 figure is annualized on data to October. 2022-2026 are Preqin’s forecasted figures. Source: Preqin Stay the Same 2% 16% 55% 26% Will Inc
Slide 12: Wealth Managers are Seeking Alternatives
12T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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%. 1) WealthManagement.com survey Wealth Managers are Seeking Alternatives 6% 6% 9% 16% 28%
Slide 13: Our Products Solve Customer Needs
13T H E W E A L T H D E V E L O P M E N T C O M P A N Y Income Lending, CORE Plus, Value Add Growth Distressed and Special Situations, Adaptive Re-Use & Development Tax Planning/Reduction Opportunity Zone Funds, 1031 Investments Our Products Solve Customer Needs Desired Outcome Caliber Product Calib
Slide 14: Caliber Has Multiple Fundraising Channels
Caliber Has Multiple Fundraising Channels 14T H E W E A L T H D E V E L O P M E N T C O M P A N Y High Net-Worth Investors Registered Investment Advisors & Independent Broker-Dealers Family Offices Boutique Institutions Caliber Private Client Sales Caliber Wholesale Caliber Institutional
Slide 15: Caliber is Designed to Deliver Sustained Growth
Caliber is Designed to Deliver Sustained Growth 15T H E W E A L T H D E V E L O P M E N T C O M P A N Y Raise Capital Grow Assets Under Management Grow Revenue Caliber’s model utilizes fundraising in its products to grow the tangible value of Caliber without dilutive corporate financings
Slide 16: We Have Multiple Revenue Streams
Performance Fees Asset Management Fees We Have Multiple Revenue Streams 16T H E W E A L T H D E V E L O P M E N T C O M P A N Y Asset Services We Hire Ourselves at Market Rates Real Estate Development Real Estate Brokerage Construction Management Note: asset services performed in-house at market rat
Slide 17: Caliber Earns More Per Dollar in AUM
Source: Caliber’s estimates and internal research reviewing comparable business models Caliber Earns More Per Dollar in AUM 17T H E W E A L T H D E V E L O P M E N T C O M P A N Y Caliber’s Vertical Integration: Increased Control & Multiple Revenue Streams Traditional Asset Managers: Lower Control &
Slide 18: Revenue Growth Driven by Annual Recurring Fees
Revenue Growth Driven by Annual Recurring Fees 18T H E W E A L T H D E V E L O P M E N T C O M P A N Y Annual Run Rate Asset Management Revenue Run Rate Caliber uses the Run Rate to demonstrate how annualized asset management fees change as compared to prior periods For Every $100M Invested Caliber
Slide 19: Caliber Hospitality Trust – Asset Management Fee Growth
Caliber Hospitality Trust – Asset Management Fee Growth 19T H E W E A L T H D E V E L O P M E N T C O M P A N Y Using the Caliber infrastructure to launch public investment products • Externally advised private hospitality real estate investment trust (“CHT”) • $186M in Caliber-managed hotel assets
Slide 20: AM Revenue Driven by Fundraising Success
AM Revenue Driven by Fundraising Success 20T H E W E A L T H D E V E L O P M E N T C O M P A N Y Caliber Could Expand Fundraising by Growing Sales Distribution Retail Salesforce Production Wholesale Salesforce Production Capital Expansion Average Annual Production per Salesperson Experienced $15 to
Slide 21: Caliber BD/RIA Expansion – Recent Announcement
Caliber BD/RIA Expansion – Recent Announcement 21T H E W E A L T H D E V E L O P M E N T C O M P A N Y • 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 comprehensive platform for the
Slide 22: Revenue Growth Focused on Asset Management Fees
Revenue Growth Focused on Asset Management Fees Source: Caliber reports 4.6% 47.6% 47.8% Diversified Revenue Streams (2022 Revenue Share ) Management Fee Revenue Growing Steadily 22T H E W E A L T H D E V E L O P M E N T C O M P A N Y Performance Fees (Carried Interest) Grow with AUM and as funds ma
Slide 23: Caliber Leadership Innovates Over the Past Years
Caliber Leadership Innovates Over the Past 15 Years 23T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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
Slide 24: Independent Board Committed to Strong Corporate Governance
Independent Board Committed to Strong Corporate Governance 24T H E W E A L T H D E V E L O P M E N T C O M P A N Y • Chris Loeffler – Chief Executive Officer & Co-Founder • Jennifer Schrader – President, Chief Operating Officer & Co-Founder • Dan Hansen – Lead Independent Director • William J. Gerbe
Slide 25: 3rd Quarter Financial Highlights
3rd Quarter Financial Highlights 25T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 26: 3rd Quarter – Summary Highlights
3rd Quarter – Summary Highlights 26T H E W E A L T H D E V E L O P M E N T C O M P A N Y • Fair value assets under management of $822.5 million • Asset management fees of $1.3 million • Managed capital of $412.4 million • Total revenues of $17.0 million • Asset management revenue of $2.4 million • A
Slide 27: 3rd Quarter Summary Results
$19,506 $17,025 $- $5,000 $10,000 $15,000 $20,000 $25,000 Q3'22 Q3'23 (0 0 0 s) Total Consolidated Revenue 3rd Quarter Summary Results 27T H E W E A L T H D E V E L O P M E N T C O M P A N Y Source: Caliber reports Net Income (Loss) (per common share) $0.22 Q3’22 $(0.16) Q3’23 $8,399 $3,728 $- $2,00
Slide 28: 3rd Quarter – Historical Summary Results
3rd Quarter – Historical Summary Results 28T H E W E A L T H D E V E L O P M E N T C O M P A N Y $24,302 $18,681 $19,506 $21,467 $29,522 $20,445 $17,025 $- $10,000 $20,000 $30,000 $40,000 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 (0 0 0 s) Total Consolidated Revenue $2,155 $(529) $5,659 $(1,766) $1,034 $(2
Slide 29: 3rd Quarter Financial Review
3rd Quarter Financial Review 29T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 30: GAAP Income Statement
GAAP Income Statement 30T H E W E A L T H D E V E L O P M E N T C O M P A N Y Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Asset management fees $ 1,273 $ 982 $ 3,784 $ 3,048 Performance allocations 36 103 2,474 2,508 Transaction and advisory fees 1,0
Slide 31: GAAP Income Statement (cont.)
GAAP Income Statement (cont.) 31T H E W E A L T H D E V E L O P M E N T C O M P A N Y CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Q3 expenses increased 32.9% YoY, primarily due to an increase in consolidat
Slide 32: NON-GAAP Income Statement
NON-GAAP Income Statement 32T H E W E A L T H D E V E L O P M E N T C O M P A N Y NON-GAAP INCOME STATEMENT (AMOUNTS IN THOUSANDS) Q3 net loss of $12.2 million, compared to $0.7 YoY, and Q3 Consolidated Adjusted EBITDA was a loss of $3.2 million, compared to income of $4.7 million YoY, due to lower
Slide 33: GAAP Balance Sheet
GAAP Balance Sheet 33T H E W E A L T H D E V E L O P M E N T C O M P A N Y September 30, 2023 December 31, 2022 Assets Cash $ 995 $ 1,921 Restricted cash 2,479 23 Real estate investments, net 21,383 2,065 Due from related parties 6,498 9,646 Investments in unconsolidated entities 3,290 3,156 Operati
Slide 34: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) 34T H E W E A L T H D E V E L O P M E N T C O M P A N Y CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) September 30, 2023 December 31, 2022 Liabilities and Stockholders’ Equity
Slide 35: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) 35T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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;
Slide 36: Appendix
Appendix 36T H E W E A L T H D E V E L O P M E N T C O M P A N Y
Slide 37: Non-GAAP Measures
37T H E W E A L T H D E V E L O P M E N T C O M P A N Y Non-GAAP Measures We present Consolidated EBITDA, Consolidated Adjusted EBITDA, and Caliber Adjusted EBITDA, which are not recognized financial measures under U.S. GAAP, as supplemental disclosures because we regularly review these measures to
Slide 38: NON-GAAP Reconciliation
NON-GAAP Reconciliation 38T H E W E A L T H D E V E L O P M E N T C O M P A N Y NON-GAAP RECONCILIATION (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,
Slide 39: NON-GAAP Reconciliation: Fund Management Segment
NON-GAAP Reconciliation 39T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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)% Transact
Slide 40: NON-GAAP Reconciliation: Development Segment
NON-GAAP Reconciliation 40T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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
Slide 41: NON-GAAP Reconciliation: Brokerage Segment
NON-GAAP Reconciliation 41T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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
Slide 42: NON-GAAP Reconciliation: Managed Capital
NON-GAAP Reconciliation 42T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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) Bala
Slide 43: NON-GAAP Reconciliation: FV AUM
NON-GAAP Reconciliation 43T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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 Bal
Slide 44: NON-GAAP Reconciliation: FV AUM
NON-GAAP Reconciliation 44T H E W E A L T H D E V E L O P M E N T C O M P A N Y 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 74,7