Slide 1: Earnings Presentation 1Q 2024
1 EARNINGS PRESENTATION 1Q 2024 April 30, 2024
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 and (iii
Slide 3: DBRG Reports First Quarter 2024 Results
3 DBRG REPORTS FIRST QUARTER 2024 RESULTS Boca Raton, April 30th, 2024 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the first quarter ended March 31, 2024. The Company reported first quarter 2024 tot
Slide 4: Agenda
4 AGENDA BUSINESS UPDATESE CT IO N 1 FINANCIAL RESULTSSE CT IO N 2
Slide 5: First Quarter 2024 and 2023 GAAP Results
5 DIGITALBRIDGE FIRST QUARTER 2024 and 2023 GAAP RESULTS CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data, unaudited) 2024 2023 Revenues Fee revenue $ 72,955 $ 59,126 Carried interest allocation (reversal) (8,478) (54,756) Principal investment income 2,845 3,562 Other income
Slide 6: Business Update
1 BUSINESS UPDATE ate 21s we te: 216 218 oettl aed DIGITALBRIDGE
Slide 7: FEEUM Growth Driven by Organic Fundraising
7 $29.1 $35.3 $35.9 $19.4 $21.6 $22.9 $7.7 $9.2 $7.2 $3.0 $4.0 $4.1 $1.7 $1.1 $1.1 $69.3 $80.1 $80.1 $8.4 $8.9 $8.9 1Q23 4Q23 1Q24 $11.2 $12.9 $13.1 $7.0 $9.6 $9.9 $2.2 $2.4 $1.5 $2.2 $2.7 $2.9 $27.7 $32.8 $32.5 $5.1 $5.1 $5.1 1Q23 4Q23 1Q24 FEEUM GROWTH DRIVEN BY ORGANIC FUNDRAISING Fee-Earning Equ
Slide 8: New Capital Formation
8 NEW CAPITAL FORMATION During Q1 DigitalBridge closed commitments on $1.1 billion in new capital, up 47% over the prior year period. Q1 fundraising was anchored by continuing commitments to DBPIII and initial commitments to the firm’s second credit strategy DigitalBridge remains on track to meet or
Slide 9: DBRG Executing the Digital Playbook
9 DBRG Executing the Digital Playbook
Slide 10: The #1 Issue in Data Centers Today: Power Is Constrained
10 THE #1 ISSUE IN DATA CENTERS TODAY: POWER IS CONSTRAINED Power generation capacity exists today…just not in the right places. Transmission grids globally remain capacity challenged. Near net transmission capacity is the key friction point, especially as renewables become a top priority for utilit
Slide 11: Finding a Solution: Data Centers and Power Gen Converge
11 FINDING A SOLUTION: DATA CENTERS AND POWER GEN CONVERGE AI TRAINING WORKLOAD IS LESS LATENCY- SENSITIVE AI INFERENCE IS LATENCY- SENSITIVE BUILD POWER CLOSE TO THE DATA CENTER BUILD DATA CENTER CLOSE TO POWER BUILD DATA CENTERS CLOSE TO POWER BUILD POWER CLOSE TO THE DCs Hydro, Montreal – Vantage
Slide 12: Renewables – DigitalBridge Is Advancing Across the Board
12 RENEWABLES – DIGITALBRIDGE IS ADVANCING ACROSS THE BOARD NET ZERO GOAL- 2030 Two of our six data center platforms globally are already 100% renewable and we continue making significant progress across the portfolio 100% RENEWABLE ENERGY today 100% since 2016 Using 100% certified renewable Clean e
Slide 13: Why Power?…Building the AI Revolution
13 WHY POWER?…BUILDING THE AI REVOLUTION Note: There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Readers should refer to the discussion in the Cautionary Statement Regarding Forward-Looking Statements section at the beginning of this presen
Slide 14: Financial Results
14 2 FINANCIAL RESULTS
Slide 15: First Quarter 2024 Highlights & KPIs
15 FIRST QUARTER 2024 HIGHLIGHTS & KPIs Financial Highlights DBRG key metrics for the quarter ended March 31, 2024: Fee Revenue was $72.8 million, up 21% year-over-year driven by higher FEEUM. Fee Related Earnings were $19.6 million, up 28% year-over-year. Distributable Earnings (DE) were $2.2 milli
Slide 16: Financial Results (Non-GAAP)
16 Reformatted financial statement aligns with alternative asset management peers, with simple walkdown to FRE and DE. DBRG will utilize this simplified reporting framework on a go-forward basis. Beginning in 2024, FRE is reported on a Company-wide basis, which now includes corporate costs and is di
Slide 17: Carried Interest & Principal Investment Income
17 Carried Interest Detail 1Q23 1Q24 Unrealized Carried Interest – Income ($55.2) ($8.5) Realized Carried Interest – Income 0.5 - Carried Interest – Income (as reported on GAAP Income Statement) ($54.8) ($8.5) Unrealized Carried Interest – Compensation Expense $37.0 $7.4 Realized Carried Interest –
Slide 18: Balance Sheet Profile
18 Equity Investments (At Share) GP Affiliated Investment in DBP Series $318 GP Affiliated Investments - Other & Warehoused Investments (Credit, Core, InfraBridge, Liquid, Ventures) 369 GP Affiliated Investment in DataBank and Vantage SDC 678 Equity Investments Total (At Share) $1,365 Corporate Cash
Slide 19: Q&A Session
cant till DIGITALBRIDGE Q&A SESSION
Slide 20: Supplemental Financial Data
20 4 Supplemental Financial Data
Slide 21: Summary Financial Metrics
21 SUMMARY FINANCIAL METRICS 1) In August 2022, the Company effectuated a 1-for-4 reverse stock split of its shares of class A and B common stock. All prior period common share and per share information is presented after giving effect to the reverse stock split. 2) FRE fee revenue represents recurr
Slide 22: FEEUM, FRE and DE
22 FEEUM, FRE and DE (1) Annual weighted average IM Fee Rate would be 1.19% excluding rate reductions in effect the twelve months following the first closing date. (2) Beginning in 2024, FRE is reported on a Company-wide basis, consistent with the entirety of the Company’s business representing a si
Slide 23: Fund Performance
23 FUND PERFORMANCE (1) Performance metrics are presented in aggregate for main fund vehicle, its parallel vehicles and alternative investment vehicles. (2) Inception date represents first close date of the fund, except for Credit I which is the first capital call date. The manager/general partners
Slide 24: Capitalization
24 CAPITALIZATION (1) 1 month term SOFR is adjusted to include 0.11448% as defined in the Amendment No.1 to Class A-1 Note Purchase Agreement. (2) Anticipated Repayment Date is September 25, 2026 including two 1-year extension options subject to 1) either rating agency confirmation and consent of VF
Slide 25: DBRG GP Affiliated Investments
25 DBRG GP AFFILIATED INVESTMENTS 2024 ($ in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 Consolidated amount GP affiliated investment in DBP Series $ 446,954 $ 446,423 $ 442,991 $ 427,188 $ 395,534 $ 392,322 $ 305,621 $ 319,824 GP affiliated investment in DataBank and Vantage SDC 940,854 931,
Slide 26: Balance Sheet
26 BALANCE SHEET March 31, 2024 (Unaudited) December 31, 2023 Assets Cash and cash equivalents $ 247,354 $ 345,335 Restricted cash 4,787 4,915 Investments 2,488,826 2,476,093 Goodwill 465,602 465,991 Intangible assets 95,131 103,750 Other assets 73,871 78,953 Due from affiliates 87,666 85,815 Assets
Slide 27: Non-GAAP Reconciliations – DE and FRE
27 NON-GAAP RECONCILIATIONS – DE and FRE (1) Costs associated with strategic corporate actions are related primarily to severance, legal costs and other post-acquisition charges. These costs are excluded from DE as they are related to discrete items, are not considered part of our ongoing operating
Slide 28: Appendix
28 5 APPENDIX
Slide 29: Important Note Regarding Non-GAAP Financial Measures
29 IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES This presentation contains the following non-GAAP financial measures attributable to the Operating Company: Fee Related Earnings (“FRE”) and Distributable Earnings (“DE”). FRE and DE are common metrics utilized in the investment management sect
Slide 30: Definitions
30 DEFINITIONS Distributable Earnings (“DE”): DE generally represents the net realized earnings of the Company and is an indicative measure used by the Company to assess ongoing operating performance and in making decisions related to distributions and reinvestments. Accordingly, we believe DE provi
Slide 31: DigitalBridge
DIGITALBRIDGE