Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Q3 2024 Earnings Presentation
36 slides from Digitalbridge's earnings presentation, Nov 1, 2024
Slide 1: Earnings Presentation 3Q 2024
1 EARNINGS PRESENTATION 3Q 2024 November 1, 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 Third Quarter 2024 Results
3 DBRG REPORTS THIRD QUARTER 2024 RESULTS Boca Raton, November 1th, 2024 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter 20
Slide 4: GAAP Financial Results
4 Net loss attributable to common stockholders was $0.9 million in Q3 2024, and $0.01 per share (basic and diluted) GAAP FINANCIAL RESULTS (In thousands, except per share data, unaudited) 3Q23 3Q24 Revenues Fee revenue $ 65,240 $ 76,582 Carried interest allocation (reversal) 168,891 (15,799) Princip
Slide 5: Agenda
5 AGENDA BUSINESS UPDATESE CT IO N 1 FINANCIAL RESULTSSE CT IO N 2
Slide 6: DigitalBridge Business Update
eet ert DIGITALBRIDGE BUSINESS UPDATE 1
Slide 7: Business Update: Key Updates
7 BUSINESS UPDATE (1) Inclusive of all fee-earning capital committed to DigitalBridge managed investment vehicles in 2024 YTD, measured as of October 31, 2024. (2) Closing of transactions remains subject to satisfaction of customary conditions precedent, and there can be no assurance that these inve
Slide 8: 4Q Fundraising Drivers; On Track for $7 Billion Target
8 4Q FUNDRAISING DRIVERS Co-Invest, $1.5B+, prioritizing capital to fuel data center platform expansions DataBank - Aus Super Private wealth channel – additional data center sidecar commitments DBP Series, $0.4B+, continuing commitments to flagship strategy Core, Credit, Liquid, $0.2B+, Di
Slide 9: Accelerating Capital Formation
9 1Q24 YTD 2Q24 YTD 3Q24 YTD 4Q24E $1.1B $2.3B $4.2B ACCELERATING CAPITAL FORMATION • As private markets thaw, noticeable uptick in fundraising pipeline and deal activity as we finalize 2024 and look forward to 2025. • 4Q fundraising expected to reach $3.0 billion, with $1.9 billion already committe
Slide 10: Global Platform with Expanding Investor Base
10 GLOBAL PLATFORM WITH EXPANDING INVESTOR BASE Strong participation from existing LPs signals, with new LPs representing growing %, expect 40% by fund close Diversified global LP base, with strong participation from traditional North American and growing APAC geos, Europe starting to pickup and MEN
Slide 11: Continued Investment Activity Across AI Infrastructure Ecosystem
11 Note: Closing of transactions remains subject to satisfaction of customary conditions precedent, and there can be no assurance that the transactions described above will be completed in the timeframe anticipated or at all. Acquisitions of Verizon towers, Yondr and Jtower to be made through Digita
Slide 12: Financial Update
12 2 FINANCIAL UPDATE
Slide 13: Third Quarter 2024 Highlights & KPIs
13 THIRD QUARTER 2024 HIGHLIGHTS & KPIs Financial Highlights DBRG key metrics for the quarter ended September 30, 2024: Fee Revenue of $76.7 million, up 16% year-over-year, driven by higher FEEUM. Fee Related Earnings of $26.2 million, up 42% year-over-year as FRE margin expanded from 28% to 34%
Slide 14: Financial Targets – Revised Year End Guidance Range
14 FINANCIAL TARGETS – REVISED YEAR END GUIDANCE RANGE Fee revenue and FRE growth figures for 2024 are compelling, however, the composition and timing of capital formation is expected to result in lower ‘in-period’ FRE for 2024, driven by lower catch-up fees and delayed activation of fee revenues. F
Slide 15: FEEUM Growth Driven by Organic Fundraising
15 $1.3 $1.9 $0.6 $0.8 $0.5 $1.6 FEEUM GROWTH DRIVEN BY ORGANIC FUNDRAISING Fee-Earning Equity Under Management (FEEUM) increased $4.2B, or 14% YoY, to $34.1B as of September 30, 2024, driven by organic capital formation at the DBP Series, Co-Invest, and Credit strategies. During the third quarter,
Slide 16: Fee Related Earnings and Distributable Earnings
16 ($ in millions) 3Q23 3Q24 % Change YOY 3Q23 LTM 3Q24 LTM % Change YOY Fee Revenue $66.1 $76.7 +16 % $238.0 $302.5 +27 % Cash Compensation ($34.3) ($33.8) (2)% ($119.0) ($137.5) +16 % Administrative and Other Expenses ($13.4) ($16.7) +25 % ($55.9) ($66.9) +20 % Fee Related Earnings ("FRE")(1)(2) $
Slide 17: Carried Interest and Principal Investment Income
17 Carried Interest ($ in millions) 3Q23 3Q24 % Change YOY 3Q23 LTM 3Q24 LTM % Change YOY Unrealized Carried Interest Allocation (Reversal) $141.0 ($15.8) n/a $312.9 $433.6 39 % Realized Carried Interest Allocation 27.9 — n/a 57.4 0.1 (100) % Carried Interest – Revenue (as reported on GAAP Income St
Slide 18: DBRG Financial Profile & FEEUM Progression
18 $326M Run Rate Fee Revenue DBRG FINANCIAL PROFILE & FEEUM PROGRESSION Fee revenue and FRE growth continue migration higher, driven by new FEEUM growth on back of new capital formation and FEEUM activation. LTM Fee Revenue LTM FRE ($ in Billions) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Beginning Period
Slide 19: Balance Sheet Profile
19 BALANCE SHEET PROFILE Key Corporate Assets Key Corporate Liabilities ($ in millions) 9/30/2024 GP Affiliated Investments(1) DBP Series $340 DataBank and Vantage SDC 675 Other Funds & Warehoused Investments 362 (Credit, Core, InfraBridge, Liquid, Ventures) Total GP Affiliated Investments(1) $1,377
Slide 20: DBRG 3Q 2024: CEO Takeaways
20 DBRG 3Q 2024: CEO TAKEAWAYS Notable progress on fundraising and continuing to deliver strong revenue and earnings growth. DBRG remains principally focused on our long-term roadmap…scaling our leading digital infrastructure investment platform Note: DBRG priorities are subject to change. There is
Slide 21: Q&A Session
wll DIGITALBRIDGE Q&A SESSION
Slide 22: Supplemental Financial Data
22 4 SUPPLEMENTAL FINANCIAL DATA
Slide 23: Summary Financial Metrics
23 SUMMARY FINANCIAL METRICS 2024 2023 2022 ($ and shares in thousands, except per share data and as noted) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 GAAP Results Fee revenue $ 76,582 $ 78,605 $ 72,955 $ 74,009 $ 65,240 $ 65,742 $ 59,126 $ 44,255 Net income (loss) attributable to common stockholders (
Slide 24: FEEUM, Fee Related Earnings & Distributable Earnings
24 FEEUM, FEE RELATED EARNINGS & DISTRIBUTABLE EARNINGS 2024 2023 2022 ($ in millions) 9/30/24 Fee Rate 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 DigitalBridge Partners I (DBP I) 1.10% $ 3,650 $ 3,677 $ 3,687 $ 3,571 $ 3,345 $ 3,311 $ 3,180 $ 3,165 DigitalBridge Partners II (DBP II) 1.18% 6,568 6,269
Slide 25: Key Investment Fund Performance Metrics
25 Certain performance metrics for our key investment funds from inception through September 30, 2024 are presented in the table below. Excluded are funds with less than one year of performance history as of September 30, 2024, funds and separately managed accounts in the liquid strategy, co-investm
Slide 26: Corporate Debt and Preferred Stock
26 ($ and shares in thousands, as of September 30, 2024) Securitized Notes - Class A-2 Term Notes Amount Outstanding $ 300,000 Interest Rate (Per Annum) 3.933 % Anticipated Repayment Date September 25, 2026 Kroll Rating BBB Revolver - Class A-1 Variable Funding Notes Maximum Available $ 300,000 Amou
Slide 27: GP Affiliated Investments
27 ($ in thousands) 2024 2023 2022 Consolidated 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 GP Affiliated Investments DBP Series $ 470,937 $ 452,604 $ 446,954 $ 446,423 $ 442,991 $ 427,188 $ 395,534 $ 392,322 DataBank and Vantage SDC(1)(2) 679,335 674,900 940,854 931,004 434,666 204 206 208 Other Funds
Slide 28: Condensed Consolidated Balance Sheet
28 ($ in thousands) December 31, 2023 September 30, 2024 (Unaudited) Assets Cash and cash equivalents $ 345,335 $ 294,416 Restricted cash 4,915 4,060 Investments(1) 2,476,093 2,540,029 Goodwill 465,991 465,602 Intangible assets 103,750 81,747 Other assets 78,953 62,912 Due from affiliates 85,815 93,
Slide 29: Distributable Earnings & Fee Related Earnings
29 DISTRIBUTABLE EARNINGS & FEE RELATED EARNINGS 2024 2023 2022 ($ in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 Net income (loss) attributable to common stockholders $ (883) $ 76,763 $ (44,288) $ 100,607 $ 261,828 $ (22,411) $ (212,473) $ (19,356) Net income (loss) attributable to noncontro
Slide 30: Fee Revenue and Expense Reconciliation
30 2024 2023 2022 ($ in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 Fee Revenue GAAP Fee Revenue $ 76,582 $ 78,605 $ 72,955 $ 74,009 $ 65,240 $ 65,742 $ 59,126 $ 44,255 Consolidated Funds(1) 82 84 471 385 818 856 972 1,017 Incentive Fees(2) — (1) (635) — — — — — FRE Fee Revenue $ 76,664 $ 78,
Slide 31: FRE and DE Share Count
31 2024 2023 2022 (shares in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 FRE and DE Share Count GAAP Weighted Average Basic Shares Outstanding 171,542 170,358 161,043 160,664 160,564 158,089 158,446 158,837 Weighted Average OP Units 12,200 12,291 12,338 12,376 12,376 12,543 12,629 12,629 Weig
Slide 32: Appendix
32 6 APPENDIX
Slide 33: Important Note Regarding Non-GAAP Financial Measures
33 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 34: Important Note Regarding Non-GAAP Financial Measures (Continued)
34 IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES (CONTINUED) 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 distribution
Slide 35: Definitions
35 DEFINITIONS Assets Under Management (“AUM”) AUM represents the total capital for which we provide investment management services and general partner capital. AUM is generally composed of third party capital managed by the Company and its affiliates, including capital that is not yet fee earning,
Slide 36: DigitalBridge
DIGITALBRIDGE