Calibercos Inc. · NASDAQ:CWD
Calibercos — Sidoti Micro Cap Conference January 2024
42 slides from Calibercos's conference presentation, Jan 17, 2024
Slide 1: Sidoti Micro Cap Conference January 2024
Sidoti Micro Cap Conference January 2024 NASDAQ: CWD
Slide 2: 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 3: Introducing Caliber (Nasdaq: CWD)
3 • 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 4: We Invest in Diverse Real Estate Asset Classes in the Middle Market
4 BEHAVIORAL HEALTH HOSPITAL HOSPITALITY/HOTEL MULTI-FAMILY HOUSING OPPORTUNITY ZONE ASSETS We Invest in Diverse Real Estate Asset Classes in the Middle Market
Slide 5: The Best Opportunities are in the Middle-Market
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 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 6: Caliber Serves a Large and Growing Market for Alternative Investments
Caliber Serves a Large and Growing Market for Alternative Investments 6T 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 et s U n d er M an ag em en t ( $ tr ill io n ) 4.1 4.6 5.6 6.6 6.9 7.4 7.8 8
Slide 7: Majority of Investors Want Greater Access to Alternatives
Majority of Investors Want Greater Access to Alternatives 7T 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 Incr
Slide 8: Wealth Managers are Seeking Alternatives
8T 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% 1
Slide 9: Our Products Solve Customer Needs
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 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 Calibe
Slide 10: Caliber Has Multiple Fundraising Channels
Caliber Has Multiple Fundraising Channels 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 High Net-Worth Investors Registered Investment Advisors & Independent Broker-Dealers Family Offices Boutique Institutions Caliber Private Client Sales Caliber Wholesale Caliber Institutional
Slide 11: Caliber is Designed to Deliver Sustained Growth
Caliber is Designed to Deliver Sustained Growth 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 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 12: We Have Multiple Revenue Streams
Performance Fees Asset Management Fees We Have Multiple Revenue Streams 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 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 13: 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 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 Caliber’s Vertical Integration: Increased Control & Multiple Revenue Streams Traditional Asset Managers: Lower Control &
Slide 14: Revenue Growth Driven by Annual Recurring Fees
Revenue Growth Driven by Annual Recurring Fees 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 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 15: Caliber Hospitality Trust – Asset Management Fee Growth
Caliber Hospitality Trust – Asset Management Fee 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 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 16: AM Revenue Driven by Fundraising Success
AM Revenue Driven by Fundraising Success 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 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 17: Caliber BD/RIA Expansion – Recent Announcement
Caliber BD/RIA Expansion – Recent Announcement 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 • 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 18: Revenue Growth Focused on Asset Management Fees
Revenue Growth Focused on Asset Management Fees *During the year ended December 31, 2022 other revenue includes $2.3 million of performance allocation revenue related to the sale of GC Square Apartments multi-family property and $13.3 million of transaction and advisory fee revenue, which primarily
Slide 19: Caliber Leadership Innovates Over the Past Years
Caliber Leadership Innovates Over the Past 15 Years 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 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 20: Leading in Distressed Assets, Fundraising & Opportunity Zones
Leading in Distressed Assets, Fundraising & Opportunity Zones 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 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 Develo
Slide 21: Independent Board Committed to Strong Corporate Governance
Independent Board Committed to Strong Corporate Governance 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 • Chris Loeffler – Chief Executive Officer & Co-Founder • Jennifer Schrader – President, Chief Operating Officer & Co-Founder • Dan Hansen – Lead Independent Director • William J. Gerbe
Slide 22: Scaling Topline Growth (Fiscal 2022)
$56,033 $83,956 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2021 2022 (0 0 0 s) 50% YoY Consolidated Revenue Growth Scaling Topline Growth (Fiscal 2022) 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 Source: Caliber reports $3,642 $5,519 $- $1,000 $2,
Slide 23: 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 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 Source: Caliber reports Net Income (Loss) (per common share) $0.22 Q3’22 $(0.16) Q3’23 $8,399 $3,728 $- $2,00
Slide 24: Path Forward for Enterprise Value Growth
Path Forward for Enterprise Value Growth 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 Fundraising Product Innovation Acquisitions
Slide 25: 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 26: CaliberCos Contacts
https://www.caliberco.com/ CaliberCos NASDAQ: CWD Contacts: Chris Loeffler, CEO Chris.Loeffler@CaliberCo.com Lisa Fortuna, Investor Relations, Financial Profiles lfortuna@finprofiles.com
Slide 27: Appendix
Appendix 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
Slide 28: 3rd Quarter – Summary Highlights
3rd Quarter – Summary Highlights 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 • 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 29: GAAP Income Statement
GAAP Income Statement 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 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 30: GAAP Income Statement (cont.)
GAAP Income Statement (cont.) 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 CALIBERCOS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Consolidated funds - gain on sale of real estate investments — — — 21,530 O
Slide 31: GAAP Balance Sheet
GAAP Balance Sheet 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 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 32: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) 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 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 33: GAAP Balance Sheet (cont.)
GAAP Balance Sheet (cont.) 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 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 34: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 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 NON-GAAP INCOME STATEMENT (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
Slide 35: NON-GAAP Reconciliation: Fund Management Segment
NON-GAAP Reconciliation 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 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 36: NON-GAAP Reconciliation: Development Segment
NON-GAAP Reconciliation 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 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 37: NON-GAAP Reconciliation: Brokerage Segment
NON-GAAP Reconciliation 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 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 38: NON-GAAP Reconciliation: Managed Capital
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 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 39: NON-GAAP Reconciliation: FV AUM
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 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 40: NON-GAAP Reconciliation: FV AUM
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 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
Slide 41: Asset Management Revenue Run Rate and Assets Under Development definitions
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 that are underway or are in the pla
Slide 42: Fair Value Assets Under Management definition
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 these assets quarterly to help ma
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