Slide 1: Earnings Presentation 4Q 2023
EARNINGS PRESENTATION 4Q 2023 February 20, 2024 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
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: Important Note Regarding Non-GAAP Financial Measures
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES This presentation contains the following non-GAAP financial measures attributable to the Operating Company: Distributable Earnings (“DE”) and Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) on a Company-
Slide 4: DBRG Reports Fourth Quarter 2023 Results
DBRG REPORTS FOURTH QUARTER 2023 RESULTS Boca Raton, February 20th, 2024 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the fourth quarter ended December 31, 2023. The Company reported fourth quarter 2
Slide 5: Fourth Quarter 2023 and 2022 GAAP Results
DIGITALBRIDGE FOURTH QUARTER 2023 and 2022 GAAP RESULTS CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data, unaudited) 5
Slide 6: Agenda
AGENDA 1 SECTION BUSINESS UPDATE 2 SECTION FINANCIAL RESULTS 3 SECTION EXECUTING THE DIGITAL PLAYBOOK 6
Slide 7: Business Update
DIGITALBRIDGE ball TE | >| BUSINESS UPDATE 1
Slide 8: 2023 – Delivery Across The Things That Matter
2023 – DELIVERY ACROSS ‘THE 3 THINGS THAT MATTER’ DigitalBridge completed its multi-year transition to a simple, profitable, and fast-growing alternative asset manager dedicated to digital infrastructure while delivering persistent growth in fundraising and financial performance FUNDRAISE SIMPLIFY P
Slide 9: Fundraising and InfraBridge Drove Strong Growth
FUNDRAISING AND INFRABRIDGE DROVE STRONG GROWTH Fee-Earning Equity Under Management (FEEUM) increased $10.6B, or 47% YoY, to $32.8B as of December 31, 2023, powered by organic capital formation and contribution from the InfraBridge acquisition. FEEUM AUM ($ in Billions) ($ in Billions) +52% $80.1 FE
Slide 10: New Capital Formation
NEW CAPITAL ($ in Billions; cumulative) 2023 Guidance Range $9.5 FORMATION +60% $7.7 Despite a historically challenging Growth fundraising environment, DigitalBridge $6.9B Thru $0.9 12/31 has raised over $7.7B in new fee- $6.5 earning equity since January 2023(1) $2.3B raised since last earnings
Slide 11: Simplify – Successful Operating Segment Deconsolidation
SIMPLIFY – SUCCESSFUL OPERATING SEGMENT DECONSOLIDATION DigitalBridge completed the deconsolidation of its Operating segment in 2023, harvesting over $400M in profits for DBRG shareholders in the process, while significantly de-levering its balance sheet by over $5 billion(1). SIGNIFICANT VALUE CREA
Slide 12: Simplify – Deconsolidating the Balance Sheet
SIMPLIFY – DECONSOLIDATING THE BALANCE SHEET The successful deconsolidation of our Operating segment in 4Q23 resulted in a substantial simplification of our balance sheet, including a significant reduction in our consolidated debt. ($ in Millions) Consolidated Balance Sheet Key Takeaways Assets 12/3
Slide 13: Portfolio Performance
PORTFOLIO PERFORMANCE Powerful secular tailwinds, driving demand for compute and connectivity, continue to underpin positive performance across our diversified global portfolio. Ultimately portfolio performance drives returns. DATA CENTER TOWER FIBER SMALL PORTFOLIO PORTFOLIO PORTFOLIO CELLS/EDGE 24
Slide 14: Financial Results
2 FINANCIAL RESULTS 14
Slide 15: Fourth Quarter 2023 Highlights – Key Metrics
DIGITALBRIDGE’S FOURTH QUARTER 2023 HIGHLIGHTS – KEY METRICS Fee Revenue – IM Segment IM FRE Distributable Earnings $72.2M $39.8M $17.9M 59% 64% $45.3M $24.2M 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 -$22.3M FEEUM AUM Run-Rate Fee Revenue $32.8B $80.1B $311M 47% 52% 24% $250M $22.2B $52.8B 4Q22 4Q23 4Q22 4Q23
Slide 16: Fourth Quarter 2023 Highlights & KPIs
FOURTH QUARTER 2023 HIGHLIGHTS & KPIs At share, DBRG shareholder metrics for the quarter ended December 31, 2023: Fee Revenue in the investment management segment was $72.2 million, up 59% year-over-year. Financial Fee Related Earnings in the investment management segment (IM FRE) were $39.8 mil
Slide 17: Consolidated Results (Non-GAAP)
CONSOLIDATED RESULTS (NON-GAAP) Growth in the Investment Management business, notably Fee Revenue, continued to drive profitability, with Adjusted EBITDA and Distributable Earnings both up substantially YoY for the fourth quarter and full year 2023. TOTAL COMPANY 4Q22 4Q23 % Change YOY FY 2022 FY 20
Slide 18: Investment Management Results (Non-GAAP)
INVESTMENT MANAGEMENT RESULTS (NON-GAAP) During 4Q23, Fee Revenue increased 59% YoY driven by increased FEEUM from new commitments to the latest DBP series and the InfraBridge acquisition. FRE and segment-level distributable earnings increased 64% and 31%. INVESTMENT MANAGEMENT 4Q22 4Q23 % Change YO
Slide 19: Investment Management Segment Detail (Non-GAAP)
INVESTMENT MANAGEMENT SEGMENT DETAIL (NON-GAAP) DBRG accrued Net Carried Interest of $58 million in 4Q23, driven principally by uplift in the value of several of its data center platforms, including DataBank and Switch. Other IM Expenses declined YoY. % Change Carried Interest Detail 4Q22 4Q23 YoY U
Slide 20: Investment Management Growth
INVESTMENT MANAGEMENT GROWTH 4Q Annualized Fee Revenue increased 60% YoY driven by activation of FEEUM associated with the first closing of the latest DBP Series strategy in November 2023. $311M $289M DBRG SHARE $266M $264M EXCLUDES 31.5% MINORITY INTEREST FOR PERIODS PRIOR TO MAY 2022 CONVERSION $2
Slide 21: Balance Sheet Profile – Now Simple to Evaluate
BALANCE SHEET PROFILE – NOW SIMPLE TO EVALUATE Primary assets are equity investments where we deploy capital alongside our LPs in commingled and single asset investment vehicles. DigitalBridge maintains strong liquidity and has significantly de-levered its balance sheet. Key Corporate Assets Key Cor
Slide 22: Guidance - Aligning With Our Alt Mgmt Peers
GUIDANCE - ALIGNING WITH OUR ALT MGMT PEERS With the transition completed, DigitalBridge is aligning guidance practices with its alternative asset manager peer set, focusing principally on growth and profitability over a 3-5 year cycle. This updated approach will be outlined at Investor Day in May 2
Slide 23: Executing the Digital Playbook – 2024 What Matters?
3 EXECUTING THE DIGITAL PLAYBOOK 2024 WHAT MATTERS? 23
Slide 24: Scaling Our Platform – DigitalBridge 2024 Business Plan
SCALING OUR DIGITALBRIDGE 2024 BUSINESS PLAN 2024: PLATFORM 1 FUNDRAISE 2 INVEST - PORTFOLIO 3 SCALE - DBRG With our transformation Investment Solutions $15B total capex; mission- Drive operating leverage complete, the 2024 tailored to our LPs needs critical, AI-levered at corporate with human
Slide 25: Fundraising – New Capital Formation Remains a Key Driver
FUNDRAISING – NEW CAPITAL FORMATION REMAINS A KEY DRIVER To meet the growing demand for AI-led investment in digital infrastructure, DigitalBridge expects to form $7 billion in new fee-bearing capital during 2024 (inclusive of $0.8B YTD) across its multi-strategy platform. 2024 Target Capital Format
Slide 26: AI Expected to Take a Decade to Build
AI EXPECTED TO TAKE A AI: POTENTIAL 50GW+ IN NEXT 5-10 YRS DECADE TO BUILD 2024 Expected To Be Record Year For Data Center Leasing From Key Logos TOTAL GLOBAL DC MARKET Microsoft CEO Nvidia CEO, Jensen Amazon just signed a Driven by AI ~100GW (2) next 6-10 years Satya Nadella, "There's this Huang, “
Slide 27: Building the AI Revolution – Data Centers Dominate Capex
BUILDING THE AI REVOLUTION – DATA CENTERS DOMINATE CAPEX With $11 billion of the $15 billion in budgeted portfolio-level capex in 2024 focused on data center investment, we are leading mission-critical capex. North America and Europe are the most active markets today, but Rest-of-World is accelerati
Slide 28: Scaling DigitalBridge to Profitability: Focus on Operating Leverage
SCALING The success of the turnaround we have executed over the past four years and our continued investment in human capital and technology position DIGITALBRIDGE DigitalBridge to continue scaling our leading investment platform TO PROFITABILITY: $360M FOCUS ON $264M $335M OPERATING $173M $165M LEV
Slide 29: Scale DBRG - Corporate Capital Allocation Priorities
SCALE DBRG - CORPORATE CAPITAL ALLOCATION PRIORITIES As DBRG executes on a near/medium term focus on strategic M&A and capital structure optimization, we expect additional free cash flow will become available to invest and compound capital alongside LPs in our fund vehicles CAPITAL ALLOCATION FRAMEW
Slide 30: 2024 CEO Priorities: Things That Matter
2024 CEO PRIORITIES: 3 THINGS THAT MATTER CEO 2024 Checklist AI-POWERED FUNDRAISE $7 billion in new fee-paying capital during 2024 SECULAR TAILWINDS Educate LPs and capitalize on early stages of AI-powered demand DIGITAL INFRASTRUCTURE INVEST - PORTFOLIO Deploy $15 billion in total capex SPECI
Slide 31: Q&A Session
teat! DIGITALBRIDGE Q&A SESSION
Slide 32: Appendix
5 APPENDIX 32
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 Net income (loss) attributable to common stockholders $ 100,607 $ 261,828 $ (22,411) $ (212,473) $ (19,356) $ (63,273) $ (37,321) $ (262,316) Net income (loss) attributable to noncontrolling common interests in Operati
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands) 4 Q2 3 3 Q2 3 2 Q2 3 1 Q2 3 4 Q2 2 3 Q2 2 2 Q2 2 1 Q2 2 IM net incom e (loss) $ 7 2 ,9 7 5 $ 1 0 0 ,0 1 4 $ 3 5 ,1 7 7 $ (2 ,8 0 4 ) $ 8 1 ,1 6 7 $ 4 6 ,0 6 5 $ 6 7 ,9 9 5 $ (9 ,1 4 3 ) Adjustments: Interest expense (income) 2,027 2,128 2,268 2,411 2,200 2,9
Slide 35: Definitions
DEFINITIONS Assets Under Management (“AUM”) AUM represents the total capital for which we provide investment management services. AUM is generally composed of (a) third party capital managed by the Company and its affiliates, including capital that is not yet fee earning, or not subject to fees and/
Slide 36: DigitalBridge
DIGITALBRIDGE