Slide 1: Earnings Presentation 1Q 2024
EARNINGS PRESENTATION 1Q 2024 April 30, 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: DBRG Reports First Quarter 2024 Results
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 total
Slide 4: Agenda
AGENDA 1 SECTION BUSINESS UPDATE 2 SECTION FINANCIAL RESULTS 4
Slide 5: DigitalBridge First Quarter 2024 and 2023 GAAP Results
DIGITALBRIDGE FIRST QUARTER 2024 and 2023 GAAP RESULTS CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data, unaudited) Three Months Ended March 31, 2024 2023 Revenues Fee revenue $ 72,955 $ 59,126 Carried interest allocation (reversal) (8,478) (54,756) Principal investment inco
Slide 6: Business Update
1 BUSINESS UPDATE 6
Slide 7: FEEUM Growth Driven by Organic Fundraising
FEEUM GROWTH DRIVEN BY ORGANIC FUNDRAISING Fee-Earning Equity Under Management (FEEUM) increased $4.8B, or 17% YoY, to $32.5B as of March 31, 2024, driven by organic capital formation at the DBP Series, Co-Invest, and Credit strategies, offset by 1Q24 step down as Vantage Devco transitioned from Sep
Slide 8: New Capital Formation
NEW CAPITAL ($ in Billions; cumulative) FORMATION During Q1 DigitalBridge closed +47% $1.1 Growth commitments on $1.1 billion in $0.1 new capital, up 47% over the prior year period. $0.8 $0.4 Q1 fundraising was anchored by continuing commitments to DBPIII and initial commitments to the firm’s se
Slide 9: DBRG Executing the Digital Playbook
DBRG Executing the Digital Playbook 9
Slide 10: The #1 Issue in Data Centers Today: Power Is Constrained
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 utility c
Slide 11: Finding a Solution: Data Centers and Power Gen Converge
FINDING A SOLUTION: DATA CENTERS AND POWER GEN CONVERGE Bottlenecks in grid transmission will force data center developers to get creative and be flexible, finding ways to execute on a new type of “co-location”…bringing power generation and data centers closer together 1 BUILD DATA CENTERS CLOSE TO
Slide 12: Renewables – DigitalBridge Is Advancing Across the Board
RENEWABLES – DIGITALBRIDGE IS ADVANCING ACROSS THE BOARD Two of our six data center platforms globally are already 100% renewable and we continue making significant progress across the portfolio 100% RENEWABLE ENERGY PROGRESSING TOWARDS RENEWABLES TOWARDS LOWER P.U.E. VALUES Optimizing Sustainabil
Slide 13: Why Power?…Building the AI Revolution
WHY POWER?…BUILDING THE AI REVOLUTION DIGITALBRIDGE’S GROWING DATA CENTER Solving the Power Challenge is central to meeting the growing needs of the worlds leading technology companies fueled by demand from GenAI FOOTPRINT UNDER 2+ GW CONSTRUCTION GLOBALLY Goodyear, Arizona Northern Virginia London
Slide 14: Financial Results
2 FINANCIAL RESULTS 14
Slide 15: First Quarter 2024 Highlights & KPIs
FIRST QUARTER 2024 HIGHLIGHTS & KPIs DBRG key metrics for the quarter ended March 31, 2024: Financial Fee Revenue was $72.8 million, up 21% year-over-year driven by higher FEEUM. Highlights Fee Related Earnings were $19.6 million, up 28% year-over-year. Distributable Earnings (DE) were $2.2 mi
Slide 16: Financial Results (Non-GAAP)
FINANCIAL RESULTS (NON-GAAP) 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
Slide 17: Carried Interest & Principal Investment Income
CARRIED INTEREST & PRINCIPAL INVESTMENT INCOME Carried Interest and Principal Investment Income detail provided to give investors detail on (1) realized vs unrealized (accrued) components and (2) the net carried interest attributable to DBRG shareholders Carried Interest Detail 1Q23 1Q24 Unrealized
Slide 18: Balance Sheet Profile
BALANCE SHEET PROFILE Key Corporate Assets Key Corporate Liabilities Blended Equity Investments (At Share) 3/31/2024 Avg. Cost Corporate Debt GP Affiliated Investment in DBP Series $318 Exchangeable Notes, 2025(1) $72 5.8% GP Affiliated Investments - Other & Warehoused Investments 369 Securitized No
Slide 19: Q&A Session
teat! DIGITALBRIDGE Q&A SESSION
Slide 20: Supplemental Financial Data
4 Supplemental Financial Data 20
Slide 21: Summary Financial Metrics
SUMMARY FINANCIAL METRICS 2024 2023 2022 ($ and shares in thousands, except per share data and as noted) (Unaudited) 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 GAAP Results: Fee revenue $ 72,955 $ 74,009 $ 65,240 $ 65,742 $ 59,126 $ 44,255 $ 41,263 $ 44,318 Net income (loss) attributable to common stoc
Slide 22: FEEUM, FRE and DE
FEEUM, FRE and DE ($ in millions) 3/31/24 Annual IM FEEUM Fee Rate 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 DigitalBridge Partners I (DBP I) 1.10 % $ 3,687 $ 3,571 $ 3,345 $ 3,311 $ 3,180 $ 3,165 $ 2,802 $ 3,048 DigitalBridge Partners II (DBP II) 1.18 % 6,219 6,687 7,996 7,996 7,996 7,996 7,996 7,996
Slide 23: Fund Performance
FUND PERFORMANCE Certain performance metrics for our key investment funds from inception through March 31, 2024 are presented in the table below. Excluded are funds with less than one year of performance history as of March 31, 2024, funds and separately managed accounts in the liquid strategy, co-i
Slide 24: Capitalization
CAPITALIZATION ($ in thousands, as of March 31, 2024) Securitized Notes - Class A-2 Term Notes Amount Outstanding $ 300,000 Interest Rate 3.933 % Anticipated Repayment Date (ARD) September 25, 2026 Kroll Rating BBB Revolver - Class A-1 Variable Funding Notes Maximum Available $ 300,000 Amount Outsta
Slide 25: DBRG GP Affiliated Investments
DBRG GP AFFILIATED INVESTMENTS 2024 2023 2022 ($ 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 940,8
Slide 26: Balance Sheet
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 of
Slide 27: Non-GAAP Reconciliations – DE and FRE
NON-GAAP RECONCILIATIONS – DE and FRE 2024 2023 2022 ($ in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 Net income (loss) attributable to common stockholders $ (44,288) $ 100,607 $ 261,828 $ (22,411) $ (212,473) $ (19,356) $ (63,273) $ (37,321) Net income (loss) attributable to noncontrolling
Slide 28: Appendix
5 APPENDIX 28
Slide 29: 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: Fee Related Earnings (“FRE”) and Distributable Earnings (“DE”). FRE and DE are common metrics utilized in the investment management sector.
Slide 30: Definitions
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 provides
Slide 31: DigitalBridge
DIGITALBRIDGE