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
EARNINGS PRESENTATION 3Q 2024 November 1, 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 Third Quarter 2024 Results
DBRG REPORTS THIRD QUARTER 2024 RESULTS “ Boca Raton, November 1th, 2024 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, DigitalBridge continued to deliver peer- “DigitalBridge,” or the “Company”) today announced financial results for the third quarter ended September leadin
Slide 4: GAAP Financial Results
GAAP FINANCIAL RESULTS Net loss attributable to common stockholders was $0.9 million in Q3 2024, and $0.01 per share (basic and diluted) (In thousands, except per share data, unaudited) 3Q23 3Q24 Revenues Fee revenue $ 65,240 $ 76,582 Carried interest allocation (reversal) 168,891 (15,799) Principal
Slide 5: Agenda
AGENDA 1 SECTION BUSINESS UPDATE 2 SECTION FINANCIAL RESULTS 5
Slide 6: Business Update
feat etl DIGITALBRIDGE 1 BUSINESS s# = UPDATE
Slide 7: Business Update: Key Updates
BUSINESS UPDATE Strong management fee and FRE growth and accelerating capital formation offset timing on FRE activation. Continued active deployment across AI infrastructure ecosystem with investments in data center and tower verticals. KEY UPDATES $$ $ Financial Metrics Continue on Set to Exceed Ou
Slide 8: DBRG Is Set to Meet Our $7 Billion Capital Formation Target
DBRG IS SET TO MEET OUR $7 BILLION CAPITAL FORMATION TARGET Through October 31st, DigitalBridge has raised $6.1 billion in FEEUM on a YTD basis, 13% ahead of the prior year over the same period and is on pace to meet its $7 billion target with end-of-year commitments still to be finalized. $7B $6.9B
Slide 9: Accelerating Capital Formation Building into a Strong Finish for 2024
ACCELERATING BUILDING INTO A STRONG FINISH FOR 2024 CAPITAL FORMATION ($ in Billions, represents cumulative fundraising) • As private markets thaw, ~$3.0B $7.0B+ noticeable uptick in fundraising High confidence $7.0B pipeline and deal activity as we Target $6.1B YTD* finalize 2024 and look forward t
Slide 10: Global Platform with Expanding Investor Base
GLOBAL PLATFORM WITH EXPANDING INVESTOR BASE Global, multi-strategy capital formation taps an investor pipeline of over 400 engaged LPs. We continue to dedicate additional resources to the private wealth opportunity, where we expect to raise $1B+ in 2024. ~$3B in 4Q24 Expected Capital Formation - $1
Slide 11: Continued Investment Activity Across AI Infrastructure Ecosystem
SEPTEMBER 30* OCTOBER 15* CONTINUED INVESTMENT ACTIVITY ACROSS AI $2.0B INFRASTRUCTURE $3.3B Transaction Value Equity Raise ECOSYSTEM VB to operate and manage 6,339 towers Led by $1.5 Billion investment from AustralianSuper TOWER S EDGE DATA CENTERS DigitalBridge continues to reinforce its position
Slide 12: Financial Update
teat iu | DIGITALBRIDGE FINANCIAL UPDATE
Slide 13: Third Quarter 2024 Highlights & KPIs
THIRD QUARTER 2024 HIGHLIGHTS & KPIs DBRG key metrics for the quarter ended September 30, 2024: Financial ▪ Fee Revenue of $76.7 million, up 16% year-over-year, driven by higher FEEUM. Highlights ▪ 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
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. 2024
Slide 15: FEEUM Growth Driven by Organic Fundraising
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, DBRG closed new capital commitmen
Slide 16: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS Fee Related Earnings of $26.2 million, with FRE margin at 34% in Q3 2024 Distributable Earnings of $10.7 million in Q3 2024 ($ 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)
Slide 17: Carried Interest & Principal Investment Income
CARRIED INTEREST & PRINCIPAL INVESTMENT INCOME Net carried interest reversal of $7.7 million in Q3 2024 Net principal investment income of $6.5 million in Q3 2024 Carried Interest ($ in millions) 3Q23 3Q24 % Change YOY 3Q23 LTM 3Q24 LTM % Change YOY Unrealized Carried Interest Allocation (Revers
Slide 18: DBRG Financial Profile & FEEUM Progression
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. $326M $292M $303M LTM Fee Revenue and FRE Profile(1) $267M $280M $238M LTM Fee Revenue $214M $193M LTM FRE $90M $98M $82M
Slide 19: Balance Sheet Profile
BALANCE SHEET PROFILE Key Corporate Assets Key Corporate Liabilities Blended Avg. Cost (Per ($ in millions) 9/30/2024 ($ in millions) 9/30/2024 Annum) GP Affiliated Investments(1) Corporate Debt DBP Series $340 Securitized Notes $300 3.9 % DataBank and Vantage SDC 675 Revolver (VFN; $300M Available)
Slide 20: DBRG 3Q 2024: CEO Takeaways
DBRG 3Q 2024: CEO TAKEAWAYS Notable progress on fundraising and continuing to deliver strong revenue and earnings growth. DBRG remains principally focused on our long-term roadmap…scaling our leading digital infrastructure investment platform SECOND HALF 2024 PRIORITIES STATUS LONG TERM PRIORITIES C
Slide 21: Q&A Session
all DIGITALBRIDGE Q&A SESSION
Slide 22: Supplemental Financial Data
4 SUPPLEMENTAL FINANCIAL DATA 22
Slide 23: Summary Financial Metrics
SUMMARY FINANCIAL METRICS 202 4 202 3 202 2 ($ and share s in th ousands, except pe r shar e d ata an d a s noted) 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 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
Slide 24: FEEUM, Fee Related Earnings & Distributable Earnings
FEEUM, FEE RELATED EARNINGS & DISTRIBUTABLE EARNINGS 202 4 202 3 202 2 ($ in millions) 9/30/24 Fee Rat e 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 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% 6,5
Slide 25: Fund Performance
FUND PERFORMANCE 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 strate
Slide 26: Capitalization
CAPITALIZATION ($ 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 $
Slide 27: GP Affiliated Investments
GP AFFILIATED INVESTMENTS ($ in thousands) 202 4 202 3 202 2 Consolidated 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 GP Affiliated Investments DBP Series $ 470,937 $ 452,604 $ 446,954 $ 446,423 $ 442,991 $ 427,188 $ 395,534 $ 392,322 (1)(2) DataBank and Vantage SDC 679,335 674,900 940,854 931,0
Slide 28: Balance Sheet
BALANCE SHEET September 30, December 31, 2024 ($ in thousands) 2023 (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
Slide 29: Distributable Earnings & Fee Related Earnings
DISTRIBUTABLE EARNINGS & FEE RELATED EARNINGS 202 4 202 3 202 2 ($ in thousands) 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 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 n
Slide 30: Reconciliations
RECONCILIATIONS 202 4 202 3 202 2 ($ in thousands) 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 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 Fe
Slide 31: Reconciliations
RECONCILIATIONS 202 4 202 3 202 2 (share s in th ousands) 3Q 24 2Q 24 1Q 24 4Q 23 3Q 23 2Q 23 1Q 23 4Q 22 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
Slide 32: Appendix
6 APPENDIX 32
Slide 33: 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 34: Important Note Regarding Non-GAAP Financial Measures (Continued)
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 distributions a
Slide 35: Definitions
DEFINITIONS Assets Under Management (“AUM”) AUM represents the total capital for which we provide investment management services and general partner capital. AUM is gene rally composed of third party capital managed by the Company and its affiliates, including capital that is not yet fee earning, or
Slide 36: DigitalBridge
DIGITALBRIDGE