Bridge Investment Group Holdings Inc
Bridge Investment — Q3 2024 Earnings Presentation
36 slides from Bridge Investment's earnings presentation, Nov 6, 2024
Slide 1: Bridge Investment Group Holdings Inc. Reports Third Quarter 2024 Results
BRIDGE INVESTMENT GROUP HOLDINGS INC. REPORTS THIRD QUARTER 2024 RESULTS SALT LAKE CITY, UTAH—November 6, 2024—Bridge Investment Group Holdings Inc. (NYSE: BRDG) (“Bridge” or the “Company”) today reported its financial results for the quarter ended September 30, 2024. Net Income was $10.6 million fo
Slide 2: Forward-Looking Statements
Forward-Looking Statements This earnings release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. All statements other than statements of historica
Slide 3: Earnings Presentation 3rd Quarter 2024
EARNINGS PRESENTATION November 6, 2024 3rd QUARTER 2024 1
Slide 4: Disclaimer
2 Disclaimer The information contained herein does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Bridge Investment Group Holdings Inc. (“Bridge” or the “Company”), Bridge Investment Group Ho
Slide 5: GAAP Income Statement
3 GAAP Income Statement GAAP Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands, except shares and per share amounts) 2024 2023 2024 2023 Revenues: Fund management fees $ 61,069 $ 61,450 $ 183,627 $ 175,616 Pro
Slide 6: Financial Highlights
4 Financial Highlights 3RD Quarter 2024 overview Key Operating Metrics Business Update • Declared quarterly dividend of $0.10 per share of Class A common stock, payable on December 20, 2024 to stockholders of record on December 6, 2024. • At the end of the third quarter of 2024, the Company had $2.9
Slide 7: Gross AUM and Fee-Earning AUM growth
5 $20.0 $25.2 $36.3 $43.3 $47.7 $49.4 $49.2 2019 2020 2021 2022 2023 Q3 2023 Q3 2024 Gross Assets Under Management (AUM) ($ in Bn) Fee-Earning Assets Under Management (FEAUM) ($ in Bn) Proven record of AUM growth ~23% 5-Yr CAGR (3Q’19 vs 3Q’24) $8.7 $10.2 $13.4 $17.3 $21.7 $21.8 $21.8 2019 2020 2021
Slide 8: Total Revenues and Fee Related Revenue
6 $181 $166 $254 $320 $295 $297 $313 Recurring Fund Management Fee Revenue Catch-up Fund Management Fee Revenue Transaction and Other Fee Revenue 2019 2020 2021 2022 2023 LTM 3Q23 LTM 3Q24 $246 $232 $330 $409 $391 $392 $403 2019 2020 2021 2022 2023 LTM 3Q23 LTM 3Q24 Total Revenues ($ in MM) Fee Rela
Slide 9: Distributable Earnings and Fee Related Earnings
7 Distributable Earnings • Decrease related to timing and amount of realization of performance allocations • Net insurance loss largely due a one-time claim in our captive insurance company Fee Related Earnings • Compensation and benefits increased primarily due to the fee related performance compen
Slide 10: Capital Raised and Fee-Earning AUM Drivers
8 $1,345 $518 $674 $320 $303 $334 $153 $305 $607 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • $607 million of capital raised in Q3 2024 driven by Credit, Workforce & Affordable Housing, and Renewable Energy strategies. • 90% of inflows were institutional and 10% were fro
Slide 11: Fee Related Revenue Summary
9 Management Fees ($ in MM) Fee related revenue summary Transaction Fees ($ in MM) Fee Related Revenue ($ in MM) • Recurring fund management fees was consistent between Q3 2024 and Q3 2023 due to long-term nature of invested capital. • Fund management fees includes catch-up fees of $0.2 million in Q
Slide 12: Long Duration Capital Drives Fee Visibility
10 1 As of September 30, 2024. 2 Weighted-average fund life for closed-end funds as of September 30, 2024. Long duration capital drives fee visibility Fee-Earning AUM1 Multifamily 17% Workforce & Affordable Housing 10% Seniors Housing 7% Single-Family Rental 1% Development 19%Office 2% Logistics 2%
Slide 13: Earnings Summary
11 $45 $35 $29 $34 $37 $29 $33 $35 $32 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total Revenues & GAAP Net Income (Loss) ($ in MM) Earnings summary Fee Related Earnings & Distributable Earnings attributable to the Operating Company ($ in MM) • Fee Related Earnings drive
Slide 14: Performance Fee Summary
12 $559 $555 $448 $428 $377 $382 $320 $339 $339 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Performance fee summary Net Unrealized Performance Allocations by Vintage2Accrued Performance Allocations ($ in MM)1 1 Based on fair value one quarter in arrears. 2 As of September
Slide 15: Compelling Fund-Level Track Record
13 Compelling fund-level track record This is a summary only. Please refer to Appendix for the Notes to Performance Summary on slide 32 for additional information. • Strong performance by residential housing funds driven by Bridge’s vertical integration. • Excludes performance for funds currently ra
Slide 16: Distributable Earnings and Capitalization
14 $0.17 $0.04 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Distributable earnings and capitalization Balance Sheet ($ in MM) As of September 30, 2024 After-Tax Distributable Earnings Per Share $0.29 $0.21 $0.19 $0.20 $0.22 $0.14 $0.17 $0.19 $0.15 Q3 2022 Q4 2022 Q1 2023 Q
Slide 17: Company Overview
Company Overview 15
Slide 18: Bridge Investment Group Overview
16 Multifamily 18.1% Workforce & Affordable Housing 12.0% Seniors Housing 5.5% Single-Family Rental 2.2% Development 15.9%Office 2.8% Logistics 2.0% Net Lease Income 1.6% Debt 24.9% Agency MBS 5.6% Secondaries 9.3% Bridge Investment Group overview A leading vertically integrated alternative investme
Slide 19: Bridge's Differentiated Approach Drives Results
17 Bridge’s differentiated approach drives results 1Plus approximately 2,800 professionals employed through a professional employment organization at sites managed by Bridge Senior Living. Data-driven approach to market selection, incorporating intel from our local ~2,200 on the ground colleagues1 a
Slide 20: Appendix
Appendix 18
Slide 21: Condensed Consolidated Balance Sheet
19 As of ($ in thousands) September 30, 2024 December 31, 2023 Assets (Unaudited) (Audited) Cash and cash equivalents $ 61,944 $ 57,702 Restricted cash 12,252 9,558 Marketable securities, at fair value 17,017 19,838 Receivables from affiliates 46,956 44,370 Notes receivable from affiliates 40,262 48
Slide 22: Unaudited Historical Non-GAAP Measures
20 Appendix Unaudited Historical Non-GAAP Measures Three Months Ended ($ in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Net income (loss) $ 32,241 $ 18,245 $ (67,431) $ (2,760) $ (17,894) $ 677 $ (36,800) $ 27,494 $ 10,583 Income tax expense
Slide 23: Unaudited Historical Non-GAAP Measures (Fee Revenues)
21 Appendix Unaudited Historical Non-GAAP Measures Three Months Ended ($ in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Fund-level fee revenues Fund management fees $ 64,096 $ 55,408 $ 53,849 $ 60,353 $ 61,584 $ 55,040 $ 61,184 $ 61,193 $ 61
Slide 24: Reconciliation of Distributable Earnings per Share
22 Appendix Unaudited Historical Reconciliation of Non-GAAP Distributable Earnings per Share Three Months Ended ($ in thousands, except per share and per share amounts) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Numerator: Distributable Earnings ("DE"
Slide 25: Unaudited Historical Non-GAAP to GAAP Reconciliation
23 Appendix Unaudited Historical Non-GAAP to GAAP Reconciliation Three Months Ended ($ in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Realized performance allocations and incentive fees $ 22,308 $ 4,455 $ 3,162 $ 8,466 $ 20,225 $ 9,290 $ 12,
Slide 26: AUM and FEAUM Roll Forward
24 Appendix AUM Roll Forward (Unaudited) FEAUM Roll Forward (Unaudited) ($ in millions) Three Months Ended September 30, 2024 LTM September 30, 2024 Balance as of beginning of period $21,485 $21,779 Increases (capital raised/deployment)4 469 1,402 Changes in fair market value (8) (383) Decreases (li
Slide 27: FEAUM by Fund
25 Appendix FEAUM by Fund (Unaudited) September 30, September 30, ($ in millions) 2024 2023 Bridge Debt Strategies Fund IV $ 2,774 $ 2,774 Bridge Multifamily Fund V 2,239 2,233 Newbury Equity Partners Fund V 1,951 1,951 Bridge Opportunity Zone Fund IV 1,476 1,476 Newbury Equity Partners Fund IV 1,40
Slide 28: Reconciliation of Shares Outstanding and Shareholder Dividends
26 Appendix Reconciliation of GAAP Shares of Common Stock Outstanding to Total Shares Outstanding Q3 2024 GAAP Shares of Common Stock Outstanding 33,192,574 Unvested Participating Shares of Common Stock 8,587,884 Total Participating Shares of Common Stock 41,780,458 Participating Partnership Units 9
Slide 29: Reconciliation of GAAP Loss per Share to Distributable Earnings per Share
27 Appendix Reconciliation of GAAP Loss per Share to Distributable Earnings per Share Q3 2024 ($ in thousands, except per share data) Amount Weighted- Average Shares Outstanding Amount per Share Net income (loss) available to Common Shareholders $ 3,533 32,991,925 $0.11 Add: Income (loss) allocated
Slide 30: Profits Interests and Performance Income
28 Appendix Profits Interests • 2019 profits interests converted on January 1, 2022 • 2020 profits interests converted on January 1, 2023 • 2021 profits interests converted on July 1, 2023 • Resulted in a reduction in non-controlling interest and an increase in Net Income to the Operating Company. •
Slide 31: Composition of Fund Management Fees
29 Appendix Composition of Fund Management Fees ($ in MM)
Slide 32: Investment Performance Summary
30 Investment Performance Summary - As of September 30, 2024 ($ in MM) Appendix Total Investment-Level Fund-Level Returns Closed-End Funds(1) (Investment Period Beginning, Ending Date) Cumulative Fund Committed Capital(2) Unreturned Drawn Capital plus Accrued Pref(3) Cumulative Investment Invested C
Slide 33: Investment Performance Summary (continued)
31 Investment Performance Summary - As of September 30, 2024 ($ in MM) Appendix Total Investment-Level Fund-Level Returns Closed-End Funds(1) (Investment Period Beginning, Ending Date) Cumulative Fund Committed Capital(2) Unreturned Drawn Capital plus Accrued Pref(3) Cumulative Investment Invested C
Slide 34: Notes to Performance Summary
32 Notes to Performance Summary Appendix The investment performance presented herein is intended to illustrate the performance of investments held by the funds and other vehicles we manage and the potential for which is relevant to the performance-based fees to Bridge. Other than the Investor Unleve
Slide 35: Glossary
33 Glossary Assets Under Management Assets under management, or AUM, represents the sum of (a) the fair value of the assets of the funds and vehicles we manage, plus (b) the contractual amount of any uncalled capital commitments to those funds and vehicles (including our commitments to the funds and
Slide 36: Glossary (cont'd)
34 Glossary (cont'd) Fee Related Expenses Fee Related Expenses is a component of Fee Related Earnings. Fee Related Expenses differs from expenses computed in accordance with U.S. GAAP in that it does not include incentive fee compensation, performance allocations compensation, share-based compensati
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