Financial Data and Key Metrics Changes - Total fourth quarter platform revenue was $4.6 million, a 36.1% decrease compared to the prior period due to lower carried interest from asset sales and higher development activity in the previous year [58] - Total platform expenses in Q4 were $10.7 million, an increase of 24% compared to the prior period, primarily due to a $4 million bad debt expense [59] - For the full year 2024, total platform revenue was $21 million, a 1.9% increase compared to last year, while platform expenses totaled $33.1 million, representing a 9.4% increase from the previous year [60] Business Line Data and Key Metrics Changes - Managed capital was $492.5 million, a 12.5% increase compared to December 31, 2023, with originations of $69 million partially offset by returns of capital of $14 million [61] - The company reported a platform adjusted EBITDA loss of $2.7 million for the full year 2024, compared to a loss of $1.3 million in 2023 [61] Market Data and Key Metrics Changes - The fundraising environment remains challenging, with the fourth quarter being disappointing due to election disruptions and other factors [42] - The company noted an increase in lender activities following a slowdown, indicating a potential recovery in the financing environment [66] Company Strategy and Development Direction - The company plans to focus on three key asset classes: multifamily residential, hospitality, and multi-tenant industrial, while reducing its development footprint to 30% or less of its asset portfolio [10][19] - New financing vehicles were launched to increase access to capital and support growth [11][22] - The company aims to enhance its access to capital through wholesale fundraising and corporate financings [11][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reentering the multifamily investment market as valuations have begun to drop [14] - The company is committed to achieving profitability in 2025, despite challenges in the current environment [12][63] - Management highlighted the unique opportunities in the hospitality sector due to reduced supply and returning demand [15][39] Other Important Information - The SEC issued new guidance on general solicitation, simplifying the process for qualifying investors, which is expected to benefit the company [44] - The estimated value of performance allocations as of year-end 2024 was $89 million, which is not included on the balance sheet [47][50] Q&A Session Summary Question: What drove the $4 million bad debt expense and the $8.6 million non-cash write-downs? - The bad debt expense was related to the assessment of consolidations and reevaluation of distributable cash from a fund in wind-down mode, leading to identified losses on various assets [74][76] Question: What is driving the renewed focus on the three asset classes? - The decision is driven by the need for consistent profitability and the desire to streamline operations and fundraising efforts by focusing on areas with a long-term track record [80][82] Question: What is the outlook for the fundraising environment going forward? - Management feels optimistic as investors are starting to see it as a good time to buy real estate, and the financing environment is showing signs of recovery [88][92] Question: Are there still expectations for the Satori Collective contribution to close? - Yes, the contribution agreement is in place, and modifications are being made to finalize the closing process [93][95] Question: Will operating income be positive in 2025 despite challenges? - Management is confident that operating income will be positive in 2025 due to ongoing expense reductions and revenue growth efforts [96][97]

Financial Performance - Total revenues for the year ended December 31, 2024, were $51.1 million, a decrease of 43.8% from $90.9 million in 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and Caliber Hospitality Trust[204]. - Total expenses decreased by 46.1% to $64.4 million in 2024 from $119.5 million in 2023, mainly due to reduced consolidated fund expenses following the same deconsolidation[205]. - The net loss attributable to CaliberCos Inc. increased by 55.7% to $19.8 million in 2024 from $12.7 million in 2023[204]. - Asset management revenues rose by 21.1% to $20.6 million in 2024, compared to $17.0 million in 2023, driven by increased capital raise fees and managed capital[209]. - Performance allocations dropped significantly by 89.6% to $379,000 in 2024 from $3.7 million in 2023, due to changes in carried interest related to hospitality assets[210]. - Total Platform revenues increased slightly by 1.5% to $20.9 million in 2024 from $20.6 million in 2023[208]. - The company reported a net loss before income taxes of $21.5 million in 2024, an improvement from a loss of $27.6 million in 2023, reflecting a 22.2% reduction in losses[204]. - Consolidated Adjusted EBITDA for 2024 was $6,984 thousand, down from $10,168 thousand in 2023, reflecting a decrease of 31.5%[244]. Asset Management and Capital - Caliber has grown to manage over $2.9 billion in assets under management (AUM) and assets under development (AUD) over the past 15 years[181]. - The company has successfully raised a total of $742.8 million in capital through December 31, 2024, indicating strong investor interest in alternative assets[190]. - Managed capital increased from $437.6 million as of December 31, 2023 to $492.5 million as of December 31, 2024, representing a growth of 12.5%[222]. - Fair Value AUM rose from $741.2 million as of December 31, 2023 to approximately $794.9 million as of December 31, 2024, an increase of 7.2%[223]. - Total real estate managed capital increased from $343.6 million in 2023 to $414.2 million in 2024, reflecting a growth of 20.5%[224]. - Managed capital for the Caliber Hospitality Trust increased by $26.7 million during 2024, primarily due to the issuance of $9.6 million in operating partnership units and $17.1 million in non-voting preferred stock[226]. - Managed capital for residential investment funds rose by $22.5 million in 2024, driven by $9.6 million in capital raised and $21.2 million contributed by diversified funds[227]. - Managed capital for commercial investment funds increased by $15.9 million in 2024, with $11.0 million raised and $10.6 million contributed by diversified funds[228]. Economic Environment - The annual inflation rate in the U.S. peaked at 9.1% in June 2022 but decreased to 2.9% by December 2024, impacting investment behaviors and capital formation[197][198]. - The Federal Reserve increased the federal funds rate by 525 basis points from January 1, 2022, to September 2024, affecting the overall economic environment and investor appetite[198]. Investment Strategy - Caliber's investment strategy focuses on middle-market projects valued between $5.0 million and $50.0 million, leveraging local market intelligence and real-time data[182]. - The company has identified strategic acquisitions on off-market terms and anticipates continued opportunities despite increased asset valuations and competition[193]. Debt and Financing - As of December 31, 2024, the company had issued unsecured promissory notes totaling $32.8 million, with an average interest rate of 11.30%[256]. - The company plans to raise $20 million through preferred stock series AA financing to address upcoming corporate note maturities[253]. - The company intends to refinance existing 12-month term notes into a new 36-month term corporate note program, having successfully refinanced $2.7 million so far[253]. - Interest expense rose to $5.4 million in 2024 from $4.7 million in 2023, attributed to an increase in short-term operating loans[213]. - The total stockholders' deficit equity was $(8.4) million in 2024, compared to $6.7 million in 2023, indicating a significant decline in equity[216]. - A 100 basis point increase in variable interest rates would increase annual interest expense by $0.2 million[293]. Cash Flow and Liquidity - Operating activities generated a net cash inflow of $555 thousand in 2024, a significant improvement of $19,275 thousand compared to a cash outflow of $18,720 thousand in 2023[258]. - The company experienced a net cash outflow of $12,743 thousand in 2024, compared to a net inflow of $1,706 thousand in 2023, marking a change of $14,449 thousand[258]. - Net cash flows from operating activities for the year ended December 31, 2024, remained consistent compared to 2023, with an increase attributed to decreased interest payments related to consolidated funds notes payable[261]. - Net cash flows provided by investing activities increased due to payments received on related party notes receivable and a decrease in the acquisition of real estate assets[262]. - Net cash flows used in financing activities increased by $26.0 million due to a decrease in net proceeds on notes payable, while consolidated funds saw a decrease in redemptions and distributions to noncontrolling interest holders by $13.2 million[263]. Technology and Innovation - Caliber's technology stack includes advancements in proptech and artificial intelligence, enhancing its capital formation and investment management strategies[195]. Regulatory Environment - Recent legislation aims to expand the accredited investor criteria, potentially increasing Caliber's investor base significantly[191]. Risk Management - The company mitigates credit risk associated with revenues generated from real estate assets located in multiple states, including Alaska, Arizona, and Texas[294].

3Q 2024 Earnings Supplemental Building on a 15-year track record of profitable growth and success ©2024 Caliber Disclaimers 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 facts. These statements are "forward-looking statements" within the meaning of the Priva ...

Financial Data and Key Metrics Changes - In Q3 2024, total consolidated revenue was $12 million, a decrease of 29.5% compared to the same period last year, primarily due to a decrease in consolidated fund revenues [22] - Consolidated expenses declined by 60.8% to $11.1 million, mainly due to the deconsolidation of certain assets [22] - Net income attributed to Caliber was $0.1 million or $0.1 per diluted share, compared to a net loss of $3.4 million or $0.16 per diluted share in the same period last year [22] - Total platform revenue increased by 98.9% to $7.4 million, driven by development and construction fees and higher fund management fees [22][23] - Platform adjusted EBITDA for Q3 was $2.4 million, compared to a loss of $1.5 million in the same period last year [24] Business Line Data and Key Metrics Changes - Asset management revenues nearly doubled over the quarters, contributing to positive adjusted EBITDA and platform earnings [5] - The increase in platform revenue was primarily driven by development and construction fees due to new projects and milestones related to existing activities [23] - Fund management fees increased due to a rise in managed capital and fees from the growth in the Caliber Hospitality Trust [23] Market Data and Key Metrics Changes - The company noted a decrease in commercial real estate values and a slowdown in fundraising into private real estate funds due to macro trends such as rising interest rates [7] - However, a recent survey indicated that 88% of real estate industry experts expect revenues in commercial real estate to grow next year [7] - The company observed that asset prices, which had been declining, are now decelerating, suggesting a potential inflection point for real estate investments [8] Company Strategy and Development Direction - The company aims to acquire more income-generating real estate investments, particularly through the Caliber Hospitality Trust, targeting middle-market hotels [9] - Plans include creating more single asset investment offerings to attract investment capital [11] - The company is also focused on utilizing unique financing sources to drive revenue growth and has launched a qualified opportunity zone fund Roll Up Program to raise larger investments [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the business's trajectory, noting that they are tracking slightly ahead of their objectives [6] - The company remains confident in achieving positive net operating income at the platform level for the full year 2025 [15] - Management acknowledged ongoing volatility in the business but emphasized their commitment to achieving strategic objectives [6][15] Other Important Information - The company executed a reduction in force of approximately 10% of its employees in May, with expected annual savings of $4 million [25] - The company is actively seeking opportunities to refinance and recapitalize its balance sheet [26] Q&A Session Summary Question: Update on Caliber Hospitality Trust (CHT) and preferred equity environment - Management confirmed they are on track to close on the remaining eight assets by year-end and have secured the majority of the equity necessary for the transaction [29] Question: Details on the increase in platform revenue - Management noted that the increase in platform revenue is linked to the growth in managed capital, which directly impacts fund management fees [30][32] Question: Fundraising channels and origination - Management indicated that they are beginning to see benefits from the wholesale channel, particularly from independent registered investment advisors [33] Question: Performance allocations outlook - Management stated that predicting performance allocations is challenging due to market conditions, but they are starting to see opportunities to realize gains in their asset pool [34]

Asset Management and Revenue - Caliber has grown to manage over $2.9 billion in assets under management (AUM) and assets under development (AUD) over the past 15 years[189]. - The company has successfully raised approximately $710.5 million in total capital through September 30, 2024, indicating strong investor interest in alternative assets[204]. - The company generates revenue primarily from asset management fees, which are typically between 1.0% to 1.5% of unreturned capital contributions, and performance allocations ranging from 15.0% to 35.0% of cash distributions[192][196]. - Total revenue is significantly impacted by the performance of consolidated variable interest entities (VIEs), which are included in the company's consolidated results[215]. - Total revenues for Q3 2024 were $11.3 million, down 33.6% from $17.0 million in Q3 2023, primarily due to a decrease in consolidated fund revenues following the deconsolidation of Caliber Hospitality, LP and Caliber Hospitality Trust[219]. - Asset management revenues increased to $6.5 million in Q3 2024 from $2.3 million in Q3 2023, representing a 182.0% increase[219]. - For the nine months ended September 30, 2024, total revenues were $42.4 million, down 36.7% from $67.0 million in the same period of 2023, largely due to a decline in hospitality revenues[230]. - Asset management revenues for the nine months ended September 30, 2024, were $12.9 million, up 106.9% from $6.2 million in the same period of 2023[230]. - Total revenues for the nine months ended September 30, 2024, were $42.4 million, a decrease of 36.7% compared to $67.0 million in 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and Caliber Hospitality Trust[231]. Expenses and Net Income - Total expenses decreased by 63.3% to $10.4 million in Q3 2024 from $28.4 million in Q3 2023, mainly due to reduced consolidated fund expenses[220]. - Net income attributable to CaliberCos Inc. was $146,000 in Q3 2024, a significant recovery from a net loss of $3.4 million in Q3 2023, marking a 104.3% improvement[219]. - The company reported a net loss of $10.6 million for the nine months ended September 30, 2024, an improvement from a net loss of $23.5 million in the same period of 2023, reflecting a 55.0% reduction in losses[230]. - Total expenses for the same period were $50.4 million, down 43.3% from $88.8 million in 2023, mainly due to the deconsolidation of the same entities[232]. - The company reported a net loss of $10,577 for the nine months ended September 30, 2024, compared to a net loss of $23,507 for the same period in 2023, showing a reduction in losses[280]. Capital and Investments - Managed capital increased from $437.6 million as of December 31, 2023, to $485.3 million as of September 30, 2024, an increase of approximately 10.9%[252]. - Fair Value AUM as of September 30, 2024, was approximately $807.0 million, indicating the aggregate fair value of managed real estate assets[250]. - The total real estate managed capital increased from $343.6 million as of December 31, 2023, to $405.1 million as of September 30, 2024, an increase of approximately 17.9%[254]. - The company is actively developing 1,796 multifamily units, 697 single-family units, and 3.7 million square feet of commercial and industrial space, with total estimated costs of $2.1 billion[266]. - The company deployed $13.5 million into various real estate investments during the nine months ended September 30, 2024, offset by $20.0 million of repayments of outstanding notes receivable[258]. Financial Position and Liabilities - Total assets as of September 30, 2023, were approximately $71.2 million, a decrease from $75.9 million in June 2023, reflecting a decline of about 6.5%[244]. - Total liabilities as of September 30, 2023, were approximately $63.2 million, down from $73.1 million in March 2023, representing a decrease of about 13.5%[244]. - The company’s total liabilities and stockholders' equity as of September 30, 2023, were approximately $64.3 million, down from $72.9 million in March 2023, a decrease of about 11.8%[244]. - The accumulated deficit increased from $(19.4) million in March 2023 to $(24.9) million in June 2023, reflecting a decline of approximately 28.4%[244]. - The company reported a total revenue of $23,945,000 for the three months ended December 31, 2023, compared to $20,445,000 in the same period of the previous year[290]. Cash Flow and Liquidity - The company reported a net cash used in operating activities of $(199) thousand for the nine months ended September 30, 2024, an improvement of $10.943 million compared to $(11,142) thousand for the same period in 2023[324]. - Net cash provided by investing activities increased to $6.628 million for the nine months ended September 30, 2024, compared to a net cash used of $(19,880) thousand in the same period in 2023, reflecting a $26.508 million change[325]. - The company experienced a net change in cash and cash equivalents of $(13.537) million for the nine months ended September 30, 2024, compared to a positive change of $2.483 million in the same period in 2023, a difference of $(16.020) million[324]. - The company does not have sufficient cash on hand to satisfy the total of the notes maturing within the next 12 months, raising substantial doubt about its ability to continue as a going concern[313]. - The company collected $8.2 million in notes receivable and $2.7 million in accounts receivable during the nine months ended September 30, 2024[317]. Market and Economic Conditions - The annual inflation rate in the U.S. decreased to 2.4% in September 2024, following a peak of 9.1% in June 2022, which may influence investment behaviors and capital formation[213]. - The Federal Reserve increased the federal funds rate by 525 basis points from January 1, 2022, to September 18, 2024, before decreasing it by 50 basis points on September 19, 2024, affecting the overall economic environment[213]. - The advancement of proptech and artificial intelligence technologies is expected to enhance Caliber's project execution and investment management strategies[210]. Risk Management - The company mitigates credit risk by diversifying investments across various real estate asset types, including hospitality, commercial, and multi-family properties[354]. - Interest rate risk management includes entering into hedge contracts to limit the impact of interest rate changes on earnings and cash flows[351]. - The company maintains financing relationships with a diversified mix of lenders, including large national banks and private equity lenders, to mitigate financial risk[354].

Revenue Performance - Platform revenue increased by 98.9% to $7.4 million compared to the same quarter last year[4] - Total consolidated revenue decreased by 33.6% to $11.3 million due to the deconsolidation of certain entities[9] - Total revenues for the three months ended September 30, 2023, were $17,025 million, a decrease from $3,728 million in the same period last year[18] - Asset management revenues increased to $6,530 million for the three months ended September 30, 2024, compared to $2,316 million in the previous year[30] - The company achieved total asset management fees of $7,242 million for the three months ended September 30, 2024, compared to $3,704 million in the previous year[21] Earnings and Profitability - Platform earnings reached $0.2 million, or $0.01 per diluted share, a significant improvement from a loss of $3.4 million, or $0.16 per diluted share, in the prior year[4] - Consolidated net income attributable to Caliber was $0.1 million, or $0.01 per diluted share, compared to a net loss of $3.4 million, or $0.16 per diluted share, in the previous year[10] - The company reported a net loss of $12,222 million for the three months ended September 30, 2023, compared to a net loss of $3,366 million in the same period last year[18] - Basic net income per share attributable to common stockholders was $0.01 for the three months ended September 30, 2024, compared to a loss of $0.16 in the same period last year[30] - Fee-related earnings improved to $1,643,000 for the quarter ended September 30, 2024, compared to a loss of $3,069,000 in the same quarter of the previous year[48] - Consolidated adjusted EBITDA turned positive at $4,248,000 for the quarter ended September 30, 2024, compared to a loss of $3,157,000 in the prior year[48] Assets and Liabilities - Fair value assets under management (FV AUM) rose to $807.0 million, an 8.9% increase from December 31, 2023, driven by acquisitions and market appreciation[4] - Managed capital increased by 10.9% to $485.3 million, with originations of $61.4 million offset by redemptions of $13.8 million[4] - Managed capital as of September 30, 2024, was $485,272 million, up from $437,625 million as of December 31, 2023[27] - The fair value of assets under management (AUM) increased to $806,961 million as of September 30, 2024, compared to $741,190 million as of December 31, 2023[25] - Total assets decreased from $299,432,000 as of December 31, 2023, to $158,583,000 as of September 30, 2024, representing a decline of approximately 47%[32] - Total liabilities decreased from $233,414,000 to $95,302,000, a reduction of approximately 59%[35] - Stockholders' equity attributable to CaliberCos Inc. decreased from $66,018,000 to $63,281,000, a decline of about 4%[34] Strategic Initiatives - The company launched a new Qualified Opportunity Zone Fund Roll-Up program, resulting in a $14 million increase in managed capital[7] - A definitive agreement was reached to acquire seven hotel properties, expected to increase assets under management by approximately $120 million[7] - The company anticipates continued strategic progress towards consistent, profitable growth despite market volatility[5] Expenses and Financial Metrics - Total expenses for the three months ended September 30, 2023, were $28,430 million, a significant increase from $10,428 million in the same period this year[30] - Performance allocations for the three months ended September 30, 2024, were $175 million, compared to $36 million in the same period last year[30] - The company reported interest income of $51 million and interest expense of $1,349 million for the three months ended September 30, 2024[30] Shareholder Information - The number of shares issued and outstanding for Class A common stock increased from 13,872,671 to 14,967,702[34]

Group 1 - Caliber (NASDAQ: CWD) will present at the 17th annual LD Micro Main Event on October 30th at 8:00 AM PT [2] - The event will take place from October 28th to 30th at the Luxe Sunset Boulevard Hotel in Los Angeles [3][4] - Approximately 150 companies will present during the event, with presentations scheduled in half-hour increments [4] Group 2 - The LD Micro Main Event is recognized as a significant gathering for the micro-cap industry, aimed at fostering future opportunities [3] - Registration for the event will begin at 3:00 PM PT on October 28th, followed by keynotes and networking opportunities [3] - LD Micro, founded in 2006, serves as an independent resource in the micro-cap space, providing valuable insights through its index and conferences [5]

Financial Performance - Total revenues for the three months ended June 30, 2024, were $8.2 million, a decrease of 60.0% compared to $20.4 million in the same period of 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and the Caliber Hospitality Trust[205]. - Total revenues for the six months ended June 30, 2024, were $31.1 million, a decrease of 37.7% compared to $50.0 million in 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and the Caliber Hospitality Trust[211]. - Total revenues for the six months ended June 30, 2023, were $49,967 million, with asset management revenues contributing $9,723 million[245]. - The company reported a net loss of $11,285 million for the six months ended June 30, 2023, compared to a net loss of $4,811 million in the same period of the previous year[245]. - The net loss for the three months ended June 30, 2024, was $5.3 million, a significant improvement from a net loss of $11.6 million in the same period of 2023, reflecting a 54.1% reduction[205]. - The net loss attributable to CaliberCos Inc. was $8.5 million for the six months ended June 30, 2024, compared to a net loss of $6.9 million in 2023, reflecting a 23.1% increase in losses[211]. - The company reported a net loss before income taxes of $5.32 million for the three months ended June 30, 2024, compared to a loss of $11.58 million in the same period of 2023, indicating a 54% improvement[238]. - Consolidated Adjusted EBITDA for the six months ended June 30, 2024, was $1.22 million, a notable recovery from a loss of $4.12 million in the same period of 2023[241]. Revenue Sources - The company earns fund management fees ranging from 1.0% to 1.5% of unreturned capital contributions, with a specific fee of 0.70% for the Caliber Hospitality Trust[181]. - Fund management fees rose to $2.7 million in Q2 2024, up 12.5% from $2.4 million in Q2 2023, driven by increased managed capital[210]. - Fund set-up fees surged by 7,288.9% to $9,656 in Q2 2024, attributed to revenue from two new fund offerings[209]. - Fund set-up fees surged by 831.9% to $671,000 in 2024, attributed to revenue from two new fund offerings[215]. - Development fee revenue is generally based on 4.0% of total expected costs of development or construction projects, recognized over time as performance obligations are satisfied[270]. - Hospitality revenues include room rentals and food and beverage sales, recognized as earned when guests occupy rooms or utilize services[275]. Expenses and Losses - Total expenses decreased to $12.7 million in Q2 2024 from $31.4 million in Q2 2023, a reduction of 59.7%, mainly due to lower consolidated fund expenses[206]. - Total expenses decreased by 33.9% to $40.0 million in 2024 from $60.4 million in 2023, mainly due to reduced consolidated fund expenses following the deconsolidation[212]. - Operating costs for the three months ended June 30, 2024, were $5.76 million, down from $6.82 million in the same period of 2023, reflecting a 15.5% reduction in operational expenses[243]. - Interest expense increased to $2.6 million in 2024 from $2.1 million in 2023, primarily due to a rise in the weighted average corporate notes outstanding[217]. - General and administrative expenses rose by 34.3% to $4.0 million in 2024, driven by increased software, legal, and accounting fees[216]. Asset Management and Capital - Caliber manages over $2.9 billion in assets under management (AUM) and assets under development (AUD) as of the latest report[178]. - As of June 30, 2024, total assets under management (AUM) reached $773,213 thousand, up from $741,190 thousand as of December 31, 2023, reflecting a 4.3% increase[230]. - The Caliber Hospitality Trust's AUM increased to $234,300 thousand as of June 30, 2024, compared to $201,600 thousand as of December 31, 2023, marking a growth of 16.2%[230]. - Managed capital increased from $437,625 thousand as of December 31, 2023, to $469,800 thousand as of June 30, 2024, representing a growth of 7.4%[224]. - The Caliber Hospitality Trust's managed capital rose by $25.1 million during the six months ended June 30, 2024, primarily due to a $9.6 million hotel contribution and $15.5 million in non-voting preferred stock investments[225]. Market Conditions and Strategic Outlook - The annual inflation rate in the U.S. decreased to 3.0% in June 2024, following a peak of 9.1% in June 2022, impacting investment behaviors[200]. - The Federal Reserve increased the federal funds rate by 525 basis points from January 1, 2022, to July 30, 2024, affecting capital market conditions[200]. - Regional conflicts and geopolitical instability are expected to impact global markets and investor risk tolerance, potentially affecting fundraising efforts[199]. - The company anticipates continued strategic acquisitions on off-market terms, despite increased asset valuations and competition[194]. - The company’s strategy includes identifying undervalued assets for acquisition and repositioning them to enhance appreciation and operating performance[219]. Cash Flow and Financing - The company experienced a net cash outflow of $13,085 million in cash and cash equivalents for the six months ended June 30, 2024, compared to a net inflow of $5,478 million in the same period of 2023[255]. - Cash flows used in operating activities increased to $(3,868) million for the six months ended June 30, 2024, compared to $(1,101) million in the same period of 2023[258]. - As of June 30, 2024, the company had issued unsecured promissory notes totaling $33.6 million, with a weighted average interest rate of 11.38%[253]. - The company recorded a decrease of $41.9 million in proceeds on notes payable during the six months ended June 30, 2024, compared to the same period in 2023[261]. Employee and Operational Changes - The company executed a reduction in force of approximately 10% of its employees in May 2024, expecting annual savings of $4.0 million in compensation and benefits expenses[250]. - Management plans to negotiate extensions of loans, reduce operating costs, and increase capital raise through fundraising channels to address operating losses[250]. Technology and Innovation - The company has integrated advanced technologies, including artificial intelligence, to enhance project execution and investment management strategies[197]. - Fee-Related Earnings, a non-GAAP measure, is used to assess the company's ability to generate profits from fee-based revenues, focusing on core revenue streams[234]. - Distributable Earnings, another non-GAAP measure, is calculated as Fee-Related Earnings plus performance allocation revenue, providing insight into earnings available for distribution[235].

Financial Data and Key Metrics Changes - Total consolidated revenue for Q2 2024 was $8.2 million, a decrease of 60% year-over-year due to the deconsolidation of Caliber Hospitality, LP and Elliot 10 [15] - Consolidated expenses declined by 59.7% to $12.7 million, also attributed to the deconsolidation [16] - Net loss attributed to Caliber was $4.7 million or $0.22 per diluted share, compared to a net loss of $5.7 million or $0.29 per diluted share in the same period last year [16] - Adjusted EBITDA loss for Q2 was $2.4 million, slightly worse than the adjusted EBITDA loss of $2.3 million in the prior year [17] - Total managed capital increased by $32.2 million or 7.4% from $438 million to $470 million from December 31, 2023, to June 30, 2024 [18] Business Line Data and Key Metrics Changes - Consolidated asset management revenues increased by 70.3%, offsetting some losses from other revenue streams [15] - Fund setup fees increased significantly to $665,000 from $9,000 in the prior year due to new fund offerings [17] - Fund management fees rose by 12.5% to $2.7 million, driven by an increase in managed capital and fees from the Caliber Hospitality Trust [17] - Development and construction fees decreased by 50.1% due to reduced activities compared to the previous year [17] Market Data and Key Metrics Changes - The real estate market has seen a significant drop in value, creating opportunities for acquiring income-generating assets [5] - The company is focusing on acquiring more income-generating real estate investments, with plans to close on $1 billion of assets in the Caliber Hospitality Trust [5][6] Company Strategy and Development Direction - Caliber has set three priorities for revenue growth: acquiring more income-generating real estate investments, providing more single asset investment offerings, and completing existing developments [5][8] - The company aims to return to positive EBITDA in Q4 2024 and positive net operating income in 2025 [4] - The strategy includes leveraging technology and optimizing the go-to-market strategy to enhance fundraising capabilities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium and long-term growth prospects despite current market challenges [11] - The company is focused on managing redemption requests effectively and maximizing returns for all investors [22] - Management reiterated that the $3 billion targeted AUM by 2026 remains unchanged and achievable [27] Other Important Information - The company has initiated cost reduction measures, expecting to realize $6.5 million in annualized savings starting in the second half of 2024 [11] - Caliber has made progress in refinancing its unsecured debt, having paid off approximately $4.2 million and extended $27.4 million in debt [12] Q&A Session Summary Question: Fundraising trends in Q2 - Fundraising in Q2 increased to approximately $20 million, doubling from the first quarter, driven by Caliber Hospitality Trust and retail group [20] Question: Redemption trends - Redemption requests have increased but are being managed effectively, with no forced asset sales [22] Question: Single asset investment offerings - Single asset offerings are easier for investors to understand and align with current market preferences, enhancing fundraising efforts [23][24] Question: Confidence in achieving $3 billion AUM target - Confidence in the $3 billion AUM target remains strong, with plans accounting for current market conditions [27]

Financial Performance - Total revenue for Q2 2024 was $8.2 million, a 60.0% decrease compared to Q2 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and the Caliber Hospitality Trust[2] - Net loss attributable to Caliber was $4.7 million, or $0.22 per diluted share, an improvement from a net loss of $5.7 million, or $0.29 per diluted share, in Q2 2023[2] - Fee-Related Earnings for Q2 2024 were reported at $(3,140,000), compared to $(3,535,000) in Q2 2023, indicating an improvement of about 11%[23] - Distributable Earnings for Q2 2024 were $(4,269,000), slightly better than $(4,286,000) in Q2 2023, showing a marginal improvement[24] - The net loss attributable to CaliberCos Inc. for Q2 2024 was $(4,730,000), compared to $(5,726,000) in Q2 2023, reflecting a reduction in losses of approximately 17%[28] - The consolidated adjusted EBITDA for Q2 2024 was $(966,000), an improvement from $(1,257,000) in Q2 2023, indicating a positive trend[26] Revenue Growth - Platform revenue increased by 24.9% year-over-year to $4.2 million, driven by asset management revenue[2] - Total revenues for the asset management platform segment increased to $4,212,000 in Q2 2024, up from $3,372,000 in Q2 2023, representing a growth of approximately 25%[34] - The company reported a total of $4,179,000 in asset management fees for Q2 2024, an increase from $3,348,000 in Q2 2023, marking a growth of about 25%[34] - The company’s performance allocation revenue for Q2 2024 was $16,000, compared to $12,000 in Q2 2023, reflecting a growth of 33%[34] Asset Management and Capital - Fair value assets under management (FV AUM) rose to $773.2 million, a 4.3% increase from December 31, 2023, due to acquisitions and market appreciation[2] - Managed capital increased by 7.4% to $469.8 million, with originations of $38.0 million and redemptions of $5.9 million[2] - As of June 30, 2024, the total managed capital reached $469,800, an increase from $437,625 as of December 31, 2023, representing a growth of approximately 7.3%[41] - The total Fair Value Assets Under Management (FV AUM) increased to $773,213 as of June 30, 2024, up from $741,190 as of December 31, 2023, indicating a growth of about 4.3%[38] - The total real estate assets under management rose to $694,300 as of June 30, 2024, compared to $647,200 as of December 31, 2023, reflecting an increase of approximately 7.3%[38] Cost Management and Savings - The company expects to achieve $6.5 million in annualized cost savings from recent initiatives, with a partial impact anticipated in the second half of 2024[3] - The company’s total expenses for Q2 2024 were $12,655,000, up from $31,406,000 in Q2 2023, showing a significant decrease in expenses[29] Development and Investments - As of June 30, 2024, Caliber was actively developing 1,940 multifamily units and 2.6 million square feet of commercial and industrial space[5] - The company completed the construction of Jordan's Lofts, a 48-unit multifamily property, with 96% of units leased[5] - Caliber received a $10 million investment into its Series D preferred equity, nearly doubling the total preferred equity invested into Caliber Hospitality Trust[5] - The company acquired land for one commercial asset in Colorado during the six months ended June 30, 2024[38] Interest and Redemptions - Interest expense for Q2 2024 was $1,315,000, compared to $1,261,000 in Q2 2023, indicating an increase of approximately 4%[28] - Originations for managed capital were $19,099 for the period ending March 31, 2024, and $18,936 for the period ending June 30, 2024, showing a slight decrease in originations[41] - The company reported redemptions of $2,819 for the period ending March 31, 2024, and $3,041 for the period ending June 30, 2024, indicating an increase in redemptions[41] Credit and Fund Management - The credit FV AUM decreased to $70,972 as of June 30, 2024, from $84,588 as of December 31, 2023, representing a decline of approximately 16.1%[38] - The company earned a fund management fee of 0.70% of the Caliber Hospitality Trust's enterprise value[42] - The company had invested $18.8 million in its funds as of June 30, 2024, compared to $18.3 million as of December 31, 2023[42] - Other managed capital, representing undeployed capital held in diversified funds, was $7,941 as of June 30, 2024, down from $9,402 as of December 31, 2023[42]