Core Viewpoint - Investors are encouraged to explore several REITs that are currently trading under $12 and have made it to the Zacks Rank 1 (Strong Buy) list, as these present favorable risk-to-reward opportunities amid a stock market rebound [1] Group 1: DigitalBridge Group (DBRG) - DigitalBridge Group focuses on investments in fiber networks, macro cell towers, and data centers, which are essential for the growth of 5G technology, cloud computing, and artificial intelligence [2] - The company has over $100 billion in assets and is projected to achieve over 20% EPS growth in fiscal years 2025 and 2026 [3] - DBRG stock has increased from a 52-week low of $6 in early April but remains 34% below its 52-week high of $17 from last October [3] Group 2: Invesco Mortgage Capital (IVR) - Invesco Mortgage Capital manages residential and commercial mortgage-backed securities and is currently trading at $7, which reflects a low valuation at just 3X forward earnings [5] - EPS is expected to decline to $2.26 this year from $2.88 in 2024, with a further projected dip of 12% in FY26, while offering an annual dividend yield of 18.5% [5][6] - The stock has a stable 52-week range, with a low of $5.86 and a high of $9.97, indicating less volatility [6] Group 3: New York Mortgage Trust (NYMT) - New York Mortgage Trust is trading at $6 and is expected to see a significant rebound in its bottom line, offering a generous annual dividend of 12.26% [7] - The stock trades at a reasonable forward earnings multiple of 10.5X and has a low-volatile 52-week range, making it appealing for investors [7][8] - EPS estimates for FY25 and FY26 have increased significantly over the last 60 days, supported by a leveraged portfolio of residential mortgage securities [8] Group 4: Honorable Mentions - Ares Commercial Real Estate (ACRE) and Braemar Hotels & Resorts (BHR) are trading under $5 and are also on the Zacks Rank 1 (Strong Buy) list, with expected positive adjusted EPS next year and annual dividends of 13.27% and 10%, respectively [9]

Financial Data and Key Metrics Changes - The meeting discussed the approval of the compensation of the company's named executive officers, which is detailed in the proxy statement [9][10] - The appointment of Ernst and Young LLP as the independent registered public accounting firm for 2025 was ratified [11][12] Business Line Data and Key Metrics Changes - No specific data or metrics regarding individual business lines were provided during the meeting Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of board members and the approval of executive compensation, indicating a commitment to strategic oversight [6][9] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [20][21] Other Important Information - The meeting confirmed that all proposals were approved by the necessary votes, indicating shareholder support for the company's governance and operational decisions [18] Q&A Session Summary Question: Were there any questions from shareholders? - There were no questions submitted during the meeting [15][21]

Group 1 - DigitalBridge (DBRG) shares have increased by 7.9% over the past four weeks, closing at $8.74, with a mean price target of $16.65 indicating a potential upside of 90.5% [1] - The mean estimate consists of 10 short-term price targets with a standard deviation of $2.38, where the lowest estimate of $13 suggests a 48.7% increase, and the highest estimate predicts a surge of 128.8% to $20 [2] - Analysts show strong agreement on DBRG's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for DBRG's current year earnings has increased by 23.5% over the last 30 days, with one estimate moving higher and no negative revisions [12] - DBRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for near-term upside [13] - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a directional guide for price movement [13]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $90,139 thousand, an increase of 23.5% compared to $72,955 thousand for the same period in 2024[15]. - Net loss attributable to DigitalBridge Group, Inc. was $14,855 thousand for the three months ended March 31, 2025, an improvement from a net loss of $30,766 thousand in the same period of 2024[17]. - The company reported a comprehensive income of $(12,626) thousand for the three months ended March 31, 2025, compared to $(31,520) thousand for the same period in 2024, indicating a significant reduction in losses[17]. - Net income for the three months ended March 31, 2025, was a loss of $14,855,000, compared to a loss of $30,766,000 for the same period in 2024, representing a 51.7% improvement year-over-year[26]. - The company reported a net cash increase of $47,808,000 in Q1 2025, contrasting with a decrease of $98,109,000 in Q1 2024[26]. - Net income from continuing operations attributable to common stockholders for Q1 2025 was $2.999 million, compared to a loss of $31.192 million in Q1 2024[123]. - The company reported a total net loss allocated to common stockholders of $(919,000) for Q1 2025, compared to a loss of $(44.322 million) in Q1 2024[123]. - Net income attributable to DigitalBridge Group, Inc. was $13.8 million in 2025, a turnaround from a loss of $(29.6) million in 2024, reflecting an improvement of $43.4 million[197]. Assets and Liabilities - Total assets decreased to $3,439,028 thousand as of March 31, 2025, from $3,513,318 thousand at December 31, 2024, representing a decline of approximately 2.1%[12]. - Total liabilities decreased to $974,263 thousand as of March 31, 2025, from $1,022,128 thousand at December 31, 2024, a reduction of about 4.7%[12]. - The company’s accumulated deficit increased to $(6,840,143) thousand as of March 31, 2025, compared to $(6,837,502) thousand at December 31, 2024[12]. - The total assets of the consolidated funds were $214.1 million as of March 31, 2025, compared to $209.8 million at December 31, 2024[155]. - The liabilities of the consolidated funds were $64.8 million as of March 31, 2025, up from $57.7 million at December 31, 2024[155]. Cash and Cash Equivalents - Cash and cash equivalents increased to $349,912 thousand as of March 31, 2025, up from $302,154 thousand at December 31, 2024, reflecting a growth of approximately 15.7%[12]. - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $354,106,000, up from $252,141,000 at the end of Q1 2024, indicating a 40.5% increase[28]. Revenue and Fee Structure - Total fee revenue for Q1 2025 was $90.139 million, an increase of 23.5% from $72.955 million in Q1 2024[125]. - Management fees increased to $89.860 million in Q1 2025, up from $71.844 million in Q1 2024, representing a growth of 25.1%[125]. - Revenue concentration from three funds accounted for 66.6% of total management fees for Q1 2025[128]. - Fee revenue increased by $17.2 million or 24% to $90.1 million, driven by higher capital raised for the third flagship fund, contributing an additional $20.6 million in management fees[199]. Investments and Equity - The company’s principal investments totaled $1,343,859 thousand as of March 31, 2025, down from $1,391,316 thousand at December 31, 2024, reflecting a decrease of approximately 3.8%[55]. - The Company’s equity investments of consolidated funds were valued at $149,504 thousand as of March 31, 2025, compared to $146,423 thousand at the end of 2024, showing an increase of about 2.1%[104]. - The Company’s investments in consolidated funds included marketable equity securities valued at $86,350 thousand as of March 31, 2025, up from $83,269 thousand[55]. Compensation and Expenses - Compensation expense for equity-based compensation in continuing operations was $7.620 million for Q1 2025, down from $9.214 million in Q1 2024[147]. - Cash compensation decreased by $3.5 million in 2025, totaling $38.49 million compared to $41.97 million in 2024[208]. - Equity-based compensation fell by $1.6 million in 2025, amounting to $7.62 million, down from $9.21 million in 2024[209]. - Total expenses decreased to $55.3 million in 2025 from $83.9 million in 2024, attributed to higher reversals of unrealized carried interest compensation and lower administrative costs[207]. Market and Operational Insights - The company operates in the digital infrastructure sector, focusing on data centers, cell towers, and fiber networks[183]. - The company is exposed to various risks including market conditions, capital raising ability, and operational risks in foreign markets[179]. - The company had 324 employees as of March 31, 2025[184]. Other Financial Metrics - The Company has established a full valuation allowance for significant deferred tax assets as of March 31, 2025, due to realizability concerns[77]. - The Company’s accumulated other comprehensive income (AOCI) increased to $2,597 thousand by March 31, 2025, from $505 thousand at the end of 2024, reflecting a significant rise of approximately 414%[102]. - The fair value of secured fund fee revenue notes was $288.120 million as of March 31, 2025, slightly up from $285.760 million as of December 31, 2024[119].

Financial Performance - For the quarter ended March 2025, DigitalBridge reported revenue of $45.45 million, down 38.9% year-over-year, and EPS of $0.29, compared to $0.01 in the same quarter last year [1] - The reported revenue was a surprise of -56.61% compared to the Zacks Consensus Estimate of $104.74 million, while the EPS surprise was +262.50% against the consensus estimate of $0.08 [1] Key Metrics - Fee Earning Equity Under Management (FEEUM) stood at $37.3 billion, exceeding the two-analyst average estimate of $36.23 billion [4] - Fee revenue was reported at $90.14 million, surpassing the average estimate of $87.03 million by three analysts, representing a year-over-year increase of +23.6% [4] - Principal investment income (loss) was $5.31 million, below the average estimate of $8.88 million, but showed a year-over-year change of +86.5% [4] - Other income was reported at $5.47 million, compared to the average estimate of $6.63 million, reflecting a year-over-year decline of -22.7% [4] Stock Performance - DigitalBridge shares have returned -8.6% over the past month, while the Zacks S&P 500 composite changed by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported fee revenues of $90 million, an increase of 24% year-over-year, and FRE of $35 million, up almost 80% year-over-year [27][28] - Distributable earnings for the quarter were $55 million, which included a $34 million gain from the partial realization of an investment in DataBank [28] - Fee earning equity under management increased to $37.3 billion, a 15% increase from the previous year [28] Business Line Data and Key Metrics Changes - The company raised $1.2 billion in new fee earning commitments during the first quarter, contributing to the growth in fee revenues [28] - The fundraising for the flagship Digital Ridge Partner strategy represented over 70% of total fundraising [5] Market Data and Key Metrics Changes - The company noted that despite financial market volatility, allocators are still investing in digital infrastructure, indicating a strong pipeline of investor interest [6][10] - The performance of digital infrastructure assets has been resilient, with private infrastructure delivering solid returns compared to other asset classes [18][20] Company Strategy and Development Direction - The company is focused on building a diversified portfolio across digital infrastructure, including investments in fiber, small cells, and mobile infrastructure [22][23] - The acquisition of Crown Castle's fiber business by Zayo for $4.5 billion is expected to enhance the company's market position and improve returns [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals despite some delays in fundraising decisions due to market conditions [9][10] - The company is positioned to benefit from long-term contracts and inflation protection, which are expected to mitigate short-term impacts from market volatility [11][12] Other Important Information - The company has committed over $28 billion in CapEx for new site development over the next 24 months, indicating strong growth plans [12] - The management team emphasized the importance of maintaining a conservative approach to asset valuation to ensure credibility with investors [91][92] Q&A Session Summary Question: Is the guidance for total company FRE growth and margins maintained? - Management confirmed that the guidance for total company FRE growth of 10% to 20% and FRE margins of 34.5% is maintained [53][54] Question: How is market volatility impacting carried interest events? - Management noted that while deal-making has slowed in the U.S., global M&A activity is up, and they are still looking for carried interest opportunities across their portfolio [56][59] Question: What steps can be taken to close the valuation disconnect with peers? - Management highlighted the importance of execution and consistency in delivering on fundraising targets and FRE goals to regain investor trust [63][64] Question: What is the current sentiment from potential investors regarding fundraising? - Management reported that most investors have not changed their allocation strategies and continue to commit to digital infrastructure investments [75][76] Question: Is there a shift in investor interest towards credit strategies? - Management indicated an uptick in interest for credit strategies, with over 100 LPs currently evaluating their private credit offerings [105]

Core Viewpoint - DigitalBridge (DBRG) reported quarterly earnings of $0.29 per share, significantly exceeding the Zacks Consensus Estimate of $0.08 per share, and showing a substantial increase from earnings of $0.01 per share a year ago [1][2]. Earnings Performance - The earnings surprise for the quarter was 262.50%, with the company previously expected to post earnings of $0.08 per share but actually producing $0.11 per share in the prior quarter, resulting in a surprise of 37.50% [2]. - Over the last four quarters, DigitalBridge has surpassed consensus EPS estimates two times [2]. Revenue Analysis - DigitalBridge reported revenues of $45.45 million for the quarter ended March 2025, which fell short of the Zacks Consensus Estimate by 56.61%, compared to revenues of $74.39 million in the same quarter last year [3]. - The company has topped consensus revenue estimates two times over the last four quarters [3]. Stock Performance - DigitalBridge shares have declined approximately 25.5% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [4]. - The immediate price movement of the stock will largely depend on management's commentary during the earnings call [4]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $110 million, and for the current fiscal year, it is $0.36 on revenues of $416.73 million [8]. - The estimate revisions trend for DigitalBridge is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [7]. Industry Context - The REIT and Equity Trust industry, to which DigitalBridge belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than a factor of 2 to 1 [9].

Financial Data and Key Metrics Changes - The company reported fee revenues of $90 million, an increase of 24% year-over-year, and FRE of $35 million, up almost 80% year-over-year [28][29] - Distributable earnings for the quarter were $55 million, which included a $34 million gain from the partial realization of the investment in DataBank [29][31] - Fee earning equity under management increased to $37.3 billion, a 15% increase from the previous year [29][30] Business Line Data and Key Metrics Changes - The company raised $1.2 billion in new fee earning equity commitments during the first quarter, contributing to the overall growth in fee revenues [29][30] - The fundraising was primarily driven by the flagship Digital Ridge Partner strategy, which represented over 70% of the total fundraising [5][6] Market Data and Key Metrics Changes - The company noted that while fundraising decisions were delayed due to market volatility, investor interest in digital infrastructure remains strong [10][11] - The company highlighted that the digital infrastructure asset class has shown resilience during periods of market uncertainty, with a focus on long-term contracts that protect revenue streams [12][14] Company Strategy and Development Direction - The company is focused on building a diversified portfolio across digital infrastructure, including investments in data centers, fiber, and towers [23][24] - The recent acquisition of Crown Castle's fiber business by Zayo for $4.5 billion is expected to enhance the company's market position and improve returns [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals despite short-term fundraising delays, emphasizing the resilience of the digital infrastructure sector [10][11] - The company is optimistic about the long-term demand for digital infrastructure, driven by secular trends rather than cyclical demand [14][15] Other Important Information - The company has committed over $28 billion in CapEx for new site development over the next 24 months, indicating strong growth plans [13] - The management team is focused on scaling the private credit platform, with a target to deploy up to $2 billion in loans during 2025 [36][39] Q&A Session Summary Question: Are the guidance items for FRE growth and margins maintained? - Management confirmed that the guidance for total company FRE growth of 10% to 20% and FRE margins of 34.5% is maintained [53][54] Question: How is market volatility impacting carried interest events? - Management noted that while deal-making has slowed in the U.S., global M&A activity is up, and they remain confident in creating carried interest outcomes this year [56][59] Question: What steps can be taken to close the valuation disconnect with peers? - Management emphasized the importance of execution and consistency in delivering on fundraising targets and FRE goals to regain investor trust [62][63] Question: What is the current sentiment from potential investors regarding fundraising? - Management reported that most investors have not changed their allocation strategies, and there is still strong interest in digital infrastructure investments [74][75] Question: Is there a shift in investor interest towards credit strategies? - Management indicated an uptick in interest in credit strategies, with a significant increase in the pipeline for the credit fund [101][102]

EARNINGS PRESENTATION 1Q 2025 May 1, 2025 1 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) general economic trends and trends in our industry and markets. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, an ...

Financial Performance - Total revenues for Q1 2025 were reported at $45 million, with a GAAP net loss attributable to common stockholders of $1 million, or $0.01 per share[9]. - Distributable Earnings for Q1 2025 were $55 million, or $0.29 per share[9]. - The company reported a net loss attributable to common stockholders of $0.9 million in Q1 2025, compared to a loss of $44.3 million in Q1 2024[15]. - The company reported a net loss attributable to common stockholders of $878,000 in Q1 2025, compared to a net income of $76.8 million in Q1 2024[83]. - Distributable Earnings (After Tax) for Q1 2025 were $54,704, significantly up from $19,903 in Q4 2024[100]. Revenue Growth - Fee revenues increased by 24% year-over-year to $90 million in Q1 2025, supported by fundraising for the flagship DBP[25]. - Fee Revenue for Q1 2025 reached $90.2 million, representing a 24% year-over-year increase, including $12.0 million in catch-up fees[48]. - Management Fee Revenue reached $90.1 million in Q1 2025, compared to $78.6 million in Q1 2024, reflecting a growth of approximately 14.5% year-over-year[83]. - Fee Related Earnings (FRE) grew by 79% year-over-year to $35 million in Q1 2025, indicating continued margin improvement[25]. - Fee Related Earnings (FRE) for Q1 2025 were $34.950 million, up from $19.563 million in Q1 2024, representing an increase of 78.9% year-over-year[85]. Capital Formation - New capital formation reached $1.2 billion in 2025, with $0.8 billion (72% of total) coming from commitments to DBP III[22]. - New Capital Formation amounted to $1.2 billion during Q1 2025, primarily from commitments to the latest DBP series and co-investments[48]. - DigitalBridge has closed $650 million in commitments to DBC Fund 2, with a goal to build up to $2 billion in new loans[65]. Investments and Acquisitions - DigitalBridge portfolio company Zayo announced a $4.5 billion acquisition of Crown Castle Fiber, aimed at enhancing connectivity services[25]. - The acquisition of Crown Castle's fiber business is expected to add approximately 90,000 route miles of fiber to Zayo's network, enhancing its reach to over 70,000 on-net locations[44]. - The effective entry multiple for the Zayo acquisition is expected to be lowered, making it an accretive transaction[25]. Liquidity and Debt - DigitalBridge's liquidity position includes $201 million of available corporate cash and full availability of a $300 million revolver as of March 31, 2025[48]. - DigitalBridge has a strong corporate cash position of $201.3 million as of March 31, 2025[60]. - DigitalBridge's corporate debt has a blended average cost of 3.9% per annum, with preferred stock totaling $822 million at a 7.1% dividend rate[60]. - Total assets as of March 31, 2025, were approximately $3.44 billion, while total debt principal stood at $300 million[83]. Future Outlook - The company aims for persistent double-digit revenue growth and expanding margins, driven by the demand for digital infrastructure[13]. - The current macro environment is expected to have both short- and long-term implications for fundraising and investment decisions[26]. - DigitalBridge plans to launch new digital energy and data center strategies, supporting the growth of AI, cloud, and mobile sectors[78]. Fee-Earning Metrics - Fee Earning Equity Under Management (FEEUM) increased by $4.8 billion, or 15% year-over-year, totaling $37.3 billion as of March 31, 2025[49]. - Total Fee Earning Equity Under Management (FEEUM) increased to $37.297 billion in Q1 2025, up from $35.496 billion in Q4 2024, marking a growth of 5.1%[85]. - DigitalBridge emphasizes the importance of Fee-Earning Equity Under Management (FEEUM), which represents total capital that earns management fees[122]. - The company defines Assets Under Management (AUM) as total capital for which investment management services are provided, including third-party capital[121]. Expenses and Costs - GAAP Compensation Expense for Q1 2025 was $46,110, up from $35,550 in Q4 2024, indicating an increase of 29.0%[103]. - FRE Administrative and Other Expenses for Q1 2025 were $15,946, compared to $36,974 in Q4 2024, a decrease of 56.9%[103]. - Transaction-related costs and non-core items are excluded from DE to provide a clearer picture of ongoing performance[119].