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].

Core Viewpoint - DigitalBridge (DBRG) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.08, reflecting a 700% increase from the previous year, and revenues expected to reach $104.74 million, a 40.8% increase [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for May 1, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 5.26% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent analyst revisions may provide more accurate predictions [5][6]. - A positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, with historical data showing a nearly 70% success rate for such combinations [8]. DigitalBridge's Earnings Analysis - For DigitalBridge, the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, making it challenging to predict an earnings beat [10][11]. - The company has a Zacks Rank of 3, indicating a neutral outlook, and has only beaten consensus EPS estimates once in the last four quarters [11][13]. Industry Comparison - In contrast, Blackstone Mortgage Trust (BXMT) is expected to report earnings of $0.01 per share, reflecting a significant year-over-year decline of 98.5%, with revenues projected at $116.42 million, down 18.2% [17]. - Blackstone Mortgage has seen a 13.5% downward revision in its consensus EPS estimate over the last 30 days, but a high Earnings ESP of 1500% suggests a likely earnings beat, having consistently beaten estimates in the past four quarters [18].

Company Overview - DigitalBridge (DBRG) shares increased by 17.2% to $7.97 in the last trading session, following a significant volume of trading, contrasting with a 25.8% loss over the previous four weeks [1][2] Market Context - The surge in DigitalBridge's stock price is attributed to a broader market rally, spurred by optimism from Trump's announcement on April 9, 2025, regarding a 90-day pause on reciprocal tariffs for most trading partners, excluding China. This development alleviated immediate trade war fears and improved the economic outlook [2] Financial Performance Expectations - DigitalBridge is projected to report quarterly earnings of $0.09 per share, reflecting an 800% year-over-year increase. Revenue is expected to reach $103.97 million, marking a 39.8% increase from the same quarter last year [3] Earnings Estimate Revisions - The consensus EPS estimate for DigitalBridge has been revised 1.3% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] Industry Comparison - DigitalBridge is part of the Zacks REIT and Equity Trust industry, where Cherry Hill Mortgage (CHMI) also operates. CHMI's stock rose 4.3% to $2.70, but it has seen a -24.5% return over the past month [5]

Financial Performance - Total revenues for the year ended December 31, 2024, were $607.028 million, a decrease of 26.1% from $821.383 million in 2023[382]. - The Company reported a net income of $147.006 million for 2024, compared to a net income of $45.165 million in 2023[384]. - The fee revenue for 2024 was $329.693 million, an increase of 24.8% from $264.117 million in 2023[382]. - The principal investment income for 2024 was $30.023 million, a significant decrease of 79.3% from $145.448 million in 2023[382]. - The Company’s total expenses for 2024 were $496.865 million, down from $551.873 million in 2023, indicating a decrease of 10%[382]. - The income (loss) from discontinued operations for 2024 was $(18.865) million, compared to $(320.458) million in 2023, showing an improvement[382]. - The Company reported a comprehensive income (loss) of $(974,000) for the year ended December 31, 2024[393]. - Net income for the year ended December 31, 2024, was $147,006,000, a significant increase from $45,165,000 in 2023[396]. Assets and Liabilities - The Company's total assets decreased to $3.513 billion as of December 31, 2024, from $3.563 billion in 2023, reflecting a decline of 1.4%[380]. - The total liabilities decreased to $1.022 billion in 2024, down from $1.053 billion in 2023, representing a reduction of 2.9%[380]. - The Company’s accumulated deficit as of December 31, 2024, was $(6.838) billion, slightly improved from $(6.843) billion in 2023[380]. - The balance of total equity at December 31, 2024, was $2,466,834,000, compared to $2,491,301,000 at the end of 2023[393]. Investment and Market Activity - The company reported a management fee revenue of $11.6 million from vehicles with NAV or GAV fee basis, which constituted 5% of the total $35.5 billion FEEUM as of December 31, 2024[355]. - The company had $84 million in long positions and $48 million in short positions in marketable equity securities as of December 31, 2024[363]. - Principal investments increased from $1,194.417 million in 2023 to $1,391.316 million in 2024, reflecting a growth of approximately 16.5%[529]. - Carried interest allocation rose from $676.421 million in 2023 to $894.553 million in 2024, indicating a growth of about 32.3%[529]. - Marketable equity securities decreased from $17.487 million in 2023 to $242 thousand in 2024, showing a significant decline[529]. Cash Flow and Dividends - Cash generated from operating activities for 2024 was $60,122,000, compared to $233,637,000 in 2023, indicating a decrease in operational cash flow[396]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $306,298,000, down from $350,250,000 at the end of 2023[398]. - Dividends paid to preferred stockholders in 2024 amounted to $58,641,000, slightly lower than $58,761,000 in 2023[398]. - The Company declared common stock dividends of $0.04 per share, totaling $6,513 for the year[390]. Discontinued Operations - In 2023, the Company reported revenues from discontinued operations of $783.1 million, a decrease from $975.3 million in 2022, reflecting a decline of approximately 19.7%[506]. - The total loss from discontinued operations in 2023 was $320.5 million, compared to a loss of $510.2 million in 2022, indicating an improvement of about 37.2%[506]. - The Company recorded an income tax benefit of $190 in 2024 from discontinued operations, compared to an expense of $1.6 million in 2023[506]. - The Company’s discontinued operations included residual activities from former real estate investments, which have been largely disposed of as part of its transformation strategy[499]. Risk Factors - The company operates in a highly competitive investment management environment, which significantly impacts its ability to raise capital and maintain distributions to stockholders[20]. - Changes in debt financing markets or higher interest rates could negatively affect the value of certain assets and the ability of funds to access capital markets on attractive terms[26]. - The company is exposed to foreign currency risk, particularly from its InfraBridge advisor subsidiary, which incurs operating costs in Pound Sterling while receiving fee revenue predominantly in U.S. dollars[361]. - The market price of the company's class A common stock has been volatile, which could result in significant losses for shareholders[26]. - The company’s operations in foreign markets expose it to risks related to foreign exchange rate fluctuations[20]. Acquisitions and Investments - The Company acquired AMP Capital's global infrastructure equity investment management business for $314.3 million in cash, with additional contingent consideration based on future fundraising targets[525]. - The total consideration for the acquisition was $376.314 million, with cash assets of $365.440 million and contingent consideration valued at $10.874 million[527]. - The fair value of net assets acquired was $208.571 million, with goodwill recorded at $167.743 million[527]. Accounting and Financial Reporting - The Company accounts for acquisitions using the acquisition method, with transaction costs expensed as incurred[431]. - Contingent consideration related to business acquisitions is measured at fair value on the acquisition date and remeasured each reporting period until settled[434]. - The Company uses the asset and liability method for income taxes, reflecting expected future tax consequences of temporary differences[491]. - Basic earnings per share (EPS) is calculated using the two-class method, allocating earnings to common shares and participating securities[495]. - Diluted EPS considers the effect of potentially dilutive common share equivalents outstanding during the period[496].

Financial Data and Key Metrics Changes - DigitalBridge reported record fundraising of $9 billion in 2024, exceeding the annual target by 28% [6][12] - Assets under management grew from $80 billion to $96 billion, representing over 20% growth [8] - Fee revenues for Q4 2024 were $102 million, leading to a full-year total of $330 million, a 37% increase for Q4 and 23% for the full year [39] - Fee-related earnings increased to $107 million for the full year, up from $82 million, a 31% increase [43] Business Line Data and Key Metrics Changes - Management fees grew over 20% for the year and over 35% in Q4, while fee-related earnings grew over 30% for both periods [10][39] - The company raised $5.5 billion in co-invest capital to support new data center capacity, driven by cloud and AI demand [13] - The InfraBridge platform saw a reduction in fee-earning equity under management due to the end of an investment period in one of its funds [42] Market Data and Key Metrics Changes - The leasing pipeline across DigitalBridge's data center platforms increased by 22% year-over-year, with proposals rising from just over 5 gigawatts to over 6.2 gigawatts [102] - The demand for cloud and AI workloads is driving rapid growth, with leased capacity increasing from under 1 gigawatt to almost 4 gigawatts over four years [80] Company Strategy and Development Direction - The company aims to scale its business by focusing on fundraising, investing, and operational efficiency [36][94] - DigitalBridge plans to deploy approximately $20 billion into AI infrastructure in 2025, emphasizing the importance of connectivity and infrastructure for generative AI [92] - The company is launching new investment products and expanding its private wealth channel to enhance capital formation [56][90] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of delivering DPI (Distributions to Paid-In) to attract new capital, with a focus on returning capital to limited partners [24][120] - The company expects to grow fee-earning equity under management to $40 billion in 2025, with a target of 10% to 20% growth in fee-related earnings [49][51] - Management noted that development yields have stabilized, with a focus on maintaining double-digit yields in the right locations [110][115] Other Important Information - DigitalBridge's strong liquidity position includes $140 million in corporate cash and total liquidity of $440 million [41][48] - The company has secured a significant power bank of over 16 gigawatts, positioning it well for future growth [81] Q&A Session Summary Question: How does the qualified demand pipeline compare to last year? - The leasing pipeline is up year-over-year by about 22%, with proposals increasing from just over 5 gigawatts to over 6.2 gigawatts [102] Question: What are the expectations for hyperscale data center development yields and pricing in 2025? - Development yields have stabilized, and the company has not seen a retreat in yields, maintaining double-digit yields in strategic locations [110][115]