Financial Performance - Total revenues for Q3 2024 were reported at $76 million, with a GAAP net loss attributable to common stockholders of $1 million, or $0.01 per share[5]. - The company reported a net income attributable to common stockholders of $13.8 million in Q3 2024, compared to a net income of $261.8 million in Q3 2023[6]. - The net income attributable to common stockholders for Q3 2024 was reported as a loss of $883,000, compared to a profit of $261.8 million in Q3 2023[34]. - Principal Investment Income reported a decrease of 42% year-over-year, with a net income of $6.5 million in 3Q24 compared to $114 million in 3Q23[26]. - Distributable Earnings for Q3 2024 were $10.732 million, significantly lower than $19.629 million in Q2 2024[39]. - Distributable Earnings (After Tax) for Q3 2024 were $10,732 million, a decrease from $32,618 million in Q3 2023[48]. Revenue Growth - Fee revenue increased to $76.6 million in Q3 2024, up from $65.2 million in Q3 2023, representing a year-over-year growth of approximately 16%[6]. - Fee revenue for Q3 2024 was $76.7 million, up 16% year-over-year, while Fee Related Earnings (FRE) increased by 42% to $26.2 million, with an FRE margin of 34%[18][22]. - Fee revenue for 3Q24 was $76.6 million, reflecting a growth of 16% year-over-year, while Fee Related Earnings (FRE) increased to $26.2 million, up from $19.6 million in 3Q23[34]. - GAAP Fee Revenue for Q3 2024 was $76,582 thousand, a decrease of 2.6% from Q2 2024's $78,605 thousand and an increase of 17.4% from Q3 2023's $65,240 thousand[51]. - FRE Fee Revenue for Q3 2024 was $76,664 thousand, down 2.6% from Q2 2024's $78,688 thousand and up 16.1% from Q3 2023's $66,058 thousand[51]. Expenses and Efficiency - Total expenses for Q3 2024 were $76.3 million, a decrease from $159.5 million in Q3 2023[6]. - GAAP Compensation Expense for Q3 2024 was $43,426 thousand, a decrease of 16.0% from Q2 2024's $51,661 thousand and an increase of 1.5% from Q3 2023's $42,186 thousand[51]. - The company reported a decrease in Administrative and Other Expenses to $27,193 thousand in Q3 2024 from $26,508 thousand in Q2 2024, reflecting a 2.6% increase[51]. - The FRE margin expanded by 600 basis points to 34% in 3Q24, indicating improved operational efficiency[31]. Fundraising and Capital Management - DigitalBridge is on track to exceed its $7 billion annual fundraising target, with $6.1 billion in committed Fee-earning capital year-to-date[10]. - New capital formation in Q3 2024 reached $1.8 billion, contributing to a total of $4.2 billion year-to-date[19][21]. - DigitalBridge anticipates $3.0 billion in fundraising for Q4 2024, with $1.9 billion already committed as of October 2024[12][15]. - The company expects to raise over $1 billion from private wealth opportunities in 2024, tapping into a global investor pipeline of over 400 engaged limited partners (LPs)[14]. - DigitalBridge has raised $6.1 billion in Fee-Earning Equity Under Management (FEEUM) year-to-date, representing a 13% increase over the same period last year, and is on track to meet its $7 billion target by year-end[11]. Strategic Initiatives - DigitalBridge is actively deploying capital across the AI infrastructure ecosystem, including investments in data centers[10]. - The company is evaluating strategic M&A opportunities focused on high-quality, accretive acquisitions to enhance its strategic profile[32]. - The company aims to enhance its investment management performance by focusing on recurring fee revenues and excluding non-core items from its financial measures[60]. - DigitalBridge has established two new signature platforms and continues to invest in existing portfolio companies, reinforcing its position in the digital infrastructure sector[16]. Assets and Liquidity - DigitalBridge's liquidity as of September 30, 2024, was $427 million, including full availability of $300 million[19]. - The available corporate cash stood at $127 million, contributing to a total liquidity of $427 million when combined with the revolver borrowing availability[30]. - Total assets as of September 30, 2024, were reported at $3.54 billion, with total corporate debt remaining stable at $300 million[30]. - The company revised its year-end guidance, projecting FEEUM to reach between $36 billion and $38 billion, up from $32.8 billion in 2023[20]. Investment Performance - The company recorded unrealized principal investment income of $(7,308) million in Q3 2024, compared to $(17,943) million in Q3 2023[48]. - Total Investments on Balance Sheet as of Q3 2024 was $2,540,029 thousand, an increase of 0.9% from Q2 2024's $2,517,653 thousand and an increase of 35.1% from Q3 2023's $1,879,981 thousand[55]. - Total commitments for DigitalBridge Partners I (DBP I) amounted to $4.059 billion, with invested capital at $4.838 billion[40]. - DBP II had total commitments of $8.286 billion and invested capital of $7.409 billion, with a gross MOIC of 1.3x[40]. - The Core fund (SAF) had total commitments of $1.110 billion and invested capital of $951 million, achieving a gross MOIC of 1.1x[40].

Investment will grow and further diversify AustralianSuper's global digital infrastructure exposure and will fund the build-out of more than 850MW of data center capacity across DataBank's portfolio to meet accelerated demand for enterprise, cloud, and A.I. workloads. DALLAS, MELBOURNE, Australia and BOCA RATON, Fla., Oct. 15, 2024 /PRNewswire/ -- DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed services, today announced a $2.0 billion equity raise led by Austra ...

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Shares of DigitalBridge Group Inc (DBRG, Financial) surged 6.10% in mid-day trading on Oct 2. The stock reached an intraday high of $14.69, before settling at $14.60, up from its previous close of $13.76. This places DBRG 30.44% below its 52-week high of $20.99 and 31.89% above its 52-week low of $11.07. Trading volume was 992,960 shares, 38.2% of the average daily volume of 2,599,458. Wall Street Analysts Forecast Based on the one-year price targets offered by 9 analysts, the average target price for Digit ...

For asset managers, it's all about assets under management ("AUM"). The business model charges a fee for every $1 of fee-earning AUM, meaning revenue and profits get driven higher by scaling AUM every year. DigitalBridge (NYSE: The equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend ticker ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the company's unaudited consolidated financial statements and detailed management discussion and analysis for the reporting period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements and detailed notes for periods ended June 30, 2024 and 2023 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets as of June 30, 2024, and December 31, 2023 Key Balance Sheet Items (June 30, 2024 vs. December 31, 2023) | Item | June 30, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :---------------------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Cash and cash equivalents | $261,173 | $345,335 | $(84,162) | | Investments | $2,517,653 | $2,476,093 | $41,560 | | Total assets | $3,502,420 | $3,562,550 | $(60,130) | | Debt | $295,315 | $371,783 | $(76,468) | | Total liabilities | $1,039,670 | $1,053,387 | $(13,717) | | Total stockholders' equity | $1,972,465 | $1,811,055 | $161,410 | | Noncontrolling interests in investment entities | $389,329 | $605,311 | $(215,982) | | Total equity | $2,442,997 | $2,491,301 | $(48,304) | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 Key Revenue and Expense Items (Q2 2024 vs Q2 2023, H1 2024 vs H1 2023) | Item | Q2 2024 (in thousands) | Q2 2023 (in thousands) | Change (QoQ) | H1 2024 (in thousands) | H1 2023 (in thousands) | Change (YoY) | | :-------------------------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Total revenues | $390,336 | $189,874 | +105.6% | $464,729 | $208,370 | +123.0% | | Fee revenue | $78,605 | $65,742 | +19.6% | $151,560 | $124,868 | +21.4% | | Carried interest allocation (reversal) | $288,244 | $79,254 | +263.7% | $279,766 | $24,498 | +1042.0% | | Principal investment income | $15,982 | $30,409 | -47.4% | $18,827 | $33,971 | -44.6% | | Total expenses | $268,503 | $132,269 | +103.0% | $352,402 | $186,889 | +88.5% | | Compensation expense—incentive fee and carried interest allocation (reversal) | $178,430 | $36,076 | +394.6% | $171,716 | $(755) | N/A | | Other gain (loss), net | $8,810 | $(11,881) | N/A | $2,916 | $(156,395) | N/A | | Income (loss) from continuing operations | $130,650 | $42,954 | +204.2% | $114,004 | $(138,782) | N/A | | Income (loss) from discontinued operations | $(722) | $(95,470) | +99.2% | $(14,842) | $(206,078) | +92.8% | | Net income (loss) attributable to DigitalBridge Group, Inc. | $91,423 | $(8,663) | N/A | $61,795 | $(206,460) | N/A | | Net income (loss) attributable to common stockholders | $76,763 | $(22,411) | N/A | $32,475 | $(234,884) | N/A | - Basic and diluted EPS from continuing operations improved significantly to **$0.44 for Q2 2024** (from $(0.06) in Q2 2023) and **$0.27 for H1 2024** (from $(1.25) in H1 2023)[7](index=7&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the company's consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023 Comprehensive Income (Loss) (in thousands) | Period | Net Income (Loss) | Foreign Currency Translation | Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | | :----- | :---------------- | :--------------------------- | :-------------------------------- | :-------------------------- | | Q2 2024 | $129,928 | $45 | $45 | $129,973 | | Q2 2023 | $(52,516) | $3,143 | $3,143 | $(49,373) | | H1 2024 | $99,162 | $(709) | $(709) | $98,453 | | H1 2023 | $(344,860) | $2,912 | $3,230 | $(341,630) | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) This section presents the company's consolidated statements of equity for the six months ended June 30, 2024 and 2023 Total Equity (in thousands) | Period | Total Stockholders' Equity | Noncontrolling Interests in Investment Entities | Noncontrolling Interests in Operating Company | Total Equity | | :----- | :------------------------- | :---------------------------------------------- | :-------------------------------------------- | :----------- | | Dec 31, 2023 | $1,811,055 | $605,311 | $74,935 | $2,491,301 | | June 30, 2024 | $1,972,465 | $389,329 | $81,203 | $2,442,997 | - Total stockholders' equity increased by **$161.4 million** from December 31, 2023, to June 30, 2024, driven by net income and additional paid-in capital, partially offset by a decrease in noncontrolling interests in investment entities due to deconsolidation of sponsored funds[12](index=12&type=chunk) - Significant activities in H1 2024 included **$91.4 million net income** attributable to DigitalBridge Group, Inc., **$66.8 million** from exchange of notes for common stock, and a **$263.0 million decrease** in noncontrolling interests due to deconsolidation of sponsored funds[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 Net Cash Generated by (Used in) Activities (in thousands) | Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------- | :----------------------------- | :----------------------------- | | Operating activities | $(4,483) | $91,850 | | Investing activities | $(17,227) | $(571,554) | | Financing activities | $(61,920) | $24,106 | | Effect of exchange rates | $(704) | $429 | | Net increase (decrease) | $(84,334) | $(455,169) | | End of period cash, cash equivalents and restricted cash | $265,916 | $581,570 | - Operating activities shifted from a **$91.9 million inflow** in H1 2023 to a **$4.5 million outflow** in H1 2024, primarily due to the operating activities of portfolio companies in the former Operating segment in 2023[14](index=14&type=chunk)[186](index=186&type=chunk) - Investing activities outflows significantly decreased from **$571.6 million** in H1 2023 to **$17.2 million** in H1 2024, mainly due to the absence of large real estate capital expenditures and the InfraBridge acquisition costs incurred in 2023[14](index=14&type=chunk)[187](index=187&type=chunk) - Financing activities shifted from a **$24.1 million inflow** in H1 2023 to a **$61.9 million outflow** in H1 2024, driven by cash settlement of Wafra contingent consideration, senior notes redemption, and investor capital redemptions[14](index=14&type=chunk)[188](index=188&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the consolidated financial statements, covering business, accounting policies, and specific financial items [1. Business and Organization](index=15&type=section&id=1.%20Business%20and%20Organization) This section describes the company's business as a global digital infrastructure investment manager and its organizational structure - DigitalBridge Group, Inc. is a leading global digital infrastructure investment manager, deploying and managing capital across data centers, cell towers, fiber networks, small cells, and edge infrastructure[21](index=21&type=chunk) - The Company operates as a taxable C Corporation and conducts substantially all activities through its operating subsidiary, DigitalBridge Operating Company, LLC (OP), in which it owned **93%** as of June 30, 2024[22](index=22&type=chunk) [2. Summary of Significant Accounting Policies](index=15&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the company's significant accounting policies, including financial statement preparation, consolidation, noncontrolling interests, and discontinued operations - The unaudited interim financial statements are prepared in accordance with Form 10-Q and GAAP, reflecting normal and recurring adjustments, but are not necessarily indicative of full-year results[24](index=24&type=chunk) - The Company consolidates entities where it has a controlling financial interest, distinguishing between Variable Interest Entities (VIEs) and Voting Interest Entities, and reassesses consolidation status each reporting period[26](index=26&type=chunk)[27](index=27&type=chunk) - Noncontrolling interests are categorized into Redeemable Noncontrolling Interests (open-end funds), Noncontrolling Interests in Investment Entities (closed-end funds and carried interest), and Noncontrolling Interests in Operating Company (OP Units held by employees)[28](index=28&type=chunk) - Discontinued operations include former real estate investments, digital infrastructure portfolio companies (Vantage SDC and DataBank) deconsolidated in December 2023, and the equity method investment in BrightSpire Capital, Inc. (sold March 2023)[30](index=30&type=chunk) - Future accounting standards include ASU 2023-07 (Improvements to Reportable Segment Disclosures), effective for fiscal years beginning January 1, 2024, and ASU 2023-09 (Improvements to Income Tax Disclosures), effective January 1, 2025[36](index=36&type=chunk)[37](index=37&type=chunk) [3. Business Combinations](index=20&type=section&id=3.%20Business%20Combinations) This section details the company's business combinations, specifically the InfraBridge acquisition, including purchase price allocation and goodwill - In February 2023, the Company acquired AMP Capital Investors International Holdings Limited's global infrastructure equity investment management business, rebranded as InfraBridge, for **$314.3 million cash** plus contingent consideration[38](index=38&type=chunk) Final Purchase Price Allocation for InfraBridge Acquisition (in thousands) | Item | Amount | | :-------------------------------- | :----- | | Cash Consideration | $365,440 | | Contingent consideration at fair value | $10,874 | | **Total Consideration** | **$376,314** | | Fair value of net assets acquired | $208,960 | | Goodwill | $167,354 | - Intangible assets acquired included management contracts (valued based on net cash flows, 1-4 year term, 8.0% discount) and investor relationships (valued based on future management fees, 12-year useful life, 14.0% discount)[41](index=41&type=chunk) - Goodwill primarily represents potential synergies from combining DBRG's capital raising resources with InfraBridge's mid-market infrastructure specialization[41](index=41&type=chunk) [4. Investments](index=23&type=section&id=4.%20Investments) This section details the composition of the company's investments, including principal investments, carried interest allocation, and marketable equity securities Composition of Investments (in thousands) | Investment Type | June 30, 2024 | December 31, 2023 | | :----------------------------- | :------------ | :---------------- | | Principal investments | $1,342,275 | $1,194,417 | | Carried interest allocation | $956,069 | $676,421 | | Marketable equity securities | $35,013 | $17,487 | | Other equity investments | $35,591 | $53,930 | | CLO subordinated notes | $48,539 | $50,927 | | Equity investments of consolidated funds | $100,166 | $482,911 | | **Total Investments** | **$2,517,653**| **$2,476,093** | - Carried interest allocation represents a disproportionate allocation of returns to the Company as general partner, recognized when fund appreciation exceeds minimum return hurdles. Unrealized carried interest allocation on the balance sheet was **$956.1 million** at June 30, 2024[45](index=45&type=chunk) - The Company had no liability for clawback obligations on carried interest allocation distributed as of June 30, 2024. However, **$181.0 million** of distributed carried interest would be subject to clawback if all investments were deemed to have no value, with **$120.7 million** being the responsibility of employee/former employee recipients and Wafra[47](index=47&type=chunk) - Marketable equity securities at June 30, 2024, include **$17.8 million** in a healthcare REIT that became publicly traded in February 2024, subject to a lock-up until August 2024[48](index=48&type=chunk) [5. Goodwill and Intangible Assets](index=25&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) This section provides details on the company's goodwill and intangible assets, including their carrying amounts and amortization expense Goodwill (in thousands) | Period | Amount | | :----- | :----- | | Dec 31, 2023 | $465,991 | | June 30, 2024 | $465,602 | | **Change** | **$(389)** | Intangible Assets (Net Carrying Amount, in thousands) | Intangible Asset | June 30, 2024 | December 31, 2023 | Change | | :----------------------------- | :------------ | :---------------- | :----- | | Investment management contracts | $53,163 | $66,011 | $(12,848) | | Investor relationships | $31,481 | $34,382 | $(2,901) | | Trade name | $2,178 | $2,393 | $(215) | | Other | $889 | $964 | $(75) | | **Total Intangible Assets** | **$87,711** | **$103,750** | **$(16,039)** | - Amortization expense for finite-lived intangible assets totaled **$7.5 million** for Q2 2024 (down from $10.9 million in Q2 2023) and **$15.8 million** for H1 2024 (down from $17.1 million in H1 2023)[54](index=54&type=chunk) [6. Restricted Cash, Other Assets and Other Liabilities](index=26&type=section&id=6.%20Restricted%20Cash%2C%20Other%20Assets%20and%20Other%20Liabilities) This section details restricted cash, other assets, and other liabilities, including accrued compensation and contingent consideration Restricted Cash and Other Assets (in thousands) | Item | June 30, 2024 | December 31, 2023 | Change | | :------------------------------------------ | :------------ | :---------------- | :----- | | Restricted cash | $4,743 | $4,915 | $(172) | | Total other assets | $70,212 | $78,953 | $(8,741) | | Prepaid taxes and deferred tax assets, net | $10,614 | $14,059 | $(3,445) | | Operating lease right-of-use asset | $29,831 | $33,898 | $(4,067) | Other Liabilities (in thousands) | Item | June 30, 2024 | December 31, 2023 | Change | | :-------------------------------------------------- | :------------ | :---------------- | :----- | | Total other liabilities | $744,197 | $681,451 | $62,746 | | Accrued incentive fee and carried interest compensation | $525,808 | $356,316 | $169,492 | | Contingent consideration payable—Wafra | $— | $35,000 | $(35,000) | | Warrants issued to Wafra | $3,200 | $39,200 | $(36,000) | | Accrued compensation | $35,309 | $63,761 | $(28,452) | - The Company has established a full valuation allowance on its deferred tax assets, resulting in no net federal income tax effect for its domestic entities[59](index=59&type=chunk) [7. Debt](index=28&type=section&id=7.%20Debt) This section outlines the company's corporate debt, including securitized financing facilities and exchangeable senior notes Corporate Debt (Amortized Cost, in thousands) | Item | June 30, 2024 | December 31, 2023 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Securitized financing facility | $295,315 | $294,267 | $1,048 | | Exchangeable senior notes | $— | $77,516 | $(77,516) | | **Total Debt** | **$295,315** | **$371,783** | **$(76,468)** | - The remaining **$78.4 million** of 5.75% exchangeable senior notes were extinguished in 2024; **$73.4 million** was exchanged for **8.2 million Class A common shares**, and **$5.0 million** was redeemed for cash[64](index=64&type=chunk) - The securitized financing facility (Class A-2 Notes) has a principal of **$300 million** at **3.933% interest**, with an anticipated repayment date of September 2026. The Variable Funding Notes (VFN) had no outstanding balance as of June 30, 2024, and its anticipated repayment date was extended to September 2025[62](index=62&type=chunk)[63](index=63&type=chunk) [8. Stockholders' Equity](index=29&type=section&id=8.%20Stockholders'%20Equity) This section details the company's stockholders' equity, including common and preferred stock outstanding and changes in accumulated other comprehensive income Common Stock Outstanding (in thousands of shares) | Class | June 30, 2024 | December 31, 2023 | Change | | :---- | :------------ | :---------------- | :----- | | Class A | 173,600 | 163,209 | 10,391 | | Class B | 166 | 166 | — | - The increase in Class A common stock outstanding was primarily due to the exchange of notes for **8.2 million shares** and the settlement of contingent consideration (Wafra) for **1.02 million shares** in H1 2024[66](index=66&type=chunk) Preferred Stock Outstanding (June 30, 2024, in thousands) | Series | Dividend Rate | Shares Outstanding | Liquidation Preference | | :----- | :------------ | :----------------- | :--------------------- | | H | 7.125% | 8,395 | $209,870 | | I | 7.15% | 12,867 | $321,668 | | J | 7.125% | 11,614 | $290,361 | | **Total** | | **32,876** | **$821,899** | - The Company does not currently have an authorized stock repurchase program. A previous **$200 million program** expired in June 2023, under which **235,223 preferred shares** were repurchased for **$4.7 million** in 2023[71](index=71&type=chunk) - Accumulated Other Comprehensive Income (Loss) attributable to stockholders decreased from **$1,411 thousand** at December 31, 2023, to **$755 thousand** at June 30, 2024, primarily due to foreign currency translation loss[73](index=73&type=chunk) [9. Noncontrolling Interests](index=32&type=section&id=9.%20Noncontrolling%20Interests) This section describes noncontrolling interests, including redeemable noncontrolling interests and those in the operating company Redeemable Noncontrolling Interests (in thousands) | Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Beginning balance | $17,862 | $100,574 | | Contributions | $1,000 | $300 | | Net income (loss) | $891 | $4,502 | | Ending balance | $19,753 | $31,920 | - Noncontrolling interests in the Operating Company (OP) are held primarily by current and former employees, with OP Units having the right to be redeemed for cash or, at the Company's election, Class A common stock on a one-for-one basis[79](index=79&type=chunk) - The Company redeemed **85,074 OP Units** in 2024 (vs. 253,084 in 2023) through the issuance of an equal number of Class A common stock shares[79](index=79&type=chunk) [10. Fair Value](index=32&type=section&id=10.%20Fair%20Value) This section provides fair value measurements for various assets and liabilities, including marketable securities and contingent consideration Fair Value Measurements (June 30, 2024, in thousands) | Item | Level 1 | Level 3 | Total | | :-------------------------------- | :------ | :------ | :---- | | **Assets:** | | | | | Marketable equity securities | $35,013 | $— | $35,013 | | CLO subordinated notes | $— | $48,539 | $48,539 | | Equity investments of consolidated funds | $77,166 | $23,000 | $100,166 | | Equity method investment (Fair Value Option) | $— | $132,952| $132,952 | | **Liabilities:** | | | | | InfraBridge contingent consideration | $— | $9,500 | $9,500 | | Warrants issued to Wafra | $— | $3,200 | $3,200 | | Securities of consolidated funds sold short | $46,260 | $— | $46,260 | - In April 2024, two single asset funds were deconsolidated, removing approximately **$263.0 million** of net assets attributed to limited partners. The Company's co-investment was restructured as an equity method investment under the fair value option[82](index=82&type=chunk) - In March 2024, three warrants issued to Wafra were reclassified to equity from liability following the removal of a net cash settlement feature, reducing the liability-classified warrants from **$39.2 million** (Dec 31, 2023) to **$3.2 million** (June 30, 2024)[85](index=85&type=chunk) [11. Earnings per Share](index=36&type=section&id=11.%20Earnings%20per%20Share) This section presents the company's basic and diluted earnings per share from continuing operations and net income (loss) attributable to common stockholders Net Income (Loss) Attributable to Common Stockholders (in thousands) | Period | Amount | | :----- | :----- | | Q2 2024 | $76,763 | | Q2 2023 | $(22,411) | | H1 2024 | $32,475 | | H1 2023 | $(234,884) | Income (Loss) from Continuing Operations per Common Share (Basic & Diluted) | Period | Amount | | :----- | :----- | | Q2 2024 | $0.44 | | Q2 2023 | $(0.06) | | H1 2024 | $0.27 | | H1 2023 | $(1.25) | Net Income (Loss) Attributable to Common Stockholders per Common Share (Basic & Diluted) | Period | Amount | | :----- | :----- | | Q2 2024 | $0.44 | | Q2 2023 | $(0.14) | | H1 2024 | $0.19 | | H1 2023 | $(1.48) | [12. Fee Revenue](index=36&type=section&id=12.%20Fee%20Revenue) This section details the company's fee revenue, including management fees and incentive fees, and their drivers Total Fee Revenue (in thousands) | Period | Amount | | :----- | :----- | | Q2 2024 | $78,605 | | Q2 2023 | $65,742 | | H1 2024 | $151,560 | | H1 2023 | $124,868 | - Total fee revenue increased by **19.6% QoQ** and **21.4% YoY**, driven by higher management fees from the third flagship fund (**$13.6 million** in Q2 2024, **$22.9 million** in H1 2024) and additional deployments in DBP I and the credit fund[93](index=93&type=chunk)[137](index=137&type=chunk) - Incentive fees increased significantly to **$1,651 thousand** in Q2 2024 (from $171 thousand in Q2 2023) and **$2,532 thousand** in H1 2024 (from $1,040 thousand in H1 2023), attributed to the liquid securities strategy[93](index=93&type=chunk)[137](index=137&type=chunk) - One fund accounted for approximately **72.5% of total revenues** in Q2 2024 and **58.4%** in H1 2024[96](index=96&type=chunk) [13. Equity-Based Compensation](index=38&type=section&id=13.%20Equity-Based%20Compensation) This section outlines the company's equity-based compensation expense, including details on the 2024 Omnibus Stock Incentive Plan Equity-Based Compensation Expense (in thousands) | Period | Amount | | :----- | :----- | | Q2 2024 | $17,641 | | Q2 2023 | $20,691 | | H1 2024 | $26,855 | | H1 2023 | $31,461 | - Equity-based compensation expense decreased in both periods compared to 2023, as 2023 included higher expenses associated with performance-based awards achieving target metrics[143](index=143&type=chunk) - The 2024 Omnibus Stock Incentive Plan was approved in April 2024, reserving **5.5 million shares** of Class A common stock for various equity awards[97](index=97&type=chunk) - Aggregate unrecognized compensation cost for all unvested equity awards was **$48.3 million** at June 30, 2024, expected to be recognized over a weighted average period of **2.1 years**[105](index=105&type=chunk) [14. Variable Interest Entities](index=41&type=section&id=14.%20Variable%20Interest%20Entities) This section describes the company's involvement with Variable Interest Entities (VIEs), including its operating subsidiary and sponsored funds - The Company's operating subsidiary, OP, is consolidated as a VIE, with DBRG as the primary beneficiary due to its majority interest and managing member role[107](index=107&type=chunk) - The Company consolidates sponsored funds where it has more than an insignificant equity interest as general partner, with exposure limited to its capital account balance (**$62.8 million** at June 30, 2024)[108](index=108&type=chunk) Assets and Liabilities of Consolidated Funds (in thousands) | Item | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Total Assets | $157,070 | $553,141 | | Total Liabilities | $55,533 | $64,210 | - Unconsolidated Company-Sponsored Funds are accounted for under the equity method, with maximum exposure to loss limited to **$2.17 billion** at June 30, 2024, and unfunded equity commitments totaling **$261.1 million**[110](index=110&type=chunk) [15. Transactions with Affiliates](index=42&type=section&id=15.%20Transactions%20with%20Affiliates) This section details transactions with affiliates, including amounts due from and to affiliates, cost reimbursements, and carried interest allocation Amounts Due From and To Affiliates (in thousands) | Item | June 30, 2024 | December 31, 2023 | | :------------------------------------------ | :------------ | :---------------- | | Due from Affiliates | $94,805 | $85,815 | | Fee revenue | $75,549 | $71,427 | | Cost reimbursements and recoverable expenses | $18,740 | $14,388 | | Due to Affiliates | $12,130 | $10,664 | | Investment vehicles—InfraBridge | $10,123 | $10,123 | - Cost reimbursements and recoverable expenses included in other income totaled **$3.3 million** for Q2 2024 and **$5.8 million** for H1 2024, when the Company acts as principal[113](index=113&type=chunk) - Carried interest allocation to Messrs. Ganzi and Jenkins (former owners of DBH) totaled **$119.4 million** at June 30, 2024, included in noncontrolling interests, representing their pre-merger equity and general partner interests[113](index=113&type=chunk) - The Company reimbursed Mr. Ganzi **$2.0 million** for Q2 2024 and **$3.1 million** for H1 2024 for variable and fixed costs of business and personal travel on private aircraft[113](index=113&type=chunk) [16. Segment Reporting](index=44&type=section&id=16.%20Segment%20Reporting) This section outlines the company's segment reporting, transitioning to a single reportable segment in 2024 - Beginning in 2024, the Company reports its entire business as a single reportable segment, aligning with how its chief operating decision makers assess resource allocation and performance[114](index=114&type=chunk) - Prior to 2024, the Company operated with two reportable segments: Investment Management and Operating. The Operating segment was discontinued on December 31, 2023[114](index=114&type=chunk) Segment Results of Operations (H1 2024 vs H1 2023, in thousands) | Item | H1 2024 | H1 2023 | Change (YoY) | | :-------------------------------------------------- | :------ | :------ | :----------- | | Total revenues | $464,729| $208,370| +123.0% | | Total expenses | $352,402| $186,889| +88.5% | | Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. | $75,599 | $(170,676)| N/A | [17. Commitments and Contingencies](index=45&type=section&id=17.%20Commitments%20and%20Contingencies) This section addresses the company's commitments and contingencies, including legal proceedings - As of June 30, 2024, the Company was not involved in any legal proceedings expected to have a material adverse effect on its results of operations, financial position, or liquidity[118](index=118&type=chunk) [18. Subsequent Events](index=45&type=section&id=18.%20Subsequent%20Events) This section discloses any significant events that occurred after the reporting period - No other subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the accompanying notes[119](index=119&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial condition and results, highlighting revenue and net income improvements, business model, fund performance, non-GAAP measures, liquidity, and capital resources - The Company is a leading global digital infrastructure investment manager with **$32.7 billion** of fee earning equity under management (FEEUM) as of June 30, 2024[124](index=124&type=chunk)[155](index=155&type=chunk) - In the year-to-date period through July 2024, the Company raised **$3.4 billion** of capital, primarily for its third flagship value-add strategy[128](index=128&type=chunk) - The Company reduced leverage by fully exchanging/redeeming its remaining **$78.4 million** of 5.75% senior notes in 2024, resulting in annual interest savings of approximately **$4.5 million**[129](index=129&type=chunk) Key Fund Performance Metrics (Inception through June 30, 2024) | Fund | Gross MOIC | Net MOIC | Gross IRR | Net IRR | | :----- | :--------- | :------- | :-------- | :------ | | DBP I | 1.6x | 1.4x | 15.1% | 10.7% | | DBP II | 1.3x | 1.2x | 13.1% | 8.4% | | SAF | 1.1x | 1.1x | 7.0% | 4.3% | | GIF I | 1.6x | 1.4x | 9.8% | 7.3% | | GIF II | 0.8x | 0.7x | <0% | <0% | | Credit I | 1.1x | 1.1x | 14.0% | 9.0% | - Total revenues increased by **105.6% QoQ** to **$390.3 million** and **123.0% YoY** to **$464.7 million**, primarily driven by significant variability in unrealized carried interest allocation[134](index=134&type=chunk)[136](index=136&type=chunk) - Net income attributable to DigitalBridge Group, Inc. improved significantly to **$91.4 million** in Q2 2024 (from a loss of $8.7 million in Q2 2023) and **$61.8 million** in H1 2024 (from a loss of $206.5 million in H1 2023)[134](index=134&type=chunk) - Fee-Related Earnings (FRE) increased by **20%** to **$26.0 million** in Q2 2024, reflecting continued growth in the investment management business and a **12% increase** in FEEUM[163](index=163&type=chunk) - Distributable Earnings (DE) increased by **$14.1 million** to **$19.6 million** in Q2 2024, benefiting from improved FRE, final proceeds from the DataBank sale, lower interest expense, and the absence of placement fee expense[164](index=164&type=chunk) - The Company's liquidity position was approximately **$427 million** at June 30, 2024, including the full **$300 million** availability under its Variable Funding Notes (VFN)[170](index=170&type=chunk) - Unfunded commitments to sponsored funds totaled **$281.1 million** at June 30, 2024[175](index=175&type=chunk) - The Company monetized marketable equity securities for **$9.8 million** in July 2024, with **$25.1 million** remaining for future monetization[183](index=183&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks from interest rates, foreign currency, and equity prices, and strategies for managing these impacts - The Company's primary market risks are interest rates, foreign currency rates, and equity prices[193](index=193&type=chunk) - A hypothetical **10% decline** in the fair value of fund investments at June 30, 2024, would decrease the OP's share of principal investment income by approximately **$121 million** and carried interest by approximately **$140 million**[194](index=194&type=chunk) - Most management fee revenue (**95% of FEEUM**) is not directly affected by changes in investment fair values, as it is based on committed or invested capital[194](index=194&type=chunk) - Foreign currency exposure is limited, primarily from the InfraBridge advisor subsidiary's operating costs in Pound Sterling, with an immaterial effect from a 100 basis point AUD/USD rate decline on a AUD 35 million equity investment[195](index=195&type=chunk)[196](index=196&type=chunk) - Interest rate risk is limited to the VFN revolver, which had no outstanding balance as of June 30, 2024[197](index=197&type=chunk) - Equity price risk from **$112 million long positions** and **$46 million short positions** in marketable equity securities is managed through portfolio rebalancing and a long/short equity strategy[198](index=198&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2024[199](index=199&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2024[200](index=200&type=chunk) [PART II. OTHER INFORMATION](index=70&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no involvement in any material legal proceedings as of June 30, 2024 - As of June 30, 2024, the Company was not involved in any material legal proceedings[202](index=202&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the Annual Report on Form 10-K for December 31, 2023 - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[203](index=203&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2024, the company issued 74 Class A common shares to a former employee for an OP Unit redemption, relying on Section 4(a)(2) of the Securities Act - In Q2 2024, **74 shares of Class A common stock** were issued to a former employee OP Unit holder in satisfaction of a redemption request[205](index=205&type=chunk) - The issuance was made in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended[204](index=204&type=chunk) [Item 3. Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[205](index=205&type=chunk) [Item 4. Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable to the Company[205](index=205&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during Q2 2024 - None of the Company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended June 30, 2024[206](index=206&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, stock incentive plans, and certifications - Key exhibits include the Restated Charter, Amended and Restated Bylaws, Articles Supplementary for Preferred Stock, the DigitalBridge Group, Inc. 2024 Omnibus Stock Incentive Plan, and certifications from the CEO, CFO, and Chief Accounting Officer[207](index=207&type=chunk)

For the quarter ended June 2024, DigitalBridge (DBRG) reported revenue of $390.34 million, down 8.1% over the same period last year. EPS came in at $0.11, compared to $0.06 in the year-ago quarter. The reported revenue represents a surprise of +302.20% over the Zacks Consensus Estimate of $97.05 million. With the consensus EPS estimate being $0.12, the EPS surprise was -8.33%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

DigitalBridge (DBRG) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.33%. A quarter ago, it was expected that this provider of asset management services to NorthStar Realty Finance Corp. Would post earnings of $0.10 per share when it actually produced earnings of $0.01, delivering ...

Financial Performance and Key Metrics - Management fee revenues increased by 18% year-over-year, contributing to expanding operating margins [3][24] - Fee-related earnings (FRE) for Q2 reached $26 million, totaling $46 million for the first half of 2024, with a target of $150 million for the full year [24][26] - Fee-earning equity under management (FEEUM) grew to $32.7 billion, a 12% increase from the previous year [25] - Total fee revenue for Q2 was $79 million, marking an 18% increase from the same period last year [25][26] - The company reported a carried interest allocation of $288 million for Q2, resulting in net carried interest revenue of $75 million [27] Business Lines and Capital Formation - The AI-powered data center vertical is a key focus, with approximately 80% of the $14 billion raised in equity and credit earmarked for investment in data center platforms [6][8] - The company has raised $3.4 billion in new FEEUM year-to-date, aligning with the previous year's performance [5][16] - The company is positioned to meet its annual fundraising goal of $7 billion, with a strong pipeline of engaged limited partners [17][39] Market Data and Trends - The global data center market is experiencing significant growth, with a projected increase in capital expenditures driven by generative AI, expected to reach upwards of $250 billion annually [10][11] - The company has a diversified data center portfolio with 4 gigawatts of capacity across 173 data centers, with plans to expand to over 7.5 gigawatts in the next five years [9][10] Company Strategy and Industry Competition - DigitalBridge aims to reinforce its position as a leading global asset manager in AI and digital infrastructure, with a focus on innovative investment solutions [38][39] - The company is actively exploring strategic M&A opportunities to enhance its platform and shareholder value [40] - The management emphasizes the importance of a diversified portfolio to meet the evolving needs of customers in the AI infrastructure space [12][15] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in meeting and exceeding fundraising targets, citing strong demand for AI infrastructure and a robust pipeline of investment opportunities [5][39] - The company is focused on maintaining a strong balance sheet and liquidity position while continuing to evaluate strategic growth opportunities [40] - Management highlighted the importance of understanding customer needs and adapting to the evolving landscape of AI and digital infrastructure [12][15] Other Important Information - The company has made advancements in corporate governance, including the addition of a new board member with relevant experience [38] - DigitalBridge is committed to returning capital to its limited partners while pursuing new capital commitments [31][36] Q&A Session Summary Question: How do we think of where DPI is headed and the ending balance at year-end '24? - Management anticipates an ending balance of FEEUM between $34 billion to $35 billion, with expectations of more inflows in the latter part of the year [41][43] Question: How is fiber going to play out in the context of AI infrastructure? - Management believes all fiber is crucial to the ecosystem, supporting various applications including home, enterprise, and long-haul transport [44][45] Question: How long do you see the demand cycle going on, and are there concerns about overbuilding? - Management noted that current CapEx is increasing, indicating strong demand, and emphasized that all new developments have customer leases attached [47][49] Question: Is the M&A environment becoming more conducive? - Management acknowledged some retreat in multiples for certain transactions but noted that quality assets continue to hold their value [51][52] Question: Will catch-up fees become a headwind next year? - Management indicated that catch-up fees will persist as part of the fundraising process, with a strong pipeline of products expected to drive growth [55][57]

DIGITALBRIDGE 1 EARNINGS PRESENTATION 2Q 2024 August 7, 2024 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 a ...