Group 1 - DigitalBridge (DBRG) shares have increased by 11.8% over the past four weeks, closing at $10.63, with a mean price target of $16.65 indicating a potential upside of 56.6% [1] - The mean estimate consists of 10 short-term price targets with a standard deviation of $2.71, where the lowest estimate is $10.50 (1.2% decline) and the highest is $20 (88.2% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 26.9% over the past month [11][12] Group 2 - The Zacks Rank for DBRG is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While price targets are often viewed as a key metric, they can mislead investors, and analysts may set overly optimistic targets due to business incentives [7][8] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement, serving as a starting point for further research [9]

Financial Data and Key Metrics Changes - Digital Bridge has grown its assets under management from less than $20 billion four and a half years ago to $100 billion today, while simplifying its balance sheet by eliminating $19 billion of debt and selling off $50 billion of real estate [9][10][11] - The company currently holds approximately $300 million in debt, which is securitized against its fee streams and funds [11] Business Line Data and Key Metrics Changes - The company transitioned from being balance sheet heavy to a more balanced approach, now described as balance sheet neutral, focusing on maximizing shareholder value through judicious capital allocation [23][24] - Digital Bridge has established new teams and strategies, including a credit team, late-stage venture growth team, and a liquid securities group, to enhance its capital deployment capabilities [14][15] Market Data and Key Metrics Changes - The digital infrastructure market is experiencing significant capital inflows, particularly in AI, with an estimated $7 trillion opportunity for AI infrastructure, which Digital Bridge aims to capitalize on [32][63] - The company is witnessing a shift in investor interest, with sophisticated LPs becoming more discerning and seeking unique, proprietary investment opportunities in the digital space [42][44] Company Strategy and Development Direction - Digital Bridge is positioning itself as a multi-strategy alternative asset manager, focusing on digital infrastructure, power, and real estate, with a strong emphasis on customer relationships and long-term contracts [15][54] - The company aims to leverage its extensive data center portfolio and customer relationships to create unique opportunities in power generation and trading, particularly in the context of the AI economy [60][61] Management's Comments on Operating Environment and Future Outlook - Management believes that digital infrastructure will continue to be a critical necessity for the global economy, driven by trends such as cloud computing, AI, and 5G [16][17] - The company is optimistic about its fundraising efforts, projecting to grow fee-earning AUM from $35 billion to over $40 billion within the year, supported by strong investor receptivity [50][51] Other Important Information - Digital Bridge has identified a significant opportunity in the power sector, with plans to build microgrids and sell excess power, which could yield higher returns than traditional infrastructure investments [58][59] - The company is also focusing on acquiring and operating investment-grade data centers, targeting a market that is currently underserved due to a shift in real estate allocations [67][69] Q&A Session Summary Question: Where does Digital Bridge fall in the balance sheet light or heavy spectrum? - Management indicated that the company is transitioning from balance sheet heavy to balance sheet neutral, focusing on effective capital allocation to maximize shareholder value [21][24] Question: How does the build-out of AI compare to previous technological shifts? - Management noted that while there are similarities in the cyclical nature of technological advancements, the scale of investment required for AI infrastructure is unprecedented, with a projected $7 trillion opportunity [32][33] Question: How sophisticated are the LPs in terms of allocating to infrastructure? - Management observed that sophisticated LPs are becoming more discerning and are looking for unique, proprietary investment opportunities rather than generic offerings [42][44]

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]