Bridge Investment (US:BRDG)2024-08-07 20:17Assets Under Management (AUM) - As of June 30, 2024, the company has approximately $48.9 billion in Assets Under Management (AUM) [221] - As of June 30, 2024, Assets Under Management (AUM) increased to $48.925 billion, reflecting a $896 million increase or 1.9% from the previous period [256] - The commercial real estate sector represented 4% of the company's AUM as of June 30, 2024, with a quarterly revenue contribution of $1.8 million from Bridge Office Fund LP (BOF I) no longer being collected [226] - As of June 30, 2024, the company had approximately $17.7 billion of carry-eligible fee-earning AUM across approximately 53 funds, with 20 in accrued carried interest positions [236] Financial Performance - The company has experienced significant growth since its establishment in 2009, driven by strong investment returns and strategic acquisitions [221] - The company’s future performance may be affected by economic conditions, including persistent inflation and high interest rates, which have created headwinds to economic growth [229] - Total revenues for the three months ended June 30, 2024, were $104.76 million, an increase of 6% compared to $98.80 million for the same period in 2023 [275] - Total revenues for the six months ended June 30, 2024, increased by $17.3 million, or 9%, to $207.5 million compared to $190.3 million in the same period of 2023 [292] Fees and Expenses - The company's weighted-average management fee varies by fund, with a low average of 0.50% and a high average of 1.99% of committed or invested capital for closed-end funds [231] - Fund management fees increased by 2% to $61.45 million from $60.32 million year-over-year [275] - Property management and leasing fees decreased by 7% to $17.76 million, down from $19.13 million [275] - Total expenses rose by $45.3 million, or 33%, to $184.0 million for the six months ended June 30, 2024, compared to $138.8 million in 2023 [301] Investment Performance - Performance allocations typically range from 15% to 20% based on cumulative fund performance, subject to minimum return levels of 6% to 8% [239] - Total investment fair value for the Debt Strategies Funds was $20.28 billion, with a total investment MOIC of 1.11x [266] - Total investment fair value for Multifamily Funds is $7,523 million, resulting in a total investment MOIC of 1.65x [264] - Unrealized performance allocations showed a loss of $43.1 million, an improvement of $83.2 million compared to a loss of $126.3 million in the prior year [297] Capital and Financing - New capital commitments raised for the six months ended June 30, 2023, included $5.1 billion attributed to the Newbury Acquisition [256] - The interest expense related to privately offered notes has a weighted-average fixed coupon rate of 5.03% [249] - The Company issued $150.0 million in Private Placement Notes in February 2023, which included $120.0 million of 5.99% notes maturing in 2030 and $30.0 million of 6.10% notes maturing in 2033 [349] - The Company maintained compliance with all debt covenants as of June 30, 2024, including a debt to EBITDA ratio of no more than 3.75x and minimum liquidity of $15.0 million [351][350] Income and Loss - The net loss for the six months ended June 30, 2024, was $9.3 million, a significant improvement compared to a net loss of $70.2 million for the same period in 2023 [338] - The company reported a total investment loss of $23.1 million for the six months ended June 30, 2024, a significant improvement from a loss of $114.5 million in the same period of 2023 [297] - Net income attributable to non-controlling interests in Bridge Investment Group Holdings LLC was $13.8 million, a decrease of $4.2 million compared to the previous year [289] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2024, was $68,043,000, compared to $72,676,000 for the same period in 2023 [335] - For the six months ended June 30, 2024, cash provided by operating activities was $68.0 million, down from $72.7 million in the same period of 2023, reflecting a decrease of approximately 9.7% [337][338] - The net cash used in financing activities for the six months ended June 30, 2024, was $61.9 million, compared to net cash provided of $153.0 million in the same period of 2023, reflecting a change of approximately 140.5% [342][343] Employee Compensation - Employee compensation and benefits rose by $6.3 million, or 11%, largely due to salary increases and additional stock compensation issued in January 2024 [284] - Employee compensation and benefits increased by $18.0 million, or 17%, largely due to salary adjustments and increased variable compensation [301] General and Administrative Expenses - General and administrative expenses include costs related to professional services, occupancy, and other operating items [245] - General and administrative expenses decreased by $3.5 million, or 27%, attributed to reduced consolidated fund-level expenses and lower insurance costs [286] - General and administrative expenses decreased by $6.0 million, or 22%, primarily due to non-recurring transaction costs related to the Newbury Acquisition [303]