Caliber(CWD) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 2024 was $8.2 million, a 60.0% decrease compared to Q2 2023, primarily due to the deconsolidation of Caliber Hospitality, LP and the Caliber Hospitality Trust[2] - Net loss attributable to Caliber was $4.7 million, or $0.22 per diluted share, an improvement from a net loss of $5.7 million, or $0.29 per diluted share, in Q2 2023[2] - Fee-Related Earnings for Q2 2024 were reported at $(3,140,000), compared to $(3,535,000) in Q2 2023, indicating an improvement of about 11%[23] - Distributable Earnings for Q2 2024 were $(4,269,000), slightly better than $(4,286,000) in Q2 2023, showing a marginal improvement[24] - The net loss attributable to CaliberCos Inc. for Q2 2024 was $(4,730,000), compared to $(5,726,000) in Q2 2023, reflecting a reduction in losses of approximately 17%[28] - The consolidated adjusted EBITDA for Q2 2024 was $(966,000), an improvement from $(1,257,000) in Q2 2023, indicating a positive trend[26] Revenue Growth - Platform revenue increased by 24.9% year-over-year to $4.2 million, driven by asset management revenue[2] - Total revenues for the asset management platform segment increased to $4,212,000 in Q2 2024, up from $3,372,000 in Q2 2023, representing a growth of approximately 25%[34] - The company reported a total of $4,179,000 in asset management fees for Q2 2024, an increase from $3,348,000 in Q2 2023, marking a growth of about 25%[34] - The company’s performance allocation revenue for Q2 2024 was $16,000, compared to $12,000 in Q2 2023, reflecting a growth of 33%[34] Asset Management and Capital - Fair value assets under management (FV AUM) rose to $773.2 million, a 4.3% increase from December 31, 2023, due to acquisitions and market appreciation[2] - Managed capital increased by 7.4% to $469.8 million, with originations of $38.0 million and redemptions of $5.9 million[2] - As of June 30, 2024, the total managed capital reached $469,800, an increase from $437,625 as of December 31, 2023, representing a growth of approximately 7.3%[41] - The total Fair Value Assets Under Management (FV AUM) increased to $773,213 as of June 30, 2024, up from $741,190 as of December 31, 2023, indicating a growth of about 4.3%[38] - The total real estate assets under management rose to $694,300 as of June 30, 2024, compared to $647,200 as of December 31, 2023, reflecting an increase of approximately 7.3%[38] Cost Management and Savings - The company expects to achieve $6.5 million in annualized cost savings from recent initiatives, with a partial impact anticipated in the second half of 2024[3] - The company’s total expenses for Q2 2024 were $12,655,000, up from $31,406,000 in Q2 2023, showing a significant decrease in expenses[29] Development and Investments - As of June 30, 2024, Caliber was actively developing 1,940 multifamily units and 2.6 million square feet of commercial and industrial space[5] - The company completed the construction of Jordan's Lofts, a 48-unit multifamily property, with 96% of units leased[5] - Caliber received a $10 million investment into its Series D preferred equity, nearly doubling the total preferred equity invested into Caliber Hospitality Trust[5] - The company acquired land for one commercial asset in Colorado during the six months ended June 30, 2024[38] Interest and Redemptions - Interest expense for Q2 2024 was $1,315,000, compared to $1,261,000 in Q2 2023, indicating an increase of approximately 4%[28] - Originations for managed capital were $19,099 for the period ending March 31, 2024, and $18,936 for the period ending June 30, 2024, showing a slight decrease in originations[41] - The company reported redemptions of $2,819 for the period ending March 31, 2024, and $3,041 for the period ending June 30, 2024, indicating an increase in redemptions[41] Credit and Fund Management - The credit FV AUM decreased to $70,972 as of June 30, 2024, from $84,588 as of December 31, 2023, representing a decline of approximately 16.1%[38] - The company earned a fund management fee of 0.70% of the Caliber Hospitality Trust's enterprise value[42] - The company had invested $18.8 million in its funds as of June 30, 2024, compared to $18.3 million as of December 31, 2023[42] - Other managed capital, representing undeployed capital held in diversified funds, was $7,941 as of June 30, 2024, down from $9,402 as of December 31, 2023[42]