DigitalBridge (DBRG) - 2024 Q3 - Quarterly Results

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].