Bridge Investment (US:BRDG)2024-11-07 21:16Financial Performance - Total revenues for the three months ended September 30, 2024, were $101.5 million, a decrease of $4.8 million or 4% compared to $106.3 million in the same period in 2023 [322]. - Total revenues for the nine months ended September 30, 2024, were $309.1 million, an increase of $12.5 million, or 4%, compared to the same period in 2023 [345]. - Net income for the three months ended September 30, 2024, was $10,583 thousand, compared to a loss of $(17,894) thousand for the same period in 2023 [386]. - Distributable Earnings attributable to the Operating Company for the nine months ended September 30, 2024, was $95,890 thousand, down from $109,200 thousand in 2023, representing a decrease of 12.1% [388]. - Total Fee Related Earnings for the three months ended September 30, 2024, was $32,248 thousand, compared to $37,113 thousand in 2023, a decline of 13.1% [388]. - Total Fee Related Earnings to the Operating Company decreased by $3.7 million, or 10%, for the three months ended September 30, 2024, compared to the same period in 2023 [393]. Assets and Liabilities - Total assets as of September 30, 2024, were $1,246.8 million, down from $1,288.8 million as of December 31, 2023 [402]. - Total liabilities as of September 30, 2024, were $723.9 million, down from $743.5 million as of December 31, 2023 [402]. - As of September 30, 2024, $11.7 million was outstanding under the Credit Facility, with $138.3 million of available capacity [402]. - The Operating Company has a Credit Facility with total commitments reduced from $225.0 million to $150.0 million, with the ability to increase by an additional $75.0 million [419]. Investment Performance - As of September 30, 2024, the company has approximately $49.2 billion in Assets Under Management (AUM) [261]. - The company managed approximately 100% of multifamily properties and 66% of office properties owned by its funds as of September 30, 2024 [274]. - The Bridge Workforce Fund II saw an increase in AUM from $1.149 billion to $1.372 billion, reflecting a growth of approximately 19.5% [310]. - The Newbury Equity Partners Fund III experienced a significant decrease in AUM from $886 million to $408 million, a decline of approximately 53.9% [310]. - Total investment fair value for Multifamily Funds is $7.706 billion, resulting in a total investment MOIC of 1.63x and an investor levered net IRR of 14.3% [313]. Revenue Sources - Fund management fees decreased by $0.4 million, or 1%, primarily due to unfavorable market conditions in the commercial office sector, resulting in a total of $61.1 million for the three months ended September 30, 2024 [323]. - Property management and leasing fees decreased by $1.8 million, or 9%, due to a reduction in the number of managed properties, totaling $17.7 million for the period [324]. - Construction management fees saw a significant decrease of $1.2 million, or 40%, attributed to fewer real estate asset acquisitions, totaling $1.8 million [325]. - Fee-earning AUM as of September 30, 2024, was $21.769 billion, a slight decrease of 0.05% compared to $21.779 billion as of September 30, 2023 [310]. Expenses - Total expenses for the three months ended September 30, 2024, were $99.0 million, an increase of $10.0 million or 11% compared to $88.9 million in 2023 [333]. - Employee compensation and benefits increased by $5.6 million, or 10%, reaching $64.1 million, largely due to inflation adjustments and changes in headcount [333]. - General and administrative expenses increased by $0.2 million, or 2%, primarily due to nonrecurring transaction costs and credit losses written off related to BOF I [337]. - Loss and loss adjustment expenses increased by $4.3 million, or 144%, primarily due to a one-time loss associated with a claim in the captive insurance company [335]. Market Conditions - The Federal Reserve paused interest rate increases in Q4 2023, with inflation moderating at approximately 2.5% in 2024 [269]. - The company’s future performance may be adversely affected by economic headwinds impacting occupancy rates and valuations in the commercial office sector [266]. - The company’s ability to attract new capital is influenced by the increasing demand for private market investments and shifting asset allocation policies [264]. Capital Management - The company had $2.9 billion of undeployed capital available for future investment or reinvestment as of September 30, 2024 [312]. - Of the undeployed capital, $1.6 billion is currently fee-earning based on commitments, while $1.2 billion will be fee-earning upon deployment [312]. - The weighted-average fixed coupon rate on privately offered notes is 5.03%, while the interest rate on the Credit Facility was approximately 7.40% as of September 30, 2024 [297]. Compliance and Regulations - The Company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards [432]. - As of September 30, 2024, the Company was in full compliance with all debt covenants [428].