DigitalBridge (DBRG) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were reported at $45 million, with a GAAP net loss attributable to common stockholders of $1 million, or $0.01 per share[9]. - Distributable Earnings for Q1 2025 were $55 million, or $0.29 per share[9]. - The company reported a net loss attributable to common stockholders of $0.9 million in Q1 2025, compared to a loss of $44.3 million in Q1 2024[15]. - The company reported a net loss attributable to common stockholders of $878,000 in Q1 2025, compared to a net income of $76.8 million in Q1 2024[83]. - Distributable Earnings (After Tax) for Q1 2025 were $54,704, significantly up from $19,903 in Q4 2024[100]. Revenue Growth - Fee revenues increased by 24% year-over-year to $90 million in Q1 2025, supported by fundraising for the flagship DBP[25]. - Fee Revenue for Q1 2025 reached $90.2 million, representing a 24% year-over-year increase, including $12.0 million in catch-up fees[48]. - Management Fee Revenue reached $90.1 million in Q1 2025, compared to $78.6 million in Q1 2024, reflecting a growth of approximately 14.5% year-over-year[83]. - Fee Related Earnings (FRE) grew by 79% year-over-year to $35 million in Q1 2025, indicating continued margin improvement[25]. - Fee Related Earnings (FRE) for Q1 2025 were $34.950 million, up from $19.563 million in Q1 2024, representing an increase of 78.9% year-over-year[85]. Capital Formation - New capital formation reached $1.2 billion in 2025, with $0.8 billion (72% of total) coming from commitments to DBP III[22]. - New Capital Formation amounted to $1.2 billion during Q1 2025, primarily from commitments to the latest DBP series and co-investments[48]. - DigitalBridge has closed $650 million in commitments to DBC Fund 2, with a goal to build up to $2 billion in new loans[65]. Investments and Acquisitions - DigitalBridge portfolio company Zayo announced a $4.5 billion acquisition of Crown Castle Fiber, aimed at enhancing connectivity services[25]. - The acquisition of Crown Castle's fiber business is expected to add approximately 90,000 route miles of fiber to Zayo's network, enhancing its reach to over 70,000 on-net locations[44]. - The effective entry multiple for the Zayo acquisition is expected to be lowered, making it an accretive transaction[25]. Liquidity and Debt - DigitalBridge's liquidity position includes $201 million of available corporate cash and full availability of a $300 million revolver as of March 31, 2025[48]. - DigitalBridge has a strong corporate cash position of $201.3 million as of March 31, 2025[60]. - DigitalBridge's corporate debt has a blended average cost of 3.9% per annum, with preferred stock totaling $822 million at a 7.1% dividend rate[60]. - Total assets as of March 31, 2025, were approximately $3.44 billion, while total debt principal stood at $300 million[83]. Future Outlook - The company aims for persistent double-digit revenue growth and expanding margins, driven by the demand for digital infrastructure[13]. - The current macro environment is expected to have both short- and long-term implications for fundraising and investment decisions[26]. - DigitalBridge plans to launch new digital energy and data center strategies, supporting the growth of AI, cloud, and mobile sectors[78]. Fee-Earning Metrics - Fee Earning Equity Under Management (FEEUM) increased by $4.8 billion, or 15% year-over-year, totaling $37.3 billion as of March 31, 2025[49]. - Total Fee Earning Equity Under Management (FEEUM) increased to $37.297 billion in Q1 2025, up from $35.496 billion in Q4 2024, marking a growth of 5.1%[85]. - DigitalBridge emphasizes the importance of Fee-Earning Equity Under Management (FEEUM), which represents total capital that earns management fees[122]. - The company defines Assets Under Management (AUM) as total capital for which investment management services are provided, including third-party capital[121]. Expenses and Costs - GAAP Compensation Expense for Q1 2025 was $46,110, up from $35,550 in Q4 2024, indicating an increase of 29.0%[103]. - FRE Administrative and Other Expenses for Q1 2025 were $15,946, compared to $36,974 in Q4 2024, a decrease of 56.9%[103]. - Transaction-related costs and non-core items are excluded from DE to provide a clearer picture of ongoing performance[119].