DigitalBridge (DBRG) - 2025 Q3 - Quarterly Results

Financial Performance - DigitalBridge reported third quarter 2025 GAAP net income of $17 million, or $0.09 per share, and Distributable Earnings of $21.7 million, or $0.12 per share[9]. - Total revenues for Q3 2025 were reported at $93.3 million, compared to $76.6 million in Q3 2024[15]. - DigitalBridge's total expenses for Q3 2025 were $23.25 million, a decrease from $76.27 million in Q3 2024[15]. - Net income attributable to common stockholders for Q3 2025 was $16.8 million, compared to a net loss of $0.9 million in Q1 2025[90]. - Distributable Earnings (DE) for Q3 2025 were $21.7 million, a significant recovery from a loss of $18.6 million in Q2 2025[92]. - GAAP fee revenue for Q3 2025 was $93.3 million, an increase of 9.4% from Q2 2025's $85.3 million[90]. - Unrealized principal investment income for Q3 2025 was a loss of $24,872,000, compared to a loss of $55,422,000 in Q2 2025, indicating an improvement[108]. Fee-Related Earnings - The company achieved a record Fee-Related Earnings (FRE) of $37.8 million, reflecting a 43% year-over-year growth in Q3 2025[20]. - Fee Related Earnings (FRE) increased to $37.3 million in Q3 2025, reflecting a 43% year-over-year growth, with a FRE margin of 40%[41][48]. - Fee Related Earnings (FRE) for Q3 2025 reached $37.3 million, up from $32.0 million in Q2 2025, representing a 16.5% increase[92]. - Management fee revenue and fee-related earnings increased by over 20% year-over-year, excluding catch-up fees, with the 2025 FEEUM target exceeded in Q3[87]. Capital Formation and Investments - DigitalBridge exceeded its full-year FEEUM target by reaching $40.7 billion, one quarter ahead of schedule, with a year-to-date capital formation of $4.1 billion[13][23]. - New capital formation amounted to $1.6 billion during Q3 2025, primarily from data center co-invest capital[41]. - The company reported a total of $1,861.8 million in GP affiliated investments as of Q3 2025, up from $1,667.9 million in Q2 2025[102]. - The DBP Series investments stood at $528.2 million in Q3 2025, slightly down from $533.4 million in Q2 2025[102]. Market Position and Strategy - DigitalBridge is positioned to capture significant value from the ongoing investment cycle in digital infrastructure over the next three to five years[13]. - The partnership with Franklin Templeton aims to capitalize on the estimated $15 trillion opportunity in private infrastructure through 2040[26]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[91]. - The Vantage APAC platform investment of $1.6 billion aims to scale to 1GW, supporting regional expansion and the acquisition of the Johor campus[67]. Dividends and Shareholder Value - The company declared a cash dividend of $0.01 per common share, to be paid on January 15, 2026[10]. - Common dividend per share remained stable at $0.01 across all quarters reported[90]. - The company’s stockholders' equity increased to $2,052.1 million from $1,958.6 million, reflecting growth in shareholder value[104]. Balance Sheet and Financial Health - The company maintained $173 million in available corporate cash as of September 30, 2025, with full availability of a $100 million revolver[41]. - Total assets as of Q3 2025 were $3.49 billion, compared to $3.41 billion in Q2 2025, reflecting a growth of 2.5%[90]. - Total liabilities decreased to $971.4 million from $1,022.1 million, indicating a reduction in financial obligations[104]. - Corporate debt stands at $300 million with a blended average cost of 3.9%, while preferred stock amounts to $822 million at a 7.1% cost, resulting in total corporate liabilities of $1,122 million[59]. Future Outlook - The company anticipates continued growth in FRE and GAAP Fee Revenue as it expands its market presence and product offerings[112]. - The APAC market is projected to grow at a 13.5% CAGR, reaching $77 billion by 2030, with 72% of organizations linking their data strategy to AI initiatives[69]. - The company is focused on evaluating strategic, accretive M&A opportunities centered on adjacent asset managers[87].