Caliber(US:CWD)2024-08-12 23:30Financial Data and Key Metrics Changes - Total consolidated revenue for Q2 2024 was $8.2 million, a decrease of 60% year-over-year due to the deconsolidation of Caliber Hospitality, LP and Elliot 10 [15] - Consolidated expenses declined by 59.7% to $12.7 million, also attributed to the deconsolidation [16] - Net loss attributed to Caliber was $4.7 million or $0.22 per diluted share, compared to a net loss of $5.7 million or $0.29 per diluted share in the same period last year [16] - Adjusted EBITDA loss for Q2 was $2.4 million, slightly worse than the adjusted EBITDA loss of $2.3 million in the prior year [17] - Total managed capital increased by $32.2 million or 7.4% from $438 million to $470 million from December 31, 2023, to June 30, 2024 [18] Business Line Data and Key Metrics Changes - Consolidated asset management revenues increased by 70.3%, offsetting some losses from other revenue streams [15] - Fund setup fees increased significantly to $665,000 from $9,000 in the prior year due to new fund offerings [17] - Fund management fees rose by 12.5% to $2.7 million, driven by an increase in managed capital and fees from the Caliber Hospitality Trust [17] - Development and construction fees decreased by 50.1% due to reduced activities compared to the previous year [17] Market Data and Key Metrics Changes - The real estate market has seen a significant drop in value, creating opportunities for acquiring income-generating assets [5] - The company is focusing on acquiring more income-generating real estate investments, with plans to close on $1 billion of assets in the Caliber Hospitality Trust [5][6] Company Strategy and Development Direction - Caliber has set three priorities for revenue growth: acquiring more income-generating real estate investments, providing more single asset investment offerings, and completing existing developments [5][8] - The company aims to return to positive EBITDA in Q4 2024 and positive net operating income in 2025 [4] - The strategy includes leveraging technology and optimizing the go-to-market strategy to enhance fundraising capabilities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium and long-term growth prospects despite current market challenges [11] - The company is focused on managing redemption requests effectively and maximizing returns for all investors [22] - Management reiterated that the $3 billion targeted AUM by 2026 remains unchanged and achievable [27] Other Important Information - The company has initiated cost reduction measures, expecting to realize $6.5 million in annualized savings starting in the second half of 2024 [11] - Caliber has made progress in refinancing its unsecured debt, having paid off approximately $4.2 million and extended $27.4 million in debt [12] Q&A Session Summary Question: Fundraising trends in Q2 - Fundraising in Q2 increased to approximately $20 million, doubling from the first quarter, driven by Caliber Hospitality Trust and retail group [20] Question: Redemption trends - Redemption requests have increased but are being managed effectively, with no forced asset sales [22] Question: Single asset investment offerings - Single asset offerings are easier for investors to understand and align with current market preferences, enhancing fundraising efforts [23][24] Question: Confidence in achieving $3 billion AUM target - Confidence in the $3 billion AUM target remains strong, with plans accounting for current market conditions [27]