DigitalBridge (US:DBRG)2023-02-24 22:12Financial Data and Key Metrics Changes - The company reported total consolidated revenues of $301 million for the fourth quarter, an 18% increase year-over-year [50] - GAAP net loss attributable to common stockholders was $19 million or $0.12 per share [50] - Total company adjusted EBITDA was $28 million, a 32% increase from $21 million in the same period last year [50] - Total company distributable earnings was a loss of $11 million or $0.07 per share [50] - Digital AUM was $53 million in the fourth quarter, growing by 17% from $45 million in the same period last year [20] Business Line Data and Key Metrics Changes - The company raised $22 billion in fee-earning equity under management, up 22% year-over-year [51] - Recurring Investment Management revenue and earnings increased, with fee-related earnings up 33% year-over-year [52] - Annualized fee revenues increased from $120 million to $233 million since Q4 2021 [53] Market Data and Key Metrics Changes - The company achieved approximately $28 billion in FEEUM, a 52% increase from the previous year [13] - The company expects to achieve leverage ratios in the low single digits [26] Company Strategy and Development Direction - The company established its asset management platform as the strategic growth driver, focusing on a scalable, asset-light, high-return business model [41] - The company aims to simplify its corporate profile and deconsolidate its operating segments into Investment Management [30] - The company plans to raise over $8 billion in new net capital across its platforms in 2023 [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong fundraising in 2023, driven by interest in digital infrastructure [59] - The company is focused on maintaining strong liquidity and deleveraging its business [43] - Management highlighted the importance of organic revenue growth at the asset level for long-term success [28] Other Important Information - The company executed a share repurchase program and initiated a regular quarterly dividend, with plans to increase it in the future [21] - The company has built significant balance sheet liquidity, with approximately $700 million available [25] Q&A Session Summary Question: What new swim lanes might a target fit into to expand your offering? - Management indicated they are exploring opportunities in private equity and other complementary strategies to expand their offerings [37] Question: Can you talk about how your discussions with investors have changed given the macro economy? - Management noted strong interest from existing and new investors, with verbal commitments significantly exceeding expectations [80] Question: What is the status of the deconsolidation of DataBank and Vantage SDC? - Management confirmed ongoing fundraising efforts for DataBank and indicated a strong appetite from investors for stabilized data center assets like Vantage SDC [99][100]