DigitalBridge (US:DBRG)2024-02-20 17:33Financial Data and Key Metrics Changes - The company reported a consolidated revenue of $350 million, representing a 29% increase from the same period last year [68] - Total adjusted EBITDA was $32 million, up 88% year-over-year, primarily driven by higher fee revenues from new products and co-investments [68] - Distributable earnings were $18 million, or $0.10 per share, with fee revenues increasing by 59% year-over-year to $72 million [21][61] Business Line Data and Key Metrics Changes - The investment management segment saw fee-related earnings increase by 64% year-over-year, benefiting from new capital formation and the InfraBridge acquisition [15][61] - Monthly Recurring Revenue (MRR) increased across all four verticals, with data centers up nearly 25%, towers up 7%, fiber up 6%, and small cells up 3% [17] - Fee earning equity under management (FEEUM) grew to $33 billion, a 47% increase year-over-year, while assets under management (AUM) reached $80 billion, representing a 52% growth [21][8] Market Data and Key Metrics Changes - The company raised close to $8 billion in new FEEUM since January of the previous year, with $2.3 billion raised in the last quarter alone [4] - The fundraising environment remains challenging, yet investor interest is high, with over 200 investors engaged in the current flagship strategy [42][44] Company Strategy and Development Direction - The company is focused on scaling its digital infrastructure platform, with a target of over $7 billion in fresh capital across its multi-strategy platform for 2024 [30] - A significant portion of the $15 billion budgeted for capital expenditures in 2024 is allocated to data centers, indicating a strong commitment to this sector [34] - The company aims to enhance its corporate operating leverage and improve margins, with a focus on high-return investments [35][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fundraising trajectory and the strong demand for digital infrastructure driven by AI [42][44] - The company is preparing for future energy needs by securing power sources and focusing on renewable energy solutions for its data centers [45][46] - Management highlighted the importance of returning capital to investors as a key driver for future fundraising success [54] Other Important Information - The company successfully de-leveraged its balance sheet, reducing consolidated debt from $5.5 billion to under $400 million [69] - The transition from a diversified REIT to an alternative asset manager has simplified the corporate structure and improved financial reporting [68] Q&A Session Summary Question: How has the fundraising environment evolved? - Management noted that while the fundraising environment is tough, investor interest remains strong, with a deep pipeline of engagements [42][44] Question: What are the challenges regarding power availability for data centers? - Management acknowledged the grid's insufficiency for data center growth but emphasized proactive measures taken to secure power sources and develop renewable energy solutions [45][46] Question: Is there increased competition in the verticals targeted by DigitalBridge? - Management indicated that competition exists but expressed confidence in their ability to compete effectively at both the capital and portfolio company levels [50]