Caliber(US:CWD)2024-04-16 00:13Financial Data and Key Metrics Changes - For the full-year 2023, consolidated revenue increased by 8.3% to $90.9 million, primarily due to higher hospitality revenue [47] - Net loss attributable to Caliber was $12.7 million, or $0.63 per diluted share, compared to a net income of $2 million, or $0.11 per diluted share in 2022 [67] - Platform revenue for the fourth quarter was $20.6 million, a decrease of 14.4% year-over-year, due to lower asset management revenue [49] Business Line Data and Key Metrics Changes - Core asset management fees improved by 15.1% year-over-year, while asset management revenues decreased by 31.1% to $10.6 million [38][47] - Managed capital increased by 14.2% year-over-year to $437.6 million, reflecting successful fundraising efforts [38] - The company launched four new fund products in 2023, including the Caliber Hospitality Trust and Caliber's Opportunity Zone Fund [31] Market Data and Key Metrics Changes - The commercial real estate transactions were down 50% year-over-year in 2023, marking the sharpest decline since 2009 [32] - The pipeline of distressed commercial real estate is estimated at $218 billion, with $82 billion in true outstanding distress [34] - The Northern Colorado market showed extremely low levels of vacancy and high demand for new development, contrasting with other parts of the country [16] Company Strategy and Development Direction - The company aims to achieve cumulative fundraising of $750 million from 2024 to 2026 and total AUM of $3 billion by the end of 2026 [29][77] - The focus is on expanding into the wholesale fundraising channel and enhancing product offerings to capture market opportunities [30][60] - The company is positioned to provide solutions to regional banks under pressure from non-performing loans, leveraging its expertise in complex projects [62][64] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rates stopped rising in mid-2023, creating new market opportunities, particularly in land development and acquiring existing assets at a discount [5] - The company remains confident in its growth prospects despite the challenging fundraising environment due to high interest rates and regional banking issues [57][58] - Management emphasized the importance of optimizing the cost structure while continuing to support fundraising efforts [81] Other Important Information - The company has signed 26 selling agreements with regional broker dealers and registered investment advisors, significantly increasing its reach [59] - The Caliber Hospitality Trust is expected to generate approximately $10 million in fees per year once fully operational, doubling the company's overall asset management fees [37] - The company is committed to driving profitable growth and achieving $50 million in annualized total platform revenues by the end of 2026 [50] Q&A Session Summary Question: Can you specify where potential cost cuts might come from? - The company will first look to reduce G&A and non-workforce related costs, including marketing and software expenses, to create a more efficient operating model [92]