DigitalBridge Reports Q1 Citing “Strong Growth”

DigitalBridge (NYSE: DBRG) reported its first quarter metrics late yesterday followed by a conference call (held too late for this issue). CEO Marc Ganzi said the company remains on track to meet or exceed its 2024 capital formation targets. 

“During the first quarter,” Ganzi said, “we continued to deliver strong year over-year growth in fee revenue and fee-related earnings, driven by organic fundraising. Capital formation is up over the prior year and AI-led demand for digital infrastructure is catalyzing conversations with our LPs. We also advanced our simplified reporting framework this quarter and look forward to hosting investors in May at our second investor day as we continue to focus on scaling DBRG in 2024 and beyond.”

Highlights for the quarter included:

• Fee Related Earnings were $19.6 million, up 28 percent year-over-year.
• Distributable Earnings were $2.2 million, an increase from ($7.4) million in the prior year.
• Fee Earning Equity Under Management (FEEUM) of $32.5 billion, up 17 percent year-over-year.
• Fee Revenue was $72.8 million, up 21 percent year-over-year driven by higher FEEUM.
• New Capital Formation of $1.1 billion during the first quarter of 2024, driven by continuing commitments to the latest DBP Series and initial commitments to the firm’s second credit strategy.
• Run-Rate Fee Revenue of $306 million, as of March 31, 2024.
• Corporate Liquidity as of March 31, 2024 was $413 million, including full availability on the company’s $300 million VFN.
• Debt Reduction $6 million reduction resulting from exchange of 2025 Exchangeable Senior Notes; subsequent to quarter end the remaining $72M of 2025 Exchangeable Senior Notes were exchanged or redeemed.
• Capital Allocation Included funding of GP commitments during the quarter of $27 million.
• Regular Dividend of $0.01 per share of common stock was declared for the quarter

During Q1 DigitalBridge closed commitments on $1.1 billion in new capital, up 47 percent over the prior year period. Q1 fundraising was anchored by continuing commitments to DBPIII and initial commitments to the firm’s second credit strategy.