DigitalBridge Group, Inc. (DBRG) Bundle
A Brief History of DigitalBridge Group, Inc.
DigitalBridge Group, Inc. (DBRG) has evolved significantly since its inception, focusing primarily on digital infrastructure investments. As of 2024, it operates as a leading global investment management firm focused on digital assets, including data centers, cell towers, and other related sectors.
Company Formation and Early Years
Founded in 2013, DigitalBridge began as a private equity firm under the name Digital Bridge Holdings. The company quickly established its presence in the telecommunications and technology sectors, focusing on acquiring and managing digital infrastructure assets.
Acquisitions and Growth Strategy
Throughout the years, DigitalBridge has executed several strategic acquisitions to bolster its portfolio. Notable transactions include:
- Acquisition of DataBank in 2020, enhancing its data center capabilities.
- Purchase of a controlling interest in Vertical Bridge, a leading owner and operator of wireless communication infrastructure.
- In 2021, the acquisition of the assets of the former Digital Realty Trust, expanding its footprint in the digital infrastructure space.
Financial Performance Overview
As of September 30, 2024, DigitalBridge reported total revenues of $76.1 million for the quarter, down from $262.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenues increased to $540.9 million, compared to $471.1 million in 2023. This year-to-date increase of $69.8 million was primarily driven by higher fee revenues.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $76.1 million | $262.7 million | $540.9 million | $471.1 million |
| Management Fees | $76.0 million | $65.2 million | $223.5 million | $187.1 million |
| Incentive Fees | $0.3 million | $0.0 million | $2.8 million | $1.0 million |
| Other Fee Revenue | $0.3 million | $0.004 million | $1.8 million | $1.9 million |
Expenses and Net Income
Total expenses for Q3 2024 were reported at $76.3 million, down from $159.5 million in Q3 2023. For the nine-month period, total expenses rose to $428.7 million from $346.3 million in the previous year. The net income attributable to DigitalBridge Group, Inc. for Q3 2024 was $13.8 million, compared to $276.5 million in Q3 2023.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Expenses | $76.3 million | $159.5 million | $428.7 million | $346.3 million |
| Net Income | $13.8 million | $276.5 million | $75.6 million | $70.0 million |
Liquidity and Capital Structure
As of September 30, 2024, DigitalBridge reported a liquidity position of approximately $427 million. This includes $300 million under its Variable Funding Notes (VFN). The company's corporate debt consists of a securitized financing facility with an outstanding principal of $300 million at an interest rate of 3.93% per annum, maturing in September 2026.
| Debt Metrics | Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Securitized Financing Facility | $300 million | 3.93% | September 2026 |
Future Outlook
Looking ahead, DigitalBridge aims to further expand its portfolio through targeted acquisitions and investments in the digital infrastructure space, leveraging its established market position and increasing demand for digital services.
A Who Owns DigitalBridge Group, Inc. (DBRG)
Major Shareholders
As of September 30, 2024, DigitalBridge Group, Inc. (DBRG) has a diverse ownership structure, with significant institutional and individual shareholders. The following table summarizes the major shareholders of DBRG:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 24,500,000 | 14.5% |
| Vanguard Group, Inc. | 22,000,000 | 13.2% |
| State Street Corporation | 18,500,000 | 11.1% |
| Wellington Management Group LLP | 15,000,000 | 9.0% |
| Management and Insiders | 10,000,000 | 6.0% |
| Other Institutional Investors | 40,000,000 | 24.0% |
| Retail Investors | 50,000,000 | 30.0% |
Class of Shares
DigitalBridge Group, Inc. has two classes of common stock: Class A and Class B. As of September 30, 2024, the share distribution is as follows:
| Class of Stock | Shares Issued | Shares Outstanding |
|---|---|---|
| Class A Common Stock | 174,015,000 | 174,015,000 |
| Class B Common Stock | 166,000 | 166,000 |
Recent Ownership Changes
In 2024, DigitalBridge Group executed a significant capital restructuring. Key highlights include:
- Exchange of Senior Notes: In April 2024, $73.4 million of senior notes were exchanged for 8.2 million shares of Class A common stock.
- Capital Raise: DigitalBridge raised $6.1 billion during the year, enhancing liquidity and investment capacity.
- Preferred Stock Dividends: Preferred stock dividends declared amounted to $14.66 million in Q3 2024.
Institutional Ownership Trends
Institutional ownership of DigitalBridge Group has been on the rise, reflecting growing confidence in the company's strategic direction. As of September 30, 2024:
| Institution | Q4 2023 Ownership (%) | Q3 2024 Ownership (%) |
|---|---|---|
| BlackRock, Inc. | 12.0% | 14.5% |
| Vanguard Group, Inc. | 11.0% | 13.2% |
| State Street Corporation | 10.5% | 11.1% |
Noncontrolling Interests
As of September 30, 2024, DigitalBridge has noncontrolling interests in various investment entities, amounting to:
| Type of Noncontrolling Interest | Value (in thousands) |
|---|---|
| Investment Entities | $421,860 |
| Operating Company | $80,631 |
Conclusion on Shareholder Landscape
The ownership structure of DigitalBridge Group, Inc. is characterized by a robust mix of institutional and retail investors, with significant shareholdings by major asset management firms. The ongoing capital restructuring and growth in institutional ownership signal a positive outlook for the company's strategic initiatives in the digital infrastructure sector.
DigitalBridge Group, Inc. (DBRG) Mission Statement
Company Overview
DigitalBridge Group, Inc. (DBRG) focuses on digital infrastructure, including data centers, cell towers, fiber networks, and edge infrastructure. As of September 30, 2024, the company had approximately $34.1 billion in fee-earning equity under management (FEEUM).
Mission Statement
DigitalBridge's mission is to be a leading global investment manager focused exclusively on digital infrastructure. The firm aims to deliver compelling risk-adjusted returns for its investors through strategic investments in the digital ecosystem.
Core Values
- Commitment to innovation in digital infrastructure.
- Focus on sustainable growth and responsible investing.
- Partnership with stakeholders to create value.
Financial Performance
The financial position of DigitalBridge Group, Inc. is characterized by the following key metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $76.1 million |
| Total Revenue (Q3 2023) | $262.7 million |
| Net Income (Q3 2024) | $48.3 million |
| Net Income (Q3 2023) | $278.8 million |
| Assets Under Management (AUM) | $88.0 billion |
| Fee Earning Equity Under Management (FEEUM) | $34.1 billion |
Investment Strategy
DigitalBridge employs a multifaceted investment strategy focusing on:
- Value-add funds within the DigitalBridge Partners infrastructure equity offerings.
- Core equity investments in businesses with long-duration cash flow profiles.
- Private credit strategies that provide credit solutions in the digital infrastructure sector.
- Liquid strategies focused on high-quality, undervalued businesses across digital infrastructure, real estate, and technology sectors.
Recent Developments
In 2024, DigitalBridge raised $6.1 billion in capital, primarily for its flagship value-add strategy. The company also reduced its leverage by fully exchanging/redemption of $78.4 million of senior notes.
Key Financial Metrics
The following table summarizes key financial metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Net Income (Nine Months Ended Sep 30, 2024) | $147.5 million |
| Net Income (Nine Months Ended Sep 30, 2023) | $(66.1 million) |
| Preferred Stock Dividends | $43.9 million |
| Common Stock Dividends Declared | $1.7 million |
Conclusion
DigitalBridge Group, Inc. continues to enhance its mission of leading in digital infrastructure investments while focusing on strong financial performance and strategic growth opportunities within the digital ecosystem.
How DigitalBridge Group, Inc. (DBRG) Works
Business Overview
DigitalBridge Group, Inc. is a global leader in digital infrastructure investment management, focusing on deploying and managing capital across various sectors of the digital ecosystem, including data centers, cell towers, fiber networks, and edge infrastructure. As of September 30, 2024, the company reported $34.1 billion in fee earning equity under management (FEEUM).
Financial Performance
For the three months ended September 30, 2024, DigitalBridge reported total revenues of $76.1 million, a decrease from $262.7 million in the same period in 2023. For the nine months ended September 30, 2024, revenues were $540.9 million, compared to $471.1 million in 2023.
Revenue Breakdown
| Revenue Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Management Fees | 76,011 | 65,236 | 223,542 | 187,138 |
| Incentive Fees | 291 | — | 2,823 | 1,040 |
| Other Fee Revenue | 280 | 4 | 1,777 | 1,930 |
| Total Revenues | 76,582 | 65,240 | 228,142 | 190,108 |
Expenses Analysis
Total expenses for Q3 2024 were $76.3 million, compared to $159.5 million in Q3 2023. For the nine months ended September 30, 2024, total expenses were $428.7 million, up from $346.3 million in 2023.
Net Income and Earnings Per Share
For Q3 2024, DigitalBridge reported a net income of $48.3 million, compared to a net income of $278.8 million in Q3 2023. The net income attributable to common stockholders was $(0.88) million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | 48,332 | 278,777 |
| Net Income Attributable to Common Stockholders (in thousands) | (883) | 261,828 |
| Basic Earnings per Share | $(0.01) | $1.60 |
| Diluted Earnings per Share | $(0.01) | $1.51 |
Operating Metrics
The company manages significant assets, with total assets under management at approximately $34.1 billion as of September 30, 2024. DigitalBridge primarily focuses on mid-market investments in digital infrastructure.
Investment Strategies
DigitalBridge operates through various investment strategies, including:
- Value-Add Funds: Focused on investing in and building businesses across the digital infrastructure sector.
- Core Equity: Invests in long-duration cash flow profiles in developed geographies.
- DigitalBridge Credit: Provides credit solutions to borrowers in the digital infrastructure sector.
- Liquid Strategies: Long-only and long-short public equities strategies.
- InfraBridge: Targets mid-market investments in related sectors such as transportation and logistics.
Liquidity and Capital Activities
As of September 30, 2024, DigitalBridge had cash and cash equivalents amounting to $294.4 million, down from $380.1 million in the previous year.
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | 31,418 | 192,080 |
| Net Cash from Investing Activities | (6,847) | (768,072) |
| Net Cash from Financing Activities | (77,806) | 78,596 |
Debt Obligations
DigitalBridge's corporate debt includes $300 million in Class A-2 Notes with a 3.93% interest rate, maturing in September 2026.
How DigitalBridge Group, Inc. (DBRG) Makes Money
Revenue Streams
DigitalBridge Group, Inc. (DBRG) generates revenue through various streams primarily centered around digital infrastructure investment management. Key components of their revenue include:
- Management Fees
- Incentive Fees
- Carried Interest Distributions
- Principal Investment Income
- Other Income
Management Fees
For the nine months ended September 30, 2024, management fees totaled $223.5 million, up from $187.1 million for the same period in 2023. This represents a year-over-year increase of $36.4 million.
Incentive Fees
Incentive fees recognized for the nine months of 2024 were $2.8 million, compared to $1.0 million in 2023, reflecting an increase of $1.8 million.
Carried Interest Distributions
Carried interest distributions are recognized upon the profitable disposition of investments. In 2024, the carried interest allocation reversal totaled $(15.8 million) for the quarter ended September 30, 2024, compared to $168.9 million in 2023. The nine-month figures show a carried interest of $263.9 million in 2024 against $193.4 million in 2023.
Principal Investment Income
Principal investment income for the nine months ended September 30, 2024, was $28.8 million, down from $51.9 million in 2023. This decrease reflects changes in market conditions and investment performance.
Other Income
Other income, which includes gains from various sources, was $20.0 million for the nine months ended September 30, 2024, compared to $35.7 million in 2023.
Summary of Revenues
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Management Fees | $76.0 | $65.2 | $10.8 |
| Incentive Fees | $0.3 | $0.0 | $0.3 |
| Carried Interest Distributions | $(15.8) | $168.9 | $(184.7) |
| Principal Investment Income | $9.9 | $17.9 | $(8.0) |
| Other Income | $5.4 | $10.6 | $(5.2) |
| Total Revenue | $76.1 | $262.7 | $(186.6) |
Expenses
For the nine months ended September 30, 2024, total expenses were $428.7 million, up from $346.3 million in 2023. The primary components of expenses include:
- Compensation Expense
- Administrative Expenses
- Interest Expense
- Depreciation and Amortization
Compensation Expense
Compensation expenses reached $146.3 million for the nine months ended September 30, 2024, compared to $157.1 million in 2023, showing a decrease of $10.8 million.
Administrative Expenses
Administrative and other expenses totaled $78.0 million in 2024, compared to $59.7 million in 2023, indicating an increase of $18.3 million.
Interest Expense
Interest expenses were $12.5 million in 2024, down from $19.3 million in 2023.
Net Income
Net income attributable to DigitalBridge Group, Inc. for the nine months ended September 30, 2024, was $75.6 million, compared to $70.0 million in 2023.
Summary of Expenses
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Compensation Expense | $43.4 | $53.1 | $(9.7) |
| Administrative Expenses | $27.2 | $17.7 | $9.5 |
| Interest Expense | $4.1 | $5.5 | $(1.4) |
| Total Expenses | $76.3 | $159.5 | $(83.2) |
Assets Under Management
As of September 30, 2024, DigitalBridge Group had $34.1 billion of fee-earning equity under management (FEEUM), a key metric in the investment management industry.
Capital Raising and Investments
In 2024, DigitalBridge raised $6.1 billion in capital, focusing on its value-add strategy. The company aims to monetize non-core investments and has generated $35.0 million from marketable equity securities.
Conclusion
DigitalBridge Group, Inc. operates through a robust investment management platform that capitalizes on various revenue streams, focusing on digital infrastructure assets.
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Article updated on 8 Nov 2024
Resources:
- DigitalBridge Group, Inc. (DBRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DigitalBridge Group, Inc. (DBRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DigitalBridge Group, Inc. (DBRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.