DigitalBridge Group (DBRG) Q2 2024 earnings summary

Executive summary

• Achieved peer-leading revenue growth and expanding operating margins, with management fee revenues up 18% year-over-year and strong capital formation, especially in AI-powered data center verticals.

• Reported Q2 2024 total revenues of $390.3 million, GAAP net income attributable to common stockholders of $77 million ($0.44 per share), and Distributable Earnings of $20 million ($0.11 per share).

• Raised $14 billion in new capital formation in 1H 2024, with $3.4 billion in committed FEEUM year-to-date, positioning to meet or exceed the $7 billion annual fundraising target.

• Portfolio includes 4 GW of capacity across 173 data centers in 84 markets, with plans to expand to 7.5 GW and 93 more data centers over five years.

• Reinforced position as a leading global asset manager in AI and digital infrastructure, with AUM up 17% year-over-year to $84.5 billion.

Financial highlights

• Fee revenue for Q2 2024 was $78.7 million, up 18% year-over-year; Fee Related Earnings (FRE) were $26.0 million, up 20% year-over-year.

• Distributable Earnings for Q2 2024 were $19.6 million, up $14.1 million year-over-year.

• FEEUM reached $32.7 billion as of June 30, 2024, up 12% year-over-year; new capital formation of $1.2 billion in Q2 2024.

• Operating margins increased from 32% to 33% year-over-year in Q2, and from 24% to 31% on an LTM basis.

• Carried interest allocation of $288 million in Q2, resulting in $75 million net carried interest revenue.

Outlook and guidance

• On track to achieve $7 billion in new FEEUM for 2024, with ~50% of fundraising expected in the last four months of the year.

• Expect higher fee income and catch-up fees in the second half of 2024, supporting FRE growth and financial targets.

• Anticipate continued margin expansion and revenue growth as additional capital is raised.

• Committed to maintaining a strong balance sheet and liquidity, and evaluating strategic M&A opportunities.