Bridge Investment Group Holdings Inc. Reports Fourth Quarter and Full Year 2023 Results
- Fee Related Earnings of $130.5 million for the year.
- 25% increase in Fee-Earning AUM to $21.7 billion.
- $3.4 billion of dry powder for investment opportunities.
- Resilient business model despite market volatility.
- Declared quarterly dividend of $0.07 per share.
- Net loss of $(87.4) million for the year.
- Negative impact on Fund management fees due to market headwinds.
- Decline in Distributable Earnings due to uncollectible fees.
Insights
The reported financial results from Bridge Investment Group Holdings Inc. highlight a mixed performance for the quarter and year ended December 31, 2023. The net income for the quarter, although modest, contrasts sharply with the significant net loss for the full year. This discrepancy suggests a volatile performance throughout the year, which could be indicative of operational challenges or market conditions adversely affecting the company's profitability.
Investors should be particularly attentive to the Distributable Earnings and Fee Related Earnings, which remained positive despite the net loss. These figures are crucial as they reflect the company's ability to generate cash that can be distributed to shareholders or reinvested in the business. The negative impact on fund management fees, primarily due to uncollectible fees from Bridge Office Fund I, reveals sector-specific headwinds that could concern investors interested in the company's exposure to the office real estate sector.
The increase in Fee-Earning AUM (Assets Under Management) by 25% year-over-year is a positive signal for the company's growth potential and its attractiveness to investors. However, the reliance on sectors such as residential rental, logistics and credit strategies may carry different risk profiles, which need to be carefully weighed against the backdrop of ongoing market volatility.
Bridge's strategic positioning, with a significant portion of its AUM concentrated in sectors driven by long-term demand, can be seen as a strength in the current economic climate. The reference to 'long-term demand drivers' suggests that Bridge is targeting segments within real estate that are expected to benefit from enduring trends, such as urbanization, e-commerce growth and demographic shifts.
The company's acknowledgment of 'volatility within commercial real estate markets' aligns with broader industry observations, where office spaces in particular face challenges due to changing work habits post-pandemic. This could potentially affect the company's future performance, especially if market headwinds persist or intensify.
The mention of 'dry powder', referring to capital available for investment, indicates that Bridge is prepared to capitalize on opportunities as they arise. The CEO's statement about the improving capital markets and deployment environments suggests optimism for 2024, which could be a signal to the market that the company anticipates a rebound or is positioned to take advantage of any market corrections.
Assessing the economic implications of Bridge's financial results, the net loss reported for the year signals potential macroeconomic challenges or sector-specific issues that have impacted the company's profitability. The reference to market headwinds within the broader office sector could be a reflection of the economic downturns or shifts in the commercial real estate market, which have been exacerbated by the pandemic and the increase in remote work.
The company's resilience, as indicated by the increase in Fee-Earning AUM, suggests that despite the reported losses, it has managed to expand its asset base, which could be indicative of effective asset management and investor confidence. The ability to maintain and grow AUM during economic uncertainty is a critical factor in assessing the company's long-term viability and competitive position within the market.
Net Income (Loss) was
Distributable Earnings of Bridge Investment Group Holdings LLC (the “Operating Company”) were
Fund management fees for the quarter ended December 31, 2023 were negatively impacted by
Robert Morse, Bridge’s Executive Chairman, stated “Despite difficult fourth quarter results, impacted by volatility within commercial real estate markets, Bridge continues to have a resilient business with Fee-Earning AUM increasing
Jonathan Slager, Bridge’s Chief Executive Officer, added “Both capital markets and deployment environments appear to be improving. We were intentionally patient throughout 2023, and we have conviction that the backdrop in 2024 offers attractive opportunity. Our
Common Dividend
Bridge declared a quarterly dividend of
Additional Information
Bridge Investment Group Holdings Inc. issued a full detailed presentation of its fourth quarter and full year 2023 results, which can be viewed on the Investors section of our website at www.bridgeig.com. The presentation is titled “Fourth Quarter 2023 Earnings Presentation.”
Conference Call and Webcast Information
The Company will host a conference call on February 22, 2024 at 8:30 a.m. ET to discuss its fourth quarter and full year 2023 results. Interested parties may access the conference call live over the phone by dialing 1-877-405-1210 (domestic) or 1-201-689-8721 (international) and requesting Bridge Investment Group Holdings Inc.’s Fourth Quarter 2023 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The event will also be available live via webcast which can be accessed here or from our Investor Relations website https://ir.bridgeig.com.
An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 p.m. ET on March 7, 2024 and can be accessed by dialing 1-877-660-6853 (domestic) or 1-201-612-7415 (international), and providing the passcode 13744084.
About Bridge
Bridge is a leading alternative investment manager, diversified across specialized asset classes, with approximately
Forward-Looking Statements
This earnings release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. All statements other than statements of historical facts may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “outlook,” “could,” “believes,” “expects,” “potential,” “opportunity,” “continues,” “may,” “will,” “should,” “over time,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Accordingly, we caution you that any such forward-looking statements are based on our beliefs, assumptions and expectations as of the date made, taking into account all information available to us at that time. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties that are difficult to predict and beyond our control. Actual results may differ materially from those express or implied in the forward-looking statements as a result of a number of factors, including but not limited to those risks described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. Bridge undertakes no duty to publicly update any forward-looking statements made herein or on the webcast/conference call or otherwise, whether as a result of new information, future developments or otherwise, except as required by law.
Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of the Company or any investment fund managed by the Company or its affiliates.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221216817/en/
Shareholder Relations:
Bonni Rosen
Bridge Investment Group Holdings Inc.
shareholderrelations@bridgeig.com
Media:
Charlotte Morse
Bridge Investment Group Holdings Inc.
(877) 866-4540
charlotte.morse@bridgeig.com
Source: Bridge Investment Group Holdings Inc.
FAQ
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