DigitalBridge Announces Fourth Quarter and Full Year 2021 Financial Results
DigitalBridge Group reported $256 million in total revenues for Q4 2021 while facing a GAAP net loss of $(21) million, or $(0.04) per share. The company highlighted a successful year, rotating $78 billion in assets under management within three years and doubling revenue in its digital businesses. DigitalBridge aims to leverage its investor-operator model for future growth. Dividends for preferred stock have been declared and will be paid in 2022. A conference call on financial results is scheduled for February 24, 2022.
- Achieved $256 million in total revenues in Q4 2021.
- Rotated $78 billion in AUM in less than three years.
- Doubled revenue in digital businesses.
- Reported a GAAP net loss of $(21) million in Q4 2021.
- AFFO loss of $(5.4) million, or $(0.01) per share.
Introduces 2022 Guidance and Boosts Medium Term Targets
A Fourth Quarter 2021 Earnings Presentation and a Supplemental Financial Report are available in the Events & Presentations and Financial Information sections, respectively, of the Shareholders tab on the Company’s website at www.digitalbridge.com. This information has also been furnished to the
“2021 was a remarkable year for
The Company reported fourth quarter 2021 total revenues of
Preferred Dividends
On
On
Fourth Quarter & Full-Year 2021 Conference Call
The Company will conduct an earnings presentation and conference call to discuss the financial results on
For those unable to participate during the live call, a replay will be available starting
About
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, and may cause the Company’s actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, the duration and severity of the current novel coronavirus (COVID-19) pandemic, the impact of the COVID-19 pandemic on the global market, economic and environmental conditions generally and in the digital and communications technology and investment management sectors; the effect of COVID-19 on the Company's operating cash flows, debt service obligations and covenants, liquidity position and valuations of its real estate investments, as well as the increased risk of claims, litigation and regulatory proceedings and uncertainty that may adversely affect the Company; our status as an owner, operator and investment manager of digital infrastructure and real estate and our ability to manage any related conflicts of interest; our ability to obtain and maintain financing arrangements, including securitizations, on favorable or comparable terms or at all; the impact of initiatives related to our digital transformation, including the strategic investment by Wafra and the formation of certain other investment management platforms, on our growth and earnings profile and our REIT status; whether we will realize any of the anticipated benefits of our strategic partnership with Wafra, including whether Wafra will make additional investments in our Digital IM and Digital Operating segments; our ability to integrate and maintain consistent standards and controls, including our ability to manage our acquisitions in the digital industry effectively; the impact to our business operations and financial condition of realized or anticipated compensation and administrative savings through cost reduction programs; whether the sale of our Wellness Infrastructure business currently under contract will close on time or at all; whether we will be able to effectively deploy the capital we have committed to capital expenditures and greenfield investments; our ability to redeploy the proceeds received from the sale of our non-digital legacy assets within the timeframe and manner contemplated or at all; our business and investment strategy, including the ability of the businesses in which we have a significant investment (such as
The Company cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. The Company is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and the Company does not intend to do so. The Wellness infrastructure sale is anticipated to close by end of
CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) |
||||||||
|
|
|
|
|
||||
|
|
(unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,602,102 |
|
|
$ |
703,544 |
|
Restricted cash |
|
|
99,121 |
|
|
|
67,772 |
|
Real estate, net |
|
|
4,972,284 |
|
|
|
4,451,864 |
|
Loans receivable |
|
|
173,921 |
|
|
|
36,798 |
|
Equity and debt investments |
|
|
935,153 |
|
|
|
792,996 |
|
|
|
|
761,368 |
|
|
|
761,368 |
|
Deferred leasing costs and intangible assets, net |
|
|
1,187,627 |
|
|
|
1,340,760 |
|
Assets held for disposition |
|
|
3,676,615 |
|
|
|
11,237,319 |
|
Other assets |
|
|
740,395 |
|
|
|
784,912 |
|
Due from affiliates |
|
|
49,230 |
|
|
|
23,227 |
|
Total assets |
|
$ |
14,197,816 |
|
|
$ |
20,200,560 |
|
Liabilities |
|
|
|
|
||||
Debt, net |
|
$ |
4,860,402 |
|
|
$ |
3,930,989 |
|
Accrued and other liabilities |
|
|
928,042 |
|
|
|
1,034,883 |
|
Intangible liabilities, net |
|
|
33,301 |
|
|
|
39,788 |
|
Liabilities related to assets held for disposition |
|
|
3,088,699 |
|
|
|
7,886,516 |
|
Dividends and distributions payable |
|
|
15,759 |
|
|
|
18,516 |
|
Total liabilities |
|
|
8,926,203 |
|
|
|
12,910,692 |
|
Commitments and contingencies |
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
359,223 |
|
|
|
305,278 |
|
Equity |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
854,232 |
|
|
|
999,490 |
|
Common stock, |
|
|
|
|
||||
Class A, 949,000 shares authorized; 568,577 and 483,406 shares issued and outstanding |
|
|
5,685 |
|
|
|
4,834 |
|
Class B, 1,000 shares authorized; 666 and 734 shares issued and outstanding |
|
|
7 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
7,820,807 |
|
|
|
7,570,473 |
|
Accumulated deficit |
|
|
(6,576,180 |
) |
|
|
(6,195,456 |
) |
Accumulated other comprehensive income |
|
|
42,383 |
|
|
|
122,123 |
|
Total stockholders’ equity |
|
|
2,146,934 |
|
|
|
2,501,471 |
|
Noncontrolling interests in investment entities |
|
|
2,653,173 |
|
|
|
4,327,372 |
|
Noncontrolling interests in |
|
|
112,283 |
|
|
|
155,747 |
|
Total equity |
|
|
4,912,390 |
|
|
|
6,984,590 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
14,197,816 |
|
|
$ |
20,200,560 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Property operating income |
|
$ |
189,909 |
|
|
$ |
127,240 |
|
|
$ |
762,750 |
|
|
$ |
312,928 |
|
Interest income |
|
|
3,532 |
|
|
|
2,042 |
|
|
|
8,791 |
|
|
|
7,206 |
|
Fee income |
|
|
56,000 |
|
|
|
24,190 |
|
|
|
180,826 |
|
|
|
83,355 |
|
Other income |
|
|
6,416 |
|
|
|
1,918 |
|
|
|
13,432 |
|
|
|
12,941 |
|
Total revenues |
|
|
255,857 |
|
|
|
155,390 |
|
|
|
965,799 |
|
|
|
416,430 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Property operating expense |
|
|
78,950 |
|
|
|
47,329 |
|
|
|
316,178 |
|
|
|
119,834 |
|
Interest expense |
|
|
69,336 |
|
|
|
50,894 |
|
|
|
186,949 |
|
|
|
120,829 |
|
Investment expense |
|
|
8,230 |
|
|
|
4,323 |
|
|
|
28,257 |
|
|
|
13,551 |
|
Transaction-related costs |
|
|
3,163 |
|
|
|
1,290 |
|
|
|
5,781 |
|
|
|
5,282 |
|
Depreciation and amortization |
|
|
132,855 |
|
|
|
85,633 |
|
|
|
539,695 |
|
|
|
241,020 |
|
Impairment loss |
|
|
— |
|
|
|
8,950 |
|
|
|
— |
|
|
|
25,079 |
|
Compensation expense |
|
|
|
|
|
|
|
|
||||||||
Cash and equity-based compensation |
|
|
53,067 |
|
|
|
57,068 |
|
|
|
235,985 |
|
|
|
176,152 |
|
Carried interest and incentive fee compensation |
|
|
25,921 |
|
|
|
994 |
|
|
|
65,890 |
|
|
|
1,906 |
|
Administrative expenses |
|
|
34,256 |
|
|
|
21,637 |
|
|
|
109,490 |
|
|
|
78,766 |
|
Settlement loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,090 |
|
Total expenses |
|
|
405,778 |
|
|
|
278,118 |
|
|
|
1,488,225 |
|
|
|
787,509 |
|
Other income (loss) |
|
|
|
|
|
|
|
|
||||||||
Other gain (loss), net |
|
|
10,322 |
|
|
|
(5,861 |
) |
|
|
(21,412 |
) |
|
|
(6,493 |
) |
Equity method earnings (losses) |
|
|
85,219 |
|
|
|
36,287 |
|
|
|
127,270 |
|
|
|
(273,288 |
) |
Equity method earnings (losses) - carried interest |
|
|
29,878 |
|
|
|
6,627 |
|
|
|
99,207 |
|
|
|
12,709 |
|
Income (loss) before income taxes |
|
|
(24,502 |
) |
|
|
(85,675 |
) |
|
|
(317,361 |
) |
|
|
(638,151 |
) |
Income tax benefit (expense) |
|
|
(8,870 |
) |
|
|
18,703 |
|
|
|
100,538 |
|
|
|
47,063 |
|
Income (loss) from continuing operations |
|
|
(33,372 |
) |
|
|
(66,972 |
) |
|
|
(216,823 |
) |
|
|
(591,088 |
) |
Income (loss) from discontinued operations |
|
|
(9,493 |
) |
|
|
(239,158 |
) |
|
|
(600,088 |
) |
|
|
(3,199,322 |
) |
Net income (loss) |
|
|
(42,865 |
) |
|
|
(306,130 |
) |
|
|
(816,911 |
) |
|
|
(3,790,410 |
) |
Net income (loss) attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests |
|
|
18,934 |
|
|
|
2,932 |
|
|
|
34,677 |
|
|
|
616 |
|
Investment entities |
|
|
(57,433 |
) |
|
|
(171,592 |
) |
|
|
(500,980 |
) |
|
|
(812,547 |
) |
Operating Company |
|
|
(1,946 |
) |
|
|
(15,412 |
) |
|
|
(40,511 |
) |
|
|
(302,720 |
) |
Net income (loss) attributable to |
|
|
(2,420 |
) |
|
|
(122,058 |
) |
|
|
(310,097 |
) |
|
|
(2,675,759 |
) |
Preferred stock redemption |
|
|
2,127 |
|
|
|
— |
|
|
|
4,992 |
|
|
|
— |
|
Preferred stock dividends |
|
|
16,139 |
|
|
|
18,516 |
|
|
|
70,627 |
|
|
|
75,023 |
|
Net income (loss) attributable to common stockholders |
|
$ |
(20,686 |
) |
|
$ |
(140,574 |
) |
|
$ |
(385,716 |
) |
|
$ |
(2,750,782 |
) |
Loss per share—basic |
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations per share—basic |
|
$ |
(0.01 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.08 |
) |
Net loss attributable to common stockholders per share—basic |
|
$ |
(0.04 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.78 |
) |
|
$ |
(5.81 |
) |
Loss per share—diluted |
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations per share—diluted |
|
$ |
(0.01 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.08 |
) |
Net loss attributable to common stockholders per share—diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.78 |
) |
|
$ |
(5.81 |
) |
Weighted average number of shares |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
524,963 |
|
|
|
472,155 |
|
|
|
491,456 |
|
|
|
473,558 |
|
Diluted |
|
|
524,963 |
|
|
|
472,155 |
|
|
|
491,456 |
|
|
|
473,558 |
|
FUNDS FROM OPERATIONS, CORE FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS (In thousands, except per share data, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders |
$ |
(20,686 |
) |
|
$ |
(140,575 |
) |
|
$ |
(385,716 |
) |
|
$ |
(2,750,782 |
) |
Adjustments for FFO attributable to common interests in |
|
|
|
|
|
|
|
||||||||
Net loss attributable to noncontrolling common interests in |
|
(1,946 |
) |
|
|
(15,411 |
) |
|
|
(40,511 |
) |
|
|
(302,720 |
) |
Real estate depreciation and amortization |
|
133,813 |
|
|
|
136,245 |
|
|
|
595,527 |
|
|
|
561,195 |
|
Impairment of real estate |
|
(40,732 |
) |
|
|
31,365 |
|
|
|
300,038 |
|
|
|
1,956,662 |
|
Loss (gain) from sales of real estate |
|
(197 |
) |
|
|
(26,566 |
) |
|
|
(41,782 |
) |
|
|
(41,912 |
) |
Less: Adjustments attributable to noncontrolling interests in investment entities |
|
(89,727 |
) |
|
|
(79,874 |
) |
|
|
(535,756 |
) |
|
|
(638,709 |
) |
FFO attributable to common interests in |
|
(19,475 |
) |
|
|
(94,816 |
) |
|
|
(108,200 |
) |
|
|
(1,216,266 |
) |
|
|
|
|
|
|
|
|
||||||||
Additional adjustments for Core FFO attributable to common interests in |
|
|
|
|
|
|
|
||||||||
Adjustment to BRSP cash dividend |
|
(28,243 |
) |
|
|
(22,999 |
) |
|
|
(3,282 |
) |
|
|
200,803 |
|
Equity-based compensation expense |
|
19,416 |
|
|
|
8,288 |
|
|
|
59,395 |
|
|
|
35,051 |
|
Straight-line rent revenue and expense |
|
(1,986 |
) |
|
|
(6,403 |
) |
|
|
11,005 |
|
|
|
(19,949 |
) |
Amortization of acquired above- and below-market lease values, net |
|
(333 |
) |
|
|
(1,229 |
) |
|
|
4,002 |
|
|
|
(6,719 |
) |
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts |
|
36,685 |
|
|
|
25,034 |
|
|
|
100,159 |
|
|
|
54,459 |
|
Non-real estate fixed asset depreciation, amortization and impairment |
|
13,324 |
|
|
|
4,885 |
|
|
|
67,499 |
|
|
|
44,282 |
|
Restructuring and transaction-related charges(1) |
|
29,977 |
|
|
|
21,887 |
|
|
|
89,134 |
|
|
|
59,363 |
|
Non-real estate (gains) losses, excluding realized gains or losses of digital assets within the Corporate and Other segment |
|
(52,611 |
) |
|
|
193,948 |
|
|
|
74,747 |
|
|
|
1,104,105 |
|
Net unrealized carried interest |
|
(7,375 |
) |
|
|
(5,734 |
) |
|
|
(41,624 |
) |
|
|
(873 |
) |
Preferred share redemption loss |
|
2,127 |
|
|
|
— |
|
|
|
4,992 |
|
|
|
— |
|
Deferred taxes and tax effect on certain of the foregoing adjustments |
|
8,195 |
|
|
|
(8,764 |
) |
|
|
(50,335 |
) |
|
|
(25,835 |
) |
Less: Adjustments attributable to noncontrolling interests in investment entities |
|
(15,423 |
) |
|
|
(143,262 |
) |
|
|
(74,626 |
) |
|
|
(360,894 |
) |
Less: Core FFO from discontinued operations |
|
11,467 |
|
|
|
4,025 |
|
|
|
(149,873 |
) |
|
|
15,694 |
|
Core FFO attributable to common interests in |
$ |
(4,255 |
) |
|
$ |
(25,140 |
) |
|
$ |
(17,007 |
) |
|
$ |
(116,779 |
) |
|
|
|
|
|
|
|
|
||||||||
Additional adjustments for AFFO attributable to common interests in |
|
|
|
|
|
|
|
||||||||
Less: recurring capital expenditures |
|
(1,097 |
) |
|
|
(233 |
) |
|
|
(3,436 |
) |
|
|
(1,028 |
) |
AFFO attributable to common interests in |
$ |
(5,352 |
) |
|
$ |
(25,373 |
) |
|
$ |
(20,443 |
) |
|
$ |
(117,807 |
) |
|
|
|
|
|
|
|
|
||||||||
Core FFO per common share / common OP unit(2) |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.22 |
) |
Core FFO per common share / common OP unit—diluted(2)(3) |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.22 |
) |
AFFO per common share / common OP unit(2) |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.22 |
) |
AFFO per common share / common OP unit—diluted(2)(3) |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.22 |
) |
Weighted average number of common OP units outstanding used for Core FFO per common share and OP unit(2) |
|
546,677 |
|
|
|
536,694 |
|
|
|
541,603 |
|
|
|
537,393 |
|
Weighted average number of common OP units outstanding used for Core FFO per common share and OP unit—diluted (2)(3) |
|
546,677 |
|
|
|
536,694 |
|
|
|
541,603 |
|
|
|
537,393 |
|
__________ |
||
(1) |
|
Transaction-related costs primarily represent costs and charges incurred as a result of corporate restructuring and reorganization to implement the digital evolution. These costs and charges include severance, retention, relocation, transition, shareholder settlement and other related restructuring costs, which are not reflective of the Company’s core operating performance. |
(2) |
|
Calculated based on weighted average shares outstanding including participating securities and assuming the exchange of all common OP units outstanding for common shares. |
(3) |
|
For the three and twelve months ended |
Funds From Operations (FFO), Core Funds From Operations (Core FFO) and Adjusted Funds From Operations (AFFO)
The Company calculates funds from operations (FFO) in accordance with standards established by the
The Company computes core funds from operations (Core FFO) by adjusting FFO for the following items, including the Company’s share of these items recognized by its unconsolidated partnerships and joint ventures: (i) equity-based compensation expense; (ii) effects of straight-line rent revenue and expense; (iii) amortization of acquired above- and below-market lease values; (iv) debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts; (v) non-real estate depreciation, amortization and impairment; (vi) restructuring and transaction-related charges; (vii) non-real estate loss (gain), fair value loss (gain) on interest rate and foreign currency hedges, and foreign currency remeasurements except realized gain and loss from digital assets within the Corporate and Other segment; (viii) net unrealized carried interest; and (ix) tax effect on certain of the foregoing adjustments. The Company’s Core FFO from its interest in
The Company computes adjusted funds from operations (AFFO) by adjusting Core FFO for recurring capital expenditures necessary to maintain the operating performance of its properties.
The Company uses FFO, Core FFO and AFFO as supplemental performance measures because, in excluding real estate depreciation and amortization and gains and losses, it provides a performance measure that captures trends in occupancy rates, rental rates, and operating costs, and such a measure is useful to investors as it excludes periodic gains and losses from sales of investments that are not representative of its ongoing operations and assesses the Company's ability to meet distribution requirements. The Company also believes that, as widely recognized measures of the performance of REITs, FFO, Core FFO and AFFO will be used by investors as a basis to compare its operating performance and ability to meet distribution requirements with that of other REITs. However, because FFO, Core FFO and AFFO exclude depreciation and amortization and do not capture changes in the value of the Company’s properties that resulted from use or market conditions, which have real economic effect and could materially impact the Company’s results from operations, the utility of FFO, Core FFO and AFFO as measures of the Company’s performance is limited.
FFO, Core FFO and AFFO should not be considered alternatives to GAAP net income as indications of operating performance, or to cash flows from operating activities as measures of liquidity, nor as indications of the availability of funds for our cash needs, including funds available to make distributions. FFO, Core FFO and AFFO should be considered only as supplements to GAAP net income as measures of the Company’s performance and to cash flows from operating activities computed in accordance with GAAP. Additionally, Core FFO and AFFO exclude the impact of certain fair value fluctuations, which, if they were to be realized, could have a material impact on the Company’s operating performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005422/en/
Investor Contacts:
Managing Director, Head of Public Investor Relations
severin.white@digitalbridge.com
212-547-2777
Source:
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