In the first quarter, DBRG achieved notable financial growth, with fee revenues climbing to $90.2 million, a jump from $72.8 million in the same period last year. This figure includes $12.0 million in catch-up fees. Additionally, the company reported fee-related earnings of $35.0 million, with a fee-related earnings (FRE) margin of 39%. These results benefited significantly from a complete flow-through on catch-up fees.
CEO Marc Ganzi highlighted the robust financial and fundraising performance, aligning with the company's 2025 objectives and long-term vision of sustaining double-digit revenue growth alongside expanding margins. Ganzi emphasized the resilience of digital infrastructure, citing it as a durable asset class that supports their portfolio's performance through various market conditions. This is driven by the ongoing demand for enhanced computing and connectivity solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for DigitalBridge Group Inc (DBRG, Financial) is $16.50 with a high estimate of $20.00 and a low estimate of $13.00. The average target implies an upside of 84.56% from the current price of $8.94. More detailed estimate data can be found on the DigitalBridge Group Inc (DBRG) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, DigitalBridge Group Inc's (DBRG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DigitalBridge Group Inc (DBRG, Financial) in one year is $9.32, suggesting a upside of 4.25% from the current price of $8.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DigitalBridge Group Inc (DBRG) Summary page.
DBRG Key Business Developments
Release Date: February 20, 2025
- Fundraising: Record fundraising of $9 billion in 2024, including $4.8 billion in Q4, 28% ahead of the $7 billion annual target.
- Assets Under Management (AUM): Grew from $80 billion to $96 billion, over 20% growth rate.
- Management Fees: Grew over 20% for the year and over 35% in Q4.
- Fee-Related Earnings (FRE): Increased over 30% for both Q4 and the full year 2024.
- Fee Revenues: $102 million in Q4, $330 million for the full year, a 37% increase in Q4 and 23% for the year.
- Fee Earning Equity Under Management (FIEM): $35.5 billion as of December 31, 2024, an 8% increase from the prior year.
- Distributable Earnings: $20 million in Q4, $53 million for the full year, an 8% increase from 2023.
- Carried Interest Revenue: Positive net carried interest revenue of $46.6 million for 2024.
- Liquidity: $140 million in corporate cash and total liquidity of $440 million including an undrawn corporate revolver.
- Capital Raised: $4.8 billion in Q4, $9 billion for the year.
- Fee-Related Earnings Margin: LTM margin increased to 32% as of Q4.
- Guidance for 2025: Expect to grow FIEM to $40 billion, FRE growth between 10% and 20%, and improve FRE margins by 200 basis points.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DigitalBridge Group Inc (DBRG, Financial) achieved record fundraising of $9 billion in 2024, surpassing their annual target by 28%.
- Assets under management grew from $80 billion to $96 billion, reflecting over a 20% growth rate.
- Management fees increased by over 20% for the year and over 35% in the fourth quarter, with fee-related earnings growing over 30%.
- The company successfully raised $4.8 billion in the fourth quarter alone, demonstrating strong capital formation capabilities.
- DigitalBridge Group Inc (DBRG) expanded its data center capacity significantly, with a focus on meeting AI and cloud demand, and secured a power bank of over 16 gigawatts.
Negative Points
- The company faced challenges in delivering financial performance in the second and third quarters of 2024.
- There was a higher than expected amount of co-investment fundraising, which impacted the ability to achieve fee-related earnings targets.
- Administrative expenses were higher than anticipated in the fourth quarter, affecting overall cost management.
- The company did not repurchase any preferred stock in 2024, despite its impact on earnings per share.
- There is a need for better communication and understanding of the value of carried interest and its impact on the stock price.
