CLNY - Earnings call transcript Q3 2020 | DigitalBridge Group, Inc.

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Operator

Greetings, and welcome to the Colony Capital Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Severin White. you. Thank

begin. may You

Severin White

and call. Colony everyone, XXXX third earnings conference welcome morning, Capital’s to quarter Good

the today, and on President Chief Speaking call Officer. and Ganzi, is Financial Chief our Marc Executive Officer Jacky our from Wu, the company

them, Before the quickly Safe over cover I’ll I call turn the to Harbor.

number business, be statements of Some pandemic the statements our on make risks considered performance, such financial of those today we the and a including may forward-looking uncertainties COVID-XX involve and of regarding areas that operations and the that actual on for Colony update undertakes cause Xth, of results could and All to to and information this today, future differ events discussed Capital XXXX as intend duty materially. does or not call circumstances. is no effect November

refer most our Marc the in that, XXXX. the please discussed I'll for Form with filed XX, the to recent to CEO. XX-K and quarter call factors our Ganzi, in SEC our With President turn the and XX-Q risk For Marc? more September form, ended information, over

Marc Ganzi

Thanks, joining taking us the Severin, transformation about more we're this you Capital, digital Colony for of to learn and in-flight time morning on. thank all and and

business. shareholders, of ask I'd at busy so the a update. made playbook. it's to get continuing of case with the see like today, progress you been don't to please to start to study turn materials, the an Look, progress we business want value Jacky, And and some to in the our grow DataBank, to and page to we've will to that terms we going we're highlight the the the our business quarter, our results made I'd edge. accomplishments how we've walk it X. our again, incredibly digital turn agenda I'd I'm key of quarter. right like going creating In who into to why where I with from for our some in highlight I'm digital over revenues you financial through XQ finish and our digital today and on

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for we're able Colony agreement a shareholders, step legacy equity value significant is our in pressures today. sector facing assets. It achieve to harvesting First, our the sell the we despite business. that One, are signed positive an lodging hospitality to

reduced Second, by consolidated our billion. $X.X debt we

important the of is most road. delevering business as down us know, you incredibly me, to it positions success As for the

This non-core the simplification the of removing from narrative. asset. to business we're our Lastly, core is distraction a

the right across and the deal a X national with Tier tripling the of our side rotation, up the digital XX center investing from some -- made locations, It's X,XXX. footage side, here. XX,XXX why is operator DataBank the data other zColo. just On really it's XX you're we that's transforms into This of great the DataBank's and not Tier cross-connects have square United X leading this scale in edge $X.X States. which about progress cross-connects. quarter, markets, last footprint We've and billion acquisition that

I'll later, networks are this As customers' evolving was is at you over the support financed of big $XXX how $XXX our financing deal million maintaining changing. our when million debt how addition of balance The million look $XXX explain in and ownership with and deal sheet is pays architecture capital, our fee to XX% co-investment acquisition. along new carry, in with a stake, capital arranging us to that

that Finally, today. at We platform later the digital to is bit a in and accretive is attractive this levels proof and is talked acquire highly about assets our critical. deal high-quality our positive, explore more very DataBank we'll and accretive which presentation this ability to

a of debt, represents narrative is sheet. the of balance for our hospitality business; the deal slide Between the of shedding a our a Next deleveraging we these milestone priorities: key simplification. reduction. sale and hospitality The The story around the really one, resolution a sale two my and portfolios billion significant are and XX% simplifying business, two, that's business of please. $X

annual and Our million in savings. G&A and over generate interest annual debt-to-asset $XXX will over to by $X XX% will ratio million decrease from cash declined XX%

credit entire equity at and to total attention this value Colony business. on within for noting, critical team for X% $X.X I this of value, We transaction billion, and the Schwartz from Colony balance getting done. it's achieved Dave sheet. value transaction the give our successfully positive of the that also sale shareholders to carrying worth the And want special was lodging

Next page please.

a go and deeper the DataBank story let's of So into combining little zColo.

of Our digital give story a really what the for some our is in to deal acquisition assets. you context here, quarter building in exposure terms this The the presented map transformative table is. of high-quality zColo the of

First the customers only opportunity locations, for three which us times the work increases the our number with to of on edge.

footprint Second, Tier X it a gives us and across national X XX Tier markets.

DataBank is and provider edge this of increasingly resources as content of their their and colocation companies choice. is compute scale Third, closer kind hyperscale technology relevant, nodes customers. to locate

customers integrating Zayo, them. on this on data at track center fiber. and and team experience assets, company the the acquiring posting core these DataBank laser-focused been you do most their The of and to One building and of of his deal record in serve Raul which organic the given has have Martynek focus consistent to will year-over-year, team to with were exciting not to what aspects see past. a be in acquisitions growth as the demonstrated edge premier we've They really

we for controlling some DataBank's this also our both in are seller, It's Fund parties. the As The a of noting, transaction win-win Digital worth is given ran process working interest. Partners know, Zayo. of really for concert Colony shareholder the EQT zColo, you sale with

at honored increase as phase lead it growth. revenues billion enterprise Zayo of fiber helps next to be $XXX We're continue to of great its divest what leading my agreeing to across this core additional fiber thank over and helping running see that While become is at partner, great of DataBank we fund two input to the And thrilled. core his many to can thesis transition in Smith of what the investing Caruso into of our Equinix all new non-core sauce can of billion. folks at want times including always simplification. these when roots, -- the million building Steve Steve I fiber. CEO. Dan Steve to of Board for of investors XXx liquidity ask was value great which the in they great Steve impressive a of vital Caruso the Steve and he from Smith, It the of to day, it going fiber forward Smith solutions all about to enterprise well. secret generates increase having $X now, call customers $X.X Dan it in Digital end in perspective and weeks services to us connectivity We privileged business. its stuff core look fiber tell was also Dan at of leaders of into verticals it businesses was I record from was Europe. We've U.S. member Raul got will Colony of Zayo, about and Martynekm more as a telegraph them, Steve's excited businesses. returning wholesale couldn't accretive and Zayo Look great a be our we about ago our Zayo, use to Zayo and to as are future metro billion scale is founder of business, leaders, my the and and growth, really their do our of today as happening right asset I'm billion There's partner equity an all and delever the provider see growth Zayo. from XX the long-haul, announcement $X.X track to lot and $XX

please. slide Next

lot of happened every quarter promises you that you made let's of the to slide, like our things So, the A I so would some refresh seem and inside like of to quarter. slide. promises get kept to share with it this have

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an Second, markets We SDC transaction the what of we've rate invest SDC completed the $XXX interest million a Vantage all-in financing closed securitization $XX we continued $X.X entire a watershed improved cash it. annualized assets. rate portfolio closing this Stabilized quality Vantage at investment X.X%. portfolio ago increased derived to call is drives the digital from lower high Vantage This IRRs a a flows year. billion about and of month in in Data Center million for

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million mentioned of million to we've also of balance $XX OE&D year the and million I Lastly, billion streamlining expect million against And $X.X original lead our coinvest. G&A $XXX for acquired plan. $XXX sheet $XX million legacy of million for incremental $XXX exceeding year-to-date. $XX previous in monetizations achieved while projected invested this transaction, zColo a year-to-date budget We've organization. our on as our pages, $XXX savings Harvesting we generating we and assets full to $XXX save to million XXXX. from million

sale XX%. raised digital doubled on was in I've Last but exceeding billion our sold guidance debt the led shedding $X.X this core hotels about more delivering year-to-date and raised after growth of hospitality of billion lot debt FEEUM X/XX/XXXX. and year-to-date. performance $X.X reducing billion not billion growth, metric, least, than in terms a that our of and $X.X by FEEUM of Our net XX% $X.X net talked our organic promise in FEEUM narrative our growth on quarter load XX%

we of course was pending incremental of and DataBank. $XXX have an Vantage All And million raised in Vantage coinvest Inside in enhances our and other we balance economics million coinvestment as Europe. well. in like mentioned capital quarter, SDC this we commitments $XXX vehicles for the from sheet

fundraising. in So was quarter great it a

to continues So in Execution it Jacky silos. to to of key to a the inside perspective each quarter. is execution. of our about and is today. going proud my these their people are all at of going the end with story of very you, finance walk our turn the be I'm section it us of I'm And delivering the to in who important Thank from over progress thing, the presentation that, most day, Jacky. our about

Jacky Wu

you, good Thank and everyone. Marc morning,

our AUM available As third filed third is progress quarter digital the Public anticipated supplemental assets basis on our digital Page make the our in continued website. of a to sale the in to of on with including portfolio. Digital report under total earnings, morning, hospitality to of financial a increased we which and quarter Shareholders and its the of XX% XX% release reminder, a transformation. company pro this The the section management results third total has pending of over AUM end XX. within of addition transactions the quarter at Starting forma

$XXX quarter, For from $XXX a reported represents third million. the second total quarter increase XX% revenues million, revenues were of which

is share. the this asset business same the is from in sequential our improvement The legacy funds as assets. well as quarter, marked positive in digital $XXX COVID third it second pandemic driven is or While XX% by charge common primarily from a primarily attributable $XX performance to impairment on period result due last still a year, from the recognition Total the was a losses impacts net loss well of significant $X last decrease quarter, as improvement of This legacy excluding from million of as $X.XX and million to per quarter. legacy our on assets sales. on stockholders operations gains loss a GAAP turned improved a last our $X core company as legacy continued million growth billion our the the quarter. from was

to Turning XX. Page

further transformation, digital and are prior now we segments: financial digital digital we The to results our the our emphasizing legacy our growing other. business to been investors. operating disclosures order business, while separated digital to our the streamlining for three in management, transparency digital into has segment As provide digital investment continue simplify and also

the We package in additional financial disclosures introduced this also digital supplemental quarter.

IM equity of management through fees, and consists management capital. generated the third-party investment digital our recurring of First, our performance

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as into future segment, investments. continue this grow balance direct will deploy we We to capital sheet

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unchanged. remains segment that So

Colony Real However, segment other. equity and combining named Estate debt we are management, investment the other and segment new Credit a other to

provide change segment is similar and a that We Hospitality the will have digital to it discontinued the but of focus continue sale pending to Marc operations, the reflects longer transaction forward. previously given this discussed. subsegment business going we disclosures no moved

to Page XX. Moving

corporate from core continued company driven core third approximately the positive rebound execution of of the to losses the During gains quarter, million. excluding continued FFO The $X of by impact FFO, COVID, and generating was our strategy. improvement

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million during Looking to $XX adjusted the and increased at third digital the the earnings right side fee-related page, of EBITDA consolidated quarter.

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to page are our Turning growth we digital XX, guidance. XXXX reiterating

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are of acquisition those acquisition achieving of just Stabilized goals. commitment Centers, our two Data as announced our Our Vantage as recently examples well of zColo to

to Turning XX. page

AUM with year increased $XX made digital of digital towards XX% Digital to great our transformation. has XX% from progress AUM AUM. total this year-to-date, billion increasing We have

Digital since In $XX legacy $XX Colony, fact, rotated transitioning to $XX billion has Colony in inception the over over Capital increasing digital of billion billion AUM, assets. while of AUM,

exceeding guidance Moving year. year. pending Again, XXXX. $XXX transactions, for the XX% raised the beginning equity over will Zayo to announced the of our acquisition recap, digital set growth at original forth this XX. in and To XX% Page fee-earning far fee-earning of in equity earlier we Including achieved million we have our

We over platform quarter. data of fee-earning also $XXX our third raised equity for million through the center net Vantage

equity expect zColo fee-earning management be to digital and our under transactions, robust. fourth continues equity fundraising fourth fee-earning to to, transactions, pending M&A as $X.X Including which of million we net be will additional pipeline more fundings. Additionally, billion quarter $XXX and approximately have raise quarter in to pending Vantage platform additional plenty include an look these for we forward our and the

Turning to page XX.

previously liquidity our Wafra acquisitions. us digital new our powder convertible of towards with all accelerate of and original our transformation discussed, a and maturity and to elimination we has partnership notes As deploy revolver allowed digital facility, our XXXX execution risks dry eliminated

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digital Marc, details guidance on those playbook. In million addition, that that This XX% which zColo it And contract. over like that, driven and million estimate million million expectations I where $XX to is already I'd $XXX our disclosed assets is thrilled, by of $XXX by increase of quarter. at growing under the we With legacy M&A includes he our a Thanks. in liquidity improvement our such our back we $XXX lay we now see last million to monetization pipeline. fourth year-end, higher acquisitions still will digital over monetize the as over to ending out expected $XXX turn to with quarter, am further will continued

Marc Ganzi

this portfolio create demonstrates companies bring Colony I'd on. final on you we as to like value through case the we discuss, that The how our ultimately for shareholder. Colony is focused a a and to opportunities growing DataBank. we're believe, edge the Thanks, you by taking at Jacky. In this study I section,

please. slide Next

to has some give break better edge want talking I important. months. context. the the down for XX we edge want us, really about for the what explain it of the you it's and last to First, why been means really part Everyone And and

of upper slide in Let page me on start this the XX. left

rapidly next last just While XX and that's from growth come. years the will to and been computing, over exceptional beyond, are the artificial communications, computers to out yet in demand Machine-to-machine the cases IoT, is systems continue the compute of cause grow years, move demand as In to deployed. applications AI, what's which perspective lab Things, of underappreciated underpins use five intelligence for my Internet skyrocket. cloud

little bring data the networks. in to The the send end changes back is speeds answer and device all back mobile a where the on to right resources in decentralized This to here. that more not applications have this the to to greater close It's from? shift definition our is it's trend. and architecture important the the user. time. network already demand time is efficiency. of cycle short-term part already It's you edge don't prevalent to a over latency, the forcing that. consumer really coming new a that the computing Moving exactly edge lower to does headquarters. Well, been These of new bit focusing really in to interacting faster Shifting real we'll distributed compute that enterprise come course, the It's is right in migrate from network require right use compute the at edge. which cases a upper that's from with need to see been back Where belief focus of customer means than as it's that COVID. these lower model This come real compute time, has data never increasingly is of and multi-decade to

graphic drive server Lastly in left lower will see We've in you'll ultimately the strong deployment. lower growth left. edge as

DataBank's estimates globally. for will As in that highlights next data opportunity over helped edge today. sitting That's our that acquisition realize servers up around the huge the this team. This eight XX% phenomenal X% is X.X management around the over and we workloads world. centers Cowen of edge zColo it's from of a little support million over years chart edge alongside transformative DataBank, opportunity servers center company underpins that That's portfolio cloud a data

boost deal you management fee Next that fully investment outlined carry-bearing the public blended This $XXX sheet even years, reduce highs. core slide on peers the market of it this digital economics yield Last multiple we next to investment times. we've co-investment basis, driving to day our one. to please. which playbook in assets is the asset-light at the earnings. transaction million quarter the But the Stabilized Colony associated And Vantage yield it's hybrid the multiple times detailed today's around Those strategy. million Well, Center management FFO I've high top built a is trading benefit our exactly first, below perspective true to the DataBank all-time as we $XXX returns to my to couple of numbers. let's enhanced from over ran our our original to will multiple, shareholders. of was times quality our cover action transformative and well nature of economics of infrastructure Co. XX Data model here growth by is our the accomplish our accretive with shareholders. effective are acquisition migrates investment north XX X% The by difficult capital, on our raised very benefits XX% entry What's core From On and solid same FFO Colony to earlier. stabilizes capture here investment, where earnings shareholders XX interesting similar equity balance core zColo a XX%. doesn't in

slide please. Next

provider the by Colony to transform XXXX, key value data from operator center Digital value-add three helped alpha today. the data The just our center team of value talked how regional So really a it strategies Midwestern across position zColo our before. Digital about Colony adding playbook. the create is example latest case areas. we've here DataBank is of study all creating has in a about edge national and Since scale It's we

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of operating incredible. I've Martynek partners, became XXXX. XXXX our One our key in since Raul CEO is Raul known who

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Next slide please.

networks. other centers the enabling with cell that executing So of to of sync towers. the today tsunami with Look the that on traffic is road is facets modular strategic but deals XX has of a companies how really the data forefront today. this centers Bridge's story to Colony gives next-generation Vertical data benefits part micro deal DataBank's locations the a position Vertical important the are scaled into converged also with base portfolio really national base footprint Not and we of at investments is in edge is of see digital locations EdgePresence networks. million zColo is and The We're of evolution the Colony being be tower our global one over the with at of down acquisition converged coming strategic already locations From Colony one edge from the $XX on-ramps the it across in-flight Digital EdgePresence this at deploy These interesting really to Bridge, making at that the about the computing. investment in towers. Internet to business, us a United EdgePresence Vertical only their the far their X,XXX highlights located demand Bridge profile perspective my States of ecosystem. partnering of DataBank DataBank

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please. Next page

finish Where This this back to you to want last commitments? last ended we? me shareholders. are I How we are our for So our commitments. That where which let is on to my keep continue you. did through is we're quarter, slide to summarize first as going quarter. we for deliver look a as coming management commitment the you to is our the do on So team we best to can thing following

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Operator

proceed [Operator KBW. first with Instructions] Rahmani Our Jade comes your with Please question from question. --

Jade Rahmani

much. Thank you very

split investment which does the Digital are legacy where think generally what about elevated a a speaking, shareholder or valuations better Bridge Colony deal have between talked mentioned, may flow? you the pipeline. might investment the with what some novo interest, do in proprietary originations? call or perspective, you de considering economics you Deals How from and You it space? And respect to history digital in

Marc Ganzi

Hey. are Marc. How you? Jade it's

Jade Rahmani

Thanks. Great.

Marc Ganzi

five executed. In into were next was there all will those a deals banker the of Digital was fall total of those $XX those never through in accruing words, proprietary that other billion proprietary. got have or not we in value. the been five of So, our deals say about process XX deals has either look, are a pipeline. Jade. source busier the would pipeline about finalized, been a about pipeline of in I enterprise being And there not today, them to of We've quarter, transactions currently the broker, Colony involved where

really we're my to from with sector. are way our our relationships create running but is, them for is in to to great our to CEOs really and making best that knitting think the the our do value our for choice, that's to today sticking shareholders And our So that the we been narrative overheated can that. of of us. a relationships, which to well pitch because that auctions, worked And really partner focusing not are capital perspective, continue we I access on experience, best going that's

If XX made of XX Fund look and transactions we eight you investments X, progress the out proprietary. look at Jade, were in those you X of the Fund at

do. is just we don't auctions, creating certainly in looked to we're that this And has Jade, We've those quarter. This deals, We moment this being it's And lot proprietary. got a the history. auctions disciplined. big look we a done, at all deal a suggest we to of next of time record be track Look, five team at in the price at great doing so as of proprietary not that look flow. believe

to on high deal And right now. high be. focus is so, degree to Big And proprietary maintain of focus our where that's going flow. pipeline, discipline a

Jade Rahmani

supplement other or capital potentially split new investments? capital available finding liquidity, between preferreds base? to that do you capital what for and redeeming, thoughts around, much leverage to are investment? capital raising about you think new When ways how third-party priorities and versus that And How investments is reduce current making your excess

Marc Ganzi

of Once Thanks. like again, a broken bit record. it's a almost

alongside capital always trying made on bit not that to we I'm at So And management the execute in did to continue a ways, in scene year this Mark we Hedstrom, first and is, can and would on in certainly quarter. the quarter And deploy of that look first, be to myself, you evasive later. and I we right? part team quarter. Tom and what to to say we Jacky Jade. second delever sheet little the further last different third we And the we're way all when with So a look, get this Barrack fourth into But first. we balance Wu came of on it priority the detail,

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revolver. you presentation million day And we our end great close $XXX so out the today our of at almost privilege liquidity total the as access have Jacky having of the of factor in to pointed when in to

in we best investment, is last zColo, deploy question EdgePresence, in have Co, idea quarters opportunities? now, are what the get capital. sheet largely, capital through a certain we and we third-party of I type investor if And likes I for capital. and if with our great a we and Jade and that balance opportunity, go we And cash process to mixture group mean get of evidenced we've think way. the an the the the we control on have the we idea of is, we is that the intelligent optimize of think and and for control. So strength yield to the what sheet balance great a really raise Stabilized use the of for example under are focus Co, right Vantage how deploy Vantage we that do what once investors DataBank good intelligent two we sheet Stabilized going closing the it, we're by it balance prepared it under And

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So third the XX% XX% capital. sheet in about using I third-party own in mixture going a Jade the on this our sheet partner's we like about eye like to with want to use it. formula balance balance not capital terms of how of always raise and and we're deploy I don't capital, you obviously using keen a liquidity. lock think to capital That's think side-by-side opportunity party." our really with of We preserving but "Oh

shareholders. great previous Colony As you've which is really dealing heard -- cash have from of we're a we strength, Tom king. Barrack say for Right position quarters, in is now a

going high-quality so see work for new have to also in opportunity the balance a GP to continue lot cash right to continue put commitments. sheet. assets a We in now. going Jade to We're of and we're of to cash We lot invest

growing. capital and and I by out think raising our right business putting a digital we we've of investment business. our you telegraphed sheet digital and our liquid balance capital platforms business, all pledge now management our up digital equity credit securities that that our third-party They're to so do are all

could importantly, I end a the a little eye you art. long-term this at doing But more prudently. sorry great wish a we're day, make predictable And than towards understand quarter I art revenues I science the of formula, we're think than is sure there's I'm there's a strict but is the and with Jade sheet this to this little more growing deploying So it's everything for give -- that. science. was you digital there most the balance

growth digital If growth find we're our have the there progress terms in digital is EBITDA, terms look that's growth digital quarter-over-quarter out we you rates. This as don't of out in the and grown total fastest-growing REIT another in as much in in And digital right growth I our at making growth you quarter-to-quarter. enormous digital REIT revenues, think our terms if you'll our look EBITDA that's revenues. our of revenue story quarter-to-quarter our key. of there now at

Jacky Wu

been of walk pipeline to over XX process thing like that's balance I to the there. that already already one on Then ending already the XXX the liquidity zColo -- out do announced to want add walk just net in XXX Jade, year is page and liquidity in our deals has where I meded

million to of to of monetization $XXX $XXX the quarter continue we So in fourth guide the this year. million

amend And last get deals minimum available will revolve then billion year. to things. of couple that of would our billion we a preferred the you that on And net powder So that equity be gross $X.X piece any then the redemption, -- obviously, is, and the dry did $X to revolver liquidity range. for earlier of One this cash. amount facility

we we will to a look we will will obviously, point bit to the for versus But those well a of and redemptions as digital look what redeem at and in opportunities. a it terms of terms is there preferreds. break in of best time, some continue so we about in And disciplined of facility return do be new is

Jade Rahmani

Well about to impairments, credit because an as long applaud I the Okay. are very might loan actions swift see estate -- management the losses which CLNC. the Cube, on as cycle in has team a and mortgage real REIT Definitely it, progress. good And Tom looking overhang space to Rubik's to a recover. a people you I front. particular refreshing at the taken. Beck ask wanted commercial is There's potential call the

to So thing that's one they address. that have

But you stocks finally, It trading go when into there Tier that CLNC many XX% also eventual And there's look dilutive book and like Ladder at assuming an access to is of Tx, couple liquidity at to managing a that. investors potentially are value. the capacity. name XX% means others, raise. that Secondly, capital investment some there's

those liquidated trading, Wildly it yet shares reduce would think some the still opportunity, with accelerate accretive that And digital potential its of you CLNY to that can at fresh its would How an owns and CLNC. it's when to book overhang wonder option stake, provide to to to it do do shares transformation. and be for XX% wildly accretive have yet you will value. earnings, both to XX% people CLNY about premium bodes buyback where it of CLNY's So a CLNC because explore? be for as me would CLNY those capital the CLNC of

Marc Ganzi

our investment almost Jade, Well, committee. like bugged you it's

seriously, Palame. look, David foremost, and first Mazzei, Witt, Mike So, I to applaud want Andy

is of we our execution. another of transformation And Mazzei involved Mike portfolio, them, you I up business we foremost, too that hear Mike's couldn't board as you And returning also to first now inside play run story their we and were: brought what to had objectives presentation, in more those to balance When to issues his hit clear to and done of offense cash on what business sure it's had have and liquidity sandbox. And job don't repo lines any the and on gravitating they'll that two team get great does. offense unit, to loans, loans sheet. selective. chance and Mike make that that that heard shored amazing stabilizing For an play earnings been poised, with that be about the that the yesterday,

they're with shareholders. those enviable we'll continue and at of now and the we addressed look got be an where offense at ahead value. Mike CLNC the have We quickly. story. executing can happening its think rotated book progress issues group, the play He He couldn't stabilized to recover cash. issues. we as position their great And peer largest CLNC. doing of happier you of job that's I its a one When

night. saw They last You after perform market performed today. well the well shares

off No table it confidence we for that Jade. that it ago, today. We we two team's management is around quarter We've have CLNC. a lot the I'll ago open of the made clear in a clear keep options quarters meantime, make option And made clear our capability.

what and that's listen from good any across silos there's CLNC, a open harvest, it's work ear anymore. In rotate the As the to an done just continue of these we meantime, opportunity that's the fire us. hard ruthless going There's execution for hear been team digital, on we and comes you're table. to the no sale at Mike to to and we'll if have to proposal whatever

we cash, business have units have all we of patients We have good at today. and our happening execution

Jade Rahmani

Thank much. Appreciate time. you very your

Marc Ganzi

Thanks, Jade.

Jacky Wu

Thanks, Jade.

Operator

Binner proceed Our next question is your with question. B. Please Randy Riley. with from

Randy Binner

more Hey. into column? Good that fourth Thanks. is, that quarter pretty color gave slide, expectations for monetizations That's a bit on actually morning. curious just good you in the and the segue about the asset was you a I little sources the what have uses legacy sale and

Marc Ganzi

Yes.

give some Jacky let I'll look of the So detail. granular

to Let foot the architecture, XX,XXX me hear Thanks tuning give Randy, good you you and morning. this for in.

silos, would sold four -- and and as in-flight relates to I lodging the it Highgate. call the is First obviously, to being legacy what foremost,

to wish and them lodging recover in exceed third So, quarter. business eventually fairly Wellness investment them. Welch That team to proven good continues be doing and will for job. expectations. be and we will that a Rich quarter. be a recovery best. great It And obviously, has It, the had are our infrastructure good the also portfolio obviously, operating pandemic-proof. a they'll a very good that had the

an that. different that open have And so, we're portfolio. Randy, towards much we pleased CLNC, very with ear like We, to harvest ways

wellness CLNC mirror, rearview focus. we've that our in come sharper lodging, Now got in a infrastructure lodging and healthcare,

are now a has playing assets We're business monetizations back ultimate year. both And place foot. they two another year. off now in again poised fourth really not our more doing job to Grunzweig, four And do. our outperformed I and they a foot. the Jonathan and say is pulling The businesses were monetizing stable what having got them to quarter. of business of great has We've core Once vertical right done harvesting is OE&D. to for exceeded actually good happening going those those our units value off have that harvesting the last our We're said be. expectations. this front -- for three there expectations both So of exactly CIO unit our

information once of for come and year. to and our can you'll upper As I making they our again, of the for be Randy And guidance released. it's investors. due, we this overdeliver But end infrastructure this CLNC outperformed lot that with OE&D expectations press monetization wellness we absolutely the underpromise And have conviction see see releases plan a sure OE&D and just say you'll at that year.

Jacky Wu

the million plan $XXX fourth million to quarter is we'll Randy details $XXX in guide. The that Yes. to

more we lower obviously Those and higher to addition for are three at that four range. to As end us give the looking a deals Marc end mentioned, coverage get there. than already of And in range. couple should doubles that of we singles the

about So part we Marc of location outlined. good And that it. feel the has

Randy Binner

million net $XXX correct? good And that a that's to to Yes. CLNY be No would be... would $XXX So number. million

Jacky Wu

Yes. That's correct, Randy.

Randy Binner

you you the pay level after down asset debt. get What

Jacky Wu

That is correct, Randy.

Randy Binner

go XXXX? we right where that sales of you on the So our -- kind similar kind to the our -- that. wants source and where you're the to of deal, in which doing see legacy model But Because plan. that margin, does story for funding continue keep investment to is zColo uses with to digital exactly

XXXX? liquidation ongoing a how there will Can get to process a assets closer bit assets lot give OED us are there's might in Considering selling look a be? it I sell. What's result good fourth in to what that harder seems you think Because of be little just harder? Does these like energy lodging that glimpse So left? some this book quarter you're still to value? they and

Jacky Wu

at kind start of we things evidence for question, mark last definitely based that sure so way accounting. data look -- where -- value marks. third-party We kind which those is it buyers at I'll The is under from we think -- look third-party to these I market potential with Randy. last of monetize a the Yes, your on us can fair

XXXX, think you'll of why total I should equity a that that's to value those perform can close similar of And we about what equity in we XXXX expect able the that So we debt it. in net should XXXX. did amount you expect we line. amount. see to be we terms mark that in our of hopefully that in that at and basis other believe supplementals by that we We things $X.X billion get do will to that rotate And

it you clearly the basis you outperform on get shown we've if even straight-line So can take we there. a that And sales.

Randy Binner

All someone a for here, let you one quarter? I'll -- have value hop But right. did book GAAP number just just disclosed great. the have on. That's more new all for There's looking great but I you still. lot and that the we're of disclosure

Jacky Wu

No. yet. Not

Randy Binner

a Thanks lot. All right. Very good.

Severin White

Randy. Thanks,

Operator

Instructions] next Our from Please Colby [Operator with with Cowen. your is question. proceed Synesael question

Colby Synesael

you. Great. Thank

the actually construction. I First digital call. time on have related questions Colony portfolio to

selling on digital that's But guess, could the demand value do residential sell One that you're assets would the be is I of get now right soon potentially digital them if then infrastructure recycling of on and to I at as you what for a is And And have really appreciate that be out this I'm involved mark what that putting kind sell selling of side curious some obviously show thoughts to the there business Thank effectively able side. expect assets you. to digital the perceive digital to -- in the and to given of values the is of legacy possible just And your today on portfolio off I focus not we potentially where such fact as want have you added these there would you're map? are somewhat as point? capital the secondly to the the counterintuitive. that off guess of there some segments broadband in these something assets you kind be pursuing? bolstering portions.

Marc Ganzi

And Colby. not your time last here you here. Thank and Yes. first-time will it I'm optimistic be

the So, tuning appreciate into you story.

in home. break are continued partner enter agreements or opportunities in to Let's at Europe. There the with long-term the telecommunications looked we've down. years. Fiber-to-the-Home. opportunity look five of that infrastructure. two can own you at We've models you One start let's carrier network in Fiber-to-the-Home and wholesale really you this with infrastructure a can every U.S. a basis opportunities where out LatAm kinds is looked provider We've And today into their and the fiber for last on Colby provide CableCo to them at and with a

great Beanfield actually. price And done We that done been acquisition in our was that did so we've a and Cogeco the at it right it's with partnership. and

that They're other gone fiber we fiber. Beanfield customers. And through support So, we've them that own folks to now build we to lease-up and to customer. our to laterals continue on primary other and support

business that effectively did little bit. So that mile a And a cost. we above X.X was just about we like per wholesale route deal which over quite at CADXXX,XXX replacement

want costs buying price when going long-term can be we're generally we're And it or Now, mile earlier is $XXXXX towards you replacement you so buy Can to this speaking heard build it? about Colby that route can you U.S. consumer-facing that in at not darn to pretty sharp looking looking be you so that's contract. to what And is look stuff. costs And landscape and business then in you the a do? close and me I'm angle And brand a it, was a a we with per always markets say replacement where that other is more you're consumer if at into a those have this very competitive over-builder. disciplined. you which week Astound. for example an face which you transaction models does done facing certainly that take forward a And at could was business

And or market competitive. so operator typically either the third it's in very that you're second and you're the

churn. You lot of face a

end it the lot investor that deal deal of of at for the with for but type connecting. make a really $XXX,XXX make that route looked the And to got us. what it didn't said know maybe actually going over and makes sense You've sense. of doesn't per into day sense you And at we one household mile at and

have about paid bought and net per I I $XXX,XXX a and little over something of route about lot churn. paid then and look times for contracts of we cost Zayo we a roughly billion X.XX about that replacement paying so paid $XX.X and no mile we versus long-term times And cost and X.X we was we which like replacement at say, zColo Astound

before this cells, me is to small fibers, you careful really centers, how So, the got in asset devil underwrite data And Colby you've about in the classes. you've underwriting. the devil say heard towers, be these

the to You always quality the to infrastructure. have look through of

to network. quality have of look the the You at

at because of great have we We're we're new at privileges being and that years trust globally. having today engineering. don't at have very and the we We're very the fiber is network, their with customers' Colony our other of one is And at Capital of routes. investment building look You We're cost today operators. We're build. have and the data privilege have of towers. We're entrusted building. cells. permitting. And centers good design. one peer networks have earning building very advantages a the these build have the new We're at REITs to great their managers Capital RF Colony small networks is We're is at which heritage, at we XX building. very of toggle construction even good can we good don't good to building we're which we're tons sometimes our building

of these at that Colony serve at our having advantage to And and with central business to gives a All county X-decade customers our skills forward. totally customers. resonant reputation model are and today us going a huge resume

advantage So massive as at that for we us. look comparative

investment-grade XX-year them. and enter that's also my Highline. we're bit we into XX-year, fiber-to-the-home little long-term for business and America ATP fiber-to-the-home network the answer a of XX-year, at we on at at Where how Latin with contracts models. doing where by way fiber-to-the-home in building And we're So customers look

fiber-to-the-home place for the short-term with churn. investment to consumer-facing me, contracts is in long-term for Colony play businesses So grade best not shareholders high

second part time question, seller. right. a assets, to Now, be legacy to It's and good your really about selling you're a

was Bridge shareholders. [Indiscernible] transaction four delighted we investments a recap we mark the outcome just IRR shareholders. and to and partner Vertical great for under So a Vertical for very that realized. partial Bridge of It XX% a with and realization at then June. We of roughly last partial went have in and had a did that was a a Colby MOIC shareholders, XX that last was our an We out had We're successful our about months, X.X little for DataBank. been

that exiting, Now fully our a piece shareholders. exiting, partially balance that. for and of did to was shareholder two DataBank opportunity and One sheet another shareholder we we buy had an

for in has we're weeks years a in ExteNet. resulted a ExteNet investors. will Data to a liquidity couple Vantage cap a great resulted in way. for a for Vantage then a have X.X Vantage so that IRR John these Regents got an and the result marks shareholders the IRR at And excited two those ExteNet exited, to in shareholders. obviously MOIC, Cal a great rate a about Centers the Hancock of outcome transformative the for investors. a MOIC in the report We're five XX and And the great investment roughly selling a made it a that and ago. of mark X.X lastly other shareholders. shareholders. new about then making this XX.X% been ExteNet. that the was us X.X we This financing year, For welcome XX, third sale two XXXX that leading and we was investment We and original of was shareholders for announced for

platforms, and capital they're and I and Bridge to all back mean continue logos businesses. help leaders. we've to look assets, been held we marked is assets with Vantage but we've ExteNet also we've and shareholders, longer-term at create some found to to cleverly those existing very Vertical what So and returns doing, rotate Colby our and you market like to capital grow for ways those

them making also new And getting so we're capital raising steward the returning investments and capital, can that whilst we're sure markets investors want, the and pilot that outcomes. to we those right

I with in our kind over four quarters. in private two also call I happier it more quite be last are performance investment And couldn't think happy with think five I the public on So digital the our last our very And the our marks LPs particularly quarters. our shareholders side. happy in with performance are

Colby Synesael

Okay. Thank you.

Marc Ganzi

welcome. You’re

Operator

you. Thank

the have of question-and-answer end our reached session. We

like back pass floor additional over the I'd So closing any management comments. to to for

Marc Ganzi

end Well, happier at couldn't the be starts I thank quarter. that you what this eye I And of rotation. been great all think quarter this another has look, the keep this day. to And And team is this heads the going forward execution. is with people you. the can continue from our to is down, expect which prize simple on our with this of

dedicated cost very our to and professionals get to due these you correct, high-quality capital around deliver the long-term promise continue in promise their promise globe our of you raise and hard to debt continue I'm the Colony Our None that's happening. to gratitude have the to enormous and to structure ultimately to at you learnings. the appreciation much for happens without work Capital, and to

If you We've think about it's believe... amount rotation. the since what's of July, last profound Ridge Digital Jacky, a rotated merger transpired I we did been

Jacky Wu

$XX billion.

Marc Ganzi

don't X.X in than it's to have of $XX assets, less AUM one billion I years. That in the but you, history. rotations be got in in and probably would data be the REIT biggest front of

work, all we'll your it day you due for done I to people. the I and of and us without It's you around partners up want want our shareholders And for thank continue globe. it make get to you And happen. doesn't having is Colony deliver wake that our so every employees trust course. and thank our in hard this but in to

look, to quarter. busy back So fourth work. get a to we're We going got

got fact, we're of and a bunch deals new In lined calls we up, doing. some

everyone it, and again the So once a today. Take you which let continuing for great at care. your get rotation. is thank us have weekend And time back

Jacky Wu

you. Thank

Operator

This today's conference. concludes

participation. you You thank lines for and time, your your we may this disconnect at

DigitalBridge (DBRG) 6 Nov 202020 Q3 Earnings call transcript