Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the DigitalBridge Group's First Quarter 2023 Earnings Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Severin White, Managing Director, Head of Public, Investor Relations. ahead. go Please

Severin White

And conference everyone. DigitalBridge's quarter first Good welcome earnings call. XXXX morning, to

the the I'll Speaking Ganzi, today we call on from started. and safe and Wu, can the get our company Jacky our cover CFO. quickly harbor then CEO; Marc is

statements make could is of number to of as financial All and or uncertainties information discussed our that and for actual today call risks business results X, a the intend Some on to future maybe statements today, differ XXXX, considered of involve this DigitalBridge and regarding operations materially. May cause performance forward-looking that undertakes we update and such events not does no circumstances. duty and it

factors to year Form Form quarter discussed in For XX, the information, and XX, filed more our with XXXX. be Great. for for the with SEC risk XX-K the ending SEC December to be our XXXX the please refer XX-Q the March filed recent ending to

Let's and turn providing get results discuss over market. Marc to DigitalBridge in our back how today's XQ will to outline playbook started update, executing it financial the Jacky with we're Marc

With to our Marc? Marc call the CEO. that, Ganzi, turn I'll over

Marc Ganzi

Thanks Severin.

our let's quarter which key So update course that year. this to the of I'll priorities. an start do things today, continue I The three with and XXXX last on matter, outlined that throughout

that higher to InfraBridge portfolio new which first FEEUM and FRE XX% income fee the generating report activating has across last acquisition tangible fundraising, with strategies, year-over-year up deliver of made to platform the over and targets. pleased management investment DigitalBridge Put co-invest, are our XXXX XX%, credit In back performance. telegraphed by driven quarter, level on on in quarter. and FEEUM we I'm simply, core our growth to on simplification our First, and strong progress on we're we on track up

off to DigitalBridge BrightSpire alternative with our that commitments advancing formation across infrastructure. and for asset year-over-year. is we're enhanced $XXX was Partners later, And manager targets substantially with continued converts sticking first we top to in formation simplification, made cover a of million, continue of our confidence our capital These be we To to we reporting with move us on developments paying XXXX. With capital respect guidance. but now give serve growth progress Series be seeing our portfolio flagship headline higher our that, digital bit deliver profile able XXXX New we've perform to we're in the clear, strategy. selling the our deconsolidation. up on I'll in verticals our portfolios performance closer all today as will

fundraising and before we detail let's So simplification into the progress get our financials.

please. Next slide,

scaling will earnings know, XXXX, our it's flows shareholder management under the and closed full by equity XX% increased of or unlock you $X.X revenue, the co-invest FEEUM In substantial value. year-over-year, InfraBridge one earning and this and is drive metric and contribution fee KPI billion year, in our February. As capital formation a driven that first the from number we credit organic acquisition combination the or cash quarter of

On looking was most the billion. year FEEUM. That increase up control. XX% all the these to right, growth that assets in on deliver you But we see $XX.X NAV of to AUM, strong on We're which to the a importantly, year-over-year tracks continuing commensurate forward metrics.

please. slide Next

Vantage. some alongside future we Highline critical is the $XXX what In This paying co do platforms, first including of by Towers, raised drives Brasil invest driven income. of principally formation. fee GD most our new fee about Switch, capital million, New quarter, and

allocations utilize rise set of paying XXXX. the last in co-invest their free fee to many investors for know, and you fee year As proportion co-invest our anchor of

structural in growth management later. engaged today, This to that about in little leads embedded that is co-invest more which these the is companies Another a have simple support around algorithm, a interesting this feature in investments. to development there's funds, more we'll ongoing under we're greenfield bit the talk co-invest. our an the as co-invest grow, we platforms Like

As we across as and buy the execute playbook This value our a our and combination. well. platforms, in increase build scale businesses is powerful

Next quarter, Series. in we're updating forward I DigitalBridge to progress look you Partner the making on

and In addition to that, funds. also credit our core

confident mentioned, As we've And are remain our momentum XXXX I seeing to we in fundraising. targets. we're achieve set good

we core simplification, of non last One, a our disposition of On objectives please. million. the assets. two slide key legacy That's over on XXX% in $XXX key selling this progress a asset BrightSpire little made ad year. disposal Next of a important for our

down think legacy less assets than we're million in today. I to $XX

something clear, focusing going to it's just be to really that not we on are go So forward. be

on our manager We are business unit, our investment a which basis. growth high focused global infrastructure single is on digital

of me I've deleveraging. this. off our million bringing cash, notes priority clear Another down for In our XX%. key corporate convertible paid XXXX is been $XXX very debt we in April, about

we step in thing The goals the got When the number we to talk my our with in July, next I've debt year. XXXX is we’ll sights call our for one corporate achieve investors converts It's today. on deconsolidation.

on-track a SDC really progress of [Full business. financial times. we are, we managing and leads financial our us wrap debt and asset are summer. our our to I the execute inside year] our navigate box, our walk the $XXX with the ownership turn easier make And in we be cost by able the a our for to of management it million financial investment in Vantage of of here to will to down aligning will financial we looking securitized sell results through want continue non-controlling peers. of this plus which to highlight So similar and converts end level that off our to to forward With call savings profile. environment. be our current decide our leverage it's lot This alternative optimistic Jacky this the This paying to to I'm seminal debt checking recap, in books over the year. in stage corporate up final that, success flight making, it's I you absolutely section DataBank to tangible the takes as reporting and is off X.X this

over to you. Jacky, So

Jacky Wu

and Thank morning, good you, Mark everyone.

a is in site. of reminder, financial Web addition shareholders to As supplemental section filed the our within of earnings, release we which quarter the our this a morning, first report available

Turning to XX. Page

fee earnings Our million negative share. company now, business a $X $X.XX $X have per down fee or positive write with revenues earnings Wellness related a earnings have excluding Infrastructure been Total up turned of was first distributable non-cash quarter and year-over-year. highlights positively would our distributable million,

driven Assets was and earning the raised equity up XX% billion and equity by is under infrastructure first billion by credit $XX recently AMP Capital's under period as $XX of new year-over-year the core environment. fundraising from $XX same year-to-date acquisition management in InfraBridge, million rebranded significant very product management co-investment grew difficult quarter, the amidst business, last $XXX in and digital year, AUM. billion to paying XX% approximately fee the capital with Fee new which of

our continued year-over-year saw simplification XX. the of corporate Moving structure. growth, of expansion company by The Management and Investment driven strong business to our Page

consolidated a same from total reported X% revenues year. the last which period were increase quarter, first the $XXX For million, represents

income, eliminated our from peers space. alternative closely our million. In we in year. from additional attributable digital XX% firepower last assets with reported million, income adjusted and which in include BrightSpire simplify previously March, period stockholders business proceeds in which same common which remains the total management our dividend Total high presentation was infrastructure aligned harvested $XXX now GAAP further investment interest to in $XX by our carried principal our but loss the contributions us million $XX quarter, $X million business. was of for As noncore noted, public the investment million, revenues more of of legacy invest provided and to from the away company what net $XXX entire interest EBITDA grew quality with

year. fee which of the income two by XX. recently fees represents period from excluding the earnings DigitalBridge's less from company's XX% acquired from investment benefit the management primarily XXX% acquisition share Digital Page from equity our significantly from by InfraBridge, earnings driven same investment increased expand quarter management incentive earnings in and acquisition strategies than business. that months by period platform of last $X distributable fee the its year, of IM million the increased under to fee management in to Moving of for continues fees company related increased earning and Fee InfraBridge. last of $XX $XX income million million The additional to the new ownership Wafra’s to compared and generated same

from XX% ultimate XX% a deconsolidation the the the down Page revenues segment our XQ to adjusted decrease was statements. our consolidated EBITDA further year-over-year was XX. operating The the of The Moving moving million, share result business of DataBank $XX towards down operating from company million, company's financial year-over-year while investment XXXX. of recapitalization of was digital $XX

than As reductions reduced this which from XXXX, the our of to ownership fourth of a DataBank, were quarter. quarter from reminder There DigitalBridge incremental $XXX of ownership received the no XX%. recapitalization in million XX.X% in proceeds less our

distributable segment earnings operating last progresses. from year. same year the $X the $X of Operating million in we deconsolidation However, decreased the as to anticipate the period million

first high $XXX from greater Turning to in margin now will scale management to million you million. InfraBridge, earnings with see Since $XX million million related XX, fee $XXX that our $XXX the Page and addition revenues fee quarter and of growth annualized increased XXXX, of see the can to we business. investment our and from increased

were the at Run is effective rate multiplying side of committed by revenues indication by Looking end fee weighted the the of the revenues right page, at million. expected our rate FEEUM provides average $XXX quarter calculated annual run fee an the and rate. of

sale which million first liquidity, of Turning company initiatives as leverage the acquisition, convertible maturity at April, $XXX the million $XXX notes repayment profile. has key corporate and the further in strategic to the reduced BrightSpire such quarter, generated completed share in The Page InfraBridge company's XX. our in

for available strong full million Our liquidity, including accretive of and from securitization million our a approximately firepower sheet remains balance revolver. with $XXX uses has $XXX

digits, our anticipated left low positioning we the the of And target expected until segments, operating single isn't million, repaid we’re or refinanced the for leverage debt XXXX. discussed term be prior DigitalBridge in our our which as of $XXX long shareholder success. will had with to effective largely quarters, remaining ratios corporate only deconsolidation in Following be

disclosures we the Moving to our asset transformation manager. simplify our and page reporting improvements single alternative segment business a to finalize highlighted to the have financial we continued XX, and as

Looking at allocation income the manager into and investment to more we recategorized left principal side of asset revenues. closely alternative peers, align with our the carried page interest

income income interest consolidated also P&L. on have with other our We

transparency added Turning page, segment understand assets with on basis, supplemental balance sheet move operating that's to a deconsolidating a as to we our the now easier present right the towards we liabilities side a financial providing with of segments. and profile

and One from our and inherited operating as led fund the IM remains asset come of I'll infrastructure leverage three our it three superior to of the growth year. significantly low the quarters relative that investing leverage We takeaways machine. and flagship growth milestones to once promising segment, assets. the Marc. management. our start and critical asset our And the to we [operating] poised years very made and earlier. on growth certainly healthier Mark achieving are is clearest with presentation structure high pleased to prospects is deconsolidating DigitalBridge that, the asset we company turn future business, light, this digital financials are management look for very light simplified, I now progress we're and summary, fundraising progression back fundraising with towards complicated a to focused for by forward we In we've low And platform, investment our scale the DigitalBridge's deconsolidation complete enhanced statements

Marc Ganzi

Jacky. Thanks,

over of what a Before are the I line in that In largely digital how as out companies tale in performance gives cities between profile, and favor in markets, capital bears it credit quality also as high of and that and few talk taken there's bulls some the quality highlight both of both some underperformance. into today's new but the past are space, executing broader for most DigitalBridge, for us two in deploy in significant companies wanted digital building the platforms get dispersion the the relevance both I with to forward. of favor that we've high equity markets, creates and infrastructure infrastructure about, markets investment it see underscores today. trading material to we high we're exhibiting we opportunities years while the And something in going decisions

please. slide, Next

next focus credit in in digital growth capitalizing dynamic Number the to fresh over dispersion capital a support That's we're companies. few we've and portfolio months. billion of track our of playbook also markets our today, face on strong seeing a and executing? markets last we're infrastructure the equity fuel raising macro year the billion we're in the So phase our environment just secured where one, forming commitments in and new this sharp new $X $X.X in record in the what's

market Here's best our investing Number support our ideas, existing cycles in continue companies customers. with us, existing today. a and platforms in two, our through creating CapEx Great to simple attract we're invest greenfield our for truth this opportunities deploying discipline into to new in the capital. customers and continuing capital to

in growth underpinned cash driving strong our Finally, returns great for performance leasing that's outcomes flows. by that with solid catalyze steady portfolio results and discounted company stakeholders

slide, Next please.

capital have do to have the to effectively. people, right relationships. to And to the you So right right form process you have that, start, and

in to to on We talking our global we few phase, growth us pools people on significant from XX substantially XX ago formation basis. years LPs tap global people innings today help a early are our basis, so a the capital team a to of into of to are capital expanding

for is LP We These the substantially. institutional launch success. even XX offerings they a very growing worth most investors. is most before to There benefit our room lot at product to have lot continue expanded in base to target seeing spent regional net today. as DigitalBridge, top room here we of we continue our Historically, XXX a we vintages little strategies, infrastructure our This a high have LPs. will is are not LPs But on of focused and this being vital five, global environment tapping our eventually and efforts of partnerships to have to and for There significant what us room grow our mature our and where us the for grow of into capital and our also for in remain the time. to us raise of of is we expand are there been continue XXXX fund lot is top increasingly and this new relationships new make trajectory. year we're

Next page, please.

the to in So processes to right it condition. people, and having addition lot right the the have relationships, helps a

compute. the by in driven for Their demand business assets by growth. secular to management has continues demonstrated Our Institutional fund strong few we global want strong years. investors tailwinds, in be been our enthusiasm that driven to very over persistent growth connectivity past and the seen have under

to and assets see, As XXXX we laid capture a management. target importantly, increase digital in investor in to billion for infrastructure to you can which infrastructure surveys in infrastructure years AUM is are of more ago, couple to out appetite on track intent under digital up $XXX particular. most Even we continues importantly show hit their allocation their our that

already because this got investor the and European growth. great allocation. all give over and teams an building we that's years. in growing attractive growing sector that These faster us sector. investment continued expand And room from life for to the setting up lots to and to as early mentioned, a uplift sector our in exist, offerings are experiencing continue coming growing are and our to catalyze the formation stack we're LPs DigitalBridge that fact level, strategy, LP we geographically, important as growth for cycle, diversified we're support At tailwinds a full in exposure capital I Asian of our part product share our and benefiting on success portfolios, a we've taking are growing We of in in are

slide, Next please.

Knowing the two in about and in in investing our over served to and market attract four last and tale earlier deep you backing platforms acquired trades I more and we of and focused have then everything an happening market. few in this we in we what's not capital. XXXX that the It highest of to successful terms have So have section portfolio. and of has expertise quality in anticipation to accident years continue cities digital the are is infrastructure been over of was significant continued the and this years. the expansion support on domain us been the markets discerning talked capital platforms experience market, and growth the management Not today in the three past key what surprisingly, our assets platforms together we teams how tracking design favor buying By well.

GD the like signed and in and $XXX Vantage quality, great invest assets carried million interest cloud logos data EMEA, towers formation high most a facilitate businesses, to centers. co of collection very side, attractive of at will On shareholders and private successful a equity Switch, returns that companies good efforts. DigitalBridge we sectors, will post fresh and $X.X billion we Towers great alongside recap, valuing solid capital importantly, raised valuation generate stabilized and that our

and we our $X withstand the we green many its financing our and side, to first cycles, the market in billion well On $X.X a that £XXX that including at reduces DataBank credit market facility to served and continue million conditions in this billion, today. sector Brazil Building bond raise costs. growth. issued current capital credit and attract the AtlasEdge Scala, is can scalable closed portfolio over support interest continued has me portfolios different demonstrating securitized

Next page.

appropriate DigitalBridge. not during last interesting Once cycle again, risk return years. four subverticals what's market find traded When the at conditions today we peak second, selected that the opportunities. investments everything over in together, created to to in didn't opted the three is to So value have present profile these invest

markets work risk opt of the we're profile just playbook the stabilized data in with bad fiber the quality is in fiber over through these evaluating. opportunities that are This to than environment suggest center now colo different last others. we're for This our difference is investing fiber the value the we discerning limited isn't that in a four Now, finally us India. looking hyperscale of Markets term Wholesale decision dust connectivity. to in as out We this dark the and and assets years. and always expand this to we're home, to are has between today. the US made augmenting isn't allowed center pricing platforms, or contracts short highest at, in three didn't the the that the off went same to asset a investing universe data

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also price. as businesses quality great importantly, infrastructure, interested be a the with couldn't models. align value just is This they're more or get we're development. net dynamics a with internal as good price pleased buyer actively bad return digital So of at where We and risk not as avoid. hunt our Ultimately, trading in to something we a we

please. slide, Next

CapEx customers show matters. our doing over up is for for have ability global The what today's to a want in for key XXXX, capital a growth topic build our budgeted to we're customers on Greenfield matters, on and the basis on update I in the billion everybody in of portfolio So of companies greenfield. to showing customers. growth allocation, disciplined market differentiator $X support DigitalBridge. up In

on based in continents, the have busiest world we're five North ground verticals in the in CapEx. We the success digital across We're infrastructure. billion America where $X.X deploying around all shovels of

on network. deploy building EdgePoint greenfield to Asia We America, $X.X aim returns generally million have in In telco it’s as centers, centers, spending out relationships as $X to and and finally, fiber geography, IG's platform data on spend infrastructure. support it Southeast Latin Asia, billion we fiber on most we the global and powers buildup. our help they are tech tower fiber to generation and billion deepens newest basis next centers, our In them nearly providers Europe, love $XXX And it develop, data XG networks. a importantly, Xenith and edge plans data with best key towers, towards

Next please. slide,

I in This really portfolio Lastly flow talk performance and described form of performance. is platforms investments difference and to today, growth. CapEx our portfolio making a want cash in where leasing new The the the just drives organic new greenfield today. that made about I we're we ultimately that

investment Here over returns key resilience our portfolio drives we've continued of verticals, to in The all our persistence deliver. growth four by organic MRR and our time. up and across for driven growth. of is led our investors

of On the metrics. we've portfolio hand side page, right debt conservative highlighted the

value, our our is over average of to have facilities. is impressive shows fiscally seven balance You've about these portfolios We a market build heard talk XX% this commitment loan fixed tenor the responsible our to This debt conditions as we years to and accomplish to quarters. changing to an XX% sheets that margin and safety. remaining managing a able really be be want we scorecard for significant able with me on manner. across few our and of last to weather

please. page, Next

So let's XXXX. for up checklist wrap of with a review my

to on I strategies. see, cash on year deconsolidation have We've with the I'm structure flagship can indications made optimization progress to looking as as and drive earnings to and reporting de-lever goals our with well this we're our conviction around high continue simplification advancing and aligned our forward continue improved flows. to peers. higher later board. based capital on fundraising you early our As to we’ll hit our fundraising tangible across track date

and level, the where work are and grade DigitalBridge It's based cloud a personal and unique our privilege a basis. Enterprise now, technologies is XG now the what today. workloads to Backing of the CapEx at first look, me the artificial success sit our today we them and foremost, ecosystem ability hybrid that migrating of supporting our and most last DigitalBridge to the have of to shaping logos of This is logos growth the do innovative a been XG unique. cloud parts cloud decades. for success to world, most and is XG front in don't ultimately already all company race take today has three now the down private the portfolio technology the we at it's had end every mission This and the of data in investment it for and to basis, the the team because, across powerful gets matters, some behind funding focused some up customer the path we planet makes exciting infrastructure on the Finally, lightly. position XG. most switching with world. on critical on to committed major and to migration we for The why We commercialization in for around public at exciting XG, remain world a build I intelligence. global a privilege. and show

to you competitive is would advantage. fact, In our I this offer

updating you Really levered want I you today looking asset digital quarter final tailwinds stages infrastructure. your forward our on as of and continued execute time for your in management, progress transition to growing support close today. to next to on your I'll alternative we on the powerful thank you So to with for and attention a fast continue as our always the thanking

Thank the over turn operator, Now Q&A it session. you. please to

Operator

question Michael first and Elias from comes Your TD Instructions] [Operator Company. with Cowen

Michael Elias

may. I if Two

sense seeing for as around second, the are data then to it space, demand a there the tech with side. session I of decelerating hyperscale high about side of platforms. both a get from has you talked tightening then First, and And the enterprise the quality customers? also lot center would verticals cloud layoffs perspective love bell relates noise been a on growth to what in and you on

that to recent Just the that did ambitions about long to business willing Vantage I'm how given thinking term with the Europe, you extent the for you curious share? in are on deal you are

Marc Ganzi

you Vantage, want So the that domestic if is first year-over-year just in and and at meeting metric And example of the those week pipelines I not every of quarter, into are pipeline morning demand. our sales in domestically to at let's out depth. word up both emphasize and get look the look, DataBank Coming significantly, track minorly, here foremost, US for we significantly. that right Monday the I

this notion slowing and on DataBank hyperscale, does what course private does environments, which and down hyperedge, is Tier demand X then of Vantage is Switch on is of which which So does. what what cloud

So those QX talking QX is up are this okay? year-over-year, massively So companies, of are all Michael, about, we XXXX.

you Just leasing in candidly the year in perimeter to give sense that workload Today, we in that Switch, is which leasing renewable energy great environments, at are back XXXX, QX sits Switch a megawatts. Northern Virginia. of a that alternatives are at to of looking to XX an pipeline ago markets example, and okay? when were diligence in XXX% pipeline you happening of was Clara entire north give XXX megawatts, very secure Just what's Santa locations

they our to XXX% customers. that is that want So and in environments is have to workloads highly that be seeing we that those want must no energy, renewable nice secure a are have, have customers for longer

thing. same DataBank, pipeline Leasing up year-over-year. Xx

If initial AI. the and in that was mobile pipeline deployments And the leasing leasing lastly, $XXX of you pipeline deployments value backlog million sits operators, also $XXX at at Vantage, cloud C-RAN Today, from interest a pipeline total O-RAN that annualized revenue. then go contract leasing of of now back terms players, and year coming about ago, million up year-over-year.

are are intelligent on. Any cloud, three spaces platforms you that should to those create are looking that's happening. domestic the best we assets leasing conditions, path capital. we the which are candidly, are year-over-year quarter metrics and cloud leasing be Vantage harvested up do but the did three between Those Those to and hyperedge, balls at deal public other in companies great occupy where is of focused fund? create up. what's continuation EBITDA to So be up, that is private three things the and up, be with market and need revenues we're One, jump recycling with secondly, ultimately that a And and them Europe outperforming competitors. can why the their they're winning this investor

customers. We Europe, new business at to keep capital we incremental have support to over need that's megawatts in capital what raising Europe, and opportunity of XXX that we're our doing. supporting We're Vantage

As declining. not I construction leasing over they're right on said before, and new the are we $X billion of going volumes now have building,

us. this a for So major is opportunity

migrate did with our What need front good our to in back And capabilities, and building ago, really really continue playing ago, were world of go this job good I is we're if going of a doing of building to of have the of to was from the land, And when the and a a year retract letters and to now you as decision we foot just a this a lot to said good out our was and out sort and our I you play up lean land thought utility call the go to step recession. they XXXX space, correct. I we right or try that doing. digital customers we're need told that companies over of on lot assembling good and the infrastructure it because Look, is you to said teams play find offense. served you actually they I recall. the power. LPs weather other to And our our XXXX a We playbook good year and entitlements, and businesses when offense. lot we're was we storm, get your things going when very well is a that permits, done ago. a said, year playing going folks I all were it really

And so now with cost you we're inflation CPI with it's XX, funding get the that escalators with CapEx pass-throughs. grade success CapEx. based all and reward great XX-year contracts And logos protection, is investment

tower seen single the yields 'XX incredible seeing out tenant before, it much we're so And in played 'XX and in we've how space. never like

advantage. your the had you to you If capital and it have build ability was

and XXXX cycle through lot. we grew a And so that and we XXXX grew in

And ago of the that the and a a call because took seeing at companies. so playing bit lost your a And now what we now second of part it right a made year question, I bit little I'm operating took a you're little excited. of I out courage. got And is little conviction sorry foresight

Michael Elias

term No worries. question ambitions longer was The about for Vantage?

Marc Ganzi

think, three Vantage has America I Look, Asia, businesses, and Europe. North

in Europe, youngest is leasing said the you sits Vantage our of the old. new as now over XX of of Both XXX into right entities opportunities capital USA, are saw of both Europe quarter. less and it's business, new lot last really those megawatts years businesses, Vantage raising megawatts demand in of Asia Vantage the really North earlier, for days. over than I those Vantage well, producing America, fast a have funnel we're come opportunity. XXX it's two at first growing

of I assets. stabilized sheet, Vantage think permanent vehicles. of sits our two long set balance term, capital a portion great which SDC, we've created that on

stabilized platform. Europe Vantage Now we've our created

capital. put to And so bit and right harvest that's little in place have now it really think a the to where the continue pair we That's most these but right I the assets we importantly, with are them vehicles different.

have safety, yield. looking year logos investment XX and with to for global LPs they're sifting X%to basis a a want and XX contracts want for and insurance but they're We on pensions X% a grade over through companies thousand we that XX yield, looking IRR they the through in ability they a the know cash this XX want

what ability are looking occupied, seen bit are LPs embedded North Vantage for, our incremental the Europe which to buy that liquidity of a predictable us incredibly mid with of XXs escalators, What create vehicles path has it's American bring basis public mostly flows, little opportunity it's It's direct data Vantage at for path XX, is and to you've very to a the core to Vantage, capital importantly, we they're capital on they? growth, cash Vantage some recycle to SDC. a product so as have leasing, community. centers investor a the for but permanent most stabilized by are Our misunderstood

built And and center developer years his team the is data have is so What hyperscale world premier Sureel we believe today. in incredible. in Vantage and five owner the

a USA would north you rolled of well, that run Vantage up it million, $XXX of EBITDA. order on Vantage Europe, it. if a we on rate you for Asia, well billion But business know $XXX on be all to years five go over global today, from in the value from $X EBITDA little You ago, and you you bought Vantage of And a that close somewhere know, put magnitude consolidated know, Lake. now million of Silver back basis, basis, it’s hard to

today's have a billion probably $XX on it's it's worth which down. come So business, about valuations,

period So building, creating mostly small it years return profile the the but right five building But acquisitions in billion with $XX customers with creating not playbook, is our buy easy. value that returns. we did and been build. and the we've did was right some We which through and a of of right

we in Scala Lumpur. great have but that platform, AIMS a CEOs, go Kuala happy from could here most at playbook company portfolio a one Sureel and we that global over what XX and at not on and importantly, from we at to with companies is take going different it's we're business, relationships execute with Brazil, businesses, scale. doing has what great we're we're be know when it's we're The every you doing So doing done, different great Sureel company. that great great got it's assets, with own deep we're of that very what it's executing a and customer we We've not with XX DigitalBridge customers

Operator

Riley Next Securities. Day question, Dan with B.

Dan Day

on asset, at stub leaving consider like last you that that of and think understand options cost of you I you what through point. remind year what we DataBank? over in the this for process, that you a then looking could would kind But the fairly than in the if yourself just total now to SDC, do seems not you or whether maybe moves SDC are the at Vantage cap can think rates recoup just one, just basis it the talk given Vantage obviously, all plan you And well sell full first us a stake is think recap sale? the to like with just your or rather two, So best monetize DataBank timeline with

Marc Ganzi

tremendous a shareholders. into headline amount deal has today, been fantastic and for we're $X.X value that created obviously, a about investment business that today. us. that We've Look, million billion our at got DataBank we've million for $XXX Today, valuation of public in uplift $XXX the holding created an incredible

raise centers SDC, basis. A last where investor million say, adjusted in And days data for they So with capital about we're XX lot where SDC, pretty that's that X capital. a we attractive Jacky, still let's to think on DataBank. you of that Vantage been risk X, appetite new a we looking of in out would high process created on SDC, effectively tremendous are taking amount is the stabilized new the even just that's today. producing know of today, are for I Vantage And assets process. holding $XXX value I a two flight low Vantage a the are that US them yield. different been for it's One, treasuries so started talk paths, have second. a We've

pension to have managers they some and and fund it because funds we exposure companies some that, it. want insurance some and don't have So

Jacky well. we are and is to deconsolidation of in SDC going very doing expect is running from perspective. have a process good terms actually soon that process result So a the we Vantage what

speak. into on last months. We with forming we right now DataBank, period capital EDF of a phase of call, formation last Xst. Swiss had And that Life I We down and few fundraising as April others. closing we capital shut great the first and moving for we a six now on there are our mentioned the a reopened fundraising we are as

a open And the of and that clear, in many end take the it period we the until the overtime fund took now ago structured fundraising capital been that is And had to years allows us continuation summer. we so where be SDC, that that's capital in investor to way an was Vantage closed.

is we a doing And to are capital so we new what formation plan. reinitiate had

very, very two different processes. So

that's the can I continue process, On what take DataBank subscriptions you we tell in, today. to

performed. the When having success, great We disclosures, up know the absolutely a $XXX were vehicle, we ago, out quarter EBITDA year ago of you are has of business year your at XXXX. about most rate signing from million of we over and are a second in run public are into investors that as

$XXX million is As year, our we end get a this guidance to $XXX of by to of DataBank year. aim path EBITDA of for about the on end the to this million

markets, being [mediocre] workloads, their in been backlog DataBank. it million has growth that's leasing and being we X Raul So the X was up about amazing at what the double just and $XXX over last we hyperedge Tier done team an leasing backlog the have Tier job, in annual year. these is have today absolutely rent talked

we success absolutely still But REIT, continue the that investment capital alternative best So look, assets, DataBank be DataBank we an I XXX% DataBank, right on and keep are to fits story. we we a not profile. a think grow a use we doing we manager, would I DataBank. fantastic mean our REIT, to are would other I people's of were if thing DataBank are bnd a and could own

So million capital fund. into we have the $XXX the ability of to continuation raise another

a to position have our ultimately, us to to $XXX would us will we million be get raise best million we down going full we that will are position, be the $XXX will We that $XXX raise a left -- the say, about raise full will if to the And that. million, I do probably million that. if position $XXX probably gets

we $XXX million So $XXX about left. will raise have if million, we

the we raise take it that's million for public key continue got to metric to say again, subscriptions again, deconsolidate, in. shareholders. And to have We I'll $XXX

convicted very all I very, That be DataBank ability tell our of to very around shortly. can to today. deconsolidate is continue inside We you

in I'll there we second DataBank. very good today. quarter in leave where for We the feel it the and middle are of are we about

Dan Day

just I'll answer. Any hopefully quick have ask a timing update on one Day pretty in the that to will XXXX? Investor more

Marc Ganzi

these soon as will assets Day. we have Investor we of as So both host deconsolidated, the

simple year of year, back the And Day. we're So have second results course, we're of on with we're the a very if of update happy our leverage year. of where on very got Jacky just looking the $XX But I as business of this with half on cost now. this great, deconsolidation to me an and those And million out taking which delighted we've a are, making I half we this and fundraising, Investor give the looking quarter, initiatives. right to got specific we're few at mean will this Severin great, profile, be it talk to will just I you and of sharing about an things was year. a on is inside course, smile I forward of then, everyone and big this progress looking do progress we today which we great -- about can't time. all the final

Operator

Raymond Ric Prentiss James. question, with Next

Ric Prentiss

I things. to think down a Obviously, couple to we're bit. looking starting slow pieces of all But Jacky, out moving I a quarter, Couple called thikn of forward things. in little you the

the in are as had of some or earnings these of there row you've rest earnings timers a oddities quarters moving because year wellness Are that hit distributable took we're of distributable with Just to look we pieces, to couple onne thinking positive more some sure, but that see make happen? able the we a a there. through

Jacky Wu

last earnings we've done last respect what income we that the is note, is quarter have million This would that's to in we interest have And $X and which taken on recognized some our the wellness cleanups. distributable from impairment certainly just year. a with the

for So additional absent that, you'll on we’re a already see just go positive basis, at normalizing even forward that that earnings.

Ric Prentiss

that interest, is about what's important obviously think how with bit the that, for there. we carriers, sale an [affecting] odd BrightSpire on valuation? area Was And on little should there a carried the this path or is anything was

Jacky Wu

we side noncash associated differential. but with at X%, that marked that that then simply carried we up relative about pref book of that fact income funds impact the is with So on interest the to our the associated X%

did was In it that terms had to value at a BrightSpire, of we cleanup basically already close trade we a where marked.

did about BrightSpire million a through prior million have carried recognized an do impairment quarter while but what we didn't since about going our operating. the the was, was $X quarter impact would for of BrightSpire earnings itself, distributable quarters. to a bucks bit impact it we there XX But relative in So prior interest little dividends, worth that does

Marc Ganzi

full really the if quarter. think, feet now what done, assets then cleanup sold BrightSpire real trade you everybody. asset there we had key was a the sales I last this really to that are one I and mark up XX,XXX second, cleanup off the that's is is Paris. per last estate hotel I come call, the hope We the here, the Ric, did in took we wellness of to We on clear some, note.

Now look, we more on be can't the clear. wellness note,

an rights, to right we end it. was assets. have agreement, know to like don't paid we this legacy we This inter put the have felt was strong we the be We will creditor back. an the but of believe on quarter We note amount recovery that

decision a the year made we was markets. it. fairly in this already do So broader been time turbulent the It's that right to

take not now, trade the wellness a remaining get with cleanup this BrightSpire the and assets. done why with note So

easy a this So that and print very clean the rest understand. is for of to investors year

not and Now have down popular. can kick let's wellness we'll mark full we We the don't. said, not maybe just recovery, wait look, okay, the maybe note, the could let's that's road, we get

are the and profile job and coming of earnings. easy, is distributable half as to term year. half But the very having cost, going simple I've appreciate feel, our like of done I And we if where are our going and my that next deconsolidation. to we good we setup we've hearing into exactly to and fundraising very investors for quarters year, is very a this very a again, conviction in on year Everything the good leverage doing got I back obviously strong about this think to fundraising, for the we how And like us we fruition. algorithm responds voice, good is the have mapped back you're on feel the this understand. cadence quarter we our performing. and companies we're feel investors EPS clean, in about what This not Jacky three portfolio are reality being in kicks the EPS then

the, And on feel so three. of us this and call, to I all around really the behind what we done was cleanup colony for like us that. it's convicted so now last and That's

Ric Prentiss

[DPPX] maybe more closer. we're the have last point can on seems not me. that done. and suggest mid-quarter and get I we agency do, fundraising closer to placement some filed Form-D cleanups think fees. to about update Good saw your knowing can week that to but is there's say, for you a Two the One, lot you fees [DPPX] and Any

Marc Ganzi

and allowed incredibly it's these filings to fun we're when you be look, So not out, transparent always come with guys.

I our to try very going could kind you But is the let lot hands compliance we So What got in. fine first detail. commitments commitments is are a me you what I rules, it's would until strategy, Ric. in the first can well. with very of obviously wish you, given more a give next my have I've received new I you tied to line quarter. But we have walk tell tell

filing You related investors in was that some are were correct, there to Korea. commitments some

fundraising We've has attracting of Kevin highlight but is world news raising run Smithen And what the job. around amazing really, attracting Ric, and people the think the most the in to Golden see is only got an Leslie is importantly, quarter we're this going new you're good our reups I we're team capital, not money. done so that second XX

just this success no place the slide you think we people market a our a capabilities had we've Ric, tremendous in accounts. top team fundraising where today And a and and much got Asia, more with fundraising X,XXX to sales depth now literally I you team in they're in go fundraising, having II. it's has, deck Asia five our in how logos. in like And strategy particularly incredible now that in new Fund really saw there around theater new

getting of fundraising logos rolling in And as usually first of new some get in, think phase a the about the we are just commitments that reps. first process,

needle of for back to the this over we us goal And needle achieve do what to our at the commitments we and think year. want to XX%, here to of to I reups are as reps But have II, important. and new fact what's want we with us LPs from XX% getting goal this for believe that new year. hit total Fund $XX the in it and move very year, strategy, that changed half and is billion good momentum. going where the XXX the say I moving reups data it's that that because room quarter we're billion the the logos this this And QX and because, that's billion looking with conviction. were work, QX, we in our strategy. new of in that we're what's this we're that's the not we're in in that. will in haven't us doing new fundraising it's sitting we're this of me Over tune new objectives the in said, we're I beat We exciting, $X for to, My is Ric, the Again, we this year are XX% to going think obviously QX that's and So the to looks get my XX our getting and to Fund capital, working talking on quarter really we on perspective. it very

Ric Prentiss

favor. that on from slide, with pain, the will of managers? is Investors Last But is closes gap if versus chart? gap? this sure where and with digital versus what favor there, do the what asset that managers make look XX all chart causing that is compare right? asset asset to how interesting in Slide trying that do call in-favor what you [DPPX]. asset are of I favor, an is why feeling out got was that in gap, it to the as quarter is fundraising think And lot clean And favor there, me, the difference just close pain, all all the out one of infrastructure in in the out were all of kind to of What favor I the similar systemic managers, that's because of how slide? there want and the closes a gap

Marc Ganzi

right Ric, always, question. the are As asking you

that. I to assets. don't So infrastructure. favor and not you is pick cash the and I on that's fiber and out of it's in just But do assets. out aging the duration stuff fiber, tell of of legacy quality let's digital certain And start it's with enterprise to like contracted about what and centers all job legacy my data would the is stuff the flows The older its companies in resi and

that So Ric, scale. connectivity, know legacy density, for that folks are enterprise they they lack you they own colocation old, they XX assets, centers lack data those now as lack years to lack power ability the functionality,

and megawatt And a X so have power, starts a like that with of to force data someone data when able be center A are a cloud X you player megawatts you center. opportunity into with that only not XX has megawatts have a got megawatt going public to an XX you

has a Ric, because have the the in to we to power that data that power time, colo have we we doing XXX% customer. a the we ability jump, sitting it data center against XX it's have Bluffdale, and for Utah are of the the the are of winning there beautiful X megawatts, deliver we Now is land, legacy jump DataBank, and center be happens all and if new brand megawatts and

So art customer what inventory that the owning looking what last that's advantage. in Vantage new deliver like our nine the the to at months, five what done of literally fulfill Sureel space state new at is doing with centers data years having the that ultimately three built and is has to Rob has and Raul for ability density Roy like what power Switch, done can competitive DataBank, at in that were next

themselves. so and private want own DataBank, cloud Tier and this manifesting to and are those performing hyperedge them, are the We showing with assets you results that's leasing own right? public cloud, And X in now they the advantage are favor, in environment.

that's two So of center the tale really data the space. cities in

a level center, new more center, unless are take can't XX year XXXX buy land, a entire You center well data old going the a get you go servedletter. bunch data to make rezone it perfect cloud data it, and

own the you We of with thing what aging Jesus terms ability I space, having their these that are profile stood these be Ric, about those of have ago it I conference I for three resi years at own to we of are this the in their the think fiber City. room month-to-month sort so businesses look, and assets. to Park moment day types reconcile didn't has And types XX cash said, we in We come to in capital. at that fiber, years conference of going are not right times themselves flows. in to assets XX think talked is. not of of up -- business was just same a front buy your spend assets. EBITDA your To we've use you steered and three that investing the of those clear in And clear, don't

we these low see ‘XX repriced in space you tower highlighting are in window is ‘XX teens multiple the AT&T repriced, around window, when towers that and and down cycle the repriced, assets into deploying, really to pricing these the and this the And fundraising the a like Ric, into presentation sector look attractive, today is that move of that much were affiliates in we're affiliates the what when Sprint new we I are repricing and up. we as when we're a in and risk high seeing our opening this value this when is ‘XX ‘XX single new that's and the [CLEC] that opportunity. strategy Now this range, some and as the now from teens, digit is priced we that

cable I a some that. these they of think like favor that hey, bunch we 'XX. there's trading in of fiber assets you, a US come now to bankruptcies play Europe, were be the And interesting problem valuations and kind out is actually going want don't of tell of to residential back with resi in look, have 'XX we going so we're and in didn't or to the restructurings at fundamental and fiber. just in I some now,

right businesses capital structure Now into the on right come you that successful. could put and have you the really those those range, valuations can be

we open we new of big of deals new We're So we're pipeline looking have we're have a excited. in at, got our for billion business, we’ve capital, I flagship new funds. think, $XX opportunities sitting

to you now, so do know environment, Ric, what And in and you're doing. you there's we're if busy a to right go where this lot know

Ric Prentiss

take care guys. Thanks,

Marc Ganzi

didn't answer I your Ric, question. second

our Look, I'll We've There's at alternative straight a no legacy peers. REIT story, trading right it Now, now in we own we two into confusing that we're asset a tale I'll to narrative these cities high of manager and straight discount a the asset on. doubt just space. a hit an issues, had now. alternative Why? had manager, transition been that. from and fixed leverage all cleanup we've we've been up

X.X going we securitized that's at debt we'll times, we'll only million X.X the levered have once to deconsolidation, debt, have. we're $XXX to get So about of through be

oh, you well, makes our this north it's management $XXX by really at profile look not alternative fixed and that's floating. it investors way, easy it's debt, growing it a million asset for XX%. the to have has of of say, so securitized business incredible leverage And DigitalBridge And costs,

are that investors see the the doing. raise, flows, that's things easier continue out cadence and So us. cost to ultimately, to is what working we gets these for means take lot EPS business, deconsolidate, us of rhythm what a cash of as us think as that's an from we free And to all and the what EPS we want we we for continue become we're fund driven cash flows, and story,

a move alternative jump traded won't for of whether we'll on this some So And and multiple. for opportunity there we discount where is investors guidance are our we and We now -- you managers at discount a at to into names, we'll close soon the FRE we that at XX, end join it's believe into peers, asset next but year gap. I can guidance in do we look level that's if and DigitalBridge. think going our an a pick of to but traded of year, times up couple the trade that have XX that

Operator

Next with Fargo. Luebchow question, Eric Wells

Eric Luebchow

once you're you'll you deploying about DataBank. additional whether ask complete wanted and SDC how anything situation, your paying down thinking capital, about obviously, list? that you else to high bring talk current today the it's events about that's I up cash Vantage with platform, repurchasing IM whether just stock, liquidity deconsolidation your some preferreds, in on M&A, Maybe could

Marc Ganzi

has may this some it that program last get when opportunistically look, to we'll been Jacky more leading a job. quarter. and they're we this the Severin good hopefully, But doing preferreds in and a bought to continue a chance buy buy makes we'll with sense. So the And sound little in quarter boring.

We going so preferred those an there's and and where have selective. that looking on hold there's for internal an candidly buyer -- we're we're And rate we're them. being do where of to an we're we’re incredibly return IRR IRR a

that And so more I than prescriptive but that's can't be doing. what we're

to uses on it's to other the good like a GPs, whether it's a of of that’s to in whether we're for We is culture. of whether and I in fit renewable of folks people it's day, we it there diligence [Indiscernible], a at end and look, cash, And have some infrastructure, is folks think we credit, talking that in terms buy fit, there adjacent opportunity right, other alternative energy, number like other think out do the really in of we the there's our equity, us, numerous that business. forms culture continued private are asset managers/GPs. the

a companies finding and that are like matters building today. that some and for lot sort passion, that are our people scale, have that's we drive think us that scale not of But there great and our motivation So folks our easy. have don't

up say products to talking at managers this Mike thing. think it's in base. or have Aries, because Jonathan success, whether management Gray in same talking the you the with you're talking where or are alternative investor that they to right asset Marc all they'll hear asset infrastructure to scaled I match the Apollo, you're world the you're Rowan that digital alternative environment, having In from the it's whether

the that are investors up at happening what's looking what DigitalBridge. products actually Here's We right match have with for.

and as in success raising having and capital, success we're why assets. debt why and well having is where in having this success buying fundraising, we're So we're selling assets

our have our we scale little infrastructure, that and have corner in we digital corner, street size. that of So little

scale to going think you're it the in company. in you're And see flow. cash work benefits see it's financial so results. Jacky free and And last to And is creates have back this that is a that the on for of is will the earnings the very this year, our into manifest it This business hard the itself performance two investors. going I to for I simple been again, is of cash it. flow turn story. this This years to EPS an That's story, creating a

And in again. of reps. and So time right cash that a buyback where want certainly, allocation, course, of time Certainly, terms if there's that. that to work demonstrated intelligent do an we'll at put We've common buyback ways we'll to to we capital price, we the it managed opportunity in to get business, got buy place, of schedule. on the at the synergies it integrated times multiple, at cost effectively that we it's X.X at right we've deal we've stuff A&P fully we've mean, accretive out stabilized, can I got did multiples. in

this now So in that the you're in quarter. up seeing numbers show

So good you. question. Thank

Eric Luebchow

more And check least just a of seems wanted in it obviously tower XX%, just which especially lot businesses, looks me, mature. more leasing towers slightly are up Marc, on given business, impressive, for at in the one pretty like to was your US,

distress. people little see six are across could how kind one disaggregate least start particularly of certainly to like at to a leasing showing we in are it the that in performing downturn those So maybe signs a with worried might of the you about seems And carrier the in who's US strength? some XX months seeing and globe, are next

So commentary be would any on of that kind great.

Marc Ganzi

operator towers. another So benefit of being look, this a I global mean, is, again, of

EdgePoint here in with Towers, as So European the having out. businesses actually business real in gets in the Europe were XG Highline Digita having UK, winners what Nordics we rolled our GD having those up The ATP. well that FreshWave and performed think tower and and a really good all in quite platform recovery the premier is surprise

Chile, those assets So well growth Brazil. really, say Colombia, most are Asia, Peru those emerging exceptionally main tower in and they assets, market, really investors, little these that's now. We've street for [mediocre] would performing had a tower are right Southeast

growth by it's a by platform. the best driven and So those is XG, in of lot coverage we driven have that markets,

would is platforms board we just EdgePoint asset had those market US, to Bridge. are XXXX which have interestingly XXXX you perform, going ATP Vertical continues We say gotten here back biggest the narrative it's like taking outsized think they're Vertical terms flow being and hubs private yesterday, share. and Back to a really reinvest projects So and turning reinvest of it deployments. in it market the all flow actually our does other Vertical want other RAN leaders clock it free meeting of XG into in is into What that the secret business is cash I carriers Bridge as have when for is Is a year. the I Bridge free in its cash positive, again, was takes REIT, weakness new that's lower going Look, certainly it often of have CapEx a on don't to future? that builds, stronger Once the be a capital, there big last think opportunities this state I -- back point. think to enough. its the and plan. like associated than at

types and And so de amendments, colocation, adjacent and taking outsized leasing support novo of of share. XG is ecosystem. a Alex combination builds It's that new the market

that some of the with creative, customer space give They're new opportunities, credit. have some doing things I find they certainly to to lot leasing satellite companies, managed LEO team providers. a cable very So of interesting

So tower there is some related components. has some ground based infrastructure that

out And of go the some got So and to to got to to what LEO you has with you the do, got the opportunity been really that's you providers edges of work find the interesting. leasing.

you've to lease and and And to a space well, infrastructure. OneWeb sometimes our relationship a you that's leasing got Gogo. the Elon's ground T-Mobile, Comcast good AT&T, or some or now from just what based got And that's go step is further have likes as a of Group, he Verizon but certainly, not with been

and I play ways other the been here and Alex So there is it United lease infrastructure to in have XXXX. other ways and is doing tower the to States, there since space

So the up tower and to deliver growth this find year. going those tuck-in we growth somewhere he's between will this think go very -- smaller to X% domestic incremental in opportunities, know US strong business. that's deliver We how year lease Jacky why and X%, Alex

Jacky Wu

That's right.

Marc Ganzi

we number big one data part although, become So towers what is a centers asset do. still our class, has of

Our print. the organic happy to heritage business and in lineage strong were our quarter, tracks back really the tower with and we flow really cash growth this

Operator

RBC Markets. Atkin Jonathan question, Next Capital with

Jonathan Atkin

be to the cells? single for we kind to rates see kind change the you XX lead in digit small tagging maybe growth question. What there Slide on a percent or drilling growth edge, rates cells to bit are and small on the asset to of way and future going So might these talks growth little by a down about that cells seeing and of last forward, foreseeable of for sorts category are going small

Marc Ganzi

good hear the -- you So by cells small to side way. I from the look, think Jonathan, on

quarter. the have say, shoots sort On the customers. bookings green from in I we Good continued what small the to in all cells second three quarter, side, of would see, here

backlog thousands of seeing our We have projects seen stadiums and you and Verizon, we a from not I thousands indoor it's in bookings MGM have. certainly, in like but we nodes, which aren't been AT&T and football and when -- these big have of are mean, an return and the some business airports increase has of good. the

that's incremental being seeing of leasing driven out that. are We

are we pretty So about that. excited

all On the in the and are ExteNet, indoor XG going have at to side, particular, carriers in to X invest Wi-Fi upgrades.

the now And operator we biggest and of have I happen. And cycle them. with exclusive the think that casino upgrade that so which we course, term the largest one projects, opportunity, got is is are seeing of long in MGM the world,

all inside seeing And there. three big from so venues, in an the properties. so those infrastructure, up carriers out commitments new and the lease we're we then in an And we're obviously of increase and in took building

is silver FreshWave small FreshWave we a here the area also, area And helpful. very here think and Boingo strong about XG a just This captive and the US So where in linings is an cell US. in own here both ExteNet we're of really three UK, companies, and is networks. indoor private I business having the in success. Boingo, Remember that seeing some other the lot ExteNet

playing I And baseball inning three And nine were in inning. Jonathan, game, if first we're probably say companies we growth sort posted think space. in the of so all second maybe inning the of that, positive network private XG you'd a

really XG And Dodgers, we’re of private that's a it's XG that's those exciting, LA got at network, networks, enterprises, for so up Boingo, project. the hitting some interesting airports, private lighting an

progresses. there's so to the to CapEx space. in lead lot And somewhat outsize a be to and once to that discretionary we're is work. the that have with in customer moderate to going our is an to happening as I And muted, year But stuff have environment, where those strong And at strong continue ability again, Jonathan, market share. CapEx taking we're balance it's our companies put sheet think partners, seeing a

treasury And we earlier those I today the of some And those for sheet can call of help if because quarterly finance to of end job of in Jonathan, that said end them CapEx those at to CapEx, sort is wait their quarter small treasury, the quarter. the Our we some the as their particularly day defray the which to some Jacky they've our using of balance could the really in team some and some to job, of year. earlier, the on until and opposed it help year. CapEx earlier in year was Verizon T-Mobile's that push they of up of cells, extent helps we're waiting ran up as front up customers customers and commitments Verizon is end can the that always fourth provided push show do the and AT&T sit and them up pull that's right? on commitments that that the fourth our made in to and commitments, quarter, we part of the But and growth. are that till CapEx expensive, CapEx strongest our

of we're what relatively in seeing that's a cell the space, year it's good So kind small far. been so

Jonathan Atkin

any update CFO And lastly, just replacement? on and then transition

Marc Ganzi

and into Well, Jacky process, a board he's we're is one still remains timeline bunch strong with set here. working members, the they formed Jenkins candidates, committee, of that Ben our a Jacky of strong unchanged. emphasis would leave all that I at And alternative are of I the what final candidates is, the think manager. at very to tell we're slated you the year. end looking on asset is really strong,

do miss was we're he very candidates. do that that job on out digital and we with him. focus you're say, job we've year. between him now going do, And now, to that to And to of situation obviously say, asked Like now on replacement CFO him really part good who right he's Jacky, going a chair, REITs. we're asset and what would a an terms we've in go boards, do see the have stick target. made we is we've and the vetting us. adequate with we're focused. stay which miss our just So of finding around we're some Jacky's background the of for else we're And end we We'll playing But always sort Jacky, and who know this stick that around that the is us, of will but the I tuned, manager, forward. we're got asked hard wants where be future complete. he's doing, aligns now nine XX% got And is hang to everything I'd on back to is Whatever some process, target. transition we've to to welcome on with another to in squarely karaoke but alternative

Operator

Next question, Richard Choe with JPMorgan.

Richard Choe

in up co-invest series, much of be, kind we and over and to from raise. billion going the follow core should is of partner the others? to much that on be to guess, how How capital I I expect not $X that in wanted digital

Marc Ganzi

plays I quarterly out. the think billion this So publicly I record this. $X last call the how of said in sort on I'm saying

related there's there's believe then to saying We believe So to billion core it. $X we and to related uncomfortable don't related believe flagship. $X and feel billion we that I credit, $X co-invest billion there's

commitments tell that, taking is what today. Richard, to Now, perfect in would right? you I there's of all So no three swimlanes, those in we're science

and for filing that'll in So the credit with always for core. our their of be this out sure example, just June, this have And can kind commitments take to And cadence their product DataBank, second are big as then flagship clear timeframe commitments allocations seeped been with allocation. to taking the we clear leasing liquidity make that we clear said, were product. everybody, also big of pensions have continuing very in through at now our be set and very pension that and June first commitments be that very would sort it's a that's their in We of with you in LPs to release in, the been now about clear in we're July their in quarter, about now. we were that you, credit right mentioned usually US close that is March, to their we've all us, to new co-invest. of of there. first core allocations quarter And clear big those have US was which very clear we what systems is tell we on allocating taken We're couple

you second goal to very tell on with kind been heard Richard, something we So of on which in the is call, day, The money be of you've third And probably it generally the Blackstone a that in to the XX or again, billion going Ares conviction a raise call And we're that I remains everyone, that we quarter. quarter, asset you going with capital heard to clear and tell in days. raise we lot the dissimilar Fundraising, is speaking, you here this first good $X rolled, bit number. raising have you news quarter, will same slow other it. to alternative that would we're the heard managers. in has convicted XX isn't are that or want little we're some beat money some the continue fourth our

So that's in what sitting we information have fundraising. I'm really the focused And about quarter, this feel we good on. from

Richard Choe

at on then lot that something attractive the because it's more a be would would very side, that potentially of kind in, high resi color the Just are something trading kind you prices? it seem at fiber valuation… you this just especially scale, one-off didn't of there, need any would of just And interested you

Marc Ganzi

fiber and a an folks like thing capital been I many this buildings space. there. a you Perkins, And debate the I extremely of raised funded against look, you cycles, street, lighting of carriers and think, you is Well, have a fighting resi what But math to the this Folks And is same on between wrong you next that environment getting like [MPO] streets, So sector from look largely the better XX% if strong going in everybody me was have XXXX and unraveling longstanding a get different in that RBOC go happening of Zell there been down the think never the better funding has and the to defense is space saying been the Richard. residential five we previous and fiber Sam three what putting penetration, well went were sector XX% had getting the which RBOCs back the XX% four got four in knew cable all carriers a builders Kleiner that were they doesn't at buildings chasing lot idea five, of not back, to thing penetration, we some up my has bill, NTIA work penetration. six into there again, in to are building fairly penetrate has an penetrated. fiber fiber you to now all issue if XX% What wrong went same and providers. all, has notion were through over today, is that's folks the and same positioned and and to the everyone is environment have The plagued into and to or other CAP office you two, XX% is play underwriting America companies. across CLEC funding take US. XXX% take penetration the build the with against where run same overbuilding,

builders this. times, at they cable and example, when ends and movie I the the a have great large such incumbents XXXX. Richard, research and space market. CLEC your winning? winning. does JPM are coming that for And you how who the They moat know and Over succeeding, occupying on it, are you infrastructure this. coast, like times X% is of in XX the not firm, Richard, builders these these so in reading ends. over really this than you that strategic we have looking know enjoy less and Basically see XX Who's percentages ended bring the lot how It funds XXXX paying a of to

is pain So there coming.

of itself in Europe. Some that manifested pain already has

importantly is, I capital conviction like is mistakes That right have recognition. sovereign responsibility prism team and what 'XX, on that I'd remind it's through cycles don't we We the past their give invest through I residential and quite here stayed our wrong. were And go that and perspective the the those wisely. funds, enterprise me which 'XX saying experiences when the the we transport largely in pattern at through having insurance the that going patient. we that's at sitting stayed for well it and and most at in DigitalBridge wholesale we I'm and studying 'XX invest going I'm We space was fiber happening. All Richard, right I'm pensions, fiber It Zayo was been infrastructure private on look based predicated my on we in call look, went and out so investors made. to performing nature bet not CLEC waited. that space. very and businesses that's are We call to and wars enterprise money, companies is, call sidelines, focused now, in or do a my can it the 'XX that I wealth do, what of our the and lot call. the make right of forward. investing team A And of what And was back study go on right on fiber looking wrong that

we where today. that's So are

restructurings. to is there said, Now that being be going

a our our fiber. and credit of and it example, secondary fund, Dean in Mike, so are Parish, maybe are structure, getting we job are Josh that's risk led the Chris to low the the part great by by investing stakes team, structure. way residential and are mid Moon we second we a fi] is which part the of in play We playing Why? fibers the teens and returns capital, right adjusted [res credit done they through And capital have taking are lean on basis. to rewarded, residential getting And we

ways digital is infrastructure. different there So to play

key. the Here's

If you that you are make a to have common in DigitalRidge, don't decision. shareholder

whether through pair capital, that more two and that's like that DigitalRidge street clearly quickly fund, we it's about I with to back growth opportunity, opportunities the credit, see we story, itself those calls last have that whether years. we the every are as with with will opportunity right flagship But feel three day what management see that capital to year. well do I You and it's we our is it whether every key. to the opportunity. triage put every over core, about and our is now. fund, it's And is the the ability we this team own what most half the really deepest up digital wake venture The really in we the world ability made in corner whether of it's infrastructure. said, manifest and professionals said, we experienced good the And XXX

performing portfolio, well. really the it's performing and is So Richard,

Operator

Next Bank. question, with Deutsche Matthew Niknam

Matthew Niknam

across $XX in infrastructure, I'm market tighten just swimlanes and all? question, and key the can then one. multiples and that team if to a the to wondering, million embedded institutional you the broader private guess, are year corporate And the talked and wondering of you trim plan I'm latest LPs. it some was here about I is So digital second seeing talk seeing valuations footprint in overhead from set public million this just you XXXX? around of this Marc, maybe that's question just -- early you whether are between to gap progress the target about can at whether about by about you $XX expanding talk if

Jacky Wu

are seeing about terms board. Certainly, of as private across talked continue very the But and we valuations multiples demand seeing ton our and to and multiples, very users. up, a have different look, what a would space, Marc it well, of because and think we're in be to versus it in to assets it's So private private assets public and have especially the still that tailwinds And as a that realizing well end what I has and we're sector, people recovery held bad good the seeing that the across I customers trade valuations assets with there be sector. public continues strong continue great resilient say pipeline in marked story. bookings are is very across

Marc Ganzi

Yes, think I right. that's

the of I back too. a again, think little two that that -- earlier it is the we to bit cities, tale about question got

mean, color saw, we networks saw deal, assets done, values on EU Jacky, trade really high seeing I been But valuations, going fiber put valuations. that example, we assets, digital know, both those at Mubadala told in perfect were high, held capital quality we're quality think, get were is for a don't you we those premium. to for I we're the deal have high we've it in. some what

done And at quality at a in outcome, think, that And there's for that impressive an us a cap the the high effectively a when example place. and that's number, an say Vantage look, Europe X so assets. is world is in of go, wow, appreciation, I got turbulent I fact But that rate. great right? light that, investors look of low think, We we

XX-year what contract, investment Matt, great got it's if asset, XX% that's and is CPI protection. pass-throughs that utility escalators, have you're you today, you've think grade, I seeing an inflation

think Some I those coming other to has cash as occupied, roughly part on is incremental respects. investors data will exactly And some that that leasing yield are say, cash returns right X% so now. of the well. actually there's hey, certainty treasuries was, But a I that's in, what centers that X% in want drives than more deal mid-XXs

got to environment. opportunity no has is XX% offer IRR in about cloud bet make safe today generate going And this to an asset a you're is would literally XX% the that so And to infrastructure that you've investing on in risk. a I

So is value I through continue year. the will of -- think I question, that rest this a will and Matt, you go this

and tracking selling how private. some some also on we've value. going up strategic to multiples things been are will quarter the assets buy You we're assets public our ask But good how through first the that continue tracking up, public this review holding and sell. we're of -- to think have But I holding assets And there to market our getting getting is clear the high and is very I'm buying. so you're the sale better are you there's private going quality we right year, sell if businesses assets market now the have is us where far that we're some

Matt, when because escalators. got cash to we actually our any But our defended quality in, we're are the really marks, holding portfolio high private leasing, so portfolio, that of flows, comps lot. portfolio the didn't wasn't mark we're saw it it have ours was lot comps, one shows are we it our mostly our Again, year-over-year, the public is in leasing DCF. toughest it's in news slight organic values not was valuing a key write up, marked our in up quarters the and way time, because a the valuations, a say, but valuations, when our and good it DCFs of quarterly And up. a you it's in like And long a in down discounted a

escalators lot taking but And CPI leverage core leasing, of this so having our year strong in not based. a was QX growth, of cranking results our organic portfolio advantage of that what delivering are kept in

had we operating so terms in of at And level. the very company a performance quarter strong

Matthew Niknam

we -- the about on just the targeting. And set of talked LPs institutional you were broader

you'd on that's Just the corporate targets call? referenced and the overhead if curious embedded last within other

Marc Ganzi

No.

Matthew Niknam

Okay. appreciate But We that offline. can maybe that. take I

Operator

Jason Sabshon KBW. with Next question,

Jason Sabshon

So a couple questions…

Marc Ganzi

one misunderstood question. Matt, I Sorry the just thing.

G&A So you IM, in to the that so just know is be fundraising that team, clear.

where is we capital. raising to related costs they're the ones managements, our investment allocate those all the So because

we Sorry Go that. weren't if Apologies. about ahead. clear

Next question.

Jason Sabshon

are and So real that's estate correction like in a the and JLL, area. infrastructure for the focus given service seeing broader CRE they've a you sectors. guys technology out digital companies infrastructure playing commercial audience CBRE traditional made

your So to just wanted on hear perspective that.

Marc Ganzi

of Sulentic use division is a with Their of do and Seabury things. a Vantage other lot fund Calvin puts services and some on side. Bob and a we capital them We work into and ours. funds Look, JLL SDC management our partner co-investor, our and CBRE as

give credit. lot it So transformation real of the both I commercial have focused how a give them credit, on But digital CBRE same of impacts JLL estate. and been I very

CBRE is do great pushed lot they think and of going part example data have of of advisory digital and Both good center big a us data by space. is really around with into a they they side a services JLL are side recognize the forward. I center that work investing what that, CBRE

recognition, are leases. particularly We businesses. they're environment, a be X part is in own long estate term Because of those center to Tier commercial real land, And real Why? And changing. the tenants, end ultimately, centers, private is big tenants critical those we land, of commercial the so leases. to estate, business buildings, data data it the But to manage it's cloud, model at centers own is sign and the day, fundamentally, is entitlements, building, it, permitting, the the as related mission And real accounting leases. All Jacky real that knows. PP&E, signing real space. hyperscale estate yes, the cloud. are And infrastructure the into tenants honest, data based, the are we estate of estate the that a the commercial private cloud

going estate adapt, think, to change have changing, so to to, to stay and alive. have I And firms with see they continue commercial real you're they advisory these

So question, it's thoughtful appreciate it. a

Jason Sabshon

are about energy? opportunities and complementary secondly, what traditional thoughts clean your in then And infrastructure current

Marc Ganzi

That's thank look, actually Well, we're iInfraBridge. part you. what of doing big a

think that saw great ability to space. the energy in we go I A&P the things renewable was acquisition the attack of the one

year liked A our for over we is really of forward Rob's I customers. to investors that last it XXX% data the think thinking important approach I've is, lot Switch centers, having outlined Switch. why have is really how important to renewable did we

beginning can embedded center be the this today. last power little in term. And the create about we that $X think of that up trillion of forward public footprint know probably around the AI embedded of trillion are about we this carbon the going that infrastructure time building really this so out bit public And business going to to at we more doesn't drive And know What the for spending it times about X was mean, something a because years of is call going the the planet. compute. future $X is AI long XX ultimately data this we talked cloud. takes that cloud, we of We space renewable building out to in is space, take the us is the serious, is performance on that I notion

we so still building we are and have And years public today. imagine spent last XX cloud it building the

building not the finished public We cloud. are

now building course, we And years, just to Amazon, running hard, to build Chat, companies infrastructure. And got that AI with OpenAI work is you the started whether this cloud have the out Meta doing. at Switch is this three really four opportunity that whether Google last it's work have and in the all it's Microsoft private whether four capitalized go of We doing. through have incredibly it's well

then rates environment all compute, go times X interest high on lift that, big. infrastructure you this build more is where the is an the we to that capital And are they need So constrained. in put of of racing are and more top

we’ll this States’ so to we know is new power enough of United to update next AI sufficient on investors we is that it. continue in couple the drive accommodate there And initiatives, the needed and also is these grid over what quarters. to power not But the that

So we in of sources with up have Same to Europe. energy. alternative come problem

it's to. at forward going necessity having is whether right So of is it's absolute next access whether to forms alternative it's generation technology. for we renewable an have energy solar, we looking creation, to now, are DigitalBridge energy wind, power the This of everything whether other

Operator

to like further closing floor remarks. would the I no for questions. are over There turn Ganzi to Marc

Marc Ganzi

thank look, We for on quarter, quarter it really Well, you time DigitalBridge. everyone's this appreciate and an important was us. diligence everyone. recognize We

there three in onset really that conversation, point As I matter are things at this said at the this time. of

capital. we and First to foremost, continue have got to raise

de-lever in the We both progress converts. made there. that off balance sheet. maintain that, key and we've in this tremendous liquidity made We our did quarter I've are paying and a and our equity to doing debt Two, priority it

to rate money model, be great based towards is position your got we continue And at have this in And companies, our got for and to the what We have with businesses go Cash to that, business we liquidity drive got do that obviously have ultimately environments. business money thoughtful grow drives to and cost portfolio to shareholders. business prudent run to out of a to have in the million in that's strong spend customers we then terms continue And out continue our liquid quarter. got performing for and continue public we're responsible customers, we to about And you the key. of And to G&A we be to are first happen. an have how the for performing we and what cost for to and give DigitalBridge. the going that performing and We to show of earnings we up be that's flows continue LPs to took we these are you, opportunistic making over are forward. our $X us performing of perform. going doing preserve are three,

important an quarter. was was quarter. a foundational This It

really narrative our and story clean to we're out forward over weeks a we're are a the excited very the with doing. conversations of shareholders that clean having the coming to talk all next three and We quarters looking about with play to things

thank So you day. I a to it's And to we'll Thank thank an public open that, I'd and have conversations further to want you. for And Everyone, great conversation with want if to support. team our with wish for you us. you reach your out have the invitation, please end Severin welcome shareholders. your with every our today. patience, I call

Operator

This teleconference. concludes today's

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

DigitalBridge (DBRG) 3 May 232023 Q1 Earnings call transcript