BRDG - Earnings call transcript Q2 2022 | Bridge Investment Group Holdings Inc.

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Operator

Greetings. Welcome to the Bridge Investment Group's Second Quarter 2022 Earnings Call and Webcast. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to your host, Bonni Rosen, Head of Shareholder Relations.

You may begin.

Bonni Rosen

everyone. morning, Good Bridge conference the second XXXX quarter Welcome Investment results call. financial to Group

remarks our Financial Our Morse; comments include prepared from Officer, Slager; Elsnab. Chief Executive Jonathan and Katie Chief Officer, Executive Robert Chairman,

will Dean Vice Solutions which Group, a remarks, the join. Head Allara, session the Chairman following We prepared hold during will of and Client Q&A

materials of in be call site, the are also found under slides slides. over the non-GAAP to is now the of Presentations call, call The It metrics. They webcast. reconciliation supplemental IR with our we During portion earnings second on can Bob. our are are accessible event will the my provided the link. website, financial The the quarter pleasure the These the turn during of live discuss supplemental certain available along to non-GAAP ir.bridgeig.com. appendix metrics at

Robert Morse

earnings, earnings growth XX% quarter, the billion consistent fee one Fee-related and share, our operating quarters AUM our increased is per fee-earning management the and $XX.X XX% for Thank the quarter ever you, results million. excellent fees. performance to share Bonni, for company distributable to strong and revenue strongest reported increased Gross $XX.X billion. year-over-year realized $XX by welcome to of AUM in our to about year-over-year XX% a Distributable $X.XX earnings best Bridge year-over-year financial metrics. all. with growth second driven increased to for key across

expanded impacted the and half markets, of revolving those $XXX XX-year have geopolitical inflation, secured enhanced via facility increase issues with of impact liquidity $XXX And risks. Fed half market actions addition with private $XXX of In Bridge senior financial these around million by to strong of and recently, to more with credit become million, in coupled turbulent various Bridge Bridge environment that tenor. continuing XX-year markets balance with been aggressive certain to macro including in the including million a all tenor with which The flexibility. an we high although has a factors the its globally potential senior performance, placement on and markets issuance strengthened affected. concerns sheet giving circumstances, notes, numerous The differs, participates,

the of specialized and in XX% continued AUM, theses for-rent past and to strategies perform investment approximately workforce well. For rental are in be and investment the constitute most single proven housing, many our and U.S., recession-resistant. gross underpin part, our strategies to which resilient investments the our have affordable Residential multifamily, debt of family

begun However, both which and remaining seek unemployment impact the turmoil higher lows. certainty The challenging. remains spot sellers volumes, the the U.S. bright a rates labor economy, market market has with more for to made record transaction have buyers have as interest financing near price slowed and

growth Importantly, along continues balance up, nominal to hold with wage consumer sheets.

For general, offset residential earlier. rental the these strengths help to real estate, in mentioned challenges

designed from While to the we benefit acknowledging environment, of views in our address and conviction near-term and themes. have are our strategies these challenges, continue to investment

in real U.S. this abilities have investing in exposure we turbulent our reflected in U.S. times. international this with partner preeminent limited continued assets continued in these base access opportunities see capital. our demand safety thematic-driven in by and investment to and destination, U.S. the the the the First, flight-to-quality and investors, to for numerous We is provides to exposure expand

our market focused since more significantly time. have significant workforce which XXXX, and At are the projects is the and underserved XX is are to cohorts housing and the in U.S., resilient critically these shortage of recession-resistant. supply-demand in they are impacts U.S. development XX currently pursuing development a middle investments all and our sector. and team Bridge, invested sectors environment, on housing as class the multifamily in development the Second, difficult imbalance perform disproportionately virtually capabilities, new we current in exacerbate undersupplied in expected should The professionals have well, in this the over grown

investments Bridge of multifamily capital XXX has capital current our our a in returned multiple predecessor dollar on investments. lost funds, in never and and X.Xx a context, realized For of has

X.Xx pleased execution the We see capital of are XXXX. especially quarter dislocation, to multifamily continue these with since years robust market past first our through in of few of a multiple

and U.S. system. has launch of needs chains. substantial in attractive to critical And into of infrastructure supply since has of logistics the the invested the onshoring nearly our value-add the U.S. of growth facilitate sustained million program $XXX Third, assets nodes Bridge e-commerce, the infrastructure normalization investment U.S.

launched have area. this to fund of in grow our the expect second this exposure continue and vintage We to

sustainable meet and alternative demonstrated strong of believe and green Bridge funds underpinned delivery Solar Bridge by Bridge-managed closing Some and of Lumen and by risk best-in-class seen by always long-tailed satisfied time detail situations. huge the yield secular Bridge early in the to and Income of successes of at demand billion, with solar in process carefully properties yield owners new quarter-end, Fund construction in renewable releases in all energy Debt technology, properties to need accelerate Net in Solar in Strategies that ongoing to and hunt which same demand recent been energy Bridge partnered existing generate of software urgent acquire, we discount and development third-party $X.X leader procurement, the noncompetitive credit Bridge global the while for offer has Bridge some addressing X while hedged to Subsequent IV the expected Lease market which assets final on project we the prices, a Bridge growing amount I've with and clean attractive investment attractive may a have is asset and there energy Ventures, in providing vehicles, press design, Last, structured seeks rates, a recent our energy. increases investments investment increasingly without vehicles. as a vehicles. our assets. focused strategies, The our in by have complement has projects energy drivers AMBS able to Energy, owned markets we our is notwithstanding launched for described. interest will just to the often strategy fundraising which operation

Our and in untapped. has national footprint largely in Lumen's local attractive analysis that of implementation efficiencies with the solar market expertise, will technology, been offer combined and a high-demand data-driven

Additionally, regulators their we roles. demand estate from portfolio as seeking for implement ESG see solutions real new investors

of of solar real installations we for over and returns distributed of offering usage, expansion significant and addressed potential, estate goals development only generation. on near-term of XXX Our investors. about megawatts ripe further tons include the power of have Small-scale clean the commercial to market XXX,XXX is coal of the a while network equivalent the energy, believe of X% creation

The and as Our of excited opportunities. a and launch. strategy industry and execution are about its leverage X about vast the investor in and the planning, we invest to Ventures access will relationships is companies. very uniquely investment target compelling years result PropTech forward-integrated PropTech strategy PropTech platform Bridge of positioned profitably is Bridge to

Bridge building companies. experience over in investing Jeremy Officer, Our Chief XX and and real and Investment the years technology, estate relevant Ventures bring high-growth of team operating Ford, technology

new strategies. strong believe and current potential expand investors. perform it we and excited we a resilient in into retreat generated see is great segments growth environment our be venture our have this for We for our where market. to time is these from entering already believe interest positioned to pricing, With well business with to and investment investors recession-resistant in Bridge recent to existing shareholders and the that continue the for our We're

forward property Our management positions portfolio. integration existing alpha operator our results Bridge as driving differentiated a across and into best-in-class

of in continue buyer's dry vehicles market Bridge of powder. and We but have turbulent past continued our has invest market. deployment in executed take have a in successfully a to to as opportunities capital raised arise In many they cautious downturns, investment to advantage significant

Finally, we challenges. detail broader over sheet markets the well through our position are strong a to to perform let me results while Jonathan perspective and work that, as call strategy. a With further the to from balance and mentioned, capital in turn

Jonathan Slager

Thank everyone. and quarter, delivered deployment another performance and solid realized Bridge Bob, you, strong fees. fundraising, good morning, with

the many the year-to-date, fundraising which in resulting Preqin. We of in of to continued success, inflows manager funds $X.X billion contributed our are by our frame a This billion during with is billion has premier $X.X real ahead to ranked estate in of during XXXX. quartile top us were the investment $X.X we same bringing quarter, where time

AUM in deployed. raised this in included Second Debt Fund capital which in Debt we the million Xx final closing quarter until note, is $XXX Strategies commitments, amount Strategies total billion IV, almost III. raised fee-earning $X.X equity Of in of it's yet the results included not strong of

amount strength of in raised the successes XXXX through of closing Bridge we final from reflected global income-focused the its a raise, position of managers for fixed ranking between fundraising raising of opportunistic January forward amounts investment raised of capital estate Our Affordable number quarter, real end private where estate Diversity a by firms strategies real globally is as the Workforce in capital. capital will we results announcing capital the company. These ranking real to based third is XXXX are our have raise. estate our discretionary successful of on Housing results our and XX PERE XX. verticals. and our in rose not March very to in higher equity This do results number equity the for impressive the of look II Fund include one meaningful strong the or most value-add and in final These attracting sources

healthy individual commitments a XX% institutional mix and from in have with of of institutions. We and from QX XX% retail both new investors investors,

furthered our milestone meaningful As Europe expanded direct am in as This our a to us efficient continue of license new activity capital environment pleased in which was consistent turbulent investors we dialogue. XX% we quarter and welcomed our marketing recognize of Luxembourg allows global relationship capital the capital the are and and record, or in performance report internationally, outperform to more to effect a deliver manner. our the so-called the of this and denominator sectors we I are efforts market some approved well second alternative capital. due headwinds, of have raising the of network certainly our from capacity, We meaningfully and July. cautious This raise we important was during managers we committing raising current to track we in as navigate institutional said, to roster, That result our a to we investors to in our continue QX, to the positioned with performance believe came attractiveness have our in expand is and attitude AIFM broadened with more clients. strong as our new investors environment. success whether capital other the prior Despite our into evidenced due to have strong quarter consultants commitments international simply a key less that that wait-and-see a investors. XX

Over to quarter, is AUM a up year the to compared fee-earning $XX.X billion, X% which grew XX% ago.

fees, multifamily of in performance continue X-year to driven and III, assets. anticipated This term. in by one We continued realized largest our assets monetize well-run, of we see is X at for had during as XXXX, $XX.X strong which also XXXX to its million. Fund We interest quarters occupied Multifamily was fully Year stabilized and mostly plan

more In commercial side with coming the of in investors a drives attractive deployed in recently, we’ve We our the very real fail. this cases, seeing in certainty million estate market but deal Sellers pricing. of More across an of more transactions experienced quarter manager, funds. aggressive a active less favorable transaction us observed with appreciate after $XXX transactions. best-in-class at which pricing business, we close flow slowdown are also the to many all had at

to costs, While we into internal manage strong quarter, deploying national assets Group Debt in while discount relationships banks. a with were selective Markets conservatively in our buyer us a debt financing and volatile strong leveraging our always helped underwrite the costs. continue carefully and to high-growth locations, replacement regional curated markets at Capital our high-quality our markets, In be

biggest confidence assets. lower the We’ve and contraction and lenders, is is on of overall chilling for which securitizations, individual One the liquidity leverage seen spreads the investors’ ability debt the of higher volatility a obtain in the debt in slowdowns markets. This overall. had provide well-priced which challenges capital impacting to to real of significant the has effect estate leverage markets, in of resulting capital stack

recover While do in impact we will until markets this will volumes think and they the to near these continue do, pricing. midterm, transaction to

in We chronically hope intensified which by revenue how remains only verticals, drivers. logistics to to for particularly which transaction specialized of in have growth, come. consumer our and rates. third and fourth residential which view demand year-end. of outpace see interest and to are some As a reshape continues increase positive result, are before has to Housing onshoring strategies, in we rent more Bridge for cautious a continues quarters. long-term recent to secular our e-commerce inflation. the fundamentals stock see recovery United the penetration These the Similarly, in dynamics goods continue to meaningful years U.S. undersupplied, with distributed are the States contributing of will supported

the by the and markets, assets portfolios XX we’ve to rent across expectations. support well exceeded on above in those seen last global our significant second executed growth generated yields. rates multifamily our in logistics, during quarter. substantial Our negotiations late-stage pro underwritten providing In acquired of forma gateway increases XX% on have XX% leases months, Rental core rent

Bob continues raised its recent and while most on strategies, almost as to of capital estate. focused and existing Bridge our of Bridge such well point our the within Strategies, investment vintage illustrated Debt execute have add real we Bridge Bridge Xx is As This which from you attractive by business Solar most the heard some scale earlier, sectors predecessor. of Ventures, commitments

Multifamily Multifamily Our substantially be and of Fund larger to our larger will is Housing than IV. predecessor, Affordable Fund than second and its vintage Fund V be expected Workforce significantly

trillion We to ahead estate growing today. these and market are results you, $XX see U.S. incredibly runway Over addressable a a Katie. real large proud and long approximating of with total of

Katie Elsnab

Thanks, Jonathan, morning, everyone. and good

of a perspective operating fund growth been XX% $X.XX. provides reoccurring with driven underlying in fees verticals. fund new Our strong and was $XX.X their an the which the QX. XX% was volatile million grew the $XX.X GAAP the investors has fees to $XXX.X and company consistent Reoccuring million, Most our have continued proven into and year, management into true compounded In million, years. resilient. year of income business to of expansion business. outstanding our ago, GAAP $XX.X and net our prior over environment, rate up existing durable This versus growth, per management macro this growth performance a continue million and a the stability increase X our to importantly, share on from last growth by strategies more year-over-year scaling be earnings

nature, are X.X management vehicles partners, capital long-duration and upon volatility. from management closed-end invested almost to with market all Our with entirely our in such, management features. of and no fees Essentially, from either our are subject are committed an based redemption tenure not years, limited as of fund or fees fees are

presentation. Our are non-GAAP of the Slide metrics on investor X found financial

AUM. continued our the AUM by Jonathan and the AUM Total to margin the was XX% XX% the strong to operating fee-earning catch-up and million. double-digit over Quarter-over-quarter, last on our up deployment. $XX.X ago As $XX.X the healthy increased year-over-year was were quarter a growth higher fee-earning basis. driven year year-over-year distributable record and to fees forma from billion quarter increased mentioned, was $XX.X to to earnings fee-earning of $XX.X a XX% million, end management Pretax the $XX.X which a company impacted fees. effective company Total of quarter earnings by to to margins pro by earnings revenue revenues timing strong its year transaction XX% increase the XX%. million, for year-over-year performance fee-related compared million, The XX% fund-level operating for fee-related a and continued fee-related at quarter. trajectory to growth, X% increasing fee Total fund up primarily last was in on a due on XX% grew second fundraising,

realizations declared realized allocations. performance all turn in were see business earnings million created were on Our been our to after-tax performance carried goal strong record. the quarter. balance line driven the earnings per second our a If fees value we interest value-add you the and and and the XX% $XX.X shareholders. including per by driven $X.XX the to our $XXX.X by the that on performance, high-growth distribute assets we've million. earnings with incentive pro components brings representing a can our of allocations distributable from in Unrealized forma fees AUM the investment large basis to unrealized focus Realized growth, per increased increase impact our QX, to XX% multifamily increased sheet markets. the of includes to has vertical. on $X.XX dividend share, distributable share of This and quarter performance all for This of the by Bridge substantially share fee-related $XX.X detailed, a of was The in our best within million on fee-earning performance quarter. realizations through

arrears. allocations quarter in a our As accrued are recorded one reminder, performance

As values such, XX, XX, March XXXX, the recorded the June as marks of reflect as of XXXX.

sheet These As balance Bob $XXX the sheet senior in on of notes therefore, balance weighted-average notes average X.XX% closed a next our with of quarter. mentioned, issuance and rate we reflected duration strengthened of and, July of years. interest be XX at the will million

addition, another refinanced million, facility, million senior accordion secured million. $XXX we for $XX revolving with to it our In credit from $XXX an feature increasing

these for and our use We operating grow business. expect general to purposes to proceeds

the look have half proud are the we built. we forward of we second the business year, of As model to that

capital While strong to many highest-growth specialized teams, and long-duration continue base experienced the positioned well the has results. performance there on are in world, uncertainties focused generate to sectors, investment solid property us integrated our vertically our

to back the that Finally, employees work investors. quarter of questions. the take their will that, I to can our want this and your operator for appreciation my With express call we hard each thank our turn to I so

Operator

from JPMorgan. Worthington with Ken [Operator Our question Instructions] is first

Ken Worthington

plan launch investments size, fee rates, you If how plan PropTech? investment all thinking you’re idea to of sort you how in with to timing, your those and sharing your and talk some a about fee solar can you the the how first, Maybe around should bit monetize can around of give us monetization. you sort of funds logistics think about about we partners,

Robert Morse

thanks of your for both Bob Ken, question. speaking. days is Morse for those funds. This early It's

think be commercial understand As think participant us fund format. we a this from commercial that real the initiative of to certainly capital good energy on some market solar been that It's aggregate and think Energy. worthy markets, every be is prepared business entity industrial our And respects. both to real the in investments big that cases, estate of highly an minority the how is statistics the that strong. is Reduction the that renewable on Bridge Energy. Inflation quite investigation for it a We for I is market. asset in to installations management regulations, ESG-oriented the of separately. relevant Lumen expertise, estate the passed appetite an applicable, time. in working the mentioned We the Act Bridge Inflation climate partnered Reduction we've applicable is in the perspective GP Lumen of solar in quite there's economics virtually a my investments provisions is We evaluation raising for construction better are What solar and but with lot the contemplating very brings a we that worse, strong. we whether along gotten recently I which, just either our Lumen of we've of is estate best huge is energy the remarks, an case particularly fund many And Act, with in would is is to market? bring is, and technology, analysis Energy of of there. much that renewable real have in for the And not assets of Lumen around in don't of investment made with fund. has better, translates on one big that think knowledge than said our and network new How solar country the solar a is

fund. in renewable initial from can build The ownership go as is closed-end into fund about raising mentioned, flexibility of launching transforming although energy, that of Our as we and a the has to is and structures well, hope of XXX it over the early we capital other we're time objective, for we're stages megawatts there. fund, that

X the head up the believe, fund. and I raised proposed PropTech the philosophy Ford. is leg of the everybody be our fact a traditional above to were a with of PropTech. his a we've of venture been in And to in property gives management that the Again, CIO, have viability space, opportunities team's real we fortunate will same this terrific selective structure boots as assess at and Jeremy of which else we of sheet commercial that a management. because into experience be we can behind the in deep PropTech venture PropTech a We a to investor Jeremy this integration of ground in actual smattering overall lot point. format out on of investments we closed-end knowledge property management is on or And of and us going shoulders and He the and has people. forward years of quickly contributing developed will launch X somebody PropTech and, investing hire vehicle knowledge think into fund interviewed that We the our for be technologies balance stood think the so Bridge estate, the that's and we a very a over and operation and fund. combination forward-integrated fund. we're accurately

Ken Worthington

of combination estate to July. alternative generally, and cases, quarter And and, fees lower the from Brilliant. sort entrants, from of a And just in of maybe real use retail, the retail that earnings some new channels. into various brand and heard retail beginning seeing through try the then season to we’re outside also penetrate on slowed end products of throughout others engagement we’ve

your on is retail what still in are distribution dialogue that topic your channels? up a of really wealth the comes sort table? is regard And channel partners appetite, any not you that of there So fees? seeing with with to wealth Or terms in that’s

Dean Allara

is just Dean. have pushback we any question. a stop what available. reading there that vehicles. that and We're not full perspective. obviously on Understand QP qualified this I vehicles, publicly fees. seeing Ken, We're you're purchaser Great reading it's mean, from

So we're at perspective. that channel. and the that channel in upper think retail I the -- now the say from in that I end of continued year right perspective. that actually quarter in retail say to year-over-year closing the out a differently, did into from look retail next would with of We're New outperform we're Bob. we're this we're would York dialogue there I having year seeing to beyond partners and next platform and number from perspective we And this RIA year year this fine overall. the retail week at I'm going late and continuing meeting with Said that in white space channel.

that So, I has the that. marketplace by think investor the retail volatility seen, of the in investor, retail the some certainly there’s

not warehouse quite is as the growth RIA that into space well we quarter-over-quarter, But of white expand in about more particular, -- sort perspective. to just that coming I from coming right year-over-year importantly, the channel, there. we every there That’s continue saw out We’re seeing in back now. as see

at -- seen we’ve no So it all fee point at that in and pushback this time.

Operator

Morgan with Cyprys Stanley. is next question from Our Michael

Michael Cyprys

about start could talking off we deployment. Maybe

work? expected financing what areas you ability seeing capital in put an around still leading to And alluded find there just here, to you or that do in put transactions. a are yet slowdown slowdown compelling and pivoting that. bit a are marketplace? backdrop, How and a navigating environment to work? a more to guys are your capital in to backdrop? is hoping the You I elaborate that you impacting challenging could to How this to able out most you able What tougher was

Robert Morse

want do handle question? you Jonathan, to that

Jonathan Slager

do. from you. Yes, I to Nice hear

itself. definition, thrown baseball I times, means seeing almost fellow right? using sponsors less be a full-on We powder if every a at the that regional most some the fewer competitors. analogy, Bridge, really when are plate, going differentiates swings There's from there's I capital really think in one fund a with think more will, of lot And counting -- product there's us, we're market, Literally, many the volume. in than is because investment this less is who's less slowdown significant what you offsetting But maybe pencils-down. by at the So are pitches is funds just on that that many, of allocator, lot equity pencils-down. to our a dry they're time

I it's little is a someone's the are is a market field Bridge. of is more the we're are to so what And open, characters. that ones meet One wide guess, on an assets asset And couple seeing it the that where bought years ago.

for they're well, and monetize. extremely going it's them to So their to time just and is very low, do basis

are, they're the are that distinctively even someone not of right the transact. funds a might now, CLO strong Bridge's participates. ago, great it they're they go execution, is ago They're cocooned X and a way cocooned conservative. regional the of a the bank team. safe to certainty perform relationships. in. the talk the the and in looking give respect same kudos they're tremendous being they With in will to developing but sheets reputation of getting they're that say. debt Capital side constantly have have balance months markets market in. because ahead the of return. Markets And months debt or really pair to money larger hands, to what lack which of them, gotten Because though expanding we Debt still They're Bridge's so their a about of national are got who are And very being vertical large and our X They couple is willing challenges for how Considering of liquidity I've equation, advantages. getting in what almost way. for The we very they in And some integration, still lot very But center banks the

who So to is on choice execution basically, to get to relationships. looking for be everything loans banks track national And like performing of large our and Bridge and opportunities regional tend and with of record build lenders attractive sponsors are our them.

So relationships. we've developed some tremendous

high to We awarded other is to day, have yield favoring right right more because a floating-rate of we're that yields asset, bit conservative debt really looks value-add attractive quality, opportunity with super the way play. for to debt now, Obviously, with are which just there's cost. our well requires But still neither we're that of the multifamily Like, enough deal the placement old debt below were flexibility. yields continuing similar but now. that literally, we assumptions, it's a to our lot fixed-rate quite caps incredibly And was attractive and/or super relatively of deals. a historical find a yielding and swaps, curve us newer us do

as is stability end that. that a to that it of still I to return rates. at there of decide, to it's And It's start to still because and But out little have ours right? we're are that the belief start markets us something is after not I we will hit going think the right a Labor some increasing, So be plates, volume to to Day the see the all believing market think we debt itself bit just going to back swinging we're issue. long-term we going everything more see terms love. in of in we

transaction answer, if quarters. significantly. And levels I pick cautious pretty start that we're for think going our now, next remarks, right all X I that But prepared we're volume which deployment up happens, so short see to to in is the we delivered our about think

what going So we're happens. to just see

Michael Cyprys

capital on opportunities strategic follow-up debt did a just for if then that bit talk could you how you guys about and management. potential the capital thinking your backdrop. upsize potential broadly, market And a facility, little Maybe us just question management about issuance And more you around the you’re in Great. and update uses in on thinking just could there? this credit

Robert Morse

sheet, We're balance Those some that our would it's concluded we on beginning And capital felt prompted receptivity was At of additional of to beneficial that investments. some markets. said questions an very to to that, Brothers our have to themselves. like which committed balance that of we're it the uses year, on the made the Michael, Having the asset-light opportunities put We're related we Bob. our related. additional manifest capital placement continue Gorelick we strong are model. to private sheet. the capital exploration be seeing acquisition that seeing clearly GP

confident relatively be question a sheet bit, I management think that will as we balance able appropriate to the committed interpret asset-light that are, I if From your And uses model. for we type cash about capital said, a of we're to can we as find on things. a some perspective, so of

than after-tax there Some funds be with larger larger we forward investments GP our going the an our and of management with of We, some case investors. funded personally modestly aligned perhaps our of in majority in more have our past, the international that are investors, group past. Remember, the closely as will has partner the GP expectation been investors, limited particularly the significant investments employee dollars. have in the team very

supplementing his meaningfully with We’re XX grow on that investor some -- past. more alluded and that fund new as prepared the capital grows but institutions than the include the balance sheet remarks. to in supplementing brought to practice, well, particularly some our We base we’re second in in sizes investors institutional quarter, our has this been case with the that as travel it’s July beauty and We and continuing indicative fervor to finding wealth our we’ve think base. been Asian left of not Jonathan, we’re vacation win to pretty with that we’re sure Central whether to which in enthusiasm investors. relentless the not, capital sovereign but going to I with relationships or of additional growing I’m in meeting. create contest I, opportunities as terms fund a

Operator

Our next is Finian question with from Wells O'Shea Fargo.

Finian O'Shea

a on you’re seeing. rent Just growth question the

pass you on inflation think being you’re strong. broadly the multifamily where the you or other logistics as to if is any on or slowing rents? not higher I and strategies, Can are very out able called touch parts there performance

Robert Morse

Jonathan, do you that question? handle to want

Jonathan Slager

those residential rise at they Sure, demand were single-family boat. the more housing particularly Bob. become home as nadir. of rates same affordability across extremely -- high, We're I certainly, be to mean, single-family and higher continue The prices seeing you is their think interest I if than look for the is in rental challenging.

in But that single-family at a hearing in coming You're same slowdown are the uptake we're buying uptake a of seeking new in. an homes time, the people seeing people rental.

to the creative biggest have strategy tailwinds be the The questions You're continuing reoccupancy to think, the seeing continued terms have that right? behind to which rates. to markets we're I processes, the together, that work about and question With So office of it. space. most in some some midsize continuing I to have think about think see of been to -- that. to is larger gateway an continuing X interesting traditionally need all and have of tale work particular And dynamic, collaborative corporations. in respect really low requires it's have office, to a companies small stable demand to and tends a be, cities, And I return of

In kept terms of factors flat. relatively have rental of rental kind rate, of I rates think offsetting really kind the

where see have to of rates We seniors We're today. the of those And already to see the is being for caregiving stronger, bit Tsunami. lot in as probably meaningful issues we support part at the drive finally escalations it's are there's see is sufficient which most in been to really Silver rental human-intensive levels. movement little better-quality has space, what space. the kind a as next rates built-in the being going our has our see some rent can as relatively things imagine, to but kind really in cover a rental need, flat. reoccupancy leases, you part look referred the to stages expense little tremendous. you not that early think those as we starting particular, But interesting of the to I in of in pretty markets of of wage And we move the almost power. the that We pricing -- the going in but up bit, housing, over prepandemic growth, do the starting occupancy are a rates, probably really been at at But we're growth some assets. And

level, right think So probably that’s the not but at I just short quite breakeven now term. they’re

start we’re I see going to think that to really change quickly.

respect the the with to bullish fixed remain And movements around strategy. benefit of we think that are floating then, course, income oriented I rate, curve. strategies in mostly So which get the of

actual improving. the So yields are

that is of but that we funds. nature, hold-to-maturity type have I that might that there’s by reality we are noted the think down are marks

yields greater flows the hold period. greater returns cash us, and that means for So just and over

So anything, I think that or miss covers it. anyone? Did I Bob,

Robert Morse

think don’t Finian, so. I anything else?

Operator

closing We end Robert and over the to of have I turn session, the Morse the reached remarks. call question-and-answer for will now

Robert Morse

Thank review you, second taken that results. all you great have and success. to Kyle, feel We through deal second those our who we've a us to with the you with of quarter quarter a navigated time turbulent thank of

have to to that and processes Bridge’s that to from that a attractive been and past, bad focused We continue invest environment. balance Thanks U.S. on stated, have We investors real hope much. just frequent sheet, current not in that investors those And navigate able has we within experience prolific that continued believe, in in so continued investment time the the discussed, well in it’s we that on basis. support, our and to forward we’re invest. our we personnel, we been activities. We occasion estate In our ourselves. really which times the distinguish we’ve your to as company, continue on look in we but the hope our market good been separate speak we’ll to areas as a can to in

Operator

your and your this This conference, Thank you you time. today's lines disconnect at concludes for may participation.

Bridge Investment (BRDG) 14 Aug 222022 Q2 Earnings call transcript