EX-99.2 3 ex992-q22023supplemental.htm EX-99.2 Document

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Cautionary Statement Regarding Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, and may cause the Company’s actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, our ability to grow our business by raising capital for our funds and the companies that we manage; our position as an investor and investment manager of digital infrastructure and our ability to manage any related conflicts of interest; adverse changes in general economic and political conditions, including those resulting from supply chain difficulties, inflation, interest rate increases, a potential economic slowdown or a recession; our exposure to business risks in Europe, Asia and other foreign markets; our ability to obtain and maintain financing arrangements, including securitizations, on favorable or comparable terms or at all; the ability of our managed companies to attract and retain key customers and to provide reliable services without disruption; the reliance of our managed companies on third-party suppliers for power, network connectivity and certain other services; our ability to increase assets under management ("AUM") and expand our existing and new investment strategies; our ability to integrate and maintain consistent standards and controls, including our ability to manage our acquisitions in the digital infrastructure and investment management industries effectively; our business and investment strategy, including the ability of the businesses in which we have significant investments to execute their business strategies; performance of our investments relative to our expectations and the impact on our actual return on invested equity, as well as the cash provided by these investments and available for distribution; our ability to deploy capital into new investments consistent with our investment management strategies; the availability of, and competition for, attractive investment opportunities and the earnings profile of such new investments; our ability to achieve any of the anticipated benefits of certain joint ventures, including any ability for such ventures to create and/or distribute new investment products; our expected hold period for our assets and the impact of any changes in our expectations on the carrying value of such assets; the general volatility of the securities markets in which we participate; the market value of our assets; interest rate mismatches between our assets and any borrowings used to fund such assets; effects of hedging instruments on our assets; the impact of economic conditions on third parties on which we rely; the impact of any security incident or deficiency affecting our systems or network or the system and network of any of our managed companies or service providers; any litigation and contractual claims against us and our affiliates, including potential settlement and litigation of such claims; our levels of leverage; the impact of legislative, regulatory and competitive changes, including those related to privacy and data protection; the impact of our transition from a real estate investment trust ("REIT") to a taxable C corporation for tax purposes, and the related liability for corporate and other taxes; whether we will be able to utilize existing tax attributes to offset taxable income to the extent contemplated; our ability to maintain our exemption from registration as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”); changes in our board of directors or management team, and availability of qualified personnel; our ability to make or maintain distributions to our stockholders; and our understanding of and ability to successfully navigate the competitive landscape in which we and our managed companies operate and other risks and uncertainties, including those detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 under the heading “Risk Factors,” as such factors may be updated from time to time in the Company’s subsequent periodic filings with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Additional information about these and other factors can be found in the Company’s reports filed from time to time with the SEC.

The Company cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this presentation. The Company is under no duty to update any of these forward-looking statements after the date of this presentation, nor to conform prior statements to actual results or revised expectations, and the Company does not intend to do so.

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company. This information is not intended to be indicative of future results. Actual performance of the Company may vary materially.
The appendices herein contain important information that is material to an understanding of this presentation and you should read this presentation only with and in context of the appendices.
DigitalBridge | Supplemental Financial Report

Important Note Regarding Non-GAAP Financial Measures
This financial supplemental package includes certain non-GAAP financial measures and operating metrics that are not defined by generally accepted accounting principles, or GAAP.
Following our decision not to maintain qualification as a REIT for 2022, we no longer present Funds From Operations and Adjusted Funds From Operations, supplemental non-GAAP measures commonly used by equity REITs. Resulting from the significant growth in our digital investment management business, effective the second quarter of 2022, we report Distributable Earnings (“DE”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and, specific to our IM segment, Fee Related Earnings (“FRE”) as non-GAAP financial measures attributable to the DBRG OP, which more closely align the key performance metrics of our core business to the alternative investment management industry.
We use these non-GAAP financial measures in evaluating the Company’s business performance and in making operating decisions. As we evaluate profitability based upon continuing operations, these non-GAAP measures exclude results from discontinued operations. These non-GAAP financial measures should not be considered alternatives to GAAP net income or loss as indicators of operating performance, or to cash flows from operating activities as measures of liquidity, nor as indicators of the availability of funds for our cash needs, including funds available to make distributions. Our calculation of these non-GAAP measures may differ from methodologies utilized by other companies for similarly titled performance measures and, as a result, may not be directly comparable to those calculated by other companies in similar lines of business.
In evaluating the information presented throughout this supplemental financial report, refer to the appendices to this presentation for definitions and reconciliations of non-GAAP financial measures to GAAP measures. For purposes of comparability, historical information in this presentation may reflect certain adjustments to information reported in prior periods.

Distributable Earnings: DE is an after-tax measure that differs from GAAP net income or loss from continuing operations as a result of the following adjustments, including adjustment for our share of similar items recognized by our equity method investments, where applicable: transaction-related costs; restructuring charges (primarily severance and retention costs); realized and unrealized gains or losses, except realized gains or losses related to digital assets, including fund investments, in Corporate and Other; depreciation, amortization and impairment charges; interest expense on finance leases; debt prepayment penalties and amortization of deferred financing costs, debt premiums and discounts; our share of unrealized carried interest allocation, net of associated compensation expense; equity-based compensation costs; effect of straight-line lease income and expense; impairment of equity investments directly attributable to decrease in value of depreciable real estate held by the investee; non-revenue enhancing capital expenditures necessary to maintain operating real estate; and income tax effect on certain of the foregoing adjustments. Income taxes included in DE reflect the benefit of deductions arising from certain expenses that are excluded from the calculation of DE, such as equity-based compensation, as these deductions do decrease actual income tax paid or payable by the Company in any one period There are no differences in the Company’s measurement of DE and AFFO. Therefore, previously reported AFFO is the equivalent to DE and prior period information has not been recast. DE is presented on a reportable segment basis and for the Company in total.

We believe that DE is a meaningful supplemental measure as it reflects the ongoing operating performance of our core business by generally excluding items that are non-core in nature and allows for our operating results to be more comparable period-over-period and relative to other companies in similar lines of business.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA): Adjusted EBITDA represents DE adjusted to exclude the following items attributable to the Operating Company: interest expense as included in DE, income tax benefit or expense as included in DE, preferred stock dividends, principal investment income or loss as included in DE, placement fee expense, our share of incentive fees and realized carried interest allocation or reversal net of associated compensation expense or reversal, certain investment costs for capital raising that are not reimbursable by our sponsored funds, and capital expenditures as deducted in DE. Adjusted EBITDA is presented on a reportable segment basis and for the Company in total.

We believe that Adjusted EBITDA is a meaningful supplemental measure of performance because it presents the Company’s operating performance independent of its capital structure, leverage and non-cash items, which allows for better comparability against entities with different capital structures and income tax rates. However, because Adjusted EBITDA is calculated
without the effects of certain recurring cash charges, including interest expense, taxes and capital expenditures or other recurring cash requirements, its usefulness as a performance measure may be limited.

Investment Management Fee Related Earnings (IM FRE): IM FRE is calculated as recurring fee income and other income inclusive of cost reimbursements associated with administrative expenses, and net of compensation expense (excluding equity-based compensation, and incentive and carried interest compensation expense or reversal) and administrative expense (excluding placement fees and straight-line rent expense). IM FRE is used to assess the extent to which direct base compensation and operating expenses are covered by recurring fee revenues in the investment management business. We believe that IM FRE is a useful supplemental performance measure because it may provide additional insight into the profitability of the overall investment management business.

IM FRE is measured as Adjusted EBITDA for the IM segment, adjusted to reflect the Company’s IM segment as a stabilized business by excluding FRE associated with new investment strategies that have 1) not yet held a first close raising FEEUM; or 2) not yet achieved break-even Adjusted EBITDA only for investment products that may be terminated solely at the Company’s discretion, collectively referred to as “Start-up FRE.” The Company evaluates new investment strategies on a regular basis and excludes Start-Up FRE from IM FRE until such time a new strategy is determined to form part of the Company’s core investment management business.
DigitalBridge | Supplemental Financial Report

Note Regarding DBRG Reportable Segments / Consolidated and OP Share of Consolidated Amounts

This presentation includes supplemental financial information for the following segments:

Investment Management (IM)
This business represents a leading global digital infrastructure investment platform, managing capital on behalf of a diverse base of global investors. The Company's flagship opportunistic strategy is conducted through its DigitalBridge Partners platform ("DBP"), separately capitalized vehicles and InfraBridge Global Infrastructure Funds (GIF), while other strategies, including digital core, credit, ventures and public equities, are conducted through other investment vehicles. The Company earns management fees, generally based on the amount of assets or capital managed in investment vehicles, and has the potential to earn incentive fees and carried interest based upon the performance of such investment vehicles, subject to achievement of minimum return hurdles. Earnings from our IM segment were attributed 31.5% to Wafra through the end of May 2022 when Wafra's investment in the IM business was redeemed by the Company.

Operating
This business is composed of balance sheet equity interests in digital infrastructure and real estate operating companies, which generally earn rental income from providing use of digital asset space and/or capacity through leases, services and other agreements. The Company currently owns interests in two companies: DataBank, including zColo, an edge colocation data center business; and Vantage SDC, a stabilized hyperscale data center business. Both DataBank and Vantage are also portfolio companies managed under IM for the equity interests owned by third party capital.

Corporate and Other
This segment is composed of the Company's other investment activities and corporate activities.
Other investment activities are composed of the Company's equity interests in: (i) digital investment vehicles, including the DBP flagship funds and InfraBridge GIF funds, and seed investments in various strategies such as digital core, liquid and credit; and (ii) remaining non-digital investments. Outside of its general partner interests, the Company's other equity interests in its sponsored and/or managed digital investment vehicles are considered to be incidental to its digital investment management business. The primary economics to the Company are represented by fee income and carried interest as general partner and/or manager, rather than economics from its equity interest in the investment vehicles as a limited partner or equivalent. With respect to seed investments, these are not intended to be a long-term deployment of capital by the Company and are expected to be warehoused temporarily on the Company's balance sheet until sufficient third party capital has been raised. These other investment activities generate largely principal investment earnings or losses and to a lesser extent, revenues in the form of interest income or dividend income from warehoused investments and consolidated investment vehicles. Effective the third quarter of 2021, these activities are no longer presented separately as the Digital Other and Other segments, which is consistent with and reflects management's focus on its core digital operations and overall simplification of the Company's business. This change in segment presentation is reflected retrospectively. During the first quarter of 2023, the Company sold all of its equity investment in BrightSpire Capital, Inc. (NYSE: BRSP). The Company's investment in BRSP qualified as held for sale and discontinued operations in March 2023. Accordingly, for all prior periods presented, the equity method investment in BRSP is presented as assets held for disposition on the consolidated balance sheets and equity method earnings (loss) from BRSP is presented as loss from discontinued operations on the consolidated statements of operations. This change is reflected retrospectively.
Corporate activities include corporate level cash and corresponding interest income, corporate level financing and related interest expense, corporate level transaction costs, costs in connection with unconsummated investments, income and expense related to cost reimbursement arrangements with affiliates, fixed assets for administrative use, compensation expense not directly attributable to reportable segments, corporate level administrative and overhead costs, and adjustments to eliminate intercompany fees. Costs which are directly attributable, or otherwise can be subjected to a reasonable and systematic allocation, have been allocated to each of the reportable segments. As segment results are presented before elimination of intercompany fees, elimination adjustment pertains to fee income earned by the IM segment from third party capital in investment vehicles managed by the Company and consolidated within the Operating segment and in Corporate and Other.


Throughout this presentation, consolidated figures represent the interest of both the Company (and its subsidiary DigitalBridge Operating Company, LLC or the “DBRG OP”) and noncontrolling interests. Figures labeled as DBRG OP share represent the Company’s pro-rata share.
DigitalBridge | Supplemental Financial Report

Table of Contents
Page
I.
Financial Overview
a.
6
b.
7
II.
Financial Results
a.
Balance Sheet Consolidated & Noncontrolling Interests’ Share
8-9
b.
10
c.
11
d.
12-13
III.
Capitalization
a.
Debt Summary
14
b.
Secured Fund Fee Revenue Notes and Variable Funding Notes
15
c.
Convertible/Exchangeable Notes & Perpetual Preferred Stock
16
IV.
Operating
17-18
V.
Other
19
VI.
Cash G&A Expense
20
Appendices
Reconciliations of IM FRE and Operating Adjusted EBITDA to Net Income (Loss)22
Reconciliations of DE and Adjusted EBITDA and to Net Income (Loss)23-24
Definitions25
 DigitalBridge | Supplemental Financial Report
5
Ia. Summary Financial Metrics
($ and shares in thousands, except per share data and as noted) (Unaudited)6/30/2023 - 2Q233/31/2023 - 1Q2312/31/2022 - 4Q229/30/2022 - 3Q226/30/2022 - 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q21
Financial Data
Total Company
Net income (loss) attributable to common stockholders$(22,411)$(212,473)$(19,356)$(63,273)$(37,321)$(262,316)$(20,686)$41,036
Net income (loss) attributable to common stockholders per basic share(1)
(0.14)(1.34)(0.12)(0.39)(0.24)(1.84)(0.16)0.33
Distributable Earnings ("DE")10,012(3,365)(18,393)32,335603(5,064)(11,636)(4,886)
DE per basic share(1)
0.06(0.02)(0.11)0.18—(0.03)(0.08)(0.04)
Adjusted EBITDA42,88425,62627,75929,09730,92820,49420,95717,622
Investment Management
Total Assets Under Management ("AUM") (in billions)$72.2$69.3$52.8$50.3$47.9$46.6$45.3$37.8
Fee Earning Equity Under Management ("FEEUM") (in billions)$29.1$27.7$22.2$20.5$19.0$18.8$18.3$16.5
IM management fee income - DBRG OP share66,46059,22945,27242,03936,94829,92138,39635,724
IM FRE - DBRG OP share34,39834,51224,22821,49820,75916,98923,75722,922
IM FRE margin %51.8%58.3%53.5%51.1%56.2%56.8%61.9%64.2%
Net realized carried interest and incentive fees(883)24312,37720,258—(1,172)1,0927
Balance Sheet and Capitalization
Consolidated assets$10,757,065$10,743,429$11,028,503$11,740,829$11,877,288$11,232,157$14,197,816$15,442,981
Consolidated debt(2)
5,527,4225,449,9505,212,6575,394,1345,612,2745,187,5974,922,7224,621,240
DBRG OP Share:
Total Assets3,033,3843,001,6443,334,2883,755,2314,177,8063,561,5016,233,1586,086,259
   Corporate debt378,422578,422578,422578,422648,422578,422638,739800,000
   Investment-level debt630,488596,085568,230775,3581,097,943880,464727,789591,943
Total Debt(2)
1,008,9101,174,5071,146,6521,353,7801,746,3651,458,8861,366,5281,391,943
Corporate cash204,508449,368733,382423,44155,628813,237986,197606,447
Corporate cash & VFN / Revolver borrowing availability504,508749,3681,033,382723,441285,6281,013,2371,186,197806,447
Perpetual Preferred Equity, $25 per share liquidation preference821,899827,711827,779827,779883,500883,500883,500947,500
Basic shares and OP units outstanding(1)
175,017174,235172,712175,918176,930162,461155,138136,791
Diluted shares and OP units outstanding(1)
184,485183,154181,692186,911189,572176,087184,359174,598
Common dividend per share$0.01$0.01$0.01$0.01$—$—$—$—


Notes:
(1)    In August 2022, the Company effectuated a 1-for-4 reverse stock split of its shares of class A and B common stock. All prior period common share and per share information is presented after giving effect to the reverse stock split.
(2)    Represents principal balance and excludes debt issuance costs, discounts and premiums.
 DigitalBridge | Supplemental Financial Report
6
Ib. Investment Management

($ in millions)
Investment Management FEEUM6/30/23 Annual IM Fee Rate6/30/233/31/2312/31/229/30/226/30/223/31/2212/31/219/30/21
DigitalBridge Partners I (DBP I)1.10%$3,311 $3,180 $3,165 $2,802 $3,048 $3,034 $3,215 $3,040 
DigitalBridge Partners II (DBP II)1.18%7,996 7,996 7,996 7,996 7,996 7,996 8,001 7,146 
Separately Capitalized Portfolio Companies0.76%2,267 2,187 2,512 2,370 2,401 2,372 2,148 2,576 
InfraBridge Global Infrastructure Funds (GIF) & Other1.17%5,112 5,083 — — — — — — 
Co-Investment (Sidecar) Capital0.46%7,990 7,000 6,525 6,310 4,651 4,370 4,105 3,184 
Digital Core, Liquid and Credit Strategies0.60%2,383 2,248 2,036 1,021 933 1,013 786 510 
IM FEEUM0.89%$29,059 $27,694 $22,234 $20,499 $19,029 $18,785 $18,255 $16,456 
($ in thousands)
IM FRE2Q231Q234Q223Q222Q221Q224Q213Q21
Fee income$65,812 $58,600 $44,371 $41,353 $44,758 $43,155 $43,145 $37,751 
Fee income, other (1)
648 629 901 686 355 523 8,787 12,809 
Other income1,051 492 535 386 530 251 273 483 
Compensation expense—cash(26,286)(19,795)(17,805)(18,876)(17,725)(17,675)(16,275)(16,933)
Administrative expenses(7,992)(6,329)(6,417)(4,450)(4,794)(4,012)(3,446)(2,675)
Exclude: Start-up FRE of certain new strategies1,165 915 2,643 2,399 2,335 2,362 2,306 2,224 
IM FRE (2)
$34,398 $34,512 $24,228 $21,498 $25,459 $24,604 $34,790 $33,659 
DBRG OP share of IM FRE(3)
$34,398 $34,512 $24,228 $21,498 $20,759 $16,989 $23,757 $22,922 











Notes:
(1)    Includes service fee income and one time catch-up fees earned, which are customary fees paid on newly raised 3rd party capital as if it were raised on the first closing date.
(2)    For a reconciliation of net income / (loss) to IM FRE, please refer to the Appendices section of this presentation.
(3)    In May 2022, DigitalBridge acquired Wafra’s 31.5% ownership in the Company's investment management business that Wafra initially acquired in July 2020, which resulted in 100% of the Company's IM FRE becoming entitled to DigitalBridge.
 DigitalBridge | Supplemental Financial Report
7
IIa. Financial Results - Balance Sheet

($ in thousands, except per share data) (unaudited)As of June 30, 2023
ConsolidatedNoncontrolling Interests' Share
Assets
Cash and cash equivalents$426,883 $94,444 
Restricted cash154,687 131,713 
Investments1,288,877 493,971 
Real estate6,178,467 5,460,464 
Goodwill923,112 412,131 
Deferred leasing costs and intangible assets1,052,822 819,161 
Other assets607,554 311,797 
Due from affiliates71,149 — 
Assets held for disposition53,514 — 
Total assets$10,757,065 $7,723,681 
Liabilities
Corporate debt$370,461 $— 
Non-recourse investment-level debt5,025,845 4,244,106 
Intangible liabilities28,447 24,866 
Other liabilities1,158,427 783,183 
Liabilities related to assets held for disposition12,954 — 
Total liabilities6,596,134 5,052,155 
Commitments and contingencies
Redeemable noncontrolling interests31,920 31,920 
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value per share; $821,899 liquidation preference; 250,000 shares authorized; 32,876 shares issued and outstanding794,670 — 
Common stock, $0.01 par value per share
Class A, 237,250 shares authorized; 162,475 shares issued and outstanding1,624 — 
Class B, 250 shares authorized; 166 shares issued and outstanding2 — 
Additional paid-in capital7,846,440 — 
Accumulated deficit(7,201,651)— 
Accumulated other comprehensive income (loss)1,122 — 
Total stockholders’ equity1,442,207 — 
Noncontrolling interests in investment entities2,639,606 2,639,606 
Noncontrolling interests in Operating Company47,198 — 
Total equity4,129,011 2,639,606 
Total liabilities, redeemable noncontrolling interests and equity$10,757,065 $7,723,681 


 DigitalBridge | Supplemental Financial Report
8
IIa. Financial Results - Balance Sheet


Supplemental Schedule to Consolidated Balance Sheets

($ in thousands) (unaudited)As of June 30, 2023
Investment ManagementOperatingCorporate and Other
Assets
Cash and cash equivalents$68,548 $72,087 $286,248 
Restricted cash2,349 151,248 1,090 
Investments426,578 — 862,299 
Real estate— 6,178,467 — 
Goodwill459,992 463,120 — 
Deferred leasing costs and intangible assets120,582 931,745 495 
Other assets31,194 527,469 48,891 
Due from affiliates68,283 — 2,866 
Assets held for disposition— 48,406 — 
Total assets$1,177,526 $8,372,542 $1,201,889 
Liabilities
Corporate debt$199,389 $70,372 $100,700 
Non-recourse investment-level debt— 5,000,290 25,555 
Intangible liabilities— 28,447 — 
Other liabilities289,566 692,901 175,960 
Liabilities related to assets held for disposition— 12,788 — 
Total liabilities488,955 5,804,798 302,215 
Redeemable noncontrolling interests909 — 31,011 
Noncontrolling interests in investment entities187,018 2,310,897 140,413 


 DigitalBridge | Supplemental Financial Report
9
IIb. Financial Results - Consolidated Segment Operating Results
Three Months Ended June 30, 2023
($ in thousands) (unaudited)Investment ManagementOperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Fee income$66,631 $— $(889)$— $65,742 
Carried interest allocation79,254 — — — 79,254 
Principal investment income (loss)1,604 — 28,805 — 30,409 
Property operating income— 234,753 — — 234,753 
Other income1,604 306 12,865 — 14,775 
 Total revenues149,093 235,059 40,781 — 424,933 
Expenses
Property operating expense— 98,231 — — 98,231 
Interest expense2,629 51,285 2,108 — 56,022 
Investment expense191 4,958 104 — 5,253 
Transaction-related costs613 — 500 — 1,113 
Placement fees3,653 — — — 3,653 
Depreciation and amortization11,039 138,209 314 — 149,562 
Compensation expense
Compensation expense - cash and equity-based45,798 26,435 10,759 — 82,992 
Compensation expense - incentive fee and carried interest allocation36,076 — — — 36,076 
Administrative expenses7,953 8,841 8,969 — 25,763 
 Total expenses107,952 327,959 22,754 — 458,665 
Other income (loss)
Other gain (loss), net(3,608)344 (8,273)— (11,537)
Income (loss) from continuing operations before income taxes37,533 (92,556)9,754 — (45,269)
Income tax benefit (expense)(2,356)(499)(414)— (3,269)
Income (loss) from continuing operations35,177 (93,055)9,340 — (48,538)
Income (loss) from discontinued operations— — — (3,978)(3,978)
Net income (loss)35,177 (93,055)9,340 (3,978)(52,516)
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests(189)— (2,252)— (2,441)
Investment entities35,033 (81,727)7,052 (25)(39,667)
Operating Company24 (819)(664)(286)(1,745)
Net income (loss) attributable to DigitalBridge Group, Inc.309 (10,509)5,204 (3,667)(8,663)
Preferred stock repurchase— — (927)— (927)
Preferred stock dividends— — 14,675 — 14,675 
Net income (loss) attributable to common stockholders$309 $(10,509)$(8,544)$(3,667)$(22,411)


 DigitalBridge | Supplemental Financial Report
10
IIc. Financial Results - Noncontrolling Interests’ Share Segment Operating Results
Three Months Ended June 30, 2023
($ in thousands) (unaudited)Investment ManagementOperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Fee income$33 $— $— $— $33 
Carried interest allocation35,944 — — — 35,944 
Principal investment income (loss)422 — 3,377 — 3,799 
Property operating income$— $207,028 $— $— 207,028 
Other income7 190 1,837 — 2,034 
Total revenues36,406 207,218 5,214 — 248,838 
Expenses
Property operating expense— 86,634 — — 86,634 
Interest expense— 45,189 58 — 45,247 
Investment expense— 4,311 5 — 4,316 
Transaction-related costs— — — — — 
Depreciation and amortization— 121,259 — — 121,259 
Impairment loss— — — — 
Compensation expense
Compensation expense - cash and equity-based— 23,525 — — 23,525 
Compensation expense - incentive fee and carried interest allocation620 — — — 620 
Administrative expenses11 7,880 170 — 8,061 
 Total expenses631 288,798 233 — 289,662 
Other income (loss)
Gain on sale of real estate assets— — — — — 
Other gain (loss), net(931)297 (181)— (815)
Income (loss) from continuing operations before income taxes34,844 (81,283)4,800 — (41,639)
Income tax benefit (expense)— (444)— — (444)
Income (loss) from continuing operations34,844 (81,727)4,800 — (42,083)
Income (loss) from discontinued operations— — — (25)(25)
Net income (loss)34,844 (81,727)4,800 (25)(42,108)
Non-pro rata allocation of income (loss) to noncontrolling interests— — — — — 
Net income (loss) attributable to noncontrolling interests$34,844 $(81,727)$4,800 $(25)$(42,108)

 DigitalBridge | Supplemental Financial Report
11
IId. Financial Results - Segment Reconciliation of Net Income to DE and Adjusted EBITDA

OP pro rata share by segmentAmounts
attributable to
noncontrolling interests		DBRG consolidated as reported
($ in thousands; for the three months ended June 30, 2023; and unaudited)IMOperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Net income (loss) attributable to common stockholders$309 $(10,509)$(8,233)$(3,978)$(22,411)$— $(22,411)
Net income (loss) attributable to noncontrolling common interests in Operating Company24 (819)(837)(113)(1,745)— (1,745)
Net income (loss) attributable to common interests in Operating Company and common stockholders333 (11,328)(9,070)(4,091)(24,156)— (24,156)
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges(1)
3,025 84 4,017 28 7,154 669 7,823 
Other (gain) loss, net (excluding realized gain or loss related to digital assets and fund investments in Corporate and Other)2,732 (47)(17,180)1,240 (13,255)(2,735)(15,990)
Unrealized carried interest allocation, net of associated compensation expense allocation(10,116)— — — (10,116)(33,675)(43,791)
Compensation expense - equity-based17,099 542 3,593 18 21,252 4,685 25,937 
Depreciation and amortization11,039 16,086 314 178 27,617 121,646 149,263 
Straight-line rent revenue and expense(39)(176)(532)(37)(784)(1,076)(1,860)
Amortization of acquired above- and below-market lease values, net— 47 — — 47 323 370 
Non-revenue enhancing capital expenditures— (946)— — (946)(7,338)(8,284)
Finance lease interest expense, debt prepayment penalties and amortization of deferred financing costs, debt premiums and discounts356 898 208 11 1,473 6,105 7,578 
Preferred share redemption (gain) loss— — (927)— (927)— (927)
Adjustments attributable to noncontrolling interests in investment entities— — — — — (88,604)(88,604)
DE from discontinued operations— — — 2,653 2,653 — 2,653 
After-tax DE$24,429 $5,160 $(19,577)$— $10,012 $— $10,012 














Notes:
(1)    Restructuring charges primarily represent costs and charges incurred as a result of corporate restructuring and reorganization to implement the digital evolution. These costs and charges include severance, retention, relocation, transition, shareholder settlement and other related restructuring costs, which are not reflective of the Company’s core operating performance.
 DigitalBridge | Supplemental Financial Report
12
IId. Financial Results - Segment Reconciliation of Net Income to DE and Adjusted EBITDA

OP pro rata share by segment
($ in thousands; for the three months ended June 30, 2023; and unaudited)IMOperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
After-tax DE$24,429 $5,160 $(19,577)$— $10,012 
Interest expense included in DE2,272 6,016 1,842 — 10,130 
Income tax expense (benefit) included in DE2,356 55 414 — 2,825 
Preferred dividends— — 14,675 — 14,675 
Placement fee expense3,653 — — — 3,653 
Realized carried interest allocation, net of associated compensation expense allocation883 — — — 883 
Investment costs and non-revenue enhancing capital expenditures in DE(360)1,066 — — 706 
Adjusted EBITDA$33,233 $12,297 $(2,646)$— $42,884 


























 DigitalBridge | Supplemental Financial Report
13
IIIa. Capitalization - Debt Summary
($ in thousands; as of June 30, 2023)
Consolidated debt
Payments due by period(1)
20232024202520262027 and afterTotal
Investment-level debt:
Operating - Fixed$1,990 $600,753 $700,000 $1,519,690 $1,806,000 $4,628,433 
Operating - Variable— 262,500 8,476 11,300 212,491 494,767 
Other - Variable— 25,800 — — — 25,800 
Total Investment-level debt1,990 889,053 708,476 1,530,990 2,018,491 5,149,000 
Corporate debt:
2021-1, A-1 Variable Funding Notes— — — — — — 
2021-1, Class A-2 Term Notes— — — 300,000 — 300,000 
Convertible/exchangeable senior notes— — 78,422 — — 78,422 
Total debt - consolidated$1,990 $889,053 $786,898 $1,830,990 $2,018,491 $5,527,422 
Fixed/VariableWA Interest RateWA Remaining Term
DBRG OP share of debt
Payments due by period(1)
20232024202520262027 and afterTotal
Investment-level debt:
Operating - Fixed$261 $78,879 $91,910 $178,554 $219,405 $569,009 Fixed3.2%3.2
Operating - Variable— 28,901 933 1,244 23,395 54,473 Variable8.7%2.6
Other - Variable— 7,006 — — — 7,006 Variable6.2%1.1
Total Investment-level debt261 114,786 92,843 179,798 242,800 630,488 
Corporate debt:
2021-1, A-1 Variable Funding Notes— — — — — — Variablen/a3.2
2021-1, Class A-2 Term Notes— — — 300,000 — 300,000 Fixed3.9%3.2
Convertible/exchangeable senior notes— — 78,422 — — 78,422 Fixed5.8%2.0
Total debt - DBRG OP share$261 $114,786 $171,265 $479,798 $242,800 $1,008,910 
Net corporate debt
Cash and cash equivalents - consolidated$426,883 
less: Noncontrolling interests(94,444)
less: Investment level cash - DBRG OP share(127,931)
Corporate cash - DBRG OP share204,508 
Corporate debt - DBRG OP share(378,422)
Corporate Cash (Debt) Position - DBRG OP share$(173,914)






Notes:
(1)    Maturity dates are based on initial maturity dates or extended maturity dates, where applicable, the extension option is at the Company’s discretion and if the criteria to extend have been met as of the reporting date.
 DigitalBridge | Supplemental Financial Report
14
IIIb. Capitalization - DBRG Series 2021-1
($ in thousands, as of June 30, 2023)
Class A-2 Term Notes
Amount outstanding$300,000 
Interest rate3.933 %
Anticipated Repayment Date (ARD)September 25, 2026
Kroll RatingBBB
Class A-1 Variable Funding Notes
Maximum Available$300,000 
(1)
Amount outstanding$— 
Interest Rate 1M Term SOFR + 3.00%
(1)
Fully extended Anticipated Repayment Date (ARD)(2)
September 25, 2026
Financial covenants:Covenant level
Debt Service Coverage Ratio(3)
Minimum 1.75x
Loan to Value Ratio(4)
Less than 35.0%
Investment Management Expense Ratio(5)
Less than 60.0%
Company status: As of August 3, 2023, DBRG is meeting all required covenant threshold levels.









Notes:
(1)    Effective April 1, 2022, the maximum principal amount of the Series 2021-1 Class A-1 Variable Funding Notes increased to $300 million and Term SOFR replaced LIBOR as the benchmark for accruing interest on the Series 2021-1 Class A-1 Variable Funding Notes. 1 month term SOFR is adjusted to include 0.11448% as defined in the Amendment No.1 to Class A-1 Note Purchase Agreement.
(2)    Anticipated Repayment Date is September 25, 2026 including two 1-year extension options subject to 1) either rating agency confirmation and consent of VFN noteholders are obtained or DSCR exceeding 1.75x, 2) term notes rating not less than BBB- 3) the payment of a 0.05% extension fee and 4) other customary conditions.
(3)    Debt service coverage ratio covenant thresholds: minimum of 1.75x for ability to borrow from the VFN; below 1.75x to 1.50x = 50% cash trap; below 1.50x to 1.20x = 100% cash trap; and below 1.20x = cash sweep.
(4)    100% cash sweep until LTV is less than 35%.
(5)    50% cash sweep until ratio is less than 60%.
 DigitalBridge | Supplemental Financial Report
15
IIIc. Capitalization - Convertible/Exchangeable Notes & Perpetual Preferred Stock
($ in thousands; except per share data; as of June 30, 2023)
Convertible/exchangeable debt
DescriptionOutstanding principal
Final due date(1)
Interest rateConversion price (per share of common stock)Conversion ratioConversion shares
5.75% Exchangeable senior notes$78,422 July 15, 20255.75% fixed$9.20 108.6956 8,524 
Total convertible debt$78,422 


Perpetual preferred stock
DescriptionLiquidation
preference		Shares outstanding (In thousands)Callable period
Series H 7.125% cumulative redeemable perpetual preferred stock209,870 8,395 Callable
Series I 7.15% cumulative redeemable perpetual preferred stock321,668 12,867 Callable
Series J 7.125% cumulative redeemable perpetual preferred stock290,361 11,614 Callable
Total preferred stock$821,899 32,876 





















Notes:
(1)    Callable at principal amount only if DBRG common stock has traded at least 130% of the conversion price for 20 of 30 consecutive trading days on or after July 21, 2023.
 DigitalBridge | Supplemental Financial Report
16
IV. Operating

($ in millions)
Portfolio Net Carrying Value6/30/233/31/2312/31/229/30/226/30/223/31/2212/31/219/30/21
Consolidated amount
Asset(1)
$9,246 $8,920 $8,704 $8,515 $8,429 $8,397 $7,624 $7,211 
Debt(2)
(5,123)(4,870)(4,634)(4,506)(4,477)(4,479)(4,217)(3,817)
Net Carrying Value - Consolidated$4,123 $4,050 $4,070 $4,009 $3,952 $3,918 $3,407 $3,394 
DBRG OP share of consolidated amount
Asset(1)
$1,113 $1,077 $1,052 $1,133 $1,466 $1,460 $1,233 $1,157 
Debt(2)
(623)(596)(568)(598)(746)(746)(661)(588)
Net Carrying Value - DBRG OP share$490 $481 $484 $535 $720 $714 $572 $569 
DBRG net carrying value % interest12 %12 %12 %13 %18 %18 %17 %17 %

($ in thousands)
Operating Adjusted EBITDA2Q231Q234Q223Q222Q221Q224Q213Q21
Consolidated amount
Total revenues$235,059 $231,664 $229,278 $225,387 $227,687 $202,522 $189,938 $194,966 
Property operating expenses(98,231)(97,126)(97,457)(100,051)(94,744)(84,003)(78,950)(80,226)
Compensation and administrative expenses(35,276)(34,419)(27,452)(37,974)(29,139)(26,855)(28,879)(29,766)
Investment expenses(4,958)(5,203)(5,547)(5,288)(5,487)(8,016)(5,153)(4,862)
Straight-line rent expenses and amortization of above- and below-market lease intangibles(678)(1,221)(1,749)(2,827)(236)(377)370 482 
Compensation expense—equity-based4,926 5,275 (95)10,852 752 752 1,918 308 
Installation services— — — — — — 2,097 (4,058)
Transaction-related and restructuring charges1,328 184 1,574 1,105 2,400 4,636 3,188 4,042 
Operating Adjusted EBITDA - Consolidated (3)
$102,170 $99,154 $98,552 $91,204 $101,233 $88,659 $84,529 $80,886 
DBRG OP share of consolidated amount
Total revenues$27,841 $27,481 $27,927 $38,305 $41,448 $36,882 $32,464 $33,771 
Property operating expenses(11,597)(11,487)(11,794)(17,096)(17,649)(15,614)(13,740)(14,115)
Compensation and administrative expenses(3,872)(3,787)(3,106)(7,348)(6,246)(5,752)(5,457)(5,615)
Investment expenses(647)(674)(716)(729)(793)(1,169)(732)(709)
Straight-line rent expenses and amortization of above- and below-market lease intangibles(129)(198)(263)(227)246 195 244 295 
Compensation expense—equity-based542 581 (11)2,092 164 164 384 62 
Installation services— — — — — — 419 (812)
Transaction-related and restructuring charges159 32 77 175 473 791 618 759 
Operating Adjusted EBITDA - DBRG OP share$12,297 $11,948 $12,114 $15,172 $17,643 $15,497 $14,200 $13,636 
Notes:
(1)    Includes all components related to real estate assets, including tangible real estate and lease-related intangibles and cash. Represents cost of investment and additional capital expenditures less real estate impairments.
(2)    Represents unpaid principal balance.
(3)    For a reconciliation of net income/(loss) to Adjusted EBITDA, please refer to the Appendices section of this presentation.
 DigitalBridge | Supplemental Financial Report
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IV. Operating

Operating Capital Expenditures
Consolidated amount2Q231Q234Q223Q222Q221Q224Q213Q21
Non-revenue enhancing capital expenditures$8,284$8,564$14,775$10,992$13,377$7,418$6,410$7,387
Revenue enhancing capital expenditures163,767129,710135,506147,046101,10084,66894,01842,841
Total capital expenditures$172,051$138,274$150,281$158,038$114,477$92,086$100,428$50,228
Leasing Commissions$5,409$2,204$2,194$2,146$2,660$1,266$1,535$1,233
DBRG OP share of consolidated amount
Non-revenue enhancing capital expenditures$946$1,054$1,746$1,878$2,571$1,372$1,097$1,349
Revenue enhancing capital expenditures18,15314,33715,05325,11821,24917,57818,0908,315
Total capital expenditures$19,099$15,391$16,799$26,996$23,820$18,950$19,187$9,664
Leasing Commissions$612$243$244$367$489$308$307$213
Operating Metrics6/30/2023 - 2Q233/31/2023 - 1Q2312/31/2022 - 4Q229/30/2022 - 3Q226/30/2022 - 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q21
Number of Data Centers8383848282787876
Max Critical I.T. Square Feet2,429,5742,405,3532,405,3872,349,8272,317,8271,980,3171,949,1441,819,946
Leased Square Feet1,945,1471,913,0071,887,6591,852,3211,817,1011,608,3781,552,5171,467,420
% Utilization Rate80.1%79.5%78.5%78.8%78.4%81.2%79.7%80.6%
MRR (Annualized)$931.0$907.4$913.4$889.0$892.0$812.3$790.4$773.1
Bookings (Annualized)$85.9$20.6$18.2$22.4$56.5$14.2$15.3$16.6
Quarterly Churn (% of Prior Quarter MRR)1.8%1.7%1.3%1.0%1.7%0.9%1.9%1.3%

 DigitalBridge | Supplemental Financial Report
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V. Other

($ in thousands)
Consolidated amount2Q231Q234Q223Q222Q221Q224Q213Q21
GP Co-investment in DBP I and II Investments$374,139 $345,719 $343,137 $277,450 $284,282 $248,663 $242,856 $230,972 
GP Co-investment in GIF Investment135,857 142,280 — — — — — — 
Equity interests in digital investment vehicles and warehouse / seed investments272,564 346,774 316,299 769,431 906,076 423,467 290,113 272,134 
Other - digital assets net carrying value$782,560 $834,773 $659,436 $1,046,881 $1,190,358 $672,130 $532,969 $503,106 
DBRG OP share of consolidated amount
GP Co-investment in DBP I and II Investments$294,031 $272,395 $270,400 $215,872 $217,504 $187,247 $183,612 $173,732 
GP Co-investment in GIF Investment135,857 142,280 — — — — — — 
Equity interests in digital investment vehicles and warehouse / seed investments188,325 184,938 178,379 467,014 591,066 308,578 174,566 165,902 
Other - digital assets net carrying value$618,213 $599,613 $448,779 $682,886 $808,570 $495,825 $358,178 $339,634 





















 DigitalBridge | Supplemental Financial Report
19
VI. Cash G&A Expense
($ in thousands)
2Q231Q234Q223Q222Q221Q224Q213Q21
Investment Management Cash G&A
Cash and equity-based compensation$45,798 $28,182 $30,829 $22,566 $23,230 $24,808 $20,802 $21,606 
Administrative expenses7,953 6,407 7,958 4,517 4,869 4,171 4,387 5,820 
Compensation expense—equity-based(17,099)(3,898)(7,939)(2,654)(3,361)(3,190)(2,011)(2,046)
Administrative expenses—straight-line rent39 (77)(66)(68)(76)(159)(75)(74)
Administrative expenses—placement agent fee— — — — — — (880)(3,069)
Transaction-related and restructuring charges(2,413)(4,490)(6,560)(1,035)(2,143)(3,943)(2,502)(2,629)
Investment Management Cash G&A34,278 26,124 24,222 23,326 22,519 21,687 19,721 19,608 
Corporate & Other Cash G&A
Cash and equity-based compensation10,759 19,289 10,804 12,404 9,333 20,778 12,084 15,200 
Administrative expenses8,969 12,859 23,373 17,992 12,574 16,815 21,171 12,474 
Compensation expense—equity-based(3,593)(6,872)329 (5,171)(4,840)(5,878)(3,837)(4,651)
Administrative expenses—straight-line rent532 352 485 660 741 856 1,195 602 
Administrative expenses—noncontrolling interests(170)(289)(248)(338)(327)(302)(377)(332)
Transaction-related and restructuring charges(4,282)(6,273)(18,443)(10,549)(2,828)(14,352)(14,229)(5,027)
Corporate & Other Cash G&A12,215 19,066 16,300 14,998 14,653 17,917 16,007 18,266 
DBRG Cash G&A excluding Portfolio Company G&A$46,493 $45,190 $40,522 $38,324 $37,172 $39,604 $35,728 $37,874 
Corporate & Other EBITDA
EBITDA, excluding Cash G&A$9,569 $(853)$10,360 $9,825 $9,414 $8,162 $1,273 $1,515 
Cash G&A(12,215)(19,066)(16,300)(14,998)(14,653)(17,917)(16,007)(18,266)
Corporate & Other EBITDA$(2,646)$(19,919)$(5,940)$(5,173)$(5,239)$(9,755)$(14,734)$(16,751)
 DigitalBridge | Supplemental Financial Report
20





Appendices
 DigitalBridge | Supplemental Financial Report
21
Reconciliations of IM FRE and Operating Adjusted EBITDA to Net Income (Loss)
($ in thousands)2Q231Q234Q223Q222Q221Q224Q213Q21
IM net income (loss)35,177 (2,804)81,167 46,065 67,995 (9,143)28,194 39,272 
Adjustments:
Interest expense (income)2,268 2,411 2,200 2,906 2,771 2,500 2,499 2,250 
Investment expense, net of reimbursement— 51 156 230 (200)138 (12)— 
Depreciation and amortization11,039 6,409 6,135 5,369 5,375 5,276 5,928 8,242 
Compensation expense—equity-based17,099 3,898 6,639 2,654 3,361 3,191 2,011 2,046 
Compensation expense—carried interest and incentive36,076 (36,831)92,738 80,831 49,069 (20,352)25,921 31,736 
Administrative expenses—straight-line rent(39)77 1,541 68 76 159 75 74 
Administrative expenses—placement agent fee3,653 — — — — — 880 3,069 
Transaction-related and restructuring charges3,025 9,682 8,101 2,317 4,042 3,942 2,516 2,627 
Incentive/performance fee income(79,425)53,887 (176,944)(121,698)(110,779)31,119 (5,720)(1,313)
Principal investment income (loss)(1,604)(318)(2,072)(1,016)(1,016)(17)(31,608)(59,196)
Other (gain) loss, net3,608 (3,082)(248)110 424 3,055 (52)(461)
Income tax (benefit) expense2,356 217 2,172 1,263 2,006 2,374 1,852 3,089 
IM Adjusted EBITDA$33,233 $33,597 $21,585 $19,099 $23,124 $22,242 $32,484 $31,435 
Exclude: Start-up FRE of certain new strategies1,165 915 2,643 2,399 2,335 2,362 2,306 2,224 
IM FRE$34,398 $34,512 $24,228 $21,498 $25,459 $24,604 $34,790 $33,659 
Wafra’s 31.5% ownership— — — — (4,700)(7,615)(11,033)(10,737)
DBRG OP share of IM FRE$34,398 $34,512 $24,228 $21,498 $20,759 $16,989 $23,757 $22,922 
2Q231Q234Q223Q222Q221Q224Q213Q21
Operating net income (loss) from continuing operations(93,055)(97,942)(76,990)(93,772)(85,428)(74,141)(83,909)(71,822)
Adjustments:
Interest expense51,285 59,984 45,222 40,770 37,233 36,184 35,144 29,839 
Income tax (benefit) expense499 (56)509 (5)161 (330)(1,941)1,922 
Depreciation and amortization138,209 134,699 133,269 130,663 145,817 122,891 126,436 120,458 
Straight-line rent expenses and amortization of above- and below-market lease intangibles(678)(1,221)(1,749)(2,827)(236)(377)370 482 
Compensation expense—equity-based4,926 5,275 (95)10,852 752 752 1,918 308 
Installation services— — — — — — 2,097 (4,058)
Transaction-related and restructuring charges1,328 184 1,574 1,105 2,400 4,636 3,188 4,042 
Other gain/loss, net(344)(1,769)(3,188)4,418 534 (956)1,226 (285)
Operating Adjusted EBITDA$102,170 $99,154 $98,552 $91,204 $101,233 $88,659 $84,529 $80,886 
 DigitalBridge | Supplemental Financial Report
22
Reconciliations of DE and Adjusted EBITDA to Net Income (Loss)
($ in thousands)2Q231Q234Q223Q222Q221Q224Q213Q21
Net income (loss) attributable to common stockholders$(22,411)$(212,473)$(19,356)$(63,273)$(37,321)$(262,316)$(20,686)$41,036 
Net income (loss) attributable to noncontrolling common interests in Operating Company(1,745)(16,662)(1,583)(4,834)(3,090)(22,862)(1,946)4,311 
Net income (loss) attributable to common interests in Operating Company and common stockholders(24,156)(229,135)(20,939)(68,107)(40,411)(285,178)(22,632)45,347 
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges7,823 18,391 23,772 23,249 29,300 24,668 29,977 19,501 
Other (gain) loss, net (excluding realized gain or loss related to digital assets and fund investments in Corporate and Other)(15,990)141,229 (16,050)(7,211)15,134 130,224 (52,611)11,319 
Unrealized carried interest allocation, net of associated compensation expense(43,791)18,240 (70,541)(1,228)(58,775)13,078 (7,375)(27,953)
Compensation expense - equity-based 25,937 16,339 7,549 18,619 9,344 18,720 19,416 9,038 
Depreciation and amortization149,263 141,220 148,508 146,810 153,548 130,597 145,031 137,602 
Straight-line rent revenue and expense(1,860)(1,727)(7,063)(8,895)(2,956)(2,548)(1,986)(1,925)
Amortization of acquired above- and below-market lease values, net370 26 100 80 (10)(248)(333)(172)
Impairment loss— — — — 12,184 23,802 (40,732)(8,210)
Gain from sales of real estate— — — — — — (197)(514)
Non-revenue enhancing capital expenditures(8,284)(8,564)(14,774)(10,992)(13,377)(1,372)(1,097)(1,349)
Finance lease interest expense, debt prepayment penalties and amortization of deferred financing costs, debt premiums and discounts7,578 15,523 5,572 5,627 5,238 98,465 36,685 7,651 
Preferred share redemption (gain) loss(927)— — — — — 2,127 2,865 
Income tax effect on certain of the foregoing adjustments— — 55 — — (589)8,195 1,663 
Adjustments attributable to noncontrolling interests in investment entities(88,604)(118,563)(69,810)(136,338)(91,676)(132,237)(105,150)(83,074)
DE from discontinued operations2,653 3,656 (4,772)70,721 (16,940)(22,446)(20,954)(116,675)
After-tax DE$10,012 $(3,365)$(18,393)$32,335 $603 $(5,064)$(11,636)$(4,886)

 DigitalBridge | Supplemental Financial Report
23
Reconciliations of DE and Adjusted EBITDA to Net Income (Loss)
($ in thousands)2Q231Q234Q223Q222Q221Q224Q213Q21
After-tax DE$10,012 $(3,365)$(18,393)$32,335 $603 $(5,064)$(11,636)$(4,886)
Interest expense included in DE10,130 12,549 13,756 16,348 14,142 13,280 13,775 14,160 
Income tax expense (benefit) included in DE2,825 1,092 30,616 (7,839)(2,662)(6,849)631 (12,638)
Preferred dividends14,675 14,676 14,765 15,283 15,759 15,759 16,139 17,456 
Principal Investment Income (Loss)— (277)(1,860)(9,303)— (58)(157)(198)
Placement fee expense3,653 — — — — — 603 2,102 
Realized carried interest (allocation) reversal, net of associated compensation (expense) reversal883 (243)(12,377)(20,258)— 1,172 (1,092)(7)
Investment costs and non-revenue enhancing capital expenditures in DE706 1,194 1,252 2,531 3,086 2,023 2,463 1,402 
Non pro-rata allocation of income (loss) to noncontrolling interests— — — — — 231 231 231 
Adjusted EBITDA$42,884 $25,626 $27,759 $29,097 $30,928 $20,494 $20,957 $17,622 




















 DigitalBridge | Supplemental Financial Report
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Definitions
Assets Under Management (“AUM”)
Assets owned by the Company’s balance sheet and assets for which the Company and its affiliates provide investment management services, including assets for which the Company may or may not charge management fees and/or performance allocations. Balance sheet AUM is based on the undepreciated carrying value of digital investments and the impaired carrying value of non digital investments as of the report date. Investment management AUM is based on the cost basis of managed investments as reported by each underlying vehicle as of the report date. AUM further includes uncalled capital commitments, but excludes DBRG OP’s share of non wholly-owned real estate investment management platform’s AUM. The Company's calculations of AUM may differ from the calculations of other asset managers, and as a result, this measure may not be comparable to similar measures presented by other asset managers.

Contracted Revenue Growth (“Bookings”)
The Company defines Bookings as either (1) a new data center customer contract for new or additional services over and above any services already being provided as well as (2) an increase in contracted rates on the same services when a contract renews. In both instances a booking is considered to be generated when a new contract is signed with the recognition of new revenue to occur when the new contract begins billing.

Churn
The Company calculates Churn as the percentage of MRR lost during the period divided by the prior period’s MRR. Churn is intended to represent data center customer contracts which are terminated during the period and not renewed.

DigitalBridge Operating Company, LLC (“DBRG OP”)
The operating partnership through which the Company conducts all of its activities and holds substantially all of its assets and liabilities. DBRG OP share excludes noncontrolling interests in investment entities.

Fee-Earning Equity Under Management (“FEEUM”)
Equity for which the Company and its affiliates provides investment management services and derives management fees and/or performance allocations. FEEUM generally represents the basis used to derive fees, which may be based on invested equity, stockholders’ equity, or fair value pursuant to the terms of each underlying investment management agreement. The Company's calculations of FEEUM may differ materially from the calculations of other asset managers, and as a result, this measure may not be comparable to similar measures presented by other asset managers.

Fee Related Earnings Margin % ("FRE Margin %")
FRE Margin % represents IM FRE divided by management fee revenues, excluding one-time catch-up fees and/or incentives fees.

Non-revenue Enhancing Capital Expenditures
Represents capitalized expenditures needed to maintain operating real estate which are not expected to generate incremental revenue.

Revenue Enhancing Capital Expenditures
Represents capitalized expenditures including major capital improvements for expansions, transformations and incremental improvements to the operating portfolio intended to result in increased revenues and Adjusted EBITDA at the property.

Max Critical I.T. Square Feet
Amount of total rentable square footage.

Monthly Recurring Revenue (“MRR”)
The Company defines MRR as revenue from ongoing services that is generally fixed in price and contracted for longer than 30 days.

UPB: Unpaid Principal Balance

% Utilization Rate: Amount of leased square feet divided by max critical I.T. square feet.
 DigitalBridge | Supplemental Financial Report
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