EX-99.2 3 ex9922021q3supp.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, including statements related to our digital transformation. 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, the duration and severity of the current novel coronavirus (COVID-19) pandemic, and its impact on the global market, economic and environmental conditions generally and in the digital and communications technology, wellness infrastructure and hospitality real estate, other commercial real estate equity and debt, and investment management sectors; the effect of COVID-19 on the Company's operating cash flows, debt service obligations and covenants, liquidity position and valuations of its real estate investments; whether we will successfully execute our strategic transformation to become a digital infrastructure and real estate focused company within the timeframe contemplated or at all, and the impact of such transformation on the Company's legacy portfolios and assets, including whether such transformation will be consistent with the Company’s REIT status; our ability to obtain and maintain financing arrangements, including securitizations, on favorable or comparable terms or at all; the Company's ability to complete anticipated monetizations of non-core assets within the timeframe and on the terms contemplated, if at all, and the impact of the completion of such sales; the impact of completed or anticipated initiatives related to our digital transformation, including the strategic investment by Wafra and the formation of certain other investment management platforms, on our company's growth and earnings profile; whether we will realize any of the anticipated benefits of our strategic partnership with Wafra, including whether Wafra will make additional investments in our Digital IM and Digital Operating segments; our ability to integrate and maintain consistent standards and controls, including our ability to manage our acquisitions in the digital industry effectively; the ability to realize anticipated strategic and financial benefits from terminating the management agreement with Brightspire Capital, Inc. (NYSE:BRSP; formerly, Colony Credit Real Estate, Inc. or CLNC); the impact to our business operations and financial condition of realized or anticipated compensation and administrative savings through cost reduction programs; our ability to redeploy any proceeds received from the sale of our non-digital or other legacy assets within the timeframe and manner contemplated or at all; our business and investment strategy, including the ability of the businesses in which we have a significant investment (such as BRSP) to execute their business strategies; BRSP's trading price and its impact on the carrying value of the Company's investment in BRSP; 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 grow our business by raising capital for the companies that we manage; our ability to deploy capital into new investments consistent with our digital business strategies, including the earnings profile of such new investments; the impact of adverse conditions affecting a specific asset class in which we have investments; the availability of, and competition for, attractive investment opportunities; 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 ability to satisfy and manage our capital requirements; 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; stability of the capital structure of our wellness infrastructure portfolio and OED portfolio; changes in interest rates and 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; any litigation and contractual claims against us and our affiliates, including potential settlement and litigation of such claims; our levels of leverage; adverse domestic or international economic conditions, including those resulting from the COVID-19 pandemic, and the impact on the commercial real estate or real-estate related sectors; the impact of legislative, regulatory and competitive changes; actions, initiatives and policies of the U.S. and non-U.S. governments and changes to U.S. or non-U.S. government policies and the execution and impact of these actions, initiatives and policies; whether we will maintain our qualification as a real estate investment trust for U.S. federal income tax purposes and our ability to do so; our ability to maintain our exemption from registration as an investment company under the Investment Company Act of 1940, as amended; changes in our board of directors or management team, and availability of qualified personnel; our ability to make or maintain distributions to our stockholders; our understanding of our competition, 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, 2020 and Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and June 30,2021, each 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 press release. 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 supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including the financial metrics defined below, of which the calculations may differ from methodologies utilized by other REITs for similar performance measurements, and accordingly, may not be comparable to those of other REITs.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA): The Company calculates Adjusted EBITDA by adjusting Core FFO to exclude cash interest expense, preferred dividends, tax expense or benefit, earnings from equity method investments, placement fees, realized carried interest and incentive fees and revenues and corresponding costs related to installation services. The Company uses Adjusted EBITDA as a supplemental measure of our performance because they eliminate depreciation, amortization, and the impact of the capital structure from its operating results. However, because Adjusted EBITDA is calculated before recurring cash charges including interest expense and taxes and are not adjusted for capital expenditures or other recurring cash requirements, their utilization as a cash flow measurement is limited.

FFO, Core FFO and AFFO:
The Company calculates funds from operations (FFO) in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, which defines FFO as net income or loss calculated in accordance with GAAP, excluding (i) extraordinary items, as defined by GAAP; (ii) gains and losses from sales of depreciable real estate; (iii) impairment write-downs associated with depreciable real estate; (iv) gains and losses from a change in control in connection with interests in depreciable real estate or in-substance real estate, plus (v) real estate-related depreciation and amortization; and (vi) including similar adjustments for equity method investments. Included in FFO are gains and losses from sales of assets which are not depreciable real estate such as loans receivable, equity method investments, as well as equity and debt securities, as applicable.

The Company computes core funds from operations (Core FFO) by adjusting FFO for the following items, including the Company’s share of these items recognized by its unconsolidated partnerships and joint ventures: (i) equity-based compensation expense; (ii) effects of straight-line rent revenue and expense; (iii) amortization of acquired above- and below-market lease values; (iv) debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts; (v) non-real estate depreciation, amortization and impairment; (vi) restructuring and transaction-related charges; (vii) non-real estate loss (gain), fair value loss (gain) on interest rate and foreign currency hedges, and foreign currency remeasurements except realized gain and loss from the Digital Other segment; (viii) net unrealized carried interest; and (ix) tax effect on certain of the foregoing adjustments. The Company’s Core FFO from its interest in BrightSpire Capital, Inc. (NYSE: BRSP) represented the cash dividends declared in the reported period. The Company excluded results from discontinued operations in its calculation of Core FFO and applied this exclusion to prior periods.

The Company computes adjusted funds from operations (AFFO) by adjusting Core FFO for recurring capital expenditures necessary to maintain the operating performance of its properties.

The Company uses FFO, Core FFO and AFFO as supplemental performance measures because, in excluding real estate depreciation and amortization and gains and losses, it provides a performance measure that captures trends in occupancy rates, rental rates, and operating costs, and such a measure is useful to investors as it excludes periodic gains and losses from sales of investments that are not representative of its ongoing operations and assesses the Company's ability to meet distribution requirements. The Company also believes that, as widely recognized measures of the performance of REITs, FFO, Core FFO and AFFO will be used by investors as a basis to compare its operating performance and ability to meet distribution requirements with that of other REITs. However, because FFO, Core FFO and AFFO exclude depreciation and amortization and does not capture changes in the value of the Company’s properties that resulted from use or market conditions, which has real economic effect and could materially impact the Company’s results from operations, the utility of FFO, Core FFO and AFFO as measures of the Company’s performance is limited.

FFO, Core FFO and AFFO should not be considered alternatives to GAAP net income as indications of operating performance, or to cash flows from operating activities as measures of liquidity, nor as indications of the availability of funds for our cash needs, including funds available to make distributions. FFO, Core FFO and AFFO should be considered only as supplements to GAAP net income as measures of the Company’s performance and to cash flow from operating activities computed in accordance with GAAP. Additionally, Core FFO and AFFO excludes the impact of certain fair value fluctuations, which, if they were to be realized, could have a material impact on the Company’s operating performance.





DigitalBridge | Supplemental Financial Report

Important Note Regarding Non-GAAP Financial Measures
Digital Operating Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) and Adjusted EBITDA: The Company calculates EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts, which defines EBITDAre as net income or loss calculated in accordance with GAAP, excluding interest, taxes, depreciation and amortization, gains or losses from the sale of depreciated property, and impairment of depreciated property. The Company calculates Adjusted EBITDA by adjusting EBITDAre for the effects of straight-line rental income/expense adjustments and amortization of acquired above- and below-market lease adjustments to rental income, revenues and corresponding costs related to the delivery of installation services, equity-based compensation expense, restructuring and transaction related costs, the impact of other impairment charges, gains or losses from sales of undepreciated land, gains or losses from foreign currency remeasurements, and gains or losses on early extinguishment of debt and hedging instruments. The Company uses EBITDAre and Adjusted EBITDA as supplemental measures of our performance because they eliminate depreciation, amortization, and the impact of the capital structure from its operating results. EBITDAre represents a widely known supplemental measure of performance, EBITDA, but for real estate entities, which we believe is particularly helpful for generalist investors in REITs. EBITDAre depicts the operating performance of a real estate business independent of its capital structure, leverage and noncash items, which allows for comparability across real estate entities with different capital structure, tax rates and depreciation or amortization policies. Additionally, exclusion of gains on disposition and impairment of depreciated real estate, similar to FFO, also provides a reflection of ongoing operating performance and allows for period-over-period comparability. However, because EBITDAre and Adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes and are not adjusted for capital expenditures or other recurring cash requirements, their utilization as a cash flow measurement is limited.

Digital Investment Management Fee Related Earnings (FRE): The Company calculates FRE for its investment management business within the digital segment as base management fees, other service fee income, and other income inclusive of cost reimbursements, less compensation expense excluding equity-based compensation, carried interest and incentive compensation, administrative expenses (excluding fund raising placement agent fee expenses), and other operating expenses related to the investment management business. The Company uses FRE as a supplemental performance measure as it may provide additional insight into the profitability of the overall digital investment management business.

In evaluating the information presented throughout this financial supplemental report see the appendices to this presentation for definitions and reconciliations of non-GAAP financial measures to GAAP measures. For purposes of comparability, historical data in this presentation may include certain adjustments from prior reported data at the historical period.
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:

Digital Investment Management (Digital IM)
This business encompasses the investment and stewardship of third party capital in digital infrastructure and real estate. The Company's flagship opportunistic strategy is conducted through DCP I, DCP II and separately capitalized vehicles while other strategies, including digital credit and public equities, will be or 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 carried interest and incentive fees based on the performance of such investment vehicles subject to achievement of minimum return hurdles.

Digital Operating
This business is composed of balance sheet equity interests in digital infrastructure and real estate operating companies, which generally earns rental income from providing use of space and/or capacity in or on digital assets through leases, services and other agreements. The Company currently owns interests in two companies, DataBank's enterprise data centers, including zColo, and Vantage stabilized hyperscale data centers, which are also portfolio companies under Digital IM for the equity interests owned by third party capital.

Corporate and Other
This segment is composed of the Company's remaining non-core activities and corporate level activities.

Non-core activities are composed of the Company's equity interests in: (i) digital investment vehicles, the largest of which is the Company’s investments and commitments to DCP flagship funds, and seed investments in various strategies such as digital liquid and digital credit; and (ii) remaining non-digital investments, primarily the Company’s interest in BrightSpire Capital, Inc. (BRSP), that are not substantially available for immediate sale and are expected to be monetized over an extended period beyond the near term. These non-core activities generate largely equity method 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, non-core 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.

Corporate level activities include corporate level cash and corresponding interest income, corporate level financing and related interest expense and preferred dividends, corporate level transaction costs, costs in connection with unconsummated investments, costs incurred as manager of the Company's investment vehicles and income for reimbursement of these costs, 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. Elimination adjustment pertains to fee income earned by the Digital Investment Management segment from third party capital in investment vehicles managed by the Company and consolidated within the Digital Operating segment and in Corporate and Other.

Discontinued Operations
Following the successful exit of its hotel business, the Company is now in the final stages of monetizing the remainder of its non-digital businesses to complete its digital transformation. This includes the Company's Wellness Infrastructure business, and a substantial majority of the Company's other equity and debt investments and its non-digital investment management business, both of which resided in the Other segment. The completed and pending dispositions of the Company’s hotel business, other equity and debt investments, other IM business, and Wellness Infrastructure represent strategic shifts in the Company's business that have or are expected to have a significant effect on the Company’s operations and financial results, and accordingly, have met the criteria as discontinued operations. For all current and prior periods presented, the related assets and liabilities, to the extent they have not been disposed at the respective balance sheet dates, are presented as assets and liabilities held for disposition on the consolidated balance sheets and the related operating results are presented as income (loss) from discontinued operations on the consolidated statements of operations.


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
II.
Financial Results
a.
Balance Sheet Consolidated & Noncontrolling Interests’ Share
7
b.
8
c.
9
d.
10-11
III.
Capitalization
a.
Debt Summary
12
b.
Secured Fund Fee Revenue Notes and Variable Funding Notes
13
c.
Convertible/Exchangeable Notes & Perpetual Preferred Stock
14
d.
Organization Structure
15
IV.
Assets Under Management
16
V.
Digital Investment Management
17
VI.
Digital Operating
18-20
VII.
Corporate and Other
21
Appendices
Reconciliations of Digital IM FRE/Adjusted EBITDA and Digital Operating Adjusted EBITDA to Net Income (Loss)23
Reconciliations of Core FFO and Adjusted EBITDA to Net Income (Loss)24-25
Definitions26

 DigitalBridge | Supplemental Financial Report
5
Ia. Financial Overview - Summary Metrics
($ and shares in thousands, except per share data and as noted) (Unaudited)
9/30/2021 - 3Q216/30/2021 - 2Q213/31/2021 - 1Q2112/31/2020 - 4Q209/30/2020- 3Q206/30/2020 - 2Q203/31/2020 - 1Q20
Financial Data
Net income (loss) attributable to common stockholders$41,036$(141,260)$(264,806)$(140,575)$(205,784)$(2,042,790)$(361,633)
Net income (loss) attributable to common stockholders per basic share0.08(0.29)(0.56)(0.30)(0.44)(4.33)(0.76)
Core FFO2,049(4,814)(9,987)(25,140)(30,710)(29,250)(31,679)
Core FFO per basic share—(0.01)(0.02)(0.05)(0.06)(0.05)(0.06)
AFFO700
(1)
(1)
(1)
(1)
(1)
(1)
AFFO per basic share—
(1)
(1)
(1)
(1)
(1)
(1)
Adjusted EBITDA17,62215,37712,538(2,444)(5,519)(5,236)(14,588)
Balance Sheet, Capitalization and Trading Statistics
Total consolidated assets$15,442,981$15,921,346$16,625,250$20,200,560$19,043,050$16,183,534$19,160,062
 DBRG OP share of consolidated assets6,086,2596,929,3907,324,78410,119,83410,087,80810,622,32213,149,318
Total consolidated debt(2)(4)
4,621,2403,919,2557,023,2267,931,4587,165,8599,612,5259,862,223
 DBRG OP share of consolidated debt(3)(4)
1,391,9431,073,6093,392,6203,853,6423,683,6607,147,3567,365,939
Basic shares and OP units outstanding(3)(4)
547,162545,815538,908535,217535,473535,201534,113
Liquidation preference of perpetual preferred equity(5)
947,5001,033,7501,033,7501,033,7501,033,7501,033,7501,033,750
Insider ownership of shares and OP units4.0%4.0%9.4%9.4%10.0%9.9%9.6%
Digital Assets Under Management ("AUM") (in billions)$37.8$34.9$32.0$30.0$23.3$21.6$20.6
% of total company AUM76.6%72.1%69.4%57.8%49.7%47.2%42.9%
Digital Fee Earning Equity Under Management ("FEEUM") (in billions)$16.5$14.5$12.9$12.8$8.6$7.7$7.7
% of total company FEEUM78.6%73.9%71.6%64.2%49.2%47.6%46.0%





(1)    AFFO introduced in Q3 2021 and was not reported in prior periods.
(2)    Represents principal balance and excludes debt issuance costs, discounts and premiums.
(3)     Represents common shares and OP units outstanding including all vested and unvested restricted stock and vested director share units. Excluded are Class A common stock or OP units issuable in connection with Wafra’s warrants, 30.7 million unvested shares related to LTIP units, performance stock units, and performance based restricted stock units, which the issuance and/or vesting are subject to the performance of the Company's stock price or the achievement of certain Company-specific metrics.
(4)     In October 2021, DBRG, pursuant to a privately negotiated exchange agreement, exchanged $44 million of the outstanding principal of the 5.75% exchangeable notes into 20 million shares of the Company's class A common stock.
(5)     In November 2021, the Company will redeem 2,560,000 shares, representing approximately 22.3% of the 11,500,000 issued and outstanding shares of 7.125% Series H Cumulative Redeemable Perpetual Preferred Stock with a total liquidation preference of $64 million.
 DigitalBridge | Supplemental Financial Report
6
IIa. Financial Results - Balance Sheet

($ in thousands, except per share data) (unaudited)As of September 30, 2021
ConsolidatedNon Controlling Interests' Share
Assets
Cash and cash equivalents$1,277,733 $333,527 
Restricted cash87,551 69,149 
Real estate, net4,914,813 4,138,283 
Loans receivable112,252 4,273 
Equity and debt investments793,065 256,179 
Goodwill761,368 456,477 
Deferred leasing costs and intangible assets, net1,241,042 1,065,645 
Assets held for disposition5,470,027 2,191,949 
Other assets739,603 826,900 
Due from affiliates45,527 14,340 
Total assets$15,442,981 $9,356,722 
Liabilities
Debt, net$4,571,210 $3,495,031 
Accrued and other liabilities951,882 659,596 
Intangible liabilities, net34,759 29,492 
Liabilities related to assets held for disposition3,831,563 1,308,545 
Due to affiliates228 — 
Dividends and distributions payable16,899 — 
Total liabilities9,406,541 5,492,664 
Commitments and contingencies
Redeemable noncontrolling interests348,170 348,170 
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value per share; $947,500 liquidation preference; 250,000 shares authorized; 37,900 shares issued and outstanding916,105 — 
Common stock, $0.01 par value per share
Class A, 949,000 shares authorized; 493,456 shares issued and outstanding4,934 — 
Class B, 1,000 shares authorized; 666 shares issued and outstanding7 — 
Additional paid-in capital7,625,552 — 
Accumulated deficit(6,557,621)— 
Accumulated other comprehensive income66,880 — 
Total stockholders’ equity2,055,857 — 
Noncontrolling interests in investment entities3,515,888 3,515,888 
Noncontrolling interests in Operating Company116,525 — 
Total equity5,688,270 3,515,888 
Total liabilities, redeemable noncontrolling interests and equity$15,442,981 $9,356,722 
 DigitalBridge | Supplemental Financial Report
7
IIb. Financial Results - Consolidated Segment Operating Results
Three Months Ended September 30, 2021
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $194,854 $— $— $194,854 
Interest income1 93 2,992 — 3,086 
Fee income(1)
51,873 — (1,647)— 50,226 
Other income1,922 19 2,067 — 4,008 
 Total revenues53,796 194,966 3,412 — 252,174 
Expenses
Property operating expense— 80,226 — — 80,226 
Interest expense2,250 29,839 7,806 — 39,895 
Investment expense1,438 4,663 1,162 — 7,263 
Transaction-related costs— 199 737 — 936 
Depreciation and amortization8,242 120,458 486 — 129,186 
Compensation expense
Cash and equity-based compensation21,606 19,127 15,200 — 55,933 
Carried interest and incentive fee compensation31,736 — — — 31,736 
Administrative expenses5,820 10,639 12,474 — 28,933 
 Total expenses71,092 265,151 37,865 — 374,108 
Other income (loss)
Other gain (loss), net461 285 3,911 — 4,657 
Equity method earnings (loss)814 — 6,173 — 6,987 
Equity method earnings (loss) - carried interest58,382 — — — 58,382 
Income (loss) before income taxes42,361 (69,900)(24,369)— (51,908)
Income tax benefit (expense)(3,089)(1,922)15,984 — 10,973 
Income (loss) from continuing operations39,272 (71,822)(8,385)— (40,935)
Income (loss) from discontinued operations— — — (10,429)(10,429)
Net income (loss)39,272 (71,822)(8,385)(10,429)(51,364)
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests3,903 — 3,366 — 7,269 
Investment entities16,721 (58,401)3,120 (85,741)(124,301)
Operating Company1,778 (1,279)(3,365)7,177 4,311 
Net income (loss) attributable to DigitalBridge Group, Inc.16,870 (12,142)(11,506)68,135 61,357 
Preferred stock redemption— — 2,865 — 2,865 
Preferred stock dividends— — 17,456 — 17,456 
Net income (loss) attributable to common stockholders$16,870 $(12,142)$(31,827)$68,135 $41,036 



 DigitalBridge | Supplemental Financial Report
8
IIc. Financial Results - Noncontrolling Interests’ Share Segment Operating Results
Three Months Ended September 30, 2021
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $161,106 $— $— $161,106 
Interest income— 74 19 — 93 
Fee income16,149 — — — 16,149 
Other income603 15 627 — 1,245 
 Total revenues16,752 161,195 646 — 178,593 
Expenses
Property operating expense— 66,111 — — 66,111 
Interest expense— 24,139 — — 24,139 
Investment expense453 3,956 112 — 4,521 
Transaction-related costs— 15 — — 15 
Depreciation and amortization2,593 100,018 — — 102,611 
Compensation expense
Cash and equity-based compensation5,045 15,300 — — 20,345 
Carried interest and incentive fee compensation23,940 — — — 23,940 
Administrative expenses836 8,393 332 — 9,561 
 Total expenses32,867 217,932 444 — 251,243 
Other income (loss)
Gain on sale of real estate assets— 
Other gain (loss), net105 224 3,164 — 3,493 
Equity method earnings (loss)715 — 3,119 — 3,834 
Equity method earnings (loss) - carried interest35,497 — — — 35,497 
Income (loss) before income taxes20,202 (56,513)6,485 — (29,826)
Income tax benefit (expense)(2)(1,537)— — (1,539)
Net income (loss)20,200 (58,050)6,485 — (31,365)
Income (loss) from discontinued operations— — — (85,740)(85,740)
Non-pro rata allocation of income (loss) to NCI424 (351)— — 73 
Net income (loss) attributable to noncontrolling interests$20,624 $(58,401)$6,485 $(85,740)$(117,032)

 DigitalBridge | Supplemental Financial Report
9
IId. Financial Results - Segment Reconciliation of Net Income to FFO, Core FFO, AFFO and Adjusted EBITDA

OP pro rata share by segmentAmounts
attributable to
noncontrolling interests		DBRG consolidated as reported
($ in thousands; for the three months ended September 30, 2021; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Net income (loss) attributable to common stockholders$16,870 $(12,142)$(31,827)$68,135 $41,036 $— $41,036 
Net income (loss) attributable to noncontrolling common interests in Operating Company1,778 (1,279)(3,365)7,177 4,311 — 4,311 
Net income (loss) attributable to common interests in Operating Company and common stockholders18,648 (13,421)(35,192)75,312 45,347 — 45,347 
Adjustments for FFO:
Real estate depreciation and amortization— 19,787 2,508 2,664 24,959 101,535 126,494 
Impairment of real estate— — — (2,211)(2,211)(5,999)(8,210)
Gain from sales of real estate— — — (490)(490)(24)(514)
Less: Adjustments attributable to noncontrolling interests in investment entities— — — — — (95,512)(95,512)
FFO$18,648 $6,366 $(32,684)$75,275 $67,605 $— $67,605 
Additional adjustments for Core FFO:
Adjustment to BRSP cash dividend— — 7,201 2,277 9,478 — 9,478 
Equity-based compensation expense1,726 62 4,651 2,033 8,472 566 9,038 
Straight-line rent revenue and expense50 207 (602)(765)(1,110)(815)(1,925)
Amortization of acquired above- and below-market lease values, net— 87 — (620)(533)361 (172)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts281 641 679 596 2,197 5,454 7,651 
Non-real estate fixed asset depreciation, amortization and impairment41 653 486 1,578 2,758 10,858 13,616 
Restructuring and transaction-related charges(1)
2,440 184 5,763 10,913 19,300 201 19,501 
Non-real estate (gains) losses, excluding realized gains or losses within the Digital Other segment(425)(60)(7,956)32,035 23,594 (12,275)11,319 
Net unrealized carried interest(9,381)— — (251)(9,632)(18,321)(27,953)
Preferred share redemption loss— — 2,865 — 2,865 — 2,865 
Deferred taxes and tax effect on certain of the foregoing adjustments(259)385 — — 126 1,537 1,663 
Less: Adjustments attributable to noncontrolling interests in investment entities— — — — — 12,438 12,438 
Less: Core FFO from discontinued operations— — — (123,071)(123,071)(4)(123,075)
Core FFO$13,121 $8,525 $(19,597)$— $2,049 $— $2,049 
Additional adjustments for AFFO:
Recurring capital expenditures— (1,349)— — (1,349)— (1,349)
AFFO$13,121 $7,176 $(19,597)$— $700 $— $700 


Notes:
(1)    Restructuring and non-recurring items 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. Includes $2 million of compensation expense related to the additional consideration Wafra paid for the Digital Investment Management business, which was paid on behalf of certain employees to fund their share of GP interests.
 DigitalBridge | Supplemental Financial Report
10
IId. Financial Results - Segment Reconciliation of Net Income to FFO, Core FFO, AFFO and Adjusted EBITDA

OP pro rata share by segment
($ in thousands; for the three months ended September 30, 2021; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Core FFO$13,121 $8,525 $(19,597)$— $2,049 
Less: Earnings of equity method investments(30)— (5,754)— (5,784)
Plus: Preferred dividends— — 17,456 — 17,456 
Plus: Core interest expense(1)
1,973 5,059 7,128 — 14,160 
Plus: Core tax expense(1)
3,346 — (15,984)— (12,638)
Plus: Non pro-rata allocation of income (loss) to NCI231 — — 231 
Plus: Placement fees2,102 — — — 2,102 
Less: Net realized carried interest, incentive fees, and other adjustments to Fee Related Earnings(7)— — — (7)
Plus: Digital Operating installation services, transaction, investment and servicing costs— 53 — — 53 
Adjusted EBITDA (DBRG OP Share)$20,736 $13,637 $(16,751)$— $17,622 




























Notes:
(1)    Excludes components that are included in adjustments for Core FFO.
 DigitalBridge | Supplemental Financial Report
11
IIIa. Capitalization - Debt Summary
($ in thousands; as of September 30, 2021)
Consolidated debt
Payments due by period(1)
20212022202320242025 and afterTotal
Investment-level debt:
Digital Operating - Fixed$1,558 $6,230 $219,793 $600,753 $1,957,889 $2,786,223 
Digital Operating - Variable50 430,600 38,350 15,750 546,267 $1,031,017 
Total Digital Operating1,608 436,830 258,143 616,503 2,504,156 3,817,240 
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — — — 
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 
Other (2)
— — 4,000 — — 4,000 
Convertible/exchangeable senior notes— — 200,000 — 300,000 500,000 
Total consolidated debt (3)
$1,608 $436,830 $462,143 $616,503 $3,104,156 $4,621,240 
Fixed/VariableWA Interest RateWA Remaining Term
DBRG OP share of debt
Payments due by period(1)
20212022202320242025 and afterTotal
Investment-level debt:
Digital Operating - Fixed$205 $818 $28,859 $78,879 $302,399 $411,160 Fixed2.5%4.2
Digital Operating - Variable10 56,579 7,678 3,153 109,363 $176,783 Variable4.4%3.1
Total Digital Operating215 57,397 36,537 82,032 411,762 587,943 3.1%3.9
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — — — VariableN/A5.0
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 Fixed3.9%5.0
Other (2)
— — 4,000 — — 4,000 Variable1.2%1.8
Convertible/exchangeable senior notes— — 200,000 — 300,000 500,000 Fixed5.5%2.9
Total DBRG share of debt (3)
$215 $57,397 $240,537 $82,032 $1,011,762 $1,391,943 


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.
(2)    In the third quarter of 2021, the Company entered into a $50 million credit facility to fund the acquisition of loans that are warehoused for a future securitization vehicle.
(3)    Excluded from above presentation is debt of assets which are presented under discontinued operations for the third quarter 2021, including, certain Other Equity and Debt assets and the Wellness Infrastructure business along with other non-core assets, all of which are held by the Company's subsidiary, NRF Holdco, LLC, who acts as guarantor, including 5.375% exchangeable senior notes, trust preferred securities and corresponding junior subordinated debt.
 DigitalBridge | Supplemental Financial Report
12
IIIb. Capitalization - DBRG Series 2021-1(1)
($ in thousands, as of September 30, 2021)
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$200,000 
Amount outstanding$— 
Interest Rate 3M LIBOR + 3.00%
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 November 3, 2021, DBRG is meeting all required covenant threshold levels.








Notes:
(1)    In July 2021, the Company completed a first of its kind secured fund fee revenue term note and variable funding note (VFN) issuance totaling $500 million, DBRG Series 2021-1. The Company fully repaid and terminated its revolving credit facility in July 2021.
(2)    Anticipated Repayment Date is September 25, 2026 including two 1-year extension options subject to 1) either rating agency confirmation and consent of VFN noteholders are obtained or DSCR exceeding 1.75x, 2) term notes rating not less than BBB- 3) the payment of a 0.05% extension fee and 4) other customary conditions.
(3)    Debt service coverage ratio covenant thresholds: minimum of 1.75x for ability to borrow from the VFN; below 1.75x to 1.50x = 50% cash trap; below 1.50x to 1.20x = 100% cash trap; and below 1.20x = cash sweep.
(4)    100% cash sweep until LTV is less than 35%.
(5)    50% cash sweep until ratio is less than 60%.
 DigitalBridge | Supplemental Financial Report
13
IIIc. Capitalization - Convertible/Exchangeable Notes & Perpetual Preferred Stock
($ in thousands; except per share data; as of September 30, 2021)
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$300,000 
(2)
July 15, 20255.75% fixed$2.30 434.7826 130,435 
5.0% Convertible senior notes200,000 April 15, 20235.00% fixed15.76 63.4700 12,694 
Total convertible debt$500,000 


Perpetual preferred stock
DescriptionLiquidation
preference		Shares outstanding (In thousands)Callable period
Series H 7.125% cumulative redeemable perpetual preferred stock (3)
287,500 11,500 Callable
Series I 7.15% cumulative redeemable perpetual preferred stock345,000 13,800 On or after June 5, 2022
Series J 7.125% cumulative redeemable perpetual preferred stock315,000 12,600 On or after September 22, 2022
Total preferred stock$947,500 37,900 
















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, for the 5.75% exchangeable senior notes and on or after April 22, 2020, for the 5.0% convertible senior notes.
(2)     In October 2021, DBRG pursuant to a privately negotiated exchange agreement, exchanged $44 million of the outstanding principal of the 5.75% exchangeable notes into 20 million shares of the Company's class A common stock.
(3)     In November 2021, the Company will redeem 2,560,000 shares, representing approximately 22.3% of the 11,500,000 issued and outstanding shares of 7.125% Series H Cumulative Redeemable Perpetual Preferred Stock with a total liquidation preference of $64 million.
 DigitalBridge | Supplemental Financial Report
14
IIId. Capitalization - Organization Structure




legalstructure.jpg
 DigitalBridge | Supplemental Financial Report
15
IV. Assets Under Management
($ in millions)DBRG OP Share
Segment9/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Digital Investment Management(1)
$36,337 $33,551 $30,711 $28,577 $22,237 $21,015 $20,107 
Digital Operating1,157 1,093 1,073 1,087 724 300 290 
Corporate and Other Assets(2)
11,880 13,790 14,397 22,300 23,853 24,392 27,715 
Total AUM$49,374 $48,434 $46,181 $51,964 $46,814 $45,707 $48,112 



































Notes:
(1)    In October 2021, funds affiliated with the Company’s investment management platform acquired a controlling stake in Vertical Bridge Holdings, LLC, resulting in a net increase of approximately $2 billion to AUM.
(2)    September 30, 2021 includes $11.2 billion of assets held for disposition on the consolidated balance sheet with related operating results presented as income (loss) from discontinued operations on the consolidated statement of operations of the Company.
 DigitalBridge | Supplemental Financial Report
16
V. Digital Investment Management

($ in millions)
AUM DBRG OP Share9/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Digital Colony Partners I$6,180 $6,003 $5,931 $6,089 $5,686 $5,665 $5,526 
Digital Colony Partners II8,005 6,431 4,775 3,241 — — — 
Separately Capitalized Portfolio Companies10,147 10,254 9,893 8,947 8,273 9,556 8,990 
Co-Investment (Sidecar) Capital11,417 10,273 9,591 9,857 8,181 5,692 5,477 
Liquid Strategies588 590 521 443 97 102 114 
Digital IM AUM (1)
$36,337 $33,551 $30,711 $28,577 $22,237 $21,015 $20,107 
FEEUM DBRG OP ShareFee Rate 9/30/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Digital Colony Partners I1.1%$3,040 $3,081 $3,179 $3,756 $3,756 $3,756 $3,756 
Digital Colony Partners II1.1%7,146 5,519 3,964 3,217 — — — 
Separately Capitalized Portfolio Companies0.8%2,576 2,576 2,534 2,777 2,603 3,019 3,017 
Co-Investment (Sidecar) Capital0.5%3,184 2,817 2,744 2,655 2,042 841 841 
Liquid Strategies0.5%510 512 432 437 153 127 128 
Digital IM FEEUM (1)
0.9%$16,456 $14,505 $12,853 $12,842 $8,554 $7,743 $7,742 
($ in thousands)
Digital IM FRE / Adjusted EBITDA3Q212Q211Q214Q203Q202Q201Q20
Fee income$37,751 $33,304 $28,917 $24,191 $19,172 $18,987 $18,068 
Fee income, other (2)
12,809 8,996 2,148 862 876 1,306 876 
Other income483 84 54 183 87 552 197 
Compensation expense—cash(16,933)(14,426)(10,852)(18,353)(9,414)(9,208)(6,964)
Administrative expenses(2,675)(2,337)(2,067)(2,310)(1,832)(2,330)(2,127)
Digital IM FRE / Adjusted EBITDA (3)
$31,435 $25,621 $18,200 $4,573 $8,889 $9,307 $10,050 
DBRG OP share of Digital IM FRE / Adjusted EBITDA(4)
$20,736 $17,449 $11,645 $2,051 $6,306 $9,307 $10,050 



Notes:
(1)    In October 2021, funds affiliated with the Company’s investment management platform acquired a controlling stake in Vertical Bridge Holdings, LLC, resulting in a net increase of approximately $2 billion to AUM. FEEUM is not expected to change significantly through new co-investments in Vertical Bridge.
(2)    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.
(3)    For reconciliations of net income/(loss) to FRE / Adjusted EBITDA, please refer to the Appendices section of this presentation.
(4)    In July 2020, the Company closed on a strategic investment from Wafra for a 31.5% ownership stake in the Digital Investment Management business. Represents the Company interest after deducting Wafra's 31.5% interest.
 DigitalBridge | Supplemental Financial Report
17
VI. Digital Operating

($ in millions, unless otherwise noted)
Portfolio Overview9/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Consolidated amount
Asset(1)
$7,211,293 $6,735,683 $6,633,245 $6,248,162 $4,925,383 $1,496,460 $1,448,249 
Debt(2)(3)
(3,817,240)(3,374,255)(3,369,338)(3,226,843)(2,546,359)(515,007)(515,832)
Net Carrying Value - Consolidated$3,394,053 $3,361,428 $3,263,907 $3,021,319 $2,379,024 $981,453 $932,417 
DBRG OP share of consolidated amount
Asset(1)
$1,157,098 $1,092,632 $1,073,366 $1,086,573 $724,234 $299,591 $289,939 
Debt(2)(3)
(587,943)(528,609)(527,520)(536,231)(355,263)(103,104)(103,270)
Net Carrying Value - DBRG OP share$569,155 $564,023 $545,846 $550,342 $368,971 $196,487 $186,669 
DBRG net carrying value % interest17 %17 %17 %18 %16 %20 %20 %
($ in millions, unless otherwise noted)
Operating Metrics (4)
9/30/2021 - 3Q21 (5)
6/30/2021 - 2Q213/31/2021 - 1Q2112/31/2020 - 4Q209/30/2020- 3Q206/30/2020 - 2Q203/31/2020 - 1Q20
Number of Data Centers76767632322019
Max Critical I.T. Square Feet1,819,9461,809,9431,791,7811,138,0481,137,866456,649410,974
Leased Square Feet1,467,4201,439,2911,423,322967,879945,640316,697301,791
% Utilization Rate80.6%79.5%79.4%85.0%83.1%69.4%73.4%
MRR (Annualized)$773.1$750.2$743.0$442.0$374.0$171.4$171.2
Bookings (Annualized)$16.6$16.4$23.0$6.0$9.4$6.6$7.4
Quarterly Churn (% of Prior Quarter MRR)1.3%1.3%1.3%.8%.8%1.7%2.7%











Notes:
(1)    Includes all components related to real estate assets, including tangible real estate and lease-related intangibles and cash.
(2)    Represents unpaid principal balance.
(3)    For the third quarter 2021, in addition to debt presented, the Digital operating segment has $144 million consolidated, or $29 million DBRG OP share, of finance lease obligations, which represents the present value of payments on leases classified as finance leases, in the Other Liabilities line item on the Company’s Balance Sheet.
(4)    Operating metrics presented include assets owned entirely during the presented period. Data of assets acquired within a quarter are included in the following quarter.
(5)    In September 2021, the Company acquired a data center serving the Santa Clara, CA market with 95,712 max square feet and 71,784 leased square feet.
 DigitalBridge | Supplemental Financial Report
18
VI. Digital Operating

($ in thousands)
Digital Operating Adjusted EBITDA3Q212Q211Q214Q203Q202Q201Q20
Consolidated amount
Total revenues$194,966 $189,093 $189,202 $127,546 $98,549 $42,021 $45,167 
Property operating expenses(80,226)(77,140)(79,862)(47,224)(37,544)(18,055)(16,906)
Compensation and administrative expenses(29,766)(28,488)(25,947)(16,982)(11,863)(10,464)(12,656)
Investment, servicing and commission expenses(4,862)(5,255)(6,565)(3,329)(2,362)(696)(317)
Other gain/loss, net285 (349)(3)(200)(45)— — 
EBITDAre:$80,397 $77,861 $76,825 $59,811 $46,735 $12,806 $15,288 
Straight-line rent expenses and amortization of above- and below-market lease intangibles482 (98)(399)(2,607)(2,106)1,837 (338)
Compensation expense—equity-based308 308 308 728 148 296 — 
Installation services(4,058)576 880 429 (65)493 289 
Transaction, restructuring & integration costs4,042 2,999 4,670 1,155 420 1,021 748 
Other gain/loss, net(285)349 — 200 46 — — 
Digital Operating Adjusted EBITDA - Consolidated (1)
$80,886 $81,995 $82,284 $59,716 $45,178 $16,453 $15,987 
DBRG OP share of consolidated amount
Total revenues$33,771 $32,624 $32,741 $21,013 $15,600 $8,413 $9,042 
Property operating expenses(14,115)(13,690)(14,165)(7,911)(6,026)(3,615)(3,385)
Compensation and administrative expenses(5,615)(5,350)(4,888)(3,276)(2,310)(2,095)(2,534)
Investment, servicing and commission expenses(709)(819)(1,090)(433)(290)(139)(63)
Other gain/loss, net61 (69)— (26)(6)— — 
EBITDAre:$13,393 $12,696 $12,598 $9,367 $6,968 $2,564 $3,060 
Straight-line rent expenses and amortization of above- and below-market lease intangibles295 247 192 (250)(154)368 (68)
Compensation expense—equity-based62 62 62 146 30 59 — 
Installation services(812)115 176 86 (13)99 58 
Transaction, restructuring & integration costs759 587 920 245 77 204 150 
Other gain/loss, net(60)69 — 26 6 — — 
Digital Operating Adjusted EBITDA - DBRG OP share$13,637 $13,776 $13,948 $9,620 $6,914 $3,294 $3,200 



Notes:
(1)    For reconciliations of net income/(loss) to Adjusted EBITDA, please refer to the Appendices section of this presentation.
 DigitalBridge | Supplemental Financial Report
19
VI. Digital Operating

Capital Expenditures
Consolidated amount3Q21
Recurring capital expenditures7,387
Non-recurring capital expenditures42,841
Total capital expenditures50,228
Leasing Commissions1,233
DBRG OP share of consolidated amount
Recurring capital expenditures1,349
Non-recurring capital expenditures8,315
Total capital expenditures9,664
Leasing Commissions213

 DigitalBridge | Supplemental Financial Report
20
VII. Corporate and Other

($ in thousand, as of September 30, 2021)Consolidated amountDBRG OP share of
consolidated amount
Other
DBRG's GP Co-investment in DCP I and II Investments$230,972 $173,732 
Equity interests in digital investment vehicles and seed investments
272,134 165,902 
Other - digital assets net carrying value$503,106 $339,634 
Other - held for investment assets net equity carrying value (primarily BRSP shares)(1)
$330,809 $330,809 
Discontinued operations net carrying value(1)(2)
5,217,765 3,059,965 
Investment-level non-recourse financing(3)
3,257,912 2,087,005 
5.375% Exchangeable senior notes and TruPS293,722 293,722 
Other - discontinued operations assets net equity carrying value$1,666,131 $679,238 
Corporate Net Assets
Cash and cash equivalents, restricted cash and other assets$670,912 $670,912 
Accrued and other liabilities and dividends payable109,764 109,764 
Net assets$561,148 $561,148 














Notes:
(1)    The Company currently holds a 29% equity ownership in BRSP following a sale of 9.5 million shares in August 2021. Approximately 461,000 shares and 3.1 million units in BRSP are held by NRF Holdco which are included in assets held for disposition.
(2)    Includes all components related to real estate assets, including tangible real estate and lease-related intangibles and cash of the investments presented under discontinued operations.
(3)    Represents unpaid principal balance.
 DigitalBridge | Supplemental Financial Report
21





Appendices
 DigitalBridge | Supplemental Financial Report
22
Reconciliations of Digital IM FRE/Adjusted EBITDA and Digital Operating Adjusted EBITDA to Net Income (Loss)
($ in thousand)3Q212Q211Q214Q203Q202Q201Q20
Digital IM net income (loss)$39,272 $15,786 $7,663 $2,702 $3,799 $2,424 $2,529 
Adjustments:
Interest income2,250 — (1)(1)(2)— (30)
Investment and servicing expense— — 32 204 — — — 
Depreciation and amortization8,242 6,298 8,912 6,421 10,259 6,605 6,603 
Compensation expense—equity-based4,673 1,837 1,533 655 189 682 589 
Compensation expense—carried interest and incentive31,736 8,266 (33)994 912 — 
Administrative expenses—straight-line rent74 50 (2)(1)14 16 16 
Administrative expenses—placement agent fee3,069 6,959 59 1,202 — — — 
Incentive/performance fee income(1,313)(4,489)— — — — — 
Equity method (earnings) losses(59,196)(11,203)195 (6,744)(6,394)(277)(3)
Other (gain) loss, net(461)(119)(165)(102)(32)8 (47)
Income tax (benefit) expense3,089 2,236 7 (757)144 (151)393 
Digital IM FRE / Adjusted EBITDA$31,435 $25,621 $18,200 $4,573 $8,889 $9,307 $10,050 
3Q212Q211Q214Q203Q202Q201Q20
Digital Operating net income (loss) from continuing operations(71,822)(10,850)(64,260)(53,591)(38,795)(21,262)(18,415)
Adjustments:
Interest expense29,839 29,272 31,133 41,815 18,589 8,170 9,402 
Income tax (benefit) expense1,922 (66,788)(12,268)(6,967)(6,091)(2,673)(5,730)
Depreciation and amortization120,458 126,227 122,220 78,554 73,032 28,571 30,031 
EBITDAre:$80,397 $77,861 $76,825 $59,811 $46,735 $12,806 $15,288 
Straight-line rent expenses and amortization of above- and below-market lease intangibles482 (98)(399)(2,607)(2,106)1,837 (338)
Compensation expense—equity-based308 308 308 728 148 296 — 
Installation services(4,058)576 880 429 (65)493 289 
Transaction, restructuring & integration costs4,042 2,999 4,670 1,155 420 1,021 748 
Other gain/loss, net(285)349 — 200 46 — — 
Digital Operating Adjusted EBITDA$80,886 $81,995 $82,284 $59,716 $45,178 $16,453 $15,987 
 DigitalBridge | Supplemental Financial Report
23
Reconciliations of Core FFO and Adjusted EBITDA to Net Income (Loss)
($ in thousands)3Q212Q211Q214Q203Q202Q201Q20
Net income (loss) attributable to common stockholders$41,036 $(141,260)$(264,806)$(140,575)$(205,784)$(2,042,790)$(361,633)
Net income (loss) attributable to noncontrolling common interests in Operating Company4,311 (14,980)(27,896)(15,411)(22,651)(225,057)(39,601)
Net income (loss) attributable to common interests in Operating Company and common stockholders45,347 (156,240)(292,702)(155,986)(228,435)(2,267,847)(401,234)
Adjustments for FFO:
Real estate depreciation and amortization126,494 150,458 184,762 136,245 162,705 131,722 130,523 
Impairment of real estate(8,210)242,903 106,077 31,365 142,767 1,474,262 308,268 
Gain from sales of real estate(514)(2,969)(38,102)(26,566)(12,332)4,919 (7,933)
Less: Adjustments attributable to noncontrolling interests in investment entities(95,512)(162,021)(188,496)(79,874)(146,905)(329,601)(82,329)
FFO$67,605 $72,131 $(228,461)$(94,816)$(82,200)$(986,545)$(52,705)
Additional adjustments for Core FFO:
Adjustment to BRSP cash dividend9,478 (40,165)55,648 (22,999)(18,207)328,222 (86,213)
Equity-based compensation expense9,038 11,642 19,299 8,288 7,879 10,152 8,732 
Straight-line rent revenue and expense(1,925)(2,309)17,225 (6,403)(6,281)(5,240)(2,025)
Amortization of acquired above- and below-market lease values, net(172)(1,498)6,005 (1,229)(1,440)(531)(3,519)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts7,651 10,196 45,627 25,034 4,296 10,080 15,049 
Non-real estate fixed asset depreciation, amortization and impairment13,616 19,996 20,563 4,885 12,754 13,390 13,253 
Restructuring and transaction-related charges19,501 5,174 34,482 21,887 13,044 8,864 15,568 
Non-real estate (gains) losses, excluding realized gains or losses within the Digital Other segment11,319 (151,773)267,812 193,948 84,995 740,038 85,124 
Net unrealized carried interest(27,953)(6,485)189 (5,734)(5,170)801 9,230 
Preferred share redemption (gain) loss2,865 — — — — — — 
Deferred taxes and tax effect on certain of the foregoing adjustments1,663 (42,536)(17,657)(8,764)(7,917)(3,092)(6,062)
Less: Adjustments attributable to noncontrolling interests in investment entities12,438 146,687 (218,328)(143,262)(38,042)(182,607)3,017 
Less: Core FFO from discontinued operations(123,075)(25,874)(12,391)4,025 5,579 37,218 (31,128)
Core FFO$2,049 $(4,814)$(9,987)$(25,140)$(30,710)$(29,250)$(31,679)

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Reconciliations of Core FFO and Adjusted EBITDA to Net Income (Loss)
($ in thousands)3Q212Q211Q214Q203Q202Q201Q20
Core FFO$2,049 $(4,814)$(9,987)$(25,140)$(30,710)$(29,250)$(31,679)
Less: Earnings of equity method investments(5,784)(6,216)(4,440)— — — (13,320)
Plus: Preferred dividends17,456 18,516 18,516 18,516 18,516 18,516 19,474 
Plus: Core interest expense(1)
14,160 11,834 12,387 11,972 12,234 12,625 10,393 
Plus: Core tax expense(1)
(12,638)(8,224)(5,613)(9,974)(5,310)(6,536)555 
Plus: Non pro-rata allocation of income (loss) to NCI231 223 201 201 (751)— — 
Plus: Placement fees2,102 4,767 40 823 — — — 
Less: Net realized carried interest, incentive fees, and other adjustments to Fee Related Earnings(7)(1,565)11 140 248 (549)(173)
Plus: Digital Operating installation services, transaction, investment and servicing costs53 856 1,423 1,018 254 (42)162 
Adjusted EBITDA (DBRG OP Share)$17,622 $15,377 $12,538 $(2,444)$(5,519)$(5,236)$(14,588)
























Notes:
(1)    Excludes components that are included in adjustments for Core FFO.
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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.

Recurring Capital Expenditures
Represents capitalized expenditures including recurring maintenance repairs and improvements necessary to preserve the value of and maintain the functionality of the property, which are not expected to generate incremental revenue.

Non-recurring 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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