EX-99.2 3 ex9922021q4supp.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, the duration and severity of the current novel coronavirus (COVID-19) pandemic, the impact of the COVID-19 pandemic on the global market, economic and environmental conditions generally and in the digital and communications technology 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, as well as the increased risk of claims, litigation and regulatory proceedings and uncertainty that may adversely affect the Company; our status as an owner, operator and investment manager of digital infrastructure and real estate and our ability to manage any related conflicts of interest; our ability to obtain and maintain financing arrangements, including securitizations, on favorable or comparable terms or at all; the impact of initiatives related to our digital transformation, including the strategic investment by Wafra and the formation of certain other investment management platforms, on our growth and earnings profile and our REIT status; 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 impact to our business operations and financial condition of realized or anticipated compensation and administrative savings through cost reduction programs; whether the sale of our Wellness Infrastructure business currently under contract will close on time or at all; whether we will be able to effectively deploy the capital we have committed to capital expenditures and greenfield investments; our ability to redeploy the proceeds received from the sale of our non-digital 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 Brightspire Capital, Inc. (NYSE: BRSP)) to execute their business strategies; the trading price of BRSP shares and its impact on the carrying value of the Company's investment in BRSP, including whether the Company will recognize further other-than-temporary impairment on its 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 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; 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 the impact of legislative, regulatory and competitive changes; whether we will elect to 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, June 30,2021, and September 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 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. The Wellness infrastructure sale is anticipated to close by end of February 2022 and is subject to customary closing conditions. We can provide no assurance that it will close on the timing anticipated or at all.


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 National Association of Real Estate Investment Trusts, which defines FFO as net income or loss calculated in accordance with GAAP, excluding (i) real estate-related depreciation and amortization; (ii) impairment of depreciable real estate and impairment of investments in unconsolidated ventures directly attributable to decrease in value of depreciable real estate held by the venture; (iii) gain from sale of depreciable real estate; (iv) gain or loss from a change in control in connection with interests in depreciable real estate or in-substance real estate; and (v) adjustments to reflect the Company's share of FFO from investments in unconsolidated ventures. Included in FFO are gains and losses from sales of assets which are not depreciable real estate such as loans receivable, equity investments, 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 digital assets within the Corporate and 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 do not capture changes in the value of the Company’s properties that resulted from use or market conditions, which have 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 flows from operating activities computed in accordance with GAAP. Additionally, Core FFO and AFFO exclude 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 non-cash 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 DBP I, DBP 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 DBP 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 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 and a substantial majority of the Company's other equity and debt investments and its non-digital investment management business, the Company is now in the final stage of monetizing the remainder of its non-digital businesses to complete its digital transformation. This includes the Company's Wellness Infrastructure business, 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, AFFO and Adjusted EBITDA to Net Income (Loss)24-25
Definitions26
 DigitalBridge | Supplemental Financial Report
5
Ia. Summary Financial Metrics
($ and shares in thousands, except per share data and as noted) (Unaudited)
12/31/2021 - 4Q219/30/2021 - 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$(20,686)$41,036$(141,260)$(264,806)$(140,575)$(205,784)$(2,042,790)$(361,633)
Net income (loss) attributable to common stockholders per basic share(0.04)0.08(0.29)(0.56)(0.30)(0.44)(4.33)(0.76)
Core FFO(4,255)2,049(4,814)(9,987)(25,140)(30,710)(29,250)(31,679)
Core FFO per basic share(0.01)—(0.01)(0.02)(0.05)(0.06)(0.05)(0.06)
AFFO(5,352)700(5,578)(10,213)(25,373)(31,010)(29,470)(31,954)
AFFO per basic share(0.01)—(0.01)(0.02)(0.05)(0.06)(0.05)(0.06)
Adjusted EBITDA20,95717,62215,37712,538(2,444)(5,519)(5,236)(14,588)
Balance Sheet, Capitalization and Trading Statistics
Total consolidated assets$14,197,816$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 assets6,233,1586,086,2596,929,3907,324,78410,119,83410,087,80810,622,32213,149,318
Total consolidated debt(1)
4,922,7224,621,2403,919,2557,023,2267,931,4587,165,8599,612,5259,862,223
 DBRG OP share of consolidated debt(1)
1,366,5281,391,9431,073,6093,392,6203,853,6423,683,6607,147,3567,365,939
Basic shares and OP units outstanding(2)
620,553547,162545,815538,908535,217535,473535,201534,113
Liquidation preference of perpetual preferred equity883,500947,5001,033,7501,033,7501,033,7501,033,7501,033,7501,033,750
Insider ownership of shares and OP units3.5%4.0%4.0%9.4%9.4%10.0%9.9%9.6%
Digital Assets Under Management ("AUM") (in billions)$45.3$37.8$34.9$32.0$30.0$23.3$21.6$20.6
Digital Fee Earning Equity Under Management ("FEEUM") (in billions)$18.3$16.5$14.5$12.9$12.8$8.6$7.7$7.7









Notes:
(1)    Represents principal balance and excludes debt issuance costs, discounts and premiums.
(2)     Includes common shares and OP units outstanding, vested and unvested restricted stock and vested director share units. Based on the performance of the Company's class A common stock price during the three months ended December 31, 2021 and the results of certain Company-specific metrics as of December 31, 2021, excluded are class A common shares that are contingently issuable in relation to performance stock units and unvested shares related to LTIP units of 10.0 million and net settlement for the exercise of warrants held by Wafra of 12.0 million. Also excluded are class A shares issuable in relation to an assumed exchange of the Company's remaining 5.75% senior notes of 60.3 million.
 DigitalBridge | Supplemental Financial Report
6
IIa. Financial Results - Balance Sheet

($ in thousands, except per share data) (unaudited)As of December 31, 2021
ConsolidatedNon Controlling Interests' Share
Assets
Cash and cash equivalents$1,602,102 $386,585 
Restricted cash99,121 78,585 
Real estate, net4,972,284 4,190,239 
Loans receivable173,921 3,458 
Equity and debt investments935,153 278,301 
Goodwill761,368 456,477 
Deferred leasing costs and intangible assets, net1,187,627 1,020,358 
Assets held for disposition3,676,615 1,012,933 
Other assets740,395 524,837 
Due from affiliates49,230 12,885 
Total assets$14,197,816 $7,964,658 
Liabilities
Debt, net$4,860,402 $3,516,134 
Accrued and other liabilities928,042 598,863 
Intangible liabilities, net33,301 28,292 
Liabilities related to assets held for disposition3,088,699 808,973 
Dividends and distributions payable15,759 — 
Total liabilities8,926,203 4,952,262 
Commitments and contingencies
Redeemable noncontrolling interests359,223 359,223 
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value per share; $883,500 liquidation preference; 250,000 shares authorized; 35,340 shares issued and outstanding854,232 — 
Common stock, $0.01 par value per share
Class A, 949,000 shares authorized; 568,577 shares issued and outstanding5,685 — 
Class B, 1,000 shares authorized; 666 shares issued and outstanding7 — 
Additional paid-in capital7,820,807 — 
Accumulated deficit(6,576,180)— 
Accumulated other comprehensive income42,383 — 
Total stockholders’ equity2,146,934 — 
Noncontrolling interests in investment entities2,653,173 2,653,173 
Noncontrolling interests in Operating Company112,283 — 
Total equity4,912,390 2,653,173 
Total liabilities, redeemable noncontrolling interests and equity$14,197,816 $7,964,658 
 DigitalBridge | Supplemental Financial Report
7
IIb. Financial Results - Consolidated Segment Operating Results
Three Months Ended December 31, 2021
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $189,909 $— $— $189,909 
Interest income3 29 3,500 — 3,532 
Fee income57,652 — (1,652)— 56,000 
Other income2,238 — 4,178 — 6,416 
 Total revenues59,893 189,938 6,026 — 255,857 
Expenses
Property operating expense— 78,950 — — 78,950 
Interest expense2,516 35,144 31,676 — 69,336 
Investment expense1,953 5,141 1,136 — 8,230 
Transaction-related costs— 12 3,151 — 3,163 
Depreciation and amortization5,928 126,436 491 — 132,855 
Compensation expense
Cash and equity-based compensation20,802 20,181 12,084 — 53,067 
Carried interest and incentive fee compensation25,921 — — — 25,921 
Administrative expenses4,387 8,698 21,171 — 34,256 
 Total expenses61,507 274,562 69,709 — 405,778 
Other income (loss)
Other gain (loss), net52 (1,226)11,496 — 10,322 
Equity method earnings (loss)1,730 — 83,489 — 85,219 
Equity method earnings (loss) - carried interest29,878 — — — 29,878 
Income (loss) before income taxes30,046 (85,850)31,302 — (24,502)
Income tax benefit (expense)(1,852)1,941 (8,959)— (8,870)
Income (loss) from continuing operations28,194 (83,909)22,343 — (33,372)
Income (loss) from discontinued operations— — — (9,493)(9,493)
Net income (loss)28,194 (83,909)22,343 (9,493)(42,865)
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests10,585 — 8,349 — 18,934 
Investment entities372 (68,480)2,155 8,520 (57,433)
Operating Company1,555 (1,357)(553)(1,591)(1,946)
Net income (loss) attributable to DigitalBridge Group, Inc.15,682 (14,072)12,392 (16,422)(2,420)
Preferred stock redemption— — 2,127 — 2,127 
Preferred stock dividends— — 16,139 — 16,139 
Net income (loss) attributable to common stockholders$15,682 $(14,072)$(5,874)$(16,422)$(20,686)



 DigitalBridge | Supplemental Financial Report
8
IIc. Financial Results - Noncontrolling Interests’ Share Segment Operating Results
Three Months Ended December 31, 2021
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $157,451 $— $— $157,451 
Interest income— 23 16 — 39 
Fee income19,256 — — — 19,256 
Other income700 — 529 — 1,229 
 Total revenues19,956 157,474 545 — 177,975 
Expenses
Property operating expense— 65,199 — — 65,199 
Interest expense— 28,608 74 — 28,682 
Investment expense615 4,405 6 — 5,026 
Depreciation and amortization1,864 105,177 — — 107,041 
Compensation expense
Cash and equity-based compensation4,942 16,144 — — 21,086 
Carried interest and incentive fee compensation8,533 — — — 8,533 
Administrative expenses1,076 6,912 377 — 8,365 
 Total expenses17,030 226,445 457 — 243,932 
Other income (loss)
Other gain (loss), net2 (988)8,260 — 7,274 
Equity method earnings (loss)643 — 2,156 — 2,799 
Equity method earnings (loss) - carried interest13,024 — — — 13,024 
Income (loss) before income taxes16,595 (69,959)10,504 — (42,860)
Income tax benefit (expense)(43)1,552 — — 1,509 
Net income (loss)16,552 (68,407)10,504 — (41,351)
Income (loss) from discontinued operations— — — 8,520 8,520 
Non-pro rata allocation of income (loss) to NCI(5,595)(73)— — (5,668)
Net income (loss) attributable to noncontrolling interests$10,957 $(68,480)$10,504 $8,520 $(38,499)

 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 December 31, 2021; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Net income (loss) attributable to common stockholders$15,682 $(14,072)$(5,874)$(16,422)$(20,686)$— $(20,686)
Net income (loss) attributable to noncontrolling common interests in Operating Company1,555 (1,357)(553)(1,591)(1,946)— (1,946)
Net income (loss) attributable to common interests in Operating Company and common stockholders17,237 (15,429)(6,427)(18,013)(22,632)— (22,632)
Adjustments for FFO:
Real estate depreciation and amortization— 20,216 2,106 8,225 30,547 103,266 133,813 
Impairment of real estate— — — (27,193)(27,193)(13,539)(40,732)
Gain from sales of real estate— — — (197)(197)— (197)
Less: Adjustments attributable to noncontrolling interests in investment entities— — — — — (89,727)(89,727)
FFO$17,237 $4,787 $(4,321)$(37,178)$(19,475)$— $(19,475)
Additional adjustments for Core FFO:
Adjustment to BRSP cash dividend— — (26,422)(1,821)(28,243)— (28,243)
Equity-based compensation expense1,596 384 3,837 11,651 17,468 1,948 19,416 
Straight-line rent revenue and expense51 158 (1,195)(359)(1,345)(641)(1,986)
Amortization of acquired above- and below-market lease values, net— 60 — (566)(506)173 (333)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts309 1,030 25,652 4,016 31,007 5,678 36,685 
Non-real estate fixed asset depreciation, amortization and impairment40 1,043 491 1,630 3,204 10,120 13,324 
Restructuring and transaction-related charges(1)
2,354 16 17,379 10,069 29,818 159 29,977 
Non-real estate (gains) losses, excluding realized gains or losses of digital assets within the Corporate and Other segment(1,119)238 (57,032)1,091 (56,822)4,211 (52,611)
Net unrealized carried interest(2,702)— — — (2,702)(4,673)(7,375)
Preferred share redemption loss— — 2,127 — 2,127 — 2,127 
Deferred taxes and tax effect on certain of the foregoing adjustments(259)(389)10,395 — 9,747 (1,552)8,195 
Less: Adjustments attributable to noncontrolling interests in investment entities— — — — — (15,423)(15,423)
Less: Core FFO from discontinued operations— — — 11,467 11,467 — 11,467 
Core FFO$17,507 $7,327 $(29,089)$— $(4,255)$— $(4,255)
Additional adjustments for AFFO:
Recurring capital expenditures— (1,097)— — (1,097)— (1,097)
AFFO$17,507 $6,230 $(29,089)$— $(5,352)$— $(5,352)



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.
 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 December 31, 2021; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Core FFO$17,507 $7,327 $(29,089)$— $(4,255)
Less: Earnings of equity method investments(18)— (6,423)— (6,441)
Plus: Preferred dividends— — 16,139 — 16,139 
Plus: Core interest expense(1)
2,193 5,506 6,076 — 13,775 
Plus: Core tax expense(1)
2,068 — (1,437)— 631 
Plus: Non pro-rata allocation of income (loss) to NCI231 — — — 231 
Plus: Placement fees603 — — — 603 
Less: Net realized carried interest, incentive fees, and other adjustments to Fee Related Earnings(1,092)— — — (1,092)
Plus: Digital Operating installation services, transaction, investment and servicing costs— 1,366 — — 1,366 
Adjusted EBITDA (DBRG OP Share)$21,492 $14,199 $(14,734)$— $20,957 




























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 December 31, 2021)
Consolidated debt
Payments due by period(1)
20222023202420252026 and afterTotal
Investment-level debt:
Digital Operating - Fixed$6,230 $219,793 $600,753 $700,000 $2,119,690 $3,646,466 
Digital Operating - Variable— 9,000 15,750 446,267 100,000 $571,017 
Total Digital Operating6,230 228,793 616,503 1,146,267 2,219,690 4,217,483 
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — — — 
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 
Other (2)
— 66,500 — — — 66,500 
Convertible/exchangeable senior notes— 200,000 — 138,739 — 338,739 
Total consolidated debt (3)
$6,230 $495,293 $616,503 $1,285,006 $2,519,690 $4,922,722 
Fixed/VariableWA Interest RateWA Remaining Term
DBRG OP share of debt
Payments due by period(1)
20222023202420252026 and afterTotal
Investment-level debt:
Digital Operating - Fixed$818 $28,859 $78,879 $91,910 $346,505 $546,971 Fixed2.4%4.1
Digital Operating - Variable— 1,802 3,153 89,343 20,020 $114,318 Variable5.7%4.0
Total Digital Operating818 30,661 82,032 181,253 366,525 661,289 3.0%4.1
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — — — VariableN/A4.7
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 Fixed3.9%4.7
Other (2)
— 66,500 — — — 66,500 Variable1.3%1.6
Convertible/exchangeable senior notes— 200,000 — 138,739 — 338,739 Fixed5.3%2.2
Total DBRG share of debt (3)
$818 $297,161 $82,032 $319,992 $666,525 $1,366,528 




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 credit facility to fund the acquisition of loans that are warehoused for a future securitization vehicle. At December 31, 2021, $83.5 million was available to be drawn from this facility.
(3)    Excluded from above presentation is debt of assets which are presented under discontinued operations.
 DigitalBridge | Supplemental Financial Report
12
IIIb. Capitalization - DBRG Series 2021-1
($ in thousands, as of December 31, 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)(1)
September 25, 2026
Financial covenants:Covenant level
Debt Service Coverage Ratio(2)
Minimum 1.75x
Loan to Value Ratio(3)
Less than 35.0%
Investment Management Expense Ratio(4)
Less than 60.0%
Company status: As of February 23, 2022, DBRG is meeting all required covenant threshold levels.










Notes:
(1)    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.
(2)    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.
(3)    100% cash sweep until LTV is less than 35%.
(4)    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 December 31, 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$138,739 July 15, 20255.75% fixed$2.30 434.7826 60,321 
5.0% Convertible senior notes200,000 April 15, 20235.00% fixed15.76 63.4700 12,694 
Total convertible debt$338,739 


Perpetual preferred stock
DescriptionLiquidation
preference		Shares outstanding (In thousands)Callable period
Series H 7.125% cumulative redeemable perpetual preferred stock223,500 8,940 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$883,500 35,340 



















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.
 DigitalBridge | Supplemental Financial Report
14
IIId. Capitalization - Organization Structure



legalstructure4q21a.jpg
 DigitalBridge | Supplemental Financial Report
15
IV. Assets Under Management
($ in millions)DBRG OP Share
Segment12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Digital Investment Management$43,619 $36,337 $33,551 $30,711 $28,577 $22,237 $21,015 $20,107 
Digital Operating1,233 1,157 1,093 1,073 1,087 724 300 290 
Corporate and Other Assets(1)
6,427 11,880 13,790 14,397 22,300 23,853 24,392 27,715 
Total AUM$51,279 $49,374 $48,434 $46,181 $51,964 $46,814 $45,707 $48,112 




































Notes:
(1)    December 31, 2021 includes $5.4 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 Share12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
DigitalBridge Partners I$6,180 $6,180 $6,003 $5,931 $6,089 $5,686 $5,665 $5,526 
DigitalBridge Partners II10,430 8,005 6,431 4,775 3,241 — — — 
Separately Capitalized Portfolio Companies6,882 10,147 10,254 9,893 8,947 8,273 9,556 8,990 
Co-Investment (Sidecar) Capital19,311 11,417 10,273 9,591 9,857 8,181 5,692 5,477 
Liquid Strategies816 588 590 521 443 97 102 114 
Digital IM AUM$43,619 $36,337 $33,551 $30,711 $28,577 $22,237 $21,015 $20,107 
FEEUM DBRG OP Share12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
DigitalBridge Partners I$3,215 $3,040 $3,081 $3,179 $3,756 $3,756 $3,756 $3,756 
DigitalBridge Partners II8,001 7,146 5,519 3,964 3,217 — — — 
Separately Capitalized Portfolio Companies2,148 2,576 2,576 2,534 2,777 2,603 3,019 3,017 
Co-Investment (Sidecar) Capital4,105 3,184 2,817 2,744 2,655 2,042 841 841 
Liquid Strategies786 510 512 432 437 153 127 128 
Digital IM FEEUM (12/31/21 Annual IM Fee Rate = 0.96%)$18,255 $16,456 $14,505 $12,853 $12,842 $8,554 $7,743 $7,742 
($ in thousands)
Digital IM FRE / Adjusted EBITDA4Q213Q212Q211Q214Q203Q202Q201Q20
Fee income$43,145 $37,751 $33,304 $28,917 $24,191 $19,172 $18,987 $18,068 
Fee income, other (1)
8,787 12,809 8,996 2,148 862 876 1,306 876 
Other income273 483 84 54 183 87 552 197 
Compensation expense—cash(16,275)(16,933)(14,426)(10,852)(18,353)(9,414)(9,208)(6,964)
Administrative expenses(3,446)(2,675)(2,337)(2,067)(2,310)(1,832)(2,330)(2,127)
Digital IM FRE / Adjusted EBITDA (2)
$32,484 $31,435 $25,621 $18,200 $4,573 $8,889 $9,307 $10,050 
DBRG OP share of Digital IM FRE / Adjusted EBITDA(3)
$21,492 $20,736 $17,449 $11,645 $2,051 $6,306 $9,307 $10,050 




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 reconciliations of net income / (loss) to FRE / Adjusted EBITDA, please refer to the Appendices section of this presentation.
(3)    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 Overview12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/20
Consolidated amount
Asset(1)
$7,624 $7,211 $6,736 $6,633 $6,248 $4,925 $1,496 $1,448 
Debt(2)(3)
(4,217)(3,817)(3,374)(3,369)(3,227)(2,546)(515)(516)
Net Carrying Value - Consolidated$3,407 $3,394 $3,362 $3,264 $3,021 $2,379 $981 $932 
DBRG OP share of consolidated amount
Asset(1)
$1,233 $1,157 $1,093 $1,073 $1,087 $724 $300 $290 
Debt(2)(3)
(661)(588)(529)(528)(536)(355)(103)(103)
Net Carrying Value - DBRG OP share$572 $569 $564 $545 $551 $369 $197 $187 
DBRG net carrying value % interest17 %17 %17 %17 %18 %16 %20 %20 %
($ in millions, unless otherwise noted)
Operating Metrics (4)
12/31/2021 - 4Q219/30/2021 - 3Q216/30/2021 - 2Q213/31/2021 - 1Q2112/31/2020 - 4Q209/30/2020- 3Q206/30/2020 - 2Q203/31/2020 - 1Q20
Number of Data Centers7876767632322019
Max Critical I.T. Square Feet1,949,1441,819,9461,809,9431,791,7811,138,0481,137,866456,649410,974
Leased Square Feet1,552,5171,467,4201,439,2911,423,322967,879945,640316,697301,791
% Utilization Rate79.7%80.6%79.5%79.4%85.0%83.1%69.4%73.4%
MRR (Annualized)$790.4$773.1$750.2$743.0$442.0$374.0$171.4$171.2
Bookings (Annualized)$15.3$16.6$16.4$23.0$6.0$9.4$6.6$7.4
Quarterly Churn (% of Prior Quarter MRR)1.9%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 fourth quarter 2021, in addition to debt presented, the Digital Operating segment has $143 million consolidated, or $28 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.
 DigitalBridge | Supplemental Financial Report
18
VI. Digital Operating

($ in thousands)
Digital Operating Adjusted EBITDA4Q213Q212Q211Q214Q203Q202Q201Q20
Consolidated amount
Total revenues$189,938 $194,966 $189,093 $189,202 $127,546 $98,549 $42,021 $45,167 
Property operating expenses(78,950)(80,226)(77,140)(79,862)(47,224)(37,544)(18,055)(16,906)
Compensation and administrative expenses(28,879)(29,766)(28,488)(25,947)(16,982)(11,863)(10,464)(12,656)
Investment, servicing and commission expenses(5,153)(4,862)(5,255)(6,565)(3,329)(2,362)(696)(317)
Other gain/loss, net(1,226)285 (349)(3)(200)(45)— — 
EBITDAre:$75,730 $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 intangibles370 482 (98)(399)(2,607)(2,106)1,837 (338)
Compensation expense—equity-based1,918 308 308 308 728 148 296 — 
Installation services2,097 (4,058)576 880 429 (65)493 289 
Transaction, restructuring & integration costs3,188 4,042 2,999 4,670 1,155 420 1,021 748 
Other gain/loss, net1,226 (285)349 — 200 46 — — 
Digital Operating Adjusted EBITDA - Consolidated (1)
$84,529 $80,886 $81,995 $82,284 $59,716 $45,178 $16,453 $15,987 
DBRG OP share of consolidated amount
Total revenues$32,464 $33,771 $32,624 $32,741 $21,013 $15,600 $8,413 $9,042 
Property operating expenses(13,740)(14,115)(13,690)(14,165)(7,911)(6,026)(3,615)(3,385)
Compensation and administrative expenses(5,457)(5,615)(5,350)(4,888)(3,276)(2,310)(2,095)(2,534)
Investment, servicing and commission expenses(732)(709)(819)(1,090)(433)(290)(139)(63)
Other gain/loss, net(238)61 (69)(26)(6)— — 
EBITDAre:$12,297 $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 intangibles244 295 247 192 (250)(154)368 (68)
Compensation expense—equity-based384 62 62 62 146 30 59 — 
Installation services419 (812)115 176 86 (13)99 58 
Transaction, restructuring & integration costs618 759 587 920 245 77 204 150 
Other gain/loss, net237 (60)69 26 6 — — 
Digital Operating Adjusted EBITDA - DBRG OP share$14,199 $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 amount4Q213Q212Q211Q214Q203Q202Q201Q20
Recurring capital expenditures$6,410$7,387$4,423$1,220$1,416$1,551$1,101$1,375
Non-recurring capital expenditures94,01842,84140,46034,65237,53420,42319,73813,254
Total capital expenditures$100,428$50,228$44,883$35,872$38,950$21,974$20,839$14,629
Leasing Commissions$1,535$1,233$5,024$775$545$539$1,831$475
DBRG OP share of consolidated amount
Recurring capital expenditures$1,097$1,349$764$226$233$300$220$275
Non-recurring capital expenditures18,0908,3157,5386,5326,7703,7023,9522,654
Total capital expenditures$19,187$9,664$8,302$6,758$7,003$4,002$4,172$2,929
Leasing Commissions$307$213$756$155$109$108$366$95

 DigitalBridge | Supplemental Financial Report
20
VII. Corporate and Other

($ in thousands, as of December 31, 2021)Consolidated amountDBRG OP share of
consolidated amount
Other
DBRG's GP Co-investment in DBP I and II Investments$242,856 $183,612 
Equity interests in digital investment vehicles, seed investments and CLOs
290,113 174,566 
Other - digital assets net carrying value$532,969 $358,178 
Other - held for investment assets net equity carrying value (primarily BRSP shares)(1)
$384,180 $384,180 
Discontinued operations net carrying value(1)(2)
3,576,328 2,582,288 
Investment-level non-recourse financing(3)
2,668,326 1,913,764 
5.375% Exchangeable senior notes and TruPS293,722 293,722 
Other - discontinued operations assets net equity carrying value$614,280 $374,802 
Corporate Net Assets
Cash and cash equivalents, restricted cash and other assets$981,748 $981,748 
Accrued and other liabilities and dividends payable112,509 112,509 
Net assets$869,239 $869,239 














Notes:
(1)    The Company currently holds a 27% equity ownership, or 35.0 million shares, in BRSP. In addition, 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)4Q213Q212Q211Q214Q203Q202Q201Q20
Digital IM net income (loss)$28,194 $39,272 $15,786 $7,663 $2,702 $3,799 $2,424 $2,529 
Adjustments:
Interest expense (income)2,499 2,250 — (1)(1)(2)— (30)
Investment and servicing expense (income)(12)— — 32 204 — — — 
Depreciation and amortization5,928 8,242 6,298 8,912 6,421 10,259 6,605 6,603 
Compensation expense—equity-based4,527 4,673 1,837 1,533 655 189 682 589 
Compensation expense—carried interest and incentive25,921 31,736 8,266 (33)994 912 — — 
Administrative expenses—straight-line rent75 74 50 (2)(1)14 16 16 
Administrative expenses—placement agent fee880 3,069 6,959 59 1,202 — — — 
Incentive/performance fee income(5,720)(1,313)(4,489)— — — — — 
Equity method (earnings) losses(31,608)(59,196)(11,203)195 (6,744)(6,394)(277)(3)
Other (gain) loss, net(52)(461)(119)(165)(102)(32)8 (47)
Income tax (benefit) expense1,852 3,089 2,236 7 (757)144 (151)393 
Digital IM FRE / Adjusted EBITDA$32,484 $31,435 $25,621 $18,200 $4,573 $8,889 $9,307 $10,050 
4Q213Q212Q211Q214Q203Q202Q201Q20
Digital Operating net income (loss) from continuing operations(83,909)(71,822)(10,850)(64,260)(53,591)(38,795)(21,262)(18,415)
Adjustments:
Interest expense35,144 29,839 29,272 31,133 41,815 18,589 8,170 9,402 
Income tax (benefit) expense(1,941)1,922 (66,788)(12,268)(6,967)(6,091)(2,673)(5,730)
Depreciation and amortization126,436 120,458 126,227 122,220 78,554 73,032 28,571 30,031 
EBITDAre:$75,730 $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 intangibles370 482 (98)(399)(2,607)(2,106)1,837 (338)
Compensation expense—equity-based1,918 308 308 308 728 148 296 — 
Installation services2,097 (4,058)576 880 429 (65)493 289 
Transaction, restructuring & integration costs3,188 4,042 2,999 4,670 1,155 420 1,021 748 
Other gain/loss, net1,226 (285)349 — 200 46 — — 
Digital Operating Adjusted EBITDA$84,529 $80,886 $81,995 $82,284 $59,716 $45,178 $16,453 $15,987 
 DigitalBridge | Supplemental Financial Report
23
Reconciliations of Core FFO, AFFO and Adjusted EBITDA to Net Income (Loss)
($ in thousands)4Q213Q212Q211Q214Q203Q202Q201Q20
Net income (loss) attributable to common stockholders$(20,686)$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 Company(1,946)4,311 (14,980)(27,896)(15,411)(22,651)(225,057)(39,601)
Net income (loss) attributable to common interests in Operating Company and common stockholders(22,632)45,347 (156,240)(292,702)(155,986)(228,435)(2,267,847)(401,234)
Adjustments for FFO:
Real estate depreciation and amortization133,813 126,494 150,458 184,762 136,245 162,705 131,722 130,523 
Impairment of real estate(40,732)(8,210)242,903 106,077 31,365 142,767 1,474,262 308,268 
Gain from sales of real estate(197)(514)(2,969)(38,102)(26,566)(12,332)4,919 (7,933)
Less: Adjustments attributable to noncontrolling interests in investment entities(89,727)(95,512)(162,021)(188,496)(79,874)(146,905)(329,601)(82,329)
FFO$(19,475)$67,605 $72,131 $(228,461)$(94,816)$(82,200)$(986,545)$(52,705)
Additional adjustments for Core FFO:
Adjustment to BRSP cash dividend(28,243)9,478 (40,165)55,648 (22,999)(18,207)328,222 (86,213)
Equity-based compensation expense19,416 9,038 11,642 19,299 8,288 7,879 10,152 8,732 
Straight-line rent revenue and expense(1,986)(1,925)(2,309)17,225 (6,403)(6,281)(5,240)(2,025)
Amortization of acquired above- and below-market lease values, net(333)(172)(1,498)6,005 (1,229)(1,440)(531)(3,519)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts36,685 7,651 10,196 45,627 25,034 4,296 10,080 15,049 
Non-real estate fixed asset depreciation, amortization and impairment13,324 13,616 19,996 20,563 4,885 12,754 13,390 13,253 
Restructuring and transaction-related charges29,977 19,501 5,174 34,482 21,887 13,044 8,864 15,568 
Non-real estate (gains) losses, excluding realized gains or losses of digital assets within the Corporate and Other segment(52,611)11,319 (151,773)267,812 193,948 84,995 740,038 85,124 
Net unrealized carried interest(7,375)(27,953)(6,485)189 (5,734)(5,170)801 9,230 
Preferred share redemption (gain) loss2,127 2,865 — — — — — — 
Deferred taxes and tax effect on certain of the foregoing adjustments8,195 1,663 (42,536)(17,657)(8,764)(7,917)(3,092)(6,062)
Less: Adjustments attributable to noncontrolling interests in investment entities(15,423)12,438 146,687 (218,328)(143,262)(38,042)(182,607)3,017 
Less: Core FFO from discontinued operations11,467 (123,075)(25,874)(12,391)4,025 5,579 37,218 (31,128)
Core FFO$(4,255)$2,049 $(4,814)$(9,987)$(25,140)$(30,710)$(29,250)$(31,679)
Recurring capital expenditures$(1,097)$(1,349)$(764)$(226)$(233)$(300)$(220)$(275)
AFFO$(5,352)$700 $(5,578)$(10,213)$(25,373)$(31,010)$(29,470)$(31,954)

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Reconciliations of Core FFO, AFFO and Adjusted EBITDA to Net Income (Loss)
($ in thousands)4Q213Q212Q211Q214Q203Q202Q201Q20
Core FFO$(4,255)$2,049 $(4,814)$(9,987)$(25,140)$(30,710)$(29,250)$(31,679)
Less: Earnings of equity method investments(6,441)(5,784)(6,216)(4,440)— — — (13,320)
Plus: Preferred dividends16,139 17,456 18,516 18,516 18,516 18,516 18,516 19,474 
Plus: Core interest expense(1)
13,775 14,160 11,834 12,387 11,972 12,234 12,625 10,393 
Plus: Core tax expense(1)
631 (12,638)(8,224)(5,613)(9,974)(5,310)(6,536)555 
Plus: Non pro-rata allocation of income (loss) to NCI231 231 223 201 201 (751)— — 
Plus: Placement fees603 2,102 4,767 40 823 — — — 
Less: Net realized carried interest, incentive fees, and other adjustments to Fee Related Earnings(1,092)(7)(1,565)11 140 248 (549)(173)
Plus: Digital Operating installation services, transaction, investment and servicing costs1,366 53 856 1,423 1,018 254 (42)162 
Adjusted EBITDA (DBRG OP Share)$20,957 $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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