EX-99.2 3 ex992-q12023supplemental.htm EX-99.2 Document

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

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

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

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

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

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

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

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

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

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

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

This presentation includes supplemental financial information for the following segments:

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

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

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


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

Table of Contents
Page
I.
Financial Overview
a.
6
b.
7
II.
Financial Results
a.
Balance Sheet Consolidated & Noncontrolling Interests’ Share
8-9
b.
10
c.
11
d.
12-13
III.
Capitalization
a.
Debt Summary
14
b.
Secured Fund Fee Revenue Notes and Variable Funding Notes
15
c.
Convertible/Exchangeable Notes & Perpetual Preferred Stock
16
IV.
Operating
17-18
V.
Other
19
VI.
Cash G&A Expense
20
Appendices
Reconciliations of IM FRE and Operating Adjusted EBITDA to Net Income (Loss)22
Reconciliations of DE and Adjusted EBITDA and to Net Income (Loss)23-24
Definitions25
 DigitalBridge | Supplemental Financial Report
5
Ia. Summary Financial Metrics
($ and shares in thousands, except per share data and as noted) (Unaudited)3/31/2023 - 1Q2312/31/2022 - 4Q229/30/2022 - 3Q226/30/2022 - 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q216/30/2021 - 2Q21
Financial Data
Total Company
Net income (loss) attributable to common stockholders$(212,473)$(19,356)$(63,273)$(37,321)$(262,316)$(20,686)$41,036$(141,260)
Net income (loss) attributable to common stockholders per basic share(1)
(1.34)(0.12)(0.39)(0.24)(1.84)(0.16)0.33(1.18)
Distributable Earnings ("DE")(3,365)(18,393)32,335603(5,064)(11,636)(4,886)(11,794)
DE per basic share(1)
(0.02)(0.11)0.18—(0.03)(0.08)(0.04)(0.09)
Adjusted EBITDA25,62627,75929,09730,92820,49420,95717,62215,377
Investment Management
Total Assets Under Management ("AUM") (in billions)(2)
$69.3$52.8$50.3$47.9$46.6$45.3$37.8$34.9
Fee Earning Equity Under Management ("FEEUM") (in billions)$27.7$22.2$20.5$19.0$18.8$18.3$16.5$14.5
IM management fee income - DBRG OP share59,22945,27242,03936,94829,92138,39635,72433,348
IM FRE - DBRG OP share34,51224,22821,49820,75916,98923,75722,92219,470
IM FRE margin %58.3%53.5%51.1%56.2%56.8%61.9%64.2%58.4%
Net realized carried interest and incentive fees24312,37720,258—(1,172)1,09271,565
Balance Sheet and Capitalization
Consolidated assets$10,743,429$11,028,503$11,740,829$11,877,288$11,232,157$14,197,816$15,442,981$15,921,346
Consolidated debt(3)
5,449,9505,212,6575,394,1345,612,2745,187,5974,922,7224,621,2403,919,255
DBRG OP Share:
Total Assets3,001,6443,334,2883,755,2314,177,8063,561,5016,233,1586,086,2596,929,390
   Corporate debt578,422578,422578,422648,422578,422638,739800,000545,000
   Investment-level debt596,085568,230775,3581,097,943880,464727,789591,943528,609
Total Debt(3)
1,174,5071,146,6521,353,7801,746,3651,458,8861,366,5281,391,9431,073,609
Corporate cash449,368733,382423,44155,628813,237986,197606,447396,906
Corporate cash & VFN / Revolver borrowing availability749,3681,033,382723,441285,6281,013,2371,186,197806,447751,906
Perpetual Preferred Equity, $25 per share liquidation preference827,711827,779827,779883,500883,500883,500947,5001,033,750
Basic shares and OP units outstanding(1)
174,235172,712175,918176,930162,461155,138136,791136,454
Diluted shares and OP units outstanding(1)
183,154181,692186,911189,572176,087184,359174,598175,233
Common dividend per share$0.01$0.01$0.01$—$—$—$—$—

Notes:
(1)    In August 2022, the Company effectuated a 1-for-4 reverse stock split of its shares of class A and B common stock. All prior period common share and per share information is presented after giving effect to the reverse stock split.
(2)    Total AUM includes IM AUM of $67.6 billion, Operating AUM of $1.1 billion and Digital Other AUM of $0.6 billion.
(3)    Represents principal balance and excludes debt issuance costs, discounts and premiums.
 DigitalBridge | Supplemental Financial Report
6
Ib. Investment Management

($ in millions)3/31/2312/31/229/30/226/30/223/31/2212/31/219/30/216/30/21
Investment Management AUM (1)
$67,608 $51,303 $48,304 $45,296 $44,517 $43,619 $36,337 $33,551 
Investment Management FEEUM3/31/23 Annual IM Fee Rate3/31/2312/31/229/30/226/30/223/31/2212/31/219/30/216/30/21
DigitalBridge Partners I (DBP I)1.10%$3,180 $3,165 $2,802 $3,048 $3,034 $3,215 $3,040 $3,081 
DigitalBridge Partners II (DBP II)1.18%7,996 7,996 7,996 7,996 7,996 8,001 7,146 5,519 
Separately Capitalized Portfolio Companies0.75%2,187 2,512 2,370 2,401 2,372 2,148 2,576 2,576 
InfraBridge Global Infrastructure Funds (GIF)1.24%4,355 — — — — — — — 
InfraBridge Other0.66%728 — — — — — — — 
Co-Investment (Sidecar) Capital0.49%7,000 6,525 6,310 4,651 4,370 4,105 3,184 2,817 
Digital Core, Liquid and Credit Strategies0.58%2,248 2,036 1,021 933 1,013 786 510 512 
IM FEEUM0.91%$27,694 $22,234 $20,499 $19,029 $18,785 $18,255 $16,456 $14,505 
($ in thousands)
IM FRE1Q234Q223Q222Q221Q224Q213Q212Q21
Fee income$58,600 $44,371 $41,353 $44,758 $43,155 $43,145 $37,751 $33,304 
Fee income, other (2)
629 901 686 355 523 8,787 12,809 8,996 
Other income492 535 386 530 251 273 483 84 
Compensation expense—cash(19,795)(17,805)(18,876)(17,725)(17,675)(16,275)(16,933)(14,426)
Administrative expenses(6,329)(6,417)(4,450)(4,794)(4,012)(3,446)(2,675)(2,337)
Exclude: Start-up FRE of certain new strategies915 2,643 2,399 2,335 2,362 2,306 2,224 2,059 
IM FRE (3)
$34,512 $24,228 $21,498 $25,459 $24,604 $34,790 $33,659 $27,680 
DBRG OP share of IM FRE(4)
$34,512 $24,228 $21,498 $20,759 $16,989 $23,757 $22,922 $19,470 


Notes:
(1)    Includes AUM of: $6.2 billion DBP I, $13.2 billion DBP II, $7.7 billion Separately Capitalized Portfolio Companies, $8.4 billion InfraBridge GIF and Other, $29.1 billion Co-Investment (Sidecar) Capital, and $3.0 billion Digital Core, Liquid and Credit Strategies.
(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 a reconciliation of net income / (loss) to IM FRE, please refer to the Appendices section of this presentation.
(4)    In May 2022, DigitalBridge acquired Wafra’s 31.5% ownership in the Company's investment management business that Wafra initially acquired in July 2020, which resulted in 100% of the Company's IM FRE becoming entitled to DigitalBridge.
 DigitalBridge | Supplemental Financial Report
7
IIa. Financial Results - Balance Sheet

($ in thousands, except per share data) (unaudited)As of March 31, 2023
ConsolidatedNoncontrolling Interests' Share
Assets
Cash and cash equivalents$668,524 $101,965 
Restricted cash155,690 132,399 
Investments1,226,952 468,854 
Real estate5,964,807 5,242,549 
Goodwill907,937 412,084 
Deferred leasing costs and intangible assets1,098,520 849,123 
Other assets642,451 534,811 
Due from affiliates67,285 — 
Assets held for disposition11,263 — 
Total assets$10,743,429 $7,741,785 
Liabilities
Corporate debt$569,771 $— 
Non-recourse investment-level debt4,752,050 4,169,621 
Intangible liabilities28,441 24,848 
Other liabilities1,133,568 789,010 
Liabilities related to assets held for disposition374 — 
Total liabilities6,484,204 4,983,479 
Commitments and contingencies
Redeemable noncontrolling interests107,413 107,413 
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value per share; $827,711 liquidation preference; 250,000 shares authorized; 33,108 shares issued and outstanding800,303 — 
Common stock, $0.04 par value per share
Class A, 949,000 shares authorized; 161,834 shares issued and outstanding6,473 — 
Class B, 1,000 shares authorized; 166 shares issued and outstanding7 — 
Additional paid-in capital7,823,722 — 
Accumulated deficit(7,176,706)— 
Accumulated other comprehensive income (loss)(1,478)— 
Total stockholders’ equity1,452,321 — 
Noncontrolling interests in investment entities2,650,893 2,650,893 
Noncontrolling interests in Operating Company48,598 — 
Total equity4,151,812 2,650,893 
Total liabilities, redeemable noncontrolling interests and equity$10,743,429 $7,741,785 


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


Supplemental Schedule to Consolidated Balance Sheets

($ in thousands) (unaudited)As of March 31, 2023
Investment ManagementOperatingCorporate and Other
Assets
Cash and cash equivalents$56,943 $65,097 $546,484 
Restricted cash2,324 152,262 1,104 
Investments345,826 6,804 874,322 
Real estate— 5,964,807 — 
Goodwill444,817 463,120 — 
Deferred leasing costs and intangible assets128,973 969,036 511 
Other assets15,966 581,848 44,637 
Due from affiliates61,455 — 5,830 
Total assets$1,056,304 $8,202,974 $1,472,888 
Liabilities
Corporate debt$199,033 $70,246 $300,492 
Non-recourse investment-level debt— 4,751,701 349 
Intangible liabilities— 28,441 — 
Other liabilities218,712 721,319 193,537 
Total liabilities417,745 5,571,707 494,378 
Redeemable noncontrolling interests1,098 — 106,315 
Noncontrolling interests in investment entities151,985 2,369,836 127,770 


 DigitalBridge | Supplemental Financial Report
9
IIb. Financial Results - Consolidated Segment Operating Results
Three Months Ended March 31, 2023
($ in thousands) (unaudited)Investment ManagementOperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Fee income$60,098 $— $(972)$— $59,126 
Carried interest allocation (reversal)(54,756)— — — (54,756)
Principal investment income (loss)318 — 3,244 — 3,562 
Property operating income— 230,927 — — 230,927 
Other income1,169 737 9,395 — 11,301 
 Total revenues6,829 231,664 11,667 — 250,160 
Expenses
Property operating expense— 97,126 — — 97,126 
Interest expense2,603 59,984 4,609 — 67,196 
Investment expense536 5,203 12 — 5,751 
Transaction-related costs5,192 — 3,335 — 8,527 
Depreciation and amortization6,409 134,699 466 — 141,574 
Compensation expense - cash and equity-based28,182 27,179 19,289 — 74,650 
Compensation expense (reversal) - carried interest and incentive fee(36,831)— — — (36,831)
Administrative expenses6,407 7,240 12,859 — 26,506 
 Total expenses12,498 331,431 40,570 — 384,499 
Other gain (loss), net3,082 1,769 (147,596)— (142,745)
Income (loss) from continuing operations before income taxes(2,587)(97,998)(176,499)— (277,084)
Income tax benefit (expense)(217)56 (881)— (1,042)
Income (loss) from continuing operations(2,804)(97,942)(177,380)— (278,126)
Income (loss) from discontinued operations— — — (14,218)(14,218)
Net income (loss)(2,804)(97,942)(177,380)(14,218)(292,344)
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests418 — 6,525 — 6,943 
Investment entities(857)(86,254)1,766 517 (84,828)
Operating Company(167)(899)(14,522)(1,074)(16,662)
Net income (loss) attributable to DigitalBridge Group, Inc.(2,198)(10,789)(171,149)(13,661)(197,797)
Preferred stock dividends— — 14,676 — 14,676 
Net income (loss) attributable to common stockholders$(2,198)$(10,789)$(185,825)$(13,661)$(212,473)


 DigitalBridge | Supplemental Financial Report
10
IIc. Financial Results - Noncontrolling Interests’ Share Segment Operating Results
Three Months Ended March 31, 2023
($ in thousands) (unaudited)Investment ManagementOperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Fee income$— $— $— $— $— 
Carried interest allocation (reversal)(1,310)— — — (1,310)
Principal investment income (loss)174 — 712 — 886 
Property operating income$— $203,516 $— $— 203,516 
Other income— 659 603 — 1,262 
Total revenues(1,136)204,175 1,315 — 204,354 
Expenses
Property operating expense— 85,639 — — 85,639 
Interest expense— 52,199 14 — 52,213 
Investment expense— 4,529 — — 4,529 
Transaction-related costs— — — — — 
Depreciation and amortization— 118,590 — — 118,590 
Compensation expense - cash and equity-based— 23,520 — — 23,520 
Compensation expense (reversal) - carried interest and incentive fee— — — — — 
Administrative expenses— 6,259 289 — 6,548 
 Total expenses— 290,736 303 — 291,039 
Other gain (loss), net623 1,569 7,328 — 9,520 
Income (loss) from continuing operations before income taxes(513)(84,992)8,340 — (77,165)
Income tax benefit (expense)— 50 — — 50 
Income (loss) from continuing operations(513)(84,942)8,340 — (77,115)
Income (loss) from discontinued operations— — — 517 517 
Net income (loss)(513)(84,942)8,340 517 (76,598)
Non-pro rata allocation of income (loss) to noncontrolling interests74 (1,312)(49)— (1,287)
Net income (loss) attributable to noncontrolling interests$(439)$(86,254)$8,291 $517 $(77,885)

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

OP pro rata share by segmentAmounts
attributable to
noncontrolling interests		DBRG consolidated as reported
($ in thousands; for the three months ended March 31, 2023; and unaudited)IMOperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Net income (loss) attributable to common stockholders$(2,198)$(10,789)$(185,825)$(13,661)$(212,473)$— $(212,473)
Net income (loss) attributable to noncontrolling common interests in Operating Company(167)(899)(14,522)(1,074)(16,662)— (16,662)
Net income (loss) attributable to common interests in Operating Company and common stockholders(2,365)(11,688)(200,347)(14,735)(229,135)— (229,135)
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges(1)
9,682 32 8,870 9 18,593 (202)18,391 
Other (gain) loss, net (excluding realized gain or loss related to digital assets and fund investments in Corporate and Other)(3,082)(194)144,539 10,774 152,037 (10,808)141,229 
Unrealized carried interest (allocation) reversal, net of associated compensation (expense) reversal16,606 — — — 16,606 1,634 18,240 
Compensation expense - equity-based3,898 581 6,872 23 11,374 4,965 16,339 
Depreciation and amortization6,409 15,490 466 266 22,631 118,589 141,220 
Straight-line rent revenue and expense77 (198)(352)(9)(482)(1,245)(1,727)
Amortization of acquired above- and below-market lease values, net— 10 — — 10 16 26 
Non-revenue enhancing capital expenditures— (1,054)— — (1,054)(7,510)(8,564)
Finance lease interest expense, debt prepayment penalties and amortization of deferred financing costs, debt premiums and discounts291 1,715 377 16 2,399 13,124 15,523 
Adjustments attributable to noncontrolling interests in investment entities— — — — — (118,563)(118,563)
DE from discontinued operations— — — 3,656 3,656 — 3,656 
After-tax DE$31,516 $4,694 $(39,575)$— $(3,365)$— $(3,365)















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

OP pro rata share by segment
($ in thousands; for the three months ended March 31, 2023; and unaudited)IMOperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
After-tax DE$31,516 $4,694 $(39,575)$— $(3,365)
Interest expense included in DE2,247 6,070 4,232 — 12,549 
Income tax expense (benefit) included in DE217 (6)881 — 1,092 
Preferred dividends— — 14,676 — 14,676 
Principal investment income (loss)(144)— (133)— (277)
Realized carried interest (allocation) reversal, net of associated compensation (expense) reversal(243)— — — (243)
Investment costs and non-revenue enhancing capital expenditures in DE4 1,190 — — 1,194 
Adjusted EBITDA$33,597 $11,948 $(19,919)$— $25,626 


























 DigitalBridge | Supplemental Financial Report
13
IIIa. Capitalization - Debt Summary
($ in thousands; as of March 31, 2023)
Consolidated debt
Payments due by period(1)
20232024202520262027 and afterTotal
Investment-level debt:
Operating - Fixed$2,985 $600,753 $700,000 $1,519,690 $1,685,000 $4,508,428 
Operating - Variable100,000 262,500 — — — 362,500 
Other - Variable— 600 — — — 600 
Total Investment-level debt102,985 863,853 700,000 1,519,690 1,685,000 4,871,528 
Corporate debt:
2021-1, A-1 Variable Funding Notes— — — — — — 
2021-1, Class A-2 Term Notes— — — 300,000 — 300,000 
Convertible/exchangeable senior notes200,000 
(2)
— 78,422 — — 278,422 
Total debt - consolidated$302,985 $863,853 $778,422 $1,819,690 $1,685,000 $5,449,950 
Fixed/VariableWA Interest RateWA Remaining Term
DBRG OP share of debt
Payments due by period(1)
20232024202520262027 and afterTotal
Investment-level debt:
Operating - Fixed$392 $78,879 $91,910 $178,653 $206,154 $555,988 Fixed3.1%3.4
Operating - Variable11,020 28,928 — — — 39,948 Variable8.7%0.8
Other - Variable— 149 — — — 149 Variable6.4%1.4
Total Investment-level debt11,412 107,956 91,910 178,653 206,154 596,085 
Corporate debt:
2021-1, A-1 Variable Funding Notes— — — — — — Variablen/a3.5
2021-1, Class A-2 Term Notes— — — 300,000 — 300,000 Fixed3.9%3.5
Convertible/exchangeable senior notes200,000 
(2)
— 78,422 — — 278,422 Fixed5.2%0.7
Total debt - DBRG OP share$211,412 $107,956 $170,332 $478,653 $206,154 $1,174,507 
Net corporate debt
Cash and cash equivalents - consolidated$668,524 
less: Noncontrolling interests(101,965)
less: Investment level cash - DBRG OP share(117,191)
Corporate cash - DBRG OP share449,368 
Corporate debt - DBRG OP share(578,422)
Net corporate debt - DBRG OP share$(129,054)





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)    Fully repaid in April 2023.
 DigitalBridge | Supplemental Financial Report
14
IIIb. Capitalization - DBRG Series 2021-1
($ in thousands, as of March 31, 2023)
Class A-2 Term Notes
Amount outstanding$300,000 
Interest rate3.933 %
Anticipated Repayment Date (ARD)September 25, 2026
Kroll RatingBBB
Class A-1 Variable Funding Notes
Maximum Available$300,000 
(1)
Amount outstanding$— 
Interest Rate 1M Term SOFR + 3.00%
(1)
Fully extended Anticipated Repayment Date (ARD)(2)
September 25, 2026
Financial covenants:Covenant level
Debt Service Coverage Ratio(3)
Minimum 1.75x
Loan to Value Ratio(4)
Less than 35.0%
Investment Management Expense Ratio(5)
Less than 60.0%
Company status: As of May 2, 2023, DBRG is meeting all required covenant threshold levels.









Notes:
(1)    Effective April 1, 2022, the maximum principal amount of the Series 2021-1 Class A-1 Variable Funding Notes increased to $300 million and Term SOFR replaced LIBOR as the benchmark for accruing interest on the Series 2021-1 Class A-1 Variable Funding Notes. 1 month term SOFR is adjusted to include 0.11448% as defined in the Amendment No.1 to Class A-1 Note Purchase Agreement.
(2)    Anticipated Repayment Date is September 25, 2026 including two 1-year extension options subject to 1) either rating agency confirmation and consent of VFN noteholders are obtained or DSCR exceeding 1.75x, 2) term notes rating not less than BBB- 3) the payment of a 0.05% extension fee and 4) other customary conditions.
(3)    Debt service coverage ratio covenant thresholds: minimum of 1.75x for ability to borrow from the VFN; below 1.75x to 1.50x = 50% cash trap; below 1.50x to 1.20x = 100% cash trap; and below 1.20x = cash sweep.
(4)    100% cash sweep until LTV is less than 35%.
(5)    50% cash sweep until ratio is less than 60%.
 DigitalBridge | Supplemental Financial Report
15
IIIc. Capitalization - Convertible/Exchangeable Notes & Perpetual Preferred Stock
($ in thousands; except per share data; as of March 31, 2023)
Convertible/exchangeable debt
DescriptionOutstanding principal
Final due date(1)
Interest rateConversion price (per share of common stock)Conversion ratioConversion shares
5.75% Exchangeable senior notes$78,422 July 15, 20255.75% fixed$9.20 108.6956 8,524 
5.0% Convertible senior notes200,000 
(2)
April 15, 20235.00% fixed63.02 15.8675 3,174 
Total convertible debt$278,422 


Perpetual preferred stock
DescriptionLiquidation
preference		Shares outstanding (In thousands)Callable period
Series H 7.125% cumulative redeemable perpetual preferred stock210,731 8,429 Callable
Series I 7.15% cumulative redeemable perpetual preferred stock324,710 12,988 Callable
Series J 7.125% cumulative redeemable perpetual preferred stock292,270 11,691 Callable
Total preferred stock$827,711 33,108 


















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)    Fully repaid in April 2023.
 DigitalBridge | Supplemental Financial Report
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IV. Operating

($ in millions)
Portfolio Net Carrying Value3/31/2312/31/229/30/226/30/223/31/2212/31/219/30/216/30/21
Consolidated amount
Asset(1)
$8,920 $8,704 $8,515 $8,429 $8,397 $7,624 $7,211 $6,736 
Debt(2)
(4,870)(4,634)(4,506)(4,477)(4,479)(4,217)(3,817)(3,374)
Net Carrying Value - Consolidated$4,050 $4,070 $4,009 $3,952 $3,918 $3,407 $3,394 $3,362 
DBRG OP share of consolidated amount
Asset(1)
$1,077 $1,052 $1,133 $1,466 $1,460 $1,233 $1,157 $1,093 
Debt(2)
(596)(568)(598)(746)(746)(661)(588)(529)
Net Carrying Value - DBRG OP share$481 $484 $535 $720 $714 $572 $569 $564 
DBRG net carrying value % interest12 %12 %13 %18 %18 %17 %17 %17 %

($ in thousands)
Operating Adjusted EBITDA1Q234Q223Q222Q221Q224Q213Q212Q21
Consolidated amount
Total revenues$231,664 $229,278 $225,387 $227,687 $202,522 $189,938 $194,966 $189,093 
Property operating expenses(97,126)(97,457)(100,051)(94,744)(84,003)(78,950)(80,226)(77,140)
Compensation and administrative expenses(34,419)(27,452)(37,974)(29,139)(26,855)(28,879)(29,766)(28,488)
Investment expenses(5,203)(5,547)(5,288)(5,487)(8,016)(5,153)(4,862)(5,255)
Straight-line rent expenses and amortization of above- and below-market lease intangibles(1,221)(1,749)(2,827)(236)(377)370 482 (98)
Compensation expense—equity-based5,275 (95)10,852 752 752 1,918 308 308 
Installation services— — — — — 2,097 (4,058)576 
Transaction-related and restructuring charges184 1,574 1,105 2,400 4,636 3,188 4,042 2,999 
Operating Adjusted EBITDA - Consolidated (3)
$99,154 $98,552 $91,204 $101,233 $88,659 $84,529 $80,886 $81,995 
DBRG OP share of consolidated amount
Total revenues$27,481 $27,927 $38,305 $41,448 $36,882 $32,464 $33,771 $32,624 
Property operating expenses(11,487)(11,794)(17,096)(17,649)(15,614)(13,740)(14,115)(13,690)
Compensation and administrative expenses(3,787)(3,106)(7,348)(6,246)(5,752)(5,457)(5,615)(5,350)
Investment expenses(674)(716)(729)(793)(1,169)(732)(709)(819)
Straight-line rent expenses and amortization of above- and below-market lease intangibles(198)(263)(227)246 195 244 295 247 
Compensation expense—equity-based581 (11)2,092 164 164 384 62 62 
Installation services— — — — — 419 (812)115 
Transaction-related and restructuring charges32 77 175 473 791 618 759 587 
Operating Adjusted EBITDA - DBRG OP share$11,948 $12,114 $15,172 $17,643 $15,497 $14,200 $13,636 $13,776 
Notes:
(1)    Includes all components related to real estate assets, including tangible real estate and lease-related intangibles and cash. Represents cost of investment and additional capital expenditures less real estate impairments.
(2)    Represents unpaid principal balance.
(3)    For a reconciliation of net income/(loss) to Adjusted EBITDA, please refer to the Appendices section of this presentation.
 DigitalBridge | Supplemental Financial Report
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IV. Operating

Operating Capital Expenditures
Consolidated amount1Q234Q223Q222Q221Q224Q213Q212Q21
Non-revenue enhancing capital expenditures$8,564$14,775$10,992$13,377$7,418$6,410$7,387$4,423
Revenue enhancing capital expenditures129,710135,506147,046101,10084,66894,01842,84140,460
Total capital expenditures$138,274$150,281$158,038$114,477$92,086$100,428$50,228$44,883
Leasing Commissions$2,204$2,194$2,146$2,660$1,266$1,535$1,233$5,024
DBRG OP share of consolidated amount
Non-revenue enhancing capital expenditures$1,054$1,746$1,878$2,571$1,372$1,097$1,349$764
Revenue enhancing capital expenditures14,33715,05325,11821,24917,57818,0908,3157,538
Total capital expenditures$15,391$16,799$26,996$23,820$18,950$19,187$9,664$8,302
Leasing Commissions$243$244$367$489$308$307$213$756
Operating Metrics3/31/2023 - 1Q2312/31/2022 - 4Q229/30/2022 - 3Q226/30/2022 - 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q216/30/2021 - 2Q21
Number of Data Centers8384828278787676
Max Critical I.T. Square Feet2,405,3532,405,3872,349,8272,317,8271,980,3171,949,1441,819,9461,809,943
Leased Square Feet1,913,0071,887,6591,852,3211,817,1011,608,3781,552,5171,467,4201,439,291
% Utilization Rate79.5%78.5%78.8%78.4%81.2%79.7%80.6%79.5%
MRR (Annualized)$907.4$913.4$889.0$892.0$812.3$790.4$773.1$750.2
Bookings (Annualized)$20.6$18.2$22.4$56.5$14.2$15.3$16.6$16.4
Quarterly Churn (% of Prior Quarter MRR)1.7%1.3%1.0%1.7%0.9%1.9%1.3%1.3%

 DigitalBridge | Supplemental Financial Report
18
V. Other

($ in thousands)
Consolidated amount1Q234Q223Q222Q221Q224Q213Q212Q21
GP Co-investment in DBP I and II Investments$345,719 $343,137 $277,450 $284,282 $248,663 $242,856 $230,972 $225,411 
GP Co-investment in GIF Investment142,280 — — — — — — — 
Equity interests in digital investment vehicles and warehouse / seed investments346,774 316,299 769,431 906,076 423,467 290,113 272,134 198,934 
Other - digital assets net carrying value$834,773 $659,436 $1,046,881 $1,190,358 $672,130 $532,969 $503,106 $424,345 
DBRG OP share of consolidated amount
GP Co-investment in DBP I and II Investments$272,395 $270,400 $215,872 $217,504 $187,247 $183,612 $173,732 $171,012 
GP Co-investment in GIF Investment142,280 — — — — — — — 
Equity interests in digital investment vehicles and warehouse / seed investments184,938 178,379 467,014 591,066 308,578 174,566 165,902 98,476 
Other - digital assets net carrying value$599,613 $448,779 $682,886 $808,570 $495,825 $358,178 $339,634 $269,488 





















 DigitalBridge | Supplemental Financial Report
19
VI. Cash G&A Expense
($ in thousands)
1Q234Q223Q222Q221Q224Q213Q212Q21
Investment Management Cash G&A
Cash and equity-based compensation$28,182 $30,829 $22,566 $23,230 $24,808 $20,802 $21,606 $16,262 
Administrative expenses6,407 7,958 4,517 4,869 4,171 4,387 5,820 9,345 
Compensation expense—equity-based(3,898)(7,939)(2,654)(3,361)(3,190)(2,011)(2,046)(1,785)
Administrative expenses—straight-line rent(77)(66)(68)(76)(159)(75)(74)(50)
Administrative expenses—placement agent fee— — — — — (880)(3,069)(6,959)
Transaction-related and restructuring charges(4,490)(6,560)(1,035)(2,143)(3,943)(2,502)(2,629)(50)
Investment Management Cash G&A26,124 24,222 23,326 22,519 21,687 19,721 19,608 16,763 
Corporate & Other Cash G&A
Cash and equity-based compensation19,289 10,804 12,404 9,333 20,778 12,084 15,200 13,061 
Administrative expenses12,859 23,373 17,992 12,574 16,815 21,171 12,474 9,548 
Compensation expense—equity-based(6,872)329 (5,171)(4,840)(5,878)(3,837)(4,651)(5,721)
Administrative expenses—straight-line rent352 485 660 741 856 1,195 602 375 
Administrative expenses—noncontrolling interests(289)(248)(338)(327)(302)(377)(332)(255)
Transaction-related and restructuring charges(6,273)(18,443)(10,549)(2,828)(14,352)(14,229)(5,027)(1,399)
Corporate & Other Cash G&A19,066 16,300 14,998 14,653 17,917 16,007 18,266 15,609 
DBRG Cash G&A excluding Portfolio Company G&A$45,190 $40,522 $38,324 $37,172 $39,604 $35,728 $37,874 $32,372 
Corporate & Other EBITDA
EBITDA, excluding Cash G&A$(853)$10,360 $9,825 $9,414 $8,162 $1,273 $1,515 $(239)
Cash G&A(19,066)(16,300)(14,998)(14,653)(17,917)(16,007)(18,266)(15,609)
Corporate & Other EBITDA$(19,919)$(5,940)$(5,173)$(5,239)$(9,755)$(14,734)$(16,751)$(15,848)
 DigitalBridge | Supplemental Financial Report
20





Appendices
 DigitalBridge | Supplemental Financial Report
21
Reconciliations of IM FRE and Operating Adjusted EBITDA to Net Income (Loss)
($ in thousands)1Q234Q223Q222Q221Q224Q213Q212Q21
IM net income (loss)(2,804)81,167 46,065 67,995 (9,143)28,194 39,272 15,786 
Adjustments:
Interest expense (income)2,411 2,200 2,906 2,771 2,500 2,499 2,250 — 
Investment expense, net of reimbursement51 156 230 (200)138 (12)— — 
Depreciation and amortization6,409 6,135 5,369 5,375 5,276 5,928 8,242 6,298 
Compensation expense—equity-based3,898 6,639 2,654 3,361 3,191 2,011 2,046 1,786 
Compensation expense—carried interest and incentive(36,831)92,738 80,831 49,069 (20,352)25,921 31,736 8,266 
Administrative expenses—straight-line rent77 1,541 68 76 159 75 74 50 
Administrative expenses—placement agent fee— — — — — 880 3,069 6,959 
Transaction-related and restructuring charges9,682 8,101 2,317 4,042 3,942 2,516 2,627 51 
Incentive/performance fee income53,887 (176,944)(121,698)(110,779)31,119 (5,720)(1,313)(4,489)
Principal investment income (loss)(318)(2,072)(1,016)(1,016)(17)(31,608)(59,196)(11,203)
Other (gain) loss, net(3,082)(248)110 424 3,055 (52)(461)(119)
Income tax (benefit) expense217 2,172 1,263 2,006 2,374 1,852 3,089 2,236 
IM Adjusted EBITDA$33,597 $21,585 $19,099 $23,124 $22,242 $32,484 $31,435 $25,621 
Exclude: Start-up FRE of certain new strategies915 2,643 2,399 2,335 2,362 2,306 2,224 2,059 
IM FRE$34,512 $24,228 $21,498 $25,459 $24,604 $34,790 $33,659 $27,680 
Wafra’s 31.5% ownership— — — (4,700)(7,615)(11,033)(10,737)(8,210)
DBRG OP share of IM FRE$34,512 $24,228 $21,498 $20,759 $16,989 $23,757 $22,922 $19,470 
1Q234Q223Q222Q221Q224Q213Q212Q21
Operating net income (loss) from continuing operations(97,942)(76,990)(93,772)(85,428)(74,141)(83,909)(71,822)(10,850)
Adjustments:
Interest expense59,984 45,222 40,770 37,233 36,184 35,144 29,839 29,272 
Income tax (benefit) expense(56)509 (5)161 (330)(1,941)1,922 (66,788)
Depreciation and amortization134,699 133,269 130,663 145,817 122,891 126,436 120,458 126,227 
Straight-line rent expenses and amortization of above- and below-market lease intangibles(1,221)(1,749)(2,827)(236)(377)370 482 (98)
Compensation expense—equity-based5,275 (95)10,852 752 752 1,918 308 308 
Installation services— — — — — 2,097 (4,058)576 
Transaction-related and restructuring charges184 1,574 1,105 2,400 4,636 3,188 4,042 2,999 
Other gain/loss, net(1,769)(3,188)4,418 534 (956)1,226 (285)349 
Operating Adjusted EBITDA$99,154 $98,552 $91,204 $101,233 $88,659 $84,529 $80,886 $81,995 
 DigitalBridge | Supplemental Financial Report
22
Reconciliations of DE and Adjusted EBITDA to Net Income (Loss)
($ in thousands)1Q234Q223Q222Q221Q224Q213Q212Q21
Net income (loss) attributable to common stockholders$(212,473)$(19,356)$(63,273)$(37,321)$(262,316)$(20,686)$41,036 $(141,260)
Net income (loss) attributable to noncontrolling common interests in Operating Company(16,662)(1,583)(4,834)(3,090)(22,862)(1,946)4,311 (14,980)
Net income (loss) attributable to common interests in Operating Company and common stockholders(229,135)(20,939)(68,107)(40,411)(285,178)(22,632)45,347 (156,240)
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges18,391 23,772 23,249 29,300 24,668 29,977 19,501 5,174 
Other (gain) loss, net (excluding realized gain or loss related to digital assets and fund investments in Corporate and Other)141,229 (16,050)(7,211)15,134 130,224 (52,611)11,319 (151,773)
Unrealized carried interest (allocation) reversal, net of associated compensation (expense) reversal18,240 (70,541)(1,228)(58,775)13,078 (7,375)(27,953)(6,485)
Compensation expense - equity-based 16,339 7,549 18,619 9,344 18,720 19,416 9,038 11,642 
Depreciation and amortization141,220 148,508 146,810 153,548 130,597 145,031 137,602 167,114 
Straight-line rent revenue and expense(1,727)(7,063)(8,895)(2,956)(2,548)(1,986)(1,925)(2,309)
Amortization of acquired above- and below-market lease values, net26 100 80 (10)(248)(333)(172)(1,498)
Impairment loss— — — 12,184 23,802 (40,732)(8,210)242,903 
Gain from sales of real estate— — — — — (197)(514)(2,969)
Non-revenue enhancing capital expenditures(8,564)(14,774)(10,992)(13,377)(1,372)(1,097)(1,349)(764)
Finance lease interest expense, debt prepayment penalties and amortization of deferred financing costs, debt premiums and discounts15,523 5,572 5,627 5,238 98,465 36,685 7,651 10,196 
Preferred share redemption (gain) loss— — — — — 2,127 2,865 — 
Income tax effect on certain of the foregoing adjustments— 55 — — (589)8,195 1,663 (42,536)
Adjustments attributable to noncontrolling interests in investment entities(118,563)(69,810)(136,338)(91,676)(132,237)(105,150)(83,074)(15,334)
DE from discontinued operations3,656 (4,772)70,721 (16,940)(22,446)(20,954)(116,675)(68,915)
After-tax DE$(3,365)$(18,393)$32,335 $603 $(5,064)$(11,636)$(4,886)$(11,794)

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Reconciliations of DE and Adjusted EBITDA to Net Income (Loss)
($ in thousands)1Q234Q223Q222Q221Q224Q213Q212Q21
After-tax DE$(3,365)$(18,393)$32,335 $603 $(5,064)$(11,636)$(4,886)$(11,794)
Interest expense included in DE12,549 13,756 16,348 14,142 13,280 13,775 14,160 11,834 
Income tax expense (benefit) included in DE1,092 30,616 (7,839)(2,662)(6,849)631 (12,638)(8,224)
Preferred dividends14,676 14,765 15,283 15,759 15,759 16,139 17,456 18,516 
Principal Investment Income (Loss)(277)(1,860)(9,303)— (58)(157)(198)— 
Placement fee expense— — — — — 603 2,102 4,767 
Realized carried interest (allocation) reversal, net of associated compensation (expense) reversal(243)(12,377)(20,258)— 1,172 (1,092)(7)(1,565)
Investment costs and non-revenue enhancing capital expenditures in DE1,194 1,252 2,531 3,086 2,023 2,463 1,402 1,620 
Non pro-rata allocation of income (loss) to noncontrolling interests— — — — 231 231 231 223 
Adjusted EBITDA$25,626 $27,759 $29,097 $30,928 $20,494 $20,957 $17,622 $15,377 




















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

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

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

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

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

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

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

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

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

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

UPB: Unpaid Principal Balance

% Utilization Rate: Amount of leased square feet divided by max critical I.T. square feet.
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