Bridge Investment Group Holdings Inc is a vertically integrated investment manager, diversified across specialized asset classes. The company combines its nationwide operating platform with dedicated teams of investment professionals focused on various specialized and synergistic investment platforms, including real estate, credit, renewable energy, and secondaries strategies. Its broad range of products and vertically integrated structure allow it to capture new market opportunities and serve investors with various investment objectives. The company operates its business in a single segment, alternative investment management, diversified across specialized and synergistic investment platforms.
Performance Overview
Bridge Investment Group Holdings Inc (BRDG, Financial) reported a net income of $27.5 million for the quarter ended June 30, 2024. However, the net loss attributable to Bridge per share of Class A common stock was $(0.11). Distributable Earnings of Bridge Investment Group Holdings LLC (the “Operating Company”) were $35.5 million, or $0.19 per share after-tax, for the quarter. Fee Related Earnings to the Operating Company were $35.9 million.
Key Financial Achievements
Bridge Investment Group Holdings Inc (BRDG, Financial) declared a quarterly dividend of $0.13 per share of its Class A common stock, payable on September 13, 2024, to its Class A common stockholders of record at the close of business on August 30, 2024. The company also reported having $3.1 billion of dry powder at the end of the second quarter, with a significant portion allocated to its Multifamily, Secondaries, Credit, and Workforce & Affordable Housing vehicles. Additionally, Bridge raised an additional $400 million within its Debt Strategies vertical subsequent to the quarter-end.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $104.8 million | $98.8 million | 6% |
| GAAP Net Income (Loss) | $27.5 million | $(2.8) million | 1,096% |
| Loss per share, Basic | $(0.11) | $(0.24) | 54% |
| Fee Related Earnings (FRE) to the Operating Company | $35.9 million | $35.1 million | 2% |
| Distributable Earnings (DE) of the Operating Company | $35.5 million | $35.0 million | 1% |
| After-tax DE per share | $0.19 | $0.20 | (5%) |
Balance Sheet and Cash Flow Highlights
Bridge Investment Group Holdings Inc (BRDG, Financial) reported total assets of $1.24 billion as of June 30, 2024. The company’s liabilities stood at $718.7 million, while total equity was $525.8 million. The company’s cash and cash equivalents were $75.2 million, and it had $9.7 million in restricted cash.
Management Commentary
"Bridge reported improved financial results, with Total Revenue increasing 6% from last quarter, Fee Related Earnings to the Operating Company increasing 2% and Distributable Earnings increasing 1%. Looking ahead, we believe our differentiated model as a specialized, integrated owner/operator positions Bridge to deliver leading performance across carefully selected sectors spanning real estate, credit, infrastructure and secondaries, all of which should see strong upside in the coming quarters." - Robert Morse, Executive Chairman
"We continue to see clear signals that commercial real estate values have bottomed: the debt markets and the cost of capital have improved notably and volumes are recovering. We believe that we are poised for a broader improvement in volumes and valuations given recent interest rate declines and the prospect of Fed interest rate cuts before the end of the year. Bridge is well positioned for success in this environment, and we are excited for the future." - Jonathan Slager, Chief Executive Officer
Analysis
Bridge Investment Group Holdings Inc (BRDG, Financial) has demonstrated resilience and growth in its financial performance for the second quarter of 2024. The increase in total revenue and distributable earnings indicates strong operational efficiency and effective management strategies. The company's ability to raise additional capital and maintain a significant amount of dry powder positions it well for future investments and growth opportunities.
However, the net loss per share of Class A common stock and the decrease in fee-earning AUM highlight some challenges that the company needs to address. The management's optimistic outlook and strategic focus on specialized sectors provide a positive indication of the company's potential to overcome these challenges and achieve sustained growth.
For a detailed presentation of Bridge Investment Group Holdings Inc (BRDG, Financial)'s second quarter 2024 results, please visit the Investors section of their website at www.bridgeig.com.
Explore the complete 8-K earnings release (here) from Bridge Investment Group Holdings Inc for further details.
