Company: DBRG
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001679688-25-000043
Chunk: 114

Company: DigitalBridge Group, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 114
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    These amounts are determined based upon the definition of FRE as described above and therefore, differ from those presented on the consolidated statements of operations.

Fee-Related Earnings

FRE was $15.4 million or 79% higher at $35.0 million in the first quarter of 2025 compared to $19.6 million in the same period in 2024. FRE margin in the first quarter of 2025 improved to 39% from 27% a year ago. 

Fee revenue increased $17.4 million or 24%, partially offset by higher operating cost. The increase in fee revenue is attributable to capital raised for our third flagship fund, which contributed an additional $20.6 million of fees, including $10.7 million of catch-up fees. This was partially offset by a fee decrease for an InfraBridge fund following a change in fee basis from committed to invested capital effective December 2024. Operating cost was $2.1 million higher, driven largely by fund formation and offering costs as well as the effects of higher headcount. 

Distributable Earnings 

DE was $54.7 million in the first quarter of 2025 compared to $2.2 million in the same period in 2024. The significant increase can be attributed to $15.4 million of additional FRE and $35 million of realized principal investment income and our share of carried interest received from our participation in a secondary sale of equity by our DataBank portfolio company. DE also benefited from $3.1 million of lower placement fees. 

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Distributable Earnings and Fee-Related Earnings Reconciliation

Three Months Ended March 31,(In thousands)20252024Net income (loss) attributable to common stockholders$(878)$(44,288)Net income (loss) attributable to noncontrolling interests in Operating Company(7)(3,338)Net income (loss) attributable to Operating Company(885)(47,626)Transaction-related costs and non-core items (1)435 7,556 Other (gain) loss, net (2)667 6,463 Unrealized principal investment income (3)29,847 (569)Unrealized carried interest, net of associated expense (allocation) reversal (4)5,816 2,686 Equity-based compensation7,711 9,214 Depreciation and amortization expense7,226 9,167 Amortization of deferred financing