dbrg-20220804
0001679688false00016796882022-08-042022-08-040001679688us-gaap:CommonClassAMemberexch:XNYS2022-08-042022-08-040001679688exch:XNYSus-gaap:SeriesHPreferredStockMember2022-08-042022-08-040001679688exch:XNYSdbrg:SeriesIPreferredStockMember2022-08-042022-08-040001679688dbrg:SeriesJPreferredStockMemberexch:XNYS2022-08-042022-08-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2022
DIGITALBRIDGE GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Maryland001-3798046-4591526
(State or Other Jurisdiction of
Incorporation or Organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
750 Park of Commerce Drive, Suite 210
Boca Raton, Florida 33487
(Address of Principal Executive Offices, Including Zip Code)
(561570-4644
Registrant’s telephone number, including area code:
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A Common Stock, $0.01 par valueDBRGNew York Stock Exchange
Preferred Stock, 7.125% Series H Cumulative Redeemable, $0.01 par valueDBRG.PRHNew York Stock Exchange
Preferred Stock, 7.15% Series I Cumulative Redeemable, $0.01 par valueDBRG.PRINew York Stock Exchange
Preferred Stock, 7.125% Series J Cumulative Redeemable, $0.01 par valueDBRG.PRJNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02    Results of Operations and Financial Condition.
On August 4, 2022, DigitalBridge Group, Inc. (the “Company”) issued a press release announcing its financial position as of June 30, 2022 and its financial results for the quarter ended June 30, 2022. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
On August 4, 2022, the Company made available a Supplemental Financial Disclosure Presentation for the quarter ended June 30, 2022 on the Company’s website at www.digitalbridge.com. A copy of the Supplemental Financial Disclosure Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 7.01    Regulation FD Disclosure.
In connection with the earnings call to be held on August 4, 2022 as referenced in the press release, the Company has prepared a presentation, dated August 4, 2022 (the "Earnings Presentation"), a copy of which is attached as Exhibit 99.3 to this Current Report on Form 8-K and incorporated herein by reference.
The information included in this Current Report on Form 8-K (including Exhibits 99.1, 99.2 and 99.3 hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Use of Website to Distribute Material Company Information
The Company’s website address is www.digitalbridge.com. The Company uses its website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding the Company, is routinely posted on and accessible on the Shareholders subpage of its website, which is accessible by clicking on the tab labeled “Shareholders” on the website home page. The Company also uses its website to expedite public access to time-critical information regarding the Company in advance of or in lieu of distributing a press release or a filing with the U.S. Securities and Exchange Commission disclosing the same information. Therefore, investors should look to the Shareholders subpage of the Company’s website for important and time-critical information. Visitors to the Company’s website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Shareholders subpage of the website.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith to this Current Report on Form 8-K.
Exhibit No. Description
 Press Release dated August 4, 2022
 Supplemental Financial Disclosure Presentation for the quarter ended June 30, 2022
 Earnings Presentation dated August 4, 2022
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:
August 4, 2022
DIGITALBRIDGE GROUP, INC.
By:
/s/ Jacky Wu
Jacky Wu
Executive Vice President, Chief Financial Officer and Treasurer






Document
                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
Exhibit 99.1

DIGITALBRIDGE ANNOUNCES SECOND QUARTER 2022 FINANCIAL RESULTS
Outlines upgraded strategic roadmap expected to 2x assets under management over next 3 years
Board of Directors approved and declared a 1-for-4 reverse share split
Boca Raton, August 4, 2022 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the second quarter ended June 30, 2022 and that its board of directors has approved and declared a reverse share split of the Company’s common shares at a ratio of 1-for-4.
A Second Quarter 2022 Earnings Presentation and a Supplemental Financial Report are available in the Events & Presentations and Financial Information sections, respectively, of the Shareholders tab on the Company’s website at www.digitalbridge.com. This information has also been furnished to the U.S. Securities and Exchange Commission in a Current Report on Form 8-K.
Marc Ganzi, CEO of DigitalBridge, said “We delivered another solid quarter of revenue and earnings growth at DigitalBridge with contributions from our investment management and operating segments. I’m pleased to report initial commitments to our new credit and core strategies, highlighting positive momentum in capital formation as we enter the second half of the year. We are also detailing a new upgraded roadmap built around our highly scalable investment management platform which we believe will drive significant earnings growth and value creation for our shareholders over the coming years."
The Company reported second quarter 2022 total revenues of $289 million, GAAP net loss attributable to common stockholders of $(37) million, or $(0.06) per share, and Distributable Earnings of $7.6 million.
The reverse share split is expected to take effect at about 5:00 p.m. Eastern time on August 22, 2022 (the “Effective Time”). Accordingly, at the Effective Time, every four issued and outstanding common shares will be converted into one common share. In addition, at the market open on August 23, 2022, the common shares will be assigned a new CUSIP number: 25401T 603. As a result of the reverse share split, the number of outstanding Class A common shares of the Company will be reduced from 656 million to approximately 164 million. No fractional shares of common stock will be issued as a result of the reverse stock split. Instead, any fractional shares resulting from the reverse stock split will be aggregated into whole shares, sold in the open market and a pro-rata share of the proceeds from such sales will be distributed to each applicable stockholder in cash. The reverse share split will apply to all of the Company’s outstanding common shares and therefore will not affect any shareholder’s relative ownership percentage. Shareholders will be receiving information from American Stock Transfer & Trust Company, LLC, the Company’s transfer agent, regarding their shareholdings following the reverse share split and cash in lieu payments, if applicable.
Preferred Dividends
On August 3, 2022, the Company’s Board declared cash dividends with respect to each series of the Company’s cumulative redeemable perpetual preferred stock in accordance with the terms of such series, as follows: Series H preferred stock: $0.4453125 per share; Series I preferred stock: $0.446875 per share; and Series J preferred stock: $0.4453125 per share. Such dividends will be paid on October 17, 2022 to the respective stockholders of record on October 12, 2022.
Second Quarter 2022 Conference Call
The Company will conduct its quarterly earnings conference call and presentation to discuss the Second Quarter 2022 financial results on Thursday, August 4, at 10:00 a.m. Eastern Time (ET). The earnings presentation will be broadcast live over the Internet and a webcast link can be accessed on the Shareholders section of the Company’s website at ir.digitalbridge.com/events. To participate in the event by telephone, please dial (877) 407-4018 ten minutes prior to the start time (to allow time for registration). International callers should dial (201) 689-8471.
For those unable to participate during the live call, a replay will be available starting August 4, 2022, at 1:00 p.m. ET. To access the replay, dial (844) 512-2921 (U.S.), and use passcode 13731135. International callers should dial (412) 317-6671 and enter the same conference ID number.
About DigitalBridge Group, Inc.
DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure firm. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $48 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London, and Singapore. For more information, visit: www.digitalbridge.com.



1

                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
Cautionary Statement Regarding Forward-Looking Statements
This press release 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, driven by, among other factors, the treatment developments and public adoption rates and effectiveness of COVID-19 vaccines against emerging variants of COVID-19; 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; whether the transaction with AMP Capital will be completed within the time frame and on the terms anticipated or at all, and whether we will realize any of the anticipated benefits from the transaction; 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; our business and investment strategy, including the ability of the businesses in which we have a significant investment (such as BRSP) to execute their business strategies; BRSP's trading price and its impact on the carrying value of the Company's investment in BRSP, 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 raise new investment funds and vehicles and transfer warehoused investments; 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 macroeconomic factors, including those resulting from the COVID-19 pandemic, supply chain difficulties, inflation, a potential economic slowdown or recession; the impact of legislative, regulatory and competitive changes; the impact of our transition from a REIT to a 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 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, 2021 and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, each under the heading “Risk Factors,” as such factors may be updated from time to time in the Company’s subsequent periodic filings with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Additional information about these and other factors can be found in the Company’s reports filed from time to time with the SEC.
The Company cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. The Company is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and the Company does not intend to do so.
Source: DigitalBridge Group, Inc.
Investor Contacts:
Severin White
Managing Director, Head of Public Investor Relations
severin.white@digitalbridge.com
212-547-2777

(FINANCIAL TABLES FOLLOW)

2

                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
June 30, 2022December 31, 2021
(unaudited)
Assets
     Cash and cash equivalents
$337,150 $1,602,102 
     Restricted cash
108,686 99,121 
     Real estate, net
6,047,928 4,972,284 
 Loans receivable514,163 173,921 
 Equity and debt investments1,080,261 935,153 
     Goodwill
761,368 761,368 
     Deferred leasing costs and intangible assets, net
1,827,960 1,187,627 
 Assets held for disposition156,672 3,676,615 
 Other assets991,382 740,395 
     Due from affiliates
51,718 49,230 
Total assets
$11,877,288 $14,197,816 
Liabilities
Debt, net$5,539,732 $4,860,402 
Accrued and other liabilities1,624,708 928,042 
Intangible liabilities, net
32,840 33,301 
Liabilities related to assets held for disposition719 3,088,699 
Dividends and distributions payable
15,759 15,759 
Total liabilities
7,213,758 8,926,203 
Commitments and contingencies
Redeemable noncontrolling interests
102,011 359,223 
Equity
Stockholders’ equity:
Preferred stock, $0.01 par value per share; $883,500 liquidation preference; 250,000 shares authorized; 35,340 shares issued and outstanding854,232 854,232 
Common stock, $0.01 par value per share
Class A, 949,000 shares authorized; 655,750 and 568,577 shares issued and outstanding 6,557 5,685 
Class B, 1,000 shares authorized; 666 shares issued and outstanding
Additional paid-in capital
7,646,852 7,820,807 
Accumulated deficit
(6,875,817)(6,576,180)
Accumulated other comprehensive income
1,455 42,383 
Total stockholders’ equity1,633,286 2,146,934 
     Noncontrolling interests in investment entities
2,870,528 2,653,173 
     Noncontrolling interests in Operating Company
57,705 112,283 
Total equity
4,561,519 4,912,390 
Total liabilities, redeemable noncontrolling interests and equity
$11,877,288 $14,197,816 




3

                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
 Three Months Ended June 30,
 20222021
Revenues
Property operating income$234,251 $188,985 
Interest income8,499 1,319 
Fee income44,318 45,157 
Other income2,341 1,726 
Total revenues289,409 237,187 
Expenses
Property operating expense97,290 77,140 
Interest expense46,388 37,938 
Investment expense7,187 5,871 
Transaction-related costs2,756 64 
Depreciation and amortization155,352 138,229 
Compensation expense
Cash and equity-based compensation52,792 48,199 
Carried interest and incentive fee compensation49,069 8,266 
Administrative expenses26,353 28,505 
Total expenses437,187 344,212 
Other income (loss)
Other gain (loss), net(46,256)(27,041)
Equity method earnings (losses)27,427 51,481 
Equity method earnings (losses) - carried interest110,779 11,169 
Income (loss) before income taxes(55,828)(71,416)
     Income tax benefit (expense)2,518 75,239 
Income (loss) from continuing operations(53,310)3,823 
Income (loss) from discontinued operations (14,771)(98,906)
Net income (loss)(68,081)(95,083)
Net income (loss) attributable to noncontrolling interests:
     Redeemable noncontrolling interests(14,327)6,025 
     Investment entities(29,102)36,616 
     Operating Company(3,090)(14,980)
Net income (loss) attributable to DigitalBridge Group, Inc.(21,562)(122,744)
Preferred stock dividends15,759 18,516 
Net income (loss) attributable to common stockholders$(37,321)$(141,260)
Loss per share—basic
Loss from continuing operations per share—basic$(0.04)$(0.02)
Net loss attributable to common stockholders per share—basic$(0.06)$(0.29)
Loss per share—diluted
Loss from continuing operations per share—diluted$(0.04)$(0.02)
Net loss attributable to common stockholders per share—diluted$(0.06)$(0.29)
Weighted average number of shares
Basic615,932 479,643 
Diluted615,932 479,643 

4

                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
Distributable Earnings (DE)
(In thousands, except per share data, unaudited)
Three Months Ended
June 30, 2022June 30, 2021
Net income (loss) attributable to common stockholders$(37,321)$(141,260)
Net income (loss) attributable to noncontrolling common interests in Operating Company(3,090)(14,980)
Net income (loss) attributable to common interests in Operating Company and common stockholders(40,411)(156,240)
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges(1)
29,300 5,174 
Non-real estate (gains) losses, excluding realized gains or losses of digital assets within the Corporate and Other segment(58,775)(6,485)
Net unrealized carried interest13,433 (151,773)
Equity-based compensation expense9,344 11,642 
Depreciation and amortization155,909 170,454 
Straight-line rent revenue and expense(2,956)(2,309)
Amortization of acquired above- and below-market lease values, net(10)(1,498)
Impairment loss12,184 242,903 
Gain from sales of real estate— (2,969)
Non-revenue enhancing capital expenditures(13,377)(764)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts5,238 10,196 
Adjustment to reflect BRSP cash dividend declared(4,660)(40,165)
Income tax effect on certain of the foregoing adjustments— (42,536)
Adjustments attributable to noncontrolling interests in investment entities(91,676)(15,334)
DE from discontinued operations(5,958)(25,874)
After-tax DE$7,585 $(5,578)
DE per common share / common OP unit(2)
$0.01 $(0.01)
DE per common share / common OP unit—diluted(2)(3)
$0.01 $(0.01)
Weighted average number of common OP units outstanding used for DE per common share and OP unit(2)
674,573 539,287 
Weighted average number of common OP units outstanding used for DE per common share and OP unit—diluted (2)(3)
691,046 539,287 















_________
(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.
(2) Calculated based on weighted average shares outstanding including participating securities and assuming the exchange of all common OP units outstanding for common shares.
(3) For the three months ended June 30, 2022, included in the calculation of diluted DE per share are Class A common stock or OP units issuable in connection with performance stock units, performance based restricted stock units and Wafra’s warrants, of which the issuance and/or vesting are subject to the performance of the Company's stock price or the achievement of certain Company specific metrics. For the three months ended June 30, 2022, excluded from the calculation of diluted DE per share are the effects of adding back interest expense associated with convertible senior notes and weighted average dilutive common share equivalents for the assumed conversion of the convertible senior notes as the effect of including such interest expense and common share equivalents would be antidilutive. For the three months ended June 30, 2021, excluded from the calculation of diluted DE per share are Class A common stock or OP units issuable in connection with performance stock units, performance based restricted stock units and Wafra’s warrants, of which the issuance and/or vesting are subject to the performance of the Company's stock price or the achievement of certain Company specific metrics, and the effect of adding back interest expense associated with convertible senior notes and weighted average dilutive common share equivalents for the assumed conversion of the convertible senior notes as the effect of including such interest expense and common share equivalents would be antidilutive.

5

                
https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-logo.jpg
                    
Distributable Earnings (DE)
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: transaction-related and restructuring charges; realized and unrealized gains and losses, except realized gains and losses from digital assets in Corporate and Other; depreciation, amortization and impairment charges; debt prepayment penalties, and amortization of deferred financing costs, debt premiums and debt discounts; our share of unrealized carried interest, net of associated compensation expense; equity-based compensation expense; equity method earnings from BrightSpire Capital, Inc. (BRSP) which is replaced with dividends declared by BRSP; 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; 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 better comparability of operating results period-over-period and to other companies in similar lines of business.

6
Document

https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-supplcover.jpg


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, driven by, among other factors, the treatment developments and public adoption rates and effectiveness of COVID-19 vaccines against emerging variants of COVID-19; 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; whether the transaction with AMP Capital will be completed within the time frame and on the terms anticipated or at all, and whether we will realize any of the anticipated benefits from the transaction; 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; our business and investment strategy, including the ability of the businesses in which we have a significant investment (such as BrightSpire Capital, Inc. (BRSP)) to execute their business strategies; BRSP's trading price 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 raise new investment funds and vehicles and transfer warehoused investments; 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 macroeconomic factors, including those resulting from the COVID-19 pandemic, supply chain difficulties, inflation, a potential economic slowdown or recession; the impact of legislative, regulatory and competitive changes; the impact of our transition from a REIT to a 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 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, 2021 and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, 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.

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 Digital 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: transaction-related and restructuring charges; realized and unrealized gains and losses, except realized gains and losses from digital assets in Corporate and Other; depreciation, amortization and impairment charges; debt prepayment penalties, and amortization of deferred financing costs, debt premiums and debt discounts; our share of unrealized carried interest, net of associated compensation expense; equity-based compensation expense; equity method earnings from BRSP which is replaced with dividends declared by BRSP; 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; 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 better comparability of operating results period-over-period and 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: interest expense as included in DE, income tax expense or benefit as included in DE, preferred stock dividends, equity method earnings, placement fee expense, our share of realized carried interest and incentive fees net of associated compensation expense, 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 before recurring cash charges including interest expense and taxes and does not deduct capital expenditures or other recurring cash requirements, its usefulness as a performance measure may be limited.

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

Digital Investment Management (Digital 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") and separately capitalized vehicles, while other strategies, including digital 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 Digital IM segment were attributed 31.5% to Wafra through the end of May 2022 when Wafra's investment in the Digital IM business was redeemed by the Company.

Digital 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 Digital 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, the largest of which is in the DBP flagship funds, and seed investments in various strategies such as digital liquid and digital credit; and (ii) remaining non-digital investments, primarily in BRSP. 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. At this time, the remaining non-digital investments are not substantially available for immediate sale and are expected to be monetized over an extended period beyond the near term. These other investment 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, 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.
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 Digital IM segment from third party capital in investment vehicles managed by the Company and consolidated within the Digital 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
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.
Other
21
VIII.
Cash G&A Expense
22
Appendices
Reconciliations of Digital IM FRE and Digital Operating Adjusted EBITDA to Net Income (Loss)24
Reconciliations of DE and Adjusted EBITDA and to Net Income (Loss)25-26
Definitions27
 DigitalBridge | Supplemental Financial Report
5

Ia. Summary Financial Metrics
($ and shares in thousands, except per share data and as noted) (Unaudited)
6/30/2022 - 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q216/30/2021 - 2Q213/31/2021 - 1Q2112/31/2020 - 4Q209/30/2020- 3Q20
Financial Data
Net income (loss) attributable to common stockholders$(37,321)$(262,316)$(20,686)$41,036$(141,260)$(264,806)$(140,575)$(205,784)
Net income (loss) attributable to common stockholders per basic share(0.06)(0.46)(0.04)0.08(0.29)(0.56)(0.30)(0.44)
Distributable Earnings ("DE")7,5851,569(5,352)700(5,578)(10,213)(25,373)(31,010)
DE per basic share0.01(0.01)(0.01)(0.02)(0.05)(0.06)
Adjusted EBITDA30,92820,49420,95717,62215,37712,538(2,444)(5,519)
Balance Sheet, Capitalization and Trading Statistics
Total consolidated assets$11,877,288$11,232,157$14,197,816$15,442,981$15,921,346$16,625,250$20,200,560$19,043,050
 DBRG OP share of consolidated assets4,177,8063,561,5016,233,1586,086,2596,929,3907,324,78410,119,83410,087,808
Total consolidated debt(1)
5,612,2745,187,5974,922,7224,621,2403,919,2557,023,2267,931,4587,165,859
 DBRG OP share of consolidated debt(1)
1,746,3651,458,8861,366,5281,391,9431,073,6093,392,6203,853,6423,683,660
Basic shares and OP units outstanding(2)
707,718649,845620,553547,162545,815538,908535,217535,473
Liquidation preference of perpetual preferred equity883,500883,500883,500947,5001,033,7501,033,7501,033,7501,033,750
Insider ownership of shares and OP units3.3%3.6%3.5%4.0%4.0%9.4%9.4%10.0%
Digital Assets Under Management ("AUM") (in billions)$47.9$46.6$45.3$37.8$34.9$32.0$30.0$23.3
Digital Fee Earning Equity Under Management ("FEEUM") (in billions)$19.0$18.8$18.3$16.5$14.5$12.9$12.8$8.6
Digital Key Metrics
Digital IM FRE25,45924,60434,79033,65927,68020,1386,41510,731
Digital IM FRE - DBRG OP share20,75916,98923,75722,92219,47013,5833,8938,148
Digital Operating Adjusted EBITDA101,23388,65984,52980,88681,99582,28759,71645,177
Digital Operating Adjusted EBITDA - DBRG OP share17,64315,49714,20013,63613,77613,9489,6206,914
Digital and Corporate Debt5,612,2745,187,5974,856,2224,617,2403,919,2553,869,3383,758,3453,077,861
Digital and Corporate Debt - DBRG OP share1,746,3651,458,8861,300,0281,387,9431,073,6091,027,5201,059,881886,765
Other digital net carrying value1,190,358672,130532,969503,106424,345353,776353,194256,451
Other digital net carrying value - DBRG OP share808,570495,825358,178339,634269,488243,726254,718210,396
Number of BRSP shares owned by DigitalBridge34,99134,99134,99134,99144,47844,47444,47444,473
Digital and Corporate net assets & other non-digital assets net carrying value - DBRG OP share269,5801,053,6401,085,397654,576439,747283,133493,388330,965


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 June 30, 2022 and the results of certain Company-specific metrics as of June 30, 2022, excluded are class A common shares that are contingently issuable in relation to performance stock units and unvested shares related to LTIP units of 7.7 million and net settlement for the exercise of warrants held by Wafra of 8.8 million. Also excluded are class A shares issuable in relation to an assumed exchange of the Company's remaining 5.75% senior notes of 34.1 million.
 DigitalBridge | Supplemental Financial Report
6

IIa. Financial Results - Balance Sheet

($ in thousands, except per share data) (unaudited)As of June 30, 2022
ConsolidatedNoncontrolling Interests' Share
Assets
Cash and cash equivalents$337,150 $175,818 
Restricted cash108,686 83,851 
Real estate, net6,047,928 4,878,537 
Loans receivable514,163 3,945 
Equity and debt investments1,080,261 421,001 
Goodwill761,368 354,982 
Deferred leasing costs and intangible assets, net1,827,960 1,186,035 
Assets held for disposition156,672 — 
Other assets991,382 595,313 
Due from affiliates51,718 — 
Total assets$11,877,288 $7,699,482 
Liabilities
Debt, net$5,539,732 $3,820,638 
Accrued and other liabilities1,624,708 878,656 
Intangible liabilities, net32,840 27,649 
Liabilities related to assets held for disposition719 — 
Dividends and distributions payable15,759 — 
Total liabilities7,213,758 4,726,943 
Commitments and contingencies
Redeemable noncontrolling interests102,011 102,011 
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 share0
Class A, 949,000 shares authorized; 655,750 shares issued and outstanding6,557 — 
Class B, 1,000 shares authorized; 666 shares issued and outstanding— 
Additional paid-in capital7,646,852 — 
Accumulated deficit(6,875,817)— 
Accumulated other comprehensive income1,455 — 
Total stockholders’ equity1,633,286 — 
Noncontrolling interests in investment entities2,870,528 2,870,528 
Noncontrolling interests in Operating Company57,705 — 
Total equity4,561,519 2,870,528 
Total liabilities, redeemable noncontrolling interests and equity$11,877,288 $7,699,482 
 DigitalBridge | Supplemental Financial Report
7

IIb. Financial Results - Consolidated Segment Operating Results
Three Months Ended June 30, 2022
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $227,646 $6,605 $— $234,251 
Interest income15 8,477 — 8,499 
Fee income45,113 — (795)— 44,318 
Other income987 34 1,320 — 2,341 
 Total revenues46,115 227,687 15,607 — 289,409 
Expenses
Property operating expense— 94,744 2,546 — 97,290 
Interest expense2,785 37,233 6,370 — 46,388 
Investment expense259 5,487 1,441 — 7,187 
Transaction-related costs1,898 — 858 — 2,756 
Depreciation and amortization5,375 145,817 4,160 — 155,352 
Compensation expense
Cash and equity-based compensation23,230 20,229 9,333 — 52,792 
Carried interest and incentive fee compensation49,069 — — — 49,069 
Administrative expenses4,869 8,910 12,574 — 26,353 
 Total expenses87,485 312,420 37,282 — 437,187 
Other income (loss)
Other gain (loss), net(424)(534)(45,298)— (46,256)
Equity method earnings (loss)1,016 — 26,411 — 27,427 
Equity method earnings (loss) - carried interest110,779 — — — 110,779 
Income (loss) before income taxes70,001 (85,267)(40,562)— (55,828)
Income tax benefit (expense)(2,006)(161)4,685 — 2,518 
Income (loss) from continuing operations67,995 (85,428)(35,877)— (53,310)
Income (loss) from discontinued operations— — — (14,771)(14,771)
Net income (loss)67,995 (85,428)(35,877)(14,771)(68,081)
Net income (loss) attributable to noncontrolling interests:
Redeemable noncontrolling interests47 — (14,374)— (14,327)
Investment entities44,931 (69,414)(5,005)386 (29,102)
Operating Company1,748 (1,207)(2,489)(1,142)(3,090)
Net income (loss) attributable to DigitalBridge Group, Inc.21,269 (14,807)(14,009)(14,015)(21,562)
Preferred stock dividends— — 15,759 — 15,759 
Net income (loss) attributable to common stockholders$21,269 $(14,807)$(29,768)$(14,015)$(37,321)



 DigitalBridge | Supplemental Financial Report
8

IIc. Financial Results - Noncontrolling Interests’ Share Segment Operating Results
Three Months Ended June 30, 2022
($ in thousands) (unaudited)Digital Investment ManagementDigital OperatingCorporate and OtherDiscontinued OperationsTotal
Revenues
Property operating income$— $186,828 $2,871 $— $189,699 
Interest income— 42 — 45 
Fee income13 — — — 13 
Other income27 811 — 842 
 Total revenues17 186,858 3,724 — 190,599 
Expenses
Property operating expense— 77,584 1,107 — 78,691 
Interest expense— 29,876 541 — 30,417 
Investment expense— 4,689 224 — 4,913 
Depreciation and amortization— 120,645 1,273 — 121,918 
Compensation expense
Cash and equity-based compensation— 15,271 — — 15,271 
Carried interest and incentive fee compensation45,190 — — — 45,190 
Administrative expenses25 6,895 325 — 7,245 
 Total expenses45,215 254,960 3,470 — 303,645 
Other income (loss)
Other gain (loss), net(80)(463)(24,747)— (25,290)
Equity method earnings (loss)642 — 5,233 — 5,875 
Equity method earnings (loss) - carried interest86,720 — — — 86,720 
Income (loss) before income taxes42,084 (68,565)(19,260)— (45,741)
Income tax benefit (expense)— (128)— — (128)
Net income (loss)42,084 (68,693)(19,260)— (45,869)
Income (loss) from discontinued operations— — — — — 
Non-pro rata allocation of income (loss) to noncontrolling interests2,894 (721)267 — 2,440 
Net income (loss) attributable to noncontrolling interests$44,978 $(69,414)$(18,993)$— $(43,429)

 DigitalBridge | Supplemental Financial Report
9

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 June 30, 2022; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
Net income (loss) attributable to common stockholders$21,269 $(14,807)$(29,768)$(14,015)$(37,321)$— $(37,321)
Net income (loss) attributable to noncontrolling common interests in Operating Company1,748 (1,207)(2,489)(1,142)(3,090)— (3,090)
Net income (loss) attributable to common interests in Operating Company and common stockholders23,017 (16,014)(32,257)(15,157)(40,411) (40,411)
Adjustments for Distributable Earnings (DE):
Transaction-related and restructuring charges(1)
5,050 — 3,539 20,358 28,947 353 29,300 
Non-real estate (gains) losses, excluding realized gains or losses of digital assets within the Corporate and Other segment13 71 9,826 (11,666)(1,756)15,189 13,433 
Net unrealized carried interest(17,246)— — — (17,246)(41,529)(58,775)
Equity-based compensation expense2,883 212 4,840 36 7,971 1,373 9,344 
Depreciation and amortization160 25,172 5,248 265 30,845 125,064 155,909 
Straight-line rent revenue and expense61 224 (1,697)(78)(1,490)(1,466)(2,956)
Amortization of acquired above- and below-market lease values, net— (27)— — (27)17 (10)
Impairment loss— — — 12,184 12,184 — 12,184 
Non-revenue enhancing capital expenditures— (2,571)— — (2,571)(10,806)(13,377)
Debt prepayment penalties and amortization of deferred financing costs and debt premiums and discounts353 940 448 16 1,757 3,481 5,238 
Adjustment to reflect BRSP cash dividend declared— — (4,660)— (4,660)— (4,660)
Adjustments attributable to noncontrolling interests in investment entities— — — — — (91,676)(91,676)
DE from discontinued operations— — — (5,958)(5,958)— (5,958)
After-tax DE$14,291 $8,007 $(14,713)$ $7,585 $ $7,585 













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
10

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 June 30, 2022; and unaudited)Digital IMDigital OperatingCorporate and OtherDiscontinued OperationsTotal OP pro rata share
After-tax DE$14,291 $8,007 $(14,713)$— $7,585 
Interest expense included in DE2,433 6,327 5,382 — 14,142 
Income tax expense (benefit) included in DE1,991 32 (4,685)— (2,662)
Preferred dividends— — 15,759 — 15,759 
Earnings of equity method investments— — (6,982)— (6,982)
Investment costs and non-revenue enhancing capital expenditures in DE(201)3,287 — — 3,086 
Adjusted EBITDA$18,514 $17,653 $(5,239)$ $30,928 


























 DigitalBridge | Supplemental Financial Report
11

IIIa. Capitalization - Debt Summary
($ in thousands; as of June 30, 2022)
Consolidated debt
Payments due by period(1)
20222023202420252026 and afterTotal
Investment-level debt:
Digital Operating - Fixed$3,116 $219,792 $600,753 $700,000 $2,119,690 $3,643,351 
Digital Operating - Variable9,000 278,250 446,517 100,000 $833,767 
Total Digital Operating3,116 228,792 879,003 1,146,517 2,219,690 4,477,118 
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — 70,000 70,000 
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 
Other - Variable (2)
— 136,500 31,500 — 224,681 392,681 
Other - Fixed (2)
— — — — 94,053 94,053 
Convertible/exchangeable senior notes— 200,000 — 78,422 — 278,422 
Total consolidated debt (3)
$3,116 $565,292 $910,503 $1,224,939 $2,908,424 $5,612,274 
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$409 $28,859 $78,879 $91,910 $379,462 $579,519 Fixed2.4%3.6
Digital Operating - Variable— 1,799 59,192 89,259 19,990 $170,240 Variable6.0%2.9
Total Digital Operating409 30,658 138,071 181,169 399,452 749,759 3.2%3.4
Corporate and Other debt:
2021-1, A-1 Variable Funding Notes— — — — 70,000 70,000 Variable4.8%4.2
2021-1, Class A-2 Term Notes— — — — 300,000 300,000 Fixed3.9%4.2
Other - Variable (2)
— 136,500 31,500 — 127,015 295,015 Variable3.1%3.7
Other - Fixed (2)
— — — — 53,169 53,169 Fixed6.5%6.9
Convertible/exchangeable senior notes— 200,000 — 78,422 — 278,422 Fixed5.2%1.4
Total DBRG share of debt (3)
$409 $367,158 $169,571 $259,591 $949,636 $1,746,365 
Digital and Corporate Net AssetsConsolidated amountDBRG OP share of
consolidated amount
Cash and cash equivalents, restricted cash and other assets$1,091,322 $375,661 
Accrued and other liabilities and dividends payable896,543 320,033 
Net assets$194,779 $55,628 
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. In June 2022, DigitalBridge acquired the mobile telecommunications tower business of Telenet Group Holding NV, funded with debt financing and equity, including an equity commitment from the DigitalBridge balance sheet. The Company consolidates this investment within its financial statements. DigitalBridge intends to subsequently transfer its ownership to a fund affiliated with its investment management platform.
(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 June 30, 2022)
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$70,000 
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 August 3, 2022, 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
13

IIIc. Capitalization - Convertible/Exchangeable Notes & Perpetual Preferred Stock
($ in thousands; except per share data; as of June 30, 2022)
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$2.30 434.7826 34,097 
5.0% Convertible senior notes200,000 April 15, 20235.00% fixed15.76 63.4700 12,694 
Total convertible debt$278,422 


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 Callable
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



https://cdn.kscope.io/710cbf890bf5bb5376cdd52684b266da-orgchart.jpg
 DigitalBridge | Supplemental Financial Report
15

IV. Assets Under Management
($ in millions)DBRG OP Share
Segment6/30/223/31/2212/31/219/30/216/30/213/31/2112/31/209/30/20
Digital Investment Management$45,296 $44,517 $43,619 $36,337 $33,551 $30,711 $28,577 $22,237 
Digital Operating1,466 1,460 1,233 1,157 1,093 1,073 1,087 724 
Other (1)
2,348 1,848 6,427 11,880 13,790 14,397 22,300 23,853 
Total AUM$49,110 $47,825 $51,279 $49,374 $48,434 $46,181 $51,964 $46,814 





































Notes:
(1)    June 30, 2022 includes $1.2 billion of non-digital assets.
 DigitalBridge | Supplemental Financial Report
16

V. Digital Investment Management

($ in millions)
AUM DBRG OP Share6/30/223/31/2212/31/219/30/216/30/213/31/2112/31/209/30/20
DigitalBridge Partners I$5,988 $5,766 $6,180 $6,180 $6,003 $5,931 $6,089 $5,686 
DigitalBridge Partners II10,739 10,687 10,430 8,005 6,431 4,775 3,241 — 
Separately Capitalized Portfolio Companies7,402 7,111 6,882 10,147 10,254 9,893 8,947 8,273 
Co-Investment (Sidecar) Capital20,200 19,907 19,311 11,417 10,273 9,591 9,857 8,181 
Liquid and Other Strategies967 1,046 816 588 590 521 443 97 
Digital IM AUM$45,296 $44,517 $43,619 $36,337 $33,551 $30,711 $28,577 $22,237 
FEEUM DBRG OP Share6/30/22 Annual IM Fee Rate6/30/223/31/2212/31/219/30/216/30/213/31/2112/31/209/30/20
DigitalBridge Partners I1.10%$3,048 $3,034 $3,215 $3,040 $3,081 $3,179 $3,756 $3,756 
DigitalBridge Partners II1.18%7,996 7,996 8,001 7,146 5,519 3,964 3,217 — 
Separately Capitalized Portfolio Companies0.81%2,401 2,372 2,148 2,576 2,576 2,534 2,777 2,603 
Co-Investment (Sidecar) Capital0.53%4,651 4,370 4,105 3,184 2,817 2,744 2,655 2,042 
Liquid and Other Strategies0.42%933 1,013 786 510 512 432 437 153 
Digital IM FEEUM0.92%$19,029 $18,785 $18,255 $16,456 $14,505 $12,853 $12,842 $8,554 
($ in thousands)
Digital IM FRE2Q221Q224Q213Q212Q211Q214Q203Q20
Fee income$44,758 $43,155 $43,145 $37,751 $33,304 $28,917 $24,191 $19,172 
Fee income, other (1)
355 523 8,787 12,809 8,996 2,148 862 876 
Other income530 251 273 483 84 54 183 87 
Compensation expense—cash(17,725)(17,675)(16,275)(16,933)(14,426)(10,852)(18,353)(9,414)
Administrative expenses(4,794)(4,012)(3,446)(2,675)(2,337)(2,067)(2,310)(1,832)
Exclude: Start-up FRE of certain new strategies2,335 2,362 2,306 2,224 2,059 1,938 1,842 1,842 
Digital IM FRE (2)
$25,459 $24,604 $34,790 $33,659 $27,680 $20,138 $6,415 $10,731 
DBRG OP share of Digital IM FRE(3)
$20,759 $16,989 $23,757 $22,922 $19,470 $13,583 $3,893 $8,148 


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 a reconciliation of net income / (loss) to Digital IM FRE, please refer to the Appendices section of this presentation.
(3)    In May 2022, DigitalBridge acquired Wafra’s 31.5% ownership in the Company's investment management business, which Wafra initially acquired in July 2020. DigitalBridge is now is now entitled to 100% of the Company's investment management Digital IM FRE.
 DigitalBridge | Supplemental Financial Report
17

VI. Digital Operating

($ in millions, unless otherwise noted)
Portfolio Overview6/30/223/31/2212/31/219/30/216/30/213/31/2112/31/209/30/20
Consolidated amount
Asset(1)
$8,429 $8,397 $7,624 $7,211 $6,736 $6,633 $6,248 $4,925 
Debt(2)(3)
(4,477)(4,479)(4,217)(3,817)(3,374)(3,369)(3,227)(2,546)
Net Carrying Value - Consolidated$3,952 $3,918 $3,407 $3,394 $3,362 $3,264 $3,021 $2,379 
DBRG OP share of consolidated amount
Asset(1)
$1,466 $1,460 $1,233 $1,157 $1,093 $1,073 $1,087 $724 
Debt(2)(3)
(746)(746)(661)(588)(529)(528)(536)(355)
Net Carrying Value - DBRG OP share$720 $714 $572 $569 $564 $545 $551 $369 
DBRG net carrying value % interest18 %18 %17 %17 %17 %17 %18 %16 %
($ in millions, unless otherwise noted)
Operating Metrics (4)
6/30/2022 2Q223/31/2022 - 1Q2212/31/2021 - 4Q219/30/2021 - 3Q216/30/2021 - 2Q213/31/2021 - 1Q2112/31/2020 - 4Q209/30/2020- 3Q20
Number of Data Centers8278787676763232
Max Critical I.T. Square Feet2,317,8271,980,3171,949,1441,819,9461,809,9431,791,7811,138,0481,137,866
Leased Square Feet1,817,1011,608,3781,552,5171,467,4201,439,2911,423,322967,879945,640
% Utilization Rate78.4%81.2%79.7%80.6%79.5%79.4%85.0%83.1%
MRR (Annualized)$892.0$812.3$790.4$773.1$750.2$743.0$442.0$374.0
Bookings (Annualized)$56.5$14.2$15.3$16.6$16.4$23.0$6.0$9.4
Quarterly Churn (% of Prior Quarter MRR)1.7%.9%1.9%1.3%1.3%1.3%.8%.8%













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 second quarter 2022, in addition to debt presented, the Digital Operating segment has $139 million consolidated, or $25 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 EBITDA2Q221Q224Q213Q212Q211Q214Q203Q20
Consolidated amount
Total revenues$227,687 $202,522 $189,938 $194,966 $189,093 $189,202 $127,546 $98,549 
Property operating expenses(94,744)(84,003)(78,950)(80,226)(77,140)(79,862)(47,224)(37,544)
Compensation and administrative expenses(29,139)(26,855)(28,879)(29,766)(28,488)(25,947)(16,982)(11,863)
Investment expenses(5,487)(8,016)(5,153)(4,862)(5,255)(6,565)(3,329)(2,362)
Straight-line rent expenses and amortization of above- and below-market lease intangibles(236)(377)370 482 (98)(399)(2,607)(2,106)
Compensation expense—equity-based752 752 1,918 308 308 308 728 148 
Installation services— — 2,097 (4,058)576 880 429 (65)
Transaction-related and restructuring charges2,400 4,636 3,188 4,042 2,999 4,670 1,155 420 
Digital Operating Adjusted EBITDA - Consolidated (1)
$101,233 $88,659 $84,529 $80,886 $81,995 $82,287 $59,716 $45,177 
DBRG OP share of consolidated amount
Total revenues$41,448 $36,882 $32,464 $33,771 $32,624 $32,741 $21,013 $15,600 
Property operating expenses(17,649)(15,614)(13,740)(14,115)(13,690)(14,165)(7,911)(6,026)
Compensation and administrative expenses(6,246)(5,752)(5,457)(5,615)(5,350)(4,888)(3,276)(2,310)
Investment expenses(793)(1,169)(732)(709)(819)(1,090)(433)(290)
Straight-line rent expenses and amortization of above- and below-market lease intangibles246 195 244 295 247 192 (250)(154)
Compensation expense—equity-based164 164 384 62 62 62 146 30 
Installation services— — 419 (812)115 176 86 (13)
Transaction-related and restructuring charges473 791 618 759 587 920 245 77 
Digital Operating Adjusted EBITDA - DBRG OP share$17,643 $15,497 $14,200 $13,636 $13,776 $13,948 $9,620 $6,914 









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

VI. Digital Operating

($ in thousands)
Capital Expenditures
Consolidated amount2Q221Q224Q213Q212Q211Q214Q203Q20
Non-revenue enhancing capital expenditures$13,377$7,418$6,410$7,387$4,423$1,220$1,416$1,551
Revenue enhancing capital expenditures101,10084,66894,01842,84140,46034,65237,53420,423
Total capital expenditures$114,477$92,086$100,428$50,228$44,883$