Bridge Investment Group (BRDG) Q1 2025 earnings summary

Executive summary

• Reported GAAP net loss of $37.6 million for Q1 2025, with a loss per share of $0.37, impacted by $16.6–$17.0 million in merger-related transaction costs.

• Total revenue declined 6% year-over-year to $96.3 million, with decreases in fund management, property management, construction management, and transaction fees.

• Fee Related Earnings to the Operating Company fell 28% year-over-year to $24.6 million; Distributable Earnings dropped 47% to $17.0 million.

• No quarterly dividend declared for Q1 2025 due to the pending Apollo merger; a final dividend is expected prior to closing.

• Entered into a definitive merger agreement with Apollo Global Management in February 2025, with an estimated equity value of $1.5 billion; transaction expected to close in Q3 2025.

Financial highlights

• Gross AUM reached $49.4 billion as of March 31, 2025, up 3% year-over-year but down 1% sequentially; Fee-earning AUM was $22.0 billion, down 1.5% sequentially.

• Capital raised in Q1 2025 was $0.2 billion, up 4% year-over-year; capital deployed was $0.6 billion, up 73%.

• Realized performance allocations decreased 64% year-over-year to $4.7 million.

• Q1 2025 distributable after-tax earnings per share was $0.09, down from $0.17 in Q1 2024.

• Dry powder stood at $3.1 billion at quarter-end.

Outlook and guidance

• Company expects to declare and pay a final dividend related to tax distributions before the Apollo merger closes.

• The Apollo merger is expected to close in Q3 2025, subject to customary conditions and approvals.

• 68% of fee-earning AUM has a remaining duration greater than 5 years, supporting long-term fee visibility.

• Management anticipates continued headwinds in the commercial office sector, with no management or administration fees recognized for BOF I and reserved fees for BOF II.

• Federal Reserve rate cuts in late 2024 and expected further cuts in 2025 may improve market conditions, but fundraising and capital deployment remain challenged.