Bridge Investment Group (BRDG) Q3 2024 earnings summary

Executive summary

• Reported GAAP net income of $10.6 million for Q3 2024, reversing a net loss of $17.9 million in Q3 2023.

• Distributable Earnings were $28.2 million, or $0.15 per share after-tax, a 31% decrease year-over-year.

• Declared a quarterly dividend of $0.10 per share, payable December 20, 2024.

• The firm believes the real estate market has bottomed and is seeing increased investor engagement and deal activity.

• Market headwinds, especially in the commercial office sector, led to credit losses and reduced fee income from certain funds.

Financial highlights

• Total revenue for Q3 2024 was $101.5 million, down 4% year-over-year.

• Fee Related Earnings to the Operating Company were $32.4 million, down 10% year-over-year.

• Gross AUM stood at $49.2 billion and Fee-Earning AUM at $21.8 billion, both flat year-over-year.

• Capital raised in Q3 2024 was $607 million, up 102% year-over-year.

• Distributable earnings per share decreased by $0.04 from last quarter, impacted by insurance losses and higher reserves.

Outlook and guidance

• Management expects deployment opportunities to increase in coming quarters as transaction volumes recover.

• Fourth quarter fundraising is expected to be stronger than Q3, with logistics and debt strategies as key contributors.

• Management remains optimistic, citing strengthening commercial real estate conditions and early signs of recovery in volumes and valuations.

• Majority of dry powder ($2.9 billion) is allocated to Multifamily, Secondaries, Credit, and Workforce & Affordable Housing vehicles.

• Compensation expenses are expected to grow as the firm invests in talent to support anticipated growth.