DigitalBridge Q1 2025 presentation: Fee-related earnings surge 79% as FEEUM grows

Introduction & Market Context

DigitalBridge Group, Inc. (NYSE:DBRG) released its first quarter 2025 earnings presentation on May 1, 2025, showcasing strong financial performance and continued growth in its digital infrastructure investment platform. The company reported significant year-over-year increases in key metrics while emphasizing the resilience of digital infrastructure as an asset class amid varying market conditions.

CEO Marc Ganzi expressed satisfaction with the quarter’s results, stating that the company is pleased with its "strong financial performance and fundraising," highlighting "the resilience of digital infrastructure and secular demand for compute and connectivity."

The presentation positioned DigitalBridge as a leader in digital infrastructure investment, with a diversified portfolio spanning towers, data centers, and fiber networks, supported by a growing credit strategy.

Quarterly Performance Highlights

DigitalBridge reported impressive financial results for Q1 2025, with Fee Revenue reaching $90.2 million, representing a 24% increase year-over-year. Fee Related Earnings (FRE) showed even stronger growth, climbing 79% year-over-year to $35.0 million, with an FRE margin of 39%.

As shown in the following detailed financial results table:

The company’s Distributable Earnings totaled $54.7 million ($0.29 per share), a substantial increase from the same period last year. Total (EPA:TTEF) revenues were reported at $45.4 million, with a GAAP net loss attributable to common stockholders of $0.9 million ($0.01 per share).

DigitalBridge’s Fee Earning Equity Under Management (FEEUM) grew to $37.3 billion, up 15% year-over-year, driven by organic fundraising. The company formed $1.2 billion of new capital during Q1 2025, a 2% increase compared to Q1 2024.

The following chart illustrates the growth in FEEUM and new capital formation:

The company maintained a solid balance sheet with $201 million in available corporate cash and full availability of a $300 million revolver. DigitalBridge reported funding $9.0 million of GP commitments during the quarter and declared a common stock dividend of $0.01 per share.

Strategic Initiatives

A key strategic development highlighted in the presentation was Zayo’s acquisition of Crown Castle (NYSE:CCI)’s fiber business for $4.5 billion. DigitalBridge noted that Crown Castle’s metro-focused fiber network is highly complementary to Zayo’s long-haul fiber network, creating a combined footprint of 237,000+ route miles of fiber across the United States.

The strategic acquisition is illustrated in the following map:

DigitalBridge also emphasized its credit strategy, aiming to grow Loan Assets Under Management up to $2 billion in 2025. The company is focusing on raising capital, closing loans in its near-term pipeline, expanding its team, and using Separately Managed Accounts (SMAs) to scale AUM and its loan book.

The presentation highlighted the company’s experienced credit investment management team, comprising over 30 operating partners and senior advisors with an average of approximately 30 years of industry experience:

Market Positioning and Outlook

DigitalBridge positioned infrastructure as a resilient asset class with an attractive low-volatility, high-return profile. The company emphasized that private infrastructure offers relatively low volatility without sacrificing returns, even in low-growth cycles, supported by contracted, long-term cash flows.

This positioning is illustrated in the following chart comparing infrastructure performance to other asset classes:

The presentation also addressed the current macroeconomic environment, noting both short-term challenges and long-term opportunities. Short-term impacts include potential delays in LP decision-making for fundraising, customers pausing to assess impacts for new business/CAPEX, and possible supply chain disruptions affecting data center build costs (+3-7%).

However, the company emphasized long-term benefits, including asset class resilience, ability to attract capital through cycles, long-duration contracts, and secular demand for digital infrastructure:

Forward-Looking Statements

Looking ahead, CEO Marc Ganzi outlined three key priorities for 2025:

1. Fundraise: Achieve $40B+ of FEEUM, finalize flagship DBP Series and Credit fundraisings, launch new digital energy and data center strategies, and develop a second ’private wealth’ offering.

2. Invest - Portfolio: Deploy $18B+ and support the next phase of AI buildout, edge, and rest-of-network infrastructure.

3. Scale-DBRG: Deliver double-digit revenue growth and continue expanding margins.

These priorities are visualized in the following slide:

The company’s business update highlighted its continued benefit from digital infrastructure investments, with strong financial performance and solid revenue and earnings growth. DigitalBridge emphasized its strategic growth across its portfolio, particularly noting Zayo’s acquisition of Crown Castle’s fiber business.

DigitalBridge’s Q1 2025 presentation demonstrates the company’s continued execution of its digital infrastructure investment strategy, with strong financial performance and strategic growth initiatives. The emphasis on infrastructure as a resilient asset class, combined with the company’s diversified portfolio and expanding credit strategy, positions DigitalBridge to capitalize on the ongoing digital transformation and increasing demand for compute and connectivity infrastructure.

Full presentation:

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