Bridge Investment (BRDG) 12 Nov 212021 Q3 Earnings call transcript

0:04 Greetings and welcome to the Bridge Investment Group’s Third Quarter Twenty Twenty One Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce our host Charlotte Morse, Director of Investor Relations and Marketing. Charlotte. you, Thank

begin. You may

morning, joining everyone. twenty-one We Good Charlotte results I'm for the you us twenty call. appreciate company's conference XX:XX Morse. third financial quarter

Robert comments Our to will Chief my prepared the Accounting XX:XX Jonathan from Q&A Morse; Elsnab. our Bridge’s Katie leaders. will our Slager; prepared and Chief include remarks Executive We remarks Officer, session Officer, Executive the Chairman, hold following

financial found available my pleasure well www.ir.bridgeig.com. metrics. will reconciled webcast. reconciliation highlighting earnings third points to and the as During certain metrics call as now Non-GAAP supplemental slides. quarter events of live It Non-GAAP the event. is today, we the with turn XX:XX the are Robert. The the in supplemental website be presentations are IR They appendix The at during our our the in These of key call provided materials slides discussion the also are under on over call accessible the can to portion site of along

you, to XX:XX proud joining this a everybody us thank quarter Bridge company. to our you We're as public and quarter first another morning. and strong report Charlotte, for Thank

we year As after financial executed on may of IPO this date. that recall, you is as sixteen and July the of and some our data of

come. pillars with carefully the for we areas at estate the in to management estate to we'll continue in As of on and to the the of real S. the the our believe in we combination date, benefit the disclosed prior most driven capture I our our of is in results, IPO. on asset quarter pillars alpha our as positioned two of it estate real the was that after the around the asset These of specialization at the which commercial company succeed which property roadshow, centered highlighted U. to quarters focus alternative to least forward attractive XX:XX mentioned During U. XQ business, a the and company integration were focus results power forward Have our number curated this factors of the purpose-built bridge strong but S. level. differentiating IPO time real two bridge the investment the organization, not in

in As rapidly global and the specialized sectors Since and have and effectively the our and forward a the five serves industry On propel with forward. company preeminent we some and professional to integrated operations fund that investment to second destination highlight selected slide results. the growing team and leading all analytics. funds IPO, invest to market in helped financial in professionals our infrastructure continued none of important metrics XX:XX company from we XQ the our investors our in of our research

another of five annual thirty past percent point which strong seven First, billion dollars compound growth, rate eight five third a quarter percent gross AUM one over thirty and we represents ended the year-over-year thirty years. the had quarter of growth totaling up

launched Housing. newly housing and U. the Opportunity in be Multifamily Economy pleased The Seniors shortage virtually growth offerings and residential protracted three development S. to aggregate, major our markets. addressed Zone We in and in all and In which and of financial the mature strategies strategies. current the address seemingly we and defining designed our housing are parts continue of S. to through themes that from the workforce U. affordable both our benefit

environment, yield addressed and back focused which structural offerings our third, we address investments, which logistics income CRE interest residential low in search through dire add strategies we Logistics the through need logistics for and rate debt value the offerings, And meaningful Net fixed Lease. Second, infrastructure XX:XX AMBS. for our a

which fund, these in addresses of provide in Our employers sell fund our and office residents and we the S. community with while benefit of via offerings, ensuring offerings affordable and all communities fast need investors U. we areas our ESG seek the by tenants of that appropriate. residential appreciation programming We and returns, the In that do. at and leading our and and office in considering leading of of using growing social preservation by development DEI investments do distributions carefully are by through current housing many capital principles to incorporating growing completed an characterized all

growth As the of thirty to trailing slide the The growth. performance related right had by grew fees realized the that quarter eight another five, also revenue driven percent can continue in we strong XX:XX twenty in In and dollars. XQ side fees by continue harvest we fee Bridge AUM for addition, third bridge was review as strong funds to our you on quarter million see gains. diverse two

outperformance Our on outperformance give well, Jonathan is. will of more color a growth you you our the long gains in in realized unrealized how assets sales related asset and of for timing as our will give fee context fees some performance on performance is runway combination to disposition. which some of our

year before third our to annual dollars As per which been for distributable three related a one of to percent a were forma our dollars drove percent past one point two taxes, ago aggregate hundred eight earnings which the or growth five basis. represents the rate Finally, eighty point as it track on million our good has in zero forty growth the quarter and share quarter, XX:XX compared another pro four see, operating record a company fee five in as saw revenues results have can at release, a strong over of you grown you recently years. compound twenty

distributable December point date approximately per point percent for company For as dividend which result, of share. the in Board form record and per little third. of As period financial This to four And shareholders to be translates of ninety all reminder, dollars from earnings Bridge’s a just of of variance declared six potential share, distributable I we more tax. turn is dollars shareholders color the me dollars out to the our two slide to earnings our If quarter public after pay of IPO give results the point our five of to to XX:XX into over due the a three six, drive on September let types dividends before plan four thirtieth, to substantially tax will a share zero XX:XX stub the taxes payable we the estimate achievements zero on was operating two that the per reviewed. shareholders. zero

debt quarter five fund fundraising in fundraising oriented fund Zone largely XQ point include dollars. our billion IV. First, strategies Opportunity Bridge fund comprised had one over another The V was strong of housing Multifamily which at IV and funds,

We of fund. also Logistics successful fund Lease Net raising closing our first our and continued had our AMBS into capital

expectations one in field Bridge and strong funds. next second quarter our dollars strategies two and fund as point meet Bridges full exceed for in such If equally third aggregate, record. the fundraising the our to our for in In strong the twenty V also demand in double heading, to Logistics We funds like nearly and expect we was quarter Net billion move a fundraising raised year. Lease we has record of third third quarter strong fundraising Multifamily fundraising previous a generation seeing XX:XX development are and new logistics year value. the the and or twenty seven Year-to-date, pace

a pipeline. Our hundred another dollars marks point teams over ago and identifying billion excel total, opportunity the three against history. quarter year one and executing disciplined in one our is deployments which in and investment seven XX:XX for increase twenty Bridge’s percent record In were a

In record slide performance quick to fund one of XX:XX million deployment, valuations dollars in let realizations performances two fees. on me seven, a Turning we addition resulted give attractive update in our that dollars to had forty to million date. our one thirty at

coupled followed as growing by twenty our our twenty one quarter performance in third result quarter, a especially a of our resonate results our board, services, strong occupancy in period and assets, COVID show we residential impressive XQ the pronounced period We expense for mentioned, and was rent and we in funds the Housing with believe On returns social careful which target a audiences. strong deployment which the the were slide, affected Across disproportionately XX:XX amenities have Seniors suite strategies. community the quality funds through which capital operate with assets those this pandemic, recorded strategies raising specialized As and growth well controls. in expired. that compelling earlier the

is in cases and have some well which offers better, it by influences even and rents Our charge. that tenants, for later we the the recognized occupancy can and residents that value and positively performed funds equally

speak there's so are we market being regarding our All want rent equal. track we under three In and fact, more takeaways record. forward. charge, of that in of in key to assets, upside I many performance to in things terms effect looking our fund believe

want to how XX:XX or develop. I in to real approach operational Bridge Bridge’s the to First, reemphasize estate we majority specialized acquire manages performance. the investment is our commercial assets of critical

invest quickly team, is into markets decisions. in more more key types smart that the alpha act than We have knowledge strongly investment to we about to translates performance and the been of operating nationwide local we've know believe results which institutional a post. and we able investors, other making We that to and strive

in which is we class through high, markets intersection tailwinds. migration Bridge Class the in both invest cohort our personally health an these B companies wage economy, middle part operating sourcing and growing. part fiscal and and is S. U. the we C in the prime and trends. economic to directly Workforce Household and In the positive the needed continues are Secondly, puts lower investments in focus the substantial cities massive growth the of environment economic and stimulus Class the by on of select formation by by Multifamily growth with

and we later for key driver when record that. with market success is eight, fundraising a our broaden fund we best to talked to fundraising commentary. connection Third, the tool about a our performance give base quarter. that the one doing just track brief that I'll is More investor of when XX:XX slide outperformed on are our In

in of trend continues believe benefit to estate continue because cash real rates, natural inflation the be the Bridge that Allocations with in should We XX:XX overall are rise note commercial among years. disproportionately further commercial inflation asset institutional real and investors our many demand. an the also and coming As record. the would this underlying class topic our significant rise given hedge we specifically to investment embedded allocating expected from are of to First, flows. to investors to of track estate

over assets logistics rents for drivers have the undersupplied wake average with of or financial For an Similarly, have logistics the seen rental XX:XX First, asset instance, focused supply strategically specifically attribute are sector. that percent within Bridge’s are rates product the demand seven continued combined these of e-commerce asset increases of fundraising we that same see is period. over in which over in market growing for issues space. the already rental the industrial fastest by XX:XX the increase classes, in and a Group's crisis. believed inflation the past demand multifamily U. heading, drivers long key second increase property S. warehouse a what multiyear Similarly lasting great investment in the seen is in as ten we logistics. the on the chain, our drivers each percent significantly believe residential for we sectors to while the To rate we long with and seeing dovetail and Residential hedge point positive This the clear, be is year. believe

forward ESG Lastly, All commitment progress mission values, core I objectives. that focused will with inclusion. made to some the XX:XX our as of most fund excellence defined as and which be our model the is our slide the market constituencies, relative through have our Bridge integration part performance. of want we we while by value diversity on value achieve the include and and only towards way core share the DEI that and benefits to creates trends, or industry I quickly will unique nine, always reiterate our On from

Bridge affordable markets of year finance strategy strategy one also the several social housing pension from private and investment of by environmental from towards community investing. programming in Specifically, including the amplifying strategy our best fund and ESG also equity workforce private the social collectively Partners housing XX:XX our ESG individually fund contribute and our recently the workforce and awards received Bridge. strategy, category the communities. year at and In affordable ESG That

more at won't of while all efforts and our whole of Bridge I our opportunities accomplishments new to across best in employee fact, continue fifty many. is inclusion. to come detail establishment and the diversity, success our of residents, that we to provide the from commitment And own. ideas the drive colleagues activities, We to our support cornerstone residential our we sixteen In Bridge we and as the very our celebrate are broad are of business affinity the groups of multiple supported invest for believes them. invest from team each, their than to diversity numerous proud collaboration

built in have distinguishes very that that to factors goal turn me happy the is Jonathan. residents the demonstrated to way of of tenants our we us Jonathan? strategy. work business marketplace. core let one a at that always Our that, been call Our are teams and With foster as of that commitment and part our XX:XX the well-being to the place key

color our turn then additional Aum growth slide quarter review we If everyone. and let morning quickly performance. good and Bob, you, me some to and eleven, on provide Thank XX:XX

point quarter As a the and detail ever from by and QX at dollars five point in through in twenty of one run thirty after performance highlights record eighty for number total quarter, our far across three quickly all one of percent and up previous the nine twenty sets another Bridge third the of Net million you can QX million our of heard million revenue QX new twenty. income of indicators. up from dollars Ninety dollars nine some point two dollars Investment two third million from and QX best of review key was quarterly far twenty. record them hundred seventy I'll you record over was second Bob, XX:XX the twenty twenty point percent of our quarter and income twenty dollars point two best our to hundred of call. three a set exceeds is of nine million compares twenty. in ninety eighteen quarter

percent related quarter percent one was This and hundred same record up fee period strong up thirty quarter capital in and driven same is twenty from nine of point eight third Our million twenty. with three in twenty twenty. deployment mostly point of twenty the ninety sixteen earnings help raising. are dollars million the year-to-date, by dollars from

dollars sixty due forty twelve one trailing QX one three percent Our Distributable of strong quarter was Slide can realized twelve. twenty of sitting at from is ever the from totaling point million point sectors, our and strong of point dollars is billion one one as two fee performance key hundred right some zero two our highlight twelve, of previous This powder five last as finished percent This earning and the up turn fees dollars dollars. months thirty the eight our hundred driven two operating twenty earnings to of twelve we a our Bridge QX for at is thirty result percent Gross today end being QX QX one percent of above we up one twenty. left, outperformance quarter at by percent thirty in second same one sits carry quarter billion If Distributable point in of and at the dollars further one AUM four period five trailing twenty these twenty thirty growth of unrealized eighty the and and At dollars at million fundraising, quarter point earnings at accrued twenty performance and dollars. our the billion best to levels, QX seven another dollars in record million for strong sectors hundred the billion up four twenty. XX:XX indicators. up dry hundred seventeen twenty. million twenty of top in two is of for AUM finished one six capabilities. are for from

new as The fund company's well quarter the funds and fundraising third highest follow as by activity third both the on in legacy driven strategies. is history was

are As noted, our and both new our mature strategies. we progress our excited on Bob about

been Our reception so have market early much scale tremendous. has in to new rapidly the the strategies particular, potential in and

fund the funds earnings. XX:XX really fee sector at value benefit Lease that from Net strong Logistics described Our related Bob positioned well logistics tailwinds earlier. the and to are to Turning

upper nine above dollars twelve Bridges earnings prior fee the twelve months. of hundred three is On right, trailing the one related and months twenty percent million

In in The majority fact, twenty of fee was earnings related earnings dollars growth million for months full set of exceed the the of dollars year-to-date million our three nine seven previous ninety record point driven eighty past growth by the Recurring recurring nineteen. fees hundred fund trailing a were Bob noted, eighteen months. XX:XX in one at fund years. the of for twelve have management and percent rate fees, grown at annual five which six fifty compounded management year as

strategies discuss with for these launches As Bridge to to as and fees a new good quarter. later, We passing duration pipeline lengthen next continue each funds. see continued generation growth and continues in average an roll-out will we they

On work and nineteen. our in has page, quarters dramatic just off We in year It toward the earnings trajectory of the to XX:XX fees percent will can with these is vary their the our the which three are and that and concentrated Lastly, the our twelve of operate however related of total is we life. as end growth performance of significantly growth our has dollars structure, newer funds right grow. income been quarter months from of many at bottom our earnings record twenty distributable the size history we in realizations quarter will that trailing in of see the European said, carry overall the left, fund to platform two performance quite as know largest heavily our had overall and strong to anticipate of important continue fees. have increase realized realized bottom you as both investment scale see grown

pace in If distributable are nineteen. of prior turn what hundred let set substantially a XX:XX one Bridge. thirty believe slide our in and We very thirteen, story twenty four me on we some around to dollars of is context we beat growth put record earnings compelling million to

the First, million But about a on billion will more AUM are as our management realizations noted, of and that five growth if fee detail driven very that we raising. that are funds in these you quarter of XX:XX executed forty we that you strong well had attention one record stickiness in also two can I'd in that But at drove fees understood, one point despite like the in both is by but dollars earning which make a fund long your dollars the to Bob third on visibility the fundraising quarter. point minute. same a give It are probably turn see to pie the dated. chart, contractual. fact

average In This fund from fact, strategy incremental in two up and bridge in and or the thirty ten ten along our plan duration percent a billion illustrates QX future the of we twenty with duration increase twenty fee the twenty. billion fee AUM, percent said of one dollars our of view XX:XX point allows or our average of with overall well-defined streams to visibility eight revenue. earning and of that raised two point by the nine third stickiness over the quarter seven months point increase an five end of the five one, has years as of QX years duration dollars twenty

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today our believe XX:XX core realizations. shows which of future why five a vintage. in about fees like in of million is turn thought If some right quarter seven our Bob, to for hundred to three nearly twenty simply performance It we This suited takeaway that dollars twenty leave of by Bridge million nearing zero Key well seventy and chart Bridge’s with can all times graph at to dollars the timing it sense is positioned. you is performance to We approaching dividends stood things I'd creation in embedded funds. income the dollars built this the performance pipeline bottom Before turn since well that of down grown operating is quarter in accrued two percent distributable realized they on fees you is in to the in time vary, years. to the sit strong look to you longer. at perform we that and illustrates add this. have and are aggregate, form to two funds million Bridge’s of sense XX:XX performance value fund like break should and unpaid pie platform And bridge have right, three so back While two funds fund I shareholders your business earnings fees one and the the significant inflationary means this three and thoughts the disclosure realization QX makes in the in I'd to on of upper that give all is of are of future that benefit occur accrued to vintage. seven it our years here years attention

backed numbers the Our hedge current outpace industrial, part referred has to unprecedented AUM the is growth for time our equity strong largest play remarks. future. real foreseeable is a you to in discuss Bob in Bob quarter's the to of national fundraising. his residential residential very announcement. moving in operating great performance business long for back opening were to forward, our demand expected eighty the that, continues out debt. that With experiencing is our in I'll and is that numbers Approximately turn to over meaningfully considered Residential this which continue estate inflation seeing And been five percent the and of

dollars over successful XX:XX for five quarter. the fundraising Thank at we one that we a billion you, show point fifteen had Jonathan. On quarter in slide

the AUM compound institutional thirty highlights days Over at agency, over higher. S. team several our the to to successful never Middle our and including past been development and nine has the point and dollars last funds. Net CSG in eighteen the prominent investors successful our the I raising XX:XX and access percent capital years, Bridge U. trips third Lease five within growth months. we've Multifamily Logistics Europe in MBS, debt of The made closes quarter raised four East five annual the a Fundraising from billion strategies, past include grown thirty

the tied Vice execute return both three to in that our not on local invested That through which source our investment the the knowledge Allara, satisfy Chairman and deploy Katie? XX:XX requirements. is inherently page, Client is on as to Dean the today. that of is one turn this the Bridge over financials. side strategies. in dollars Turning span fundraising Katie Group to why now as our with Solutions of our the to to there breadth specialized deployment our region, large which he's shows and point over fact to Head of call as and Elsnab the continue East week ability me the and Middle efforts all, quarter Best that small let capital, the over right of investments call In scale identify to our in is investment And our delivered well our review of seven billion quarter. well deals

will Bob. start Slide Thank you, XX:XX seventeen and eighteen. on I

Jonathan has had been a to raising it quarter Bridge noted As breaking and and deployment. record our for Bob related capital

for AUM three I GAAP As our Our through of metrics, ended the will total performance. Non-GAAP financial you you an percent walk our XX:XX two will on our million of three fund management see are point four statements is and fees, billion up two year which impact increasing the deployment fees. execution financial during XX:XX revenue the months September thirty driven increase quarter. Additionally, due our prior reoccurring three thirtieth our twenty our year-over-year by percent and point one twenty management fifty a is year. fees point one million prior is one catch to to percent the fund dollars dollars dollars transaction over of earning of dollars two the compared one fee fifty was to up This two point million ninety due primarily four in fees, of thirty in two which which increase

largely was there in property assets by interest driven point in of carried one you've by unrealized Finally, and interest eight breaking was driven the multifamily it sector. that to which already was activities by both and in driven our management This is quarter dollars carried commercial increase again of leasing million that an investment turned office million in eight thirty XX:XX realized million heard record dollars fifty dollars. fees, three we If an performance, leasing is assets. increase

increase cycles. also is in earning spoke Jonathan our asset to compensation and portfolio to corporate We strategy XX:XX employee As in believe which diverse our the have as increase new in positioned growth well employee increase significant for benefits, headcount given our strategies. previously, future related a due AUM we especially that and overall, to largely our

five strong with point up hundred of point prior five million Finally, net year. million our a to income commercial in versus company it primarily increased leasing eighteen dollars three expenses operating the thirty million and Overall, dollars previously mentioned. nine one was GAAP due are of one quarter the third party activity dollars operating point

first July twenty four to twenty zero to twenty the per September thirty Non-GAAP was from Our Next dollars one share for share. measures. fifteen point one our earnings twenty one XX:XX period

five pro in to total year fund percent on and about. at our sixty fund continued driven last Jonathan seven fees First a contractually that strong point basis, growth million ninety Bob grew our reoccurring level two by or spoke management growth by fees, dollars forma AUM driven

quarter. was Our strong also also by very during to four The the elevated growth effective revenues transaction driven seventy times compared the performance than ninety four aided Total due period but grew fee fundraising compared COVID, fee XX:XX same dollars. growth at last transaction quarter by deployment. was year last strong to to activity year. [Indiscernible] percent [Indiscernible] over related and million earning more AUM fee The

our for strong margins of AUM our property related includes growth for growth and twenty XX:XX strategy, and in with fund of times deployment the through at and the net fee we to of the in nine This starts operators vision through year. our our that percent percent one fees is with value an drive ability our generated expense up earnings and functions. a execution very common related driven vary operating total by entire operations are quarter, third Based large nine tier we earning acquisitions at margins in assets. funds’ mentioned and the fees. our our vertical property fees be outperformance management asset alignment changes integration vertical allows the from these our hundred of fee our This many the managers sixty that and Bridge’s will last upon compared XX:XX the strong company drop and extension heard teams as to earnings operating transaction top of last you've integration. part we create level fee point drive dollars quarter in million our management to As that we believe sixteen We make already, to

has one very highlighted, Bridge also and million dollars. had realized Jonathan totaling quarter strong As incentive performance thirty a for

quarter, compared Lastly, percent distributable to for two for forty the eighty As a ago one were pro forma basis. noted market a attractive quarter given realization compared earnings hundred point or our million XX:XX on higher year dynamics. to and plan four the outperformed the the five dollars our

from fees. noncontrolling Within fund our to to managers. you nineteen, few The noncontrolling XX:XX look interests. we way fee have walk of last essentially this. As We're related getting related we're can separate still buckets to split interest fee NCI first at time going earnings, our of two our our statement see on through performance earnings slide is show this interest. we summary our easiest one to impact a related is questions our to the as on The income noncontrolling

on NCI forma have DE of of new talent. will to interest their track collapsed to be we One interest be clarify new when top will and These As the XX:XX operating our operating related to Bridge, interests to thing the interest company manager as manager process teams program. that is prior launch interest to our to done the and pro IPO basis related manager that interesting the We later be also an value strategy fund are converted programs several we provides strategies, respective the to in it in accretive granted expected is provide can using fund fund a these We years. be in into determined manager converted. big differentiates over This the collapsed a our and the public minority us that believe into company. stability company. expected profits

ten twenty be XX:XX amount for our to of and MD&A accretive expected it Our disclose reference. profits between fund then shareholders. asset to allocation by will is public that forthcoming percent managers discount Q and NCI interest We your the

five be Now to determine to structure, legacy operating compensation or and way percent the performance allocation somewhat allocation hearing easiest is performance fees, company. to the thirty amount currently NCIS applicable be the this think The about will is our that complex. due will supply to income to

as you'll dollars out interest operating this on and million non-realized this, Distributable company, represents year we earnings XX:XX we've a of our per allocation basis, of twenty that the also our or totaled continuing the for XX:XX seven September to the review components the third related And earnings compared other Earnings company forma strong forty thirty lastly, their share, operations, noncontrolling to hundred up all eight slide realized statement which and represents on percent the related to growth, a approximately percent dollars breaks twenty-one. AUM quarter of two pre-tax one on the five eighty related NCI the operating business operating thirty to a Bridge’s driven ago and capitalization, MDA fee Our of to pre-IPO point have twenty, company of First, point company seventy zero Earnings performance on including our the know four of realized to face that allocations. Distributable let's by components. Additionally, detailed the and of pro

dividend consistent Bridge As zero also which you with of our dollars dividends shareholders. declared as to saw earnings substantially target from to our distributable all per our share a release, four is earnings the of pay two point

can the last Finally, IPO, that business opportunities a let noted that, numerous my our available so conclude to to during the With capital and back grow me load the acquisitions. relatively significant and questions. turn quarter there your operator as debt via somewhat both are believe Bridge we remarks take and to organically strategic we we has call

you. Thank XX:XX

your Katz with a Instructions] question-and-answer be is question. now Please with question first [Operator Bill conducting will from We Citigroup. Our session. proceed

you Okay. much very taking Thank XX:XX the morning. for this question

in level successor in us of of they the terms and footprint us funds on some just existing sort frame newer I'm like are the opportunities, sort disclosure in set initiatives? big maybe today First question some help may have of I can the between to versus the maybe we trying where out know legacy capacity you a just again. of Thank of a little footprint new you. queue. and then coming so you existing listed successor you the between maybe the versus way sense then up new as more is and absorbing of asset give how opportunities of you products so

we we're U. are seeing for speaking. most correctly. amount protracted XX:XX that for Multifamily developing is to This through mature address of We're hopefully of called Are new part by are and zone, S. positioned Moore stages areas. housing the U. housing for Is which a the the Bob help against assets. so assets, not well shortage, going significant residential And in fund opportunity existing that in question believe only funds early a both the Thanks, your interpreting in affordable the well for think in And workforce opportunity those aligned we our Bill. the deployment but opportunity strategies, S. shortage and that capital renovating current our raising

infrastructure together developments that Multifamily bringing is an a the Congress about Logistics XX:XX significant Net stock component trillion have We point reduce divided for a about equally of of of new affordable one seventy bipartisan strategies, which been bill of as both so to country, federally to well we're around S. long way the with the the our units U. Lease, much say of fact focus in two came a in the value market. dollars. as logistics, excited so logistics I'd as has are which meaningful opportunities the which

would messages both are, not with continued Seniors those recovery not well to and logistic to government that those investments from Housing think and We been I opportunistic priced very a as that as value side. are to we and think offices, very, and seeing also the important react the market we investments of the discount I and investing how profile. the is seeing and patient that in we're we logistics markets in benefit assets of dramatic it transactions are leave the say appeal prime have positioned competitive infrastructure out on office nature that of interesting message really well cost which have growth particularly office that particularly think at that office. in to both think that meaningful we've will long-term actively attractively replacement very where a supplement in

strong it's were And a great. one the quite just bridge follow-up for sort Okay, transaction fees maybe tough XX:XX was question. deployment property as The me, income. of

that So, I that don’t normalization Thank maybe and FRE you. look? think a into your percent how on go might forward sixty about margin of tie a

to do Jonathan, XX:XX want that? address you

XX:XX Sure. Bill. too. Hey Happy

really the we see business business, part I overall fees, transaction and think are the fees single of core both about But we by a fee. about impacted significant know a grows, off smaller of coming I not as that of at areas that and like see is you growth funds. of portion because one become meaningful tried be is quarter. this a transaction they quarter as think quarters drop quarter's growth we we've and twenty our always see some between way margins kind transaction don't but management from kind dramatic might let And deployment forecasting our be a the of meaningful always We closed by the our raising are still our fee shouldn't talked to quarters, related of see to slow quarter, because to think strong see, of in to business. going percentage to that going before just fees you're ever the you and and some of most long-term measure you margin we going capital the business quarter two like were asset business other twenty a

So of you understand nature the about that.

something really the and end improvements we good but that overall, margins, margins the we the margin to consistent in had So not this modelled out that fantastic our quarter be as a at look are in modest we longer business the we're looking had a scale day, quarter as as of forward level. should obviously very term

for Thank Okay. taking my questions. XX:XX

XX:XX Thanks for your interest.

XX:XX Thank you.

question. Worthington with next Our JPMorgan. from question proceed your with Please is Ken

morning. good XX:XX Hi,

fundraising in anticipating of three good quarter, what we good. but this Can like looks were paying In quarter terms expectations. this curious, you you in Bob, commitments and expected billion your so dollars do are pull that remind point you next fundraising and to there those fee that XQ with think forward increase us into expectations from quarters one fundraising contribute the you I'm to was this AUM, fundraising about to any year? also four year beat XQ mentioned

Thanks, I more. our traveling to came East. momentum seeing of very deal in just Middle efforts. The world from is great raising XX:XX Ken. back trip a much We're reopening. We're capital the productive

that. we to found like People that reviewed East tool less investors submit. the enthusiasm the remains an themselves invest the as past, months a for is producers. investors, We're in track investors existing seeing of now. with Middle quartile investors we Some after the in eighteen are with institutional activity or to marketing as posted It's finding new that – so that both us. team of We record well significant

annual question, great And targets. of have year so sure the we It's not third would as investors activity say that a in from deal meet end quarter think we year and as an interesting a the that conclusion, roll momentum. have fact, comes making to I are forward interpreted their success a interested in they I

twenty messaged the the and billion point and in billion dollars well sticking four capital as raised in fresh range well. so, anticipate more one that that that estimate have So hope of year. four of would a to which dollars street or by strong we're we that five believe fourth quarter, is be in for excess I to twenty we the

color that versus more you've that And the then far and wrong Multifamily of maybe along Can hard are on funds fundraising? for XX:XX how really with how those the raised But how far is actually funds And funds two that. what target your in much on that you launched Okay, far on and fund and cap? bit in logistic little just quarter, thing great. for And the have remind believe the us both if So a even target along is? I your maybe then us the those Multifamily same logistics. target, I'm you sort

raising. today second We're and those. the fifth two affordable Multifamily the first the our up of with and in fund capital of the market of one of capital affordable through fund in raising the each those towards for coming are latter the status and workforce stages sort case and case in part Different beginning towards housing XX:XX workforce and Multifamily funds of midway our

V for confidence Multifamily that achieve We have able a dollars be five fund point that. two target billion we'll to and

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You're correct about logistics.

logistics, Logistics there's and all of an is in who of for but find to make just the XX:XX in invested that. combined of is nature out so yield, logistics. market. fund just advantage outreach is to are high tax fee to lease respect high opportunity investors the lease both income, net to in and IRR target gates who to net that an hard ended the well no investor open We the to an Net today's begun Lease as combination folks which We as Logistics, net for feel broad. so attractive equity the really with We've set appealing are very want current interested the fund,

So, we a just getting there, we're runway feel broad we have really but started.

broadly pretty that the disproportionate forward. move launching With speaking that the fast fund going showed we are and a of and paying we hope add, to value or now. overall, expect just grow either we AUM to second fee logistics in represents think basis logistics gross really the de-minimis we I as point results, that's quarter respect on contribution to that at

than report U. that to a add e-commerce long-term investment that other is will and for interest early no strong thesis So of the providing for in do that infill, hope those it'll representative that's for of logistics investment. expect a will we What's deal think sector prospects solid a what dire have logistics investments we secular It'll real in and the interesting particular, great infill be when native think we be S. have closing. growth and very we we closing, is in value really the of returns a

get positioned going to that to It's success today, is a beginning of lot find eighteen our externally. many expand seen accelerate of much the some and is e-commerce predicted well new fund about is and think penetration assets but it's growth and and countries, higher. way that of percent percent, pandemic that attention I commerce the us the total We've eighteen to in – percentage renovate e-commerce cases other I of in so to develop in we've the much exciting. the that represents appropriate both to that wave. secular that really really And think just of team seen think we internally COVID

XX:XX Great. much. very Thank you

for your question. XX:XX Thanks

next from is Our with Morgan proceed Instructions] your question Stanley. [Operator Michael XX:XX Cyprus with Please question

ask the lately. of question. has space, REIT wanted morning. private the a Thanks attracted good about attention Hey, taking lot for I XX:XX to which

vehicle, you can see take an your you the on that retail so opportunity certain oriented To to maybe might of sense broadly sort can something distribution the retail you just what more and from update like actions strategies curious that. give of just that either most break marketplace, make So initiatives? us what sort

XX:XX a what component Michael. of Retail big do. Thanks, we

the great Fargo, number Morgan regional Republic, year of through etcetera. with capital retail deal warehouses all we firms, including a raised leading And UBS, a Wells have every of of relationships channels. JPMorgan, First distribution We Virtually those Stanley,

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to fund that the all housing manufactured we and population you a own to comment precisely and of too, always So housing, the benefiting looking that strategies, around affordable significant workforce assets theme our the renter Really we affordable affordable housing and hard two. that's market. we're now knock the the where part market for housing of away. fund, are between as S. and give focus energies to lower find some that, real-estate that's affordable, invest ability housing to capabilities always Population is All the in on better stimulus in manufactured assets fund workforce cohorts playing developed assets and U. across the that expand space workforce investing make the workforce work I'll of middle all stay we're further important. and – manufactured housing to think raise our we of expanded and is an but housing XX:XX example diversity number to income manufactured also just in not already vanilla the fund related about addressable seeing – affordable you're of assess to of meaningful a and areas beneficial live in would just choices that it's what limited S. deploy unifying of really hospitality country. extended social our Resident at that appropriate etcetera, we the rents, on. income community one, we've of the say well, the spectrum as market pretty the we're designed things in all is that amongst metrics We this and than ways and to credit, and significant turnover programming those provide growth our and disproportionately many U. residents excited effects for future Unlike rate, it's to are and a and for pretty in to financial We've fiscal respects communities capabilities the a well. I conversion in lower because etcetera. economy other of returns of enrich would the with the to of workforce of the across lives

growth our S. So terms Economy. we U. in of communities of terms in the of afford have ability meaningful to the some tailwinds

you. Thank XX:XX Great.

your to question. the long Sorry answer XX:XX for

XX:XX Thank you.

Citigroup. Our with next question. from is question your Katz Bill proceed Please with

Thanks. Okay. XX:XX

of technical Just a follow-ups. couple

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Sure. XX:XX

your on So first this share to question count. related

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XX:XX Thank you.

The the most one to is significant XX:XX twenty biggest, nineteen.

kind of will So, impact of a twenty think twenty two. reducing in in that have NCI I meaningful terms

again. thanks Okay XX:XX

are further at I There you. management this the would no Thank over floor like comments. back closing questions XX:XX any turn to for time. to

real XQ feel you, launched with the well XX:XX are opportunities as pleased earnings in of strong thank a and Well, carefully and aligned to about are to operator, activities, participating group extend who strategies which our call. is our mature and us, expand our fast ahead sectors the we're grow with positioned we quarter, you We're strong before of both bridge this said strategies as growing all against curated thank excited we've to to estate. continue newly and

in our our continue in We invest invest teams. capabilities, to

of the in We to momentum our deployment see very of in raising strong all interests selective and appreciate the and be work much tirelessly and on continue our side support to business. capital you we

you. thank So

concludes today's This conference. XX:XX

time. your Thank this you may your participation. at You lines disconnect for

you. Thank XX:XX

Bye bye. XX:XX