Bridge Investment (BRDG) 3 Mar 222021 Q4 Earnings call transcript

Hello, and welcome to the Bridge Investment Group’s Fourth Quarter and Full Year 2021 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A 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 turn the call over to Bonni Rosen, Investor Relations. ahead. go Please

I'm for everyone. year We you appreciate financial Good Investment Bonni Group’s us Bridge conference full fourth joining results morning, call. Rosen. quarter XXXX and

will Jonathan Slager; Elsnab. Chairman, Chairman, remarks Our Officer our Chief and Vice comments be and Chief Officer, Bridge’s soon Dean Executive to prepared Executive Robert include our Morse; Accounting Allara; from Katie CFO,

leaders. Q&A will the our following a from session hold We remarks prepared

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

And Bonni. welcome first to me to Bridge. you, Thank be you let the publicly

Jonathan year Bridge watershed records as you and Your our in more XXXX communications will Katie share achieved key on estate Slide review we and see indicators. can detail. year will results a story. the the continue across financial undoubtedly real shareholder was for for our to as our augment financial experience impressive IR company, performance our results X, most

brief be I here. will So

of of and of and and distributable U.S. the sectors reflects year-over-year set our continued both growth metrics fee-related attractive expansion The the our the earnings new across launch expansion the growth of into strategies, of over XX% estate. verticals This company, real mature data exciting inorganic second upward trajectory show earnings. our

to Slide will new delivered capital X. additional returns, turn you existing investors. performance commitments and from and has purpose organization outstanding our built has Please see, structure As which powered

enhanced is record we made Our initial average of negative It year-end and The successful institutional differentiated many a raising our the consolidator to translated company our which this across interest continuing X%. visibility in best was our Bridge dialogue ability IPO profile plus in the strong platforms, amplified enhancement, in contrast, making expertise both and IPO adjacent XXth new leverage and verticals. performing our ended U.S. XXXX. to have in catalyst in return Bridge in in possible. and for capital, you July our the was XXX XXXX as all who offer The so also to which ways, IPOs profile the attractive an to IPO selected the competitive In worth noting verticals and expand. year shareholders an is that with an Thank XX% through investment price, approach above and retail

in We property we will of growth the have wide in the still XXst excited in and set of large believe beyond. period short Gorelick decision of what the potential most opportunity our the past Brothers as the their management rental a single-family and bring are XXXX about public time, feel growing for nascent and Bridge In and continued sector. into validated in create participants of to of areas we one of January the completed [ph] be and communicated competitive acquisition interest some and

what me believe XXXX. we Before for impressive talk about results the quickly future, summarize are we let

fund the impressive strategy. aspect Dean First, perspective, of the capital Bridge type raised capital from XXXX, in how more $X provide by billion broad based most investor was is raise but detail it of both my will and

group organization. grown have We solutions client our

institutional of dramatically our expanded stable have We investors.

endowments wealth funds, and wirehouse we foundations deep spectrum surface, insurance sector, have and whom penetration offices. scratching the only all, for of business, plans, have raising the record across platforms the capital family with notwithstanding we We results and do XXXX. Best sovereign of the the expanded are we pension

with as institutional have organization. and in All who's is confirmed currently pipeline who literal strong Our as ever. invested a investors traveling again. we've CSG substantially are of our meetings in-person members CSG We

down Moving to In this to capital both Bridge Bridge purpose without selectively structure. record investing our page, a deployed the returns sacrificing or is is at able strategy and billion. critical. scale, built do XXXX, $X.X due

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scaled our add realizations foremost, to and our shareholders. our for funds fund our performance engine we compelling But those both to value drive First growth a and record thrilled of AUM track we're and investment to investors. of believe similarly, for platform offer

future our addition, unrealized is significant. million, performance driven the $XXX discuss In further demonstrating carry increased pipeline accrued has will distributable Jonathan which to for earnings

to continued team I'll internalized say company we by we work, to our X comments them on believe After have our against infrastructure. my talented Slide SOC that XXXX, expect responsive. fund to audits both proud accurate to with up of Lastly, we and allow SOC framing administration, of which and will history. us our of stronger Bridge and a to wrap got key hard additions If funds as more complete the be evolution X, more X turn several professionals to management years we and are

IPO on growth positions management to for noted to approach real selected focus to on As our come. well integration replicate in and steady strong forward us we commercial property we years estate unique the Bridge's and believe carefully roadshow, sectors very

of view for earning an paying fund and the year of XXXX to impressive little X, at Many believe AUM the the and talk opportunity average to to bit across to have indicators our our these strategies how grown drivers we available drive see past environment the synergy most the streams let's succeed. If to strategies and set continue key vertical and rate Bridge. are turn continues Slide of can Bridge. of that We a with our structured XX% of past and XX% has revenues legacy in our compound investment integration stronger As rank performance gross quartile, over five the beyond XXXX, years, you fee and about our including broaden here, the our in respectively. alpha five growth only top visible foundation year becomes rates we're

commercial another investor investment institutional Hodes the of target of way, real According average estate average remains for investment an Weill, allocation backdrop X.X%. asset robust. investor the compared remains institutional class. as to just estate the First, has real Said mix underweight in XX.X% commercial current a to

liquid Altogether, search positioned. real property that is represent we these in shift dollars. will residential coming global markets And these and inflation commercial Each for We very years. the sectors focus strong real logistics. reference, hedge, well foundation in the represents trend factors estate's accelerate allocation and small approximately estate like our big For of provide a especially on platform point likely natural percentage yield given percentages billion. commercial believe for $XXX this

how to speak market. Bridge Next, competitive I'd in what real like commercial succeeds estate a to is investment

impressive billion, $XXX were and you to fourth active typical estate $XXX approach may U.S. of total incredibly how fund competitive, due XXXX total that transaction it's exceeded Real hard the and real volumes know, According in overstate quarter important of the XX% liquid As our an billion transacted to in asset transactions. In of was seasonality and to the XXXX’s volume business. XXXX are markets nearly record commercial the for is to our year alone Analytics, performance. the previous Capital doubled

We drivers. have constructed markets strategies, and purposely best demand estate real investment with teams focused on durable fund most secular the

in the crisis. of of country residential because since Bridge’s under the the market U.S. supply chronic financial Specifically overweight great housing the

the vertical infrastructure track not vehicles been across and that both drive does herd better when drive record. does. is that stack by and performance considered context, to instead full This multiple capital of and our our especially speed the XXX investments. against returns structured high of yielding have Bridge on markets, out knowledge broader capabilities zone opportunity We market, strategies Bridge set alpha is superior offered. way to structures of ranked to one on closed-end participating are opportunity important local recently offer fund markets, focused and a the faster open-end with our finance same that and logistics in in returns number

execute value-add these is that fund competitive redevelopment a wins been capabilities on as advantage value-add development and you result, in ability X. distinct The our It to as reasons and serve property has inherently Our a see source for strong performance is Slide management can often. market investments. less and Bridge our also or

excited for published ESG annual and zone We this single-family wide logistics, agency our our spring rent, equally release opportunity and will quarter. are and income, ESG report firm prospects about new We lease our later second strategies net our report MBS. in development inaugural last

PRI United equity our completed PRI in Nations’ As report its submission first signatory, Bridge for strategies. XXXX

of Office Affordable on comprised commitment first Fund dedicated reporting Workforce we the as the a Bridge submissions and for reporting task a time leadership. Housing TCFD In financial supporter assessment the launched maturity two change XXXX, climate-related GRESB disclosures, task a of to and sustainability also included Bridge climate senior Bridge came force XXXX. II. Our Fund completed as well early in force

the industry diversity course diverse six a recognizing and company-wide company retention, or of advocates that the resource XXXX, inclusion passionate and Bridge equity also in firm-wide a and Juneteenth was a and as groups supported employee and of paid ERGs. building, education assessment awareness drove leader the programming estate real holiday. Over our in additional diversity, hiring launch committee

that highly evidence-based strategy to the Bridge wellness to that office Workforce Best Pension thrilled Market overall early ESG owned commercial XXXX, in also are commitment Year the received acclaimed our Fund the XXXX, Finance in of Furthermore, XX and earned by example support Fund of Bridge awards of including Bridge. Health-Safety share Social WELL multiple Year by properties. the and Strategy Private Affordable by Equity Investing; ESG in ESG our an Housing Private Environmental the implement strategies Rating of buildings We

just place Before I'd I to we Jonathan, stakeholders. our turn in call like the of to serving reiterate all the importance

let the and are occupy create fund also investors, our we As shareholders returns I that, to resource that proud for groups, Bridge and partners such turn we noted, we difference employee our call those our to with energy, properties every whether our day. in And investments value our but as alternative with that employees, as we it imperative work commitment the view be the me drive through success, strategy and or are our solar of we proud the Jonathan. of to for makes

Bridge to Thank you, speak year fourth again. a good is and cap to which you Bob, this off had company. quarter, great momentum a perfect the to our way for all

you over top five been highest record XX, This grew quarter year Bridge’s is the fourth on last highest see in to million. quarter and As Slide notably quarters year. $XXX total three have same reported quarter last can the revenues for on our XX% the our of

Our million was same year double of the $XXX ago. investment income period nearly a

has comments management. as carry outperformance these the performance advantages, this the on $XXX grew sectors in $XX nearly For our increased to million most with $XX QX by Bridge of Distributable a from $XXX accrued Fee-related unique period the XX% up earnings impressively million last our for performance increased quarter with right driven million. earnings our same XX% from This to for our fees Similarly, Bridge's realized totaled to being in quarter XX%. is of million, over raising, deployment was In by context, as income same Bob's the year-over-year. well the $XX in-house capital record this last million. growth approach but by quarter record XX% in unrealized combined line driven exceeded for sectors, year both been strategic quarter net XXXX.

helped the to $XXX $XX.X to million. XXXX full company. represents carry XX% of XXXX. increased of $XXX earnings million All results for from Total revenue million drive year impressive future this performance approximately fees distributable were of Realized and the which million, XX% up of $XXX of unrealized

XX. Slide Turning to

business can graphs, You to reviewed. color the growth capabilities the to we just like the I'd of in the metrics, at about some of on give top tremendous I drivers these these and see the relative strategy call. spoke

have of particularly generated it quarter I last the on earnings annual right, come believe you duration to our year, and XXXX, grew strategic raising earnings over in-house raising shareholders them And we'd a fee assets XX%. distributable fee for will LP to raising Bridge as earning has while in in minute three page, of fee-related our at where this from stronger nearly is significant understand is year. of the earnings XX% On than half Slide the have XXXX, Dean because each remaining deployment advantages new came but In back of each that quartile a in seasonality Our One earning it see seeking largely in can in expect our but by as the thing is local business, speak charts to Bridge’s XX% and top scale. on boots XX, AUM capital earnings we visibility quarters. XXXX, highlight our XX% the of our advantage two a in on ground this outstanding streams. our investment is the two-thirds and less there strategic pattern to Bridge and will scale Katie are from of of able Bridge in helps grew drive and year. knowledge important relates earnings continues elaborate will lower and our returns management see These two returns. fee-related can quarters. both national company. the the we deployment capital be capital to on see QX This We first fee-related for that what a similar are records last Bridge teams. of our really you historically the our to from its our that by has

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fund of period. by growth More importantly, rate compounded management annual XX% increased a that our over recurring of has fees growth same the

residential with confidence, this As noted, the will logistics real and institutional housing, estate for to demand related demand real macroeconomic drivers us combined shortage deep commercial the among exposure gives growing of estate the growth investors continue.

the over and XX% on the increased quarter, strategies, Specifically, XXXX. revenue larger and at vehicles from eight duration for our capital an related fee years stable toward commitments model. is the dated as lies are five And and duration chart In strong single more of XX.X funds over end as years of had strong of visibility at can duration drivers capital, durable years. fourth we open-end our AUM long total, earning longer average new with into our right with what more fee capital a trend and combined average on weighted we powerful see about And earning fee our years, duration a of streams. you the a deep year-end X.X AUM ahead. In excited backdrop market to in XXXX demand the of

for Turning take to our quarter. performance minute Slide fees XX, on I’ll a the

multifamily was driven QX over million $XX.X mainly generated and that by strategies. we mentioned, debt As realizations in

substantially we the both performance in have XXXX. rates were of quarter-to-quarter, realization vary materially noted the full QX market but and fees from interest strong in and not have year conditions rates impacted the commercial see or As inflation are of past and compress. cap logistics rates. seeing – been tailwinds to for real values and pricing we cap that we estate strong assets residential demand continue so rental rise like that Instead, have Rising residential

accrual you the pipeline page As can seen last best We’ve this the quarter, the our But realization the performance at million. accrued view fees by right vintage. performance by performance that Timing of present of we bottom market in be fund on upper we a allocation remains of unrealized performance believe updated increase vary. in very $XXX evidenced introduced can we of XX% will right, to see these net allocation. and strong as our

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we the operating $XXX of noted, previously to balance sheet. distributable approximately As potential earnings the on company future have million

is driver an sector. growth exciting Slide It to new the for Turning my single-family XX. Bridge to rental present in pleasure

launch significant saw, drivers. residential announced secular acquisition of platform the you of principles of management Brothers As along class the strategy, with we against In the capital. likely majority can with investment single-family of which Gorelick the Gorelick partnership another demand execute with

housing of of has home U.S. lag many home for many building chronic widened in to continues mentioned, first in in gap years time has multifamily buyers. the for we driven the while and space ways the increased, our housing affordability has Bridge, As undersupply it the focus

families demographic is or tailwinds Additionally and years. still creating young in Americans its households beginning early

addressable we single-family competition highly a with in effective, broad We lower also believe believe residential this local offers be a and sector institutional that area. which market approach, will succeed can

fragmented For for and in are integrated experienced partners share grown context, institutionally Better of housing X% single-family decade, substantially residential. they the but rental owned. through and institutionally past our that and the operators our Gorelick belief only remains operations market highly managed vertically from has is passion is value single-family new driven yet

in see breadth and can asset bring our all in will Bridge and with unit a the residential throughout our the knowledge of our portfolio and and fit us including well be XX,XXX our to well Bridge’s full a for renter almost Bridge’s leverage over Opportunity seniors cycle every XX,XXX as Page single-family another units exist base and housing for now the allows has our across with tenant relationship synergistic to rent cover that multifamily life multifamily. capabilities presence portfolio the includes model XX, So leverage Zone currently single-family the they and On classes other of rent construction investments base XX,XXX existing growing as Adding significant sectors. that platform. you portfolio operations, our very market across under residential almost can country, household. cycle with

us highlights our services, other capabilities, allow the of very me give raising turn shareholders. you a call procurement the to better to residents service Dean let that, and capital successful deliver value resident to year community to our programs Our insurance our Bridge. to our at and of With

Thank Jonathan. you,

in was over $X previous is and LP mentioned, a arm. We our which billion for in Bridge’s it Jonathan Bob billion more XXXX. capital, great As than fundraising peak year raised $X

was aided continued brand In the That backdrop total, Xx market detailed. two with XXXX. that we from raised as XXXX of in success new the strong Bob a funds typical the benefited being Bridge by vertical next-generation of as partially Our fund, strategies from said, A well launch of most II believe launched our I. next-generation Fund fund. amount Fund Bridge generally for four has evolution capital

investor Lastly first of last rent to an portfolio Jonathan’s a closing single-family Bridge launch the million first single on dovetail in fund with our strategy for XXXX. successful at of a single-family size existing connection our had rent January page, $XXX acquire for – in to

speak repeating real that closely scale to is had pipeline fundraising commercial the XXXX noted. worth demand, estate. it’s Bob the the with Jonathan I advantages strategic investment Before at is success better and built and information to in that to Bridge related we

as investors control investors, result, a new and strategies. largely a function. returns new a we’ve can market very built which returns, efficient Bridge and really and As capital and is retain and launch we symbiotic drive our result, attract deploy It better each we because flywheel efficiently helps those

making great internationally. pipeline, distribution first Bridge that for is early in note network updates expand As to strides I’ll and

hired aesthetic in of EMEA XXXX, with incremental group generating key clients in focus the on and Asia. course personnel Over we’ve investors our

serve capabilities better European had Luxembourg investors. we Additionally, to in

XXXX by historically. For has a our of ability of untapped put And we context, investor potential Bridge in internationally. the XX% the excited have and outside strong capital universe largely U.S. given with our about over very number the ahead already to years being raised up scale, institutional in been are

from Bob light estate capital it demand, very figures clear, in the an commercial covered remarks, all Lastly, especially at rapid to his largest turning inflation our real in alternative of compared investors is increasingly wirehouses believe I recent are specifically from historical allocation. as to institutional well world seat and but seeking to as investors rate that commit to in to

investors, existing increased our LPs, family for fourth during broadening current firming to net to the in continued meetings multifamily in performance LP diligence with at all acceleration in mentioned, universe. make relationships in insurance where our to proved lease well fundraising single-family all offerings our in meetings quarter led compelling out as for dynamic offerings types. domestic Bob and rent, a with back fundraising desire key The expanded These pair follow-on has offices expand meetings, investors year. with affordable this the growth. all XXXX along and across international and due investor pension meetings funds, as is cross-sell as conditions new ability As on cross global investor our and team environment enabled post-COVID well the our strong investor more years wirehouses. to also further our the high and including This and successful sovereign sell next-generation returns funds to This logistics new and the of ahead. and and funds due diligence time our with with get road The has specific scale workforce us enabled forge plans, for wealth

which one turn we Katie, model scalability think I I’d the call our Before to summarize to page, on of like figure this highlight the just well.

one. figure here, $X.X was supply fourth down look in internal except a at the to and as in quarter with markets but with The the eclipses demand in every you record this growth company, starts capital prime of deployment top of not underlying our this the for If fundraising our past process a just quarter that chart history, approach balances. deployed billion

that that management with in weekly match approvals is committee the Our are literally assets meetings. investment our formal a value. and upon embedded of select organization process their ability drive see our curated thousands teams throughout reviewed view This down to to

built Bob call I’ll Katie. to is well said, scale. the a uniquely Bridge to and significant execute As With turn over Jonathan that,

I’ll Dean. and you, XX. Thank start on XX Slides

a record year to has everyone and breaking related noted, it our capital raising and for quarter As Bridge deployment. was

you non-GAAP our will performance. I impacts I and this walk of on statements presentation. execution see mostly metrics, quarter will GAAP through As on results fourth for the focus financial purposes financial you the our our of

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the year-over-year lower of fourth $XX.X XX% period. by carried million mostly versus offset million Our $XXX.X $XX.X interest investment and driven the by increased million, income interest of fees incentive in prior unrealized carried for total quarter realized

As to performance quarterly for while driven Jonathan earnings Bob upon timing. pace previously, future will distributable vary and spoke realization the runway is based significant, the

increase benefits, AUM largely in professionals employee corporate to which is new increase investment strategies. headcount a and and also due and corresponding fee-earning increase have our We employee to compensation related our in

incurred to $XX.X strong $X with it Additionally, and quarter, $X.XX. company with operating share was cost GAAP the to we of our income in in public million $XXX.X $X million million quarter costs the and of during related Overall, SFR company approximately earnings net the related year versus fourth a a per million approximately prior being to acquisition. the transaction

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Turning to Slide XX.

company Our quarter business the the by pre-tax details, per growth, $X.XX performance allocations. on $XX.X and million to our components operating forma XX% a to of for up distributable of fee a all related or the fourth year share Driven basis. strong earnings ago earnings realized our AUM fee-earning suite compared totaled pro including

of you related of also earnings operating units X the million declared share. program on release, a January platform. XXXX acquisition count per well restricted collapse X.X profit our dividend share of company This XXXX includes awards from As units the million to interest of as Bridge saw XXX,XXX of $X.XX SFR the and XX we the shares the

We for Slide The have operating shareholders. basis, $X.XX XXXX was the DE this January respectively grants higher you for share occurred the XXXX. been on if on on profit X, the forma laid in to had The these would public pro and the a have collapse XX. per of interest year-end quarter to fourth agreed collapse $X.XX of out company

MD&A portion to the we’ll in the forward. significantly allocated the tranche out largest As of income was XXXX non-controlling the profits should disclosure continue interest, this going interest although, break decrease to

excited funds in your questions. the can back we million to $XX our continues the low funds. our that debt. the of I opportunities since like to shareholders that, we talked, available With to have capital public significant to value to into other Bridge directly our Finally, operator would to capital Among of directly deploy these last have call share our note business, and I’ll take we’re turn grow that we made commitments which so relatively announce creation can and the

is Thank Bill Citigroup. coming Instructions] Our you. [Operator question from Katz today first from

line now live. Your is

opportunity. you if very taking on the Okay. Maybe Good much. sort morning, zero could retail Thank in everyone and we appreciate of you I questions. the

give just in quarter seems where wondering are? products. a hand, one the you’d you kind of us momentum the a of of volume Just it channel the tremendous what got retail fourth snapshot amount new AUM with on And from if like

as Thank other bit positioning be rising look sort the see On you XXXX? it talk of you Can about hand, how you to you. seems little a your competition. into

the the then Dean Thanks, and speaking a volumes. things couple comments. detail This some of to Bob Bill make for is precise turn question. of to over I’ll

in estate interest high, real is retail in continues right be very You’re assessment. to your very The high.

very real the an real on that premised alternatives. relative have favorable to yield of different is good as the investment, provides an in many tax returns very profile think I estate fact estate The investment investment strong. been

continuing So strong we see demand.

a relationships of Bridge the see in particular distribution promise expanded we really And there. with U.S. over great well We’ve fourth in as as the know, As variety has the across of internationally. XXXX continue you and of a networks to platforms quarter. course number wirehouse those

office and directed net retail a by worth I and high further focus effort Bridge the individually coverage direct within think fact have and client that by overall our worth high family well. is supplemented that’s solutions net ultra as we strong augmented our group

a lot a forward. and do for specific want demand lot raised a retail going momentum, more of little give we of what we Dean, think So the channel? detail to you from

I yes, Well, mean, substantial.

of some a wirehouse as too, from side FAS I came together office retail, channel worth as net it that $X think so, high if billion probably call the as you foundation, sector or about well, billion well of that some because $X that overall. on good Bill include our which of cover funds family

the So to doing it’s are been as to across we’ve multiple comment gone products we good we’re – wirehouse in the also particular. here, us. now board I’d with XXXX

a be we’re but I like our across affordable probably little point too, feels workforce of to of saying fight and it been sort of, more trying now discussions it’s to it bit, into about way way products it kind multiple at deepen queuing got housing, quarters in this across we’re lack where can pretty been time. keep really to to Fund able the feels that is you having products but you future your multiple able it great, not Opportunity way better good share so other wirehouses it. been great. the particular, whether we’re and the than we’ve our the oversell here has Hope that for in only works kind sort a it We’ve the have but So wirehouse And of Zone, to ability And Multifamily up. have been for put them not product to overall. of wirehouses, getting years, slots

through want appreciate. pace to set maybe quarter-to-quarter the sort you margins perspective, seasonality look about some I to you. as of on exit of the platform level year? the the as that sort an Thank expenses guys Higher just right follow-up management I as go as basis. think were first maybe signaling we for just And have out you full quarter? for of you fees, sort we pacing of sure as a you or How here and and sort make FRE on entry Could should both apologize, Terrific. this. it I Okay. the of pace the look well given certainly a of base from

want you address do to Jonathan, that?

guided we I margins, I range in historically it mean, the strong of that Yes. be And long year. variable. kind margins been – them quarter think to about always I – This and kind we are a had in. call had we’ve strong think and margin they range guys that margin our that year XX% you term the Sure. have of that’s we expect a

So closed that different and actually catch those – funds, it’s fees fees most we as margins. about drive know. end of various again, I up products for that timing have importantly, we when really you see various think the But

important in a have things I year think we one growth the of is of amount company. this huge other that our

amount really now going a for because right scaled, of of So capital. team logistics large forward. deploying that’s generate value profitable It’s But we’ve highly team. a launched huge invested really amounts we’ve going business the significant us we’re excited to in that we’re

we’re significant that in amounts capital, ramp raising but up. of We’re

of a startup. it’s So kind

are for and we’re expect of single-family drag our rent, platform that’s even Same for thing, of really raising that capital newer XXXX, net and that’s building Dean overall though And So side on lease the we our some lower of now substantially. to new, be even on to really to both in still right and with which But good we’re margins. significant launching all Bob really on earnings a momentum. indicate address less scale sort going some strategy AMBS can gaining logistics momentum as going XXXX but side. the deployment

everyone FRE that where other has is is other way the weighted. just think the we including been for margins talk Bridge thing thing always the heavily our about XXXX, XXXX, that I total – our backend the

expect just we that And again. see the we’re that to again, so momentum is, I those of new described. Part that actually strategies building in

excited. year, had is but I to think very profitable, be think everybody. heading So year. a we’re we’re XXXX building in a really direction that originally But focused the building still going And I we

you. Thank

you. Thank from question Ken JPMorgan. is next The coming from Worthington

now is line Your live.

part wrapped that a are forward? of fee Hi. paying the for drag? to and Wanted of fee Gorelick, question can Thank And for morning. on Just is of their fee number then fee anyway, be how SFR we all performance acquisition Maybe is that of details to I expect or you fee Gorelick. money. some details you. margins into them. a little AUM should around rate hinted big work? their making Good Gorelick I economics you of sort going business the we what What’s of out structure? tell further guess the us So AUM a economics year flesh at on size, that in transaction. on that us get do lower, the Should paying what about think ended flagship and that expect target of Gorelick the that drag rate, the And terms give a probably fund

January closed on Thank Sure. we year. of inquiry you this for Thank you. that transaction Remember XX the there.

we fourth – plus be provide the homes Gorelick that we portfolio recapitalized as million of of that no XXXX release $XXX dry capital as of XX% platform. approximately event. that, minus of minus operating about recapitalization platform it’ll recapitalization, at for XXXX grow powder both the indicated rent the the the $XXX as acquired on closing, part time we continue Gorelick impact, plus And launched to Brothers. to in as we equity the fund in transaction. In X,XXX And some single-family So to brought million our We a press capitalize well of doing an we about portfolio.

our we with is We continue think will well. investors efficiency. There’s Gorelick and operating and had as some a flurry coordination Brothers areas meetings identify of our been as in to Gorelick of approach fact, in and residential New of productive York multifamily And have and with activity, really identify platform. in offices extent a great a team platform we meeting other activities. areas We both investment pipeline of of with the which overlap, of integrate a CIO series team the today early and

robust respects. And there. is lot activity quite of of lots activity a So the in

excited for really single-family We’re the for the about outlook rent business.

profile, single-family just the that Jonathan Bridge Gorelick because institutional of it’s that so think which nascent perspective. directly business with operating rent. an from particularly Homes translates a Bridge As the differentiated side professionals for has combination to multifamily, in stated, on a now named We highly we X,XXX have competitive plus in

portfolio. really both managing we the growing a in will the offer So terms we effectively efficiently and competitive cost and portfolio profile of think

fund. – a raising is We’re XX end our objective closed to a year raise

equity various for forward. depending they that going a related Bridge objective a to fee with charge et and and single-family to strong multifamily, the are incentive growing had of first cetera dialogue a of We rent investment, that or property other $X somewhat is closing about affect and this fees commensurate and we portfolio services size The for billion. management for what Our on capital a lot managing ancillary fees, provides. that management with fee performance along for revenues

other see paying you’ve raised. that is have what at? of the end sort of and was other money And AUM just year the the Okay. outside in there I like, So Gorelick Are what they vertical? this Gorelick XQ? fee any only raised Did Gorelick verticals did

pretty the The what of business activities have They legacy of on earlier and dependent forward. managed are you operated. directly are vertical, couple with a going that a being economics modest will still our portfolios if are

Bill’s $XX to was XQ. up on maybe Makes Compensation question said million differently. follow in sense. And

just XQ as starting as some comp? starting the the year about year? bonuses of XQ Should as $XX on business. for start need start did think think talk seasonality what XQ? Of we of were a seasonality at XQ, should the and the and reset of $XX part the lower our XQ activity, Year part cash that was is what and of You million point we of great for therefore it we we million that New Anyway, we big help about being is in recurring

I year. on So the and attracting or provide and retaining at to I great think periods detail. Jonathan one Katie the course, execute would some end of semi-annual retaining – model. the dependent of more can on attracting those of our by provide ends start saying highly semi-annual business business pay off that, bonuses people can is maybe We and

So over a going retain we we’ve some – did to attract We is forward. people. XXXX that Bridge fantastic the of And detailed been – and is of great lumpiness well. employer. in We’ve as able the great some that hiring compensation we think there a course retain number

we immune pressures So but very we’re growing Jonathan, throughout industry. to add want other we’re fulsome in team capable. any to the we details on. of think we’re XXXX entering you a how with very not expenses. we’re wage revenues are course There excessive, think that, growing And well

jump let this one. Katie to going on I’m

Bob. Okay,

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considered. with relatively SFR, Even should be it

Okay.

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Okay.

coming Thank question Cyprus from Michael you. The next from Morgan is Stanley.

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I there, question. update progress the to some the the you lease us on circle the the of Good and logistics, initiatives there? I is Thank those of progressing fundraising adjacent strategies still could newer newer with out, in hope morning. taking net the for to Were you wanted industrials. hiring of today Thanks back strategies? build with how and guys you you. where Talk the about some headcount. AUM terms and stand

Sure.

about income. doing as as in logistics, we’re really We’re net lease excited well what in

number made value properties. venture very through logistics of later competitive value of an team areas teams and sectors. substantial of capable in and launching fund those invest across course we we logistics about think We joint add our the those in anticipate fully this with a year. the a to went Townsend both add Over a we XXXX, announced building formally feel both We organization of

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activity in what was in to We suite compliment tours kind perform and that and we've occupancy, Seniors well. forward. diminution StepStone that I think and There we rents as feel pandemic overall COVID open housing of is components were as not is The was the to some a front with that well a levels of of is and back SMA strategies. our strategy. announced just was very one lockdowns growth the of particularly inquiry door our door really the seniors closed housing occupancy respects, of seniors poised going residential characterized – record significant the housing. We're as at we given out expected The fund around like see coming cohort are of market strong of funds potential the high, with plus residents. We Seniors multifamily, in macroeconomics quite The the the II. that and XX in Housing seniors following they successful they're and are amount Fund is III, team at as capital investment value know, is as think old comfort to a growing of in the housing in know, as deployment year of as residents far their we deliver that other team, loved management property we integrated as great well service having and to firm and well terms both as are no an seniors as and housing ones. least we positioned I

StepStone to sitting So accelerate we fund. in believe for the that sector that help the Bridge of the SMA will exposure growth alongside

much. Great. Thanks so

the for question. Thanks

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Beatty question next is UBS. from coming Our Adam from

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I and my proportion in what $X billion All Wanted appreciate endowments that, or strong, about future you. the out mix on Thank adjacent, was you're last Do of get questions. but mix overseas remain momentum about fundraising, results taking FAs. obviously of of wirehouse you to quite your versus different right. is sort of point internationally, the year. there's or retail the have And know you, just others fundraising? were like maybe sort expanding wanted the Thank mentioned of through raised in Good mix this that the institutional $X morning. great to expect mix retail you a billion for maybe going sort year? thoughts to of you similar ask

Dean?

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Finian from O'Shea next Our is question from coming Wells Fargo.

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– topic Hi think everyone. inflation, on of meaningful senior your with Back your positive strategies. demand a for are can traditional the for for and we Good that's morning. and headwinds even example, the you cost understanding value-add on products provide? when How demand strategy, generally multifamily, portfolio color inputs, about any for housing to

Jonathan.

sure you me? hear Can I'm Making Okay. off mute.

Yes.

call question? related can concerned to construction expense your that you the that the and just costs moved have about you're So related to costs? up or Is or is the headwinds clarify the it question question replacement

that's housing more see seem lot labor a of stuff value-add, to have input, stuff lot like OpEx, a yes, strategies senior Well, if of with that? you your

Yes.

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people we're pretty worth essential they're workers. it, paid getting what constructive about So

closed. being front alluded back was it's door to, the the take, So, the to, Bob but door stated going alluded outright that pandemic, during said, to out that was but or and because not open

pushing So back to until the good of do expenses. But lot a to extra where portion difficult we it's back cost we occupancy. of We've XXs, terms rate with occupancies and a in through those lost get of going a of gained some start lot to pass are our to a point that. be

to strong and been done think make said, operationally, and one drive as great going efficiencies to till where vertically being amazing an happen side. because story other optimistic for silver we're it, is we call the revenue the operational a a been and of be being the of and get But the I know really able use a kind So the of we multifamily, a of housing growth job. on supply/demand needs is top whole amazing we very in provide, that expenses it's It's of, line we some typical strength rebalanced, if so the times revenue about up to teams tsunami of of while because that's That's ground has because the our we've things just, little but multifamily savings integrated to point the have cost take demand like that going the lot the what that the based technology that'll the the XXX% of for to is you is two expense. imbalance take

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drive and/or that of as construction forecast going well the of actually single-family is up. our renovation good, are those again, really costs up. all residential, going you relative rehab to same think or far it as and But with also bodes units, multifamily frankly, can in cost value development for are margins of for multifamily operationally I – So this extremely story the

projections, on investment with continues investment the be up. our stronger. at those – underwrote stabilized on had and when you we've I return keep zone we've construction like as conservative at you pro well when the had and return looked to revenue fund formas we overruns going our mean, we've costs cap cost under can have our opportunity look we XX,XXX So since units very imagine, rate deals but on and revised some pre-pandemic, some

kind so how been rate slow more of a overall in in everything like see all working we'd to constructive. world. it's So the it's our down of so to Obviously, I far of think manageable good but terms pace,

Very helpful. Thanks so much.

question-and-answer you. We’ve Thank Morse closing comments. end session, reached for Mr. floor further turn of our to I'd any the to like or back over

Thank communicated that call. all for hope momentum experienced us adequately the that we today in We this we quarter. Great. you on you. fourth Thank joining the

succeed said, environment. competitive we Bridge outlook that in environment. investment work I Our real think estate positive that to XXXX, as for in built is think somebody We competitive a do

We continue to invest in our organization.

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conclude does That webcast. and today's you. Thank teleconference

your a time participation We thank for your have and this wonderful You day. line disconnect you at today. may