Sign in

You're signed outSign in or to get full access.

BI

Bridge Investment Group Holdings Inc. (BRDG)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 produced a GAAP net loss of $(37.6) million and GAAP diluted EPS of $(0.37), reflecting approximately $17.3 million of merger-related transaction and non‑recurring costs; Total revenues were $96.3 million, Fee Related Earnings (FRE) to OpCo were $24.6 million, and Distributable Earnings (DE) to OpCo were $17.0 million ($0.09 after-tax per share) .
  • The company suspended its quarterly dividend in Q1 ahead of the pending all‑stock acquisition by Apollo; management expects a final dividend for tax distributions prior to closing, a notable capital return change into the merger timeline .
  • Operating momentum remained mixed: YoY AUM grew modestly to $49.4B, capital deployed was $0.576B, but FRE margin compressed to 32% (from 45% in Q4) on lower transaction/fee‑related performance revenue and higher compensation/administrative expense; net insurance posted a loss driven by claims in the captive .
  • S&P Global Wall Street consensus estimates were unavailable via our SPGI mapping for BRDG this quarter; therefore, we cannot quantify beats/misses versus Street for Q1 2025 (we attempted S&P retrieval but it was unavailable) .

What Went Well and What Went Wrong

What Went Well

  • AUM/FEAUM stability and duration: Gross AUM at $49.4B and FEAUM at $22.0B; 68% of FEAUM has >5 years remaining duration, supporting fee visibility (weighted‑average remaining duration ~6.2 years) .
  • Deployment and fundraising: Q1 deployment of $576M across Credit, Multifamily, Seniors Housing and Logistics; capital raised of $209M (87% institutional) with long average commitments (8.7 years) .
  • Management’s cycle positioning (from prior call): “We believe that the long winter of real estate declines has bottomed... opportunities have reemerged” (Executive Chairman Robert Morse), with logistics, multifamily and credit positioned for upside as debt markets improve .

What Went Wrong

  • Earnings compression: FRE to OpCo fell to $24.6M (down 29% QoQ) and DE to OpCo fell to $17.0M (down 48% QoQ), driven by lower transaction/fee‑related performance revenue, higher cash comp, net admin expense and net insurance losses; FRE margin declined to 32% .
  • Revenue headwinds: Total revenues declined to $96.3M (from $103.4M in Q4), with recurring fund management fees falling on dispositions in Credit/Seniors Housing and fee basis conversion (Newbury Fund III changed to NAV in Q3 2024), plus lighter transaction fees .
  • Dividend suspended: No quarterly dividend declared in Q1; this is a negative income signal versus prior quarters, though a final dividend on tax distributions is expected pre‑close with Apollo .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD Millions)$101.5 $103.4 $96.3
GAAP Diluted EPS (Class A) ($USD)$0.04 $(0.15) $(0.37)
Fee Related Earnings to OpCo ($USD Millions)$32.4 $34.4 $24.6
Distributable Earnings to OpCo ($USD Millions)$28.2 $32.6 $17.0
After‑Tax DE per Share ($USD)$0.15 $0.18 $0.09
FRE Margin (%)39% 45% 32%

Segment and fee mix (Fee Related Revenues components):

Fee Component ($USD Millions)Q3 2024Q4 2024Q1 2025
Fund Management Fees$61.1 $62.3 $59.3
Transaction Fees$6.3 $8.0 $3.2
Fund Administration Fees$4.3 $4.0 $4.9
Development Fees$0.9 $0.8 $1.0
Other Asset Mgmt & Property Income$3.9 $3.2 $3.8
Net Earnings from Property Operators$0.95 $2.50 $0.42

KPIs and platform metrics:

KPIQ3 2024Q4 2024Q1 2025
Gross AUM ($USD Billions)$49.2 $49.8 $49.4
Fee‑Earning AUM ($USD Billions)$21.8 $22.3 $22.0
Capital Raised ($USD Billions)$0.607 $0.821 $0.209
Capital Deployed ($USD Billions)$0.617 $0.562 $0.576
Dry Powder ($USD Billions)$2.9 $3.5 $3.1
Realized Performance Allocations ($USD Millions)$10.4 $18.8 $4.7
Accrued Performance Allocations ($USD Millions)$339.5 $339.6 $327.2

Consensus vs actual (Q1 2025):

ItemQ1 2025 ActualWall Street Consensus (S&P Global)Surprise
GAAP Diluted EPS ($USD)$(0.37) Unavailable via S&P Global (mapping not found)N/A
Revenue ($USD Millions)$96.3 Unavailable via S&P Global (mapping not found)N/A

Note: S&P Global consensus data for BRDG was unavailable via our SPGI CIQ mapping this quarter; we attempted retrieval but mapping was not found.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly DividendQ4 2024 vs Q1 2025$0.11 per share declared for Q4 2024 No dividend declared for Q1 2025 Lowered
Final Dividend (Tax Distributions)Pre‑closingN/AExpects final dividend in respect of any tax distributions prior to merger close New
Compensation Expense Trajectory2025Q4 call indicated reinvestment and comp growth from adjusted ~$42M in Q3 Reinforced higher cash‑based comp and net admin expense in Q1 Raised
Reserve/Insurance IncomeNear‑termQ4 call: expected to normalize to positive levels next quarter Q1 posted net insurance loss due to claims in captive Maintained near‑term normalization expectation; current quarter negative

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Macro/Real Estate CycleEarly signs of stabilization; debt market improvements; capital raise/deploy uptick Debt strategies had strongest lending quarter in 2+ years; securitizations/CLOs resume No Q1 call held due to pending Apollo merger; press release focused on results and merger process Constructive macro narrative paused in Q1 communications; merger focus
Logistics StrategyBuilding scaled team; attractive entry points, 7% stabilization yields targeted Expect logistics fundraising to be strong Deployment included logistics among drivers Continued strategic priority
Multifamily/SFR FundamentalsAbsorption exceeding deliveries; strong demand; SFR rent/NOI growth Multifamily same-store metrics improving; positioning for volume recovery AUM stable; fee basis shift (Newbury); dispositions pressured fees Operational resilience; fee mix headwinds
Fundraising Mix & Distribution90% institutional inflows; retail platform buildout underway 11 new institutional accounts; retail distribution headcount +50% YoY Q1 inflows 87% institutional; commitments avg 8.7 years Institutional-led, long-duration capital
Insurance/ReservesOne-time captive claim hit DE in Q3 Expect reserve income to normalize next quarter Net insurance loss in Q1 due to claims Near-term drag; normalization expected

Management Commentary

  • “We believe that the long winter of real estate declines has bottomed and the sector has begun to re‑emerge... attractive entry point for buyers... resulting in outsized investment performance over the ensuing ten plus years” — Robert Morse, Executive Chairman .
  • “Debt strategies vertical had its biggest lending quarter in over two years... our first CRE CLO in two years... overwhelmingly well received” — Jonathan Slager, CEO .
  • “On the people side, we expect compensation expense to grow off of the adjusted $42 million in Q3” — Katie Elsnab, CFO .
  • Q1 release highlights: Net loss $(37.6)M; FRE $24.6M; DE $17.0M; no dividend declaration ahead of Apollo merger; AUM ~$49B .

Q&A Highlights

  • Fundraising outlook and retail build: Management expects Q4 (preceding Q1) improvement in logistics fundraising; retail vehicle break‑escrow planned with multiple custodians/RIAs, while institutional penetration growing (11 new accounts) .
  • Compensation and operating leverage: Leadership emphasized investing in teams ahead of anticipated upcycle; comp to grow from adjusted levels to support capital raising and deployment .
  • Deployment backdrop: Multifamily and logistics opportunities improving with tighter spreads and revived bank/credit participation; stabilization yields attractive in prime logistics markets .
  • Revenue mix: Transaction fees expected to be a smaller share over time as institutional mix rises; recurring management fees remain the core performance indicator .

Estimates Context

  • S&P Global Wall Street consensus estimates for BRDG were unavailable via CIQ mapping this quarter despite attempted retrieval; therefore, we cannot quantify beats/misses versus Street for EPS and revenue .
  • Given reported results (FRE/DE declines QoQ, revenue lower on dispositions and fee basis conversion, insurance loss), near‑term Street models may need to reflect lower fee‑related revenue and margins with normalization dependent on transaction fees/performance fees and reserve income trends .

Key Takeaways for Investors

  • Earnings compression in Q1 (FRE margin 32%; DE to OpCo $17.0M; GAAP loss) was driven by lower transaction/fee‑performance revenues, higher comp/admin expense and captive insurance losses; near‑term recovery hinges on mix normalization and performance fee realizations .
  • Dividend suspension ahead of the Apollo acquisition is a clear capital return shift; management still expects a final dividend tied to tax distributions pre‑closing, which may partially offset income investors’ concerns .
  • Platform durability remains evident: AUM $49.4B, FEAUM $22.0B with 68% >5 years duration and $3.1B dry powder, supporting fee visibility through the cycle .
  • Fundraising remains institutional‑led (87% Q1 inflows) with long average commitments (8.7 years); this mix supports recurring fees but structurally lowers transaction fee intensity versus prior cycles .
  • Performance fee pipeline is significant (accrued performance allocations $327.2M; majority tied to Multifamily IV and Workforce I), with timing dependent on market conditions and asset monetizations .
  • Strategic vectors (Logistics, Multifamily, Credit, Secondaries) are positioned for an upcycle; prior call commentary pointed to revived securitization/CLO markets and tight credit spreads as catalysts for volumes/valuations .
  • Trading implication: Near‑term results are likely bounded by merger process and muted transaction/insurance dynamics; medium‑term thesis improves on fee visibility, institutional fundraising, and carry realizations as markets normalize .