Executive Summary

Q3 2024 delivered stable core fee metrics but softer realized carry: Total revenue was $101.5M (vs $104.8M in Q2 and $106.3M in Q3’23), After‑tax DE/share was $0.15 (vs $0.19 in Q2 and $0.22 in Q3’23), and FRE to OpCo was $32.4M with a 39% margin (vs $35.9M and 43% in Q2) .
Fundraising and deployment improved: $607M raised (90% institutional) and $617M deployed, with fee‑earning AUM up 1% QoQ to $21.8B; dry powder stood at $2.9B .
Mix shift and one‑time items pressured profitability: realized performance allocations fell to $10.4M (from $20.2M YoY), compensation rose with reinvestment in growth, and net insurance swung to a $1.6M loss on a one‑time claim and higher reserves; management expects insurance to normalize positive next quarter .
Dividend trimmed to $0.10 (from $0.13 in Q2), reflecting near‑term earnings mix; management signaled stronger Q4 fundraising and continued momentum in logistics and wealth channels as near‑term catalysts .

What Went Well and What Went Wrong

What Went Well
- Fundraising and deployment reaccelerated: $607M raised in Q3 (debt, workforce housing, renewable energy) and $617M deployed; fee‑earning AUM rose 1% QoQ .
- Platform breadth and market setup: Management highlighted bottoming real estate values, improving debt markets, and Bridge’s expanded verticals (logistics, SFR, PE secondaries, wealth) positioning the company for the upturn. Quote: “we believe that the long winter of real estate declines has bottomed… opportunities have reemerged today” .
- Debt strategies momentum: 15 loans totaling >$720M originated (much recycled), first CRE CLO in 2 years ($638M) priced inside peers, and selected by Freddie Mac to anchor its first multi‑contributor Q deal .
What Went Wrong
- Profitability headwinds: After‑tax DE/share fell to $0.15 (from $0.19 in Q2 and $0.22 YoY) as realized performance allocations declined and an insurance loss offset fee‑related performance revenue .
- Margin compression: FRE margin declined to 39% (from 43% in Q2 and 46% in Q3’23) amid higher compensation as Bridge reinvests in distribution and investment teams .
- Dividend cut: Quarterly dividend reduced to $0.10 (from $0.13 in Q2), reflecting near‑term earnings mix and capital allocation priorities .

Financial Results

Metric	Q3 2023	Q2 2024	Q3 2024
Total Revenue ($M)	$106.3	$104.8	$101.5
GAAP EPS – Class A (Basic)	n/a	$(0.11)	$0.11
GAAP EPS – Class A (Diluted)	n/a	$(0.11)	$0.04
FRE to OpCo ($M)	$36.0	$35.9	$32.4
FRE Margin (%)	46%	43%	39%
After‑tax DE per share	$0.22	$0.19	$0.15
Realized Performance Allocations ($M)	$20.2	$7.1	$10.4
Accrued Performance Allocations ($M)	$377.5	$338.9	$339.5

Estimates vs. Actuals: S&P Global consensus estimates were unavailable for BRDG; estimate comparisons are therefore not provided.

Segment/flow highlights (Q3 2024)

Capital raised by strategy ($M): Debt $429; Workforce & Affordable Housing $115; Renewable Energy (solar) $48 .
Deployment ($M): Total $617 (mostly Credit and Multifamily) .

KPI	Q3 2023	Q2 2024	Q3 2024
Gross AUM ($B)	$49.4	$48.9	$49.2
Fee‑Earning AUM ($B)	$21.8	$21.5	$21.8
Capital Raised ($B)	$0.303	$0.305	$0.607
Capital Deployed ($B)	$0.706	$0.364	$0.617
Dry Powder ($B)	$3.6	$3.1	$2.9
Dividend per share	$0.22 LTM trend ref; Q3’23 declared $0.22? n/a	$0.13	$0.10

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend	Q3 2024	$0.13 (Q2 declared)	$0.10 (Q3 declared)	Lowered
Compensation expense (cash-based)	Near term	n/a	Expected to “grow off” adjusted $42M in Q3 (modeling base)	Indicated higher run‑rate
Insurance income	Q4 2024	n/a	Expect “stabilize to more normalized positive levels” next quarter	Improved outlook
Fundraising cadence	Q4 2024	n/a	Management expects Q4 fundraising to be “even stronger” than Q3	Raised qualitative outlook
Transaction fee mix	Medium term	n/a	Transaction fees to be a smaller % of revenue as institutional mix grows	Structural mix shift
Retail product milestone	Q4 2024	n/a	Expect to break escrow on accredited investor net lease product in Q4	Execution milestone

Note: No formal numerical guidance for revenue, margins, OI&E, or tax rate was issued; management provided directional commentary as summarized above.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Macro/real estate cycle	Values bottoming; transaction volumes depressed but improving; large maturity wall and dry powder	“Long winter… has bottomed,” more deals to evaluate; investor dialogues picking up	Improving
Debt markets/liquidity	Tight spreads, rising CMBS issuance; SFR securitization at 200 bps inside Nov’22	15 loans in quarter; first CRE CLO in 2 years ($638M) priced inside peers; anchored Freddie Q deal	Strengthening
Multifamily supply/demand	Supply peaking, absorption strong; NOI outperformance in vintages	Absorption (193k units) > deliveries (163k); starts down 42%; SFR occupancy 94% with 11% NOI growth YTD	Fundamentals firming
Logistics initiative	Team built; fund II ramp; pricing 40–50% off peak; wide spreads	Stabilization to ~7% yields; pipeline of super‑prime assets; dev fees to ramp 2H’25	Positive
Retail/wealth channel	Accredited investor net lease product launched; custodian approvals (Fidelity, Schwab, Pershing, iCapital)	Expect to break escrow in Q4; headcount +50% over 2 years in distribution	Building
Secondaries (Newbury)	Fundraising slower given LP liquidity; expect re‑ups and traction into 2025	Re‑ups improving; cross‑sell with Bridge LPs; continue multi‑quarter ramp	Gradual improvement
Fees mix/transaction fees	Transaction fees subdued; fee stability anchored by recurring mgmt fees	Transaction fees to be smaller as institutional mix rises	Structural shift
Operating leverage/comp	Normalized comp levels; reinvesting selectively	Comp to “grow off” ~$42M; investing in people to drive upcycle	Near‑term pressure

Management Commentary

Strategic positioning: “We believe that the long winter of real estate declines has bottomed… Such investment opportunities have reemerged today” (Executive Chairman) .
Deployment opportunity set: “Debt Strategies had its biggest lending quarter in over 2 years… This improving liquidity… provides the foundation for greater transaction activity on the real estate equity side” (CEO) .
Operating outperformance: “In our most recent multifamily and workforce vintages, we have exceeded our NOI projections by 6.8% life to date” (CEO) .
Investment in distribution and teams: “We have begun reinvesting… positioning the company for this up cycle” (CFO) ; “our distribution team is up by headcount by 50% over the past 2 years” (Vice Chairman) .

Q&A Highlights

Recovery timeline and catalysts: Management expects continued rate normalization to support volumes and values; loan maturities will force transactions; demand strongest in industrial and multifamily .
Fundraising mix and magnitude: Q4 expected to exceed Q3; logistics a likely winner; secondaries re‑ups improving though constrained by LP liquidity cycles .
Operating leverage/compensation: Investment phase continues, especially in distribution; logistics development fees expected to start contributing in 2025 without significant headcount additions .
Multifamily deployment dynamics: Short‑end rates and abundant credit/liquidity matter most; banks re‑entering; spreads expected to tighten, aiding volumes and values .
Fee rates and transaction fees: Institutional mix implies slightly lower fee rates and transaction fees as a smaller revenue share over time .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2024 EPS and revenue was unavailable for BRDG at the time of analysis; as a result, we cannot quantify beats/misses versus consensus. Where estimate comparisons are absent, users should assume consensus data were not retrievable from S&P Global for this issuer.

Key Takeaways for Investors

Near‑term earnings mix headwinds, long‑term operating leverage: FRE/DE compressed on higher comp and lower realized carry (plus one‑time insurance), but the platform is investing into a cyclical upturn with multi‑year operating leverage potential as fundraising and deployment scale .
Fundraising/deployment momentum is building: Q3 raised $607M and deployed $617M; management guides to a stronger Q4 and improving pipelines in logistics and multifamily .
Structural mix shift: Institutional capital share (90% of Q3 inflows) implies lower transaction fees as a percent of revenue but greater durability of fee streams; model margins accordingly .
Debt platform is a differentiator: CLO restart, Freddie Q deal, and robust originations highlight advantage as credit markets reopen—supporting fee growth and future carry potential .
Dividend reset reflects prudent capital allocation: The move to $0.10 from $0.13 preserves flexibility amid variable carry and reinvestment; income‑focused holders should note the recalibration .
2025+ catalysts: Logistics development fees, monetization of Multifamily IV and Workforce I (81% of accrued carry) under European waterfalls, and retail channel scaling can expand DE over time .

Appendix: Additional Details From Q3

Fee‑related revenue was $82.5M (+3% QoQ) aided by fee‑related performance revenue from net lease carry crystallization; partially offset by lower other income and property operator earnings as office shrinks .
Insurance headwind: Net insurance loss of $1.6M vs. $2.0M gain in Q2 due to a one‑time $2M claim and higher IBNR reserves; expected to normalize positive next quarter .
Capital formation drivers: Q3 raised $429M in Debt Strategies, $115M in Workforce & Affordable Housing, and $48M in Solar Infrastructure .

Bridge Investment Group Holdings Inc. (BRDG)·Q3 2024 Earnings Summary