Q2 2021 Digitalbridge Group Inc Earnings Call
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Thank you for standing by this is the conference operator welcome to the Digital Bridge Group, Inc. Second quarter 2021 earnings call.
As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation there'll be an opportunity to ask questions did you end. The question queue. You May Press Star then 1 on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star zero I would now.
Like to turn the conference over to Severin White, managing director head of public Investor Relations. Please go ahead.
Good morning, everyone and welcome to the digital bridge in the second quarter 2021 earnings Conference call speaking on the call today from the company as Marc Ganzi on.
President and CEO and Jackie <unk> our CFO.
Before I turn the call over to them I'll quickly cover the safe Harbor.
Some of the statements that we make today regarding our business operations and financial performance, including the effect of the COVID-19, COVID-19 pandemic on those areas, making maybe considered forward looking and such.
Such statements involve the number of risks and uncertainties that could cause actual results to differ materially.
All information discussed on this call is as of today August 5.2021, and digital bridge does not intend on undertakes no duty to update it for future events or circumstances.
For more information please refer to the risk factors discussed in our most recent form 10-K filed with the SEC and in our form 10-Q for the quarter ended June 32021.
With that I'll turn the call over to Marc Ganzi from President and CEO.
Mark.
Thanks, Kevin.
First I'd like to start by thanking everyone for their interest and attention today.
Especially new investors that are just learning about digital bridge for the first time.
Typically in our quarterly conference calls we cover 3 primary topics of before.
When we get into the quarterly highlights I'd like to do a quick overview for investors that are new to deter bridge, especially since we unveiled our new branding and at our first Investor day earlier this summer.
After that.
I will cover the 2.2 highlights and then turn it over to Jacky, who will walk you through our financial results.
And then finally and this quarter's executing the digital Playbooks section I'm going to talk about our unique ability to both buy and build.
It's a topic that is especially relevant in today's market.
So let's get started.
The next stage please.
It's been exactly a year since my first earnings call as your CEO and what I laid out last August was the vision and commitment to you our shareholders first that we could and would execute on a profound transformation.
Moving from complicated in diversified.
Focus on digital.
I committed to you that I would change our management are.
Our business profile rotate our assets and really change the entire trajectory of the firm.
A year later I could not be prouder of what we've accomplished together.
We are of business transformed.
What you see here is what we've become and what we're about today digital bridge as the leading global digital infrastructure REIT.
We're the only dedicated global scaled digital infrastructure firm.
Investing across the entire ecosystem.
The towers data centers small cells fiber and the emerging edge infrastructure vertical.
Today, we manage over 35 billion and digital assets focus exclusively on this opportunity.
That's up over 70% from last year. This is really fantastic growth by our team.
I want to talk about our team next you've been doing this for over 25 years with deep industry relationships that drive access to proprietary investments and.
And position us to continue to be the market leader in converged digital infrastructure.
Make no mistake as I told you all before networks are changing.
Consumer and enterprise expectations around connectivity are always increasing.
Our entire organization is dedicated to investing operating and building. These mission critical networks.
Next page please.
Our capability to invest operate and build digital infrastructure is very unique.
It is the digital bridge difference that you see here today.
First we've got the investment experience as an asset manager, where we deploy capital on behalf of and in partnership with some of the world's largest institutional investors.
On that are attracted to the growing but resilient profile of digital infrastructure assets.
That's a business with terrific returns on capital that drive our earnings and increase our firepower in the marketplace to do large scale transactions.
At the same time, we have of rich and long heritage of building and operating digital infrastructure.
We've talked about this being active infrastructure.
Knowing how to run these businesses matter management matters.
Customers want to know who's managing their mission critical data and we've got that expertise in house as we serve these logos for over 3 decades.
Finally, as you can see from the logos at the bottom of the page, we invest across the entire digital landscape today.
22 companies operating globally.
We think this is becoming increasingly important as networks converge and customers want a single source for their digital infrastructure needs.
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So look I want to take a step back of briefly give you a sense for the macro environment that we're exposed to today at digital bridge.
Digital infrastructure is an asset class benefiting from very strong secular tailwind as we've discussed in the past.
This is really around connectivity and the increased importance of access the data.
And all of its forms from consumers to enterprises to devices to artificial intelligence.
Let me give you some context on that over.
Over the next 5 years Youre going to see 5 times growth in global network traffic from.
From 50 extra bytes exercise per month to over 250 extra bytes per month.
It's rather dizzy and so at the end of the day, we stepped back and we say how does that demand gets satisfied.
Over 1 trillion dollars.
Worldwide and mobile Capex with the.
About 80% of that going into <unk> build outs over the next 5 years.
Another market, you're seeing the need for a massive build out is around global data center capacity.
This is another trillion dollar plus opportunity.
As our cloud customers and enterprises continue to migrate.
Towards these web scale opportunities.
And significant opportunities to manage their workloads.
These are big numbers, it's a huge market opportunity for us and most importantly for you our investors.
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From my chair, it's always interesting to see the big picture and put the opportunity into perspective, but really what's happening on the ground. How are these things shaping up and of post COVID-19 environment.
How is the demand for connectivity manifesting itself of the logos we serve.
In other words was the pandemic of blip.
Or was this the step function increase in our usage in digital platforms.
Let me give you some data points pulled from this earning season just over the past 2 weeks.
The takeaway is growth continues unabated.
Iphones.
Or sorry in terms of new sales.
Revenues at Google and Youtube and Facebook continue to grow rapidly on a base that was already tens of billions of dollars of quarter.
Microsoft 1 of our most important customers who's focused on serving enterprise demand and cloud application.
It's growing rapidly and their cloud services with their Azure platform.
The revenues were up 51 per cent from last year the since its founding figure.
But there's all of this is all part of a broader migration.
As our personnel and professional lives transition to digital platforms.
It's the change that is gaining steam as far as we can see.
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So where do we fit into this and how are we participating.
As you can see we've been incredibly active over this past year.
Continuing to build the portfolio of high quality businesses that we manage and are leveraged across these powerful telematics.
As I mentioned earlier, we've grown our digital asset base over 70% in the last year.
We've increased our assets under management of over 35 billion as of this last quarter.
And to be clear, we're not done yet.
We've got an incredibly robust pipeline of deals and.
And we continue to evaluate new opportunities across the entire digital ecosystem.
Just in fund 2 alone we've added some fantastic new relationships and logos.
Vantage towers in Europe.
The only go 1 of the leading indoor providers of Das and Wi Fi solutions from the United States Atlas.
Atlas edge, the largest edge computing business in Europe.
PCC W. A key Asian based Interconnectivity datacenter business edge.
Each point of infrastructure, 1 of the largest tower businesses in South East Asia today, and agile data centers, 1 of the largest hyperscale data center developers I couldnt be more excited about what we've done so far this year and there's more to come.
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Finally, I'll finish up the server you with some perspective about what we built so far as we invest on a global basis.
As I mentioned earlier 22 companies across the major digital infrastructure verticals.
We're extending our playbook into Asia.
Which we'll talk about in the moment.
Bottom line, we're incredibly enthusiastic about the companies we manage.
And the position that puts us in as the fastest growing global digital infrastructure REIT.
With that backdrop, I'll turn section and cover some of the highlights from our second quarter.
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I want to start by highlighting something Thats really an important perspective around where we've been active on the investment management side over the past quarter.
The key here.
From my perspective is when we mapped to you of strategic vision, we execute against that plan.
This is absolutely central to the way I run this business.
We are in execution business.
When it comes to investing in the next generation networks.
We described as being so critical to achieving next level network performance, we closed on 2 investments in the last quarter.
First the Boingo take private in May.
And second the Atlas edge launch in partnership with Liberty Global unveiling of new edge infrastructure platform in Europe.
The key to both of these investments since they're built for 5 years down the road not just tomorrow.
<unk> got great management teams like all of the companies, we invest in and they're focused on positioning themselves for where data traffic is migrating to and where the edge and mobility and compute connect to improve user experiences.
The other area, where we've advanced our strategic vision is Asia.
We have formally announced 2 platforms in Asia developing a third.
First the edge point tower platform.
We've already closed 5 acquisitions, and we've signed multiple build to suit contracts on some of our largest customers.
Makes us up over 10000 towers now as the leading private tower operator in southeast Asia.
Next up we've got 2 data center platforms.
First agile focused on developing Greenfield hyperscale data centers throughout Asia Pac.
The second PCC W, which is focused on highly interconnected edge facilities the <unk>.
Serve our global web scale customers.
That's a great combo from my perspective.
On a business with existing assets revenues and customers.
And then secondly, the platform where shovels on the ground building on mission critical megawatts, but sort of key cloud customers in this fast growing region.
When we raised digital colony partners too.
New areas of focus for centered around Asia expansion on serving edge workloads.
This quarter demonstrated our ability again to execute on our promises.
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Next.
I'd like to discuss capital formation, which is an incredibly important part of our business plan at digital bridge the.
The update.
I'm pleased to report is very positive we had an incredibly strong second quarter of progress and DCP 2 <unk>.
In the past month, we broke through our target of $6 billion.
On DCP twos target.
And we are currently sitting at about $6.6 billion in total commitments.
In fact, I'm also pleased to report.
Just this earlier this week, we closed over $200 million. So it's really great progress by the capital formation team of digital rich.
<unk> is now 50% bigger than our inaugural fund that we raised just 2 years ago.
And we're on track to complete the final close prior to the end of this year ahead of schedule.
So that's really big news and I think it's indicative of the interest in digital infrastructure and.
The Lps desire to partner with digital bridge to capitalize on this great opportunity.
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So this look this slide just puts into perspective, where we are at mid year and I've told you. Our guidance. This year was to go from 13 billion to over $17 billion in Finn.
Well look we are on track to meet and exceed our 2021 fund raising targets similar to what we did in 2020.
The funds business as many of you know generates long term contracted fee streams that generate steady returns over time.
Which is 1 of the reasons, we're able to compete.
Please the corporate securitization Jackie is going to talk with you about a little bit later.
So.
From our digital eye on franchise I couldnt be happier, we're in a great place for raising capital and we believe that we're on target to exceed our goals for 2021, which is an important part of our guidance for this year.
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The quick corporate update for you.
Well look where we're ahead of schedule in terms of finishing the mission, which is the mantra that we set out earlier this year.
Today, we're 85% rotated to digital with our wellness business the being the only material legacy asset left of monetize.
And as Jackie will explain even transition that business to discontinued operations on our financial statements. Since we believe there's line of sight on divesting that business over the next 12 months.
Obviously, the <unk> sale was big was a really big deal for US earlier this quarter generating gross proceeds of $535 million from over 50 of investments that were really quite complicated.
Fortress has the perfect buyer of these assets and we believe there'll be well managed by that team.
And we still expect the deal to close by the end of this year.
When we laid out of our goals a year ago people were asking us if we met the beginning or the end of 2023 is the target date for completion of our digital transformation.
So we think the progress here has been significant.
And what's great is not only the capital we're generating but.
But it is also for us to focus even more on our time to growing the digital business.
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In fact that rotation getting over 70% earlier this year and now 85% in this quarter puts us in a great position to do something we've been looking forward to per every year.
This is the rebrand back to digital rich to reflect the business thats totally transformed and focused on digital infrastructure.
The business with really unique characteristics and the digital REIT space.
First deep operating experience second act.
The access to significant pools of institutional capital.
And third leveraging the powerful secular tailwind that we've discussed.
In conjunction with my team, we've developed a new fresh logo and the new ticker <unk>.
Our goal is quite simple we want to establish digital bridge as the reference name in digital infrastructure investing.
And the position ourselves as the fastest growing digital infrastructure REIT.
In the community today.
In connection with the change we held our first Investor day in June.
If you haven't already seen that Investor day checkout, the microsite through the shareholder section of digital bridge Dot com.
I think you'll get a great flavor for the team we've got executing on a very exciting opportunity.
Couldn't be more proud of our partners and the team that is leading this company going forward.
The next stage.
Finally on the corporate side I wanted to highlight the release of our 2020 ESG reported later this quarter.
You can track the full report.
On the corporate responsibility section of digit range Dot com.
Look it's been an immense amount of work, but highly rewarding.
It's taken some time for our teams to get their arms around this.
But it's really about how we operated digital bridge.
It's the work that we do not only on a corporate basis, but our portfolio of companies who are all at different stages on the ESG journey.
But all focused with 1 mission to get there.
Getting everyone on the same page and working towards that same goal has been a big lift and.
And we're looking forward to reporting the tangible results. We expect from this program over the coming years.
It's a big commitment it's an important commitment from.
From my desk every 1 of our employees and to all of our stakeholders.
With that I'll turn it over to my partner Jackie our CFO to walk you through the financial results in the second quarter of this year Jacky.
Thank you Mark and good morning, everyone as.
As a reminder, in addition to the release of our second quarter earnings We filed a supplemental financial report this morning, which is available within the shareholder section of our website.
Starting with our second quarter results on page 19 of the company has continued to make steady progress in its digital transformation.
Digital AG land increased to 72% of total AUM at the end of the second quarter and an 85 per cent of total <unk> on a pro forma basis, including the announced other equity and debt portfolio sales.
The general AUM will represent 99% of total <unk> upon the closing of additional assets held for sale that are now classified as discontinued operations, including the wellness infrastructure of business.
For the second quarter reported total consolidated revenues were $237 million.
Represents a 249% increase from the same period last year.
Adjusted EBITDA was $15 million on a pro rata basis, which has continued to improve over the last year as the result of the company's scaling our core digital segments, which can be seen at the bottom of the page.
GAAP net loss attributable to common stockholders was $141 million or 29 cents per share.
It's not loss is primarily due to losses in our legacy non digital businesses that we now classify as discontinued operations.
Total company core epithelial with of $5 million loss, which is an improvement from prior periods driven by accelerated growth within our digital segments and lower corporate expenses.
Note that nearly all of our legacy assets, including wellness infrastructure are now classified as discontinued operations and no longer contributing to core off of thought.
Existing liquidity and anticipated legacy of monetization represent over $2 billion of untapped earnings power that will contribute to core <unk> as capital is redeployed in the near future.
During the second quarter, we returned net equity proceeds of $231 million from legacy asset monetization and $327 million year to date, including transactions closed after the end of the quarter.
The legacy monetization included $104 million from the sale of Dublin office properties of $102 million from the internalization of the bright spire management contract and $67 million from the sale of the hospitality portfolio.
This is more than halfway towards our 2021 full year guidance of 400 million to $600 million, which we expect to well exceed as a result of the OLED portfolio sale, which is anticipated to close by year end.
Moving to the next page consolidated digital revenues increased to $236 million, a 7% increase from last quarter, driven by new fees, resulting from additional DCP 2 commitments.
Looking at the right side of the page consolidated digital fee related earnings and adjusted the EBITDA increased to the $108 million during the second quarter, which is a 7% increase sequentially.
Turning to page 21, as part of the digital transformation. The company has completed strategic divestitures and undergone cost rationalization efforts during the first half of 2021 to operate more efficiently.
On that have significantly reduced G&A.
Annualized non digital G&A has decreased from $169 million at the beginning of the year only $70 million as of the second quarter through various initiatives, including the reduction of more than half of the company's non digital workforce and reducing the companys office footprint from 16 off.
This is at the beginning of the year the only 8 offices today.
The G&A savings related to the legacy non digital business was partially offset.
The investments into our digital platform in order to support the significant growth that we are expecting in the near and long term.
We continue to expect total company cash G&A of $100 million to $120 million. After the digital transformation is complete.
And through the second quarter. We are ahead of that planned at approximately $135 million of cash G&A from continuing operations.
Which is more than $15 million below what we had previously targeted by the end of 2021.
All of the while the company has continued to outperform our digital revenues and earnings.
While margins will continue to improve we anticipate modest growth in G&A as our digital revenue scale.
Turning to page 22 way of seeing continued growth in investment management and operating segments. During the first half of 2021.
Our annualized digital the revenues increased from $100 million the $137 million in digital FRE has increased from $41 million to $70 million over the last 2 quarters, driven by strong capital raising including DCP 2 <unk>.
Co investments.
The strong growth in digital operating segment revenues and earnings are the result of our continued rotation of the company's balance sheet with vantage stabilized data centers in July 2020, as the Colo in December 2020.
We will continue to grow digital revenues and earnings through our rotation of the company's balance sheet at the high quality digital assets.
Moving to slide 23, the company is in a strong position to meet or exceed our current 2021 guidance and long term earnings framework that we provided as part of our inaugural Investor Day in June.
We are maintaining our digital management fee revenues target range of 145 million per $155 million in 2021, and digital fee related earnings target range of 90 million to $95 million.
We had another strong quarter with DCP to reaching $6.6 billion and the commitments inclusive of capital raise subsequent the quarter end.
For our digital operating segment, we are maintaining our target range of 130 million to $140 million of revenues and 55 million to $60 million of EBITDA in 2021.
In addition to our 2021 guidance, we are reiterating our 2023 digital targets and 2025 framework or key driver of metrics that we recently discussed at our Investor day.
Turning to slide 24, the company successfully issued $500 million of notes securitized by investment management fee earnings with the Triple B investment grade rating in July.
This was a first of its kind of fun. The securitization that includes $300 million of term notes at a 3.9% interest rate and $200 million of variable funding notes of 3 month, LIBOR plus 3% that replaced our revolver and extended maturity from early 2000.
<unk> 22 to late 2026.
The early use of the proceeds was redeeming $86 million of 7 in the half percent preferred equity effectively lowering our incremental cost of capital by over 350 basis points. The.
The company M&A pipeline remains active and we plan to resolve the remaining cash to be the deploy towards these opportunities or continue to optimize our cost of capital.
Digital bridge has been a pioneer in the digital infrastructure of financings, having complete 16 securitization totaling over $7 billion of proceeds.
The securitization is have added significant value for our portfolio of companies, including exceptional the Nancy executions. Following our recent investments and vantage stabilized data centers and data bank.
And with that I'd like to turn it back the mark or he will lay out further details on our digital playbook. Thank you.
Thanks Jackie.
Day and are executing the digital playbook section I want to cover a topic, we hear a lot from investors today.
Which is the decision between buying and building digital infrastructure.
In today's market, where people appreciate just how attractive digital infrastructure is what.
What we've found is that multiples of increased in turn the popularity of our sector in our space has never been greater.
The other reason we wanted to highlight this as well our press releases make it easy understand where were buying globally. It's much harder to see how active we are as builders on the global basis.
Hopefully today, we can help you understand that better.
So first I'll start with some context around the fact that our 27 plus year track record as builders and buyers of digital infrastructure is absolutely mission critical to our success.
It has helped us navigate a variety of of market cycles, and it's really a distinct advantage, especially relative to the newcomers in the space, who really only bring the capital side.
To the equation.
Another important point is our flexible approach.
When we take to allocating capital.
So look we can do both that's the key and allows us to optimize each scenario generating better returns for you our investors over time.
Interestingly, we have found most of our investments end up benefiting from our expertise in both of these capabilities.
By and to build over the lifecycle of an investment.
So on the right hand side of the slide here today I want to highlight of really important framework, we use to look at these decisions.
Today trading multiples against replacement cost. This is a metric that I have often highlighted at many investor conferences and with some of you on our 1 on 1 discussions.
Would M&A multiples move higher.
The relative attractiveness of building increases will begin to allocate and we begin to allocate more of our resources and capital towards building.
This dynamic is present today and 2021.
With more of our capital being allocated to Greenfield development backed by great customer relationships and signing new long term leases.
Compared to M&A acquisitions.
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Let's talk about M&A for a second M&A.
M&A is a core capability of digital bridge, so before I discuss the business of new Greenfield construction, let's first understand our investment framework on dealmaking.
Well executed M&A enables us to accelerate our value creation by investing in best in class platforms I want to emphasize that word platforms, where we acquire a unique business that we use as the base to build a much larger company around bolt on smaller M&A deals that allow us to scale rapidly.
Buying is often the most efficient way to enter a new geographic region.
Or access of new customer base through new industry verticals.
Another compelling by factor is that given our reputation and relationships in the industry. We have access to a lot of proprietary deal flow.
Most of our acquisitions are proprietary and there's often occur at off market prices.
So by example, lets take a look of digital colony partners to <unk>.
7 of the 8 new deals we've announced in the last 12 months, our proprietary that's greater than 80% of our deal flow.
This is the same and DCP, 1 where 8 out of our 10 platforms for proprietary deals. So if you think about that for a second out of the last 18 platform transactions. We've done 15 of been proprietary this is an incredible metric.
Lastly, our capital markets expertise and our ability to form capital quickly makes us a really interesting value added partner to our portfolio of companies.
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So building.
Building the other side of the coin.
So this is what we really want to focus on today is talking about how we build on how we develop digital infrastructure.
Building is absolutely seminal to our ability to generate strong returns and to bring our vision to reality.
Did you rich companies are always building in fact, that's our pedigree that's our background.
And what we found is that this is where we generate superior economics as well.
The true value of building for our customers is what the cements our relationships.
Customers, who know you can deliver on time.
On their specifications are loyal and that ultimately leads to more business more growth and better returns.
On top of the trust that we've built with customers over the last 3 decades. The returns on building are generally superior the.
The longer time to market and especially when markets are elevated with M&A multiples like they are today.
When we build you've heard me say this before we follow the logos that means talking to our customers about where when and what they need.
This is a 24.7 365 day year job.
Constantly talking to customers.
Our greenfield investments are backed by customer commitments to take space.
Or at least access to our facilities.
The substantially lowers project risk and improves customer satisfaction at the end of the day.
Look another important aspect of the build equation is the experience of our management teams as I said earlier, we are builders that as our pedigree that is where we got started.
I can't think of of factor more correlated to the success than the competence of our management team.
And all of them.
Have they build capability that is part of their critical toolkit.
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So why is building sort of critical today of talks about it earlier.
2 things 1 multiples are high everyone knows that it's sort of the elephant in the room so to speak.
The chart I showed you earlier comparing market price of replacement costs.
Is towards the high end today, maybe the highest I've ever seen so you can see on the left market multiples for digital peers.
Have risen steadily over the past few years from below 20 X to over 25 extra day and private market multiples are even higher than this which is astounding in my 27 years of doing this.
Recent transactions for many assets have been even higher in that trading at many many multiples of the replacement cost.
So at the same time demand continues.
And this is really growing rapidly just look at the year over year of growth in Capex.
By our Hyperscale customers, it's really significant.
So the conditions that exist today are high market prices, but continued strong demand.
Making building more compelling than ever this is the setup.
The next stage.
So where are we building.
The short answer is simply everywhere and everything.
As you can see on the snap almost all of our portfolio of companies are actively building on a global basis.
In fact, its interesting to visually track for all of our portfolio of companies are busy at work executing for our value added customers.
From Latin America, with MTP, and ATP, and Scala and highlight where we're building mission critical infrastructure across data centers fiber towers and small cells.
Our home market here in the United States, and Canada, Databank Vantage day of vertical Bridge X net banfield.
All actively building for customers across the entire ecosystem.
And in Europe today advantage.
The vantage Europe building hyperscale campuses, all across Europe, the vantage towers, new build to suit towers fulfilling our customer needs. They are building mission critical fiber routes Atlas edge edge compute workloads.
In addition to that also digitally.
The EMS and at least wild stone.
And then Asia, our most important of new growth market agile edge point of P. CCW, all actively with shovels on the ground executing for our customers.
This is a business like no other business in the world today Theres not another digital infrastructure REIT on the planet.
That is actively building across 4 continents like we are today.
This is really where we're creating significant value for shareholders.
Next slide.
Well look here's the great case study today at database 1 of our balance sheet assets.
I wanted to do the same macro micro dynamic of outlined earlier when we're looking at a very specific market opportunity.
This case the micro case study on want to walk you through is the ground level economics that our new Salt Lake City campus for Databank.
Databank entered Salt Lake City in 2017, we acquired 3 data centers and the campus with significant growth capacity.
Look at the end of the day, it's been a terrific market for us it's been driven by the emergence of Salt Lake and the cloud centric market.
That's competitive with many larger more expensive markets.
The build case here as with others before it was driven by customer demand.
They needed more space and our ability to stand up new capacity every year has led to a growing relationship with multiple cloud scale customers.
It's also been of great economic trade for us where the build multiple on stabilized EBITDA of less than 10 X.
Compared to that other precedent and more recent market multiples in the mid to high twenties for other comparable businesses.
And it just doesn't end in Salt Lake day.
The bank is busy as I've highlighted 2 of another quarters building of Minneapolis, Atlanta, and other markets, where we're building and investing in capital projects that are massively accretive to you our shareholders.
This is just 1 example pick from around the world.
We're building value for our customers and for you our shareholders.
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So thats pretty amazing economics in Salt Lake, but it's just a great example of how we're building value.
I want to conclude today's presentation with the quick round of quick Roundup Hi.
Highlighting some of the amazing progress we've made the summer, especially since against most of some of our most important long term goals.
As we move into the second half of this year DCP 2 is hit and exceeded its fundraising target of $6.6 billion and.
And we are on track to meet and exceed our broader fundraising goals pushing through 17 billion of field.
Second we've continued to be active in deploying that capital into high quality digital platforms that are aligned with our vision for next generation networks.
Third on the corporate side, we're way ahead of schedule on finishing the mission 2 down 1 to go on the wellness.
For ESG I've highlighted the <unk> in the previous quarter, it's Super important to me, it's Super important Werent partners, our employees and all of our stakeholders. We believe we're making great progress here and in fact, we believe today as the global digital REIT. Our program is best in class.
Finally, our financial section Jack you did a great job of walking you through this today it speaks for itself in many ways.
We're growing we're growing fast and we're just at the front end of this all digital profile that will really be of catalyst. We think for us over the next few years as our iam business continues to grow and exceed our targeted projections and we add high quality investments of our balance sheet and an extremely disciplined way.
So.
That's our progress for the quarter I want to thank you for your time and attention today I don't want to continue to thank you for your support of digital bridge, we look forward to talking to all of you soon.
Thank you have a great day.
Thank you with that I'd like to turn it back over to the operator for Q&A.
Thank you we will now begin the question and answer session to join the question queue. You May Press Star then 1 on your telephone keypad.
We'll hear of Tony acknowledging your request.
If youre using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then 2.
Our first question comes from Ric Prentiss of Raymond James. Please go ahead.
Thanks, Good morning, guys.
1 of the rig.
Okay.
Mark I think you know clearly you pointed out on the slide of multiples are up in the digital infrastructure 1 of the things that's got to be driving that is low interest rate environment talk to us a little about what you all of his view on interest rates are and also of the flip side of what that might mean on refi opportunities for you.
Yeah.
So.
The current firms view and this quarter is neutral on interest rates.
Let me give you sort of are our thinking from a framework perspective.
On that we see.
The central banks today, being highly coordinated and that really keeps base rates stable to the lowest we've ever seen them.
But at the same time, whilst central banks of our coordinated and those base rates remain low we do see some volatility in spreads.
And we think in general investors are definitely being more selective Rick around risk.
And I think youre going to see perhaps more volatility.
And spreads over base rates of our time and <unk>.
Certain credits have better quality attributes than others.
And I think from once again from a firm view.
We've been very busy refinancing a lot of our businesses over the last year in anticipation of coming out of Covid that we might have.
On an extended period of inflation.
And once inflation hits on different companies.
The cost go up and in turn we think borrowing costs marginally will go up over time, it's just natural.
And thats not the function of the central banks base rates, but really a function of people re rating risk and I think thats going to be of topic, Rick that we'll be talking about from the next 18 months.
And how investors rewrite risk, particularly in digital infrastructure.
And so businesses that are of quality.
And have long term contracts and have more than greater than 60% exposure to investment grade counterparty risk there.
Of the things that rating agencies are going to look for so for example.
Jackie said, we just completed a very successful securitization.
Of our iam business and that was a really successful trade for us.
And the reason it was so successful records because the rating agencies really appreciated the quality of our cash flows and most importantly, they they really likes the quality of duration of our investment management products, which are typically 10% to 13 years in duration. So our management fees. Unlike a typical.
Private equity fund, we typically are getting 10 to 11 years of tenor of those cash flows against an anticipated repayment date of 5 years.
On the ability to take out the preferreds at a high 7 coupon and replace something Thats up 4% and of great trade for us.
So I think we'll continue to have.
High quality cash flows and we will continue to invest in high quality businesses, you've seen some of the Securitizations. We've done for example, with vertical bridge advantage of data bank all of those Securitizations were 7 to 8 times oversubscribed and.
Very well received by investors and rating agencies, but I think we generally are more concerned about inflation and where interest rates to be honest.
Airplanes 1 of the.
The big debates. This quarter, you mentioned was the everybody's earnings season, as we play through.
The small cell pacing in the U S. We've seen the tick up in the nice pickup in service business activity level at the macro tower, but small cells may be taking a backseat talk to us a little bit about what you see with the portfolio of company excellent net and how do you view of what's happening in the U S. As far as small cell pacing you talked about some building.
So look the small cell sector really has 3 tremendous opportunities in front of it today, Rick 1 is the Nord.
It's really when will Ralph around endorsed the Bureau of spectrum in enterprise strategy, We think thats. The game that sort of plays out in 2022 and beyond and we're pretty bullish about that today you know a lot of our indoor activity is just upgrading of <unk> networks <unk> networks and a lot of our stadium the venues in the airports.
The second opportunity is the outdoor.
The outdoor has been a little less busy than it's historically been but it is picking up.
I would say our backlog in the last quarter has begun to pick up with all 3 major logos, we don't anticipate dish being a significant small cell player probably for another 18 months, we do have some work happening with dish, but it's very limited to 2 geographies, where zoning is really tough.
I would say the backlog for outdoor demand right now.
And still strong I think we're going to post.
Somewhere between 5% and 7% organic growth at our domestic U S small cell business, and we're forecasting 20% to 30% EBITDA growth.
In our UK small cell business, which is fresh weighted so are.
Our small cell businesses are going well.
The new <unk>, new node activation through the second quarter here in the U S were up over last year up over 12%. So.
Coil and the team of <unk> net are busy deploying infrastructure and.
And then in the Summer Conference series.
Cowen and at your conference next week.
Is going to be a lot of discussion about that and I think we'll we'll obviously rich has the capability of sharing his thoughts on that directly but I remain incredibly bullish on outdoor and then the last thing of C. Ran so we're incredibly active on the CRM front that continues to be of product set. The next net has that others don't have.
We built over 850 <unk> over the last 3 years C ran hubs and we anticipate particularly Rick and of Virtualized radio access network environment.
Building those ran hubs is going to be incredibly important.
Once again moving out beyond 2022, and well through 2025, so I really think the best days for small cells are sort of ahead.
And we love both of our small cell businesses that we own and we're going to continue to invest in them heavily very bullish on small cells.
It sounds like having the Boingo platform gives you the nice ability to put some capital to work as we look out there.
Yes, no. If 1 goes has been incredibly active as well.
They obviously had a very successful.
The contract execution between the MTA in New York City and Horizon. So we're excited about that deployment that's of great win for Boingo.
There's a lot of buzz and discussion around.
Wi Fi 6.
Boingo, obviously has unique relationships of U S military basis of that.
Our proprietary so a lot of ability and capability Rick to deploy enterprise <unk> solutions on the <unk> platform. We're really excited about that and I think Wi Fi 6 of the significant step function change in technology, and we think carriers are going to continue to need while we don't think we know carriers will continue to you.
Use of our Wi Fi offload capabilities, which are really unique and highly differentiated against other players in the space and I think thats, where boingo really sees the future isn't Wi Fi offload.
And of course deploying enterprise grade file.
<unk> networks private <unk> networks, Rick on the <unk> balance.
Great appreciate it stay well, we'll see the next week.
Yes, Thanks, Mike appreciate it take care of ours.
Our next question comes from Jade Rahmani of <unk> W. Please go ahead.
Thank you very much.
Do you have the number in mind for pro forma liquidity post the T cell also inclusive of extra proceeds on wellness infrastructure would it be something north of $2 billion.
And what is your list of priorities in terms of deploying that capital.
Yes, sure Jade on a consistent with what we've released last quarter as well, but our views on that Hasnt changed. So if you look at the part of the dates associated with fortress.
The OED sales out of north of $500 million.
And then.
As we've said between both the wellness portfolio as well as on the RFP share position.
Non changed in value other than the runoff in the RFP share so.
That $2 billion number is if you do the math gets you in that range.
And then the second part of the however, you Sanjay that go on.
Thank you so the way, we're thinking about deploying that capital.
Is the same framework that we shared with you a year ago, and Jackie and I got on the chair, which is we've got a lot of different levers that we can we can pull on my.
My first priority will be to continue to support the existing digital operating businesses that are on balance sheet. Today, we're seeing tremendous opportunity. There. So vantage yieldco has the opportunity to acquire other facilities, we're going to do that.
The relationship there with vantage has been fantastic.
Their capabilities of leasing in the web scale community is second to none and.
We're really excited about adding more high quality long term contracted hyperscale data center campuses onto our balance sheet. So we're sort of telegraphing to you a little bit where we're going but.
We have a forward contract to acquire another facility and we'll go forward and we'll execute that and as Sorel and his team continue to build great high quality of web scale campuses of we'll look at that and use our balance sheet prudently along with third party capital, which we think is the the best way to do this second we talked about the development.
These are the data bank, that's going to require more capital as well.
You look at the unit level economics of what we've done in Salt Lake City, and Atlanta and other places.
Can't be debt right, so instead of going out and buying.
The data center business at 26 of 28 times I'd much rather build it 10 times like we showed you today. So we're going to continue to support data management, we're going to continue to put capital to work there and we think theres. Some tremendous opportunities ahead for database of yen Telegraphing, you, where we're going with our balance sheet.
I think also as we have the capability to grow our investment management platform I really want to thank Jackie and Brian Lee for their hard work on the securitization. We think we can accordion, but we don't think we know we can accordion that securitization. So as we continue to grow our field and grow our investment franchise, we can tap of our securitization and create more of.
Liquidity there for the company, which gives us the ability to redeploy that capital into paying down our preferreds, which is a real important thing that we want to get debt that RJ is so obvious right you're exchanging hi.
<unk> paid current against something that has less than a 4 handle we think we can really return a lot more liquidity increase our <unk> by taking advantage of of that type of financing and that was the pioneering financing I mean.
We created the cell tower securitization, we created the small cell securitization, we created Hyperscale datacenter securitization and now we figured out how to securitize investment management businesses I'm pretty sure of the likes of Blackstone EQT Stumpy KKR Theyre, all pretty happy about this and are actively on the phone with our bankers trying to finance their businesses long term.
The same way we have so this is a real watershed moment.
For us as the business there is a huge value unlock.
And getting rating agencies comfortable with our model now another use of the balance sheet will be to support of iron business. The investment management business has been a very good place rest of our capital the returns and fund 1 of been great. The early returns from 2 of our great and we think the balance sheet will be used to continue to support new investment management ideas.
As we continue to expand our ecosystem, which is an obvious growth opportunity for us in adjacencies. So the port vantage support data bank continue to work on securitization continue to support new investment management products, and then last but not least deploy the balance sheet into a new digital infrastructure vertical which we.
<unk> been looking at now from the better part of 2 years.
If we continue to find something interesting in towers, great. We find something in fiber, great, but right now of the knitting and so good in hyperscale in the edge compute between Databank and manage our intention and our capital right now from the balance sheet is going there that's where we see the best returns on the best yield for our investors, we're very excited about that.
Thank you for taking the questions.
Thanks, Jay project.
Our next question comes from Eric <unk> of Wells Fargo. Please go ahead.
Hi, great. Thanks for thanks for taking the question.
Perhaps you could talk about organic growth expectations, you were just talking about vantage SBC and day to bank.
Whether you have actually outperformed kind of that mid single digit range that you've talked about what levers you can pull there and then as well on database I was curious.
On the data bank growth rate and how the Z Colo integration has contributed or detracted from kind of the growth in that portfolio on how we should think about that over time.
Okay.
Yes, so thanks, Eric good to hear from you. Thanks for the for spending some time of that so look on the on balance datacenter yieldco for the year, we're at about 6.3% organic growth.
That was really facilitated by some great leasing in Santa Clara and we're continuing to see incredible leasing across the entire vantage portfolio. We telegraph that to you in the first quarter second quarter of that Hasnt abated.
<unk> and his team continue to out lease their peer group in Europe, and North America, and so we're pretty excited about that.
I would say on the day to bank side on the core portfolio really strong organic growth.
Our core markets. The <unk> integration, we said, we'd take a year.
We're ahead on that integration, we underwrote the first year that they would continue to be some churn in some sort of negative earnings as we stabilize that portfolio, which it needed need of capex that needed care of needed attention.
Well on Kevin has done an amazing job of integrating those assets and I would say, we'll probably end up being a quarter ahead.
In terms of full integration.
That business year to date is at about 2.5% organic growth, but once we get <unk> fully integrated we anticipate that business will grow on an organic based on somewhere between 6% and 9%, that's obviously, where we've historically grown that asset so.
Integration on plan leasing of strong both pipelines advantage on Databank are the strongest we've ever seen them at historic highs in terms of total pipeline in fact vantage globally as of our 400 megawatts on their pipeline today. So we're really bullish as I said earlier.
<unk>, we're super bullish about where we're going on edge and on Hyperscale.
Okay, great. Thanks, and just 1 follow up for me now this line.
Some debate.
Over the last year, so whether it makes sense for you to retain your REIT status or converting to a C Corp might give you more flexibility to pursue growth in some of the non renewable business line. So maybe you could just update us your latest thinking on that front.
Thanks.
Yeah, Yeah, no change really were very comfortable on the REIT structure. We continue to believe on a long term basis, there will be good advantages for our shareholders.
What we've always been pretty consistent with shareholders is we will update you every quarter.
Thinking changes or if it should change, but right now we're well within our bands of compliance as it relates to our <unk> on our tax free subsidiaries, we don't anticipate that changing in this quarter or the next quarter or even till the end of the year. So we've got a lot of runway there.
We're going to continue to put good REIT eligible assets on our balance sheet as we've telegraphed to you the entire investor community, we're going to continue to build on digital operating side of the business with once again REIT eligible good income assets.
On the runway for us to do that as you can see across our ecosystem of 23 companies globally. There is a lot of really good assets. We can we can add to our balance sheet overtime, yes, Eric we as you can see on the quarter alone. We did go ahead on all of that.
Expectations of the convert data back into the REIT qualified REIT subsidiary.
Status all of that was reflected this quarter, we anticipate all of the work that's been done of data bank to realize until boldly on certification by end of this year.
Alright, Thank you both of the questions.
Youre welcome.
Our next question comes from Daniel Day of B Riley Securities. Please go ahead.
Yeah, Hi, good morning, guys. Thanks for taking my questions. Just a couple on the island segment, great job on the quarter on fundraising.
Can you talk about what's driving the really strong fund raising environment just from the high level first and then maybe.
As you raise funds for DCP, 1 compared the DCP 2 are you noticing.
The increase in the number of PE funds out there with sort of the specific digital infrastructure mandate and then obviously that has implications for multiples of what you've talked about is there any implications maybe to think about per fee compression in the future for for sort of.
Digital infrastructure of private equity public.
There's a lot of focus on this from maybe the bigger private equity players.
Well look it's certainly becoming a more crowded space from an M&A perspective.
And certainly we've got a ton of on respect for our friends at Blackstone, and KKR and Macquarie and Brookfield I mean, these are folks that we see in auction situations day in and day out.
I've always told investors look we don't perform particularly well on auctions.
Actions are engineered to destabilize the opportunity for the buyer and create a great window for the seller and Thats why sophisticated sellers of assets hire bankers and you see the prices that are being paid today, because there's a lot of capital chasing a lot of assets.
What we've tried to do particularly here in fund 2 is we've stuck to what we do best which is proprietary deals the.
The first 7 yield net of fund to no bankers all proprietary that's what we'd like to do so we welcome the competition.
And certainly these are capable organization, but we've got a global team of 98 professionals and our investment management platform. They wake up every day on the only think about 1 thing which is digital infrastructure, where it most of these other shops. They have 2 or 3 folks that do it on a global basis. So we have a lot more folks out there hunting and executing and we believe that's what gives digital.
Compared to the advantage in the long run, let's talk about fund raising for a second your questions. There are a couple of layers to your questions..1 why do I think the environment is so good today.
I think it's good for us because.
Digital range has the 27 year track record of investing in the sector.
We are a trusted set of hands were on industry specialist the depth of our team and the depth of our operations and expertise is second to none globally and so investors I think appreciate that they appreciate that attention to detail. The appreciate the track record. They also really appreciate debt and severance has said many times over.
Builders, where operators that the.
The really big distinction when you see that map of our 23 companies globally.
Shovels on the ground building that's of pivot and a lever that we have that other folks don't have.
Our ability to work with customers and to execute on their behalf is a bit unusual in that infrastructure slash p/e world, where the likes of once again Brookfield KKR Blackstone those guys are not builders by pedigree. Their investors. We are on the other hand builders by pedigree and we have that capability in house that really.
Gives us once again comparative advantage, so I think investors today.
I've spent the last even during the pandemic of been traveling a lot of talking to investors in Asia, and Europe, and the U S and look they all are looking for differentiation.
People want to invest with specialists people that understand the street corner at a level that others don't and that's why we've been successful in fundraising people acknowledge our track record the acknowledged the depth of this team and digital infrastructure and I think that's really what set us apart.
So fund raising in the first fund was good.
We got to a little over $4 billion that took us just about a year to do that.
Digit range to I would say.
The $6.6 today, we've got a hard cap of $7.8 billion clearly investor commitments continue to come in we had a great closing this week will have more closings coming up and so that environment from what we do.
As a digital infrastructure specialist I think we'll continue to have a lot of success in fundraising. We've also got a lot of co investments that we're doing right now in terms of putting new capital to work on existing platforms. That's also going incredibly well new commitments and edge point, new commitments and Scala high line.
The vantage Europe.
These are great companies investors want more direct exposure to those types of opportunities and what's great about our platform is we're able to give it to them and so on the first fund we delivered over $5.3 billion of co invest against the $4 billion of fund investors like that they want to know that they can look at new opportunities and if there's a specific opportunity.
Many of our funds, where we can offer co investment it really gives investors a chance to go deeper on that opportunity that's super differentiated as well, there's a lot of nuances to our program that are differentiated and nuanced and investors like that so we're trying to be good listeners.
We spent the last year and a half during the pandemic being good listeners on listening to our Lps want and what we've found is they really like the program. So we're going to keep fund raising as I said earlier I am very optimistic about our 2021 objectives, we had a great second quarter third quarter shaping up really well and.
We think the future is quite bright for us in fund raising today.
Awesome. Thanks, Marc that's really comprehensive just quick follow up you talked about of I think of credit fund in the past just any update on when we might see start to see some capital formation of around that product.
Yeah. So look we're not at Liberty to talk about new products, but what I would tell you is.
We are having success with that team we've made numerous loans.
That we think are very attractive.
Thank investors are excited about the opportunity to invest with us in digital credit.
And we've got a great team that's out there executing on originating loans today that we've put on the balance sheet.
And as the warehouse capability, so there'll be more information I think in the on.
On our third quarter report around credit.
This quarter it was really about <unk>.
And I think in the in the next couple of quarters, we'll give you a little more information around what we're.
We're excited about it it's going it's going quite well.
Awesome Awesome I appreciate you taking my question, well I'll turn it over and best of luck.
Thank you.
Our next question comes from Colby <unk> of Cowen. Please go ahead.
Sorry about that I was on mute.
I just wanted to follow up on the the.
On the <unk> business from them it so.
Have recovered a private equity on before so I don't know what's the.
What's the appropriate to disclose where snap so I'll ask it anyways, but can you give us a sense how much of your I am on the strong <unk>.
Operating wealth funds versus private institutions, and whether theres any change their worth.
Flagging and then maybe even by geography.
How much typically comes from North America versus.
Europe, Asia, and middle East et cetera, and whether or not any events of late.
It may have changed how you think about that opportunity going forward and then secondly, as it relates to wellness.
You mentioned that you moved that to discontinued operations. You cited that you intend to sell that I guess within the next 12 months I think that the previous messaging had been you thought you'd be able to monetize that before year end just curious if thats changed and then lastly.
At the end of the day that the focus is helping in the shift to SFO.
<unk> per share growth I think in the past you've talked about being in a position to sustain plus 10% type of year over year growth. When do you think we're going to be in a position to start talking about at that felt more specifically in valuing the company more on that growth. Thank you.
Yes.
So colby thanks, 3 really good question, let me go in reverse order.
We've made enormous progress on our <unk> growth and Jackie and I've made it a high priority to return the company to positive territory and as you can see in this quarter. We've continued to make great momentum on that how do you get there you get there by growing your top line, which we are doing a great job of great core revenue growth is.
The year, particularly in our iam business and as we've telegraphed to the street, we're going to continue to grow our iam business and we're going to continue to grow our on balance sheet digital assets, which have great organic growth and great M&A opportunities and Greg built to suit opportunities. So we're clicking on all cylinders on I am we're clicking on all cylinders on the balance sheet and then we move to.
Costs, we talked about the most important thing is reducing our cost of debt.
This was a great start what we did in this quarter with the securitization and ultimately August 16th when we retire the first tranche of our preferreds.
As a positive step towards getting us towards the of a positive and creating that great <unk> organic growth that we believe this firm is capable of.
Non of lot of attention has been put on cost with <unk>.
<unk> inherited this company, we had over $300 million of run rate G&A was pretty a pretty big stack of G&A and we've done an amazing job being responsible stewards of the balance sheet and of the P&L and so in that context, we took it from 300 down below $200 million to $150 million and now down to a run rate of about 135.
$5 million, so we're making incredible strides on cost we think we can even drive costs down further and so what this all means is as you can imagine revenues are growing costs are down borrowing costs are down and you can just track our <unk> over the last 4 quarters and you can see where we're going we believe next year, we will be at.
<unk> positive you can just look at it you can see where we're going you can see the trend and then once we are asked with the positive how do we continue to grow that as you said Colby on the on a 10% CAGR basis per annum. That's a reasonable goal for us if you think about where the balance sheet assets are growing and what we're doing from the investment management business. So we're on track I'd actually tell.
You were probably a little ahead of track in terms of where we are I'm really pleased with our financial performance. This quarter I don't know of another digital REIT out there that has 7% sequential EBIT growth quarter over quarter.
But we did we grew EBIT by 7% from Q1 to Q2. So we're doing all of the right things and I think we're in a very very good spot.
Look on wellness, what I can tell you today is everything that we've told you previously holds true.
Discontinued ops as you know is an accounting treatment and has the necessary accounting on treatment. When you are in the process of moving away from a business line.
We have a lot of conviction around our dialogue around the ultimate.
The strategic outcome of a process that we've been running with.
With Barclays and so we think it will be successful.
Wish we had some news for you today, but what I would tell you is stay tuned and.
What we've told you previously is going to hold.
We're incredibly bullish about our ability to get the right price for that asset and ultimately find the right home for it so that is on track.
Fund raising what can we say and what we can say there is actually a very specific SEC rules about fundraising.
I can talk to you of out is just generally the environment and ultimately what we do on what our peers do.
So.
We have of global fundraising apparatus.
Since the foundation and founding of digit range in 2013.
<unk> been incredibly good of fundraising on a global basis, Ben Jenkins and I have a multi decade reputation of fund raising in all parts of the world. So our ability to fund raise back in 2013 has only been magnified here in 2021, as we've grown our platform and as we've grown our investments in digital rich I would say on this fund currently we're taking capital from all.
Parts of the World.
Our home market is obviously, our most important market here in North America, where we have great relationships with pension funds insurance companies Endowment and.
And that won't change I think that's where we really have always had a great reputation and of great track record that being said.
Whether youre us or whether Youre KKR Blackstone Carlyle all of US fund raised on a global basis and we've had success in all 4 key market. So for US the key markets of course of Europe, The Middle East Asia, and North America and.
In this particular fund we've got commitments from all over the globe, but as you can imagine the dominant area of capital formation for US. It is here in North America digital Rich always has been always will be going forward and.
And then just generally speaking the environment is strong.
There's a lot of appreciation for what we're doing Colby like I said before in the in the previous question. Our specialist approach our track record our ability to buy and bill and highly differentiated theres not another investment manager of the world that can do what we do and we've just got to keep our heads down on we've got to keep doing what we're doing because it's working.
Our ability to buy great platforms, and then build on top of that is really a point of differentiation for us. So I think generally speaking no real change in our approach of our strategy. It's the same approach I've taken for 3 decades and fund raising we will continue to take capital from from all parts around the world.
Thank you and call. The 1 other thing I'd just add on the core of <unk>, you'll see our inflection points coming coming said right as mark.
Reflective of what we've guided to you dive in the has not changed from that.
Cash G&A on a go forward basis will be of $100.120 million. So sitting here today in the first half of our run rate as we disclosed the $135. So just getting to that sustainable rate.
Youll see that that immediately flipped from Macquarie per Boe.
The positive right off the bat, so not fully within our control and certainly as we continue to fund raise of Mark talked about.
No doubt the of sustainable continued growth rate from there. So we're excited.
What about it.
The more great things to come.
Thank you guys.
Thanks look forward to seeing an extra colby. Thank you.
This concludes the question and answer session I would like to turn the conference back over to Mr. Kennedy for any closing remarks.
Yes.
Well. Thank you it's been a great great quarter and.
And I really want to thank our team.
In my closing remarks, we've got an incredibly talented and dedicated group of professionals that put this work out quarter over quarter from our investment management side to our finance team to our Investor Relations team into our global fund raising team, it's been an incredible year.
Spent a lot the sweep of Jackie talking about the year debt has been and we've had a lot of fun. This week with sovereign and putting together this presentation and I just would close of the thing I'm really proud I'm really proud of my first year as the CEO of this organization I am proud of my partners, particularly Jackie <unk> and his team who've done an incredible job transforming this.
Company.
And where we stand today as we sit on the precipice of an incredible opportunity of digital bridge, we of the best team we of the best platforms and we have the absolute best secular opportunity of any REIT in the world today. So.
So look I want to thank all of you for tuning in today on a thank you for your support and look it's going to be of great year going forward, we're going to of a strong finish to the end of the year and we look forward to connecting with all of you on the Summer Conference series wherever your coverage may be.
We're going to be on a lot of different places over the next.
710 day, so hopefully we will get to connect with all of you face to face and we hope. This call finds all of you will take care and have a great rest of the week Bye bye.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Okay.
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