Bridge Investment Group Holdings Inc. (NYSE:BRDG) Q1 2023 Earnings Conference Call May 9, 2023 9:30 AM ET

Company Participants

Bonni Rosen - Head, Shareholder Relations

Robert Morse - Executive Chairman

Jonathan Slager - Chief Executive Officer

Katie Elsnab - Chief Financial Officer

Conference Call Participants

Michael Cyprys - Morgan Stanley

Alex Bernstein - JPMorgan

Bill Katz - Credit Suisse

Operator

Greetings. And welcome to the Bridge Investments Group First Quarter 2023 Earnings Call and Webcast. At this time, all participant are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bonni Rosen, Head of Shareholder Relations. Thank you, madam. You may begin.

Bonni Rosen

Good morning, everyone. Welcome to the Bridge Investment Group conference call to review first quarter 2023 financial results. Our prepared remarks include comments from our Executive Chairman, Robert Morse; Chief Executive Officer, Jonathan Slager; and Chief Financial Officer, Katie Elsnab. We will hold a Q&A session following the prepared remarks.

I’d like to remind you that today’s call may include forward-looking statements, which are uncertain outside the firm’s control and may differ materially from actual results. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our Form 10-K.

During the call, we will also discuss certain non-GAAP financial metrics. The reconciliation of the non-GAAP metrics are provided in the appendix of our supplemental slides. The supplemental materials are accessible on our IR website at ir.bridgeig.com. These slides can be found under the Presentations portion of the site along with the first quarter earnings call of that link. They are also available live during the webcast.

I will present our GAAP metrics and Katie will review and analyze our non-GAAP data. We reported a GAAP net loss to the operating company for the first quarter of 2023 of $67 million. The net loss was driven by an unrealized loss of $107 million related to our accrued performance allocation due to valuation reductions to selected real estate assets. Basic GAAP income per share for the first quarter of 2023 was $0.03 with a loss of $0.13 on a diluted basis.

It is now my pleasure to turn the call over to Bob.

Robert Morse

Thank you, Bonni, and good morning all. In the three months since our last earnings update, market volatility has continued across a number of fronts. Three bank failures, continued interest rate increases by the Fed, coupled with substantial quantitative tightening, ongoing concerns about GDP growth, the state of the labor markets in the context of numerous layoff announcements and the possibility of a hard landing.