Bridge Investment Group Reports Mixed Q3 Results, Net Income Turnaround

Bridge Investment Group Holdings Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased to $101.5 million from $106.3 million in the same period of 2023, reflecting a decline of 4%. This drop was primarily attributed to a 9% decrease in property management and leasing fees, which fell to $17.7 million, and a 35% reduction in transaction fees, down to $6.3 million. Conversely, development fees surged by 263% to $2.6 million, and insurance premiums increased by 20% to $5.6 million. Total investment income showed a significant recovery, reporting $11.0 million compared to a loss of $30.2 million in the prior year.

Net income for the third quarter was $10.6 million, a notable turnaround from a loss of $17.9 million in Q3 2023. Basic earnings per share for Class A common stock improved to $0.11 from a loss of $0.04. For the nine months ended September 30, 2024, total revenues rose to $309.1 million, up 4% from $296.5 million in 2023. However, net income for this period was modest at $1.3 million, recovering from a substantial loss of $88.1 million in the previous year.

The company’s total assets decreased to $1.25 billion from $1.29 billion at the end of 2023, while total liabilities also fell to $723.9 million from $743.5 million. Cash and cash equivalents increased to $61.9 million, up from $57.7 million. The company reported a net cash provided by operating activities of $74.8 million for the nine months, down from $111.2 million in 2023.

Strategically, Bridge Investment Group completed the Newbury Acquisition in March 2023 for $320.1 million, which contributed to the increase in fund management fees. The company has also faced challenges in the commercial office sector, leading to a cessation of fund management fees from Bridge Office Fund LP, which previously contributed $2.0 million to quarterly revenue.

Employee compensation and benefits rose by 14% to $189.7 million for the nine months, driven by inflation and increased headcount. The company’s focus remains on expanding its product offerings and managing its assets effectively amid fluctuating market conditions.