CaliberCos Reports 43.8% Revenue Decline, Net Loss of $21.5 Million for Fiscal Year 2024

CaliberCos Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues of $51.1 million, down 43.8% from $90.9 million in 2023. This decrease was primarily attributed to a substantial drop in revenues from consolidated funds, particularly following the deconsolidation of Caliber Hospitality, LP and Caliber Hospitality Trust in March 2024. Asset management revenues increased by 59.7% to $16.9 million, while performance allocations plummeted by 90.2% to $358,000. The company recorded a net loss of $21.5 million, a 22.2% improvement from the previous year's loss of $27.6 million.

In terms of operational changes, CaliberCos has undergone a strategic reevaluation of its reportable segments, consolidating its operations into a single segment under its asset management platform. This shift reflects the company's growth and the evolving nature of its business, allowing for a more streamlined approach to performance assessment and resource allocation. The company also reported a total of $2.9 billion in managed assets, which includes assets under management and assets under development.

CaliberCos has made notable strides in expanding its managed capital, which increased to $492.5 million as of December 31, 2024, up from $437.6 million the previous year. The company has focused on growth in its hospitality and residential investment funds, with managed capital in these areas rising significantly. Additionally, the company is actively developing 1,796 multifamily units and 697 single-family units, alongside substantial commercial and industrial projects, indicating a robust pipeline of future revenue-generating assets.

Looking ahead, CaliberCos aims to enhance its fundraising capabilities and expand its investor base, particularly among high-net-worth individuals and institutional investors. The company plans to leverage its existing infrastructure to introduce new funds and platforms, including the Caliber Hospitality Trust, which is expected to grow its assets under management through tax-efficient acquisitions. However, the company faces challenges, including rising interest rates and economic volatility, which could impact its ability to raise capital and execute its growth strategy effectively.

In light of its current financial position, CaliberCos is exploring various strategies to address its liquidity needs, including raising $20 million through preferred stock financing and refinancing existing corporate notes. The company has acknowledged the uncertainty surrounding its ability to continue as a going concern, given its operating losses and the maturity of its debt obligations. Management is actively working to mitigate these risks while positioning the company for future growth in a competitive market.