The following is a summary of the CaliberCos Inc. (CWD) Q4 2023 Earnings Call Transcript:
Financial Performance:
Caliber reported a total consolidated revenue increase of 8.3% to $90.9 million for 2023 due to higher hospitality revenue.
The company reported a net loss of $12.7 million or $0.63 per share for 2023.
Asset Under Management (AUM) decreased by 0.6% to $741.2 million because of asset sales, offset by asset purchases.
Caliber's full-year 2023 platform revenue fell by 14.4% to $20.6 million due to lower asset management revenue, balanced by higher performance allocations.
The expenses surged by 29.3% to $119.5 million in 2023, mainly due to rising costs and increased headcount.
Interest expense increased significantly from $1.1 million in 2022 to $4.7 million in 2023 due to the rise in corporate debt.
Business Progress:
Caliber launched four new fund products in response to challenging macro environment.
Successful and profitable transactions executed including the sale of Northsight Crossing Retail Center and Southridge despite the challenging real estate industry environment.
The company sees positive return on investments with 26 selling agreements in place with regional broker dealers and investment advisors.
Caliber Hospitality Trust, managed by Caliber, acquired the Holiday Inn Newport News, which is expected to grow the trust's asset beyond the initial target of $1 billion AUM.
The company is dedicated to reach its targets, including a total AUM of $3 billion, and total annual platform revenue of $50 million by the end of 2026.
Caliber plans to grow AUM by expanding product offerings and developing the Caliber Hospitality Trust, also identifying opportunities in middle market real estate funds for revenue growth while managing cost structure in alignment to the growth model.
More details: CaliberCos IR
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