Caliber Reports First Quarter 2025 Results

Focus on sustainable profitability reaffirmed May 15, 2025 16:15 ET | Source: Caliber SCOTTSDALE, Ariz., May 15, 2025 (GLOBE NEWSWIRE) -- Caliber (NASDAQ: CWD; “CaliberCos Inc.”), a real estate investor, developer, and asset manager, today reported results for the first quarter ended on March 31, 2025. First Quarter 2025 Platform Financial Highlights (compared to First Quarter 2024) Platform revenue of $3.5 million, compared to $4.7 million Asset management revenue of $3.5 million drove the stated resultsNo significant performance allocations were earned, compared to prior period Platform net loss of $4.1 million, or $3.59 per diluted share, compared to Platform net loss of $3.6 million, or $3.30 per diluted sharePlatform Adjusted EBITDA loss of $1.4 million, compared to Platform Adjusted EBITDA loss of $1.7 million Management Commentary “Building on the narrowed strategy we outlined earlier this year, Caliber is now actively executing with a focus in hospitality, multifamily, and multi-tenant industrial real estate," said Chris Loeffler, CEO of Caliber. "While our Q1 results reflect some of the transitional costs associated with this shift, our recent business developments set the stage for success. “Our recently announced partnership with Hyatt is a tremendous win for Caliber. The announcement is also a vote of confidence from an industry leader that provides a strategic advantage in building our Caliber Hospitality portfolio. “Our strategy is to continue focusing on fee-generating, income-producing assets while reducing our exposure to long-duration development projects. We have also strengthened our liquidity through new equity offerings, strengthened our balance sheet through financing, and improved our operating efficiency.” Business Update The following are key milestones completed both during and subsequent to the first quarter ended March 31, 2025. On March 17, 2025, Caliber announced an offering of Series AA Cumulative Redeemable Preferred Stock had been qualified by the U.S. Securities and Exchange Commission (“SEC”) and that the Company is seeking to raise up to $20 million through the offering.On March 27, 2025, Caliber announced the launch of its 1031 Exchange Program, a tax-deferral strategy that allows real estate investors to sell a property and reinvest all of the proceeds into a like-kind property while deferring capital gains taxes.On April 22, 2025, Caliber announced the recent Phoenix City Council’s unanimous approval of the Company’s Canyon Village redevelopment project, a retrofit of a distressed +300,000 square foot office building to a 376-unit rental multifamily residential building. The project also benefits from opportunity zone tax incentives.On May 8, 2025, Caliber announced that Caliber Hospitality Development (“CHD”) has entered into a Development Rights Agreement with an affiliate of Hyatt Hotels Corporation (NYSE: H) to exclusively develop 15 new Hyatt Studios hotels in target market areas within Arizona, Colorado, Nevada, Texas and Louisiana.On May 9, 2025, Caliber announced it closed a $22.5 million refinance on the Doubletree by Hilton Hotel in Tuscon, AZ, which is a holding of a Caliber-managed opportunity zone fund. The new $22.5 million loan was refinanced with a unit of Citibank at a fixed rate of 7.43% maturing in June 2030. Proceeds will be utilized for reinvestment across the Fund's portfolio. First Quarter 2025 Consolidated Financial Results (compared to First Quarter 2024) Total consolidated revenue of $7.3 million, compared to $23.0 million reflecting the deconsolidation of Caliber Hospitality Trust, Caliber Hospitality, LP, Elliot, DT Mesa, and Caliber Fixed Income Fund III, LLC (“CFIF III”) in 2024.Consolidated net loss attributable to Caliber of $4.4 million, or $3.85 per diluted share, compared to net loss attributable to Caliber of $3.8 million or $3.53 per diluted shareConsolidated Adjusted EBITDA loss of $0.1 million, compared to Consolidated Adjusted EBITDA of $2.2 million Conference Call Information Caliber will host a conference call today, Thursday, May 15, 2025, at 5:00 p.m. Eastern Time (ET) to discuss its first quarter 2025 financial results and business outlook. To access this call, dial 1-800-717-1738 (domestic) or 1-646-307-1865 (international). A live webcast of the conference call will be available via the investor relations section of Caliber’s website under “Financial Results.” The webcast replay of the conference call will be available on Caliber’s website shortly after the call concludes. Platform Financial Highlights Within this earnings release, we refer to performance results of the ‘Platform’. Platform refers to the performance of CWD itself, excluding the performance of any assets and funds that are included in our consolidated results, as required by the Generally Accepted Accounting Principles (“GAAP”). Management believes that Platform performance offers the most meaningful information needed to understand the value of CWD. The assets and funds that are consolidated into our GAAP presentation are included because Caliber is a guarantor of debt held by these assets and funds. While GAAP consolidation rules require CWD to include the performance and cash flows of these assets and funds in our consolidated financial information, CWD does not benefit from the performance of those assets and funds, except to the extent that CWD earns fees from managing the assets and funds (which are included in the Platform results). Management believes presenting Platform results, which exclude consolidated assets, directly shows the business performance that CWD stockholders benefit from. Consolidated Financial Results Caliber’s GAAP consolidated financial statements have been impacted by the deconsolidation of certain variable interest entities’ assets, liabilities, revenues, and expenses. These entities were deconsolidated because Caliber was no longer a guarantor on the respective entities’ third-party debt. Caliber’s GAAP financial metrics are impacted by the timing of deconsolidation. As such, prior periods presented may not be comparable due to the deconsolidation of certain entities in the current period. About Caliber (CaliberCos Inc.) (NASDAQ: CWD) With more than $2.9 billion of managed assets, including estimated costs to complete assets under development, Caliber’s 15-year track record of managing and developing real estate is built on a singular goal: make money in all market conditions. Our growth is fueled by our performance and our competitive advantage: we invest in projects, strategies, and geographies that global real estate institutions do not. Integral to our competitive advantage is our in-house shared services group, which offers Caliber greater control over our real estate and visibility to future investment opportunities. There are multiple ways to participate in Caliber’s success: invest in Nasdaq-listed CaliberCos Inc. and/or invest directly in our Private Funds. Forward Looking Statements This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate including, but not limited to, the Company’s ability to adequately grow cumulative fundraising, AUM and annualized platform revenue to meet 2026 targeted goals, and the viability of and ability of the Company to adequately access the real estate and capital markets. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the Company’s public offering filed with the SEC and other reports filed with the SEC thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law. CONTACTS: Caliber Investor Relations:Ilya Grozovsky+1 480-214-1915Ilya@caliberco.com NON-GAAP RECONCILIATIONS The following information reconciles the performance of the Platform to the consolidated GAAP presentation. Management believes that the Platform view of Caliber’s performance is more meaningful to a CWD shareholder as it includes all revenues and expenses generated by Caliber and its wholly-owned subsidiaries. ASSET MANAGEMENT PLATFORM(1)(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2025 Platform Impact of Consolidated Fund and Eliminations ConsolidatedRevenues Asset management$3,542 $(346) $3,196 Performance allocations 7 (6) 1 Consolidated funds – hospitality revenue — 3,919 3,919 Consolidated funds – other revenue — 145 145 Total revenues 3,549 3,712 7,261 Expenses Operating costs 4,168 (124) 4,044 General and administrative 1,592 (11) 1,581 Marketing and advertising 165 — 165 Depreciation and amortization 162 (5) 157 Consolidated funds – hospitality expenses — 3,465 3,465 Consolidated funds – other expenses — 458 458 Total expenses 6,087 3,783 9,870 Other income (loss), net 6 (372) (366)Interest income 33 (1) 32 Interest expense (1,611) — (1,611)Net loss before income taxes$(4,110) $(444) $(4,554)Provision for income taxes — — — Net loss (4,110) (444) (4,554)Net loss attributable to noncontrolling interests — (147) (147)Net (loss) income attributable to CaliberCos Inc.$(4,110) $(297) $(4,407)Basic and Diluted Platform loss per share$(3.59) $(3.85)Weighted average common shares outstanding: Basic and Diluted 1,146 1,146 Three Months Ended March 31, 2024 Platform Impact of Consolidated Fund and Eliminations ConsolidatedRevenues Asset management$4,555 $(1,385) $3,170 Performance allocations 171 (5) 166 Consolidated funds – hospitality revenue — 18,145 18,145 Consolidated funds – other revenue — 1,470 1,470 Total revenues 4,726 18,225 22,951 Expenses Operating costs 5,484 (222) 5,262 General and administrative 1,949 (9) 1,940 Marketing and advertising 106 — 106 Depreciation and amortization 183 (37) 146 Consolidated funds – hospitality expenses — 16,782 16,782 Consolidated funds – other expenses — 3,072 3,072 Total expenses 7,722 19,586 27,308 Other income (loss), net 452 (180) 272 Interest income 285 (168) 117 Interest expense (1,295) 1 (1,294)Net loss before income taxes$(3,554) $(1,708) $(5,262)Provision for income taxes — — — Net loss (3,554) (1,708) (5,262)Net loss attributable to noncontrolling interests — (1,457) (1,457)Net loss attributable to CaliberCos Inc.$(3,554) $(251) $(3,805)Basic and Diluted Platform loss per share$(3.30) $(3.53)Weighted average common shares outstanding: Basic and diluted 1,077 1,077 ____________________ (1)Represents the results of our asset management platform, which are presented on a basis that deconsolidates our consolidated funds (intercompany eliminations) and eliminate noncontrolling interest. PLATFORM REVENUE(1)(AMOUNTS IN THOUSANDS) (UNAUDITED) Three Months Ended March 31, 2025 2024Fund management fees 2,744 2,569Financing fees 74 73Development and construction fees 528 1,654Brokerage fees 196 259Total asset management 3,542 4,555Performance allocations 7 171Total revenue$3,549 $4,726 ____________________ (1)Represents the results of our asset management platform, which are presented on a basis that deconsolidates our consolidated funds (intercompany eliminations) and eliminates noncontrolling interest. FV AUM and Managed Capital (UNAUDITED) The following information summarizes management’s estimates of fair value related to the entire portfolio of investments that Caliber manages and the total amount of capital that is being managed across the portfolio. The fair value of our AUM conveys an indication of the overall health of our investments and potentially how much performance allocation Caliber would earn if those assets were sold. Managed Capital is used to evaluate, among other things, the amount of asset management fees we generate from the portfolio. FV AUM(AMOUNTS IN THOUSANDS) (UNAUDITED) Balances as of December 31, 2024$794,923 Assets acquired(1) 10,300 Construction and net market appreciation 25,800 Credit(2) 379 Other(3) (644)Balances as of March 31, 2025$830,758 FV AUM, by asset class(AMOUNTS IN THOUSANDS) (UNAUDITED) March 31,2025 December 31,2024Real Estate Hospitality$68,400 $68,500Caliber Hospitality Trust 244,900 236,800Residential 173,100 161,700Commercial 266,300 249,600Total Real Estate 752,700 716,600Credit(1) 72,730 72,351Other(2) 5,328 5,972Total$830,758 $794,923 ____________________ (1)Credit FV AUM represents loans made to Caliber’s investment funds by our diversified credit fund.(2)Other FV AUM represents undeployed capital held in our diversified funds. MANAGED CAPITAL(AMOUNTS IN THOUSANDS) (UNAUDITED) Balance as of December 31, 2024 $492,542 Originations 2,990 Return of capital (315)Balance as of March 31, 2025 $495,217 March 31,2025 December 31,2024Real Estate Hospitality$49,260 $49,260 Caliber Hospitality Trust(1) 97,157 97,414 Residential 98,617 96,687 Commercial 172,125 170,858 Total Real Estate(2) 417,159 414,219 Credit(3) 72,730 72,351 Other(4) 5,328 5,972 Total$495,217 $492,542 ____________________ (1)The Company earns a fund management fee of 0.70% of the Caliber Hospitality Trust’s enterprise value and is reimbursed for certain costs incurred on behalf of the Caliber Hospitality Trust.(2)Beginning during the year ended December 31, 2023, the Company includes capital raised from investors in CaliberCos Inc. through corporate note issuances that was further invested in our funds in Managed Capital. As of March 31, 2025 and December 31, 2024, the Company had invested $15.9 million and $20.4 million, respectively, in our funds.(3)Credit managed capital represents loans made to Caliber’s investment funds by the Company and our diversified funds. As of March 31, 2025 and December 31, 2024, the Company had loaned $0.4 million to our funds.(4)Other managed capital represents unemployed capital held in our diversified funds. Consolidated GAAP Results The following information presents our consolidated GAAP results which includes the performance of certain entities we manage where Caliber is the guarantor of debt owed by those entities, despite not having significant equity at risk. As a result of these guarantor commitments, Caliber is required under GAAP to include the assets, liabilities, revenues and expenses of those entities even though a shareholder of CWD stock is neither entitled to nor exposed by those entities’ benefits or obligations. This accounting outcome also removes revenues that we earn from those entities, which a shareholder of CWD stock would be entitled to. See discussion elsewhere related to CWD’s Platform performance. CALIBERCOS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended March 31, 2025 2024 (unaudited)Revenues Asset management revenues$3,196 $3,170 Performance allocations 1 166 Consolidated funds – hospitality revenues 3,919 18,145 Consolidated funds – other revenues 145 1,470 Total revenues 7,261 22,951 Expenses Operating costs 4,044 5,262 General and administrative 1,581 1,940 Marketing and advertising 165 106 Depreciation and amortization 157 146 Consolidated funds – hospitality expenses 3,465 16,782 Consolidated funds – other expenses 458 3,072 Total expenses 9,870 27,308 Other (loss) income, net (366) 272 Interest income 32 117 Interest expense (1,611) (1,294)Net loss before income taxes (4,554) (5,262)Benefit from income taxes — — Net loss (4,554) (5,262)Net loss attributable to noncontrolling interests (147) (1,457)Net loss attributable to CaliberCos Inc.$(4,407) $(3,805)Basic and diluted net loss per share attributable to common stockholders$(3.85) $(3.53)Weighted average common shares outstanding: Basic and diluted 1,146 1,077 CALIBERCOS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) March 31,2025 December 31,2024 (unaudited) Assets Cash$845 $1,766Restricted cash 2,518 2,582Real estate investments, net 21,514 21,572Notes receivable - related parties, allowance of $236 and zero, respectively 385 105Due from related parties, allowance of $3,985 7,366 6,965Investments in unconsolidated entities 15,523 15,643Operating lease - right of use assets 135 147Prepaid and other assets 2,664 3,501Assets of consolidated funds Cash 723 549Restricted cash 274 —Real estate investments, net 44,102 45,090Accounts receivable, net 181 163Notes receivable - related parties 6,475 6,848Due from related parties, allowance of $28 514 320Prepaid and other assets 424 284Total assets$103,643 $105,535 Liabilities and Stockholders’ Equity Notes payable$51,555 $50,450Accounts payable and accrued expenses 9,421 9,532Due to related parties 443 313Operating lease liabilities 86 93Other liabilities 1,317 750Liabilities of consolidated funds Notes payable, net 29,444 29,172Notes payable - related parties 2,114 2,047Accounts payable and accrued expenses 1,123 1,207Due to related parties 16 79Other liabilities 766 639Total liabilities 96,285 94,282 Commitments and Contingencies (Note 11) CALIBERCOS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) March 31,2025 December 31,2024Series A non-cumulative convertible preferred stock, $0.001 par value; 22,500,000 shares authorized, and 5,875 and 5,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively — — Common stock Class A, $0.001 par value; 100,000,000 shares authorized, 795,285 and 759,370 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 1 1 Common stock Class B, $0.001 par value; 15,000,000 shares authorized, 370,822 shares issued and outstanding as March 31, 2025 and December 31, 2024 — — Paid-in capital 45,205 44,017 Accumulated deficit (61,014) (56,607)Stockholders’ deficit attributable to CaliberCos Inc. (15,808) (12,589)Stockholders’ equity attributable to noncontrolling interests 23,166 23,842 Total stockholders’ equity 7,358 11,253 Total liabilities and stockholders’ equity$103,643 $105,535 Definitions Assets Under Management AUM refers to the assets we manage or sponsor. We monitor two types of information with regard to our AUM: Managed Capital – we define this as the total capital we fundraise from our customers as investments in our funds. It also includes fundraising into our corporate note program, the proceeds of which were used, in part, to invest in or loan to our funds. We use this information to monitor, among other things, the amount of ‘preferred return’ that would be paid at the time of a distribution and the potential to earn a performance fee over and above the preferred return at the time of the distribution. Our fund management fees are based on a percentage of managed capital or a percentage of assets under management, and monitoring the change and composition of managed capital provides relevant data points for Caliber management to further calculate and predict future earnings.Fair Value (“FV”) AUM – we define this is as the aggregate fair value of the real estate assets we manage and from which we derive management fees, performance revenues and other fees and expense reimbursements. We estimate the value of these assets quarterly to help make sale and hold decisions and to evaluate whether an existing asset would benefit from refinancing or recapitalization. This also gives us insight into the value of our carried interest at any point in time. We also utilize FV AUM to predict the percentage of our portfolio which may need development services in a given year, fund management services (such as refinance), and brokerage services. As we control the decision to hire for these services, our service income is generally predictable based upon our current portfolio AUM and our expectations for AUM growth in the year forecasted. Non-GAAP Measures We use non-GAAP financial measures to evaluate operating performance, identify trends, formulate financial projections, make strategic decisions, and for other discretionary purposes. We believe that these measures enhance the understanding of ongoing operations and comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they provide investors a view of the performance attributable to CaliberCos Inc. When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Our presentation of non-GAAP measures may not be comparable to similarly identified measures of other companies because not all companies use the same calculations. These measures may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments. Asset Management Platform or Platform Platform refers to the performance of the Caliber asset management platform, which generates revenues and expenses from managing our investment portfolio, which does not include any consolidated assets or funds. These activities include asset management, transaction services, and performance allocations. Management believes that this is an important view of the Company because it communicates performance of the Company that would be most useful for understanding the value of CWD. Fee-Related Earnings and Related Components Fee-Related Earnings is a supplemental non-GAAP performance measure used to assess our ability to generate profits from fee-based revenues, focusing on whether our core revenue streams, are sufficient to cover our core operating expenses. Fee- Related Earnings represents the Company’s net income (loss) before income taxes adjusted to exclude depreciation and amortization, stock-based compensation, interest expense and extraordinary or non-recurring revenue and expenses, including performance allocation revenue and gain (loss) on extinguishment of debt, public registration direct costs related to aborted or delayed offerings and our Reg A+ offering, the share repurchase costs related to the Company’s Buyback Program, litigation settlements, and expenses recorded to earnings relating to investment deals which were abandoned or closed. Fee-Related Earnings is presented on a basis that deconsolidates our consolidated funds (intercompany eliminations) and eliminates noncontrolling interest. Eliminating the impact of consolidated funds and noncontrolling interest provides investors a view of the performance attributable to CaliberCos Inc. and is consistent with performance models and analysis used by management. Distributable Earnings Distributable Earnings is a supplemental non-GAAP performance measure equal to Fee-Related Earnings plus performance allocation revenue and less interest expenses and provision for income taxes. We believe that Distributable Earnings can be useful as a supplemental performance measure to our GAAP results assessing the amount of earnings available for distribution. Platform Earnings Platform Earnings represents the performance of the Caliber asset management platform, which generates revenues and expenses from managing our investment portfolio, excluding any consolidated assets or funds. Platform Earnings per Share Platform Earnings per Share is calculated as Platform Earnings divided by weighted average CWD common shares outstanding. Platform Adjusted EBITDA Platform Adjusted EBITDA represents the Company’s Distributable Earnings adjusted for interest expense, the share repurchase costs related to the Company’s Buyback Program, other income (expense), and provision for income taxes on a basis that deconsolidates our consolidated funds (intercompany eliminations), Loss on CRAF Investment Redemption, Gain on extinguishment of Payroll Protection Program loans, and eliminates noncontrolling interest. Eliminating the impact of consolidated funds and noncontrolling interest provides investors a view of the performance attributable to the CaliberCos Inc. Platform and is consistent with performance models and analysis used by management. Consolidated Adjusted EBITDA Consolidated Adjusted EBITDA represents the Company’s and the consolidated funds’ earnings before net interest expense, income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, transaction fees, expenses and other public registration direct costs related to aborted or delayed offerings and our Reg A+ offering, the share repurchase costs related to the Company’s Buyback Program, litigation settlements, expenses recorded to earnings relating to investment deals which were abandoned or closed, any other non-cash expenses or losses, as further adjusted for extraordinary or non-recurring items. NON-GAAP ADJUSTED EBITDA(AMOUNTS IN THOUSANDS) (UNAUDITED) Three Months Ended March 31, 2025 2024 Net loss attributable to CaliberCos Inc.$(4,407) $(3,805)Net loss attributable to noncontrolling interests (147) (1,457)Net loss (4,554) (5,262)Provision for income taxes — — Net loss before income taxes (4,554) (5,262)Depreciation and amortization 162 183 Consolidated funds' impact on fee-related earnings 71 1,361 Stock-based compensation 661 400 Severance 51 7 Performance allocations (1) (166)Other income, net 366 (272)Investments impairment 279 — Bad debt expense 3 — Interest expense, net 1,578 1,010 Fee-related earnings (1,384) (2,739)Performance allocations 1 166 Interest expense, net (1,578) (1,010)Provision for income taxes — — Distributable earnings (2,961) (3,583)Interest expense 1,611 1,294 Other income, net (366) 272 Provision for income taxes — — Consolidated funds' impact on Platform adjusted EBITDA 364 348 Platform adjusted EBITDA (1,352) (1,669)Consolidated funds' EBITDA adjustments 1,210 3,856 Consolidated adjusted EBITDA$(142) $2,187

Caliber Reports First Quarter 2025 Results

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