Caliber Reports Fourth Quarter and Full Year 2024 Results

2024 Platform revenue increased 1.9% compared to prior year

2024 cost reductions position Caliber for improved 2025

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Caliber (NASDAQ: CWD; “CaliberCos Inc.”), a real estate investor, developer, and asset manager, today reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 (compared to fourth quarter 2023)

  • Platform revenue of $4.6 million, compared to $7.2 million
    • Asset management revenue of $4.6 million drove the stated results
    • No significant performance allocations were earned, compared to prior period
  • Platform net loss of $11.6 million, or $0.52 per diluted share, compared to Platform net loss of $1.9 million, or $0.09 per diluted share
    • Losses largely impacted by $8.6 million of one-time non-cash allowances and write-downs in accounts receivable and investments, respectively, in the fourth quarter
  • Platform Adjusted EBITDA loss of $1.0 million, compared to Platform Adjusted EBITDA of $1.6 million

Full Year 2024 Platform Financial Highlights (compared to full year 2023)

  • Platform revenue of $21.0 million, compared to $20.6 million
    • Asset management revenue of $20.6 million drove the stated results
    • Performance allocations of $0.4 million
  • Platform net loss of $19.6 million, or $0.89 per diluted share, compared to Platform net loss of $11.8 million, or $0.59 per diluted share
    • Losses largely impacted by $8.6 million of one-time non-cash allowances and write-downs in accounts receivable and investments, respectively, in the fourth quarter
  • Platform Adjusted EBITDA loss of $2.7 million, compared to Platform Adjusted EBITDA loss of $1.3 million
  • Fair value assets under management (“FV AUM”) of $794.9 million, a 7.2% increase compared to December 31, 2023, primarily due to the acquisitions of the West Ridge property in Colorado and Canyon Corporate Plaza property in Arizona, net market appreciation, and construction activity; partially offset by land parcel sales at Johnstown and the sale of a self-storage property
  • Managed capital of $492.5 million, a 12.5% increase compared to December 31, 2023, with originations of $69.0 million, partially offset by return of capital of $14.0 million

Management Commentary

“In 2024, we took decisive steps to position Caliber for long-term, sustainable profitability,” said Chris Loeffler, CEO of Caliber. “In May, we began implementing operating cost reductions to realign our expense structure with current market dynamics. These efforts began delivering measurable benefits in the second half of the year, with the full $6 million annualized impact expected in 2025.”

“Looking ahead, we have refined our strategy to focus on three specific asset classes – hospitality, multi-family and multi-tenant industrial – each of which is well positioned for growth. Additionally, we intend to increase our portfolio of income-producing assets and decrease the number of development projects. We believe this sharper focus will accelerate our path to consistent profitability. In addition, we are seeing early traction in our 1031 exchange program, which offers investors a compelling opportunity to access high-quality, income-generating assets, and we recently closed our first transaction.”

“As we exit a challenging period for commercial real estate investment, we believe we are well-positioned to capitalize on emerging opportunities with a leaner expense structure and more narrowly defined objectives that will help us achieve positive net operating income for the full year 2025.”

Business Update

The following are key milestones completed both during and subsequent to the fourth quarter ended December 31, 2024.

  • On November 26, 2024, Caliber raised capital of $2.0 million from the sale of its series A non-cumulative preferred stock and warrants to one investor.
  • On March 17, 2025, Caliber announced it had been qualified by the U.S. Securities and Exchange Commission to offer Series AA Cumulative Preferred Stock to raise up to $20.0 million through the offering of 800,000 shares with an initial stated value of $25.00 per share.
  • On March 20, 2025, Caliber entered into a securities purchase agreement with Mast Hill Fund L.P. (“Mast”), issuing a senior secured promissory note worth up to $1,666,666.67, a warrant for 200,000 shares of Class A common stock at $0.75 per share, and 200,000 shares of common stock. Simultaneously, the Company also entered into an equity purchase agreement with Mast to sell up to $25 million of common stock. This agreement also includes a common stock purchase warrant for an additional 200,000 shares at $1.50 per share.
  • On March 27, 2025, Caliber announced the launch of the Caliber 1031 Exchange, a full-service program that offers accredited investors access to highly curated real estate investment opportunities, enabling them to defer capital gains while diversifying their portfolios.

Fourth Quarter 2024 Consolidated Financial Results (compared to fourth quarter 2023)

  • Total consolidated revenue of $8.7 million, compared to $23.9 million reflecting the deconsolidation of Caliber Hospitality, LP and CHT, in March 2024, and DT Mesa in September 2024
  • Consolidated net loss attributable to Caliber of $11.4 million, or $0.51 per diluted share, compared to net loss attributable to Caliber of $2.4 million or $0.11 per diluted share
  • Consolidated Adjusted EBITDA of $1.5 million, compared to Consolidated Adjusted EBITDA of $6.5 million

Full Year 2024 Consolidated Financial Results (compared to full year 2023)

  • Total consolidated revenue of $51.1 million, compared to $90.9 million reflecting the deconsolidation of Caliber Hospitality, LP and CHT, in March 2024, and DT Mesa in September 2024
  • Consolidated net loss attributable to Caliber of $19.8 million, or $0.90 per diluted share, compared to net loss attributable to Caliber of $12.7 million or $0.63 per diluted share
  • Consolidated Adjusted EBITDA of $7.0 million, compared to Consolidated Adjusted EBITDA of $10.2 million

Conference Call Information

Caliber will host a conference call today, Monday, March 31, 2025, at 5:00 p.m. Eastern Time (ET) to discuss its fourth quarter and full year 2024 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.

NON-GAAP RECONCILIATIONS

(AMOUNTS IN THOUSANDS) (UNAUDITED)

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) (UNAUDITED)

 

 

Year Ended December 31, 2024

 

Year Ended December 31, 2023

 

Unconsolidated
(Wholly -
Owned)

 

Impact of
Consolidated
Fund and
Eliminations

 

Consolidated

 

Unconsolidated
(Wholly -
Owned)

 

Impact of
Consolidated
Fund and
Eliminations

 

Consolidated

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management

$

20,563

 

 

$

(3,684

)

 

$

16,879

 

 

$

16,982

 

 

$

(6,411

)

 

$

10,571

 

Performance allocations

 

379

 

 

 

(21

)

 

 

358

 

 

 

3,656

 

 

 

(17

)

 

 

3,639

 

Consolidated funds – hospitality revenue

 

 

 

 

26,476

 

 

 

26,476

 

 

 

 

 

 

68,905

 

 

 

68,905

 

Consolidated funds – other revenue

 

 

 

 

7,406

 

 

 

7,406

 

 

 

 

 

 

7,822

 

 

 

7,822

 

Total revenues

 

20,942

 

 

 

30,177

 

 

 

51,119

 

 

 

20,638

 

 

 

70,299

 

 

 

90,937

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

24,904

 

 

 

(965

)

 

 

23,939

 

 

 

21,808

 

 

 

(497

)

 

 

21,311

 

General and administrative

 

6,817

 

 

 

(41

)

 

 

6,776

 

 

 

6,807

 

 

 

(37

)

 

 

6,770

 

Marketing and advertising

 

751

 

 

 

 

 

 

751

 

 

 

1,053

 

 

 

(1

)

 

 

1,052

 

Depreciation and amortization

 

598

 

 

 

(5

)

 

 

593

 

 

 

551

 

 

 

(1

)

 

 

550

 

Consolidated funds – hospitality expenses

 

 

 

 

26,503

 

 

 

26,503

 

 

 

 

 

 

80,669

 

 

 

80,669

 

Consolidated funds – other expenses

 

 

 

 

5,870

 

 

 

5,870

 

 

 

 

 

 

9,162

 

 

 

9,162

 

Total expenses

 

33,070

 

 

 

31,362

 

 

 

64,432

 

 

 

30,219

 

 

 

89,295

 

 

 

119,514

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated funds - other - gain on sale of real estate investments

 

 

 

 

 

 

 

 

 

 

 

 

 

4,976

 

 

 

4,976

 

Other income (expenses), net

 

(2,654

)

 

 

(439

)

 

 

(3,093

)

 

 

649

 

 

 

(275

)

 

 

374

 

Interest income

 

559

 

 

 

(199

)

 

 

360

 

 

 

1,863

 

 

 

(1,513

)

 

 

350

 

Interest expense

 

(5,424

)

 

 

 

 

 

(5,424

)

 

 

(4,716

)

 

 

(1

)

 

 

(4,717

)

Net (loss) before income taxes

$

(19,647

)

 

$

(1,823

 

$

(21,470

)

 

$

(11,785

)

 

$

(15,809

)

 

$

(27,594

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(19,647

)

 

 

(1,823

)

 

 

(21,470

)

 

 

(11,785

)

 

 

(15,809

)

 

 

(27,594

)

Net income attributable to noncontrolling interests

 

 

 

 

(1,693

)

 

 

(1,693

)

 

 

 

 

 

(14,891

)

 

 

(14,891

)

Net income (loss) attributable to CaliberCos Inc.

$

(19,647

)

 

$

(130

)

 

$

(19,777

)

 

$

(11,785

)

 

$

(918

)

 

$

(12,703

)

Basic Platform income per share

$

(0.89

)

 

 

 

$

(0.90

)

 

$

(0.59

)

 

 

 

$

(0.63

)

Diluted Platform income per share

$

(0.89

)

 

 

 

$

(0.90

)

 

$

(0.59

)

 

 

 

$

(0.63

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

21,986

 

 

 

 

 

21,986

 

 

 

20,087

 

 

 

 

 

20,087

 

Diluted

 

21,986

 

 

 

 

 

21,986

 

 

 

20,087

 

 

 

 

 

20,087

 

__________________________________________

(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.

ASSET MANAGEMENT PLATFORM(1)

(AMOUNTS IN THOUSANDS) (UNAUDITED)

 

Three Months Ended December 31, 2024

 

Platform

 

Impact of Consolidated Fund and Eliminations

 

Consolidated

Revenues

 

 

 

 

 

Asset management

$

4,587

 

 

$

(634

)

 

$

3,953

 

Performance allocations

 

1

 

 

 

 

 

 

1

 

Consolidated funds – hospitality revenue

 

 

 

 

2,943

 

 

 

2,943

 

Consolidated funds – other revenue

 

 

 

 

1,790

 

 

 

1,790

 

Total revenues

 

4,588

 

 

 

4,099

 

 

 

8,687

 

Expenses

 

 

 

 

 

Operating costs

 

8,933

 

 

 

(383

)

 

 

8,550

 

General and administrative

 

1,327

 

 

 

(11

)

 

 

1,316

 

Marketing and advertising

 

243

 

 

 

1

 

 

 

244

 

Depreciation and amortization

 

151

 

 

 

3

 

 

 

154

 

Consolidated funds – hospitality expenses

 

 

 

 

3,312

 

 

 

3,312

 

Consolidated funds – other expenses

 

 

 

 

465

 

 

 

465

 

Total expenses

 

10,654

 

 

 

3,387

 

 

 

14,041

 

 

 

 

 

 

 

Other income (expenses), net

 

(4,122

)

 

 

14

 

 

 

(4,108

)

Interest income

 

45

 

 

 

(10

)

 

 

35

 

Interest expense

 

(1,466

)

 

 

 

 

 

(1,466

)

Net income (loss) before income taxes

$

(11,609

)

 

$

716

 

 

$

(10,893

)

Provision for income taxes

 

 

 

 

 

 

 

 

Net income (loss)

 

(11,609

)

 

 

716

 

 

 

(10,893

)

Net income attributable to noncontrolling interests

 

 

 

 

495

 

 

 

495

 

Net income (loss) attributable to CaliberCos Inc.

$

(11,609

)

 

$

221

 

 

$

(11,388

)

Basic Platform income per share

$

(0.52

)

 

 

 

$

(0.51

)

Diluted Platform income per share

$

(0.52

)

 

 

 

$

(0.51

)

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

22,456

 

 

 

 

 

22,456

 

Diluted

 

22,456

 

 

 

 

 

22,456

 

___________________________________________

(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.

 

Three Months Ended December 31, 2023

 

Platform

Impact of Consolidated Fund and Eliminations

Consolidated

Revenues

 

 

 

Asset management

$

6,005

 

$

(1,680

)

$

4,325

 

Performance allocations

 

1,182

 

 

(17

)

 

1,165

 

Consolidated funds – hospitality revenue

 

 

 

16,897

 

 

16,897

 

Consolidated funds – other revenue

 

 

 

1,558

 

 

1,558

 

Total revenues

 

7,187

 

 

16,758

 

 

23,945

 

Expenses

 

 

 

Operating costs

 

5,896

 

 

(790

)

 

5,106

 

General and administrative

 

2,148

 

 

(292

)

 

1,856

 

Marketing and advertising

 

166

 

 

(2

)

 

164

 

Depreciation and amortization

 

354

 

 

(213

)

 

141

 

Consolidated funds – hospitality expenses

 

 

 

20,993

 

 

20,993

 

Consolidated funds – other expenses

 

 

 

2,405

 

 

2,405

 

Total expenses

 

8,564

 

 

22,101

 

 

30,665

 

 

 

 

 

Consolidated funds – Other - gain on sale of real estate investments

4,976

4,976

 

Other income (expenses), net

 

355

 

 

(1,460

)

 

(1,105

)

Interest income

 

384

 

 

(313

)

 

71

 

Interest expense

 

(1,307

)

 

(2

)

 

(1,309

)

Net loss before income taxes

$

(1,945

)

$

(2,142

)

$

(4,087

)

Provision for income taxes

 

 

 

 

 

 

Net loss

 

(1,945

)

 

(2,142

)

 

(4,087

)

Net loss attributable to noncontrolling interests

 

 

 

(1,726

)

 

(1,726

)

Net loss attributable to CaliberCos Inc.

$

(1,945

)

$

(416

)

$

(2,361

)

Basic and Diluted Platform loss per share

$

(0.09

)

 

$

(0.11

)

Weighted average common shares outstanding:

 

 

 

Basic and diluted

 

21,270

 

 

 

21,270

 

PLATFORM REVENUE(1)

(AMOUNTS IN THOUSANDS) (UNAUDITED)

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Fund set-up fees

$

 

$

53

 

Fund management fees

 

2,844

 

 

2,461

 

Financing fees

 

34

 

 

(2

)

Development and construction fees

 

1,685

 

 

2,856

 

Brokerage fees

 

24

 

 

637

 

Total asset management

 

4,587

 

 

6,005

 

Performance allocations

 

1

 

 

1,182

 

Total revenue

$

4,588

 

$

7,187

 

___________________________________________

(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.

 

FVAUM 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, 2023

$

741,190

 

CHT contribution

 

29,900

 

Construction and net market appreciation

 

10,971

 

Assets sold(3)

 

(12,771

)

Credit(1)

 

(781

)

Other(2)

 

(1,771

)

Balances as of March 31, 2024

 

766,738

 

Assets acquired(4)

 

14,000

 

Construction and net market appreciation

 

27,994

 

Assets sold or disposed(3)

 

(22,994

)

Credit(1)

 

(12,835

)

Other(2)

 

310

 

Balances as of June 30, 2024

 

773,213

 

Assets acquired(4)

 

20,590

 

Construction and net market appreciation

 

11,910

 

Credit(1)

 

(431

)

Other(2)

 

1,679

 

Balances as of September 30, 2024

$

806,961

 

Construction and net market appreciation

 

(10,200

)

Credit(1)

 

1,810

 

Other(2)

 

(3,648

)

Balances as of December 31, 2024

$

794,923

 

 

 

FV AUM, by asset class

(AMOUNTS IN THOUSANDS) (UNAUDITED)

 

 

December 31, 2024

 

December 31, 2023

Real Estate

 

 

 

Hospitality

$

68,500

 

$

67,200

Caliber Hospitality Trust

 

236,800

 

 

201,600

Residential

 

161,700

 

 

138,000

Commercial

 

249,600

 

 

240,400

Total Real Estate

 

716,600

 

 

647,200

Credit(1)

 

72,351

 

 

84,588

Other(2)

 

5,972

 

 

9,402

Total

$

794,923

 

$

741,190

___________________________________________

(1) Other FV AUM represents undeployed capital held in our diversified funds.

(2) Credit FV AUM represents loans made to Caliber’s investment funds by our diversified credit fund.

(3) Assets sold during the year ended December 31, 2024, include a commercial asset, lot sales related to two development assets in Colorado, and one home from our residential fund.

(4) Assets acquired during the year ended December 31, 2024, include West Ridge, a 133 acre mixed-use land development in Colorado and Canyon, an office building conversion to multi-family residential.

MANAGED CAPITAL

(AMOUNTS IN THOUSANDS) (UNAUDITED)

 

 

 

 

 

Managed Capital

Balances as of December 31, 2023

 

 

 

$

437,625

 

Originations

 

 

 

 

19,099

 

Return of capital

 

 

 

 

(2,819

)

Balances as of March 31, 2024

 

 

 

 

453,905

 

Originations

 

 

 

 

18,936

 

Return of capital

 

 

 

 

(3,041

)

Balances as of June 30, 2024

 

 

 

 

469,800

 

Originations

 

 

 

 

23,372

 

Return of capital

 

 

 

 

(7,900

)

Balances as of September 30, 2024

 

 

 

$

485,272

 

Originations

 

 

 

 

7,552

 

Return of capital

 

 

 

 

(282

)

Balances as of December 31, 2024

 

 

 

$

492,542

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

December 31, 2023

Real Estate

 

 

 

 

Hospitality

 

$

49,260

 

$

43,660

 

Caliber Hospitality Trust(1)

 

 

97,414

 

 

70,747

 

Residential

 

 

96,687

 

 

74,224

 

Commercial

 

 

170,858

 

 

155,004

 

Total Real Estate(2)

 

 

414,219

 

 

343,635

 

Credit(3)

 

 

72,351

 

 

84,588

 

Other(4)

 

 

5,972

 

 

9,402

 

Total

 

$

492,542

 

$

437,625

 

_________________________________________

(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 December 31, 2024, and December 31, 2023, the Company had invested $16.1 million and $18.3 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 December 31, 2024, and December 31, 2023, the Company had loaned $0.4 million and $8.5 million to our funds.

(4) Other managed capital represents undeployed 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 SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(unaudited)

 

 

Revenues

 

 

 

 

 

 

 

Asset management revenues

$

3,953

 

 

$

4,325

 

 

$

16,879

 

 

$

10,571

 

Performance allocations

 

1

 

 

 

1,165

 

 

 

358

 

 

 

3,639

 

Consolidated funds – hospitality revenues

 

2,943

 

 

 

16,897

 

 

 

26,476

 

 

 

68,905

 

Consolidated funds – other revenues

 

1,790

 

 

 

1,558

 

 

 

7,406

 

 

 

7,822

 

Total revenues

 

8,687

 

 

 

23,945

 

 

 

51,119

 

 

 

90,937

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Operating costs

 

8,550

 

 

 

5,106

 

 

 

23,939

 

 

 

21,311

 

General and administrative

 

1,316

 

 

 

1,856

 

 

 

6,776

 

 

 

6,770

 

Marketing and advertising

 

244

 

 

 

164

 

 

 

751

 

 

 

1,052

 

Depreciation and amortization

 

154

 

 

 

141

 

 

 

593

 

 

 

550

 

Consolidated funds – hospitality expenses

 

3,312

 

 

 

20,993

 

 

 

26,503

 

 

 

80,669

 

Consolidated funds – other expenses

 

465

 

 

 

2,405

 

 

 

5,870

 

 

 

9,162

 

Total expenses

 

14,041

 

 

 

30,665

 

 

 

64,432

 

 

 

119,514

 

 

 

 

 

 

 

 

 

Consolidated funds - gain on sale of real estate investments

 

 

 

 

4,976

 

 

 

 

 

 

4,976

 

 

 

 

 

 

 

 

 

Other (loss) income, net

 

(4,108

)

 

 

(1,105

)

 

 

(3,093

)

 

 

374

 

Gain on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

35

 

 

 

71

 

 

 

360

 

 

 

350

 

Interest expense

 

(1,466

)

 

 

(1,309

)

 

 

(5,424

)

 

 

(4,717

)

Net (loss) income before income taxes

 

(10,893

)

 

 

(4,087

)

 

 

(21,470

)

 

 

(27,594

)

Benefit from income taxes

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(10,893

)

 

 

(4,087

)

 

 

(21,470

)

 

 

(27,594

)

Net (loss) income attributable to noncontrolling interests

 

495

 

 

 

(1,726

)

 

 

(1,693

)

 

 

(14,891

)

Net (loss) income attributable to CaliberCos Inc.

 

(11,388

)

 

 

(2,361

)

 

 

(19,777

)

 

 

(12,703

)

Basic net (loss) income per share attributable to common stockholders

$

(0.51

)

 

$

(0.11

)

 

$

(0.90

)

 

$

(0.63

)

Diluted net (loss) income per share attributable to common stockholders

$

(0.51

)

 

$

(0.11

)

 

$

(0.90

)

 

$

(0.63

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

22,456

 

 

 

21,270

 

 

 

21,986

 

 

 

20,087

 

Diluted

 

22,456

 

 

 

21,270

 

 

 

21,986

 

 

 

20,087

 

 

CALIBERCOS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

December 31, 2024

 

December 31, 2023

 

(unaudited)

 

 

Assets

 

 

 

Cash

$

1,766

 

$

940

Restricted cash

 

2,582

 

 

2,569

Real estate investments, net

 

21,572

 

 

21,492

Notes receivable - related parties

 

 

 

Due from related parties

 

7,070

 

 

9,759

Investments in unconsolidated entities

 

15,643

 

 

3,338

Operating lease - right of use assets

 

147

 

 

193

Prepaid and other assets

 

3,501

 

 

2,781

Assets of consolidated funds

 

 

 

Cash

 

549

 

 

2,865

Restricted cash

 

 

 

11,266

Real estate investments, net

 

45,090

 

 

185,636

Accounts receivable, net

 

163

 

 

1,978

Notes receivable - related parties

 

6,848

 

 

34,620

Due from related parties

 

320

 

 

12

Operating lease - right of use assets

 

 

 

10,318

Prepaid and other assets

 

284

 

 

11,665

Total assets

$

105,535

 

$

299,432

 

CALIBERCOS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

December 31, 2024

 

December 31, 2023

Liabilities and Stockholders’ Equity

 

 

 

Notes payable

$

50,450

 

 

$

53,799

 

Accounts payable and accrued expenses

 

9,532

 

 

 

8,886

 

Due to related parties

 

313

 

 

 

257

 

Operating lease liabilities

 

93

 

 

 

119

 

Other liabilities

 

750

 

 

 

420

 

Liabilities of consolidated funds

 

 

 

Notes payable, net

 

29,172

 

 

 

129,684

 

Notes payable - related parties

 

2,047

 

 

 

12,055

 

Accounts payable and accrued expenses

 

1,207

 

 

 

11,736

 

Due to related parties

 

79

 

 

 

101

 

Operating lease liabilities

 

 

 

 

13,957

 

Other liabilities

 

639

 

 

 

2,400

 

Total liabilities

 

94,282

 

 

 

233,414

 

 

 

 

 

Commitments and Contingencies (Note 12)

 

 

 

 

 

 

 

Common stock Class A, $0.001 par value; 100,000,000 shares authorized, 15,177,583 and 13,872,671 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

 

15

 

 

 

14

 

Common stock Class B, $0.001 par value; 15,000,000 shares authorized, 7,416,414 shares issued and outstanding as December 31, 2024 and December 31, 2023

 

7

 

 

 

7

 

Paid-in capital

 

43,996

 

 

 

39,432

 

Accumulated deficit

 

(56,607

)

 

 

(36,830

)

Stockholders’ (deficit) equity attributable to CaliberCos Inc.

 

(12,589

)

 

 

2,623

 

Stockholders’ equity attributable to noncontrolling interests

 

23,842

 

 

 

63,395

 

Total stockholders’ equity

 

11,253

 

 

 

66,018

 

Total liabilities and stockholders’ equity

$

105,535

 

 

$

299,432

 

Definitions

Assets Under Management

AUM refers to the assets we manage or sponsor. We monitor two types of information with regard to our AUM:

  1. 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.
  2. 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
December 31,

 

Year Ended December 31,

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income (loss) attributable to CaliberCos Inc.

$

(11,388

)

 

$

(2,361

)

 

$

(19,777

)

 

$

(12,703

)

Net income (loss) attributable to noncontrolling interests

 

495

 

 

 

(1,726

)

 

 

(1,693

)

 

 

(14,891

)

Net income (loss)

 

(10,893

)

 

 

(4,087

)

 

 

(21,470

)

 

 

(27,594

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) before income taxes

 

(10,893

)

 

 

(4,087

)

 

 

(21,470

)

 

 

(27,594

)

Depreciation and amortization

 

151

 

 

 

142

 

 

 

598

 

 

 

551

 

Consolidated funds' impact on fee-related earnings

 

(712

)

 

 

1,552

 

 

 

1,185

 

 

 

14,020

 

Stock-based compensation

 

656

 

 

 

709

 

 

 

2,378

 

 

 

3,726

 

Severance

 

41

 

 

 

 

 

 

244

 

 

 

19

 

Performance allocations

 

(1

)

 

 

(1,165

)

 

 

(358

)

 

 

(3,639

)

Other (income) expenses, net

 

(196

)

 

 

1,105

 

 

 

(1,211

)

 

 

(374

)

Investments impairment

 

4,304

 

 

 

 

 

 

4,304

 

 

 

 

Bad debt expense

 

4,079

 

 

 

 

 

 

4,079

 

 

 

 

Interest expense, net

 

1,421

 

 

 

1,238

 

 

 

4,865

 

 

 

4,367

 

Fee-related earnings

 

(1,150

)

 

 

(506

)

 

 

(5,386

)

 

 

(8,924

)

Performance allocations

 

1

 

 

 

1,165

 

 

 

358

 

 

 

3,639

 

Interest expense, net

 

(1,421

)

 

 

(1,238

)

 

 

(4,865

)

 

 

(4,367

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

Distributable earnings

 

(2,570

)

 

 

(579

)

 

 

(9,893

)

 

 

(9,652

)

Interest expense

 

1,466

 

 

 

1,309

 

 

 

5,424

 

 

 

4,717

 

Share buy-back

 

 

 

 

 

 

 

 

 

 

183

 

Other expenses (income), net

 

196

 

 

 

(1,105

)

 

 

1,211

 

 

 

374

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

Loss on CRAF Investment

 

 

 

 

1,339

 

 

 

 

 

 

1,339

 

Consolidated funds' impact on Caliber adjusted EBITDA

 

(94

)

 

 

589

 

 

 

548

 

 

 

1,788

 

Platform adjusted EBITDA

 

(1,002

)

 

 

1,553

 

 

 

(2,710

)

 

 

(1,251

)

Consolidated funds' EBITDA adjustments

 

2,517

 

 

 

4,944

 

 

 

9,694

 

 

 

11,419

 

Consolidated adjusted EBITDA

$

1,515

 

 

$

6,497

 

 

$

6,984

 

 

$

10,168

 

 

Caliber:
Victoria Rotondo
+1 480-295-7600
Victoria.Rotondo@caliberco.com

Investor Relations:
Lisa Fortuna, Financial Profiles
+1 310-622-8251
ir@caliberco.com

Media Relations:
Kelly McAndrew, Financial Profiles
+1 310-622-8239
KMcAndrew@finprofiles.com

Source: Caliber