What was the change in net asset value (NAV) per share and how does it affect the valuation of the REIT structure?

Short answer

The excerpt you provided does not contain the specific figure for the change in DigitalBridge’s net‑asset‑value (NAV) per share for Q2 2025, nor does it detail how that change translates into the valuation of its REIT structure. To obtain the exact NAV‑per‑share movement you would need to consult the full earnings release (or the “Q2 2025 Presentation” linked in the Business Wire notice) where the company normally discloses the prior‑period NAV, the current‑period NAV, and the resulting per‑share change.

Below is a complete explanation of why the NAV‑per‑share number matters, how it is typically reported, and what its movement implies for the valuation of a REIT‑style vehicle such as DigitalBridge.

1. What is NAV per share and why it matters for a REIT

Because a REIT’s primary purpose is to own income‑producing real‑estate or infrastructure assets, NAV per share is the cornerstone metric used by analysts and institutional investors to gauge:

1. Growth of the underlying portfolio (through acquisitions, development, or asset appreciation).
2. Impact of leverage (debt adds to assets but also to liabilities, influencing NAV).
3. Capital allocation decisions (share buybacks, dividends, new issuances).

2. Typical ways a REIT reports NAV changes in an earnings release

1. Quarter‑over‑quarter (QoQ) change – compares NAV per share at the end of the current quarter with the prior quarter.
2. Year‑over‑year (YoY) change – compares with the same quarter a year earlier, stripping out seasonality.
3. Absolute dollar change – e.g., “NAV per share increased by $0.42 to $24.86.”
4. Percentage change – e.g., “a 1.7% increase YoY.”

In addition, the release often includes a reconciliation (NAV reconciliation) that shows how the company got from the previous NAV to the current NAV, itemizing:

• Operating earnings (core earnings) – earnings generated by the asset portfolio.
• Acquisitions / disposals – net effect of buying or selling assets.
• Depreciation / amortization / impairments – non‑cash adjustments.
• Changes in debt – net borrowing or repayments.
• FX impacts (if assets are global).
• Other adjustments – e.g., changes in fair‑value methodology.

3. How a change in NAV per share affects the REIT’s valuation

Key valuation ratios that incorporate NAV per share:

• NAV multiple (Price/NAV) – Market price ÷ NAV per share.
  
  • < 1.0 = Discount; ≈ 1.0 = Fair value; > 1.0 = Premium.
• Funds‑from‑operations (FFO) yield – FFO per share ÷ Market price.
  
  • When NAV rises faster than price, the FFO yield may compress, prompting analysts to re‑price the stock.

4. What to look for in DigitalBridge’s Q2 2025 release

Given the nature of DigitalBridge (a “digital‑infrastructure” REIT‑style vehicle), the NAV discussion will likely touch on:

1. Valuation of data‑center, fiber‑optic, and edge‑computing assets – usually marked to market quarterly.
2. Impact of interest‑rate environment – higher rates increase borrowing costs and can depress NAV if the discount rate used for asset valuation rises.
3. Acquisition activity – DigitalBridge frequently grows via strategic purchases; each acquisition adds to NAV (if purchased at a price below fair value) or subtracts (if at a premium).
4. Depreciation / amortization policies – Digital infrastructure assets have relatively long useful lives; the expense line may be modest, limiting NAV erosion.
5. Currency effects – The portfolio is globally diversified; FX gains/losses affect NAV.

When you locate the Q2 2025 Presentation, you’ll likely see a slide titled “NAV Reconciliation” or “NAV per Share – Q2 2025 vs. Q2 2024.” That slide will provide:

• Prior‑period NAV per share (e.g., $24.30)
• Current‑period NAV per share (e.g., $24.86)
• Absolute change (e.g., +$0.56)
• Percent change (e.g., +2.3%)
• Drivers (e.g., “+ $0.78 from acquisition of XYZ data‑center; – $0.22 from depreciation; – $0.00 from debt repayments”).

5. How to translate the NAV change into an assessment of the REIT structure

1. Calculate the new Price/NAV multiple

   • If the closing market price on Aug 7 2025 was $24.00 and the new NAV per share is $24.86, the REIT trades at a discount of ≈ 3.5% ((24‑24.86)/24.86).
     
   • Compare this discount to historic levels (e.g., if the REIT usually trades at a 5‑10% discount, a 3.5% discount suggests improved market perception).

2. Assess leverage

   • Look at Debt‑to‑NAV before and after the quarter. A rising NAV per share that outpaces debt growth improves the leverage ratio, lowering risk and potentially justifying a higher price multiple.

3. Impact on dividend sustainability

   • DigitalBridge’s distribution policy is often a fixed % of NAV (e.g., “distribute 5% of NAV per share”). An increase in NAV per share therefore increases the absolute distribution amount, which can be a positive signal for income‑focused investors.

4. Strategic positioning

   • If NAV growth is driven mainly by organic earnings (higher rents, better occupancy) rather than acquisitions, it signals strong operational performance—a positive for the REIT’s long‑term valuation. Conversely, NAV growth primarily from acquisition at premium may raise questions about future cash‑flow generation.

5. Forward‑looking implications

   • Analysts will project future NAV growth based on the current quarter’s drivers. A modest QoQ increase (e.g., +2%) might be incorporated into a multi‑year NAV growth model, which feeds into target price calculations.

6. Bottom line (given the information at hand)

• The precise change in NAV per share for Q2 2025 is not disclosed in the brief news snippet you provided. To answer the numeric part of the question you must refer to the full earnings release or the “Q2 2025 Presentation” linked in the Business Wire announcement.
• Conceptually, any increase (decrease) in NAV per share raises (lowers) the intrinsic value of DigitalBridge’s REIT structure, narrows (widens) the market discount/premium, and can affect distribution levels, leverage ratios, and investor sentiment.
• For valuation analysis, compute the new Price/NAV multiple, examine leverage, and consider the drivers of NAV change (organic earnings vs. acquisitions) to gauge whether the REIT’s market valuation is justified.

Next steps for you:

1. Open the Q2 2025 presentation on DigitalBridge’s investor‑relations site.

2. Locate the slide that reports “NAV per share – Q2 2025 vs. Q2 2024.” Note the dollar change and the percentage change.

3. Retrieve the closing share price on the earnings‑release date (or the average price for the quarter).

4. Perform the simple calculations above to determine the current discount/premium and assess how the NAV movement influences the REIT’s valuation.

If you can share the exact NAV figures once you have them, I can walk you through the precise valuation impact and model a short‑term price target.