If you look back and you look back at what the drivers of our business were prior to and leading up to and through the IPO, and you compare that to the drivers of our business today, we have a lot of new and we think pretty exciting initiatives that will take the strong foundation of what we had and add to that the potential growth of these new initiatives, and that’ll create an even stronger revenue and earnings stream going forward. Not the least of which is our initiatives in Logistics. Newbury, Secondaries, our retail net lease business. We’ve talked in the past about renewable energy infrastructure. So there’s a set of multiple drivers of business initiatives and as appropriate for the businesses that are longer tenured within Bridge.
Successor funds typically are as big as, sometimes bigger than predecessor funds, so that should provide some growth as well.
Bill Katz: Thank you.
Operator: Thank you. Our next question comes from the line of Michael Cyprys with Morgan Stanley. Please proceed with your question.
Michael Cyprys: Hey, good morning. Thanks for taking the question. So I’m going to circle back to some of the commentary you were making earlier around the financing markets. I was hoping maybe you could just elaborate a bit more on your access to the financing markets. How is that evolving at the fund level, at the asset level? What’s changing for you over the last couple of months? And as you look out over the course of the year, how do you expect that to evolve? And any particular color around where is it more challenged versus where do you have more access? And how does that inform your actions and steps on the deployment and realization side?
Robert Morse: Jonathan, do you want to address that?
Jonathan Slager serves: Sure. Yes. Look, we think that the markets are poised to be much more active. And again, there’s been this long period here that we’ve had a pretty big bid-ask spread in the major asset classes, particularly Multifamily and industrial. And there’s been a concern over whether the actions of the Fed are continuing to indicate further rate hikes. I think we’re very, very much toward the back end of that. I think, as we’ve said, we’re believers that the next action that the Fed will likely take is a rate drop. But I do think that there’s a lot of dry powder that we alluded to it in my comments, right? There’s a lot of dry powder that’s also poised and anxious to get into the market because as we see it, the secular demand drivers exceed the supply potential in the next five years to 10 years in both industrial and in residential.
And we see a huge addressable market, big opportunity, and we think Bridge is really well positioned for that. And one of our differentiators, as you probably well know, is that we have an internal debt capital markets team. And that debt capital markets team spends a tremendous amount of time with something in the order of 100 different lenders on a daily basis both looking for opportunities that might be coming from them, from borrowers that got over their skis on attractive opportunities that we might be able to help them with, but also in terms of just them being able to provide us with attractive capital. So as I alluded to in the remarks, or actually stated in the remarks, we are actually seeing spreads tighten. And so if we get a little bit of help from the underlying indexes, which I think are in some part connected to and driven by what the Fed does, I think we’re going to start to see activity really strengthen.
And our access to attractive debt capital will be there because we’re positioned for that.
Michael Cyprys: Great. And just a follow-up question on Multifamily. I was hoping maybe you could elaborate on some of the key trends you’re seeing across the Multifamily marketplace with more supply coming online. Just curious when you expect that new supply to fall off, what are you seeing across your markets in terms of rent growth? And anything else you’re able to elaborate on in terms of some of the steps you’re taking across your portfolio to navigate through this period?
Jonathan Slager serves: Yes, that’s a great question. This year we’re continuing to see the overhang of supply hitting a lot of our markets, but we see that waning toward the end of this year, meaning the supply pipeline really slowing down, and by 2025 we see demand exceeding supply again, which is not going to be the case this year and certainly was not the case last year. There’s this lag, as you probably well know. You conceive of finance and undertake a project and begin construction. It takes a couple of years until that project becomes an actual project in the market. So we can very well see what the supply pipeline is for the next few years, and we can very well see where the demand drivers are. So in some of the markets that got very heavily hit with supply, we think 2025 is going to start to be a year when that flips back around.
And by 2026 and 2027, we see really attractive markets in terms of supply-demand imbalance in favor of a lack of supply. And so we – in terms of what we’re doing operationally, that is one of – as you heard from us and you always hear from us, one of our core strengths. We spend a tremendous amount of time getting out ahead of the key performance drivers, making sure that we’re attracting the right amount of leads, that we’re closing on the leads properly, that everything at the asset level is very competitive. We’re not the kinds of people who want to follow. We sort of want to lead out in terms of being a market trendsetter and pace setter. And so we just were myopically focused on all those key performance drivers and making sure that we maintain the right balance between rent and rent growth and occupancy.
And across the portfolio, the rent growth is needed right now in the entire market. But as you heard me discuss, when we go back and we do measurements and metrics, Bridge’s outperformed the market pretty meaningfully.
Michael Cyprys: Great. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Adam Beatty with UBS. Please proceed with your question.
Adam Beatty: Thank you and good morning. Follow-up on fundraising, and just parenthetically, when they arrive, I hope the four horsemen can leave the apocalypse at home in the closet. We probably don’t need one of those. But anyway, just on fundraising and I think Bob mentioned that successor funds generally being larger than prior vintages. So just wondering for fundraising this year, either separately or collectively, how you expect that to trend? Do you expect fund sizes to be bigger across the board or some puts and takes there? Thank you.
