Colony Capital : 2020 Annual Report

2020 Annual Report

Dear Fellow Stockholders,

I hope this letter finds you well. Looking back on 2020, it is fair to say that no one could have anticipated the unprecedented adversity people across the globe, including our friends and families, all experienced due to COVID-19. I want to extend my deepest appreciation on behalf of all our employees to the incredible first responders, doctors, researchers, and volunteers who continue to help us manage through this crisis and have brought us back to a place where we can see hope on the horizon.

The past year has also been a remarkable period for those of us focused on building and enabling next generation digital infrastructure. Never has the relevance of digital connectivity been more obvious and critical to our daily lives. Without the connections that digital infrastructure supported, "social distancing" would have meant isolation personally and professionally, with even greater societal impacts than we already felt. This was the year that digital infrastructure united us and kept people connected, whether it was for work, school, medical services, entertainment, or most importantly connected to one another.

Digital infrastructure networks were stressed, as anyone who spent time on video calls can tell you, but ultimately, they performed and we are pleased to have played a key role in keeping them operating on behalf of our customers serving enterprises and consumers around the world. In fact, it was not just our networks that proved resilient under pressure, it was our people. Against the odds, facing a global pandemic and dislocation in the real estate sector of epic proportions, we not only survived, but turned that adversity into fuel to thrive. I am both grateful and impressed by our team's ability to find the grit and determination to push through their comfort levels and deliver.

And deliver they did! Despite the headwinds from the pandemic, Colony remained at the forefront of the investment management sector as the global leader in the digital infrastructure landscape, resulting in a truly transformational year for the company on several levels. Over that period, we rallied around a new mantra and a new narrative for our stakeholders, "Promises Made, Promises Kept". It is an attitude and an approach focused on setting out clear objectives and marshalling the resources to follow through and execute. Some of those key accomplishments included:

• Building liquidity and strengthening our capital structure to navigate the impacts of COVID by successfully amending our corporate revolver, securing permanent capital and future investment in partnership with Wafra, Inc., and launching a new convertible note offering that brought new investors into our ownership base.
• Successfully harvesting value from our legacy assets and streamlining the organization through the sale of our hospitality business, achieving the high end of our $700 million monetization guidance on our Other Equity & Debt assets, and reducing run-rate legacy costs by $55 million, well in excess of our original $40 million target.
• Continuing to invest in high quality digital assets, deploying more than $22 billion across all digital infrastructure sectors, including significant new investments on our balance sheet in DataBank and Vantage.
• Rapidly growing our digital investment management business, raising $7.4 billion in new fee- bearing third-party capital across our investment strategies, with a significant contribution

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