Colliers revenue falls as deal flow slows
Colliers has posted a decline in its third-quarter revenue, which was impacted by a 42% drop in its capital markets business.
The results come as Jay Hennick, chairman and chief executive of Colliers, predicted that capital markets and leasing will rebound when the market stabilises, potentially in H2 next year. Rival agency bosses have made similar predictions this week.
Capital markets revenue plunged year-on-year in Q3 to $160.3m (£131.3m), while revenue from its leasing business fell by 9% to $249.8m.
Colliers has posted a decline in its third-quarter revenue, which was impacted by a 42% drop in its capital markets business.
The results come as Jay Hennick, chairman and chief executive of Colliers, predicted that capital markets and leasing will rebound when the market stabilises, potentially in H2 next year. Rival agency bosses have made similar predictions this week.
Capital markets revenue plunged year-on-year in Q3 to $160.3m (£131.3m), while revenue from its leasing business fell by 9% to $249.8m.
The declines were offset by a 12% increase in revenue from its outsourcing and advisory business, reaching $527.2m in the third quarter, while its investment management revenue grew by 23% to $118.7m.
Overall revenue was down by 5% at $1.06bn during Q3 compared with the same period in 2022, while adjusted EBITDA was mostly flat at $144.9m.
Around 70% of Colliers’ earnings now come from its recurring services offer.
Hennick said that since Q2 this year, the agency had “seen further declines in transaction velocity”, owing to “market-driven factors such as rising interest rates, stricter credit conditions and continued uncertainty regarding tenants’ plans for return-to-office”.
“As a result, we’ve revised our outlook for the seasonally strongest fourth quarter to take a more conservative stance,” said Hennick. “Capital markets and leasing are truly essential services for investors, owners, and occupiers of real estate assets. They may be temporarily impacted right now but they will rebound once the market stabilises, potentially as early as the second half of 2024.”
He added: “We remain committed to creating meaningful value for our shareholders by continuing to grow our core business, expanding into new high-value recurring services, and seeking out strategic opportunities, especially during times like these.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
