Moaning about macro? You’re smoking something, says Colliers boss
The chief executive of Colliers has shrugged off the suggestion that macro concerns could prove problematic for the agency’s business following a solid set of first-quarter results.
Asked on an analyst call this week whether “the macro backdrop” and possibility of rising rates will affect transaction activity, Jay Hennick said: “Macro concepts really don’t affect Colliers. They never did, and anybody who thinks they do is smoking something.”
That is not to say investors will not push ahead with or pause deals depending on the asset class and outlook, Hennick added: “Some say as interest rates go up, we’re going to sell assets. Some say, we have shopping malls, we’re getting out of shopping malls because we don’t like it anymore. Others say logistics is impacted by supply chains, so they are not going to build as many logistics centres.”
The chief executive of Colliers has shrugged off the suggestion that macro concerns could prove problematic for the agency’s business following a solid set of first-quarter results.
Asked on an analyst call this week whether “the macro backdrop” and possibility of rising rates will affect transaction activity, Jay Hennick said: “Macro concepts really don’t affect Colliers. They never did, and anybody who thinks they do is smoking something.”
That is not to say investors will not push ahead with or pause deals depending on the asset class and outlook, Hennick added: “Some say as interest rates go up, we’re going to sell assets. Some say, we have shopping malls, we’re getting out of shopping malls because we don’t like it anymore. Others say logistics is impacted by supply chains, so they are not going to build as many logistics centres.”
But that degree of dynamism is exactly what the company wants in its non-recurring revenue business, the chief executive added.
“There’s more velocity. There’s more pipeline. There’s more activity in capital markets, in leasing, today than ever before,” he added. “And when I listen to the geniuses out there talking about the macro events and the tailwinds and all that stuff, they’re talking about owners of real estate potentially. They are not talking about those who serve those owners as we do.”
Hennick spoke as Colliers posted a near-30% year-on-year rise in revenue for the three months to 31 March at $1bn (£796m), and adjusted EBITDA of $121.5m, a third ahead of a year ago.
“Stuff happens,” Hennick said of the bigger economic picture. “But as you could see from our own results over the past 10 years, five years – pick it – we just continue to get stronger and grow better and gain share. So I think Colliers and, frankly, some of its peers have tremendous business models that are unappreciated by the marketplace.”
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