Realogy President And CEO Richard Smith
New Jersey-based Realogy, the parent company of the Corcoran Group, Sotheby’s International Realty and Citi Habitats, reported a net loss of $441 million on $4.1 billion of revenue in 2011, according to Security and Exchange Commission documents filed yesterday.
The firm’s revenue remained unchanged from 2010, but the losses increased 345 percent from the $99 million it lost in 2010.Much of the disparity can be attributed to the $308 million more in former parent legacy benefits Realogy earned in 2010. Meanwhile, Realogy’s earnings fell 11 percent to $443 million.
“The U.S. economy remained weak in 2011, and our business results reflected that weakness,” said Realogy President and CEO Richard Smith, who was also elected Chairman of the Board effective March 15.
Realogy’s collection of brokerages, Realogy Franchise Group, saw residential transactions decreased 1 percent year-over-year to 909,610 and the average home price remained unchanged at more than $198,000. The company-owned brokerage, NRT, reported no change in sales but a 2 percent decrease in average sales price.
Realogy said it expected home sales “to increase at a high single-digit pace” based on figures from January and February, largely from an increase of activity at the lower end of the market. However, that trend will further depress prices, the firm acknowledged. — Adam Fusfeld
