Colliers’ acquisitions help boost company’s Q1 revenue

Brokerage has added mortgage financing, engineering to its portfolio

National /
May.May 04, 2021 04:04 PM
Colliers International CEO Jay Hennick (Colliers, iStock)

Colliers International CEO Jay Hennick (Colliers, iStock)

Colliers International reported strong results in the first quarter of 2021 — a rebound that company executives attributed, in part, to the firm’s strategy of acquiring companies that will diversify its portfolio.

Last summer, the brokerage acquired Dougherty, whose subsidiaries provide loan servicing and mortgage lending, and Maser Consulting, an engineering and design consulting firm.

Those new streams of revenue helped boost the company’s first quarter results: Its revenue was $775 million, up 23 percent compared to the same period last year. Net earnings during the first quarter came in at $24.8 million, or about 3.8 times more than the first quarter of 2020.

Based on those results, Colliers’ updated its 2021 financial outlook: It now predicts a 15 percent to 30 percent increase in revenue and earnings, up from 10 percent to 25 percent previously.

During the company’s Tuesday earnings call, CEO Jay Hennick said the company has become “more balanced and resilient,” thanks to “strength in recurring services, stabilizing transactional revenues, and a highly diversified business model.”

Revenue from Colliers’ outsourcing and advisory business hit $340 million, up nearly 50 percent from the same time last year. That accounted for about 44 percent of the firm’s revenue in the first quarter.

And the firm’s brokerage business, which was hit hard by the pandemic, has stabilized, according to Hennick. The capital markets division generated $210.5 million in revenue in the first quarter, up 47.2 percent compared to a year ago. The leasing division was aided by the strong performance in the industrial sector.

But when asked by an analyst about office leasing, Hennick was cautious, saying that there is a “lot of uncertainty” in the market, with tenants looking to secure cheaper renewals, or not taking any action.

“It’ll be interesting to see what happens to leasing for us in the second quarter,” he said. “But as you can see, in the first quarter, it’s still relatively flat, or it’s up but it’s not where it should be.”





    Related Articles

    arrow_forward_ios
    Vornado’s Steven Roth (Getty, iStock/Illustration by Ilya Hourie for The Real Deal)
    Urban retail not recovering like malls, shopping centers: Vornado
    Urban retail not recovering like malls, shopping centers: Vornado
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    Real estate’s richest get richer on Forbes’ billionaire list
    Real estate’s richest get richer on Forbes’ billionaire list
    Real estate’s richest get richer on Forbes’ billionaire list
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    The hotel recovery is far from complete
    The hotel recovery is far from complete
    The hotel recovery is far from complete
    HFZ, partners put historic Detroit building on the market
    HFZ, partners put historic Detroit building on the market
    HFZ, partners put historic Detroit building on the market
    Starwood Property Trust CEO Barry Sternlicht (Getty, iStock)
    Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
    Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
    These hotel markets have entered a depression
    These hotel markets have entered a depression
    These hotel markets have entered a depression
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...