Colliers reports major rebound in revenue

Performance exceeded 2019 levels except in office leasing

Colliers CEO Jay Hennick (Hennick, iStock)
Colliers CEO Jay Hennick (Hennick, iStock)

Colliers International reported $946 million revenue in the second quarter, up 72 percent from a year ago and 27 percent from 2019.

The strong performance was seen across the board except for office leasing.

“Office leasing is anything but clear right now, and I think that applies virtually around the world,” said Jay Hennick, Colliers’ chairman and CEO, during an earnings call Wednesday.

Hennick said office tenants are taking time to understand how to configure their space for when they finally bring back employees who have been working from home for 17 months.

Industrial leasing has been Colliers’ forte, and with the rise of e-commerce, the sector has helped lift the firm’s leasing revenues even as the office sector struggled. Revenue from leasing totaled $241 million in the second quarter, up more than 76 percent from a year ago but still 4.8 percent below the 2019 level.

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The company’s investment sales division reported $266 million in revenue in the second quarter, more than twice the figure of a year ago and 62 percent more than in 2019.

Colliers’ outsourcing and advisory division, which includes Colliers Engineering and Design, raked in $389 million in the quarter, up 51 percent from a year ago and 38 percent from 2019.

“We’re seeing a lot of advisory services around return-to-work” as businesses consider changes to their offices and other infrastructure to adjust to the new norm, Hennick said.

The company’s adjusted EBITDA in the second quarter was $137 million, up 59 percent from a year ago and 87 percent above the 2019 level. In addition to improved performance in capital markets and leasing, the strong result was also attributed to Colliers’ 2020 acquisitions of Dougherty, whose subsidiaries provide loan servicing and mortgage lending, and Maser Consulting, an engineering and design consulting firm.

Those firms have been rebranded as Colliers Mortgage and Colliers Engineering and Design.

Despite the revenue gains, the firm reported a loss of $416 million in the quarter because of the settlement of a long-term incentive arrangement with Hennick, who is the founder and the controlling shareholder of the company. Colliers and Hennick signed a five-year management services agreement in April.

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