Colliers raises 2022 outlook again amid better-than-expected business activity

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Colliers International has raised its outlook for 2022 for the second time since May, joining two other major real estate brokerages in announcing solid revenue growth in the second quarter despite an expected slowdown in deal activity for the rest of the year. .

The Toronto-based company, the fourth-largest brokerage by revenue, reported a 20% year-over-year increase in revenue to just over $1.1 billion during the for the quarter ended June 30, driven by increased deal activity in the Americas and revenue from its growing investment management, real estate management and advisory businesses.

“Despite war and other economic and geopolitical turmoil in Europe, and the seemingly endless lockdowns in Asia, Colliers continues to perform through all market cycles,” CEO Jay Hennick told analysts Wednesday during the presentation. company results. “We are posting excellent figures despite the uncertainty surrounding office leasing. We are monitoring this very closely. People are rethinking how much space they need. Working from home is not uniform from company to company.

Necklaces joined JLLthe second largest brokerage, and based in New York Newmark reporting increases in revenue and business activity and reiterating or increasing their outlook for 2022.

Colliers raised its revenue outlook for 2022 to reflect higher revenue from acquisitions and stronger-than-expected sales and leasing activity so far this year.

Fueled by land and industrial property sales, the company saw a 28% revenue gain from its capital markets business in the quarter versus a year earlier, despite rising interest rates which dampened mortgage and construction lending. Rental revenue increased 20%, with year-over-year growth in office and industrial transactions.

“We had another strong quarter with growth in capital markets and office, industrial, multi-family and land leasing,” said Chief Financial Officer Christian Mayer. “It will definitely be more difficult in the second half of the year, and interest rates and market conditions will be part of that.”

Colliers has since May expanded its investment, advisory and property management offerings around the world through several acquisitions. It acquired majority stakes in Rockwood Capital, a New York-based property investment firm, and Paragon Building Consultancy Holdings Ltd., one of the UK’s leading construction and project management companies.

The company announced an agreement on June 30 to acquire a 75% stake in Versus Capital, a Denver-based alternative asset management firm that manages approximately $6 billion in investments, and announced this week that it had acquired a majority stake in the Australian construction engineering company Peakurban, based in Sydney.

Colliers plans to spend a record $1 billion on acquisitions this year as part of a six-year plan to diversify the brokerage firm’s investment management and other offerings, generate recurring revenue through contracts and expand its presence outside of North America.