Q3 2024 Colliers International Group Inc Earnings Call Transcript
Key Points
- Colliers International Group Inc (CIGI) reported solid growth across its operating segments, with engineering growing by 21% and real estate services revenues and capital markets rising by 17%.
- Assets under management increased by $2.4 billion during the quarter, reaching nearly $99 billion.
- The company completed strategic acquisitions, including Englobe in Canada, and continued its growth trajectory with additional acquisitions in Canada and Australia.
- Recurring revenues now contribute more than 70% of earnings, providing balance and predictability.
- Colliers was recognized on Time's list of World's Best Companies and Forbes World's Best Employers ranking for the second year in a row.
- Fundraising in the investment management segment fell below expectations, impacting the earnings outlook.
- The margin for the quarter declined slightly to 13.1% due to higher captive insurance reserves and the margin-dilutive effect of passthrough performance fees.
- The engineering segment's internal growth was flat due to the completion of several large project management contracts in the prior year.
- The company is experiencing a deceleration in leasing growth, with some peers reporting continued acceleration.
- Investment management fundraising was lower than expected, with some capital commitments being pushed to 2025.
Welcome to the Colliers International Third-Quarter Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking statements.
Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40-F, as filed with the US Securities and Exchange Commission.
As a reminder, today's call is being recorded. Today is Tuesday, November 5, 2024. And at this time, for opening remarks and introductions, I would like to turn the call over to Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.
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