Colliers International reports Q1 adjusted EPS 86c, consensus $1.40

Reports Q1 revenue $965.9M, consensus $973.28M. "During the seasonally slow first quarter, Investment Management and Outsourcing & Advisory delivered robust growth, Leasing was up slightly and, as expected, Capital Markets declined considerably in line with overall market conditions. Since our initial outlook 90 days ago, we have seen higher interest rates and challenging debt markets impact transaction volumes. Now with the additional stress on the banking system and increasing limitations on debt availability, there is more uncertainty around property valuations. Until interest rates stabilize and financing of real estate transactions becomes more predictable, we expect transaction activity to remain muted," said Jay S. Hennick, Global Chairman & CEO of Colliers. "Aside from our Capital Markets segment, the momentum from the rest of our business is strong. Revenues from Investment Management and Outsourcing & Advisory increased 40% and 13%, respectively, and together these segments represent more than 60% of our overall Adjusted EBITDA. Having a large proportion of our earnings coming from these revenue streams highlights the transformation of Colliers into a much more balanced, diversified and resilient company. After quarter end, Colliers continued to build on its global platform by completing acquisitions in Australia and New Zealand in our Engineering & Design and Project Management segments. In addition, we announced the early redemption, effective June 1, 2023, of our outstanding 4% convertible notes. Eliminating the convertible notes will reduce interest costs and simplify our balance sheet. Our shareholders know that Colliers has a history of seizing its greatest opportunities during challenging times. We believe that higher interest rates and tighter access to capital gives us a tremendous advantage in completing acquisitions, recruiting key talent and scaling in our newer growth engines that will translate into additional value for shareholders," he concluded.