Colliers International Group Inc. (NASDAQ:CIGI) Q3 2023 Earnings Conference Call November 2, 2023 11:00 AM ET
Company Participants
Jay Hennick - Global Chairman & Chief Executive Officer
Chris McLernon - Chief Executive Officer, Real Estate Services
Christian Mayer - Chief Financial Officer
Conference Call Participants
Michael Doumet - Scotiabank
Stephen Sheldon - William Blair
Stephen MacLeod - BMO Capital Markets
Frederic Bastien - Raymond James
Jimmy Shan - RBC Capital Markets
Andrew Rosivach - Wolfe Research
Maxim Sytchev - National Bank Financial
Operator
Welcome to the Colliers International Third Quarter Investor Conference Call. Today's call is being recorded.
Legal counsel requires us to advise that the discussions 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. Additionally, information concerning that 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 November 2, 2023.
And at this time, for opening remarks and instructions, I would like to turn the call over to Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.
Jay Hennick
Thank you, operator. Good morning and welcome to our third quarter conference call. As the operator mentioned, I'm Jay Hennick and joining me today is Chris McLernon, Chief Executive Officer of our Real Estate Services business; and Christian Mayer, our Chief Financial Officer. This call is being webcast and can be accessed in our Investor Relations section of our website where you can find the presentation slide deck.
During the third quarter, Colliers achieved significant growth in our high-value recurring service lines with a 12% increase in outsourcing and advisory and a robust 23% increase in investment management. Our proven business model marked by a diverse array of high-value recurring services has continued to demonstrate our resilience.
Today, about 70% of our earnings come from recurring revenues which bolsters our ability to navigate through various market fluctuations, including the current disruptions affecting our transactional business. Since the release of our second quarter report back in August, we've seen further industry-wide declines in transaction volumes due to ongoing factors such as rising interest rates, stricter credit conditions and continued uncertainty around return to work dynamics. As a result, we've adjusted our outlook for the traditionally strongest fourth quarter to be more conservative in our stance, as Christian will outline in just a few minutes.