Colliers International Group Inc. (NASDAQ:CIGI) Q2 2024 Earnings Conference Call August 1, 2024 11:00 AM ET
Company Participants
Christian Mayer – CFO
Chris McLernon – CEO, Real Estate Services
Jay Hennick – Global Chairman and CEO
Conference Call Participants
Stephen MacLeod - BMO Capital Markets
Stephen Sheldon - William Blair
Khing Shan - RBC Capital Markets
Himanshu Gupta - Scotiabank
Frederic Bastien - Raymond James
Daryl Young - Stifel Nicolaus
Operator
Welcome to the Colliers International Second Quarter Investors Conference Call. 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 U.S. Securities and Exchange Commission.
As a reminder, today's call is being recorded. Today is Thursday, August 1, 2024. And at this time, for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.
Jay Hennick
Thank you, operator. Good morning, and thanks for joining us for the second quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the company. With me today is Chris McLernon, CEO of Real Estate Services; and Christian Mayer, our Chief Financial Officer. As always, this call is being webcast and is available in the Investor Relations section of our website, along with a presentation slide deck.
During the quarter, Colliers delivered solid results with growth across all service lines and segments. Leasing revenues exceeded expectations, while capital markets saw modest growth for the first time in 24 months, albeit from a relatively low bar. With lower interest rates, greater availability of debt, and the narrowing of bid-ask spreads, we anticipate the deal activity and therefore sales volumes for Colliers should begin to recover from here. As expected, our high-value recurring service lines, outsourcing and advisory, and investment management continued to deliver solid and predictable growth during the quarter. Assets under management were slightly over $96 billion.
Since our business continues to meet expectations, we're maintaining our financial outlook for the year as Christian will elaborate on shortly. Earlier this week, we completed the previously announced acquisition of Englobe, a leading multidisciplined engineering, environmental and inspection services platform. This acquisition establishes Colliers as one of the top players in Canada, complements our rapidly growing engineering operations across the U.S. and Australia, and aligns with our strategy of increasing our high-value recurring revenue streams, which will now represent 72% of our earnings. Having such a large percentage of recurring earnings further underscores the Colliers highly differentiated business model and sets us further apart from the others.