Realogy Reports Results for Third Quarter 2008

RISMEDIA, Nov. 7, 2008-Realogy Corporation, a global provider of real estate and relocation services, today reported results for the third quarter of 2008. Specifically, the company had third quarter 2008 net revenue of $1.3 billion, earnings before interest, income taxes, depreciation and amortization (EBITDA) of $129 million, and a net loss of $50 million.

Realogy’s EBITDA for the period was negatively affected by $45 million of non-cash equity losses and impairment charges from its 49.9% investment in PHH Home Loans LLC, its loan origination joint venture with PHH Corporation, as well as $15 million of restructuring charges. The net loss is after $152 million of interest expense and $54 million of depreciation and amortization expense.

“The current economic conditions of this country are weighing heavily on consumer confidence and thus on the housing industry,” said Richard A. Smith, Realogy’s president and CEO. “We are not immune from the macroeconomic shocks to the credit and financial markets. In spite of these extraordinarily difficult circumstances, we have remained focused on reducing our operating costs and investing in the growth of our business. In the past two years alone, our management team has improved Realogy’s profitability profile by more than $350 million through brokerage office consolidations, business optimization activities
and other cost-saving measures.”

In the third quarter, Realogy’s real estate business drivers experienced declines that were directionally in line with the National Association of Realtors and Fannie Mae. During this period, Realogy’s year-over-year home sale transaction sides declined by 15 percent at the Realogy Franchise Group (RFG) and were down by 10 percent at NRT, the company’s owned brokerage unit.

Likewise for the third quarter, RFG’s average home sales price decreased 7 percent and NRT’s average home sale price declined 12 percent compared to the same period in 2007.

These price declines were driven by various factors, including high inventory levels, the increased prominence of short sale and foreclosure activity and, particularly as it relates to NRT, a relative shift in the mix of business from higher price ranges to lower- and middlerange homes.

For more information, visit www.realogy.com.

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