Welcome!




Expand Your Education with These Courses from
Bundle 1: CIPS Core Course (US Version).
Effective Presentation Skills for Sales Professionals: Skills for Sales Success: Part Five.
Bundle 3: CIPS Institute (US Version).
The Psychology of Consultative Selling: Skills for Sales Success: Part Four.
Bundle 2: CIPS Elective Courses (Non-US Version).

Real Estate Leader Posts Net Revenue of $831 Million

Have a comment on this article? Share on Facebook!

RISMEDIA, May 6, 2011—Realogy Corporation, a global leader in real estate and relocation services, recently reported results for the first quarter ended March 31, 2011. Realogy’s net revenue for the first quarter was $831 million, an increase of 1 percent compared to 2010. This was largely attributable to an increase in transaction volume in the company’s relocation and title and settlement services segments. EBITDA before restructuring and other items for the quarter was $25 million, an increase of $3 million—or 14 percent—year-over-year. Realogy’s reported EBITDA for the quarter was $11 million. For the quarter, Realogy recorded a net loss attributable to the company of $237 million.

“We are pleased to report that our first quarter 2011 operating results improved on a year-over-year basis, which is significant given the continuation of macroeconomic headwinds in the period as well as difficult comparisons to last year’s first quarter given the impact from the 2010 Homebuyer Tax Credit,” says Richard A. Smith, Realogy’s chief executive officer. “Our first-quarter gains at Cartus and Title Resource Group were driven by traction we are gaining on our long-term growth initiatives.”

Looking at Realogy’s core business drivers, both the Realogy Franchise Group (RFG) and NRT outperformed the national market in terms of average sales price. The average homesale price was up 3 percent at RFG and decreased at NRT in the first quarter of 2011 by 1 percent, compared to the 3 percent decrease in average home price reported by the National Association of Realtors (NAR). This was offset by a 4 percent year-over-year decrease in the number of homesale sides at RFG and a 3 percent decrease at NRT, the company-owned brokerage unit. These results were consistent with the 2 percent decrease in actual existing domestic homesale units reported by NAR. Cartus experienced an 8 percent increase in relocation initiations primarily due to increased volume from the Primacy acquisition. Cartus’ referral volume also increased 6 percent during the quarter. Due to expanded refinancing activity, Title Resource Group posted a 41 percent increase in refinance title and closing units and a 2 percent increase in the average price per closing unit.

“Looking ahead to the second quarter of 2011, we expect homesale sides to be down and average sales price to increase on a comparative basis to second quarter 2010,” says Tony Hull, Realogy’s chief financial officer. “Despite the poor year-over-year comparisons in reported existing homesale activity that will likely peak in this quarter, we continue to be encouraged that the residential real estate market is following a course of modest but steady progress. This can be gauged by the sequential monthly improvement in the seasonally adjusted annual rate of homesales of 4 percent that have been reported by NAR since last July.”

For more information visit www.realogy.com.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Categories: Real Estate News

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com