Realogy Corporation, a global leader in real estate and relocation services, recently reported flat results for the year ending December 31, 2011.
Realogy’s net revenue for the year was $4.1 billion, which was flat as compared to 2010. Realogy’s EBITDA before restructuring and other items for the year was $476 million, a decrease of 11 percent year-over-year.
“The U.S. economy remained weak in 2011, and our business results reflected that weakness,” says Richard A. Smith, Realogy’s president and chief executive officer. “Despite the difficult macroeconomic headwinds and another challenging housing market in 2011, our revenues were flat year-over-year. While we experienced modest softness in our real estate franchising and brokerage segments, as did the rest of the industry, this was offset by continued growth in our relocation and title services segments.”
Smith was recently elected as Chairman of the Board in addition to his ongoing role as Chief Executive Officer and President. Smith’s appointment as Chairman will begin March 15, 2012.
In early February 2012, the company completed a refinancing transaction that resulted in the issuance of $593 million of 7.625 percent Senior Secured First Lien Notes due 2020 and $325 million of 9.00 percent New First and a Half Lien Notes due 2020, the proceeds of which were used to retire outstanding indebtedness.
“We had $918 million of debt maturing in 2013 that we were able to refinance, extending those maturities to 2020,” says Anthony E. Hull, Realogy’s chief financial officer. “As a result of this proactive transaction, which was well received in the financial markets, we have no substantial corporate debt maturities until 2016.”
“We anticipate first quarter 2012 home sales to increase at a high single-digit pace, and average sales price to be modestly down year-over-year as indicated by our preliminary January and February results,” says Hull. “The trend we are seeing currently is that in many of our markets, home affordability, particularly for first-time buyers, is driving activity at the lower end of the housing market. Assuming continuation of favorable employment trends and rising consumer confidence, we are encouraged about the prospects for 2012.”
For more information, visit www.realogy.com.