The housing blitz that accompanied the COVID-19 pandemic propelled Realogy to new heights in 2020, with the corporate closing the yr with a fourth quarter that boasted $1.9 billion in income, a sum that matched the earlier quarter, an all-time excessive for the corporate. Income was up 36 p.c, or practically $500 million, from the fourth quarter of 2019.
For your complete yr, Realogy posted $6.2 billion in income, a rise of 6 p.c from the yr prior. The modest improve regardless of two record-setting quarters is as a result of second quarter COVID-19 induced pause that briefly hit the housing market.
“In a unprecedented yr, we have been capable of capitalize on the dynamic housing market, speed up our strategic progress, and seize important incremental transaction economics,” Realogy CEO Ryan Schneider mentioned in a press release. “With our strategic success and robust momentum, we imagine Realogy is well-positioned to guide into the longer term. 2021 is off to a really sturdy begin, and we’re excited as we glance forward.”
The corporate additionally noticed transaction quantity speed up. Mixed transaction quantity for the corporate’s own-side and franchise enterprise soared 45 p.c year-over-year within the fourth quarter.
For the total yr, Realogy’s whole market share held regular at 15.3 p.c, sustaining its place because the trade’s largest actual property holding firm by way of whole market share.
The corporate posted $572 billion in closed transaction quantity for your complete yr, a mirrored image of how scorching the housing market is, contemplating the trade’s largest firm might see quantity growth and, but, merely preserve its place as rivals skilled related transaction surges.
Regardless of the hovering transaction quantity, the corporate’s revenue shrank from the earlier quarter however was nonetheless far forward of final yr’s fourth-quarter loss. Realogy reported $18 million in internet earnings within the quarter and a primary earnings per share of $0.16.
Reported Internet earnings of $18 million and primary earnings per share of $0.16, a rise of $63 million vs. prior yr or $0.55 per share.
The corporate’s working earnings earlier than curiosity taxes depreciation and amortization (EBITDA) elevated 23 p.c — or $136 million — yr over yr. The soar was pushed by sturdy performances in mortgage and title, in addition to the transaction quantity will increase and the corporate’s personal strategic initiatives and price administration, Realogy mentioned in a launch.
A part of these strategic initiatives consists of debt management, which has been a serious focus of the corporate since Schneider took the reigns as CEO. The corporate lowered internet debt by roughly $500 million in 2020 and the corporate’s leverage ratio is the bottom because the firm went public in 2012.
“2020 was a yr of great operational and monetary execution for Realogy,” Charlotte Simonelli, Realogy’s govt vp, chief monetary officer, and treasurer. mentioned in a press release.
“Within the yr we delivered top-line progress, value efficiencies, spectacular profitability, and larger simplification whereas persevering with to spend money on the enterprise,” Simonelli added. “We seized market alternatives to enhance our capital construction, together with considerably decreasing internet debt and internet leverage, which additional strengthened Realogy’s monetary profile.”
Realogy’s sturdy full-year efficiency — even in mild of the corporate’s and trade’s early pandemic struggles — has additionally been a boon to the corporate’s share worth. Realogy was buying and selling at round $18 per share when the markets opened on Tuesday. In March 2020, that worth has fallen all the way in which down within the $2 per share vary.