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 %, 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 % from the yr prior. The modest enhance regardless of two record-setting quarters is because of the second quarter COVID-19 induced pause that briefly hit the housing market.
“In a unprecedented yr, we had 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 consider Realogy is well-positioned to guide into the long run. 2021 is off to a really robust 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 % year-over-year within the fourth quarter.
For the total yr, Realogy’s whole market share held regular at 15.3 %, sustaining its place because the business’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 sizzling the housing market is, contemplating the business’s largest firm may see quantity increase and, but, merely keep its place as opponents 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 revenue within the quarter and a fundamental earnings per share of $0.16.
Reported Internet revenue of $18 million and fundamental 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 % — or $136 million — yr over yr. The bounce was pushed by robust performances in mortgage and title, in addition to the transaction quantity will increase and the corporate’s personal strategic initiatives and value 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 diminished 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 government vp, chief monetary officer, and treasurer. mentioned in a press release.
“Within the yr we delivered top-line development, value efficiencies, spectacular profitability, and better 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 robust full-year efficiency — even in gentle of the corporate’s and business’s early pandemic struggles — has additionally been a boon to the corporate’s share value. Realogy was buying and selling at round $18 per share when the markets opened on Tuesday. In March 2020, that value has fallen all the way in which down within the $2 per share vary.