Q4 2021 Colliers International Group Inc Earnings Call

Speaker 1: Welcome to the Collier's International Fourth Quarter and Year-End Investors Conference call. Today's call is being recorded.

Welcome to the <unk> International fourth quarter and year end investors conference call.

Today's call is being recorded.

Speaker 1: Legal counsel requires us to advise that discussions scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties.

Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertainties.

Speaker 1: Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking state.

Actual results may be materially different from any future results performance or achievements contemplated in the forward looking statements.

Speaker 1: Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on form 40f as filed with the US Securities and Exchange Commission.

Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the company's annual information form as filed with the Canadian Securities administrators and in the company's annual report on form 40 F. As filed with the U S Securities and Exchange Commission.

Speaker 1: As a reminder, today's call is being recorded. Today is February 10, 2022.

As a reminder, today's call is being recorded today February 10th 2022.

Speaker 1: And at this time for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennig. Please go ahead.

And at this time for opening remarks, and introductions I would like to turn the call over to the global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead Sir.

Thank you.

Speaker 2: Thank you, operator. Good morning and thanks for joining us for this fourth quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the company and with me today is Christian Bayer, Chief Financial Officer.

Operator, good morning, and thanks for joining us for this fourth quarter conference call.

<unk>, Chairman and Chief Executive Officer of the company and with me today is Christian Mayer Chief Financial Officer.

Speaker 2: As always, this call is being webcast and is available in the investor relations section of our website. A presentation deck is also available there to accompany today's call.

This call is being webcast and is available on the Investor Relations section of our.

Our web site.

<unk> deck is also available there to accompany today's call.

As announced this morning, Colliers delivered very strong fourth quarter financial results with full year revenues exceeding the $4 billion milestone.

Speaker 2: As announced this morning, Colliers delivered very strong fourth quarter financial results with full year revenues exceeding the $4 billion milestone.

Speaker 2: Capital markets, leasing and outsourcing and advisory were all up significantly across all service lines and across all geographies, while investment management delivered record results, raising more than $6 billion in capital and finishing the year with more than $50 billion in assets under management.

Capital markets leasing.

We're seeing an advisory were all up significantly.

Ross all service lines and across all geographies, while investment management delivered record results.

More than six billions in capital and finishing the year with more than $50 billion in assets under management.

Speaker 2: With a globally balanced and highly diversified business model, significant recurring earnings, and a sharp focus on global growth opportunities, Collier's is stronger and more resilient than ever.

With a globally balanced and highly diversified business model significant recurring earnings and a sharp focus on global growth opportunities colliers is stronger and more resilient than ever.

As you know last month, we announced that we were investing in the salt infrastructure, a leading trans Atlantic investment management firm with more than $8 billion in assets under management.

Speaker 2: As you know, last month we announced that we were investing in Basalt Infrastructure, a leading transatlantic investment management firm with more than $8 billion in assets under management Irving Friedman Bieber

Speaker 2: adding another highly differentiated investment business that specializes in the important utility, transportation, energy and renewables, and communications sector.

Adding another highly differentiated investment business that specializes in the important utility transportation energy and renewables and communication sectors.

Speaker 2: Together with the previously announced Milan-based Anterion, which we're acquiring to augment our existing operations in Europe , we expect to add more than $12 billion in assets under management to this segment of our business once both of these transactions are completed.

Together with the previously announced small land based antirion.

Which we're requiring to augment our existing operations in Europe , we expect to add more than $12 billion in assets under management to this segment of our business. Once both of these transactions are completed.

Speaker 2: As you know, last year we announced our new Enterprise 2025 growth strategy. The goal is to double our profitability and generate more than 65% of our EBITDA from recurring revenue streams over the incoming five years.

As you know last year, we announced our new enterprise 2025 strategy.

<unk> doubled our profitability and generate more than 65% of our EBIT.

Recurring revenue streams over the coming five years.

Speaker 2: We finished year one well ahead of our internal targets, and we continue to make excellent progress.

We finished year, one well ahead of our internal targets and we continue to make excellent progress.

Speaker 2: If we're able to achieve our current five-year plan, it will be very good news indeed for our shareholders.

If we're able to achieve our current five year plan it will be very good news indeed for our shareholders.

With our strong growth plan strong local brands and growth platform.

Speaker 2: With our strong growth plan, strong growth global brand, and growth platform, well-balanced and highly diversified business model, unique enterprising culture and significant inside ownership, Colliers is better positioned today than at any time in our history to continue to create value and to generate superior returns for shareholders.

<unk> highly diversified business model unique enterprising culture, and the significant inside ownership colliers is better positioned today than at any time in our history to continue to create value and to generate superior returns for shareholders.

Speaker 2: However, despite all of these characteristics and unique attributes, our company remains significantly undervalued when compared to others in my view. I have been investing in businesses and building companies for many years now and I say this with very strong conviction.

However, despite all of these characteristics and unique Acura reviews, our company remain significantly undervalued and when compared to others in my view.

We have been investing in businesses and building companies for many years now and I say this with very strong conviction.

Speaker 2: Few companies have our growth prospects. Few have the experienced and financially committed leadership team we do. And fewer still have our long-term record of performance. A track record of greater than 20% annualized return.

Few companies have our growth prospects.

The experienced and financially committed leadership team and we do and fewer still have our long term record of performance.

That record is greater than 20% annualized.

Utilized returns.

Speaker 2: over more than 27 years.

Over more than 27 years.

Speaker 2: With that said, let me now turn things over to Christian for comment and then we'll open things up to questions. Christian? Thank you, Jay. As announced this morning, Collier has reported very strong fourth quarter financial results. My comments follow the flow of the slide posted on the investor relations section of Colliers.com to accompany this call.

With that said, let me now turn things over to Christian.

For comment and then we'll open things up to questions Christian.

Thank you Jay.

As announced this morning, <unk> reported very strong fourth quarter financial results by.

My comments follow the flow of the slides posted on the Investor Relations section of <unk> Dot com to accompany this call. Please note that the non-GAAP measures measures referenced on this call are defined in this morning's press release.

Speaker 2: Please note that the non-GAF measures referenced on this call are as defined in this morning's press release.

Speaker 2: All references to revenue growth are expressed in local currency.

All references to revenue growth are expressed in local currency.

Our revenues for Q4 were $1 3 billion up 48% relative to the prior year period with revenues up strongly across all service lines and geographies.

Speaker 2: Our revenues for Q4 were $1.3 billion, up 48% relative to the prior year period, with revenues up strongly across all service lines and geographies.

Speaker 2: growth to the quarter was predominantly internally generated. Compared to 2019 pre-pandemic peak levels, capital markets revenue is roughly 60% and leasing was up 12% with office leasing recovering to within 5% of 2019 levels.

For the quarter was predominantly internally generated.

<unk> 2019, pre pandemic peak levels capital markets revenues were up 16% and leasing was up 12% with office leasing recovering with five to within 5% of 2019 levels.

Fourth quarter consolidated adjusted EBITDA was $192 million up 25% from $155 million reported one year ago.

Speaker 2: Fourth quarter consolidated adjusted Yup'udah was $192 million, up 25% from $155 million reported one year ago, with margins at 14.3% vs. 17% in the prior year quarter.

With margins at 14, 3% versus 17% in the prior year quarter.

Speaker 2: Our margin was impacted by increased performance-based incentive compensation and the reinstatement of variable costs, mainly attributable to the strong growth in transaction activity.

Our margin was impacted by increased performance based incentive compensation and the reinstatement of variable cost mainly attributable to the strong growth in transaction activity.

Speaker 2: The Americas region's fourth quarter revenues were $814 million, up 54% over the prior period. Community growth was exceptionally strong, with leasing activity at 77% led by industrial.

The Americas region fourth quarter revenues were $814 million up 54% over the prior period.

Revenue growth was exceptionally strong with leasing activity at 77% led by industrial.

Speaker 2: Capital markets activity was up 66% and was led by industrial, land, and multifamily asset classes.

Capital markets activity was up 66% and was led by industrial land at multifamily.

Asset classes.

Speaker 2: Office leasing activity showed steady improvement in Q4, although remained below pre-pandemic levels.

Obviously leasing activity showed steady improvement in Q4, although remain below pre pandemic levels.

Speaker 2: Outsourcing and advisory revenue is about 29% driven by engineering and design, valuation, and loan servicing, as well as recent acquisitions.

Outsourcing and advisory revenues were up 29% driven by engineering and design evaluation and loan servicing.

As well as recent acquisitions.

Speaker 2: Adjusted EVA dealt with $94 million, up 34% from last year, with a margin impacted by significant incremental performance-based incentive compensation from strong year-over-year growth in operating results, the re-assignment of variable costs, and higher support staffing costs.

Adjusted EBITDA was $94 million up 34% from last year with a margin impacted by significant incremental performance based incentive compensation from strong year over year growth in operating results the reinstatement of variable cost and higher support staffing costs.

Speaker 2: Amino revenues for Q4 were $233 million, up 32% from one year ago, with robust growth across all service lines, led by outsourcing and advisory and capital markets.

EMEA revenues for Q4 were $233 million up 32% from one year ago with robust growth across all service lines led by outsourcing and advisory and capital markets.

Speaker 2: Adjusting even that was 42 million, up 19% from last year on higher revenues, although margin was impacted by revenue mix from higher project management activity.

Adjusted EBITDA was $42 million up 19% from last year on higher revenues, although the margin was impacted by revenue mix from higher project management activity.

Speaker 2: In the Asia-Pacific region, fourth quarter revenues were $219 million, up 36 percent, driven by strong capital markets activity across the region, but especially in Australia and New Zealand. Adjusted EBITDA was $38 million, up 7 percent relative to the prior year quarter, and was affected by higher performance-based incentive compensation.

In the Asia Pacific region third quarter fourth quarter revenues were $219 million.

36% driven by strong capital markets activity across the region, but especially in Australia and New Zealand.

EBITDA was $38 million up 7% relative to the prior year quarter and was affected by higher performance based incentive compensation.

Investment management revenues were $80 million.

Speaker 2: Investment management revenues rating land up 83% versus the prior year period.

83% versus the prior year period.

Speaker 2: After eliminating the impact of pass-through carried interest, revenues were up 45% driven by management fee growth.

After eliminating the impact of pass through carried interest revenues were up 45% driven by management fee growth.

Speaker 2: Assets under management were $51 billion at quarter end, up 29% from one year ago, and capped off a record year of fundraising with $6.1 billion of new capital commitments from investors.

Assets under management were 51 billion at quarter end.

Up 29% from one year ago, and capped off a record year of fundraising with $6 1 billion of new capital commitments from investors.

Speaker 2: Adjusted EBITDA for the quarter was $28 million, up from $18 million in the comparative quarter on solid flow-through from incremental management fee revenue.

Adjusted EBITDA for the quarter was $28 million.

Up from $18 million in the comparative quarter on solid flow through from incremental management fee revenue.

Speaker 2: Our consolidated operating cash flow for the full year was $289 million.

Our consolidated operating cash flow for the full year was $289 million.

Speaker 2: However, adjusting for the non-recurring cash component of the LTIA settlement in April 2021, cash flow was $381 million, more than double the $166 million generated in 2020.

However, adjusting for the nonrecurring cash component of the LTI a settlement in April 2021, cash flow was $381 million more than double the $166 million generated in 2020.

Speaker 2: Cash flow was positively impacted by a combination of higher earnings and a reduction in working capital usage, which was elevated during the earlier stages of the pandemic last year.

Cash flow was positively impacted by a combination of higher earnings.

And a reduction in working capital usage, which was elevated during the earlier stages of the pandemic last year.

Our financial leverage ratio as defined.

Speaker 2: defined as net debt to pro forma adjusted EBITDA was 0.3 times as of December 31st, 2021.

Defined as net debt to pro forma adjusted EBITDA was 0.3 times as of December 31, 2021.

Speaker 2: During the fourth quarter, we issued $300 million in US and Euro-denominated senior notes due 2031 and paid down our revolving credit facility in full.

During the fourth quarter, we issued $300 million in U S and Euro denominated senior notes due 2031 and paid down our revolving credit facility in full.

Speaker 2: As of December 31st, we had $397 million of cash on hand, the majority of which is available for investment.

As of December 31, we had $397 million of cash on hand, a majority of which is available for investment.

Speaker 2: As a result, we now have well over $1.2 billion in liquidity available to fund future acquisitions and ongoing operations, including the recently announced Basalt transaction, which is expected to close later this year.

As a result, we now have well over $1 2 billion in liquidity available to fund future acquisitions and ongoing operations, including the recently announced transaction, which is expected to close later this year.

Speaker 2: Our debt capital structure includes 530 million of attractively priced long-term fixed rate debt which positions us well for any inflationary uncertainty ahead.

Our debt capital structure includes a $530 million of attractively priced long term fixed rate debt, which positions us well for any inflationary uncertainty ahead.

Speaker 2: Given our low leverage and significant financial capacity, we continue to be extremely well capitalized for future growth.

Given our low leverage and significant financial capacity, we continue to be extremely well capitalized for future growth.

Speaker 2: We are introducing our outlook for 2022, which provides our broad expectations for the year ahead and represents a return to the format we issued historically during more normal times.

We are introducing our outlook for 2022, which provides our broad expectations for the year ahead and represents a return to the format. We issued historically during more normal times.

We expect high single digit revenue growth consisting of mid single digit internal growth and the balance from previously completed and recently announced acquisitions, including <unk> <unk>.

Speaker 2: We expect high single digit revenue growth consisting of mid single digit internal growth and the balance from previously completed and recently announced acquisitions including Anteria, Colliers Italy and Pastels.

Colliers in Italy, and the salt.

Speaker 2: We expect our adjusted EVA down margin to improve 40 to 60 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisition.

We expect our adjusted EBITDA margin to improve 40 to 60 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisition.

Speaker 2: Our income tax rate and non-controlling interest share of earnings are expected to be 26 to 28% and 18 to 20% respectively consistent with historical ranges.

Our income tax rate and non controlling interest share of earnings are expected to be 26% to 28% and 18% to 20% respectively consistent with historical ranges.

Speaker 2: Finally, our adjusted earnings per share are expected to grow at mid-team percentage rate for 2022.

Finally, our adjusted earnings per share are expected to grow at mid teen percentage rate for 2022.

Speaker 2: This new outlook is subject to risk and uncertainties as outlined in our accompanying slides.

This new outlook is subject to risks and uncertainties as outlined in our accompanying slides.

Speaker 3: That concludes my prepared remarks. I would now like to open the call for questions. Operator, can you please open the line?

That concludes my prepared remarks, I would now like to open the call for questions. Operator can you. Please open the line.

Speaker 1: Certainly. To ask a question, you will need to press star one on your telephone. To withdraw your question, you will need to press star one on your telephone.

Certainly to.

To ask a question you will need to press star one on your telephone.

To withdraw your question press the pound key.

Speaker 1: Our first question comes from the line of George Dumé with Deutsche Bank.

Our first question comes from the line of George <unk> with Deutsche Bank.

Speaker 3: Good morning guys. Congrats on a really strong quarter. Jay, I got a two-part question for you. Just before you begin, you're not at Deutsche Bank, are you? No, I'm still at Scotiabank. Yeah, so I wanted to ask you about Faisal. So maybe what attracted you to that asset?

Hey, good morning, guys.

That's on a really strong quarter.

Jay I got a two part question for you.

Just before just before you may get just your just before you begin youre not at Deutsche Bank are you.

I am John Stewart Scotia.

Let's go to slide 10.

Sir.

Yes, I wanted to ask you about the salt so maybe what attracted you to that.

Got that.

Speaker 3: And once you integrate it, are there any other alternative asset classes that you'd be interested to offer that we don't know?

Once you integrate it are there any other alternative asset classes that you'd be interested to offer that we don't offer yet.

Speaker 2: Okay, so it's hard to hear you. You're asking about the salt and what attracted us to the salt.

Okay. So it's hard to hear you are asking about but salt and what attracted us to solve.

Speaker 2: So Basalt Lake Harrison Street is an extremely high quality investment management firm that has highly differentiated assets. So they focus on areas that require an extra level of expertise. They've been around a long time. Their results have been stellar as compared to others.

<unk>.

So so the salt, but salt Lake Harrison Street is a extremely.

High quality.

Investment management firm that is highly differentiated assets.

They focus on areas that require an extra level of expertise they've been around a long time their results have been stellar as compared to others.

Speaker 2: It's a partnership approach in the same way as Harrison Street. There's lots of synergies between Harrison Street and Basalt, and there's also lots of synergies between Basalt and the rest of the Collier's global platform.

It's a partnership approach in the same way as Harrison Street.

Lots of synergies between Harrison Street, and the Salt and there's also lots of synergies between.

But salt and the rest of the Colliers global platform. So.

Speaker 2: So, you know, it's right zone for us in terms of an additional move for us in our investment management arm and it really is a model for other similar platforms that we look to add over the coming years.

Its strike zone for us in terms of <unk> and.

In terms of an additional.

Move for us in our investment management arm and it really is a model for other similar platforms that we'd look to add over the coming years.

Speaker 3: Okay, that's helpful. And maybe for Christian, the 50% EBITDA margin that they saw, they're pretty elevated there. Can you maybe walk us through how do you get that number, maybe from a free structure or maybe overhead costs? And would you expect maybe to make some more investment in that business that can maybe lower those margins over the next 12 months?

Okay. That's helpful. Then maybe for Christian.

50% EBITDA margins up itself.

They are pretty elevated or can you maybe walk us through how.

How do we get how do you get that number and maybe from a free structure or the overhead costs.

And would you expect maybe to make it make some more investments in that business that could maybe lower those margins over the next 12 months.

Speaker 2: Yeah, I mean, George, our investment management business that we have currently operates in the mid-40% EBITDA margin range, and Basalt is similar to that. These businesses generate very strong recurring quarterly management fee revenue streams.

Yes, I mean, George in our investment management business that we have currently operates in the mid 40% EBITDA.

Margin range and basalt is similar to that these businesses.

Generate.

Strong recurring.

Quarterly management fee revenue streams, and they have relatively low cost they have.

Speaker 2: and they have relatively low cost, they have obviously management professionals and some fixed costs and the EBITDA margins in these businesses are in that 40-55% range.

Obviously management professionals.

And.

And some fixed costs and the EBITDA margins in the midst of these businesses are.

<unk>.

40% to 55% range.

Speaker 3: Okay, thanks for that. Just one last one, if I may. On your mid single digit internal revenue growth guidance that you guys put out for 2022. What do you have baked in for capital markets revenue?

Okay. Thanks for that just one last one if I may.

On your mid single digit internal revenue growth guidance, you guys put out for 'twenty two.

What do you have baked in for capital markets revenue growth.

Speaker 2: George, I don't want to get into any specifics on that, but I think across the business, a single-digit growth rate is something we're very comfortable with.

So I just want to get into any specifics on that.

But I think across the business.

Single digit growth rate is something we're very comfortable with.

Okay got it thanks guys.

Speaker 1: Thank you. Our next question comes from the line of Scott Frompson with CIBC.

Thank you.

Next question comes from the line of Scott <unk> with CIBC.

Speaker 4: Good morning. Just a couple of questions on results. So the result came in much better than the analysts in estimates. Were revenues right at year end higher than you would have expected?

Good morning.

Couple of.

Questions on the results.

The results came in much better than analysts' estimates where revenues.

At year end higher than you would've expected.

Speaker 4: And could there have been some revenues that were brought forward from the current quarter?

And could there have been some revenues that were brought forward from the current quarter.

Speaker 2: Scott, in the transactional business and the other performance here is really in the transactional business and a little bit also in the other businesses, but the recurring revenue businesses are more steady by their nature and more predictable.

Scott in the transactional business and the outperformance here was really in.

In the transactional business a little bit also in the in the other businesses, but the recurring revenue businesses are our more steady either by their nature and more predictable.

Speaker 2: Yes, I mean there are transactions that flow into December that might have occurred in the first quarter and similarly the transactions that we were expecting in December that may be deferred into a future quarter. So that type of, you know.

Yes, I mean, there are transactions that flow into December that might have occurred in the first quarter and somewhat related to transactions that we were expecting.

December that may be deferred into a future partner so that type of.

Yeah.

Speaker 2: movement of the fee recognition on these commissions is something that happens regularly in the business.

Movement of the fee recognition on these commissions.

It's something that happens.

Early in the business, but nothing unusual to note here I think we just had a stronger finish really across all of our regions.

Speaker 2: but nothing unusual to note here. I think we just had a stronger finish really across all of our regions, you know, really in both capital markets and leasing across the board. So it sounds just like a...

Really.

In both capital markets and leasing.

Across the board.

So it sounds just like a reflection of the strong market.

Speaker 3: Yeah, stronger than we expected, certainly, when we met last time a quarter ago here on the call.

Yes, yes stronger than we expected certainly when we met last time in the quarter ago here on the call.

Speaker 4: Just turning to your leverage, your balance sheet, your leverage ratio is pretty low. What range are you comfortable with and would you consider increasing the cash back to shareholders by either raising the dividend or through share buybacks? Where do you want to keep dry powder?

That's good news.

Just turning to your leverage your balance sheet. Your leverage ratio is pretty low what range are you comfortable with.

And would you consider increasing.

Cash back to shareholders by either raising the dividend or through share buybacks, where do you want to keep dry powder.

Speaker 2: Well, Scott, we obviously are very active in the acquisition side of our business, and that's where we prefer to deploy our capital.

Well Scott.

Obviously are very active in the acquisition.

Side of our business and that's where we prefer to deploy our capital.

Speaker 2: We have a target leverage range of one to two times. Certainly we're well below that at year end. And we assess our optimal capital structure all the time. And we're, as I said, we're focused on acquisitions, but if other ways to properly lever our business and return appreciation to shareholders that are getting considered, we're more than capable of looking.

Our target leverage range of up 1% to two times.

Certainly, we're well below that at year end, and we assess our optimal capital structure, all the time and.

I've set.

Setup for focused on acquisitions, but.

If other ways too.

Properly lever of our business and return.

Appreciation to shareholders.

<unk>.

To be considered we will look at that as well.

Speaker 3: You know, I'd like to add a little something to that as well. One of the things that's becoming glaringly obvious, or should be becoming glaringly obvious, is that this company generates significant free cash flow. And will continue to do that. And our capex is modest compared to the size of our company.

I would like to add a little something to that as well.

One of the things, that's becoming glaringly obvious or should be coming declared glaringly obvious that this company generates significant free cash flow.

And we'll continue to do that and our Capex is is modest compared to the size of our company. So despite.

Speaker 1: So despite having aggressive growth already on the books, not yet closed.

Having aggressive growth already on the books not yet closed.

Speaker 3: And if you roll those things forward, our leverage ratio isn't going to change much. It will go up a little bit, but it isn't going to change much. So you know, I think one of the things we are looking at is the amount of cash flow we generate in this business. And as I said in my comments, the relatively modest valuation that a company of our quality is trading at.

And if you roll those things forward, our leverage ratio isn't going to change much at all it will go up a little bit, but it isn't going to change much. So.

I think one of the things we are looking at us.

Is the amount of cash flow, we generate in this business and as I said in my in my comments the.

Relatively modest valuation that a company of our quality is trading at and I think we we do our shareholders a service by looking at all ways to.

Speaker 3: And I think we do our shareholders a service by looking at all ways to enhance shareholder value.

To enhance shareholder value.

Speaker 4: sounds good that's uh... helpful this one final question on that

Sounds good.

Helpful and just one final question on the investment.

Speaker 4: management, how's the fundraising outlook and how's the competitive environment for fundraising? Obviously alternatives are pretty hot space.

Management, how does the fund raising outlook.

What is the competitive environment.

For fundraising, obviously alternative sort of pretty hot space.

Okay.

Well I mean, we had a record fundraising last year to $6 $1 billion.

Speaker 3: Well, I mean, we had a record fundraising last year, $6.1 billion through our investment management arm. I think this year, we think we're going to have another record yet again.

Through our investment management arm.

I think this year.

We think we're going to have another record yet again.

Speaker 3: As you said, our asset classes that we focus on are in vogue. Obviously, infrastructure is very hot, so we'll see how Basalt does. They've just

As you said are asset classes that we focus on.

In both.

Obviously infrastructure is very bought so we'll see how the salt does they've just substantially completed their most recent fund.

Speaker 3: substantially completed their most recent fund and now that the transaction is announced and out there, we'll be out raising, I believe, its biggest fund ever, beginning in the next 45, 60 days. So we're hoping for a very strong fundraising year in 2022.

And now with the transactions announced the note there will be out.

Racing I believe it's the biggest fund ever.

Beginning in the next.

45, 60 days so.

We're hoping for a very strong fundraising.

Here in 'twenty two.

Sounds good thanks, Jim Christian ill turn it over a great year.

Speaker 4: Sounds good. Thanks, Jane, Christian. I'll turn it over. Great year. Great quarter. Great year.

Great quarter, great year.

Thanks.

Speaker 1: Thank you, and as a reminder, to ask a question, you will need to press star 1 on your telephone. Once again, to ask a question, please press star 1.

Thank you and then as a reminder to ask a question you will need to press star one on your telephone.

Again to ask a question please press star one.

Speaker 1: Our next question comes from the line of Stephen McLeod with BMO Capital Markets.

Our next question comes from the line of Stephen Macleod with BMO capital markets.

Thank you good morning, guys.

Thanks, Dave.

Good morning.

Speaker 4: I just wanted to follow up on Basalt, which looked like a very complementary investment management acquisition. Jay, you mentioned in your comments

I just wanted to follow up on the salt, which looks like a very very complementary investment management acquisition.

And Joe you mentioned in your in your comments.

Speaker 4: certainly some opportunities to be synergistic with Harrison Street as well as the rest of Collier's global platform. I was just wondering if you can elaborate a little bit on what some of those synergies look like and how we can think about that in terms of magnitude between Basalt and the existing business.

Certainly some.

Some opportunities too.

It could be synergistic with Harrison Street as well as the rest of Colliers Global platform. I was just wondering if you can elaborate a little bit on what some of those synergies look like.

And.

How we can think about that in terms of magnitude between the salt and the existing business.

Speaker 3: Um, well, you know, there's the obvious, which is call yourself a global platform with global relationships. We're marketing.

Well.

There's the obvious which is colliers is a global platform with global relationships, we're marketing.

Speaker 3: transactions all around the world, and having Basalt as part of the family gives them a, I wouldn't say a first look, but an assured look.

Transactions all around the world.

Having.

Having to solve as part of the family gives them a.

I would say a first look at assured look at any opportunities that we may be marketing as well as special relationships our job in our markets and our traditional business is to know capital sources and flows of capital and so introducing.

Speaker 3: at any opportunities that we may be marketing, as well as special relationships. You know, our job in our markets, in our traditional business, is to know capital sources and flows of capital. And so introducing flows of capital to Harrison Street or Basalt and Collier's Global Investors has borne nice fruit in terms of fundraising.

Flows of capital too.

Arison Street, or the soles and Colliers global investors has borne nice fruit in terms of fundraising but also the <unk>.

Speaker 3: But also the types of investors in all of our funds are those investors that value the governance, value the track record of our platform companies within investment management, and are always asking us what additional asset classes should we be considering.

Types of investors in all of our funds are those investors that value the governance value. The track record of our of our platform companies within investment management and are always asking us what additional asset classes should we be.

Considering.

Speaker 3: And so there's a growing need, I would say, on our side to get better.

And so there is.

There is.

A growing need I would say on our side to get better at leveraging existing LP relationships between our different.

Speaker 3: at leveraging existing LP relationships.

Speaker 3: between our different platforms to create additional fundraising sources. So there's just a few.

Our different platforms to two.

To create additional fund raising sources, so theres just a few.

Speaker 3: There's just a few opportunities there, but there are countless others that will help leverage.

Theres just a few opportunities there, but there are countless there are countless others.

That will help leverage.

Speaker 3: existing platforms and enhance the returns.

<unk> platforms and enhance the returns for our Lps.

Speaker 3: for our LPs and that's happening really across the board.

And that's happening really across the board.

Okay. That's that's great color. Thank you.

Speaker 5: And then I didn't want to get too granular here, but I'm just curious about what you're seeing in terms of the office

Yeah.

And then I didn't want to get too granular here, but I'm just curious about what youre seeing in terms of the office either capital markets or leasing backdrop across our geographies I know you mentioned Christian in your prepared remarks that office is within 5% of 2019 levels, just curious what youre seeing between geographic regions.

Speaker 5: either capital markets or leasing backdrop across your geographies. I know you mentioned Christian in your prepared remarks that office is within 5% of 2019 levels. Just curious what you're seeing between geographic regions.

Speaker 2: We're seeing more office activity in all the regions. I would say probably more in the Americas and coming back, probably something we're expecting to see more and to come back more in EMEA and Asia-Pac, in the coming quarters. But certainly, you know, things are...

We're seeing more office activity.

In all regions.

I would say.

Probably more in the Americas and coming back.

Probably something we're expecting to see more to come back more in.

In EMEA and Asia Pac in the coming quarters, but certainly things are.

Speaker 2: Progressing well and activity is rebounding.

Progressing well and activity is rebounding.

Speaker 5: Okay, that makes sense. And then maybe similar to that, are you seeing, do you expect to see any asset classes sort of begin to weaken as we get back to normal if we do end up getting back to normal in 2022 from a pandemic perspective?

Okay that makes sense and then maybe.

Similar to that.

Are you seeing do you expect to see any any asset class will sort of begin to weaken as we get back to normal if we do end up getting back to normal in 2022 from a pandemic perspective.

Speaker 2: Well, I'm not sure I would characterize it as weakening, but I think a moderation of activity in classes like industrial, and retail has been coming back, but industrial has been so strong for a long time, and that I think will moderate over time.

Well I'm not sure I would characterize it as weakening, but I think a moderation of activity in classes like industrial.

And retail has been.

Then coming back but.

Sure.

Industrial has been so strong.

For a long time and that I think will moderate over time.

Okay.

Speaker 5: Okay, that's great. Well, thanks guys. Congrats on a great quarter and a year and great performance for the pandemic.

That's great well, thanks, guys, congrats on a great quarter, and a year and great performance with the pandemic.

Thank you.

Speaker 1: Thank you. And our next question comes from the line of Daryl Young with TD Security.

Thank you and our next question comes from the line of Daryl Young with TD Securities.

Speaker 5: Good morning, guys. Just wanted to follow up a little bit further on the investment management business.

Good morning, guys.

Just wanted to follow up a little bit further on the investment management business.

Speaker 5: It sounds like more asset classes could be in the works in the future. Is there a chance that investment management ends up at 50% of EBITDA in the future? You're already at, on a pro forma basis, around 25%, which I think is sort of the goalpost you used to speak to. But just given the fundraising and then the potential for more asset classes, it seems like it could be a very big part of the mix here going forward.

It sounds like more asset classes could be in the works in the future is there a chance to investment management ends up at 50% of EBITDA in the future I mean, youre already at on a pro forma basis around 25%.

Which I think is sort of the.

Goalpost you used to speak to but just given the fund raising and then the potential for more asset classes. It seems like it could be a very big part of the mix here going forward.

Speaker 3: You know, that's a pretty ambitious target that you're outlining. The interesting thing is that as we grow investment management, so too is our services business growing by leaps and bounds. I mean, internal growth there has been staggering. I would say anecdotally that a lot of that growth or some of that growth is coming.

That's a pretty ambitious target that youre outlining.

The interesting thing is that as we grow investment management.

So too is our services business growing.

By leaps and bounds I mean internal growth there has been staggering.

I would say anecdotally that a lot of that growth or some of that growth is coming from the enhanced stature, we gain by being in the investment management business and the opportunities that that's creating for us and we've just really scratched the surface. So I don't think anybody here.

Speaker 3: from the enhanced stature we gain by being in the investment management business and the opportunities that that's creating for us and we've just really scratched the surface.

Speaker 3: So I don't think anybody here is thinking in terms of 25% of our, of our or 50% of our income coming from investment management, but it is growing and are.

Thinking in terms of 25% of our of our or 50% of our EBITDA coming from investment management, but it is growing and our long strategy.

Speaker 3: long strategy, the Collier's partnership philosophy is something that is really resonating with the right targets.

The Colliers partnership philosophy is something that is really resonating with the right targets.

Speaker 3: And we're very gratified to have the opportunities we have today, and we believe that there will be other like targets.

And we're very gratified.

To have the.

The opportunities we have today and we believe that there will be other.

Mike.

Targets that want a permanent long term capital partner somebody who can add value with leverage everything we have to offer.

Speaker 3: that want a permanent long-term capital partner, somebody who can add value and leverage everything we have to offer. You know, let's remember Collier's is global with a globally balanced business with strong leadership teams in every geographic region, meaning we can acquire and grow virtually anywhere in the world. I, you know, I sort of mentioned that in my comments, but.

Let's remember Colliers is global with a globally balanced business with strong leadership teams in every geographic region, meaning we can acquire and grow virtually anywhere in the world.

I sort of mentioned that in my comments, but.

Speaker 3: you know, how many companies have that opportunity, few at best.

How many companies have that opportunity.

At best and.

Speaker 3: And, you know, that comes back to, you know, our one step at a time approach, the strength of our management teams, the tenure of our management teams, they've been around a long time, they know, they know the way we operate. So we're very bullish.

That comes back to.

Our one step at a time approach the strength of our management teams. The tenure of our management teams they've been around a long time. They know they know the way we operate so we're very bullish.

Speaker 3: about this company and proud of what we have accomplished over many years. And I think that the future is our oyster in many ways as long as we continue to apply the same principles that we've used for many years to create shareholder value.

About this.

This company and proud of what we have accomplished over many years.

And I think that the.

The future is our oyster and in many ways as long as we continue to apply the same principles that we've used for many years to create shareholder value.

Speaker 5: Okay, terrific. And then one other quick one, just on the engineering side, maybe just a quick update there, you've been acquisitive in the last 12 months and very quickly building a platform, but what the organic pipeline maybe looks like now that you've had a chance to piece all those businesses together under one umbrella?

Okay terrific and then one other quick one just on the engineering side.

Just a quick up there update there you've been acquisitive in the last 12 months.

Very quickly building a platform, but what.

The organic pipeline, maybe it looks like now that you've had a chance to piece all those businesses together under one umbrella.

Speaker 3: So, you know, Christian may have some additional thoughts here, but, you know, again, I'm going to emphasize.

So.

Christian may have some additional thoughts here, but again I'm going to emphasize.

Speaker 3: that our current initiatives around engineering, which have been very positive, we have an incredible leadership team there that has integrated several acquisitions. They have a pipeline of others. Let's just remember, this is only U.S.

With that our current initiatives around engineering, which has been very positive, but we have an incredible leadership team there.

Has integrated several acquisitions.

They have a pipeline of others, let's just remember this is only U S. There.

Speaker 3: There is no reason why we can't advance and grow these businesses in other geographic regions, which we fully intend to do, which opens up a massive growth engine outside of our core business, but very much related, using a globally institutionally recognized brand.

There is no reason why we cant advance and grow these businesses in other geographic regions, which we fully intend to do which opens up in the massive.

Growth engine.

Side of our core business, but very much related using a globally institutionally recognized brand and it comes back to my comments again.

Speaker 3: And it comes back to, you know, my comments, again, around an exceptional company.

Around that exceptional company substantially undervalued or underappreciated for the many opportunities we have to double or triple the size of our business in the company in the coming years. So I think engineering is just another great opportunity for our structured the.

Speaker 3: substantially undervalued or underappreciated for the many opportunities we have to double and triple the size of our business in the coming years. So I think engineering is

Speaker 3: Another great opportunity for us structured the right way with multiple consolidation and growth opportunities.

Wade.

With multiple consolidation and growth opportunities, which will execute in our usual colliers away.

Speaker 3: which we'll execute in our usual Collier's way.

Yeah.

Speaker 5: Okay, excellent. Thanks very much guys and congrats on 2021.

Okay excellent thanks, very much guys and congrats on 2021.

Thanks Derek.

Speaker 1: Thank you. And our next question comes from the line of Frederick Bastien with Raymond James.

Thank you and our next question comes from the line of Frederic Bastien with Raymond James.

Hi, guys.

Speaker 6: You're outsourcing an advisory segment at a very strong year, up some 20% organically across regions. I'm wondering if you could break that down between, you know,

Hey, Brad.

Youre outsourcing and advisory segment had a very strong year up some 20% organically across regions wondering.

I'm wondering if you could break that down between now.

Speaker 6: what is coming from improving and market demand, like share gains.

What is coming from improving.

End market demand like share gains.

Speaker 6: perhaps in new offerings, service offerings that you implement.

And perhaps in new offerings service offerings that you <unk>.

Implemented.

Speaker 2: Yeah, Frederick, the Americas Investment Advisory Group includes engineering, and of course, we've been active there on the acquisition front with a number of acquisitions, most recently Bergman in November of 2021.

Yes Fredric.

The Americas Interestingly Advisory group.

<unk> engineering and of course, we've been active there on the acquisition front.

Front with a number of acquisitions most recently.

Byrd Amendment in November .

2021.

Speaker 2: So, that's the story in the Americas. Of course, in the Americas, the project management business and the evaluation business, as well as the property management business, have all had great years contributing to organic growth. I'd say the same in EMEA and AsiaPAC, evaluation practice, engineering practices, sorry, not the engineering, but evaluation practices, project management.

So thats.

In the Americas.

America is the project management fitness in the evaluation business.

As well as the property manager business have all had great years.

Turning to organic growth.

I'd say the same.

And Asia Pac valuations practice.

Engineering practices.

Engineering and valuation practices project management.

Speaker 2: and property management have all grown nicely and have contributed to the organic growth of those two regions.

And property management.

All grown nicely.

<unk>.

Contributing to the organic growth in those two regions regions.

Speaker 6: Okay, I get that, but you were coming off depressed levels in 2021, so just wondering if there was also some, did you notice any market share gains that you were able to accomplish?

Okay, I get that but you are coming off a depressed levels in 2021. So just wondering if there was also some did.

Did you notice any market share gains that you were able to accomplish.

Speaker 2: Yeah, I mean, I don't have any specific information in front of me, but I do think we are growing our market share and our growth in those business have been very, very strong.

Yes, I mean, I don't have any specific information in front of me, but I do think we are growing our market share.

And our growth in those businesses have been.

Sure.

Very very strong.

Speaker 3: You know, just looking at our numbers, Brad, like, you know, outsourcing and advisory being so recurring is generally, you know, a sub-10% kind of grower. It grew 30% this year overall. So I would say we're taking significant gains. The acquisition, Bergman was in December or November , so it was. We also, the annualization of the NASER Act.

Just just look just looking at our numbers of brands like <unk>.

Outsourcing and advisory being so recurring is generally.

A sub 10% kind of grower.

Through 30% this year overall, so I would say, we're taking significant gains the acquisition.

A berkman was in December or November . So it was we also had the innovation.

The major acquisition of Australia.

Speaker 3: But still not enough to reflect the growth, so I would say we're taking a nice share, not to the same degree perhaps as in some of the other areas, but very formidable to say the least.

Still it's still not enough to reflect the growth. So I would say, we're taking nice.

<unk>.

Sure.

Not to the same degree perhaps as in some of the other areas but.

Very formidable to say the least.

Great I'll leave it at that very hard to poke holes in the story right now good job.

Speaker 6: Great, I'll leave it at that. Very hard to poke holes in the story right now. Good job. Thanks, Brent.

Thanks, Greg.

Thank you and I'm showing no further questions I'll now turn the call over to the global Chairman and CEO , Mr. Jay Hennick for any closing remarks.

Speaker 1: I'll now turn the call over to Global Chairman and CEO , Mr. Jay Hennig, for any closing remarks.

Speaker 3: Thank you, Operator, and thanks, everyone, for participating in this quarter's conference call. We look forward to the first quarter to report again, and in the interim period, I believe we'll have our annual meeting, and so that will be webcast for those that want to participate.

Thank you operator, and thanks, everyone for participating in this quarter's conference call.

We look forward to the first quarter.

To report again.

In the interim period I believe we will have our annual meeting and so.

That will be.

<unk>.

That want to participate.

Speaker 3: So thanks for joining us, and we look forward to speaking to you again soon. Thank you.

So thanks for joining us.

We look forward to speaking to you again soon.

Speaker 1: Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and have a nice day.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating and have a nice day.

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Speaker 1: Welcome to the Collier's International Fourth Quarter and Year-End Investors Conference Call. Today's call is being recorded.

Welcome to the Colliers International fourth quarter and year end investors conference call.

Today's call is being recorded legal counsel requires us to advise that discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertainties.

Speaker 1: Legal counsel requires us to advise that discussions scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties.

Speaker 1: Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking state.

Actual results may be materially different from any future results performance or achievements contemplated in the forward looking statements.

Speaker 1: Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40-F as filed with the U.S. Securities and Exchange Commission.

Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the company's annual information form as filed with the Canadian Securities administrators and in the company's annual report on form 40 F. As filed with the U S Securities and Exchange Commission.

Speaker 1: As a reminder, today's call is being recorded. Today is February 10th, 2022.

As a reminder, today's call is being recorded today is February 10th 2022.

Speaker 1: And at this time, for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead.

And at this time for opening remarks, and introductions I would like to turn the call over to the global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead Sir.

Speaker 3: Thank you, Operator. Good morning and thanks for joining us for this fourth quarter conference call. I'm Jay Hennig, Chairman and Chief Executive Officer of the company, and with me today is Christian Bayer, Chief Financial Officer.

Thank you.

Operator, good morning, and thanks for joining us for this fourth quarter conference call.

Amick, Chairman and Chief Executive Officer of the company and with me today is Christian Mayer Chief Financial Officer.

Speaker 3: As always, this call is being webcast and is available in the investor relations section of our website. A presentation deck is also available there to accompany today's call.

As always this call is being webcast and is available in the Investor Relations section of our website. A presentation deck is also available there to accompany today's call.

Speaker 3: As announced this morning, Collier has delivered very strong fourth-quarter financial results with full-year revenues exceeding the $4 billion milestone.

Okay.

As announced this morning, all years delivered very strong fourth quarter financial results with full year revenues exceeding the $4 billion milestone.

Speaker 3: Capital markets, leasing, and outsourcing and advisory were all up significantly across all service lines and across all geographies, while investment management delivered record results, raising more than $6 billion in capital and finishing the year with more than $50 billion in assets under management.

Capital markets leasing and outsourcing and advisory were all up significantly across all service lines and across all geographies, while investment management delivered record results raising more than 6 billion in capital and finishing the year with more than $50 billion in ASP.

Under management.

Speaker 3: With a globally balanced and highly diversified business model, significant recurring earnings, and a sharp focus on global growth opportunities, Collier's is stronger and more resilient than ever.

With a globally balanced and highly diversified business model significant recurring earnings and a sharp focus on global growth opportunities colliers is stronger and more resilient than ever.

Speaker 3: As you know, last month we announced that we were investing in Basalt Infrastructure, a leading transatlantic investment management firm with more than $8 billion in assets under management.

As you know last month, we announced that we were investing in the salt infrastructure, a leading trans Atlantic investment management firm with more than $8 billion in assets under management, adding another highly differentiated investment business that specializes in the MP.

Speaker 3: adding another highly differentiated investment business that specializes in the important utility, transportation, energy and renewables, and communication sectors.

<unk> utility transportation energy and renewables and communication sectors.

Speaker 3: Together with the previously announced Milan-based Anterion, which we're acquiring to augment our existing operations in Europe , we expect to add more than $12 billion in assets under management to this segment of our business once both of these transactions are completed.

Together with the previously announced from a land based Antirion, which we're acquiring to augment our existing operations in Europe , we expect to add more than $12 billion in assets under management to this segment of our business. Once both of these transactions are completed.

Speaker 3: As you know, last year we announced our new enterprise 2025 growth strategy. The goal is to double our profitability and generate more than 65 percent of our EBITDA from recurring revenue streams over the incoming five years.

As you know last year, we announced our new enterprise 2025 growth strategy.

Goal is to double our profitability and generate more than 65% of our EBITDA from recurring revenue streams over the incoming five years.

Speaker 3: We finished year one well ahead of our internal targets, and we continue to make excellent progress.

We finished year, one well ahead of our internal targets and we continue to make excellent progress.

Speaker 3: If we're able to achieve our current five-year plan, it will be very good news indeed for our shareholders.

If we're able to achieve our current five year plan it will be very good news indeed for our shareholders.

Speaker 3: With our strong growth plan, strong growth global brand, and growth platform, well-balanced and highly diversified business model, unique enterprising culture and significant inside ownership, Collier's is better positioned today than at any time in our history to continue to create value and to generate superior returns for shareholders.

With our strong growth plan.

Drawn loans.

<unk> brand and growth platform, well balanced and highly diversified business model unique enterprising culture, and a significant insider ownership.

<unk> is better positioned today than at anytime in our history to continue to create value and to generate superior returns for shareholders.

Speaker 3: However, despite all of these characteristics and unique attributes, our company remains significantly undervalued when compared to others, in my view. I have been investing in businesses and building companies for many years now, and I say this with very strong conviction.

However, despite all of these characteristics and unique attributes our company remains significantly undervalued when compared to others in my view.

I've been investing in businesses and building companies for many years now and I say this with very strong conviction.

Speaker 3: Few companies have our growth prospects. Few have the experienced and financially committed leadership team we do. And fewer still have our long-term record of performance, a track record of greater than 20% annualized return.

Few companies have our growth prospects.

We'll have the experienced and financially committed leadership team, we do and fewer still have our long term record of performance.

Track record of greater than 20% annualized annualized returns.

Speaker 3: over more than 27 years.

Over more than 27 years.

Speaker 2: With that said, let me now turn things over to Christian for comment and then we'll open things up to questions. Christian? Thank you, Jay. As announced this morning, Collier has reported very strong fourth quarter financial results. My comments follow the flow of the slides posted on the investor relations section of colliers.com to accompany this call.

With that said, let me now turn things over to Christian.

For comments and then we'll open things up to questions Christian.

Thank you Jay as announced this morning, <unk> reported very strong fourth quarter financial results My.

My comments follow the flow of the slides posted on the Investor Relations section of <unk> Dot com to accompany this call. Please note that the non-GAAP measures measures referenced on this call are defined in this morning's press release.

Speaker 2: Please note that the non-GAAP measures referenced on this call are as defined in this morning's press release.

Speaker 2: All references to revenue growth are expressed in local currency.

All references to revenue growth are expressed in local currency.

Speaker 2: Our revenues for Q4 were $1.3 billion, up 48% relative to the prior year period, with revenues up strongly across all service lines and geography.

Our revenues for Q4 were $1 3 billion up 48% relative to the prior year period with revenues up strongly across all service lines and geographies growth for the quarter was predominantly internally generated.

Speaker 2: growth to the quarter was predominantly internally generated. Compared to 2019 pre-pandemic peak levels, capital markets revenues were up 60%, and leasing was up 12%, with office leasing recovering to within 5% of 2019 levels.

<unk> 2019, pre pandemic peak levels capital markets revenues were up 60% and leasing was up 12% with office leasing recovering with five to within 5% of 2019 levels.

Speaker 2: Fourth quarter consolidated adjusted EBITDA was $192 million, up 25% from $155 million reported one year ago, with margins at 14.3% versus 17% in the prior year quarter.

Fourth quarter consolidated adjusted EBITDA was $192 million up 25% from 155 million reported one year ago with margins at 14, 3% versus 17% in the prior year quarter.

Speaker 2: Our margin was impacted by increased performance-based incentive compensation and the reinstatement of variable costs, mainly attributable to the strong growth in transaction activity.

Our margin was impacted by increased performance based incentive compensation and the reinstatement of variable cost mainly attributable to the strong growth in transaction activity.

Speaker 2: The America's region four-quarter revenues were $814 million, up 54% over the prior period. Revenue growth was exceptionally strong, with leasing activity up 77%, led by industrial.

The Americas region fourth quarter revenues were $814 million up 54% over the prior period.

Revenue growth was exceptionally strong with leasing activity up 77% led by industrial.

Speaker 2: Capital markets activity was up 66% and was led by industrial, land, and multifamily asset classes.

Capital markets activity was up 66% and was led by industrial land and multifamily asset classes.

Speaker 2: Office leasing activity showed steady improvement in Q4, although remained below pre-pandemic levels.

Office leasing activity showed steady improvement in Q4, although remain below pre pandemic levels.

Speaker 2: Outsourcing and advisory revenue is about 29%, driven by engineering and design, valuation, and loan servicing, as well as recent acquisitions.

Outsourcing and advisory revenues were up 29% driven by engineering and design valued.

Evaluation and loan servicing.

As well as recent acquisitions.

Speaker 2: Adjusted EBITDA was $94 million, up 34% from last year, with a margin impacted by significant incremental performance-based incentive compensation from strong year-over-year growth in operating results, the re-statement of variable costs, and higher support staffing costs.

Adjusted EBITDA was $94 million up 34% from last year with a margin impacted by significant incremental performance based incentive compensation from strong year over year growth in operating results the reinstatement of variable cost and higher support staffing costs.

Speaker 2: Amino revenues for Q4 were $233 million, up 32% from one year ago, with robust growth across all service lines, led by outsourcing and advisory and capital markets.

EMEA revenues for Q4 were $233 million up 32% from one year ago with robust growth across all service lines led by outsourcing and advisory and capital markets.

Speaker 2: Adjusted EBITDA was $42 million, up 19% from last year, on higher revenues, although mergers was impacted by revenue index from higher project management activity.

Adjusted EBITDA was $42 million up 19% from last year on higher revenues, although margin was impacted by revenue mix from higher project management activity.

Speaker 2: In the Asia-Pacific region, fourth quarter revenues were $219 million, up 36%, driven by strong capital markets activity across the region, but especially in Australia and New Zealand.

In the Asia Pacific region third quarter fourth quarter revenues were $219 million up.

36% driven by strong capital markets activity across the region, but especially in Australia, and New Zealand adjusted.

Speaker 2: Adjusted EBITDA was $38 million, up 7% relative to the prior year quarter, and was affected by higher performance-based incentive compensation.

Adjusted EBITDA was $38 million up 7% relative to the prior year quarter and was affected by higher performance based incentive compensation.

Speaker 2: Investment management revenues were $80 million, up 83% versus the prior year period.

Investment management revenues were $80 million.

Up 83% versus the prior year period.

Speaker 2: After eliminating the impact of past fruit carry interest, revenues were up 45% driven by management fee growth.

After eliminating the impact of pass through carried interest revenues were up 45% driven by management fee growth.

Speaker 2: Assets under management were $51 billion a quarter and up 29% from one year ago and capped off a record year of fundraising with $6.1 billion of new capital commitments from investors.

Assets under management were 51 billion at quarter end.

29% from one year ago, and capped off a record year of fundraising with $6 1 billion of new capital commitments from investors.

Speaker 2: Adjusted EBITDA for the quarter was $28 million, up from $18 million in the comparative quarter on solid flow through from incremental management fee revenue.

Adjusted EBITDA for the quarter was $28 million.

Up from $18 million in the comparative quarter on solid flow through from incremental management fee revenue.

Speaker 2: Our consolidated operating cash flow for the full year was $289 million.

Our consolidated operating cash flow for the full year was $289 million.

Speaker 2: However, adjusting for the non-recurring cash component of the LTIA settlement in April 2021, cash flow was $381 million, more than double the $166 million generated in 2020.

However, adjusting for the nonrecurring cash component of the LTA settlement in April 2021, cash flow was $381 million more than double the $166 million generated in 2020.

Speaker 2: Cash flow was positively impacted by a combination of higher earnings and a reduction in working capital usage, which was elevated during the earlier stages of the pandemic last year. Our

Cash flow was positively impacted by a combination of higher earnings and a reduction in working capital usage, which was elevated during the earlier stages of the pandemic last year.

Our financial leverage ratio as defined.

Speaker 2: defined as net debt to pro forma adjusted EBITDA was 0.3 times as of December 31, 2021.

Defined as net debt to pro forma adjusted EBITDA.

Zero three times as of December 31, 2021.

Speaker 2: During the fourth quarter, we issued $300 million in U.S. and Europe-nominated senior notes due 2031 and paid down our revolving credit facility in full.

During the fourth quarter, we issued $300 million in U S and Euro denominated senior notes due 2031 and paid down our revolving credit facility in full.

Speaker 2: As of December 31st, we had $397 million of cash on hand, the majority of which is available for investment.

As of December 31.

$397 million of cash on hand, a majority of which is available for investment.

Speaker 2: As a result, we now have well over $1.2 billion in liquidity available to fund future acquisitions and ongoing operations, including the recently announced Basalt transaction, which is expected to close later this year.

As a result, we now have well over $1 2 billion in liquidity available to fund future acquisitions and ongoing operations, including the recently announced <unk> transaction, which is expected to close later this year.

Speaker 2: Our debt capital structure includes 530 million of attractively priced long-term fixed-rate debt, which positions us well for any inflationary uncertainty ahead.

Our debt capital structure includes a $530 million of attractively priced long term fixed rate debt, which positions us well for any inflationary uncertainty ahead.

Speaker 2: Given our low leverage and significant financial capacity, we continue to be extremely well capitalized for future growth.

Given our low leverage and significant financial capacity, we continue to be extremely well capitalized for future growth.

Speaker 2: We are introducing our outlook for 2022, which provides our broad expectations for the year ahead and represents a return to the format we issued historically during more normal times.

We are introducing our outlook for 2022, which provides our broad expectations for the year ahead and represents a return to the format. We issued historically during more normal times.

Speaker 2: We expect high single-digit revenue growth consisting of mid-single-digit internal growth and the balance from previously completed and recently announced acquisitions including Interia, Collier's Italy, and Basalt.

We expect high single digit revenue growth consisting of mid single digit internal growth and the balance from previously completed and our recently announced acquisitions, including anterior.

Colors in Italy and for Salt.

Speaker 2: We expect our Justine Vida margin to improve 40 to 60 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisitions.

We expect our adjusted EBITDA margin to improve 40 to 60 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisitions.

Speaker 2: Our income tax rate and non-controlling interest share earnings are expected to be 26% to 28% and 18% to 20%, respectively, consistent with historical arrangements.

Our income tax rate and non controlling interest share of earnings are expected to be 26% to 28% and 18% to 20% respectively consistent with historical ranges.

Speaker 2: Finally, our adjusted earnings per share are expected to grow at a mid-teens percent rate for 2022.

Finally, our adjusted earnings per share are expected to grow at mid teen percentage rate for 2022.

Speaker 2: This new outlook is subject to risk uncertainties as outlined in our accompanying slides.

This new outlook is subject to risks and uncertainties as outlined in our accompanying slides.

Speaker 2: That concludes my prepared remarks. I would now like to open the call for questions. Operator, can you please open the line?

That concludes my prepared remarks, I would now like to open the call for questions. Operator can you. Please open the line.

Speaker 1: Certainly, to ask a question, you will need to press star one on your telephone. So withdraw your question.

Certainly to ask a question you will need to press star one on your telephone.

Withdraw your question press the pound key.

Our first question comes from the line of George <unk> with <unk>.

Deutsche Bank.

Speaker 2: Good morning, guys. Congrats on a really strong quarter. Jay, I've got a two-part question for you. Just before you begin, you're not a Deutsche Bank, are you? No, I'm still at Scotiabank. So, Jay, I wanted to ask you about Pesalt. Maybe what attracted you to that asset?

Hey, good morning, guys.

Congrats on a really strong quarter.

Hey, I've got a two part question for you first.

Just before just before you may get chipped Europe , just before you begin to Youre not at Deutsche Bank how are you.

Confluence Scotia.

Please go ahead Sir.

Yes, so I want to ask you about persalt, so maybe what attracted you to that.

To that that.

Speaker 8: And once you integrate it, are there any other alternative asset classes that you'd be interested to offer that we don't offer?

And once you integrate it are there any other alternative asset classes that you would be interested to offer that we don't know yet.

Speaker 3: Okay, so it's hard to hear you, you're asking about basalt and what attracted us to basalt.

Okay. So it's hard to hear you are asking about the salt and what attracted us to the salt.

Speaker 3: Correct. So Basalt Lake Harrison Street is an extremely high quality investment management firm that has highly differentiated assets. So they focus on areas that require an extra level of expertise.

So.

The salt, but Salt Lake Harrison Street is an extremely.

Our high quality.

Investment management firm that is highly differentiated assets so.

They focus on areas that require an extra level of expertise they've been around a long time their results have been stellar.

Speaker 3: They've been around a long time, their results have been stellar as compared to others.

Compared to others.

Speaker 3: It's a partnership approach in the same way as Harrison Street. There's lots of synergies between Harrison Street and Basalt, and there's also lots of synergies between Basalt and the rest of the Collier's global platform.

It's a partnership approach in the same way as Harrison Street, there's lots of synergies between Harrison Street, and both Salt and there's also lots of synergies between both.

The salt and the rest of the Colliers global platform. So.

Speaker 3: So, you know, it's strength zone for us in terms of an additional move for us in our investment management arm. And it really is a model for other similar platforms that we look to add over the coming years.

<unk>.

Its strike zone for us in terms of <unk> and.

In terms of an additional.

A move for us in our investment management are and it really is a model for other similar platforms that we've look to add over the coming years.

Speaker 8: Okay, that's helpful. And maybe for Christian, the 50% EBITDA margins that they sell, they're pretty elevated there. Can you maybe walk us through how do you get that number, maybe from a free structure or maybe overhead costs? And would you expect maybe to make some more investment in that business that can maybe lower those margins over the next 12 months?

Okay. That's helpful. Then maybe for Christian.

50% EBITDA margins up itself.

They are pretty elevated there can you maybe walk us through how.

How do we get how do we get that number to give you some a restructure on the overhead cost.

And would you expect maybe to make it make some more investments in that business that could maybe lower those margins over the next 12 months.

Speaker 2: Yeah, I mean, George, our investment management business that we have currently operates in the mid 40% EBITDA margin range, and MSALT is similar to that. These businesses generate very strong recurring quarterly management fee revenue streams.

Yes, I mean, George in our investment management business that we have currently operates in the mid 40% EBITDA margin.

Margin range and resolve that is similar to that these businesses.

Generate.

Very strong recurring quarterly management fee revenue streams.

Speaker 2: And they have relatively low costs. They have, obviously, management professionals and some fixed costs. And the EBITDA margins in these businesses are in that 40% to 55% range.

They have relatively low cost they have.

Obviously management professionals.

And.

And some fixed costs in the <unk>.

EBITDA margins in the midst of these businesses are.

<unk>.

40% to 55% range.

Speaker 8: Okay. Thanks for that. Just one last one, if I may. On your mid-single-digit internal revenue growth guidance that you guys put out for 2022, what do you have baked in for capital markets revenue?

Okay. Thanks for that just one last one if I may.

On your mid single digit internal revenue growth guidance, you guys put out for 'twenty two.

What do you have baked in for for capital markets revenue growth.

Speaker 2: George, I don't want to get into any specifics on that, but I think across the business, a mid-single-digit growth rate is something we're very comfortable with.

So I don't want to get into any specifics on that.

I think across the business.

Single digit growth rate is something we're very comfortable with.

Okay got it thanks guys.

Speaker 1: Thank you. And our next question comes from the line of Scott Frompton with CIBC.

Thank you.

Our next question comes from the line of Scott <unk> with CIBC.

Yeah.

Speaker 4: Good morning. Just a couple questions on results. So the result came in much better than a analyst in estimates. Were revenues that that rightite at year end higher than you would have expected.

Good morning.

Couple of quest.

Questions on results.

The results came in much better than the analysts' estimates where revenues.

At year end higher than you would've expected.

Speaker 4: And could there have been some revenues that were brought forward from the current quarter?

And could there have been some revenues that were brought forward from the current quarter.

Speaker 2: Scott, in the transactional business and the outperformance here is really in the transactional business and a little bit also in the other businesses, but the recurring revenue businesses are more steady by their nature and more predictable.

Scott in the transactional business and the performance here was really in.

In the transactional business, but also in the in the other businesses, but the recurring revenue businesses are our more steady buyback by their nature and more predictable.

Speaker 2: Yes, I mean, there are transactions that flow, you know, into December that might have occurred in the first quarter, and similarly, there's transactions that we were expecting in December that may be deferred into a future quarter. So that type of, you know,

Yes, I mean, there are transactions that flow into December that might have occurred in the first quarter and somewhat relates to transactions that we were expecting in December that may be deferred into future quarters. So.

That type of.

Speaker 2: movement of the fee recognition on these commissions is something that happens regularly in the business.

Movement of the fee recognition on these commissions.

It's something that happens regularly.

And the business, but nothing unusual to note here I think we just had a stronger finish really across all of our regions.

Speaker 2: But nothing unusual to note here. I think we just had a stronger finish, really, across all of our regions, you know, really in both capital markets and leasing across the board. So it sounds just like a-

Really.

In both capital markets and leasing.

Across the board.

So it sounds just like a reflection of the strong market.

Speaker 2: Yeah, yeah. Stronger than we expected, certainly, when we met last time a quarter ago here on the call.

Yes, yes stronger than we expected certainly when we met last time a quarter ago here on the call.

Speaker 4: Just turning to your leverage, your balance sheet, your leverage ratio is pretty low. What range are you comfortable with and would you consider increasing the cash back to shareholders by either raising the dividend or through share buybacks? Where do you want to keep dry powder?

That's good news.

Just turning to your leverage your balance sheet. Your leverage ratio is pretty low what range are you comfortable with.

And would you consider increasing.

Cash back to shareholders by either raising the dividend or through share buybacks, where do you want to keep dry powder.

Speaker 2: Well, Scott, we obviously are very active in the acquisition side of our business, and that's where we prefer to deploy our capital.

Well Scott.

Obviously are very active in the acquisition.

Side of our business and Thats, where we prefer to deploy our capital.

Speaker 2: We have a target leverage range of one to two times, certainly we're well below that at year-end. We assess our optimal capital structure all the time and we're, as I said, we're focused on acquisitions, but if other ways to properly lever our business and return appreciation to shareholders that are to be considered, we'll look at that.

We have a target leverage range of up 1% to two times.

Certainly, we're well below that at year end, and we assess our optimal capital structure, all the time and.

As I said, we're focused on acquisitions, but.

If other ways too.

Properly lever our business and return.

Appreciation to shareholders.

Our.

To be considered we will look at that as well.

Speaker 3: You know, I'd like to add a little something to that as well. One of the things that's becoming glaringly obvious or should be becoming glaringly obvious is that this company generates significant free cash flow and will continue to do that. And our capex is is modest compared to the size of our company.

I'd like to add a little something to that as well.

One of the things, that's becoming glaringly obvious or should be becoming glaring glaring obvious is that this company generates significant free cash flow.

And we will continue to do that and our Capex is is modest compared to the size of our company. So despite.

Speaker 3: So despite having aggressive growth already on the books, not yet closed.

Having aggressive growth already on the books not yet closed.

Speaker 3: And if you roll those things forward, our leverage ratio isn't going to change much. It'll go up a little bit, but it isn't going to change much. So, you know, I think one of the things we are looking at is the amount of cash flow we generate in this business. And as I said in my comments, the relatively modest valuation that a company of our quality is trading at.

And if you roll those things forward, our leverage ratio isn't going to change much at all it will go up a little bit, but it isn't going to change much. So.

I think one of the things we are looking at us.

Is the amount of cash flow, we generated in this business and as I said in my in my comments the.

The relatively modest valuation that a company of our quality is trading at and I think we we do our shareholders a service by locating at all ways to.

Speaker 3: And I think we do our shareholders a service by looking at all ways to enhance shareholder value.

To enhance shareholder value.

Speaker 4: Sounds good. That' it's helpful. This one final question, I' mean the about.

Sounds good.

Helpful and just one final question a moment investment.

Speaker 4: management. How's the fundraising outlook and how's the competitive environment for fundraising? Obviously, alternatives are a pretty hot space.

Management, how does the fund raising outlook.

What is the competitive environment.

For fund raising obviously alternative sort of pretty hot space.

Okay.

Speaker 3: Well, I mean, we had record fundraising last year, $6.1 billion through our investment management arm. I think this year, we think we're going to have another record yet again.

Well I mean, we had a record fundraising last year to $6 $1 billion.

Through our investment management arm.

I think this year.

We think we're going to have another record yet again.

Speaker 3: As you said, our asset classes that we focus on are in vogue. Obviously, infrastructure is very hot, so we'll see how Basalt does. They've just

As you said are asset classes that we focus on are.

In bulk.

Obviously infrastructure is very broad so we will see how the salt does they just substantially completed their most recent fund in.

Speaker 3: substantially completed their most recent fund and now that the transaction is announced and out there, we'll be out raising, I believe, its biggest fund ever, beginning in the next 45, 60 days, so we're hoping for a very strong fundraising year in 2022.

Now with the transactions announced the note there will be out.

Raising I believe its biggest fund ever.

Beginning in the next.

45, 60 days so.

We're hoping for a very strong fundraising.

Year in 'twenty two.

Speaker 4: Sounds good. Thanks, Jane Christian. I'll turn it over. Great year. Great quarter, great year.

Sounds good thanks, Jim Christian.

Turn it over a great year.

Great quarter, great year.

Thanks.

Speaker 1: Thank you. And as a reminder, to ask a question, you will need to press star 1 on your telephone. Once again, to ask a question, please press star 1.

Thank you and then as a reminder to ask a question you will need to press star one on your telephone.

Again to ask a question please press star one.

Speaker 1: Our next question comes from the line of Steven MacLeod with BMO Capital Markets.

Our next question comes from the line of Stephen Macleod with BMO capital markets.

Thank you good morning, guys.

Hey, Steve.

Speaker 5: I just wanted to follow up on Basalt, which looks like a very complementary investment management acquisition. And Jay, you mentioned in your comments,

Good morning.

I just wanted to follow up on the salt, which looks like a very very complementary investment management acquisition.

Joe You mentioned in your in your comments.

Speaker 5: certainly some opportunities to be synergistic with Harrison Street as well as the rest of Collier's global platform. I was just wondering if you can elaborate a little bit on what some of those synergies look like and how we can think about that in terms of magnitude between Basalt and the existing business.

Certainly some.

Some opportunities too.

Could be synergistic with Harrison Street as well as the rest of Colliers Global platform. I was just wondering if you can elaborate a little bit on what some of those synergies look like.

And how we can think about that in terms of magnitude between the salt and the existing business.

Speaker 3: Well, there's the obvious, which is call yourself a global platform, with global relationships we're marketing.

Well.

There's the obvious which is colliers is a global platform with global relationships, we're marketing.

Speaker 3: transactions all around the world and having having the salt as part of the family gives them a I would say a first look but an assured look

Actions all around the world and having.

Having the salt as part of the family gives them a.

I would say a first look at assured look at any opportunities that we may be marketing as well as special relationships our job in our markets and our traditional businesses to no capital sources and flows of capital and so introducing.

Speaker 3: at any opportunities that we may be marketing, as well as special relationships. You know, our job in our markets and our traditional business is to know capital sources and flows of capital. And so introducing flows of capital to Harrison Street or Basalt and Collier's Global Investors has borne nice fruit in terms of fundraising.

Flows of capital too.

Harrison Street or the salt at our and Colliers Global investors has borne nice route in terms of fundraising but also the.

Speaker 3: But also the types of investors in all of our funds are those investors that value the governance, value the track record of our platform companies within investment management and are always asking us what additional asset classes should we be considering.

The types of investors in all of our funds are those investors that value the governance value.

<unk> record of R. R.

Our platform companies within investment management at are always asking us what additional asset classes should we be considering and so there's that.

Speaker 3: And so there's a growing need, I would say, on our side to get better.

There is a.

Growing need I would say on our side to get better at leveraging existing LP relationships between our different.

Speaker 3: at leveraging existing LP relationships.

Speaker 3: between our different platforms to create additional fundraising sources. So there's just a few.

Our different platforms too.

To create additional fund raising sources, so theres just a few.

Speaker 3: There's just a few opportunities there, but there are countless others that will help leverage.

Theres just a few opportunities there, but there are countless there are countless others.

That will help leverage.

Speaker 3: existing platforms and enhance the returns.

<unk> platforms and enhance the returns for our Lps and and that's happening really across the board.

Speaker 3: for our LPs and that's happening really across the board.

Okay. That's that's great color. Thank you.

Speaker 9: And then I didn't want to get too granular here, but I'm just curious about what you're seeing in terms of the office

Sure.

And then I didn't want to get too granular here, but I'm just curious about what youre seeing in terms of the office.

Speaker 9: either capital markets or leasing backdrop across your geographies. I know you mentioned Christian in your prepared remarks that office is within 5% of 2019 levels. Just curious what you're seeing between geographic regions.

Capital markets or leasing backdrop across our geographies I know you mentioned Christian in your prepared remarks that office is within 5% of 2019 levels, just curious what youre seeing between geographic regions.

Speaker 2: We're seeing more office activity in all the regions. I would say probably more in the Americas and coming back, probably something we're expecting to see more and to come back more in EMEA and Asia-Pac, in the coming quarters. But certainly, you know, things are...

We're seeing more office activity.

In all regions.

I would say.

Probably more in the Americas and coming back.

It probably something we're expecting to see more to come back more in.

In EMEA and Asia Pac in the coming quarters, but certainly things are.

Speaker 2: Progressing well and activity is rebounding.

Progressing well in activity as the rebound.

Hi.

Speaker 9: Okay, that makes sense. And then maybe similar to that, are you seeing, do you expect to see any asset classes sort of begin to weaken as we get back to normal, if we do end up getting back to normal in 2022 from a pandemic perspective?

Okay that makes sense and then maybe.

Similar to that.

Are you seeing do you expect to see any any asset class will sort of begin to weaken as we get back to normal if we do end up getting back to normal in 2022 from a pandemic perspective.

Speaker 2: Well, I'm not sure I would characterize this weakening, but I think a moderation of activity and in plastic industrial, you know, there really is. And retail has been coming back, but industrial has been so strong for a long time, and that I think will moderate over time.

Well I'm not sure I would characterize it as weakening, but I think a moderation of activity in classes like industrial.

And retail has been.

Then coming back but.

Industrial has been so strong.

For a long time and that I think will moderate over time.

Speaker 9: Okay, that's great. Well, thanks guys. Congrats on a great quarter and a year and great performance for the pandemic.

Okay.

That's great well, thanks, guys, congrats on a great quarter, and a year and great performance with the pandemic.

Thank you.

Speaker 1: Thank you. And our next question comes from the line of Barrow Young with PD Secured.

Thank you and our next question comes from the line of Daryl Young with TD Securities.

Speaker 5: Good morning, guys. I just wanted to follow up a little bit for the investment management business.

Sure.

Good morning, guys.

Just wanted to follow up a little bit further on the investment management business.

Speaker 5: It sounds like more asset classes could be in the works in the future. Is there a chance that investment management ends up at 50% of EBITDA in the future? I mean, you're already at a pro-former basis around 25%, which I think is sort of the goalpost you use to speak to, but just given fundraising and then the potential for more asset classes seems like you could be a very big part of the next year going forward.

It sounds like more asset classes could be in the works in the future is there a chance that investment management ends up at 50% of EBITDA in the future I mean, youre already at on a pro forma basis around 25%.

Which I think is sort of the.

Goalposts you used to speak to but just given the fund raising and then the potential for more asset classes. It seems like it could be a very big part of the mix here going forward.

Speaker 3: You know, that's a pretty ambitious target that you're outlining. The interesting thing is that as we grow investment management, so too is our services business growing by leaps and bounds. I mean, internal growth there has been staggering. I would say anecdotally that a lot of that growth or some of that growth is coming.

That's a pretty ambitious target that Europe I think the interesting thing is that as we grow investment management.

So too is our services business growing.

By leaps and bounds that made the internal growth there has been staggering.

I would say anecdotally that a lot of that growth or some of that growth is coming from the enhanced stature. We gained by being in the investment management business and the opportunities that that's creating for us and we've just really scratched the surface. So I don't think anybody here.

Speaker 3: from the enhanced stature we gain by being in the investment management business and the opportunities that that's creating for us and we've just really scratched the surface.

Speaker 3: So, I don't think anybody here is thinking in terms of 25% of our, or 50% of our eventuality coming from investment management, but it is growing and our long strategy, the Collier's partnership philosophy is something that is really resonating with the right targets.

Thinking in terms of 25% of our of our or.

50% of our EBITDA coming from investment management, but it is growing and our long strategy.

The Colliers partnership philosophy is something that is really resonating with the right targets.

Speaker 3: And we're very gratified to have the opportunities we have today, and we believe that there will be other like targets.

And we're very gratified.

To have the.

The opportunities we have today and we believe that there will be other.

Mike.

Speaker 3: that want a permanent long-term capital partner, somebody who can add value and leverage everything we have to offer. You know, let's remember Collier's is global with a globally balanced business with strong leadership teams in every geographic region, meaning we can acquire and grow virtually anywhere in the world. I, you know, I sort of mentioned that in my comments, but.

Targets that want a permanent long term capital partner somebody who can add value with leverage everything we have to offer.

Let's remember Colliers is global with a globally balanced business with strong leadership teams in every geographic region, meaning we can acquire and grow virtually anywhere in the world.

I sort of mentioned that in my comments, but.

Speaker 3: you know, how many companies have that opportunity, few at best.

How many companies have that opportunity few at best.

Speaker 3: And that comes back to our one-step-at-a-time approach, the strength of our management teams, the tenure of our management teams. They've been around a long time. They know the way we operate. So we're very bullish.

<unk>.

That comes back to.

Our one step at a time approach the strength of our management teams. The tenure of our management teams they've been around a long time. They know they know the way we operate so we're very bullish.

Speaker 3: about this company and proud of what we have accomplished over many years. And I think that the future is our oyster in many ways as long as we continue to apply the same principles that we've used for many years to create shareholder value.

About this.

<unk> company and proud of what we have accomplished over many years.

And I think that the.

The future is our oyster.

In many ways as long as we continue to apply the <unk>.

<unk> principles that we've used for many years to create shareholder value.

Speaker 5: Okay, terrific. And then one other quick one, just on the engineering side, maybe just a quick update there, you've been acquisitive in the last 12 months and very quickly building a platform, but what the organic pipeline maybe looks like now that you've had a chance to piece all those businesses together under one umbrella?

Okay terrific and then one other quick one just on the engineering side.

Maybe just a quick up there update there you've been acquisitive in the last 12 months.

Very quickly building a platform, but what the organic pipeline, maybe it looks like now that you've had a chance to piece all those businesses together under one umbrella.

Speaker 3: So, you know, Christian may have some additional thoughts here. But, you know, again, I'm going to emphasize.

So Chris you may have some additional thoughts here, but again I'm going to emphasize.

Speaker 3: that our current initiatives around engineering, which have been very positive, we have an incredible leadership team there that has integrated several acquisitions. They have a pipeline of others. Let's just remember, this is only U.S.

Our current initiatives around engineering, which has been very positive, but we have an incredible leadership team there that has integrated several acquisitions.

Have a pipeline of others, let's just remember this is only U S.

Speaker 3: There is no reason why we can't advance and grow these businesses in other geographic regions which we fully intend to do, which opens up a massive growth engine outside of our core business, but very much related, using a globally institutionally recognized brand.

There is no reason why we cant advance and grow these businesses in other geographic regions, which we fully intend to do which opens up in the massive.

Growth engine.

Side of our core business, but very much related using a globally institutionally recognized brand and it comes back to my comments again around an exceptional company substantially undervalued or underappreciated for the many opportunities we.

Speaker 3: And it comes back to, you know, my comments, again, around an exceptional company.

Speaker 3: substantially undervalued or underappreciated for the many opportunities we have to double and triple the size of our business in the company in the coming years. So I think engineering is

Have to double or triple the size of our business in the company in the coming years. So I think engineering is just another great opportunity for our structured the right way.

Speaker 3: Another great opportunity for us structured the right way with multiple consolidation and growth opportunities.

With multiple consolidation and growth opportunities, which will execute in.

Speaker 3: which we'll execute in our usual Collier's way.

Our usual colliers away.

Speaker 5: Okay, excellent. Thanks very much, guys, and congrats on 2021.

Okay excellent thanks, very much guys and congrats on the 2021.

Thanks Derek.

Speaker 1: Thank you. And our next question comes from the line of Frederick Bastien with Raymond James.

Thank you and our next question comes from the line of Frederic Bastien with Raymond James.

Hi, guys.

Speaker 6: You're outsourcing an advisory segment at a very strong year, up some 20% organically across regions. I'm wondering if you could break that down between, you know,

Hey, Brad.

Youre outsourcing and advisory segment had a very strong year up some 20% organically across regions wondering.

I'm wondering if you could break that down between now.

Speaker 6: what is coming from improving and market demand, like share gains.

What is coming from improving.

End market demand like share gains.

Speaker 6: And perhaps some new offerings, service offerings that you implement.

And perhaps in new offerings service offerings that you <unk>.

Clemente.

Speaker 2: Yeah, Frederick, the America's Outsourcing Advisory Group includes engineering, and of course, we've been active there on the acquisition front with a number of acquisitions, most recently Bergman in November of 2021.

Yes Fredric.

The Americas trusted Advisory group includes engineering and of course, we've been active there on the acquisition front.

Fronts with a number of acquisitions most recently.

Byrd Amendment in November .

2021.

Speaker 2: So, that's the story in the Americas. Of course, in the Americas, the project management business and the valuation business, as well as the property management business, have all had great years contributing to organic growth. I'd say the same in EMEA and HVAC, valuations practice, engineering practices, I'm sorry, not the engineering, but valuation practices, project management.

So thats.

In the Americas of course.

The Americas project management fitness and these evaluations business.

As well as the property manager business have all had great years.

Turning to organic growth.

I'd say the same in EMEA and Asia Pac valuations practice.

Engineering practices I'm, sorry, not the inventory valuation practices project management.

Speaker 2: and property management have all grown nicely and have contributed to the organic growth of those two regions.

And property management.

<unk> grown nicely.

And have a.

Contributing to the organic growth from those two regions regions.

Speaker 6: Okay, I get that, but you were coming off depressed levels in 2021, so just wondering if there was also some, did you notice any market share gains that you were able to accomplish?

Okay, I get that but we're coming off a depressed levels in 2021. So just wondering if there was also some <unk>.

Did you notice any market share gains that you were able to accomplish.

Speaker 2: Yeah, I mean, I don't have any specific information in front of me, but I do think we are growing our market share and our growth in those have been very, very strong.

Yes.

Have any specific information in front of me, but I do think we are growing our market share.

And our growth in those businesses.

Sure.

Very strong.

Speaker 3: You know, just looking at our numbers, Brad, like, you know, outsourcing and advisory being so recurring is generally, you know, a sub-10% kind of grower. It grew 30% this year overall. So I would say we're taking significant gains. The acquisition of Bergman was in December or November . So it was. We also had the annualization of the major acquisition.

Just look just looking at our numbers of brands like.

Outsourcing and advisory being so recurring is generally.

Sub 10% kind of grower.

Through 30% this year overall, so I would say, we're taking significant gains the acquisition.

Bergman was in December or November . So it was we also have the utilization.

Speaker 3: But still not enough to reflect the growth. So I would say we're taking nice share, not to the same degree perhaps as in some of the other areas, but very formidable to say the least.

The major acquisition of Australia.

Still not enough to reflect the growth. So I would say, we're taking nice to know.

Nice.

Sure.

Not to the same degree perhaps as in some of the other areas but.

Very formidable to say the least.

Speaker 6: Great, I'll leave it at that. Very hard to poke holes in the story right now. Good job. Thanks, Brent.

Great I'll leave it at that very hard to poke holes in the story right now the job.

Thanks, Greg.

Thank you and I'm showing no further questions I'll now turn the call over to the global Chairman and CEO , Mr. Jay Hennick for any closing remarks.

Speaker 1: I'll now turn the call over to Global Chairman and CEO , Mr. Jay Hennig, for any closing remarks.

Speaker 3: Thank you, operator, and thanks, everyone, for participating in this quarter's conference call. We look forward to the first quarter to report again. In the interim period, I believe, we'll have our annual meeting, and so that will be webcast for those that want to participate.

Thank you operator, and thanks, everyone for participating in this quarter's conference call.

We look forward to the first quarter.

To report again.

In the interim period I believe we will have our annual meeting and so.

That will be webcast for those that.

That want to participate.

Speaker 3: So thanks for joining us, and we look forward to speaking to you again soon. Thank you.

Thanks for joining us.

We look forward to speaking to you again soon.

Thank you.

Speaker 1: Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and have a nice day.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating and have a nice day.