Q1 2022 Colliers International Group Inc Earnings Call

May 3, 2022

The bottom line of all of this is thisthe leadership team of Colliers has a proven 27 -year track record of creating significant value for shareholders.

The bottom line of all of this is this. The leadership team of Colliers has a proven 27-year track record of creating significant value for shareholders.

The Collier's business model is balanced, highly recurring and diversified and generates a lot of free cash flow that we reinvest in our growth.

All of these characteristics, together with our unique enterprise culture, growth mindset and significant insight ownership, position us very well to continue delivering superior returns for our shareholders.

All of these characteristics, together with our unique enterprising culture, growth mindset, and significant inside ownership, position us very well to continue delivering superior returns for our shareholders. And let me be clear—

And let me be clear on one other thing.

At its core. Colliers is an extremely well-managed service business.

At its core, Collier's is an extremely well-managed service business.

Because of this, we're able to weather the various macro events that might impact others, like inflation, interest rates pandemic, regional conflicts and supply chains, to name a fewour results over the past number of years have demonstrated this in space.

Because of this, we're able to weather the various macro events that might impact others, like inflation, interest rates, pandemic, regional conflicts, and supply chains, to name a few. Our results over the past number of years have demonstrated this in space.

With that said, I'll now turn things over to Christian: Christian. Thank you, Jay. As announced this morning, colars reported strong first quarter financial results.

With that said, I'll now turn things over to Christian. Christian. Thank you, Jay. As announced this morning, Collier's reported strong first quarter financial results.

My comments follow the flow of the slides posted on the Investor Relations section of pliers com to accompany this call.

My comments follow the flow of the slides posted on the investor relations section of Colliers.com to accompany this call.

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

All references to revenue growth are expressed in local currency.

Yeah.

All references to revenue growth are expressed in local currency.

Operator: Welcome to the Colliers International first quarter investors conference call.

First quarter revenues were one billion, up 31% relative to the prior year period, with revenues up strongly across all service lines.

Today's call is being recorded.

First quarter revenues were $1 billion, up 31% relative to the prior year period, with revenues up strongly across all service lines.

Sure.

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

Growth for the quarter was primarily internally generated.

growth of the corridor was primarily internally generated.

Actual results may be materially different from any future results, performance or achievements come straight into forward looking statements.

Compared to 2019 prepandemic levels, capital markets revenues wereup 52% and leasing was up 27%, with office leasing recovering to within 5% of Q1 19 levels.

Compared to 2019 pre-pandemic levels, capital markets revenues were up 52% and leasing was up 27% with office leasing recovering to within 5% of Q1-19 levels.

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 10F as filed with the U.S. Securities and Exchange Commission.

Q1 22 adjusted EBITDA was one hundred and twenty-one million, up 33% from one year ago, with margins at twelve point 1%, up slightly from 12% in the prior year quarter, driven by the Americas region.

Q122 adjusted EBITDA was $121 million, up 33% from one year ago, with margins at 12.1%, up slightly from 11.9% in the prior year quarter, driven by the Americas region.

As a reminder, today's call is being recorded today May 3rd, 2022.

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

First quarter, Americas revenues were 642 million, up 35% over the prior year.

First quarter, America's revenues were $642 million, up 35% over the prior year.

pxing activity was up 41%, led by industrial.

Leasing activity was up 41% led by industrial.

Jay Steward Hennick: Thank you operator. Good morning, and thanks for joining us for the first quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the company and with me today is Christian Mayer, our Chief Financial Officer.

catapital Mark's activity was up 35% and was led by industrial land and multifamily aspect classes.

capital market activity was up 35% and was led by industrial, land and multifamily asset classes.

offxious leasing activity was within 2% of Q1. two thousand and nineteen prepandemic levels.

office leasing activity was within 2% of Q1 2019 pre-pandemic levels.

As always this conference call is being webcast live and is available in the Investor Relations section of our website.

Outsourcing and advisory revenues were up 31%, driven by engineering and design, including recent acquisitions, as well as valuation and loan servicing.

A presentation slide deck is also available to accompany this call.

Today Colliers delivered very strong first quarter results across all service lines building on the momentum from last year.

Adjusted EBITDA was 81 million, up 43% from last year, with the margin up 60 basis points to 13% on favorable operating leverage from higher revenues in all service lines.

Adjusted EBITDA was $81 million, up 43% from last year, with a margin of 60 basis points to 12.6% on favorable operating leverage from higher revenues in all service lines.

Revenue, EBITDA and earnings per share were all up sharply and we were pleased to see that assets under management in our investment management segment was also up considerably.

and we were pleased to see that assets under management in our investment management segment was also up considerably.

First quarter EMEA revenues were 153 million, up 30% from one year ago, with robust growth across all service lines, led by osicing and advisory in capital markets.

First quarter EMEA revenues were $153 million, up 30% from one year ago, with robust growth across all service lines, led by outsourcing and advisory in capital markets.

Last week, we announced the promotion of Chris McClarnon to Chief Executive Officer of our real estate services global business. Over the past 12 years as the leader of our EMEA business, Chris delivered some very exceptional results.

Adjusted EBITDA was five million up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins, and other services.

adjusted EBITDA was $5 million, up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins than other services.

In his new role, Chris will oversee our capital markets, leasing and outsourcing and advisory businesses globally reporting to me.

First quarter, Asia Pacific revenues were 119 million down 3%, driven by COVID-19 lockdowns in several Asian markets, as well as a tough prior year comparison which benefited from a number of high-margin capital markets transactions.

First quarter Asia-Pacific revenues were $119 million, down 3%, driven by COVID-19 lockdowns in several Asian markets, as well as a tough prior year comparison which benefitted from a number of high margin capital markets transactions.

Having him on board will provide us with the bench strength we need to successfully pursue our ambitious 2025 growth plan.

During the quarter. We were also busy on the acquisition front. We added our affiliate operations in Cincinnati and Cleveland, we completed the previously announced acquisition of our affiliate and in Italy, and Colliers engineering and design expanded its operations in the U.S. southwest and just after quarter end, we completed the acquisition of Antirion, which is currently being integrated into our global investors platform in Europe.

Adjusted EBITDA was one million, down from 15 million in the prior year quarter.

adjusted EBITDA was 10 million, down from 15 million in the prior year quarter.

Investment management revenuesis reighty-six million, up 94% versus the prior year period.

Investment management revenues were $86 million, up 94% versus the prior year period.

Italy, and Colliers engineering and design expanded its operations in the U.S. southwest and just after quarter end, we completed the acquisition of Antirion, which is currently being integrated into our global investors platform in Europe.

After eliminating the impact of pass-through, carried interest revenues were up 38%, driven by management fee growth.

After eliminating the impact of pass-through carried interest, revenues were up 38%, driven by management fee growth.

Assets under management were 52 billion at quarter, end up 26% from one year ago.

Assets under management were $52 billion at quarter end, up 26% from one year ago.

Adjusted EBITDA for the quarter was 27 million, up 51% versus the comparative quarter on solid flow-through from incremental management fee revenue.

The DUS EBITDA for the quarter was $27 million, up 51% versus the comparative quarter on solid flow-through from incremental management fee revenue.

Once we complete the new partnership with the salt infrastructure partners, our IAM business will represent almost 25% of our consolidated EBITDA.

Our financial leverage ratio, as defined as net debt to pro forarma adjusted EBITDA, was zero, zero point nine X as of March thirty-first twent, y and twenty-two.

Our financial leverage ratio, as defined as net debt to pro forma adjusted EBITDA, was 0.9 times as of March 31, 2022.

This marks an important milestone in our service line diversification, Increases our recurring revenue streams and represents another step in the transformation of Colliers into a very different kind of company.

Increases our recurring revenue streams and represents another step in the transformation of Colliers into a very different kind of company.

Most of our debt is locked in at attractive fixed interest rates averaging less than 3%.

During the first quarter we invested in acquisitions and we utilized our normal course issuer bid, the first time as a public company.

During the first quarter, we invested in acquisitions, and we utilized our normal course issuer bid the first time as a public company.

In the future, we expect our IAM segment to represent an even greater proportion of our overall EBITDA.

We repurchased just under one million shares in March and April .

We repurchased just under 1 million shares in March and April .

So far this year, we completed or announced acquisitions totaling more than $400 million and our pipeline remains strong. If we're successful, 2022 should be a record year of capital allocation for Colliers.

Given our socks current trading price, our low leverage.

Given our stock's current trading price, our low leverage

Future growth prospects and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

future growth prospects, and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

With our strong balance sheet, disciplined capital deployment and solid operating cash flow, we continue to be very well capitalized for future growth.

With our strong balance sheet, disciplined capital deployment, and solid operating cash flow, we continue to be very well capitalized for future growth.

The bottom line of all of this is this: the leadership team of Colliers has a proven 27 year track record of creating significant value for shareholders.

leadership team of Colliers has a proven 27 year track record of creating significant value for shareholders.

We are increasing our outlook for the full year 2022 to reflect our strong Q1 results as well as recent acquisitions.

The Colliers business model is balanced, highly recurring and diversified and generates a lot of free cash flow that we reinvest in our growth.

The outlook is subject to risks and uncertainties have outlined in the accompanying slides.

The outlook is subject to risks and uncertainties, I don't mind any accompanying slides.

All of these characteristics together with our unique enterprising culture, growth mindset and significant insider ownership position us very well to continue delivering superior returns for our shareholders.

Now expect low double-digit revenue growth, consisting of high single-digit internal growth and the balance from previously completed and recently announced acquisitions.

Now expect low double-digit revenue growth consisting of high single-digit internal growth and the balance from previously completed and recently announced acquisitions.

We expect our adjusted EBITDA margin to improve 40 to 80 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisity.

We expect our adjusted EBITDA margin to improve 40 to 80 basis points relative to 2021 from a combination of internal operating leverage and higher margin activity.

And let me be clear on one other thing, at its core, Colliers is an extremely well managed service business. Because of this, we're able to weather the various macro events that might impact others like inflation, interest rates, pandemic, regional conflicts and supply chains to name a few.

At its core Colliers is an extremely well managed service business because of this we're able to weather the various macro events that might impact others like inflation interest rates pandemic regional conflicts and supply chains to name a few.

Finally our adjusted earnings per share are expected to grow at a high teens percentage rate for 2020 -two.

Finally, our adjusted earnings per share are expected to grow at a high teens percentage rate for 2022.

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

Our results over the past number of years have demonstrated this in spades.

In Cal ladays and joh MAN. If like to question at this time, please press your startar, then the one key on your touchdown celephone.

Ladies and gentlemen, if you'd like to ask a question at this time, please press the star then the one key on your touch-tone telephone.

With that said I'll now turn things over to Christian. Christian.

Please stand by when be compiled to cany rorestaurant.

Christian Mayer: Thank you Jay. As announced this morning, Colliers reported strong first quarter financial results.

Now first question coming from the line-off stepheven Sheldon with wilin Blair. heilan is open.

First question coming from the lineup, Steven Sheldon with William Blair.

My comments follow the flow of the slides posted on the Investor Relations section of colliers.com to accompany this call.

Good morning guys and congraph on the strong resultsfirst thing want to ask about just the APAC, the Asia Pacific regioncan you talk about the trend you saw there throughout the quarter? Did the weakness related to COVID-19 bockdown get more pronounced in the quarter? Went longer? Did you start to see any signs of?

Hey, good morning guys and congrats on the strong results. First thing I wanted to ask about just the APAC, the Asia Pacific region. Can you talk about the trends you saw there throughout the quarter? Did the weakness related to COVID lockdowns get more pronounced as the quarter went along or did you start to see any signs?

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

All references to revenue growth are expressed in local currency.

First quarter revenues were $1 billion- up 31% relative to the prior year period, with revenues up strongly across all service lines.

Stabilization. Just be good, I guess. Get the more commentary there as you think about the kaythat's for the rest of the year.

Stabilization just would be good to get some more commentary there as we think about the cadence for the rest of the year.

Growth for the quarter was primarily internally generated.

I think you're talking about Asia Pacific as opposed to EMEA, but correctly me if I'm wrong. Shoulder sorry, sorry age Pacific J.

I think you're talking about Asia Pacific as opposed to EMEA, but correct me if I'm wrong, Sheldon. Sorry. Sorry.

Compared to 2019, pre-pandemic levels, capital markets revenues were up 52% and leasing was up 27%, with office leasing recovering to within 5% of Q1 2019 levels.

Yes Stephen, the you the. The lockdown situation in Q1 was really the main driver of of the revenue there and certainly you know we've been in lockdowns before. Lockdowns cause delays in the transactional side of the business. Of course the recurring side busn't continue to operate the, the property management and valuations and that sort of thing.

Yes, Stephen, the lockdown situation in Q1 was really the main driver of the revenue there. And certainly, we've been in lockdowns before. Lockdowns cause delays in the transactional side of the business.

Q1 2022 adjusted EBITDA was $121 million, up 33% from one year ago with margins at 12.1% up slightly from 11.9% in the prior year quarter, driven by the Americas region.

up 33% from one year ago with margins at 12.1% up slightly from 11.9% in the prior year quarter, driven by the Americas region.

Of course, the recurring side of the business continues to operate, you know, the property management and valuations and that sort of thing.

First quarter Americas revenues were $642 million, up 35% over the prior year.

Leasing activity was up 41% led by industrial.

Revenues were impacted Q1 from the lockdowns. We expect that will ease as the year progresses.

Revenues were impacted in Q1 from the lockdowns. We expect that will ease as the year progresses.

Capital markets activity was up 35% and was led by industrial, land and multifamily asset classes.

And we think the revenue growth there will be stronger in the future.

and we think the revenue growth there will be stronger.

Ox leasing activity was within 2% of Q1 2019 pre-pandemic levels.

Now as you know, in China, for example, there's three cases of cot and they've closed the whole country down. So, notwithstanding that, we still generated pretty respectable revenues and earnings in that marketplace. But there are other markets in Asia that are going through similar lockdown, So it is slowing us down a bit but, as you can see from the results, not materially So.

Now, as you know, in China, for example, there's three cases of COVID and they've closed the whole country down. So notwithstanding that, we still generated pretty respectable revenues and earnings in that marketplace. But there are other markets in Asia that are going through similar lockdown. So it is slowing us down a bit. But as you can see from the results, not materially.

Outsourcing and advisory revenues were up 31% driven by engineering and design, including recent acquisitions as well as valuation and loan servicing.

Loan servicing.

Adjusted EBITDA was $81 million up 43% from last year with the margin up 60 basis points to 12.6% on favorable operating leverage from higher revenues in all service lines.

Yes got it. That's helpful. And then just want to ask about the AUM growth in investment management. I mean it's been really impressive and consistently strong. So what's working so well on that side in terms of?

Yep, got it. That's helpful. And then just wanted to ask about the AUM growth in investment management. I mean, it's been really impressive and consistently strong. So what's working so well on that side in terms of

First quarter EMEA revenues were $153 million up 30% from one year ago with robust growth across all service lines led by outsourcing and advisory and capital markets.

Capital raising. And what about Collier's broad-based capabilities? I guess they're anything to call up that's helping to support that growth.

capital raising and what about Collier's broad-based capabilities? I guess is there anything to call out that's helping to support that?

Adjusted EBITDA was $5 million up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins than other services.

Well I think. I think it all starts with the exceptional platforms that we have already as part of our investment management platform: Harrison street callliers, global investors and soon to be bassaalult. These are allle exceptional alternate asset a platforms, their managed by extremely seasoned professionals that own a direct equity stake in our- our business and Stephen, as you know, over many years, that's been a core of the way call ERS operates. Our role is to help them accelerate their growth. There's a various ways for us to have done that. You see, in the case of Harrison street, which is, you know, four and a half years in history now and the company has tripleed that size, it's triple that evenve, and it's just starting.

Well, I think I think it all starts with the exceptional platforms that we have already as part of our investment management platform, Harrison Street, Collier's Global Investors and soon to be Basalt.

First quarter Asia Pacific revenues were $119 million, down 3% driven by COVID-19 lockdowns in several Asian markets as well as a tough prior year comparison, which benefited from a number of high margin capital markets transactions.

These are all exceptional alternate asset.

platforms. They're managed by extremely seasoned professionals that own a direct equity stake in our business. And Stephen, as you know, over many years, that's been a core of the way Colliers operates.

Adjusted EBITDA was $10 million down from $15 million in the prior year quarter.

Investment management revenues were $86 million up 94% versus the prior year period.

Our role is to help them accelerate their growth. There's various ways for us to have done that. You see in the case of Harrison Street, which is four and a half years in history now, and the company has tripled its size, it's tripled its EBITDA, and it's just starting.

After eliminating the impact of pass through carried interest revenues were up 38% driven by management fee growth.

Assets under management were $52 billion at quarter end up 26% from one year ago.

Adjusted EBITDA for the quarter was $27 million up 51% versus the comparative quarter on solid flow through from incremental management fee revenue.

So there's a variety of ways in which we help them do that, but I would say that by and large- starting with exceptional professionals that have a significant equity stake in the business- is the is really the backbone of the success of Harrison street and and, of course, the assault has many, many of the same characteristics. So we're we're very excited about this aspect of our business. We think it's substantially hidden within Colliers and we think our strategy in that area is second to none.

So there's a variety of ways in which we help them do that.

But I would say that by and large, starting with exceptional professionals that have a significant equity stake in the business, is really the backbone of the success of Harrison Street.

Our financial leverage ratio as defined as net debt to pro forma adjusted EBITDA was 0.9x as of March 31, 2022.

And, of course, Basalt has many, many of the same characteristics. So we're very excited about this aspect of our business. We think it's substantially hidden within Collier's, and we think our strategy in that area is second to none.

Most of our debt is locked in at attractive fixed interest rates, averaging less than 3%.

During the first quarter, we invested in acquisitions and we utilized our normal course issuer bid the first time as a public company.

We repurchased just under 1 million shares in March and April.

Good he thanks for taking my questions and congrapt again on the results.

Given our stocks current trading price, our low leverage future growth prospects and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

Good to hear. Thanks for taking my questions and congrats again on the results. Thanks, Stephen.

future growth prospects and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

Thank even.

andour next question, coming from the line of George the MAN with cotia Bank UL on, is open.

With our strong balance sheet, disciplined capital deployment and solid operating cash flow, we continue to be very well capitalized for future growth.

The morning I Congress on the results. J I think you made obvious that. J think you made obvious that you wanted to ear the investment management segment beyond kind of 23% of a ftal EBITDA. I want to ask you how much you maybe give us the sense of maybe with specific asset causes or areas that you want to get a bigger out.

Good morning guys, congrats on the results. Jay, I think you made it obvious that you wanted to grow the investment management segment beyond 23% of total EBITDA. I won't ask you how much, but can you maybe give us a sense of maybe what specific asset classes or areas that you want to get bigger in.

We are increasing our outlook for the full year 2022 to reflect our strong Q1 results as well as recent acquisitions.

The outlook is subject to risks and uncertainties as outlined in the accompanying slides.

You know the percentage? We don't know because it's all a function of strategically acquiring the right businesses in the right way, So it's unlikely we're we're an acquirer of 100% of any exceptional investment management platform, but I think that that there is a growing desire amongst entrepreneurally run businesses to join the strategy that we have, and so we're excited about it. You know, the only number that we have offered to the street is that over the course of our five year period our our, our recurring revenue streams should exceed sixty 5%. How much of that will be from our other recurring services or investment management, we don't know, but you'll see a transren. You'll see if transform as we continue to pursue this growth strategy.

You know, the percentage we don't know because it's all a function of strategically acquiring the right businesses in the right way. So it's unlikely we're an acquirer of 100% of any exceptional investment management platform.

We now expect low double digit revenue growth consisting of high single digit internal growth and the balance from previously completed and recently announced acquisitions.

We expect our adjusted EBITDA margin to improve 40 to 80 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisition.

Um, but, um, I think that, um,

that there is a growing desire amongst.

Finally, our adjusted earnings per share are expected to grow at a high teens percentage rate for 2022.

uh entrepreneurially run businesses to join the strategy that we have and so we're excited about it you know the only number that we have offered

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

to the street is that over the course of our five-year period, our recurring revenue streams should exceed 65 percent. How much of that will be from our other recurring services or investment management, we don't know, but you'll see it transform as we continue to pursue this growth strategy.

Operator: Thank you. Ladies and gentlemen, if you'd like to ask a question at this time please press the star then the one key on your touchtone telephone.

Please standby, while we compile the Q&A roster.

Our first question coming from the line of Stephen Sheldon with William Blair. Your line is now open.

Stephen Hardy Sheldon: Hey, good morning guys and congrats on the strong results.

First thing I wanted to ask about just the APAC- the Asia Pacific region.

Okay should we expect more, I guess, of infrastructure, student housing, senior housing? Is that kind of the laan you want stand?

Okay, and should we expect more, I guess, of infrastructure, student housing, senior housing? Is that kind of the lane we want to stay in?

Can you talk about the trends you saw there throughout the quarter? Did the weakness related to Covid lockdowns get more more pronounced as the quarter went along or did you start to see any signs of stabilization?

Well that's that's for sure. Harrison street: they dominate in that area in in the? U us. They've established over the past year their first open-ended fund in Canada. They have an extremely successful and growing business in in Europe . But it's all. It's all focused on infrastructure students seniors, other alternative asset classes that are, you know, where you can generate better returns for investors. So you know, that's very much a core of how we see our overall platform in the years to come.

Well that's for sure Harrison Street, they dominate in that area in the US.

Just would be good to I guess get some more commentary there as you think about the cadence for the rest of the year. Thanks.

They've established over the past year their first open-ended fund in Canada. They have an extremely successful and growing business in Europe .

Jay Steward Hennick: I think you're talking about Asia Pacific as opposed to EMEA but correct me, if I'm wrong Sheldon.

correct me, if I'm wrong Sheldon.

Stephen Hardy Sheldon: Sorry. Yes, Asia Pacific. Yep. Thanks.

But it's all focused on infrastructure, students, seniors, other alternative asset classes.

Yes.

Christian Mayer: Yes, Steven, the lockdown situation in Q1 was really the main driver of the revenue there. Certainly, we've been in lockdowns before.

the lockdown situation in Q1 was really the main driver.

that are, you know, where you can generate better returns.

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The revenue.

for investors. So, that's very much a core of how we see our overall platform in the years to come.

There certainly.

We've been in Lockdowns before locked.

Lockdowns caused delays in the transactional side of the business.

Okay and you guys have been active on the Niv, as referenced for the first time as a public company. Operating performance has been strong. The shares haven't really reacted accordingly. Just wondering: is buying own' thought here maybe more attractive than in the name? Would you consider maybe a more meaningful return of capital to shareholders?

Okay. You guys have been active on the NTIB as reference for the first time as a public company. Operating performance has been strong. The shares haven't really reacted accordingly. I'm just wondering, is buying our own stock here maybe more attractive than M&A? Would you consider maybe a more meaningful return of capital to shareholders?

Of course, the recurring side of business continues to operate - Property management, and valuations and that sort of thing.

Property management, and valuations and that sort of thing.

Revenues were impacted in Q1 from the lockdowns. We expect that will ease as the year progresses.

Lockdowns, we expect that will ease as the year progresses.

And.

We think the revenue growth there will be stronger in the future.

Well it something that we evaluate every day George, our every hour. And you know, I think first and foremost we are interested in growing our business organically and through acquisition. But when we see the market not appreciating the value of our shares, then that caused us to take consideration of that and in April and in March we acted and we may continue to act in the future on that. We will decide that on a day by day basis.

Well, I mean, it's something that we evaluate every day, George. Hourly. Every hour. And I think first and foremost, we are interested in growing our business organically and through acquisition. But when we see the market not appreciating the value of our shares.

Stronger in the future.

Jay Steward Hennick: No as you know in China, for example, there are three cases of Covid and they've closed the whole country down.

So not withstanding that, we still generated a pretty respectable revenues and earnings in that marketplace, but there are other markets in Asia that are going through similar lockdowns. So it is slowing us down a bit but as you can see from the results not materially so.

then that caused us to take consideration of that. And in April and in March we acted and we may continue to act in the future on that. And we'll decide that on a day by day basis.

Stephen Hardy Sheldon: Yep, got it. That's helpful.

And then, I just wanted to ask about the AUM growth and investment management. It's been really impressive and consistently strong, so what's working so well on that side in terms of capital raising and what about Colliers' broad based capabilities? I guess is there anything to call out that's helping to support that growth?

Okay I just want last month to me in general occupier services, with a big strategy of us our, as we spoke about it quite a bit before the pandemic, can you maybe just give us an update in terms of where we are now?

Okay, thanks. This is one last one for me. In general, occupier services was a big strategy of ours. We spoke about it quite a bit before the pandemic. Can you maybe just give us an update in terms of where we are now?

capital raising and what about Colliers' broad based capabilities? I guess is there anything to call out that's helping to support that growth?

That would continue to be active in not global occupier services and we have a recruiting plan to grow that business meaningfully over the next five years as part of enterprise 25 plan. I think we're on track with that and you see it, and reflected in the results.

Yeah, we continue to be active in global occupier services and we have a recruiting plan to grow that business meaningfully over the next five years as part of our Enterprise 25 plan. I think we're on track with that and you see it reflected in the results.

Jay Steward Hennick: Well I think I think it all starts with the exceptional platforms that we have already as part of our investment management platform, Harrison Street, Colliers Global Investors and soon to Basalt.

These are all exceptional alternative asset of platforms. They are managed by extremely seasoned professionals that own a direct equity stake in our business.

of platforms. They are managed by extremely seasoned professionals that own a direct equity stake in our business.

Okay LL do that. Thank guysthank.

Now next question, coming from the line of Stephen mcclem: would bml capital you want is openp.

Our next question coming from the line of Stephen McClough with BMO Capital. Your line is open.

Our business.

And Stephen as you know over many years, that's been a core of the way Colliers operates. Our role is to help them accelerate their growth. There are various ways for us to have done that. You see in the case of Harrison Street, which is, you know, four and a half years in history now and the company has tripled its size, it's tripled its EBITDA and it's just starting.

Great Thank you. Good morning guys.

I just wanted to ask about the outlook of our revised guidance and just get a little bit of sense as to sort of what factors you're considering in the 2020 outlook with respect to maybe nearr-term visibility and potentially longer-term visibility as you get in the back half of the year.

I just wanted to ask about the outlook and the revised guidance and just get a little bit of sense as to sort of what factors you're considering in the 2020 outlook with respect to maybe nearer-term visibility and potentially longer-term visibility as you get into the back half of the year.

four and a half years in history now and the company has tripled its size, it's tripled its EBITDA and it's just starting.

the company has tripled its size, it's tripled its EBITDA and it's just starting.

So.

Theres a variety of ways in which we help them do that but I would say that by and large starting with exceptional professionals that have a significant equity stake in the business is the- is really the backbone of the success of Harrison Street and of course Basalt has many many of the same characteristics. So we're very excited about this aspect of our business we think it's substantially hidden within Colliers and we think our strategy in that area is second to none.

X Ve. We increased our guidance for the year in part on the strong result in Q1 and also our good visibility into Q2 transaction activity. We also have very good visibility on the recurring side of our business, which is half the revenue, and that gives us confidence in our outlook. Now, as it relates to the back half of the year in transactionsyou, we did not simply increase the guidance for that. There are obviously some macro factors that play here- situation with the conflict in Eastern Europe , interest rates and all that stuff- But by a large you, we are, as as I mentioned, increasing our outlook for the reasons outline.

Thanks, Steve. We increased our guidance for the year in part on the strong result in Q1 and also our

is the- is really the backbone of the success of Harrison Street and of course Basalt has many many of the same characteristics. So we're very excited about this aspect of our business we think it's substantially hidden within Colliers and we think our strategy in that area is second to none.

good visibility into Q2 transaction activity.

and of course Basalt has many many of the same characteristics. So we're very excited about this aspect of our business we think it's substantially hidden within Colliers and we think our strategy in that area is second to none.

We also have very good visibility on the recurring side of our business, which is half the revenue, and that gives us confidence in our outlook.

has many many of the same characteristics. So we're very excited about this aspect of our business we think it's substantially hidden within Colliers and we think our strategy in that area is second to none.

Now, as it relates to the back half of the year in transactions, we did not simply increase the guidance for that. There are obviously some macro factors at play here, the situation with the conflict in Eastern Europe , interest rates and all that stuff. But by and large, we are, as I mentioned, increasing our outlook for the regions outlined.

hidden within Colliers and we think our strategy in that area is second to none.

think our strategy in that area is second to none.

Stephen Hardy Sheldon: Good to hear. Thanks for taking my questions and congrats again on the results.

Jay Steward Hennick: Thanks Steven.

Operator: And our next question coming from the line of George Doumet with Scotiabank. Your line is open.

George Doumet: Hey, good morning guys. Congrats on the results.

Jay, I think you made it obvious that you've made it obvious that you wanted to grow the investment management segment beyond kind of 23% of total EBITDA.

Great great, Thank you. And then I just wanted to.

you've made it obvious that you wanted to grow the investment management segment beyond kind of 23% of total EBITDA.

Great, great, thank you. And then I just wanted to, with respect to Harrison Street and the investment management business, you know, the strong fundraising momentum that you saw actually in Q4 and now coming into Q1, what kind of visibility do you have in terms of the fundraising momentum through the balance of the year?

grow the investment management segment beyond kind of 23% of total EBITDA.

With respect to Harrison street and the invesestment management business, the strong fundraising momentum that you saw- AC Q4 and now coming into q1- what kind of visibility do you have in terms of the fundraising momentum through the balance of the year?

I won't ask you how much but can you maybe give us a sense of maybe what specific asset classes or areas that you want to get bigger in?

you want to get bigger in?

The.

Jay Steward Hennick: The percentage we don't know because it's all a function of strategically acquiring the right businesses in the right way. So it's unlikely we're an acquirer of a 100% of any exceptional investment management platform.

Well we have very strong visibility, the Q this particular year, where in the market, with Christian four six 6, six funds, all funds are increasing in size from previous, from previous funds as, as you probably no- 80 to 90% of the Investors roll into the subsequent fund, and so we're quite excited about the prospects of fundraising in in the current year. And the saalt is also actively fundraising, as is and ter, So it'll be very interesting to see how we do over the next couple of quarters. But are internal expectations are significantly better than last year, which itself was a record year for us.

Well, we have very strong visibility. Q, this particular year we're in the market with Christian 4? 6?

Investment management platform.

six funds. All funds are increasing in size from previous funds.

But I.

I think that.

That there is a.

But I think that there is a growing desire amongst entrepreneurially run businesses to join the strategy that we have and so we're excited about it.

As you probably know, 80-90% of the investors roll into the subsequent fund.

entrepreneurially run businesses to join the strategy that we have and so we're excited about it.

We're quite excited about the prospects of fundraising in the current year. Basalt is also actively fundraising as is Anterion. So it'll be very interesting to see how we do over the next couple of quarters.

The only number that we have offered to the street is that over the course of our five year period our recurring revenue streams should exceed 65%. How much of that will be from our other recurring services or investment management? We don't know but you'll see it transform as we continue to pursue this growth strategy.

to the street is that over the course of our five year period our recurring revenue streams should exceed 65%. How much of that will be from our other recurring services or investment management? We don't know but you'll see it transform as we continue to pursue this growth strategy.

R R.

our recurring revenue streams should exceed 65%. How much of that will be from our other recurring services or investment management? We don't know but you'll see it transform as we continue to pursue this growth strategy.

but our internal expectations are significantly better than last year, which itself was a record year for us.

but you'll see it transform as we continue to pursue this growth strategy.

You'll see it.

Transform as we continue to pursue this growth strategy.

backso that's fantastic, and maybe it just finally.

That's fantastic. And then maybe just finally...

George Doumet: Okay and should we expect more, I guess, of infrastructure at student housing, senior housing is that kind of the lane you want to stay in?

With respect to the macro backdrop and the potential for rising rates? Are you beginning to see any of those conversations, or any of those factors, begin to creep into conversations about transaction activity, or is that something that is just kind of on hold for now and people are waiting to see how things unfold?

With respect to the macro backdrop and the potential for rising rates, are you beginning to see any of those conversations or any of those factors begin to creep into conversations about transaction activity, or is that something that is just kind of on hold for now and people are waiting to see how things unfold?

housing is that kind of the <unk>?

Jay Steward Hennick: Well that's for sure Harrison Street. They dominate in that area in the U.S. They've established over the past year their first open ended fund in Canada. They have an extremely successful and growing business in Europe but it's all it's all focused on infrastructure, students, seniors, other alternative asset classes that are where you can generate better returns for investors.

the U.S. They've established over the past year their first open ended fund in Canada. They have an extremely successful and growing business in Europe

Well you know, I tried to make the point in my in my prepared remarksyou know macro concepts really don't affect Colliers. They never did, and anybody who thinks they do is smoke. Something where were're impacted is in the investment decisions of invvestors that may or may not decide to continue with their investments, and it's all over the place.

Well, you know, I tried to make the point in my prepared remarks. You know, macro concepts really don't affect callers. They never did. And anybody who thinks they do is smoking something. Where we're impacted is in the investment decisions of investors that may or may not decide to continue with their investments. And it's all over the place.

In Europe .

but it's all it's all focused on infrastructure, students, seniors, other alternative asset classes that are

where you can generate better returns for investors.

So, that's very much a core of how we see our overall platform in the years to come.

George Doumet: Okay, and you guys have been active on the NCIB as referenced for the first time as a public company. Operating performance has been strong, but the shares haven't really reacted accordingly.

Some say, as interest rates go up, we're going to sell assets. Some say we have shopping malls. We're selling all the shopping malls and getting out of shopping malls because we don't like it anymore. Others say logistics are impacted by supply chain, So they're not going to build as many logistics centers. Inflation could be beneficial to owners of real estate, but we don't really own real estate. All we do is by sell and lease real estate. So all we want is a velocity in our non recurring business and, as Christian said, more than just over 50% of our business is recurring today. So we're really talking about the non recurring portion of our business and there's more velocity, there's more pipeline. There's more activity in capital markets, in leasing today than ever before, and when I listen to the geniuses out there're talking about the macro vents and the tail windins and all that stuff. They're talking about owners of real estate. Potentially they're not talking about those who serve those owners as we do. So I wanted to make that point and I thank you for bring it up the because, as a long term Investor and building huge value for shareholders over a long period of time, I smile at some of the some of the editorial around that. So I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is.

Some say as interest rates go up, we're going to sell assets. Some say we have shopping malls, we're selling all the shopping malls and getting out of shopping malls because we don't like it.

I'm just wondering is buying our own stock here and maybe more attractive than M&A? Would you consider maybe a more meaningful return of capital to shareholders?

Others say logistics are impacted by supply chains, so they're not going to build as many logistics centers.

Multiple speakers: Well I mean, it's something that we evaluate every day, Georg. Hourly. Every hour and I think first and foremost we are interested in growing our business organically and through acquisition, but when we see the market not appreciating the value of our shares then that caused us to take consideration of that in April and in March we acted and we may continue to act in the future on that and we'll decide that on a day by day basis.

Inflation could be beneficial to owners of real estate, but we don't really own real estate. All we do is buy, sell and lease real estate. So all we want is velocity in our non-recurring business. And as Christian said, more than just over 50% of our business is recurring today. So we're really talking about the non-recurring portion of our business.

Every hour.

And.

I think first and foremost we are.

interested in growing our business organically and through acquisition, but when we see the market not appreciating the value of our shares then that caused us to take consideration of that in April and in March we acted and we may continue to act in the future on that and we'll decide that on a day by day basis.

then that caused us to take consideration of that in April and in March we acted and we may continue to act in the future on that and we'll decide that on a day by day basis.

consideration of that in April and in March we acted and we may continue to act in the future on that and we'll decide that on a day by day basis.

April and in March we acted and we may continue to act in the future on that and we'll decide that on a day by day basis.

and we may continue to act in the future on that and we'll decide that on a day by day basis.

And there's more velocity, there's more pipeline, there's more activity.

<unk>.

capital markets in leasing today than ever before.

George Doumet: Okay. Thanks, just one last one for me. On general occupier services was a big strategy of ours, we spoke about it quite a bit before the pandemic.

And when I listen to the geniuses out there talking about the macro events and the tailwinds and all that stuff, they're talking about owners of real estate potentially. They're not talking about those who serve those owners as we do.

Can you maybe just give us an update in terms of where we are now?

Christian Mayer: Yeah, we continue to be active in global occupier services, and we have a recruiting plan to grow that business meaningfully

So I wanted to make that point, and I thank you for bringing it up, Steve, because as a long-term investor and building huge value for shareholders over a long period of time, I smile at some of the editorial around this. So I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is.

over the next five years as part of our enterprise 25 plan.

I think we're on track with that and you'll see it reflected in the results.

with that and you'll see it reflected in the results.

George Doumet: Okay. Thanks, guys.

Christian Mayer: Thanks.

Operator: And our next question coming from the line of Steven MacLeod with BMO Capital. Your line is open.

Stephen MacLeod: Great. Thank you good morning, guys.

Stuff happens But as you could see from our own results over the past.

Stuff happens, but as you can see from our own results over the past.

Christian Mayer: Hey, Steve.

Stephen MacLeod: I just wanted to ask about the outlook of the revised guidance and just get a little bit of a sense as to sort of what what factors you are considering in the 2020 outlook with respect to maybe nearer term visibility and potentially longer term visibility as you get into the back half of the year.

10 years, five years picket. We just continue to get stronger and grow better and gain share. So I think, call ERS and frankly, some of its peers.

10 years, five years, pick it. We just continue to get stronger and grow better and gain shares. So I think Collier's, and frankly, some of its peers.

in the 2020 outlook with respect to maybe nearer term visibility and potentially longer term visibility as you get into the back half of the year.

nearer term visibility and potentially longer term visibility as you get into the back half of the year.

Have tremendous business models that are unappreciated by the marketplace.

have tremendous business models that are unappreciated by the marketplace.

Christian Mayer: Yes, Thanks, Steve.

We.

Well great, that's a very good color. J Thank you so much. Thanks, Christian.

We increased our guidance for the year in part on the strong result in Q1 and also our good visibility into Q2 - transaction activity.

Well, great. That's a very good color, Jay. Thank you so much. Thanks, Christian.

orno Broom n.

and also our good visibility into Q2 - transaction activity.

good visibility into Q2 - transaction activity.

And ans my Ladies and gentlemen to ask a question, please press bar one.

And as for my ladies and gentlemen, to ask a question, please press star 1.

We also have very good visibility on the recurring side of our business, which is half the revenue and that gives us confidence in our outlook. Now as it relates to the back half of the year and transactions we did not simply increase the guidance for that. There are obviously some macro factors at play here - situation with the conflict in eastern Europe, interest rates and all that stuff, but by and large we are as I mentioned, increasing our outlook for the regions outlined.

very good visibility on the recurring side of our business, which is half the revenue and that gives us confidence in our outlook. Now as it relates to the back half of the year and transactions.

Our next question, coming from the lanov, scot thompsson, with CIBC onn is open.

Question coming from the line of Scott from Sun with CIBC

and that gives us confidence in our outlook. Now as it relates to the back half of the year and transactions.

Thank you I think that you've gone over in pretty good detail. The drivers the factors and that especially the outlook and giving us clear understanding of.

confidence in our outlook. Now as it relates to the back half of the year and transactions.

Thank you. I think that you've gone over in pretty good detail the drivers and the factors, and especially the outlook, and giving us a clear understanding of

we did not simply increase the guidance for that. There are obviously some macro factors at play here - situation with the conflict in eastern Europe, interest rates and all that stuff, but by and large we are as I mentioned, increasing our outlook for the regions outline.

Of what, what your old, the kids, and how strong it is.

factors at play here - situation with the conflict in eastern Europe, interest rates and all that stuff, but by and large we are as I mentioned, increasing our outlook for the regions outline.

of what your outlook is and how strong it is.

situation with the conflict in eastern Europe, interest rates and all that stuff, but by and large we are as I mentioned, increasing our outlook for the regions outline.

umjust a quick question though.

interest rates and all that stuff, but by and large we are as I mentioned, increasing our outlook for the regions outline.

Are you? Are there any particular business lines under markets where you are seeing market share gains?

Are there any particular business lines and their markets where you are seeing market share gains? Everywhere.

by and large we are as I mentioned, increasing our outlook for the regions outline.

as I mentioned, increasing our outlook for the regions outline.

Outline.

Everywhere.

Everywhere market share gains everywhere.

Stephen MacLeod: Great. Great. Thank you.

And then I just wanted to, with respect to Harrison Street and the investment management business, you know the strong fund raising momentum that you saw in Q4, and now coming into Q1, what kind of visibility do you have in terms of the fund raising momentum through the balance of the year?

Ok.

with respect to Harrison Street and the investment management business, you know the strong fund raising momentum that you saw in Q4, and now coming into Q1, what kind of visibility do you have in terms of the fund raising momentum through the balance of the year?

Thank you all. I'll leave it in 15, that's's don't. I don't mean.

Thank you all. I'll leave it at that.

the strong fund raising momentum that you saw in Q4, and now coming into Q1, what kind of visibility do you have in terms of the fund raising momentum through the balance of the year?

in Q4, and now coming into Q1, what kind of visibility do you have in terms of the fund raising momentum through the balance of the year?

Any York.

No all I'm saying is: I mean, just look at the actual results for the quarter and it's been pretty consistent over the past couple of years, up 30% in virtually every area. Pretty impressive.

No, all I'm saying is, I mean, just look at the actual results for the quarter and it's been pretty consistent over the past couple of years, you know, up 30% in virtually every area. Pretty impressive.

what kind of visibility do you have in terms of the fund raising momentum through the balance of the year?

Jay Steward Hennick: Well, we have very strong visibility.

The Q - this this particular year, we're in the market with- Christian 4 or 6 funds? All funds are increasing in size from previous funds.

Yeah.

And exceeding our own expectations frankly, I mean, I'd like to say I'd like to Pat ourselves on the back and say it was all all preplanned, but these kinds of results across the Board, market for market, are beating our own internal expectations, which tells us that there's way more to go and our pipelines continue to be very strong everywhere.

and exceeding our own expectations, frankly. I'd like to pat ourselves on the back and say it was all pre-planned, but these kinds of results across the board, market for market, are beating our own internal expectations, which tells us that there's way more to go, and our pipelines continue to be very strong everywhere.

Previous funds.

As you as you probably know 80% to 90% of the investors roll into the subsequent fund and so we are quite excited about the prospects of fundraising in the current year, and Basalt is also actively fundraising as is Antirion.

and so we are quite excited about the prospects of fundraising in the current year, and Basalt is also actively fundraising as is Antirion.

So you, we're excited about the next, the next, the next phase.

in the current year, and Basalt is also actively fundraising as is Antirion.

So, you know, we're excited about the next phase.

Basalt is also actively fundraising as is Antirion.

fundraising as is Antirion.

That's great. Thank you, I appreciate the clarity.

So, it'll be very interesting to see how we do over the next couple of quarters but our internal expectations are significantly better than last year, which itself was a record year for us.

And our next question, coming from anel barrel young, with city security seal on is open.

but our internal expectations are significantly better than last year, which itself was a record year for us.

And our next question coming from the line of Farrell Young with City Securities. Your line is open. Hey, good morning, guys, and congrats.

significantly better than last year, which itself was a record year for us.

Hey good morning guys and congrats on a good results.

Stephen MacLeod: That's fantastic. And then maybe, just finally with respect to the macro backdrop and the potential for rising rates: Are you beginning to see any of those conversations or any of those factors beginning to creep into conversations about transaction activity or is that something that is just kind of on hold for now and people are waiting to see how things unfold?

Thanks to ostin.

Just I mean the ona segments that historically been very, very resilienti'm still getting a lot of questions from investors about how they may or may not be tied through to the transaction side and how the transaction side is required in order to keep growing the na. Would you like to comment on that at all and maybe just clear the air on the ability to continue growing ona even if there was somewhat of a pullback in transaction side?

The O&A segment has historically been very, very resilient. I'm still getting a lot of questions from investors about how they may or may not be tied through to the transaction side and how the transaction side is required in order to keep growing the O&A. Would you like to comment on that at all and maybe just clear the air on the ability to continue growing the O&A even if there was somewhat of a pullback in transaction side?

with respect to the macro backdrop and the potential for rising rates.

Are you beginning to see any of those conversations or any of those factors beginning to creep into conversations about transaction activity or is that something that is just kind of on hold for now and people are waiting to see how things unfold?

Jay Steward Hennick: Well I tried to make the point in my in my prepared remarks.

Macro concepts really don't effect Colliers. They never did, and anybody who thinks they do is smoking something.

Well may darrell. We, as an example in property management, we manage two billion square feet space around the world and most of those contracts we also provide leasing services for those owners of those assets.

As an example, in property management, we manage 2 billion square feet of space around the world and in most of those contracts, we also provide leasing services for those owners of those assets.

Colliers, they never did and anybody who thinks they do as smoking something.

Where we are impacted is in the investment decisions of investors that may or may not decide to continue with their investments and it's all over the place.

of investors that may or may not decide to continue with their investments and it's all over the place.

Now the property management contract is a recuring monthly contract, leasing a little bit more opportunistic right. There's a tenant the needs space than when we're there- a transact behalf of the of the landlord to make that, to make that happen. They're tied together, a very complementary to each other. But at the end of day, the recur revenue, ie the recuring reven piece, and the transactions will come when they come and they will come and you know, if there's, you know, any kind of delay in decision making by tenants or whatever,'ll get that leasing revenue in a later quarter.

Now, the property management contract is a recurring monthly contract.

leasing, a little bit more opportunistic, right? If there's a tenant that needs.

Some say as interest rates go up we're going to sell assets. Some say we have shopping malls we're selling all the shopping malls and getting out of shopping malls, because we don't like it anymore. Others say logistics are impacted by supply chain, so they're not going to build as many logistic centers.

space, and we're there to transact on behalf of the landlord to make that happen. They're tied together, they're very complementary to each other, but at the end of the day, the recurring revenue piece is the recurring revenue piece and the transactions will come when they come. And they will come, and you know, if there's any kind of an issue.

Logistics centers.

Inflation could be beneficial to owners of real estate, but we don't really owned real estate. All we do is buy, sell and lease real estate. So all we want is velocity in our non-recurring business and as Christian said more than- just over 50% of our business is recurring today, so we're really talking about the non-recurring portion of our business and there's more velocity. There's more pipeline. There is more activity in capital markets and leasing today than ever before and when I listened to the geniuses out there talking about the macro events and the tail winds and all that stuff, they're talking about owners of real estate potentially. They're not talking about those who serve those owners as we do, so I wanted to make that point and I thank you for bringing it up, Steve, because as a long term investor and building huge value for shareholders over a long period of time I smile at some of the- some of the editorial around that so I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is. Stuff happens.

you know, delay in decision making by tenants or whatever, we'll get that leasing revenue in a later quarter.

You know, and I would add, you know, an important element of that is are engineering and project management business, which I'm going to get the aggregate number slightly wrong, but it's probably together six or $7 million globally. That this six hundred million dollars globally, these are all long duration relationships that continuue to recur after the relationship is completed. So So if we get retained by and owner to help with the construction of a new building- for them it's typically a three year exercise and that often continues beyond that three year period- we may take over the property management of that contract. That particular owner might decide to build a second building or a third building and all that's in the project management component of our business and an engineering. Virtually every single day in every large conx there is some engineering, a service required and once year the engineer of record- it's again a long term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about are outsourcing and advisory component, these are high value add services. This isn't janiorial, it's high value add services that have long duration, strong client relationships that our valued and we have a bit of a mote because we have inside information into how that building operates and where the you know the weaker pieces of that building a might be. So as the ongoing service provider or expert in the specialty, we're there for a long period of time. I don't think many investors appreciate that piece of what we're doing and that that part of our business continues to grow very rapidly. And I think, as the market for commercial real estate continues to mature, as we're seeing much more construction of new products, new building out there, even infrastruure assets out there that are that our investment management firms, our participating in all of them, need.

You know, and I would add, you know, an important element of that is our engineering and project management business, which I'm going to get the aggregate number slightly wrong, but it's probably together six or seven hundred million dollars globally. Is that what it is, Christian? Six hundred million dollars globally. These are all long duration.

is recurring today, so we're really talking about the non-recurring portion of our business and there's more velocity. There's more pipeline. There is more activity in capital markets and leasing today than ever before and when I listened to the geniuses out there talking about the macro events and the tail winds and all that stuff, they're talking about owners of real estate potentially. They're not talking about those who serve those owners as we do, so I wanted to make that point and I thank you for bringing it up, Steve, because as a long term investor and building huge value for shareholders over a long period of time I smile at some of the- some of the editorial around that so I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is. Stuff happens.

there talking about the macro events and the tail winds and all that stuff, they're talking about owners of real estate potentially. They're not talking about those who serve those owners as we do, so I wanted to make that point and I thank you for bringing it up, Steve, because as a long term investor and building huge value for shareholders over a long period of time I smile at some of the- some of the editorial around that so I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is. Stuff happens.

that continue to recur after the relationship is completed. So if we get retained by an owner to help with the construction of a new building for them.

It's typically a three-year exercise, and that often continues beyond that three-year period. We may take over the property management of that contract. That particular owner might decide to build a second building or a third building. That's in the project management component of our business. In engineering, virtually every single day in every large complex, there is some engineering

because as a long term investor and building huge value for shareholders over a long period of time I smile at some of the- some of the editorial around that so I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is. Stuff happens.

too much of what goes on. Look, everybody is. Stuff happens.

But, as you can see from our own results over the past 10 years, 5 years, pick it - we just continue to get stronger and grow better and gain share. So, I think Colliers, and frankly some of its peers, have tremendous business models that are unappreciated by the marketplace.

service required and once you're the engineer of record it's again a long-term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about our outsourcing and advisory component, these are high-value-add services.

we just continue to get stronger and grow better and gain share. So, I think Colliers, and frankly some of its peers, have tremendous business models that are unappreciated by the marketplace.

This isn't janitorial. It's high value add services that have long duration, strong client relationships that are valued.

Stephen MacLeod: Well, great that's very good color Jay.

So much thanks Christian.

Multiple speakers: Alright, no problem. Thanks, Steve.

and we have a bit of a moat because we have inside information into how that building operates and where the weaker pieces of that building might be. So as the ongoing service provider or expert in the specialty, we're there for a long period of time. I don't think many investors appreciate

Operator: And as a reminder, ladies and gentlemen to ask a question please press star one.

Our next question coming from the line of Scott Fromson with CIBC. Your line is open.

Scott Douglas Fromson: Thank you.

I think that you've gone over in pretty good detail the drivers, the factors, especially the outlook giving us clear understanding of what your outlook is and how strong it is.

You've gone over in pretty good detail.

The drivers of the factors.

Actually the outlook.

giving us clear understanding of what your outlook is and how strong it is.

What.

What what your outlook is and how strong it is.

that piece of what we're doing and that part of our business continues to grow very rapidly. And I think as the market for commercial real estate continues to mature, as we're seeing much more construction of new products, new buildings out there, even infrastructure assets out there that our investment management firms are participating in, all of them need

Just a quick question, though.

Are you are.

Are there any particular business lines and their markets, where you are seeing market share gains?

Jay Steward Hennick: Everywhere.

Everywhere. Market share gains everywhere.

Scott Douglas Fromson: Okay.

Thank you. I'll leave it at that.

Jay Steward Hennick: Okay.

A project management capability to manage and oversee the construction of those projects in a defined professional way and so.

a project management capability to manage and oversee the construction of those projects in a defined professional way.

Scott Douglas Fromson: Sorry. I don't mean to cut you off.

Got you.

Jay Steward Hennick: No- all I am saying is just look at the actual results for the quarter and it's been pretty consistent over the past couple of years- up 30% in virtually every area.

just look at the actual results for the quarter and it's been pretty consistent over the past couple of years.

the quarter and it's been pretty consistent over the past couple of years.

We see that component of our business continuing to grow rapidly, and it gives us a level of consistency and resilience that most others don't have.

we see that component of our business continuing to grow rapidly and it gives us a level of consistency and resilience that most others don't have.

Up 30% in virtually every area.

Pretty impressive.

Scott Douglas Fromson: Yes.

Jay Steward Hennick: And exceeding our own expectations frankly.

And just to close that out, it also gives us the opportunity then to come in and provide the leasing services as I described, or a sailor disposition if that, if that owner that asset decide sutimately make that decision. So it tied the two parts and business together.

Just to close that out, it also gives us the opportunity then to come in and provide the leasing services, as I described, for a sale or disposition if that owner of that asset decides to ultimately make that decision. It ties the 2 parts of the business together.

<unk>.

I'd like to say- I'd like to pat ourselves on the back and say it was all preplanned, but these these kinds of results across the board, market for market, are beating our own internal expectations, which which tells us that there's way more to go and our pipelines continue to be very strong everywhere.

but these these kinds of results across the board, market for market, are beating our own internal expectations, which which tells us that there's way more to go

That's great color thing, and that it was. That was that too much, was that too myile of it that we give you it too much there.

That's great color things, but that was that was that too much was that too much did we give you too much there?

and our pipelines continue to be very strong everywhere.

So we're excited about the next- the next- the next phase.

It's perfect, I think. I think we, you can benefit from there right now, given just given, some of the concerns thatare out there. So it's great color, Thank you. And maybe just one last quick one I'm not sure if you'll debite on this, but the potential for another verticals, as any headway been made there in terms of Framing in what that could look like.

It's perfect. I think we can benefit from it right now, just given some of the concerns that are out there. It's a great color. Thank you. And maybe just one last quick one. I'm not sure if you'll bite on this, but the potential for another vertical, has any headway been made there in terms of framing and what that could look like?

Next.

The next phase.

Scott Douglas Fromson: That's great. Thank you. I appreciate the clarity.

Operator: And our next question coming from the line of Daryl Young with TD Securities. Your line is open.

Well we're- as somebody has the same question, maybe you on the last call. We have our. We have a full pipeline of activities in our existing, our existing verticals. We have global growth opportunities in every one of those verticals. So there's nothing really on the horizon that that I can see. Famous last words of something you know tremendous came. We obviously have the capacity to do it, but we're very confident that we're building some very, very strong and unique and differentiated verticals that will- that will you know- really stand the test of time and create incredible value for our shareholders.

Well, we're, we're, as somebody asked the same question, maybe you on the last call, we have our, we have a full pipeline of activities in our existing.

Daryl Young: Hey. Good morning, guys and congrats on a good result.

Multiple speakers: Thanks Darryl.

Just.

Daryl Young: Just, I mean, the O&A segments have historically been been very, very resilient. I'm still getting a lot of questions from investors about how they may or may not be tied through to the transaction side and how the transaction side is required in order to keep growing the O&A?

our existing verticals. We have global growth opportunities in every one of those verticals. So there's nothing really on the horizon that I can see, famous last words of something tremendous came. We obviously have the capacity to do it, but we're very confident that we're building some very, very strong and unique and differentiated verticals.

Would you like to comment on that at all and maybe just clear the air on the ability to continue growing O&A even if there was somewhat of a pullback in transaction side?

if there was somewhat of a pullback in transaction side?

Christian Mayer: Well, I mean, Daryl, we- as an example in property management, we manage 2 billion square feet of space around the world and then most of those contracts, we also provide leasing services for those owners of those assets.

As an example in property management, we manage 2 billion square feet space around the world.

that will, um, that will, um,

you know, really stand the test of time and create incredible value for our shareholders.

and then most of those

contracts, we also provide leasing services for those owners of those assets.

Okay group, that's it for me. Thanks very much, gmen.

those assets.

Now the property management contract is it recurring monthly contract.

Our next question, coming from the line of Patrick best, in with Raymond James feelel, is open.

And our next question coming from the line of Patrick Bespin with Raymond James. Your line is open.

Leasing- a little bit more opportunistic, alright. If there's a tenant that needs space and we're there to transact on behalf of the landlord to make that- to make that happen.

space and we're there to transact on behalf of the landlord to make that- to make that happen.

Hi good morning.

Any Hi Frederic.

the landlord to make that- to make that happen.

The million shares that you repurchased. It started towards the end of the first quarter and then it's up until yesterday or today. Just wondering if it was evenly split between the two quarters.

The million shares that you repurchased, it started towards the end of the first quarter and then it's up until yesterday or today. I'm just wondering if it was evenly split between the two quarters.

They are tied together very complementary to each other, but at the end of the day the recurring revenue piece of the recurring revenue piece and the transactions will come when they come and they will come and if there is any kind of any decision, making by tenants or whatever, we will get that leasing revenue in a later quarter.

but at the end of the day the recurring revenue piece of the recurring revenue piece and the transactions will come when they come and they will come and if there is any kind of any decision, making by tenants or whatever, we will get that leasing revenue in a later quarter.

I think we purchased around six thousand shares during March and four thousand roughly in April fredick.

I think we purchased around 600,000 shares during March and 400,000 roughly in April , February .

Any kind of.

Yes.

And decision, making by tenants or whatever.

we will get that leasing revenue in a later quarter.

Okay that's good color, i. I'm just curious about how much liquidity you estimate you have going forward and against. The bazsollt transaction is as yet to close. And then you've got this: uh, you know the extra amount that you spend on the share purchase. So how comfortable are you? You can deploy capital, say in the second half, if you know, some great opportunities present themselves.

I'm just curious about how much liquidity you estimate you have going forward. I guess the Basalt transaction is as yet to close, and then you've got the extra amount that you spent on the share purchase. How comfortable are you that you can deploy capital in the second half if some great opportunities present themselves?

Jay Steward Hennick: And I would add that, you know, an important element of that is our engineering and project management business, which,

that an element of that is

<unk> Engineering and project management business, which.

Multiple speakers: I'm going to get the aggregate number slightly wrong, but it's probably together $600 or $700 million globally- is that what it is Christian? $600 million globally.

But I think we're very well positioned. frederick, we have a $1 billion revolver which has a a low drawn, and I think we around two million at the moment. First, we have the the solalt transaction to close, So lots of liquidity in the system and our leverage is very low. So we're well positioned.

Jay Steward Hennick: These are all long duration relationships that continue to recur after the relationship has completed. So- so if we get retained by an owner to help with the construction of a new building for them, it's typically a three year exercise and that often continues beyond that three year period. We may take over the property management of that contract. That particular owner might decide to build a second building or a third building and all that in the project management component of our business and in engineering virtually every single day and every large complex there is some engineering service required and once you're the engineer of record, it's again, a long term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about our outsourcing and advisory component, these are high value add services - this isn't janitorial - it's high value add services that have long duration, strong client relationships that are valued and we have a bit of a moat because we have inside information into how that building operates and where the weaker pieces of that building might be.

I think we're very well positioned. We have a $1Bn revolver, which has a low draw on it, I think around $200M at the moment. First, we have the Basalt transaction to close, so lots of liquidity in the system and our leverage is very low. We're well positioned.

an owner to help with the construction of a new building for them, it's typically a three year exercise and that often continues beyond that three year period. We may take over the property management of that contract, that particular owner might decide to build a second building or a third building and all that.

As your businesses become more and more recurring in nature, are you comfortable kind of leveraging more too as well? Can you remind me of what your comfort range is right now with respect to net de's hada?

As your business has become more and more recurring in nature, are you comfortable leveraging more too? Can you remind me of what your comfort range is right now with respect to NetDev Tabata?

build a second building or a third building and all that.

in the project management component of our business and in engineering virtually every single day and every large complex there is some engineering.

Well like. Our comfort zone is one to two times and we're comfortable at thatto two times level for the reason that you that you described, with the higher amount of recurring revenue and certainly if the business is transforming this year with the bassault transaction, we're going to have 23% of our EBITDA from investment management, extremely high visibility and the highly durable and high margin EBITDA coming from those services- low CapEx as well. So strong cash flow and when you know, if we get to a point where we're our leverage is above two times based on an acquisition or something we know we can quickly delever and get back into that during a sort of one to two times range quickly. So we feel pretty comfortable with our, you know, with with all that.

Look, like our comfort zone is one to two times and we're comfortable at that two times.

level for the reason that you described with the higher amount of recurring revenue. Certainly, the business is transforming this year with the Basalt transaction. We're going to have 23%.

service required and once you're the engineer of record, it's again, a long term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about our outsourcing and advisory

of our EBITDA from investment management. Extremely high visibility and highly durable and high margin EBITDA coming from those services. Low capex as well, so strong cash flow.

component, these are high value add services - this isn't janitorial - it's high value add services that have long duration, strong client relationships that are valued and we have a bit of a moat because we have inside information into how that building operates and where the weaker pieces of that building might be.

this isn't janitorial - it's high value add services that have long duration, strong client relationships that are valued and we have a bit of a moat because we have inside information into how that building operates and where the weaker pieces of that building might be.

If we get to a point where our leverage is above 2x based on an acquisition or something, we know we can quickly de-lever and get back into that 1-2x range quickly.

so we feel pretty comfortable with all that.

inside information into how that building operates and where the weaker pieces of that building might be.

Ok Jay, go one for you. Can you comment on the latest acquisition that CA colors inded did in the? U's Southwest? How does that kind of fits in the whole strategy, how well diversified you are now and the? U's and where you might take that business going forward.

Jay, can you comment on the latest acquisition that Collier's E&D did in the U.S. Southwest? How does that fit in the whole strategy? How well diversified you are now in the U.S. and where you might take that business going forward?

weaker pieces of that building might be.

So, as the ongoing service provider or expert in the specialty, we're there for a long period of time. I don't think many investors appreciate that piece of what we're doing in that- that part of our business continues to grow very rapidly and I think as the market for commercial real estate continues to mature as we're seeing much more construction of new products- new buildings out there even infrastructure assets out there that are that our investment management firms are participating in, all of them need a project management capability to manage and oversee the construction of those projects in a defined professional way. And so, we see that component of our business continuing to grow rapidly and it gives us a level of consistency and resilience that most others don't have.

You know, just briefly thred. You know it was. It was an excellent acquisition from our perspective. It fit very nicely into into our business our, our current business, or pre pre acquisition business, was had a very small and growing platform in Texas, So we needed, we needed to augment that that, that business, which we did, and we're very excited about the new partners that join the overall, the overall business and But I would say we have lots and lots of room in engineering in the? U's and globally. And and as you know, because you cover many engineering firms, we have a global brand, we have extensive client relationships and both of those things come in very handy, especially when you pursue a, a partnership philosophy, as we do, which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned engineering firm. So you know this has been, you know, standard fair for our business over 27 years. We understand had a build platforms through great partnerships with great people, and we see that this segment is right for the same growth trajectory and we can do it on a global basis. So lots, lots to do there, but it's still very small percentage- not very small, but still a small percentage of- of our global business.

You know, just briefly, Fred, it was an excellent acquisition from our perspective. It fit very nicely into our business, our current business or pre-acquisition business.

and I think as the market for commercial real estate continues to mature as we're seeing much more construction of new products- new buildings out there even infrastructure assets out there that are that our investment management firms are participating in, all of them need a project management capability to manage and oversee the construction of those projects in a defined professional way. And so, we

had a very small and growing platform in Texas, so we needed to augment that business, which we did, and we're very excited about the new partners that joined the overall business, but I would say we have lots and lots of room in engineering in the U.S., and

All of them need.

all of them need a project management capability to manage and oversee the construction of those projects in a defined professional way. And so, we

see that component of our business continuing to grow rapidly and it gives us a level of consistency and resilience that most others don't have.

And as you know, because you cover many engineering firms, we have a global brand, we have extensive client relationships.

consistency and resilience that most others don't have.

Christian Mayer: And just to close that out, it also gives us the opportunity then to come in and provide the leasing services that are described, or a sale or disposition if that owner or that asset decides ultimately to make that decision. So, it ties the two parts of the business together.

And both of those things come in very handy, especially when you pursue a partnership philosophy, as we do, which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned engineering firms. So, you know, this has been, you know, standard fare for our business over 27 years.

if that owner or that asset decides ultimately to make that decision. So, it ties the two parts of the business together.

to make that decision. So, it ties the two parts of the business together.

Multiple speakers: That's great color. Thanks. So was that- was that too much?

Jay Steward Hennick: Did we give you too much there?

Daryl Young: That's perfect. I think- I think we are- can benefit from it right now given just given some of the concerns that are out there, so it's great color. Thank you and maybe just one last quick one. I'm not sure if you'll bite on this but the potential for another vertical as any headway been made there in terms of framing and what that could look like?

can benefit from it right now given just given some of the

We understand how to build platforms through great partnerships with great people and we see that this segment is

concerns that are out there, so it's great color. Thank you and maybe just one last quick one. I'm not sure if you'll bite on this but the potential for another vertical as any headway been made there in terms of framing and what that could look like?

ripe for the same growth trajectory, and we can do it on a global basis. So, lots to do there, but it's still a very small percentage, not very small, but still a small percentage of our global growth.

Well.

Jay Steward Hennick: Well we're - somebody asked the same question- maybe you on the last call. We have our- we have a full pipeline of activities in our existing verticals.

Our existing verticals.

Great from specifically on a regional basis, on the? U's, if I recall you're in the Northeast, Southeast and now kind of Texas. Is California a white space for you?

Great. Specifically on a regional basis in the U.S., if I recall, you're in the northeast, the southeast, and now kind of Texas. Is California a white space for you?

We have global growth opportunities in every one of those verticals.

Our verticals.

There's nothing really on the horizon.

I can see famous last words, if something tremendous came we obviously have the capacity to do it but we're very confident that we're building some very, very strong and unique and differentiated verticals that will really stand the test of time and create incredible value for our shareholders.

In California, everything is everything.

It's California, everything is, everything.

we're very confident that we're building some very, very strong and unique and differentiated verticals that will really stand the test of time and create incredible value for our shareholders.

Sorry go ahead now. M Frank. California was an opportunity here.

Sorry? Go ahead. No, I was just wondering if California was an opportunity.

and unique and differentiated verticals that will really stand the test of time and create incredible value for our shareholders.

Yes and if you have a, if you have an idea in mind, I'll give you my phone number, which I know you already have.

Yeah, and if you have an idea in mind, I'll give you my phone number, which I know you already have. I do. All right. Thanks.

That will.

really stand the test of time and create incredible value for our shareholders.

I do all right thanks.

Actually thanks, ition.

Thanks Rick.

Daryl Young: Okay great.

That's it for me. Thanks, very much gentlemen.

Our next question, coming from the line of chinesyhotral with common saxial, onunis open.

Okay.

Our next question coming from the line of Chandni Guthra with Goldman Sachs, your line

Operator: And our next question coming from the line of Frederic Bastien with Raymond James. Your line is open.

Hi good morning Congratulations in a strong quarter. Could you perhaps help?

Hi, good morning. Congratulations on a strong quarter. Could you perhaps talk...

Frederic Bastien: Hi. Good morning.

Christian Mayer: Hi, Frederic.

Frederic Bastien: The million shares that you repurchased-

Could you perhaps talk about the driver of higher margin guidance? I mean, I know you alluded to could, if you getting some operating leverage, but then there's some acquisitions related impact as well, which is obviously working favorably for you. But is there a way to think about a split in kind of what piece and how much is coming from just leverage in the business?

Could you perhaps talk about the driver of higher margin guidance? I know you alluded to getting some operating leverage, but then there are some acquisitions related impact as well, which is obviously working favorably for you, but is there a way to think about a split in what piece and how much is coming from just leverage in the business?

it started towards the end of the first quarter and then it's up until yesterday or today. Just wondering if it was evenly split between the two quarters?

Wondering if it was evenly split between the two quarters.

Christian Mayer: I think we purchased around 600,000 shares during during March and 400,000 roughly in April, Frederic.

purchased around 600,000 shares during during March and 400,000 roughly in April Frederic.

Frederic Bastien: Okay. That's good color. I'm just curious about how much liquidity you estimate you have going forward? I guess the Basalt transaction is- has yet to close and then you've got this extra amount that you've spent on the share purchase.

For sure, anding the operating margin increase is half from organic sources. So you saw in the quarter the Americas business had, you know, strong revenues but also a strong margin growth. We expect that to continue through the through the year across. You know all of our regional businesses from operating leverage, from higher revenues, also from in some of the continuing cost management activities that we're undertaking around the company. The other half of the margin increase is from acquisitions and, as you know, investment management businesses operated higher margins. So the impact of the injurian deal which we just closed on apable first and the assalts transaction closing in the second half will drive that additional margin expansion on a consolidated basis.

Yeah, for sure, Jandy. The operating margin increase is half from organic sources. So, you saw in the quarter, the Americas business had strong revenues, but also strong margin growth. We expect that to continue through the year across all of our regional businesses.

is- has yet to close and then you've got this extra amount that you've spent on the share purchase.

And then you've got this.

extra amount that you've spent on the share purchase.

So, how comfortable are you that you can deploy capital say in the second half is some great opportunities present themselves?

say in the second half is some great opportunities present themselves?

Christian Mayer: I think we're very well positioned, Frederic. We have a $1 billion revolver, which has a low draw on it - I think around $200 million at the moment.

from operating leverage, from higher revenues, also from some of the continuing cost management activities that we're undertaking around the company. The other half of the margin increase is from acquisitions and as you know investment management businesses operate at higher margins.

No draw on it I think around $200 million at the moment.

First, we have the Basalt transaction to close, so lots of liquidity in the system and our leverage is very low, so, we're well positioned.

So lots of liquidity.

in the system and our leverage is very low, so, we're well positioned.

So, we're well positioned.

Frederic Bastien: As your business has become more and more recurring in nature are you comfortable kind of leveraging more too as well?

comfortable kind of leveraging more too as well?

So the impact of the Ontario deal, which we just closed on April 1st, and the Basalt transaction closing in the second half, will drive that additional margin expansion on a consolidated basis.

Can you remind me of what your comfort range is right now with respect to net debt to EBITDA?

Hello.

Christian Mayer: Our comfort zone is one to two times and we're comfortable at that two times level for the reason that you described.

That is great color. Thank you for that and then for my follow-up. So you guys talked about thinking about buyback. At this point, given how shares have just generally acted, is there something embedded in guidance that we should think about? Is a kind of model, our numbers, we you have given that high teens earnings growth today, and how much of buyback is embedded in there. Are you giving any guidance around that?

Level for the reason that you that you described.

Thank you for that and then for my follow-up, so you guys talked about thinking about buyback at this point given how shares have just generally acted, is there something embedded in guidance that we should think about as we kind of model our numbers? You have given that high teens earnings growth today.

With the higher amount of recurring revenue and certainly as the business is transforming this year with the Basalt transaction. We're going to have 23% of our EBITDA from investment management- extremely high visibility and highly durable and high margin EBITDA coming from those services- low CAPEX as well so, strong cash flow.

EBITDA coming from those services low capex as well so strong cash flow.

and how much of, you know, buyback is embedded.

If we get to a point where our leverage is above two times based on an acquisition or something we know we can quickly delever and then get back into that sort of one to two times range quickly. So, we feel pretty comfortable with our- with all of that.

In there, are you giving any guidance around that?

The olook that you see it for you today does not have any additional buybacks factored in.

The outlook that you see for you today does not have any additional buybacks factored in.

sort of one to two times range quickly. So, we feel pretty comfortable with our

undersod.

with all of that.

Frederic Bastien: Alright.

Jay, I got one for you. Can you comment on the latest acquisition that Colliers' E&D did in the U.S. southwest? How does that kind of fit in the whole strategy? How well diversified you are now in the U.S. and where you might take that business going forward?

Our next question, coming from the line of maximum sure, with National Bank financial UN ice open?

latest acquisition that Colliers' E&D did in the U.S. southwest? How does that kind of fit in the whole strategy? How well diversified you are now in the U.S. and where you might take that business going forward?

Our next question is coming from the line of Maxim Sitshev with National Bank Financial. Your line is open.

the whole strategy? How well diversified you are now in the U.S. and where you might take that business going forward?

hyder moneyning German.

I'm ax.

Just maybe the first question for you, if it's possible, given the fact that we've seen obviously, some multiple compression of the public markets, was wondering if you are seeing any changing by the language from potential sellers as you communicate right now with the targets.

Jay, maybe the first question for you, if it's possible, given the fact that we've seen obviously some multiple compression in the public markets, I was wondering if you are seeing any changing body language from potential sellers as you communicate right now with the target market?

Just briefly.

Fred.

Jay Steward Hennick: Just briefly, Fred, it was- it was an excellent acquisition from our perspective. It fit very nicely into our business. Our current business or pre-acquisition business had a very small and growing platform in Texas, so we needed- we needed to augment that business, which we did, and we're very excited about the new partners that joined the overall- the overall business and- but I would say, we have lots and lots of room in engineering in the U.S. and globally.

our business- our current business or pre-acquisition business.

<unk>.

The acquisition business.

No I don't think so. I think the sellers, the expectation, the expectation of the sellers continues to be higher than they were a year or two ago, for obvious reasons. Assets in the private market are trading materially higher than many public companies, including callersso. I'm not seeing any. I'm not seeing any changes in pricing expectations from sellers.

had a very small and growing platform in Texas, so we needed- we needed to augment that business, which we did, and we're very excited about the new partners that joined the overall- the overall business and- but I would say, we have lots and lots of room in engineering in the U.S. and globally.

No, I don't think so. I think the expectation of the sellers continues to be higher than they were a year or two ago for obvious reasons. Assets in the private market are trading materially higher than many public companies, including Collier's.

business, which we did, and we're very excited about the new partners that joined the overall- the overall business and- but I would say, we have lots and lots of room in engineering in the U.S. and globally.

but I would say, we have lots and lots of room in engineering in the U.S. and globally.

So, I'm not seeing any changes in pricing expectations from sellers.

And as you know, because you cover many engineering firms, we have a global brand. We have extensive client relationships.

Okay that's super helpperfect P very much. And then Christi, I just had a question for you. In terms of non-canash working capital, there was a pretty significant RO in this quarter versus last year. I've just trying to see how we should be thinking about it as the year progresses in terms of some of that unwinding it. A broadity col to the super helpful.

Okay, that's super helpful, thank you very much. And then Christian, I just had a question for you in terms of non-cash working capital. There was a pretty significant draw this quarter versus last year. I'm just trying to see how we should be thinking about it as the year progresses in terms of, you know, some of that unwinding. If you can provide any color to the super helpful.

Both of those things come in very handy, especially when you pursue a partnership philosophy as we do which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned engineering firms.

Yes that's a great question, MAX. There were a couple of things in our working capital. This quarter of no one was a contingent consideration payment that we made, which is on the Harrison street ear out, and 59 line of that showed up as as negative against cash from operations, So that's a nonoperating item in my view. On undergaap, of course, it's shown as an operating item. And then secondly the.

That's a great question, Max. There were a couple of things in our working capital this quarter.

Engineering firm. So this has been.

So this has been our standard fare for our business over 27 years. We understand how to build platforms through great partnerships with great people and we see that this segment is right for the same growth trajectory and we can do it on a global basis.

contingent consideration payment that we made, which is on the Harrison Street earn-out, and $59 million of that showed up as a negative against cash from operations.

right for the same growth trajectory and we can do it on a global basis.

growth trajectory and we can do it on a global basis.

So that's a non-operating item, in my view. Under GAAP, of course, it's shown as an operating item. And then secondly, the

So, lots to do there, but it's still a very small percentage- not very small, but still a small percentage of our global business.

Accounts reivable facility that we have. Sorry, the accounts receivable facility that we have. We drew on it during the quarter and there are some ins and outes on the cash flow statement from that which resulted in the noncash OT change in the accounts receivable being highly negative in the quarter and that's something that is a non recurring item in results in would't capital change be saw?

accounts receivable facility that we have, sorry, the accounts receivable facility that we have, we drew on it during the quarter, and there are some ins and outs on the cash flow statement from that, which resulted in the non-cash change in the accounts receivable being highly negative in the quarter. And that's something that is a non-recurring item and results in that working capital change that you saw.

Frederic Bastien: Great.

From specifically on a regional basis in the U.S.- If I

recall you're in the northeast, southeast and now kind of Texas. Is California, a white space for you?

Multiple speakers: Is California, everything everything- sorry. Sorry go. Go ahead. I'm wondering if California was an opportunity there?

Sorry go.

Go ahead Im wondering if California was an opportunity there.

Jay Steward Hennick: Yeah, and if you have if you have an idea in mind I'll give you my phone number which I know you already have.

For sure. And then in terms of kind of the rest of the year isn T going. ition look close at what we've seen in twotwenty-and one how should we think about it if we were to exclude another Q1?

sure. And then in terms of kind of the rest of the year, is it going to be sort of closer to what we've seen in in 21 or how should we think about it if we were to exclude, you know, the Q1?

I'll give you my phone number which I know you already have.

Frederic Bastien: I do. Alright. Thanks.

Multiple speakers: Thanks. Thanks Frederic.

Yes on a full year basis. We expect to be highly cash flow generative, as we are. Each yearthe the business generates strong operating cash flows and of course, there is some seasonality to that, with the transactional businesses being very strong in the third and fourth quarters for cash flow, and we expect that to be the case again this year.

On a full-year basis, we expect to be highly cash flow generative, as we are each year. The business generates strong operating cash flows and there is some seasonality to that, with the transactional businesses being very strong in the third and fourth quarters for cash flow. We expect that to be the case again this year.

<unk>.

Thanks Robert.

Operator: Our next question comes from the line of <unk> with Goldman Sachs. Your line is open.

<unk> with Goldman Sachs. Your line is open.

Unidentified Analyst: Hi. Good morning. Congratulations on a strong quarter.

Multiple speakers: Could you perhaps- Thanks <unk>.

Unidentified Analyst: Hi. Could you perhaps talk about the driver of higher margin guidance? I mean, I know you alluded to, kind of, you know, getting some operating leverage, but then there is some acquisitions related impact as well, which is obviously working favorably for you.

Okay absolutely. I thinks. So much of psure understood. And then just just one last glorification, Jan much H, did you say that in terms of office leasing, where still 5% below the 2019 peaks? I'm just trying to get the number right. Then maybe any column in terms of when you think we're going to be eglipsing those levels, on potential going higher, or what needs to happen for prerief to see that.

Absolutely, yeah. Thank you so much for sure, understood. And then just one last clarification. Jay, I'm not sure, did you say that in terms of office leasing, we're still 5% below the 2019 peaks? I'm just trying to get the number right, and maybe any call in terms of when you think we're going to be eclipsing, you know, those levels and potentially going higher, or what needs to happen for you to see that? Thanks.

Two if you're getting some.

operating leverage, but then there is some acquisitions related impact as well, which is obviously working favorably for you.

But, is there a way to think about a split, and kind of, you know, what piece and how much is coming from just general leverage in the business?

Kind of.

what piece and how much is coming from just general leverage in the business?

Christian Mayer: Yes for sure, <unk>.

Max that was this past quarter. We were, on a global basis, 5% below Q1 2019 for office leasing.

Max, this past quarter we were on a global basis 5% below Q1 2019 for office leasing.

The operating.

<unk> <unk>.

The operating margin increase is half from organic sources. So you saw in the quarter the Americas business had strong revenues, but also strong margin growth. We expect that to continue through the- through the year across all of our regional businesses.

organic sources. So you saw in the quarter the Americas business had strong revenues, but also a strong margin growth. We expect that to continue.

Look we're. 5% is not a meaningful or material number. We hope to upplliitse those 2019 levels, if not next quarter than the following quarter. I think it's there's positive momentum and positive trajectory for office leasing, and that's something that we're we're certainly watching closely.

Look, 5% is not a meaningful or material number. We hope to eclipse those 2019 levels, you know, if not next quarter, then the following quarter. I think it's, there's positive momentum and positive trajectory for office leasing. And that's something that we're, you know, we're certainly, you know, watching closely.

business had strong revenues, but also a strong margin growth. We expect that to continue.

margin growth. We expect that to continue.

through the through the year across all of our regional businesses.

All of our regional.

Businesses.

From from operating leverage from higher revenue is also from some of the continuing cost management activities that we're undertaking around the company.

some of the continuing cost management activities that we're undertaking around the company.

cost management activities that we're undertaking around the company.

And are you seeing any change on the industrial side of things? I mean, obviously we have tremendous the last couple of years. Just curious about your what you're hearing from the clients right now.

Are you seeing any change on the industrial side of things? Obviously, we've had tremendous in the last couple of years. I'm just curious about what you're hearing from the clients right now.

The other half of the margin increase is from acquisitions and as you know investment management businesses operate at higher margins, so the impact of the Antirion deal, which we just closed on April 1st and the Basalt transaction closing in the second half will- will drive that additional margin expansion on a consolidated basis.

the impact of the Antirion deal, which we just closed on April 1 and the Basalt transaction closing in the second half will what will drive that additional margin expansion on a consolidated basis.

Industrial continues could be very hot, and I think that's the case globally. You're also seeing some, some publicly traded REITs being acquired in that space. So it's. It's a segment that's very hot right now and continues, and I would add to that that we're seeing land sales record levels which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because that additional product on the market.

and the Basalt transaction closing in the second half will what will drive that additional margin expansion on a consolidated basis.

And I think that's the case globally. You're also seeing some publicly traded REITs being acquired in that space. So it's a segment that's very hot right now and continues.

will what will drive that additional margin expansion on a consolidated basis.

Unidentified Analyst: That is great color. Thank you for that. And then for my follow up- so you guys talked about thinking about buyback at this point given how shares of just generally reacted?

And I would add to that that we're seeing land sales at record levels.

about buyback at this point given how shares of just general reacted.

which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

Is there something embedded in guidance that we should think about?

Something embedded in guidance that we should think about.

Is it kind of model- are numbers- you have given that high teens earnings growth today and how much of buyback is embedded in there? Are you giving any guidance around that?

- you have given that high teens earnings growth toda and how much buyback is embedded in there? Are you giving any guidance around that?

and how much buyback is embedded in there? Are you giving any guidance around that?

buyback is embedded in there? Are you giving any guidance around that?

Okay the exs one poweror. Thank you so much for thats for me.

in there? Are you giving any guidance around that?

Thanks.

Hi.

Christian Mayer: The outlook that you see in front of you today does not have any additional buybacks factored in.

I'm sorry over the quick questions at this time. I would now like to turn the call back over to MR Hanning for any closing remarks.

I'm sorry for the quick questions at this time. I would now like to turn the call back over to Mr. Hennig for any closing remarks.

Unidentified Analyst: Understood.

Okay Thank you very much operator, and thanks everyone for participating in this quarter's call and we look forward to doing it again next quarter. Thanks for joining us.

Okay, thank you very much, operator, and thanks, everyone, for participating in this quarter's call, and we look forward to doing it again next quarter. Thanks for joining us.

Operator: And our next question coming from the line of Maxim Sytchev with National Bank Financial. Your line is open.

Ladies and gentlemen who conus the conference call. Thank you for your participation and have a nice day.

Maxim Sytchev: Hi. Good morning, gentlemen.

Ladies and gentlemen, this concludes the conference call. Thank you for your participation and have a

Christian Mayer: Hi, Max.

Maxim Sytchev: Jay, maybe first question for you if it's possible?

Given the fact that we've seen obviously some multiple compression of the public markets- was wondering if you are seeing any changing body language potential sellers as you communicate right now with the targets? Thanks.

The the.

changing body language potential sellers as you communicate right now with the targets? Thanks.

The.

as you communicate right now with the targets? Thanks.

Jay Steward Hennick: No, I don't think so. I think the sellers'- the expectation- the expectation of the sellers continues to be higher than they were a year or two ago for obvious reasons.

- the expectation of the sellers continues to be higher than they were a year or two ago for obvious reasons.

higher than they were a year or two ago for obvious reasons.

Assets in the private market are trading materially higher than many public companies, including Colliers, so I'm not seeing any- I'm not seeing any changes in pricing expectations from sellers.

many public companies, including Colliers, so I'm not seeing any- I'm not seeing any changes in pricing expectations from sellers.

so I'm not seeing any- I'm not seeing any changes in pricing expectations from sellers.

in pricing expectations from sellers.

Maxim Sytchev: Okay. That's super helpful. Thank you very much. And then Christian, I just had a question for you in terms of non-cash working capital.

There was a pretty significant <unk> this quarter versus last year. I'm just trying to see how we should be thinking about it as the year progresses in terms of some of that unwinding.

<unk> this quarter versus last year. I'm just trying to see how we should be thinking about it as the year progresses in terms of some of that unwinding.

I think anything you can comment would be super helpful.

Christian Mayer: Yes, that's a great question Max.

There were a couple of things in our working capital this quarter of note.

One was a contingent consideration payment that we made which is on the Harrison Street earn out and <unk> million of that showed up as a negative against cash from operations.

which is on the Harrison Street earn out and <unk> million of that showed up as a negative against cash from operations.

The.

Negative against.

So, that's a non-operating item in my view under GAAP. It first it's shown as an operating item.

And then secondly, the accounts receivable facility that we have- sorry, the accounts receivable facility that we have, we drew on it during the quarter and there are some ins and outs on the cash flow statement from that which resulted in the non-cash change in accounts receivable being highly negative in the quarter and that's something that is a non recurring item and results in that that working capital change that you saw.

<unk>.

accounts receivable facility that we have- sorry, the accounts receivable facility that we have, we drew on it during the quarter and there are some ins and outs on the cash flow statement from that which resulted in the non-cash change in accounts receivable being highly negative in the quarter and that's something that is a non recurring item.

we drew on it during the quarter and there are some ins and outs on the cash flow statement from that which resulted in the non-cash change in accounts receivable being highly negative in the quarter and that's something that is a non recurring item.

from that which resulted in the non-cash change in accounts receivable being highly negative in the quarter and that's something that is a non recurring item.

change in accounts receivable being highly negative in the quarter and that's something that is a non recurring item.

And.

that's something that is a non recurring item.

a non recurring item.

And results in that that working capital change that you saw.

Maxim Sytchev: Sure and then in terms of kind of the rest of the year, is it going to look closer to what we've seen in 2021 or how should we think about it, you know, if we were to exclude the Q1?

100, <unk>, how should we think about it if we were to exclude the Q1.

Christian Mayer: Yeah on a full year basis, we expect to be highly cash flow generative - as we are each year.

As we are each year.

Yes.

The business generates strong operating cash flows and of course, there is some seasonality to that with the transactional businesses being very strong in the third and fourth quarters for cash flow and we expect that to be the case again this year.

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Maxim Sytchev: Okay, absolutely, yes. Thank you so much for <unk> and then just- just one

last clarification. Jay, I'm not sure did you say that in terms of office leasing we're still 5% below the 2019 peaks? I'm just trying to get the number right and then maybe any color in terms of when you think we're going to be eclipsing those levels and potentially going higher or what needs to happen before we see that? Thanks.

eclipsing those levels and potentially going higher or what needs to happen before we see that? Thanks.

or what needs to happen before we see that? Thanks.

Jay Steward Hennick: Max that was- this past quarter, we were on a global basis- 5% below Q1 2019 for office leasing.

this past quarter, we were on a global basis- 5% below Q1 2019 for office leasing.

<unk> leasing.

But we're- 5% is not a meaningful or material number.

We hope to eclipse those 2019 levels, you know? If not next quarter than the following quarter.

2019 levels.

If not next quarter then the following quarter.

I think it's- there's positive momentum and positive trajectory for office leasing and that's something that we're certainly watching closely.

trajectory for office leasing and that's something that we're certainly watching closely.

We're certainly.

certainly watching closely.

Maxim Sytchev: And are you seeing any change on the industrial side of things? I mean, obviously what had tremendous the last couple of years. Just curious about your- what's your- what are you hearing from your clients right now?

tremendous the last couple of years. Just curious about your- what's your- what are you hearing from your clients right now?

what's your- what are you hearing from your clients right now?

Multiple speakers: Industrial continues to be very hot and I think that's the case globally. You're also seeing some publicly traded reits being acquired in that space. So that's a segment that is very hot right now and continues- and I would add to that that we're seeing land sales at record levels which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

The the the.

And I think Thats the case globally Youre also seeing some.

publicly traded reits being acquired in that space. So that's a segment that is very hot right now and continues- and I would add to that that we're seeing land sales at record levels which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

and I would add to that that we're seeing land sales at record levels which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because of that additional product on the market.

because of that additional product on the market.

Maxim Sytchev: Okay. That's excellent color. Thanks so much gentlemen.

Thank you so much Tom.

Christian Mayer: Thanks.

Operator: And I'm showing no further questions at this time. I would now like to turn the call back over to Mr. Hennick for any closing remarks.

Jay Steward Hennick: Okay. Thank you very much operator, and thanks everyone for participating in this quarter's call and we look forward to doing it again next quarter.

Thanks for joining us.

Operator: Ladies and gentlemen, this concludes the conference call. Thank you for your participation and have a nice day.

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Welcome to the college international first quarter investors conference call.

Welcome to the College International First Quarter Investors Conference Call.

today'sco is being recorded.

Little councsel request us to advise that the discussion 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.

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

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

Additional informmation concerning factors that could cause actual results to materially differ from thosel in the forward-lookingstatements.

Additional information concerning factors that could cause actual results to materially differ from those in the

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Sure.

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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 10 F, as filed with.

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 10-F as filed with the U.S.

Yes.

Okay.

Yes.

S Securities and Exchange Commission.

As a reminder, today's call is being recorded. Today, may third 2020 -two.

As a reminder, today's call is being recorded today, May 3, 2020.

Okay.

And at this time, for opening remarks and introductions. I would like to turn the call over to the overchair and Chief Executive office.

And at this time, for opening remarks and introductions, I would like to turn the call over to the Glover Chairman and Chief Executive Officer, Mr. J. Henry.

Mr Jay hennock, Please go ahead, sir.

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Thank you, operator. Good morning and thanks for joining us for the first quarter conference call. I'm Jay hennock, Chairman and Chief Executive Officer the company and with me today, as Christian mayor, our Chief Financial Officer.

Thank you, Operator. Good morning and thanks for joining us for the first quarter conference call. I'm Jay Hennig, Chairman and Chief Executive Officer of the company, and with me today is Christian Mayer, our Chief Financial Officer.

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As always, this conference call is being webcast live and is available in the Investor Relations section of our website. A presentation slide deck is also available to accompany this call.

As always this conference call is being webcast live and is available in the investor relations section of our website. A presentation slide deck is also available to accompany this call.

Okay.

Today Colliers delivered very strong first quarter results across all service lines, building on the momentum from last year.

Today, Collier's delivered very strong first quarter results across all service lines, building on the momentum from last year.

Okay.

Revenue EBITDA and earnings per share were all up sharply and we were pleased to see that assets under management in our investment management segment was also up considerably.

Revenue EBITDA and earnings per share were all up sharply, and we were pleased to see that assets under management in our investment management segment was also up considerably.

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Last week we announced the promotion of Chris mclarenan to Chief Executive Officer of our real estate services global business. Over the past 12 years as the leader of our emeabit business, Chris delivered some very exceptional results.

Last week we announced the promotion of Chris McLernan to Chief Executive Officer of our Real Estate Services global business. Over the past 12 years as the leader of our EMEA business, Chris delivered some very exceptional results.

Okay.

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In his new role, Chris will oversee our capital markets, leasing and outsourcing and advisory businesses globally, reporting to me. Having him on board will provide us with a bench strength we need to successfully pursue our ambitious 2025 growth plan.

In his new role, Chris will oversee our capital markets, leasing and outsourcing and advisory businesses globally, reporting to me. Having him on board will provide us with the bench strength we need to successfully pursue our ambitious 2025 growth plan.

Okay.

Yes.

Okay.

During the quarter, we were also busy on the acquisition front. We added our affiliate operations in Cincinnati and Cleveland, we completed the previously announced acquisition of our affiliate in Italy and Collier's engineering and design expanded its operations in the? U's Southwest and just after quarter end, we completed the acquisition of onterion, which is currently being integrated into our global investors platform in Europe .

During the quarter, we were also busy on the acquisition front.

We added our affiliate operations in Cincinnati and Cleveland. We completed the previously announced acquisition of our affiliate in Italy. And Collier's Engineering and Design expanded its operations in the US Southwest. And just after quarter end, we completed the acquisition of Onterion, which is currently being integrated into our global investors platform in Europe .

Okay.

Once we complete the new partnership with BAs salt infrastructure partners, our IM business will represent almost 25% of our consolidated EBITDA.

Once we complete the new partnership with Basalt Infrastructure Partners, our IM business will represent almost 25% of our consolidated EBITDA.

Thank you.

Yes.

Okay.

Yes.

The this March, an important milestone in our service line. Diversification increases our recurring revenue streams and represents another step in the transformation of Colliers into a very different kind of company.

This marks an important milestone in our service line diversification, increases our recurring revenue streams, and represents another step in the transformation of Collier's into a very different kind of company.

Okay.

Yes.

In the future, we expect our IM segment to represent an even greater proportion of our overall EBITDA.

Thank you.

Yes.

So far this year, we completed or announced acquisitions totally more than $4 million, and our pipeline remains strong. If we're successful, 2022 should be a record year of capital allocation for call years.

So far this year, we completed or announced acquisitions totaling more than $400 million, and our pipeline remains strong. If we're successful, 2022 should be a record year of capital allocation for Collier.

Okay.

The bottom line of all of this is thisthe leadership team of Colliers has a proven 27 -year track record of creating significant value for shareholders.

The bottom line of all of this is this, the leadership team of Colliers has a proven 27-year track record of creating significant value for shareholders.

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The Collier's business model is balanced, highly recurring and diversified and generates a lot of free cash flow that we reinvest in our growth.

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All of these characteristics, together with our unique enterprising culture, growth mindset and significant insight ownership, position us very well to continue delivering superior returns for our shareholders.

Yes.

Okay.

Yes.

Okay.

And let me be clear on one other thing.

At its core. Colliers is an extremely well-managed service business.

At its core, Collier's is an extremely well-managed service business.

Because of this, we're able to weather the various macro events that might impact others, like inflation, interest rates pandemic, regional conflicts and supply chains, to name a few. Our results over the past number of years have demonstrated this in space.

Okay.

Yes.

Thanks.

Yes.

With that said, I'll now turn things over to Christian: Christian. Thank you, Jay. As announced this morning, colars reported strong first quarter financial results.

With that said, I'll now turn things over to Christian. Christian? Thank you, Jay. As announced this morning, Collier's reported strong first quarter financial results.

My comments follow with flow of the slides posted on the Investor Relations section of pers com to accompany this call.

My comments follow the flow of the slides posted on the investor relations section of colliers.com to accompany this call.

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

Yes.

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

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All references to revenue growth are expressed in local currency.

Welcome to the colors International first quarter investors conference call.

All references to revenue growth are expressed in local currency.

First quarter revenues were one billion, up 31% relative to the prior year period, with revenues up strongly across all service lines.

First quarter revenues were $1 billion, up 31% relative to the prior year period, with revenues up strongly across all service lines.

Today's call is being recorded.

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.

Growth for the quarter was primarily internally generated.

Growth of the corridor was primarily internally generated.

<unk> results may be materially different from any future results performance or achievements comes data and no forward looking statements additional information.

Compared to 2019 prepandemic levels, capital markets revenues wereup 52% and leasing was up 27%, with office leasing recovering to within 5% of Q1 and 19 levels.

Compared to 2019 pre-pandemic levels, capital markets revenues were up 52%, and leasing was up 27%, with office leasing recovering to within 5% of Q1 2019 levels.

Formation concerning factors that could cause actual results to materially differ from dose 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 10 S and style.

Q1 22 adjusted EBITDA was one hundred and twenty-one million, up 33% from one year ago, with margins at twelve point 1%, up slightly from 12% in the prior year quarter, driven by the Americas region.

Q122 adjusted EBITDA was $121 million, up 33% from one year ago, with margins at 12.1%, up slightly from 11.9% in the prior year quarter, driven by the Americas region.

With the U S Securities and Exchange Commission.

As a reminder, today's call is being recorded today may three 2022.

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

First quarter, Americas revenues were 642 illion, up 35% over the prior year.

First quarter, America's revenues were $642 million, up 35% over the prior year.

Pacing activity was up 41%, led by industrial.

Leasing activity was up 41% led by industrial.

Thank you operator, good morning, and thanks for joining us for the first quarter Conference call I'm, Jay Hennick, Chairman and Chief Executive Officer of the company and with me today is Christian Mayer, our Chief Financial Officer.

catbal Mark's activity was up 35% and was led by industrial land and multifamily aspect classes.

Capital Marks activity was up 35% and was led by industrial, land, and multi-family asset classes.

Obvious leasing activity was within 2% of Q1. two thousand and nineteen prepandemic levels.

Office leasing activity was within 2% of Q1 2019 pre-pandemic levels.

As always this conference call is being webcast live and is available in the Investor Relations section of our website.

Outsourcing and advisory revenues were up 31%, driven by engineering and design, including recent acquisitions, as well as valuation and loan servicing.

Outsourcing and advisory revenues were up 31% driven by engineering and design, including recent acquisitions, as well as valuation and loan servicing.

<unk> slide deck is also available to accompany this call.

Today Colliers delivered very strong first quarter results across all service lines building on the momentum from last year.

Adjusted EBITDA was 81 million, up 43% from last year, with the margin up 60 basis points to 13% on favorable operating leverage from higher revenues in all service lines.

Adjusted EBITDA was $81 million, up 43% from last year, with a margin up 60 basis points to 12.6% on favorable operating leverage from higher revenues in all service lines.

Revenue EBITDA and earnings per share were all up sharply.

And we were pleased to see that assets under management in our investment management segment was also up considerably.

First quarter EMEA revenues were 153 million, up 30% from one year ago, with robust growth across all service lines led by outsourcing and advisory in capital markets.

First quarter EMEA revenues were $153 million, up 30% from one year ago, with robust growth across all service lines, led by outsourcing and advisory in capital markets.

Last week, we announced the promotion of Chris Mclaren into Chief Executive Officer of our real estate services global business over the past 12 years as the leader of our EMEA business.

Adjusted EBITDA was five million up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins, and other services.

adjusted EBITDA was $5 million, up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins than other services.

Chris delivered some very exceptional results.

In his new role, Chris will oversee our capital markets leasing and outsourcing and advisory businesses globally reporting to me.

First quarter, Asia Pacific revenues were 119 landillion, down 3%, driven by COVID-19 lockdowns in several Asian markets, as well as a tough prior year comparison which benefited from a number of high-margin capital markets transactions.

First quarter Asia-Pacific revenues were $119 million, down 3% driven by COVID-19 lockdowns in several Asian markets, as well as a tough prior year comparison, which benefited from a number of high margin capital markets transactions.

Having him on board will provide us with the bench strength, we need to successfully pursue our ambitious 2025 growth plan.

During the quarter. We were also busy on the acquisition front, we added our affiliate operations in Cincinnati and Cleveland, We completed the previously announced acquisition of our affiliates.

Adjusted EBITDA was one million, down from 15 million in the prior year quarter.

Adjusted EBITDA was $10 million, down from $15 million in the prior year quarter.

Investment management revenueesis reighty-six million, up 94% versus the prior year period.

Investment management revenues were $86 million, up 94% versus the prior year period.

After eliminating the impact of pass-through, carried interest revenues were up 38%, driven by management fee growth.

In Italy, and Colliers engineering and design expanded its operations in the U S southwest and just after quarter end, we completed the acquisition of Antirion, which is currently being integrated into our global investors platform in Europe .

After eliminating the impact of pass-through carried interest, revenues were up 38%, driven by management fee growth.

Assets under management were 52 billion at quarter, end up 26% from one year ago.

Assets under management were $52 billion at quarter end, up 26% from one year ago.

It justed, EBITDA for the quarter was 27 million, up 51% versus the comparative quarter on solid flow-through from incremental management fee revenue.

The Dossier-Bidot for the quarter was $27 million, up 51% versus the comparative quarter on solid flow-through from incremental management fee revenue.

Once we complete the new partnership with the Salt infrastructure partners, our iam business will represent almost 25% of our consolidated EBITDA.

Our financial leverage ratio, as defined as net debt to pro forarma adjusted EBITDA, was zero, zero point nine X as of March thirty-first twent, y and twenty-two.

Our financial leverage ratio, as defined as net debt to pro forma adjusted EBITDA, was 0.9 times as of March 31st, 2022.

This marks an important milestone in our service line diversification.

Increases our recurring revenue streams and represents another step in the transformation of colliers into a very different kind of company.

Most of our debt is locked in at attractive fixed interest rates averaging less than 3%.

Most of our debt is locked in at attractive fixed interest rates, averaging less than 3%.

During the first quarter we invested in acquisitions and we utilized our normal course issuer bid for the first time as a public company.

During the first quarter, we invested in acquisitions and we utilized our normal course issuer bid the first time as a public company.

And in the future, we expect our OEM segment to represent an even greater proportion of our overall EBITDA.

We repurchased just under one million shares in March and April .

We repurchased just under 1 million shares in March and April .

So far this year, we've completed or announced acquisitions totaling more than $400 million and our pipeline remains strong. If we're successful 2022 should be a record year of capital allocation for colliers.

Given our socks current trading price, our low leverage.

Given our stock's current trading price, our low leverage

Future growth prospects and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

future growth prospects, and significant financial capacity, we believe it is prudent to make modest share repurchases at this time.

With our strong balance sheet, disciplined capital deployment and solid operating cash flow, we continue to be very well capitalized for future growth.

With our strong balance sheet, disciplined capital deployment, and solid operating cash flow, we continue to be very well capitalized for future growth.

The bottom line of all of this is this the leadership team of Colliers has a proven 27 year track record of creating significant value for shareholders.

We are increasing our outlook for the full year 2022 to reflect our strong Q1 results as well as recent acquisitions.

We are increasing our outlook for the full year 2022 to reflect our strong Q1 results, as well as recent acquisitions.

The Colliers business model is balanced highly recurring and diversified and generates a lot of free cash flow that we reinvest in our growth.

The outlook is subject to risks and uncertainties, as low outlin in the accompanying slides.

The outlook is subject to risks and uncertainties, as outlined in the accompanying slides.

All of these characteristics together with our unique enterprising culture growth mindset and significant inside ownership position us very well to continue delivering superior returns for our shareholders.

Now now expect low double-digit revenue growth, consisting of high single-digit internal growth and the balance from previously completed and recently announced acquisitions.

Now expect low double-digit revenue growth consisting of high single-digit internal growth and the balance from previously completed and recently announced acquisitions.

We expect our adjusted EBITDA margin to improve 40 to 80 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 80 basis points relative to 2021 from a combination of internal operating leverage and higher margin activity.

And let me be clear on one other thing.

At its core Colliers is an extremely well managed service business because of this we're able to weather the various macro events that might impact others like inflation interest rates and reach.

Finally our adjusted earnings per share are expected to grow at a high teens percentage rate for 2020 -two.

Finally, our adjusted earnings per share are expected to grow at a high teens percentage rate for 2022.

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

Regional conflicts and supply chains to name a few.

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

Our results over the past number of years have demonstrated this in spades.

In kles and johlemenman. If like question at this time, please press your start the one key on your touchdown celephone.

Ladies and gentlemen, if you would like to ask a question at this time, please press the star then the one key on your touch-tone telephone.

With that said I'll now turn things over to Christian Christian.

Thank you Jake as announced this morning, <unk> reported strong first quarter financial results.

Please stand by while we compiled to Cana restaurant.

Now first question coming from the line-ups stepheven, Sheldon with willin Blair. heilan is ldpan.

First question coming from the line-up, Steven Sheldon with William Blair.

My comments follow the flow of the slides posted on the Investor Relations section of Colliers Dot com to accompany this call.

okgood morning guys and congrat on the throne results. First thing want ask about just the APAC, the Asia Pacific regioncan you talk about the trend you saw there throughout the quarter? The weakness related to COVID-19 blockdown get more pronounced. The quarter went longer. Did you start to see any signs of?

Hey, good morning, guys, and congrats on the strong results. First thing I wanted to ask about is just the APAC, the Asia-Pacific region. Can you talk about the trends you saw there throughout the quarter? Did the weakness related to COVID lockdowns get more pronounced as the quarter went along, or did you start to see any signs?

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

All references to revenue growth are expressed in local currency.

First quarter revenues were $1 billion up 31% relative to the prior year period with revenues up strongly across all service lines.

Stabilization just would be good. I guess get some more commentary there as you think about the katthat's for the rest of the year.

stabilization just would be good to, I guess, get some more commentary there as we think about the cadence for the rest of the year.

Growth for the quarter was primarily internally generated.

I think you're talking about Asia Pacific as opposed to EMEA, but correct me if I'm wrong. Shoulder sorry sorry, a Pacific TI.

I think you're talking about Asia-Pacific as opposed to EMEA, but correct me if I'm wrong, Sheldon. Sorry. Sorry.

Compared to 2019 pre pandemic levels capital markets revenues were up 52% and leasing was up 27% with office leasing recovering to within 5% of Q1 19 levels.

Yes Stephen the, you know the, the lockdown, the situation in Q1 was really the main driver of of whatum, of the the revenue there, and certainly you know we've been in lockdowns before. Lockdowns cause delays in the transactional side of the business. Of course the recurring side business continues to operate. You know the property management and valuations and that sort of thing.

Yes, Stephen. The lockdown situation in Q1 was really the main driver of the revenue there. We've been in lockdowns before. Lockdowns cause delays in the transactional side of the business.

Q1, 'twenty two adjusted EBITDA was $121 million.

33% from one year ago with margins at 12, 1% up slightly from 11, 9% in the prior year quarter, driven by the Americas region.

First quarter Americas revenues were $642 million up 35% over the prior year.

Of course, the recurring side of business continues to operate, the property management and valuations and that sort of thing.

Leasing activity was up 41% led by industrial.

Revenues were impacted Q1 from the lockdowns. We expect that will ease as the year progresses.

Revenues were impacted in Q1 from the lockdowns. We expect that will ease as the year progresses.

Capital markets activity was up 35% and was led by industrial land and multifamily asset classes.

And we think the revenue growth there will be stronger in the future Qu.

and we think the revenue growth there will be stronger in the end.

Ox leasing activity was within 2% of Q1 2019 pre pandemic levels.

Now as you know, in China, for example, there's three cases of COVID-19 and they've closed the whole country down. So, notwithstanding that, we still generated pretty respectable revenues and earnings in that marketplace. But there are other markets in Asia that are going through similar lockdown, So it is slowing us down a bit but, as you can see from the results, not materially So.

Now, as you know, in China, for example, there's three cases of COVID and they've closed the whole country down. So notwithstanding that, we still generated pretty respectable revenues and earnings in that marketplace. But there are other markets in Asia that are going through similar lockdowns. So it is slowing us down a bit. But as you can see from the results, not materially.

Outsourcing and advisory revenues were up 31% driven by engineering and design, including recent acquisitions as well as valuation.

<unk> loan servicing.

Adjusted EBITDA was $81 million up 43% from last year with the margin up 60 basis points to 12, 6% on favorable operating leverage from higher revenues in all service lines.

Yes got it. That's helpful. And then just wanted to ask about the AUM growth in investment management. I mean it's been really impressive and consistently strong. So what's working so well on that side in terms of?

First quarter EMEA revenues were 153 million up 30% from one year ago with robust growth across all service lines led by outsourcing and advisory and capital markets.

Capital raising. And what about Collier's broad-based capabilities? I guess they're anything to call out that's helping to support that growth.

Capital raising and what about Collier's broad-based capabilities? I guess is there anything to call out that's helping us support that?

Adjusted EBITDA was $5 million up 23% on higher revenues, although margin was impacted by revenue mix from increased project management activity, which runs at lower margins and other services.

Well I think. I think it all starts with the exceptional platforms that we have already as part of our investment management platform: Harrison street callliers, global investors and soon to be bassaalult. These are allle exceptional alternate asset a platforms, their managed by extremely seasoned professionals that own a direct equity stake in our bill, our business and Stephen, as you know, over many years that's been a core of the way call ERS operates. Our role is to help them accelerate their growth. There's a various ways for us to have done that. You see, in the case of Harrison street, which is, you know, four and a half years in history now and the company as tripleed that size, it's triple that evenve, and it's just starting.

Well I think it all starts with the exceptional platforms that we have already as part of our investment management platform, Harrison Street, Collier's Global Investors and soon to be Basalt.

First quarter Asia Pacific revenues were $119 million down, 3% driven by COVID-19, Lockdowns in several Asian markets as well as a tough prior year comparison, which benefited from a number of high margin capital markets transactions.

These are all exceptional alternate asset.

platforms. They're managed by extremely seasoned professionals that own a direct equity stake in our business.

Adjusted EBITDA was $10 million down from $15 million in the prior year quarter.

And Stephen, as you know, over many years, that's been a core of the way Colliers operates.

Investment management revenues were 86 million up 94% versus the prior year period.

After eliminating the impact of pass through carried interest revenues were up 38% driven by management fee growth.

Assets under management were 52 billion at quarter end up 26% from one year ago.

Adjusted EBITDA for the quarter was $27 million up 51% versus the comparative quarter on solid flow through from incremental management fee revenue.

So there's a variety of ways in which we help them do that.

But I would say that, by and large, starting with exceptional professionals that have a significant equity stake in the business is really the backbone of the success of Harrison Street.

Our financial leverage ratio as defined as net debt to pro forma adjusted EBITDA was 0.9 times as of March 31 2022.

And of course, Basalt has many, many of the same characteristics. So we're very excited about this aspect of our business. We think it's substantially hidden within Collier's, and we think our strategy in that area is second to none.

Most of our debt is locked in at attractive fixed interest rates, averaging less than 3%.

During the first quarter, we invested in acquisitions and we utilized our normal course issuer bid the first time as a public company.

We repurchased just under 1 million shares in March and April .

Good he thanks for taking my questions and congrapt again on the results.

Given our stocks current trading price of our low leverage future growth prospects and significant financial capacity. We believe it is prudent to make modest share repurchases at this time.

Good to hear. Thanks for taking my questions and congrats again on the results. Thanks, Stephen.

Thanks even.

andour next question, coming from the lineup George, the magmoscotia pank UL on is open.

Yes morning I gressment on the results. J I think you made obvious that J I think you made obvious that you wanted to early investment management segment be on kind of 23% of total EBITDA. I want to ask you how much, but can you maybe give us sense of maybe what specific asset cluses or areas that you want to get bigger out?

With our strong balance sheet disciplined capital deployment and solid operating cash flow, we continue to be very well capitalized for future growth.

Good morning, guys. Congrats on the results. Jay, I think you made it obvious that you wanted to grow the investment management segment beyond 23% of total EBITDA. I won't ask you how much, but can you maybe give us a sense of what specific asset classes or areas you want to get bigger in?

We are increasing our outlook for the full year 2022 to reflect our strong Q1 results as well as recent acquisitions.

The outlook is subject to risks and uncertainties as outlined in the accompanying slides.

You know the percentage? We don't know because it's all a function of strategically acquiring the right businesses in the right way, So it's unlikely we're we're acquirer of 100% of any exceptional investment management platform, but I think that that there is a growing desire amongs entrepreneurally run businesses to join the strategy that we have, and so we're excited about it. You know, the only number that we have offered to the street is that over the course of our five year period our our, our recurring revenue streams should exceed sixty 5%. How much of that will be from our other recurring services or investment management, we don't know, but you'll see a trends. You'll see if transform as we continue to pursue this growth strategy.

You know, the percentage we don't know because it's all a function of strategically acquiring the right businesses in the right way. So, it's unlikely we're an acquirer of 100% of any exceptional investment management platform.

We now expect low double digit revenue growth consisting of high single digit internal growth and the balance from previously completed and recently announced acquisitions.

We expect our adjusted EBITDA margin to improve 40 to 80 basis points relative to 2021 from a combination of internal operating leverage and higher margin acquisition.

Um, but, um, I think that, um,

that there is a growing desire amongst

Finally, our adjusted earnings per share are expected to grow at a high teens percentage rate for 2022.

uh entrepreneurially run businesses to join the strategy that we have and so we're excited about it. You know the only number that we have offered

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

Thank you, ladies and gentlemen, if you like to ask a question at this time. Please press. The Star then the one key on your Touchtone telephone.

Please standby, while we compile the Q&A roster.

No first question coming from the line of Stephen Sheldon with William Blair. Your line is open.

Hey, good morning, guys and congrats on the strong results.

First thing I wanted to ask about just the APAC Asia Pacific region.

Okay should we expect more, I guess, of infrastructure, student housing, senior housing is that kind of the LA we once to stand.

Can you talk about the trends you saw there throughout the quarter.

Okay, should we expect more, I guess, of infrastructure, student housing, senior housing, is that kind of the lane we want to stay in?

Weakness related to Covid lockdown get more more pronounced as the quarter went along or did you start to see any signs of stabilization just would be good to I guess get some more commentary there as we think about the cadence for the rest of the year.

Well that's for sure, Harrison street. They dominate in that area. In the U's they've established over the past year their first open-ended fund in Canada. They have an extremely successful and growing business in Europe , but it's all. It's all focused on infrastructure students seniors, other alternative asset classes that are where you can generate better returns for investors. So that's very much a core of how we see our overall platform in the years to come.

Well, that's for sure Harrison Street, they dominate in that area in the U.S.

They've established over the past year their first open-ended fund in Canada. They have an extremely successful and growing business in Europe .

I think youre talking about Asia Pacific as opposed to EMEA, but.

Correct me, if I'm wrong Sheldon.

Sorry, sorry, Yes, Asia Pacific Tim Thanks.

But it's all focused on infrastructure, students, seniors, other alternative asset classes.

Yes.

Yes, Steven.

The lockdown situation in Q1 was really the main driver.

that are, you know, where you can generate better returns.

Sure.

The revenue.

for investors. So, you know, that's very much a core of how we see our overall platform in the years to come.

There certainly.

We've been in Lockdowns before lock.

Lockdowns caused delays in the transactional side of the business.

Okay and you guys have been active on the nib, as we referenced for the first time as a public company. Operating performance has been strong and the shares haven't really reacted accordingly. Just wondering: is buying our own stock here maybe more attractive than M the a? Would you consider maybe a more meaningful return of capital to shareholders?

Okay. You guys have been active on the NTIB as a reference for the first time as a public company. Operating performance has been strong. The shares haven't really reacted accordingly. I'm just wondering, is buying our own stock here maybe more attractive than M&A? Would you consider maybe a more meaningful return of capital to shareholders?

Of course, the recurring side business continues to operate.

Property management, and valuations and that sort of thing.

Revenues were impacted in Q1 from the Lockdowns, we expect that will ease as the year progresses.

<unk>.

Well something that we evaluate every day George, our every hour. And you know, I think first and foremost we are interested in growing our business organically and through acquisition, But when we see the market not appreciating the value of our shares, then that caused us to take consideration of that and in April and in March we acted and we may continue to act in the future on that. we'will decide that you on a day by day basis.

We think the revenue growth there will be.

Well, I mean, it's something that we evaluate every day, George, every hour. And, you know, I think first and foremost, we are interested in growing our business organically and through acquisition. But when we see the market not appreciating the value of our shares.

Stronger in the future.

No as you know in China. For example, there are three cases of Covid and they've closed the whole country down so notwithstanding.

Standing that we still generated pretty respectable revenues and earnings in that marketplace, but there are other markets in Asia that are going through similar lockdowns. So it is slowing us down a bit but as you can see from the results not materially so.

then that causes us to take consideration of that and in April and in March we acted and we may continue to act in the future on that and we'll decide that on a day-by-day basis.

Yeah got it that's helpful.

And then just wanted to ask about the AUM growth and investment management, it's been really impressive and consistently strong so what's working so well on that side in terms of <unk>.

Okay I just one last month- I me on in general- occupier services was a big strategy of us, as we ly spoke about it quite a bit before the pandemic. Can you maybe just give us an update in terms of where we are now?

Capital raising and what about Colliers broad based capabilities I guess is there anything to call out that's helping to support that growth.

And we continue to be active in not global occupier services and we have a recruiting plan to grow that business meaningfully over the next five years as part of our enterprise 25 plan. I think we're on track with that and you see it, and reflected in the results.

We continue to be active in global occupier services and we have a recruiting plan to grow that business meaningfully over the next five years as part of our Enterprise 25 plan. I think we're on track with that and you see it reflected in the results.

Well I think I think it all starts with the exceptional platforms that we have already as part of our investment management platform Harrison Street, Colliers global investors and soon to be basalt.

These are all exceptional alternative asset.

Our platforms. They are managed by extremely seasoned professionals that own a direct equity stake in <unk>.

Okay I LL do that. Thank, Thank.

Now next question, coming from the line of Stephen mcclell: with bml, capital you want is open.

Our next question coming from the line of Stephen McClure with BMO Capital. Your line is open.

Our business.

And Stephen as you know over many years, that's been a core of the way Colliers operates our role is to help them accelerate their growth. There is various ways for us to have done that you see in the case of Harrison Street, which is.

Great Thank you. Good morning guys.

S ate.

I just wanted to ask about the outlook of the revised guidance and just get a little bit of sense as to sort of what factors you're considering in the 2020 outlook with respect to maybe neararer-term visibility and potentially longer-term visibility as you get to the back half of the year.

Four and a half years in history now and.

The company has tripled its size, it's tripled its EBITDA and it's just starting.

So.

There is a variety of ways in which we help them do that but I would say that by and large starting with exceptional professionals that have a significant equity stake in the business.

xve. We increased our guidance for the year in part on the strong result in Q1 and also our good visibility into Q2 transaction activity. We also have very good visibility on the recurring side of our business, which is half the revenue, and that gives us confidence in our outlook. Now, as it relates to the back half of the year in transactions, we did not simply increase the guidance for that. There are obviously some macro factors that play here- situation with the conflict in Eastern Europe , interest rates and all that stuff- But by a large we are, as as I mentioned, increasing our outlook for the reasons outline.

Yeah, thanks Steve. We increased our guidance for the year in part on the strong result in Q1 and also our

Is the is really the backbone of the success of Harrison Street.

good visibility into Q2 transaction activity.

And of course the salt.

We also have very good visibility on the recurring side of our business, which is half the revenue, and that gives us confidence in our outlook.

<unk> has many many of the same characteristics. So we're we're very excited about this aspect of our business, we think it substantially.

Hidden within Colliers, and we think our strategy in that area is second to none.

Now, as it relates to the back half of the year and transactions, we did not simply increase the guidance for that. There are obviously some macro factors at play here, the situation with the conflict in Eastern Europe .

Good to hear thanks for taking my questions and congrats again on the results.

Thanks Steven.

interest rates and all that stuff. But, you know, by and large, you know, we are, as I mentioned, increasing our outlook for the reasons outlined.

And our next question coming from the line of George <unk> with Scotiabank. Your line is open.

Hey, good morning, guys congrats on the results.

Jay I think you made it obvious that.

Great great, Thank you. And then I just wanted to.

Do you think you've made it obvious that you wanted to.

Great, great. Thank you. And then I just wanted to, with respect to Harrison Street and the investment management business, you know, the strong fundraising momentum that you saw exiting Q4 and now coming into Q1, what kind of visibility do you have in terms of the fundraising momentum through the balance of the year?

So the investment management segment beyond kind of 23% of total EBITDA I want to ask you how much but can you maybe give us a sense of maybe what specific asset classes or areas that you wanted to get bigger in.

With respect to Harrison street and the investment management business, the strong fundraising momentum that you saw- AC Q4 and now coming into q1- what kind of visibility do you have in terms of the fundraising momentum through the balance of the year?

No.

The percentage, we don't know because it's all a function of strategically acquiring the right businesses in the right way so it's unlikely.

Well we have very strong visibility Q this particular year where, in the market, with Christian four six 6, six funds, all funds are increasing in size from previous, from previous funds as, as you probably no- 80 to 90% of the Investors roll into the subsequent fund, and so we're quite excited about the prospects of fundraising in in the current year. And the saalt is also actively fundraising, as is and ter. So it'll be very interesting to see how we do over the next couple of quarters. But are internal expectations are significantly better than last year, which itself was a record year for us.

Well, we have a very strong visibility. This particular year, we're in the market with Christian 4, 6, 6,

We're an acquirer of a 100% of any exceptional.

Investment management platform.

Six funds, all funds are increasing in size from previous funds.

But I.

I think that.

That there is a.

As you probably know, 80 to 90 percent of the investors roll into the subsequent fund.

Growing desire amongst.

Entrepreneurial run businesses to join the strategy that we have and so we're excited about it.

And so we're quite excited about the prospects of fundraising in the current year. And Basalt is also actively fundraising, as is Anterion. So it'll be very interesting to see how we do over the next couple of quarters.

The only number that we have offered.

To the street is that over the course of our five year period.

R R.

Our recurring revenue streams should exceed 65% how much of that will be from our other recurring services or investment management, we don't know.

But our internal expectations are significantly better than last year, which itself was a record year for us.

But youll see a trends youll see at <unk>.

Transform as we continue to pursue this growth strategy.

That's the fantastic and maybe it's finally.

That's fantastic and then and then maybe just finally

Okay. So should we expect more I guess of infrastructure at student housing.

With respect to the macro backdrop and the potential for rising rates? Are you beginning to see any of those conversations or any of those factors beginning to creep into conversations about transaction activity, or is that something that is just kind of on hold for now and people are waiting to see how things unfold?

Senior housing is that kind of believe me once Dan.

<unk>.

Well that's for sure Harrison Street Theyre dominate in that area.

In the U S. They've established over the past year. Their first open ended fund in Canada. They have an extremely successful and growing business in in.

Well you know I tried to make the point in my in my prepared remarks. You know, macro concepts really don't affect callliers. They never did, and anybody who thinks they do is smoke. Something where were' impacted is in the investment decisions of invvestors that may or may not decide to continue with their investments, and it's all over the place.

Well, I tried to make the point in my prepared remarks, macro concepts really don't affect colliers. They never did. And anybody who thinks they do is smoking something. Where we're impacted is in the investment decisions of investors that may or may not decide to continue with their investments. And it's all over the place.

In Europe , but.

But it's all it's all focused on infrastructure students seniors other alternative asset classes that are.

Where you can generate better returns.

For investors. So that's very much a core of how we see our overall platform in the years to come.

Okay, and you guys have been active on the CIB as referenced for the first time as a public company operating performance has been strong.

Some say, as interest rates go up, we're going to sell assets. Some say we have shopping malls. We're selling all the shopping malls and getting out of shopping malls because we don't like it anymore. Others say logistics are impacted by supply chain, So they're not going to build as many logistics centers. Inflation could be beneficial to owners of real estate, but we don't really own real estate. All we do is by sell and lease real estate. So all we want is the velocity in our non recurring business and, as Christian said, more than just over 50% of our business is recurring today. So we're really talking about the non recurring portion of our business and there's more velocity, there's more pipeline, there's more activity in capital markets, in leasing today than ever before, and when I listen to the geniuses out there re talking about the macro vents and the tail windins and all that stuff, they're talking about owners of real estate. Potentially they're not talking about those who serve those owners as we do. So I wanted to make that point and I thank you for bring it up Steve, because as a long term Investor and building huge value for shareholders over a long period of time, I smile at some of the some of the editorial around that. So I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is.

Some say as interest rates go up, we're going to sell assets. Some say we have shopping malls, we're selling all the shopping malls and getting out of shopping malls because we don't like it.

Shares haven't really reacted accordingly.

Accordingly, I'm, just wondering is buying our own stock here and maybe more attractive than M&A would you consider maybe a more meaningful return of capital to shareholders.

Others say logistics are impacted by supply chains, so they're not going to build as many logistics centers.

Well I mean, it's something that we evaluate every day George our.

Every hour.

And I think first and foremost we are.

Interested in growing our business organically and through acquisition, but when we see the market not appreciating the value of our shares then that caused us to take.

Consideration of that in.

In April and in March we acted and.

And we May continue to act in the future on that and we'll decide that on a day by day.

and there's more velocity, there's more pipeline, there's more activity.

<unk>.

capital markets in leasing today than ever before.

Okay, sorry, and just one last one for me on General Occupier services was a big strategy of ours, we spoke about it quite a bit before the pandemic can you maybe just give us an update in terms of where we are now.

And we continue to be active in global Occupier services, and we have our recruiting plan to grow that business meaningfully.

So I wanted to make that point and I thank you for bringing it up, Steve, because as a long-term investor and building huge value for shareholders over a long period of time, I smile at some of the editorial around this. So I think we're in an amazing position to capitalize and really not affected by too much of what goes on. Look, everybody is.

Over the next five years as part of our enterprise 25.

Plan I think we're on track.

With that and you'll see it reflected in the results.

Okay. Thanks, Greg.

Thanks.

And our next question coming from the line of Stephen Macleod with BMO capital. Your line is open.

Great. Thank you good morning, guys.

Stuff happens But as you could see from our own results over the past.

stuff happens, but as you can see from our own results over the past

Hey, Steve.

I just wanted to ask about the outlook and our revised guidance and just get a little bit of a sense as to sort of what what factors you are considering.

10 years, five years picket. We just continue to get stronger and grow better and gain share. So I think callliers had frankly, some of its peers.

10 years, 5 years, pick it. We just continue to get stronger and grow better and gain shares. So I think Collier's and frankly some of its peers.

In the 2020 outlook with respect to maybe.

Near term visibility and potentially longer term visibility as you get into the back half of the year.

Have tremendous business models that are unappreciated by the marketplace.

have tremendous business models that are unappreciated by the marketplace.

Yes, Thanks, Steve.

We.

Well great, that's a very good color, Jay. Thank you so much. Thanks, Christian.

Increased our guidance for the year in part on the strong result in Q1.

Well, great. That's a very good color, Jay. Thank you so much. Thanks, Christian.

Ne Broom n.

And also our.

Good visibility into Q2, our transaction activity.

And ans my Ladies and gentlemen to ask a question. Please press ST one.

And as for my ladies and gentlemen, to ask a question, please press star 1.

We also have.

Very good visibility on the recurring side of our business, which is half the revenue.

Our next question, coming from the loof scot Thomson, with C I B C, an is open.

The next question coming from the line of Scott Thompson with CIBC.

And that gives us.

Thank you I think that you've gone over in pretty good detail. The drivers the factors and especially the outlook and giving us clear understanding of.

Thank you. I think that you've gone over in pretty good detail the drivers and the factors and especially the outlook and giving us a clear understanding of

And our outlook now as it relates to the back half of the year and transactions.

We did not simply increase the guidance for that there are obviously some macro.

Factors that play here.

Of what you're all, the kids, and how strong it is.

of what your outlook is and how strong it is. Just a quick...

Situation with the conflict in eastern Europe .

Just a quick question though.

Interest rates and all that stuff, but.

Are you? Are there any particular business lines and their markets where you are seeing market share gains?

By and large we are.

Are there any particular business lines and their markets where you are seeing market share gains? Everywhere.

Sure.

As I mentioned, increasing our outlook for the regions.

Outlined.

Everywhere.

Everywhere market share gains everywhere.

Great great. Thank you.

And then I just wanted to.

Ok.

Respect to Harrison Street on the investment management business.

Thank you all. I'll leave it next, that's's Don T I don't mean.

Thank you all. I'll leave it at that.

The strong fund raising momentum that you saw exiting Q4 and now coming into Q1.

Any York.

No all I'm saying is: I mean, just look at the actual results for the quarter and it's been pretty consistent over the past couple of years, up 30% in virtually every area. Pretty impressive.

No, no, all I'm saying is, I mean, just look at the actual results for the quarter, and you know, it's been pretty consistent over the past couple of years, you know, up 30 percent in virtually every area, pretty impressive.

What kind of visibility do you have in terms of the fund raising momentum through the balance of the year.

Well, we have very strong visibility.

The Q.

This particular year, we're in the market with Christian for next 666 funds all funds are increasing in size from previous.

Yeah.

and exceeding our own expectations, frankly. I'd like to pat ourselves on the back and say it was all pre-planned, but these kinds of results across the board, market for market, are beating our own internal expectations, which tells us that there's way more to go. Our pipelines continue to be very strong everywhere.

From previous funds.

As you as you probably know 80% to 90% of the investors roll into the subsequent fund.

And so we are quite excited about the prospects of fund raising.

So we're excited about the next, the next, the next phase.

In the current year and the Salt is also actively.

So, you know, we're excited about the next phase.

Fund raising as is antirion so.

That's great. Thank you, I appreciate the clarity.

It'll be very interesting to see how we do over the next couple of quarters.

And our next question coming from mananel barrel young with city secure feelal on a open.

But our internal expectations or Cigna.

And our next question coming from the line of Daryl Young with City Securities. Your line is open. Hey, good morning, guys, and congrats.

Significantly better than last year, which itself was a record year for us.

Hey good morning guys and congrat on a good results.

That's that's fantastic and then maybe just finally.

Thanks to ostste.

Just I mean the ona segments have historically been very, very resilienti'm still getting a lot of questions from investors about how they may or may not be tied through to the transaction side and how the transaction side is required in order to keep growing the onna. Would you like to comment on that at all and maybe just clear the air on the ability to continue growing ona even if there was somewhat of a pullback in transaction side?

With respect to the macro backdrop and the potential for rising rates.

Well I tried to make the point in my in my prepared remarks.

Well may Darrel. We, as an example in property management. We manage two billion square feet space around the world and most of those contracts we also provide leasing services for those owners of those assets.

Macro concepts really don't affect.

As an example, in property management, we manage 2 billion square feet of space around the world and in most of those contracts, we also provide leasing services for those owners of those assets.

Colliers, they never did and anybody who thinks they do is smoke and something.

Where we are impacted is in the investment decisions.

<unk> investors that may or may not decide to continue with their investments and it's all over the place.

Now the property management contract is a recurring monthly contract, leasing a little bit more opportunistic right there's a tenant, the needs space than when we're there- a transact behalf of the of the landlord to make that, to make that happen. They're tied together, a very complementary to each other. But at the end of day, the recurring revenueiece the curing revenuepiece and the transactions will come when they come and they will come. And you know, if there's A- you know, any kind of delay in decision making by tenants or whatever, we'll get that leasing revenue in a later quarter.

Now, the property management contract is a recurring monthly contract.

leasing, a little bit more opportunistic, right? There's a tenant that needs

Say as interest rates go up we're going to sell assets. Some say we have shopping malls were selling all the shopping malls and getting out of shopping malls, because we don't like it anymore, others say logistics are impacted by supply chain, so theyre not going to build as many.

space, and we're there to transact on behalf of the landlord to make that happen. They're tied together, they're very complementary to each other, but at the end of the day, the recurring revenue piece is the recurring revenue piece, and the transactions will come when they come. They will come, and if there's any kind of a...

Logistics centers.

Inflation could be beneficial to owners of real estate, but we don't really owned real estate. All we do is buy sell and lease real estate. So all we want is a lost city.

a delay in decision-making by tenants or whatever, we'll get that leasing revenue in a later quarter.

Our non recurring business and as Christian said more than just over 50% of our business is recurring today. So we're really talking about the nonrecurring portion of our business and Theres more velocity, there's more pipeline there is more activity in capital markets and leasing.

You know, and I would add, you know, an important element of that is are engineering and project management business, which I'm going to get the aggregate number slightly wrong, but it's probably together six or $7 million glob that this person, six hundred million dollars globally. These are all long duration relationships that continuue to recur after the relationship is completed. So So if we get retained by and owner to help with the construction of a new building- for them it's typically a three year exercise and that often continues beyond that three year period- we may take over the property management of that contract. That particular owner might decide to build a second building or a third building and all that's in the project management component of our business. And an engineering. Virtually every single day in every large conx there is some engineering, a service required and once year the engineer of record- it's again a long term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about are outsourcing and advisory component, these are high value add services. This isn't janiorial, it's high value add services that have long duration, strong client relationships that our valued and we have a bit of a MO because we have inside information into how that building operates and where the you know the weaker pieces of that building a might be. So as the ongoing service provider or expert in the specialty, we're there for a long period of time. I don't think many investors appreciate that piece of what we're doing and that that part of our business continues to grow very rapidly. And I think, as the market for commercial real estate continues to mature, as we're seeing much more construction of new products, new building out there, even infrastruure assets out there, that our, that our investment management firms, our participating in all of them need.

Today than ever before and when I listen to the genius is out there talking about the macro events in the tail winds and all that stuff, they're talking about owners of real estate potentially they're not talking about those who serve those owners is.

that continue to recur after the relationship is completed. So if we get retained by an owner to help with the construction of a new building for them,

We do so I wanted to make that point and I. Thank you for bringing it up Steve because as a long term investor and building huge value for shareholders over a long period of time I smile at some of the some of the editorial around that so I think we're at in them.

it's typically a three-year exercise, and that often continues beyond that three-year period. We may take over the property management of that contract, that particular owner might decide to build a second building or a third building, and all that's in the project management component of our business. And in engineering, virtually every single day in every large complex, there is some engineering

<unk> positioned to capitalize and really not affected by.

Too much of what goes on look everybody is stuff happens.

But as you can see from our own results over the past.

a service required and once you're the engineer of record it's again a long-term duration to do the job and then it's an ongoing support function for a long period of time. So when we talk about our outsourcing and advisory component, these are high value-add services.

10 years five years pick it we just continue to get stronger and grow better and gained share. So I think colliers and frankly some of its peers.

Have tremendous business models that are unappreciated by the marketplace.

This isn't janitorial, it's high value add services that have long duration, strong client relationships that are valued.

Well, great that's very good color Jay. Thank you so much thanks Christian.

Alright, no problem. Thanks.

And as a reminder, ladies and gentlemen to ask a question. Please press star one.

Our next question coming from the line of Scott Thompson with CIBC. Your line is open.

Thank you.

Good.

You've gone over in pretty good detail.

The drivers of the factors, especially the outlook.

Giving us clear understanding.

Or what.

What what your outlook is and how strong it is.

that piece of what we're doing, and that part of our business continues to grow very rapidly. And I think as the market for commercial real estate continues to mature, as we're seeing much more construction of new products, new buildings out there, even infrastructure assets out there that our investment management firms are participating in, all of them need

Just a quick question, though.

Are you.

Are there any particular business lines under markets, where you are seeing market share gains.

Everywhere.

Everywhere market share gains everywhere.

Okay.

Thank you.

Okay.

A project management capability to manage and oversee the construction of those projects in a defined professional way and so.

a project management capability to manage and oversee the construction of those projects in a defined professional way.

No I don't mean the.

Got you.

No all I am saying is.

Just look at the actual results.

For the quarter and it's been pretty consistent.

We see that component of our business continuing to grow rapidly, and it gives us a level of consistency and resilience that most others don't have.

<unk> over the past couple of years.

we see that component of our business continuing to grow rapidly, and it gives us a level of consistency and resilience that most others don't have.

Up 30% in virtually every area.

Pretty impressive.

Got it.

And exceeding our own expectations frankly.

And just to close that out, it also gives us the opportunity then to come in and provide the leasing services that I described for a sailor disposition. If that, if that ownder, that asset asideside, sultimately make that decision. So it ties the two parts and business together.

Just to close that out, it also gives us the opportunity then to come in and provide the leasing services as I've described or a sale of this position if that owner of that asset decides to ultimately make that decision. It ties the two parts of the business together.

I'd like to say I'd like to Pat ourselves on the back and say it was all all preplanned.

But these these kinds of results across the board market for market are beating our own internal expectations, which which tells us that there's way more to go.

That's great color things and that it was AB ished. Was that too much? Was that too myile of it that we give you it too much there?

That's great color things that was that was that was that too much was that too much did we give you too much there?

And our pipelines continued to be very strong everywhere.

So we're excited about the next the next.

It's perfect, I think. I think we all you can benefit from there right now, given just given some of the the concerns that are out there. So it's great color, Thank you. And maybe just one last quick one I'm not sure if you'll debite on this, but the potential for another verticals, as any headway been been made there in terms of Framing in what that could look like.

The next phase.

That's great. Thank you I appreciate the clarity.

And our next question coming from the line of Daryl Young with TD Securities. Your line is open.

Well we're- as somebody asked the same question, maybe you on the last call- we have our, we have a full pipeline of activities in our existing, our existing verticals. We have global growth opportunities in every one of those verticals. So there's nothing really on the horizon that that I can see. Famous last words of something you know tremendous came. We obviously have the capacity to do it, but we're very confident that we're building some very, very strong and unique and differentiated verticals that will- that will you know- really stand the test of time and create incredible value for our shareholders.

Well, we're as somebody asked the same question, maybe you on the last call, we have our we have a full pipeline of activities in our existing.

Hey, good morning, guys and congrats on the good results.

Thanks Darryl.

Just.

I mean.

The <unk> segment. So it's historically been been very very resilient I'm still getting a lot of questions from investors about how they may or may not be tied through to the transaction side and how the transaction side as required in order to keep growing the M&A would.

our existing verticals. We have global growth opportunities in every one of those verticals. There's nothing really on the horizon that I can see, famous last words of something tremendous came. We obviously have the capacity to do it, but we're very confident that we're building some very strong and unique and differentiated verticals.

Would you like to comment on that at all and maybe just clear the air on the ability to continue growing O&M even DFS.

There was somewhat of a pullback in transaction side.

Well Darryl.

As an example in property management, we manage 2 billion square feet space around the world.

that will really stand the test of time and create incredible value for our shareholders.

And most of those.

Contracts, we also provide leasing services for those owners of those assets.

Ok greatp, that's it for me. Thanks very much, gentlemen.

Now the property management contract is a recurring monthly contract leasing.

Our next question, coming from the line of Patrick has been with Raymond, James seelon is open.

And our next question coming from the line of Patrick Bespin with Raymond James. Your line is open.

A little bit more opportunistic right theres a tenant needs.

Space and we're there to transact on behalf.

Hi good morning.

okhi frederick.

Of the landlord to make that to make that happen.

The million shares that you repurchased. It started towards the end of the first quarter and then it's up until yesterday or today. Just wondering if it was evenly split between the two quarters.

The million shares that you repurchased started towards the end of the first quarter and then it's up until yesterday or today. I'm just wondering if it was evenly split between the two quarters.

They're tied together very complementary to each other.

But at the end of the day the recurring revenue piece of the recurring revenue piece and the transactions will come when they come and they will come in.

I think we purchased around six thousand shares during March and four thousand roughly in April fredder.

There is.

I think we purchased around 600,000 shares during March and 400,000 roughly in April , February .

Any kind of.

Delay in decision, making by tenants or whatever.

We'll get that leasing revenue in a later quarter.

Okay that's good color. I'm just curious about how much liquidity you estimate you have going forward and against. The bazsollt transaction is as yet to close. And then you've got this, the extra amount that you spend on the share purchase. So how comfortable are you? You can deploy capital, say in the second half, if some great opportunities present themselves.

I'm just curious about how much liquidity you estimate you have going forward. I guess the Basalt transaction is as yet to close. And then you've got the extra amount that you spent on the share purchase. How comfortable are you that you can deploy capital in the second half if some great opportunities present themselves?

And I would add on.

An important element of that is.

Our engineering and project management business, which.

I'm going to get the aggregate number slightly wrong, but its probably together six or $700 million globally is that whether this <unk> $600 million globally.

These are all long duration.

I think we're very well positioned, frederick. We have a $1 billion revolver which has a a low drawn, and I think we on two million at the moment. First we have the assault transaction to close, So lots of liquidity in the system and our leverage is very low. So we're well positioned.

I think we're very well positioned. We have a $1Bn revolver, which has a low draw on it. I think we're at $200M at the moment. We have the Basalt transaction to close, so there's lots of liquidity in the system and our leverage is very low. We're well positioned.

Relationships that continue to recur after the relationship has completed so so if we get retained by <unk>.

And owner to help with the construction of a new building for them.

It's typically a three year exercise and that often continues beyond that three year period, we may take over the property management of that contract that particular owner might decide to build a second building or a third building and all that's in the project management component of our.

As your business has become more and more recurring in nature, are you comfortable kind of leveraging more too as well? Can you remind me of what your comfort range is right now with respect to net Deb's EBITDA?

As your business has become more and more recurring in nature, are you comfortable leveraging more too? Can you remind me of what your comfort range is right now with respect to NetDev Tebida?

Well like. Our comfort zone is one to two times and we're comfortable at thatto two times level for the reason that you that you described, with the higher amount of recurring revenue and certainly the business is transforming this year with the bassault transaction we're going to have 23% of our EBITDA from investment management, extremely high visibility and the highly durable and high margin EBITDA coming from those services- low CapEx as well. So strong cash flow and when you know, if we get to a point where we're our leverage is above two times based on an acquisition or something we know we can quickly delever and get back into that during a sort of 1- two times range quickly. So we feel pretty comfortable with our, you know with, with all that.

Look, our comfort zone is one to two times and we're comfortable at that two times.

Business and an engineering virtually every single day and every large complex there is some engineering.

level for the reason that you described with the higher amount of recurring revenue. Certainly, the business is transforming this year with the Basalt transaction. We're going to have 23%.

Our service required and once you're the engineer of record. It's again, a long term duration to do the job and then it's an ongoing support function for a long period of time, so when we talk about our <unk>.

of our EBITDA from investment management, extremely high visibility.

and highly durable and high margin EBITDA coming from those services, low capex as well, so strong cash flow.

Outsourcing and advisory component these are high value add services.

If we get to a point where our leverage is above 2X based on an acquisition or something, we know we can quickly de-lever and get back into that 1-2X range quickly.

This isn't janitorial, it's high value add services that have long duration strong client relationships that are valued and we have a bit of a boat because we have.

So we feel pretty comfortable with all that.

Inside information into how that building operates and where the.

okayjag got one for you. Can you comment on the latest acquisition that CA colors indeed did in the? U's Southwest? How does that kind of fits in the whole strategy, how well diversified you are now in the? U's and where you might take that business going forward?

Jay, I've got one for you. Can you comment on the latest acquisition that Collier's E&D did in the U.S. Southwest? How does that fit in the whole strategy? How well diversified you are now in the U.S. and where you might take that business going forward?

Weaker pieces of that building might.

Might be so as the ongoing service provider or expert in the specialty we're there for a long period of time I don't think many investors appreciate that.

That piece of what we're doing in that part of our business continues to grow very rapidly and I think as the market for commercial real estate continues to mature as we're seeing much more construction of new products new buildings out there even in.

You know just briefly Fred, you know it was. It was an excellent acquisition from our perspective. It fit very nicely into into our business, our- our current business, or pre pre acquisition business, was had a very small and growing platform in Texas, So we needed, we needed to augment that that, that business, which we did, and we're very excited about the new partners that joined the overall, the overall business and But I would say we have lots and lots of room in engineering in the? U's and globally. And and as you know, because you cover many engineering firms, we have a global brand, we have extensive client relationships and both of those things come in very handy, especially when you pursue a, a partnership philosophy, as we do, which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned engineering firm. So you know this has been, you know, standard fair for our business over 27 years, we understand had a build platforms through great partnerships with great people, and we see that this segment is right for the same growth trajectory and we can do it on a global basis. So lots, lots to do there, but it's still very small percentage- not very small, but still a small percentage- of our global business.

You know, just briefly, Fred, it was an excellent acquisition from our perspective. It fit very nicely into our business, our current business or pre-acquisition business.

had a very small and growing platform in Texas. So we needed to augment that business, which we did. And we're very excited about the new partners that joined the overall business. But I would say we have lots and lots of room in engineering in the US.

Infrastructure assets out there that are that are investment management firms are participating in all of them need.

A project management capability to manage and oversee the construction of those projects.

Defined professional way and so.

We see that component of our business continuing to grow rapidly and it gives us a level of consistency and resilience that most others don't have.

And as you know, because you cover many engineering firms, we have a global brand, we have extensive client relationships.

And just to close that out it also gives us the opportunity then to come in and provide the leasing services at the described or a sale or disposition.

And both of those things come in very handy, especially when you pursue a partnership philosophy as we do, which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned engineering firms. So, you know, this has been, you know, standard fare for our business over 27 years.

If that owner of that asset size ultimately.

Make that decision so it ties the two parts of the business together.

That's great color. Thanks. So was that was that was that too much is that tumor.

Give you too much there.

That's perfect I think I think we.

Can benefit from it right now given just given some of the.

We understand how to build platforms through great partnerships with great people, and we see that this segment is

The concerns that are out there. So it's great color. Thank you and maybe just one last quick one I'm not sure if you'll bite on this but the potential for another vertical as any headway has been made there in terms of framing and what that could look like.

Well, we're as somebody asked the same question maybe you on the last call. We have our we have a full pipeline of activities in our existing.

Our existing verticals.

Great from specifically on the regional basis, on the? U's, if I recall you're in the Northeast, Southeast and now kind of Texas. Is California a white space for you?

Great. Specifically on a regional basis in the U.S., if I recall, you're in the northeast, the southeast, and now kind of Texas. Is California a white space for you?

We have global growth opportunities in every one of those.

Our verticals.

So there's nothing really on the horizon.

I can see famous last words, if something tremendous came we obviously have the capacity to do it but.

Is California, everything is everything.

Is California, everything, everything.

We're very confident that we're building some very very strong.

Sorry go ahead now. M ING the California was an opportunity here.

Sorry? Go ahead. I'm just wondering if California was an opportunity.

And unique and differentiated verticals that will.

Yes and if you have a, if you have an idea in mind, I'll give you my phone number, which I know you already have.

If you have an idea in mind, I'll give you my phone number, which I know you already have.

That will.

Really stand the test of time and create incredible value for our shareholders.

I do all right thanks.

Actually thanks aition.

Thanks ritder.

Okay great.

That's it for me thanks, very much gentlemen.

Our next question, coming from the line of Chinese e Ron with common Sex line, is open.

Our next question coming from the line of Chandni Guthra with Goldman Sachs, your line

And our next question coming from the line of Patrick <unk> with Raymond James Your line is open.

Hi good morning. Congratulations in a strong quarter. Could you perhaps So?

Hi, good morning. Congratulations on a strong quarter. Could you perhaps talk...

Hi, good morning.

Okay, Alright Frederic.

The 1 million shares that you repurchased.

Could you perhaps talk about the driver of higher margin guidance? I mean, I know you alluded to could if you getting some operating leverage, but then there's some acquisitions-related impact as well, which is obviously working favorably for you. But is there a way to think about a split in kind of what piece and how much is coming from just leverage in the business?

It started towards the end of the first quarter and then it's up until yesterday or today, just wondering if it was evenly split between the two quarters.

I think we are.

We purchased around 600000 shares during during March and 400000 roughly in April Frederic.

Okay. That's good color I'm, just curious about how much liquidity you estimate you have going forward.

For for sure anding the operating margin increase is half from organic sources. So you saw in the quarter the Americas business had strong revenues but also a strong margin growth. We expect that to continue through the through the year across. You know all of our regional businesses operating leverage from higher revenues, also from in some of the continuing cost management activities that we're undertaking around the company. The other half of the margin increase is from acquisitions and, as you know, investment management businesses operated higher margins. So the impact of the interior deal which we just closed on AP able first and the assults transaction closing in the second half will drive that additional margin expansion on a consolidated basis.

Yeah, for sure, Jandy. The operating margin increase is half from organic sources. So, you saw in the quarter, the Americas business had strong revenues but also strong margin growth. We expect that to continue through the year across all of our regional businesses.

Against the <unk> transaction has yet to close.

And then you've got this.

The extra amount that you've spent on the share purchase so.

How comfortable are you that you can deploy capital.

Say in the second half is some great opportunities present themselves.

I think we're very well positioned Frederic we have a $1 billion.

Oliver which has a.

from operating leverage, from higher revenues, also from some of the continuing cost management activities that we're undertaking around the company. The other half of the margin increase is from acquisitions, and as you know, investment management businesses operate at higher margins.

Low draw on it I think around $200 million at the moment.

First we have the the salt transaction to close.

So lots of liquidity.

In the system and our leverage is very low so.

We're well positioned.

As your business has become more and more recurring in nature.

Comfortable kind of leveraging more too as well.

The impact of the Ontario deal, which we just closed on April 1st, and the Basalt transaction closing in the second half will drive that additional margin expansion on a consolidated basis.

Can you remind me of what your comfort range is right now with respect to our net debt to EBITDA.

Hello, Mike.

Our comfort zone is one to two times and we're comfortable at two times.

Level for the reason that you that you described.

With the higher amount of recurring revenue and certainly the business is transforming this year with the basalt transaction, we're going to have 23% of our EBITDA from investment management extremely high visibility and highly durable and high margin.

EBITDA coming from those services low capex as well as the strong cash flow.

and how much of, you know, buyback is embedded.

And if we get to a point where were our leverages above two times based on an acquisition or something we know it can quickly delever and get back into that.

In there, are you giving any guidance around that?

The olook that you see for you today does not have any additional buybacks factored in.

The outlook that you see for you today does not have any additional buybacks factored in.

So you know sort of one to two times range quickly so we feel pretty comfortable with our.

Understood.

With all of that okay.

Hey, Jay I got one for you can you comment on the.

Our next question: coming from the line of maximum signicture with National Bank financial, you UN us open?

The latest acquisition that caused the colors A&D did in the U S southwest how does that kind of fits.

And our next question coming from the line of Maxim Sitshev with National Bank Financial. Your line is open.

And the whole strategy, how well diversified you are now in the U S and where you might take that business going forward.

hydrro one German.

I'm ax.

You made the first question for you, if it's possible, given the fact that we've seen obviously, some multiple compression of the public markets, was wondering if you are seeing any changing by the langu age from potential sellers as you communicate right now with the targets.

Jay, maybe the first question for you, if it's possible, given the fact that we've seen obviously some multiple compression in the public markets, I was wondering if you are seeing any changing by the language from potential sellers as you communicate right now with the target market?

Just briefly.

Brett.

It was it was an excellent acquisition from our perspective, it fit very nicely into.

Into our business or our current business.

Pre acquisition business.

We had a very small and growing platform in Texas. So we needed we needed to augment that that that business, which we did.

And we're very excited about the new partners that joined the overall the overall business and.

But I would say, we have lots and lots of room.

In engineering in the U S.

So, I'm not seeing any changes in pricing expectations from sellers.

And globally.

And as you know because you cover many engineering firms, we have a global brand we have extensive client relationships and both of those things come in very handy, especially when you pursue a.

Okay that's super helpper, pick very much. And then Christi, I just had a question for you. In terms of non-cash working capital, there was a pretty significant RO in this quarter versus last year. I'm just trying to see how we should be thinking about it as the year progresses in terms of know some of that unwinding already color to the super helpful.

Okay, that's super helpful, thank you very much. And then, Christian, I just had a question for you in terms of non-cash working capital. There was a pretty significant draw this quarter versus last year. I'm just trying to see how we should be thinking about it as the year progresses in terms of, you know, some of that unwinding. If you can provide any color to the super helpful.

Partnership philosophy, as we do which creates that much more alignment between the people that make it happen day to day and some of the other firms that are 100% owned.

Yes that's a great question MAX. There were a couple of things in our working capital. This quarter of no. one was a contingent consideration payment that we made which is on the Harrison street ear out and 59 line of that showed up as as a negative against cash from operations. So that's a nonoperating item in my view on undergaap. First it's shown as an operating item and then secondly the.

That's a great question, Max. There were a couple of things in our working capital this quarter. One was a contingent consideration payment that we made, which is on the Harrison Street earn-out. $59M of that showed up as a negative against cash from operations.

Engineering firm. So this has been.

Standard fare for our business over 27 years, we understand how to build platforms through great partnerships with great people and we see that this segment is.

Right for the same.

<unk> growth trajectory and we can do it on a global basis. So.

So that's a non-operating item, in my view. Under GAAP, of course, it's shown as an operating item. And then secondly, the

Lots to do there, but it's still very.

Very small percentage very small, but still a small percentage of our global business.

Accounts receivable facility that we have. Sorry, the accounts receivable facility that we have. We drew on it during the quarter and there are some ins and outes on the cash flow statement from that which resulted in the noncash change in the accounts receivable being highly negative in the quarter and that's something that is a non recurring item and in results in that wereking T capital changed.

The accounts receivable facility that we have, we drew on it during the quarter and there are some ins and outs on the cash flow statement from that, which resulted in the non-cash change in the accounts receivable being highly negative in the quarter and that's something that is a non-recurring item and results in that working capital change that we saw.

Yes.

Great.

Specifically on a regional basis, though in the U S. If I recall you are in the northeast southeast and now kind of Texas is California, a white space for you.

Is California everything is everything.

Sorry go.

Go ahead.

California was an opportunity here.

For sure. And then in terms of kind of the rest of the year is a condition of close to what we've seen in twotwentthousand -and 1, how should we think about it if we were to exclude the Q1?

Yeah, and if you have if you have an idea in mind.

sure. And then in terms of kind of the rest of the year, is it going to be sort of closer to what we've seen in in 21 or how should we think about it if we were to exclude, you know, the Q1?

I'll give you my phone number which I know you already have.

I do alright, thanks, Thanks, Sam.

Thanks.

Yes on a fullyear basis. We expect to be highly cash flow generative, as we are. Each year the the business generates strong operating cash flows and of course, there is some seasonality to that, with the transactional businesses being very strong in the third and fourth quarters for cash flow, and we expect that to be the case again this year.

Yes.

Thanks Robert.

And our next question comes from the line of John <unk> with Goldman Sachs. Your line is open.

Hi, good morning, congratulations on the strong quarter.

Could you perhaps.

Hi could you perhaps talk about the driver of higher margin guidance I mean, I know you.

Okay absolutely, if I think is so much sure understood. And then, just just one last glorification jam, I'm sure did you say that in terms of office leasing, what are still 5% below the 2019 peaks? I'm just trying to get the number right. Then maybe any column in terms of when you think we're going to be ecglipsing those levels, on potential going higher, or what needs to happen for a preef to see that.

Alluded to Getty.

Getting some.

Operating leverage, but then theres some acquisitions related impact as well, which is obviously working favorably for you but is there a way to think about.

And kind of you know.

What beef and how much is coming from just general leverage in the business.

Yes for sure Chandni.

Max that was this past quarter. We were, on a global basis, 5% below Q1 2019 for office leasing.

The operating.

Margin.

<unk> is half from <unk>.

Organic sources. So you saw in the quarter the Americas business.

Look we're. 5% is not a meaningful or material number. We hope to upplit those 2019 levels, if not next quarter than the following quarter. I think it's. There's positive momentum and positive trajectory for office leasing, and that's something that we're we're certainly watching closely.

Had strong revenues, but also a strong.

Margin growth, we expect that to continue.

Through the through the year across all.

All of our regional.

Businesses.

From from operating leverage from higher revenues also from.

Some of the continuing.

Cost management activities that were undertaking around the company.

And are you seeing any change on the industrial side of things? I mean obviously, what have tremendous the last couple of years? Just curious about your, what you're hearing from the clients right now.

The other half of the margin increase is from acquisitions and as you know investment management businesses operate at higher margins.

So the impact of the Algerian deal, which we just closed on April one.

Industrial continues to be very hot and I think that's the case globally. You're also seeing some, some publicly traded REITs being acquired in that space. So it's that's a segment that's very hot right now and continues. And I would add to that that we're seeing land sales record levels which is going to become industrial property in the future, which will only drive our leasing revenues and our capital markets revenues in the future because that additional product on the market.

And the <unk> transaction closing in the second half.

What will drive that.

Additional margin expansion on a consolidated basis.

That is great color. Thank you for that and then for my follow up So you guys talked about thinking.

Thinking about buyback at this point given how shares of just generally acted.

Is there something.

Something embedded in guidance that we should think about.

Is it kind of model our numbers.

You have given that high teens earnings growth today, and how much you buyback.

Buyback is embedded.

Okay affects on color. Thank you so much for and that's for me.

In there are you, giving any guidance around that.

Thank.

The outlook that you see for you today does not have any additional buybacks factored in.

I'm shoring over to quick questions at this time. I would now like to turn the call back over to MR Hanning for any closing remarks.

Understood.

Okay Thank you very much operator, and thanks everyone for participating in this quarter's call and we look forward to doing it again next quarter. Thanks for joining us.

And our next question coming from the line of Maxim <unk> with National Bank Financial Your line is open.

Ladies and gentlemen, this concles the conference call. Thank you for your participation and have a nice day.

Hi, good morning, gentlemen.

IMAX.

Jim maybe the first question for you if it's possible.

Given the fact that we've seen obviously some multiple compression of the public markets was wondering if youre seeing any changing.

Changing bundling with potential sellers.

As you communicate with now.

Thanks.

No I don't think so I think the sellers the expectation.

The expectation of the sellers continues to be.

The higher than they were a year or two ago for obvious reasons.

Assets in the private market are trading materially higher than.

Many public companies, including Colliers.

So I'm not seeing any I'm not seeing any changes.

In pricing expectations from sellers.

Okay. That's super helpful. Thank you very much and then a question I just had a question for you in terms of noncash working capital.

Pretty significant.

One versus last year I'm, just trying to see how we should be thinking about as the year progresses in terms of some of that unwinding.

Providing components.

Yes.

Yes, that's a great question Max.

There were a couple of things in our working capital this quarter one was a.

Contingent consideration payment that we made.

Which is on the Harrison street earn out and $59 million of that showed up.

Yeah.

Negative against.

Cash from operations. So that's a non operating item in my view under GAAP. It first it's shown as an operating item.

And then secondly.

<unk>.

Accounts receivable facility that we have sorry, the accounts receivable facility that we have.

We drew on it during the quarter and there are some ins and outs on the cash flow statement.

Which resulted in the noncash.

The change in accounts receivable being highly negative in the quarter.

<unk>.

That's something that.

As a non recurring item in.

Results in that.

Capital change that you saw.

Sure and then in terms of kind of the rest of the year is it going to look closer to what we've seen.

<unk> 21, or how should we think about it if we were to exclude the Q1.

Yeah on a full year basis, we expect to be highly cash flow generative.

As we are each year.

Yes.

The business generates strong operating cash flows and of course, there is some seasonality to that with the transactional business is being very strong in the third and fourth quarters for cash flow and we expect that to be the case again this year.

Okay, absolutely, yes, I think its so much of a push I understood and then just one.

Last clarification.

I'm not sure did you say that in terms of office leasing we're still 5% below the 2019 peaks I'm just trying to get the number right. Then maybe any color in terms of when you think we're going to be.

Lip-sync, those levels and potentially going higher or what needs to happen for you to see that.

Max that was.

This past quarter, we were on a global basis, 5% below Q1 2019.

Office leasing.

Look, we're 5% is not a meaningful or material number.

We hope to eclipse two.

2019 levels.

If not next quarter then the following quarter.

There is positive momentum and positive.

Trajectory for office leasing and Thats something that we are.

Certainly.

Watch them closely.

And are you seeing any change on the industrial side of things I mean, obviously, we had tremendous the last couple of years just curious about your.

What's your what are you hearing from our clients right now.

Okay.

Industrial continues to be very hot.

And I think Thats the case globally.

Also seeing some.

Some publicly traded Reits being acquired in that space. So that's a segment that is very hot right now and continues.

And I would add to that that we're seeing land sales at record levels.

Which is going to become industrial.

Property in the future.

For the only drive our leasing revenues and our capital markets revenues in the future.

Because of that additional product on the market.

Okay Thats excellent.

Color. Thank you so much from them.

Thanks.

And I'm showing no further questions at this time I would now like to turn the call back over to Mr. Hanley for any closing remarks.

Okay. Thank you very much operator, and thanks, everyone for participating in this quarter's call and we look forward to doing it again next quarter.

Thanks for joining us.

Ladies and gentlemen, this concludes the conference call. Thank you for your participation and have a nice day.

Q1 2022 Colliers International Group Inc Earnings Call

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