Q2 2024 Colliers International Group Inc Earnings Call

Operator: Welcome to the Colliers International Second Quarter Investors Conference Call. Legal counsel requires us to advise that the discussions scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements.

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Operator: Welcome to the Colliers International, second quarter investors conference call. Legal counsel requires us to advise that the discussions scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Asha results may be materially different from any future results, performance or achievements contemplated in the forward-looking statements.

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Legal counsel requires us.

Speaker Change: Advice that the discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertainties.

Actual results may be materially different from any future results for them.

Speaker Change: Sports events.

Speaker Change: Any forward looking statements.

Operator: Additional information concerning factors that to cause asha 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 security administrators and in the company's annual report on form 4-T-S as filed with the US Security and Exchange Commission. As a reminder, today's call is being recorded.

Speaker Change: Additional information.

Factors that could cause actual results to materially differ from those forward looking statements.

And in the company's annual information form <unk> filed with the Canadian Securities administrators and in the company's annual report on form 40 F. As filed with the U S Securities and Exchange Commission.

Operator: Considered in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's annual information form, as filed with the Canadian Securities Administrators, and in the company's annual report on Form 40-F, as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. This is Thursday, August 1, 2024. And at this time, for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.

Speaker Change: A reminder, today's call is being recorded today Thursday August one 2024.

Operator: Today is Thursday, August 1, 2024, and at best time for opening remarks and introductions, I would like to turn a call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennick.

And at this time for opening remarks and introductions.

Speaker Change: I'd now like to turn the call over to the global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead Sir.

Jay Hennick: Please go ahead, sir. Thank you, Operator.

Jay Hennick: Thank you, operator. Good morning, and thanks for joining us for the second quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the company. With me today is Chris McLernon, CEO of Real Estate Services, and Christian Mayer, our Chief Financial Officer. As always, this call is being webcast and is available in the investor relations section of our website, along with a presentation slide deck. During the quarter, Colliers delivered solid results with growth across all service lines and segments. Leasing revenues exceeded expectations while capital markets saw modest growth for the first time in 24 months, albeit from a relatively low bar. Lower interest rates, greater availability of debt, and the narrowing of bid-ask spreads.

Jay Hennick: Thank you operator, good morning, and thanks for joining us for the second quarter Conference call I'm, Jay Hennick, Chairman and Chief Executive Officer of the company with me today is Chris Mclaren and CEO of real estate services, and Christian Mayer, our Chief Financial Officer.

Jay Hennick: Good morning, and thanks for joining us for the second quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the Company. With me today is Chris McLean, CEO of Real Estate Services, and Christian Mayor, our Chief Financial Officer.

Jay Hennick: We anticipate that deal activity and, therefore, sales volumes for Colliers should begin to recover from here. As expected, our high-value recurring service lines, outsourcing and advisory, and investment management, continue to deliver solid and predictable growth during the quarter. As of the end of the quarter, assets under management were slightly over $96 billion. Since our business continues to meet expectations, we're maintaining our financial outlook for the year, as Christian will elaborate on shortly. Earlier this week, we completed the previously announced acquisition of Englobe, a leading multidisciplined engineering, environmental, and inspection services platform.

Jay Hennick: This acquisition establishes Colliers as one of the top players in Canada, complements our rapidly growing engineering operations across the U.S. and Australia, and aligns with our strategy of increasing our high-value recurring revenue streams, which will now represent 72% of our earnings. Having such a large percentage of recurring earnings further underscores the highly differentiated business model of Colliers and sets us further apart from others. Since 2015, our committed leadership team with substantial ownership has continued to reposition our company to create growth and value for shareholders.

Jay Hennick: As always, this call is being webcast and is available in the Investor Relations section of our website, along with a presentation slide deck. During the quarter, callers delivered solid results with growth across all service lines and segments. Leasing revenues exceeded expectations, while capital markets saw modest growth for the first time in 24 months, albeit from a relatively low bar. With lower interest rates, greater availability of debt, and the narrowing of bid-ask spreads, we anticipate that deal activity and therefore sales volumes for callers should begin to recover from here. As expected, our high-value recurring service lines, outsourcing and advisory, and investment management continue to deliver solid and predictable growth during the quarter.

Speaker Change: As always this call is being webcast and is available in the Investor Relations section of our website.

Along with a presentation slide deck.

Jay Hennick: One step at a time, we have grown Colliers into the global leader it is in commercial real estate and then expanded our business to include three complementary growth engines, real estate services, engineering, and investment management. With the acquisition of Englobe, our engineering and project management capabilities have now reached scale with over 8,000 employees generating about $1.3 billion in annualized revenues. As a result, beginning in the third quarter, we will be realigning our segment reporting to focus on these three specific growth engines.

During the quarter Colliers delivered solid results with growth across all service lines and segments leasing revenues exceeded expectations, while capital markets modest growth for the first time in 24 months, albeit from a relatively low bar.

Jay Hennick: This change will enable investors to better appreciate the value, strength, and potential of Colliers as a well-managed, growth-oriented professional services and asset management business with a 30-year track record of delivering 20% annualized returns per shareholder. Now, let me ask Chris McLernon to discuss some highlights. Once he's finished, Christian will provide his financial report, and then we'll open things up for questions.

Chris McLernon: Thank you, Jay. Good morning, everyone.

Speaker Change: With lower interest rates greater availability of debt the narrowing of bid ask spreads we anticipate the deal activity and therefore sales volumes for colliers should begin to recover from here.

Chris McLernon: Colliers had a successful second quarter marked by growth across all our service lines and segments, reflecting the strength of our diversified platform. Leasing revenues were up 13% driven by strong activity in the office and industrial asset classes in the Americas and the EMEA region. As occupiers are becoming more confident in their business plans, coupled with the improving return-to-work trends and the flight-to-quality offices, we are seeing an increased velocity of leasing transactions.

Speaker Change: As expected our high value recurring service lines outsourcing and advisory and investment management.

Speaker Change: Changing to deliver solid and predictable growth during the quarter.

Jay Hennick: Assets under management were slightly over $96 billion. Since our business continues to meet expectations, we're maintaining our financial outlook for the year, as Christian will elaborate on shortly.

Speaker Change: Assets under management were slightly over $96 billion.

Speaker Change: Since our business continues to meet expectations, we're maintaining our financial outlook for the year as Christian will elaborate on shortly.

Jay Hennick: Earlier this week, we completed the previously announced acquisition of Endglobe, a leading multi-disciplined engineering, environmental, and inspection services platform. This acquisition establishes Callers as one of the top players in Canada. Compliments are rapidly growing engineering operations across the US and Australia and aligns with our strategy of increasing our high-value recurring revenue streams, which will now represent 72% of our earnings. Having such a large percentage of recurring earnings further underscores the callers, highly differentiated business model and sets us further apart from the others. Since 2015, our committed leadership team with substantial ownership has continued to reposition our company to create growth and value for shareholders.

Speaker Change: Earlier this week, we completed the previously announced acquisition of band Globe, a leading multi disciplined engineering environmental inspection services platform.

Speaker Change: This acquisition establishes colliers is one of the top players in Canada.

Christian: Implements our rapidly growing engineering operations across the U S and Australia and aligns with our strategy of increasing our high value recurring revenue streams, which will now represent 72% of our earnings.

Speaker Change: Having such a large percentage of recurring earnings further underscores the colliers highly differentiated business model and sets us further apart from the others.

Speaker Change: Since 2015 are committed leadership team a substantial ownership has continued to reposition our company to create growth and value for shareholders.

Jay Hennick: One step at a time we have grown Colliers into the global leader it is in commercial real estate and then expanded our business to include three complementary growth engines: real estate services, engineering, and investment management. With the acquisition of Endflow, our engineering and project management capabilities have now reached scale, with over 8,000 employees generating about 1.3 billion in annualized revenues.

Speaker Change: One step at a time, we have grown colliers into the global leader. It is in commercial real estate and then expanded our business to include three complementary growth engines real estate services engineering and investment management.

Speaker Change: With the acquisition of Anglo our engineering and project management capabilities have now reached scale with over 8000 employees generating about $1 3 billion in annualized revenues.

Jay Hennick: As a result, beginning in the third quarter, we will be realigning our segment reporting to focus on these three specific growth engines. This change will enable investors to better appreciate the value, strength and potential of Colliers as a well-managed growth oriented professional services and asset management business with a 30-year track record of delivering 20% annualized returns for shareholders.

Speaker Change: As a result, beginning in the third quarter, we will be realigning our segment reporting to focus on these three specific growth engines.

Speaker Change: This change will enable enable investors to better appreciate the value strength and potential of colliers as a well managed growth oriented professional services and asset management business with a 30 year track record of delivering 20% annualized returns for shareholders.

Chris McLernon: Now let me ask Chris McLernon to discuss some highlights.

Chris McLaren: Now, let me ask Chris Mclaren to discuss some highlights once these completed Kristian will provide his financial report and then we'll open things up for questions Chris. Thank.

Chris McLernon: Once he's completed, Christian will provide his financial report, and then we'll open things up for questions.

Chris McLernon: Chris? Thank you, Jay.

Chris McLernon: For example, office leasing was up 18% globally and notably up 32% in the Americas. We also witnessed strong office leasing growth in several other countries, including Germany, France, the Netherlands, New Zealand, China, Hong Kong, and India. As Jay mentioned, capital markets showed their first period of growth since the second quarter of 2022.

Chris McLaren: Thank you Jay Good morning, everyone Colliers had a successful second quarter marked by growth across all our service lines and segments, reflecting the strength of our diversified platform.

Chris McLernon: Good morning, everyone. Colliers had a successful second quarter marked by growth across all our service lines and segments, reflecting the strength of our diversified platform. Leasing revenues were up 13%, driven by strong activity in the office and industrial asset classes in the Americas and the EMEA regions. As occupiers are becoming more confident in their business plans, coupled with the improving return to work trends and the flight to quality offices, we are seeing an increased velocity at leasing transactions. For example, office leasing was up 18% globally and notably up 32% in the Americas. We also witnessed strong office leasing growth in several other countries, including Germany, France, the Netherlands, New Zealand, China, Hong Kong, and India.

Speaker Change: Leasing revenues were up 13% driven by strong activity in the office and industrial asset classes in the Americas and the EMEA regions.

Speaker Change: As occupiers are becoming more confident in their business plans, coupled with the improving return to work trends and the flight to quality offices, we are seeing an increased velocity of leasing transactions.

Speaker Change: For example office leasing was up 18% globally, and notably up 32% in the Americas.

Speaker Change: We also witnessed strong office leasing growth in several other countries, including Germany, France, The Netherlands, New Zealand, China, Hong Kong and India.

Chris McLernon: As Jay mentioned, capital markets showed the first period of growth since the second quarter of 2022. We outperformed industry benchmarks and continued to gain market share, but direct results of our decision to strategically invest in our business and our people. A great example is our debt finance operations in North America, where we saw substantial improvement in loan and origination activity, particularly in the delivery of solid growth this quarter. Revenues were up 5% with solid pipelines and revenue visibility across our service lines through to the end of the year.

Chris McLaren: As Jane mentioned capital markets showed the first period of growth since the second quarter of 2022, we outperformed industry benchmarks and continued to gain market share a direct result of our decision to strategically invest in our business and our people.

Chris McLernon: We outperformed industry benchmarks and continue to gain market share, a direct result of our decision to strategically invest in our business and our people. A great example is our debt finance operations in North America, where we saw a substantial improvement in loan origination activity, particularly in the multifamily asset class. Meanwhile, our high-value outsourcing advisory services continue to deliver solid growth this quarter, revenues were up 5%, with solid pipelines and revenue visibility across our service lines through to the end of the year.

Jane: A great example is our debt finance operations in North America, where we saw substantial improvement in loan origination activity, particularly in the multifamily asset class.

Speaker Change: Meanwhile, our high value outsourcing advisory services continued to deliver solid growth. This quarter revenues were up 5% with solid pipelines and revenue visibility across our service lines through to the end of the year.

Chris McLernon: As Jay mentioned, we are extremely excited to welcome In-Glow to Calliers. The platform significantly bolsters our engineering and project management capabilities and will deliver exceptional returns over the coming years.

Chris McLernon: As Jay mentioned, we are extremely excited to welcome Englobe to Colliers. The platform significantly bolsters our engineering and project management capabilities and will deliver exceptional returns over the coming years. Our performance today is a testament to our strong entrepreneurial culture, a unique culture that we have cultivated over many years that is hard to represent. Colliers has become the platform of choice for entrepreneurial professionals who want to leverage their careers for success.

Speaker Change: As Jay mentioned, we are extremely excited to welcome Englobe to colliers the platform significantly bolsters, our engineering and project management capabilities and will deliver exceptional returns over the coming years.

Chris McLernon: Our performance today is a testament to our strong enterprise and culture. A unique culture that we have cultivated over many years that is hard to represent.

Jay Hennick: Our performance to date is a testament to our strong enterprising culture.

Jay: Our unique culture that we've cultivated over many years that its hard to replicate.

Chris McLernon: Cate. Colliers has become the platform of choice for entrepreneurial professionals who want to leverage their careers for success. Our latest global engagement survey, which had an impressive 88% participation rate and high engagement scores that exceeded external benchmarks, shows that our people remain engaged, motivated, and passionate about our business and accelerating the success of our clients.

Chris McLaren: Colliers has become the platform of choice for entrepreneurial professionals, who want to leverage their careers for success.

Chris McLernon: Our latest global engagement survey, which had an impressive 88% participation rate and high engagement scores that exceeded external benchmarks, shows that our people remain engaged, motivated, and passionate about our business and accelerating the success of our clients. Now I'll turn things over to Christian, who will provide more details on our financial performance.

Speaker Change: Our latest global engagement survey, which had an impressive 88% participation rate and high engagement scores that exceeded external benchmarks shows that our people remain engaged motivated and passionate about our business and accelerating the success of our clients.

Christian Mayer: Now I'll turn things over to Christian, who will provide more details on our financials. Thank you, Chris. Good morning. Please note that all references to revenue growth made on this call are expressed in local currency and that the non-GAAP measures discussed here today are as defined in the materials accompanying this call. Our second quarter revenues were 1.1 billion, up 6% relative to the prior year period. Each of our service lines and segments reported revenue growth to the quarter. Internal growth was 5% overall and was led by double-digit gains in leasing in the Americas and in Amia.

Speaker Change: Now I'll turn things over to Christian who will provide more details on our financials.

Christian Mayer: Thank you, Chris. Good morning. Please note that all references to revenue growth made on this call are expressed in local currency and that the non-GAAP measures discussed here today are as defined in the materials accompanying this call. Our second quarter revenues were $1.1 billion, up 6% relative to the prior year period. Each of our service lines and segments reported revenue growth for the quarter. Internal growth was 5% overall and was led by double-digit gains in leasing in the Americas and in EMEA.

Christian: Thank you, Chris and good morning.

Christian: Note that all references to revenue growth made on this call are expressed in local currency and that the non-GAAP measures discussed here today are as defined in the materials accompanying this call.

Christian: Our second quarter revenues were $1 1 billion up 6% relative to the prior year period.

Christian: Each of our service lines and segments reported revenue growth for the quarter.

Christian: Internal growth was 5% overall and was led by double digit gains in leasing in the Americas and in EMEA.

Christian Mayer: Second quarter adjusted EBITDA was 156 million, up 6% over the prior year period, with a margin increasing slightly to 13.7%. We continue to be agile in managing our operating costs to match the expected pace of revenues and our transactional businesses. The benefit of these actions was most evident in the Asia Pacific region, where margins were up 120 basis points on essentially flat revenues. In our investment management segment, we raised 1 billion of new capital commitments during the second quarter, bringing our year-to-date fundraising to 1.5 billion. Our full year fundraising estimate is at the lower end of our previously stated 5 to 8 billion range, with awaiting to the fourth quarter.

Christian Mayer: Second quarter adjusted EBITDA was $156 million, up 6% over the prior year period, with the margin increasing slightly to 13.7%. We continue to be agile in managing our operating costs to match the expected pace of revenues in our transactional business. The benefit of these actions was most evident in the Asia-Pacific region, where margins were up 120 basis points on essentially flat revenues.

Christian: Second quarter, adjusted EBITDA was $156 million up 6% over the prior year period with the margin increasing slightly to 13, 7%.

Christian: We continue to be agile in managing our operating costs to match the expected pace of revenues and our transactional businesses.

Christian: The benefit of these actions was most evident in the Asia Pacific region, where margins were up 120 basis points on essentially flat revenues.

Christian Mayer: In our investment management segment, we raised $1 billion of new capital commitments during the second quarter, bringing our year-to-date fundraising to $1.5 billion. Our full-year fundraising estimate is at the lower end of our previously stated $5 to $8 billion range, with a weighting to the fourth quarter. However... Our fundraising pipelines are growing, and investor interest in our highly differentiated alternative asset classes, Infrastructure and Credit Strategies, as well as more traditional real estate asset classes, continues to gain momentum. In the second quarter, assets under management were flat at $96.4 billion.

Christian: And our investment management segment, we raised $1 billion of new capital commitments during the second quarter, bringing our year to date fundraising to one 5 billion.

Christian: Our full year fundraising estimate is at the lower end of our previously stated $5 billion to $8 billion range with a weighted to the fourth quarter.

Christian Mayer: However, our fundraising pipelines are growing, and investor interest in our highly differentiated alternative infrastructure and credit strategies, as well as more traditional real estate asset classes, continues to gain momentum. Second quarter assets under management were flat at 96.4 billion. Growth from fundraising was offset by one disposition of assets and older vintage funds returning capital to investors. Two redemptions in certain open-end funds and three modest market market adjustments, which total less than 25 basis points across the portfolio. As we mentioned previously, disposition activity in our funds is a healthy process resulting in the realization of gains and recycling of capital back to investors, which should position us well for future fundraising.

Christian: However.

Christian: Our fundraising pipelines are growing and investor interest in our highly differentiated alternative.

Christian: Infrastructure and credit strategies as well as more traditional real estate asset classes continues to gain momentum.

Christian: Second quarter assets under management were flat at $96 4 billion.

Christian Mayer: Growth from fundraising was offset by, one, dispositions of assets in older vintage funds returning capital to investors, to Redemptions in Certain Open-End Funds, and three modest mark-to-market adjustments which totaled less than 25 basis points across the portfolio. As we mentioned previously, disposition activity in our funds is a healthy process, resulting in the realization of gains and recycling of capital back to investors, which should position us well for future fundraising. We are maintaining our financial outlook for 2024, except for an increase to reflect the partial year impact of newly acquired Englobe. Our operating expectations remain unchanged.

Christian: Growth from fundraising was offset by one dispositions of assets in older vintage funds returning capital to investors.

Christian: Two redemptions and certain open end funds.

Christian: And three modest mark to market adjustments, which totaled less than 25 basis points across the portfolio.

Christian: As we mentioned previously disposition activity in our funds is a healthy process, resulting in the realization of gains and recycling of capital back to investors, which should position us well for future fundraising.

Christian Mayer: We are maintaining our financial outlook for 2024, except for an increase to reflect the partial year impact of newly acquired and low. Gupta. Our operating expectations remain unchanged. We continue to expect a recovery in capital markets activity in the third and fourth quarters, although there is still a risk that this could be delayed to early 2025. In our recurring service lines, I would sourcing advisory and investment management, we continue to expect mid to high single-digit revenue growth for the balance of the year. Regarding our balance sheet, our financial leverage ratio, as defined, as net debt to perform a adjusted EBITDA was two times as of June 30th.

Christian: We are maintaining our financial outlook for 2024, except for an increase to reflect the partial year impact of newly acquired and globe.

Christian: Our operating expectations remain unchanged, we continue to expect a recovery in capital markets activity in the third and fourth quarters. Although there is still a risk that this could be delayed to early 2025.

Christian Mayer: We continue to expect a recovery in capital markets activity in the third and fourth quarters, although there is still a risk that this could be delayed to early 2025. In our recurring service lines, outsourcing advisory, and investment management, we continue to expect mid to high single-digit revenue growth for the balance of the year. Regarding our balance sheet, our financial leverage ratio, as defined as net debt-to-performa adjusted EBITDA, was two times as of June 30th.

Christian: And our recurring service lines outsourcing advisory and investment management, we continue to expect mid to high single digit revenue growth for the balance of the year.

Christian: Regarding our balance sheet, our financial leverage ratio as defined as net debt to pro forma adjusted EBITDA was two times as of June 30th.

Christian Mayer: We expect leverage to rise to the 2.5 times range on account of envelope for Q3, then to decline to approximately two times by year end as we generate seasonally strong cash flows and pay down our revolving credit facilities. Looking ahead beyond the current year, I am very excited about the prospects for our business. Our new real estate services segment, which will include capital markets and leasing, as well as outsourcing, is very well positioned for the coming rebound and transactional activity. Our engineering segment will benefit from public and private sector infrastructure tailwinds in the coming decade and beyond.

Christian Mayer: We expect leverage to rise to 2.5 times on account of the envelope for Q3, then to decline to approximately two times by year end as we generate seasonally strong cash flows and pay down our revolving credit facility. Looking ahead beyond the current year. I am very excited about the prospects for our business. Our new real estate services segment, which will include capital markets and leasing, as well as outsourcing, is very well positioned for the coming rebound in transactional activity.

Christian: We expect leverage to rise to the two five times range on account of envelope for Q3.

Christian: Then to decline to approximately two times by year end as we generate seasonally strong cash flows and pay down our revolving credit facilities.

Christian: Looking ahead beyond the current year.

Christian: I am very excited about the prospects for our business.

Christian: Our new real estate services segment, which will include capital markets and leasing as well as outsourcing is very well positioned for the coming rebound and transactional activity.

Christian Mayer: Our engineering segment will benefit from public and private sector infrastructure tailwinds in the coming decade and beyond. Our investment management business is poised for an increase in capital flows to its highly differentiated investment strategy. These three complementary segments, collectively, are expected to deliver predictable, high single-digit annual internal growth in the years ahead. In addition, our time-tested track record of balancing strong internal growth with strategic acquisitions done the Colliers way should continue to translate into exceptional long-term returns for our shareholders.

Christian: Our engineering segment will benefit from public and private sector infrastructure tailwind in.

Christian: In the coming decade and beyond.

Christian Mayer: Our investment management business is poised for an increase in capital flows to its highly differentiated investment strategies. These three complementary segments collectively are expected to deliver predictable, high single-digit annual internal growth in the years ahead. In addition, our time-tested track record of balancing strong internal growth with strategic acquisitions done the call years way should continue to translate into exceptional long-term returns for our shareholders.

Christian: Our investment management business is poised for an increase in capital flows to its highly differentiated investment strategies.

Christian: These three complementary segments collectively are expected to deliver predictable high single digit annual internal growth in the years ahead.

Christian: In addition, our time tested track record of balancing strong internal growth with strategic acquisitions done the colliers way.

Christian: Should continue to translate into exceptional long term returns for our shareholders.

Christian Mayer: Back concludes my prepared remarks.

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

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

Operator: I would now like to open the call for questions. Operator, can you please open the line? Thank you.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request. Questions will be taken in the order received. Should you wish to cancel your request, please press the star followed by the. If you are using a speakerphone, please lift the handset before pressing any key.

Speaker Change: Thank you.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question? Please press the store followed by the one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. Questions will be taken in the order received. Should you wish to cancel your request, please press the store followed by the two. If you are using a speaker phone, please lift the handset before pressing any keys. Once again, that a store wants you to wish to ask a question.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one you touched on film.

Speaker Change: You will hear three telecoms acknowledging northwest quest.

Christian: Questions will be taken in the order receipt should you wish to cancel your request. Please press the star followed by the tail.

Speaker Change: We're using a speaker phone please lift the handset before pressing for Nicolas.

Operator: Once again, that is Star 1 should you wish to ask a question. Your first question is from Stephen MacLeod from BMO Capital Markets. Please ask your question.

Speaker Change: Once again that is star one should you wish to ask a question.

Stephen Macleod: Your first question is from Stephen McLeod from BML Capital Market. Please ask your question. Okay, great. Thanks, morning guys. Just a couple of questions.

Stephen Macleod: Okay, great. Thanks.

Speaker Change: Your first question is from Stephen Macleod from BMO capital markets. Please ask your question.

Stephen Macleod: Morning, guys. Just a couple of questions. When you think about the new reporting structure, which I think is going to be well received, will you be giving sort of pro forma historicals that we can incorporate into our model, and investors can use to assess the sort of margin profile for each of these segments?

Stephen Macleod: Okay, great. Thanks, good morning, guys.

Stephen Macleod: Just a just a couple of questions when.

Chris McLernon: When you think about the new reporting structure, which I think is going to be well-received, will you be giving sort of pro-form historicals that we can incorporate into our model and investors can use to assess the margin profile for each of these segments?

Stephen Macleod: When you think about the new reporting structure, which I think is.

Speaker Change: There's going to be well received.

Stephen Macleod: Will you be giving sort of pro forma.

Speaker Change: Historically that we can incorporate into our model and investors can use to assess sort of the margin profile for each of these segments.

Chris McLernon: Yes, Steve. We'll be definitely doing that and look for those with the Q3 reporting.

Jay Hennick: Yes, Steve, we'll definitely be doing that, and we'll look for those with the Q3 reporting.

Christian: Yes, Steve we'll be definitely doing that and look for those with the Q3 reporting.

Jay Hennick: Okay, okay, that's great. And then just on the unless imagined business with respect to just some of the puts and takes on dispositions versus fundraising, can you talk about kind of that fundraising that's waited to queue for, you know, where that's coming from, where you're seeing that demand coming from, and then how you expect that to potentially grow or evolve into fiscal 2025? Yeah, so as Christian mentioned, our pipelines, our fundraising pipelines are stronger than they've been for a long time, and I know I've said that a couple of quarters consistently.

Stephen Macleod: Okay, okay, that's great. And then just on the investment management business with respect to just some of the puts and takes on dispositions versus fundraising. Can you talk about kind of that fundraising that's weighted to Q4? You know, where that's coming from, where you're seeing that demand coming from, and then how you expect that to potentially grow or evolve into fiscal 2025?

Steve: Okay. Okay. That's that's great.

Speaker Change: And then just on the investment management business with respect to just some of the puts and takes on dispositions versus fundraising can.

Speaker Change: Can you talk about kind of that fundraising that's weighted to Q4.

Speaker Change: Where that's coming from where youre seeing that demand coming from and then how you expect that to.

Steve: To potentially grow.

Steve: Grow or evolve into fiscal 2025.

Jay Hennick: Yeah, so as Christian mentioned, our pipelines, our fundraising pipelines, are stronger than they've been for a long time. And I know I've said that a couple of quarters consistently.

Steve: Yes.

Speaker Change: So as Christian mentioned, our pipelines are fundraising pipelines are stronger than they've been.

Speaker Change: For a long time, and I know I've said that a couple of quarters.

Christian: Consistently what is happening is it's not translates translating faster into investments now.

Jay Hennick: What is happening is it's not translating, translating faster into investments now. We're seeing it this year, but there's a lot of lookers. There's a lot of re-ups; I was just meeting with one of our key guys yesterday, and they were talking about their current fund that's closing this year, and they had 100% re-ups in LPs. The big guys are returning with the same or slightly more investment. The smaller guys are cutting their investments back a little bit because they're being required to reallocate capital, especially in areas where they can't get money out of some of the funds, some of the closed-ended funds where they're committed.

Jay Hennick: What is happening is it's not translating faster into investments now. We're seeing it this year, but there are a lot of lookers.

Speaker Change: Seeing it this year.

Speaker Change: But there's a lot of lookers.

Jay Hennick: There are a lot of re-ups. I was just meeting with one of our key guys yesterday, and they were talking about their current fund that's closing this year, and they had 100% re-ups in LPs. The big guys are returning with the same or slightly more investment. The smaller guys are cutting their investments back a little bit because they're being required to reallocate capital, especially in areas where they can't get money out of some of the funds, some of the closed-end funds where they're committed.

Speaker Change: There's a lot of re ups I was just meeting with one of our key guys yesterday and they were talking about there.

Speaker Change: Their current fund that's closing this year.

Speaker Change: And they had 100% re ups and Lps.

Speaker Change: Big guys are returning with the same or.

Speaker Change: Slightly more investment the smaller guys are cutting their investments back a little bit because.

Speaker Change: They are being required to reallocate capital, especially in areas, where they can't get money out of some of the funds. Some of the some of the closed ended funds where they're committed so.

Jay Hennick: So we think there's a little bit better traction so far in the first half of the year. We're cautiously optimistic that we'll have a good finish to the year, but I think, as Christian said, a little bit lighter than, you know, our forecasts are a little bit lighter than probably we had when we went into the year.

Jay Hennick: So, we think there's a little bit better traction so far in the first half of the year. We're cautiously optimistic that we'll have a good finish to the year. But I think, as Christian said, a little bit lighter than you know, our forecast, is a little bit lighter than probably we had when we went into the year. I don't think it's going to impact our estimate of profitability, but I think realistically looking at fundraising for the balance of the year might be slightly below where we expect.

Speaker Change: We think we think there's a little bit better traction so far in the first half of the year.

Speaker Change: We're cautiously optimistic that we'll have.

Speaker Change: A good finish to the year, but I think as Christian said, a little bit lighter than.

Speaker Change: Our forecasts are a little bit lighter than probably we had when we went into the year I don't think it's going to impact our our estimate of profitability, but I think.

Jay Hennick: I don't think it's going to impact our estimate of profitability, but I think realistically looking at fundraising for the balance of the year might be slightly below where we expect.

Speaker Change: Realistically looking at at at fund raising for the balance of the year might be slightly below where we expect.

Jay Hennick: Okay, that's good color. Thanks, Jay.

Chris McLernon: Okay, that's that's a good color. Thanks, Jay. And then maybe just turning to the capital markets side of the business, obviously, a nice, modest positive inflection in the quarter. Just curious if you can give a little bit of color on what you're hearing on the ground from your broker network and what your pipeline of visibility or what your visibility looks like into the pipeline for activity into the balance of this year as well as into 2025.

Steve: Okay.

Steve: That's good color thanks, Jay.

Stephen Sheldon: And then maybe just turning to the capital markets side of the business, obviously a nice, modest positive inflection in the quarter.

Speaker Change: And then maybe just turning to the capital markets side of the business obviously.

Steve: Nice.

Jay Hennick: Modest positive inflection in the quarter.

Chris McLernon: Just curious if you can give a little bit of color into what you're hearing on the ground from your broker network and what your pipeline of visibility or what your visibility looks like into the pipeline for activity into the balance of this year as well as into 2025.

Speaker Change: Just curious if you can give a little bit of color into what youre hearing on the ground from your from your broker network and what your pipeline of visibility or what your visibility looks like into the pipeline for activity into the balance of this year as well as into 2025.

Chris McLernon: Hey, Stephen, it's Chris here in regards to your question. I'd say sentiment is shifting to more positive about what for sure. As there's more certainty in the interest rates of the coming down, we've seen reductions in Canada, the ECB, and now the UK today. So, you know, there's a lot of confidence that the Fed will do the same thing sometime in the fall. So what we're seeing is that there's a huge increase in activity, a lot more meetings, a lot more pipeline. Our pipeline is growing.

Steve: Hey, Stephen it's Chris here.

Chris McLernon: Hey Stephen, it's Chris here. In regards to your question, I'd say sentiment is shifting to a more positive outlook for sure. As there's more certainty and interest rates will be coming down, we've seen, you know, reductions in Canada, the ECB, and now the UK today. So, you know, there's a lot of confidence that the Fed will do the same thing sometime in the fall.

Stephen Macleod: As to your question I'd say sentiment is shifting to more positive for sure.

Speaker Change: As theres more certainty in the interest rates have been coming down we've seen.

Speaker Change: <unk> in Canada.

Speaker Change: ECP in the UK today so.

Speaker Change: Theres a lot of confidence that the fed will do the same thing sometime in the fall. So what we're seeing is that there is a huge increase in activity a lot more meetings a lot more pipeline our pipeline is growing.

Chris McLernon: So what we're seeing is that there's a huge increase in activity, a lot more meetings, a lot more pipeline, our pipeline is growing. And, but we don't expect, you know, in the Transcribed by https://otter.ai normalized market, probably into 25, we think it's going to be more of a gradual approach to increasing market activity. The other thing that I could tell you is that, you know, the last 18 months have been incredibly slow on, you know, the investment volume, and it's been smaller bets of, you know, 25 to 100 million.

Chris McLernon: And, but we don't expect, you know, a normalized market, you know, probably into 25. We think it's going to be more of a gradual approach to increasing the market activity. The other thing that I could tell you is that, you know, the last 18 months have been incredibly slow on, you know, the investment volume, and it's been smaller tickets of 25 to 100 million. And now we're starting to see, you know, a few larger 100 million-plus transactions in the different regions. And this will start to set the transparency of pricing and probably spur more transaction activity.

Steve: And but.

Steve: But we don't expect.

Steve: Normalized market.

Steve: Probably into into 'twenty, five we think it's going to be more of a gradual approach.

Jay Hennick: Jay to increasing the market activity.

Steve: The other thing that I can tell you is that the last 18 months have been incredibly slow.

Steve: The investment volume and Thats been smaller tickets of $25 million to $100 million.

Chris McLernon: And now we're starting to see, you know, a few larger 100 million plus transactions in the different regions. And this will start to improve the transparency of pricing and probably spur more transaction activity. So, you know, I think we're very well positioned to take advantage of the pending improvements. And we look forward to leveraging, you know, our great teams and platform going forward.

Steve: And now we're starting to see a few larger $100 million plus transactions in the different regions and this will start to set the transparency of pricing and probably spur more transaction activity. So.

Chris McLernon: So, you know, I think we're very well positioned to take advantage of the pending improvements, and we look forward to leveraging our great teams and platform going forward.

Steve: I think we're very well positioned to take advantage of the pending improvements and we look forward to leveraging our great teams and platform going forward.

Stephen Sheldon: Okay, that's great.

Stephen Macleod: Okay, that's great. Thanks, Chris. Thanks, guys. I appreciate it.

Steve: Okay. That's great. Thanks, Chris Thanks, guys appreciate it.

Stephen Sheldon: Thanks, Chris. Thanks, guys. Appreciate it. Thank you.

Steve: Okay.

Operator: Thank you. Your next question is from Stephen Sheldon of William Blair. Please ask your question.

Speaker Change: Thank you.

Stephen Sheldon: Your next question is from Stephen Sheldon from William Blair; please ask your question. Hey, thanks. The nice results here. First just in outsourcing and advisory, continue good growth there, but a little deceleration year every year.

Speaker Change: Your next question is from Stephen Sheldon from William Blair. Please ask your question.

Stephen Sheldon: Hey, thanks. Some nice results here. First, just in outsourcing and advisory, continued good growth there, but a little deceleration year over year. So anything to call out in terms of what's driving that slowdown? Was that driven by any specific business units within that segment? And how are you thinking about underlying growth there over the rest of the year, excluding obviously the inorganic boost from OnGlobe that'll be coming on?

Stephen Sheldon: Hey, Thanks, and nice results here first just in outsourcing and advisory continued good growth there, but a little deceleration year over year, so anything to call out in terms of what's driving that slowdown was that driven by any specific business units.

Stephen Sheldon: So anything to call out in terms of what's driving that slowdown, was that driven by any specific business units within that segment, and how are you thinking about underlying growth there over the rest of the year, excluding obviously the inorganic boost from ongoing that'll be coming on.

Speaker Change: Within that segment and how are you thinking about underlying growth there over the rest of the year. Excluding obviously the inorganic this for Manuel that'll be coming on.

Steve: Yes.

Christian Mayer: Yes, Stephen. I mean, the one thing I'd point out there is just ongoing flatness and evaluation business. As you know, our clients are on retainers there, and the new flow comes from capital markets transactions, which are still at depressed levels. So the evaluation revenues, as a result, were pretty flat in the quarter.

Christian Mayer: Yeah, Stephen, the one thing I'd point out there is just ongoing flatness in our valuation business. As you know, our clients are on retainers there, and the new flow comes from capital markets transactions, which are still at depressed levels. So the valuation revenues, as a result, were pretty flat in the quarter. On a full year basis, obviously, as I noted in my comments, we expect mid to high single-digit growth in outsourcing and advisory revenue overall, and I'd say we're well on track to achieve that.

Steve: Yes, Stephen I mean, the one thing I'd point out there is just ongoing flatness in our evaluation business as you know our clients are on retainers there.

Steve: And.

Steve: The new flow comes from capital markets transactions, which are still at depressed levels. So.

Steve: The the valuation revenues results were pretty flat in the quarter.

Stephen Sheldon: On a full year basis, obviously, I noted in my comments, we expect mid-diastinal digit growth in outsourcing and advisory overall, and I'd say we're well on track to achieve that. Got it. Makes a lot of sense.

Speaker Change: On a full year basis, obviously I noted in my comments, we expect.

Speaker Change: Mid to high single digit growth in.

Steve: And outsourcing and advisory overall, and I'd say, we're well on track.

Steve: To achieve that.

Stephen Sheldon: Got it. Makes a lot of sense. And then, yeah, for Christian, any framework on how we should think about interest expense over the rest of the year as we think about our models, especially with, I'd assume, a likely increase in capital from the acquisition. Yeah, certainly and Globe. You know, we

Speaker Change: Got it it makes a lot of sense and then Christian any framework on how we should think about interest expense over the rest of the year as we think about our models, especially with.

Christian Mayer: And then yet for Christian, any framework on how we should think about interest expense over the rest of the years, we think about our models, especially with how to assume a likely increase from capital in the acquisition. Yes, certainly, envelope. We raised capital earlier this year, as you know. That was applied to retain the revolver. That revolver has now been utilized to finance the envelope acquisition. Which is about 480 million U.S., when we closed on Monday. So you'll have to add that to your thinking as you map out the rest of the year for interest expense.

Christian: And that will likely increase from from capital on the acquisition.

Christian Mayer: Yeah, certainly Enblob. We raised capital earlier this year, as you know, that was applied to repay the revolver. That revolver has now been utilized to finance the Enblob acquisition, which is about $480 million US when we close on Monday. So you'll have to add that to your thinking as you map out the rest of the year for interest expense.

Christian: Yes, certainly envelope.

Speaker Change: We raise capital earlier this year as you know.

Speaker Change: That was applied to repay the revolver.

Speaker Change: That revolver has now been utilized to finance.

Speaker Change: Acquisition, which is about $480 million U S.

Speaker Change: We closed on Monday.

Speaker Change: To add that to your thinking as you map out the rest of the year for interest expense.

Christian Mayer: All right, thank you. Thank you.

Speaker Change: Alright, thank you.

Operator: Thank you. Your next question is from Jimmy Sean from RBC.

Speaker Change: Thank you. Your next question is from Jamie Sean from RBC capital markets. Please ask your question.

Himanshu Gupta: Your next question is from Jim H.

Himanshu Gupta: Sean from RBC Capital Markets. Please ask your question. Thanks. Obviously, a big, big quarter for the leasing business. I was wondering. Jamie, can you speak a little louder? We're having trouble hearing you. Give me a little louder, if you could. Sure. Can you hear me better now? A little better. Go. We're good.

Steve: Thanks.

Operator: Thanks. Jimmy, can you speak a little louder? We're having trouble hearing you.

Speaker Change: Obviously a big.

Jamie Sean: Quarter for the leasing business I was wondering Jimmy can you speak a little louder were having trouble hearing you give me a little louder a few cut.

Operator: Jimmy, a little louder if you could.

Operator: Sure, can you hear me better now? A little better.

Jamie Sean: Sure can you hear me better now.

Speaker Change: Little better.

Steve: Yeah.

Speaker Change: Got it.

Speaker Change: Yes.

Operator: Jimmy disconnected his line. We will proceed with the next one. It's from Himanshu Gupta from Scotiabank. Please ask your question.

Himanshu Gupta: Jamie.

Himanshu Gupta: Jamie, this connect that has line.

Steve: All right.

Steve: Jimmy a disconnected his line.

Himanshu Gupta: We will proceed with the next one. It's from H. Monshu Gupta from Scotia Bank. Please ask your question. Thank you, and good morning. So just on the leasing front, I mean, looks like leasing was better than expectations. And I think you mentioned about the office leasing strength in a number of markets. Can you speak to industrial leasing as well? I mean, is that an area of strength there as well? Yes, so Colliers has a strong industrial leasing and sales platform, and leasing and industrial was up 11% globally for us this year. So we continue to see some good strength there in industrial.

Speaker Change: We have requested with our next one is from Monster Gupta from Scotia Bank. Please ask your question.

Himanshu Gupta: Thank you and good morning. So just on the leasing front, I mean, it looks like leasing was better than expectations. And I think you mentioned the office leasing strength in a number of markets. Can you speak to industrial leasing as well? I mean, is that an area of strength there as well?

Monster Gupta: Thank you and good morning.

Monster Gupta: So just on the leasing front it looks like leasing was better than expectations.

Monster Gupta: And I think you mentioned about the office leasing sense in a number of markets.

Speaker Change: Can you speak to industrial leasing as well is that an area of sensitive as well.

Chris McLernon: Yes, so Colliers has a strong industrial leasing and sales platform, and leasing and industrial is up 11% globally for us this year. So we continue to see some good strength there in industrial.

Speaker Change: Yes, so colliers has a strong.

Speaker Change: <unk> leasing and sales platform.

Speaker Change: And <unk>.

Speaker Change: Leasing and industrial was up 11% globally for us this year so.

Speaker Change: We continue to see some good strength there in industrial.

Himanshu Gupta: Okay, and was it like mostly Americas? Are you beginning to see in Europe as well? We're seeing it in Europe as well.

Himanshu Gupta: Okay, and was it mostly Americas, or are you beginning to see them in Europe as well?

Speaker Change: Okay and was it like most of the Americas.

Speaker Change: They need to see in Europe as well.

Chris McLernon: We're seeing it in Europe as well.

Steve: We're seeing it in Europe as well.

Himanshu Gupta: Okay, thank you. And then just turning to the capital markets, again, you know, showing some stabilization and improvement. Would you say that you know, June was better than April and May? I mean, given the late moment, or was it, you know, like, across the book? I would say that, yeah, it was slightly better, you know, June. But, as I mentioned, you know, this is going to be a gradual increase in the activity. I don't think there's a, you know, major catalyst moment where there's going to be a rush of transactions. This is really going to grow into Q3 and Q4, and, you know, which, which I, I might add, it's all upside.

Speaker Change: Okay. Okay. Thank you.

Himanshu Gupta: Okay, okay, thank you. And then just turning to the capital markets, again, you know, showing some stabilization and improvement. Would you say that, you know, June was better than April and May? I mean, given the late moment, or was it, you know, like, across the board?

Speaker Change: And then just turning to the capital markets again, showing some stabilization and improvement.

Speaker Change: What do you see that June was better than April and May given the late movement or was it.

Speaker Change: Like across the book.

Chris McLernon: I would say that, yeah, it was slightly better in June, but as I mentioned, this is going to be a gradual increase in activity. I don't think there's a major catalyst moment where there's going to be a rush of transactions. This is really going to grow into Q3 and Q4 and, you know, probably, hopefully, normalize in 2025.

Speaker Change: I would say that yes. It was it was slightly better June.

Speaker Change: But as I mentioned this is going to be a gradual increase in the activity I don't think there is.

Speaker Change: Major catalyst moment, where theres going to be a Russian transactions. This is really going to grow into Q3, and Q4 and probably.

Speaker Change: Probably hopefully normalizing and 25%.

Jay Hennick: I mean, I might add, it's all upside if you think about it because Colliers has had, you know, great year-over-year growth across all sectors, with capital markets being flat compared to the prior year. So as capital markets come back, it impacts us greatly on the positive side, both in transactions itself, but let's not forget the large investment we made a couple of years ago in debt origination, debt placement, et cetera, Colliers Mortgage.

Speaker Change: Got it.

Speaker Change: I might add it's all upside if you think about it because colliers.

Chris McLernon: If you think about it, because Collier's has said, you know, great year-over-year growth across all sectors, with capital markets being flat to, you know, to the prior year. So as capital markets comes back, it impacts us greatly on the positive side, both in transactions itself. But let's not forget the large investment we made a couple of years ago in debt, debt origination, debt placement, et cetera, Collier's mortgage. And so there's a lot of upside, I would say, that is pent-up. That will start to come back gradually over time as Chris said. But, you know, the way we look at it is it's just net upside for us.

Speaker Change: As said.

Speaker Change: Great year over year growth across all sectors with capital markets being flat to up to two for the prior year. So as capital markets comes back it impacts us greatly on the positive side, both both in transactions itself, but let's not forget the large.

Speaker Change: Investment, we made a couple of years ago.

Speaker Change: In.

Speaker Change: Debt origination debt placement et cetera, colliers mortgage and so.

Jay Hennick: And so there's a lot of upside, I would say, that is pent up and that will start to come back gradually over time, as Chris said, but the way we look at it is it's just net upside for us and just another catalyst for the future.

Speaker Change: There is a lot of upside I would say that as pent up that.

Speaker Change: That will start to come back gradually over time, as Chris said, but.

Chris McLaren: The way we look at it is it's just net upside for us and just another catalyst to to the future.

Chris McLernon: And just another catalyst to the future.

Himanshu Gupta: Got it. Thank you.

Speaker Change: Got it and just.

Chris McLernon: Just add to the conversation, you know, another sign that the market is turning is that land is being transacted again. And so in Q2, land was 19% of our overall sales. So that's a positive sign.

Speaker Change: Ed.

Chris McLernon: Just to add to the conversation, you know, another sign that the market is turning is that land is being transacted again. And so, in Q2, land was 19% of our overall sales. So that's a positive sign.

Ed: Just to add to the conversation.

Ed: There are sign that the market is turning as that.

Speaker Change: Land is being transacted again, and so in Q2.

Speaker Change: <unk> was 19% of our overall sales so that's a positive sign.

Himanshu Gupta: Got it. Thank you.

Chris McLernon: Thank you. And then, you know, as you mentioned that, you know, capital markets could be normalizing, let's say, next year. What's your definition of normal? I mean, is it, you know, the elevated COVID period, you know, 2021-22? Or are we talking about the pre-pandemic period? I mean, how do you, like, where does the final capital markets say in the shirtlet? I mean, I think what we're hoping is that it gets to the 10-year average, you know, in terms of investment volumes. Okay. And the other thing to think about here is that, you know, if you look over the past three or four years, we've acquired a business in the Nordics, which is a leader in capital markets, which added, you know, tremendous skill set in that area.

Speaker Change: Got it thank you.

Speaker Change: And then as you mentioned.

Speaker Change: Debut market could be normalizing, let's see next year.

Speaker Change: What's your definition of normal.

Speaker Change: Is it.

Speaker Change: Elevated COVID-19 <unk> 2021 'twenty two are we talking to prevent that exceeded and then how do you like where does defined the capital markets day in the second Act.

Himanshu Gupta: And then, you know, as you mentioned that, you know, capital markets could be normalizing, let's say, next year. What's your definition of normal? I mean, is it, you know, the elevated COVID period, you know, 2021, 22? Or are we talking about the pre-pandemic period?

Speaker Change: And then I think what we're hoping is that it gets to the 10 year average.

Chris McLernon: I mean, how do you, like, where does the final capital market statement settle at?

Speaker Change: In terms of investment volumes.

Chris McLernon: I mean, I think what we're hoping is that it gets to the 10-year average, you know, in terms of investment volume.

Chris McLernon: Okay, okay. And the other thing to think about here is that, you know, if you look over the past three or four years, we've acquired a business in the Nordics, which is a leader in capital markets, which has added, you know, a tremendous skill set in that area. We've also been recruiting folks in capital markets, debt advisors, as well as capital market sales professionals. So our capacity is now stronger than it ever has been in this space. And certainly, you know, that that will be additive as well.

Speaker Change: Okay. Okay.

Speaker Change: I think about here is that if you look over the past three or four years, we've acquired a business in the Nordics, which is a leader in capital markets, which added.

Speaker Change: Tremendous skill set in that area. We've also been recruiting folks in capital markets.

Chris McLernon: We've also been recruiting folks in capital markets, debt advisors, as well as capital market sales professionals, sort of capacity. I think now is stronger than it ever has been in this space. And certainly, you know that will be added with as well.

Speaker Change: Net advisors as well as.

Speaker Change: Capital market sales professionals. So our capacity I think now is stronger than it ever has been.

Speaker Change: In this space.

Speaker Change: And certainly that will be additive as well.

Himanshu Gupta: Thank you for that. My last question is on investment management. I think the Q2 EBITDA margin came a bit lower. I mean, it looks like you're doing some investments, some additional expenses. So can you speak to that?

Himanshu Gupta: Thank you for that.

Speaker Change: Thank you for that.

Christian Mayer: Last question is on investment management. I think Q2, a bit margin came a bit lower. I mean, looks like you're doing some investment, some additional expenses. So can you speak to it? And then, are they done, or should we continue to see increased investments for the rest of the year? Yeah, I mentioned we've been making investments in an investment management resources and infrastructure over the last year or so, adding capability on fundraising, which means staff and the related costs associated with that staff. It also means spending on new strategies, so that is legal fees to set up new funds, advisory fees, other costs that those funds up, and then to execute on those new funds, you know, some new people to run those funds and to execute on their asset acquisition plans and so forth.

Speaker Change: Last question is on investment management, I think Q2, EBITDA margin came a bit lower I mean, it looks like youre doing some investment and some additional expenses. So can you speak to it.

Christian Mayer: And then, are they done, or should we continue to see increased investment for the rest of the year?

Speaker Change: And then are the.

Speaker Change: <unk> done or should we continue to see increased investments for the rest of the year.

Christian Mayer: Yeah, Himanshu, we've been making investments in investment management resources and infrastructure over the last year or so, adding capability in fundraising, which means staff and the related costs associated with that staff. It also means spending on new strategies, so that is legal fees to set up new funds, advisor fees, and other costs to set those funds up. And then to execute on those new funds, you also need people to run those funds and to execute on their asset acquisition plans, and so forth.

Speaker Change: Yes, I mean, I'm sure, we've been making investments and investment management.

Speaker Change: Our resources and infrastructure.

Speaker Change: Over the last year.

Speaker Change: So adding capability.

Speaker Change: On fundraising, which means staff and the related costs associated with that staff.

Speaker Change: Also means.

Speaker Change: Spending on new strategies, so that is legal fees to setup, new funds advisory fees other costs set those funds up and then to execute on those new funds can you also need people.

Speaker Change: To do.

Speaker Change: To run those funds and to execute on that.

Speaker Change: Sure.

Speaker Change: On their asset acquisition plans and so forth. So I think back to you to see some of those costs in the EBITDA result over the next little while.

Christian Mayer: So I think we're going to continue to see some of those costs in the result over the next little while, but as the fundraising picks up, you know, the revenue will exceed, you know, the incremental costs and we'll see some margin rebound.

Christian Mayer: So, I think we're going to continue to see some of those costs in the result over the next little while. But as the fundraising picks up, the revenue will exceed the incremental costs, and we'll see some margin rebound. Good.

Speaker Change: But as the fundraising picks up.

Speaker Change: The revenue will exceed.

Speaker Change: The incremental costs and we'll see some margin <unk>.

Speaker Change: <unk>.

Himanshu Gupta: Good. Fair enough. Thank you so much. I'll turn it back over to you.

Speaker Change: Got it fair enough. Thank you so much I'll jump back.

Himanshu Gupta: Thank you so much.

Himanshu Gupta: I'll jump back. Thank you.

Operator: Thank you. Your next question is from Frederic Bastien from Raymond James. Please ask your question.

Speaker Change: Thank you. Your next question is from Patrick with Boston from Raymond James Please ask your question.

Daryl Young: Your next question is from a graduate question from Raymond James. Please ask your question. Hi, good morning. Great to see you again for the scale in engineering and also nice to see your stock being rewarded with an improved valuation here.

Patrick: Hi, good morning.

Patrick: Right.

Frederic Bastien: Well, great to see you gain further skill in engineering and also nice to see your stock being rewarded with an improved valuation here. Jay, as you look to surface additional value and as the engineering and investment management businesses continue to grow in size, does it make sense to start considering another split, basically a repeat of what you did with First Service in 2015?

Patrick: Great to see you gain further scale and engineering and also nice to see your stock being rewarded with an improved valuation here now.

Jay Hennick: Now, Jay, as you look to surface additional value and as the engineering and investment management businesses continue to grow in size, does it make sense to start considering another split, basically a repeat of what you did with FirstService in 2015? Well, friend, you've known us for a long time, so we consider, you know, all kinds of options, I don't know, daily, maybe three times a day. So we're always looking at those opportunities, you know, for investment management in particular. We're doing lots of great things. As Christian mentioned, we're investment spending in that, in that business to increase the number of investment strategies we have. We've invested in technology, we've invested in people, and fundraising is a little soft.

Jay Hennick: Jay as you look to surface additional value and as the engineering investment management businesses.

Speaker Change: To grow in size.

Speaker Change: Does it make sense to start considering another split basically a repeat of what you did with <unk> for service in 2015.

Jay Hennick: Well, Fred, you've known us for a long time. So we consider, you know, all kinds of options, I don't know, daily, maybe three times a day. So we're always looking at those opportunities. You know, for investment management in particular, we're doing lots of great things. As Christian mentioned, we're investing spending in that business to increase the number of investment strategies we have. We've invested in technology, we've invested in people, and fundraising is a little soft.

Jay Hennick: Well, Fred you've noticed for a long time, so we consider all kinds of options I don't know daily maybe three times a day. So we're always looking at those.

Speaker Change: Those opportunities.

Speaker Change: For.

Speaker Change: For investment management in particular.

Speaker Change: We're doing lots of great things as Christian mentioned, where investment spending.

Christian: In that in that business to increase the number of investment strategies, we have with <unk>.

Speaker Change: Invested in technology, we've invested in people and fund raising is a little soft. So we wouldn't do any there is no rush to do anything until we have good momentum and good straight the strength going forward and we're building it one step at a time as we always always have.

Jay Hennick: So we wouldn't do any; there's no rush to do anything until we have good momentum and good strength going forward, and we're building it, you know, one step at a time as we always, always have. But we're going to have to look at those kinds of things, generating incremental share value because, you know, as you know, company like callers, which is as well managed as it is and global in proportion and great growth engines, you know, we believe that we're trading at substantially below the value that we should be trading at on an ordinary, in a normal circumstance.

Jay Hennick: So there's no rush to do anything until we have good momentum and good strength going forward. And we're building it, you know, one step at a time, as we always have. But we're going to have to look at those kinds of things, generating incremental share value, because, you know, as you know, a company like Colliers, which is as well managed as it is, and global in proportion, and has great, great growth engines, you know, we believe that we're trading at substantially below the value that we should be trading at on an ordinary, in a normal circumstance. So yes, we're considering all options. But there's no rush for us.

Speaker Change: But.

Speaker Change: We're going to have to look at those kinds of things generating incremental share.

Speaker Change: Sure value because.

Speaker Change: As you know.

Speaker Change: A company like Colliers, which is as well managed as it as it is in global in proportion and great great growth engines.

Speaker Change: We believe that we're trading at substantially below the value that we should be trading at on an ordinary.

Speaker Change: And then in a normal circumstance. So yes, we're considering all options.

Jay Hennick: So yes, we're considering all options, but there's no rush for us. Thanks, Jay, that's the answer I was looking for. That's all I have. Thank you. Thanks.

Speaker Change: But there is no rush for us.

Frederic Bastien: Awesome. Thanks, Jay. That's the answer I was looking for. That's all I have. Thank you.

Speaker Change: Awesome. Thanks, Jay that's yeah, that's what I was looking for it that's all I have thank you.

Speaker Change: Thanks.

Jake Mishin: Thank you. Your next question is from Jake Mishin from RBC Capital Markets. Please ask your question. Thank you. Sorry about that earlier.

Operator: Thank you. Your next question is from Jamie Shen from RBC Capital Markets. Please ask your question.

Speaker Change: Thank you.

Speaker Change: Our next question is from Jamie Shen from RBC capital markets. Please ask your question.

Jamie Shen: Thank you. Sorry about that earlier. My question was about leasing revenue, and how are you thinking about revenue growth in the back half of the year?

Jamie Shen: Thank you.

Jamie Shen: Sorry about that earlier my question was about the leasing revenue and how you're thinking about the revenue growth in the back half of the year.

Jake Mishin: My question was about the leasing revenue and how you thinking about the revenue growth in the back half of the year. Yeah, so I think, you know, the revenue growth from leasing will continue at this pace. As we see, you know, the leasing is usually linked to GDP growth. And as there's more confidence in the economy, we'll continue to see leasing strength. Okay, so that's 13%. You don't see that as a bit of an anomaly, or that that is a reflection of sort of the catch up of prior leasing decisions by tenants being delayed. It's sort of it's more of a function of a recovery of the market as opposed to a catch up that would that be fair.

Chris McLernon: Yeah, so I think, you know, the revenue growth from leasing will continue at this pace. As we see, leasing is usually linked to GDP growth. And as there's more confidence in the economy, we'll continue to see leasing strength.

Speaker Change: Yes, so I think.

Speaker Change: The revenue growth from leasing will continue at this pace.

Speaker Change: As we see the leasing usually linked to GDP growth and if there is more confidence in the economy, we will continue to see lease leasing strength.

Speaker Change: Okay. So that 13% you don't see that as a bit of an anomaly or that or that that is a reflection of the catch up of prior leasing decisions by tenants being delayed.

Jamie Shen: Okay, so that 13%, you don't see that as a bit of an anomaly or that it is a reflection of sort of the catch-up of prior leasing decisions by tenants being delayed, more of a function of a recovery of the market as opposed to a catch-up. Would that be fair?

Speaker Change: It's more of a function of a recovery of the market as opposed to a catch up with.

Speaker Change: Would that be fair.

Jay Hennick: Well, I mean, look, Jamie, leasing is at 8% here to date. I think in that range is a good number for the full year. You know, we can't predict when leasing activity is going to fall exactly when it's going to occur exactly, as a better way to put it. But certainly, you know, there are strong signs, as Chris mentioned, to continue growth. And yet, you know, the other thing I would mention just from a standpoint of, you know, looking at the components of our business and realizing value: you know, leasing has demonstrated over this entire period that it is as resilient as the other pieces of our business.

Chris McLernon: Well, I mean, look, Jamie, leasing is up 8% year to date. I think in that range is a good number for the full year. You know, we can't predict when leasing activity is going to fall exactly or when it's going to occur exactly. That's a better way to put it. But certainly, you know, there are strong signs, as Chris mentioned, of continued growth.

Speaker Change: Well I mean look Jamie leasing is up 8% year to date.

Jamie: I think in that range is a good number for the full year.

Speaker Change: We can't predict when leasing activity is going to fall exactly.

Jamie Sean: But it's going to occur exactly that's a better way to put it.

Jamie Sean: But certainly.

Jamie Sean: There are strong signs as Chris mentioned.

Chris McLaren: Two continued growth.

Jay Hennick: And yet, you know, the other thing I would mention, just from a standpoint of looking at the components of our business and realizing value, leasing has demonstrated over this entire period that it is as resilient as the other pieces of our business. In fact, more so, it's almost recurring in nature, if you take a look at it, going back quarter for quarter over the same, you know, let's call it 24 months. That has impacted capital markets.

Speaker Change: I think the other thing I would mention just from a standpoint of.

Chris McLaren: Looking at the components of our business and realizing value.

Speaker Change: Leasing has demonstrated over this entire period that it is as resilient as the other pieces of our business in fact more so it's almost recurring in nature. If you. If you take a look at it going back order per quarter over the same.

Jay Hennick: In fact, more so, it's almost recurring in nature. If you take a look at it going back order for quarter over the same, you know, let's call it 24 months that has impacted capital markets. So, you know, when you step back and you look at this business and you take a look at the various component parts, the only part that is really cyclical is capital markets. The rest is very consistent, give or take. And leasing is surely demonstrated that to me over the course of the last couple of years.

Speaker Change: Let's call. It 24 months that that that has impacted capital markets. So.

Jay Hennick: So, you know, when you step back and you look at this business, and you take a look at the various component parts, the only part that is really cyclical is capital markets. The rest is very, very consistent, give or take, and leasing has surely demonstrated that to me over the course of the last couple of years.

Speaker Change: When you step back and you look at this business and.

Speaker Change: And you take a look at the various component parts.

Jamie Sean: The only part that is really cyclical is capital markets. The rest is very deep.

Jamie Sean: Very consistent give or take and leasing is surely demonstrated that to me.

Jamie Sean: Over the course of the last couple of years.

Jake Mishin: Yeah, that makes sense.

Speaker Change: Yes, no that makes sense and then you mentioned the loan origination business seeing big growth I wanted.

Chris McLernon: And then you mentioned the loan origination business seeing big growth. What sort of growth did you see in the quarter, and how big of a business is that now relative to the overall capital markets business?

Jay Hennick: And then you mentioned the loan origination business, seeing big growth. I wanted what sort of growth did you see in the quarter? And how big of a business is that now? So relative to the overall capital markets business? Yeah, so it's still quite small on an overall basis. We saw tremendous growth in loan origination during the quarter, up, you know, almost double the prior year's quarter. But we are seeing as the profitability per loan being originated is lower, and the mix is a little bit different. The Fannie Bay GSE originations are more profitable. Those have not rebounded to levels we saw previously.

Speaker Change: What sort of growth did you see in the quarter and how big of a business is that now.

Speaker Change: So relative to the overall capital markets business.

Chris McLernon: Yeah, so it's still quite small on an overall basis. We saw tremendous growth in loan origination during the quarter, up, you know, almost double the prior year's quarter. But what we are seeing is the profitability per loan being originated is lower, and the mix is a little bit different. The Fannie Mae, and GFC originations are more profitable. Those have not rebounded to levels we saw previously. However, there's a lot of refinancing happening in multifamily.

Speaker Change: Yes, so it's still quite small on an overall basis.

Speaker Change: <unk> tremendous growth.

Speaker Change: Loan origination during the quarter up almost double the prior year's quarter.

Speaker Change: But we are seeing is the profitability per loans being originated is lower and the mix was a little bit different.

Speaker Change: The Fannie Mae GSE originations are more profitable those have not rebounded to levels. We saw previously.

Jay Hennick: There's a lot of refinancing happening in multifamily. There are debt funds and other investors coming in with short-term capital on these. And we are participating in placing that debt. But a lower margin is because it's not the same as doing a Fannie Bay type of origination, and that doesn't have the same kind of profit potential. So it's a nice part of our business. We generate today a little bit north of 100 million revenue in that segment, but has potential to be significantly more than that as the market rebounds.

Jamie Sean: There's a lot of refinancing happening in multifamily there are debt funds and other investors coming in with short term capital on these and we are participating in placing that debt.

Chris McLernon: There are debt funds and other investors coming in with short-term capital on these, and we are participating in placing that debt, but at lower margins because it's not the same as doing a Fannie Mae type of origination and doesn't have the same kind of profit potential. So it's a nice part of our business. We generate today a little bit north of $100 million in revenue in that segment, but it has the potential to be significantly more than that as the market rebounds.

Speaker Change: Lower margins because it's not the same as doing a Fannie Mae type of origination and it doesn't have the same kind of profit potential.

Speaker Change: So it's a nice part of our business, we generate today over north of a 100 by in our revenue.

Speaker Change: That segment, but has potential to be significantly more than that.

Speaker Change: As the market rebounds.

Chris McLernon: And another key factor of the growth in this area is our recruitment. So we've had a number of strong recruits both in Canada and in the U.S. bolstering this business.

Jay Hennick: Another key factor of the growth in this area is our recruitment. So we've had a number of strong recruitments both in Canada and the US, both during this business. It's not yet really paid yet because of the slowness in capital markets. Again, it's another segment of our business that's there. We have a national platform both in Canada and the U.S. and we haven't realized the benefits yet. And to us, it's just upside over the next couple of borders we hope are, you know, longer.

Speaker Change: Another key factor of the growth in this area as a recruitment. So we've had a number of strong recruitment both in Canada and the U S. Bolstering this business.

Chris McLernon: And it's not yet really paid off yet because of the slowness in capital markets. Again, it's another segment of our business that's there. We have a national platform, both in Canada and the U.S., and we haven't realized the benefits yet. And to us, it's just upside over the next couple of quarters, we hope, or longer.

Speaker Change: So there is not yet really paid yet because of the slowness in capital markets again, it's another segment of our business. That's there we have a national platform, both in Canada, and the U S and we havent realized the benefits yet and to us it's.

Speaker Change: It's just upside over the next couple of quarters, we hope or.

Speaker Change: Longer.

Jake Mishin: Okay. All right.

Speaker Change: Okay Alright.

Jamie Shen: Okay. All right, thank you.

Speaker Change: Alright, thank you.

Operator: Thank you. Your next question is from Daryl Young from Staple. Please ask your question.

Speaker Change: Thank you. Your next question is from <unk> Yang from Stifel. Please ask your question.

Daryl Young: Your next question is from Daryl Young, Gum Staple. Please ask your question. Hey, good morning, everyone. I just had one on the end glowback position. I just wondering if there's any cross-border element to this in terms of leveraging some of the specialty capabilities that Anglop has into the U.S. team. And then also how you're thinking about building from here. I know you've mentioned there's tuck under opportunities from here, but are you out of scale now that you can start recruiting professionals organically? And this starts to really spool up the organic growth side of things on maybe even a global basis.

Yang: Hey, good morning, everyone.

Daryl Young: Hi everyone. I just had one on the Englobe acquisition. I'm just wondering if there's any cross-border element to this in terms of leveraging some of the specialty capabilities Englobe has into the U.S. team, and then also how you're thinking about building from here. I know you've mentioned there are hidden opportunities from here, but are you at a scale now that you can start recruiting professionals organically, and this starts to really spool up the organic growth side of things on maybe even a global basis?

Yang: I just had one on the on the <unk> acquisition.

Yang: Wondering if there's any cross border element to this.

Speaker Change: In terms of leveraging some of the specialty capabilities Anglo pads into the U S team.

Speaker Change: And then also how you're thinking about building from here I know you've mentioned there is tucked under opportunities.

Speaker Change: From here, but are you at a scale now that you can start recruiting professionals organically as it starts to really spool up the organic growth side of things and maybe even at a global basis.

Jay Hennick: So let me unpack a couple of those things. First of all, one of the beauties of Anglop was that it was entirely a Canadian platform that was coast to coast. And we see a great opportunity to continue to consolidate and strengthen that business across Canada. The other thing that people don't really appreciate is that, in addition to Anglop, Collier's project leaders is the largest project management firm in Canada by a country mile. And all of the other engineering firms have project management. And at Anglop, has no project management. And if you put the two of them together, Anglop might be one of the top three or four players in Canada.

Jay Hennick: So let me unpack a couple of those things. First of all, one of the beauties of Englobe was that it was entirely a Canadian platform from coast to coast. And we see a great opportunity to continue to consolidate and strengthen that business across Canada. The other thing that people don't really appreciate is that, in addition to Englobe, Colliers Project Leaders is the largest project management firm in Canada by a country mile. And all of the other engineering firms have project management in them. Englobe, however, has no project management in it.

Speaker Change: So let me let me unpack a couple of those things first of all one of the beauties of Anglo was that it was entirely a Canadian platform that was coast to coast and.

Speaker Change: We see a great opportunity to continue to consolidate and strengthen that business across Canada. The other thing that people don't really appreciate.

Speaker Change: Is that in addition to and globe.

Speaker Change: Colliers project leaders as the largest project management firm in Canada by a country mile.

Speaker Change: And all of the other engineering firms that project management and it and Globe is no project management in it if you put the two of them together and globe might be what are the top three or four players in Canada.

Jay Hennick: If you put the two of them together, Englobe might be one of the top three or four players in Canada. So we're very excited about that acquisition. We're very excited to be able to marry the relationships between Colliers Project Leaders and Englobe, which will be rebranded as Colliers over time. And so that's sort of the first question you ask.

Jay Hennick: So we're very excited about that acquisition. We're very excited to be able to marry the relationships between Collier's project leaders and Anglop, which will be rebranded as Collier's over time.

Speaker Change: So we're very excited about that acquisition, we're very excited to be able to marry the relationships between Capa Colliers project leaders and and globe, which will be rebranded as colliers over time and so that's sort of the first question. You asked the second question is there was a law.

Christian Mayer: And so you know, that's sort of the first question. You asked the second question: is there a lot of international, primarily right now, US, Canada, business, and more importantly, perhaps, is expertise in certain areas that can be transferred Canada to US, US, Canada. And professionals can work on the same types of projects regardless of the border. So we see over time that accelerating. And obviously for Canadian investors, you'll know that the costs, the labor costs in Canada are actually lower than the labor costs on average in the US. And so there's some opportunities, I think, to gain some additional synergies there.

Jay Hennick: The second question is, there is a lot of international, primarily right now, US, and Canadian, business, and more importantly, perhaps, is expertise in certain areas that can be transferred. Canadians, Americans, US, Canadians, and professionals can work on the same types of projects, regardless of the border. So we see that over time this acceleration. And obviously, for Canadian investors, you'll know that the costs, the labor costs in Canada are actually lower than the labor costs on average in the US.

Speaker Change: A lot of international primarily right now U S Canada.

Speaker Change: Business and more importantly, perhaps is expertise in certain areas that can be transferred.

Speaker Change: Canada U S U S Canada.

Speaker Change: And professionals can work on the same types of prop projects, regardless of regardless of the border. So we see over time that accelerating.

Speaker Change: And obviously for Canadian investors, you'll know that the the costs of labor costs in Canada are actually lower than the labor costs on average in the U S and so theres some opportunities I think to gain some additional synergies there. So as Christian said in his comments, we're very excited about that.

Jay Hennick: And so there's some opportunities, I think, to gain some additional synergies there. So, as Christian said in his comments, we're very excited about that acquisition. We had our eye on that for probably years, four years. And, and it had to work its way through the system. But for us, it was the perfect addition.

Christian Mayer: So as Christian said in his comments, we're very excited about that acquisition. We had our eye on that for probably years, four years. And it had to work its way through the system. But for us, it was the perfect addition. And it filled us out in North America.

Speaker Change: Acquisition.

Speaker Change: We had our eye on that for probably.

Erez: Erez for years.

Speaker Change: And it has to work its way through the system, but for US. It was the perfect addition, and then fill this out in North America, but we see great growth opportunities for that business in Europe, and obviously, Australia is growing rapidly in New Zealand.

Jay Hennick: And it filled us out in North America, but we see great growth opportunities for that business in Europe. And obviously, Australia is growing rapidly in New Zealand. And so, we think that there'll be lots of growth yet to come over the coming years.

Christian Mayer: But we see great growth opportunities for that business in Europe. And obviously, Australia is growing rapidly in New Zealand. And so we think that there'll be lots of growth yet to come over the coming years.

Erez: And so so we think that there'll be lots of growth yet to come.

Speaker Change: Over the coming years.

Christian Mayer: Just to add to that, Jay, I think Daryl was asking specifically about Canadian Tuck-in opportunities, and I do think there are a significant number of Tuck-in opportunities for us, and we've got a pipeline already that we're actively pursuing. So, we hope to be able to execute on a few of those to build additional scale for En-Globe and additional practice areas, and additional geographic coverage for En-Globe in the years to come.

Christian Mayer: Just to add to that, Jay, I think Daryl was asking specifically about Canadian tucking opportunities, and I do think there are a significant number of tucking opportunities for us, and we've got a pipeline already that we're actively pursuing. So we hope to be able to execute on a few of those to build scale, additional scale for Enbulub and additional practice areas, additional geographic coverage for Enbulub and the years to come.

Speaker Change: Just to add to that Jay.

Jay Hennick: I think to start with us asking specifically about Canadian tuck in opportunities and I do think there are.

Jay Hennick: A significant number of tuck in opportunities for us and we've got a pipeline already that we're actively pursuing so we hope to be able to execute on a few of those.

Speaker Change: To build.

Speaker Change: Scale additional scale for envelope.

Speaker Change: <unk>.

Speaker Change: Additional practice areas additional geographic coverage for envelope in the years to come.

Daryl Young: Got it. That's a great color, guys. Thanks very much. I'll get back in the queue.

Speaker Change: Got it Thats great color guys. Thanks, very much I'll get back in the queue.

Daryl Young: That's a great color, guys. Thanks very much.

Daryl Young: I'll get back in the queue. Thank you.

Operator: Thank you once again. Please press star 1 should you wish to ask a question. There are no further questions at this time. Please proceed.

Speaker Change: Thank you once again, please press star one should you wish to ask a question.

Operator: Once again, please press door 1 to do wish to ask a question.

Operator: There are no further questions at this time. Please proceed.

Speaker Change: There are no further questions at this time. Please proceed.

Jay Hennick: Okay, thank you operator and thank everyone for participating, and we look forward to visiting again on our third quarter conference call.

Operator: Thank you, operator, and thanks everyone for participating, and we look forward to visiting again on our third quarter conference call. Thank you.

Speaker Change: Okay. Thank you operator, and thanks, everyone for participating and we look forward to visiting again on our third quarter conference call. Thank.

Speaker Change: Thank you.

Speaker Change: Yeah.

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

Speaker Change: Thank you.

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

Speaker Change: <unk> and gentlemen, this concludes the conference call. Thank you for your participation and have a nice day.