MADISON, NJ-Realogy Holdings Corp. had a strong third quarter fuled by home sales volume that exceeded the industry average, the company reported Monday. Net revenue for the quarter that ended Sept. 30 was $1.55 billion, a 21% increase compared to the same period in 2012.
The Madison, NJ-based brokerage firm, which went public last year, reported that adjusted EBITDA was $286 million for Q3, an increase of 27% year-over-year. Its adjusted net income for the quarter was $150 million.
“We had an outstanding third quarter,” Richard A. Smith, Realogy's chairman, CEO and president, comments. "Our 29% increase in year-over-year home sale transaction volume exceeded the 26% sales volume increase reported by the National Association of Realtors. While industry observers anticipated that the mortgage rate environment would slow the housing recovery, we now believe the exact opposite occurred—it accelerated.”
Looking ahead to the current quarter, though, Realogy EVP and CFO Anthony E. Hull says the company expects year-over-growth in home sales to continue, but “at a comparatively slower pace than the uncharacteristically strong fourth quarter of last year, which was influenced by the then-impending change in the capital gains taxes.” For the full year, Hull says, Realogy is expecting an increase in home sales of 17% to 19% compared to 2012, resulting in annual adjusted EBITDA for 2013 in the range of $785 million to $800 million, an increase of 16% to 19% year-over-year.
This past June, Realogy signed a 17-year lease for newly built corporate headquarters a 175 Park Ave. in Madison. It previously was headquartered in Parsippany.
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