Insignia Financial Group Inc. reported Net EBITDA climbed 28% to$25.2 million. Its per share rate rose 18%. The convertiblepreferred stock issued this past February is being given the creditfor this particular rise. Service revenues rose 14% to $219.9million, attributable to growth of the commercial real estateoperation.

Thanks to its real estate operations, Insignia's income in thisarea rose 55%. "The strength of our commercial property servicesplatform in the United States and United Kingdom, coupled with ourgrowing presence in continental Europe, offset softer results fromour US residential businesses. Realty One's businesses have beenadversely affected primarily by higher mortgage rates," says AndrewL. Farkas, the current chairman and chief executive officer, in astatement accompanying the report. "While Douglas Elliman'sbusiness, exceptionally strong through the first half of 2000, hasreturned to a normal pace."

"Insignia remains our top pick within the property servicessector," saiys Marks and Chang. "Notably, this valuation assumesall of the company's Internet investments and initiatives areworthless." They continue, "For those worried about the real estatecycle and the brokerage business in general, remember what you saida year ago before cash flow grew by 40%. We encourage you to wakeup and take a look at this incredible value."Chang and Markspredicted that the net disbursement on Gordon's life insurancepolicy would give Insignia "additional financial flexibility."Gordon's passing in September left Insignia with $19.1 million innon-taxable income. In Insignia's reported financial results forthe third quarter 2000, the company acknowledges net income rose to$27 million or $1.11 per share, up from $5.4 million or $0.24 pershare for the third quarter of 1999, because of the proceeds fromthe policy.