Colliers International Group Inc., a Canadian professional services and investment management company, experienced a significant increase in profit for the recent quarter, even though there was a slight decline in revenue and a slowdown in capital markets due to market conditions.

In the third quarter, Colliers reported net earnings of $25.1 million, or 53 cents per share, compared to $12 million, or 25 cents per share, in the same period last year. Despite this positive performance, the adjusted per-share earnings of $1.19 fell short of the $1.62 mean forecast by analysts polled by FactSet.

Revenue for the quarter decreased by 4.7% to $1.06 billion, in line with analysts' expectations.

Colliers saw a 14% increase in revenue for its outsourcing and advisory business, reaching $527.2 million. The investment management arm also showed growth with a 24% increase in revenue to $118.7 million. However, leasing revenue decreased by approximately 9% and revenue from capital markets operations dropped by 42%.

Founded in 1898 in British Columbia, Colliers acknowledged that there has been a further decline in transaction activity since mid-year. Factors such as rising interest rates, stricter credit conditions, and uncertainty about tenants' plans for returning to the office have affected the pace of transactions.

In response to these challenges, Colliers has revised its outlook and expects adjusted per-share earnings for this year to be between $5.10 and $5.50, compared to the previous forecast of $6.70 to $7.50. The company also forecasts revenue of $4.3 billion to $4.4 billion, revised from the earlier target of $4.4 billion to $4.6 billion. In the previous year, Colliers reported adjusted earnings of $6.99 on revenue of $4.5 billion.

Chairman and Chief Executive Jay Hennick expressed confidence in the long-term resilience of capital markets and leasing services, stating that they are essential for investors, owners, and occupiers of real estate assets. While they may be temporarily impacted, he believes they will rebound once the market stabilizes, possibly as early as the second half of 2024.

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