Bridgemarq Real Estate Services (BRE) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached CAD 126.8 million, up significantly from CAD 12.8 million year-over-year, driven by acquisitions and internalization of management.

• Net loss for Q3 was CAD 10.8 million ($1.14 per share), compared to net earnings of CAD 8.6 million ($0.26 per share) in the prior year, mainly due to a CAD 10.8 million fair value loss on exchangeable units.

• Adjusted net earnings for Q3 were CAD 2.7 million, down from CAD 3.7 million year-over-year, reflecting higher interest and amortization expenses.

• Free cash flow for Q3 increased to CAD 5.3 million from CAD 5.1 million last year.

• Dividend of CAD 0.1125 per share declared, maintaining a CAD 1.35 annualized rate, consistent with the prior year.

Financial highlights

• Revenue for the first nine months was CAD 249.2 million, up from CAD 37.6 million year-over-year.

• Gross commission income reached CAD 109.6 million in Q3, up from CAD 11.9 million year-over-year.

• Operating expenses increased to CAD 11.6 million from CAD 5.5 million year-over-year.

• Cash from operating activities was CAD 2.7 million, down from CAD 4.5 million year-over-year.

• Free cash flow per share was CAD 0.34, compared to CAD 0.40 in Q3 2023.

Outlook and guidance

• Early Q4 indicators show a 30% national year-over-year sales increase in October, with Greater Vancouver up 32% and GTA up 44%.

• Policy changes, including higher insured mortgage caps and lower interest rates, are expected to support market growth.

• CREA forecasts 5.2% growth in transaction activity and a 0.9% rise in average selling price for next year.

• Integration of acquired brokerages is expected to drive future growth and profitability.

• Management expects improved market conditions as borrowing costs decline and consumer confidence rises.