Bridgemarq Real Estate Services (BRE) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached CAD 126.8 million, up from CAD 12.8 million year-over-year, driven by acquisitions and internalization of management completed on March 31st.

• 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 same quarter last 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 ($0.17 per share), down from CAD 3.7 million ($0.29 per share) 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; free cash flow per share was $0.34, compared to $0.40 in Q3 2023.

• Board approved a dividend of CAD 0.1125 per share, annualized at CAD 1.35, consistent with 2023.

Financial highlights

• Revenue for the first nine months was CAD 249.2 million, up from CAD 37.6 million in 2023.

• Gross commission income reached $109.6 million in Q3 2024, up from $11.9 million in Q3 2023.

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

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

• Franchise fees remained stable year-over-year after intercompany eliminations.

Outlook and guidance

• Early Q4 indicators show a boost in buyer activity, with October national sales up 30% year-over-year.

• CREA forecasts for 2025: transaction activity up 5.2%, average selling price up 0.9%.

• Management expects improved market conditions due to lower interest rates, supportive government policies, and anticipated further Bank of Canada rate cuts.

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