BrokerageIndustry News

Realogy in the black for Q3

20% cut in expenses counters revenue drop

Real estate franchisor and brokerage Realogy Corp. said it turned a $58 million profit in the third quarter, thanks in part to a debt restructuring that allowed the company to claim a $75 million gain and stay in compliance with agreements governing nearly $3 billion in loans.Realogy said commission revenue was down 13 percent from a year ago, to $878 million -- the main factor driving a decline in net revenue of the same magnitude, to $1.17 billion.But Realogy cut expenses even more drastically -- by 20 percent, to $1.11 billion. Realogy reported a decrease of $89 million in commission expenses paid to real estate agents at company-owned offices as a result of a reduction in revenue and receiving a larger share of the commission-split rate.Realogy also reduced operating costs by 22 percent from a year ago, to $309 million, and slashed marketing expenditures for the quarter by 24 percent, to $38 million.At the end of September, Realogy had approximately 14,500 franchised and company-...