BrokerageIndustry News

Realogy IPO costs weigh on earnings

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Costs associated with its October initial public offering pushed Realogy Holdings Corp. into the red during the fourth quarter, although adjusted earnings were up 61 percent from a year ago, to $167 million.Realogy's IPO helped the real estate brokerage and franchising giant reduce its debt by $3.1 billion. But the company posted a $292 million fourth-quarter loss after recognizing $400 million in IPO-related costs, $18 million in debt extinguishment charges, and $42 million in depreciation and amortization.Revenue for the quarter was up 30 percent from the same period a year ago, to $1.2 billion, thanks in large part to a 35 percent annual increase in sales volume (transaction sides multiplied by average sale price) at franchised and company-owned brokerages."The strength of the year, and in particular our strong fourth-quarter results, supports the growing consensus of a housing recovery," said Realogy CEO Richard A. Smith in a statement. "The favorable housing trends ...