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Compass, Inc. CEO Robert Reffkin, who reported the company’s third-quarter earnings this week, said the real estate industry was “artificially bad,” with sales down 14 percent last year, without commenting on the industrial real estate.
“It’s been a real year for real estate,” Lefkin said on an earnings call scheduled for Thursday evening. “It was one of the most difficult years in the last 10 years.”
The breakneck pace of the decline was historic. High mortgage rates, high home prices, inventory shortages, stock market declines, and high levels of uncertainty have caused many buyers to abandon purchases and significantly reduce the number of transactions.
Compass, the largest securities firm in the United States, reported a revenue of $1.49 billion in the third quarter, down 14 percent from last year.
The company also spent $29 million, including $25 million in restructuring and early termination benefits.
The company posted a net loss of $154 million, compared to a net loss of $100 million in the third quarter of 2021, as lower revenue and restructuring costs more than offset higher costs and operating costs. Lefkin said the company is preparing for the tough times ahead.
“The compass will be diligent and cautious. We’re trying to cross the line. Starting in the second quarter of this year, to adapt to a rapidly deteriorating market, we actively addressed costs and significantly reduced our technical, engineering, and other operational costs through many measures, including reductions in the labor force. “
But the CEO focused on increasing efficiency to help the company navigate the sea of chaos.
We have built a highly regarded brand, and a very strong agent network, on an advanced technology platform that supports agent recruitment and increased productivity.
We believe the actions taken and cost reduction initiatives to date have helped us achieve our non-GAAP operating cost targets of $1.05 billion to $1.15 billion through 2022.”
He added that the company is now preparing for another market downturn. “We don’t think the market will drop 25% next year, but we don’t expect that and we’ve started to develop a plan to account for that decline and expect that plan to change in the coming months.”
Coincidentally, at the time the company hit its milestone, the market was going through a tough time.
A few weeks ago, 2,500 police officers took part in the agency’s annual parade in Atlanta. I’m sure we have the best agents in the industry and they trust Compass as much as I do.”
He added: “I think the property market will be difficult in 2023, but we will continue to build a solid foundation for full capitalization with growth and stable returns.”
The Compass team is committed to providing agents with the best marketing support technologies and workflow tools to succeed in the medium and long-term market.
Reference Source: MPA
