Realogy Holdings (formerly Domus Holdings) has the goods for domestic bliss for a lot of people. It is the largest franchisor of residential real estate offices in the world with about 13,500 offices in more than 100 countries. Its brands include Century 21, Coldwell Banker, ERA, Better Homes and Gardens Real Estate, and Sotheby's. In addition to franchising, the company owns and operates about 710 offices under the already mentioned brands along with the Corcoran Group and CitiHabitats labels. It also provides relocation, title, and settlement services, and mortgages. The residential real estate giant changed its name in September 2012 and went public in October.
Realogy raised $1 billion in its IPO, a vote of confidence of sorts in the recovery of the residential real estate market in the US. Realogy will use the IPO proceeds to reduce its more than $7 billion in debt. Despite losing $99 million in 2010 and $440 million in 2011, the firm believes the real estate market is poised for recovery. Its strategy includes growing all segments of its business though it offers no specifics on that front.
The US accounts for 97% of Realogy's revenue. The company's relocation services business is active in the US, Canada, Europe, and Asia.
In addition to its company-owned and franchised real estate brokerages, Realogy is a leading provider of employee relocation services in the US and internationally, serving nearly two-thirds of the Fortune 50 companies.
Realogy reported revenue of $4.67 billion in 2012, a 14% increase versus 2011. Rising home sales and home prices across most of the US, drove results at Realogy's company-owned real estate brokerage services business, which saw an annual uptick in sales of 17%. The real estate franchise services business posted an 8% increase. The company's title and settlement services businesses posted a 17% increase in sales year over year, due to higher resale volume, refinancings, and underwriting.
The company lost $543 million over the same period due to an increase in commission and other agent-related costs, as well as marketing and other expenses. 2012 was the firm's fourth consecutive unprofitable year.
Post-IPO, the investment firm Apollo Management owns 45% of Realogy's shares.
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