Colliers International Group Inc.

future results, performance, or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's Annual Information Form as filed with the Canadian Securities Administrators and in the Company's Annual Report on Form 40F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is Thursday, July 31st, 2025. And at this time, for opening remarks and introductions, I would like to turn the call over to Global Chairman and Chief Executive Officer, Mr. Jay Hennig. Please go ahead, sir.

Thank you, Operator. Good morning, and thanks for joining our second quarter conference call. As the Operator mentioned, I'm Jay Hennig, Chairman and CEO of Colliers, and with me today is Christian Mayer, our CFO. This call is webcast and available in the investor relations section of our website, along with the presentation slide deck. As you saw, we exceeded expectations with our strong second quarter results, highlighting the exceptional performance of our engineering division. Our long-term strategy to build a diversified professional services and investment management business with high-quality recurring revenue streams is clearly paying off. All three divisions, real estate services, engineering and investment management, demonstrated strong momentum driven by organic growth, new revenue pipelines and acquisitions. We anticipate this positive trend to continue throughout the year, prompting us to raise our outlook despite macroeconomic uncertainties, as you'll hear from Christian in just a few minutes. Last week, we rebranded our investment management division into Harrison Street Asset Management, reflecting the strength and global recognition of the Harrison Street brand. We also expanded our leadership team, appointing co-founder Chris Merrill as global CEO and Zach Michaud and Steve Gordon as managing partners and global CFO and COO, respectively. Chris and the team remain significant shareholders consistent with our long-standing partnership philosophy. As part of this initiative, we launched a dedicated private wealth channel by rebranding and expanding our Versus Capital subsidiary. The newly branded Harrison Street Private Wealth will continue to deliver highly differentiated alternative investment strategies to wealth managers, financial advisors, and high net worth individuals. This rebranding significantly expands our Harrison Street's broad array of global investment products and capabilities. This week, we also completed the acquisition of Round Shield Partners, a premier European credit platform with 5.4 billion in AUM. This acquisition enhances our credit, student housing, and hospitality capabilities. In addition, Round Shield's vertically integrated student housing platform offers an exciting opportunity to scale our combined operations across the region. Overall, AUM increased to $103 billion during the quarter and over $108 billion pro forma for the acquisition of Round Shield. Fundraising has improved over the past few quarters and we expect this to continue, although still below historical levels. Operationally, we continue to deliver attractive risk-adjusted returns for investors throughout our various investment strategies, including real assets, infrastructure and credit. This quarter, new investments increased 64% year over year, and currently we have about $8 billion of capital to put to work, which positions us very well to continue to seize opportunity and deliver value to our investors. Realizations were also up 150% over the prior year, yielding substantial returns for our investors while providing necessary liquidity for reinvestment. Besides RoundShield, we also completed four tuck under acquisitions in engineering and two in real estate services since the beginning of the quarter. Our M&A pipeline remains robust, and we are confident in completing several additional tucks throughout the balance of the year. With our 30-year track record of value creation, visionary leadership, and three high-value growth engines, Collier's is well-positioned to continue to seize opportunities and deliver enduring value for our shareholders. Now I'll turn things over to Christian for his financial report, then we'll open the call to your questions. Christian?

Thank you, Jay, and good morning, everyone. As a reminder, all non-GAAP measures referenced today are defined in the materials accompanying this call. Revenue growth figures are presented in local currency terms. We delivered strong results in the second quarter, with revenues of $1.3 billion, up 17% year over year. Growth was led by our engineering segment, supported by recent acquisitions, as well as solid internal performance. Overall, internal revenue growth came in at 4%. Adjusted EBITDA was $180 million for the quarter, a 15% increase from last year. In our real estate services segment, revenue grew 4%. Recurring outsourcing revenues rose 6%, with growth across property management, valuation, and loan servicing. Capital markets revenues were up 16%, improving on the 10% growth reported in Q1 and ahead of our expectations. Sales brokerage was strongest in the US and Western Europe. Debt finance activity also surged, led by significantly higher US multifamily originations. Leasing revenues declined 5% globally, coming in below expectations. While office leasing was strong, It was offset by weaker industrial volumes due to tariff-related and other macroeconomic uncertainty. Segment net margin was down slightly to 11.9%, impacted by revenue mix and continued investments in recruiting. Our engineering net revenue jumped 70% fueled by acquisitions and internal growth of 8%. the net margin rose to 13.7%, a substantial increase from last year with improvements coming from both acquisitions and enhanced productivity in our core operations. We continue to monitor any potential impacts from tariffs or government policy, but we've seen no significant effect on our backlogs to date. In investment management, net revenues declined 7% as expected, due to catch-up fees recognized in the prior year. However, the net margin improved 42% from 40%, driven by disciplined cost control and lower incentive compensation. We have been very active on fundraising. During Q2, we raised $1 billion in new capital commitments. We also raised an additional $0.5 billion since quarter end, bringing total year-to-date fundraising to $2.7 billion. The launch of Harrison Street Fund 10 in May was the primary driver for fundraising during the quarter. With this fund and others currently in market or launching later this year, we remain well on track to achieve our $5 to $8 billion full-year fundraising target. Assets under management stood at $103.3 billion at June 30. up 3% from March 31st and up 7% from a year ago, supported by new capital raised, deployment activity, and favorable mark-to-market adjustments. Free cash flow remains strong. On a trailing 12-month basis, we converted 98% of adjusted net earnings into free cash flow, in line with our long-term target. As we've noted before, Our working capital late business model and modest capex result in strong free cash flows available for reinvestment and growth. Turning to our balance sheet, our leverage ratio was 2.3 times as of June 30th. Second quarter leverage was slightly higher than anticipated, firstly due to our increased pace of acquisitions, and secondly due to the recent depreciation of the U.S. dollar. which increased the reported value of our foreign denominated debt. With the completion of the Asterisk and Round Shield acquisitions in July, we now expect our leverage to decline to just under two times by year end. This assumes no additional major acquisitions. We have raised our full year consolidated outlook to reflect our strong year-to-date performance and the impact of recent acquisitions including Round Shield. Round Shield contributes approximately $35 million in annual management fee revenue at margins consistent with our existing investment management division. While we continue to monitor the effects of global trade tensions and interest rate volatility, particularly on our real estate services segment, we remain optimistic. Our outlook is supported by healthy pipelines across all three of our segments, and the expectation of a modest improvement in market conditions through the second half of the year. That concludes my remarks. Operator, please open the line for questions.