Realogy owner of Coldwell Banker, Sotheby’s, and Century 21 among other real estate franchises, profits plunged during the second quarter after coronavirus slowed home sales across the country.
Realogy reported a $14 million loss during the quarter — a huge drop from $69 million in profits during the same period last year. Citing a “massive drop-off” in transactions, Realogy said revenue also fell 25 percent to $1.2 billion, from $1.6 billion a year ago.
Realogy, the parent of the Corcoran Group and Coldwell Banker has north of $3.5 billion in corporate debt, however.
Closing Real Estate Offices
CFO Charlotte Simonelli told analysts that Realogy reduced expenses by $95 million during the pandemic. Most of the temporary cuts, she said, would be pulled back by the end of the year. But going forward, she said Realogy expects to reduce its lease expenses by $10 million to $15 million.
During the quarter, Realogy said its agent headcount was up 2 percent, the fifth consecutive quarter of year-over-year growth.