HFF, Inc. Reports Third Quarter 2016 Financial And Transaction Production Results

HFF, Inc. (NYSE:HF) (the Company or HFF) reported today its financial and production volume results for the third quarter of 2016. Based on transaction volume, HFF, through its subsidiaries, Holliday Fenoglio Fowler, L.P. and HFF Securities L.P., is one of the leading and largest full-service commercial real estate financial intermediaries in the U.S., providing commercial real estate and capital markets services to both the consumers and providers of capital in the commercial real estate sector.

Third Quarter 2016 Highlights
  • Revenue grew 11.3% year-over-year to $126.5 million.
  • Net income was $20.0 million, as compared to $19.3 million in the prior year period.
  • Net income per diluted share was $0.51, as compared to $0.50 in the prior year period.
  • Adjusted EBITDA was $33.1 million versus $31.3 million in the prior year period.

First Nine Months of 2016 Highlights
  • Revenue grew to $361.7 million, which is an 8.6% year-over-year increase.
  • Net income was $49.7 million, as compared to $49.8 million in the prior year period.
  • Net income per diluted share was $1.28, as compared to $1.30 during the prior year's first nine months.
  • Adjusted EBITDA was $85.8 million compared to $84.4 million in the prior year period.

"We are very pleased with our performance in the third quarter and first nine months of 2016. HFF's transaction volumes increased across all business lines during the same periods driving revenues higher, despite the continued headwinds in the capital markets and their impact on the industry's transaction activity in the first nine months of 2016," said Mark Gibson, chief executive officer of HFF.

"Transaction volumes in the U.S. commercial real estate industry for the third quarter and first nine months of 2016 were lower as compared to the same periods in 2015. We have been operating in a challenging capital markets environment throughout 2016 due to a number of factors, including but not limited to, an unsettled sentiment among investors due to general uncertainty regarding domestic and global growth, the development of a "bid-ask" gap as buyers and sellers engage in "price discovery" for real estate assets, as well as increased regulatory scrutiny among financial institutions. While some of these headwinds are expected to persist into the future, it does not change our long-term view of the fundamental drivers of the U.S. commercial real estate transaction activity as evidenced by the increases in our overall headcount during the last 12 months."

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