Those looking for defensiveness and dividends often look to the real estate sector for such growth. However, one real estate stock I’m looking at more from a growth perspective is Colliers International (TSX:CIGI)(NASDAQ:CIGI).
Colliers International is an investment organization and global commercial real estate brokerage advisory firm. Since the company’s inception in 1976, Colliers has a fantastic growth record. Indeed, any company with a long-term history of providing shareholder value is one I want to dive into.
This is a company I’m taking my first look at, and I like what I see. Let’s dive into why Colliers could be a top stock to consider in 2022.
Growth on the horizon for this real estate stock
Led by leading Canadian entrepreneur Jay Hennick, Colliers International is currently operating in 65 nations. The organization anticipates organic growth in the mid-single digits annually. Additionally, Colliers expects double-digit growth rates, including acquisitions.
With insider ownership of roughly 40%, Colliers International is also more entrepreneurial driven when compared to its rivals. This real estate company has expanded into recurring revenue services like loan servicing, valuation, engineering, and project/investment/property management.
The successful execution of the organization’s plans will likely result in shareholder value creation. This will, in turn, build upon the long-term success track record of the management.
A look at “Enterprise ’25” and the company’s solid performance
“Enterprise ’25,” is the term dubbed for Colliers’ latest growth strategy. This strategy contains six pillars of focus to help the organization reach its lofty growth goals. Colliers aims to double its profitability and have a minimum EBITDA growth of 65% coming from recurring revenue by 2025.
The six areas where Colliers International will focus include expanding client relationships, creating a culture (ESG policies), strategic acquisitions, innovation with technology, building scale, and amplifying its brand.
Though the company’s performance was certainly impacted by the pandemic, Colliers managed to post solid results last year. Indeed, the company’s two-billion square feet of real estate and annualized revenues in excess of $3.6 billion are noteworthy for fundamentals-focused investors.
Bottom line
Colliers International boasts assets under management worth $46 billion along with an impeccable track record of growth. Additionally, I believe the company can easily double its capital every three or four years if it continues to grow at the current pace.
Real estate investing can diversify an individual’s portfolio and help protect one’s portfolio from stock market volatility. This essentially forms the reason as to why several investors are inclined to have a real estate play in their portfolios.
Thus, those looking to venture into a top real estate stock may want to consider Colliers right now.
