Real estate services firm Bridgemarq's Q1 revenue falls on weak Canadian market

Overview

• Canada residential real estate services firm's Q1 revenue fell due to market weakness and fewer Realtors

• Adjusted net earnings declined yr/yr, partly offset by lower commissions expense

• Net loss driven by fair value loss on exchangeable units

Outlook

• Company targets annual dividend of C$1.35 per restricted voting share, unchanged from 2025

• Company says mixed market conditions and geopolitical uncertainty continue to weigh on demand

• Potential for higher borrowing costs may support demand as consumers act before mortgage rates rise

Result Drivers

• MARKET WEAKNESS - Revenue declined due to weakness in the Canadian real estate market and a decrease in the number of Realtors, per company

• LOWER COMMISSIONS EXPENSE - Adjusted net earnings decline was partly offset by lower commissions expense

• HIGHER CAPITAL EXPENDITURES - Free cash flow fell due to lower operating income and higher capital expenditures

Company press release: ID:nCNWkwhT2a

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the real estate services peer group is "buy."

• Wall Street's median 12-month price target for Bridgemarq Real Estate Services Inc is C$12.50, about 8.7% below its May 12 closing price of C$13.69

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