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Earnings Roundup / Realogy

Firm posts $1.9-billion annual loss

February 26, 2009|Times Wire Reports

Buyout firm Apollo Management agreed to invest as much as $150 million in Realogy Corp. after the real estate broker reported a 2008 loss of $1.91 billion.

Realogy, owner of the Century 21 and Coldwell Banker brands, said that Apollo would provide the "equity infusion" only if necessary and that it might not need the full amount. Realogy said it remained in compliance with debt agreements, according to a regulatory filing Wednesday.

"This is very powerful support to us during these challenging times and is not available to most companies or our competitors," Chief Financial Officer Anthony E. Hull said.

Realogy reported the loss after writing down $1.79 billion in assets and investments as its brokers were hurt by the worsening housing slump. Apollo acquired Realogy for $6.8 billion in April 2007.

Realogy said Wednesday that home sale transactions slid 18% last year and the average home sale price fell as much as 10% from 2007.

Chief Executive Richard A. Smith called speculation that Realogy would file for bankruptcy protection "completely false and without merit."

Realogy had revenue of $4.73 billion last year, down from $5.97 billion in 2007, the Parsippany, N.J., company said.

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