HFF Announces Record Transaction Volume of $96 Billion During 2017

Jan 12, 2018 04:15 pm

HFF, Inc. (NYSE:HF) announced today the year-end unaudited 2017 transaction volume of HFF, Inc.’s (the “Company’s”) operating partnerships (which consist of Holliday Fenoglio Fowler, L.P. and HFF Real Estate Limited (collectively, “HFF”), HFF Securities, L.P. and HFF Securities Limited (collectively, “HFFS”)).

The Company reported record results for its transaction volume, which it estimates at approximately $96 billion on 2,355 transactions across the Company’s debt placement, investment advisory, equity placement and loan sales capital markets platforms. This figure excludes transaction volume relating to HFFS’s advisory and consulting assignments, which are not reported due to the complexity of reporting such volume as disclosed in the Company’s previous filings with the Securities and Exchange Commission. HFF’s 2017 annual transaction volume represents a gain of 17.0% over the $82 billion transaction volume closed in 2016. The number of transactions HFF closed in 2017 – approximately 2,355 – represents an increase of 154 transactions or 7.0% from the 2016 figure of 2,201.

HFF’s debt placement volume in 2017 is estimated to be approximately $51.6 billion compared to $40.6 billion in 2016, which represents an approximate 27% increase.

HFF’s combined investment advisory, equity placement, and loan sales volume is estimated to be approximately $44.3 billion compared to $41.4 billion in 2016, which represents an approximate 7.2% increase over 2016.

HFF’s commercial loan servicing portfolio balance is estimated to be approximately $69.8 billion on 3,066 loans serviced as of December 31, 2017, which represents an approximate 20.5% increase from the year-end 2016 portfolio balance of $58.0 billion on 2,807 loans serviced.

The amount of active private equity discretionary fund transactions on which HFFS has been engaged and may recognize additional future revenue was approximately $1.82 billion at year-end 2017, down from the 2016 year-end volume of $2.8 billion.

This press release outlines the Company’s production volume totals, which are calculated from an internal database and have not been audited. Note that these amounts may be adjusted as the Company completes its review and audit of its fourth quarter and year-end results for 2017. No inferences about the Company’s fourth quarter 2017 earnings should be made from this announcement of transaction volume. The Company’s earnings for fourth quarter 2017 are currently scheduled to be publicly released in late February 2018. The Company has elected to release its production volumes at this time in order for HFF and HFFS to participate in several industry surveys which are important to their respective businesses.

Business Comments

“We believe the above results are due to the incredibly talented individuals comprising the HFF Team, whose exceptional work ethic, tremendous competency in the real estate capital markets industry and unwavering passion to be the very best in their chosen profession continue to be rewarded by the largest owners of commercial real estate assets in the U.S.,” said Mark D. Gibson, the Company’s chief executive officer.

About HFF, Inc.

Through its subsidiaries, Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited, HFF operates out of 25 offices and is one of the leading and largest full-service commercial real estate financial intermediaries, providing commercial real estate and capital markets services to both the consumers and providers of capital in the commercial real estate sector. The Company offers clients a fully-integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and commercial loan servicing.

Certain statements in this press release are “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar expressions constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the Company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: (1) general economic conditions and commercial real estate market conditions, including the recent conditions in the global markets and, in particular, the U.S. debt markets; (2) the Company’s ability to retain and attract transaction professionals; (3) the Company’s ability to retain its business philosophy and partnership culture; (4) competitive pressures; (5) the Company’s ability to integrate and sustain its growth; and (6) other factors discussed in the Company’s public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K.

Additional information concerning factors that may influence HFF, Inc.'s financial information is discussed under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Forward-Looking Statements" in the Company’s most recent Annual Report on Form 10-K, as well as in the Company's press releases and other periodic filings with the Securities and Exchange Commission. Such information and filings are available publicly and may be obtained from the Company's web site at www.hfflp.com or upon request from the HFF, Inc. Investor Relations Department at investorrelations@hfflp.com.

HFF, Inc.
GREGORY R. CONLEY, 412-281-8714
Chief Financial Officer
MYRA F. MOREN, 713-852-3500
Managing Director, Investor Relations