Savills PLC (LSE:SVS) said it expects to see underlying market improvements in the first half of 2024, which should set the course for broader recovery in most of its markets during the second half of the year.
The real estate advisory services provider said in a year-end trading statement today that it performed "in line with expectations" in 2023, after a "prolonged recalibration of markets".
The company said its overall full-year group performance for the year ending 31 December 2023 will be in line with the expected range of outcomes.
The market consensus is that Savills will generate underlying profit before tax of £91.3 million, or between a range of £85 million and £97.1 million.
The company said it expects these market improvements, together with its restructuring programme, to lead to "substantive overall improvement in performance in 2024" and set the foundation for further improvements in future.
Savills Investment Management has significant investment 'dry powder', or unspent capital, available for both real estate equity and debt opportunities, as of the end of the last financial year, according to the trading update. This includes Samsung’s first US$1 billion commitment to its funds.
“Real estate markets across the globe have been challenged by significantly increased interest rates, geopolitical events and, on a more asset specific level, uncertainties over the future role of offices and the valuation of existing stock,” the company said in a statement on Thursday.
“Our Investment Management business traded in line with our expectations although deployment of capital was inevitably reduced given lack of price transparency in most markets.
“As a result of prevailing market conditions during 2023, the real estate services industry as a whole undertook a number of rounds of significant cost reduction and reorganisation actions.”