Welcome to the Colliers International Fourth Quarter Investor Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance or achievements contemplated in the forward looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40F is filed with the U.
S. Securities and Exchange Commission. As a reminder, today's call is being recorded today, February 11, 2021. That at this time, for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennig.
Please go ahead, sir.
Thank you, operator. Good morning, and thanks for joining us for our Q4 year end conference call. As the operator mentioned, I'm Jay Henneth, Chairman and Chief Executive Officer. And with me today is John Fredrickson, Chief Operating Officer and Christian Mayer, Chief Financial Officer. As always, this call is being webcast and is available Earlier today, Colliers reported better than anticipated financial results for the Q4 and for the full year despite the ongoing impact of the global pandemic.
The strong finish is a testament to our unique enterprising culture, but also to the bold steps we've taken over the past 4 years to Currently, the majority of our revenues and more than 60% of our EBITDA comes from high quality recurring services like management, property and project management, engineering and mortgage servicing. All of these continue to The balance of our business, less than 40%, comes from transactional services, leasing and capital markets. While volumes in these areas were down somewhat, they delivered much better than anticipated. Let's all remember, transacting services are essential services. They're not going away and they may be delayed from time to time Like in a pandemic, for example, but they will be back and they'll be back strongly when things return to normal.
Colliers has another tremendous advantage in that diversification. Our revenues are not only diversified by service and asset class, they are also diversified by geography. Having a global platform with multiple revenue streams generated around the world brings significant balance, stability and more importantly, opportunity to Colliers, we can actually grow everywhere. With all of these characteristics and advantages, not to mention our proven track record of more than 25 years, strong balance sheet and significant inside ownership, we are confident we will emerge from this pandemic stronger than ever. Before I turn things over to Christian and John for comment, I'd like to say a word about the Colliers brand, positions we completed this year, our continued growth in investment management and our view of the balance of this year and beyond.
1st, the brand. As you know, we have worked very hard to build the Colliers brand into what it is today, student global leader in professional services and investment management. Our brand is respected everywhere we do business and is natural evolution of the iconic Colliers brand and reaffirms our commitment to accelerating our success as we continue As in the past, we took advantage of market dislocation to move forward to complete important strategic steps that would and accelerate our long term success. In total, we invested $240,000,000 in acquisitions this year, up from 109 last. In June, we partnered with an exceptional leadership team led by David to enter the mortgage banking business in a major way.
Our new business rebranded as Colliers Mortgage provides Real Estate Lending and Finance Solutions, especially in the areas of multifamily, healthcare and seniors housing, as our brokerage channel and offer real estate loans to our clients while strengthening our global platform even further. And then in July, we added another substantial business in Maser Consulting, a company that is also being rebranded as Colliers Engineering and Design. This addition marked another important step Led by a talented executive team with a significant equity stake, our focus is on engineered solutions for the built environment, which will also benefit in the future as there are additional infrastructure investments contemplated everywhere. Furthermore, we see this business as highly complementary to our other professional services and something we believe we can scale globally down the road. 3rd, investment management.
Our efforts over the past 4 years to build a global leader in investment management has proved to be another great success story and one that has added Significant enduring value to Colliers. Today, our Investment Management business represents about 20% of our that this In total, we have more than $39,000,000,000 of high quality fee generating AUM, which has been up over 20% over the last year. We continue to actively grow our that most importantly, both create significant opportunities for Colliers to grow in the future. Finally, a look ahead at the remainder of 2021. While the pandemic is expected to gradually subside course of the year, the timing and the extent is more difficult to determine.
For us, this means business as usual for our recurring revenue streams with a measured rebound when it comes to our transactional services, which we expect in the year. Christian will have more to say about this in just a minute. Christian?
Thank you, Jay. As Announced earlier today, callers reported better than anticipated financial results for the Q4 and full year. My comments Please note that the non GAAP measures referenced on this call are defined in the press release issued today. All references to revenue growth are calculated based on local currency. That this is a very strong quarter for 2019 and 16% internally.
Our adjusted EBITDA was $361,000,000 up slightly and our recently acquired mortgage engineering and design platforms and 2, prudent cost management through the pandemic. Turning our focus to the Q4. Revenues were $914,000,000 down 4% relative to the prior year. Internal revenues were down 15%, primarily due to the impact of the pandemic on our transactional leasing and capital markets operations. 4th quarter consolidated adjusted EBITDA was $155,000,000 up 7% from $144,000,000 1 year ago with margins at 17% versus 15.5% in the prior year quarter.
During the Q4, we maintained our prudent managing operating costs to match expected and then have impacted revenues with margins benefiting as transactional activity strengthened later region. 4th quarter revenues totaled $525,000,000 up 8% over the prior year period. Advisory revenues were up 31%, driven primarily by recent acquisitions. Capital markets revenues were up 46%, driven by strong debt origination revenues from a recent acquisition. Leasing revenues were down 34%, impacted by ongoing deferral of decision making by occupiers, especially in the office sector.
Adjusted EBITDA was $70,000,000 up 40% versus last year with significant contribution from acquisitions as well as ongoing measures to manage operating costs. Our EMEA operations generated Q4 revenues of $183,000,000 down 24 compared to $51,000,000 last year. Asia Pacific 4th quarter revenues were $163,000,000 down 11% relative to the prior year period. Capital Markets revenues were down 33% with a drop off large sale transactions, leasing was down 11%, while outsourcing and advisory revenues grew 4%. Adjusted EBITDA was $36,000,000 compared to $33,000,000 last year.
Investment Management revenues were $44,000,000 reflecting growth of 4% excluding the impact of pass through carry growth of 4%, excluding the impact of pass through carried interest. Assets under management were $39,500,000,000 at year Up 9% from September 30, 2020 and reflected strong fundraising activity in both open and closed end fund series, including a new closed end fund successfully launched late in the 4th quarter. Adjusted EBITDA for the quarter was $18,000,000 versus $17,000,000 in the prior year period. Based on our solid cash flow from operations for the year, As well as steps taken to fortify our balance sheet in the Q2, we continue to maintain a conservative financial Our net debt to adjusted EBITDA leverage ratio was 1.0 times at year end, At the lower end of our target range relative to a ratio of 1.4 times 1 year ago With $777,000,000 of available unused credit at year end, we have ample dry powder for future acquisition opportunities. As we look ahead to 2021, we are expecting the impact of the pandemic to subside, although the extent and timing remain uncertain.
In our transactional services, we anticipate a tough first quarter comparison to the pre pandemic levels of Q1 2020, but We anticipate a rebound in the second half of the year as the economy recovers and market confidence continues to build. Of course, our outsourcing and advisory and investment management revenue streams are expected to remain resilient through the year. Considering all of these factors, our outlook for 2021 revenues and adjusted EBITDA is to increase between 10% to 25
Thank you,
Christian. From an operational perspective across our platform both regionally and globally, I'd like to highlight a few things that contributed significantly to Colliers business continuity during a very challenging 2020 and help position Colliers better than ever before as we enter 2021. Our decisive action to initiate and quickly implement cost management measures early in the pandemic, anchored our resilience and the business continuity that supported our operations, kept our employees safe and serviced our clients during a tumultuous period. This was tough on all of our people, those that remained and those on the sidelines. True to the strength of our culture, we saw incredible commitment and adaptability from our 15,000 employees, validating your critical importance to Colliers as our most valuable asset.
As the year progressed and business conditions improved, we were pleased to recall 100 of Colliers employee is back to work with only about 3% remaining furloughed at the end of 2020. During the past year, we made great strides evolving technology to become more of a strategic asset. With greater adoption and acceptance, We expect to continue investing in digital solutions that deliver real value to our clients, while also helping our people work more productively, Including a new transaction and servicing technology platform for Colliers Mortgage, enhanced data intelligence tools at Harrison Street an additional workflow digitization across our operations, accessible in and out of the office. We're excited about role that technology can play to enhance our services in the future and plan to bring a sharper focus to digital innovation across call years in 2021 beyond as it becomes an essential function within our operations. Undoubtedly technology will continue to play an important role, but at Colliers we see it as an enabler of our people led professional services and investment management that we provide to our clients and that our brand is known for.
Some of our peers have decided to put technology first. Perhaps they see it as the future of their firms, more novel and exciting, where they believe investors will value them more highly. Whatever reason, we see it differently and will continue to prioritize and invest heavily in our people. Professionals looking to be part of a high growth digitally supported global platform with an enterprising and collaborative culture puts people first. As we continue to see a recovery that builds momentum with greater clarity on the horizon, we expect to reignite some of our investment plans, which were dampened with the uncertainty of 2020, Including our Global Occupier Services and Corporate Solutions Business, Global Capital Markets and the other key service lines, including those we can leverage globally to deliver more value and achieve greater scale.
With additional investment in talent that brings additional capabilities and relationships combined with supporting technology. We are confident our ability to double the size of this global advisory business over the next 5 years, substantially increasing the most durable of our transaction related advisory services. We have reinitiated our investments in global capital markets We expect our investments to align with the anticipated recovery in capital markets activity later this year, resulting in more critical advisory roles that add value in acquisitions, dispositions and capital raising for investors, leveraging our global platform, local knowledge and visibility into global capital flows, all within a global ecosystem awash With more institutional capital targeted at real estate assets than ever before. Finally, our updated Collier's branding couldn't have arrived at a better time as we put 2020 behind us and look forward to a period of renewal and a more prosperous future. While our brand retains several familiar elements of our legacy visual identity, it better represents who we are today and provides enhanced support for the sharp increase in digital mobile friendly marketing we experienced last year and expect in the future, as well as several tools to enhance the productivity of our people globally.
Still, Our brand messaging remains consistent with our culture and client first mindset. In a world of increasing complexity, At Colliers, we strive for simplicity with one overarching and boundless goal to accelerate success. And along with owning the blue, we truly believe the sky is the limit. That concludes our prepared remarks. And I would now like to turn the call back to our operator to facilitate questions.
Our first question is from George Doumet with Scotiabank. Your question please.
Hey, Good morning, guys, and congrats on a very strong quarter. Looking at your 2021 revenue and EBITDA goalposts, Can you maybe talk to what the working assumption is? I guess for what Jay, you called a measure rebound in transaction volumes. Can you maybe talk about that, what that assumption could Percentage maybe year over year?
George, it's Christian. Look, like the we That's some pretty wide goalposts, as you mentioned, for our 2021 numbers. And broadly, we do expect a rebound in transaction activity in the back half of the year. We also recognize there's a tough comp in In Q1 of 2020 was a strong quarter for us, and we expect the transaction activity for the Q1 of 2021 will not be at those levels. So I think there is Optimism that conditions will improve, and we were We also, in our forecast, have the annualization of the acquisitions that were made in 20 that the continued growth of our recurring businesses, which we expect
Okay. I think there was some anecdotal survey information that was released that suggested 50% rebound Transaction volumes, I guess that does occur. Our guidance would be pretty conservative, right?
Yes, I think that's right, George. I think you're referring to a capital markets piece was put in a few weeks ago, which is that it There was a survey of institutional investors and other participants. But yes, I mean, that is a I think a quite
Okay. That's helpful. And maybe for John, there was a longer term strategy of improving the margins in the Americas By 300 basis points over the next 2 or 3 years prior to the pandemic.
Maybe obviously, we've taken quite a bit
of action. But today, kind of where does that strategy sit? How much more can we remove, if any, and over how long?
Look, yes, it is part of a
long term strategy. I'd say we're about halfway through that. A lot of it was around kind of repositioning some of our cost structure as it related to our transaction business, and then also Over time, growing more scale and creating additional productivity enhancement to the way we operate. So I think we're well on the way. And I think we've seen some of the benefits, obviously, not the best lens to look at given we had to take some pretty hard cost action and some of those costs will come back.
But I think we're feeling pretty good about where we're positioned With respect to that business, of course, growing our occupier service corporate solutions business, which Again, it was a bit of a challenging year, but we still made some decent progress this past year. That again is going to contribute margin enhancement, I think, around our U. S. Business and the Americas generally. So we're feeling pretty good about that, but more work to do.
That's helpful. And maybe one last one for me, maybe for Jay. The balance sheet is under lever by all standards. Can you maybe handicap the chances of us doing a larger deal, maybe in the investment management area this year? And how is the appetite there?
Well, I can hardly hear your question. I need you to ask me the question again. But just before you do, I want to tack on to John's comments. If you take a look at I think we've made great progress in margin enhancement in the U. S.
If you Take a look at 2019 versus 2020, we're up 200 basis points out of 3 on EBITDA margin. So we're 2 thirds of the way there. And so I think we're well on the way. There is more work to do, but it is moving
I can try again, Jay. I was just asking you about the balance sheet. Given that's pretty under levered, there's room for a large deal. I'm just hoping what are the odds that we can see that this year?
Obviously, we don't I'll give you any color around that because we do this all the time and especially the transactions that we work on, it takes many, many years sometimes to build the relationship with the targets that that the great companies like Harrison Street and Dougherty, now Colliers Mortgage. So we have several very interesting opportunities, whether the timing is right, whether the valuation is site will be just a function of a number of things. But we have the capacity currently. And of course, we capacity currently and of course we always have additional capacity if the greatest opportunity presents itself. So it's an area Focus for us.
It's an area where we think we can accelerate our growth in the years to come. And there There's a lot of opportunity to bring some of the benefits of different platforms together to So hopefully that gives you some color.
It does. Thank you for
your answers and great quarter.
Thanks, George.
Thank you. Our next question is from Stephen MacLeod with BMO Capital. Your question please.
Thank you. Good morning, guys. Good morning.
Good morning. I just wanted to dig in a little bit on the recurring business, the Outsourcing Advisory and Investment Management, just with 2 questions. First, I was wondering if you could give a little bit of color around How the outsourcing and advisory business performed by the sub segments within that, so project management, property management, valuation advisory? And then in the past, you've talked about recurring revenues in aggregate potentially reaching 65% to 70% of revenues over time. And I'm just wondering if that target still holds and maybe if there's potential to move that even higher.
So I'll just give you a more general response and then Christian can dig into the details. Yes, that kind of goal is still there. We can move Our recurring earnings to 65%, hopefully a little bit better over the next few years, that would be terrific. But that's probably a good balance of our business to be frank. And so you'll See growth in all areas of our business, but if the recurring portion is 65, maybe even as much as 70 over time, That would be a good result for us.
And Christian can give you some color on the individual geographic regions and some that underperformed in other geographic regions. And so when you look at project management or Engineering or mortgage servicing, what you really get is an amalgam of the results, some good by region. So For example, using a weaker example, India, where we have a tremendous Project Management business. It's obviously in huge lockdown right now. It's a business that could generate just our project management piece could generate $10,000,000 to $15,000,000 of EBITDA on an annualized basis only delivered approximately 5 this year because of the difficulties in India.
The overall project management piece for our business was up, but that was taking into consideration up and down, so there's puts and takes all over the place. But directionally, which is important, it's up nicely over the prior year. So Christian, I don't know if you want to add anything to that.
Yes. I can add a couple of things to that. You I've noticed, Stephen, that the EMEA outsourcing advisory revenues were down for the year, for the quarter. So We had some impacts to our French business, which is primarily a workplace project management So they were impacted by the pandemic as well. And really, as Jay mentioned, India and France are the 2 areas And perform strongly elsewhere.
Our engineering business that we recently acquired in July had also had An exceptional 1st 6 months and has a great pipeline of work going forward. So I think, As Jay mentioned, it's a bit of a geographic noise, but that's part of diversification and that's one of our benefits.
Okay, yes, great. Thank you, Jay. Thanks, Christian. And yes, absolutely understanding and appreciating the diversification. That's very good color.
And then maybe just finally, could you talk a little bit about the strength in the Capital Markets business in the Americas segment, that seemed to be a bit of a nice tailwind to the quarter. And I'm just wondering how you see that evolving into Q1 and potentially through the rest of the year, like is that really isolated to Q4 at this point in time?
The capital market business performed really well in the Americas, and part of that is the acquisition mortgage and the debt origination practice that we have, which is a government agency Origination practice around multifamily and related properties. Those originations were strong. Refinancing activities on the agency business was also very strong given the low interest rate environment. We saw it in the 3rd quarter and it was pronounced as well in the Q4. That will continue in the 1st and second quarter, but will tone down here as refinancings are completed and less of that work is done as we proceed through Our internal growth our internal revenues in capital markets in Americas were down.
They were down about 12%, but that is less than what the market stats would show
Kis. Your question please.
Good morning, guys. Just following up on Stephen's question with respect to Colliers mortgage. Could you maybe just tell us how that's performed relative to your expectations at acquisition? And I think At acquisition, you talked about that being a double digit growth business. Could you maybe just give us a bit of an update on the outlook for that?
Yes. I mean,
it's been a pleasant surprise Under prior ownership, not in a bad way. It was just a privately held company founded Many, many years ago by an iconic business leader, but they were constrained in terms of growth opportunities. And mine our brokerage channel to originate multifamily seniors and affordable housing opportunities at a time when interest rates were very attractive and that those asset glasses are also key asset glasses for Harrison Street. So there's been sort of a twofer on that because both Colliers helped to originate, but also Harrison Street, which does For a living every single day buying and refinancing assets that comply with the types of asset classes that Colliers mortgage funds created a great opportunity and we really have only scratched the surface. Our collective teams are working together to mine the flow of opportunities, both through Harrison Street and both and also Through the Colliers network.
So it's performed much better than we expected. We hoped for this. We anticipated this, but The only model that based on, same store sales and modest growth as We always do an acquisition. So we're quite excited about the future of that business and think it could be double or triple that this over the next 3 to 5 years.
Okay, great. And then just one more on the office side with respect to your advisory services and some of the outsourcing. Coming out of the financial crisis, we saw a big pickup in the outsourcing activity in attempts to shed costs. Would you say the pandemic has maybe accelerated those trends further? And Maybe you could just give us a little bit of color on the pipeline of potential work that's coming through that.
And then I guess would that translate into potentially brokerage market share wins as well as you build those relationships.
It's John here, Narrow. Look, this has been a real catalyst around company is again reevaluating the workplace and the role it plays in their operations. So At least for the time being, our teams are working very closely with many of our clients and prospective clients and new clients around thinking through how best to optimize the workplace From their perspective and companies have different objectives. Some are very cost focused. Some look at the workplace as being an asset and attracting talent.
You have a whole wide spectrum of things. But I think more than ever before, the current crisis and I think where we're going into the future is very conducive to professional advisory services that we can provide. We can provide insights, in this field and who had the market intelligence from advising so many clients on things that really matter. So we are very bullish On the opportunity and ultimately, that kind of work does see transactions, whatever that might be. And I think that latter part that their own and this is primarily around the office footprint obviously, the whole industrial sector and To a lesser extent for us retail have different dynamics across the space, but very bullish on the opportunity there and that outsourcing Trying to think was going to continue.
Excellent. I will get back in the queue. Thanks guys.
Thank you. Our next question comes from Ray Skidmore with Goldman Sachs. Your question please.
Thank you. Good morning. Just to follow-up, maybe a question for Jay on the acquisition side. As you look at your footprint, whether it be by business line or geography, are there places where you see white space or opportunities that you think you should be bigger or opportunities to scale the business? Thanks.
So that's the beauty of our business. We have so much white Services transactions are becoming a small part of our platform and it's becoming a smaller part The platform of the other peers out there, it's the other services that just offer so many opportunities to grow. And when you're a global platform, you have exceptional management teams that know how to operate the Colliers way, know how to any specific area because I would say to you we have white space in every market. We'd like to grow this particular portion of our business better, bigger than it is today. We see opportunities to fill gaps in other areas.
So that's the beauty of the platform that we have and the leadership We have on a global basis.
Thank you. Just a second question, separate topic, Just in terms of the leasing pipeline across the portfolio and how you see leasing evolving relative to the transaction market in 2021. Thank you.
As you know and as it's been talked about a lot, there's been lots of deferral around leasing. I expect or we expect some of that to continue, as again companies sort through trying to determine what works best for them and they are as a bridge to making those longer term decisions often looking to defer leasing and obligations around space for say a year. We expect that to continue. The uncertainty, while diminished, has not gone away in 2021, so we expect that some of that to continue. But there are other companies that Are looking through the pandemic and looking at other factors that are important for them and making long term decisions, and we've certainly been involved in many of those transactions.
So We think there'll be less deferral of decisions that we saw in 2020, but we don't believe they're going away in 21. They'll diminish significantly and it'll be a year or 2 I think before we're back to, I guess, Patterns of thinking and obligations that companies are prepared to take on down the road.
Comes from Matt Logan with RBC Capital. Your question please.
Thank you and good morning.
Jay, earlier in some of your commentary, you mentioned that Colliers has several very large interesting opportunities and that the business has additional capacity if the greatest opportunity presents itself. Can you tell us what Collier's greatest opportunity is at the moment?
Good question. We don't have any greatest opportunities. We're open minded to anything. As long as what I would say is that if you look at the engines for growth that we have today, we're very comfortable with those engines. We are actively looking to Grow them globally.
I don't see in our pipeline anything new Because we just see so much opportunity in those existing areas. So we happen to be in a fortunate Positioned to have extremely low leverage, lots of capacity to capital. So there really isn't anything Within reason, we couldn't buy as long as it enhances our platform, which is Something that we think about all the time, and I don't think people think about this as much. The integration of the business and the impact it might have on the culture of the organization is always a key Consideration for us and that's a market by market, business by business kind of decision. So that would be some that would be a limiting factor, but capital, no.
In our existing areas for growth, no. So we're open minded. And if anybody in your investment banking area has a Great opportunity for us to consider. I'll give you my home phone number, my wife's phone number, and And even my kids' phone number, they'll get to
me quickly.
Great color. And maybe just in terms of those growth engines, Would those be Harrison Street, Colliers Mortgage and the Colliers Engineering Platforms really as The main growth engines?
Right. But also the traditional transaction services, there's lots of this One of the other people on the call mentioned this. There's a lot of markets where we're undersized And there's opportunity there to significantly enhance our presence. We're doing I hope to be a very successful job in France. We entered that market 5, 7 years ago.
It's been A rough go, to be frank. But the last couple of years, we've really gained momentum. You haven't seen And there's other markets like Spain where you are seeing it in the results despite a very difficult pandemic in Spain and we're excited about India. And if you take a look at Our results in China, we're doing extremely well in China and the team there is exceptional and and very bullish about the opportunities there as we open some new doors That previously weren't open to us. So there's excitement internally.
I think there's also A desire to get beyond the pandemic for everybody, but also our leaders
Appreciate all the commentary. And maybe just one last one for me before I turn the call back. When I think about your goalpost For 2021, we have revenue and EBITDA growing at the same clip. Would it be fair to say that There's no margin expansion potential for 2021. And maybe some of those cost saving initiatives that we talked about last quarter are more of a longer term story?
Or is it simply too early to quantify any potential margin expansion at the current juncture?
Well, look, Matt, I mean, I can take you through it kind of service line by Service line, if you want. Obviously, for brokerage, we're going to have some operating leverage from higher revenues, we hope, in the back half of the year. We also have some costs that we're going to reinstate from the significant cost management initiatives we took in 2020 and also some investments in We can that amendment is going to be similar to prior year. Corporate costs are going to go up. Obviously, we took significant cost actions on the corporate side.
You can see that in the numbers. I'm happy to take you through more detail offline But there's a number of moving parts in our outlook in terms of the margin. But on a net effect, it remains
I'll leave it there, Christian. Appreciate the commentary. I'll turn the call back. Thank you.
Thank you. Our next question is from Stephen Sheldon with William Blair. Your question please.
Thanks. This is actually Josh Lamers on for Steven. First, I wanted to ask about headcount. You noted some appointments in key markets and that for the most part, there's very few professionals that are still furloughed. It's good to see you.
But to start the year, where does headcount stand in the leasing and capital markets businesses relative to the start of 2020?
We'd be at a similar number at this point. I mean there have been some puts and takes. We may be up marginally. Obviously, some people, as I indicated, we are about 3% furloughed and that's predominantly servicing the transaction market which we expect to come back. But At this point, we certainly are ambitious of adding to that headcount in the right way, and we've already started early this year in doing so and expect to do more of that
on revenue and EBITDA guidance. Are you able to provide any expected cadence of EBITDA contribution throughout the year? I'm guessing it's going to be heavily second half weighted, but To what extent would you expect it to be second half weighted would be helpful.
Well, look, Josh, I mean, I think we A little bit of color around our expectations for the transaction in the Q1. Obviously, we have a tough comp on the transactional side. We expect transactional businesses to really to rebound in the second half of the year and the recurring business, the SRSV advisory business to remain steady through the year. So that's what the most commentary we can give on that and yield a clear outlook. And the guideposts are why because we have still a lot of uncertainty out there.
And that's kind of where we're at.
Yes. That makes sense. And then John touched on it a bit in his prepared remarks. With the hire of Tony Clark, wondering if you could give us maybe another sense or a little bit more insight into its initial agenda and what are Some of the major tech focuses early on in his appointment.
He's been a great addition to our U. S. Team and he'll work very closely within our North American shared services. We kind of Try and pool some of our resources around technology across the North American business because there's so many leverage points that we can share costs and have some scale benefits in doing that. But I think his focus is going to be largely on A number of our proprietary tools and some of the technology we access from 3rd parties ensure that we're using that on an effective basis, certainly from a cost perspective, but more from an adoption utilization, ensuring that the people in our business that can best benefit from technology have access to it and that we are very focused on using technology and the delivery of our service to our clients.
Our Colliers 360 is a really good portfolio management industry leading tool for occupiers and We're going to continue to evolve that product and there's lots of things that we can do with that including augmenting additional services that are relevant to occupiers that can be channeled through that Colliers 360. So that will certainly be an area, Some other tools that we're currently using and he'll have put his mark on the future of those as it relates to really market intelligence and activity based tools that more of our sales brokerage team uses in the U. S. The infrastructure is very, very Sound and solid and I think most of that will be dealt with by a separate group. But Tony will certainly been a welcomed addition, a real veteran around technology, having also been with other public companies.
So that's an added bonus. So we're excited to have him on board.
Great. Thanks for the insight and great quarter, gentlemen. Thank you.
Thanks. Thank you. Thank you.
Our next question is from Frederic Bastien with Raymond James. Your question please.
Hi, guys. Jay, you gave some great color on the potential for Colliers Mortgage. I'd like to Now maybe switch to Mazor. And in your opinion, how big can the engineering services platform you gain I get in the next 5 years.
Well, the goal here and I was Probably ahead of myself here. The goal is probably to have about $1,000,000,000 in revenue from that service line over the next 5 years. I think it's achievable, and it's probably on a Global basis, we see it as a support and complementary to some of the other services that we offer is just a natural extension for us.
Okay, cool. And then within the U. S, just curious if Maser is well positioned to capitalize on the Biden administration's plan to invest in green structure, we know it's quite a hot topic right now, but just curious if they have any opportunities.
Yes. They are very focused on that. The one thing that you know is that Maser is concentrated in the In the Northeast, very concentrated in the Northeast. So that boat creates opportunity For us to augment the platform across the U. S, but yes, they're set up for that because that is probably 30%
Thank you. And I will turn the call back to Jay Hennings for his final remarks.
Okay. Thank you, everyone, for attending this conference call. We look forward to the next one. And thank you,