Ms. Camilla Bartosiewicz reports

ALTUS GROUP REPORTS THIRD QUARTER FINANCIAL RESULTS FOR 2015

Altus Group Ltd. has released its financial and operating results for the third quarter ended Sept. 30, 2015. On a consolidated basis, third quarter gross revenues continued to grow steadily, increasing by 10.8 per cent to $102.2-million (compared with $92.3-million for the same period in 2014), driven by strong organic growth from its highly recurring software and data solutions revenue streams. Year-over-year adjusted earnings before interest, taxes, depreciation and amortization for the quarter decreased by 11.9 per cent to $15.3-million (from $17.4-million in the same period last year) primarily due to continuing growth investments and the lower earnings from the company's Geomatics business unit, which continues to be affected by the macroeconomic impact from lower oil prices. For the nine-month period year to date, gross revenues increased by 13.4 per cent to $305.5-million (from $269.3-million last year), and adjusted EBITDA declined by 9.0 per cent to $43.9-million (from $48.3-million). In the third quarter of 2015, adjusted basic earnings per share were 22 cents, down from 30 cents in the same period in 2014 primarily due to lower earnings.

Third quarter 2015 highlights:

• Maintained double-digit consolidated revenue growth for the eighth consecutive quarter;
• Increased recurring revenues from data and software offerings by 51.8 per cent to $23.9-million;
• Revenues from Data Solutions increased by 58.4 per cent to $15.5-million, of which 43.1 per cent was organic;
• Argus Software delivered double-digit growth across all of its revenue segments, rising 38.3 per cent to $16.0-million on an organic basis;
• Returned $5.4-million to shareholders through quarterly declared dividends of 15 cents per common share;
• New contract wins with industry-leading real estate companies fuel growth and further validate Altus Group's differentiated data and software offerings.

"We continue to generate strong growth in our recurring revenue streams driven by our higher-margin data and software offerings," said Robert Courteau, chief executive officer at Altus Group. "The 52-per-cent year-over-year increase reflects the resilient market demand for our analytics solutions, where data and software tools are becoming increasingly important for global asset and investment management of real estate portfolios."

Summary of third quarter 2015 operating and financial performance

Research, Valuation and Advisory (RVA) sustained double-digit revenue growth in the third quarter of 2015, rising 18.1 per cent to $26.9-million. The strong performance was driven by organic and acquisitive growth from its recurring Data Solutions revenues, which grew by 58.4 per cent to $15.5-million. Approximately 43 per cent of the growth in Data Solutions was organic benefiting from the addition of new clients and assets to its appraisal management data platform in the United States and Europe, and approximately 15 per cent came from the 2014 acquisitions of Voyanta Ltd. and RealNet Canada Inc. Revenues from RVA's valuations and advisory services segment declined by 12.4 per cent to $11.3-million resulting from a deferred project in Canada, completion of an economic consulting project in the Middle East, and a reduction in infrastructure and land services work. Adjusted EBITDA grew modestly to $5.5-million, impacted by lower revenues from valuations and advisory services and by the continuing growth investments in Data Solutions. Strengthening of the exchange rate against the Canadian dollar improved RVA's revenues by 6.7 per cent and adjusted EBITDA by 10.0 per cent.

In the third quarter, Argus delivered double-digit growth across all of its reporting categories with a solid increase in its recurring revenues (which now represent over 50 per cent of Argus's total revenues). Total revenues rose by 38.3 per cent to $16.0-million on an organic basis. Licence sales were up 19.2 per cent year over year to $4.5-million benefiting from strong sales of Argus Enterprise, its flagship commercial real estate asset management and investment platform. Maintenance and subscription revenues, which are considered to be recurring revenues, increased by 46.1 per cent to $8.9-million, supported by high renewal rates, an increased AE user base, a price increase on Argus valuation DCF maintenance contracts and an overall increase in subscription contracts. Additionally, revenues from services were up by 52.6 per cent to $2.6-million, reflecting an enhanced operational focus on the sale of services to AE customers. Adjusted EBITDA increased by 25.6 per cent to $3.9-million; however, it continues to be impacted by growth investments in new product development, an increased sales force and expanded operational capacity. Strengthening of the exchange rate against the Canadian dollar improved Argus's revenues by 16.9 per cent and adjusted EBITDA by 16.7 per cent.

In the third quarter, the global Property Tax business unit delivered strong revenue growth, rising 38.7 per cent to $31.1-million. North American revenues increased by 53.7 per cent to $24.8-million, driven primarily by 38.1-per-cent acquisitive growth in the United States. In the United Kingdom, revenues were steady at $6.3-million, supported by acquisitive growth of 6.3 per cent and an 11.5-per-cent benefit due to favourable exchange rates against the Canadian dollar. Global adjusted EBITDA increased by 21.4 per cent to $5.8-million, reflecting a 58.5-per-cent increase in North America to $5.2-million, and a 56.3-per-cent decrease in the U.K. to $700,000. Adjusted EBITDA in North America was impacted by lower contingency revenues in the U.S., higher integration costs associated with the 2014 acquisition of the SC&H State and Local Tax (SC&H SALT), and continuing investments in the U.S. business.

The Cost Consulting and Project Management business unit delivered consistent performance in the third quarter at $11.5-million in gross revenues, both in North America and in Asia Pacific. Adjusted EBITDA in the quarter decreased by 13.6 per cent to $2.2-million, primarily impacted by lower revenues.

At Geomatics, financial performance continued to be impacted by the challenges associated with the slowdown in capital spending in its core Western Canadian market. In the quarter, gross revenues declined by 28.2 per cent to $17.0-million, and adjusted EBITDA was down by 50.3 per cent to $3.5-million. Financial results were affected by both reduced activity in the oil and gas sector and overall fee reductions. In response to some of these challenges, the business unit continued to diversify beyond the oil and gas sector and is pursuing various cost-cutting initiatives.

In the third quarter, on a consolidated basis, favourable exchange rates against the Canadian dollar benefited consolidated gross revenues by 5.2 per cent and adjusted EBITDA by 7.2 per cent. Acquisitions contributed 10.1 per cent to consolidated gross revenues and 0.8 per cent to consolidated adjusted EBITDA.

The company made approximately $3.0-million in growth investments in the third quarter. These investments are aimed at increasing future revenues, including a significant portion of high-margin, recurring revenue streams from RVA's Data Solutions and Argus's software offerings.

In the third quarter, corporate costs were $5.6-million, consistent with $5.5-million in the same period in 2014. For the nine-month period, corporate costs were $17.9-million, compared with $18.7-million for the same period in 2014, reflecting lower variable compensation and consulting fees in 2015.

Under international financial reporting standards accounting, profit (loss) for the third quarter was ($700,000) or (two cents) per share, basic and diluted, compared with $3.9-million or 13 cents per share, basic, and 12 cents per share, diluted, in the same period in 2014. For the nine months ended Sept. 30, 2015, profit (loss) was $2.7-million and eight cents per share, basic and diluted, compared with $8.1-million and 28 cents per share, basic, and 27 cents per share, diluted, in the same period in 2014. The decrease in 2015 profits results primarily due to lower adjusted EBITDA and higher depreciation and amortization costs, partially offset by a gain on a deemed dilution on the company's investment in Real Matters Inc.

At the end of the third quarter, Altus Group's balance sheet remained strong, giving the company the financial flexibility to pursue its growth strategy. The company's bank debt was $128.0-million, representing a financed debt to EBITDA leverage ratio of 1.90 times.

        Q3 2015 RESULTS CONFERENCE CALL AND WEBCAST                                   

Date       Nov. 4, 2015                                     
Time       5 p.m. (ET)                                                  
Webcast    At the Altus Group website (under the investors tab)      
Live call  1-800-355-4959 (toll-free) or 416-340-8527 (Toronto area)       
Replay     A replay of the call will be available by webcast at       
           the Altus Group website.

   INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
        (expressed in thousands of Canadian dollars, except per share)

                                        Three months ended  Nine months ended
                                               Sept. 30,          Sept. 30,
                                            2015      2014     2015      2014
Revenues
Gross revenues                          $102,234   $92,310 $305,452  $269,349
Less: disbursements                        5,807     7,494   19,258    21,983
Net revenue                               96,427    84,816  286,194   247,366
Expenses
Employee compensation                     64,382    54,639  194,930   161,273
Occupancy                                  4,838     3,664   13,320    10,797
Office and other operating                13,238     9,850   35,635    28,426
Amortization of intangibles                8,597     4,577   25,573    11,796
Depreciation of property, plant and
equipment                                  1,748     1,568    4,972     4,088
Acquisition-related expenses
(income)                                     249     2,772      573     2,968
Share of (profit) loss of associates         420       548    1,244     1,361
Restructuring costs                          692        34    1,892        64
(Gain) loss on sale of certain
business assets                               --        --   (3,483)       --
Operating profit (loss)                    2,263     7,164   11,538    26,593
Finance costs (income), net                3,714     1,912    9,844    14,447
Profit (loss) before income taxes         (1,451)    5,252    1,694    12,146
Income tax expense (recovery)               (753)    1,367   (1,018)    4,051
Profit (loss) for the period
attributable to equity holders            $ (698)  $ 3,885  $ 2,712   $ 8,095
Other comprehensive income (loss)
Items that may be reclassified to
profit or (loss) in subsequent periods
Cash flow hedges                             148       180      468       539
Currency translation differences          15,026     5,366   29,734     6,583
Share of other comprehensive income
(loss) of associates                         577        78    1,577       112
Other comprehensive income (loss), net
of tax                                    15,751     5,624   31,779     7,234
Total comprehensive income (loss) for
the period, net of tax, attributable
to equity holders                       $ 15,053   $ 9,509 $ 34,491  $ 15,329
Earnings (loss) per share attributable
to the equity holders of the company
during the period
Basic earnings (loss) per share           $(0.02)    $0.13    $0.08     $0.28
Diluted earnings (loss) per share         $(0.02)    $0.12    $0.08     $0.27

We seek Safe Harbor.