Mr. Jim Hannon reports

ALTUS GROUP REPORTS Q4 AND FISCAL 2024 FINANCIAL RESULTS; ANNOUNCES QUARTERLY DIVIDEND AND RENEWAL OF NORMAL COURSE ISSUER BID

Altus Group Ltd. has released its financial and operating results for the fourth quarter and year ended Dec. 31, 2024. The company also announced the approval by its board of directors of the payment of a cash dividend of 15 cents per common share for the first quarter ending March 31, 2025, and that the Toronto Stock Exchange has approved its notice of intention to renew its normal course issuer bid (NCIB).

The 2024 results from the property tax segment have been classified as discontinued operations. Accordingly, all amounts except for free cash flow and net cash provided by operating activities represent results from continuing operations. Unless otherwise indicated, all amounts are in Canadian dollars and percentages are on an as reported basis in comparison with Q4 2023 and full-year 2023 (which have been restated to exclude results from property tax).

Q4 2024 summary:

• Consolidated revenues were $135.5-million, up 3.4 per cent (1.0 per cent on a constant currency basis).
• Profit from continuing operations was $22.9-million, compared with a loss of $8.3-million.
• Earnings per share (EPS) from continuing operations were 50 cents basic and 48 cents diluted, compared with loss per share of 18 cents basic and diluted.
• Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $32.4-million, up 55.4 per cent (51.8 per cent on a constant currency basis).
• Adjusted EPS was 85 cents, compared with 26 cents.
• Analytics recurring revenue was $101.1-million, up 8.7 per cent (5.8 per cent on a constant currency basis).
• Analytics adjusted EBITDA was $36.4-million, up 29.4 per cent (25.2 per cent on a constant currency basis).
• Analytics adjusted EBITDA margin improved to 33.8 per cent, up 650 basis points (630 basis points on a constant currency basis).
• Analytics recurring new bookings were $21.1-million, up 15.6 per cent (10.9 per cent on a constant currency basis).

Full-year 2024 summary:

• Consolidated revenues were $519.7-million, up 2.0 per cent (0.6 per cent on a constant currency basis).
• Loss from continuing operations was $800,000, compared with loss of $33.5-million.
• Loss per share from continuing operations was two cents basic and diluted, compared with loss per share of 74 cents basic and diluted.
• Consolidated adjusted EBITDA was $82.9-million, up 26.0 per cent (23.7 per cent on a constant currency basis).
• Adjusted EPS was $1.17, compared with 48 cents.
• Analytics recurring revenue was $383.4-million, up 8.1 per cent (6.4 per cent on a constant currency basis).
• Analytics adjusted EBITDA was $117.2-million, up 22.7 per cent (20.0 per cent on a constant currency basis).
• Analytics adjusted EBITDA margin improved to 28.5 per cent, up 420 basis points (400 basis points on a constant currency basis).
• Net cash provided by operating activities was $79.9-million, up 11.9 per cent, and free cash flow was $72.5-million, up 23.0 per cent.
• In 2024, the company repurchased 203,400 common shares under the NCIB for total cash consideration of approximately $11-million, at a weighted average price per share of $54.29. (An additional 115,300 common shares were purchased in January, 2025, for total cash consideration of $6.3-million at a weighted average price per share of $54.49.)

"I'm incredibly proud of our team for finishing the year on such a strong note," said Jim Hannon, chief executive officer. "In 2024, we achieved record performance at analytics -- $411-million in revenue and $117-million in adjusted EBITDA, with an adjusted EBITDA margin of 28.5 per cent, our highest in a decade. Throughout the year, we delivered significant product enhancements, streamlined our portfolio, won outstanding new customers and deepened relationships across our expanding client base. This success fuelled cash flow growth and reinforced our momentum even as the industry navigated a challenging cycle.

"As we celebrate our 20-year anniversary this year, I'm more excited than ever about the road ahead. With a strengthened operating foundation in place, we're poised to redefine how the CRE [commercial real estate] industry leverages data to drive performance -- empowering our clients with unparalleled insights to make faster, more informed decisions and seize opportunities as the market continues to recover."

2025 business outlook

The company remains strongly positioned to sustain revenue and adjusted EBITDA growth at a higher adjusted EBITDA margin in 2025. Management expects CRE market conditions to gradually improve throughout 2025 with a stronger second half of the year. The business outlook for 2025 by reportable segment is as follows.

Q1 2025 dividend

Altus Group's board approved the payment of a cash dividend of 15 cents per common share for the first quarter ending March 31, 2025, with payment to be made on April 15, 2025, to common shareholders of record as at March 31, 2024.

Altus Group's dividend reinvestment plan (DRIP) permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the company. For shareholders who wish to reinvest their dividends under the DRIP, Altus Group intends to issue common shares from treasury at a price equal to 96 per cent of the weighted average closing price of the shares for the five trading days preceding the dividend payment date. Full details of the DRIP are available on the company's website.

Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as eligible dividends for purposes of Subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise.

Renewal of NCIB

The TSX has approved the company's notice of intention to renew its NCIB for its common shares. Altus's NCIB will be made in accordance with the policies of the TSX. Altus may purchase its common shares during the period from Feb. 25, 2025, to Feb. 24, 2026.

Under the NCIB and subject to the market price of its common shares and other considerations, over the next 12 months, Altus may purchase for cancellation up to 3,219,967 common shares, representing approximately 10 per cent of its public float as at Feb. 11, 2025. There were 46,190,841 common shares outstanding as at Feb. 11, 2025. The average daily trading volume through the facilities of the TSX during the 26-week period ended Jan. 31, 2025, was 70,585 common shares. Daily purchases will be limited to 17,646 common shares, representing 25 per cent of the average daily trading volume, other than block purchase exemptions. Purchases may be made on the open market through the facilities of the TSX and/or alternative Canadian trading systems at the market price at the time of acquisition, as well as by other means as may be permitted by TSX rules and applicable securities laws. Any tendered shares taken up and paid for by Altus will be cancelled. The company plans to finance the NCIB purchases from its existing cash balance.

Under its previous NCIB, which commenced on Feb. 8, 2024, and expired on Feb. 7, 2025, Altus obtained approval from the TSX to purchase up to 1,376,034 common shares. As of Feb. 11, 2025, Altus had purchased an aggregate of 318,700 common shares for cancellation under an NCIB in the past 12 months at a weighted average price of approximately $54.36 per common share. All repurchases under an NCIB within the past 12 months were conducted through the facilities of the TSX and/or alternative Canadian trading systems.

The company intends to enter into an automatic share purchase plan with a designated broker in relation to the NCIB that would allow for the purchase of its common shares, subject to certain trading parameters, at times when Altus ordinarily would not be active in the market due to its own internal trading blackout period, insider trading rules or otherwise. Any such plan entered into with a broker will be adopted in accordance with applicable Canadian securities law. Outside of these periods, common shares will be repurchased in accordance with management's discretion and in compliance with applicable law.

The company is renewing the NCIB because it believes that it provides flexibility around its capital allocation investments, particularly during periods when its common shares may trade in a price range that does not adequately reflect their underlying value based on the company's business and strong financial position. As a result, to maximize shareholder value, Altus believes that an investment in its outstanding common shares may represent an attractive use of available funds while continuing to balance other growth investments, including investing in operations and in potential M&A (mergers and acquisitions). Decisions regarding the amount and timing of future purchases of common shares will be based on market conditions, share price and other factors and will be at management's discretion. The company's board of directors will regularly review the NCIB in connection with a balanced capital allocation strategy focused primarily on financing growth.

Q4 and full-year 2024 results conference call and webcast

Date:  Thursday, Feb. 20, 2025

Time:  5 p.m. ET

Live call:  1-888-660-6785 (toll-free) (conference ID: 8366990)

Replay:  on the Altus Group website

About Altus Group Ltd.

Altus Group is a leading provider of asset and fund intelligence for commercial real estate. Altus Group delivers intelligence as a service to its global client base through a connected platform of industry-leading technology, advanced analytics and advisory services. Trusted by the largest CRE leaders, Altus Group's capabilities help commercial real estate investors, developers, lenders and advisers manage risks and improve performance returns throughout the asset and fund life cycle. Altus Group is a global company headquartered in Toronto with approximately 1,900 employees across North America, EMEA (Europe, the Middle East and Africa) and Asia Pacific.

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