REG - Savills PLC - AGM Statement

SavillsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260513:nRSM0564Ea&default-theme=true

RNS Number : 0564E  Savills PLC  13 May 2026

13 May 2026

 

Savills plc

AGM Trading Update

Ahead of its Annual General Meeting ("AGM") to be held at 12 noon today at 33
Margaret Street, London W1G 0JD, Savills plc ("Savills" or the "Group"), the
global real estate advisor, issues an update on trading.

Overall trading for the year to date has been marginally ahead of the Board's
expectations, notwithstanding the heightened levels of geopolitical volatility
and, especially outside the US, significant uncertainty around the effect of
the current Middle East conflict on interest rates. Whilst mindful of these
uncertainties, the Board's expectations for 2026 remain unchanged.

Transactional

The Group's Transactional business provides capital and leasing advisory
services to commercial and residential investors and occupiers.

Global real estate market investment 1  (#_ftn1) continues to be driven by
strong growth in the US, where investment increased by more than 20%
year-on-year in Q1 2026 and where, until the completion of the acquisition of
Eastdil Secured 2  (#_ftn2) , the Group has limited exposure. In EMEA,
following a strong second half in 2025, market investment declined by 4%
year-on-year in Q1 2026 on a constant currency basis, including a 3% decline
in the UK market. In Asia Pacific there has been a strong start, with
investment increasing 16% year-on-year on a constant currency basis in Q1,
underpinned by broad-based growth across most major sectors and markets.

Against this backdrop, Savills Commercial Transactional Advisory business
continues to build healthy pipelines and delivered a solid performance in the
first quarter. Across EMEA, both commercial capital markets and leasing
volumes are performing in-line with expectations. There has been a significant
recovery in capital transaction revenues in our Asia Pacific region, including
a particularly strong start to the year in Hong Kong and improvement in
Mainland China. Our North American business, which is predominantly
occupier-focused today, delivered in-line with expectations, supported by some
larger transactions in the period, and has a strong pipeline.

In Savills Residential Transactional Advisory business, within our key UK
market, after two strong opening months we have seen greater caution among
both buyers and sellers since the onset of the Middle East conflict. This has
resulted in longer completion timeframes, although there has been no
corresponding rise in fall-through rates. Transactions agreed in Q1 increased
1% year-on-year driven by a 13% increase in the London market, offsetting
reduced activity outside London.

In the Middle East approximately half of the region's underlying profit is
Transactional and primarily from residential sales, which have slowed
materially during the crisis. The remainder of the business is predominantly
Consultancy and Property Management activities which remain resilient. In
total, the Middle East represented approximately 5% of Group underlying profit
before tax in FY25.

 

Less Transactional

The Group's Property and Facilities Management and Consultancy businesses
continue to perform well and benefit from the restructuring activities
undertaken last year, which are positively affecting profitability in line
with the Group's margin improvement strategy.

Savills Investment Management has performed in line with expectations and also
benefited from last year's restructuring activities.

Proposed Acquisition of Eastdil Secured

The Group currently expects the acquisition of Eastdil Secured, which was
announced with the Group's full year results on 12 March 2026, to complete
around the end of July, subject to customary closing conditions including
regulatory approvals.

Outlook

The commercial real estate market continues to be characterised by a tight
supply of prime stock, increasing rental values and liquidity in debt markets,
and we continue to have strong pipelines. Reflecting the ongoing elevated
level of geopolitical uncertainty, we anticipate some extension of timeframes
for capital advisory transactions, not dissimilar to the pattern of activity
seen during 2025 after the imposition of US tariffs. Assuming a timely
resolution of the conflict in the Middle East, we expect a similar
strengthening in market activity in the second half.

For our Residential Transaction Advisory business, we are assuming somewhat
reduced transaction levels to continue in the UK market, and for the slow down
in sales activity in the Middle East to temper the performance of our growing
International Residential business.

We expect our Less Transactional businesses to continue to perform well.

Savills has strong foundations and a robust financial position. On the basis
of a timely resolution in the Middle East, the Board continues to expect the
Group will perform in-line with its expectations for 2026, with the split of
underlying profits between the first half and second half likely to be broadly
similar to 2025.

The Group will report its Half Year results for 2026 on 13 August 2026.

For further information, please contact:

 Savills plc                                    020 7409 8934
 Simon Shaw, Group Chief Executive Officer
 Nick Sanderson, Group Chief Financial Officer
 Susie Bell, Investor Relations Director

 Teneo Communications                           020 7353 4200
 Nick de Bunsen
 Anthony Di Natale

 

Forward looking statements

Certain statements in this announcement are forward-looking statements
relating to the Group's operations, performance and financial position based
on current expectations of, and assumptions and forecasts made by, management.
They are subject to a number of risks, uncertainties and other factors which
could cause actual results, performance or achievements of the Group to differ
materially from any outcomes or results expressed or implied by such
forward-looking statements. Such forward looking statements should therefore
be construed, in light of such risks, uncertainties and other factors and
undue reliance should not be placed on them. They are made only as of the date
of this announcement and no representation, assurance, guarantee, or warranty
is given in relation to them including as to their accuracy, completeness, or
the basis on which they are made. No obligation is accepted to publicly revise
or update these forward-looking statements or adjust them as a result of new
information or for future events or developments, except to the extent legally
required. Nothing in this statement should be construed as a profit forecast.

 1  (#_ftnref1) Source: Savills Research using MSCI RCA and Macrobond.
Excludes developments sites. Year-on-year growth calculated on a constant
currency basis.

 2  (#_ftnref2) On 12 March 2026, the Group announced it had signed a
definitive agreement to acquire Eastdil Secured Holdings, LLC ("Eastdil
Secured"), the global real estate investment bank.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NOAVLLFFQELBBBK



            Copyright 2019 Regulatory News Service, all rights reserved