Best Services Companies To Watch For 2016

Best Services Companies To Watch For 2016: Realogy Holdings Corp (RLGY)

Realogy Holdings Corp., incorporated on December 14, 2006, is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company's operating platform is supported by the Company's portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby's International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. In October 2013, Realogy Holdings Corp's Coldwell Banker Residential Real Estate LLC announced that it has acquired the assets of Coldwell Banker Cocoa Beach Realty's two offices in Coco a Beach, Fla. In October 2013, Realogy Holdings Corp's NRT LLC announced the acquisition of Frank Howard Allen Realtors Company-owned operations in Northern California.

The Company operates in four segments: Real Estate Franchise Services (RFG), Company Owned Real Estate Brokerage Services (NRT), Relocation Services (Cartus) and Title and Settlement Services (TRG).As of December 31, 2012 , the Company's franchise systems had approximately 13,600 franchised and company owned offices and 238,900 independent sales associates operating under its franchise and brands in the United States and 101 other countries and territories around the world, which includes approximately 710 of its company owned and operated brokerage offices.

Real Estate Franchise Services

The Company is the franchisor of residential real estate brokerages in! the world through its portfolio of well known brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby's International Realty an! d Better Homes and Gardens Real Estate. The Company derives substantially all of its real estate franchising revenues from royalty fees received under long-term (typically ten year) franchise agreements with its franchiseesThe Company's franchisees pay the Company fees for the right to operate under one of the Company's trademarks and to enjoy the benefits of the systems and business enhancing tools provided by its real estate franchise operations.

As of December 31, 2012 , the Company's real estate franchise systems had approximately 13,600 offices worldwide in 102 countries and territories, including approximately 6,100 brokerage offices in the United States and approximately 238,900 independent sales associates worldwide (which included approximately 41,300 independent sales agents working with its company owned brokerage offices) including approximately 166,000 sales associates operating under its franchise and brands in the United States, with an average t enure among United States franchisees of approximately 19 years as of December 31, 2012 .

Company Owned Real Estate Brokerage Services

The Company owns and operates the residential real estate brokerage business in the United States under the Coldwell Banker , Sotheby's International Realty , ERA , Corcoran Group and CitiHabitats brand names. The Company offers full-service residential brokerage services through approximately 710 company owned brokerage offices in more than 35 metropolitan areas of the United States. In addition, the Company participates in the mortgage process through its 49.9% ownership of PHH Home Loans LLC (PHH Home Loans), its home mortgage venture with PHH. The Company's home mortgage joint venture with PHH is the recommended provider of mortgages for the Company's real estate brokerage and relocation servic! e custome! rs (unless exclusivity is waived by PHH). The Company also assists landlords and tenants through property manage ment services. In addition, as a full-service real estate br! okerage c! ompany, the Company promotes the complementary services of its relocation and title and settlement services businesses, in addition to PHH Home Loans.

Relocation Services

The Company is a global provider of outsourced employee relocation services. The Company is the provider of such services in the United States and also operates in key international relocation destinations. The Company offers a range of employee relocation services designed to manage all aspects of an employee's move to facilitate a smooth transition in what otherwise may be a complex and difficult process for the employee and employer. The Company's relocation services business serves corporations, including over 64% of the Fortune 50 companies, as well as affinity organizations such as insurance companies and credit unions that provide the Company's services to their members. During the year ended December 31, 2012, the Company assisted in over 158,000 relocations in more than 15 0 countries for approximately 1,500 active clients and as of December 31, 2012, its top 25 relocation clients had an average tenure of 17 years with the Company.

The Company primarily offers corporate clients employee relocation services, such as homesale assistance, including the evaluation, inspection, purchasing and selling of a transferee's home; the issuance of home equity advances to transferees permitting them to purchase a new home before selling their current home (these advances are generally guaranteed by the client); certain home management services; assistance in locating a new home; and closing on the sale of the old home, generally at the instruction of the client; expense processing, relocation policy counseling, relocation-related accounting, including international assignment compensation services, and other consult! ing servi! ces; arranging household goods moving services, with approximately 72,000 domestic and international shipments in 2012 , a nd providing support for all aspects of moving a transferee'! s househo! ld goods, including the handling of insurance and claim assistance, invoice auditing and quality control; coordinating visa and immigration support, intercultural and language training, and expatriation/repatriation counseling and destination services, and group move management services providing coordination for moves involving a number of transferees to or from a specific regional area over a short period of time.

Title and Settlement Services

The Company assists with the closing of real estate transactions by providing full-service title and settlement, which is closing and escrow services to customers, real estate companies, including its Company-owned real estate brokerage and relocation services businesses, as well as a targeted channel of financial institution clients, including PHH. In 2012, TRG was involved in the closing of approximately 194,000 transactions of which approximately 54,000 related to NRT. In addition to the Company's own tit le and settlement services, the Company also coordinates a nationwide network of attorneys, title agents and notaries to service financial institution clients on a national basis. The Company also serves as an underwriter of title insurance policies in connection with residential and commercial real estate transactions. As of December 31, 2012 , the Company had approximately 340 offices, approximately 200 of which are co-located within one of its company owned brokerage offices.

The Company competes with HSF Affiliates LLC, Brookfield Residential Property Services, HomeServices of America, Berkshire Hathaway HomeServices; RE/MAX International, Inc.; and Keller Williams Realty, Inc.

Advisors' Opinion:

• [By Peter Graham]

  Small cap mortgage originator and servicer stock PHH Corporation (NYS! E: PHH), ! which has real estate services stock Realogy Holdings Corp (NYSE: RLGY) as a joint venture partner and small cap Walter Investment Management Corp (NYSE: WAC) as a potential peer, has elevated short interest of 34.37% according to Highshortinterest.com. PHH Corporation did sell its more stable Fleet Management business last summer in order to concentrate on its more volatile residential mortgage business. 

• [By Paul Ausick]

  Big Earnings Movers: Kellogg Co. (NYSE: K) is up 0.7% at $62.72 after announcing a restructuring program. CME Group Inc. (NASDAQ: CME) is down 1.2% at $73.77 after reporting earnings this morning. Realogy Holdings Corp. (NYSE: RLGY) is up 7.7% at $43.79.

• [By Traders Reserve]

  Realogy Holdings (RLGY) is a real estate services provider that owns a huge corner of the market with Century 21, Coldwell Banker, ERA and Sotheby's International Realty (BID). In 2012, the company had a sales volume three times that of its nearest domestic competitor, accounting for 26% of all broker-assisted transactions in the U.S. It has 239,000 agents working in every corner of the world.

• [By Russ Krull]

  Real-estate and relocation firm Realogy (NYSE: RLGY  ) moved $500 million in a five-year, 3.375%, high-yield, or junk, issue. Yes, that's "3.375%" and "high-yield" describing the same paper. The deal was up-sized from initial plans for $450 million. The money will be used for early redemption of some 11.5% paper. The company is paying a premium to redeem the existing paper but will save nearly $40 million in interest expenses. Realogy reported more than $500 million in losses last year, so the refinance helps, but the company has more work to do to turn a profit.

source from Top Stocks For 2015:http://www.topstocksblog.com/best-services-companies-to-watch-for-2016.html