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MESSAGE TO SHAREHOLDERS
A Message from Jay S. Hennick, Founder & CEO
FirstService has always pursued a disciplined approach to growth with a commitment to creating long-term value for our shareholders. Our corporate motto, "creating value one step at a time" has been on the cover of our annual report for the past 10 years. It's there to remind us, there is no such thing as an overnight success.
Over the past number of years, FirstService has taken step after step to focus our efforts and deploy our capital to leverage opportunities in global real estate services. Real estate services is one of the largest markets in the world, and offers us multiple ways to grow: by strengthening existing service lines; by expanding into new markets; and by adding services in markets where we already have a presence.
2010 was a very respectable year for FirstService as our revenue approached the $2 billion mark. Colliers International benefited from the recovery in commercial real estate, particularly in the Americas and Asia Pacific. FirstService Residential Management delivered solid results once again with more than 85% of its revenue coming from recurring management fees. Property Services achieved better results than anticipated as each of our service brands delivered solid results despite the continuing challenges posed by the US economy.
Most importantly for our shareholders, our share price increased by more than 56% in 2010, finishing the year just above US$30.00 per share. FirstService shareholders have done very well over the years. A $100,000 investment at the time we listed on NASDAQ in 1995 is worth more than $2 million today. That's more than a 22% annualized return over a 15 year period - an exceptional return by any standard.
In last year's annual report, we told the story of how FirstService liberated Colliers International, converting it from an unwieldy network of affiliates to an integrated global company operating from 480 offices in 61 countries. Colliers has developed a unique operating model that is defined by a spirit of enterprise: combining the power of a global organization with the local flexibility and accountability required to help clients accelerate their success.
In 2010, Colliers undertook a major rebranding initiative. We refreshed our brand identity and united all offices under one global brand, visually communicating with consistency the strength that the "new" Colliers International brings to the market. We also recruited heavily, completed several coveted acquisitions and significantly expanded our corporate services and institutional property management businesses through new client wins.
In Residential Property Management we also completed several acquisitions, both strengthening operations in existing markets and expanding into new markets. As well, for the first time in our history, we expanded our operations outside the US, with the addition of two market-leading Canadian residential property management companies, one based in British Columbia and the other in Alberta, representing the first step in our expansion plans for Canada.
And finally, in Property Services we continued to enjoy the benefits of diversification. Consumer-oriented service brands continued to be challenged by the economy, though less so than 2010, while less economically sensitive service brands continued to generate year-over-year gains. Our property preservation operations finished the year strongly despite government-imposed delays and other uncertainties that are impacting the entire industry.
"2010 was a very respectable year for FirstService as our revenue approached the $2 billion mark".
Looking forward, we are confident our successful track record, proven business model, solid financial position and focus on global real estate services will continue to deliver strong returns for our shareholders in 2011 and beyond. FirstService has built a strong foundation, one step at a time, and we have the firepower and market leadership to leverage our operations and take advantage of growth opportunities for many years to come.
On behalf of the Board, I would like to thank all of our business leaders, partners, and employees for their inspired work over the past year. We look forward to continuing our strong growth in 2011 and beyond.
Jay S. Hennick
Founder & Chief Executive Officer
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