Financial Data and Key Metrics Changes - Third-quarter revenues were $1.46 billion, representing a 23% year-over-year increase, driven by engineering and real estate services segments [6][4] - Adjusted EBITDA for the quarter was $191 million, a 24% increase from the previous year [6] - Overall internal growth for the quarter was 13% [6] Business Line Data and Key Metrics Changes - Engineering segment revenues increased by 36%, with internal growth of 6% [7] - Real estate services segment revenues rose by 13%, with capital markets up 21% and leasing revenues up 14% [6][7] - Outsourcing revenues increased by 8%, led by valuation and advisory practices [7] Market Data and Key Metrics Changes - Assets under management reached $108 billion, a 10% increase from the previous year [5] - Capital markets showed strong growth, particularly in the U.K., Japan, and Canada [6] - Debt finance activity was robust, especially in U.S. multifamily originations [6] Company Strategy and Development Direction - The company is focused on unifying operations under the Harrison Street Asset Management brand to strengthen its business and deliver value to shareholders [4] - The engineering sector is seen as a significant growth opportunity, with plans to double revenue and profitability in the coming years [25][94] - The company is actively pursuing acquisitions in fragmented markets to enhance its service offerings [25][94] Management's Comments on Operating Environment and Future Outlook - Management anticipates a gradual recovery in capital markets as interest rates stabilize and investor confidence builds [4] - The company expects to meet its full-year outlook despite slight adjustments in investment management due to integration costs [9] - Management remains optimistic about the future, citing strong backlogs and a solid pipeline across geographic markets [7][9] Other Important Information - The company raised $1 billion in new capital commitments during the third quarter, with an additional $1.2 billion raised since quarter-end [8] - The leverage ratio was 2.3 times as of September 30, with expectations to decline to just under two times by year-end [9] Q&A Session Summary Question: Inquiry about engineering margins and service mix - Management noted that engineering margins were slightly impacted by service mix, with a decline of 20 to 30 basis points due to low-margin pass-through costs [14][15] Question: Discussion on investment management margins and future outlook - Management indicated that integration costs would impact margins for the next two to three quarters, but they are focused on long-term growth [16][18] Question: Organic growth in engineering - Year-to-date organic growth in engineering is around 8%, with expectations for continued growth in infrastructure-oriented markets [22][23] Question: Capital markets activity and pipeline - Management expressed confidence in the capital markets pipeline for the fourth quarter, expecting to exceed last year's performance [41][42] Question: Leasing activity and geographic performance - Leasing was led by the U.S., with strong performance in industrial and office sectors, and management expects continued growth [34][35] Question: Data centers as a growth opportunity - Management highlighted their comprehensive capabilities in the data center sector, emphasizing their full-cycle involvement beyond traditional real estate services [56][57] Question: Construction activity outlook - Management noted that construction activity is currently soft, particularly in condominiums, but there is ongoing activity in data centers and multifamily projects [61] Question: Operating leverage and capacity - Management confirmed a 22% operating leverage on incremental revenue in Q3, with expectations for continued leverage as revenues increase [65][66] Question: Future growth in engineering and acquisitions - Management sees significant growth potential in the engineering sector across various regions, particularly in the U.S. and Europe [92][94]