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UK-based property services firm Savills reported a 47% increase in underlying pretax profit for the first half of 2026, supported by a strong improvement in its North American business and higher transactional activity. Underlying pretax profit rose to GBP 34.3 million, while the North American unit moved into profit after reporting a loss a year earlier. The company also completed its acquisition of US real estate investment bank Eastdil Secured for about USD 1.1 billion. However, Savills said geopolitical and economic uncertainty continued to affect investor sentiment and make transaction timelines difficult to predict.
British property firm Savills reported a 47% rise in underlying pretax profit for the first half of 2026, helped by stronger performance in North America and an improvement in its transactional business. The company said its underlying pretax profit increased to GBP 34.3 million for the six months ended June, compared with the same period a year earlier.
The North American business was a key contributor to the improvement. The unit moved to an underlying profit of GBP 2.6 million from a GBP 6.5 million loss in the corresponding period last year. Savills attributed the turnaround to benefits from restructuring, stronger leasing activity and robust mergers and acquisitions activity in the US.
Savills has also strengthened its US operations through the completed acquisition of Eastdil Secured, a global real estate investment bank. The transaction, valued at an enterprise value of about USD 1.1 billion, was completed in July and expands Savills' presence in US real estate and capital markets.
The acquisition is one of the largest transactions in Savills' history. The company had earlier said the deal would deepen its capital-markets capabilities and strengthen its North American platform. Eastdil Secured generated USD 633 million in revenue and USD 113 million in underlying EBITDA in 2025, with North America accounting for a large share of its business.
The US real estate market also benefited from continued investor interest in specific asset classes. Demand for data centres, industrial properties and senior living assets remained strong, helping offset weaker sentiment in some of Savills' other markets. The company has also reported that US investment activity remained an important driver of its wider performance during the first half of the year.
Performance in the UK was more subdued. Savills said the escalation of the conflict in the Middle East and political developments in the UK had made investors more cautious about the possibility of higher interest rates. This affected activity in its domestic market, with UK investment volumes declining during the first half of the year.
Savills reported that UK investment declined by 12% during the first half, while investment volumes increased by 24% in the US, 2% in continental Europe and 31% in Asia Pacific, according to additional details from its results. The company said transaction timeframes remained extended and investors continued to be selective, even though its pipelines remained strong.
The broader transaction pipeline remains a positive factor for the company, but Savills said converting those opportunities into completed transactions and revenue has become harder to forecast. Macroeconomic volatility and changing investor sentiment continue to influence when deals are completed.
Savills Group Chief Executive Simon Shaw said the enlarged group's pipelines remained strong, while acknowledging that transaction timelines were difficult to predict under current market conditions. He said the company remained confident about its ability to serve clients and create value despite the uncertainty.
Savills has retained its expectations for 2026 following the completion of the Eastdil Secured acquisition. The guidance now applies to the enlarged group, which includes the newly acquired US real estate investment banking business.
The company also declared an interim dividend of 7.8 pence per share, representing a 5% increase from the previous year. The results indicate that while North America and selected real estate sectors are providing support, the timing of transactions and conditions in the UK remain important factors for Savills' performance through the rest of the year.
Source Reuters
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