Altus Group to Unveil Value Creation Plan at Investor Day Today

Executive Summary

• Altus Group announced a mid‑term goal to become a “Rule of 40” company by year‑end 2027, tying revenue growth and Adjusted EBITDA margin.
• The Company launched a C$500 million capital return program, including a Substantial Issuer Bid (SIB) to repurchase up to C$350 million of common shares at a Dutch‑auction price range of C$50–C$57 per share (expected 26 Nov 2025 – 8 Jan 2026).
• Altus disclosed major portfolio optimisation actions: sale of its Appraisals & Development Advisory segment and evaluation of further non‑core analytics divestitures, plus plans for a U.S. dual‑listing by 2027.

Key Details

• Mid‑term financial target: Achieve “Rule of 40” at the consolidated level (Revenue growth + Adjusted EBITDA margin ≥ 40%) by end‑2027.
• Portfolio optimisation:
• Focus on core ARGUS and Valuation Management Solutions (VMS) businesses.
• Initiated sale process for Appraisals & Development Advisory (A&DA) segment.
• Evaluating divestiture/optimisation of other non‑core analytics products that dilute growth/retention.
• Capital return programme:
• Board authorized up to C$500 million via a Substantial Issuer Bid (SIB) and Normal Course Issuer Bid (NCIB).
• SIB to purchase/cancel up to C$350 million of common shares.
• Offer period: approx. 26 Nov 2025 – 8 Jan 2026 (subject to extension/withdrawal).
• Dutch‑auction price range: C$50–C$57 per share, in C$0.25 increments; lowest price that allows purchase of maximum tendered shares up to the C$350 million cap.
• Directors/officers will not tender any shares; no proportional tenders required; offer not conditional on minimum tender volume.
• NCIB: To be renewed in Q1 2026 with ongoing purchases throughout the year.
• Leverage target: Funded Debt/EBITDA ≈ 2.5×; modest incremental leverage deemed acceptable given stable financial profile.
• Dividend policy: Commitment to maintain current quarterly dividend.
• New financial disclosures (effective Q4 FY25):
• Segment revenue breakdown – Software, VMS, Data, Services.
• Operating metrics – Annual Recurring Revenue (ARR) and retention for Software/VMS lines.
• Functional P&L statements.
• Updated Adjusted EBITDA and Adjusted Earnings definitions.
• U.S. dual‑listing: Early‑stage plan to list Altus shares on a U.S. exchange by 2027; no capital raise associated; TSX listing retained.
• Investor Day logistics: Presentation began ~8:30 a.m. ET, concluding around noon; webcast and presentation materials available on the company’s IR website.

Notable Quotes

“Altus has a tremendous opportunity ahead as it enters its next growth phase… The initiatives we are announcing today will accelerate the pace of our execution and further our position as a pure‑play CRE intelligence provider.” – Mike Gordon, Executive Chair & Incoming CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.