HFF reports 2006 financial results.

HFF, Inc. reported its financial and production volume results for the full year of 2006.

The company, through its operating partnerships, Holliday Fenoglio Fowler, L.P. (HFF LP) and HFF Securities, L.P. (HFF Securities), is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry based on transaction volume and one of the largest full-service commercial real estate financial intermediaries in the country.

The company's net income reported for 2006 was $51.6 million, compared with $48.1 million for the same period in 2005. Revenue for the full year 2006 was $229.7 million, an increase of $23.9 million or 11.6% over the comparable period for 2005. Operating Income was $54.8 million for 2006, an increase of $6.6 million or 13.6% compared with the same period for 2005. EBITDA was $58.2 million, an increase of $7.1 million or 14.0% compared to the same period last year.

Interest expense of $3.5 million for the full year 2006 was $3.4 million higher than the $0.1 million in interest expense for the comparable period for 2005 due to higher debt balance throughout the year compared to 2005.

These financial results are based on the combined financial results of the operating partnerships. In February 2007, the company completed an initial public offering by issuing 16,445,000 shares of Class A common stock at a price of $18.00 per share, the proceeds of which, after deducting underwriting discounts and offering expenses, were used to purchase from HFF Holdings, LLC all of the shares of Holliday GP, the general partner of the operating partnerships, and partnership units representing approximately 45% of each of the operating partnerships (including partnership units in the operating partnerships held by Holliday GP). HFF Holdings, LLC used a portion of these proceeds to repay all outstanding borrowings under HFF, LP's credit agreement.