We are pleased with the annual performance of our three real estate services divisions. Each one faced its own unique challenge and each one successfully navigated a difficult economy to build long-term value for our shareholders. Overall we reported revenues of $1.7 billion, EBITDA of $133 million and adjusted earnings per share of $1.42.This compares very well with our peer group of companies, with each of these key annual performance metrics showing an increase over the 12 months ended December 31, 2008.

Our Residential Property Management division provided another solid year of operating results with revenues up 5% and EBITDA margins increasing to 9.4% from 8.8% in the previous year. Despite a challenging economy, the resiliency of this business based on the essential services we provide, along with our leading service model and focus on assisting our clients where their needs are greatest, was clearly evident.

Property Services delivered very strong results once again with revenues up 32% led by our market-leading Field Asset Services ("FAS"). FAS performed exceptionally well during another period of increasing residential mortgage foreclosures in the United States, assisting its clients in maintaining the value of their real estate collateral. This performance helped offset softness in several of our consumer-oriented franchises, while we successfully stabilized this latter group, working closely with management teams and our franchisees to align their cost structures to the realities of reduced revenues.

Commercial Real Estate was our most challenging service division operationally in 2009, given the adverse impact of tight credit and financial markets and deteriorating employment across the globe that drove many occupiers of real estate to reduce and consolidate their space requirements. Overall revenue declined 16%, but an intense focus on cost containment initiatives started in the latter half of 2008 and carrying through 2009, reduced the negative impact on our profitability, and contributed to an increase in EBITDA in our fourth quarter enabling us to finish a tough 2009 on a positive note.

Five years ago it would have been a critical threat given the concentration of our service platforms at that time, but the realignment of our business around real estate services has diversified the risk on a global basis. In 2009, 74% of our revenue was generated in the U.S., 11% in Canada, 11% in Asia Pacific, 3% in Europe, and 1% in Latin America. While the current recession has impacted the global economy more broadly than any downturn in our lifetime, our global diversification has served us well during these challenging times, and most importantly, positions us well for the opportunities that lay ahead.

Together with our executive management team that leads our Colliers International business, we made tough decisions around cost containment that had unpleasant near-term consequences. However, we believe we have done a good job in balancing an effective response to declining revenues while ensuring that we kept our eyes on the horizon, taking steps to build value and take advantage of the opportunities that surfaced as markets came under pressure.

We accomplished two significant strategic initiatives in 2009, one impacting our global operations and the other more specifically our operations in the U.S.

As highlighted in our CEO's Message to shareholders, and detailed in a dedicated section of our annual report, we successfully secured control over the Colliers International brand. From the time of our initial investment in Colliers Macaulay Nicolls ("CMN") in 2004, CMN had significant influence over the Colliers International brand, but not the control needed to deliver the type of consistency and high level of service required as part of our vision for the 3rd largest commercial real estate business globally. This move will yield benefits to our business that will become increasingly apparent over time.

We also realigned our U.S. operations to address several gaps that contributed to subpar operating results made worse by the downturn in the U.S. economy in late 2007. So in the fourth quarter of 2008, we took a major step by acquiring a majority stake in GVA Williams, one of New York City's most established commercial real estate operations. The downturn actually helped us achieve our goal of partnering with a major New York firm. Then in 2009, we refocused our efforts on providing a comprehensive approach to servicing the real estate needs of our corporate clients by establishing a Corporate Solutions and advisory practice and bringing on board new leadership, led by Dylan Taylor. We also entered important U.S. regional markets in Atlanta, Washington D.C. and Richmond, Virginia to further enhance our operations and client service delivery.

The acquisition of a 29.9% stake in Colliers CRE, headquartered in London, provides a presence in the U.K., Ireland and Spain, further expanding our global footprint into these established markets. We believe that we will be able to add significant value to this operation in Europe, while enhancing our existing working relationship through our other major global markets, particularly in our North America and Asia-Pacific regions.

Though it happened faster than we anticipated, our core belief has always been to seize competitive advantage as a global leader in real estate services. Two factors are driving us globally: 1) client requirements to provide services in multiple markets; and 2) continuing consolidation in established markets, along with inherent growth in emerging markets. The opportunities internationally are not just in commercial real estate, but also in our other service divisions which are currently focused on North America. While our identity has clearly changed in the marketplace, our core principles and operating philosophy remain constant.

We have a strong balance sheet and ample capital available to fund a higher level of investment in acquisitions. However, we will continue to be very disciplined in allocating our capital, remaining true to our "one step at a time" approach to creating value for our shareholders. We are prepared to act when the right opportunities are presented, but also are confident we can capitalize on the solid organic growth areas within our existing service divisions.

In September 2007, we completed the acquisition of a majority interest in Field Assets Services ("FAS") before the downturn in the housing market. While we would like to claim we had a crystal ball, the reality is that we acquired FAS more for its unique business model, servicing clients on a national basis through an extensive network of contractors and a sophisticated IT system and process, than riding the wave of foreclosures that really was in its infancy at the time. The incredible growth in foreclosure services has provided some significant diversification to our Property Services division and to FirstService, offsetting the slowdown in our consumer facing franchises in this division, as well as the downturn in commercial real estate. We see significant activity ahead for FAS as the U.S. residential mortgage crisis continues to play out, while our consumer sensitive franchise systems benefit from a modest recovery in spending by U.S. consumers.

We believe the change in consumer behaviour over the last couple of years will be with us for some time to come. It's no secret that consumers in the U.S. are focused on reducing debt, increasing their saving rates, and focusing their spending on essentials. FirstService is well positioned to provide services that are essential, and that may have been deferred in recent times. From an operational perspective, being franchisors and operators of a contract network has allowed us a lot of flexibility and leverage around costs. Our management teams have stayed close to their businesses, shrewdly making necessary cost-cutting decisions, all the while remaining focused on our clients.

Exceptional management, a client service culture and strong entrepreneurial instincts have made them operational and strategic leaders in all their markets. We believe this is a business that excels by listening to our clients' needs and servicing them first, while always looking for ways to improve operations and setting us apart from our smaller competitors. Our community association clients notice, and respond positively.

FirstService has a unique opportunity to contribute to a better future for our environment and the society in which we do business. We are one of the world's foremost third-party managers of both commercial and residential real estate and that brings with it an obligation, as well as an opportunity, to lead our clients in conservation and best practices in operating their properties. In response, we have initiated a sustainability program throughout our network and you can expect to hear much more from us on this issue in the coming years.

The turbulent markets of the past two years have taught us that having ample liquidity and a strong capital base is an advantage, particularly when uncertainty makes capital scarce. Though we were not compelled in any way to raise capital last year, we looked ahead and took advantage of an improvement in capital markets by completing a $77 million public offering of unsecured subordinated convertible debentures, with a fixed interest rate of 6.50% and a conversion premium of 40% at the time of issue. We used the proceeds to pay down debt on our $225 million revolving credit facility, and going into 2010 have over $200 million available to fund our future growth. We are ready to move when the opportunity is right.

In Commercial Real Estate, we expect a modest recovery in 2010, with prospects improving more as we enter the latter half of the year. We will continue to strike a balance between closely monitoring costs while aggressively strengthening our global platform as opportunities arise.

For 2010 in Property Services, we expect that FAS will once again be a major contributor to our revenue and profitability, with continued growth. Meanwhile, we expect our franchise and branchise operations to benefit from measures taken in 2009 to reduce costs and streamline operations, positioning them for a modest improvement in revenues and profitability as U.S. consumers slowly increase their spending.

In Residential Property Management, we expect continued growth in our accounts under management based on market share gains, as well as modest growth in ancillary services to assist our clients in providing a well functioning residential community for their residents. Though price increases will remain challenging, we believe that we can maintain and possibly improve margins, based on additional operating leverage achieved through continued growth.