CBRE has posted a 17% drop in pre-tax profit in the third quarter.
The agent’s profit fell to $321.5m, down from $386.7m in Q3 2018. Total revenue grew to $5.9bn during the three months ended September 30, up 13% from the same period last year.
Adjusted EBITDA fell 2% to $454.6m for the six months ended 30 June 2019 compared to the first half of 2018, while basic income per share fell 10 cents to $0.76.
CBRE president and chief executive Bob Sulentic said: “Our global occupier outsourcing, US property sales and commercial mortgage origination business lines were especially strong this quarter.
“Growth on the bottom line was restrained by a light quarter of development asset sales – which can fluctuate significantly quarter to quarter – compared with record earnings from such sales in last year’s third quarter.”
He added that he was looking ahead to 2020 with “cautious optimism”, and said: “Commercial real estate and macro-economic fundamentals remain favourable, particularly in the Americas, our largest region. Our diversified business and geographic mix positions CBRE to continue thriving, despite ongoing trade and geopolitical uncertainties.”
CBRE recorded 8% growth in its advisory property sales business for the third quarter of 2019.
Its Americas property sales surged by 16%, but outside the Americas sales fell 6%. Weak residential sales in the Pacific region and parts of Asia contributed to this decline.
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