CBRE has recorded double-digit increases in both profits and revenues for the three months ended 30 September.
Global revenues for the agent totalled $5.3bn (£4.1bn) during Q3, a 13% increase on Q3 2017. EBITDA was up by 28% to $524.3m.
President and chief executive Bob Sulentic said: “We continue to deliver double-digit increases on the top and bottom lines.
“Our strong growth this quarter was driven by gains across major parts of our business – notably, global leasing, occupier outsourcing, mortgage origination and development services.”
EMEA revenues totalled $1.3bn during the period, up by 23% in local currency terms, with EBITDA up by 9% to reach $78.7m. CBRE said there was notable growth from its businesses in the UK, Germany, Italy and Spain.
Martin Samworth, group president and EMEA chief executive, said: “We have reported a strong quarter for CBRE in the EMEA region with year-on-year double-digit growth in revenue and adjusted EBITDA, in local currency.
“These results reflect the broad diversification of our business and included new client wins and expansions from our outsourcing business and some notable successes for our transactions teams.
“Despite the challenging macroeconomic environment in some of our markets, we enter the fourth quarter with a healthy pipeline of business and in a strong position to provide differentiated value-added outcomes for our clients.”
CBRE’s leasing business paced revenue growth with a 17% gain, as all three global regions produced double-digit increases.
The Americas led the way with an 18% increase. EMEA was also strong, with France and the United Kingdom driving a 17% gain for the region. APAC rose by 12%, led by Australia, Greater China and India.
CBRE’s occupier outsourcing business also recorded double-digit increases in revenue, up by 15% year-on-year.
The capital markets business continued to grow, but not as aggressively as the leasing and outsourcing business. Combined revenue from the capital markets businesses – property sales and commercial mortgage origination – rose by 7% during the quarter.
However, commercial mortgage origination activity was especially strong, with revenues up by 22%.
Global property sales revenues rose by 4%, with EMEA as the primary driver. It recorded a 24% revenue jump, as Germany, Ireland, Spain and the United Kingdom all posted double-digit increases.
Americas sales revenue was up by 2%, while APAC revenue fell by 9% following a strong Q3 2017.
CBRE said its recurring revenue from loan servicing activities continued to grow, rising by 21%. Its loan servicing portfolio now totals around $196bn – up by 19% from the same period in 2017.
Revenues for the nine months ended 30 September totalled $15bn, up by 15% year-on-year, with EBITDA up by 17% to $1.3bn.
Sulentic said: “While investors have clearly been concerned about the effects of higher interest rates and trade tensions, commercial real estate fundamentals have been resilient in the face of higher rates, and escalating trade tensions do not appear to be impacting our overall business.
“However, continued escalation could impact business sentiment, most notably for select markets in Asia, which, combined, typically represent approximately 2% of our adjusted EBITDA.”
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