Cushman & Wakefield saw revenue come close to its 2007 peak last year, but took a 26% hit on net profit.
The global property services firm, which is majority-owned by the Agnelli family through the Exor investment business, today reported a drop in net profit on a US GAAP basis from $25.7m to $19m. It said the $6.7m fall was caused primarily by increases in income tax in the US.
EBITDA – earnings before interest taxes depreciations and amortization – rose 19.7% to $111.1m.
Revenue for the year was the second highest in the firm’s history, coming in at $2bn against $2.1bn in 2007. It was the firm’s second consecutive year of double-digit revenue growth.
Commission and service fee revenue, which excludes reimbursed costs related to managed properties and other costs, increased by $172.7m, or 12.3%, to $1.6bn.
Last year’s revenue growth was led primarily by leasing, corporate occupier and investor services and capital markets. However, all service lines experienced significant year-over-year revenue growth, the firm said. The value of global sales and leasing transactions rose by $22bn in 2011 to around $89bn.
“In 2011 Cushman & Wakefield moved aggressively, with the full support of Exor, to implement its long-term strategic plan,” said chief executive Glenn Rufrano. “This positioned the firm well to benefit from significant improvements in market conditions in the first half of the year and to finish with improved performance and transaction volume despite a challenging fourth quarter for the sector.
“Full-year operating performance improved significantly, and the company was able to take big strides on major initiatives, including global alignment of management, providing a consistent service mix, restructuring our credit facilities, continued reduction of debt, and making strategic hires. We will remain focused on executing on our plan and delivering the best real estate services to our clients.”
During the year, C&W was involved in more than 31,000 property sales and leasing transactions, with an aggregate value of nearly $89bn. Highlights included working as the exclusive agent on behalf of The Port Authority of New York and New Jersey and The Durst Organization to arrange a 1m sq ft office lease to Condé Nast at One World Trade Center in Lower Manhattan; advising Google on its €100m acquisition of two buildings in Dublin, the city’s largest investment transaction since 2007; arranging the $715m sale of Capital Square, a 386,000 sq ft, class-A office building in Singapore; representing Nomura Holdings in its 900,000 sq ft lease at Worldwide Plaza in Manhattan; and completing the year’s largest office lease globally through its representation of Shell Oil Company in its 1.2m sq ft renewal in Houston.
The firm’s corporate occupier and investor services group won contracts with Ernst & Young, New York Life, United Technologies and Harley Davidson.
julia.cahill@estatesgazette.com
