CBRE delivered a strong performance in the traditionally slower first quarter, although its results were dented by costs relating to its purchase of investment manager ING REIM.
The New York-listed agent posted a 14% hike in net income of $45.9m – reflecting earnings per share of $0.14 – excluding selected charges.
These costs, primarily relating to the takeover of ING REIM, totalled $18.9m, net of income taxes, for the quarter.
CBRE’s rise in net profit came on the back of a 14% hike in revenue to $1.35bn.
Earnings before interest, tax, depreciation and amortisation rose 25% to $150.5m in the current period, before being reduced to $140.5m by ING REIM-related costs.
CBRE growth for the quarter was driven by the Americas region, accounting for 60% of total company revenue and nearly 70% of normalised EBITDA.
Revenue in the EMEA region fell slightly to $197.4m, compared with $205m for the first quarter of 2011, reflecting the “impact of Europe’s continuing weak economic growth, which resulted in lower sales and leasing activity market-wide”.
Revenue grew modestly in the Netherlands and the UK, but this was offset by reduced revenue in other countries in the region, most notably in France, which had a particularly strong first quarter last year.
In line with the revenue trend, the region reported an EBITDA loss of $7.1m compared with positive EBITDA of $3m in the prior year first quarter.
Operating loss totalled $11.3m, compared with operating income of $0.7m for the same period in 2011.
Its newly merged investment management business, CBRE Global Investors, contributed 10% of revenue and 30% of normalised EBITDA.
Brett White, chief executive, said: “We delivered solid double-digit top-line growth – and even strong normalised EBIDTA growth – despite the challenges presented by the on-going economic difficulties in Europe and slower investment activity in Asia Pacific.
“Our performance against this background underscores the strength and diversity of our platform, and out ability to effectively calibrate operating costs to an uncertain market environment.”
bridget.o’connell@estatesgazette.com
