CBRE spent nearly $37.9m (£29.4m) on a corporate restructuring of its business in 2018, its full-year accounts reveal.
The agency has announced a 15% revenue rise to $21.3bn for the year. Fee revenue also rose 15% to $10.8bn.
Adjusted net income rose 21% to $1.1bn, while adjusted earnings per diluted share increased by 20% to $3.28 per share.
The firm’s profits were affected by adjustments that had a net impact of $60.5m.
The adjustments included $37.9m before tax of expenses related to the company’s corporate reorganisation, including cost-saving measures.
There was also a $28m write-off of financing costs, $9.1m of integration and acquisition costs, and $8.9m in costs related to a litigation settlement.
All change
In August last year, CBRE announced plans to overhaul its corporate structure. The new system, which became effective from 1 January 2019, saw the business organise its operations around, and publicly report its financial results on, three global businesses: advisory services; global workplace solutions; and real estate investments.
Previously, CBRE managed its services business within its existing geographical remits: the Americas; Europe, Middle East and Africa; and Asia Pacific.
The change also saw several senior executives gain promotions, including Mike Lafitte’s appointment as global chief executive – advisory services and Jack Durburg’s promotion to global chief operating officer. Durburg was previously Americas chief executive.
Martin Samworth was also promoted to group president and chief executive of advisory services in Europe, Africa and Asia Pacific.
Operational gains
Bob Sulentic, president and chief executive officer of CBRE, said the results “reflect the operational gains and capital investments we have made”.
He added: “Our new corporate structure puts some of our sector’s very best leaders in compelling new leadership roles, sharpens our focus on excellence across our services and enables operating efficiencies across our business. These moves are already having an impact, and we expect them to come through in our financial performance in 2019.”
In the fourth quarter, the company’s revenue hit $6.3bn, a rise of 14%. Fee revenue increased by 16% to $3.4bn. Adjusted net income rose 26% to $415m, while adjust earnings per share increased 26% to $1.21 per share.
By region, the company’s EMEA business saw an 18% rise in revenue (or 23% in local currency) during the quarter to $1.6bn. Its Americas operation brought in $3.9bn in turnover, up 14%, while its APAC arm’s earning grew 9% (or 14% in local currency) to $643.9m.
The company’s development services portfolio saw revenue grow to a record $9bn in Q4, up $0.2bn from Q3.
The firm’s global investment management assets under management totalled $105.5bn, up $1bn from Q3.
Click here for further details of CBRE’s latest company results.
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