CBRE group revenue up 20%

CBRE has reported a 20% rise in group revenue in 2016 to $13.1bn across is global businesses. Earnings before tax for the year rose by 6% to $1.4bn, as the group reported a strong fourth quarter to round out the year. “We ended 2016 on a high note,” said Bob Sulentic, CBRE’s president and chief executive. “CBRE recorded double-digit adjusted earnings growth for the fourth quarter and the year, with excellent performance in all three regional services businesses.” While CBRE’s American operations accounted for the majority of its earnings, the Asia-Pacific region saw the highest growth. It said revenue in the EMEA region was affected by foreign currency movement, noticeably the depreciation of the pound. The group’s UK revenue grew by 8%; however, this was led by its occupier outsourcing business line. It said there was a modest decline in UK sales revenue following the referendum. “CBRE enters 2017 in a great position following very strong performance in 2016,” Sulentic said. “Our business has positive underlying momentum, as the global economy continues to grow – albeit at a modest pace – and commercial real estate fundamentals remain sound.  Our outlook is bolstered by the many advantages CBRE holds as the sector leader.” Martin Samworth, CEO CBRE EMEA, said: “In a year when the UK-wide property market saw a material decline in total sales volumes, the strength and diversification of our business meant that over all, we were able to grow our revenues in the UK for the fourth quarter and the full year.” Annual and quarterly earnings   $000 Three months ended 12 months ended 31 December 31 December 2016 2015 (1) 2016 2015 (1) Americas Revenue $2,096,782 $1,971,160 $7,226,466 $6,189,913 Costs and expenses: Cost of services 1,450,971 1,358,386 5,034,497 4,116,257 Operating, administrative and other (2) 362,016 378,510 1,353,830 1,274,948 Depreciation and amortization 67,763 64,158 254,105 198,908 Operating income $216,032 $170,106 $584,034 $599,800 EBITDA $287,922 $237,335 $855,941 $818,732 EMEA Revenue $1,152,114 $1,186,883 $3,917,939 $3,004,484 Costs and expenses: Cost of services 839,070 900,063 3,027,351 2,205,550 Operating, administrative and other (2) 214,430 217,873 691,878 618,271 Depreciation and amortization 15,992 23,796 66,639 68,370 Operating income $82,622 $45,151 $132,071 $112,293 EBITDA $98,383 $68,646 $200,073 $182,974 Asia Pacific Revenue $462,808 $379,539 $1,485,970 $1,135,070 Costs and expenses: Cost of services 313,057 272,072 1,061,879 761,125 Operating, administrative and other (2) 82,648 85,745 299,249 274,836 Depreciation and amortization 4,846 4,223 17,803 15,580 Operating income $62,257 $17,499 $107,039 $83,529 EBITDA $67,307 $21,491 $124,980 $98,929 • To send feedback, e-mail alex.peace@estatesgazette.com or tweet @EGAlexPeace or @estatesgazette