CBRE has reported an 11% increase in revenue to $1.7bn (£1.1bn) in a strong set of third-quarter results.
The New York-listed firm posted a 19% hike in its adjusted net income, which came in at $99.7m, leading to adjusted earnings per share of $0.30, up from $0.26 the previous year.
Property sales, occupier outsourcing and investment management drove performance with the former up 29% as a result of increased activity in Germany, Japan, the UK and the US. EMEA sales revenue was up 50%.
Leasing revenue growth accelerated to 11% – the strongest performance in that business line since the third quarter of 2011. Strong leasing revenue growth was evident in EMEA, which was up 20%.
Global corporate services – the firm’s occupier outsourcing business – produced a 14% global increase in revenue.
Among the regions EMEA set the pace with a 25% leap in revenue to $285.5m. Double-digit growth was seen in all major business lines, including a 50% increase in property sales.
The Americas, CBRE’s largest business segment, posted 11% revenue growth.
“During the third quarter, CBRE benefited significantly from our well-balanced business and leading position across markets and service lines around the world,” said Bob Sulentic, president and chief executive officer of CBRE.
“We once again delivered strong growth on the top and bottom lines, while continuing to make measured, but very important, strategic investments in our people and technology that are strengthening our company and positioning us for continued success.
“While property sales continued to be our fastest-growing service line – reflecting CBRE’s leading position in key investment markets worldwide – we were also pleased to see a quicker pace of growth in our leasing business and continued double-digit increases in occupier outsourcing. Our performance was also bolstered by higher contributions from our investment management business, where we are capitalising on the favourable sales environment to harvest gains in the property portfolio on behalf of our investor clients.”
Michael Strong, executive chairman, CBRE – Europe, Middle East and Africa, added: “Our EMEA business delivered an impressive Q3 2013 performance, achieving strong revenue and EBITDA gains.
“All service lines reported year-on-year revenue growth, most notably in capital markets where we increased Q3 year-on-year revenue by 50% and further boosted market share. Our leasing business also benefited from returning occupier confidence, making market share gains for the third successive quarter this year.
“These results reinforce the benefits of our strong and diverse business platform in which we will continue to invest to meet the changing needs of our clients.”
bridget.oconnell@estatesgazette.com
