CBRE has posted 23.5% growth in its global revenue to $7.3bn (£5.9bn), with core EBITDA rising by 56.5% to $732m during the first quarter of 2022.
All three of its main business segments – advisory services, global workplace solutions and real estate investments – recorded revenue increases. Advisory rose by 31.6% to $2.2bn globally, with GWS up by 19.4% at $4.8bn and REI up by 34.4% to $284m.
In advisory, UK leasing revenue rose by 26% (29% in local currency terms), 39% above a pre-pandemic first-quarter peak in 2020. While a solid performance, this was behind global leasing revenue growth of 49%. Continental Europe, paced by France and Germany, was up by 39%.
The UK also lagged behind its counterparts in the property sales division, posting 30% growth in revenue. This compared with a 65% jump in the US, 91% rise in the Pacific regions and 50% increase in continental Europe.
Acquisitions made during Q1 included Scott Murdoch’s niche retail agency CWM and Oxfordshire agency VSL, as well as a project management firm in Spain and Portugal. The deals were completed for a total of $25.9m in cash and deferred consideration.
Operating cash outflows deepened to $436m, from $223m in the same quarter last year. The agent said this factored in a negative impact of around $133m associated with cash tax payments and refunds. Net capex stood at $39.9m.
The agent had around $4.6bn of liquidity at the end of the quarter, consisting of about $1.5bn in cash, plus the ability to borrow some $3.1bn under its revolving credit facilities.
Bob Sulentic, president and chief executive of CBRE, said: “The year has started out strong for CBRE with excellent momentum across all three business segments. We continue to execute a strategy to diversify our business – both organically and through investment – broadly across asset types, lines of business, clients and geographies. Our performance for the quarter drives home how effectively this strategy is working.
“We generate significant cash that is being strategically deployed into growth areas of our business. Notably, Turner & Townsend continues to perform ahead of our expectations, both financially and operationally, and we are enthusiastic about the added dimensions they bring to CBRE, particularly in infrastructure, natural resources and sustainability services.
“At the same time that we are investing in our business, we are returning cash to shareholders at an elevated clip, with share repurchases totalling $627m thus far this year.”
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