FINANCE: CBRE has revealed a strong start to 2014, posting a 26% increase in revenue to $1.9bn led by EMEA in the first quarter.
The New York-listed firm also revealed a 60% surge in net income – excluding selected charges – to $82.4m (£48.8m), up from $51.5m in Q1 2013, driven by “nearly all business lines” in its global regions.
The group’s EBITDA increased by 23% to $198.8m.
EMEA set a brisk pace with a 127% increase in revenue, fuelled by contributions from the acquisition of FM firm Norland Managed Services, as well as double-digit organic growth across all major business lines.
Excluding Norland contributions, EMEA revenue still rose 32% as market activity continues to revive in step with improved economic activity and investor sentiment across Europe.
CBRE noted that performance improved in several countries, most notably in the UK.
EMEA EBITDA increased from a loss of £500,000 to $23.4m and operating income totalled $5.1m, compared with an operating loss of $6.2m for the same period in 2013.
The Americas, CBRE’s largest business segment, posted a 10% hike in revenue to $1bn, driven by property sales (up 38% in the US and 17% across the region) and leasing (up 10%) as well as the occupier outsourcing business (up 13%).
EBITDA rose 18% to $125.8m and operating income was up 16% to $86.6m.
Asia Pacific posted solid revenue growth of 8% to $195.6m, led by a continued strong rebound in property sales.
Reflecting a highly active global investment market and cross-border capital flows, global property sales revenue rose 27% for the quarter.
Growth in EMEA was particularly robust, as sales revenue increased 61%. CBRE benefited from recovering activity in continental European markets that had been affected by the economic downturn as well as continued strength in Germany and the UK.
Bob Sulentic, president and chief executive of CBRE, said: “We are very pleased with our strong start to 2014.
“We drove very strong revenue and earnings growth across our global regions and in nearly all business lines. Our performance in the period reflects the ongoing investments we have made in professional talent and resources, and the success of our people in creating value for our clients. All of this allowed us to capture additional market share.”
bridget.o’connell@estatesgazette.com
