CBRE has delivered solid global growth in income and revenue in the second quarter of 2012, while its performance in Europe continues to be hampered by uncertainty.
The New York-listed firm posted a 13% hike in revenue to $1.6bn, from which it posted a 31% surge in net income to $88m compared with the same time last year.
Despite the strong global performance, the property services firm’s Europe, Middle East and Africa division saw revenue fall from $261m to $248m, partly because of currency movements.
This led to a 22% drop in operating income in the region, which fell to $12.6m from $18.1m in the same period last year, as the eurozone difficulties continued and leasing activity was slower.
Total revenue “grew modestly” in Germany, the Netherlands and the UK, but this was offset by reduced revenue in other countries, most notably France, which had a particularly strong second quarter last year, said CBRE.
EMEA chairman and chief executive Mike Strong said: “In the second quarter, we were very pleased to record year-on-year revenue growth in local currency.
“In a period when investment and leasing market activity contracted, our ability to increase revenue on a like-for-like basis is a direct result of our absolute focus on clients, the diverse nature of our business and the significant number of major mandates won by our corporate services and property management businesses in Q2.”
The Americas was the strongest performer, with a 30% rise in operating income to $127.9m and revenue growth of 13% to $1bn.
It was followed by Asia Pacific, where operating income also rose 30%, to $20.7m, on the back of revenue of $201.2m, up 7%.
Fund management also had a good year, following CBRE’s acquisition of ING REIM last year, turning it into the world’s biggest fund manager.
Operating income was $12.9m, compared with a loss of $3.6m last year, on revenue of $119.7m. Fund management now accounts for 7% of the company’s revenue, compared with 4% previously.
bridget.o’connell@estatesgazette.com
