FINANCE: Leasing and property/facilities management fees were the main drivers of performance at the world’s two biggest agents last year, despite soaring investment levels.
Both JLL and CBRE published strong sets of full-year accounts this week, showing revenue rises of 22% and 26% respectively.
Revenues at JLL increased by more than $1bn (£655m) to top $5.4bn, while CBRE’s revenues reached $9bn, up from $7.2bn in 2013. Net income at JLL rose from $285m to $393m, with CBRE showing growth of 18% to $561.1m.
CBRE chief executive Bob Sulentic said the “banner year” for the firm had been led by its property leasing division, which recorded a 20% increase in turnover in the three months ended December 2014, and by global outsourcing which, aided by the acquisition of facilities management giant Norland, posted 59% growth. At JLL, the largest revenue rises came from property and facilities management, up by 30% over the 12-month period to $1.5bn.
EMEA figures for both firms showed double-digit lifts across both revenues and profit. Including Norland, revenues during the fourth quarter increased by 71% to $740.1m at CBRE. Excluding Norland, revenues were up by 16%. JLL recorded a 20% increase in EMEA turnover during the three-month period to $556.6m. EBITDA rose by 66% to $70.2m for CBRE and by 28.6% to $91m for JLL.
Mike Strong, EMEA executive chairman at CBRE, said: “We have delivered record revenues in the UK and Netherlands and particularly strong performances in Spain and Ireland.”
JLL was the standout winner in fund management performance, however, with LaSalle Investment Management raising a record $8.9bn in equity during the year and boosting revenues by 46% to $415.1m.
CBRE, on the other hand, recorded a 13.5% decrease in revenues to $468.9m. It raised $8.6bn during the year.
CBRE v JLL 2014
| CBRE | JLL | |
|---|---|---|
| Global | ||
| Revenue | 9bn | 5.4bn |
| Net income | 561.1m | 393m |
| EMEA | ||
| Revenue | 2.3bn | 1.3bn |
| EBITDA | 158.4m | 91m |
| Fund management | ||
| Revenue | 468.9m | 415.1m |
| AUM | 90.6bn | 53.6bn |
