CB Richard Ellis has reported a 21% jump in revenue to $1.4bn (£857m) in a mixed set of results released late last night for the three months to the end of June.
The Los Angeles-based firm, which announced a corporate name change to CBRE Group effective from 1 January 2012, posted a 12% increase in second-quarter net income to £61.2m, or 19c a share.
This is up from $54.8m, or 17c a share, a year earlier.
Stripping out $5.7m in charges related to its purchase of most of ING Group’s real estate arm, the company earned $67m, or 21c per share, which is short of analysts expectations of 24c a share.
Earnings before interest taxes depreciation and amortization rose by just 3% to $166.1m.
Geographically, the
EMEA was the worst performing regions with revenue rising by 16% to $261.1m, operating income up by just 5% to $18.9m and EBITDA increasing by 8% to £21.4m.
The group said the region’s figures “reflected higher compensation expense from select hiring in 2010 and early 2011 in anticipation of improving transaction revenue and in support of new initiatives and recently won contracts that should translate into meaningful revenue”.
The group’s investment management business increased revenue by 23% to $57.6m but was pushed to an operating loss of $3.6m because of $4.8m of costs association with its ING buy.
Assets under management totalled $39.1bn at the end of the Q2, up by 4% from year-end 2010 and by 16% from Q2 2010. The second-quarter total does not yet include $21.1bn of global listed real estate securities assets managed by CBRE Clarion Securities, which were acquired from ING Group on July 1, 2011.
“We are very pleased with the strong revenue gains we recorded across the Company during the second quarter,” said chief executive Brett White.
“Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions. This performance illustrates the ability of our people and platform to drive continued business gains in a global economy that is still marked by slow, uneven growth.”
Bridget.oconnell@estatesgazette.com
