UPDATE: A strong performance from CBRE’s UK business was not enough to stem turnover and profit falls across the agent’s EMEA division.
Third-quarter figures from the world’s largest agent show that revenue in EMEA fell by almost $50m (£31m) to $228.7m – a 17% drop on Q3 2011 figures.
The decrease in revenue was attributed by the continuing effects of the sovereign debt crisis.
EBITDA for the region swung to a loss of $8.1m, including charges, down from a profit of $21.1m in Q3 2011. Excluding charges, EBITDA fell to $7.2m.
CBRE said that the UK business had proved resilient, however, with overall revenue up by 2%. It said that property sales activity was “a source of particular strength” in the UK, with CBRE claiming a greater share of investment activity.
The Americas were the best performing region for the agent, with a 4% growth in overall revenue to$996.4m and a 2% increase in EBITDA to £128.7m.
Worldwide turnover edged up by 1% to $1.6bn, with EBITDA broadly static at $195.3m.
However, for the first nine months of the year, revenue across the CBRE business has risen by 9% to $4.1bn, with EBITDA, including charges, up by 13% to $515.9m.
Chief executive Brett White said: “Many investors and occupiers turned more cautious in the third quarter. Concerns about Europe’s ongoing sovereign debt crisis and Asia’s slowing growth, which have been weighing on markets for most of the year, were heightened by unease about weakening corporate profit outlooks as well as US fiscal policy and political uncertainty. CBRE was not immune from these macro trends.”
He added: “The current recovery, unlike past ones, remains frustratingly slow and inconsistent, and is subject to quick swings in market sentiment. We expect these variable conditions to persist until global economic growth and job creation shift into higher gear.
“In the meantime, we remain highly focused on operating efficiently while investing in our platform, as we help clients navigate this choppy environment.”
david.harris@estatesgazette.com
UPDATE: A strong performance from CBRE’s UK business was not enough to stem turnover and profit falls across the agent’s EMEA division. Third-quarter figures from the world’s largest agent show that revenue in EMEA fell by almost $50m (£31m) to $228.7m – a 17% drop on Q3 2011 figures. The decrease in revenue was attributed by the continuing effects of the sovereign debt crisis. EBITDA for the region swung to a loss of $8.1m, including charges, down from a profit of $21.1m in Q3 2011. Excluding charges, EBITDA fell to $7.2m. CBRE said that the UK business had proved resilient, however, with overall revenue up by 2%. It said that property sales activity was “a source of particular strength” in the UK, with CBRE claiming a greater share of investment activity. The Americas were the best performing region for the agent, with a 4% growth in overall revenue to$996.4m and a 2% increase in EBITDA to £128.7m. Worldwide turnover edged up by 1% to $1.6bn, with EBITDA broadly static at $195.3m. However, for the first nine months of the year, revenue across the CBRE business has risen by 9% to $4.1bn, with EBITDA, including charges, up by 13% to $515.9m. Chief executive Brett White said: “Many investors and occupiers turned more cautious in the third quarter. Concerns about Europe’s ongoing sovereign debt crisis and Asia’s slowing growth, which have been weighing on markets for most of the year, were heightened by unease about weakening corporate profit outlooks as well as US fiscal policy and political uncertainty. CBRE was not immune from these macro trends.” He added: “The current recovery, unlike past ones, remains frustratingly slow and inconsistent, and is subject to quick swings in market sentiment. We expect these variable conditions to persist until global economic growth and job creation shift into higher gear. “In the meantime, we remain highly focused on operating efficiently while investing in our platform, as we help clients navigate this choppy environment.” david.harris@estatesgazette.com
