CB Richard Ellis Group’s profit and revenue rise
Profit and revenue at the world’s largest commercial property brokerage grew in the second quarter as sales and leasing activity picked up.
Los Angeles-based CB Richard Ellis Group Inc. said the company’s revenue from arranging real estate transactions increased globally as investors returned to the property market and businesses hastened to take advantage of reduced rents.
“Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions,” Chief Executive Brett White said. Revenue rose 21% to $1.4 billion.
Second-quarter profit was $61 million, or 19 cents a share, compared with $54.8 million, or 17 cents a share, in the year-earlier quarter. Adjusted for certain items related to an acquisition, profit was 21 cents a share, which did not meet Wall Street analysts’ expectations of 24 cents a share.
“It’s mildly disappointing that profits didn’t grow as much as revenue did,” said analyst Craig Silvers, president of Bricks & Mortar Capital. “Overall it was a good quarter but not the blowout they produced the last three or four quarters.”
Reflecting the strengthening of the real estate capital markets, sales revenue grew 44% globally, led by a 68% rise in the U.S., Canada and Latin America. Revenue from leases rose 22% and increased strongly across every region.
CB Richard Ellis also said that it would change its corporate name to CBRE Group Inc. effective in January.
