CBRE Group profit, revenue rise on property sales, leasing
CBRE Group Inc., the world’s largest commercial real estate brokerage, reported a strong third quarter propelled by robust growth in property sales and leasing in the U.S. and abroad.
The Los Angeles firm, formerly CB Richard Ellis Group Inc., said Thursday that income from arranging transactions to buy or rent space in offices, warehouses and other commercial properties grew at a double-digit pace from the same period last year. Sales were particularly strong in the Americas; Asia and Europe recorded big increases in leases.
“Globally, the commercial real estate market recovery continues, albeit hesitantly,” Chief Executive Brett White said. “Revenue rose significantly in nearly all of our major service lines and geographies.”
Third-quarter profit was $63.8 million, or 20 cents a share, up from $57 million, or 18 cents, in the year-earlier quarter. Excluding selected charges, profit would have been 24 cents a share, the average amount expected by analysts. Revenue was $1.5 billion, an increase of 21%.
“The revenue growth was a surprise given that the economy was unstable,” said analyst Will Marks of JMP Group. The increase in leases brokered in Europe was also unexpected, he said, given the region’s economic problems.
Brokerages benefit in the current financial climate as investors seek safety in properties that produce income through rents, said Craig Silvers, president of Bricks & Mortar Capital.
CBRE shares rose $1.18 to $17.12 before earnings were announced.
