CBRE, JLL report strong performances in Q3

The two largest global real estate advisory firms have reported strong performances for the third quarter of 2010 thanks to an increase in transaction and leasing activity.

Los Angeles-listed CB Richard Ellis said net income improved 361% to $57.0 mln, or $0.18 per diluted share, for the third quarter, compared with $12.4 mln, or $0.04 per diluted share, for the third quarter of 2009.

Revenue for the quarter totalled $1.3 bn, an increase of 24% from $1 bn in the third quarter of 2009. This is the firm's strongest year-over-year quarterly revenue growth since the fourth quarter of 2007.

CBRE said that globally property sales revenue jumped 63% in the third quarter of 2010 from the depressed levels of 2009's third quarter. 'This reflects a slow return of liquidity to the investment market, which has helped drive demand for commercial real estate, as well as CB Richard Ellis' improving market share in key markets globally.'

The company's share of US investment sales activity rose to 17.9% in the third quarter of 2010, according to Real Capital Analytics, a more than 400 basis-point increase from the same quarter last year. In the UK, CBRE's share of overall investment activity for the third quarter of 2010 increased more than 500 basis points from a year ago to 21.7%, according to Property Data.

Revenue for the EMEA region rose 12% to $215.8 mln for the third quarter of 2010 from $192.3 mln in the same period last year. The EMEA region reported operating income of $14.3 mln for the current-year third quarter, up from $11.7 mln in Q3 last year. EBITDA totalled $17.8 mln for the third quarter of 2010, more than 20% higher than the $14.7 million achieved the year before.

The improved results reflect better business performance in several countries, particularly France, Russia and the UK, CBRE said.

Separately, JLL reported net income of $37 mln, or $0.84 per share, for Q3 2010, compared to $20 mln, or $0.46 per share, for the same period last year. Revenue for the third quarter 2010 was $708 mln, compared with $595 mln in Q3 2009 0 an increase of 19% US dollars.

EMEA's third-quarter revenue was $169 mln in 2010 compared with $154 mln in 2009, an increase of 10%, 18% in local currency, with the most significant contribution from Leasing. Revenue in France and England was up 32% and 28%, respectively, in local currency compared with the third quarter of 2009. Year-to-date revenue in the region was $491 mln in 2010 compared with $418 mln in 2009, an increase of 18%, 21% in local currency.