CBRE reports revenue surge in Q1, with Europe storming ahead

Global property adviser CBRE has reported a surge in revenues for the first quarter of 2014, with Europe setting the pace.

Revenue for the quarter totalled $1.9 bn (€1.4 bn), an increase of 26% from $1.5 bn in the first quarter of 2013.

On a US GAAP basis, net income rose 80% to almost $68 mln, compared with $37 mln for the first quarter of 2013. Excluding selected charges, EBITDA increased 23% to $199 mln from $161mln in the year-earlier period..

CBRE posted strong revenue growth in each of the three global regions where it is active. EMEA set a brisk pace with a 127% revenue increase, fuelled by contributions from the acquisition of building technical engineering services provider, Norland Managed Services, in late December 2013 as well as double-digit organic growth across all major business lines. Excluding Norland contributions, EMEA revenue surged 32%, as market activity continued to revive in step with improved economic activity and investor sentiment across Europe

Reflecting a highly active global investment market and CBRE’s central role in facilitating cross-border capital flows, global property sales revenue rose 27% for the quarter. Growth in Europe, the Middle East and Africa (EMEA) was particularly robust, with sales revenue increasing 61%. CBRE benefited from recovering activity in continental European markets that had been affected by the economic downturn as well as continued strength in Germany and the UK.

'We are very pleased with our strong start to 2014,' said Bob Sulentic, president and chief executive officer of CBRE. 'We drove very strong revenue and earnings growth across our global regions and in nearly all business lines. Our performance in the period reflects the ongoing investments we have made in professional talent and resources, and the success of our people in creating value for our clients. All of this allowed us to capture additional market share.'