A 72% increase in revenue at CBRE’s EMEA operations helped propel first-quarter group revenue 39% higher to $2.8 bn (€2.4 bn).
The Los Angeles-based advisor reported overall adjusted net income rose 14% to $120.8 mln, while adjusted earnings per share rose 13% to $0.36. Fee revenue increased 25% to $1.8 bn. The first quarter included approximately $654 mln of revenue from the recently acquired Global Workplace Solutions business. On a like-for-like basis, revenue and fee revenue were both up 7%.
CBRE’s generated revenue of $847 mln over the three-month period from its EMEA division, with growth particularly strong in the Netherlands, Spain and the UK. However, the negative impact of foreign currency movements pushed EBITDA (earnings before interest, tax, depreciation and amortisation) 16% lower to €15.2 mln.
Global leasing was exceptionally strong during the first quarter as revenue surged 15%, the advisor said. The US set the pace, but a broad range of countries also generated strong growth, including Canada, France, India, Italy and Japan. The UK turned in an increase of 7% (16% local currency).
Commenting on the results, Bob Sulentic, CBRE’s president and chief executive officer, said he was ‘very encouraged’ by the group’s strong start to 2016. ‘As we look ahead, it is important to remember that the first quarter is typically our seasonally lightest quarter for revenue and earnings. As always, we caution against using the first quarter as a barometer of full-year performance. However, our business has positive momentum and the macro environment – while more cautious than a year ago – remains generally supportive, with consensus forecasts calling for continued modest economic growth in the US and globally.’
CBRE continues to expect adjusted earnings-per-share in the range of $2.27 to $2.37 for full-year 2016. This represents 13% year-on-year growth at the mid-point of the range.
