EMEA dents CBRE’s strong global performance

CBRE, the world’s leading real estate advisory firm, booked double-digit revenue and income growth over the second quarter of 2012, despite a weaker performance at its EMEA unit.

The Los-Angeles based company reported group revenue increased 13% to $1.6 bn (EUR 1.3 bn) over the three-month period, on net income 31% higher at $88 mln.

However, the impact of the Eurozone crisis dented revenue in France and most other countries, with the notable exceptions of Germany, the Netherlands and the UK which all reported modest growth. Overall, revenue fell 4% to $248 mln while operating income plunged even more steeply by 33% to $12.6 mln. The weaker results also reflected negative currency effects, the company said.

By contrast, revenue rose 13% in the Americas to $1 bn on operating income 30% higher at $127.9 mln. Asia also turned in a stronger performance, with revenue rising 7% to $201 mln and operating income up 30% at $20.7 mln.

In a press statement, CBRE said global revenue rose during the quarter in every business line with the capital markets business performing particularly well in the Americas where a 23% rise in property sales revenue was recorded. The overall increase was more modest, however, at 16%.

The global investment management operations also turned in a strong performance, bolstered by the ING REIM acquisitions in the second half of 2011. Revenue from this business line more than doubled compared with a year earlier and now accounts for 7% of global revenue compared to 4% previously. Operating income ended in the black with a total of $12.9 mln compared with a loss of $3.6 mln in the year-earlier period.

Commenting on the results, Chief Executive Officer Brett White said the company would continue to be highly focused on cost discipline, which contributed to significant bottom-line improvement during the quarter. ‘The recovery continues to progress, but at a historically slow pace and with a high degree of inconsistency and uncertainty across global markets and business lines.

Nevertheless, CBRE has a history of performing well for clients amid these market conditions. We are therefore cautiously optimistic about our business, and remain comfortable with our ability to deliver on the full-year earnings per share outlook we announced early this year.’