CBRE Reports Strong Q2 2017 Results

Global real estate company CBRE (NYSE:CBG) reported revenues of $3.34 billion in Q2 2017, a 4% increase over the $3.21 billion reported in Q2 2016. Fee revenue increased 3% to $2.2 billion, according to a company press release.

The real estate giant reported a Q2 2017 adjusted earnings per share of 65 cents, a 25% increase over the 52 cents reported in Q2 2016.

Regionally, CBRE’s performance in the second quarter was led by APAC and EMEA.

  • APAC: Posted a 17% (same local currency) revenue rise, with very strong growth in Australia, India, Japan and Singapore.
  • EMEA: Revenue rose 8% in local currency, but was flat when converted to U.S. dollars due primarily to the depreciation of the British pound sterling. The region’s performance was paced by gains in the Netherlands, Spain and the United Kingdom, where CBRE’s activity levels continue to rebound strongly from the impact of last year’s Brexit vote.
  • Americas: Revenue increased 4% (5% local currency), with notable growth in occupier outsourcing and commercial mortgage services, which offset a relatively flat performance in property sales and a decline in leasing.

By business line:

  • Global Occupier Outsourcing: Revenue rose 5% (9% local currency), while fee revenue increased 5% (10% local currency), all of which was organic growth.
  • Capital Markets Businesses: Property sales and commercial mortgage services – produced double-digit growth with global revenue up 10% (12% local currency) on a combined basis.
  • Property Sales: Revenue rose 11% (13% local currency). This performance was paced by robust growth in APAC, which increased 45% (same local currency), and EMEA, which increased 32% (42% local currency).
  • Commercial Mortgage Services: Revenue rose 10% (same local currency).
  • Leasing: Revenue slipped 2% (1% local currency), as continued strength in APAC and EMEA was offset by weakness in the Americas.
  • Property Management:  Revenue from property management services rose 5% (7% local currency), while fee revenue increased 2% (4% local currency).
  • Valuation Services: Revenue increased 4% (7% local currency).
  • Global Investment Management segment, assets under management (AUM) totaled $91.7 billion, up $3.1 billion from the second quarter of 2016. In local currency, AUM increased by $2.6 billion.
  • Development Services: Projects in process totaled $5.9 billion, down $1.2 billion from the second quarter of 2016, while the pipeline rose to $5.9 billion, up $2.9 billion in the same period. Fee-only projects constitute half of the pipeline.