Corporate Real Estate Updates from CBRE, Colliers, Cushman, JLL and Zillow

CBRE Named Top Real Estate Brand
The Lipsey Company has named CBRE the top global brand in commercial real estate for the 18th consecutive year, according to an article in Business Wire.

CBRE Announces its First Flexible Work Space Deal
CBRE announced that it will launch its first Hana unit at PwC Tower at Park District in Dallas, Texas, a new development project by MetLife Investment Management and Trammell Crow Company. According to Business Wire, the unit, called Hana PwC Tower at Park District,is expected to open in mid-2019.

CBRE Reports Solid Earnings in Q4 2018
CBRE posted revenues of around $6.3 billion in Q4 2018, comparing favorably with the year-ago tally of $5.5 billion, according to Seeking Alpha. Moreover, fee revenues were up 16% (18% in local currency) year over year to $3.4 billion, while organic fee revenues climbed 13% (15% local currency).

The Los Angeles-based company reported year-over-year leasing revenue growth of 22% (24% local currency), backed by double-digit increases across all three regions. Global occupier outsourcing revenues increased 14% (17% local currency), while fee revenues jumped 17% (20% local currency). This was driven by double-digit growth in occupier outsourcing revenues and fee revenues by all three regions.

In addition, combined capital markets businesses, which include property sales and commercial mortgage origination, reported revenue growth of 9% (11% local currency). Furthermore, global property sales revenues climbed 7% (10% local currency), with all three regions reporting market share gains.

For full-year 2018, the company reported adjusted earnings of $3.28 per share, well above the prior year’s $2.73. This was backed by an increase of 15% (14% local currency) in revenues that aggregated $21.3 billion.

Jones Lang Lasalle Reports Solid Growth in Q4 2018
Chicago-based Jones Lang LaSalle (JLL) reported revenues for the 4th quarter at around $4.89 billion, according to a slide presentation cited by Seeking Alpha. The reported figure improved 12.6%, year over year. Fee revenues were up 13.5% year over year to $2.1 billion. 

Results highlight robust double-digit organic Real Estate Services revenue growth, aided by Leasing and Corporate Solutions segments. Further, the Americas’ segment performance, LaSalle incentive fees and EMEA improvement helped expand margin. In addition, assets under management reached a record $60.5 billion, driven by LaSalle private equity capital raise. Reflecting robust sentiments, the shares have soared up more than 8% in today’s initial trading session. 

For full-year 2018, JLL reported adjusted earnings per share of $12.25, up 31.6% from $9.31 in the prior year. This was backed by 12.9% year-over-year growth in $16.3 billion. 

Colliers Beats Q4 2018 Earnings Estimates
Colliers International Group (NASDAQ:CIGI) (TSE:CIGI) announced its quarterly earnings results on Wednesday, February 13th. The financial services provider reported $1.77 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.65 by $0.12, MarketWatch Earnings reports, according to Seeking Alpha. Colliers International Group had a net margin of 3.46% and a return on equity of 28.18%. The firm had revenue of $889.88 million for the quarter, compared to analyst estimates of $866.25 million. During the same quarter in the previous year, the firm posted $1.36 EPS. The business’s revenue for the quarter was up 16.5% on a year-over-year basis.

Cushman & Wakefield Reports Strong Revenue Growth
Cushman & Wakefield (NYSE: CWK) today reported financial results for the full year and fourth quarter ended December 31, 2018, according to Seeking Alpha.

  • Revenue for the full year 2018 was $8.2 billion, up 19% (19% local currencyi). Fee revenue was $6.0 billion, up 12% (12% local currency).
  • Full year Net loss decreased $35.5 million to $(185.8) million, with Net loss per share of $(1.09) and Adjusted earnings per share of $1.67.
  • Full year Adjusted EBITDA was $659.1 million, up 25% (26% local currency). Adjusted EBITDA margin of 11.1% was up 115 bps.
  • Revenue for the fourth quarter was $2.4 billion, up 17% (19% local currency). Fee revenue was $1.8 billion, up 8% (10% local currency).
  • 2019 Adjusted EBITDA expected to be in the range of $685 million to $735 million.

Keller Williams Expands into Three New Countries
Real estate franchisor Keller Williams expanded to Ireland and Chile and will launch in Italy later this year, according to Inman News.

Zillow Replaces CEO Amid Disappointing Earnings Results
Zillow CEO Spencer Rascoff is stepping down to make way for Rich Barton, who served as the real estate site’s first CEO, reported Mortgage Professional America. Barton and Rascoff, and Lloyd Frink co-founded Zillow in 2005. The three had previously founded the travel company Expedia.

The online real estate marketplace announced a new chief executive as it continues to transition into the business of buying and selling homes, and said that strategy had weighed on the bottom line in the fourth quarter. Zillow’s revenue grew 29% compared to a year ago, but its net loss widened to $97.7 million, or 48 cents a share, from $77.2 million, or 41 cents a share in 2017.

Initial media attention, and trading activity, focused on the surprise leadership change and Zillow’s comments that its home-buying segment was producing extremely thin margins. On 141 homes the company sold during the quarter, it saw a 0.6% profit margin. Meanwhile, revenue growth from what was once the core business segment, Premier Agents, continued to slide – and Zillow expects it to grow only 2% in 2019.