* Q3 net income, ex items, $0.24 vs Wall Street View $0.24
* Q3 revenue up 21 pct to $1.53 bln
By Ilaina Jonas
Oct 27 CBRE Group Inc , one of the
world's largest real estate service companies, said its
third-quarter net income rose 12 percent, citing growth in its
unit that manages real estate needs for corporations and
property sales brokerage business in the Americas.
Third-quarter net income rose to $63.8 million, or 20 cents
a share, from $57.0 million, or 18 cents a share, in the
year-earlier quarter, the company, formerly called CB Richard
Ellis Group Inc, said on Thursday.
Stripping out charges including those related to its
acquisition of most of ING Group NV's real estate arm and
impairments, the company earned $77 million, or 24 cents per
share, up from $62.4 million, or 20 cents a share, in the
Excluding the charges, earnings met the average forecast of
24 cents per share, according to Thomson Reuters I/B/E/S.
CBRE, whose businesses include brokering sales, financing
and leases, as well as managing properties and investment
funds, said revenue grew 21 percent to $1.53 billion, beating
analysts' expectations of $1.47 billion.
Global real estate leasing and investment had staged a
strong rebound in the first half of the year. But since the
U.S. debt ceiling crisis in the summer and the sluggish
economy, coupled with the instability in Europe those
high-margin businesses slowed during the quarter.
"CBRE hit the earnings number but the revenues across the
board are better than expected," JMP Securities analyst Will
Marks said. "I would expect a similar performance out of JLL
(Jones Lang LaSalle.) I think that CBRE and JLL together are
taking share given their multi-market, multi-product platforms,
essentially being a one-stop shop."
Rival Jones Lang LaSalle Inc reports its
third-quarter results next week.
Revenue from the CBRE's outsourcing business - in which it
manages property needs for global corporations -- rose 19
percent. Global property sales commission revenue was up 23
percent, driven by a 42 increase in the Americas. Its
commercial mortgage brokerage revenue rose 32 percent. Only its
development services did not post growth.
CBRE's Global Investment Management business saw revenue
rise 56 percent, helped by revenue generated from CBRE Clarion
Securities, the global listed real estate securities business
it acquired in July from ING Group NV.
Recently CBRE closed on its acquisition of ING's real
estate investment management business in Asia, and plans to
complete its purchase of ING REIM business in Europe before the
end for the year.
By region, CBRE's Europe, the Middle East, and Africa arm
registered the highest revenue growth up 28 percent to $276
million. A 48 percent jump in outsourcing revenue and a 33
percent growth in leasing revenue propelled the growth.
Asia Pacific revenue rose 24 percent to $208.1 million.
In the Americas region, revenue increased 17 percent to
The company maintained its forecast for the year for
earnings, excluding items, in the range of 95 cents per share
to $1.05 per share. Analysts had forecast 99 cents per share.
Shares of CBRE, which released its quarterly financial
report after the close of the market, closed up 7.4 percent at
$17.12 on the New York Stock Exchange, and the S&P 500
closed up 3.43 percent.