CBRE Group Inc. reports strong financial results for first-quarter 2017
- Revenue of $3.0 billion, up 5% (7% local currency)
- Fee Revenue of $1.9 billion, up 5% (7% local currency)
- GAAP EPS of $0.38, up 58%; Adjusted EPS of $0.43, up 19%
Los Angeles, CA – April 27, 2017 — CBRE Group, Inc. (NYSE:CBG) today reported strong financial results for the first quarter ended March 31, 2017.
“We have been keenly focused for some time on a strategy to make CBRE a more balanced and capable enterprise that produces highly differentiated outcomes for our clients,” said Bob Sulentic, CBRE’s president and chief executive officer. “In support of this strategy, we have made targeted organic investments and acquisitions aimed at bolstering our talent base, service offering and operating platform. These investments have allowed us to significantly improve our ability to provide integrated solutions to our clients around the world as well as our digital and consultative capabilities. All of this has positioned us to better satisfy our clients and take market share.
This was clearly evident in our first quarter results, with excellent top- and bottom-line organic growth across our regional services businesses globally. This growth came against a backdrop of lower sales market volumes in many parts of the world. Our earnings were further enhanced by the steps we took in late 2015 and 2016 to calibrate our costs while also investing in our strategy.”
First-Quarter 2017 Results
- Revenue for the first quarter totaled $3.0 billion, an increase of 5% (7% local currency1). Fee revenue2 increased 5% (7% local currency) to $1.9 billion. Organic fee revenue, which excludes contributions from all acquisitions completed after first-quarter 2016, increased 4% (6% local currency).
- On a GAAP basis, net income and earnings per diluted share both increased 58% to $129.6 million and $0.38 per share, respectively. Adjusted net income3 for the first quarter of 2017 rose 20% to $144.8 million, while adjusted earnings per share improved 19% to $0.43 per share.
- The adjustments to GAAP net income for the first quarter of 2017 included $27.0 million (pre-tax) of non-cash acquisition-related amortization and $11.9 million (pre-tax) of integration costs associated with the Global Workplace Solutions acquisition. These costs were partially offset by a $15.2 million (pre-tax) reversal of carried interest incentive compensation and a tax benefit associated with the aforementioned adjustments of $8.4 million.
- EBITDA4 increased 21% (22% local currency) to $306.5 million and adjusted EBITDA4 increased 7% (8% local currency) to $303.2 million. Adjusted EBITDA margin on fee revenue was 15.8%.
CBRE started the year strongly in the EMEA region delivering strong gains in both revenue and adjusted EBITDA in local currency for Q1 2017 and continuing the positive performance we produced in 2016. Our revenue gains reflect the broad diversification of our EMEA business today with double-digit growth across the majority of our service lines and countries including Germany, Spain and Switzerland all performing particularly well. Notably, our business in London had very strong start to the year driven by high levels of activity from overseas investors. While we are mindful of the broader macro-economic environment, we enter the second quarter with our business in great shape across the region and we are very well positioned to deliver exceptional outcomes for our clients.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.