CBRE revenue climbs 21%

Real estate services firm CB Richard Ellis (CBRE) saw continued strong growth in Q2 2011, as revenue climbed 21 percent to US$1.4 billion, from US$1.2 billion over the same period last year.

Net income improved 12 percent to US$61.2 million in Q2, from US$54.8 million a year ago, while earnings before interest taxes depreciation and amortisation (EBITDA) rose three percent to US$166.1 million.

“Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions. This performance illustrates the ability of our people and platform to drive continued business gains in a global economy that is still marked by slow, uneven growth,” said CEO Brett White.

In Asia Pacific, revenue climbed 19 percent to US$188.5 million, from US$158.7 in Q2 2010, while operating income jumped 48 percent to US$16.0 million, compared with US$10.8 million a year ago. This was reflected in higher revenue in several countries, particularly Australia, China, India and New Zealand. Business conditions in Japan also began to stabilise after the disasters in March.

“The continued improvement in market fundamentals has been reflected in strong revenue growth for CBRE in the Asia Pacific region,” said Rob Blain, Chief Executive and Chairman of CBRE Asia Pacific.

He noted that the higher revenue growth was “underpinned by an increased number of investment transactions, robust demand for office and industrial space, continued high levels of residential sales activity, and further adoption of commercial real estate outsourcing. Business performance in PRC, Korea, India and Japan is stronger year-on-year.”

CBRE was also re-appointed as managing agent of Singapore Post Centre (SPC). The group brokered the sale of Malaysia’s East Coast Mall to Capita Malls Malaysia Trust for RM310 million (US$102 million).

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