Improved Quarter at CBRE GroupThursday, October 27, 2011
CBRE Group Inc.’s net income rose 12 percent in the third quarter as the real estate services giant saw healthy growth in the units that manage property sales and corporate property in its Americas region.
After the markets closed on Thursday, the Los Angeles company reported net income of $63.8 million (20 cents a share), compared with $57 million (18 cents) in the same period a year earlier.
Revenue rose 21 percent to $1.53 billion. Global property sales rose 23 percent for the quarter, driven by 42 percent growth in the Americas. Property leasing revenue rose 19 percent worldwide. Outsourced services revenue improved 19 percent, which the company said was the strongest growth rate for that business line since the third quarter of 2008.
Minus one-time charges, including its acquisition of ING Group NV’s real estate arm, the company earned 24 cents per share, which met the consensus forecast of analysts surveyed by Thomson Reuters. The company’s revenue figure exceeded the $1.47 billion consensus.
“While the growth rate moderated somewhat in our capital markets businesses – property sales and mortgage brokerage – due, in part, to tougher year-over-year comparisons, revenue from these businesses nevertheless posted healthy gains, fueled by the Americas,” Chief Executive Brett White said in a statement.
Shares earlier closed up $1.18, or 7.4 percent, to $17.12 on the New York Stock Exchange.