CBRE Group, Inc. (NYSE:CBG) reported strong financial results for the third quarter ended September 30, 2017.
“We are pleased to produce another quarter of excellent results, with double-digit revenue growth and adjusted earnings per share up 28%,” said Bob Sulentic, CBRE’s president and chief executive officer. “Our performance is the direct result of our focused strategy to produce exceptional outcomes for our clients and the commitment of our more than 75,000 people to executing our strategy.”
“The strength of our performance in the third quarter was broad-based. Each of our three global regions produced solid organic growth. Leasing returned to double-digit growth, and was especially strong in the U.S. Revenue growth accelerated in our occupier outsourcing business, as we continue to capitalize on our commanding position in this growing sector. Global property sales saw healthy growth, despite a generally tepid market for transaction activity, reflecting the strength of our brand and ability to take market share. Finally, we also had excellent performance in both of our real estate investment businesses.
” Mr. Sulentic added: “We continue to see healthy momentum across most of our businesses and regions and are increasing our full-year 2017 guidance for adjusted earnings per share to a range of $2.58 to $2.68.”
• Revenue for the third quarter totaled $3.5 billion, an increase of 11% (10% local currency1 ). Fee revenue2 increased 10% (9% local currency) to $2.3 billion.
• On a GAAP basis, net income increased 88% and earnings per diluted share increased 87% to $196.3 million and $0.58 per share, respectively. Adjusted net income3 for the third quarter of 2017 rose 31% to $219.5 million, while adjusted earnings per share3 improved 28% to $0.64 per share. CBRE Press Release November 3, 2017
• The adjustments to GAAP net income for the third quarter of 2017 included $28.2 million (pretax) of non-cash acquisition-related amortization and $5.1 million (pre-tax) of net carried interest incentive compensation expense. These costs were partially offset by a net tax benefit of $10.2 million associated with the aforementioned adjustments.
• EBITDA4 increased 43% (42% local currency) to $406.4 million and adjusted EBITDA4 increased 18% (17% local currency) to $411.6 million. Adjusted EBITDA margin on fee revenue increased 120 basis points to 17.7%. The company’s regional services businesses – the Americas, Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC) – produced combined adjusted EBITDA growth for the quarter of 12% (11% excluding the impact of all currency movement including hedging activity).
*All percentage changes versus prior-year periods throughout this press release are in U.S. dollars, except where noted.