Capital markets fall pushes Cushman into the red

Cushman & Wakefield has posted a full-year loss of $34.5m (£27.3m), pinning the performance on falling revenue from its leasing, capital markets and valuation work. The agency’s results for 2023 showed a 6% drop in revenue to $9.5bn. Rising revenue from property, facilities and project management was more than offset by a 41% slump in capital markets revenue at $695m. Leasing and valuation revenues were each down by 12%. During the final quarter, revenue dropped by 4% from a year earlier to $2.6bn. The most significant revenue growth during the final months of the year came from leasing, up 5% at $586.7m, offering some hope of what Cushman called “positive momentum” in that business. In EMEA, fourth-quarter fee revenue was flat year-on-year at $254m, with growth in leasing making up for falls in other business lines, including a drop of more than a quarter in capital markets. The agency expects groupwide fee revenue to be flat year-on-year in the first quarter of 2024, adding that “sustained capital markets growth [is] unlikely to occur prior to H2 24” but that the leasing market should be “relatively stable”. Chief executive Michelle MacKay said: “Our Cushman & Wakefield team accomplished a great deal in 2023. To strengthen the core of our business and position the company for long-term growth, we completed two debt refinancings, improved free cash flow, and reduced costs. We remain focused on unlocking meaningful value in 2024 and beyond by continuing to provide insightful advice, specialised expertise and disciplined execution for our clients.”