CBRE’s Q3 financial performance was well above expectations, with the consultancy recording double-digit revenue growth across all its business lines.
Total revenue increased by 14.8% to $9bn (£6.9bn) year-on-year, while net revenue rose by 20% to $5.3bn. GAAP net income climbed by 17.8% to $225m, pushing core adjusted net income and EBITDA up by 63.3% and 57.8% to $369m and $688m, respectively. Core earnings per share were up by 67% over the period to $1.20.
Revenue at the firm’s advisory service business grew by 19% year-on-year in Q3 2024, attributed to a surge in global leasing revenue, which was led by strong gains in the UK and some countries in continental Europe. Among the real estate sectors, global office leasing revenue reached a new Q3 high, with greater certainty around the economic outlook, particularly in the US and Europe.
In capital markets, CBRE’s global property sales revenue showed year-over-year growth for the first time since Q2 2022, led by the US where activity was driven by multi-family and retail real estate sectors.
In the global workspace solutions business, CBRE recorded revenue growth of 12%, while real estate investment revenue jumped by 44%, reflecting higher incentive fees.
As of 30 September, the consultancy had $148.3bn assets under management, an uplift of $5.8bn from the end of Q2 2024. The increase was driven by capital raising, higher asset values – primarily in the listed securities portfolio, and favourable foreign currency movement.
The firm has lifted its year-end outlook for its advisory service business amid improved transaction activity, saying it now expects to deliver more than 20% growth compared with the mid-to-high teens growth it expected earlier in the year.
Bob Sulentic, chair and chief executive officer at CBRE, said: “Our performance in the third quarter was highlighted by our second-highest third-quarter core earnings per share in company history, driven by double-digit revenue and profit growth and significant operating leverage in all three business segments.
“In addition, we achieved operational gains across key parts of our business and continued to advance our strategic positioning.”
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