CBRE Group, Inc. reported robust revenue and earnings growth for the third quarter ended September 30, 2015.
Revenue for the quarter totaled $2.7 billion, an increase of 19 percent.
Fee revenue increased 14 percent (21% in local currency) to $1.9 billion.
The third quarter of 2015 included approximately $237 million of revenue from the acquisition of the Global Workplace Solutions business from Johnson Controls, which was completed on September 1, 2015.
Excluding the acquired Global Workplace Solutions business, revenue and fee revenue were both up nine percent.
On a U.S. GAAP basis, net income rose 39 percent to $149.1 million. GAAP earnings per diluted share rose 38 percent to $0.44.
Adjusted net income rose 30 percent to $171.7 million, while adjusted earnings per share improved 28 percent to $0.51.
For the third quarter of 2015, adjustments totaled $22.6 million, which included integration and other costs associated with the Global Workplace Solutions acquisition.
“The third quarter was an eventful period for CBRE,” said Bob Sulentic, the company’s president and chief executive officer. “We continued to post double-digit growth on the top- and bottom-lines with broad-based strength in our business around the world.
“While doing this, we completed our largest acquisition in nearly a decade – the Global Workplace Solutions business from Johnson Controls. We also continued to make gains through investments in initiatives that help us to deliver great client outcomes and drive growth.”
CBRE’s three regional businesses each achieved sizeable increases in revenue. Growth was particularly notable in EMEA (Europe, the Middle East & Africa), where revenue surged 28 percent.
In the Americas, CBRE’s largest business segment, revenue grew by double digits – 17 percent.
Amid strong capital flows into commercial real estate, CBRE’s capital markets businesses continued to perform exceptionally well. Property sales rose significantly across all regions with global revenue up 11 percent and commercial mortgage services, which is predominately an Americas business, saw revenue improve 32 percent.