Cushman & Wakefield, the world’s largest privately held commercial real estate services firm, reported gross revenue increased 15.6% to $582.5 million for second-quarter ended June 30, 2013, as compared with $503.7 million a year ago.
Adjusted income attributable to owners of the parent for the current quarter, increased 79.4% to $12.2 million, as compared with the prior year quarter of $6.8 million.
Cushman & Wakefield is majority-owned by EXOR S.p.A., the investment company controlled by the Agnelli family.
Second-Quarter highlights included:
• 15.6% gross revenue growth and 7.4% commission and service fee revenue growth
• Double-digit commission and service fee revenue growth in the Corporate Occupier & Investor Services (“CIS”), Capital Markets and Valuation & Advisory (“V&A”) service lines
• Double-digit CIS and Capital Markets commission and service fee revenue growth in all three regions, including the Americas, Europe, Middle East and Africa (“EMEA”) and Asia Pacific
• Year-over-year increases in V&A commission and service fee revenue in the Americas and Asia Pacific of 24.0% and 15.4%, respectively
• Adjusted EBITDA was $28.9 million vs. $30.1 million in the prior year quarter
• Adjusted net income increased $5.4 million, or 79.4%, to $12.2 million, as compared with $6.8 million for the prior year quarter
“Business momentum in the firm’s global service lines drove solid revenue gains in the second quarter,” stated Carlo Sant’Albano, Cushman & Wakefield’s Executive Chairman.
“Our strong pipeline of transaction and assignment activity is a reflection of a more confident business environment and, subject to continuation of these positive trends, we expect to complete the year with continued growth. The focus and drive of our people to deliver the best quality results for our clients contributes tremendously to our success.”
The firm drove growth across its global service lines as the first half progressed. Recurring revenue performance was led by the CIS year-to-date revenue growth of 17.4% year-over-year following a number of notable wins from well known global companies and iconic brands, including its appointment to provide facilities management services for a 1.2 million square foot portfolio in China and winning the property management of a 17 million square foot portfolio in India.
Other successes include a mandate to provide multiple services for a 12.5 million square foot global portfolio for Capital One.
Cushman & Wakefield was also named site-wide property manager for the new World Trade Center site in Lower Manhattan and extended a major contract with a key UK client, Everything Everywhere.
The number of square feet managed increased to 909 msf, as compared with 809 msf this time last year.
Momentum in V&A’s business was driven by a national scope assignment of over 700 department stores, distribution centers and a corporate headquarters campus for a major U.S. retailer, as well as by a portfolio valuation mandate for the largest domestic real estate fund in India and a mandate from the iconic Australian retail brand, David Jones.
Cushman & Wakefield’s Leasing business remains well positioned to capture opportunities presented by recovering markets.
In the first half of 2013, Cushman & Wakefield was named exclusive leasing agent for two major office towers in Manhattan, 75 Rockefeller Plaza and 1221 Avenue of the Americas.
Second-quarter 2013 gross revenue increased $78.8 million, or 15.6%, or 16.1% excluding the impact of foreign exchange, to $582.5 million, as compared with $503.7 million for the second quarter of 2012.
Second-quarter 2013 commission and service fee revenue, which excludes reimbursed costs related to managed properties and other costs, increased $28.3 million, or 7.4%, or 7.9% excluding the impact of foreign exchange, to $409.9 million, as compared with $381.6 million for the prior year quarter.
