CBRE Group Inc. CBRE reported third-quarter 2024 core earnings per share (EPS) of $1.20, ahead of the Zacks Consensus Estimate of $1.06. The reported figure also increased 66.7% year over year.

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Reflecting positive sentiments, shares of CBRE were up more than 9% so far today. Results reflect double-digit revenue and segment operating profit growth, with significant operating leverage in Advisory Services, Global Workplace Solutions (“GWS”), and Real Estate Investments business segments. The company expects a strong fourth quarter across all three segments and also increased its 2024 core EPS outlook.

Quarterly revenues were up 14.8% year over year to $9.04 billion and compared favorably with the Zacks Consensus Estimate of $8.98 billion.

Net revenues increased 20% (20.5% in local currency) year over year to $5.32 billion. Core EBITDA rose 57.8 % (58.9% in local currency) to $688 million.

CBRE’s Quarter in Detail

CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 19% (19.5% in local currency) to $2.4 billion. Our estimate was $2.17 billion.

Global leasing revenue rose 19% (same local currency), driven by notable leasing revenue growth in Europe, the Middle East & Africa (EMEA) and the Americas.

Global property sales revenue grew 14% (15% in local currency) year over year for the first time since the second quarter of 2022. This was led by increases across all regions. Moreover, mortgage origination revenue rose 52% (same local currency) due to a 36% increase in loan origination fees and higher interest earnings on escrow balances.

The GWS segment registered a year-over-year increase of 12.3% (13% in local currency) in revenues to $6.35 billion. Our estimate was pegged at $6.52 billion.

Paced by the broad-based strength in both the Enterprise and Local businesses, Facilities management net revenues rose 22% (23% in local currency). Project management net revenues increased 12% (13% in local currency), led by continued strength from Turner & Townsend. Net operating margin improved more than 70 basis points compared with third-quarter 2023, reflecting the benefit of cost efficiency initiatives.

The Real Estate Investments segment experienced an increase of 43.8% (same local currency) in revenues to $302 million, driven by higher incentive fees.

At the end of the third quarter of 2024, assets under management increased $5.8 billion from the second quarter of 2024 to $148.3 billion due to capital raising, higher asset values and favorable foreign currency movement.