CBRE Group Inc. (CBG) reported first-quarter 2013 adjusted earnings of 16 cents per share, which missed the Zacks Consensus Estimate by a penny. However, this compared favorably with the prior year quarter earnings of 14 cents per share. The year-over-year increase is attributable to strong top-line growth across all operating regions, especially Europe.
On a GAAP basis, this leading commercial real estate investment trust (:REIT) reported earnings of 11 cents per share, up from 8 cents in prior-year quarter.
Inside the Headlines
Revenues for the quarter were $1,475 million, beating the Zacks Consensus Estimate of $1,458 million. Additionally, revenues surpassed the prior year quarter figure of $1,350 million by 9%.
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) came in at $161.3 million, reflecting a year-over-year increase of 7% from $150.5 million in the prior year quarter.
Leasing revenue increased 3% globally during the first quarter, despite a dip in performance in the Asia Pacific region mainly due to weaker yen. Notably, sturdy gains in EMEA (up 6%) and the Americas (up 5%) acted as major boosters.
Also, Global Corporate Services (outsourcing business for occupier clients) revenues rose 12% globally and this was aided by revenue growth in all global regions – especially the Americas (15%). CBRE inked 46 contracts during the quarter in Global Corporate Services.
Segment Details
Americas Region (U.S., Canada and Latin America): Backed by strong outsourcing gains, the region generated a year-over-year revenue increase of 10% to $926.0 million from $845.3 million. Moreover, adjusted EBITDA rose 5% to $106.4 million from $101.2 million in prior year quarter.
EMEA Region (primarily Europe): Geographically, the region remained the best performer, with year-over-year revenue increase of 16% to $228.6 million from $197.4 million. The result was due to improved performance in France, Germany and the U.K. Furthermore, adjusted EBITDA loss narrowed to $0.5 million from $7.1 million in prior year quarter.
Asia Pacific Region (Asia, Australia and New Zealand): Benefiting from enhanced overall performance, particularly in Greater China and Singapore, the region generated revenues of $181.4 million – a year-over-year increase of 9% from $167.2 million. Adjusted EBITDA also rose substantially to $5.8 million from $2.3 million in the first quarter of 2012.
Global Investment Management Business (investment management operations in the U.S., Europe and Asia): Revenues rose by 1% year over year to $126.6 million from $125.2 million in prior year quarter. However, adjusted EBITDA dipped 6% to $41.9 million from $44.6 million in the prior-year quarter.