CB Richard Ellis - General - UK & Global,

Date: 08 Feb 2012

Net income up 39% and revenue up 15% for CBRE as reports full year earnings results

Full-Year 2011 Results
* Revenue for the full-year 2011 increased 15% to $5.9 billion, compared with $5.1 billion for 2010.
* Excluding selected charges, net income for 2011 totaled $334.5 million, or $1.03 per diluted share, an improvement of 39% and 37%, respectively, from $239.8 million, or $0.75 per diluted share, for 2010. Full-year 2011 results were lowered by selected charges of $95.3 million, net of income taxes, which primarily related to the acquisition of the ING REIM businesses and cost containment actions.
* On a U.S. GAAP basis, net income rose 19% to $239.2 million, or $0.74 per diluted share, for 2011, compared with $200.3 million, or $0.63 per diluted share, for 2010.
* Excluding selected charges, Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) totaled $802.6 million in 2011 -- up 18% from $681.3 million in 2010.


"2011 was a year of unexpectedly tough operating conditions in many parts of the world, particularly in the back-half of the year. Nevertheless, we recorded our second-best year ever for both revenues and normalized EBITDA, enhanced our platform with the ING REIM acquisitions and strategic recruiting, and made other investments that will further position CBRE for leadership across market cycles," said Brett White, chief executive officer of CBRE.

"Our highly diversified platform was the key to our fourth quarter results," Mr. White continued. "The macro-environment during this period was marked by intensified concerns about sovereign debt issues, particularly in Europe, and tepid economic growth. This challenge, however, was offset by out-sized gains from our development portfolio, strong growth in outsourcing globally, resilience in our capital markets businesses, as well as actions taken to more carefully manage expenses. As a result, quarterly EBITDA margins reached their highest levels since the second quarter of 2007."

Double-digit growth in all regions fueled a 14% rise in outsourcing revenue globally. This was the business line's 5th consecutive quarter of double-digit growth - in part, due to the Company's ability to take advantage of outsourcing's growing acceptance in both international markets and new economic sectors.

Of note was CBRE's fourth quarter award of multi-year contracts to provide services for Unilever in Asia Pacific, the Middle East and Eastern Europe; and Newell-Rubbermaid in Asia Pacific. In Europe, the Company was retained by the United Kingdom Commonwealth Office, an example of its growing portfolio of public sector outsourcing clients. Microsoft Corporation has selected CBRE to serve as global integrator of services for the company's 34 million square foot global portfolio.

Global property sales revenue rose 10%, paced by solid growth in both the Americas and Asia Pacific, while EMEA was relatively flat. In 2011, CBRE once again achieved the #1 market share in investment sales activity in both the U.S. and the U.K. In addition, the Mortgage Brokerage business, mainly centered in the U.S., saw revenue improve by 25% during the quarter.

Global property leasing revenue fell moderately, as double-digit growth in EMEA - despite soft economies across much of Europe -- was offset by a decline in the Americas. The Americas decline was in part due to a tough comparison with the fourth quarter of 2010, when leasing revenue was 45% higher than in the fourth quarter of 2009. Asia Pacific's leasing revenue for the fourth quarter of 2011 was relatively flat.

Global Investment Management revenue improved 31% during the fourth quarter. This included revenue from the ING REIM businesses in Europe and Asia that were acquired this quarter, and the ING global listed real estate securities business that was acquired on July 1, 2011.

Chief Executive Brett White

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