CBRE has enjoyed double-digit earnings growth in the three months to June 30 as the return to the office accelerated.
The property consultancy’s revenue across all business lines grew by 20% to $7.77bn (£6.42bn) up from $6.46bn year-on-year, resulting in 10% GAAP net income growth to $487.3m from $442.6m.
For the half year, revenue was recorded at $15.10bn compared with $12.40bn in H1 2021, while GAAP net income rose to $886.2m from $712.4m.
Property leasing was among the strongest-performing sub-sectors in the quarter, with a 40% growth in global revenue. The results were driven by the Americas region, where revenue jumped by 56% on the previous year, thanks to growing demand for office space.
In capital markets, CBRE recorded global sales revenue increase of 17% despite global mortgage origination revenue slipping back by 1% year-on-year due to lower gains from loans sourced for government-sponsored enterprises.
CBRE’s global workplace solutions segment recorded 12% revenue growth in the quarter to $4.91bn, excluding $338m of revenue generated by Turner & Townsend, in which CBRE acquired a 60% interest in November 2021.
The new business pipeline in this segment remained elevated, with opportunities across energy, financial and professional services, manufacturing/logistics and retail sectors.
Turning to investments, CBRE posted revenue growth of 13% to $158m in Q2, driven by higher asset management fees, which went up 14%, and incentive fees, which more than doubled year-on-year.
CBRE’s assets under management hit a record high and now stand at $146.9bn.
Bob Sulentic, CBRE’s president and chief executive officer (pictured), said: “All three business segments posted double-digit revenue and segment operating profit growth, despite the significant currency headwinds that affected all US-based global companies.
“These results reflect the benefits of our diversification strategy and an economic backdrop that was still generally supportive despite heightened macro concerns.”
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