CB Richard Ellis Group Inc. (CBG) reported fourth quarter earnings of 21 cents per share after the closing bell on Wednesday. Excluding one-time charges, the company earned 28 cents per share, which surpassed the Zacks Consensus Estimate of 18 cents. The company had earned 37 cents on an adjusted basis in the year-ago quarter.
CB Richard Ellis reported a net income of $64.3 million or 21 cents a share, compared to a net loss of $1,089.4 million or $4.70 per share a year earlier. The year-ago loss was mainly attributable to intangible asset impairment charges of $1,159.4 million.
Revenue for the quarter came in at $1.3 billion, a growth of 1% year-over-year. The growth− first time in seven quarters −was primarily the result of improved market conditions, particularly in Asia Pacific and certain parts of Europe.
Revenue for the Americas decreased 7% year-over-year to $769.3 million. However, the EMEA (Europe, Middle East and Africa) region’s revenue grew by 8% to $287.1 million, while the Asia Pacific region recorded the strongest growth of 43% to $177.0 million.
The Global Investment Management segment, comprising investment management operations in the U.S., Europe and Asia, reported a 1% drop in revenue to $38.7 million. Assets under management totaled $34.7 billion at the end of the quarter, down 10% from the year-ago period. Development Services segment, that includes real estate development and investment activities primarily in the U.S., reported a 17% reduction in revenues to $24.5 million.
CB Richard Ellis reported a 51% year-over-year decline in expenses to $1,157.3 million primarily due to the absence of a significant goodwill and other intangible asset impairment charge, which existed in the year-ago period. Accordingly, the company recorded an operating income of $140.4 million, compared to an operating loss of $1,055.0 million in the year-ago period.
CB Richard Ellis is a commercial real estate services firm with full-service operations in metropolitan areas worldwide. The company offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate assets globally under the CB Richard Ellis brand name and provides development services under the Trammell Crow brand name.
The current market dislocations have resulted in newer opportunities for CB Richard Ellis such as distressed assets marketing and service of failed commercial mortgage backed securities loan funds.
Though we remain encouraged with some early indications of stabilization and recovery of market conditions, we think that sales and leasing markets will remain stretched in the near term.
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