CBRE Shares Surge on Solid 1Q Revenues

By Los Angeles Business Journal
Wednesday, May 2, 2007

Shares in CB Richard Ellis Group Inc. soared nearly 15 percent Wednesday after the world's largest real estate broker reported a 62 percent surge in revenue.


That boost came despite CBRE's report of first quarter net income of $12 million (5 cents per share), a 68 percent drop from $37 million (16 cents) from the same period a year earlier, marking the firm's first decline in three years. However, excluding charges associated with the company's $2 billion acquisition of Trammell Crow Co., net income rose 62 percent to $65 million (27 cents) for the quarter.


CBRE's purchase of Dallas-based Trammell Crow, a real estate management company, has made it the world's largest real estate services company.


Revenue for the El Segundo-based company rose 62 percent to $1.2 billion.


"Our first-quarter results were bolstered by extremely strong growth in Europe and the Asia-Pacific region" and were also bolstered by higher asset management revenue, CBRE's Chief Executive Brett White said in a statement.


Shares in CBRE added $4.84, or 14 percent, to $38.49 in afternoon trading Wednesday on the New York Stock Exchange.

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