C&W reports record revenue in first half
Cushman & Wakefield saw gross revenue increase 23.7 per cent to USD1,279 million for the six months ended 30 June 2014, compared with USD1,033.9 million for the prior year period.
Adjusted income attributable to owners of the parent improved USD14.1 million to USD2.3 million, compared with a loss for the prior year period of USD11.8 million.
Cushman & Wakefield is majority-owned by EXOR SpA, the investment company controlled by the Agnelli family.
Edward C Forst, Cushman & Wakefield’s president and chief executive officer, says: “Demand from global investors and occupiers continued to drive real estate markets during the first half of 2014. Cushman & Wakefield delivered strong results during the period as revenue reached a record high and adjusted EBITDA more than doubled year-over-year.
“Our strategic focus to mobilise our global services and talent around our clients through greater collaboration among our professionals led to solutions that helped our clients enhance their presence globally. Salesforce.com is just one great example as we worked together on a 700,000 square foot lease for its headquarters in San Francisco in the newly named Salesforce Tower; as well as an expanded office lease in the former Heron Tower in London, which was also renamed Salesforce Tower. Enhanced communication was key as many teams across service lines came together from our firm and Salesforce to make these unique transactions happen.
”EXOR chairman John Elkann’s appointment as chairman of Cushman & Wakefield will be instrumental in accelerating the execution of our strategy as we drive toward the company’s centennial in 2017. In addition, the company’s solid financial performance, and the recent refinancing of our senior credit facility on an unsecured basis, provide us with greater flexibility to act upon strategic growth opportunities in our foundation cities around the world.”
Record commission and service fee revenue increased between 23 per cent and 45 per cent across all three regions in the second quarter and approximately 25 per cent globally both in the first half and second quarter of 2014. Recurring revenue increased to 43 per cent of total commission and service fee revenue, compared to 40 per cent in the first half of 2013.
In the Europe, Middle East and Africa (EMEA) region, the group increased commission and service fee revenue by 27.8 per cent in the first half of 2014 and recently announced several high-level recruits.
The company’s strong revenue growth was led by CIS with a 60.7 per cent and 49.9 per cent increase in commission and service fee revenue for the second quarter and half year, respectively. Property under management globally increased 14.1 per cent to a record 1.2 billion square feet compared with year-end 2013.
Leasing commission and service fee revenue growth of 17.5 per cent in the first half of 2014 was driven by strong performance advising clients across property sectors.
Capital markets continued its positive momentum with first half 2014 commission and service fee revenue growth of 20.2 per cent as the improved credit environment and lower interest rates boosted capital flows across investor classes.
Valuation and advisory completed appraisals on behalf of the world’s largest real estate investors and lenders during the first half of 2014 with global value exceeding USD500 billion, a 14.5 per cent increase compared to the prior year period.
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