Global Outsourcing Helped Raise CBRE’s Revenue in 2011

CBRE Group Inc. reported that its revenue for fiscal 2011 increased 15 percent, to $5.9 billion. Net income rose 39 percent year-over-year, to $334.5 million. The company’s full-year income was lowered because of its acquisition of ING REIM businesses and cost containment actions.

Outsourcing was the strongest growth segment for the firm in 2011, with a 14 percent increase in outsourcing revenue globally. During the fourth quarter, for example, CBRE signed outsourcing contracts with Unilever in Asia Pacific, the Middle East and Eastern Europe and with Newell-Rubbermaid in Asia Pacific. In addition, the firm signed on as global integrator of services for Microsoft Corp. Microsoft operates a 34-million-sq.-ft. global real estate portfolio.

Revenue from investment sales in 2011 rose 10 percent, driven primarily by growth in the Americas and Asia Pacific.

On the other hand, leasing revenue fell slightly because of difficult year-over-year comparisons in the Americas and flat recent leasing revenue in Asia Pacific.

“2011 was a year of unexpectedly tough operating conditions in many parts of the world, particularly in the back-half of the year,” said CBRE CEO Brett White in a statement. “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.”

In 2012, CBRE’s management expects continued but slow recovery in the global real estate markets because of slow job growth. The company set its earnings per share guideline for the year between $1.20 and $1.25.

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