CBRE profit dives 30 percent

CBRE's 2016 annual results reveals its pre-tax operating profit fell 30 percent in 2016.

Directors advised the reported pre-tax operating profit of $37,573,000 represents a 30.3 percent decrease on the 2015 reported pretax operating profit of $53,886,000.

The consolidated net profit of the estate agency after income tax was $24,909,000 down on the $36,910,000 in 2015.

The group revenue sat at $488 million, up only slightly on the $475 million of the 2015 calendar year.

Trade receivables sit higher at $130 million.

There was no dividend paid or declared by the company, which employed 1870 staff, nor any significant changes in the state of affairs of the group.

CBRE Pty Limited is a private company domiciled in Australia.

The immediate parent entity of CBRE Pty Limited is Relam Amsterdam Holdings, and the ultimate parent entity of CBRE Pty Limited is CBRE Group, Inc. incorporated in the United States of America. 

Loans from related parties comprise loans provided by CBRE Luxembourg Finance for $17,237,000, up from $16,462,000 in 2015. 

The consolidated financial statements of CBRE Pty Limited, and its controlled entities for the financial year ended 31 December 2016 were lodged with ASIC this week, after being signed off by new board appointee Jamie Maione. 

CBRE advised an APAC operating entity sits under the CBRE Pty Ltd reporting group and a number of costs borne in that entity were related to financial adjustments in Asia (not Pacific).

After initial publication of the results on Property Observer, commentary was supplied from Ray Pittman, President & CEO, Pacific who advised CBRE’s Pacific business recorded gross revenue growth of 7% in local currency in Q1 2017 relative to the corresponding quarter in 2016.

"This followed record revenue growth in the previous quarter and was against a backdrop of constrained capital markets activity in the institutional sector. 

"CBRE’s strong performance was driven by both our brokerage and professional services teams." 

He advised standouts included the performance of our Advisory & Transaction Services business lines, with our industrial and office leasing teams recording particularly strong revenue growth of more than 70%. 

"Solid revenue growth was also recorded by our residential and commercial valuations businesses and by our Asset Services and Global Workplace Solutions teams," he said.