The CBRE Group is the largest commercial real estate services business in the world. Commercial real estate has faced some significant headwinds during lockdowns and a work-from-home regime. However, with vaccination drives progressing through many parts of the world, and the gradual picking up of the global economy, the long-term prospects of the commercial real estate industry look optimistic. That could be good news for companies like CBRE, which is the dominant player in the industry. The CBRE Group offers services to investors, property owners, and property occupiers.
CBRE Announces Its Q32020 Earnings
In late October 2020, CBRE released its third-quarter 2020 earnings results. Revenue was down around 5% from $5.9 billion in Q32019 to $5.6 billion in Q32020. Adjusted EBITDA was down 3% from $455 million to $442 million. GAAP earnings per share came in at $0.55 per share, down from $0.75 per share achieved in the third quarter of 2019.
CBRE Group CEO and President Bob Sulentic said, “At the present time, Covid is putting downward pressure on parts of our business and creating larger opportunities in other parts. We are continuing to take advantage of the strong secular growth trends that were driven by the last cycle, including occupier outsourcing, industrial and logistics space, institutional-quality multifamily assets and workplace experience services. We expect new secular opportunities to be created in the wake of Covidand are positioning our strategy and leadership focus and allocating our capital to make the most of them as this new cycle unfolds.”
Real estate stocks have been a mixed bag in terms of performance over the last 12 months. CBRE Group’s stock closed at $63.52 on 15th January 2021. It has gained only 4% over the preceding year. However, the stock is up 112% since the lows of March 2020. Homebuilding stocks like NVR have been on an uptrend lately. The stock is up some 84% since the March market crash through the price action has been rather flat since August 2020.