CUSHMAN & Wakefield, the world’s largest private commercial real estate firm, has reported operating income increased $US1.2 million, or 5.9%, to $US21.4 million for the second quarter of 2012.
The result was largely driven by a decrease in certain operating expenses, which offset the reduction in commission and service fee revenue.
Commission and service fee revenue in Q2 2012 vs Q1 2012 is up $US84.9 million (28.6%) quarter-over-quarter, while commission expense and cost of services sold are up $US35.7 million (30.1%) and operating and other expenses are up only $US5.7 million (2.7%) resulting in an increase in EBITDA of $US43.6 million.
For the first six months of 2012, Cushman & Wakefield reported an increase in gross revenue of 2.5%, or 4.9% excluding the impact of foreign exchange, to $US906.5 million, as compared with $US884.4 million for the same period in the prior year. Commission and service fee revenue decreased 3.6%, or 1.1% excluding the impact of foreign exchange, to $US678.2 million for the first six months of 2012, as compared with $US703.5 million for the same period in the prior year. This slight decline reflects a slowdown in the global real estate market and was partially offset by continued growth in the CIS and Valuation & Advisory service lines across all geographic regions.
The net loss was $US18.4 million for the six months ended June 30, 2012, as compared with $US11.5 millioni for the prior year first half, as reported under IFRS. As reported under U.S. GAAP, EBITDA decreased $US14.0 million to $US18.2 million for the six months ended June 30, 2012, as compared with $US32.2 millioni for the first half of last year, while the company’s net loss increased to $US17.2 million for the six months ended June 30, 2012, as compared with $US9.6 millioni for the same period in the prior year.
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