In an industry-wide outlook, president and CEO Brett White said in the company's conference call with financial analysts that CBRE is positioning itself for "an inevitable rebound in the global commercial real estate market." When the recovery comes, White said, "The moves we have made to streamline our operations and improve efficiencies while preserving our essential geographic platform and broad service offering will enable us to capture disproportionate market share and provide substantial operating leverage to drive bottom line earnings."
The CBRE quarterly results illustrated how far the industry has fallen in the past year. Its loss this quarter compared with second-quarter 2008 net income of $16.6 million, or eight cents per diluted share, and adjusted net income--excluding one-time charges--of $33.2 million, or 16 cents per diluted share.
White called the latest quarterly results "in line with expectations" and noted that, during the quarter, the company raised $600 million in new capital. It is using the new capital to lower secured bank debt, obtain loan amortization and maturity extensions and generally shore up its financial strength throughout the downturn.
As the world's largest commercial real estate industry service firm, CBRE is continuing to build its client roster and "seize marketplace opportunities," White said. He noted that the company had a strong quarter for signing up corporate and government outsourcing contracts and expanding its pipeline of distressed asset advisory work.
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