CB RICHARD ELLIS Q4 REVENUE GOES PAST THE BILLION MARK
Middle East operations contribute to overall growth
Dubai, February 20, 2007: CB Richard Ellis Group, Inc (NYSE:CBG), the leading global property advisor, closed the fourth quarter of 2006 with revenues of $1.4 billion for that period, up 36.5% from the 2005 Q4 revenues of $1.0 billion. The fourth quarter ended December 31, 2006 also shows earnings per share of $0.53, compared with the $0.41 shown at the end of the last quarter of 2005.
“Our fourth quarter results reflect the strong performance in almost all service lines of the company in the overseas markets, especially the Middle East. CB Richard Ellis has positioned itself in the Middle East market by providing high quality services, whilst at the same time, the trust we have gained among our diverse clientele is translating into exceptional assignments,” commented Nicholas Maclean, Managing Director of CB Richard Ellis Middle East.
The fourth quarter revenue takes the total annual revenue for the year 2006 to $4.0 billion, up $838.0 million, or 26.2% compared to the same period last year. The Q4 results also include operations of the newly acquired Trammel Crow Company for the period December 20 through December 31, 2006.
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) totaled $260.4 million for the fourth quarter of 2006, an increase of $74.2 million, or 39.8%, from the same quarter of the previous year.
Of the 36.5% revenue growth, nearly three-fourths was due to organic growth with the remainder attributable to acquisitions completed in 2006. This marks the 17th straight quarter of double-digit year-on-year organic revenue growth for the Company. This growth was fuelled by strong leasing activity in most major markets, continued strength in investment sales, especially overseas, as well as increased revenue from appraisal/valuation, mortgage brokerage, and property and facilities management operations. In addition, global investment management operations showed robust revenue growth.
Revenue for the EMEA (Europe, Middle East & Africa) region increased 46.4% to $362.5 million for the fourth quarter of 2006, compared with $247.6 million for the fourth quarter of 2005.
“Our primary markets remain strong. Worldwide economic expansion and increased employment rolls have produced strong demand for commercial space. Rental growth is accelerating as market fundamentals continue to improve while new construction remains limited. Commercial real estate continues to be a magnet for institutional and private-equity capital, especially in high-growth markets in Asia and traditional business centers like New York, London and Paris. Cross-border investment flows, in particular, have reached new highs,” said Brett White, President and Chief Executive Officer of CB Richard Ellis.
“The exceptional talent, resources, and relationships we have added with our new Trammell Crow Company operations have materially enhanced the depth and breadth of our service offering. We enter 2007 a stronger company poised for continued growth,” added White.
About CB Richard Ellis:
CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2006 revenue). With over 24,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales