Strategic in-fill acquisitions have played a vital role in enhancing CBRE Group Inc.’s (CBG - Free Report) geographic coverage as well as broadening and strengthening its service offerings. Moreover, the company has opted for larger, transformational deals driven by macro policies such as that of Norland, which was closed a few days before the start of 2014.
In 2014, the company successfully integrated Norland and increased its revenues by approximately 20% to $869 million. Along with that, the company integrated 11 infill acquisitions in the year.
Moreover, in sync with its efforts to strengthen the retail services offerings, CBRE acquired a Dallas, TX-based commercial real estate firm United Commercial Realty (UCR) in Jan 2014. This is the second regional retail real estate firm that CBRE has purchased in the past 16 months, following the Fameco acquisition in Sep 2013.
As market conditions continue to improve, we believe such opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth. Also, investments in people and platform augur well for the company and would help it enhance market share.
While CBRE’s fourth-quarter 2014 adjusted earnings of 68 cents per share came a cent lower than the Zacks Consensus Estimate, it was up a cent year over year. Though the company experienced an increase in revenues, the positive impact was marred by an uptick in expenses.
Due to the company’s international presence, uneasiness in global economies and unfavorable foreign currency movement continue to hurt its results. Also, stiff competition from global, regional and local players in the market remains a concern.
Headquartered in Los Angeles, CBRE Group Inc., is a commercial real estate services and investment firm. Other important companies in the real estate operations industry include Kennedy-Wilson Holdings, Inc. (KW - Free Report) , Landmark Infrastructure Partners LP (LMRK - Free Report) and Henderson Land Development Co. Ltd. (HLDCY - Free Report) . To gain deeper insight into CBRE, you can refer to our updated research report, which was issued on Mar 4, 2015.