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CBRE (CBG) & Kahua Ink Deal to Jointly Develop Application

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CBRE Group, Inc announced that it has entered into a deal with Kahua to use its Application Platform-as-a-Service network. In line with this global agreement, both the companies will jointly work on Kahua’s application technology. This project will cater to the specific needs of the different segments of the project management supply chain. Moreover, CBRE will have executive representation on Kahua’s board of directors and has made equity investment in Kahua.   

The companies believe that this will raise the efficiency of real estate occupiers, owners, contractors, architects and engineers, throughout the supply chain. This deal is a strategic move to collaborate and integrate CBRE’s global clientele with their project teams. The Kahua Network will ease the transition of capital assets by enabling applications, business processes and information to be shared across organizations.

Per CBRE’s management, this cloud-based solution will provide a comprehensive network to manage its real estate and construction projects and thereby unlock significant efficiencies, data and insights.

On the other hand, this deal provides Kahua the platform to expand its coverage in the real estate, design and construction industry through its counterpart’s global footprint.   

This highlights the role of CBRE, an innovative market leader, in merging technology solutions and the real estate industry to enhance the lifecycle of capital assets. This will bring significant changes in the management, execution and delivery of assets.

CBRE intends to use this network within its organization and share it with its global customers. In fact, the company introduced the project to its customers across the Americas, EMEA and APAC markets, and is training approximately 5,000 managers worldwide to use the network.

We anticipate this deal to add significant value to the real estate industry.

Shares of the company have outperformed its industry year to date. While the company climbed 12.9%, the industry rallied 10.5% over this period.

The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Other top-ranked stocks in the REIT space include Sun Hung Kai Properties Ltd. (SUHJY - Free Report) , FirstService Corporation (FSV - Free Report) and Unibail-Rodamco .

For Sun Hung Kai Properties, the Zacks Consensus Estimate for full-year 2017 funds from operations (FFO) per share is expected to be up nearly 6.5% year over year to $1.15.

For FirstService Corporation, the Zacks Consensus Estimate for full-year 2017 funds from operations (FFO) per share is expected to be up nearly 53.3% year over year to $1.41.

For Unibail-Rodamco, the Zacks Consensus Estimate for full-year 2017 funds earnings estimates increased 7.7% to $1.39 over the past 60 days.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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