Shares of CBRE Group (NYSE:CBRE) have jumped today, up by 12% as of 1:15 p.m. EDT, after the company reported third-quarter earnings results. CBRE also said it was moving its headquarters from Los Angeles to Dallas, confirming recent rumors.
Revenue in the third quarter was $5.65 billion, topping Wall Street's forecast of $5.3 billion in sales. That resulted in adjusted net income of $245 million, or $0.73 per share. Analysts were modeling for just $0.42 per share in adjusted profits. The largest commercial real estate company in the U.S. said that cost discipline boosted adjusted EBITDA, which was $442 million. CBRE acquired a small valuation service provider in South Korea during the quarter.
"The resilient aspects of our business, coupled with our moves to quickly align expenses with reduced market demand, are helping us weather the sharp, Covid-driven fall in property leasing and sales," CEO Bob Sulentic said in a statement. "At the present time, Covid is putting downward pressure on parts of our business and creating larger opportunities in other parts."
CBRE confirmed recent speculation that it would move its headquarters. The company was started in California over a century ago but is now planning to move to Dallas where its largest office is already located. CBRE does not intend to relocate employees but will instead add positions by recruiting local talent. Top management including Sulentic already work primarily out of the Dallas office.
The company did not provide specific guidance but offered some qualitative commentary. Transactional businesses are improving modestly from last quarter, and the attractive rate environment is boosting demand for quality real estate assets.