Cushman & Wakefield reports increase in revenue and earnings for 2011

6 Apr, 2012, Frankfurt

Cushman & Wakefield, the world’s largest privately held commercial real estate services firm, today reported full-year results for the year ended December 31, 2011, which show increases in revenue and earnings driven by the company’s strategic growth initiatives as it expands its platform to provide consistent and quality services to its global clients.

Cushman & Wakefield, which is majority owned by EXOR S.p.A., the investment company of the Agnelli family, reported gross revenue of $2.0 billion for the full year 2011, an increase of $236.3 million, or 13.4%, compared to the full year 2010. The performance was the second highest revenue in the firm’s history, after only 2007, when the firm reported $2.1 billion in revenue. Commission and service fee revenue, which excludes reimbursed costs related to managed properties and other costs, increased $172.7 million, or 12.3%, to $1.6 billion.

For the full-year 2011, net income on an IFRS basis improved $1.8 million, or 13.7%, to $14.9 million. Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) rose 19.7% to $111.1 million, compared to $92.8 million for 2010.

On a U.S. GAAP basis, net income for the full year 2011 fell $6.7 million to $19.0 million, primarily due to a year-over-year increase in income taxes. EBITDA on a U.S. GAAP basis increased $2.1 million, or 2.0%, to $109.4 million year-over-year. The difference between the company’s performance on a U.S. GAAP basis and an IFRS basis is due primarily to the accounting for compensation-related taxes and charges, the non-controlling interests’ put option rights and certain income taxes.

2011 Full-Year Highlights:

• Second consecutive year of double-digit revenue growth
• Significant revenue growth in all service lines and world regions
• On an IFRS basis, EBITDA margin increased from 6.6% in 2010 to 7.1% in 2011, representing an increase in EBITDA of $18.3 million, or 19.7%
• Value of global sales and leasing transactions rose $22 billion in 2011 to approximately $89 billion

“In 2011 Cushman & Wakefield moved aggressively, with the full support of EXOR, to implement its long-term strategic plan” said Glenn J. Rufrano, president and chief executive officer of Cushman & Wakefield. “This positioned the firm well to benefit from significant improvements in market conditions in the first half of the year and to finish with improved performance and transaction volume despite a challenging fourth quarter for the sector. Full-year operating performance improved significantly, and the company was able to take big strides on major initiatives, including global alignment of management, providing a consistent service mix, restructuring our credit facilities, continued reduction of debt, and making strategic hires. We will remain focused on executing on our plan and delivering the best real estate services to our clients.”

In 2011, Cushman & Wakefield acted as exclusive leasing and sales agent for many of the most prestigious properties worldwide. The firm was involved in more than 31,000 property sales and leasing transactions, with an aggregate value of nearly $89 billion. Highlights of 2011 included working as the exclusive agent on behalf of The Port Authority of New York and New Jersey and The Durst Organization to arrange a one-million-square-foot office lease to Condé Nast at One World Trade Center in Lower Manhattan; advising Google on its €100 million acquisition of two buildings in Dublin, the city’s largest investment transaction since 2007; arranging the $715 million sale of Capital Square, a 386,000-square-foot, class-A office building in Singapore; representing Nomura Holdings in its 900,000-square-foot lease at Worldwide Plaza in Manhattan; and completing the year’s largest office lease globally through its representation of Shell Oil Company in its 1.2 million square foot renewal in Houston.

The Company’s primary service lines include Leasing, Corporate Occupier & Investor Services, Valuation & Advisory, Capital Markets and Consulting. For 2011, growth was led primarily by Leasing, Corporate Occupier & Investor Services and Capital Markets; however, all service lines experienced significant year-over-year revenue growth.

As the trend of corporate real estate outsourcing strengthens, Cushman & Wakefield continues to gain major assignments globally and regionally on behalf of major corporations and institutions. During 2011, Cushman & Wakefield’s Corporate Occupier & Investor Services Group continued to win major accounts worldwide, including Ernst & Young, New York Life, United Technologies and Harley Davidson.

For more detailed information on Cushman & Wakefield’s full-year 2011 financial results, visit www.exor.com .

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