Cushman & Wakefield Reports Strong Revenue and EBITDA Growth for 2010

28 Mar, 2011, New York

Cushman & Wakefield, the premier global commercial real estate services firm, today reported full year results for the period ended December 31, 2010, which show strong revenue growth tied closely to the company's leadership position in the world's major business districts - markets that have been at the forefront of the commercial real estate recovery to date.

For the full year 2010, net income on a U.S. GAAP basis increased $141.5 million to $25.7 million, compared to a full year 2009 net loss of $115.8 million. On an IFRS basis, for the full year 2010, net income improved $140.1 million to $13.1 million, compared to a prior year net loss of $127 million.[i] Included in the prior year net loss, on an IFRS basis, were certain non-recurring or incremental charges totaling $94.8 million after-tax.[ii] Excluding these charges, the net loss for the full year 2009 would have been $32.2 million.

On a U.S. GAAP basis, Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) for the full year 2010 rose 278 percent to $107.3 million, compared to $28.4 million for 2009.[iii] On an IFRS basis, for the full year 2010, EBITDA rose 391 percent to $92.8 million, compared to $18.9 million for 2009. Full year commission and service fee revenue totaled $1.4 billion, an improvement of 16 percent from prior year revenue of $1.2 billion.[iv] Full year 2010 gross revenue totaled approximately $1.8 billion.[v]

2010 Full-Year and Fourth Quarter Highlights:

-Fifth consecutive quarter of double digit revenue growth

-Sales and leasing volume rises $14 billion in 2010 to $67 billion

-Revenue growth in all service lines and world regions

-Low level of debt positions the firm for strategic growth

"Last year represented the start of a global recovery in commercial real estate services prompted by decision making with regard to pent up demand for capital allocation and to provide for occupier space needs," said Glenn J. Rufrano, president and chief executive officer of Cushman & Wakefield. "Much of the capital activity was the result of demand for core assets in core markets worldwide from an occupier and investor standpoint, and increased availability of capital. We see these trends continuing. Cushman & Wakefield's business model continues to be well tailored to benefit from the quality market requirements given the strength of our brand, the tenure and experience of our professionals, the quality of our clients and our strategic emphasis on global coordination and consistency of service in the world's largest business districts."

As the market has improved, Cushman & Wakefield has been engaged as exclusive leasing and sales agent for many of the most prestigious properties worldwide. In New York, the Company is the exclusive leasing agent for One World Trade Center, the first and tallest of several skyscrapers under development at the site of the former World Trade Center. In London, the Company is leasing agent for Heron Tower, the tallest and most modern building in the City. In Singapore, the Company recently completed the $700 million sale of Capital Square, one of the country's most prominent mixed-use assets.

During 2010, Cushman & Wakefield was involved in more than 27,000 property sales and leasing transactions, with an aggregate value of nearly $67 billion. In 2010, highlights included the $930 million sale of The John Hancock Tower in Boston; the $440 million acquisition of one of the largest shopping centers in Italy, Porta Di Roma, and the $1.1 billion sale of approximately 2,000 residential and commercial ADC loans.

The Company's primary service lines include Leasing, Corporate Occupier & Investor Services, Valuation & Advisory, Capital Markets and Consulting. For 2010, growth was led primarily by Leasing and Capital Markets, however all service lines experienced year-over-year growth in revenue.

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 2010, Cushman & Wakefield's Corporate Occupier and Investor Services Group continued to win major accounts worldwide. Prime examples include the integrated services assignment on behalf of United Technologies' 52 million square foot portfolio in 1,600 locations, and Transaction Management and Consulting Services throughout the Americas on behalf of Pfizer.

Throughout 2010, the Company continued to maintain its focus on strong financial discipline and operating execution, which led to significantly improved cash flow and debt reduction, as reflected in the Company's net financial position. This positions the firm well to pursue its strategic growth initiatives.

For more detailed information on Cushman & Wakefield's fourth quarter and full year 2010 financial results, visit www.exor.com.

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[i] For the purpose of adhering to regulatory reporting requirements for EXOR S.p.A., Cushman & Wakefield's majority shareholder, Cushman & Wakefield's financial results are presented by EXOR on an IFRS basis, as compared to a U.S. GAAP basis. Cushman & Wakefield's financial results vary on an IFRS basis as compared to a U.S. GAAP basis. Since Cushman & Wakefield's peer group reports financial results on a U.S. GAAP basis, Cushman & Wakefield provides its results on an IFRS and U.S. GAAP basis. The difference between the IFRS and U.S. GAAP measures of EBITDA and net income (loss), is primarily due to the accounting for compensation-related taxes and charges and the non-controlling interests' put option rights, in addition to certain income tax adjustments.

[ii] Non-recurring/incremental charges for 2009 included impairment charges, restructuring charges associated with cost-reduction initiatives and costs associated with the relocation of the firm's world headquarters.

[iii] The Company's management believes that EBITDA is useful in evaluating its operating performance compared to that of other companies in its industry, because the calculation of EBITDA generally eliminates the effects of financing, income taxes, capital spending and acquisitions, which may vary for different companies for reasons unrelated to overall operating performance. The Company's management uses EBITDA to evaluate the performance of various service lines and for other discretionary purposes, including use as a significant component when measuring performance under its employee incentive programs. Management also believes EBITDA is useful to its investors as a measure of results from operations.

[iv] Commission and service fee revenue excludes revenue derived from reimbursed employment costs related to properties under management.

[v] Gross revenue includes commission and service fee revenue as well as reimbursed employment costs related to properties under management. Throughout this press release, all references to revenue reflect gross revenue, unless otherwise noted.

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