Cushman & Wakefield Reports Positive Earnings Performance for 2Q 2012

Cushman & Wakefield, the world's largest privately held commercial real estate services firm, today reported positive earnings performance, as the Company continues to execute its strategic growth initiatives and expand its platform to provide consistent and quality services to its global clients.

Second-quarter 2012 Results

Q2 2012 Highlights:

- Consolidated gross revenue consistent with prior year quarter (up 3.2% on a constant dollar basis) despite continuing uncertainty in global economic environment
- Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) growth of 5.9% and 9.5%, respectively
- On an IFRS basis, net income (income/(loss) attributable to owners of the parent) improved $4.6 million to $6.8 million
- Corporate Occupier & Investor Services ("CIS") business revenue increased 4.0% globally and 29.1% in the U.S, while the number of current client engagements increased 21% and the size of the managed portfolio increased by almost 10%

"In the first half of 2012, we made significant progress in executing our long-term strategic plan, investing in quality talent and positioning ourselves for growth within key markets and service lines," said Glenn J. Rufrano, President and Chief Executive Officer of Cushman & Wakefield. "We remain focused on delivering meaningful value to our clients, advising on how to best leverage their real estate to achieve their business goals, particularly in this challenging economic climate."

Cushman & Wakefield, which is majority-owned by EXOR S.p.A., the investment company controlled by the Agnelli family, reported that second-quarter 2012 gross revenue decreased less than 1%, or increased 3.2% excluding the impact of foreign exchange, to $503.7 million, as compared with $504.4 million for the second quarter of 2011. Second quarter 2012 commission and service fee revenue, which excludes reimbursed costs related to managed properties and other costs, declined 6.1%, or 2.6% excluding the impact of foreign exchange, to $381.6 million, as compared with $406.3 million for the prior year quarter. The slight decline reflected a slowdown in transactional activity resulting from the continuing uncertainty impacting the global economic environment. However, these declines were partially offset by continued growth in the CIS business, a major component of the firm's strategic growth plan, as Cushman & Wakefield continues to focus on enhancing its recurring revenue streams.

Operating income increased $1.2 million, or 5.9%, to $21.4 million for the second quarter of 2012, as compared with $20.2 million[i] for the second quarter of 2011, largely driven by a decrease in certain operating expenses, which offset the reduction in commission and service fee revenue. Further non-operating expense reductions contributed to an improvement in EBITDA[ii] of $2.6 million, or 9.5%, to $30.1 million for the second quarter, as compared with $27.5 million[i] for the prior year quarter. With year-over-year growth in operating income and EBITDA and a reduction in interest expense, partially offset by higher income taxes expense, Cushman & Wakefield improved net income on an IFRS[iii] basis by $4.6 million, to $6.8 million in the second quarter of 2012, as compared with $2.2 million[i] for the second quarter of 2011. On a U.S. GAAP basis, EBITDA increased $6.5 million, or 23.6%, to $34.1 million for the three months ended June 30, 2012, as compared with $27.6 million[i] for the second quarter of last year, while net income improved $2.5 million to $4.3 million for the quarter ended June 30, 2012, as compared with $1.8 million[i] for the same period in the prior year.

So far this year, Cushman & Wakefield acted as exclusive leasing and sales agent for many of the most prestigious properties worldwide, and advised on numerous high-profile transactions. Highlights included advising on two of the largest property sales in Hong Kong (Monterey Court in Jardine Lookout and Kowloon Commercial Center in Kowloon); arranging the $610 million sale of 100 Federal Street Tower in Boston on behalf of Bank of America, the largest investment sale in the U.S. this year; representing Salesforce.com in the largest long-term office lease signed in San Francisco in a decade; arranging the largest U.S. suburban build-to-suit on record on behalf of Green Mountain Coffee; and representing luxury retailers Burberry and Tom Ford in establishing flagship stores in Hong Kong and the UK, respectively.

The Company's primary service lines include Leasing, CIS, Valuation & Advisory, Capital Markets and Consulting. The Company's second-quarter 2012 results reflect continued growth in its CIS business. CIS revenue increased 4.0% globally, while CIS revenue in the U.S. increased 29.1%. Cushman & Wakefield continues to gain major assignments globally and regionally on behalf of major corporations and institutions. In 2012, Cushman & Wakefield's CIS business has continued to win major accounts worldwide, including its appointment to manage the Crown Estate's £1.5 billion regional portfolio in the U.K. and being awarded the facilities and project management for Kraft Foods Global's 4.1 million-square-foot portfolio in the U.S. and Canada. Square feet managed increased to 809 million square feet, compared with 764 million square feet for this time last year.

Six-month 2012 Results

Commission and service fee revenue in Q2 2012 vs. Q1 2012 is up $84.9 million (28.6%) quarter-over-quarter, while commission expense and cost of services sold are up $35.7 million (30.1%) and operating and other expenses are up only $5.7 million (2.7%) resulting in an increase in EBITDA of $43.6 million.

For the first six months of 2012, Cushman & Wakefield reported an increase in gross revenue of 2.5%, or 4.9% excluding the impact of foreign exchange, to $906.5 million, as compared with $884.4 million for the same period in the prior year. Commission and service fee revenue decreased 3.6%, or 1.1% excluding the impact of foreign exchange, to $678.2 million for the first six months of 2012, as compared with $703.5 million for the same period in the prior year. This slight decline reflects a slowdown in the global real estate market and was partially offset by continued growth in the CIS and Valuation & Advisory service lines across all geographic regions.

The decrease in commission and service fee revenues and an increase in cost of services sold, partially offset by reductions in commission and operating expenses, resulted in an operating loss of $2.8 million for the first half of 2012, as compared with operating income of $11.6 million[i] in the prior year period. EBITDA declined to $16.6 million in the first half of 2012, as compared with $31.2 million[i] in the first half of 2011.

The net loss was $18.4 million for the six months ended June 30, 2012, as compared with $11.5 million[i] for the prior year first half, as reported under IFRS. As reported under U.S. GAAP, EBITDA decreased $14.0 million to $18.2 million for the six months ended June 30, 2012, as compared with $32.2 million[i] for the first half of last year, while the Company's net loss increased to $17.2 million for the six months ended June 30, 2012, as compared with $9.6 million[i] for the same period in the prior year.

Subsequent to the end of Q2 2012 the Company announced the execution of an agreement to acquire the Atlanta- and Dallas-based third party client services business of Cousins Properties Incorporated (NYSE: CUZ). The business unit, known as the Client Services Group (CSG) provides third party services to owners of Class A office buildings in Atlanta and Dallas including Leasing, Property Management, and Project Management services. Under the terms of the agreement, up to 128 professionals will transition from Cousins to Cushman & Wakefield, providing immediate enhanced capabilities for clients supported by the firm's Investor Services and Leasing groups in two key geographic areas of focus as part of the firm's strategic growth plan. CSG's Property Management, Landlord Leasing and Management services will be integrated into Cushman & Wakefield's Investor Services division, which is part of the firm's Corporate Occupier and Investor Services (CIS) group and is a main priority of the firm's growth plan. CIS currently manages nearly 16,000 properties totaling more than 800 million square feet worldwide, and has recently won major assignments with such firms as Aegon, Clarion Partners and AEW.

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About Cushman & Wakefield, Inc.
Cushman & Wakefield is the world's largest privately held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.

NOTE: This release may include forward-looking statements. These statements may relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. These forward-looking statements are made based on our management?s expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. These uncertainties and factors could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements.

Forward-looking statements speak only as of the date the statements are made. Undue reliance should not be made on any forward-looking statements. C&W assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If forward-looking statements are updated, no inference should be drawn that C&W will make additional updates with respect to those or other forward-looking statements.

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[i] In the first half of 2012, C&W Group changed its accounting policies under both IFRS and U.S. GAAP regarding the recognition of, for interim period reporting, discretionary incentive plan expenses and "commission bonus program" expenses. Accordingly, the IFRS and U.S. GAAP results for the three and six month periods ended June 30, 2011 in this press release have been changed from what was originally reported for those periods to reflect the impact of these accounting policy changes. In addition, the U.S. GAAP income tax expense, and, therefore, the net income (loss) amounts, for the three and the six months ended June 30, 2011 have been changed from what was originally reported for those periods to reflect a change in the methodology for applying the full-year estimated global effective tax rate, for interim period reporting, to certain non-U.S. pre-tax losses. The accounting policy and income tax methodology changes had no impact on the previously reported results for full-year 2011 for IFRS or U.S. GAAP.

[ii] 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 the use of a measure of EBITDA, before taking into account incentive compensation, 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.

[iii] 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 under International Financial Reporting Standards ("IFRS"), as opposed to under accounting principles generally accepted in the United States of America ("U.S. GAAP"). Cushman & Wakefield's financial results under IFRS vary from those presented on a U.S. GAAP basis. The difference between the IFRS and U.S. GAAP measures of net income and loss is primarily due to the accounting for compensation-related taxes and charges, the non-controlling interests' put option rights and certain income tax adjustments. The difference between the EBITDA under IFRS and the EBITDA under U.S. GAAP is attributable to those same items, excluding the income tax impacts.