The Real Deal New York

Cushman posts operating income of $11M in the third quarter

Company refinanced its corporate debt
By Rich Bockmann | November 14, 2018 06:15PM

225 West Wacker Drive in Chicago and Brett White (Credit: iStock and Hines)

Cushman & Wakefield reported revenues of $2.07 billion during the third quarter, an increase of 21 percent over the same time last year.

Expenses during the quarter rose 17 percent on the year to $2.06 billion, for operating income on the quarter of $11 million.

“We’re making good progress in our financial, operational and strategic growth objectives,” CEO Brett White said on the company’s third-quarter earnings call Tuesday evening.

It was Cushman’s second earnings call since the company went public with its $765 million initial public offering in August.

Cushman was saddled with a significant amount of debt following the IPO, and during the third quarter the company refinanced its debt facilities. Cushman issued $2.7 billion of first-lien debt that carries a seven-year maturity.

The company paid off its second lien, and completed a new revolving credit facility of $810 million with a five-year maturity.

Fee revenue in the Americas grew 20 percent in the quarter, driven by a 34 percent increase in leasing growth and 25 percent in capital markets, the company said. White also said he expects strong office leasing numbers to continue into 2019.

Cushman’s stock price late Wednesday afternoon was at $18.65 per share, up from its IPO price of $17 per share.