Cushman’s income drops 70% in Q1

CEO says firm can weather the storm thanks to property management business

TRD NATIONAL /
May.May 07, 2020 07:10 PM
Cushman & Wakefield's Brett White (Credit: iStock)

Cushman & Wakefield’s Brett White (Credit: iStock)

Cushman & Wakefield reported net income of nearly $7 million in the first quarter of 2020, down 70 percent from the same time last year.

Revenue remained relatively flat at just shy of $1.9 billion, but the firm posted larger operating losses.

The steady stream of revenue from property management, which made up a little more than half of the quarter’s fee revenue, helped mitigate the losses in leasing and capital markets due to the coronavirus pandemic, according to CEO Brett White.

“Businesses in our industry that are only capital markets businesses are going to get hammered,” he said on the company’s earnings call Thursday evening.

White said the big three real estate service firms — Cushman, CBRE and JLL — are well positioned to weather the financial downturn thanks to their large property management businesses. Smaller firms that focus on capital markets or leasing, he said, would feel the pinch more.

“We’ll be watching those firms carefully,” he added.

White said Cushman has put mergers and acquisitions on hold for the time being. But he said the company would make an exception if particularly attractive deals came across the table.

He said that in the early days of the pandemic, companies were surprised by work-from-home productivity levels, leading to questions about whether firms would abandon large portions of their office space en masse.

He said those opinions are changing now. “That conversation has changed demonstrably,” he said.

Contact Rich Bockmann at [email protected] or 908-415-5229


Related Articles

arrow_forward_ios
Related chairman Stephen Ross (Getty; iStock; Health Pass) 

Related, Cushman & Wakefield use new app to screen workers for Covid

Related, Cushman & Wakefield use new app to screen workers for Covid
Cushman & Wakefield CEO Brett White and JPMorgan CEO Jamie Dimon (Cushman & Wakefield; Getty)

Cushman’s $3B debt load poses default risk

Cushman’s $3B debt load poses default risk
The Manhattan office market’s overall vacancy rate rose to a 24-year high of 13.3% in the third quarter (iStock)

Cushman & Wakefield paints bleak picture for Manhattan office market

Cushman & Wakefield paints bleak picture for Manhattan office market
Cushman’s Brett White and Newmark’s Barry Gosin (Getty)

Newmark Group rejects Cushman & Wakefield takeover offer

Newmark Group rejects Cushman & Wakefield takeover offer
Cushman and Wakefield CEO Brett White (Getty; iStock; Cushman and Wakefield)

Lawsuits against Cushman & Wakefield target appraisers’ pay

Lawsuits against Cushman & Wakefield target appraisers’ pay
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Cushman & Wakefield CEO Brett White and Industrious CEO Jamie Hodari (Industrious; Cushman)

Cushman partners with Industrious in bid to bring the office back

Cushman partners with Industrious in bid to bring the office back
Cushman & Wakefield’s Brett White

Cushman & Wakefield reports $101M quarterly loss

Cushman & Wakefield reports $101M quarterly loss
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...