Cushman & Wakefield reports $101M quarterly loss

Brokerage activities slowed drastically, firm says

TRD NATIONAL /
Aug.August 06, 2020 08:05 PM
Cushman & Wakefield’s Brett White

Cushman & Wakefield’s Brett White

Cushman & Wakefield reported a net loss of $100.8 million in the second quarter, down from a $6.3 million profit a year ago.

The loss came despite cost-cutting, as $75 million was trimmed for things such as travel, entertainment, events and incentive compensation.

“I think most of us would agree that the impact of Covid-19 is unique and certainly different from previous recessions such as the great financial crisis,” said CEO Brett White during an earnings conference call Thursday. “However, while the shape of the recovery may differ from the GFC in the second quarter, the initial impact of Covid-19 presented similar behavior in our industry, especially across our leasing and capital markets brokerage businesses.”

Revenue from leasing activities during the second quarter was $264 million, down by 46 percent from $489 million in the same period last year. Revenue from capital market activities was $113 million, down by 52 percent from a year ago.

The firm’s total revenue for the second quarter was about $1.7 billion, down by 18 percent from last year’s $2.1 billion.

As in the first quarter, the steady stream of revenue from property management was a bright spot. That business line made up about 40 percent of total revenue in the second quarter.

In May, the company issued $650 million of senior secured notes, which mature in 2028, to expand its liquidity and be ready for merger and acquisition opportunities, White said.

“As many of you know, in this industry, differentiated real estate service platforms do not tend to trade hands often,” he said. “In times of stress, the market for those businesses can provide generational opportunities and Cushman & Wakefield is well positioned to take advantage of these should they arise.”

Contact Akiko Matsuda at [email protected]


Related Articles

arrow_forward_ios
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
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Centric Brands CEO Jason Rabin and the Empire State Building at 350 Fifth Avenue (Centric; Pixabay)

Centric Brands downsizes at the Empire State Building

Centric Brands downsizes at the Empire State Building
60 Wall Street and Deutsche Bank CEO of Americas Christiana Riley (Wikipedia Commons; PxHere; Getty)

Pandemic speeds last major bank’s exit from Wall Street

Pandemic speeds last major bank’s exit from Wall Street
529 Fifth Avenue and Silverstein Properties' Larry Silverstein (Google Maps; Getty)

Silverstein gets $171M refi for 529 Fifth Avenue

Silverstein gets $171M refi for 529 Fifth Avenue
AIG CEO Brian Duperreault and Brooklyn Navy Yard project, with Andrew Joblon and 980 East 149th Street (Turnbridge, Brooklyn Navy Yard)

These were the top outer-borough loans in September

These were the top outer-borough loans in September
1000 Dean Street with Jamie Hodari and Asher Abehsera (Google Maps)

Industrious expands with 21K-sf space in Crown Heights

Industrious expands with 21K-sf space in Crown Heights
arrow_forward_ios

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

Loading...