CBRE forecasts annual profit above estimates on AI-fueled real estate strength

Reuters
02/12
CBRE forecasts annual profit above estimates on AI-fueled real estate strength

Feb 12 (Reuters) - Real estate services firm CBRE Group CBRE.N on Thursday forecast annual profit above Wall Street estimates, citing strong momentum in leasing and facilities management as data centers rapidly expand.

Shares of the Dallas, Texas-based company were up 3% in premarket trading.

Billions of dollars flowing into artificial intelligence infrastructure are reviving parts of the commercial real estate market, sparking fresh construction, site acquisitions and long-term leasing that benefit service providers like CBRE.

"We saw significant gains in sales and leasing in the U.S. and much of the rest of the world, and our resilient businesses continued to post double-digit revenue growth, a trend we see continuing," CEO Bob Sulentic said.

The Federal Reserve is expected to hold interest rates for the rest of Fed chair Jerome Powell's tenure through May, signaling steady borrowing costs that could help boost commercial real estate activity, including leasing and property sales, which are key growth drivers for the sector.

The company, which offers leasing, mortgage services and property development, expects 2026 core earnings per share between $7.30 and $7.60, the midpoint of which is above analysts' expectations of $7.36 per share, according to data compiled by LSEG.

The company's revenue from the building operations and experience segment rose 14.6% to $6.31 billion during the quarter.

For the quarter ended December 31, CBRE posted core earnings per share of $2.73, above analysts' estimates of $2.68 per share.

Total revenue for the quarter rose 12% to $11.63 billion from $10.40 billion in the prior year. Analysts expected fourth-quarter revenue of $11.71 billion.

(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Tasim Zahid)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))

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