NEW YORK, Feb. 29, 2024 (GLOBE NEWSWIRE) -- Greystone Monticello and Cushman & Wakefield jointly announced today that the firms provided financing for, and represented the buyer of, respectively, a two-property portfolio of build-to-rent multifamily communities in Phoenix, Arizona. Jeems Lochridge of Cushman & Wakefield represented Balfour Pacific Capital and Stone View Holdings, the joint buyers and co-General Partners in the transaction, and Greystone's Dale Holzer of Greystone originated the loan through ...

CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, has been named a top two real estate brand by The Lipsey Company, an international leader in training and consulting specializing in the commercial real estate industry. Since 2002, The Lipsey Company has set the standard for the industry’s most recognizable brands by publishing its annual Top 25 Brand Survey. “We are proud to again be named a top real estate brand by The Lipsey Company,” said Brad Krei ...

Financial Data and Key Metrics Changes - For the full year 2023, the company generated fee revenue of $6.5 billion, a 10% decrease from the prior year, with adjusted EBITDA of $570 million, down 37% from 2022, and adjusted earnings per share of $0.84 [35][66] - In Q4 2023, fee revenue was $1.8 billion, a 3% decrease from the prior year, with adjusted EBITDA of $213 million, down $7 million from the prior year, and an adjusted EBITDA margin of 11.8%, essentially flat year-over-year [34][64] Business Line Data and Key Metrics Changes - Leasing revenues grew 5% year-over-year, marking the first positive result since Q3 2022, while capital markets revenue declined significantly [10][31] - PM/FM revenue increased 1% for the Americas, or 4.6% excluding the impact of a contract change, while overall PM/FM revenue grew 3% for the full year [11][35] - Project management saw a decline, particularly in Q4, while facilities management and property management remained strong [15][57] Market Data and Key Metrics Changes - The APAC region reported leasing revenue up 14% and capital markets up 5%, driven by strong growth in Southeast Asia and India [5] - EMEA brokerage revenue declined 1% in Q4, with capital markets down 26% and leasing up 13%, particularly strong in the U.K. [73] Company Strategy and Development Direction - The company is focused on long-term strategic plans and has begun deleveraging, with plans to reduce leverage later in Q1 2024 [7][12] - The company aims to capitalize on market recovery by enhancing balance sheet strength, improving cash flow, and focusing on accretive growth opportunities [33][63] - The company is optimistic about leasing growth in 2024, driven by larger office and industrial deals [54] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderate reduction in interest rates later in 2024, which could lead to a more active capital markets environment [8][62] - The company expects trends in capital markets to improve throughout 2024, with sustained growth likely in the second half of the year [36][74] - Management expressed confidence in the company's ability to manage costs while focusing on growth, despite facing inflationary pressures [67][50] Other Important Information - The company ended the year with $1.9 billion in liquidity, consisting of $800 million in cash and $1.1 billion available on its revolving credit facility [12][66] - The company achieved $101 million in free cash flow for the full year, a significant improvement from a $2 million use of cash in 2022 [66][69] Q&A Session Summary Question: What is the outlook for cash flow conversion in 2024? - Management expressed satisfaction with the free cash flow generated in 2023, attributing it to improved working capital efficiency and internal initiatives [19][43] Question: What are the expectations for leverage reduction? - Management indicated that leverage is a priority and plans to begin repaying debt, with expectations for natural leverage reduction as EBITDA improves [23][46] Question: How is the company addressing cost management? - Management confirmed that while they are not planning specific cost initiatives like in 2023, they will continue to focus on cost efficiency and growth [27][50] Question: What is the current state of the leasing market? - Management noted that larger occupiers are making decisions, particularly in Class A office spaces, contributing to improved leasing performance [48][54] Question: Can you provide insights on the services revenue? - Management clarified that services revenue grew 4% for the year, excluding a contract change, with strong performance in property and facilities management [57][35]

Cushman & Wakefield (CWK) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.21, delivering a surprise of 5%.Over the last four quarters, the company h ...

Financial Performance - Total revenue for 2023 was $9,493.7 million, a decrease of 6.0% from $10,105.7 million in 2022[303]. - Operating income fell to $205.6 million in 2023, down 61.5% from $535.1 million in 2022[303]. - Net loss for 2023 was $35.4 million, compared to a net income of $196.4 million in 2022[303]. - Basic loss per share attributable to common shareholders was $(0.16) in 2023, compared to earnings of $0.87 in 2022[303]. - Total assets decreased to $7,774.0 million in 2023 from $7,949.3 million in 2022, a decline of 2.2%[301]. - Total liabilities decreased to $6,096.0 million in 2023 from $6,287.2 million in 2022, a decline of 3.0%[301]. - Cash and cash equivalents increased to $767.7 million in 2023 from $644.5 million in 2022, an increase of 19.1%[301]. - Costs of services decreased to $7,841.6 million in 2023 from $8,153.5 million in 2022, a decrease of 3.8%[303]. - Other comprehensive income for 2023 was $5.6 million, compared to $2.0 million in 2022[305]. - The company reported a restructuring charge of $38.1 million in 2023, compared to $8.9 million in 2022[303]. - Cash flows from operating activities increased to $152.2 million in 2023, up from $49.1 million in 2022, but down from $549.5 million in 2021[312]. - The company reported a significant unrealized loss on equity securities of $27.8 million in 2023, compared to an unrealized gain of $84.2 million in 2022[312]. - The company reported a net cash used in financing activities of $120.8 million in 2023, compared to $79.3 million in 2022[312]. - The company’s total equity increased to $1,678.0 million as of December 31, 2023, from $1,662.1 million as of December 31, 2022[309]. Operational Highlights - In 2023, the Property, facilities, and project management service line generated 69% of total revenue and 55% of service line fee revenue, providing stability to cash flows[38]. - The recurring nature of the Property, facilities, and project management service line helps mitigate seasonality, generating more stable revenues throughout the year[48]. - The company operates with approximately 52,000 employees across nearly 400 offices in about 60 countries, enhancing its global scale and operational leverage[35]. - Approximately 42% of the company's employees' costs are fully reimbursed by clients, indicating a strong client relationship model[49]. - The company aims to leverage its breadth of services to provide superior client outcomes, focusing on bundling services to enhance value for clients[40]. - The integration of AI and machine learning technologies into the company's operations aims to enhance client experience through data-driven insights[43]. Market and Competitive Environment - Institutional owners are increasingly consolidating their real estate services providers, driving demand for consistent execution and streamlined management[32]. - The company faces competition from various local, regional, and global competitors across its service lines in the commercial real estate services industry[123]. - The company faces competition from both local/regional firms and larger national/multinational firms, which may require adjustments to its services or business model due to disruptive innovations like AI[124]. - Many clients have faced difficulties in procuring credit or financing, resulting in lower transaction volumes and declines in service lines such as Capital markets, Leasing, and Valuation[77]. - In 2023, macroeconomic challenges, including elevated inflation and interest rates, led to ongoing volatility in global capital and credit markets, negatively impacting demand for the company's services[76]. Risk Factors - The company faces risks to its brand and reputation due to actions taken by third parties, which could adversely affect revenues and profitability[82]. - The concentration of business with specific corporate clients increases business risk, potentially leading to financial losses if key clients experience issues[85]. - Competitive pressures may force the company to compromise on contract terms, increasing potential liabilities under contracts[86]. - Cybersecurity risks are increasing, with potential attacks leading to significant operational disruptions and reputational damage[93]. - Compliance with evolving data privacy regulations is critical, as failures could result in significant liabilities and reputational harm[95]. - The company is subject to various laws and regulations, and non-compliance could lead to fines and operational restrictions[99]. - The company is exposed to climate change risks, including physical and transition risks that could adversely affect operations and demand for commercial real estate[105]. - The company relies heavily on information technology and third-party solutions, and failures in these areas could materially impair service delivery[88]. Financial Obligations and Capital Structure - The company has a total indebtedness of approximately $3.2 billion as of December 31, 2023, which includes finance lease liabilities[116]. - The company is subject to a credit agreement governing $2.2 billion in term loans and a $1.1 billion revolving credit facility, with no funds currently drawn from the latter[111]. - The company may incur additional indebtedness, subject to restrictions in existing agreements, which could exacerbate leverage risks[118]. - The company’s ability to comply with financial ratios under the credit agreement may be affected by economic and market conditions[112]. - The company’s interest expense may increase due to rising interest rates, impacting refinancing costs[117]. Environmental and Social Responsibility - The company has set a target to reduce GHG emissions across its corporate offices and operations by 50% by 2030 from a 2019 base year[59]. - The company aims to engage clients representing 70% of emissions at managed properties to set their own science-based targets by 2025[60]. - The company targets to achieve net zero emissions across its entire value chain by 2050[60]. - The company is committed to advancing diversity, equity, and inclusion, earning recognition such as the 2023 Silver Top Global Supplier Diversity & Inclusion Champion[52]. - The company has announced greenhouse gas emissions targets and other environmental goals, which are voluntary and aspirational[106]. Shareholder and Governance Matters - As of December 31, 2023, TPG Inc. and PAG Asia Capital hold approximately 11% and 6% of the company's total outstanding shares, respectively, influencing board decisions and company policies[129]. - The company does not intend to pay cash dividends for the foreseeable future, focusing instead on retaining earnings for operations, expansion, and debt repayment[133]. - The company’s articles of association include provisions that may delay or prevent hostile takeovers, impacting shareholder rights[144]. - The company’s ability to pay dividends is dependent on cash distributions from subsidiaries, which may be limited by existing debt covenants[133]. - The company obtained shareholder authority to allot additional shares for a period of five years from May 11, 2023[149]. - The company received authorization to disapply statutory pre-emption rights for a period of five years from May 11, 2023[150]. - The company has authority to repurchase shares up to $300 million, valid for five years from September 2022[151].

CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, has been recognized on the Forbes list of America's Best Large Employers 2024. The annual award is presented by Forbes and Statista Inc., the world-leading statistics portal and industry ranking provider. “We’re proud to be recognized as one of America’s Best Large Employers. We have a special culture at Cushman & Wakefield. Our people never settle; they’re always pushing forward for our clients,” said ...

3. Occupiers have been right sizing their portfolios, but much of the effects of increased remote and hybrid work environments have filtered through the system. (Photo: Business Wire)2. The supply-side boom is quickly unwinding, and new office deliveries will be historically low in the middle of this decade. (Photo: Business Wire)1. The population out-migration trends in large cities that accelerated early during the pandemic are returning to long-term norms. (Photo: Business Wire)1. The population out-migr ...

CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), a global leader in real estate services, today announced an innovative and strategic collaboration with Measurabl, a leading provider of environmental, social, and governance (ESG) performance data solutions. “The challenge with ESG initiatives is in how you measure success. This technology, along with our in-house sustainability and property expertise, enables our clients to access data-driven insights that can inform on areas of strength, and a ...

CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), a global leader in real estate services, today announced Aubrey Waddell has been named Chief Executive Officer of the firm’s Global Occupier Services (GOS) division. “Our GOS business has been a top priority for many years now, as it is integral to our overall firm and client strategy – we have every confidence that Aubrey and the GOS leadership team will continue the growth of this critical service line,” said Andrew McDonald, Global President a ...

CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), a global leader in real estate services, today announced the firm is working with Microsoft to deploy an advanced suite of artificial intelligence (AI) solutions. “We are committed to seamlessly integrating our people with the right technology and processes to enhance service offerings to our clients. Today’s launch of the use of Microsoft Azure OpenAI Service and Copilot for Microsoft 365 at Cushman & Wakefield again demonstrates our ability to ...