CBRE profits back in black after losses

CB Richard Ellis, the world&rsquo;s biggest property management firm, yesterday missed analyst forecasts for its third quarter results but posted a return to profit.<br /><br />The group &ndash; which has worked on&nbsp; the City&rsquo;s biggest property deals including Macquarie&rsquo;s move to Drapers Gardens and Nomura&rsquo;s return to the Thameside Watermark Place &ndash; posted a 69 per cent fall in pre-tax profits to $12.4m (&pound;7.5m) on the year before.<br /><br />The move into profit is a sign of wider market stabilisation after three straight quarters of losses. The group reported for the nine months ended 30 September a net loss of &pound;30.9m.<br /><br />Chief executive Brett White said: &ldquo;We are beginning to see signs that market conditions in some parts of the world and in some business segments &ndash; like the broader economy &ndash; are starting to stabilise.&rdquo;<br /><br />Tight credit and the recession have savaged the global commercial property market as retailers close stores and businesses cut jobs and scale back on space. <br /><br />This has hurt the company&rsquo;s most profitable business, leasing and sales. Sales and leasing will remain under pressure until credit markets and the global economy recover, the company said.<br /><br />Third quarter revenue in the Europe, Middle East and Africa (EMEA) region was $192.3m, a 29 per cent fall from the $271.7m in the same period last year<br /><br />Analysts pointed to the company&rsquo;s tight cost-controls and debt restructuring,&nbsp; tactics that have pushed the group back into the black. <br /><br />The group said it had agreed with lenders to extend loan maturities on $985m of debt and also succeeded in selling off a slew of distressed assets in June.