CHICAGO - Cushman & Wakefield (NYSE: CWK) today reported financial results for the third quarter ended September 30, 2021:
Strategic Announcements:
- Recently announced agreement to enter into a strategic joint venture with Greystone to deliver leading multifamily agency lending & servicing platform. Cushman & Wakefield will make a strategic investment of $500 million to acquire a 40% stake in Greystone’s Agency, FHA and Servicing businesses. The transaction is expected be immediately accretive upon closing later this year, subject to customary closing conditions.
- Entered an exclusive strategic partnership with WeWork to provide clients best-in-class office operations by combining WeWork's proprietary platform of workplace experience management software with Cushman & Wakefield’s asset and facilities management services.
Financial Results:
- Revenue for the third quarter of 2021 of $2.3 billion was up 21% (up 20% local currencyi) from the third quarter of 2020. Fee revenue of $1.7 billion was up 28% (up 27% local currency) versus prior year.
- Fee revenue grew across all segments and service lines, brokerage fee revenue improved 64% on local currency led by the Americas
- Property, facilities and project management and Valuation and other fee revenue grew 5% and 11%, respectively, on local currency
- Net income and earnings per share for the third quarter of 2021 were $68.7 million and $0.30, respectively. Adjusted earnings per share was $0.48.
- Adjusted EBITDA was $219.1 million, up 87% (85% local currency) from the third quarter of 2020.
- Adjusted EBITDA margin of 12.9% expanded 405 basis points from the third quarter of 2020.
- Operating efficiency initiatives remain on track to deliver $125 million of gross savings in 2021.
- Generated strong cash flow from operations of $250 million year to date.
- Significant liquidity as of June 30, 2021 of $2.1 billion consisting of cash on hand of $1.1 billion and availability under the Company's undrawn revolving credit facility of $1.0 billion.
- Significant liquidity as of September 30, 2021 of $2.2 billion consisting of cash on hand of $1.2 billion and availability under the Company's undrawn revolving credit facility of $1.0 billion.
"We’re excited to continue building and differentiating our global service platform in the market through strategic partnerships with leading companies. Through our joint venture with Greystone, we’ll deliver a powerful offering that combines our firms’ respective multifamily investment sales and lending capabilities with direct access to Greystone’s balance sheet and capital solutions. We expect this to be immediately accretive to our operating results upon closing later this year. Additionally, our exclusive partnership with WeWork will bring unmatched accessibility to flexible offerings, best-in-class technology and a seamless tenant experience to our clients,” said Brett White, Executive Chairman and CEO.”
“Our strong third quarter results demonstrate our continued focus on operational excellence as margins increased more than 350 basis points year-to-date and were up more than 190 basis points versus the first nine months of 2019. We are also encouraged by the resiliency of our brokerage business which has performed ahead of 2019 levels now for two straight quarters,” he continued.
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INVESTOR RELATIONS:
Len Texter | Investor Relations
+1 312 338 7860
IR@cushwake.com
