Commercial real estate giant CBRE is looking at a choppy body of water due to tariffs.
- CBRE beat revenue estimates, but executives got a more cautious tonemaintains guidance for the year rather than raising it because of the economic uncertainty and fear of recession caused by the president’s tariff agenda.
The world’s largest commercial real estate service company Revenue It’s a beat, but there’s a choppy sea. Condemn the president’s tariffs.
“Due to the uncertainty generated by the tariff situation, our outlook is less clear,” CBRE Chairman and CEO Bob Slentic said in a Thursday morning revenue call.
Despite reporting an increase in earnings per share and earnings per share, the company chose to maintain guidance that year, but rather than increasing it, it is suffering from a recession, said Chief Financial Officer Emma Giamartino.
“Things went from really not good to not that good,” said Sulentic, who was valued at $22 million last year’s total payout. “We ended this quarter with a strong pipeline, but we’ve seen some meaning in what’s going on with tariffs.”
Sulentic shared that some of the capital of the investment management department, which invests and operates actual assets, and that business activities in the project management business, which consults and evaluates the business, are slowing down. “We went from a really enthusiastic photo to a photo with some choppies out there,” he said.
However, the office may be immune. The nearby apocalypse office, facing the pandemic, may finally be over. signal That was the last time we reported our revenue. Choppiness, which CBRE sees, has not affected office leases so far. In fact, offices benefit from the fact that many developments have not developed over the past few years, and businesses are now bringing workers back to their desks. According to Giamartino, CBRE reported an increase in office lease revenue by 38%.
The two executives held a cautious tone, but highlighted the resilience of the CBRE throughout the call, stressing that it would be better to survive the recession than when it came out of the big money crisis. “If we put our business through the same type of recession we saw at GFC, our decline is virtually low,” says Giamartino. “So, GFC, our decline was trauf from the peak of 85%. Now that’s less than half.”
CBRE did not respond immediately Fortune Request for further comment.
The company reported net revenue of $5.1 billion, an increase of 15% from the same period last year, with core earnings per share of $0.86. It forecasts core earnings per share between $5.80 and $6.10 per year. The shares rose after earnings of 1.7% as of 11am Eastern time.
Still, the president has put a part of him Tariff System Uncertainty is not suppressed on the ice. After Donald Trump announced a 90-day grace period, imposing a 10% comprehensive tax on other countries and further taxing China, the CEO continues to emphasize his attention.
“We adjusted our views on things to take into account a significant amount of uncertainty, which gives us a view that we have a higher risk of recession than before,” Slentic said. It “is a high risk that people are on the sidelines because they don’t want to act in times of uncertainty,” he added.
He continued, “We have no insight beyond that. It all assumes a lot of uncertainty, a lot of crudeness and a risk of a recession that we didn’t have before.”
Last year’s Sulentic almost $22 million compensation was more than it won in 2023, but under 2022, the latest Proxy Statement It has been revealed. Giamartino’s total compensation was valued at almost $7 million last year, up over two years.
This story was originally introduced Fortune.com