Shares in CBRE, JLL, Savills and Colliers International have bounced back to pre-EU referendum levels - boosted in the past fortnight by better than expected financial results.
This month, CBRE, JLL and Colliers have all reported their figures for 2016, which were largely more positive than analysts had forecast.
Since the publication of its results last Friday, CBRE shares have jumped 11% and are now trading 19% above where they stood on the eve of the EU referendum.
CBRE’s results showed revenues jumped 20% to $13.1bn (£10.5bn) in 2016 and adjusted EBITDA increased by 10% to $1.6bn. Despite the slowdown in the UK investment market, CBRE also grew revenues and profits across Europe, the Middle East and Africa (EMEA).
The recovery comes after CBRE’s shares plummeted in the immediate aftermath of the Brexit vote. They tumbled 17% in the first two days after the referendum, forcing the US-listed firm to issue a statement to calm investor nerves by pointing out that the UK accounted for about “10% of CBRE’s global normalised EBITDA” in 2015.
JLL shares have also recovered sharply. Although they are still trading just shy of 23 June levels, they have risen nearly 10% following the company’s results on 6 February.
JLL’s group profits were down in 2016 and across EMEA operating profit tumbled by 45% - a decline in profitability that the group said was “primarily UK-focused”. However, the results showed signs of improvement in the fourth quarter with profits falling less sharply.
Meanwhile, Colliers shares jumped over 6% in early trading this Wednesday on the back of its annual results. The firm reported 10% growth in revenues and 12% growth in adjusted EBITDA. However, in EMEA adjusted EBITDA slipped a fraction in the wake of “a decline in higher-margin sales brokerage revenue in the UK in the second half of the year”.
Savills shares are also now trading above pre-Brexit vote levels after the UK-listed firm revealed last month its full-year results would be “meaningfully” ahead of expectations.
In reaction to the news, the firm’s shares jumped 13.69% in a single day.