Grubb & Ellis Firing On All Cylinders

Grubb & Ellis Company (GBE: NYSE), one of the nation’s largest commercial real-estate service providers, reported big increases in net income, revenues and cash flow for the fiscal year 2000, which ended for the company on June 30. Fourth quarter results were equally impressive.

Fiscal 2000 revenues were $413.5 million vs $314.1 million in 1999, while Q4 2000 revenues were up 35% from the same period a year earlier to 107.4 million. Net income soared to $16.2 million vs. $8 million in fiscal 1999, while fourth quarter net also doubled to $4.5 million. Cash flow jumped 97% last fiscal year to $39.5 million.

“We’re capturing a bigger share of the growing corporate outsourcing business, handling larger assignments and expanding our relationships with existing clients,” said Brian Parker, executive vice president at Grubb & Ellis. Revenue growth resulted in strong cash flow gains, which Parker said was evidence of the growing efficiency of the company’s operations.

Advisory services led the way last year at Grubb & Ellis, growing much faster than management and services fees. Analysts say that this is evidence that Grubb & Ellis’s focus on advisory services is paying off. The company announced today that it has signed an advisory services contract with Richmond, VA-based Dominion Resources, a natural gas and integrated power company. The Dominion Resources account will be serviced from Grubb & Ellis’s Pittsburgh and Tyson’s Corner, VA offices. Terms of the deal were not disclosed.