CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2022
CBRE Group reported financial results for FY 2022, with GAAP EPS falling 21% to $4.29, while Core EPS rose 7% to $5.69. Q4 revenue decreased 4.2% to $8,194 million, and net revenue fell 10.6% to $4,975 million. Net income plummeted 88.3% in Q4, indicating significant challenges, particularly in the Advisory Services and Capital Markets segments. Despite these setbacks, CBRE anticipates a low to mid-double-digit decline in Core EPS for 2023 but expects growth afterward. Free cash flow for Q4 was $715 million, alongside successful stock repurchases totaling 22.9 million shares for $1.9 billion throughout 2022.
- Core EPS rose 7% for FY 2022 to $5.69.
- Free cash flow for Q4 was $715 million.
- CBRE anticipates strong growth in Core EPS post-2023.
- GAAP EPS fell 21% for FY 2022 to $4.29.
- Q4 2022 revenue decreased by 4.2% compared to Q4 2021.
- Net income declined by 88.3% in Q4.
-
GAAP EPS fell
21% for FY 2022 to$4.29 -
Core EPS rose
7% for FY 2022 to$5.69
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data; totals may not add due to rounding):
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
||||||||||||
|
Q4 2022 |
|
Q4 2021 |
|
USD |
|
LC (1) |
|
FY 2022 |
|
FY 2021 |
|
USD |
|
LC (1) |
||||||||
Operating Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
8,194 |
|
$ |
8,550 |
|
(4.2 |
)% |
|
1.1 |
% |
|
$ |
30,828 |
|
$ |
27,746 |
|
11.1 |
% |
|
15.3 |
% |
Net revenue (2) |
|
4,975 |
|
|
5,566 |
|
(10.6 |
)% |
|
(5.8 |
)% |
|
|
18,777 |
|
|
17,010 |
|
10.4 |
% |
|
14.5 |
% |
GAAP net income |
|
81 |
|
|
692 |
|
(88.3 |
)% |
|
(97.0 |
)% |
|
|
1,407 |
|
|
1,837 |
|
(23.4 |
)% |
|
(24.5 |
)% |
GAAP EPS |
|
0.25 |
|
|
2.04 |
|
(87.5 |
)% |
|
(96.8 |
)% |
|
|
4.29 |
|
|
5.41 |
|
(20.7 |
)% |
|
(21.7 |
)% |
Core adjusted net income (3) |
|
424 |
|
|
610 |
|
(30.4 |
)% |
|
(36.2 |
)% |
|
|
1,863 |
|
|
1,810 |
|
2.9 |
% |
|
4.1 |
% |
Core EBITDA (4) |
|
668 |
|
|
956 |
|
(30.1 |
)% |
|
(25.7 |
)% |
|
|
2,924 |
|
|
2,864 |
|
2.1 |
% |
|
6.1 |
% |
Core EPS (3) |
|
1.33 |
|
|
1.80 |
|
(26.0 |
)% |
|
(32.2 |
)% |
|
|
5.69 |
|
|
5.33 |
|
6.7 |
% |
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash Flow Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow provided by operations |
$ |
814 |
|
$ |
1,164 |
|
(30.0 |
)% |
|
|
|
$ |
1,629 |
|
$ |
2,364 |
|
(31.1 |
)% |
|
|
||
Less: Capital expenditures |
|
99 |
|
|
88 |
|
12.1 |
% |
|
|
|
|
260 |
|
|
210 |
|
24.0 |
% |
|
|
||
Free cash flow (5) |
$ |
715 |
|
$ |
1,076 |
|
(33.5 |
)% |
|
|
|
$ |
1,369 |
|
$ |
2,154 |
|
(36.5 |
)% |
|
|
“Although core earnings declined significantly in the fourth quarter, they slightly exceeded the estimate we provided last quarter. This outcome was driven by better-than-expected growth in several of the more cyclically resilient elements of our business like outsourcing and others that are secularly favored like project management and the logistics asset class – offset by a slightly larger-than-expected decline in transactional revenue,” said
“For all of 2022, we achieved a solid,
For 2023, we expect core earnings-per-share to decline by low- to mid-double digits, but still to be the third-highest in CBRE’s history. While the macro environment can certainly change, we expect core earnings-per-share to grow strongly in 2024, exceeding the 2022 peak and reaching a record level in just the first year after a recession.”
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions; totals may not add due to rounding):
|
|
|
|
|
% Change |
||||||||
|
Q4 2022 |
|
Q4 2021 |
|
USD |
|
LC |
||||||
Revenue |
$ |
2,613 |
|
|
$ |
3,319 |
|
|
(21.3 |
)% |
|
(17.4 |
)% |
Net revenue |
|
2,595 |
|
|
|
3,302 |
|
|
(21.4 |
)% |
|
(17.6 |
)% |
Segment operating profit (6) |
|
500 |
|
|
|
744 |
|
|
(32.9 |
)% |
|
(28.8 |
)% |
Segment operating profit on revenue margin (7) |
|
19.1 |
% |
|
|
22.4 |
% |
|
(3.3 pts) |
|
(3.1 pts) |
||
Segment operating profit on net revenue margin (7) |
|
19.3 |
% |
|
|
22.5 |
% |
|
(3.3 pts) |
|
(3.1 pts) |
Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.
-
Global leasing revenue declined
7% (3% local currency). -
The decline was driven by the
Americas , where revenue fell7% (same in local currency). -
Foreign currency headwinds masked growth in overseas markets. Combined EMEA/APAC leasing revenue was up
7% in local currency, but down6% inU.S. dollars. Before currency effects, growth was notably strong inNorth Asia, Pacific and theUnited Kingdom . - Global leasing revenue declined across all major property types, except retail.
Capital Markets
-
A highly constrained capital environment and difficult comparisons with fourth-quarter 2021 caused global sales revenue to fall
47% (44% local currency). -
Investment activity weakness was broad-based. Combined EMEA/APAC sales revenue dropped
33% (23% in local currency); however,China ,India andJapan showed strong growth before currency effects. -
In the
Americas , sales revenue was down53% (same local currency) below last year’s robust level.Americas sales revenue increased90% in fourth-quarter of 2021 versus fourth-quarter 2020, making the current quarter comparison particularly challenging. - Global sales revenue was down significantly across all major property types.
-
Most debt capital sources remained on the sidelines throughout the quarter. As a result, global mortgage origination revenue declined
42% (41% local currency).
Other Advisory Business Lines
-
Loan servicing revenue fell
19% (18% local currency), reflecting lower prepayment fees, which were unusually elevated in last year’s fourth quarter. Excluding prepayment fees, loan servicing revenue increased2% , compared with fourth-quarter 2021. The servicing portfolio ended the year at , up$381 billion 9% from third-quarter 2022 and16% for the year. -
Property management net revenue rose
4% (10% local currency), paced by theAmericas , Continental Europe, and Pacific. -
Valuations revenue rose
4% in local currency but declined3% inU.S. dollars.
The following table presents highlights of the GWS segment performance (dollars in millions; totals may not add due to rounding):
|
|
|
|
|
% Change |
||||||||
|
Q4 2022 |
|
Q4 2021 |
|
USD |
|
LC |
||||||
Revenue |
$ |
5,294 |
|
|
$ |
4,823 |
|
|
9.8 |
% |
|
15.9 |
% |
Net revenue |
|
2,093 |
|
|
|
1,855 |
|
|
12.8 |
% |
|
19.2 |
% |
Segment operating profit |
|
259 |
|
|
|
198 |
|
|
30.5 |
% |
|
39.4 |
% |
Segment operating profit on revenue margin |
|
4.9 |
% |
|
|
4.1 |
% |
|
0.8 pts |
|
0.8 pts |
||
Segment operating profit on net revenue margin |
|
12.4 |
% |
|
|
10.7 |
% |
|
1.7 pts |
|
1.8 pts |
Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.
-
GWS revenue increased
7% (13% local currency), excluding revenue from Turner & Townsend (60% interest acquired onNovember 1, 2021 ). -
Net revenue increased
6% (12% local currency), excluding Turner & Townsend. -
Project management net revenue growth was particularly strong even before the Turner & Townsend contributions, rising
14% (21% local currency). -
Facilities management net revenue rose
3% (9% local currency), supported by significant growth from technology and healthcare clients. - The Turner & Townsend business continued to perform ahead of expectations.
- The GWS new business pipeline increased, driven by a diversified mix of prospects in the financial and professional services, industrial and technology sectors.
-
Excluding contributions from Turner & Townsend, GWS segment operating profit rose
17% (25% local currency) reflecting strong top-line growth, prudent cost management actions and the benefit of one-time items.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
|
|
|
|
|
% Change |
||||||
|
Q4 2022 |
|
Q4 2021 |
|
USD |
|
LC |
||||
Revenue |
$ |
291 |
|
$ |
413 |
|
(29.6 |
)% |
|
(23.4 |
)% |
Segment operating profit |
|
17 |
|
|
156 |
|
(89.0 |
)% |
|
(91.8 |
)% |
Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.
Real Estate Development
-
Operating loss (8) totaled
compared with a$6 million profit in fourth-quarter 2021.$122 million -
The result reflects sharply lower
U.S. asset dispositions versus last year’s robust fourth quarter, as anticipated, as well as losses on development activities in theU.K. and Continental Europe. -
For full-year 2022, development operating profit of
was the second-highest in company history.$333 million -
The in-process portfolio ended the year at
, down$16.9 billion from third-quarter 2022, reflecting deferred timing of certain new projects in light of market conditions.$2.6 billion - Industrial and multifamily assets comprised more than two thirds of the in-process portfolio.
Investment Management
-
Revenue edged up
3% in local currency but fell6% inU.S. dollars to .$140 million -
Asset management fees, up
2% (12% local currency), were the primary growth catalyst. -
Operating profit decreased
42% (39% local currency) to , in part due to co-investment losses versus a gain in fourth-quarter 2021.$24 million -
Assets Under Management (AUM) increased
from third-quarter 2022 to$5.4 billion , a record high for the company. The increase was attributable to net inflows of capital and positive currency movement. In local currency, AUM was down$149.3 billion , reflecting lower property values.$0.5 billion
Corporate and Other Segment
-
Non-core operating loss totaled
, primarily due to the lower fair-value of the company’s investment in$167 million Altus Power, Inc. (NYSE:AMPS), reflecting a decline in the share price during the quarter. Fourth-quarter 2021 non-core operating profit was , primarily due to a one-time gain recognized upon the merger of$169 million CBRE Acquisitions Holdings, Inc. withAltus Power . -
Corporate overhead expenses decreased by roughly
($35 million 24.6% ), driven by lower stock compensation, bonus expense and corporate donations, partially offset by higher salary and benefits expenses.
Capital Allocation Overview
-
Free Cash Flow – During the fourth quarter of 2022, free cash flow was
. This reflected cash provided by operating activities of$715 million , less total capital expenditures of$814 million . Net capital expenditures totaled$99 million . (9)$97 million -
Stock Repurchase Program – The company repurchased approximately 6.1 million shares for
($451 million average price per share) during the fourth quarter of 2022, and 22.9 million shares for$73.84 ($1.9 billion average price per share) during all of 2022. There was approximately$81.31 of capacity remaining under the company’s authorized stock repurchase program as of$2.1 billion December 31, 2022 . -
Acquisitions and Investments – CBRE completed two in-fill acquisitions totaling
in cash and deferred consideration during the fourth quarter.$114 million
Leverage and Financing Overview
-
Leverage – CBRE’s net leverage ratio (net debt (10) to trailing twelve-month Core EBITDA) was 0.14x as of
December 31, 2022 , which is substantially below the company’s primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):
|
As of |
|
|
|
|
Total debt |
$ |
1,734 |
Less: Cash (11) |
|
1,318 |
Net debt (10) |
$ |
416 |
|
|
|
Divided by: Trailing twelve-month Core EBITDA |
$ |
2,924 |
|
|
|
Net leverage ratio |
0.14x |
-
Liquidity – As of
December 31, 2022 , the company had approximately of total liquidity, consisting of approximately$4.8 billion in cash, plus the ability to borrow an aggregate of approximately$1.3 billion under its revolving credit facilities, net of any outstanding letters of credit.$3.5 billion
Conference Call Details
The company’s fourth quarter earnings webcast and conference call will be held today,
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (
About
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s future growth momentum, operations, business outlook, capital deployment and financial performance, including core earnings per share. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside
Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended
The terms “net revenue,” “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin,” “net debt” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under
Totals may not sum in tables in millions included in this release due to rounding.
Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this presentation to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
(1) | Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results. |
|
(2) | Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin. |
|
(3) |
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the acquisition of |
|
(4) | Core EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. It also removes the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). |
|
(5) | Free cash flow is calculated as cash flow provided by operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows). |
|
(6) | Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, costs associated with workforce optimization, transformation initiatives and integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. |
|
(7) | Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively. |
|
(8) | Represents line of business profitability/losses, as adjusted. |
|
(9) |
For the three months ended |
|
(10) | Net debt is calculated as cash and cash equivalents less total debt (excluding non-recourse debt). |
|
(11) | Cash represents cash and cash equivalents (excluding restricted cash). |
|
|||||||||||||
OPERATING RESULTS |
|||||||||||||
FOR THREE AND TWELVE MONTHS ENDED |
|||||||||||||
(in thousands, except share and per share data) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
Revenue: |
|
|
|
|
|
|
|
||||||
Net revenue |
$ |
4,975,109 |
|
|
$ |
5,565,853 |
|
$ |
18,776,533 |
|
|
$ |
17,009,501 |
Pass through costs also recognized as revenue |
|
3,219,380 |
|
|
|
2,984,364 |
|
|
12,051,713 |
|
|
|
10,736,535 |
Total revenue |
|
8,194,489 |
|
|
|
8,550,217 |
|
|
30,828,246 |
|
|
|
27,746,036 |
|
|
|
|
|
|
|
|
||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||
Cost of revenue |
|
6,498,820 |
|
|
|
6,584,255 |
|
|
24,239,488 |
|
|
|
21,579,507 |
Operating, administrative and other |
|
1,314,329 |
|
|
|
1,262,960 |
|
|
4,649,460 |
|
|
|
4,074,184 |
Depreciation and amortization |
|
159,561 |
|
|
|
162,144 |
|
|
613,088 |
|
|
|
525,871 |
Asset impairments |
|
21,957 |
|
|
|
— |
|
|
58,713 |
|
|
|
— |
Total costs and expenses |
|
7,994,667 |
|
|
|
8,009,359 |
|
|
29,560,749 |
|
|
|
26,179,562 |
|
|
|
|
|
|
|
|
||||||
Gain on disposition of real estate |
|
43,854 |
|
|
|
51,378 |
|
|
244,418 |
|
|
|
70,993 |
|
|
|
|
|
|
|
|
||||||
Operating income |
|
243,676 |
|
|
|
592,236 |
|
|
1,511,915 |
|
|
|
1,637,467 |
|
|
|
|
|
|
|
|
||||||
Equity (loss) income from unconsolidated subsidiaries |
|
(167,013 |
) |
|
|
159,162 |
|
|
228,998 |
|
|
|
618,697 |
Other income (loss) |
|
1,667 |
|
|
|
181,139 |
|
|
(11,864 |
) |
|
|
203,609 |
Interest expense, net of interest income |
|
17,698 |
|
|
|
15,436 |
|
|
68,999 |
|
|
|
50,352 |
Write-off of financing costs on extinguished debt |
|
— |
|
|
|
— |
|
|
1,860 |
|
|
|
— |
Income before (benefit from) provision for income taxes |
|
60,632 |
|
|
|
917,101 |
|
|
1,658,190 |
|
|
|
2,409,421 |
(Benefit from) provision for income taxes |
|
(25,461 |
) |
|
|
224,227 |
|
|
234,230 |
|
|
|
567,506 |
Net income |
|
86,093 |
|
|
|
692,874 |
|
|
1,423,960 |
|
|
|
1,841,915 |
Less: Net income attributable to non-controlling interests |
|
4,981 |
|
|
|
882 |
|
|
16,590 |
|
|
|
5,341 |
Net income attributable to |
$ |
81,112 |
|
|
$ |
691,992 |
|
$ |
1,407,370 |
|
|
$ |
1,836,574 |
|
|
|
|
|
|
|
|
||||||
Basic income per share: |
|
|
|
|
|
|
|
||||||
Net income per share attributable to |
$ |
0.26 |
|
|
$ |
2.07 |
|
$ |
4.36 |
|
|
$ |
5.48 |
Weighted average shares outstanding for basic income per share |
|
314,248,642 |
|
|
|
334,079,778 |
|
|
322,813,345 |
|
|
|
335,232,840 |
|
|
|
|
|
|
|
|
||||||
Diluted income per share: |
|
|
|
|
|
|
|
||||||
Net income per share attributable to |
$ |
0.25 |
|
|
$ |
2.04 |
|
$ |
4.29 |
|
|
$ |
5.41 |
Weighted average shares outstanding for diluted income per share |
|
319,221,283 |
|
|
|
339,466,153 |
|
|
327,696,115 |
|
|
|
339,717,401 |
|
|
|
|
|
|
|
|
||||||
Core EBITDA |
$ |
667,773 |
|
|
$ |
955,646 |
|
$ |
2,924,264 |
|
|
$ |
2,863,653 |
|
||||||||||||||||||||||||||
SEGMENT RESULTS |
||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED |
||||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Advisory Services |
|
Global Workplace Solutions |
|
Real Estate Investments |
|
Corporate(1) |
|
Total Core |
|
Other |
|
Total Consolidated |
|||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net revenue |
$ |
2,594,591 |
|
|
$ |
2,093,024 |
|
$ |
290,833 |
|
|
$ |
(3,339 |
) |
|
$ |
4,975,109 |
|
|
$ |
— |
|
|
$ |
4,975,109 |
|
Pass through costs also recognized as revenue |
|
18,683 |
|
|
|
3,200,697 |
|
|
— |
|
|
|
— |
|
|
|
3,219,380 |
|
|
|
— |
|
|
|
3,219,380 |
|
Total revenue |
|
2,613,274 |
|
|
|
5,293,721 |
|
|
290,833 |
|
|
|
(3,339 |
) |
|
|
8,194,489 |
|
|
|
— |
|
|
|
8,194,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenue |
|
1,611,896 |
|
|
|
4,770,015 |
|
|
119,856 |
|
|
|
(2,947 |
) |
|
|
6,498,820 |
|
|
|
— |
|
|
|
6,498,820 |
|
Operating, administrative and other |
|
544,557 |
|
|
|
304,362 |
|
|
334,544 |
|
|
|
130,625 |
|
|
|
1,314,088 |
|
|
|
241 |
|
|
|
1,314,329 |
|
Depreciation and amortization |
|
83,653 |
|
|
|
63,080 |
|
|
4,865 |
|
|
|
7,963 |
|
|
|
159,561 |
|
|
|
— |
|
|
|
159,561 |
|
Asset impairments |
|
— |
|
|
|
— |
|
|
21,957 |
|
|
|
— |
|
|
|
21,957 |
|
|
|
— |
|
|
|
21,957 |
|
Total costs and expenses |
|
2,240,106 |
|
|
|
5,137,457 |
|
|
481,222 |
|
|
|
135,641 |
|
|
|
7,994,426 |
|
|
|
241 |
|
|
|
7,994,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gain on disposition of real estate |
|
6 |
|
|
|
— |
|
|
43,848 |
|
|
|
— |
|
|
|
43,854 |
|
|
|
— |
|
|
|
43,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
|
373,174 |
|
|
|
156,264 |
|
|
(146,541 |
) |
|
|
(138,980 |
) |
|
|
243,917 |
|
|
|
(241 |
) |
|
|
243,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity (loss) income from unconsolidated subsidiaries |
|
(113 |
) |
|
|
10 |
|
|
(160 |
) |
|
|
1 |
|
|
|
(262 |
) |
|
|
(166,751 |
) |
|
|
(167,013 |
) |
Other income (loss) |
|
863 |
|
|
|
1,568 |
|
|
322 |
|
|
|
(890 |
) |
|
|
1,863 |
|
|
|
(196 |
) |
|
|
1,667 |
|
Add-back: Depreciation and amortization |
|
83,653 |
|
|
|
63,080 |
|
|
4,865 |
|
|
|
7,963 |
|
|
|
159,561 |
|
|
|
— |
|
|
|
159,561 |
|
Add-back: Asset impairments |
|
— |
|
|
|
— |
|
|
21,957 |
|
|
|
— |
|
|
|
21,957 |
|
|
|
— |
|
|
|
21,957 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Integration and other costs related to acquisitions |
|
— |
|
|
|
16,656 |
|
|
— |
|
|
|
— |
|
|
|
16,656 |
|
|
|
— |
|
|
|
16,656 |
|
Carried interest incentive compensation reversal to align with the timing of associated revenue |
|
— |
|
|
|
— |
|
|
(13,428 |
) |
|
|
— |
|
|
|
(13,428 |
) |
|
|
— |
|
|
|
(13,428 |
) |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
|
— |
|
|
(668 |
) |
|
|
— |
|
|
|
(668 |
) |
|
|
— |
|
|
|
(668 |
) |
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
— |
|
|
— |
|
|
|
633 |
|
|
|
633 |
|
|
|
— |
|
|
|
633 |
|
Costs associated with efficiency and cost-reduction initiatives |
|
42,235 |
|
|
|
21,208 |
|
|
11,883 |
|
|
|
23,281 |
|
|
|
98,607 |
|
|
|
— |
|
|
|
98,607 |
|
Provision associated with Telford’s fire safety remediation efforts |
|
— |
|
|
|
— |
|
|
138,937 |
|
|
|
— |
|
|
|
138,937 |
|
|
|
— |
|
|
|
138,937 |
|
Total segment operating profit (loss) |
$ |
499,812 |
|
|
$ |
258,786 |
|
$ |
17,167 |
|
|
$ |
(107,992 |
) |
|
|
|
$ |
(167,188 |
) |
|
$ |
500,585 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
667,773 |
|
|
|
|
|
_______________
(1) | Includes elimination of inter-segment revenue. |
|
|||||||||||||||||||||||||
SEGMENT RESULTS—(CONTINUED) |
|||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED |
|||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
|||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Advisory Services |
|
Global Workplace Solutions |
|
Real Estate Investments |
|
Corporate(1) |
|
Total Core |
|
Other |
|
Total Consolidated |
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenue |
$ |
3,302,043 |
|
$ |
1,855,377 |
|
$ |
413,392 |
|
|
$ |
(4,959 |
) |
|
$ |
5,565,853 |
|
|
$ |
— |
|
|
$ |
5,565,853 |
|
Pass through costs also recognized as revenue |
|
16,572 |
|
|
2,967,792 |
|
|
— |
|
|
|
— |
|
|
|
2,984,364 |
|
|
|
— |
|
|
|
2,984,364 |
|
Total revenue |
|
3,318,615 |
|
|
4,823,169 |
|
|
413,392 |
|
|
|
(4,959 |
) |
|
|
8,550,217 |
|
|
|
— |
|
|
|
8,550,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of revenue |
|
1,989,491 |
|
|
4,385,584 |
|
|
211,248 |
|
|
|
(2,068 |
) |
|
|
6,584,255 |
|
|
|
— |
|
|
|
6,584,255 |
|
Operating, administrative and other |
|
587,901 |
|
|
260,590 |
|
|
250,817 |
|
|
|
138,890 |
|
|
|
1,238,198 |
|
|
|
24,762 |
|
|
|
1,262,960 |
|
Depreciation and amortization |
|
91,225 |
|
|
57,171 |
|
|
6,541 |
|
|
|
7,207 |
|
|
|
162,144 |
|
|
|
— |
|
|
|
162,144 |
|
Total costs and expenses |
|
2,668,617 |
|
|
4,703,345 |
|
|
468,606 |
|
|
|
144,029 |
|
|
|
7,984,597 |
|
|
|
24,762 |
|
|
|
8,009,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on disposition of real estate |
|
— |
|
|
— |
|
|
51,378 |
|
|
|
— |
|
|
|
51,378 |
|
|
|
— |
|
|
|
51,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
649,998 |
|
|
119,824 |
|
|
(3,836 |
) |
|
|
(148,988 |
) |
|
|
616,998 |
|
|
|
(24,762 |
) |
|
|
592,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity income from unconsolidated subsidiaries |
|
2,312 |
|
|
737 |
|
|
143,795 |
|
|
|
— |
|
|
|
146,844 |
|
|
|
12,318 |
|
|
|
159,162 |
|
Other income (loss) |
|
929 |
|
|
416 |
|
|
143 |
|
|
|
(1,516 |
) |
|
|
(28 |
) |
|
|
181,167 |
|
|
|
181,139 |
|
Add-back: Depreciation and amortization |
|
91,225 |
|
|
57,171 |
|
|
6,541 |
|
|
|
7,207 |
|
|
|
162,144 |
|
|
|
— |
|
|
|
162,144 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
— |
|
|
(6,497 |
) |
|
|
— |
|
|
|
(6,497 |
) |
|
|
— |
|
|
|
(6,497 |
) |
Integration and other costs related to acquisitions |
|
— |
|
|
20,207 |
|
|
— |
|
|
|
— |
|
|
|
20,207 |
|
|
|
— |
|
|
|
20,207 |
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
|
— |
|
|
15,978 |
|
|
|
— |
|
|
|
15,978 |
|
|
|
— |
|
|
|
15,978 |
|
Total segment operating profit (loss) (2) |
$ |
744,464 |
|
$ |
198,355 |
|
$ |
156,124 |
|
|
$ |
(143,297 |
) |
|
|
|
$ |
168,723 |
|
|
$ |
1,124,369 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
955,646 |
|
|
|
|
|
_____________
(1) | Includes elimination of inter-segment revenue. |
|
(2) |
In conjunction with the acquisition of |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands) |
|||||
(Unaudited) |
|||||
|
|
|
|
||
Assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,318,290 |
|
$ |
2,430,951 |
Restricted cash |
|
86,559 |
|
|
108,830 |
Receivables, net |
|
5,326,807 |
|
|
5,150,473 |
Warehouse receivables (1) |
|
455,354 |
|
|
1,303,717 |
Contract assets |
|
529,106 |
|
|
474,375 |
Income taxes receivable |
|
133,438 |
|
|
77,254 |
Property and equipment, net |
|
836,041 |
|
|
816,092 |
Operating lease assets |
|
1,033,011 |
|
|
1,046,377 |
|
|
7,061,088 |
|
|
7,404,602 |
Investments in unconsolidated subsidiaries |
|
1,317,705 |
|
|
1,196,088 |
Other assets, net |
|
2,415,990 |
|
|
2,064,732 |
|
|
|
|
||
Total assets |
$ |
20,513,389 |
|
$ |
22,073,491 |
|
|
|
|
||
Liabilities: |
|
|
|
||
Current liabilities, excluding debt and operating lease liabilities |
$ |
6,915,857 |
|
$ |
6,876,327 |
Warehouse lines of credit (which fund loans that |
|
447,840 |
|
|
1,277,451 |
Revolving credit facility |
|
178,000 |
|
|
— |
Senior term loans, net |
|
— |
|
|
454,539 |
|
|
596,450 |
|
|
595,463 |
|
|
489,262 |
|
|
488,121 |
Other debt |
|
470,706 |
|
|
32,668 |
Operating lease liabilities |
|
1,309,976 |
|
|
1,348,985 |
Other long-term liabilities |
|
1,499,566 |
|
|
1,640,820 |
|
|
|
|
||
Total liabilities |
|
11,907,657 |
|
|
12,714,374 |
|
|
|
|
||
Equity: |
|
|
|
||
|
|
7,853,273 |
|
|
8,528,193 |
Non-controlling interests |
|
752,459 |
|
|
830,924 |
|
|
|
|
||
Total equity |
|
8,605,732 |
|
|
9,359,117 |
|
|
|
|
||
Total liabilities and equity |
$ |
20,513,389 |
|
$ |
22,073,491 |
_______________
(1) | Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
||||||
|
Twelve Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
1,423,960 |
|
|
$ |
1,841,915 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
613,088 |
|
|
|
525,871 |
|
Amortization and write-off of financing costs on extinguished debt |
|
7,741 |
|
|
|
8,315 |
|
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets |
|
(202,507 |
) |
|
|
(142,929 |
) |
Asset impairments |
|
58,713 |
|
|
|
— |
|
Net realized and unrealized losses (gains), primarily from investments |
|
30,482 |
|
|
|
(41,982 |
) |
Provision for doubtful accounts |
|
17,026 |
|
|
|
24,489 |
|
Net compensation expense for equity awards |
|
160,325 |
|
|
|
184,934 |
|
Equity income from unconsolidated subsidiaries |
|
(228,998 |
) |
|
|
(618,697 |
) |
Gain recognized upon deconsolidation of SPAC |
|
— |
|
|
|
(187,456 |
) |
Distribution of earnings from unconsolidated subsidiaries |
|
389,276 |
|
|
|
520,382 |
|
Proceeds from sale of mortgage loans |
|
14,526,920 |
|
|
|
17,194,606 |
|
Origination of mortgage loans |
|
(13,651,807 |
) |
|
|
(17,015,839 |
) |
Decrease in warehouse lines of credit |
|
(829,611 |
) |
|
|
(106,513 |
) |
Tenant concessions received |
|
11,605 |
|
|
|
31,176 |
|
Purchase of equity securities |
|
(28,232 |
) |
|
|
(7,154 |
) |
Proceeds from sale of equity securities |
|
30,360 |
|
|
|
8,709 |
|
Decrease (increase) in real estate under development |
|
94,599 |
|
|
|
(54,658 |
) |
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) |
|
(503,365 |
) |
|
|
(765,959 |
) |
Increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) |
|
64,102 |
|
|
|
104,749 |
|
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing |
|
(1,995 |
) |
|
|
729,703 |
|
(Increase) decrease in net income taxes receivable/payable |
|
(133,244 |
) |
|
|
248,293 |
|
Other operating activities, net |
|
(219,350 |
) |
|
|
(117,777 |
) |
Net cash provided by operating activities |
|
1,629,088 |
|
|
|
2,364,178 |
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(260,140 |
) |
|
|
(209,851 |
) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired |
|
(173,582 |
) |
|
|
(781,489 |
) |
Contributions to unconsolidated subsidiaries |
|
(385,164 |
) |
|
|
(334,544 |
) |
Distributions from unconsolidated subsidiaries |
|
87,170 |
|
|
|
75,853 |
|
Investment in VTS |
|
(100,720 |
) |
|
|
— |
|
Investment in |
|
— |
|
|
|
(220,001 |
) |
Proceeds from sale of marketable securities - special purpose acquisition company trust account |
|
— |
|
|
|
212,722 |
|
Other investing activities, net |
|
(19 |
) |
|
|
(23,587 |
) |
Net cash used in investing activities |
|
(832,455 |
) |
|
|
(1,280,897 |
) |
|
|
|
|
||||
|
Twelve Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from revolving credit facility |
|
1,833,000 |
|
|
|
26,599 |
|
Repayment of revolving credit facility |
|
(1,655,000 |
) |
|
|
— |
|
Proceeds from notes payable on real estate |
|
39,265 |
|
|
|
78,428 |
|
Repayment of notes payable on real estate |
|
(27,723 |
) |
|
|
(109,461 |
) |
Proceeds from issuance of |
|
— |
|
|
|
492,255 |
|
Repurchase of common stock |
|
(1,850,318 |
) |
|
|
(368,603 |
) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) |
|
(34,443 |
) |
|
|
(17,769 |
) |
Units repurchased for payment of taxes on equity awards |
|
(37,932 |
) |
|
|
(38,864 |
) |
Non-controlling interest contributions |
|
2,427 |
|
|
|
862 |
|
Non-controlling interest distributions |
|
(893 |
) |
|
|
(4,572 |
) |
Redemption of non-controlling interest-special purpose acquisition company and payment of deferred underwriting commission |
|
— |
|
|
|
(205,110 |
) |
Repayment of senior term loans |
|
— |
|
|
|
(300,000 |
) |
Other financing activities, net |
|
(34,476 |
) |
|
|
(44,396 |
) |
Net cash used in financing activities |
|
(1,766,093 |
) |
|
|
(490,631 |
) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash |
|
(165,472 |
) |
|
|
(92,116 |
) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(1,134,932 |
) |
|
|
500,534 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF YEAR |
|
2,539,781 |
|
|
|
2,039,247 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF YEAR |
$ |
1,404,849 |
|
|
$ |
2,539,781 |
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
||||
Cash paid during the year for: |
|
|
|
||||
Interest |
$ |
89,223 |
|
|
$ |
41,068 |
|
Income tax payments, net |
|
604,366 |
|
|
|
330,426 |
|
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
||||
Deferred purchase consideration - Turner & Townsend |
$ |
— |
|
|
$ |
485,414 |
|
Non-controlling interest as part of Turner & Townsend Acquisition |
|
— |
|
|
|
774,122 |
|
Investment in alignment shares and private placement warrants of |
|
— |
|
|
|
141,871 |
|
Reduction in redeemable non-controlling interest - special purpose acquisition company |
|
— |
|
|
|
211,501 |
|
Reduction of trust account - special purpose acquisition company |
|
— |
|
|
|
189,801 |
|
|
|
|
|
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under |
||
(i) | Net revenue |
|
(ii) | Core EBITDA |
|
(iii) | Business line operating profit/loss |
|
(iv) | Segment operating profit on revenue and net revenue margins |
|
(v) | Free cash flow |
|
(vi) | Net debt |
|
(vii) |
Core net income attributable to |
|
(viii) | Core EPS |
These measures are not recognized measurements under
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to net revenue, net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company’s overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business.
With respect to Core EBITDA, business line operating profit/loss, and segment operating profit on revenue and net revenue margins, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income tax and the accounting effects of capital spending. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of Core EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The Core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company’s net leverage ratio.
With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments (
Core net income attributable to
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to |
$ |
81,112 |
|
|
$ |
691,992 |
|
|
$ |
1,407,370 |
|
|
$ |
1,836,574 |
|
|
|
|
|
|
|
|
|
||||||||
Plus / minus: |
|
|
|
|
|
|
|
||||||||
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions |
|
45,498 |
|
|
|
33,833 |
|
|
|
166,176 |
|
|
|
86,824 |
|
Integration and other costs related to acquisitions |
|
16,656 |
|
|
|
20,207 |
|
|
|
40,702 |
|
|
|
44,552 |
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(13,428 |
) |
|
|
15,978 |
|
|
|
(4,228 |
) |
|
|
49,941 |
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(668 |
) |
|
|
(6,497 |
) |
|
|
(5,115 |
) |
|
|
(5,725 |
) |
Costs incurred related to legal entity restructuring |
|
633 |
|
|
|
— |
|
|
|
13,447 |
|
|
|
— |
|
Asset impairments |
|
21,957 |
|
|
|
— |
|
|
|
58,713 |
|
|
|
— |
|
Write-off of financing costs on extinguished debt |
|
— |
|
|
|
— |
|
|
|
1,860 |
|
|
|
— |
|
Net fair value adjustments on strategic non-core investments |
|
167,188 |
|
|
|
(12,318 |
) |
|
|
175,153 |
|
|
|
(54,354 |
) |
Net gain on deconsolidation upon merger of the SPAC with and into |
|
— |
|
|
|
(156,405 |
) |
|
|
— |
|
|
|
(156,405 |
) |
Costs associated with efficiency and cost-reduction initiatives |
|
98,607 |
|
|
|
— |
|
|
|
117,534 |
|
|
|
— |
|
Provision associated with Telford’s fire safety remediation efforts |
|
138,937 |
|
|
|
— |
|
|
|
185,921 |
|
|
|
— |
|
Impact of adjustments on non-controlling interest |
|
(14,627 |
) |
|
|
(3,701 |
) |
|
|
(40,124 |
) |
|
|
(3,701 |
) |
Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core investments |
|
(117,458 |
) |
|
|
26,527 |
|
|
|
(254,291 |
) |
|
|
12,294 |
|
Core net income attributable to |
$ |
424,407 |
|
|
$ |
609,616 |
|
|
$ |
1,863,118 |
|
|
$ |
1,810,000 |
|
|
|
|
|
|
|
|
|
||||||||
Core diluted income per share attributable to |
$ |
1.33 |
|
|
$ |
1.80 |
|
|
$ |
5.69 |
|
|
$ |
5.33 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for diluted income per share |
|
319,221,283 |
|
|
|
339,466,153 |
|
|
|
327,696,115 |
|
|
|
339,717,401 |
|
Core EBITDA is calculated as follows (in thousands, totals may not add due to rounding):
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to |
$ |
81,112 |
|
|
$ |
691,992 |
|
|
$ |
1,407,370 |
|
|
$ |
1,836,574 |
|
Net income attributable to non-controlling interests |
|
4,981 |
|
|
|
882 |
|
|
|
16,590 |
|
|
|
5,341 |
|
Net income |
|
86,093 |
|
|
|
692,874 |
|
|
|
1,423,960 |
|
|
|
1,841,915 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
159,561 |
|
|
|
162,144 |
|
|
|
613,088 |
|
|
|
525,871 |
|
Asset impairments |
|
21,957 |
|
|
|
— |
|
|
|
58,713 |
|
|
|
— |
|
Interest expense, net of interest income |
|
17,698 |
|
|
|
15,436 |
|
|
|
68,999 |
|
|
|
50,352 |
|
Write-off of financing costs on extinguished debt |
|
— |
|
|
|
— |
|
|
|
1,860 |
|
|
|
— |
|
(Benefit from) provision for income taxes |
|
(25,461 |
) |
|
|
224,227 |
|
|
|
234,230 |
|
|
|
567,506 |
|
Integration and other costs related to acquisitions |
|
16,656 |
|
|
|
20,207 |
|
|
|
40,702 |
|
|
|
44,552 |
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(13,428 |
) |
|
|
15,978 |
|
|
|
(4,228 |
) |
|
|
49,941 |
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(668 |
) |
|
|
(6,497 |
) |
|
|
(5,115 |
) |
|
|
(5,725 |
) |
Costs incurred related to legal entity restructuring |
|
633 |
|
|
|
— |
|
|
|
13,447 |
|
|
|
— |
|
Costs associated with efficiency and cost-reduction initiatives |
|
98,607 |
|
|
|
— |
|
|
|
117,534 |
|
|
|
— |
|
Provision associated with Telford’s fire safety remediation efforts |
|
138,937 |
|
|
|
— |
|
|
|
185,921 |
|
|
|
— |
|
Net fair value adjustments on strategic non-core investments |
|
167,188 |
|
|
|
(12,318 |
) |
|
|
175,153 |
|
|
|
(54,354 |
) |
Net gain on deconsolidation upon merger of the SPAC with and into |
|
— |
|
|
|
(156,405 |
) |
|
|
— |
|
|
|
(156,405 |
) |
Core EBITDA |
$ |
667,773 |
|
|
$ |
955,646 |
|
|
$ |
2,924,264 |
|
|
$ |
2,863,653 |
|
Revenue includes client reimbursed pass-through costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Reimbursement related to subcontracted vendor work generally has no margin and has been excluded from net revenue. Reconciliations are shown below (dollars in thousands):
|
Three Months Ended |
||||
|
|
2022 |
|
|
2021 |
Property Management Revenue |
|
|
|
||
Revenue |
$ |
474,491 |
|
$ |
455,921 |
Less: Pass through costs also recognized as revenue |
|
18,683 |
|
|
16,572 |
Net revenue |
$ |
455,808 |
|
$ |
439,349 |
|
Three Months Ended |
|||||||
|
GWS (excluding Turner & Townsend) |
|
Turner & Townsend |
|
Total GWS |
|||
GWS Revenue |
|
|
|
|
|
|||
Revenue |
$ |
4,935,630 |
|
$ |
358,091 |
|
$ |
5,293,721 |
Less: Pass through costs also recognized as revenue |
|
3,156,932 |
|
|
43,765 |
|
|
3,200,697 |
Net revenue |
$ |
1,778,698 |
|
$ |
314,326 |
|
$ |
2,093,024 |
|
Three Months Ended |
|||||||
|
GWS (excluding Turner & Townsend) |
|
Turner & Townsend |
|
Total GWS |
|||
GWS Revenue (1) |
|
|
|
|
|
|||
Revenue |
$ |
4,629,406 |
|
$ |
193,763 |
|
$ |
4,823,169 |
Less: Pass through costs also recognized as revenue |
|
2,948,545 |
|
|
19,247 |
|
|
2,967,792 |
Net revenue |
$ |
1,680,861 |
|
$ |
174,516 |
|
$ |
1,855,377 |
_______________
(1) |
Only two months activity for Turner & Townsend presented due to acquisition having occurred on |
|
Three Months Ended |
||||
|
|
2022 |
|
|
2021 |
Facilities Management Revenue |
|
|
|
||
Revenue |
$ |
3,908,441 |
|
$ |
3,771,642 |
Less: Pass through costs also recognized as revenue |
|
2,579,679 |
|
|
2,486,659 |
Net revenue |
$ |
1,328,762 |
|
$ |
1,284,983 |
|
Three Months Ended |
|||||||
|
GWS Project Management (excluding Turner & Townsend) |
|
Turner & Townsend |
|
Total GWS Project Management |
|||
Project Management Revenue |
|
|
|
|
|
|||
Revenue |
$ |
1,027,189 |
|
$ |
358,091 |
|
$ |
1,385,280 |
Less: Pass through costs also recognized as revenue |
|
577,253 |
|
|
43,765 |
|
|
621,018 |
Net revenue |
$ |
449,936 |
|
$ |
314,326 |
|
$ |
764,262 |
|
Three Months Ended |
|||||||
|
GWS Project Management (excluding Turner & Townsend) |
|
Turner & Townsend |
|
Total GWS Project Management |
|||
Project Management Revenue |
|
|
|
|
|
|||
Revenue |
$ |
857,764 |
|
$ |
193,763 |
|
$ |
1,051,527 |
Less: Pass through costs also recognized as revenue |
|
461,885 |
|
|
19,248 |
|
|
481,133 |
Net revenue |
$ |
395,878 |
|
$ |
174,516 |
|
$ |
570,394 |
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in thousands):
|
Three Months Ended |
||||||
Real Estate Investments |
|
2022 |
|
|
|
2021 |
|
Investment management operating profit |
$ |
23,658 |
|
|
$ |
40,823 |
|
Global real estate development operating (loss) profit |
|
(6,146 |
) |
|
|
122,162 |
|
Hana and/or segment overhead operating loss |
|
(345 |
) |
|
|
(6,861 |
) |
Real estate investments segment operating profit |
$ |
17,167 |
|
|
$ |
156,124 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005153/en/
214.863.3100
Brad.Burke@cbre.com
212.984.6535
Steven.Iaco@cbre.com
Source:
FAQ
What were CBRE's earnings results for FY 2022?
How did CBRE perform in Q4 2022?
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