CBRE Group, Inc. Reports Financial Results for Third-Quarter 2022
CBRE Group reported Q3 2022 financial results, revealing a 7% increase in GAAP EPS to $1.38, while Core EPS declined by 19% to $1.13. Revenue rose 10.8% to $7.53 billion and net revenue increased 10.8% to $4.62 billion. However, cash flow from operations fell 22.5% to $754 million, leading to a 25.7% decrease in free cash flow. Leasing performed well, with a 14% revenue increase, but capital markets faced challenges, resulting in an 11% drop in global sales revenue. The company maintains strong liquidity with $4.5 billion available as of September 30, 2022.
- GAAP EPS rose 7% to $1.38.
- Revenue increased 10.8% to $7.53 billion.
- Leasing revenue grew 14%, with strong performance in the office sector.
- GWS revenue jumped 16.2% to $4.84 billion.
- Strong liquidity position with $4.5 billion available.
- Core EPS declined by 19% to $1.13.
- Cash flow from operations fell 22.5% to $754 million.
- Free cash flow decreased by 25.7% to $690 million.
- Global sales revenue dropped by 11% compared to the previous year.
-
GAAP EPS Rose
7% to$1.38 -
Core EPS Declined
19% to$1.13
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 |
|||||||||
|
Q3 2022 |
|
Q3 2021 |
|
USD |
|
LC (1) |
|||||||
Operating Results |
|
|
|
|
|
|
|
|||||||
Revenue |
$ |
7,530 |
|
$ |
6,798 |
|
10.8 |
% |
|
15.9 |
% |
|||
Net revenue (2) |
|
4,623 |
|
|
|
4,173 |
|
|
10.8 |
% |
|
15.7 |
% |
|
GAAP net income |
|
447 |
|
|
|
436 |
|
|
2.5 |
% |
|
7.5 |
% |
|
GAAP EPS |
|
1.38 |
|
|
|
1.28 |
|
|
7.4 |
% |
|
12.7 |
% |
|
Core adjusted net income (3) |
|
365 |
|
|
|
471 |
|
|
(22.4 |
)% |
|
(17.1 |
)% |
|
Core EBITDA (4) |
|
606 |
|
|
|
732 |
|
|
(17.3 |
)% |
|
(13.0 |
)% |
|
Core EPS (3) |
|
1.13 |
|
|
|
1.38 |
|
|
(18.7 |
)% |
|
(13.1 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Cash Flow Results |
|
|
|
|
|
|
|
|||||||
Cash flow provided by operations |
$ |
754 |
|
|
$ |
973 |
|
|
(22.5 |
)% |
|
|
||
Less: Capital expenditures |
|
64 |
|
|
|
45 |
|
|
41.4 |
% |
|
|
||
Free cash flow (5) |
$ |
690 |
|
|
$ |
928 |
|
|
(25.7 |
)% |
|
|
||
“Lower third quarter core earnings-per-share reflected a sharp deterioration in the macro environment, particularly with regard to capital availability for transactions,” said
“In contrast with last year’s strong third quarter, the capital markets environment weakened materially after
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 |
|||||||||
|
Q3 2022 |
|
Q3 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
2,434 |
|
|
$ |
2,412 |
|
|
0.9 |
% |
|
5.0 |
% |
|
Net revenue |
|
2,415 |
|
|
|
2,402 |
|
|
0.5 |
% |
|
4.5 |
% |
|
Segment operating profit (6) |
|
424 |
|
|
|
522 |
|
|
(18.8 |
)% |
|
(15.4 |
)% |
|
Segment operating profit on revenue margin (7) |
|
17.4 |
% |
|
|
21.6 |
% |
|
(4.2 pts) |
|
(4.2 pts) |
|||
Segment operating profit on net revenue margin (7) |
|
17.6 |
% |
|
|
21.7 |
% |
|
(4.2 pts) |
|
(4.1 pts) |
|||
Note: all percent changes cited are vs. third-quarter 2021, except where noted.
-
Leasing activity continued to rebound in most global markets with revenue rising
14% (17% local currency). -
The
Americas paced the growth with leasing revenue up19% (same in local currency). -
Significant foreign currency headwinds masked strong growth in overseas markets. Combined EMEA/APAC leasing revenue was flat in
U.S. dollars but rose13% in local currency. Growth was notably strong in Continental Europe. - Global leasing revenue rose across all major property types, led by office.
Capital Markets
-
A constrained capital environment and difficult comparisons with third-quarter 2021 caused global sales revenue to fall
11% (7% local currency). -
Investment activity remained strong in international markets. Combined EMEA/APAC sales revenue rose
3% (17% in local currency), with continued strength in Continental Europe and theUnited Kingdom . -
In the
Americas , sales revenue fell16% (same local currency), with a notable decline in activity in September following relatively flat performance in July and August. - Global sales revenue declined across all major property types, except retail.
-
Most debt capital sources significantly curtailed their lending as the quarter progressed. As a result, global mortgage origination revenue slumped
28% (same local currency).
Other Advisory Business Lines
-
Loan servicing revenue slipped
1% (flat local currency). The servicing portfolio edged up1% from second-quarter 2022 to approximately$350 billion -
Property management net revenue rose
4% (10% local currency). -
Valuation revenue was flat (up
7% local currency).
The following table presents highlights of the GWS segment performance (dollars in millions; totals may not add due to rounding):
|
|
|
|
|
% Change |
|||||||||
|
Q3 2022 |
|
Q3 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
4,844 |
|
|
$ |
4,167 |
|
|
16.2 |
% |
|
21.7 |
% |
|
Net revenue |
|
1,956 |
|
|
|
1,552 |
|
|
26.1 |
% |
|
31.7 |
% |
|
Segment operating profit |
|
219 |
|
|
|
187 |
|
|
17.1 |
% |
|
23.5 |
% |
|
Segment operating profit on revenue margin |
|
4.5 |
% |
|
|
4.5 |
% |
|
— pts |
|
0.1 pts |
|||
Segment operating profit on net revenue margin |
|
11.2 |
% |
|
|
12.1 |
% |
|
(0.9 pts) |
|
(0.8 pts) |
|||
Note: all percent changes cited are vs. third-quarter 2021, except where noted.
-
GWS revenue rose
8% (14% local currency), excluding$325 million 60% interest acquired onNovember 1, 2021 ) revenue. -
Net revenue increased
8% (13% local currency), excluding$284 million - Project management net revenue growth was particularly strong even before the Turner & Townsend contributions, driven by office space redesigns and fit outs.
- Facilities management achieved strong net revenue growth, supported by significant expansion work for existing clients, notably in the technology sector.
- The GWS new business pipeline rose significantly from second-quarter 2022, with a diversified mix of prospects in the energy, financial and professional services, industrial and technology sectors.
-
Excluding contributions from Turner & Townsend, GWS segment operating profit was up
5% in local currency but decreased2% inU.S. dollars.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
|
|
|
|
|
% Change |
|||||||||
|
Q3 2022 |
|
Q3 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
258 |
|
$ |
224 |
|
15.1 |
% |
|
25.8 |
% |
|||
Segment operating profit |
|
59 |
|
|
|
147 |
|
|
(59.5 |
)% |
|
(57.4 |
)% |
|
Note: all percent changes cited are vs. third-quarter 2021, except where noted.
Real Estate Development
-
Operating profit(8) fell by approximately
$82 million $110 million -
The in-process portfolio ended the quarter at
$19.5 billion $0.2 billion -
The development pipeline increased
$2.0 billion $13.5 billion - Industrial and multifamily assets continued to comprise two-thirds of the in-process portfolio.
Investment Management
-
Revenue rose
9% (19% local currency) to$147 million -
Growth was driven by higher asset management fee revenue, up
9% (19% local currency), and incentive fees, up23% (40% local currency). -
Operating profit decreased
12% (4% local currency) to$43.6 million -
Assets Under Management (AUM) decreased by
$3.0 billion $143.9 billion $2.2 billion
Corporate and Other Segment
-
Non-core operating profit increased by
$177.5 million Altus Power, Inc. (NYSE:AMPS). An increase in the share price during the quarter drove the higher valuation of our equity holdings inAltus Power . The company also converted its warrant position into common shares in the quarter afterAltus Power issued a redemption notice for the warrants.
-
Corporate overhead expenses decreased by roughly
$26.5 million
Capital Allocation Overview
-
Free Cash Flow – During the third quarter of 2022, the company’s free cash flow was
$689.6 million $753.9 million $64.3 million $59.4 million -
Stock Repurchase Program – The company repurchased approximately 5.1 million shares for
$408.3 million $80.14 September 30, 2022 , repurchases totaled approximately 16.8 million shares for nearly$1.4 billion $84.03 $2.6 billion September 30, 2022 . -
Acquisitions and Investments – During the third quarter of 2022, CBRE completed three in-fill acquisitions for a total of
$19.2 million $100 million
Leverage and Financing Overview
-
Leverage – CBRE’s net leverage ratio (net debt(11) to trailing twelve-month core EBITDA) was 0.21x as of
September 30, 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 |
$ |
1,798 |
|
|
Less: Cash (12) |
|
1,125 |
|
|
Net debt (11) |
$ |
673 |
|
|
|
|
|||
Divided by: Trailing twelve-month Core EBITDA |
$ |
3,212 |
||
|
|
|||
Net leverage ratio |
0.21x |
|||
-
Liquidity – As of
September 30, 2022 , the company had approximately$4.5 billion $1.1 billion $3.3 billion
Conference Call Details
The company’s third 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 and business outlook. 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 or the outbreak of war, 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 EPS,” “business line operating profit,” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin,” “core EBITDA,” “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.
(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 from 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 (reversal) expense 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. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition. |
(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) |
|
Represents difference between net fair value adjustments, pre-tax, recorded on strategic non-core investments of |
(10) |
|
For the three months ended |
(11) |
|
Net debt is calculated as cash and cash equivalents less total debt (excluding non-recourse debt). |
(12) |
|
Cash represents cash and cash equivalents (excluding restricted cash). |
OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED (in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Net revenue |
$ |
4,622,836 |
|
$ |
4,172,973 |
|
|
13,801,424 |
|
|
11,443,648 |
|||||
Pass through costs also recognized as revenue |
|
2,906,710 |
|
|
|
2,625,354 |
|
|
|
8,832,333 |
|
|
|
7,752,171 |
|
|
Total revenue |
|
7,529,546 |
|
|
|
6,798,327 |
|
|
|
22,633,757 |
|
|
|
19,195,819 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Cost of revenue |
|
5,934,490 |
|
|
|
5,258,947 |
|
|
|
17,740,668 |
|
|
|
14,995,252 |
|
|
Operating, administrative and other |
|
1,080,316 |
|
|
|
1,025,681 |
|
|
|
3,335,131 |
|
|
|
2,811,224 |
|
|
Depreciation and amortization |
|
142,136 |
|
|
|
122,564 |
|
|
|
453,527 |
|
|
|
363,727 |
|
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
36,756 |
|
|
|
— |
|
|
Total costs and expenses |
|
7,156,942 |
|
|
|
6,407,192 |
|
|
|
21,566,082 |
|
|
|
18,170,203 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gain on disposition of real estate |
|
1,746 |
|
|
|
18,530 |
|
|
|
200,564 |
|
|
|
19,615 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
374,350 |
|
|
|
409,665 |
|
|
|
1,268,239 |
|
|
|
1,045,231 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity income from unconsolidated subsidiaries |
|
233,972 |
|
|
|
163,809 |
|
|
|
396,011 |
|
|
|
459,535 |
|
|
Other income (loss) |
|
7,844 |
|
|
|
7,693 |
|
|
|
(13,529 |
) |
|
|
22,470 |
|
|
Interest expense, net of interest income |
|
19,957 |
|
|
|
11,038 |
|
|
|
51,301 |
|
|
|
34,916 |
|
|
Write-off of financing costs on extinguished debt |
|
1,862 |
|
|
|
— |
|
|
|
1,862 |
|
|
|
— |
|
|
Income before provision for income taxes |
|
594,347 |
|
|
|
570,129 |
|
|
|
1,597,558 |
|
|
|
1,492,320 |
|
|
Provision for income taxes |
|
142,667 |
|
|
|
133,507 |
|
|
|
259,691 |
|
|
|
343,279 |
|
|
Net income |
|
451,680 |
|
|
|
436,622 |
|
|
|
1,337,867 |
|
|
|
1,149,041 |
|
|
Less: Net income attributable to non-controlling interests |
|
5,041 |
|
|
|
879 |
|
|
|
11,609 |
|
|
|
4,459 |
|
|
Net income attributable to |
$ |
446,639 |
|
|
$ |
435,743 |
|
|
$ |
1,326,258 |
|
|
$ |
1,144,582 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic income per share: |
|
|
|
|
|
|
|
|||||||||
Net income per share attributable to |
$ |
1.40 |
|
|
$ |
1.30 |
|
|
$ |
4.07 |
|
|
$ |
3.41 |
|
|
Weighted average shares outstanding for basic income per share |
|
319,827,769 |
|
|
|
335,364,942 |
|
|
|
325,705,500 |
|
|
|
335,621,337 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted income per share: |
|
|
|
|
|
|
|
|||||||||
Net income per share attributable to |
$ |
1.38 |
|
|
$ |
1.28 |
|
|
$ |
4.01 |
|
|
$ |
3.37 |
|
|
Weighted average shares outstanding for diluted income per share |
|
324,742,584 |
|
|
|
340,337,159 |
|
|
|
330,558,314 |
|
|
|
339,805,292 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Core EBITDA |
$ |
605,839 |
|
|
$ |
732,437 |
|
|
$ |
2,256,494 |
|
|
$ |
1,908,006 |
|
|
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 |
$ |
2,414,634 |
|
$ |
1,956,196 |
|
$ |
257,738 |
|
$ |
(5,732 |
) |
|
$ |
4,622,836 |
|
$ |
— |
|
$ |
4,622,836 |
|||||||
Pass through costs also recognized as revenue |
|
19,167 |
|
|
|
2,887,543 |
|
|
|
— |
|
|
|
— |
|
|
|
2,906,710 |
|
|
|
— |
|
|
|
2,906,710 |
|
|
Total revenue |
|
2,433,801 |
|
|
|
4,843,739 |
|
|
|
257,738 |
|
|
|
(5,732 |
) |
|
|
7,529,546 |
|
|
|
— |
|
|
|
7,529,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of revenue |
|
1,501,276 |
|
|
|
4,360,311 |
|
|
|
57,967 |
|
|
|
14,936 |
|
|
|
5,934,490 |
|
|
|
— |
|
|
|
5,934,490 |
|
|
Operating, administrative and other |
|
516,270 |
|
|
|
281,783 |
|
|
|
194,480 |
|
|
|
87,756 |
|
|
|
1,080,289 |
|
|
|
27 |
|
|
|
1,080,316 |
|
|
Depreciation and amortization |
|
72,867 |
|
|
|
57,105 |
|
|
|
3,911 |
|
|
|
8,253 |
|
|
|
142,136 |
|
|
|
— |
|
|
|
142,136 |
|
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total costs and expenses |
|
2,090,413 |
|
|
|
4,699,199 |
|
|
|
256,358 |
|
|
|
110,945 |
|
|
|
7,156,915 |
|
|
|
27 |
|
|
|
7,156,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gain on disposition of real estate |
|
21 |
|
|
|
— |
|
|
|
1,725 |
|
|
|
— |
|
|
|
1,746 |
|
|
|
— |
|
|
|
1,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
|
343,409 |
|
|
|
144,540 |
|
|
|
3,105 |
|
|
|
(116,677 |
) |
|
|
374,377 |
|
|
|
(27 |
) |
|
|
374,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Equity income from unconsolidated subsidiaries |
|
3,514 |
|
|
|
645 |
|
|
|
50,300 |
|
|
|
(1 |
) |
|
|
54,458 |
|
|
|
179,514 |
|
|
|
233,972 |
|
|
Other income (loss) |
|
511 |
|
|
|
2,690 |
|
|
|
(493 |
) |
|
|
2,604 |
|
|
|
5,312 |
|
|
|
2,532 |
|
|
|
7,844 |
|
|
Add-back: Depreciation and amortization |
|
72,867 |
|
|
|
57,105 |
|
|
|
3,911 |
|
|
|
8,253 |
|
|
|
142,136 |
|
|
|
— |
|
|
|
142,136 |
|
|
Add-back: Asset impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Integration and other costs related to acquisitions |
|
— |
|
|
|
7,716 |
|
|
|
— |
|
|
|
— |
|
|
|
7,716 |
|
|
|
— |
|
|
|
7,716 |
|
|
Carried interest incentive compensation reversal to align with the timing of associated revenue |
|
— |
|
|
|
— |
|
|
|
(6,161 |
) |
|
|
— |
|
|
|
(6,161 |
) |
|
|
— |
|
|
|
(6,161 |
) |
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
|
— |
|
|
|
(1,300 |
) |
|
|
— |
|
|
|
(1,300 |
) |
|
|
— |
|
|
|
(1,300 |
) |
|
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
893 |
|
|
|
893 |
|
|
|
— |
|
|
|
893 |
|
|
Costs associated with efficiency and cost-reduction initiatives |
|
3,501 |
|
|
|
6,710 |
|
|
|
617 |
|
|
|
8,101 |
|
|
|
18,929 |
|
|
|
— |
|
|
|
18,929 |
|
|
Provision associated with Telford’s fire safety remediation efforts |
|
— |
|
|
|
— |
|
|
|
9,479 |
|
|
|
— |
|
|
|
9,479 |
|
|
|
— |
|
|
|
9,479 |
|
|
Total segment operating profit (loss) |
$ |
423,802 |
|
|
$ |
219,406 |
|
|
$ |
59,458 |
|
|
$ |
(96,827 |
) |
|
|
|
$ |
182,019 |
|
|
$ |
787,858 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
605,839 |
|
|
|
|
|
|||||||||||||
______________
| (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 |
$ |
2,402,141 |
|
$ |
1,551,795 |
|
$ |
223,832 |
|
$ |
(4,795 |
) |
|
$ |
4,172,973 |
|
$ |
— |
|
$ |
4,172,973 |
|||||||
Pass through costs also recognized as revenue |
|
10,006 |
|
|
|
2,615,348 |
|
|
|
— |
|
|
|
— |
|
|
|
2,625,354 |
|
|
|
— |
|
|
|
2,625,354 |
|
|
Total revenue |
|
2,412,147 |
|
|
|
4,167,143 |
|
|
|
223,832 |
|
|
|
(4,795 |
) |
|
|
6,798,327 |
|
|
|
— |
|
|
|
6,798,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of revenue |
|
1,433,315 |
|
|
|
3,788,156 |
|
|
|
40,224 |
|
|
|
(2,748 |
) |
|
|
5,258,947 |
|
|
|
— |
|
|
|
5,258,947 |
|
|
Operating, administrative and other |
|
466,189 |
|
|
|
209,232 |
|
|
|
229,303 |
|
|
|
120,957 |
|
|
|
1,025,681 |
|
|
|
— |
|
|
|
1,025,681 |
|
|
Depreciation and amortization |
|
76,249 |
|
|
|
34,580 |
|
|
|
4,617 |
|
|
|
7,118 |
|
|
|
122,564 |
|
|
|
— |
|
|
|
122,564 |
|
|
Total costs and expenses |
|
1,975,753 |
|
|
|
4,031,968 |
|
|
|
274,144 |
|
|
|
125,327 |
|
|
|
6,407,192 |
|
|
|
— |
|
|
|
6,407,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gain on disposition of real estate |
|
— |
|
|
|
— |
|
|
|
18,530 |
|
|
|
— |
|
|
|
18,530 |
|
|
|
— |
|
|
|
18,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
|
436,394 |
|
|
|
135,175 |
|
|
|
(31,782 |
) |
|
|
(130,122 |
) |
|
|
409,665 |
|
|
|
— |
|
|
|
409,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
19,567 |
|
|
|
749 |
|
|
|
156,479 |
|
|
|
— |
|
|
|
176,795 |
|
|
|
(12,986 |
) |
|
|
163,809 |
|
|
Other (loss) income |
|
(10,531 |
) |
|
|
617 |
|
|
|
447 |
|
|
|
(337 |
) |
|
|
(9,804 |
) |
|
|
17,497 |
|
|
|
7,693 |
|
|
Add-back: Depreciation and amortization |
|
76,249 |
|
|
|
34,580 |
|
|
|
4,617 |
|
|
|
7,118 |
|
|
|
122,564 |
|
|
|
— |
|
|
|
122,564 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
47 |
|
|
Integration and other costs related to acquisitions |
|
— |
|
|
|
16,211 |
|
|
|
— |
|
|
|
— |
|
|
|
16,211 |
|
|
— |
|
|
16,211 |
|
|||
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
|
|
— |
|
|
|
16,959 |
|
|
|
— |
|
|
|
16,959 |
|
|
|
— |
|
|
|
16,959 |
|
|
Total segment operating profit (loss) (2) |
$ |
521,679 |
|
|
$ |
187,332 |
|
|
$ |
146,767 |
|
|
$ |
(123,341 |
) |
|
|
|
$ |
4,511 |
|
|
$ |
736,948 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
732,437 |
|
|
|
|
|
|||||||||||||
______________
| (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 |
$ |
1,125,011 |
|
$ |
2,430,951 |
|||
Restricted cash |
|
98,040 |
|
|
|
108,830 |
|
|
Receivables, net |
|
4,936,146 |
|
|
|
5,150,473 |
|
|
Warehouse receivables (1) |
|
1,190,964 |
|
|
|
1,303,717 |
|
|
Contract assets |
|
504,825 |
|
|
|
474,375 |
|
|
Income taxes receivable |
|
65,560 |
|
|
|
77,254 |
|
|
Property and equipment, net |
|
768,445 |
|
|
|
816,092 |
|
|
Operating lease assets |
|
992,831 |
|
|
|
1,046,377 |
|
|
|
|
6,807,106 |
|
|
|
7,404,602 |
|
|
Investments in unconsolidated subsidiaries |
|
1,461,287 |
|
|
|
1,196,088 |
|
|
Other assets, net |
|
2,265,115 |
|
|
|
2,064,732 |
|
|
|
|
|
|
|||||
Total assets |
$ |
20,215,330 |
|
|
$ |
22,073,491 |
|
|
|
|
|
|
|||||
Liabilities: |
|
|
|
|||||
Current liabilities, excluding debt and operating lease liabilities |
$ |
6,061,207 |
|
|
$ |
6,876,327 |
|
|
Warehouse lines of credit (which fund loans that |
|
1,176,514 |
|
|
|
1,277,451 |
|
|
Revolving credit facility |
|
283,000 |
|
|
|
— |
|
|
Senior term loans, net |
|
391,746 |
|
|
|
454,539 |
|
|
|
|
596,198 |
|
|
|
595,463 |
|
|
|
|
488,985 |
|
|
|
488,121 |
|
|
Other debt |
|
38,411 |
|
|
|
32,668 |
|
|
Operating lease liabilities |
|
1,262,336 |
|
|
|
1,348,985 |
|
|
Other long-term liabilities |
|
1,277,289 |
|
|
|
1,640,820 |
|
|
|
|
|
|
|||||
Total liabilities |
|
11,575,686 |
|
|
|
12,714,374 |
|
|
|
|
|
|
|||||
Equity: |
|
|
|
|||||
|
|
7,935,827 |
|
|
|
8,528,193 |
|
|
Non-controlling interests |
|
703,817 |
|
|
|
830,924 |
|
|
|
|
|
|
|||||
Total equity |
|
8,639,644 |
|
|
|
9,359,117 |
|
|
|
|
|
|
|||||
Total liabilities and equity |
$ |
20,215,330 |
|
|
$ |
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) |
||||||||
|
Nine Months Ended |
|||||||
|
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net income |
$ |
1,337,867 |
|
|
$ |
1,149,041 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
453,527 |
|
|
|
363,727 |
|
|
Amortization of financing costs |
|
6,537 |
|
|
|
5,080 |
|
|
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets |
|
(132,938 |
) |
|
|
(198,131 |
) |
|
Asset impairments |
|
36,756 |
|
|
|
— |
|
|
Net realized and unrealized losses (gains), primarily from investments |
|
29,046 |
|
|
|
(26,898 |
) |
|
Provision for doubtful accounts |
|
11,501 |
|
|
|
24,489 |
|
|
Net compensation expense for equity awards |
|
123,812 |
|
|
|
133,308 |
|
|
Equity income from unconsolidated subsidiaries |
|
(396,011 |
) |
|
|
(459,535 |
) |
|
Distribution of earnings from unconsolidated subsidiaries |
|
369,511 |
|
|
|
382,831 |
|
|
Proceeds from sale of mortgage loans |
|
10,696,971 |
|
|
|
12,767,544 |
|
|
Origination of mortgage loans |
|
(10,559,591 |
) |
|
|
(12,712,118 |
) |
|
Decrease in warehouse lines of credit |
|
(100,937 |
) |
|
|
(192 |
) |
|
Tenant concessions received |
|
9,140 |
|
|
|
18,645 |
|
|
Purchase of equity securities |
|
(15,779 |
) |
|
|
(5,281 |
) |
|
Proceeds from sale of equity securities |
|
27,387 |
|
|
|
6,856 |
|
|
Decrease (increase) in real estate under development |
|
59,116 |
|
|
|
(123,580 |
) |
|
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) |
|
(375,359 |
) |
|
|
(255,161 |
) |
|
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) |
|
(132,424 |
) |
|
|
(107,756 |
) |
|
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing |
|
(375,180 |
) |
|
|
176,413 |
|
|
(Increase) decrease in net income taxes receivable/payable |
|
(129,514 |
) |
|
|
42,100 |
|
|
Other operating activities, net |
|
(128,629 |
) |
|
|
18,739 |
|
|
Net cash provided by operating activities |
|
814,809 |
|
|
|
1,200,121 |
|
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Capital expenditures |
|
(160,996 |
) |
|
|
(121,409 |
) |
|
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired |
|
(60,131 |
) |
|
|
(71,373 |
) |
|
Contributions to unconsolidated subsidiaries |
|
(322,127 |
) |
|
|
(400,967 |
) |
|
Investment in VTS |
|
(100,432 |
) |
|
|
— |
|
|
Distributions from unconsolidated subsidiaries |
|
46,720 |
|
|
|
63,776 |
|
|
Other investing activities, net |
|
(6,783 |
) |
|
|
(25,433 |
) |
|
Net cash used in investing activities |
|
(603,749 |
) |
|
|
(555,406 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Net proceeds from revolving credit facility |
|
283,000 |
|
|
|
— |
|
|
Proceeds from notes payable on real estate |
|
25,904 |
|
|
|
71,157 |
|
|
Repayment of notes payable on real estate |
|
(22,514 |
) |
|
|
(13,944 |
) |
|
Proceeds from issuance of |
|
— |
|
|
|
492,255 |
|
|
Repurchase of common stock |
|
(1,404,394 |
) |
|
|
(188,285 |
) |
|
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) |
|
(31,525 |
) |
|
|
(3,421 |
) |
|
Units repurchased for payment of taxes on equity awards |
|
(35,162 |
) |
|
|
(36,747 |
) |
|
Non-controlling interest contributions |
|
1,293 |
|
|
|
652 |
|
|
Non-controlling interest distributions |
|
(740 |
) |
|
|
(4,026 |
) |
|
Other financing activities, net |
|
(28,583 |
) |
|
|
(42,767 |
) |
|
Net cash (used in) provided by financing activities |
|
(1,212,721 |
) |
|
|
274,874 |
|
|
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash |
|
(315,069 |
) |
|
|
(82,714 |
) |
|
|
|
|
|
|||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(1,316,730 |
) |
|
|
836,875 |
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD |
|
2,539,781 |
|
|
|
2,039,247 |
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD |
$ |
1,223,051 |
|
|
$ |
2,876,122 |
|
|
|
|
|
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|||||
Cash paid during the period for: |
|
|
|
|||||
Interest |
$ |
68,878 |
|
|
$ |
29,131 |
|
|
Income tax payments, net |
$ |
507,557 |
|
|
$ |
220,955 |
|
|
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 |
|
Nine Months Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to |
$ |
446,639 |
|
|
$ |
435,743 |
|
|
$ |
1,326,258 |
|
|
$ |
1,144,582 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Plus / minus: |
|
|
|
|
|
|
|
|||||||||
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions |
|
39,462 |
|
|
|
17,323 |
|
|
|
120,679 |
|
|
|
52,991 |
|
|
Integration and other costs related to acquisitions |
|
7,716 |
|
|
|
16,211 |
|
|
|
24,046 |
|
|
|
24,345 |
|
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(6,161 |
) |
|
|
16,959 |
|
|
|
9,200 |
|
|
|
33,963 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,300 |
) |
|
|
47 |
|
|
|
(4,447 |
) |
|
|
772 |
|
|
Costs incurred related to legal entity restructuring |
|
893 |
|
|
|
— |
|
|
|
12,814 |
|
|
|
— |
|
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
36,756 |
|
|
|
— |
|
|
Write-off of financing costs on extinguished debt |
|
1,862 |
|
|
|
— |
|
|
|
1,862 |
|
|
|
— |
|
|
Net fair value adjustments on strategic non-core investments |
|
(182,019 |
) |
|
|
(4,511 |
) |
|
|
7,964 |
|
|
|
(42,037 |
) |
|
Impact of adjustments on non-controlling interest |
|
(8,208 |
) |
|
|
— |
|
|
|
(25,497 |
) |
|
|
— |
|
|
Costs associated with efficiency and cost-reduction initiatives |
|
18,929 |
|
|
|
— |
|
|
|
18,929 |
|
|
|
— |
|
|
Provision associated with Telford’s fire safety remediation efforts |
|
9,479 |
|
|
|
— |
|
|
|
46,984 |
|
|
|
— |
|
|
Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core investments |
|
38,061 |
|
|
|
(10,982 |
) |
|
|
(136,836 |
) |
|
|
(14,232 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Core net income attributable to |
$ |
365,353 |
|
|
$ |
470,790 |
|
|
$ |
1,438,712 |
|
|
$ |
1,200,384 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Core diluted income per share attributable to |
$ |
1.13 |
|
|
$ |
1.38 |
|
|
$ |
4.35 |
|
|
$ |
3.53 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding for diluted income per share |
|
324,742,584 |
|
|
|
340,337,159 |
|
|
|
330,558,314 |
|
|
|
339,805,292 |
|
|
Core EBITDA is calculated as follows (in thousands, totals may not add due to rounding):
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to |
$ |
446,639 |
|
|
$ |
435,743 |
|
$ |
1,326,258 |
|
|
$ |
1,144,582 |
|||
Net income attributable to non-controlling interests |
|
5,041 |
|
|
|
879 |
|
|
|
11,609 |
|
|
|
4,459 |
|
|
Net income |
|
451,680 |
|
|
|
436,622 |
|
|
|
1,337,867 |
|
|
|
1,149,041 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Add: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
142,136 |
|
|
|
122,564 |
|
|
|
453,527 |
|
|
|
363,727 |
|
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
36,756 |
|
|
|
— |
|
|
Interest expense, net of interest income |
|
19,957 |
|
|
|
11,038 |
|
|
|
51,301 |
|
|
|
34,916 |
|
|
Write-off of financing costs on extinguished debt |
|
1,862 |
|
|
|
— |
|
|
|
1,862 |
|
|
|
— |
|
|
Provision for income taxes |
|
142,667 |
|
|
|
133,507 |
|
|
|
259,691 |
|
|
|
343,279 |
|
|
Integration and other costs related to acquisitions |
|
7,716 |
|
|
|
16,211 |
|
|
|
24,046 |
|
|
|
24,345 |
|
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(6,161 |
) |
|
|
16,959 |
|
|
|
9,200 |
|
|
|
33,963 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,300 |
) |
|
|
47 |
|
|
|
(4,447 |
) |
|
|
772 |
|
|
Costs incurred related to legal entity restructuring |
|
893 |
|
|
|
— |
|
|
|
12,814 |
|
|
|
— |
|
|
Costs associated with efficiency and cost-reduction initiatives |
|
18,929 |
|
|
|
— |
|
|
|
18,929 |
|
|
|
— |
|
|
Provision associated with Telford’s fire safety remediation efforts |
|
9,479 |
|
|
|
— |
|
|
|
46,984 |
|
|
|
— |
|
|
Less: Net fair value adjustments on strategic non-core investments |
|
182,019 |
|
|
|
4,511 |
|
|
|
(7,964 |
) |
|
|
42,037 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Core EBITDA |
$ |
605,839 |
|
|
$ |
732,437 |
|
|
$ |
2,256,494 |
|
|
$ |
1,908,006 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Core EBITDA for the trailing twelve months ended
|
Trailing Twelve Months Ended
|
|||
|
|
|||
Net income attributable to |
$ |
2,018,250 |
||
Net income attributable to non-controlling interests |
|
12,491 |
|
|
Net income |
|
2,030,741 |
|
|
|
|
|||
Add: |
|
|||
Depreciation and amortization |
|
615,671 |
|
|
Asset impairments |
|
36,756 |
|
|
Interest expense, net of interest income |
|
66,737 |
|
|
Write-off of financing costs on extinguished debt |
|
1,862 |
|
|
Provision for income taxes |
|
483,918 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(10,944 |
) |
|
Costs incurred related to legal entity restructuring |
|
12,814 |
|
|
Integration and other costs related to acquisitions |
|
44,253 |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
25,178 |
|
|
Costs associated with efficiency and cost-reduction initiatives |
|
18,929 |
|
|
Provision associated with Telford’s fire safety remediation efforts |
|
46,984 |
|
|
Less: Net fair value adjustments on strategic non-core investments |
|
160,759 |
|
|
|
|
|||
Core EBITDA |
$ |
3,212,140 |
|
|
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 |
$ |
458,292 |
|
$ |
432,658 |
|||
Less: Pass through costs also recognized as revenue |
|
19,167 |
|
|
|
10,006 |
|
|
Net revenue |
$ |
439,125 |
|
|
$ |
422,652 |
|
|
|
Three Months Ended |
|||||||||||
|
GWS (excluding Turner & Townsend) |
|
Turner & Townsend |
|
Total GWS |
|||||||
GWS Revenue |
|
|
|
|
|
|||||||
Revenue |
$ |
4,518,559 |
|
$ |
325,180 |
|
$ |
4,843,739 |
||||
Less: Pass through costs also recognized as revenue |
|
2,846,195 |
|
|
|
41,348 |
|
|
|
2,887,543 |
|
|
Net revenue |
$ |
1,672,364 |
|
|
$ |
283,832 |
|
|
$ |
1,956,196 |
|
|
|
Three Months Ended
|
|||
GWS Revenue (1) |
|
|||
Revenue |
$ |
4,167,143 |
||
Less: Pass through costs also recognized as revenue |
|
2,615,348 |
|
|
Net revenue |
$ |
1,551,795 |
|
|
______________
| (1) |
|
No comparable activity for Turner & Townsend presented due to acquisition having occurred on |
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in thousands):
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
Real Estate Investments |
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Investment management operating profit |
$ |
43,578 |
|
|
$ |
49,516 |
|
|
$ |
163,310 |
|
|
$ |
165,019 |
|
|
Global real estate development operating profit |
|
17,381 |
|
|
|
99,614 |
|
|
|
339,329 |
|
|
|
229,253 |
|
|
Hana and/or segment overhead related loss |
|
(1,501 |
) |
|
|
(2,362 |
) |
|
|
(1,611 |
) |
|
|
(30,395 |
) |
|
Real estate investments segment operating profit |
$ |
59,458 |
|
|
$ |
146,768 |
|
|
$ |
501,028 |
|
|
$ |
363,877 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005264/en/
214.863.3100
Brad.Burke@cbre.com
212.984.6535
Steven.Iaco@cbre.com
Source:
FAQ
What were CBRE's Q3 2022 earnings results?
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