CBRE Group, Inc. Reports Financial Results for Third-Quarter 2024
CBRE Group reported strong financial results for Q3 2024, with GAAP EPS up 20% to $0.73 and Core EPS up 67% to $1.20. Revenue increased 15% while net revenue grew 20%. Global leasing revenue surged 19%, with US leasing up 24%. Global property sales showed first growth in eight quarters, with US sales up 20%. Net cash flow from operations improved to $573 million, with free cash flow up 61% to $494 million. The company increased its full-year Core EPS outlook to $4.95-$5.05. Notable performance included record Q3 office leasing revenue, up 26%, and facilities management net revenue growth of 22%.
CBRE Group ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un EBIT da GAAP in aumento del 20% a $0,73 e EBIT core in aumento del 67% a $1,20. I ricavi sono aumentati del 15%, mentre i ricavi netti sono cresciuti del 20%. I ricavi globali da locazione sono aumentati del 19%, con le locazioni negli Stati Uniti in crescita del 24%. Le vendite globali di immobili hanno mostrato la prima crescita in otto trimestri, con le vendite negli Stati Uniti in aumento del 20%. Il flusso di cassa netto da operazioni è migliorato a $573 milioni, con il flusso di cassa libero in aumento del 61% a $494 milioni. L'azienda ha aumentato le sue previsioni di EPS core per l'intero anno a $4,95-$5,05. Le performance degne di nota includono ricavi record da locazione di uffici nel terzo trimestre, in crescita del 26%, e una crescita dei ricavi netti nella gestione delle strutture del 22%.
CBRE Group reportó resultados financieros sólidos para el tercer trimestre de 2024, con un EPS GAAP en aumento del 20% a $0.73 y EPS Core en aumento del 67% a $1.20. Los ingresos crecieron un 15%, mientras que los ingresos netos aumentaron un 20%. Los ingresos globales por arrendamiento se dispararon un 19%, con arrendamientos en EE. UU. en aumento del 24%. Las ventas globales de propiedades mostraron el primer crecimiento en ocho trimestres, con las ventas en EE. UU. en aumento del 20%. El flujo de caja neto de las operaciones mejoró a $573 millones, con un flujo de caja libre en aumento del 61% a $494 millones. La empresa incrementó su perspectiva de EPS Core para todo el año a $4.95-$5.05. Un rendimiento notable incluyó ingresos récord por arrendamiento de oficinas en el tercer trimestre, un aumento del 26%, y un crecimiento de los ingresos netos en gestión de instalaciones del 22%.
CBRE Group는 2024년 3분기에 강력한 재무 실적을 보고했으며, GAAP EPS가 20% 증가하여 $0.73, Core EPS는 67% 증가하여 $1.20에 달했습니다. 수익은 15% 증가했으며 순수익은 20% 성장했습니다. 글로벌 임대 수익은 19% 급증했고, 미국의 임대는 24% 증가했습니다. 글로벌 부동산 매출은 8분기 만에 처음으로 증가했으며, 미국 매출은 20% 상승했습니다. 운영에서의 순 현금 흐름은 $573백만으로 개선되었고, 자유 현금 흐름은 61% 증가하여 $494백만에 달했습니다. 회사는 연간 Core EPS 전망을 $4.95-$5.05로 상향 조정했습니다. 주목할 만한 성과로는 사무실 임대 수익이 26% 증가하고 시설 관리 순수익이 22% 성장한 기록적인 3분기를 포함합니다.
CBRE Group a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un EPS GAAP en hausse de 20% à 0,73 $ et un EPS core en hausse de 67% à 1,20 $. Le chiffre d'affaires a augmenté de 15%, tandis que le revenu net a crû de 20%. Le revenu locatif mondial a bondi de 19%, avec une hausse de 24% pour la location aux États-Unis. Les ventes de biens immobiliers à l'échelle mondiale ont montré leur première croissance en huit trimestres, avec des ventes aux États-Unis en augmentation de 20%. Le flux de trésorerie net des opérations s'est amélioré à 573 millions de dollars, avec un flux de trésorerie libre en hausse de 61% à 494 millions de dollars. L'entreprise a relevé sa prévision d'EPS core pour l'ensemble de l'année à 4,95 $ - 5,05 $. Parmi les performances notables, on note un chiffre d'affaires locatif de bureaux record au troisième trimestre, en hausse de 26 %, et une croissance de 22 % des revenus nets dans la gestion des installations.
CBRE Group berichtete über starke finanzielle Ergebnisse für das dritte Quartal 2024, mit GAAP EPS, das um 20% auf $0,73 gestiegen ist, und Core EPS, das um 67% auf $1,20 gestiegen ist. Der Umsatz stieg um 15%, während der Nettoumsatz um 20% wuchs. Der globale Mietumsatz stieg um 19%, wobei die Mietpreise in den USA um 24% zunahmen. Der globale Immobilienverkauf zeigte das erste Wachstum in acht Quartalen, mit einem Anstieg der US-Verkäufe um 20%. Der Nettocashflow aus der Geschäftstätigkeit verbesserte sich auf $573 Millionen, und der freie Cashflow stieg um 61% auf $494 Millionen. Das Unternehmen hob seine Prognose für den Core EPS für das gesamte Jahr auf $4,95-$5,05 an. Bemerkenswerte Leistungen umfassten einen Rekordumsatz im Bürovermietungsbereich im dritten Quartal, der um 26% gestiegen ist, und ein Umsatzwachstum im Facility Management von 22%.
- Core EPS increased 67% to $1.20
- Revenue grew 15% and net revenue up 20%
- Free cash flow improved 61% to $494 million
- Global leasing revenue increased 19%
- Property sales revenue grew for first time in eight quarters
- Increased full-year Core EPS guidance to $4.95-$5.05
- Mortgage origination revenue jumped 52%
- Real Estate Development segment reported $8 million operating loss
- Higher insurance costs and increased incentive compensation affecting corporate operating loss
Insights
CBRE delivered exceptional Q3 2024 results with significant growth across key metrics. Core EPS surged 67% to
Notable achievements include the first positive growth in global property sales revenue in eight quarters and substantial improvement in free cash flow, which increased
The increased full-year Core EPS guidance to
The Q3 results reveal important shifts in commercial real estate market dynamics. Office leasing reaching a new third-quarter high with
The expansion of the loan servicing portfolio to
The development pipeline remains robust at
Key Highlights:
-
GAAP EPS up
20% to$0.73 67% to$1.20 -
Revenue up
15% ; net revenue up20% -
Resilient Business(1) net revenue increased
18% , anchored by Turner & Townsend -
Global leasing revenue surged
19% , supported by a24% increase inthe United States -
Global property sales revenue increased for the first time in eight quarters;
20% growth in the United Sates was driven by multifamily and retail assets -
Net cash flow from operations improved to
$573 million $494 million 61% from third-quarter 2023 -
Increased full-year Core EPS outlook to a range of
$4.95 $5.05 $4.70 $4.90
“Our performance in the third quarter was highlighted by our second-highest third quarter core earnings per share in company history, driven by double-digit revenue and profit growth and significant operating leverage in all three business segments. In addition, we achieved operational gains across key parts of our business and continued to advance our strategic positioning,” said Bob Sulentic, chair and chief executive officer of CBRE.
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 2024 |
|
Q3 2023 |
|
USD |
|
LC (2) |
||||||
Operating Results |
|
|
|
|
|
|
|
||||||
Revenue |
$ |
9,036 |
|
$ |
7,868 |
|
14.8 |
% |
|
15.4 |
% |
||
Net revenue (3) |
|
5,318 |
|
|
4,430 |
|
20.0 |
% |
|
20.5 |
% |
||
GAAP net income |
|
225 |
|
|
191 |
|
17.8 |
% |
|
20.9 |
% |
||
GAAP EPS |
|
0.73 |
|
|
0.61 |
|
19.7 |
% |
|
23.0 |
% |
||
Core adjusted net income (4) |
|
369 |
|
|
226 |
|
63.3 |
% |
|
65.5 |
% |
||
Core EBITDA (5) |
|
688 |
|
|
436 |
|
57.8 |
% |
|
58.9 |
% |
||
Core EPS (4) |
|
1.20 |
|
|
0.72 |
|
66.7 |
% |
|
68.1 |
% |
||
|
|
|
|
|
|
|
|
||||||
Cash Flow Results |
|
|
|
|
|
|
|
||||||
Cash flow provided by (used in) operations |
$ |
573 |
|
$ |
383 |
|
49.6 |
% |
|
|
|||
Less: Capital expenditures |
|
79 |
|
|
76 |
|
3.9 |
% |
|
|
|||
Free cash flow (6) |
$ |
494 |
|
$ |
307 |
|
60.9 |
% |
|
|
|||
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 2024 |
|
Q3 2023 |
|
USD |
|
LC |
||||||
Revenue |
$ |
2,395 |
|
|
$ |
2,013 |
|
|
19.0 |
% |
|
19.5 |
% |
Net revenue |
|
2,371 |
|
|
|
1,992 |
|
|
19.0 |
% |
|
19.5 |
% |
Segment operating profit (7) |
|
414 |
|
|
|
277 |
|
|
49.5 |
% |
|
50.2 |
% |
Segment operating profit on revenue margin (8) |
|
17.3 |
% |
|
|
13.8 |
% |
|
3.5 pts |
|
3.5 pts |
||
Segment operating profit on net revenue margin (8) |
|
17.5 |
% |
|
|
13.9 |
% |
|
3.6 pts |
|
3.6 pts |
||
Note: all percent changes cited are vs. third-quarter 2023, except where noted.
Property Leasing
-
Global leasing revenue surged
19% (same local currency), well above expectations. -
Growth was led by
Europe , theMiddle East &Africa (EMEA), with leasing revenue up28% (27% local currency), driven by strong gains in theUnited Kingdom and several Continental European countries. -
The
Americas was also very strong, with leasing revenue up20% (same local currency), including a24% increase inthe United States . -
Asia-Pacific (APAC) leasing revenue rose3% (4% local currency). -
Global office leasing revenue reached a new high for any third quarter, increasing by
26% . Greater certainty about the economic outlook is supporting occupier decision making across primary and secondary markets, particularly inthe United States andEurope .
Capital Markets
-
Global property sales revenue showed year-over-year growth for the first time since second-quarter 2022, rising
14% (15% local currency), better than expected. -
The
Americas paced global activity with sales revenue up18% (19% local currency), led by20% growth inthe United States . -
Higher
U.S. property sales growth was driven by stronger activity in multi-family and retail. -
Sales revenue increased more modestly in EMEA, up
6% (same local currency), and APAC, up5% (up6% local currency). Growth was notably strong inSingapore , reflecting an especially large industrial portfolio sale. -
Mortgage origination revenue jumped
52% (same local currency), as liquidity returned to the real estate investment market. Growth was driven by a36% increase in loan origination fees and higher interest earnings on escrow balances. Origination activity picked up notably with Government-Sponsored Enterprises.
Other Advisory Business Lines
-
Loan servicing revenue edged up
1% (flat local currency). The servicing portfolio increased to more than$435 billion 2% for the quarter and10% from a year ago. -
Property management net revenue increased
22% (23% local currency), with strong growth across geographies, most notably inthe United States , driven by the addition of the Brookfield office portfolio. -
Valuations revenue climbed
9% (same local currency).
Global Workplace Solutions (GWS) Segment
The following table presents highlights of the GWS segment performance (dollars in millions; totals may not add due to rounding):
|
|
|
|
|
% Change |
||||||||
|
Q3 2024 |
|
Q3 2023 |
|
USD |
|
LC |
||||||
Revenue |
$ |
6,346 |
|
|
$ |
5,649 |
|
|
12.3 |
% |
|
13.0 |
% |
Net revenue |
|
2,652 |
|
|
|
2,232 |
|
|
18.8 |
% |
|
19.4 |
% |
Segment operating profit |
|
318 |
|
|
|
251 |
|
|
26.7 |
% |
|
27.5 |
% |
Segment operating profit on revenue margin |
|
5.0 |
% |
|
|
4.4 |
% |
|
0.6 pts |
|
0.6 pts |
||
Segment operating profit on net revenue margin |
|
12.0 |
% |
|
|
11.3 |
% |
|
0.7 pts |
|
0.8 pts |
||
Note: all percent changes cited are vs. third-quarter 2023, except where noted.
-
Facilities management net revenue increased
22% (23% local currency), with broad-based strength in both the Enterprise and Local businesses. -
Project management net revenue rose
12% (13% local currency). Turner & Townsend exhibited strength across its geographies and asset types, with revenue up18% . - Net operating margin improved more than 70 basis points versus third-quarter 2023, reflecting the benefit of cost efficiency efforts.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
|
|
|
|
|
% Change |
||||||||
|
Q3 2024 |
|
Q3 2023 |
|
USD |
|
LC |
||||||
Revenue |
$ |
302 |
|
$ |
210 |
|
43.8 |
% |
|
43.8 |
% |
||
Segment operating profit |
|
67 |
|
|
7 |
|
857.1 |
% |
|
857.1 |
% |
||
Note: all percent changes cited are vs. third-quarter 2023, except where noted.
Investment Management
-
Total revenue surged
43% (same local currency), reflecting higher incentive fees. Asset Management fees also rose modestly. -
Operating profit(9) totaled more than
$75 million $29 million -
Assets Under Management (AUM) totaled
$148.3 billion $5.8 billion
Real Estate Development
-
Global development operating loss(9) narrowed to
$8 million -
The in-process portfolio ended third-quarter 2024 at
$19.0 billion $0.2 billion $0.3 billion $13.4 billion
Core Corporate Segment
-
Core corporate operating loss increased by approximately
$12 million
Capital Allocation Overview
-
Free Cash Flow – During the third quarter of 2024, free cash flow improved significantly to
$494 million $573 million $79 million 71% on a trailing 12-month basis, the fourth consecutive increase. -
Stock Repurchase Program – The company repurchased approximately 0.6 million shares for
$62 million $109.20 $1.4 billion - Acquisitions and Investments – CBRE did not make any significant acquisitions during the third quarter.
Leverage and Financing Overview
- Leverage – CBRE’s net leverage ratio (net debt(11) to trailing twelve-month core EBITDA) was 1.26x as of September 30, 2024, 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 |
|
|
September 30, 2024 |
|
Total debt |
$ |
4,002 |
Less: Cash (12) |
|
1,025 |
Net debt (11) |
$ |
2,977 |
|
|
|
Divided by: Trailing twelve-month Core EBITDA |
$ |
2,354 |
|
|
|
Net leverage ratio |
1.26x |
|
-
Liquidity – As of September 30, 2024, the company had approximately
$4.0 billion $1.0 billion $3.0 billion
Conference Call Details
The company’s third quarter earnings webcast and conference call will be held today, Thursday, October 24, 2024 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in
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 economic outlook, 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, 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 December 31, 2023, our latest quarterly report on Form 10-Q, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
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 SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
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 release 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) |
Net revenue from Resilient Businesses includes facilities management, project management, property management, loan servicing, valuations and asset management fees in the investment management business. Net revenue from Transactional Businesses includes sales, leasing, mortgage origination, carried interest and incentive fees in the investment management business, and development fees. |
|
(2) |
Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results. |
|
(3) |
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. |
|
(4) |
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 (benefit from) 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 and restructuring activities, interest expense related to indirect tax audit/settlement, certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, costs incurred related to legal entity restructuring, write-off of financing costs on extinguished debt, integration and other costs related to acquisitions, asset impairments, costs associated with efficiency and cost-reduction initiatives, charges related to indirect tax audit/settlement and the impact of fair value adjustment related to unconsolidated equity investments. It also removes the fair value changes and related tax impact 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) |
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, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, costs associated with efficiency and cost-reduction initiatives, charges related to indirect tax audit/settlement and the impact of fair value adjustment related to unconsolidated equity investments. 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). |
|
(6) |
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). |
|
(7) |
Segment operating profit (loss) 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, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, costs associated with efficiency and cost-reduction initiatives, charges related to indirect tax audit/settlement and the impact of fair value adjustment related to unconsolidated equity investments. |
|
(8) |
Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively. |
|
(9) |
Represents line of business profitability/losses, as adjusted. |
|
(10) |
For the three months ended September 30, 2024, the company incurred capital expenditures of |
|
(11) |
Net debt is calculated as total debt (excluding non-recourse debt) less cash and cash equivalents. |
|
(12) |
Cash represents cash and cash equivalents (excluding restricted cash). |
CBRE GROUP, INC. OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (in millions, except share and per share data) (Unaudited) |
||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
Revenue: |
|
|
|
|
|
|
|
|||||||
Net revenue |
$ |
5,318 |
|
|
$ |
4,430 |
|
|
$ |
14,734 |
|
|
$ |
13,088 |
Pass-through costs also recognized as revenue |
|
3,718 |
|
|
|
3,438 |
|
|
|
10,629 |
|
|
|
9,911 |
Total revenue |
|
9,036 |
|
|
|
7,868 |
|
|
|
25,363 |
|
|
|
22,999 |
|
|
|
|
|
|
|
|
|||||||
Costs and expenses: |
|
|
|
|
|
|
|
|||||||
Cost of revenue |
|
7,252 |
|
|
|
6,397 |
|
|
|
20,521 |
|
|
|
18,583 |
Operating, administrative and other |
|
1,237 |
|
|
|
1,058 |
|
|
|
3,538 |
|
|
|
3,356 |
Depreciation and amortization |
|
178 |
|
|
|
149 |
|
|
|
497 |
|
|
|
465 |
Total costs and expenses |
|
8,667 |
|
|
|
7,604 |
|
|
|
24,556 |
|
|
|
22,404 |
|
|
|
|
|
|
|
|
|||||||
(Loss) gain on disposition of real estate |
|
(1 |
) |
|
|
5 |
|
|
|
12 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|||||||
Operating income |
|
368 |
|
|
|
269 |
|
|
|
819 |
|
|
|
613 |
|
|
|
|
|
|
|
|
|||||||
Equity (loss) income from unconsolidated subsidiaries |
|
(4 |
) |
|
|
(13 |
) |
|
|
(77 |
) |
|
|
121 |
Other income |
|
12 |
|
|
|
14 |
|
|
|
26 |
|
|
|
22 |
Interest expense, net of interest income |
|
64 |
|
|
|
38 |
|
|
|
163 |
|
|
|
110 |
Income before provision for income taxes |
|
312 |
|
|
|
232 |
|
|
|
605 |
|
|
|
646 |
Provision for income taxes |
|
67 |
|
|
|
31 |
|
|
|
70 |
|
|
|
114 |
Net income |
|
245 |
|
|
|
201 |
|
|
|
535 |
|
|
|
532 |
Less: Net income attributable to non-controlling interests |
|
20 |
|
|
|
10 |
|
|
|
54 |
|
|
|
23 |
Net income attributable to CBRE Group, Inc. |
$ |
225 |
|
|
$ |
191 |
|
|
$ |
481 |
|
|
$ |
509 |
|
|
|
|
|
|
|
|
|||||||
Basic income per share: |
|
|
|
|
|
|
|
|||||||
Net income per share attributable to CBRE Group, Inc. |
$ |
0.73 |
|
|
$ |
0.62 |
|
|
$ |
1.57 |
|
|
$ |
1.64 |
Weighted average shares outstanding for basic income per share |
|
306,253,811 |
|
|
|
307,854,518 |
|
|
|
306,269,264 |
|
|
|
309,716,456 |
|
|
|
|
|
|
|
|
|||||||
Diluted income per share: |
|
|
|
|
|
|
|
|||||||
Net income per share attributable to CBRE Group, Inc. |
$ |
0.73 |
|
|
$ |
0.61 |
|
|
$ |
1.56 |
|
|
$ |
1.62 |
Weighted average shares outstanding for diluted income per share |
|
308,305,013 |
|
|
|
312,221,133 |
|
|
|
308,281,111 |
|
|
|
313,944,855 |
|
|
|
|
|
|
|
|
|||||||
Core EBITDA |
$ |
688 |
|
|
$ |
436 |
|
|
$ |
1,618 |
|
|
$ |
1,472 |
CBRE GROUP, INC. SEGMENT RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (in millions, totals may not add due to rounding) (Unaudited) |
||||||||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
|||||||||||||||||||||||||
|
Advisory Services |
|
Global Workplace Solutions |
|
Real Estate Investments |
|
Corporate (1) |
|
Total Core |
|
Other |
|
Total Consolidated |
|||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net revenue |
$ |
2,371 |
|
$ |
2,652 |
|
|
$ |
302 |
|
|
$ |
(7 |
) |
|
$ |
5,318 |
|
|
$ |
— |
|
|
$ |
5,318 |
|
Pass-through costs also recognized as revenue |
|
24 |
|
|
3,694 |
|
|
|
— |
|
|
|
— |
|
|
|
3,718 |
|
|
|
— |
|
|
|
3,718 |
|
Total revenue |
|
2,395 |
|
|
6,346 |
|
|
|
302 |
|
|
|
(7 |
) |
|
|
9,036 |
|
|
|
— |
|
|
|
9,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenue |
|
1,478 |
|
|
5,716 |
|
|
|
60 |
|
|
|
(2 |
) |
|
|
7,252 |
|
|
|
— |
|
|
|
7,252 |
|
Operating, administrative and other |
|
517 |
|
|
329 |
|
|
|
229 |
|
|
|
162 |
|
|
|
1,237 |
|
|
|
— |
|
|
|
1,237 |
|
Depreciation and amortization |
|
70 |
|
|
90 |
|
|
|
4 |
|
|
|
14 |
|
|
|
178 |
|
|
|
— |
|
|
|
178 |
|
Total costs and expenses |
|
2,065 |
|
|
6,135 |
|
|
|
293 |
|
|
|
174 |
|
|
|
8,667 |
|
|
|
— |
|
|
|
8,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss on disposition of real estate |
|
— |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
|
330 |
|
|
211 |
|
|
|
8 |
|
|
|
(181 |
) |
|
|
368 |
|
|
|
— |
|
|
|
368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
1 |
|
|
(9 |
) |
|
|
14 |
|
|
|
— |
|
|
|
6 |
|
|
|
(10 |
) |
|
|
(4 |
) |
Other income |
|
— |
|
|
1 |
|
|
|
8 |
|
|
|
1 |
|
|
|
10 |
|
|
|
2 |
|
|
|
12 |
|
Add-back: Depreciation and amortization |
|
70 |
|
|
90 |
|
|
|
4 |
|
|
|
14 |
|
|
|
178 |
|
|
|
— |
|
|
|
178 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs associated with efficiency and cost-reduction initiatives |
|
13 |
|
|
11 |
|
|
|
4 |
|
|
|
13 |
|
|
|
41 |
|
|
|
— |
|
|
|
41 |
|
Charges related to indirect tax audit / settlement |
|
— |
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
25 |
|
|
|
— |
|
|
|
25 |
|
Carried interest incentive compensation reversal to align with the timing of associated revenue |
|
— |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
Integration and other costs related to acquisitions |
|
— |
|
|
5 |
|
|
|
— |
|
|
|
17 |
|
|
|
22 |
|
|
|
— |
|
|
|
22 |
|
Provision associated with Telford’s fire safety remediation efforts |
|
— |
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
|
33 |
|
Impact of fair value non-cash adjustments related to unconsolidated equity investments |
|
— |
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total segment operating profit (loss) |
$ |
414 |
|
$ |
318 |
|
|
$ |
67 |
|
|
$ |
(111 |
) |
|
|
|
$ |
(8 |
) |
|
$ |
680 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
688 |
|
|
|
|
|
|||||||||||
_______________
| (1) | Includes elimination of inter-segment revenue. |
CBRE GROUP, INC. SEGMENT RESULTS—(CONTINUED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 (in millions, totals may not add due to rounding) (Unaudited) |
||||||||||||||||||||||||||
|
Three Months Ended September 30, 2023 |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Advisory Services |
|
Global Workplace Solutions |
|
Real Estate Investments |
|
Corporate (1) |
|
Total Core |
|
Other |
|
Total Consolidated |
|||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net revenue |
$ |
1,992 |
|
$ |
2,232 |
|
$ |
210 |
|
|
$ |
(4 |
) |
|
$ |
4,430 |
|
|
$ |
— |
|
|
$ |
4,430 |
|
|
Pass-through costs also recognized as revenue |
|
21 |
|
|
3,417 |
|
|
— |
|
|
|
— |
|
|
|
3,438 |
|
|
|
— |
|
|
|
3,438 |
|
|
Total revenue |
|
2,013 |
|
|
5,649 |
|
|
210 |
|
|
|
(4 |
) |
|
|
7,868 |
|
|
|
— |
|
|
|
7,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenue |
|
1,253 |
|
|
5,104 |
|
|
43 |
|
|
|
(3 |
) |
|
|
6,397 |
|
|
|
— |
|
|
|
6,397 |
|
|
Operating, administrative and other |
|
497 |
|
|
303 |
|
|
153 |
|
|
|
105 |
|
|
|
1,058 |
|
|
|
— |
|
|
|
1,058 |
|
|
Depreciation and amortization |
|
66 |
|
|
66 |
|
|
3 |
|
|
|
14 |
|
|
|
149 |
|
|
|
— |
|
|
|
149 |
|
|
Total costs and expenses |
|
1,816 |
|
|
5,473 |
|
|
199 |
|
|
|
116 |
|
|
|
7,604 |
|
|
|
— |
|
|
|
7,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gain on disposition of real estate |
|
— |
|
|
— |
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
|
197 |
|
|
176 |
|
|
16 |
|
|
|
(120 |
) |
|
|
269 |
|
|
|
— |
|
|
|
269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
1 |
|
|
1 |
|
|
(4 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(11 |
) |
|
|
(13 |
) |
|
Other income (loss) |
|
11 |
|
|
1 |
|
|
— |
|
|
|
3 |
|
|
|
15 |
|
|
|
(1 |
) |
|
|
14 |
|
|
Add-back: Depreciation and amortization |
|
66 |
|
|
66 |
|
|
3 |
|
|
|
14 |
|
|
|
149 |
|
|
|
— |
|
|
|
149 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs associated with efficiency and cost-reduction initiatives |
|
2 |
|
|
2 |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
Integration and other costs related to acquisitions |
|
— |
|
|
5 |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
Carried interest incentive compensation reversal to align with the timing of associated revenue |
|
— |
|
|
— |
|
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
Costs incurred related to legal entity restructuring |
|
— |
|
|
— |
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total segment operating profit (loss) |
$ |
277 |
|
$ |
251 |
|
$ |
7 |
|
|
$ |
(99 |
) |
|
|
|
$ |
(12 |
) |
|
$ |
424 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Core EBITDA |
|
|
|
|
|
|
|
|
$ |
436 |
|
|
|
|
|
|||||||||||
_______________
| (1) | Includes elimination of inter-segment revenue. |
CBRE GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,025 |
|
|
$ |
1,265 |
|
Restricted cash |
|
132 |
|
|
|
106 |
|
Receivables, net |
|
6,705 |
|
|
|
6,370 |
|
Warehouse receivables (1) |
|
1,438 |
|
|
|
675 |
|
Contract assets |
|
496 |
|
|
|
443 |
|
Prepaid expenses |
|
361 |
|
|
|
333 |
|
Income taxes receivable |
|
157 |
|
|
|
159 |
|
Other current assets |
|
302 |
|
|
|
315 |
|
Total Current Assets |
|
10,616 |
|
|
|
9,666 |
|
Property and equipment, net |
|
936 |
|
|
|
907 |
|
Goodwill |
|
5,778 |
|
|
|
5,129 |
|
Other intangible assets, net |
|
2,372 |
|
|
|
2,081 |
|
Operating lease assets |
|
1,122 |
|
|
|
1,030 |
|
Investments in unconsolidated subsidiaries |
|
1,334 |
|
|
|
1,374 |
|
Non-current contract assets |
|
96 |
|
|
|
75 |
|
Real estate under development |
|
457 |
|
|
|
300 |
|
Non-current income taxes receivable |
|
68 |
|
|
|
78 |
|
Deferred tax assets, net |
|
392 |
|
|
|
361 |
|
Other assets, net |
|
1,674 |
|
|
|
1,547 |
|
Total Assets |
$ |
24,845 |
|
|
$ |
22,548 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
3,851 |
|
|
$ |
3,562 |
|
Compensation and employee benefits payable |
|
1,241 |
|
|
|
1,459 |
|
Accrued bonus and profit sharing |
|
1,223 |
|
|
|
1,556 |
|
Operating lease liabilities |
|
229 |
|
|
|
242 |
|
Contract liabilities |
|
329 |
|
|
|
298 |
|
Income taxes payable |
|
75 |
|
|
|
217 |
|
Warehouse lines of credit (which fund loans that |
|
1,422 |
|
|
|
666 |
|
Revolving credit facility |
|
683 |
|
|
|
— |
|
Other short-term borrowings |
|
4 |
|
|
|
16 |
|
Current maturities of long-term debt |
|
38 |
|
|
|
9 |
|
Other current liabilities |
|
335 |
|
|
|
218 |
|
Total Current Liabilities |
|
9,430 |
|
|
|
8,243 |
|
Long-term debt, net of current maturities |
|
3,277 |
|
|
|
2,804 |
|
Non-current operating lease liabilities |
|
1,205 |
|
|
|
1,089 |
|
Non-current income taxes payable |
|
— |
|
|
|
30 |
|
Non-current tax liabilities |
|
155 |
|
|
|
157 |
|
Deferred tax liabilities, net |
|
253 |
|
|
|
255 |
|
Other liabilities |
|
969 |
|
|
|
903 |
|
Total Liabilities |
|
15,289 |
|
|
|
13,481 |
|
Equity: |
|
|
|
||||
CBRE Group, Inc. Stockholders’ Equity: |
|
|
|
||||
Class A common stock |
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
— |
|
|
|
— |
|
Accumulated earnings |
|
9,584 |
|
|
|
9,188 |
|
Accumulated other comprehensive loss |
|
(895 |
) |
|
|
(924 |
) |
Total CBRE Group, Inc. Stockholders’ Equity |
|
8,692 |
|
|
|
8,267 |
|
Non-controlling interests |
|
864 |
|
|
|
800 |
|
Total Equity |
|
9,556 |
|
|
|
9,067 |
|
Total Liabilities and Equity |
$ |
24,845 |
|
|
$ |
22,548 |
|
_______________
| (1) | Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. |
CBRE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) |
|||||||
|
|
||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
535 |
|
|
$ |
532 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
497 |
|
|
|
465 |
|
Amortization of financing costs |
|
5 |
|
|
|
4 |
|
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets |
|
(111 |
) |
|
|
(79 |
) |
Gain on disposition of real estate assets |
|
(12 |
) |
|
|
(18 |
) |
Net realized and unrealized gains, primarily from investments |
|
(10 |
) |
|
|
(4 |
) |
Provision for doubtful accounts |
|
16 |
|
|
|
13 |
|
Net compensation expense for equity awards |
|
112 |
|
|
|
73 |
|
Equity loss (income) from unconsolidated subsidiaries |
|
77 |
|
|
|
(121 |
) |
Distribution of earnings from unconsolidated subsidiaries |
|
43 |
|
|
|
189 |
|
Proceeds from sale of mortgage loans |
|
7,479 |
|
|
|
7,081 |
|
Origination of mortgage loans |
|
(8,212 |
) |
|
|
(7,611 |
) |
Increase in warehouse lines of credit |
|
756 |
|
|
|
546 |
|
Tenant concessions received |
|
21 |
|
|
|
8 |
|
Purchase of equity securities |
|
(56 |
) |
|
|
(11 |
) |
Proceeds from sale of equity securities |
|
80 |
|
|
|
10 |
|
Increase in real estate under development |
|
(6 |
) |
|
|
— |
|
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) |
|
(134 |
) |
|
|
(227 |
) |
Increase (decrease) in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) |
|
68 |
|
|
|
(293 |
) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing |
|
(525 |
) |
|
|
(669 |
) |
Increase in net income taxes receivable/payable |
|
(157 |
) |
|
|
(165 |
) |
Other operating activities, net |
|
(98 |
) |
|
|
(96 |
) |
Net cash provided by (used in) operating activities |
|
368 |
|
|
|
(373 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(214 |
) |
|
|
(211 |
) |
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired |
|
(1,052 |
) |
|
|
(170 |
) |
Contributions to unconsolidated subsidiaries |
|
(110 |
) |
|
|
(105 |
) |
Distributions from unconsolidated subsidiaries |
|
48 |
|
|
|
28 |
|
Acquisition and development of real estate assets |
|
(212 |
) |
|
|
(103 |
) |
Proceeds from disposition of real estate assets |
|
6 |
|
|
|
55 |
|
Other investing activities, net |
|
40 |
|
|
|
(31 |
) |
Net cash used in investing activities |
|
(1,494 |
) |
|
|
(537 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from revolving credit facility |
|
3,213 |
|
|
|
3,836 |
|
Repayment of revolving credit facility |
|
(2,530 |
) |
|
|
(3,341 |
) |
Proceeds from senior term loans |
|
— |
|
|
|
749 |
|
Repayment of senior term loans |
|
— |
|
|
|
(437 |
) |
Proceeds from notes payable on real estate |
|
51 |
|
|
|
60 |
|
Repayment of notes payable on real estate |
|
— |
|
|
|
(39 |
) |
Proceeds from issuance of |
|
495 |
|
|
|
— |
|
Proceeds from issuance of |
|
— |
|
|
|
975 |
|
Repurchase of common stock |
|
(110 |
) |
|
|
(646 |
) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) |
|
(23 |
) |
|
|
(127 |
) |
Units repurchased for payment of taxes on equity awards |
|
(105 |
) |
|
|
(54 |
) |
Non-controlling interest contributions |
|
22 |
|
|
|
2 |
|
Non-controlling interest distributions |
|
(39 |
) |
|
|
(1 |
) |
Other financing activities, net |
|
(47 |
) |
|
|
(71 |
) |
Net cash provided by financing activities |
|
927 |
|
|
|
906 |
|
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash |
|
(15 |
) |
|
|
(48 |
) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(214 |
) |
|
|
(52 |
) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD |
|
1,371 |
|
|
|
1,405 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD |
$ |
1,157 |
|
|
$ |
1,353 |
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
307 |
|
|
$ |
128 |
|
Income tax payments, net |
$ |
351 |
|
|
$ |
383 |
|
Non-cash investing and financing activities: |
|
|
|
||||
Deferred and/or contingent consideration |
$ |
15 |
|
|
$ |
— |
|
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i) |
Resilient Business net revenue |
|
(ii) |
Net revenue |
|
(iii) |
Core EBITDA |
|
(iv) |
Business line operating profit/loss |
|
(v) |
Segment operating profit on revenue and net revenue margins |
|
(vi) |
Free cash flow |
|
(vii) |
Net debt |
|
(viii) |
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”) |
|
(ix) |
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 strategic acquisitions, which would include impairment charges of goodwill and intangibles created from such 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 (Altus Power, Inc. and certain other investments) that are not directly related to our business segments. These can be volatile and are often non-cash in nature.
With respect to Resilient Business net revenue, the company believes that investors may find this measure useful to understand the performance of the portions of our business that hold up well in a down market cycle either because of their non-cyclical characteristics or because they benefit from secular tailwinds.
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data):
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to CBRE Group, Inc. |
$ |
225 |
|
|
$ |
191 |
|
|
$ |
481 |
|
|
$ |
509 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions and restructuring activities |
|
58 |
|
|
|
40 |
|
|
|
146 |
|
|
|
130 |
|
Interest expense related to indirect tax audit / settlement |
|
3 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
Impact of adjustments on non-controlling interest |
|
(6 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
|
|
(27 |
) |
Net fair value adjustments on strategic non-core investments |
|
8 |
|
|
|
12 |
|
|
|
91 |
|
|
|
44 |
|
Costs associated with efficiency and cost-reduction initiatives |
|
41 |
|
|
|
4 |
|
|
|
137 |
|
|
|
145 |
|
Charges related to indirect tax audit / settlement |
|
25 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(4 |
) |
|
|
(8 |
) |
|
|
12 |
|
|
|
(2 |
) |
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
4 |
|
|
|
2 |
|
|
|
4 |
|
Integration and other costs related to acquisitions (1) |
|
22 |
|
|
|
5 |
|
|
|
30 |
|
|
|
60 |
|
Impact of fair value non-cash adjustments related to unconsolidated equity investments |
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Provision associated with Telford’s fire safety remediation efforts |
|
33 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
Tax impact of adjusted items and strategic non-core investments |
|
(45 |
) |
|
|
(14 |
) |
|
|
(119 |
) |
|
|
(89 |
) |
|
|
|
|
|
|
|
|
||||||||
Core net income attributable to CBRE Group, Inc., as adjusted |
$ |
369 |
|
|
$ |
226 |
|
|
$ |
859 |
|
|
$ |
774 |
|
|
|
|
|
|
|
|
|
||||||||
Core diluted income per share attributable to CBRE Group, Inc., as adjusted |
$ |
1.20 |
|
|
$ |
0.72 |
|
|
$ |
2.79 |
|
|
$ |
2.46 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for diluted income per share |
|
308,305,013 |
|
|
|
312,221,133 |
|
|
|
308,281,111 |
|
|
|
313,944,855 |
|
Core EBITDA is calculated as follows (in millions, totals may not add due to rounding):
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to CBRE Group, Inc. |
$ |
225 |
|
|
$ |
191 |
|
|
$ |
481 |
|
$ |
509 |
|
|
Net income attributable to non-controlling interests |
|
20 |
|
|
|
10 |
|
|
|
54 |
|
|
23 |
|
|
Net income |
|
245 |
|
|
|
201 |
|
|
|
535 |
|
|
532 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
178 |
|
|
|
149 |
|
|
|
497 |
|
|
465 |
|
|
Interest expense, net of interest income |
|
64 |
|
|
|
38 |
|
|
|
163 |
|
|
110 |
|
|
Provision for income taxes |
|
67 |
|
|
|
31 |
|
|
|
70 |
|
|
114 |
|
|
Costs associated with efficiency and cost-reduction initiatives |
|
41 |
|
|
|
4 |
|
|
|
137 |
|
|
145 |
|
|
Charges related to indirect tax audit / settlement |
|
25 |
|
|
|
— |
|
|
|
39 |
|
|
— |
|
|
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue |
|
(4 |
) |
|
|
(8 |
) |
|
|
12 |
|
|
(2 |
) |
|
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
4 |
|
|
|
2 |
|
|
4 |
|
|
Integration and other costs related to acquisitions (1) |
|
22 |
|
|
|
5 |
|
|
|
30 |
|
|
60 |
|
|
Impact of fair value non-cash adjustments related to unconsolidated equity investments |
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
— |
|
|
Provision associated with Telford’s fire safety remediation efforts |
|
33 |
|
|
|
— |
|
|
|
33 |
|
|
— |
|
|
Net fair value adjustments on strategic non-core investments |
|
8 |
|
|
|
12 |
|
|
|
91 |
|
|
44 |
|
|
Core EBITDA |
$ |
688 |
|
|
$ |
436 |
|
|
$ |
1,618 |
|
$ |
1,472 |
|
|
_______________
| (1) |
During the first quarter of 2024, we incurred integration and other costs related to acquisitions of |
Core EBITDA for the trailing twelve months ended September 30, 2024 is calculated as follows (in millions):
|
Trailing Twelve Months Ended September 30, 2024 |
||
|
|
||
Net income attributable to CBRE Group, Inc. |
$ |
958 |
|
Net income attributable to non-controlling interests |
|
72 |
|
Net income |
|
1,030 |
|
|
|
||
Adjustments: |
|
||
Depreciation and amortization |
|
653 |
|
Interest expense, net of interest income |
|
203 |
|
Provision for income taxes |
|
206 |
|
Impact of fair value non-cash adjustments related to unconsolidated equity investments |
|
9 |
|
Costs incurred related to legal entity restructuring |
|
10 |
|
Integration and other costs related to acquisitions (1) |
|
33 |
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
6 |
|
Costs associated with efficiency and cost-reduction initiatives |
|
151 |
|
Charges related to indirect tax audit / settlement |
|
38 |
|
Provision associated with Telford’s fire safety remediation efforts |
|
33 |
|
One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired |
|
(34 |
) |
Net fair value adjustments on strategic non-core investments |
|
16 |
|
|
|
||
Core EBITDA |
$ |
2,354 |
|
_______________
| (1) |
During the first quarter of 2024, we incurred integration and other costs related to acquisitions of |
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 millions):
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Consolidated |
|
|
|
||
Revenue |
$ |
9,036 |
|
$ |
7,868 |
Less: Pass-through costs also recognized as revenue |
|
3,718 |
|
|
3,438 |
Net revenue |
$ |
5,318 |
|
$ |
4,430 |
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Property Management Revenue |
|
|
|
||
Revenue |
$ |
567 |
|
$ |
465 |
Less: Pass-through costs also recognized as revenue |
|
24 |
|
|
21 |
Net revenue |
$ |
543 |
|
$ |
444 |
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
GWS Revenue |
|
|
|
||
Revenue |
$ |
6,346 |
|
$ |
5,649 |
Less: Pass-through costs also recognized as revenue |
|
3,694 |
|
|
3,417 |
Net revenue |
$ |
2,652 |
|
$ |
2,232 |
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Facilities Management Revenue |
|
|
|
||
Revenue |
$ |
4,370 |
|
$ |
3,844 |
Less: Pass-through costs also recognized as revenue |
|
2,590 |
|
|
2,389 |
Net revenue |
$ |
1,780 |
|
$ |
1,455 |
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Project Management Revenue |
|
|
|
||
Revenue |
$ |
1,976 |
|
$ |
1,805 |
Less: Pass-through costs also recognized as revenue |
|
1,104 |
|
|
1,028 |
Net revenue |
$ |
872 |
|
$ |
777 |
|
Three Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Net revenue from Resilient Business lines |
|
|
|
||
Revenue |
$ |
7,309 |
|
$ |
6,492 |
Less: Pass-through costs also recognized as revenue |
|
3,718 |
|
|
3,438 |
Net revenue |
$ |
3,591 |
|
$ |
3,054 |
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions):
|
Three Months Ended September 30, |
||||||
Real Estate Investments |
2024 |
|
2023 |
||||
Investment management operating profit |
$ |
75 |
|
|
$ |
29 |
|
Global real estate development operating loss |
|
(8 |
) |
|
|
(22 |
) |
Real estate investments segment operating profit |
$ |
67 |
|
|
$ |
7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024955993/en/
For further information:
Chandni Luthra - Investors
212.984.8113
Chandni.Luthra@cbre.com
Steve Iaco - Media
212.984.6535
Steven.Iaco@cbre.com
Source: CBRE Group, Inc.
FAQ
What was CBRE's earnings per share (EPS) in Q3 2024?
How much did CBRE's global leasing revenue grow in Q3 2024?
What is CBRE's updated Core EPS guidance for full-year 2024?
How much did CBRE's free cash flow improve in Q3 2024?
