| --- | --- | |-------------------|--------------| | | | | | CBRE | | | | | | | | February 15, 2024 | Q4 2023 CBRE | | | | | | | | | | | Earnings Call | | | | | | | | | | | Q4 2023 EARNINGS CONFERENCE CALL Statements 2024 CBRE, Inc. |3 Bob Sulentic Chair & Chief Executive Officer Chief Financial Officer 2024 CBRE, Inc. | 4 Consolidated CBRE ended 2023 on a high note with fourth quarter year-over-year operating profit growth across all three of our business segments | --- | --- | --- | --- | --- | |--------- ...

CBRE Group, Inc. (CBRE) , the global leader in real estate services, is gearing up to announce its fourth-quarter and full-year 2023 earnings on Feb 15 before the bell. The company has been at the forefront of the industry, offering a wide range of services, including property sales and leasing, property management, valuation, project management and consulting.In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported an earnings surprise of 10.77%. Desp ...

Analysts on Wall Street project that CBRE Group (CBRE) will announce quarterly earnings of $1.21 per share in its forthcoming report, representing a decline of 9% year over year. Revenues are projected to reach $8.62 billion, increasing 5.1% from the same quarter last year.Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over ...

CBRE Group (CBRE) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 15, 2024, might help the stock move higher if these key numbers are better than ...

WASHINGTON--(BUSINESS WIRE)--Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government regulated industries, today announced it has agreed to sell J&J Worldwide Services (“J&J” or the “Company”) to CBRE Group Inc. (NYSE: CBRE). J&J is a leading provider of essential, preventative maintenance activities to the U.S. Federal Government with over 250 hospitals, clinics and military installations and 3,300 employees globally. The purchase price will be u ...

DALLAS--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE:CBRE) today announced a definitive agreement to acquire J&J Worldwide Services, a leading provider of engineering services, base support operations and facilities maintenance for the U.S. federal government, from Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government regulated industries. The initial purchase price is $800 million in cash, plus a potential earn-out of up to $250 million, payable in 2027, subject ...

DALLAS--(BUSINESS WIRE)--CBRE was the top-ranked firm for commercial real estate investment sales in the U.S. during 2023, according to MSCI Real Assets—the 18th consecutive year that CBRE has claimed the top spot. MSCI Real Assets credited CBRE with a 14.2% market share across all property types in the U.S. in 2023, outperforming the next highest competitor by 620 basis points. CBRE’s advantage over the number two firm increased by 100 basis points compared with 2022. In addition to being number one over ...

Segment Operating Profit | --- | --- | |--------------------------------------------------|--------| | | | | Resilient businesses (2) | | | Global Workplace Solutions | 972 | | Other resilient lines of business | 564 | | Total Resilient and non-resilient business lines | $2,523 | $ in millions, totals may not sum due to rounding Q3 2023 EARNINGS CONFERENCE CALL 2023 CBRE, Inc. | 28 $ in millions, totals may not sum due to rounding 2023 CBRE, Inc. | 29 | --- | --- | --- | |----------------------------------- ...

Financial Data and Key Metrics Changes - The company has lowered its expectations for 2023 core EPS to a mid-30% decrease from the previously anticipated 20% to 25% decline, primarily due to interest rate-sensitive businesses [71][98] - The resilient and secularly favored businesses generated over $1.5 billion of SOP over the last 12 months and are expected to represent over 60% of CBRE's SOP for the full year 2023 [73][98] - Full year free cash flow is tracking below prior expectations due to lower earnings and timing-related cash uses, but significant improvement in 2024 free cash flow generation is anticipated [96] Business Line Data and Key Metrics Changes - Advisory Services net revenue fell 17% and SOP declined 35% year-over-year, with property sales revenue decreasing by 38% [74][75] - GWS posted strong results with net revenue and SOP increasing by 14% and 15% respectively, driven by growth in facilities management and project management [77][78] - REI segment SOP totaled just $7 million, reflecting few U.S. development asset sales and lower operating profit in the Investment Management business [86] Market Data and Key Metrics Changes - Leasing revenue declined by 23% in the U.S., with the number of leases completed down only 10%, indicating a cautious market [76] - APAC showed the best relative performance in advisory services with revenue up 3%, led by strong growth in Japan [74] - Economic uncertainty continues to delay occupier decision-making, particularly for large office and industrial deals [75] Company Strategy and Development Direction - The company is focused on co-investments in value-add opportunistic and development strategies, committing over $350 million year-to-date [72] - M&A opportunities are being evaluated across all business lines, with a focus on resilient and cyclically favored areas, while maintaining discipline around pricing [93][104] - The company is committed to reducing costs across its lines of business, targeting $150 million in reductions primarily in transactional areas [96] Management's Comments on Operating Environment and Future Outlook - Management believes the recovery in capital markets will take longer than initially anticipated, now expected in the second half of next year [71][32] - There is significant capital on the sidelines ready to enter commercial real estate once interest rates stabilize and valuations are perceived to have bottomed out [9][32] - The company anticipates that 2023 will be the trough for earnings, with meaningful growth expected in 2024 [99] Other Important Information - The company has committed almost $200 million year-to-date in co-investment capital to support higher return strategies [88] - The GWS pipeline reached a new record, with one-third coming from first-generation outsourcing clients, reflecting increased interest in reducing occupancy costs [84] Q&A Session Summary Question: What are the revenue trends between office versus industrial leasing? - Office leasing is performing in-line with expectations, with a mid-15% decline anticipated, while industrial leasing is slightly below expectations due to large occupiers resetting their space [2][10] Question: What is the outlook for leasing revenues in 2024? - Management does not expect a decline in leasing revenues next year to be greater than this year, with confidence in GWS delivering double-digit growth [10][14] Question: How is the company approaching M&A in the current environment? - The company is looking broadly across its business for M&A opportunities but is being disciplined about pricing due to increased costs of capital and valuation gaps [93][104] Question: What is the impact of economic uncertainty on GWS growth? - Economic slowdowns typically lead companies to focus on cost savings, which can benefit GWS as businesses seek to outsource real estate operations [51][52] Question: How does the company view the macroeconomic environment affecting its outlook? - Management believes that uncertainty around interest rates is a significant factor affecting decision-making and that a recovery in transactions is expected in the second half of next year [31][45]

CBRE Group, Inc. is a Delaware corporation. References to "CBRE," "the company," "we," "us" and "our" refer to CBRE Group, Inc. and include all of its consolidated subsidiaries, unless otherwise indicated or the context requires otherwise. In 2022, we generated revenue from a highly diversified base of clients, including more than 95 of the Fortune 100 companies. We have been an S&P 500 company since 2006 and are currently ranked #135 on the Fortune 500. We have been voted the most recognized commercial rea ...