PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents CBRE Group, Inc.'s unaudited consolidated financial statements for Q2 2025, covering key financial statements and detailed explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$27,693 million** by June 30, 2025, while total liabilities rose to **$18,700 million**, driven by debt and warehouse lines | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $27,693 | $24,383 | | Total Liabilities | $18,700 | $15,191 | | Total Equity | $8,585 | $9,192 | | Cash and cash equivalents | $1,395 | $1,114 | | Receivables, net | $7,319 | $7,005 | | Warehouse receivables | $1,448 | $561 | | Goodwill | $6,410 | $5,621 | | Operating lease assets | $1,986 | $1,198 | | Long-term debt, net | $4,340 | $3,245 | | Warehouse lines of credit | $1,432 | $552 | | Commercial paper program | $1,356 | $175 | | Accumulated earnings | $9,393 | $9,567 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased to **$9,754 million**, with net income attributable to CBRE Group, Inc. at **$215 million**, reflecting strong growth | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenue | $9,754 | $8,391 | $18,663 | $16,326 | | Total costs and expenses | $9,399 | $8,145 | $18,033 | $15,889 | | Operating income | $374 | $246 | $649 | $450 | | Net income | $239 | $142 | $431 | $290 | | Net income attributable to CBRE Group, Inc. | $215 | $130 | $378 | $256 | | Basic income per share | $0.72 | $0.42 | $1.26 | $0.84 | | Diluted income per share | $0.72 | $0.42 | $1.25 | $0.83 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributable to CBRE Group, Inc. increased to **$179 million** for Q2 2025 and **$359 million** for H1 2025, due to higher net income and FX gains | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income | $239 | $142 | $431 | $290 | | Foreign currency translation gain (loss) | $2 | $(26) | $19 | $(115) | | Total other comprehensive (loss) income | $(24) | $(25) | $5 | $(113) | | Comprehensive income | $215 | $117 | $436 | $177 | | Comprehensive income attributable to CBRE Group, Inc. | $179 | $104 | $359 | $149 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash used in operating activities increased to **$489 million**, while investing activities used **$467 million**, and financing provided **$1,160 million** | Metric | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(489) | $(205) | | Net cash used in investing activities | $(467) | $(1,307) | | Net cash provided by financing activities | $1,160 | $1,242 | | Effect of currency exchange rate changes on cash | $107 | $(68) | | NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $311 | $(338) | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | $1,532 | $1,033 | [Consolidated Statements of Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity decreased to **$8,585 million** by June 30, 2025, primarily due to **$669 million** in common stock repurchases and decreased non-controlling interests | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total CBRE Group, Inc. Stockholders' Equity | $8,253 | $8,411 | | Non-controlling interests | $332 | $781 | | Total Equity | $8,585 | $9,192 | | Net income (six months) | $378 | $256 | | Repurchase of common stock (six months) | $(669) | $(48) | | Acquisition of non-controlling interests (six months) | $(362) | $22 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's financial reporting, including significant accounting policies, recent acquisitions, debt structures, fair value measurements, and segment reporting, offering crucial context for the unaudited financial statements [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) Unaudited consolidated financial statements adhere to Form 10-Q rules and U.S. GAAP, based on management estimates, with prior year reclassifications - Financial statements are prepared in accordance with Form **10-Q** rules and U.S. GAAP, requiring management estimates and assumptions[22](index=22&type=chunk) - Certain prior year amounts have been reclassified to conform to the fiscal 2025 presentation[23](index=23&type=chunk) [2. New Accounting Pronouncements](index=10&type=section&id=2.%20New%20Accounting%20Pronouncements) CBRE adopted ASU **2023-09** in Q1 2025 and is evaluating ASU **2024-03** and ASU **2025-03** for future adoption, impacting disclosures and VIE accounting - Adopted ASU **2023-09**, "Improvements to Income Tax Disclosures," prospectively in Q1 2025, requiring disaggregated income tax information[24](index=24&type=chunk) - Evaluating ASU **2024-03**, "Expense Disaggregation Disclosures," effective for fiscal years beginning after December 15, 2026, requiring additional expense category disclosures[25](index=25&type=chunk) - Evaluating ASU **2025-03**, "Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity," effective for fiscal years beginning after December 15, 2026, for business combinations involving VIEs[26](index=26&type=chunk) [3. Acquisitions](index=11&type=section&id=3.%20Acquisitions) CBRE acquired the remaining **60%** of Industrious for **$841 million** in January 2025, resulting in **$571 million** in goodwill, and increased its Turner & Townsend stake to **70%** - Acquired remaining **60%** ownership of Industrious on January 16, 2025, for **$841 million**, increasing ownership to **100%**[28](index=28&type=chunk)[29](index=29&type=chunk) - The Industrious acquisition resulted in **$571 million** in goodwill, largely from synergies in flexible workplace solutions[29](index=29&type=chunk) - Combined project management business with Turner & Townsend in early January 2025, increasing CBRE's controlling interest to **70%**[36](index=36&type=chunk) - A put option granted to Turner & Townsend partners, valued at **$408 million** as of June 30, 2025, has been classified as Mezzanine Equity[37](index=37&type=chunk) [4. Warehouse Receivables & Warehouse Lines of Credit](index=12&type=section&id=4.%20Warehouse%20Receivables%20%26%20Warehouse%20Lines%20of%20Credit) Warehouse receivables significantly increased to **$1,448 million** by June 30, 2025, with total warehouse lines of credit reaching **$3,625 million** in maximum facility size | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Warehouse receivables | $1,448 | $561 | | Total Warehouse Lines of Credit (Maximum Facility Size) | $3,625 | $3,500 | | Total Warehouse Lines of Credit (Carrying Value) | $1,432 | $552 | | Origination of mortgage loans (six months) | $6,646 | $4,408 | | Sale of mortgage loans (six months) | $(5,764) | $(4,129) | - Warehouse receivables are carried at fair value and are under commitment to be purchased by Freddie Mac or Fannie Mae/Ginnie Mae MBS[40](index=40&type=chunk) [5. Variable Interest Entities (VIEs)](index=14&type=section&id=5.%20Variable%20Interest%20Entities%20(VIEs)) Maximum exposure to loss from unconsolidated VIEs decreased to **$216 million** by June 30, 2025, from $242 million at December 31, 2024 | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Maximum exposure to loss | $216 | $242 | | Investments in unconsolidated subsidiaries | $182 | $192 | | Co-investment commitments | $34 | $37 | [6. Goodwill](index=14&type=section&id=6.%20Goodwill) Goodwill increased to **$6,410 million** by June 30, 2025, primarily due to acquisitions like Industrious and foreign exchange movements, partially offset by reallocation | Metric | December 31, 2024 (Millions USD) | June 30, 2025 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance as of December 31, 2024 | $5,621 | - | | Reallocation | - | - | | Acquisitions | $569 | - | | Foreign exchange movement | $220 | - | | Balance as of June 30, 2025 | - | $6,410 | - Goodwill was reallocated due to the reorganization of business into four reportable segments (Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments) as of January 1, 2025[45](index=45&type=chunk) - An interim goodwill impairment test was performed as of January 1, 2025, with no impairment found[45](index=45&type=chunk) [7. Fair Value Measurements](index=15&type=section&id=7.%20Fair%20Value%20Measurements) Total assets at fair value increased to **$1,580 million** by June 30, 2025, while total liabilities at fair value rose to **$399 million**, mainly due to derivative liabilities | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total assets at fair value | $1,580 | $1,223 | | Total liabilities at fair value | $399 | $36 | | Warehouse receivables (Level 2) | $1,448 | $561 | | Derivative assets (Level 2) | $46 | $43 | | Derivative liabilities (Level 2) | $372 | $0 | | Investments in unconsolidated subsidiaries (Level 3) | $24 | $412 | | Contingent consideration (Level 3) | $27 | $36 | - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[52](index=52&type=chunk) - The fair value of warehouse receivables is primarily based on locked-in purchase prices, classified as Level 2[56](index=56&type=chunk) - Investments in unconsolidated subsidiaries at fair value using NAV were **$415 million** at June 30, 2025, and **$378 million** at December 31, 2024, and are excluded from the fair value hierarchy tables[57](index=57&type=chunk) [8. Derivatives and Hedging Activities](index=19&type=section&id=8.%20Derivatives%20and%20Hedging%20Activities) CBRE uses cross-currency swaps to hedge foreign exchange exposure, with derivative assets at **$46 million** and derivative liabilities significantly increasing to **$372 million** by June 30, 2025 | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Derivative Assets | $46 | $43 | | Total Derivative Liabilities | $372 | $0 | | Gross notional amount of fair value hedges | $485 | $346 | | Gross notional amount of net investment hedges | $3,600 | $1,000 | - Losses on fair value hedges for the three and six months ended June 30, 2025, were **$40 million** and **$50 million**, respectively, offset by foreign currency transaction gains on hedged loans[73](index=73&type=chunk) - During Q2 2025, a GBP-denominated subsidiary entered into **£1.9 billion** in cross-currency swap agreements, designated as net investment hedges, to manage EUR exposure[74](index=74&type=chunk) [9. Investments in Unconsolidated Subsidiaries](index=21&type=section&id=9.%20Investments%20in%20Unconsolidated%20Subsidiaries) Total investments in unconsolidated subsidiaries decreased to **$858 million** by June 30, 2025, primarily due to the acquisition of Altus and the remaining **60%** of Industrious | Investment Type | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Real Estate Investments (in projects and funds) | $760 | $702 | | Investment in Altus | $0 | $115 | | Other (including Industrious) | $98 | $478 | | Total investment in unconsolidated subsidiaries | $858 | $1,295 | - Altus was acquired by a third-party on April 16, 2025, eliminating CBRE's investment[78](index=78&type=chunk) - Non-cash asset impairment charges of **$20 million** related to equity method investments were recorded during the three and six months ended June 30, 2025[78](index=78&type=chunk) [10. Long-Term Debt and Short-Term Borrowings](index=22&type=section&id=10.%20Long-Term%20Debt%20and%20Short-Term%20Borrowings) Long-term debt, net, increased to **$4,340 million** by June 30, 2025, and short-term borrowings rose to **$2,794 million**, driven by new senior notes and commercial paper | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total long-term debt, net of current maturities | $4,340 | $3,245 | | Total short-term borrowings | $2,794 | $906 | | Senior term loans due in 2028 | $1,363 | $720 | | **4.800%** senior notes due in 2030 | $600 | $0 | | **5.500%** senior notes due in 2035 | $500 | $0 | | Commercial paper program | $1,356 | $175 | | Revolving credit facilities | $0 | $132 | - Issued **$600 million** of **4.800%** senior notes due 2030 and **$500 million** of **5.500%** senior notes due 2035 on May 12, 2025[88](index=88&type=chunk)[89](index=89&type=chunk) - Redeemed **$600 million** of **4.875%** senior notes due 2026 in full on May 28, 2025, incurring **$2 million** in charges[94](index=94&type=chunk) - Entered into new 5-year (**$3.5 billion**) and 364-day (**$1.0 billion**) senior unsecured Revolving Credit Agreements on June 24, 2025, replacing prior facilities[96](index=96&type=chunk)[101](index=101&type=chunk) - Outstanding borrowings under the commercial paper program increased to **$1.4 billion** at June 30, 2025, from **$175 million** at December 31, 2024[105](index=105&type=chunk) [11. Leases](index=27&type=section&id=11.%20Leases) Operating lease assets significantly increased to **$1,986 million** by June 30, 2025, primarily due to the Industrious acquisition, with total lease liabilities rising to **$2,524 million** | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Operating lease assets | $1,986 | $1,198 | | Financing lease assets (Other assets) | $291 | $260 | | Total leased assets | $2,277 | $1,458 | | Operating lease liabilities (Current) | $282 | $200 | | Non-current operating lease liabilities | $2,053 | $1,307 | | Total lease liabilities | $2,524 | $1,672 | - Right-of-use assets obtained in exchange for new operating lease liabilities totaled **$781 million** for the six months ended June 30, 2025, primarily from the Industrious acquisition[109](index=109&type=chunk) [12. Commitments and Contingencies](index=28&type=section&id=12.%20Commitments%20and%20Contingencies) CBRE faces various commitments and contingencies, including **$43.5 billion** in DUS Program loss sharing, **$292 million** in letters of credit, and **$331 million** in deferred acquisition consideration - CBRE MCI's DUS Program has **$43.5 billion** in loans subject to loss sharing arrangements with Fannie Mae, with **$165 million** in letters of credit and a **$64 million** liability for loan loss guarantee[113](index=113&type=chunk) | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Outstanding letters of credit | $292 | - | | Guarantees | $180 | - | | Outstanding performance and payment bonds | $904 | $808 | | Deferred and contingent consideration | $331 | $292 | | Indirect tax liabilities | $96 | $91 | | Aggregate future commitments related to co-investment funds | $183 | - | | Unfunded capital commitments to consolidated projects | $328 | - | | Unfunded capital commitments to unconsolidated projects | $54 | - | [13. Income Taxes](index=29&type=section&id=13.%20Income%20Taxes) Provision for income taxes increased to **$61 million** for Q2 2025 and **$113 million** for H1 2025, with effective tax rates rising to **20.3%** and **20.8%** respectively | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Provision for income taxes | $61 | $32 | $113 | $3 | | Effective tax rate | **20.3%** | **18.5%** | **20.8%** | **1.1%** | - The effective tax rates differ from the U.S. federal statutory rate of **21.0%** primarily due to U.S. state taxes and favorable permanent book tax differences[125](index=125&type=chunk) - Gross unrecognized tax benefits increased to **$360 million** at June 30, 2025, from **$347 million** at December 31, 2024[128](index=128&type=chunk) - The company is evaluating the impact of the recently signed One Big Beautiful Bill Act (OBBBA) on its financial statements[127](index=127&type=chunk) [14. Income Per Share and Stockholders' Equity](index=30&type=section&id=14.%20Income%20Per%20Share%20and%20Stockholders'%20Equity) Basic and diluted income per share increased for Q2 and H1 2025, with **$663 million** in common stock repurchases for H1 2025, leaving **$5.2 billion** remaining in the program | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic income per share | $0.72 | $0.42 | $1.26 | $0.84 | | Diluted income per share | $0.72 | $0.42 | $1.25 | $0.83 | | Weighted average shares outstanding for basic EPS | 297,950,927 | 306,745,116 | 299,113,472 | 306,276,871 | | Weighted average shares outstanding for diluted EPS | 300,008,422 | 308,035,211 | 301,455,253 | 308,269,040 | - Repurchased **2,123,191** shares for **$256 million** in Q2 2025 and **5,185,163** shares for **$663 million** in H1 2025[132](index=132&type=chunk) - The share repurchase program was authorized for an additional **$5.0 billion** in November 2024, bringing the total to **$9.0 billion**, with **$5.2 billion** remaining capacity as of June 30, 2025[131](index=131&type=chunk)[132](index=132&type=chunk) [15. Revenue from Contracts with Customers](index=31&type=section&id=15.%20Revenue%20from%20Contracts%20with%20Customers) Total revenue for Q2 2025 was **$9,754 million** and for H1 2025 was **$18,663 million**, showing consistent growth across key service lines like Facilities and Project Management | Service Type | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Facilities management | $5,119 | $4,360 | $9,887 | $8,626 | | Project management | $1,786 | $1,563 | $3,417 | $3,082 | | Advisory leasing | $995 | $875 | $1,857 | $1,607 | | Advisory sales | $460 | $384 | $819 | $709 | | Property management | $638 | $492 | $1,221 | $920 | | Total Revenue | $9,754 | $8,391 | $18,663 | $16,326 | - Contract assets totaled **$485 million** (**$382 million** current) at June 30, 2025, slightly down from **$489 million** (**$400 million** current) at December 31, 2024[139](index=139&type=chunk) - Contract liabilities increased to **$420 million** at June 30, 2025, from **$375 million** at December 31, 2024. Revenue of **$148 million** for the six months ended June 30, 2025, was recognized from the December 31, 2024, contract liability balance[140](index=140&type=chunk) [16. Segments](index=33&type=section&id=16.%20Segments) CBRE reorganized into four segments: Advisory Services, BOE, Project Management, and REI, with SOP as the key performance measure, excluding certain non-recurring costs - Reorganized into four reportable segments: Advisory Services, Building Operations & Experience (BOE), Project Management, and Real Estate Investments (REI)[141](index=141&type=chunk)[142](index=142&type=chunk) - BOE segment now includes enterprise and local facilities management, property management, and flexible workplace solutions (following Industrious acquisition)[141](index=141&type=chunk) - Project Management segment formed by combining CBRE's project management business with Turner & Townsend[141](index=141&type=chunk) | Segment | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Advisory Services SOP | $380 | $287 | $681 | $520 | | Building Operations & Experience SOP | $261 | $213 | $477 | $373 | | Project Management SOP | $121 | $102 | $234 | $203 | | Real Estate Investments SOP | $25 | $10 | $50 | $44 | | Total segment operating profit | $660 | $492 | $1,220 | $846 | [17. Telford Fire Safety Remediation](index=36&type=section&id=17.%20Telford%20Fire%20Safety%20Remediation) Estimated liability for Telford Fire Safety Remediation increased to **$212 million** by June 30, 2025, primarily due to exchange rate changes, with costs highly subjective | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Estimated liability | $212 | $204 | | Current portion of liability | $116 | $102 | - The increase in liability is due to changes in exchange rates less actual remediation costs incurred[152](index=152&type=chunk) - Remediation costs are subjective and depend on factors like individual building requirements, completion time, material costs, and regulatory changes[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on CBRE's financial condition, operational results, and liquidity for the three and six months ended June 30, 2025, highlighting market recovery and strategic capital allocation [Business Environment](index=38&type=section&id=Business%20Environment) The commercial real estate market continued its recovery in H1 2025, marked by strong occupier demand, a rebound in sales and financing, and robust demand for services - Commercial real estate market continued to recover in H1 2025[158](index=158&type=chunk) - Strong occupier demand for office space globally, particularly in the U.S[158](index=158&type=chunk) - Real estate sales and financing activity rebounded strongly[158](index=158&type=chunk) - Demand for facilities and project management services remained strong due to outsourcing trends[158](index=158&type=chunk) [Capital Allocation](index=38&type=section&id=Capital%20Allocation) CBRE repurchased **$256 million** in shares during Q2 2025 and **$663 million** through June 30, 2025, while maintaining substantial liquidity for future growth - Repurchased **$256 million** in shares during Q2 2025[159](index=159&type=chunk) - Repurchased **$663 million** in shares through June 30, 2025[159](index=159&type=chunk) - Maintained substantial liquidity to finance future growth[159](index=159&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) CBRE reported strong revenue growth for Q2 and H1 2025, driven by increased leasing, mortgage origination, and property sales, with net income significantly increasing | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total Revenue | $9,754 | $8,391 | $18,663 | $16,326 | | Total adjusted net revenue | $5,668 | $4,971 | $10,780 | $9,415 | | Operating income | $374 | $246 | $649 | $450 | | Net income attributable to CBRE Group, Inc. | $215 | $130 | $378 | $256 | | Core EBITDA | $658 | $505 | $1,198 | $930 | - Revenue increased by **16.2%** for Q2 2025 and **14.3%** for H1 2025, driven by growth in Advisory, BOE, and Project Management segments[162](index=162&type=chunk)[172](index=172&type=chunk) - Foreign currency translation had a **1.1%** positive impact on Q2 revenue and a **0.4%** negative impact on H1 revenue[163](index=163&type=chunk)[173](index=173&type=chunk) - Equity loss from unconsolidated subsidiaries decreased significantly to **$2 million** for H1 2025 from **$73 million** in H1 2024, primarily due to lower unrealized equity losses in the prior period[177](index=177&type=chunk) [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=40&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030,%202024) Consolidated net income for Q2 2025 increased to **$215 million** on **$9.8 billion** revenue, up from $130 million on $8.4 billion, fueled by strong segment performance - Consolidated net income increased by **65.4%** to **$215 million**[161](index=161&type=chunk) - Revenue growth of **16.2%** driven by leasing, commercial mortgage origination, property sales, and BOE segment expansion[162](index=162&type=chunk) - Cost of revenue increased **16.9%** to **81.4%** of total revenue[164](index=164&type=chunk) - Operating, administrative and other expenses increased **7.1%**, but decreased as a percentage of revenue to **13.1%** from **14.2%**[165](index=165&type=chunk) - Provision for income taxes increased to **$61 million** from **$32 million**, with the effective tax rate rising to **20.3%** from **18.5%**[168](index=168&type=chunk) [Legislative Developments](index=40&type=section&id=Legislative%20Developments) OECD Pillar Two Model Rules for a **15%** minimum global effective tax rate are being adopted, and CBRE is evaluating the impact of the U.S. One Big Beautiful Bill Act (OBBBA) - OECD Pillar Two Model Rules for a **15%** minimum global effective tax rate are being adopted by EU member states and other countries[169](index=169&type=chunk) - The U.S. One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, changing federal income tax laws[170](index=170&type=chunk) - CBRE is evaluating the impact of OBBBA on its financial statements and operations[170](index=170&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=41&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030,%202024) Consolidated net income for H1 2025 increased to **$378 million** on **$18.7 billion** revenue, up from $256 million on $16.3 billion, with broad-based revenue growth and improved profitability - Consolidated net income increased by **47.7%** to **$378 million**[171](index=171&type=chunk) - Revenue growth of **14.3%** driven by leasing, commercial mortgage origination, property sales, and BOE and Project Management segments[172](index=172&type=chunk) - Cost of revenue increased **14.6%** to **81.5%** of total revenue[174](index=174&type=chunk) - Operating, administrative and other expenses increased **7.2%**, but decreased as a percentage of revenue to **13.2%** from **14.1%**[175](index=175&type=chunk) - Equity loss decreased to **$2 million** from **$73 million**, primarily due to lower unrealized equity losses in the prior period[177](index=177&type=chunk) - Provision for income taxes increased to **$113 million** from **$3 million**, with the effective tax rate rising to **20.8%** from **1.1%**[179](index=179&type=chunk) [Segment Operations](index=42&type=section&id=Segment%20Operations) CBRE's segment operations reflect a reorganization into Advisory Services, BOE, Project Management, and REI, with most segments showing strong growth, except REI due to lower fees - Reorganized into four reportable segments: Advisory Services, Building Operations & Experience (BOE), Project Management, and Real Estate Investments (REI)[181](index=181&type=chunk) - Advisory Services provides property leasing, capital markets, loan servicing, and valuation[182](index=182&type=chunk) - BOE offers integrated outsourcing services including facilities and property management[182](index=182&type=chunk) - Project Management delivers program, project, and cost consultancy services[182](index=182&type=chunk) - REI is a real assets developer, investor, and operator, comprising investment management and development services[182](index=182&type=chunk) [Advisory Services](index=43&type=section&id=Advisory%20Services) Advisory Services revenue increased by **14.4%** in Q2 2025 and **14.0%** in H1 2025, driven by strong global leasing and property sales, with improved segment operating profit margins | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total segment revenue | $1,996 | $1,744 | $3,690 | $3,238 | | Advisory leasing revenue | $995 | $875 | $1,857 | $1,607 | | Advisory sales revenue | $460 | $384 | $819 | $709 | | Commercial mortgage origination | $127 | $88 | $215 | $147 | | Segment operating profit | $380 | $287 | $681 | $520 | | Segment operating profit on revenue margin | **19.0%** | **16.5%** | **18.5%** | **16.1%** | - Global leasing revenue rose **13.7%** in Q2 2025 and **15.5%** in H1 2025, led by office and industrial sectors[186](index=186&type=chunk)[193](index=193&type=chunk) - Property sales revenue grew **19.8%** in Q2 2025 and **15.5%** in H1 2025[186](index=186&type=chunk)[193](index=193&type=chunk) - MSRs contributed **$32 million** to operating income in Q2 2025 (vs. **$23 million** in Q2 2024) and **$55 million** in H1 2025 (vs. **$36 million** in H1 2024)[191](index=191&type=chunk)[196](index=196&type=chunk) [Building Operations & Experience](index=45&type=section&id=Building%20Operations%20%26%20Experience) Building Operations & Experience (BOE) revenue increased by **18.7%** in Q2 2025 and **16.4%** in H1 2025, driven by management fees, new clients, and acquisitions | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total segment revenue | $5,764 | $4,855 | $11,119 | $9,555 | | Facilities management revenue | $2,010 | $1,752 | $3,876 | $3,354 | | Property management revenue | $620 | $476 | $1,181 | $890 | | Segment operating profit | $261 | $213 | $477 | $373 | | Segment operating profit on revenue margin | **4.5%** | **4.4%** | **4.3%** | **3.9%** | - Revenue growth driven by increased management fees and reimbursements, and impact from acquisitions[199](index=199&type=chunk)[202](index=202&type=chunk) - Cost of revenue increased **18.7%** in Q2 2025 and **16.1%** in H1 2025, primarily due to higher pass-through costs[200](index=200&type=chunk)[204](index=204&type=chunk) - Depreciation and amortization expense increased **8.9%** in Q2 2025 and **28.4%** in H1 2025, reflecting intangibles from recent acquisitions like Industrious[201](index=201&type=chunk)[206](index=206&type=chunk) [Project Management](index=48&type=section&id=Project%20Management) Project Management revenue increased by **14.3%** in Q2 2025 and **10.9%** in H1 2025, driven by strong performance from the legacy Turner & Townsend business | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total segment revenue | $1,786 | $1,563 | $3,417 | $3,082 | | Segment operating profit | $121 | $102 | $234 | $203 | | Segment operating profit on revenue margin | **6.8%** | **6.5%** | **6.8%** | **6.6%** | - Revenue growth attributed to continued strong performance from the legacy Turner & Townsend business[209](index=209&type=chunk)[212](index=212&type=chunk) - Cost of revenue increased **14.9%** in Q2 2025 and **11.2%** in H1 2025, driven by higher pass-through costs and professional compensation[210](index=210&type=chunk)[213](index=213&type=chunk) - Depreciation and amortization expense decreased **7.1%** in Q2 2025 and **8.9%** in H1 2025, due to intangible assets being fully amortized in 2024[211](index=211&type=chunk)[215](index=215&type=chunk) [Real Estate Investments](index=50&type=section&id=Real%20Estate%20Investments) Real Estate Investments (REI) revenue decreased by **7.3%** in Q2 2025 and **2.6%** in H1 2025 due to lower development fees and carried interest, though operating profit increased | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total segment revenue | $215 | $232 | $448 | $460 | | Investment management revenue | $144 | $149 | $299 | $298 | | Development services revenue | $71 | $83 | $149 | $162 | | Segment operating profit | $25 | $10 | $50 | $44 | | Segment operating profit on revenue margin | **11.6%** | **4.3%** | **11.2%** | **9.6%** | - Revenue decrease primarily due to lower development fees from Telford and lower carried interest[217](index=217&type=chunk)[223](index=223&type=chunk) - Gain on disposition of real estate increased by **$19 million** in Q2 2025 and **$6 million** in H1 2025, driven by monetization of real estate development assets[219](index=219&type=chunk)[226](index=226&type=chunk) - Assets Under Management (AUM) increased to **$155.3 billion** at June 30, 2025, from **$146.2 billion** at December 31, 2024, driven by market appreciation and inflows[221](index=221&type=chunk)[228](index=228&type=chunk) [Corporate and Other](index=53&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported an increased operating loss for Q2 and H1 2025 due to higher corporate overhead from acquisitions, though equity income improved significantly | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Operating loss | $(214) | $(170) | $(409) | $(324) | | Equity income (loss) from unconsolidated subsidiaries | $2 | $(22) | $23 | $(93) | | Segment operating loss | $(127) | $(120) | $(222) | $(294) | - Operating, administrative and other expenses for core corporate functions rose **15.7%** in Q2 2025 and **27.7%** in H1 2025, mainly due to acquisition and integration costs[231](index=231&type=chunk)[233](index=233&type=chunk) - Equity income of **$2 million** in Q2 2025 (vs. **$22 million** loss in Q2 2024) and **$23 million** in H1 2025 (vs. **$93 million** loss in H1 2024) reflects the higher value of the Altus investment, which was acquired on April 16, 2025[232](index=232&type=chunk)[234](index=234&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) CBRE maintains strong liquidity with **$1.4 billion** in cash and **$3.3 billion** available under revolving credit facilities, expecting to meet funding needs - As of June 30, 2025, CBRE had **$1.4 billion** in cash and cash equivalents and **$3.3 billion** available under revolving credit facilities[236](index=236&type=chunk) - Anticipated capital expenditures for 2025 are up to **$363 million**[236](index=236&type=chunk) - Aggregate future commitments include **$183 million** for co-investment funds and **$382 million** for consolidated and unconsolidated development projects[236](index=236&type=chunk) - Issued **$1.1 billion** in new senior notes in May 2025, partially used to redeem **$600 million** of existing notes[238](index=238&type=chunk) - Accrued deferred purchase consideration for acquisitions totaled **$331 million** at June 30, 2025[241](index=241&type=chunk) [Historical Cash Flows](index=55&type=section&id=Historical%20Cash%20Flows) Net cash used in operating activities increased to **$489 million** for H1 2025, while investing activities used **$467 million**, and financing activities provided **$1,160 million** - Net cash used in operating activities increased to **$489 million** for H1 2025, from **$205 million** in H1 2024, driven by working capital movements[245](index=245&type=chunk) - Net cash used in investing activities decreased by **$840 million** to **$467 million** for H1 2025, primarily due to lower cash outflows from acquisitions (e.g., Industrious vs. J&J Worldwide Services)[246](index=246&type=chunk) - Net cash provided by financing activities decreased to **$1,160 million** for H1 2025, from **$1,242 million** in H1 2024, due to increased common stock repurchases offset by net proceeds from commercial paper and new debt[247](index=247&type=chunk) [Indebtedness](index=56&type=section&id=Indebtedness) CBRE manages indebtedness through fixed and variable rate debt, with long-term debt increasing due to new senior notes and incremental term loans, and short-term borrowings rising - Entered into a new 5-year senior unsecured Credit Agreement on July 10, 2023, refinancing previous debt[249](index=249&type=chunk) - Incurred incremental term loans of **€425 million** and **$125 million** in March 2025, used for working capital and general corporate purposes[250](index=250&type=chunk) - Issued **$600 million** of **4.800%** senior notes due 2030 and **$500 million** of **5.500%** senior notes due 2035 on May 12, 2025[252](index=252&type=chunk)[253](index=253&type=chunk) - Redeemed **$600 million** of **4.875%** senior notes due 2026 on May 28, 2025, using proceeds from new note offerings[257](index=257&type=chunk) - Established a commercial paper program in December 2024, with **$1.4 billion** outstanding at June 30, 2025[266](index=266&type=chunk) - Entered new 5-year (**$3.5 billion**) and 364-day (**$1.0 billion**) revolving credit agreements on June 24, 2025, with no amounts outstanding as of June 30, 2025[261](index=261&type=chunk)[264](index=264&type=chunk) [Of –Balance Sheet Arrangements](index=59&type=section&id=Of%20%E2%80%93Balance%20Sheet%20Arrangements) CBRE has no material off-balance sheet arrangements expected to impact its financial condition, liquidity, or results of operations, with details referenced in Note 12 - No material off-balance sheet arrangements are expected to impact financial condition, liquidity, or results of operations[270](index=270&type=chunk) - Off-balance sheet arrangements are described in Note 12 – Commitments and Contingencies[270](index=270&type=chunk) [Critical Accounting Policies and Estimates](index=59&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) CBRE's critical accounting policies and estimates remain consistent with the 2024 Annual Report, with no material changes as of June 30, 2025 - No material changes to critical accounting policies and estimates as of June 30, 2025[271](index=271&type=chunk) - Critical accounting policies include revenue recognition, business combinations, goodwill and other intangible assets, income taxes, contingencies, and investments in unconsolidated subsidiaries – fair value option[271](index=271&type=chunk) [New Accounting Pronouncements](index=59&type=section&id=New%20Accounting%20Pronouncements) Information regarding new accounting pronouncements is detailed in Note 2 of the Notes to Consolidated Financial Statements - Refer to Note 2 – New Accounting Pronouncements for details on recently adopted and pending accounting pronouncements[272](index=272&type=chunk) [Non-GAAP Financial Measures](index=60&type=section&id=Non-GAAP%20Financial%20Measures) CBRE uses non-GAAP measures like adjusted net revenue and Core EBITDA to evaluate operating performance and enhance comparability, excluding certain costs - Non-GAAP measures include adjusted net revenue, segment operating profit on revenue margin, segment operating profit on adjusted net revenue margin, and Core EBITDA[273](index=273&type=chunk) - These measures are used to evaluate operating performance, enhance comparability, and eliminate the impact of selected costs and charges[273](index=273&type=chunk) - Core EBITDA is adjusted for items like depreciation, amortization, interest, taxes, acquisition costs, carried interest, tax audit charges, business wind-down results, fair value adjustments, and transformation costs[275](index=275&type=chunk)[277](index=277&type=chunk) | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income attributable to CBRE Group, Inc. | $215 | $130 | $378 | $256 | | Net income | $239 | $142 | $431 | $290 | | Core EBITDA | $658 | $505 | $1,198 | $930 | [Cautionary Note on Forward-Looking Statements](index=62&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) This section warns that the report contains forward-looking statements subject to uncertainties and factors that could cause actual results to differ materially - Report contains forward-looking statements based on management's expectations and beliefs, subject to uncertainties[280](index=280&type=chunk)[281](index=281&type=chunk) - Factors that may cause actual results to differ include economic, political, and regulatory conditions, market volatility, competition, and acquisition integration challenges[282](index=282&type=chunk) - CBRE assumes no obligation to update forward-looking statements, except as required by law[283](index=283&type=chunk) - Investors should not place undue reliance on forward-looking statements[283](index=283&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) CBRE's primary market risks are foreign currency exchange rate fluctuations and changes in interest rates on debt, managed through funding strategies and derivatives - Primary market risks are foreign currency exchange rate fluctuations and changes in interest rates on debt obligations[287](index=287&type=chunk) - Risk management involves managing debt funding and using derivative financial instruments, not for trading or speculative purposes[287](index=287&type=chunk) [International Operations](index=65&type=section&id=International%20Operations) Approximately **43.3%** of Q2 2025 revenue was in foreign currencies, exposing CBRE to exchange rate fluctuations, with a hypothetical **10%** USD increase impacting pre-tax income - Approximately **43.3%** of Q2 2025 revenue and **42.7%** of H1 2025 revenue was transacted in foreign currencies[291](index=291&type=chunk) | Currency | Three Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | | :---------------- | :---------------------------------------------- | :--------------------------------------------- | | United States dollar | $5,529 | $10,699 | | British pound sterling | $1,386 | $2,620 | | Euro | $908 | $1,674 | | Canadian dollar | $278 | $529 | | Indian rupee | $222 | $436 | | Australian dollar | $228 | $410 | | Japanese yen | $136 | $261 | | Swiss franc | $111 | $223 | | Chinese yuan | $113 | $219 | | Singapore dollar | $104 | $205 | | Other currencies | $739 | $1,387 | | Total revenue | $9,754 | $18,663 | - A hypothetical **10%** increase in USD value relative to GBP would decrease pre-tax income by **$1 million** for H1 2025[292](index=292&type=chunk) - A hypothetical **10%** increase in USD value relative to EUR would increase pre-tax income by **$10 million** for H1 2025[292](index=292&type=chunk) [Interest Rates](index=66&type=section&id=Interest%20Rates) CBRE manages interest rate risk using fixed and variable rate debt and interest rate swaps, with a hypothetical **100 basis point** increase in rates decreasing pre-tax income by **$14 million** - Manages interest expense using fixed and variable rate debt and interest rate swap agreements[294](index=294&type=chunk) | Financial instrument | Estimated Fair Value (June 30, 2025, Millions USD) | | :-------------------------------- | :----------------------------------------------- | | Senior term loans due in 2028 | $1,255 | | **5.950%** senior notes due in 2034 | $1,053 | | **4.800%** senior notes due in 2030 | $603 | | **5.500%** senior notes due in 2035 | $503 | | **5.500%** senior notes due in 2029 | $517 | | **2.500%** senior notes due in 2031 | $443 | - A hypothetical **100 basis point** increase in interest rates on variable rate debt would decrease pre-tax income by **$14 million** for H1 2025[295](index=295&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) CBRE's CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, ensuring complete and accurate financial reporting [Disclosure Controls and Procedures](index=67&type=section&id=Disclosure%20Controls%20and%20Procedures) CBRE's disclosure controls and procedures were effective as of June 30, 2025, ensuring complete and accurate financial reporting with reasonable assurance - Disclosure controls and procedures were effective as of June 30, 2025[297](index=297&type=chunk) - Evaluation ensures complete and accurate corporate disclosure and timely reporting of information[296](index=296&type=chunk) [Changes in Internal Control Over Financial Reporting](index=67&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were no material changes in CBRE's internal control over financial reporting during the fiscal quarter ended June 30, 2025 - No material changes in internal control over financial reporting during Q2 2025[298](index=298&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material changes to CBRE's legal proceedings since the disclosures in its 2024 Annual Report - No material changes to legal proceedings as previously disclosed in the 2024 Annual Report[300](index=300&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to CBRE's risk factors as previously disclosed in its 2024 Annual Report - No material changes to risk factors as previously disclosed in the 2024 Annual Report[301](index=301&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) CBRE repurchased **2,123,191** shares for **$256 million** in Q2 2025 under its share repurchase program, with approximately **$5.2 billion** remaining available | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (Millions USD) | | :----------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | :------------------------------------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | 1,510,751 | **$117.93** | 1,510,751 | - | | May 1, 2025 - May 31, 2025 | 458,749 | **$125.47** | 458,749 | - | | June 1, 2025 - June 30, 2025 | 153,691 | **$129.89** | 153,691 | - | | Total (Q2 2025) | 2,123,191 | **$120.43** | 2,123,191 | **$5,159** | - The share repurchase program does not obligate CBRE to acquire any specific number of shares and is funded with cash on hand[302](index=302&type=chunk) - The program is used to offset stock-based compensation impact and for opportunistic investments[302](index=302&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No officers or directors adopted or terminated Rule 10b5-1 trading arrangements during Q2 2025[303](index=303&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, indentures, equity agreements, credit agreements, and certifications - Includes Amended and Restated Certificate of Incorporation and By-Laws[304](index=304&type=chunk) - Lists Tenth and Eleventh Supplemental Indentures for **4.800%** Senior Notes due 2030 and **5.500%** Senior Notes due 2035[304](index=304&type=chunk) - Contains various Grant Notice and Restricted Stock Unit Agreements for the 2019 Equity Incentive Plan[304](index=304&type=chunk) - Includes 5-Year and 364-Day Revolving Credit Agreements and related Guaranty Agreements[304](index=304&type=chunk) - Certifications by CEO and CFO (Rule 13a-14(a) and 18 U.S.C. §1350) and Inline XBRL documents are also filed[305](index=305&type=chunk) [Signatures](index=71&type=section&id=Signatures) The report is signed by Emma E. Giamartino, Chief Financial Officer, and Lindsey S. Caplan, Chief Accounting Officer, on behalf of CBRE Group, Inc. on July 29, 2025 - Signed by Emma E. Giamartino, Chief Financial Officer, and Lindsey S. Caplan, Chief Accounting Officer[309](index=309&type=chunk) - Date of signing: July 29, 2025[309](index=309&type=chunk)

Core Insights - CBRE Group Inc. reported second-quarter 2025 core earnings per share (EPS) of $1.19, exceeding the Zacks Consensus Estimate of $1.05, and reflecting a year-over-year increase of 46.9% [1][9] - The company's shares rose over 8% following the earnings report, driven by strong revenue growth across most business segments, except for Real Estate Investments [2][9] - Total revenues for the quarter increased by 16.2% year over year to $9.75 billion, surpassing the Zacks Consensus Estimate of $9.37 billion [2][9] Revenue Breakdown - Adjusted net revenues rose 14% (12.9% in local currency) year over year to $5.67 billion, with core EBITDA increasing by 30.3% (28.9% in local currency) to $658 million [3] - The Advisory Services segment saw a revenue increase of 14.4% (13.8% in local currency) to $2 billion, while global leasing revenue grew by 14% (13% in local currency) [4] - Global property sales revenues grew by 20% (19% in local currency), with notable growth in the U.S. (25%), APAC (24%), and EMEA (19%) [5] - The Building Operations & Experience segment reported an 18.7% (17.5% in local currency) revenue increase to $5.76 billion, with facilities management revenues rising by 17% (16% in local currency) [6] Segment Performance - Project Management segment revenues increased by 14.3% (12.9% in local currency) to $1.79 billion, driven by growth from Turner & Townsend and CBRE's legacy business [7] - The Real Estate Investments segment experienced a revenue decline of 7.3% (9.1% in local currency) to $215 million [7] Financial Position - As of the end of Q2 2025, assets under management increased by $6.2 billion to $155.3 billion, aided by favorable foreign currency movements [8] - CBRE's cash and cash equivalents rose to $1.40 billion, with total liquidity increasing to $4.7 billion due to new financing activities [9][10] - The company's net leverage ratio was 1.47X, significantly below its primary debt covenant of 4.25X [10] Future Outlook - For 2025, CBRE raised its core EPS guidance to a range of $6.10-$6.20, compared to the previous guidance of $5.80-$6.10, with the Zacks Consensus Estimate currently at $5.94 [11]

Core Insights - CBRE Group reported $9.75 billion in revenue for Q2 2025, a year-over-year increase of 16.2% and a surprise of +4.14% over the Zacks Consensus Estimate of $9.37 billion [1] - Earnings per share (EPS) for the same period was $1.19, compared to $0.81 a year ago, representing a surprise of +13.33% over the consensus EPS estimate of $1.05 [1] Financial Performance Metrics - Investment Management AUM reached $155.30 billion, exceeding the estimated $151.54 billion [4] - Revenue from pass-through costs recognized as revenue was $4.09 billion, surpassing the estimated $3.95 billion, reflecting a +19.5% change year-over-year [4] - Total revenue from Real Estate Investments was $215 million, below the estimated $246.71 million, showing a year-over-year decline of -16% [4] - Revenue from Corporate, Other and Eliminations was -$7 million, significantly better than the estimated $103.24 million, with a year-over-year increase of +133.3% [4] - Advisory Services revenue was $2 billion, exceeding the estimated $1.85 billion, but showing a year-over-year decline of -2.3% [4] - Revenue from Building Operations & Experience was $5.76 billion, above the estimated $5.36 billion [4] - Project Management revenue was $1.79 billion, surpassing the estimated $1.66 billion [4] - Total segment operating profit for Advisory Services was $380 million, exceeding the average estimate of $326.52 million [4] - Operating income for Building Operations & Experience was $172 million, below the average estimate of $235.29 million [4] Stock Performance - CBRE shares returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported strong momentum in Q2 2025, with resilient revenues growing by 17%, surpassing the 15% growth rate for transactional businesses [5][8] - Core EBITDA and core EPS grew by 30% and 47% respectively, exceeding expectations [10] - The company raised its full-year core EPS guidance to a range of $6.1 to $6.2, indicating over 20% growth for the year [8][19] Business Line Data and Key Metrics Changes - Advisory Services revenue rose by 14%, with SOP growing by 31%, driven by margin expansion [11] - Global leasing revenue increased by 13%, with U.S. office leasing leading at a 15% increase [11][12] - The Building Operations and Experience segment saw mid-teens revenue growth, while Project Management achieved 13% revenue growth and 18% SOP growth [14][15] Market Data and Key Metrics Changes - Non-gateway markets outpaced gateway markets in growth, indicating increased momentum outside major cities [12] - U.S. industrial leasing revenue was up 15%, driven by third-party logistics providers [12] - Global property sales rose by 19%, with U.S. property sales increasing by 25% [13] Company Strategy and Development Direction - The company is focused on synergies across its nearly 8 billion square foot management portfolio, particularly in the Building Operations and Experience segment [6][19] - The integration of Turner and Townsend with the legacy project management business is expected to yield significant cost and revenue synergies over the next few years [31] - The company is actively pursuing M&A opportunities while balancing share buybacks as part of its long-term capital allocation strategy [19][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the economy, with limited risk of recession later in the year [19] - The leasing business is expected to continue strong, although comparisons will become tougher in the latter half of the year [24] - There is optimism regarding capital markets activity, with expectations for continued strength in sales and refinancing [38][41] Other Important Information - The company generated $1.3 billion of free cash flow over the trailing twelve months, with expectations of over $1.5 billion for the full year [18] - A bond offering of $1.1 billion was completed during the quarter, increasing liquidity to $4.7 billion [19] - The company’s exposure to the New York City market accounts for approximately 5% to 6% of overall earnings [84] Q&A Session Summary Question: What are the expectations for the office leasing business? - Management acknowledged that comparisons will become tougher but expects continued strength in office leasing driven by a return to normalcy post-COVID [24] Question: Can you provide context on the synergies in the BOE segment? - Management indicated that while they expect significant synergies, they have not yet quantified them [25][26] Question: What benefits have been seen from the integration of Turner and Townsend? - Management reported no unexpected challenges and noted significant cost and revenue synergies are already being realized [31] Question: What is the outlook for capital markets activity? - Management expects strong sales and refinancing activity to continue, with no significant changes anticipated in interest rates [38][41] Question: How is the company approaching capital deployment? - The company prioritizes M&A opportunities and will consider buybacks if capital is not deployed at the same rate as free cash flow generation [42][43] Question: What is the expected project management revenue growth for the second half of the year? - Management anticipates low double-digit revenue growth for project management, with some normalization expected in Q3 [58] Question: What is the outlook for industrial leasing? - Management revised expectations for industrial leasing to roughly double-digit growth for the year, indicating improved conditions [61] Question: How does the company view its infrastructure services and asset management? - Management confirmed a focus on growing infrastructure services and investment management, which are seen as areas of potential value creation [68][69]

Financial Data and Key Metrics Changes - The company reported strong momentum in Q2 2025, with resilient revenues growing by 17%, surpassing the 15% growth rate for transactional businesses [4][6] - Core EBITDA and core EPS grew by 30% and 47% respectively, exceeding expectations [8] - The company raised its core EPS guidance for the year to a range of $6.1 to $6.2, indicating over 20% growth for the year if the midpoint is achieved [6][16] Business Line Data and Key Metrics Changes - Advisory Services revenue rose by 14% with SOP growing by 31%, driven by margin expansion [9] - Global leasing revenue increased by 13%, with U.S. office leasing leading at a 15% increase [9][10] - The Building Operations and Experience segment saw mid-teens revenue growth, while Project Management achieved 13% revenue growth and 18% SOP growth [12][13] Market Data and Key Metrics Changes - Growth in non-gateway markets outpaced gateway markets, indicating increased momentum in regions outside major cities [10] - U.S. industrial leasing revenue was up 15%, driven by third-party logistics providers [10] - Global property sales rose by 19%, with U.S. property sales increasing by 25%, particularly strong in data centers, office, and retail [11] Company Strategy and Development Direction - The company is focused on synergies across its nearly 8 billion square foot management portfolio and is optimistic about the integration of Turner and Townsend with its legacy project management business [5][29] - The company is targeting growth in infrastructure services and asset management, with a growing $10 billion AUM infrastructure fund [66][67] - The outlook for capital markets activity remains strong, with expectations for continued sales and refinancing activity [36][39] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains uncertain, occupier and investor clients are proceeding with their plans [4] - The company expects to set a new earnings peak this year, just two years after the 2023 downturn in commercial real estate [6][7] - Management expressed confidence in the resilience of the economy with limited risk of recession later this year [16] Other Important Information - The company generated $1.3 billion of free cash flow on a trailing twelve-month basis, with expectations of over $1.5 billion for the full year [15] - A bond offering of $1.1 billion was completed during the quarter, increasing liquidity to $4.7 billion [16] Q&A Session Summary Question: What are the expectations for the office leasing recovery? - Management acknowledged that comparisons will become tougher but noted strong momentum in office leasing, particularly in second-tier markets [20][22] Question: What benefits have been seen from the integration of Turner and Townsend? - Management reported no unexpected challenges and highlighted significant cost and revenue synergies, with expectations for continued benefits over the next couple of years [29][30] Question: What is the outlook for capital markets activity? - Management expects strong sales and refinancing activity to continue, with no significant changes anticipated in interest rates [36][39] Question: How is the company addressing potential synergies in the Building Operations and Experience segment? - Management indicated that while synergies are expected to be significant, they have not yet quantified them [23][24] Question: What is the expected growth for project management revenue in the second half of the year? - Management anticipates low double-digit revenue growth for project management, with normalization expected in the second half [55][56] Question: How is the company approaching capital deployment and share buybacks? - Management reiterated a focus on M&A opportunities while balancing share buybacks, with no specific capital allocation embedded in guidance [40][41]

Core Viewpoint - CBRE Group reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing a significant increase from $0.81 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +13.33%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - CBRE's revenues for the quarter ended June 2025 were $9.75 billion, surpassing the Zacks Consensus Estimate by 4.14%, and up from $8.39 billion year-over-year [3] - The company has also exceeded consensus revenue estimates three times in the last four quarters [3] Stock Performance - CBRE shares have increased approximately 11.6% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.48 on revenues of $9.97 billion, and for the current fiscal year, it is $5.94 on revenues of $39.73 billion [8] - The outlook for the Real Estate - Operations industry, where CBRE operates, is currently in the bottom 41% of Zacks industries, which may impact stock performance [9] Competitor Insights - Jones Lang LaSalle (JLL), a competitor in the same industry, is expected to report quarterly earnings of $3.20 per share, reflecting a year-over-year change of +25.5%, with revenues anticipated at $6.11 billion, up 8.5% from the previous year [10][11]

Financial Performance - CBRE's Q2 2025 revenue increased by 16% to $9754 million compared to $8391 million in Q2 2024[5] - Adjusted Net Revenue increased by 14% to $5668 million[5] - GAAP Net Income increased significantly by 65% to $215 million[5] - Core EBITDA grew by 30% year-on-year to $658 million[5,57] - Core EPS increased by 47% year-on-year to $1.19[5] Segment Performance - Advisory Services revenue grew by 14%, with Global leasing revenue up by 13%[8] - Global property sales rose by 19%[8] - Building Operations & Experience revenue increased by 18%[11] - Project Management revenue grew by 13%[15] - Real Estate Investments revenue decreased by 7% to $215 million, but segment operating profit increased by 150% to $25 million[18,51] Capital Allocation and Guidance - The company expects to generate over $1.5 billion of free cash flow for the full year[26] - CBRE completed a $1.1 billion bond offering and expanded its revolving credit facility, increasing liquidity to $4.7 billion[26] - The company raised its 2025 Core EPS range to $6.10 - $6.20[28]

[Executive Summary & Key Highlights](index=1&type=section&id=Key%20Highlights) [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) CBRE Group, Inc. reported strong financial results for the second quarter ended June 30, 2025, with significant growth in revenue, EPS, and core profitability, driven by resilient and transactional businesses - CBRE's chair and chief executive officer, Bob Sulentic, highlighted strong momentum, with **resilient revenue rising 17%** and **transactional businesses growing 15%**, surpassing expectations despite macro uncertainty. The company has increased its 2025 Core EPS outlook, expecting to set a new peak[1](index=1&type=chunk) Q2 2025 Key Financial Metrics | Metric | Q2 2025 Performance | | :-------------------------------- | :------------------ | | GAAP EPS | $0.72 | | Core EPS | $1.19 | | Revenue | $9.8 billion | | Resilient Businesses Revenue | $8.1 billion | | Transactional Businesses Revenue | Nearly $1.7 billion | | GAAP Net Income | $215 million | | Core EBITDA | $658 million | | Net Cash Flow from Operations (TTM) | $1.4 billion | | Free Cash Flow (TTM) | Nearly $1.3 billion | | Liquidity | $4.7 billion | [2025 Outlook](index=1&type=section&id=2025%20Outlook) CBRE has raised its Core EPS outlook for 2025, anticipating significant growth and a new peak in earnings, even with capital markets activity remaining below prior peak levels - The **2025 Core EPS outlook has been increased to $6.10 to $6.20** from the previous $5.80 to $6.10, reflecting **better than 20% growth** at the midpoint of the range. This forecast is based on constant currency and would increase by at least $0.10 based on current forward FX curves[1](index=1&type=chunk)[2](index=2&type=chunk) [Consolidated Financial Results Overview](index=3&type=section&id=Consolidated%20Financial%20Results%20Overview) [Q2 2025 Consolidated Performance](index=3&type=section&id=Q2%202025%20Consolidated%20Performance) CBRE's consolidated financial results for Q2 2025 showed significant growth across key metrics, including revenue, net income, and core profitability, while cash flow from operations and free cash flow saw a substantial decrease compared to the prior year Consolidated Operating and Cash Flow Results | Operating Results | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change (USD) | % Change (LC) | | :-------------------------------- | :----------------------- | :----------------------- | :------------- | :------------ | | Revenue | $9,754 | $8,391 | 16.2% | 15.1% | | Adjusted net revenue | $5,668 | $4,971 | 14.0% | 12.9% | | GAAP net income | $215 | $130 | 65.4% | 63.1% | | GAAP EPS | $0.72 | $0.42 | 71.4% | 69.0% | | Core adjusted net income | $358 | $248 | 44.4% | 42.7% | | Core EBITDA | $658 | $505 | 30.3% | 28.9% | | Core EPS | $1.19 | $0.81 | 46.9% | 45.7% | | **Cash Flow Results** | | | | | | Cash flow provided by operations | $57 | $287 | (80.1)% | | | Gain on disposition of real estate sales | $19 | — | NM | | | Less: Capital expenditures | $74 | $67 | 10.4% | | | Free cash flow | $2 | $220 | (99.1)% | | [Segment Performance](index=3&type=section&id=Segment%20Performance) [Advisory Services Segment](index=3&type=section&id=Advisory%20Services%20Segment) The Advisory Services segment demonstrated robust growth in Q2 2025, with significant increases in revenue and operating profit, driven by strong performance in leasing, capital markets, and valuations across global regions Advisory Services Segment Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change (USD) | % Change (LC) | | :-------------------------------- | :----------------------- | :----------------------- | :------------- | :------------ | | Revenue | $1,996 | $1,744 | 14.4% | 13.8% | | Adjusted net revenue | $1,983 | $1,732 | 14.5% | 13.8% | | Segment operating profit | $380 | $287 | 32.4% | 31.3% | | Segment operating profit on revenue margin | 19.0% | 16.5% | +2.5 pts | +2.6 pts | | Segment operating profit on adjusted net revenue margin | 19.2% | 16.6% | +2.6 pts | +2.6 pts | [Leasing](index=3&type=section&id=Leasing) Global leasing revenue achieved its highest second-quarter level in company history, with strong growth across all major regions, particularly in EMEA and the United States - Global leasing revenue increased **14% (13% local currency)**, reaching the highest level for any second quarter in company history[5](index=5&type=chunk) - The United States saw leasing revenue rise **14%** overall, led by office and industrial sectors[5](index=5&type=chunk) - EMEA set the pace with leasing revenue growth of **18% (13% local currency)**, driven by the United Kingdom and Germany, while Asia Pacific (APAC) leasing revenue rose **12% (11% local currency)**, paced by India and Japan[5](index=5&type=chunk) [Capital Markets](index=5&type=section&id=Capital%20Markets) Capital Markets experienced robust growth, with global property sales exceeding expectations and significant increases in mortgage origination revenue, while loan servicing and valuations also saw positive trends - Global property sales revenue rose **20% (19% local currency)**, exceeding expectations, with the United States registering **25% growth**, notably in data centers, office, and retail[8](index=8&type=chunk) - Mortgage origination revenue rose **44% (same local currency)**, reflecting particularly strong lending by government agencies, debt funds, and CMBS lenders[8](index=8&type=chunk) - Loan servicing revenue ticked up **1% (same local currency)**, with the servicing portfolio totaling **$443 billion**, up **1%** for the quarter and **4%** over the past year. Valuations revenue increased **7% (5% local currency)**, with the United States showing the strongest growth[8](index=8&type=chunk) [Building Operations & Experience (BOE) Segment](index=5&type=section&id=Building%20Operations%20%26%20Experience%20%28BOE%29%20Segment) The BOE segment delivered strong revenue and profit growth in Q2 2025, driven by significant increases in facilities management and property management, with contributions from recent acquisitions BOE Segment Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change (USD) | % Change (LC) | | :-------------------------------- | :----------------------- | :----------------------- | :------------- | :------------ | | Revenue | $5,764 | $4,855 | 18.7% | 17.5% | | Adjusted net revenue | $2,630 | $2,228 | 18.0% | 16.9% | | Segment operating profit | $261 | $213 | 22.5% | 21.1% | | Segment operating profit on revenue margin | 4.5% | 4.4% | +0.1 pts | +0.1 pts | | Segment operating profit on adjusted net revenue margin | 9.9% | 9.6% | +0.3 pts | +0.3 pts | [Facilities Management](index=5&type=section&id=Facilities%20Management) Facilities management revenue saw strong growth across both Enterprise and Local businesses, particularly in data center hyperscalers and key industry sectors - Facilities management revenue increased **17% (16% local currency)** with strong growth across the Enterprise and Local businesses. In Enterprise, growth was led by data center hyperscalers as well as the technology, healthcare and industrial sectors[9](index=9&type=chunk) [Property Management](index=5&type=section&id=Property%20Management) Property management revenue experienced significant growth, boosted by contributions from the recent acquisition of Industrious - Property management revenue rose **30% (same local currency)**, with contributions from Industrious, the flexible workplace operator acquired in early January 2025, enhancing the growth rate[9](index=9&type=chunk) [Project Management Segment](index=6&type=section&id=Project%20Management%20Segment) The Project Management segment reported solid revenue and operating profit growth in Q2 2025, with broad-based global expansion and strong performance from both Turner & Townsend and legacy CBRE businesses Project Management Segment Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change (USD) | % Change (LC) | | :-------------------------------- | :----------------------- | :----------------------- | :------------- | :------------ | | Revenue | $1,786 | $1,563 | 14.3% | 12.9% | | Adjusted net revenue | $847 | $782 | 8.3% | 6.6% | | Segment operating profit | $121 | $102 | 18.6% | 17.6% | | Segment operating profit on revenue margin | 6.8% | 6.5% | +0.3 pts | +0.3 pts | | Segment operating profit on adjusted net revenue margin | 14.3% | 13.0% | +1.3 pts | +1.4 pts | - Project management revenue rose **14% (13% local currency)**, with broad-based growth globally. Turner & Townsend's legacy business delivered mid-teens revenue increases across most regions, with notable growth in its largest geography—the United Kingdom. Revenue rose by low double digits in the legacy CBRE Project Management business[14](index=14&type=chunk) [Real Estate Investments (REI) Segment](index=6&type=section&id=Real%20Estate%20Investments%20%28REI%29%20Segment) The REI segment experienced a decline in revenue but a significant increase in operating profit in Q2 2025, primarily due to a turnaround in global real estate development and recurring asset management fees, despite lower carried interest REI Segment Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change (USD) | % Change (LC) | | :----------------------- | :----------------------- | :----------------------- | :------------- | :------------ | | Revenue | $215 | $232 | (7.3)% | (9.1)% | | Segment operating profit | $25 | $10 | 150.0% | 140.0% | [Investment Management](index=6&type=section&id=Investment%20Management) Investment Management revenue declined due to the absence of significant carried interest, but recurring asset management fees showed growth, and Assets Under Management (AUM) increased - Revenue fell **3% (5% local currency) to $144 million**, reflecting the absence of significant carried interest in the current quarter versus the year-ago period. Recurring asset management fees rose **5% (3% local currency)**[15](index=15&type=chunk) - Investment Management operating profit totaled **$31 million** versus $39 million in last year's second quarter, driven by the lower carried interest[15](index=15&type=chunk) - Assets Under Management (AUM) totaled **$155.3 billion**, up **$6.2 billion** from first-quarter 2025, mainly driven by favorable foreign currency movement[15](index=15&type=chunk) [Real Estate Development](index=6&type=section&id=Real%20Estate%20Development) Global real estate development swung to an operating profit in Q2 2025, with a growing portfolio of in-process projects and pipeline - Global development swung to an operating profit of **$3 million** from a $26 million operating loss in last year's second quarter[15](index=15&type=chunk) - The portfolio of in-process projects and pipeline stood at **$31.7 billion**, up **$0.6 billion** for the quarter[15](index=15&type=chunk) [Core Corporate Segment](index=7&type=section&id=Core%20Corporate%20Segment) The Core Corporate segment reported an increased operating loss in Q2 2025 - Core corporate operating loss increased by approximately **$22 million**[16](index=16&type=chunk) [Capital Allocation & Financial Position](index=7&type=section&id=Capital%20Allocation%20%26%20Financial%20Position) [Leverage and Financing Overview](index=7&type=section&id=Leverage%20and%20Financing%20Overview) CBRE's net leverage ratio remained well below its debt covenant, and total liquidity significantly increased during the quarter due to new financing activities - CBRE's net leverage ratio (net debt to trailing twelve-month core EBITDA) was **1.47x** as of June 30, 2025, which is substantially below the company's primary debt covenant of 4.25x[18](index=18&type=chunk) Net Leverage Ratio Calculation | Metric | As of June 30, 2025 (Millions USD) | | :-------------------------------- | :--------------------------------- | | Total debt | $5,773 | | Less: Cash and cash equivalents | $1,395 | | Net debt | $4,378 | | Divided by: Trailing twelve-month Core EBITDA | $2,972 | | Net leverage ratio | 1.47x | - At the end of the second quarter, the company had approximately **$4.7 billion of total liquidity**, consisting of **$1.4 billion in cash**, plus the ability to borrow an aggregate of approximately **$3.3 billion** under its revolving credit facilities and commercial paper program. Total liquidity increased by **$1.2 billion** during the quarter from approximately $3.5 billion at the end of the first quarter, reflecting new financing activity[18](index=18&type=chunk) [Free Cash Flow](index=7&type=section&id=Free%20Cash%20Flow) Free cash flow for Q2 2025 was minimal, but the trailing 12-month free cash flow remained strong - Free cash flow totaled **$2 million** during the second quarter of 2025, reflecting cash provided by operating activities of $57 million and gains on sale of real estate of $19 million, adjusted for total capital expenditures of $74 million[20](index=20&type=chunk) - On a trailing 12-month basis, free cash flow totaled nearly **$1.3 billion**[20](index=20&type=chunk) [Stock Repurchase Program](index=7&type=section&id=Stock%20Repurchase%20Program) CBRE continued its stock repurchase program, buying back a significant number of shares since year-end 2024, with substantial capacity remaining - The company has repurchased approximately **5.2 million shares for $663 million** ($127.82 average price per share) since year-end 2024[20](index=20&type=chunk) - There was approximately **$5.2 billion of capacity** remaining under the company's authorized stock repurchase program as of June 30, 2025[20](index=20&type=chunk) [Acquisitions and Investments](index=7&type=section&id=Acquisitions%20and%20Investments) The company did not make any material acquisitions during the second quarter of 2025 - The company did not make any material acquisitions during the second quarter of 2025[20](index=20&type=chunk) [Conference Call Details](index=7&type=section&id=Conference%20Call%20Details) [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) Details for accessing the Q2 2025 earnings webcast and conference call, including replay information and where to find the transcript - The company's second quarter earnings webcast and conference call were held on Tuesday, July 29, 2025, at 8:30 a.m. Eastern Time[19](index=19&type=chunk) - A replay of the call was available starting at 1:00 p.m. Eastern Time on July 29, 2025, and a transcript of the call will be available on the company's Investor Relations website at https://ir.cbre.com[21](index=21&type=chunk)[22](index=22&type=chunk) [About CBRE Group, Inc.](index=9&type=section&id=About%20CBRE%20Group%2C%20Inc.) [Company Overview](index=9&type=section&id=Company%20Overview) CBRE Group, Inc. is the world's largest commercial real estate services and investment firm, offering a broad range of services through its four main business segments globally - CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2024 revenue)[22](index=22&type=chunk) - The company has more than **140,000 employees** (including Turner & Townsend employees) serving clients in more than **100 countries**[22](index=22&type=chunk) - CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage serving, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development)[22](index=22&type=chunk) [Safe Harbor and Footnotes](index=9&type=section&id=Safe%20Harbor%20and%20Footnotes) [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section provides important disclaimers regarding forward-looking statements and outlines various risk factors that could impact the company's actual results and performance - This press release contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause the company's actual results and performance to be materially different from any future results or performance suggested[23](index=23&type=chunk) - Factors that could cause results to differ materially include disruptions in general economic, political and regulatory conditions, volatility or adverse developments in the securities, capital or credit markets, interest rate increases, and conditions affecting the value of real estate assets[23](index=23&type=chunk) - Additional information concerning factors that may influence the company's financial information is discussed under 'Risk Factors' in its Annual Report on Form 10-K and latest quarterly report on Form 10-Q[25](index=25&type=chunk) [Non-GAAP Financial Measures Definitions](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines and explains the various non-GAAP financial measures used in the press release, clarifying their purpose and how they are calculated - The terms 'adjusted 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 adjusted net revenue margin,' 'net debt' and 'free cash flow' are non-GAAP financial measures under SEC guidelines[26](index=26&type=chunk)[45](index=45&type=chunk) - These measures are used by management to evaluate operating performance, provide a more complete understanding of ongoing operations, and enhance comparability of current results to prior periods by eliminating the impact of selected charges[41](index=41&type=chunk)[43](index=43&type=chunk) - Adjusted net revenue excludes costs associated with subcontracted vendor work that are reimbursable by clients and generally have no margin, offering greater visibility into underlying business performance[42](index=42&type=chunk) - Core EBITDA, core EPS, and core adjusted net income are useful for evaluating operating performance compared to peers by generally eliminating the accounting effects of acquisitions, financings, income tax, capital spending, and volatile strategic non-core equity investments[43](index=43&type=chunk)[46](index=46&type=chunk) - Resilient businesses include facilities management, project management, loan servicing, valuations, other portfolio services, property management and recurring investment management fees. Transactional businesses include property sales, leasing, mortgage origination, carry interest and incentive fees in the investment management business, and development fees[28](index=28&type=chunk) [Financial Statements](index=12&type=section&id=Financial%20Statements) [Operating Results](index=12&type=section&id=Operating%20Results) This section presents the detailed consolidated operating results for the three and six months ended June 30, 2025, and 2024, including revenue, costs, operating income, and net income Consolidated Operating Results | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total revenue | $9,754 | $8,391 | $18,663 | $16,326 | | Total costs and expenses | $9,399 | $8,145 | $18,033 | $15,889 | | Operating income | $374 | $246 | $649 | $450 | | Net income attributable to CBRE Group, Inc. | $215 | $130 | $378 | $256 | | Diluted income per share attributable to CBRE Group, Inc. | $0.72 | $0.42 | $1.25 | $0.83 | | Core EBITDA | $658 | $505 | $1,198 | $930 | [Segment Results](index=13&type=section&id=Segment%20Results) This section provides a detailed breakdown of financial performance by segment for the three months ended June 30, 2025, and 2024, including revenue, costs, and operating income (loss) for Advisory Services, BOE, Project Management, REI, and Corporate segments Q2 2025 Segment Performance | Segment (Q2 2025) | Total Revenue (Millions USD) | Segment Operating Profit (Millions USD) | | :-------------------------------- | :--------------------------- | :-------------------------------------- | | Advisory Services | $1,996 | $380 | | Building Operations & Experience | $5,764 | $261 | | Project Management | $1,786 | $121 | | Real Estate Investments | $215 | $25 | | Corporate | $(7) | $(129) | Q2 2024 Segment Performance | Segment (Q2 2024) | Total Revenue (Millions USD) | Segment Operating Profit (Millions USD) | | :-------------------------------- | :--------------------------- | :-------------------------------------- | | Advisory Services | $1,744 | $287 | | Building Operations & Experience | $4,855 | $213 | | Project Management | $1,563 | $102 | | Real Estate Investments | $232 | $10 | | Corporate | $(3) | $(107) | [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheet Summary | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :-------------------------------- | :------------------------------- | :--------------------------------- | | Total Assets | $27,693 | $24,383 | | Total Liabilities | $18,700 | $15,191 | | Total Equity | $8,585 | $9,192 | | Cash and cash equivalents | $1,395 | $1,114 | | Total debt (current + long-term) | $5,773 | $3,403 | [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the consolidated statements of cash flows for the six months ended June 30, 2025, and 2024, outlining cash flows from operating, investing, and financing activities Consolidated Cash Flow Statement | Metric | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(489) | $(205) | | Net cash used in investing activities | $(467) | $(1,307) | | Net cash provided by financing activities | $1,160 | $1,242 | | Net change in cash, cash equivalents and restricted cash | $311 | $(338) | | Cash, cash equivalents and restricted cash, at end of period | $1,532 | $1,033 | [Non-GAAP Financial Measures Reconciliation](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Explanation of Non-GAAP Measures](index=18&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This sub-section details the rationale behind using non-GAAP financial measures, explaining how they provide a clearer view of operational performance by excluding certain non-recurring or non-cash items - CBRE uses non-GAAP financial measures like adjusted net revenue, core adjusted net income, core EBITDA, core EPS, segment operating profit, net debt, and free cash flow to provide a more complete understanding of ongoing operations and enhance comparability, excluding selected charges that may obscure underlying business performance[40](index=40&type=chunk)[41](index=41&type=chunk)[45](index=45&type=chunk) - Adjusted net revenue excludes costs associated with subcontracted vendor work that are reimbursable by clients and generally have no margin, offering greater visibility into underlying business performance[42](index=42&type=chunk) - Core EBITDA, core EPS, and core adjusted net income are useful for evaluating operating performance compared to peers by generally eliminating the accounting effects of acquisitions, financings, income tax, capital spending, and volatile strategic non-core equity investments[43](index=43&type=chunk)[46](index=46&type=chunk) [Core Net Income and EPS Reconciliation](index=19&type=section&id=Core%20Net%20Income%20and%20EPS%20Reconciliation) This sub-section provides a reconciliation of GAAP net income to core adjusted net income and core EPS for the three and six months ended June 30, 2025, and 2024, detailing the adjustments made Core Net Income and EPS Reconciliation | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net income attributable to CBRE Group, Inc. | $215 | $130 | $378 | $256 | | Core net income attributable to CBRE Group, Inc., as adjusted | $358 | $248 | $618 | $489 | | Core diluted income per share attributable to CBRE Group, Inc., as adjusted | $1.19 | $0.81 | $2.05 | $1.59 | [Core EBITDA Reconciliation](index=20&type=section&id=Core%20EBITDA%20Reconciliation) This sub-section reconciles GAAP net income to Core EBITDA for the three and six months ended June 30, 2025, and 2024, and also provides the trailing twelve-month Core EBITDA Core EBITDA Reconciliation (Quarterly) | Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Six Months Ended June 30, 2025 (Millions USD) | Six Months Ended June 30, 2024 (Millions USD) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net income | $239 | $142 | $431 | $290 | | Core EBITDA | $658 | $505 | $1,198 | $930 | Core EBITDA Reconciliation (Trailing Twelve Months) | Metric | Trailing Twelve Months Ended June 30, 2025 (Millions USD) | | :-------------------------------- | :------------------------------------------------ | | Net income | $1,176 | | Core EBITDA | $2,972 | [REI Segment Operating Profit Reconciliation](index=21&type=section&id=REI%20Segment%20Operating%20Profit%20Reconciliation) This sub-section reconciles the operating profitability of Investment Management and Global Real Estate Development to the overall REI segment operating profit for the three months ended June 30, 2025, and 2024 REI Segment Operating Profit Reconciliation | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :------------------------------------ | :----------------------- | :----------------------- | | Investment management operating profit | $31 | $39 | | Global real estate development operating profit (loss) | $3 | $(26) | | Segment overhead (and related adjustments) | $(9) | $(3) | | Real estate investments segment operating profit | $25 | $10 | [Free Cash Flow Reconciliation](index=21&type=section&id=Free%20Cash%20Flow%20Reconciliation) This sub-section provides a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended June 30, 2025, broken down by quarter Free Cash Flow Reconciliation (Trailing Twelve Months) | Metric | Q3 2024 (Millions USD) | Q4 2024 (Millions USD) | Q1 2025 (Millions USD) | Q2 2025 (Millions USD) | Trailing twelve months (Millions USD) | | :-------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :------------------------------------ | | Cash flow provided by (used in) operations | $573 | $1,340 | $(546) | $57 | $1,424 | | (Losses) gains on disposition of real estate sales | $(1) | $130 | — | $19 | $148 | | Less: Capital expenditures | $79 | $93 | $64 | $74 | $310 | | Free cash flow | $493 | $1,377 | $(610) | $2 | $1,262 |

Group 1 - Hong Kong welcomed over 20 million international visitors in the first five months of this year, with expectations to surpass last year's total of 44.5 million, reflecting an 11.9% year-on-year growth but still 22% lower than the peak in 2018 [1] - The recovery is primarily driven by short-haul leisure travel, particularly from Mainland China, Thailand, and Taiwan, benefiting from promotional activities like "Hong Kong Night Vibrancy" [1] - Hotel performance in Hong Kong is mixed, with an overall occupancy rate rebounding to approximately 85%, just 4 percentage points lower than the average from 2018 to 2023, while the average daily rate (ADR) decreased by 4.3% [1] Group 2 - The average revenue per available room (RevPAR) stands at 1,132 HKD, which is 9.6% lower than the pre-pandemic peak in 2018, indicating a focus on short to medium-term occupancy improvement and price stabilization [1] - High-end hotels have fully recovered, with ADR reaching 2,145 HKD in the first five months of this year, nearly matching the 2,149 HKD from 2018, while mid-range and budget hotels are attracting a broader traveler base with competitive pricing [1] - Over the next five years, despite an increase in tourist arrivals, hotel supply is expected to grow at a compound annual growth rate of only 0.1%, with new supply mainly in the high-end market, leading to a continued tight overall supply [2] Group 3 - The transformation of some mid-range and budget hotels into student dormitories or labor accommodations will further tighten supply, making hotels an attractive investment option for both seasonal operations and stable income assets [2] - The outlook for Hong Kong hotels is cautiously optimistic for the second half of 2025, driven by cultural events, infrastructure upgrades, and international events [2] - Hotel operators need to adapt to changing traveler expectations and rising operational costs, focusing on enhancing guest experiences and attracting high-spending travelers for long-term growth [2]

财华社7月28日讯，今日世邦魏理仕就今年上半年香港酒店、旅游及零售业发表看法，并对下半年进行 展望。 世邦魏理仕认为，随着国际旅客回流及消费行为持续演变，香港的酒店、旅游及零售业在2025年上半年 持续疫后复苏。然而，随着消费模式的转变加剧，业界仍面临一定挑战。 对于香港零售业下半年的表现，世邦魏理仕指出，2025年下半年消费者信心有望回稳，受潜在减息及大 型活动如Art Basel、榄球七人赛及国际演唱会等刺激消费。零售商与业主应保持灵活，运用数据驱动 策略及多元化产品组合，以把握新兴需求。 尽管入境旅客大幅增加，香港零售业在2025年上半年仍面临压力，零售销售按年下跌5.5%。2025年首 五个月，内地过夜旅客总消费按年下跌6%，受强势港元、人民币贬值及深圳价格竞争影响。然而，长 途过夜旅客的总消费则上升15%。 零售租金持续调整，核心区街铺租金按季微升0.9%。不过，内地品牌、电商平台及运动健康类租户在 核心区扩张，显示租户组合及消费需求正发生转变。 酒店与旅游业：多元客源与大型活动推动稳健增长 2025年1月至5月期间，香港共接待超过2,000万名国际旅客，有望超越2024年录得的4,450万人次。虽 ...