Financial Data and Key Metrics - The company ended 2023 with strong operating profit growth across all three business segments, delivering the third-highest full-year earnings in its history despite a challenging year for commercial real estate [40] - Investment Management AUM ended 2023 at $148 billion, up $3 billion for the quarter, driven by favorable currency movement and modest net capital inflows [73] - The company expects free cash flow to total at least $1 billion in 2024, with a $500 million benefit from the reversal of large cash expenses in 2023 [44] - Core EPS for 2024 is expected to be between $4.25 and $4.65, implying mid-teens percentage growth at the midpoint [88] Business Line Performance - GWS segment saw double-digit growth in net revenue and SOP, with Facilities Management net revenue increasing 14% for the quarter and 13% for the year [43] - Project Management net revenue grew 11% for the quarter and 14% for the year, led by Turner & Townsend's global program management work [43] - REI segment SOP increased to $68 million in Q4, up from $17 million in the prior year, driven by the earlier-than-anticipated monetization of several US assets [90] - Capital markets revenue is expected to grow by mid-single digits, with improved investor sentiment and easing of the denominator effect [14] Market Performance - Leasing revenue saw a slight uptick in Q4, driven by EMEA and APAC, with higher office leasing offsetting slightly less industrial activity [56] - Industrial and retail property sales declined less than multifamily and office, supported by healthy fundamentals [56] - Office leasing demand is expected to improve, particularly for Class A properties, which account for approximately two-thirds of leasing revenue [105] - Industrial leasing demand remains strong, especially for properties under 500,000 square feet [105] Strategic Direction and Industry Competition - The company is focused on scaling its infrastructure investment management business and expanding its development activities through Trammell Crow Company and Turner & Townsend [10] - The acquisition of J&J Worldwide Services enhances the company's technical services capabilities for US federal government clients and opens a new market channel [81] - The company is committed to M&A as a key growth strategy, with a focus on deals that align with secular tailwinds and areas where the company has a "right to win" [65][102] - The company is bullish on the multifamily market, expecting a correction in vacancy rates and increased demand for rentals due to high mortgage costs [54] Management Commentary on Operating Environment and Future Outlook - Management expects 2024 to be the beginning of a gradual market recovery, with resilient businesses expected to grow SOP by double digits [72] - The company anticipates increased transaction volumes in the second half of 2024 as short-term interest rates are expected to fall [88] - Management is cautiously optimistic about 2024, with core EPS growth contingent on stable long-term interest rates, anticipated Fed rate cuts, and the US avoiding a recession [122] - The company sees a path to returning to its prior core EPS peak in 2025, supported by double-digit growth in resilient businesses and a gradual recovery in transactional businesses [94] Other Important Information - The company has identified $150 million in run-rate cost savings, with half of the benefit expected to be realized in 2024, primarily in the advisory segment [131] - The company expects to end 2024 with net leverage around one turn, supported by improved free cash flow [44] - The J&J acquisition is expected to contribute $65 million in EBITDA for the year, with three-quarters of the benefit realized in 2024 [37] Q&A Session Summary Question: How is the company thinking about its long-term outlook into 2025? [6] - The company has strong visibility into returning to its peak EPS level in 2025, supported by continued double-digit growth in resilient businesses and a gradual recovery in transactional businesses [77] Question: What is the company's appetite for large acquisitions following the J&J deal? [51] - The company remains committed to M&A as a key growth strategy, focusing on deals that align with secular tailwinds and areas where the company has a "right to win" [65][102] Question: How are development costs trending, and what are the return hurdles for new projects? [76] - The company is securing development opportunities with attractive spreads between current cap rates and yields, positioning it well for future profitability [113] Question: What is the outlook for capital markets activity in 2024? [112] - The company expects capital markets revenue to grow at a mid-single-digit rate globally, with potential upside if the recovery accelerates or interest rates decline further [126] Question: How is the company managing cost growth, particularly in the corporate segment? [36] - Cost savings initiatives are largely offsetting the reset of bonuses and discretionary compensation, with corporate costs expected to uptick slightly due to improved financial performance [36]

For the quarter ended December 2023, CBRE Group (CBRE) reported revenue of $8.95 billion, up 9.2% over the same period last year. EPS came in at $1.38, compared to $1.33 in the year-ago quarter.The reported revenue represents a surprise of +3.89% over the Zacks Consensus Estimate of $8.62 billion. With the consensus EPS estimate being $1.21, the EPS surprise was +14.05%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

CBRE Group (CBRE) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.05%. A quarter ago, it was expected that this provider of real estate investment management services would post earnings of $0.65 per share when it actually produced earnings of $0.72, delivering a surprise of 10.77% ...

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

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

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

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

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

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

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