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

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

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

| --- | --- | |----------|-------------------------------------------------| | | | | | | | Contents | | | Page # | | | 5 | | | 6 | Emma Giamartino, CFO Remarks | | 11 | | | 16 | Non-GAAP Measures and Definitions | | 19 | Supplemental Slides, GAAP Reconciliation Tables | Forward-Looking This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the economic outlook, our business ...

Financial Performance - For the three months ended June 30, 2023, total revenue was $7,719,863, a slight decrease from $7,771,278 in the same period of 2022, representing a year-over-year decline of approximately 0.7%[209] - Total net revenue for the three months ended June 30, 2023, was $4.48 billion, a decrease of 0.7% compared to $4.80 billion for the same period in 2022[217] - Consolidated net income for the six months ended June 30, 2023, was $318.3 million, down from $879.6 million for the same period in 2022, despite revenue remaining stable at $15.1 billion[221] - Core EBITDA for the three months ended June 30, 2023, was $503.5 million, a decrease from $918.6 million in the same period of 2022[217] Revenue Segments - The Advisory Services segment experienced a significant decline of 21.4% in revenue, primarily due to adverse macroeconomic conditions[217] - The Global Workplace Solutions (GWS) segment saw a revenue increase of 10.6%, driven by new client acquisitions and service expansions[217] - Contractual revenue has increased primarily due to growth in the occupier outsourcing business, which is expected to partially offset negative impacts from macroeconomic conditions[205] Costs and Expenses - Operating, administrative, and other expenses increased by $42.9 million, or 1.9%, for the six months ended June 30, 2023, attributed to growth in the GWS segment and higher professional fees[222] - The total costs and expenses for the three months ended June 30, 2023, were $7.42 billion, representing 96.1% of total revenue[217] - Interest expense, net of interest income, rose by $24.5 million, or 132.1%, for the three months ended June 30, 2023, due to higher interest rates and increased borrowings[220] - Depreciation and amortization expenses decreased by $8.0 million, or 4.9%, for the three months ended June 30, 2023, compared to the prior year[218] Market Conditions - The company continues to face high inflation, which has increased compensation expenses and construction material costs, while some business segments are insulated against inflation through price adjustments in service contracts[204] - The appreciation of the U.S. dollar against foreign currencies has impacted revenue and earnings, particularly in the Real Estate Investments and Global Workplace Solutions segments[208] - Fluctuations in foreign currency exchange rates may adversely affect the company's financial condition and operating results, complicating period-to-period comparisons[211] - The company reported a 1.4% negative impact on total revenue due to foreign currency translation, primarily from the British pound, Australian dollar, and Canadian dollar[217] Strategic Initiatives - The company has accrued deferred purchase and contingent considerations totaling $565.8 million as of June 30, 2023, impacting future operating income and net income due to transaction-related expenditures[207] - The company has strategically expanded its business through acquisitions, which have historically enhanced service capabilities and market position[206] - The company has implemented cost reduction efforts since 2022 to improve financial performance amid challenging market conditions[205] Risks and Compliance - The investment management business's ability to maintain and grow assets under management is critical for achieving desired investment returns for investors[361] - Fluctuations in net earnings and cash flow may arise from poor performance in investment programs, particularly in real estate investments[361] - The company faces potential declines in lending activity from U.S. GSEs, impacting mortgage servicing revenue from the commercial real estate mortgage market[361] - Regulatory changes in U.S. and international law, especially in politically unstable regions, could affect operations[361] - The company is exposed to liabilities related to real estate advisory and property management activities, necessitating sufficient insurance coverage[361] - Organizational challenges associated with the company's size may impact its ability to retain and attract key personnel[361] - The company must manage leverage under debt instruments, which could lead to increased borrowing costs if credit ratings are downgraded[361] - Cybersecurity threats pose risks to the company's information technology networks, including potential asset misappropriation and operational disruption[361] - Compliance with global laws and regulations, including data privacy and protection, is essential for the company's operations[361] Brand Recognition - The company has been recognized as the most recognized commercial real estate brand for 22 consecutive years and has been included in the Dow Jones World Sustainability Index for four years[200] - Approximately 46 currencies contributed to 7.7% of total revenue for the three months ended June 30, 2023, indicating significant international exposure[209]

CBRE Group (NYSE:CBRE) Q1 2023 Earnings Conference Call April 26, 2023 8:30 AM ET Company Participants Brad Burke - SVP, IR Bob Sulentic - President, CEO Emma Giamartino - CFO Conference Call Participants Chandni Luthra - Goldman Sachs Steve Sakwa - Evercore ISI Anthony Paolone - JPMorgan Jade Rahmani - KBW Michael Griffin - Citi Stephen Sheldon - William Blair Patrick O'Shaughnessy - Raymond James Operator Greetings, and welcome to CBRE's First Quarter 2023 Earnings Conference Call. At this time, all parti ...

| --- | --- | |----------------|-------| | | | | | CBRE | | | | | | | | | | | April 27, 2023 | | | Q1 2023 CBRE | | | | | | | | | Earnings Call | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2023 EARNINGS CONFERENCE CALL Statements 2023 CBRE, Inc. |3 Conference Call Participants President & Chief Executive Officer Chief Financial Officer Senior Vice President, Investor Relations & Strategic Finance Q1 2023 EARNINGS CONFERENCE CALL Results Summary － Performance relative to expectations led by cyclica ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR CBRE GROUP, INC. (Exact name of registrant as specified in its charter) ___________________________________________________________ Delaware 94-3391143 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of th ...

Commission file number 001-32205 CBRE GROUP, INC. None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or ...

Financial Data and Key Metrics Changes - The company reported core EPS of $1.33 for Q4 2022, a significant decline from the previous year but slightly above the estimate provided at the end of Q3 2022 [3] - Full year core EPS grew 7% to $5.69, despite challenging macroeconomic conditions, including rising interest rates and a credit crunch [68] - The company expects core EPS to decline by low to mid double digits in 2023, but still anticipates it to be the third highest in its history [92] Business Line Data and Key Metrics Changes - Leasing revenue decreased by 7% globally and in the Americas, with a notable slowdown in office activity in major cities [5] - GWS net revenue grew by 13%, with organic revenue growth contributing half of that increase [32] - Advisory net revenue and SOPs declined by 21% and 33% respectively, driven by a decline in higher margin transactional businesses [93] Market Data and Key Metrics Changes - The company expects significant sales and leasing weakness in the first half of 2023, with Europe and Asia Pacific anticipated to outperform the Americas [60] - The macroeconomic outlook includes a short, moderate recession in the U.S. with unemployment expected to rise to near 5% [33] - Cap rates have increased by 100 to 150 basis points, with expectations for further expansion [31] Company Strategy and Development Direction - The company views 2023 as a transition year, expecting strong core EPS growth in 2024, exceeding 2022 levels [4] - The focus is on resilient business lines, which are expected to contribute more significantly to SOP in 2023 [102] - The company is willing to consider M&A opportunities, with a leverage target of up to two times for transformational deals [19] Management's Comments on Operating Environment and Future Outlook - Management anticipates a mild recession and expects capital markets to recover in the latter half of 2023 [130] - There are positive anecdotal signs in the market, with increased activity in asset sales and leasing expected to improve [100] - The company remains optimistic about long-term growth prospects, supported by a strong brand and market position [97] Other Important Information - The company has implemented a $400 million cost containment program, expecting significant cost benefits in 2023 [72] - The Telford business faced challenges, leading to a $43 million loss in Q4, but management expects improvement moving forward [94][84] - The company repurchased nearly $2 billion worth of shares in 2022, indicating a strong commitment to capital allocation [44] Q&A Session Summary Question: How does the company expect to grow in a shrinking office footprint environment? - Management noted that even with account shrinkage, there are opportunities for project and portfolio management work, which can drive revenue [11] Question: What are the expectations for leasing and transactional business recovery? - The company expects a rebound in transactional business lines starting late 2023 into 2024, with achievable growth targets [18] Question: What are the parameters for potential M&A activity? - The company is willing to leverage up to two times for transformational deals and is building its M&A pipeline [19] Question: How is the company addressing the challenges in the office leasing market? - Management has adjusted its strategy to focus more on industrial assets and expects a shift in income streams from office to industrial [26] Question: What is the outlook for free cash flow conversion in 2023? - The company expects free cash flow conversion to be roughly in line with 2022 levels, around 75%, with potential for mid-80s in a normalized environment [122]