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 ...

Core Viewpoint - CBRE Group is expected to report strong quarterly earnings with a projected EPS of $1.05, reflecting a 29.6% increase year-over-year, and revenues forecasted at $9.36 billion, representing an 11.6% increase compared to the previous year [1] Financial Estimates - The consensus estimate for 'Net revenue' is $5.44 billion, indicating a year-over-year change of +9.5% [3] - Analysts predict 'Revenue- Pass through costs also recognized as revenue' to be $3.95 billion, showing a +15.5% change from the year-ago quarter [4] - The estimate for 'Net revenue- Advisory Services' is $1.83 billion, reflecting a -16.5% change year-over-year [4] - 'Total revenue- Real Estate Investments' is forecasted at $246.71 million, indicating a -3.6% change from the previous year [4] - The estimated 'Total revenue- Advisory Services' is $1.85 billion, showing a -9.3% change from the year-ago quarter [5] - 'Revenue- Net revenue- Project management' is projected at $790.78 million, suggesting a -7% year-over-year change [6] - 'Net revenue- Investment management' is expected to reach $144.56 million, indicating a -3% change from the prior-year quarter [6] - 'Net revenue- Development services' is projected at $90.99 million, reflecting a +9.6% change from the prior-year quarter [7] - 'Net revenue- Capital Markets- Commercial mortgage origination' is expected to be $102.80 million, indicating a -17.8% change from the prior-year quarter [7] - 'Net revenue- Advisory leasing' is forecasted at $940.75 million, suggesting a +6.4% year-over-year change [7] - 'Investment Management AUM' is projected to be $151.04 billion, compared to $142.50 billion a year ago [8] Market Performance - CBRE shares have shown a +7% return over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [8]

Group 1 - The "City Partner" initiative in Guangzhou aims to foster long-term cooperation between the city and enterprises, focusing on mutual benefits and resource integration [2][3] - The first batch of 15 city partner companies includes prominent firms like CBRE, Deloitte, and Didi Group, representing various sectors including modern services and emerging industries [2][3] - CBRE views the "City Partner" program as a strategic opportunity to combine international experience with local practices, enhancing its long-term development in China [2][3] Group 2 - Major sporting events are seen as pivotal for urban development, with past events like the 2008 Olympics and 2010 Asian Games significantly impacting local economies and urban landscapes [3][4] - CBRE plans to leverage its role as a "city brain" to organize thematic salons and collaborate with various professional institutions to boost industry and resource focus in Guangzhou [4][5] - The company aims to facilitate sustainable development by promoting a "venue+" model for post-event operations, integrating commercial and cultural tourism elements [4][5] Group 3 - CBRE intends to act as a "招商引擎" (investment engine) during the event, attracting flagship stores to core business districts to showcase Guangzhou's culinary and tourism appeal [5][6] - The focus will be on the "12218" modern industrial system, particularly the 21 strategic emerging industries, to align international enterprises with local projects [5][6] - CBRE will establish a dedicated service network for Guangzhou, enhancing efficiency in attracting investments and supporting local enterprises' growth [5][6] Group 4 - CBRE emphasizes the importance of "connection" in commercial real estate, aiming to integrate global resources with local needs to enhance collaboration [6][7] - The company has experience in planning and investment for major cities worldwide, which will be applied to Guangzhou's development [6][7] - CBRE plans to attract high-quality brands that align with urban upgrades and the event economy, capitalizing on the international exposure from the games [7][8] Group 5 - The 15th National Games is positioned as a critical moment for the restructuring of China's commercial real estate market, with potential for both immediate and long-term benefits for Guangzhou [8] - The event is expected to enhance the city's operational capabilities and leave a lasting legacy beyond the games themselves [8] - CBRE aims to help Guangzhou achieve commercial prosperity and asset appreciation throughout the event cycle, reinforcing its role as a city development partner [8]

Core Insights - CBRE Group, Inc. is set to announce its Q2 2025 earnings on July 29, showcasing its leadership in real estate services with a comprehensive suite of offerings [1] - The company reported a 6.2% earnings surprise in the last quarter, with a net revenue growth of 17%, closely aligning with an 18% increase in transactional businesses [2] Financial Performance - Over the past four quarters, CBRE has consistently surpassed the Zacks Consensus Estimate, with an average earnings beat of 10.4% [3] - The Zacks Consensus Estimate for Q2 revenues is $9.36 billion, indicating an 11.6% year-over-year increase, while the EPS estimate has slightly decreased to $1.05, still reflecting a 29.6% year-over-year growth [7][8] Business Strategy and Market Trends - CBRE is focusing on building a balanced operating model with a shift towards contractual revenues, which is expected to support performance [3] - The demand for outsourcing services is providing significant growth opportunities, particularly in facilities management across key sectors like technology, industrial, data centers, and healthcare [4] - The company is investing in technology to enhance operational efficiency and client solutions, which is likely aiding in navigating current market challenges [5] Market Conditions - Despite a gradual recovery in the Advisory Services segment, ongoing macroeconomic uncertainties and elevated interest rates are impacting commercial real estate transaction activities [6][8]

Core Viewpoint - The "Urban Student Housing Scheme" announced by the Hong Kong Development Bureau and the Education Bureau provides a structured response to long-standing issues in the private market, particularly benefiting mid-range hotels during the current market conditions [1][2]. Group 1: Opportunities for Property Types - The scheme presents new opportunities for mid-range hotels, which can be converted into dormitories with relatively simple modifications, such as adding central kitchens and movable furniture [1]. - In contrast, converting commercial buildings requires significant capital investment for room partitioning, mechanical system upgrades, and compliance with fire safety regulations [1]. - The expected application volume from existing hotels is anticipated to be higher than that from commercial properties due to the lower conversion costs [1]. Group 2: Key Factors for Success - The location of properties is crucial for the success of the scheme, with higher feasibility for conversions near schools and MTR stations [1]. - Popular areas for potential conversions include Hung Hom, the Western District of Hong Kong Island, and Sha Tin [1]. Group 3: Regulatory Considerations - The scheme includes a significant restriction where existing owners must notify the government and current tenants at least six months in advance if they intend to sell the dormitory property [2]. - Potential buyers must sign a declaration to continue operating the property as a dormitory, ensuring stability for students and schools [2]. - The scheme also prohibits the sale of dormitory rooms in a subdivided manner, although this restriction is not enforced through government land lease conditions, allowing some flexibility for investors [2]. Group 4: Market Impact and Projections - Currently, approximately 3.4% of hotel inventory has been converted to co-living or student dormitory use [2]. - The hotel supply is expected to grow minimally from 2025 to 2030, with an average annual growth rate of only 0.1% [2]. - The implementation of the "Urban Student Housing Scheme" is projected to further reduce overall hotel inventory, leading to an expected annual price increase of about 5% over the next three years [2].

Group 1 - CBRE Group is the global leader in the real estate service market, holding the 1 position in leasing, property sales, outsourcing, appraisal, and property management markets [1] - Financial institutions have consistently increased asset allocations to the real estate market over the past few years [1]

Economic Performance - In the first half of 2025, Guangzhou's economic performance improved compared to 2024, with positive trends in exports and retail sales [2] - From January to May 2025, Guangzhou's total retail sales reached 469.994 billion yuan, a year-on-year increase of 5.1% [3] Retail Innovation - Guangzhou has been recognized as a pilot city for retail innovation, supported by its strong commercial heritage and a large young population, with 1.68 million university students in 2024 [3] - The city is seeing significant investment in new commercial projects from leading operators like Swire, China Resources, and K11, enhancing the retail landscape [3] Shopping Center Upgrades - In 2026, Guangzhou will mark the fifth year of its initiative to build an international consumption center, with major shopping centers undergoing significant renovations to enhance competitiveness [4] - The focus of these upgrades is shifting from product-centered to consumer-centered experiences, emphasizing emotional value and spatial experience [4] Market Supply and Demand - In the second quarter, Guangzhou saw the addition of two community commercial projects, totaling 213,000 square meters, marking an 8.1% increase compared to the total supply in 2024 [5] - Retail property leasing activity is increasing, particularly in supermarkets and department stores, with notable changes in store formats and offerings [5] Rental Trends - In the first half of 2025, new retail brand leases accounted for 43% of total transactions, followed by dining (41%) and experiential formats (15%) [6] - Retail property rents in Guangzhou continued to decline, with a quarterly drop of 2.5% and a cumulative decrease of 3.6% in the first half of 2025, averaging 21.9 yuan per square meter per day [6] Future Developments - Four new retail projects, totaling approximately 300,000 square meters, are expected to enter the market in the second half of 2025, with a trend towards light asset operations [6]