CBRE(US:CBRE)2024-07-25 10:49Revenue Growth - Revenue increased by 9% and net revenue increased by 11% compared to the previous year[23] - Net revenue for Q2 2024 was $4.971 billion, up from $4.478 billion in Q2 2023[52] - Total revenue for Q2 2024 reached $8.391 billion, compared to $7.720 billion in Q2 2023[52] - Global leasing revenue rose 9%, driven by a 12% increase in the Americas[26] - Mortgage origination revenue jumped 38%, led by a 20% increase in loan origination fees[27] - Property Management Revenue increased to $555 million in Q2 2024, up 15.4% from $481 million in Q2 2023, with net revenue rising to $532 million from $460 million[86] - Facilities Management Revenue grew to $4.127 billion in Q2 2024, a 12% increase from $3.686 billion in Q2 2023, with net revenue up 18% to $1.697 billion[89] - Project Management Revenue reached $1.817 billion in Q2 2024, up 4.4% from $1.740 billion in Q2 2023, with net revenue increasing 11% to $850 million[90] - Total Revenue for Q2 2024 was $8.391 billion, an 8.7% increase from $7.720 billion in Q2 2023, with net revenue up 11% to $4.971 billion[96] - Global Workplace Solutions (GWS) Revenue rose 9.5% to $5.944 billion in Q2 2024, with net revenue increasing 15.5% to $2.547 billion[99] - Advisory transaction revenue increased 5%, driven by a 13% rise in U.S. leasing revenue and a 20% increase in mortgage origination fees[94] Core EBITDA and Profitability - Core EBITDA for the quarter was $504 million[4] - Core EBITDA for Q2 2024 was $505 million[56] - Core EBITDA for the trailing twelve months ended June 30, 2024, was $2,103 million[82] - Core EBITDA for the six months ended June 30, 2024, was $930 million, compared to $1,036 million in the same period in 2023[78] - Operating income for Q2 2024 was $246 million, compared to $306 million in Q2 2023[45] - Total segment operating profit was $497 million, with Advisory contributing $315 million and Global Workplace Solutions contributing $233 million[58] - Net income attributable to CBRE Group, Inc. for Q2 2024 was $130 million, down from $201 million in Q2 2023[45] - Net income attributable to CBRE Group, Inc. for the six months ended June 30, 2024, was $256 million, compared to $318 million in the same period in 2023[78] - Core net income attributable to CBRE Group, Inc. stockholders, as adjusted, for the six months ended June 30, 2024, was $489 million, compared to $548 million in the same period in 2023[78] - Core diluted income per share attributable to CBRE Group, Inc., as adjusted, for the six months ended June 30, 2024, was $1.59, compared to $1.74 in the same period in 2023[78] - GAAP EPS decreased 34.2% to $0.42 in Q2 2024, while Core EPS declined 1.9% to $0.81[96][102] Cash Flow and Liquidity - Free cash flow for the second quarter was $220 million, with cash flow conversion improving to 64% on a trailing 12-month basis[34] - The company had approximately $3.7 billion of total liquidity as of June 30, 2024[13] - Cash and cash equivalents decreased to $928 million as of June 30, 2024, compared to $1,265 million at the end of 2023[67] - Net cash used in operating activities was $205 million for the six months ended June 30, 2024, compared to $756 million in the same period in 2023[68] - Net cash provided by financing activities for the six months ended June 30, 2024, was $1,242 million, compared to $1,075 million in the same period in 2023[69] - Free Cash Flow improved significantly to $220 million in Q2 2024, compared to a negative $86 million in Q2 2023[96] Assets and Liabilities - Assets Under Management (AUM) totaled $142.5 billion, a decrease of $1.5 billion from the previous quarter[6] - The servicing portfolio increased to more than $425 billion, up 3% for the quarter and 7% from a year ago[28] - Total assets increased to $23,462 million as of June 30, 2024, up from $22,548 million at the end of 2023[67] - Total liabilities increased to $14,273 million as of June 30, 2024, compared to $13,481 million at the end of 2023[67] - Goodwill increased to $5,667 million as of June 30, 2024, up from $5,129 million at the end of 2023[67] - CBRE's net leverage ratio was 1.58x as of June 30, 2024, well below the primary debt covenant of 4.25x[105] Capital Deployment and Acquisitions - The company deployed $1.3 billion of capital year-to-date across M&A and REI co-investments[24] - Acquisitions during the quarter totaled approximately $290.9 million, primarily for Direct Line Global[22] - Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired, amounted to $1,051 million for the six months ended June 30, 2024[68] - The company repurchased 0.6 million shares for $48.4 million in Q2 2024, with $1.4 billion remaining under the stock repurchase program[93] Costs and Expenses - Cost of revenue for Q2 2024 was $6.793 billion, up from $6.179 billion in Q2 2023[45] - Total costs and expenses for Q2 2024 were $8.145 billion, up from $7.423 billion in Q2 2023[45] - Integration and other costs related to acquisitions for the first quarter of 2024 were $17.5 million, offset by a reversal of $21.7 million in previously recognized transaction-related bonus expense[85] Portfolio and Development - The in-process portfolio ended Q2 2024 at $18.8 billion, unchanged from Q1 2024[54] - Global development operating loss totaled approximately $26 million in Q2 2024[54] - Capital expenditures for Q2 2024 were $66.8 million[42] Segment Performance - Total Core revenue for the period was $4,478 million, with Advisory contributing $2,021 million and Global Workplace Solutions contributing $2,205 million[58] - Total Consolidated revenue reached $7,720 million, driven by Services ($3,242 million) and Real Estate Investments ($256 million)[58] - Operating income for the period was $306 million, with Advisory contributing $238 million and Global Workplace Solutions contributing $157 million[58] - Turner & Townsend net revenue for the three months ended June 30, 2024, was $444 million, compared to $377 million in the same period in 2023[84]