CBRE(US:CBRE)2024-05-03 10:46Revenue Performance - Total revenue increased by 1% (flat in local currency), with asset management fees remaining flat[1] - Total revenue for Q1 2024 was $7,935 million, reflecting a 7.1% increase from $7,411 million in Q1 2023[38] - Consolidated revenue for the three months ended March 31, 2024, was $7,935 million, an increase from $7,411 million in the same period of 2023, representing a growth of 7.1%[92] - Net revenue for the same period was $4,444 million, up from $4,181 million year-over-year, indicating a growth of 6.3%[92] - Property Management revenue increased to $496 million in Q1 2024 from $464 million in Q1 2023, reflecting a growth of 6.9%[92] - Global Workplace Solutions (GWS) revenue rose to $5,809 million, compared to $5,338 million in the prior year, marking an increase of 8.8%[92] - CBRE's Facilities Management revenue for Q1 2024 was $4,067 million, up from $3,680 million in Q1 2023[29] Profitability and Income - Operating profit decreased by 14.0% (same local currency) to approximately $37 million, slightly better than expectations[1] - Net income attributable to CBRE Group, Inc. was $126 million, compared to $117 million in the previous year[10] - CBRE Group, Inc. reported a net income of $126 million for Q1 2024, an increase of 8.0% compared to $117 million in Q1 2023[31] - Core adjusted net income decreased to $241 million in Q1 2024, down 16.7% from $290 million in Q1 2023[38] - Core diluted earnings per share (EPS) for Q1 2024 was $0.78, a decline of 14.8% compared to $0.92 in Q1 2023[38] - Core EPS decreased by 15% to $0.78, reflecting the overall performance of the company[51] - Net income for Q1 2024 was $148 million, compared to $125 million in Q1 2023, showing a year-over-year increase of 18.4%[98] Assets and Management - Assets Under Management (AUM) totaled $144.0 billion, a decrease of $3.5 billion from year-end 2023, driven by lower asset values and adverse foreign currency movements[1] - Total assets as of March 31, 2024, were $22.964 billion, an increase from $22.548 billion at year-end 2023[14] - The in-process portfolio for the Real Estate Investments segment reached $18.8 billion, up $3.0 billion from year-end 2023, primarily due to a new fee-based industrial development project[49] Cash Flow and Liquidity - Free cash flow for Q1 2024 was $(560) million, an improvement from $(805) million in Q1 2023[38] - Free cash outflow for the first quarter of 2024 was $560 million, with cash used in operating activities amounting to $492 million[76] - Total liquidity as of March 31, 2024, was approximately $3.9 billion, including $1.04 billion in cash and $2.85 billion available under revolving credit facilities[76] - The company reported a net cash provided by financing activities of $1,192 million for Q1 2024, compared to $761 million in Q1 2023, indicating a significant increase of 56.7%[99] - The company’s cash and cash equivalents at the end of the period were $1,127 million, down from $1,320 million at the end of Q1 2023[99] Acquisitions and Investments - CBRE acquired J&J Worldwide Services, Inc. for a total consideration of $820 million, partially funded by a $500 million senior notes offering with a 5.5% interest rate due in 2029[3] - Integration and other costs related to acquisitions included $17.5 million in deal and integration costs, offset by a reversal of $21.7 million in previously recognized transaction-related bonus expense[92] - Costs related to acquisitions amounted to $40 million, while efficiency cost-reduction initiatives contributed $50 million[102] Other Financial Metrics - Non-core operating loss amounted to $71 million, primarily due to a decline in the company's investment in Altus Power, Inc.[2] - Core corporate operating loss increased by 5%, or roughly $5 million[2] - The net leverage ratio as of March 31, 2024, was 1.47x, significantly below the company's primary debt covenant of 4.25x[50] - Mortgage origination revenue surged by 34% (33% local currency), attributed to higher loan fees and interest earnings on escrow balances[54] - Global sales revenue declined by 11% (10% local currency), with the Americas experiencing a 15% drop, while EMEA saw an 8% increase driven by the U.K. and Spain[54]