Financial Data and Key Metrics Changes - The company reported third quarter GAAP net income attributable to common stockholders of $1 million or $0.01 per share, distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share [3][16] - Current liquidity stands at $280 million, with $87 million in unrestricted cash [4][18] - GAAP net book value decreased to $7.53 per share from $7.65 in the previous quarter, while undepreciated book value decreased to $8.68 from $8.75 per share [17] Business Line Data and Key Metrics Changes - The loan portfolio currently stands at $2.4 billion across 85 loans, with an average loan balance of $28 million [11] - The watchlist portion of the loan portfolio is 8%, comprised of five loans totaling $182 million, down from $411 million at the start of 2024 [11][8] - The company achieved net positive loan originations for the second consecutive quarter, originating 10 loans totaling $224 million during the third quarter [6][10] Market Data and Key Metrics Changes - The commercial real estate markets are showing continued improvements, with tightening credit and lending spreads contributing to increased loan inquiries [5][6] - The CMBS and CLO markets remain highly active, with solid new issuance growth [6] Company Strategy and Development Direction - The company aims to grow its loan book to approximately $3.5 billion, with a focus on resolving watchlist loans and increasing loan originations [8][9] - The strategy includes preparing for a new CLO securitization and generating liquidity through the sale of real estate owned assets [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing improvements in the commercial real estate market and a favorable interest rate environment [5][6] - The company anticipates that the coming quarters will be among the most productive, driven by new loan originations and progress on watchlist loans [9][15] Other Important Information - The company recorded a GAAP impairment of $2.5 million related to a multi-tenanted office equity property, which had no impact on undepreciated book value [16] - The company is actively marketing two real estate owned office properties for sale [12][39] Q&A Session Summary Question: Update on liquidity position post-quarter date originations - Management indicated liquidity is around $100 million in cash, with future originations expected to come from asset resolutions [20] Question: Pace of Q4 originations - Management expects a similarly active pace for Q4 originations, with a growing pipeline and increased loan inquiries [21] Question: Thoughts on net lease portfolio and potential growth - Management is satisfied with current assets and has not explored entering the triple net market, focusing instead on existing assets [24] Question: Impact of potential Fed rate cuts on demand - Management noted that the market sentiment is improving, with a dovish Fed contributing to increased transaction sales volume [25][26] Question: Growth of loan book and REO impact - Management believes they are at a point to grow the loan book, with increased momentum in loan originations [30][31] Question: Contribution of San Jose Hotel to distributable earnings - Management anticipates a sub-$10 million NOI for the hotel, with significant events planned for 2026 [32][34] Question: Details on new CLO issuance - Management could not provide specifics on the size and timing of the expected CLO issuance [38] Question: Second office property for sale - The second office property for sale is one of the Long Island City properties [39]

Financial Data and Key Metrics Changes - CBRE reported a 34% growth in core EPS and a 19% increase in core EBITDA for Q3 2025, exceeding expectations across the board [9][15] - The company raised its full-year core EPS outlook to $6.25 to $6.35 from a previous range of $6.10 to $6.20, reflecting strong performance and confidence in the fourth quarter [8][15] Business Line Data and Key Metrics Changes - Advisory services revenue grew by 16%, driven by strong performance in leasing and sales [10] - Global leasing revenue increased by 17%, with U.S. industrial leasing up by 27% and data center leasing more than doubling year-over-year [10][11] - Property sales revenue rose by 28%, with notable strength in office, industrial, and data centers [10] - The Building Operations & Experience segment saw an 11% revenue growth, supported by data center hyperscalers and expansions in technology and healthcare sectors [11] - Project management revenue increased by 19%, with broad-based growth across regions [12] - Investment management raised $2.4 billion in new capital, with AUM reaching approximately $156 billion, up $500 million for the quarter [13] Market Data and Key Metrics Changes - Revenue from Japan and India combined rose more than 30% to nearly $400 million, indicating strong growth potential in these markets [8] - The U.S. office leasing market showed a resurgence, particularly in gateway cities like New York and San Francisco [66] Company Strategy and Development Direction - CBRE's strategy focuses on leveraging its scale across various asset types, client types, and geographies to drive growth [7] - The company is actively pursuing M&A opportunities while prioritizing capital allocation towards resilient business areas [20] - There is a strong emphasis on enhancing relationships with occupiers to drive cross-selling opportunities across different service lines [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a steady recovery in the commercial real estate market, driven by pent-up demand from both buyers and sellers [24][25] - The company anticipates continued strong activity in the fourth quarter, although it acknowledges tougher year-over-year comparisons [18][27] - Management highlighted the importance of real estate as a strategic asset for companies, which is expected to drive ongoing demand [67] Other Important Information - The company will no longer report net revenue but will focus on gross revenue in its formal reporting [4] - CBRE expects to generate approximately $1.8 billion of free cash flow for the year, with net leverage at 1.2 turns [15] Q&A Session Summary Question: Did anything get pulled forward from Q4? - Management indicated no significant pull forward across segments, but acknowledged tougher comparisons in Q4 [18] Question: Can you comment on the M&A pipeline? - Management confirmed that M&A remains a priority, with a focus on well-operated targets that can benefit from CBRE's platform [20] Question: Where are we in the CRE transaction market recovery? - Management expects a longer, slower recovery in the sales segment, with strong pipelines and pent-up demand from both buyers and sellers [24] Question: How is deal activity in Q4? - Pipelines are strong, with expectations for continued strong activity in leasing and sales [27] Question: Are you appropriately staffed in the advisory segment? - Management stated they are appropriately staffed but are also looking to add talent where necessary [31] Question: What is the outlook for the BOE segment? - Management reported strong pipelines and expects elevated sales volume in Q4, with revenue growth anticipated in the second half of next year [53] Question: What is the ultimate TAM for facilities management? - Management noted that the TAM has consistently expanded due to various acquisitions and the growing importance of data centers [59] Question: What are the constraints for data center development sites? - The primary constraint is access to power, which has become increasingly competitive [63] Question: How is the leasing market performing? - Management observed broad-based growth in office leasing, with a resurgence in gateway markets [66] Question: What is the outlook for EBITDA margins? - Management expects steady margins in advisory and continued margin expansion in BOE and project management segments [77]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $23.1 million or $0.19 per share for the second quarter [4] - Adjusted distributable earnings were $22.9 million or $0.18 per share, compared to $3.4 million or $0.03 per share in distributable earnings [21] - Current liquidity stands at $325 million, with $106 million in unrestricted cash [4][21] - GAAP net book value decreased to $7.65 per share from $7.92 per share in the previous quarter, while undepreciated book value remained unchanged at $8.75 per share [22][23] Business Line Data and Key Metrics Changes - The loan portfolio grew by approximately 3% or $70 million on a net basis, excluding the impact of the San Jose loan moving to REO [14] - The company experienced positive net loan originations during the quarter, with six loans totaling $114 million closed or in execution [12] - The REO portfolio currently consists of eight properties with an aggregate undepreciated gross book value of $379 million [18][20] Market Data and Key Metrics Changes - Market conditions showed notable improvement with a decline in volatility, and commercial real estate debt markets remained largely unaffected by recent headlines [7] - Credit and lending spreads have stabilized, and loan inquiries have increased steadily [7] - The CMBS market has returned to normal and is quite active, with bank warehouse lenders providing competitive financing [7] Company Strategy and Development Direction - The company aims to continue reducing exposure to watch list loans and managing the resolution of REO assets [6][13] - Plans include making operational improvements to the San Jose Hotel ahead of significant events in the Bay Area, with a potential sale in 2026 [9][30] - The focus is on maximizing the value of existing properties to fuel loan portfolio growth over the next several quarters [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the CRE market's continued progress due to recent improvements in market conditions [7] - The company anticipates an increase in repayment volume related to loan payoffs and REO resolutions in the coming quarters [15][61] - Management noted that the current lending environment is different from previous cycles, with better debt yields and a focus on new construction takeout [46][49] Other Important Information - The company repurchased 561,000 shares at an average price of $5.19, trading at a roughly 40% discount to its undepreciated book value [12] - Specific CECL reserves of approximately $19.5 million were recorded during the quarter related to the San Jose Hotel and Santa Clara multifamily predevelopment loan [21][24] Q&A Session Summary Question: Can you provide details on value-added activities for the REO portfolio? - Management discussed the need for significant capital investment in the San Jose Hotel to address deferred maintenance and prepare for upcoming events [30] Question: How has the bridge loan underwriting changed post-COVID? - Management noted lessons learned from the previous bubble market and emphasized improved borrower quality and property structures in the current lending environment [40][46] Question: What is the expected trajectory for repayments throughout 2025? - Management indicated an expected uptick in repayments over the second half of the year, with significant positions in sight for resolution [61] Question: How does the new Texas legislation on HFCs affect existing and future loans? - Management stated that the new legislation would have no significant impact on their strategy and execution regarding REOs [68] Question: Can you elaborate on the cross-collateralized preferred equity investments? - Management confirmed that the preferred equity position originated during the quarter is cross-collateralized across six properties in Phoenix, with an occupancy rate of about 92% [84]