Core Insights - Cohen & Steers (NYSE: CNS) has achieved a 9.8% growth rate in its base cash dividend over the past five years while maintaining strong assets under management (AUM) despite challenging macroeconomic conditions for commercial real estate (CRE) [1] Group 1: Company Performance - The company has compounded its base cash dividend at a rate of 9.8% over the last five years [1] - Cohen & Steers has maintained strength in assets under management during one of the worst macro backdrops for commercial real estate [1] Group 2: Market Strategy - Pacifica Yield focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

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][19] - The company raised its full-year core EPS outlook to $6.25 to $6.35 from $6.1 to $6.2, reflecting strong performance and confidence in the fourth quarter pipeline [7][19] - Free cash flow for the year is expected to be approximately $1.8 billion, with net leverage at 1.2 turns at quarter end [18] Business Line Data and Key Metrics Changes - Advisory Services saw a 16% revenue growth, driven by strong performance in leasing and sales, with U.S. leasing reaching its highest level for any third quarter, growing 18% [10][11] - Property sales business delivered a 28% revenue growth, with notable strength in office, industrial, and data centers [12] - Building Operations and Experience segment achieved 11% revenue growth, with significant contributions from data center hyperscalers [14] - Project Management segment revenue increased by 19%, supported by strong activity in the UK, Middle East, and North America [15] - Real Estate Investments segment operating profit was up 8%, with AUM ending the quarter at approximately $156 billion [16] Market Data and Key Metrics Changes - Combined revenue from Japan and India rose more than 30% to nearly $400 million, indicating strong growth potential in these markets [7] - Data center revenue reached nearly $700 million in Q3, a 40% increase compared to Q3 2024, contributing about 10% to overall EBITDA [6][7] Company Strategy and Development Direction - CBRE's strategy focuses on leveraging its scale across asset types, client types, and geographies to drive growth in resilient and cyclically favored areas [5] - The company is actively pursuing M&A opportunities while prioritizing capital allocation towards M&A and co-investments in Real Estate Investments [24][25] - CBRE is building sustainable businesses in the data center sector, anticipating significant growth in the coming years [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the commercial real estate market, expecting a steady recovery in investment sales over the next couple of years [30] - The company noted strong pipelines and activity levels in the fourth quarter, with expectations for continued growth in leasing and sales [34] - Management highlighted the importance of real estate as a strategic asset class for companies, indicating a shift in how occupiers view their real estate needs [78] Other Important Information - The company will no longer report net revenue but will focus on gross revenue in formal reporting [4][10] - CBRE is integrating its operations following acquisitions, which is expected to yield cost synergies and enhance service offerings [42] Q&A Session Summary Question: Did anything get pulled forward from Q4 due to Q3 strength? - Management indicated no significant pull forward was observed, but acknowledged tougher comps in Q4 [21][22] Question: Can you comment on the M&A pipeline? - Management confirmed that M&A remains a priority, with a focus on resilient business areas and well-operated targets [24][25] Question: What is the outlook for the CRE transaction market recovery? - Management expects a longer, slower recovery in the sales part of the business, with strong pipelines and pent-up demand from both buyers and sellers [30][32] Question: How are pipelines trending in the fourth quarter? - Pipelines are strong, with expectations for high-end EPS if transaction activity continues as anticipated [34] Question: Is the company appropriately staffed for growth? - Management stated they are appropriately staffed but are also looking to add talent where necessary to support growth [38][40] 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 [61] Question: How does the company view the Facilities Management market? - Management believes they have expanded their total addressable market (TAM) significantly through various acquisitions and strategic initiatives [67][69]

Financial Data and Key Metrics Changes - The company achieved fee revenue of $1,500,000,000, an increase of 4%, with organic fee revenue growing by 6% [13] - Adjusted EBITDA rose by 24% to $96,000,000, with adjusted EBITDA margin expanding by 100 basis points year over year [13] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [13][18] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1, marking the third consecutive quarter of double-digit growth [14] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [14][15] - The services business achieved organic revenue growth of 4%, with The Americas organic services fee revenue growing by 6% [16] Market Data and Key Metrics Changes - In The Americas, the pipeline of large capital markets deals is now two times the size it was one year ago [8] - RFPs in Americas Leasing and the Multi Market Occupier Group are up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [9] - The APAC Services business demonstrated strong retention rates and five new sizable contracts coming online in the first half of the year [10] Company Strategy and Development Direction - The company is focused on building strength for long-term growth, with disciplined investments unlocking new areas of organic growth [5] - A flat organizational culture allows the company to adapt swiftly to client needs and market shifts, fostering a culture of problem-solving and trust [6][7] - The management believes they are at the beginning of a multi-year recovery in commercial real estate, positioning the company for compelling value opportunities for investors [22] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has not materially impacted the sector, with strong demand for high-quality products continuing [28] - The company expects leasing growth in the mid-single digits for the full year, with capital markets growth anticipated to exceed the previous year's mid-single-digit growth rate [19] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [20] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [17] - The company completed a repricing of $1,000,000,000 of terminal debt, lowering the applicable interest rate by 25 basis points [18] - The balance sheet remains strong, with $1,700,000,000 in liquidity and no funded debt maturities until 2028 [18] Q&A Session Summary Question: Margin improvement and its drivers - Management indicated that the margin improvement was driven primarily by top-line strength, with stronger than expected leasing and services contributing to the results [25] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with 90-95% of clients moving forward with decisions [28] Question: Outlook for office leasing in a potential recession - Demand for office leasing remains strong, with long-term leases being signed and lease terms averaging 77 months [34] Question: Recruiting and retention efforts - The company has strengthened its talent pool significantly, hiring multiple capital markets and leasing teams over the past year [36] Question: Trends in industrial leasing amid trade discussions - The company has been outperforming in industrial leasing, with positive trends continuing despite tariff discussions [41] Question: Capital markets sensitivity to interest rates - Management noted that large investors have alternative borrowing methods, and many clients are closing deals regardless of financing market conditions [44] Question: EMEA market performance - EMEA is currently the weakest economy for the company, but there are signs of recovery, particularly in capital markets in the UK [50] Question: Balancing growth and deleveraging - The capital allocation strategy remains focused on growth while continuing to deleverage, with a higher percentage of capital allocated to growth investments [51]

Financial Data and Key Metrics Changes - The company achieved fee revenue of $1,500,000,000, an increase of 4%, with organic fee revenue growing by 6% [14] - Adjusted EBITDA rose by 24% to $96,000,000, with an adjusted EBITDA margin improvement of 100 basis points year over year [14] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [14][20] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1 [15] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [15][16] - Services revenue on an organic basis increased by 4%, with The Americas organic services fee revenue growing by 6% [17][18] Market Data and Key Metrics Changes - The Americas experienced a significant increase in RFPs, up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [10] - The APAC Services business showed strong retention rates and five new sizable contracts coming online in the first half of the year [11] - EMEA is considered the weakest economy among the three segments, but there are signs of recovery, particularly in capital markets [51] Company Strategy and Development Direction - The company is focused on long-term growth, having repaid $230,000,000 in debt since the new CEO took over and successfully refinancing and repricing debt multiple times [6][20] - The management emphasizes a disciplined investment approach to stabilize the business and unlock new areas of organic growth [6][11] - The company believes it is at the beginning of a multi-year recovery in commercial real estate, positioning itself to capitalize on market opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has not materially impacted the sector, with strong demand for high-quality products continuing [31] - The company expects leasing growth in the mid-single digits for the full year, with capital markets growth anticipated to exceed the previous year's mid-single-digit growth rate [21] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [22] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [19] - The company closed the quarter with $1,700,000,000 in liquidity and has no funded debt maturities until 2028 [20] Q&A Session Summary Question: Margin improvement and outperformance drivers - Management indicated that the margin improvement was driven primarily by top-line strength, with stronger than expected leasing and services contributing to the results [28] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with most clients continuing to make decisions on their existing timelines [31] Question: Outlook for office leasing in a potential recession - Management noted that demand for office leasing remains strong, with long-term leases being signed and lease terms increasing [37] Question: Recruiting and retention efforts - Management highlighted significant recruitment efforts, having hired multiple capital markets and leasing teams in the past year [38][39] Question: Trends in industrial leasing amid trade discussions - Management expressed confidence in the industrial leasing sector, noting positive trends and ongoing demand despite tariff discussions [43] Question: Rate outlook and its impact on capital markets - Management indicated that clients are still closing deals and financings, with many able to facilitate transactions through alternative means if necessary [46]

Financial Data and Key Metrics Changes - Bridge's business-related revenue was $82.5 million, increasing by 1.3% from the previous quarter, driven by inflows into workforce and affordable housing and debt strategies [5] - Fee-related revenue was also $82.5 million, up 3% from the last quarter, primarily due to the crystallization of carried interest for the open-end net lease strategy [5] - The lower other income line item was impacted by a one-time benefit of $1.9 million included in Q2 [5] Business Line Data and Key Metrics Changes - The multifamily workforce housing segment experienced rent growth of 3.3% quarter over quarter, with same-store revenue growth at 2% [34] - The commercial property price index from Green Street bottomed in late 2023 and is up 3% in 2024, indicating stabilization in real estate prices [4] Market Data and Key Metrics Changes - The real estate sector is showing signs of recovery, with more substantive dialogue with investors and increased transaction volumes [3][4] - The company noted that many asset classes are trading at or around all-time highs, including public equities and gold [3] Company Strategy and Development Direction - The company plans to invest heavily in its manufacturing and distribution teams to capitalize on the recovering market [7] - There is a focus on logistics as a significant growth area, with expectations of notable increases in fundraising in Q4 [24] Management's Comments on Operating Environment and Future Outlook - Management believes the long winter of real estate declines has bottomed, and the sector is beginning to re-emerge, albeit not in full force [3] - The management team expressed optimism about the outlook for commercial real estate over the next year, citing early signs of rising values and increased investor interest [4][7] Other Important Information - The company has managed expenses carefully over the last two years and is now positioned to lean into future growth opportunities [7] - The distribution team has increased headcount by 50% over the past two years, indicating a commitment to growth in this area [19] Q&A Session Summary Question: Can you provide more insight into the real estate market recovery and outlook? - Management acknowledged the complexity of the question but indicated that they are seeing positive signs in the market [9] Question: What is the expected improvement in fundraising for Q4 compared to Q3? - Management expects notable increases in logistics fundraising, potentially making Q4 numbers higher than Q3 [24] Question: How do you view operating leverage in relation to revenue and expense growth? - Management clarified that they have built a scaled national team and do not anticipate significant team growth, focusing instead on leveraging existing resources [18] Question: How will the shift towards institutional investors impact transaction revenues and management fee rates? - Management indicated that a greater shift to institutional investors may lead to slightly lower management fee rates and a change in revenue mix, with transaction fees becoming a smaller percentage of overall revenue [41][42]