Financial Data and Key Metrics Changes - The company has lowered its expectations for 2023 core EPS to a mid-30% decrease from the previously anticipated 20% to 25% decline, primarily due to interest rate-sensitive businesses [71][98] - The resilient and secularly favored businesses generated over $1.5 billion of SOP over the last 12 months and are expected to represent over 60% of CBRE's SOP for the full year 2023 [73][98] - Full year free cash flow is tracking below prior expectations due to lower earnings and timing-related cash uses, but significant improvement in 2024 free cash flow generation is anticipated [96] Business Line Data and Key Metrics Changes - Advisory Services net revenue fell 17% and SOP declined 35% year-over-year, with property sales revenue decreasing by 38% [74][75] - GWS posted strong results with net revenue and SOP increasing by 14% and 15% respectively, driven by growth in facilities management and project management [77][78] - REI segment SOP totaled just $7 million, reflecting few U.S. development asset sales and lower operating profit in the Investment Management business [86] Market Data and Key Metrics Changes - Leasing revenue declined by 23% in the U.S., with the number of leases completed down only 10%, indicating a cautious market [76] - APAC showed the best relative performance in advisory services with revenue up 3%, led by strong growth in Japan [74] - Economic uncertainty continues to delay occupier decision-making, particularly for large office and industrial deals [75] Company Strategy and Development Direction - The company is focused on co-investments in value-add opportunistic and development strategies, committing over $350 million year-to-date [72] - M&A opportunities are being evaluated across all business lines, with a focus on resilient and cyclically favored areas, while maintaining discipline around pricing [93][104] - The company is committed to reducing costs across its lines of business, targeting $150 million in reductions primarily in transactional areas [96] Management's Comments on Operating Environment and Future Outlook - Management believes the recovery in capital markets will take longer than initially anticipated, now expected in the second half of next year [71][32] - There is significant capital on the sidelines ready to enter commercial real estate once interest rates stabilize and valuations are perceived to have bottomed out [9][32] - The company anticipates that 2023 will be the trough for earnings, with meaningful growth expected in 2024 [99] Other Important Information - The company has committed almost $200 million year-to-date in co-investment capital to support higher return strategies [88] - The GWS pipeline reached a new record, with one-third coming from first-generation outsourcing clients, reflecting increased interest in reducing occupancy costs [84] Q&A Session Summary Question: What are the revenue trends between office versus industrial leasing? - Office leasing is performing in-line with expectations, with a mid-15% decline anticipated, while industrial leasing is slightly below expectations due to large occupiers resetting their space [2][10] Question: What is the outlook for leasing revenues in 2024? - Management does not expect a decline in leasing revenues next year to be greater than this year, with confidence in GWS delivering double-digit growth [10][14] Question: How is the company approaching M&A in the current environment? - The company is looking broadly across its business for M&A opportunities but is being disciplined about pricing due to increased costs of capital and valuation gaps [93][104] Question: What is the impact of economic uncertainty on GWS growth? - Economic slowdowns typically lead companies to focus on cost savings, which can benefit GWS as businesses seek to outsource real estate operations [51][52] Question: How does the company view the macroeconomic environment affecting its outlook? - Management believes that uncertainty around interest rates is a significant factor affecting decision-making and that a recovery in transactions is expected in the second half of next year [31][45]

CBRE Group, Inc. is a Delaware corporation. References to "CBRE," "the company," "we," "us" and "our" refer to CBRE Group, Inc. and include all of its consolidated subsidiaries, unless otherwise indicated or the context requires otherwise. In 2022, we generated revenue from a highly diversified base of clients, including more than 95 of the Fortune 100 companies. We have been an S&P 500 company since 2006 and are currently ranked #135 on the Fortune 500. We have been voted the most recognized commercial rea ...

Financial Data and Key Metrics Changes - The company expects full year 2023 core EPS to decline by 20% to 25% compared to last year's record level, primarily due to a delayed recovery in capital markets [69][70] - Free cash flow is now anticipated to be in the range of $600 million to $800 million, down from an original expectation of over $1 billion [76][77] - The company raised $1 billion through a senior unsecured bond offering and an additional $350 million from refinancing and upsizing its euro term loan, enhancing its capacity to invest while maintaining an investment-grade balance sheet [53][54] Business Line Data and Key Metrics Changes - Global Workplace Solutions (GWS) net revenue increased by 13% and SOP grew by 7% in the quarter, driven by strength in the local business in the UK and expansion into the U.S. [50][51] - Advisory net revenue fell by 21%, with capital markets businesses seeing a revenue decline of 44% [70][71] - The local business is expected to grow by over 20% this year, with a pipeline that remains elevated, more than 20% above the Q2 2022 level [51][52] Market Data and Key Metrics Changes - In the Americas, property sales revenue fell by 49%, reflecting limited credit availability and a gap between buyer and seller expectations [48] - The office sector was the weakest, with revenue down 30%, while industrial revenue was down only 10% [48] - Revenue in Japan increased by 16% in local currency year-to-date, becoming the most profitable advisory market outside the U.S. [71] Company Strategy and Development Direction - The company is focused on pursuing M&A opportunities that enhance its ability to serve clients and are well-run companies [85][86] - Investments are being made in broker recruitment and land acquisitions for future development, with an expectation to invest more in these areas compared to previous quarters [54][55] - The company anticipates a mild recession occurring at least one quarter later than previously thought, followed by a recovery beginning next year [46][68] Management's Comments on Operating Environment and Future Outlook - Management noted that the economy performed better than anticipated in terms of GDP and employment growth, but interest rate increases pressured capital flow-sensitive businesses [45][46] - There are signs of improving investor sentiment, with many exploring opportunities to take advantage of the reset in pricing for 2024 commitment plans [68] - The company expects to see a recovery in capital markets next year, which will positively impact its business [61][98] Other Important Information - The company did not repurchase any shares in Q2 but has completed $100 million in buybacks in July [53][54] - The company has a robust M&A pipeline and is evaluating multiple opportunities in the range of $1 billion [53][54] Q&A Session Summary Question: What is the outlook for M&A opportunities? - The company is pursuing M&A opportunities that enhance client service and involve well-run companies, with a strong pipeline across its portfolio [85][86] Question: How is the company managing its cost structure? - The company is consistently focused on cost management, balancing fixed costs with investments that drive future growth [30][31] Question: What is the outlook for the capital markets? - The company expects a delayed recovery in capital markets, with clarity needed on interest rates and debt availability for improved performance [61][98]

| --- | --- | |----------|-------------------------------------------------| | | | | | | | Contents | | | Page # | | | 5 | | | 6 | Emma Giamartino, CFO Remarks | | 11 | | | 16 | Non-GAAP Measures and Definitions | | 19 | Supplemental Slides, GAAP Reconciliation Tables | Forward-Looking This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the economic outlook, our business ...

Financial Performance - For the three months ended June 30, 2023, total revenue was $7,719,863, a slight decrease from $7,771,278 in the same period of 2022, representing a year-over-year decline of approximately 0.7%[209] - Total net revenue for the three months ended June 30, 2023, was $4.48 billion, a decrease of 0.7% compared to $4.80 billion for the same period in 2022[217] - Consolidated net income for the six months ended June 30, 2023, was $318.3 million, down from $879.6 million for the same period in 2022, despite revenue remaining stable at $15.1 billion[221] - Core EBITDA for the three months ended June 30, 2023, was $503.5 million, a decrease from $918.6 million in the same period of 2022[217] Revenue Segments - The Advisory Services segment experienced a significant decline of 21.4% in revenue, primarily due to adverse macroeconomic conditions[217] - The Global Workplace Solutions (GWS) segment saw a revenue increase of 10.6%, driven by new client acquisitions and service expansions[217] - Contractual revenue has increased primarily due to growth in the occupier outsourcing business, which is expected to partially offset negative impacts from macroeconomic conditions[205] Costs and Expenses - Operating, administrative, and other expenses increased by $42.9 million, or 1.9%, for the six months ended June 30, 2023, attributed to growth in the GWS segment and higher professional fees[222] - The total costs and expenses for the three months ended June 30, 2023, were $7.42 billion, representing 96.1% of total revenue[217] - Interest expense, net of interest income, rose by $24.5 million, or 132.1%, for the three months ended June 30, 2023, due to higher interest rates and increased borrowings[220] - Depreciation and amortization expenses decreased by $8.0 million, or 4.9%, for the three months ended June 30, 2023, compared to the prior year[218] Market Conditions - The company continues to face high inflation, which has increased compensation expenses and construction material costs, while some business segments are insulated against inflation through price adjustments in service contracts[204] - The appreciation of the U.S. dollar against foreign currencies has impacted revenue and earnings, particularly in the Real Estate Investments and Global Workplace Solutions segments[208] - Fluctuations in foreign currency exchange rates may adversely affect the company's financial condition and operating results, complicating period-to-period comparisons[211] - The company reported a 1.4% negative impact on total revenue due to foreign currency translation, primarily from the British pound, Australian dollar, and Canadian dollar[217] Strategic Initiatives - The company has accrued deferred purchase and contingent considerations totaling $565.8 million as of June 30, 2023, impacting future operating income and net income due to transaction-related expenditures[207] - The company has strategically expanded its business through acquisitions, which have historically enhanced service capabilities and market position[206] - The company has implemented cost reduction efforts since 2022 to improve financial performance amid challenging market conditions[205] Risks and Compliance - The investment management business's ability to maintain and grow assets under management is critical for achieving desired investment returns for investors[361] - Fluctuations in net earnings and cash flow may arise from poor performance in investment programs, particularly in real estate investments[361] - The company faces potential declines in lending activity from U.S. GSEs, impacting mortgage servicing revenue from the commercial real estate mortgage market[361] - Regulatory changes in U.S. and international law, especially in politically unstable regions, could affect operations[361] - The company is exposed to liabilities related to real estate advisory and property management activities, necessitating sufficient insurance coverage[361] - Organizational challenges associated with the company's size may impact its ability to retain and attract key personnel[361] - The company must manage leverage under debt instruments, which could lead to increased borrowing costs if credit ratings are downgraded[361] - Cybersecurity threats pose risks to the company's information technology networks, including potential asset misappropriation and operational disruption[361] - Compliance with global laws and regulations, including data privacy and protection, is essential for the company's operations[361] Brand Recognition - The company has been recognized as the most recognized commercial real estate brand for 22 consecutive years and has been included in the Dow Jones World Sustainability Index for four years[200] - Approximately 46 currencies contributed to 7.7% of total revenue for the three months ended June 30, 2023, indicating significant international exposure[209]

CBRE Group (NYSE:CBRE) Q1 2023 Earnings Conference Call April 26, 2023 8:30 AM ET Company Participants Brad Burke - SVP, IR Bob Sulentic - President, CEO Emma Giamartino - CFO Conference Call Participants Chandni Luthra - Goldman Sachs Steve Sakwa - Evercore ISI Anthony Paolone - JPMorgan Jade Rahmani - KBW Michael Griffin - Citi Stephen Sheldon - William Blair Patrick O'Shaughnessy - Raymond James Operator Greetings, and welcome to CBRE's First Quarter 2023 Earnings Conference Call. At this time, all parti ...

| --- | --- | |----------------|-------| | | | | | CBRE | | | | | | | | | | | April 27, 2023 | | | Q1 2023 CBRE | | | | | | | | | Earnings Call | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2023 EARNINGS CONFERENCE CALL Statements 2023 CBRE, Inc. |3 Conference Call Participants President & Chief Executive Officer Chief Financial Officer Senior Vice President, Investor Relations & Strategic Finance Q1 2023 EARNINGS CONFERENCE CALL Results Summary － Performance relative to expectations led by cyclica ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR CBRE GROUP, INC. (Exact name of registrant as specified in its charter) ___________________________________________________________ Delaware 94-3391143 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of th ...

Commission file number 001-32205 CBRE GROUP, INC. None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or ...

CBRE Group Inc. (NYSE:CBRE) Q4 2022 Earnings Conference Call February 23, 2023 8:30 AM ET Company Participants Bob Sulentic - President, Chief Executive Officer Emma Giamartino - Chief Financial Officer Brad Burke - Senior Vice President, Investor Relations Conference Call Participants Anthony Paolone - JP Morgan Chandni Luthra - Goldman Sachs Steve Sakwa - Evercore ISI Michael Griffin - Citi Jade Rahmani - KBW Patrick O’Shaughnessy - Raymond James Operator Greetings and welcome to the CBRE Q4 2022 earning ...