CBRE(CBRE) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2025, was $8,910 million, an increase from$7,935 million in the same period of 2024, representing a growth of approximately 12.3%[117]. - Basic income per share attributable to CBRE Group, Inc. stockholders rose to $0.54 for the three months ended March 31, 2025, up from$0.41 in the same period of 2024[104]. - Net income attributable to CBRE Group, Inc. for Q1 2025 was $163 million, up from$126 million in Q1 2024, representing a 29.4% increase[118]. - Total segment operating profit for Q1 2025 was $560 million, significantly higher than$353 million in Q1 2024, marking a 58.7% increase[118]. - Revenue from the United States was $5.17 billion, an increase of 16.9$4.42 billion in the previous year[119]. Assets and Liabilities - As of March 31, 2025, CBRE MCI funded loans with unpaid principal balances of $46.6 billion, with$43.2 billion subject to loss sharing arrangements under the Fannie Mae DUS Program[89]. - Total leased assets increased to $2,157 million as of March 31, 2025, up from$1,458 million as of December 31, 2024, reflecting a significant growth in operating lease assets[85]. - The company had guarantees totaling $193 million as of March 31, 2025, primarily related to management and vendor contracts in overseas operations[92]. - Indirect tax liabilities amounted to$93 million as of March 31, 2025, reflecting an increase from $91 million as of December 31, 2024[98]. - Aggregate future commitments related to co-investment funds were$183 million as of March 31, 2025, with unfunded capital commitments of $345 million to consolidated projects[99]. Revenue and Expenses - The cost of revenue for the three months ended March 31, 2025, was$7,265 million, compared to $6,475 million for the same period in 2024, indicating an increase of approximately 12.2$100 million in revenue from contract liabilities during the three months ended March 31, 2025, which were included in the contract liability balance at December 31, 2024[111]. - Total contract liabilities as of March 31, 2025, were $403 million, up from$375 million as of December 31, 2024, representing an increase of approximately 7.5%[111]. - The provision for income taxes was $52 million for the three months ended March 31, 2025, compared to a benefit of$29 million for the same period in 2024, marking an increase of $81 million[101]. Segment Performance - Segment operating profit for the Advisory Services segment was$301 million for the three months ended March 31, 2025, compared to $232 million for the same period in 2024, reflecting a year-over-year increase of approximately 29.7$1,682 million for the Advisory Services segment for the three months ended March 31, 2025, compared to $1,480 million in the same period of 2024, a growth of approximately 13.6$132.94 per share for a total of 407 million during the three months ended March 31, 2025[105]. - The company combined its project management business with Turner & Townsend and created a new reportable segment, Project Management, in January 2025[112]. - The company acquired full ownership of Industrious on January 16, 2025, establishing a new business segment focused on flexible workplace solutions[112]. Costs and Remediation - Integration and other costs related to acquisitions amounted to 68 million in Q1 2025, compared to a benefit of $4 million in Q1 2024[118]. - Costs associated with efficiency and cost-reduction initiatives were$13 million in Q1 2025, down from $29 million in Q1 2024[118]. - The estimated liability for Telford Fire Safety Remediation as of March 31, 2025, was approximately$206 million, reflecting a slight increase from $204 million at the end of 2024[120]. - The company is winding down Telford Homes' legacy construction business and transitioning to a new entity, Telford Living, focusing on residential housing development in the UK[118]. - The company continues to assess remediation costs, which are highly complex and dependent on various external factors[121]. Compliance and Regulations - CBRE Group, Inc. emphasizes the importance of compliance with laws and regulations across its global operations, which may impact financial performance[218].