Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q4 2009 Earnings Presentation
24 slides from Cbre's earnings presentation, Feb 4, 2010
Slide 1: Fourth Quarter 2009 Earnings Conference Call
Fourth Quarter 2009 Earnings Conference Call February 4, 2010 CB Richard Ellis Group, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations and financial performance. These statements should be considered
Slide 3: Conference Call Participants
Conference Call Participants Brett White President & Chief Executive Officer Bob Sulentic Group President & Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview
Business Overview Highlights: Fourth quarter year over year revenue increased modestly Asia Pacific fourth quarter revenue showed improved year over year performance EMEA growth solid in fourth quarter Outsourcing business continued to show solid fundamentals Recurring revenues now comprise approxim
Slide 5: Q4 CBRE Wins
Q4 CBRE Wins DENVER RREEF CBRE Capital Markets arranged financing of $104M for the recapitalization of four apartment communities. They were arranged through one of CBRE Capital Markets multifamily direct lending programs on behalf of RREEF. RUSSIA Evans Randall CBRE advised Evans Randall on the pur
Slide 6: Q4 2009 Performance Overview
Q4 2009 Performance Overview Q4 2008 Q4 2009 $223.2 million $199.0 million Normalized EBITDA3 17.4% 15.3% Normalized EBITDA Margin3 $121.5 million $167.1 million EBITDA GAAP ($4.70) Adjusted $0.37 GAAP $0.21 Adjusted $0.28 EPS1,2 GAAP ($1,089.5) million Adjusted $87.7 million GAAP $64.3 million Adju
Slide 7: Revenue Breakdown 4th Quarter 2009
Revenue Breakdown 4th Quarter 2009 Includes revenue from discontinued operations, which totaled $1.3 million for the twelve months ended December 31, 2008. 35% 33% 16% 7% 3% 2% 1% 3% ($ in millions) 2009 2008 % Change 2009 2008 1 % Change Leasing 455.8 443.6 3 1,348.2 1,710.7 -21 Property & Faciliti
Slide 8: Outsourcing Q4 2009
Outsourcing Q4 2009 Wins 11 renewals 6 expansions 7 new CAGR 13% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Successes: Square footage under management increased by 16% in 2009 Increasing new international business Increased vacancy fueling need for
Slide 9: US Market Statistics
US Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Spring 2010 preliminary -1.3 -18.7 -0.5 -0.8 -3.4 12.6% 12.3% 12.1% 10.5% Retail -85.9 -265.0 -38.1 -53.6 -83.1 14.8% 13.9% 13.5% 11.4% Industrial -21.6 -39.1 -0.2 -5.4 19.9 17.4% 16.3% 16.1% 14.0% Office 2010F 2009 4Q09 3Q09 2008
Slide 10: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing (48%) (22%) 7% (2%) $294.4 $289.5 $520.8 $271.6 Full Year $93.6 $99.8 Fourth Quarter $1,103.9 $864.6 2008 2009
Slide 11: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing (41%) (25%) 29% 3% $101.6 $104.5 $392.3 $294.9 $243.2 $144.4 Full Year $48.3 $62.1 Fourth Quarter 2008 2009
Slide 12: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing (14%) 88% (12%) 30% $21.5 $40.4 Fourth Quarter $104.0 $89.4 Full Year $47.5 $61.7 $213.8 $187.6 2008 2009
Slide 13: Development Services
Development Services Balance Sheet Participation $64.7 million co-invested in Development Services at quarter end. $10.7 million in recourse debt to CBRE and repayment guarantees. Includes revenue from discontinued operations of $1.3 million for the twelve months ended December 31, 2008. Includes EB
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CBRE’s co-investments totaled $102.2 million at December 31, 2009. CAGR 14% CAGR 17.2% ($ in millions) ($ in millions) YTD Revenue 140.7 127.5 20.1 13.9 0.4 161.2 141.4 2008 2009 Q4 Revenue 32.7 33.4 6.4 5.3 38.7 39.1 2008 2009 Assets Unde
Slide 15: Global Investment Management
Global Investment Management For the three months ended December 31, 2009, the Company recorded a net reversal of carried interest incentive compensation expense of $0.2 million compared to a net reversal of $25.8 million in the same period in 2008. For the twelve months ended December 31, 2009, the
Slide 16: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume1 Source: RCA Troubled Assets Radar, January 2010 Our Process Single-point service offering leveraging CBRE’s advisory, analysis and execution expertise Integrated solutions for owners, creditors, debtors, etc. through every stage of the
Slide 17: Required Debt Amortization and Maturity Schedule
Required Debt Amortization and Maturity Schedule $ millions 1,030 138 216 25 296 450 Approximately $357.7 million and $200.5 million of the revolver facilities mature in June 2011 and June 2013, respectively. As of 12/31/09, the outstanding revolver balance was $21.1 million. 0 0 1 1 - 200 400 600 8
Slide 18: Capitalization
Capitalization Net of original issue discount of $13.5 million and $13.8 million at December 31, 2009 and September 30, 2009, respectively. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $547.8 m
Slide 19: Capitalization
Capitalization Net of original issue discount of $13.5 million. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $547.8 million and $613.6 million at December 31, 2009 and 2008, respectively. Exclu
Slide 20: CBRE Bank Debt Covenants
CBRE Bank Debt Covenants Covenant Hurdle 12/31/08 9/30/09 12/31/09 Leverage Ratio <4.25x1 3.28 2.55 2.23 Interest Coverage Ratio >2.00x1 4.72 4.87 4.14 Effective March 24, 2009
Slide 21: Business Outlook
Business Outlook Summary: Increasing but still isolated signs of recovery Investment sales should show year over year growth in 2010 Leasing improvement may be too early to call a trend Outsourcing performance will likely remain impacted by low corporate spending and higher vacancy Global Investment
Slide 22: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 23: Reconciliation of Net Income (Loss) to Net Income, As Adjusted
Reconciliation of Net Income (Loss) to Net Income, As Adjusted Three Months Ended December 31, ($ in millions, except for share data) 2009 2008 Net income (loss) attributable to CB Richard Ellis Group, Inc. $64.3 $(1,089.5) Cost containment expenses, net of tax 7.4 16.4 Write-down of impaired assets
Slide 24: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Interest expense Three Months Ended December 31, ($ in millions) 2009 2008 Normalized EBITDA $199.0 $223.2 Adjustments: Integration costs related to acquisitions 1.2 3.8 Cost containment expenses 11.9 24.1 Write-down of impaired asse
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