Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q1 2010 Earnings Presentation
24 slides from Cbre's earnings presentation, Apr 29, 2010
Slide 1: First Quarter 2010 Earnings Conference Call
CB Richard Ellis Group, Inc. First Quarter 2010 Earnings Conference Call April 29, 2010
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 Chief Executive Officer Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview Highlights
Business Overview Highlights: Revenue and EBITDA growth indicates beginning stages of a commercial real estate recovery Investment sales rebounding – high profile assets starting to trade Leasing performance rose over 20% – U.S. unemployment showing first signs of improvement in March 2010 Outsourci
Slide 5: 2009 Capital Markets Rankings
2009 Capital Markets Rankings Billions Billions 2009 U.S. Non-Bank Loan Originations 2009 U.S. Investment Sales Source: 2009 investment sales volume based on Real Capital Analytics investment sales of $5 million and greater. Source: 2009 loan origination volume based on Mortgage Bankers Association.
Slide 6: Top U.S.-Based Firms 2009 Global Transaction Value
Top 10 U.S.-Based Firms1 2009 Global Transaction Value Source: National Real Estate Investor, April 2010 1. Excluding networks $ Billions 97.2 53.0 47.0 37.1 30.1 10.2 9.6 5.3 3.3 2.4 0 10 20 30 40 50 60 70 80 90 100 CBRE C&W JLL Studley Newmark KF G&E Marcus & Millichap Eastdil Secured Transwestern
Slide 7: Q1 CBRE Wins
Q1 CBRE Wins CHICAGO Block 37 CBRE was named Receiver of the retail and transit portions of Block 37 in Chicago. CBRE is handling the leasing and management of the center, while TCC has been retained for the development portion. AUSTRALIA Charter Hall CBRE sold 275 George Street, Brisbane for $154 m
Slide 8: Q1 2010 Performance Overview
Q1 2010 Performance Overview Q1 2009 Q1 2010 $54.1 million $87.5 million Normalized EBITDA3 6.1% 8.5% Normalized EBITDA Margin3 $38.4 million $75.0 million EBITDA GAAP ($0.14) Adjusted ($0.03) GAAP ($0.02) Adjusted $0.01 EPS1,2 GAAP ($36.7) million Adjusted ($7.5) million GAAP ($6.6) million Adjuste
Slide 9: Revenue Breakdown 1st Quarter 2010
Revenue Breakdown 1st Quarter 2010 ($ in millions) 2010 2009 % Change Property & Facilities Management 420.6 396.4 6 Leasing 327.7 267.1 23 Sales 117.4 77.8 51 Appraisal & Valuation 70.0 62.4 12 Investment Management 31.2 35.5 -12 Development Services 16.7 19.9 -16 Commercial Mortgage Brokerage 14.8
Slide 10: Outsourcing Q1 2010
Outsourcing Q1 2010 Wins 7 renewals 5 expansions 8 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 5% International business is strong Efficient property management remains a driver to
Slide 11: Market Statistics
Market Statistics -4.1 -3.2 -12.6 -19.1 -5.5 12.9% 12.7% 12.5% 11.6% Retail -41.7 -17.0 -92.7 -258.9 -78.7 14.4% 14.0% 13.9% 12.3% Industrial -20.0 -1.9 -17.8 -40.1 20.1 17.5% 16.6% 16.3% 14.7% Office 2010F 1Q10 1Q09 2009 2008 4Q10 F 1Q10 4Q09 1Q09 US Absorption Trends (in millions of square feet) U
Slide 12: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing (48%) (22%) 51% 20% 2010 $178.2 $214.3 $520.8 $271.6 Full Year $45.0 $68.0 First Quarter $1,103.9 $864.6
Slide 13: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing (41%) (25%) 16% 25% 2010 $55.5 $69.4 $392.3 $294.9 $243.2 $144.4 Full Year $23.2 $27.0 First Quarter
Slide 14: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing (14%) 123% (12%) 33% 2010 $9.5 $21.2 First Quarter $104.0 $89.4 Full Year $33.0 $43.9 $213.8 $187.6 2008 2009
Slide 15: Development Services
Development Services Balance Sheet Participation $65.4 million co-invested in Development Services at quarter end. $10.8 million in recourse debt to CBRE and repayment guarantees. 1. In Process figures contain Long-Term Operating Assets (LTOA), including $1.5 billion for 1Q 10, $1.4 billion for 4Q 0
Slide 16: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CBRE’s co-investments totaled $93.5 million at March 31, 2010. CAGR 14% CAGR 15.9% ($ in millions) Q1 Revenue 32.4 29.0 7.7 3.7 2.7 1.2 37.3 39.4 Q1 2009 Q1 2010 Assets Under Management 11.4 14.4 15.1 17.3 28.6 37.8 38.5 34.7 33.3 2002 200
Slide 17: Global Investment Management
Global Investment Management For the three months ended March 31, 2010, the Company recorded net carried interest incentive compensation expense of $1.1 million compared to a net reversal of $3.1 million in the same period in 2009. As of March 31, 2010, the Company maintained a cumulative remaining
Slide 18: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume 1 Source: RCA Troubled Assets Radar, April 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 p
Slide 19: Mandatory Amortization and Maturity Schedule
$ millions 1,052 30 132 25 410 450 1. Approximately $225.1 million and $333.0 million of the revolver facilities mature in June 2011 and June 2013 respectively. As of 3/31/10 the outstanding revolver balance was $20.1 million. Mandatory Amortization and Maturity Schedule 0 0 1 1 - 200 400 600 800 1,
Slide 20: Capitalization
Capitalization Net of original issue discount of $13.2 million and $13.5 million at March 31, 2010 and December 31, 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 $747.8 milli
Slide 21: Business Outlook
Business Outlook Summary: Investment sales expected to show year over year growth Leasing should show growth consistent with employment recovery Outsourcing seems to be past recession-induced headwinds and should show modest growth for the rest of 2010 Global Investment Management and Development Se
Slide 22: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 23: Reconciliation of Net Loss to Net Income (Loss), As Adjusted
Reconciliation of Net Loss to Net Income (Loss), As Adjusted ($ in millions, except for share data) 2010 2009 Net loss attributable to CB Richard Ellis Group, Inc. (6.6) $ (36.7) $ Cost containment expenses, net of tax 4.5 4.8 Write-down of impaired assets, net of tax 2.8 3.7 Amortization expense re
Slide 24: Reconciliation of Normalized EBITDA to EBITDA to Net Loss
Reconciliation of Normalized EBITDA to EBITDA to Net Loss ($ in millions) 2010 2009 Normalized EBITDA 87.5 $ 54.1 $ Adjustments: Integration costs related to acquisitions 1.0 1.7 Cost containment expenses 7.0 7.9 Write-down of impaired assets 4.5 6.1 EBITDA 75.0 38.4 Add: Interest income 1.8 2.3 Les
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