Cbre Group Inc · NYSE:CBRE
Cbre — Q1 2023 Earnings Presentation
34 slides from Cbre's earnings presentation, Apr 27, 2023
Slide 1: Q1 2023 CBRE Earnings Call
CBRE Q1 2023 CBRE Earnings Call
Slide 2: Contents
Contents Page # Section 5 Bob Sulentic, CEO Remarks 6 Emma Giamartino, CFO Remarks 10 Appendix 15 Non-GAAP Measures and Definitions 18 Supplemental Slides, GAAP Reconciliation Tables
Slide 3: Forward-Looking Statements
Q12023 EARNINGS CONFERENCE CALL Forward-Looking Statements 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 our earnings outlook. These statements involve ris
Slide 4: Conference Call Participants
Q12023 EARNINGS CONFERENCE CALL Conference Call Participants i Bob Sulentic Emma Giamartino Brad Burke President & Chief Financial Officer Senior Vice President, Chief Executive Officer Investor Relations & iW) Strategic Finance 2023 CBRE, Inc. | 4
Slide 5: Consolidated Results Summary
Q12023 EARNINGS CONFERENCE CALL Consolidated Results Summary — Despite challenging conditions in the commercial real estate sector, our first quarter results slightly exceeded our expectations — Performance relative to expectations led by cyclically resilient elements of our business and cost manage
Slide 6: Advisory Services
Q12023 EARNINGS CONFERENCE CALL Advisory Services - $ in millions, totals may not sum due to rounding Net Revenue $2,231 1,831 $773 $ $709 $765 $438 Qt22 Q123 @ ™ Advisory Leasing 1._ Includes Property Management, Valuation and Loan Servicing 2. Includes Property Sales and Commercial Mortgage Origin
Slide 7: Global Workplace Solutions (GWS)
Q12023 EARNINGS CONFERENCE CALL GWS net revenue grew by 14%, with both Facilities Management and Project Management growing by Global Workplace double digits Solutions (G VV S) — Strong growth was driven by several of the large contract wins achieved last year $in millions, totals may not sum due to
Slide 8: Real Estate Investments
Q12023 EARNINGS CONFERENCE CALL Re al Estate Investment Management Development $ Millions $ Millions Investments other , Revenue, $18 Other $133 Revenue, $15 — REI Q1SOP decline mostly attributable to difficult comparisons; Q1 2022 j, 61 $76 $107 represents 2" highest ever . see s $90 gmt. Mgmt. $43
Slide 9: Capital Allocation and Outlook
Q12023 EARNINGS CONFERENCE CALL Capital Allocation and Outlook Capital Allocation: Expect to deploy more capital in next 12 months vs. prior 12 months — M&A pipeline includes multiple large, attractive opportunities which could transform CBRE’s existing offerings — If unable to convert larger pursui
Slide 10: Appendix
Appendix
Slide 11: Revenue
Q12023 EARNINGS CONFERENCE CALL Revenue $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $274 $7,411 ($60) ($252) 1.1% vs. Q1V22 (+4.4% LC) QT22 Sales Leasing Rest of Adv. OMSRs Gws REI Pass-through QT23 & Other 2023 CBRE,
Slide 12: Core EBITDA
Q12023 EARNINGS CONFERENCE CALL Core EBITDA $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $27 19, ($36) (27.2%) vs. QV22 (25.1% LC) 122 Adv. Ex OMSRs OmsRs GwWs REI Corp. Overhead Q123 2023 CBRE, Inc. | 12
Slide 13: TTM Q1'23 Revenue
Q12023 EARNINGS CONFERENCE CALL TTM Q123 Revenue $in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue TTM Q123 $3,808 $2,270 $489 $315 $749 $1,858 $20,383 $458
Slide 14: Q1'23 Revenue
Q12023 EARNINGS CONFERENCE CALL Q1’23 Revenue $in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue QT23 $709 $367 $71 $77 $166 $464 $5,338 $76 $147 $7,4
Slide 15: Non-GAAP Measures And Definitions
Non-GAAP Measures And Definitions
Slide 16: Non-GAAP Financial Measures
NON-GAAP MEASURES AND DEFINITIONS Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: i Netrevenue i. Core EBITDA iii. Business line operating profit/loss iv. Segment operating profit on revenue and net revenue margins v. Net debt vi.
Slide 17: Definitions
NON-GAAP MEASURES AND DEFINITIONS Definitions Core EBITDA: Core EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to ce
Slide 18: Supplemental Slides, GAAP Reconciliation Tables
Supplemental Slides, GAAP Reconciliation Tables
Slide 19: Debt Maturities
– – – – 9 1209 433 600 500 Senior Notes - 2.500% Senior Notes - 4.875% Euro Term Loan Turner & Townsend Revolver CBRE Revolver
Slide 20: Debt and Leverage
SUPPLEMENTAL SLIDES Debt and Leverage $in millions, totals may not sum due to rounding 1. Excludes warehouse facilities for loans originated on behalf of the FHA and other government sponsored enterprises outstanding, which are non-recourse to CBRE Group, Inc. March 31, 2023 Cash $1,231 Revolving Cr
Slide 21: Liquidity
SUPPLEMENTAL SLIDES Liquidity $in millions, totals may not sum due to rounding March 31, 2023 Cash $1,231 Revolving Credit Facilities Available“ 2,455 Total Liquidity $3,686 2023 CBRE, Inc. |21 1. Includes outstanding capacity on 120M GBP Turner & Townsend revolver with an additional accordion optio
Slide 22: Summarized Cash Flow Activity
SUPPLEMENTAL SLIDES Summarized Cash Flow Activity $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Net cash used in operating activities (745) (394) Net cash used in investing activities (115) (96) Net cash provided by (used in) financing activities 761 (209) E
Slide 23: Other Financial Metrics
SUPPLEMENTAL SLIDES Other Financial Metrics Totals may not sum due to rounding Three Months Ended March 31, December 31, September June 30, March 31, (Sin millions) 2023 2022 30, 2022 2022 2022 OMSR Gains $16.7 $28.7 $34.7 $35.4 $35.2 Amortization $36.5) $(38.5) $(39.4) $(44.6) $41.1) Q12023 over Q4
Slide 24: Reconciliation of Net Income to Core Adjusted Net Income and Core EPS
SUPPLEMENTAL SLIDES Reconciliation of Net Income to Core Adjusted Net Income and Core Earnings Per Share $in millions, except for per share data, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Net income attributable to CBRE Group, Inc. $116.9 $392.3 Plus / minus: Non-cash
Slide 25: Reconciliation of Net Income to Core EBITDA
SUPPLEMENTAL SLIDES Reconciliation of Net Income to Core EBITDA $in millions, totals may not sum due to rounding Three Months Ended March Twelve Months 31, Ended March 31, 2023 2022 2023 Net income attributable to CBRE Group, Inc. $T16.9 $392.3 $1,132.0 Net income attributable to non-controlling int
Slide 26: Reconciliation of Resilient and Non-Resilient to Segment Operating Profit
SUPPLEMENTAL SLIDES Reconciliation of Resilient and Non-Resilient to Segment Operating Profit $ in millions, totals may not sum due to rounding TTM Q12023 Segment Operating Profit Advisory Services Global Workplace Solutions Real Estate Investments 1,714 926 483 Total Reportable Segment (Business) O
Slide 27: Reconciliation of Revenue to Net Revenue
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Global 4 Property Loan ‘ Property Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue TTM Q122 $3,559 $3,017 $706 $311 $755
Slide 28: Reconciliation of Revenue to Net Revenue
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Global 4 Property Loan ‘ Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue Q122 $773 $620 $145 $74 $181 $4,806 $133 $151 $
Slide 29: Reconciliation of Revenue to Net Revenue
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Revenue $7,411 $7,333 Less: Pass through costs also recognized as revenue 3,230 2,957 Net Revenue $4,181 $4,376 2023 CBRE, Inc. | 29
Slide 30: Reconciliation of Revenue to Net Revenue and Net Margin
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Advisory Revenue $1,854 $2,248 Less: Pass through costs also recognized as revenue 23 18 Advisory Net Revenue $1,831 $2,231 Advisory Seg
Slide 31: Reconciliation of Revenue to Net Revenue and Net Margin
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Global Workplace Solutions revenue $5,338 $4,806 Less: Pass through costs also recognized as revenue 3,208 2,939 Global Workplace Soluti
Slide 32: Reconciliation of Revenue to Net Revenue and Net Margin
SUPPLEMENTAL SLIDES Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Global Workplace Solutions Facilities Management revenue $3,680 $3,801 Less: Pass through costs also recognized as revenue 2,285 2,558 G
Slide 33: Reconciliation of Net Margin
SUPPLEMENTAL SLIDES Reconciliation of Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Real Estate Investments net revenue $224 $284 Real Estate Investments Segment Operating Profit $131 $167 Real Estate Investments net margin 58.7% 58.9% 2023 CBRE,
Slide 34: Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit
SUPPLEMENTAL SLIDES Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit $in millions, except for per share data, totals may not sum due to rounding Three Months Ended March 31, 2023 2022 Investment Management Operating Profit 43 61 Development Operati