Slide 1: Global Market Leader in Integrated Commercial Real Estate Services
June 2014 CBRE GROUP, INC. Global Market Leader in Integrated Commercial Real Estate Services
Slide 2: 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, financial performance, business outlook and ability to successfully integrate businesses w
Slide 3: The Global Market Leader
THE GLOBAL MARKET LEADER CBRE is the premier global provider of integrated services to commercial real estate investors and occupiers. As of December 31, 2013; includes affiliates. As of March 31, 2014. GLOBAL LEADERSHIP WITH BROAD CAPABILITIES #1 Leasing #1 Property Sales #1 Outsourcing #1 Appraisa
Slide 4: The Leading Global Brand
THE LEADING GLOBAL BRAND CBRE is recognized as the foremost commercial real estate authority. Only commercial real estate services company in the Fortune 500 #1 brand for 13 consecutive years Top real estate services and investment company in “green” rankings Global Real Estate Advisor of the Year t
Slide 5: CBRE Serves Investors and Occupiers
CBRE SERVES INVESTORS AND OCCUPIERS CBRE’s integrated, best-in-class offering creates value for clients at every stage of the life cycle.
Slide 6: Key Strategic Priorities
Exploit unique leadership position with globally integrated solutions and specialized expertise to widen our competitive advantage and differentiation from other firms Drive continued market share gains in core brokerage business Continue expansion of Global Corporate Services (Occupier Outsourcing)
Slide 7: Mergers & Acquisitions Strategy
In 2013, CBRE completed eleven acquisitions Acquired UK-based Norland Managed Services for a cash purchase price of approximately $434 million1,2 with approximately $629 million revenue3 Ten in-fill acquisitions across the globe with an aggregate purchase price of $110 million1 and annual revenues o
Slide 8: Diversification
DIVERSIFICATION From 2006 to 2013, contractual revenue increased 3.8x. REVENUE MIX BY BUSINESS Total Revenue: $4,0321 Total Revenue: $7,8855 See slide 26 for footnotes. Contractual Revenues include GCS and Asset Services (excludes associated sales and lease revenues, most of which is contractual), G
Slide 9: Q1 2014 Business Line Revenue
Revenue1 ($ in millions) Contractual Revenue Sources Capital Markets Global Corporate Services and Asset Services2 Investment Management Appraisal & Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Q1 2014 869 113 96 411 267 74 10 20 1,861 % of Q1 2014 Total 47%
Slide 10: Long-Term Growth
LONG-TERM GROWTH 3 4,5 4,5 4,5 See slide 26 for footnotes. ($ in millions) 4,5,6 4,5 4,5 2 From 2003 to 2013 total revenue has increased 4.0x and Normalized EBITDA1 has increased 5.6x. 4,5 Revenue CAGR 15% Normalized EBITDA CAGR 19%
Slide 11: Q1 2014 Region Highlights
Q1 2014 Region Highlights BUSINESS OVERVIEW % of Americas1 49% 27% 23% Contractual Leasing Capital Markets Excludes 1% of Other revenue. Americas EMEA Asia Pacific Revenue ▲10% Property Sales ▲17% Occupier Outsourcing (Global Corporate Services) ▲13% Leasing ▲10% Revenue▲127% (▲122% in local currenc
Slide 12: Global Corporate Services
Global Corporate Services (GCS) revenue excludes associated sales and leasing revenue, most of which is contractual. As of December 31, 2013; includes affiliates. Per International Association of Outsourcing Professionals (IAOP). New 25 Expansions 24 Renewals 14 HISTORICAL FEE REVENUE1 FULL SERVICE
Slide 13: Asset Services
HISTORICAL FEE REVENUE1 OVERVIEW KEY STRATEGIC ACCOUNTS ($ in millions) Asset services revenue excludes associated sales and leasing revenue, most of which is contractual. As of December 31, 2013; includes affiliates. Asset Services operates buildings for investors Highly synergistic with property l
Slide 14: Investment Management
CAPITAL RAISED1 Performance-driven global real estate investment manager More than 600 institutional clients Equity to deploy: $5.3 billion1,2 Co-Investment: $159.8 million3 4 ASSETS UNDER MANAGEMENT (AUM) OVERVIEW ($ in billions) As of 3/31/2014 Q1 See slide 26 for footnotes. April 2014 ($ in billi
Slide 15: Appraisal & Valuation
PREMIER CLIENTS ($ in millions) 132,000+ assignments in 2013 Up 14% from 2012 Euromoney Global Valuation Advisor of the Year Clients include lenders, life insurance companies, special servicers and REITs OVERVIEW APPRAISAL & VALUATION Serving Clients Globally Q1 HISTORICAL FEE REVENUE
Slide 16: Leasing
As of January 1, 2014; excludes affiliates. OVERVIEW RECENT TRANSACTIONS Boston Properties Hines Lenovo American Express San Francisco, CA Raleigh, NC Sussex, UK 714,000 SF 445,000 SF 100,000 SF Serve occupiers and investors in formulating and executing leasing strategies Tailored service delivery b
Slide 17: Property Sales
Denmark/Finland/Sweden San Francisco, CA Krakow, Poland AB Volvo Hines Invesco $321 Million $298 Million $248 Million Property Sale Property Sale Property Acquisition As of January 1, 2014; excludes affiliates. RECENT TRANSACTIONS Represent investors (sellers and buyers) in commercial real estate #1
Slide 18: Commercial Mortgage Services
New York, NY Georgia/Nevada/ Texas Frankfurt, Germany CWCapital Asset Management KTR Capital IVG Institutional Funds $2.5 Billion $142 Million $350 Million Loan Sale Advisory Loan Sale Equity Financing As of January 1, 2014; excludes affiliates. Activity includes loan originations and loan sales. RE
Slide 19: Development Services
Houston, TX Office Phoenix, AZ Industrial Denver, CO Mixed-Use Washington, DC Retail 2.0M SF 800,000 SF 537,000 SF 387,000 SF 2 Coldwater Logistics Center Shops at Dakota Crossing PROJECTS IN PROCESS/PIPELINE1 OVERVIEW RECENT PROJECTS Merchant builder business model Premier brand in U.S. development
Slide 20: Outlook
Property Sales should continue strong, double-digit growth Pace expected to moderate from Q1’s robust level More difficult comparisons as the year progresses Leasing is expected to continue to grow well despite slow, uneven recovery GCS (Occupier Outsourcing) is expected to sustain double-digit grow
Slide 21: Summary
Premier global provider of integrated services to real estate investors and occupiers Global leadership and scale The leading global brand with a balanced and diversified business mix Known for delivering high-quality solutions that create value for clients CBRE has significantly evolved its busines
Slide 22: Appendix
APPENDIX 2 CBRE
Slide 23: Mandatory Amortization and Maturity Schedule
As of March 31, 2014 MANDATORY AMORTIZATION AND MATURITY SCHEDULE ($ in millions) $1,200.0 million revolver facility matures in March 2018. As of March 31, 2014, the outstanding revolver balance was $359.5 million. 1 Global Cash Available Revolver 1,232 30 40 68 255 440 2 352 198 800 0 250 500 750 1
Slide 24: Capitalization
CAPITALIZATION Excludes $27.2 million of cash in consolidated funds and other entities not available for Company use at March 31, 2014. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $127.9 milli
Slide 25: Normalized EBITDA Reconciliation
Twelve Months Ended December 31, ($ in millions) Q1 2014 TTM 2013 2012 2011 2010 2009 Normalized EBITDA1 $ 1,059.8 $ 1,022.3 $ 918.4 $ 802.6 $ 681.3 $ 453.9 Adjustments: Carried interest incentive compensation2 10.8 9.2 - - - - Integration and other costs related to acquisitions 11.1 12.6 39.2 68.8
Slide 26: Footnotes
FOOTNOTES Slide 10 Normalized EBITDA excludes merger-related and other non-recurring charges, gains/losses trading securities acquired in the Trammell Crow Company acquisition, cost containment expenses, one-time IPO-related compensation expense, integration and other costs related to acquisitions,