Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Day (May 2006)
19 slides from Cbre's investor day presentation, May 17, 2006
Slide 1: Business Review Day: Capital Markets
Business Review Day Capital Markets May 17, 2006 Brian Stoffers President, Capital Markets Exhibit 99.4
Slide 2: 2005 Capital Markets % of Americas Revenue
5% 13% 30% 6% 46% 2005 Capital Markets % of Americas Revenue Advisory Outsourcing U.S. Brokerage Valuation Capital Markets $590m Outsourcing Canada & Latin America
Slide 3: CBRE Capital Markets
CBRE Capital Markets Formed in 2005 to offer fully integrated capital markets solutions on a global basis • Investment Properties • CBRE | Melody Formalizes collaboration between investment sales and debt placement professionals Meets clients’ capital requirements efficiently
Slide 4: About Capital Markets
About Capital Markets Investment Property Sales Capabilities • Valuation • Strategy Development Financing Placement Capabilities • Fixed and Variable • Construction • Bridge • Mezzanine • Tenant-in-Common • Brokerage • Property & Portfolio Recapitalization • Preferred Equity • Structured Equity • Jo
Slide 5: Annual Volume
Annual Volume 56% $70.6B $110.2B Total Capital Markets Activity 44% $28.4B $40.8B Total International Sales (Asia and EMEA) 33% $13.3B $17.8B Americas Debt Volume (Melody) 79% $28.9B $51.6B Americas Sales Volume (CBRE) % Change 2004 2005
Slide 6: About Capital Markets: Office Locations
About Capital Markets Office Locations WA OR CA AZ UT ID MT WY CO NM TX OK KS NE SD ND MN IA MO MO LA MS AL GA FL SC TN NC CA VA WV KY IN WI MI CA NJ CT MA NH RI VT New Brunswick CA British Columbia Alberta Saskatchewan Manitoba Ontario Quebec NV OH PA NY IL HONOLULU • IP Offices • Melody Offices
Slide 7: Key Business Drivers
Key Business Drivers Abundant capital – both debt and equity Aggressive Buyers/Flexible loan terms “What does it take to win?” underwriting Capital markets efficiencies/inefficiencies CMBS debt, foreign and domestic equity Attractive asset class TIC’s (Section 1031 exchanges) Developing CDO market
Slide 8: Key Business Drivers: Historic 10-year Treasury Rates
Key Business Drivers Historic 10-year Treasury Rates 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 10-Yr. Treasury Trailing 10-Yr. Average Source: Wall Street Journal May 10, 2006 Close @ 5.13% 30-Year Average = 7.77% 10 yr. Trailing Average 5.15%
Slide 9: Key Business Drivers: 10-Yr Treasury vs. 30-day LIBOR
Key Business Drivers 10-Yr. Treasury vs. 30-day LIBOR 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% Monthly Averages 10 Year Treasury 30-day LIBOR Source: Wall Street May 10, 2006 close @ 5.13% 10-Year Tresury May 10, 2006 close @ 5.17% 30-day LIBOR
Slide 10: Life Company vs. CMBS Historical Issuance
$0 $50 $100 $150 $200 $250 $300 2001 2002 2003 2004 2005 Life Companies CMBS Data in billion of dollars Source: MBA Quarterly Data Book , American Council of Life Insurance Companies, and Commercial Mortgage Alert Life Company vs. CMBS Historical Issuance Key Business Drivers
Slide 11: Competitive Positioning: Investment Sales
0% 10% 20% 30% CBRE C&W Eastdil 2002 2003 2004 2005 Market Share % Competitive Positioning Investment Sales Market CAGR: 41.3% Source: Real Capital Analytics
Slide 12: 2005 Originations by Deal Size
12% 13% 8% 19% 29% 11% 8% 41% 22% 25% 7% Up to $5 M $5 to $10 M $10 to $25 M $25 to $50 M $50 to $75 M $75 to $100 M Over $100 M 2% 2% 1% 2005 Originations by Deal Size $17.8 Billion 1,298 Loans
Slide 13: 2005 Originations by Capital Source
13% 11% 11% 22% 43% 10% 14% 11% 23% 42% 2005 Originations by Capital Source Conduits Life Company Agency Bank Other $17.8 Billion 1,298 Loans
Slide 14: Loan Servicing Statistics – 2005
3% 6% 17% 19% 55% Loan Servicing Statistics – 2005 Life Company Conduits/CMBS Agency Pension Funds Banks Total Servicing Portfolio: $30 billion* * Reflects only CBRE | Melody portion of the $67.3 billion GEMSA Loan Servicing portfolio
Slide 15: Servicing Volume by Rank 2005
7,751 $8.7 $67.3 GEMSA Loan Services, L.P. 1 7 Servicing Volume by Rank 2005 Period: Year Ended December 31, 2005 Source: Annual Survey of Commercial Mortgage Servicing Firms – Mortgage Bankers Association Joint venture between CBRE | Melody and GE Real Estate 4,754 35,289 6,153 10,488 12,947 11,446
Slide 16: Case Study: 1818 Market Street
Case Study: 1818 Market Street CBRE Capital Markets arranges $152.8 million sale and $132.0 million acquisition financing. CBRE’s Institutional Group (IG) sold the property for the third time (1996, 2001, 2006). CBRE | Melody secured the high-leverage loan for the buyer and enabled the sale to close
Slide 17: Case Study: Loch Raven Village
Case Study: Loch Raven Village CBRE’s Institutional Group (IG) represented the seller, whom they also represented during the purchase of the property in 2002. The open collaboration between IG and CBRE | Melody enabled the sale to close. CBRE Capital Markets arranges $32.0 million sale and $38.5 mil
Slide 18: 2006 Capital Markets Strategic Initiatives
2006 Capital Markets Strategic Initiatives Enhance Capital Markets platform – Co-branding/ marketing – Training – Co-location Expand market presence through acquisition and high profile/strategic hires Continued international expansion/ integration Implement technology-based productivity enhancement
Slide 19: CBRE
CBRE CB RICHARD ELLIS —— CBRE