Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q3 2010 Earnings Presentation
21 slides from Cbre's earnings presentation, Oct 27, 2010
Slide 1: Third Quarter 2010 Earnings Conference Call
CB Richard Ellis Group, Inc. Third Quarter 2010 Earnings Conference Call October 27, 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, financial performance and our business outlook. These statement
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: Commercial real estate recovery continues despite mixed signals about global economic recovery Total company revenue increased 24% for Q3 2010 versus Q3 2009 Investment sales led with 63% growth in Q3 2010 with strong participation from all regions Leasing performance s
Slide 5: Q3 CBRE Wins
Q3 CBRE Wins CALIFORNIA State of California CBRE arranged the $2.3B sale/lease back of 11 state office buildings to California First, LLC. This is scheduled to close before year-end. INDIA Wipro CBRE has been appointed to provide facilities management services for Phase 1 of Wipro’s Hyderabad facili
Slide 6: Q3 2010 Performance Overview
Q3 2010 Performance Overview Q3 2010 Q3 2009 Revenue1 $1,266.9 million $1,023.2 million Net Income2 GAAP $57.0 million Adjusted $62.4 million GAAP $12.4 million Adjusted $21.6 million EPS2,3 GAAP $0.18 Adjusted $0.20 GAAP $0.04 Adjusted $0.08 EBITDA4 $169.9 million $98.1 million Normalized EBITDA4 5
Slide 7: Revenue Breakdown 3rd Quarter 2010
Revenue Breakdown 3rd Quarter 2010 Includes revenue from discontinued operations, which totaled $0.7 million and $1.7 million for the three and nine months ended September 30, 2010, respectively. 34% 33% 16% 6% 4% 3% 2% 2% ($ in millions) 2010 1 2009 % Change 2010 1 2009 % Change Property & Faciliti
Slide 8: Outsourcing
Outsourcing CAGR 14% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q3 2010 Wins 19 new 8 renewals 6 expansions Successes: GCS set another record with 19 new contracts signed in Q3 2010 Square footage under management increased by approximately 14% YTD
Slide 9: Market Statistics
Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Winter 2011 preliminary US Vacancy US Absorption Trends (in millions of square feet) 3Q09 2Q10 3Q10 4Q10 F 4Q11F 2008 2009 3Q09 3Q10 2010F 2011F Office 16.1% 16.7% 16.6% 16.7% 16.3% 19.9 -39.9 -5.4 7.0 5.8 20.2 Industrial 13.5% 14.1%
Slide 10: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing 43% 50% 11% 16% $190.4 $221.5 $66.9 $74.0 $35.1 $50.1 Third Quarter $82.3 $123.4 YTD Third Quarter 2009 2010
Slide 11: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing 76% 82% 12% 20% $49.0 $89.4 YTD Third Quarter $23.3 $41.1 Third Quarter $125.9 $150.9 $46.8 $52.6 2009 2010
Slide 12: Development Services Balance Sheet Participation
Development Services Balance Sheet Participation $60.0 million co-invested in Development Services at quarter end. $6.5 million in recourse debt to CBRE and repayment guarantees. 1. In Process figures contain Long-Term Operating Assets (LTOA), including $1.6 billion for 3Q 10, $1.4 billion for 4Q 09
Slide 13: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CBRE’s co-investments totaled $94.1 million at September 30, 2010. CAGR 14% CAGR 15.9% ($ in millions) ($ in millions) YTD Q3 Revenue 89.3 89.6 8.7 15.9 30.3 4.8 102.8 135.8 YTD Q3 2009 YTD Q3 2010 Annual Revenue 57.1 68.4 94.0 99.3 126.3
Slide 14: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended September 30, 2010 and 2009, the Company recorded a net reversal of carried interest incentive compensation expense of $1.4 million and $6.0 million, respectively. For the nine months ended September 30, 2010 and 200
Slide 15: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume1 Source: RCA Troubled Assets Radar, as of September 27, 2010 Our Process Recapitalizations, loan sales/workouts, asset and portfolio valuations, asset management and repositioning and receivership services Currently marketing more than $
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule As of September 30, 20101 As of October 22, 20101,2 $ millions Approximately $225.1 million and $333.0 million of the revolver facilities mature in June 2011 and June 2013 respectively. As of 9/30/10 the outstanding revolver balance was $17.9 million. Inc
Slide 17: Capitalization
Capitalization Net of original issue discount of $12.6 million and $13.5 million at September 30, 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 $676.1 m
Slide 18: Business Outlook
Business Outlook Given performance YTD 2010 and visibility through year end, we now expect full year 2010 diluted earnings per share between $0.65 to $0.70 Investment sales and leasing should continue to show nice year over year improvements - but comparisons are getting tougher Recent outsourcing t
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 20: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income Includes EBITDA related to discontinued operations of $2.4 million for the three months ended September 30, 2010. Includes depreciation and amortization related to discontinued operations of $0.03 million for the three months ended Septembe
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for share data) 2010 2009 Net income attributable to CB Richard Ellis Group, Inc. 57.0 $ 12.4 $ Cost containment expenses, net of tax 1.4 4.2 Write-down of impaired assets, net of tax 1.5 2.6 Amortization expense related
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