Slide 1: Q1 2024 CBRE Earnings Call
CBRE Q1 2024 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
Q1 2024 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 the economic outlook, our business plans and capi
Slide 4: Conference Call Participants
Q1 2024 EARNINGS CONFERENCE CALL Conference Call Participants i M/ Bob Sulentic Emma Giamartino Brad Burke Chair & Chief Financial Officer Head of Investor Chief Executive Officer Relations & Treasurer 2024 CBRE, Inc. |4
Slide 5: Consolidated Results Summary
Q1 2024 EARNINGS CONFERENCE CALL Consolidated Results Summary 2024/2023 $ in millions, except per share figures Q1 2024 Q1 2023 % Cha nge - Core earnings exceeded our Revenue $7,935 $7,411 A 7% expectations, driven by solid net revenue growth and 1x tax benefit Net Revenue 4,444 4,181 A 6% - Core EB
Slide 6: Advisory Services
Q1 2024 EARNINGS CONFERENCE CALL Advisory Services $in millions, totals may not sum due to rounding - Net Revenue $1,831 $1,881 $709 $438 Q1'23 Q124 o = Rest of Advisory ™ Capital Markets” ™ Advisory Leasing 1. Includes Property Management, Valuation and Loan Servicing 2. Includes Property Sales and
Slide 7: Global Workplace Solutions (GWS)
Q1 2024 EARNINGS CONFERENCE CALL Global Workplace Solutions (GWS) $ in millions, totals may not sum due to rounding Net Revenue $2,342 $2,130 $790 $735 Q123 Q124 =Facilities Mangement ™ Project Management GWS net revenue rose 10%, in-line with our expectations Second consecutive quarter of strong bu
Slide 8: Real Estate Investments
Q1 2024 EARNINGS CONFERENCE CALL Real Estate Investments Development operating profit in- line with expectations. Prior year benefited from unusually large gain on development portfolio; project sales in current year remain subdued in higher cap rate environment Investment Management operating profi
Slide 9: Updated Outlook
Q1 2024 EARNINGS CONFERENCE CALL Updated Outlook Prior Outlook ! Current Outlook - Expect total Advisory net revenue to increase by mid-to-high i 1 f 1 . a In Advisory expectations are unchanged unless economic single digits I f 1 f f 1 f Advisory . . . . conditions take a sharp turn for the worse A
Slide 10: Appendix
Appendix
Slide 11: Revenue
Q1 2024 EARNINGS CONFERENCE CALL Revenue $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $259 $7,935 $212 $4 $64 eda as <r ($4) ($41) +7.1% vs. Q123 (+6.9% LC) Q123 Sales Leasing Rest of Adv. OMSRs GWS REI Pass-through QT
Slide 12: Core EBITDA
Q1 2024 EARNINGS CONFERENCE CALL Core EBITDA $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $2 ($4) ($4) ($97) ($5) $424. (20.3%) vs. Q1V23 (20.0% LC) Q1'23 Advisory OMSRs GWS REI Corporate QT24 Ex OMSRs Overhead 2024 CB
Slide 13: TTM Q1'24 Revenue
Q1 2024 EARNINGS CONFERENCE CALL TTM Q124 Revenue $in millions, totals may not sum due to rounding Global o Property Loan 5 Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue TTM Q124 $3,534 $1,569 $448 $321 $717 $1,960 $22,986 $363
Slide 14: Q1'24 Revenue
Q1 2024 EARNINGS CONFERENCE CALL Q1’24 Revenue $in millions, totals may not sum due to rounding Global o Property Loan 5 Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue QT24 $739 $326 $95 $81 $167 $496 $5,809 $79 $149 $7,935 Less
Slide 15: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions
Slide 16: Non-GAAP Financial Measures
Q1 2024 EARNINGS CONFERENCE CALL Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC quidelines: i Net revenue ii Core EBITDA iil Business line operating profit/loss iv. Segment operating profit on revenue and net revenue margins v. Net debt vi C
Slide 17: Definitions
Q1 2024 EARNINGS CONFERENCE CALL 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 cer
Slide 18: Supplemental Slides, GAAP Reconciliation Tables
Supplemental Slides, GAAP Reconciliation Tables
Slide 19: Debt, Leverage and Liquidity
Q1 2024 EARNINGS CONFERENCE CALL Debt, Leverage and Liquidity $ in millions, totals may not sum due to rounding CBRE Capital Structure as of March 31, 2024 Maturity Profile as of March 31, 2024 Revolving Credit Facility 820 Senior Term Loans, net 725 5.500% Senior Notes, net 495 5.950% Senior Notes,
Slide 20: TTM Q1'23 Revenue
Q1 2024 EARNINGS CONFERENCE CALL TTM Q123 Revenue $in millions, totals may not sum due to rounding Global A Property Loan 4 Property Investment a Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total jolutions Revenue TTM Q123 $3,808 $2,270 $489 $315 $749 $1,858 $20
Slide 21: Q1'23 Revenue
Q1 2024 EARNINGS CONFERENCE CALL Q1’23 Revenue $in millions, totals may not sum due to rounding Global A Property Loan 4 Property Investment a Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Solutions Revenue Q123 $709 $367 $71 $77 $166 $464, $5,338 $76 $147 $
Slide 22: Summarized Cash Flow Activity
Q1 2024 EARNINGS CONFERENCE CALL Summarized Cash Flow Activity $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Net cash used in operating activities (492) (745) Net cash used in investing activities (900) (115) Net cash provided by financing activities 1,192 7
Slide 23: Other Financial Metrics
Q1 2024 EARNINGS CONFERENCE CALL Other Financial Metrics Totals may not sum due to rounding Three Months Ended, March 31, December 31, September June 30, March 31, ($n milons) 2024 2023 30, 2023 2023 2023 OMSR Gains $12.6 $23.7 $22.2 $211 $167 Amortization ($34.5) ($35.0) ($35.4) ($371) ($36.6) Q120
Slide 24: Reconciliation of Net Income to Core Adjusted Net Income and Core EPS
Q1 2024 EARNINGS CONFERENCE CALL 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, 2024 2023 Net income attributable to CBRE Group, Inc. $126.2 ST16.9 Adjustmen
Slide 25: Reconciliation of Net Income to Core EBITDA
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core EBITDA $ in millions, totals may not sum due to rounding Three Months Ended March 31, ™Welve Months Ended 2024 2023 March 31, 2024 Net income attributable to CBRE Group, Inc. $126.2 $116.9 $995 Net income attributable to non-contr
Slide 26: Reconciliation of Revenue to Net Revenue
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Revenue $7,935 $7,411 Less: Pass through costs also recognized as revenue 3,491 3,230 Net Revenue $4,444 $4,181 2024 CBRE, Inc. |26
Slide 27: Reconciliation of Revenue to Net Revenue and Net Margin
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Advisory Revenue $1,905 $1,854 Less: Pass through costs also recognized as revenue 24 23 Advisory Net Revenue $1,881 $1,831
Slide 28: Reconciliation of Revenue to Net Revenue and Net Margin
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Global Workplace Solutions revenue $5,809 $5,338 Less: Pass through costs also recognized as revenue 3,467 3,208 Global Wor
Slide 29: Reconciliation of Revenue to Net Revenue
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Global Workplace Solutions Facilities Management revenue $4,066 $3,680 Less: Pass through costs also recognized as revenue 2,514 2,285 Glo
Slide 30: Reconciliation of REI Business Line Operating Profit to Segment Operating Profit
Q1 2024 EARNINGS CONFERENCE CALL Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit $in millions, totals may not sum due to rounding Three Months Ended March 31, 2024 2023 Investment Management Operating Profit $37 $43 Development Operating (Loss) Pr
Slide 31: Q1'24 Resilient and Transactional Revenue
Q1 2024 EARNINGS CONFERENCE CALL QI’24 Resilient and Transactional Revenue $in millions, totals may not sum due to rounding Less pass-through Revenue costs associated with Net Revenue revenue Leasing 739 -- 739 Property Sales 326 - 326 CMO 95 - 95 Development & Other REI 96 -- 96 Transactional $1,25
Slide 32: Q1'23 Resilient and Transactional Revenue
Q1 2024 EARNINGS CONFERENCE CALL Q123 Resilient and Transactional Revenue $in millions, totals may not sum due to rounding Less pass-through Revenue costs associated with Net Revenue revenue Leasing 709 - 709 Property Sales 367 - 367 CMO 71 - 71 Development & Other REI 91 -- 91 Transactional $1,238