Slide 1: CBRE Third Quarter 2011 Earnings Conference Call
CBRE Third Quarter 2011 Earnings Conference Call October 27, 2011
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, business outlook, ability to complete an
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
Business Overview Q3 Highlights: Commercial real estate recovery continued, evidenced by strong revenue growth in most service lines Total company revenue increased 21% to $1.5 billion with continued solid growth across all geographies Leasing and investment sales revenues remained strong with 19% a
Slide 5: Q3 CBRE Wins
Q3 CBRE Wins MICHIGAN General Motors (GM) CBRE selected by GM to provide facilities management, leasing and project management for GM’s world headquarters, the 5.5M SF Renaissance Center complex in Detroit. One of the largest single asset outsourcing awards ever made. AUSTRALIA Commonwealth Property
Slide 6: Q3 2011 Performance Overview
Q3 2011 Performance Overview Q3 2011 Q3 2010 Revenue1 $1,534.5 million $1,266.9 million Net Income2 GAAP $63.8 million Adjusted $77.7 million GAAP $57.0 million Adjusted $62.4 million EPS2,3 GAAP $0.20 Adjusted $0.24 GAAP $0.18 Adjusted $0.20 EBITDA4 $179.0 million $169.9 million Normalized EBITDA4,
Slide 7: Revenue Breakdown 3rd Quarter 2011
Revenue Breakdown 3rd Quarter 2011 Includes revenue from discontinued operations of $2.4 million for the nine months ended September 30, 2011, and $0.7 million and $1.7 million for the three and nine months ended September 30, 2010, respectively. ($ in millions) 2011 2010 1 % Change 2011 1 2010 1 %
Slide 8: Outsourcing
Outsourcing CAGR 14% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q3 2011 Wins 20 new 17 renewals 12 expansions Q3 Highlights: 49 contracts signed in Q3 2011 – record number for third straight quarter All three geographic regions again had double dig
Slide 9: US Market Statistics
US Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks 3Q 2011 preliminary Starting in Q2 2011 retail has been expanded to include strip centers, neighborhood centers and community centers US Vacancy US Absorption Trends (in millions of square feet) 3Q10 2Q11 3Q11 4Q11 F 4Q12F 2009 201
Slide 10: Sales, Leasing and Outsourcing Revenue - Americas
Sales, Leasing and Outsourcing Revenue - Americas ($ in millions) Sales Leasing 49% 14% 42% 11% Outsourcing 13% 13% $1,056.5 $287.9 $320.1 $269.5 $401.4 YTD Third Quarter 2010 2011 $939.0 $116.4 $164.8 Third Quarter $318.8 $360.9 $755.6 $863.7
Slide 11: Sales, Leasing and Outsourcing Revenue – EMEA
Sales, Leasing and Outsourcing Revenue – EMEA ($ in millions) Sales Leasing 5% (3%) 19% 33% Outsourcing 26% 48% $195.3 $245.7 $74.0 $98.5 $221.5 $264.5 $123.4 $129.5 YTD Third Quarter 2010 2011 $63.0 $93.2 Third Quarter $50.1 $48.8
Slide 12: Sales, Leasing and Outsourcing Revenue – Asia Pacific
Sales, Leasing and Outsourcing Revenue – Asia Pacific ($ in millions) 21% (1%) 25% 41% Sales Leasing Outsourcing 18% 21% $52.6 $74.2 $89.4 $108.6 YTD Third Quarter 2010 2011 $54.5 $65.9 $41.1 $40.9 Third Quarter $150.9 $188.5 $162.9 $191.5
Slide 13: Development Services Balance Sheet Participation
Development Services Balance Sheet Participation $81.6 million co-invested in Development Services at quarter end. $16.7 million in recourse debt to CBRE and repayment guarantees. In Process figures include Long-Term Operating Assets (LTOA) of $1.4 billion for 3Q 11, $1.6 billion for 4Q 10, $1.4 bil
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 18% CAGR 19% Includes revenue from discontinued operations of $2.4 million for the nine months ended September 30, 2011. ING Clarion Real Estate Securities acquisition closed on July 1st ING REIM Asia acquisition closed on October 3rd
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended September 30, 2011, the Company recorded net carried interest incentive compensation expense of $7.4 million compared to a net reversal of $1.4 million in the comparable 2010 period, which were not associated with sa
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions $700.0 million revolver facility matures in May 2015. As of September 30, 2011 the outstanding revolver balance was $41.3 million. As of September 30, 2011 1 0.0 200.0 400.0 600.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Te
Slide 17: Capitalization
Capitalization Excludes $210.7 million and $26.1 million of cash in consolidated funds and other entities, but not available for company use at September 30, 2011 and December 31, 2010, respectively. $335 million of cash from the senior secured term loan C is held in escrow pending the closing of th
Slide 18: Business Outlook
Business Outlook Early-stage cyclical recovery in commercial real estate continues despite sovereign debt challenges in Europe and economic uncertainty in the U.S. Outsourcing fundamentals remain very strong and we continue to expect solid double digit growth Investment sales are expected to continu
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CBRE
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 interest expense related to discontinued operations of $0.4 million for the three months ended September 30, 2010. In
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for per share data) 2011 2010 Net income attributable to CBRE Group, Inc. 63.8 $ 57.0 $ Integration and other costs related to acquisitions, net of tax 8.4 0.6 Write-down of impaired assets, net of tax 3.5 1.5 Amortizatio