Slide 1: Global Market Leader in Integrated Commercial Real Estate Services
September 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 and business outlook. These statements should be considered as estim
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 June 30, 2014. GLOBAL LEADERSHIP WITH BROAD CAPABILITIES #1 Leasing #1 Property Sales #1 Outsourcing #1 Appraisal
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 Ranked #1 brand for 13 consecutive years Top real estate services and investment company in “green” rankings Global Real Estate Advisor of the
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 Strategies
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 (GCS or Occupier Outso
Slide 7: Acquisitions Since the Beginning of 2013
Since the beginning of 2013, CBRE has completed 19 acquisitions Acquired UK-based Norland Managed Services in December 2013 for an initial cash purchase price of approximately $434 million1,2 with approximately $629 million revenue3 10 in-fill acquisitions across the globe in 2013 with an initial ag
Slide 8: Diversification
DIVERSIFICATION From 2006 to TTM Q2 2014, contractual revenue increased 3.7x. REVENUE MIX BY BUSINESS Total Revenue: $4,0321 Total Revenue: $7,9565 See slide 26 for footnotes. Contractual Revenues include GCS and Asset Services (excludes associated sales and lease revenue, most of which is contractu
Slide 9: YTD Q2 2014 Business Line Revenue
Revenue ($ 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 YTD Q2 2014 $ 1,762.2 $ 238.8 $ 199.3 $ 970.6 $ 602.4 $ 153.0 $ 20
Slide 10: Long-Term Growth
LONG-TERM GROWTH 3 4 4 See slide 26 for footnotes. ($ in millions) 4,5 4 4 2 From 2003 to 2013 total revenue has increased 4.0x and Normalized EBITDA1 has increased 5.6x. 4,6 Revenue CAGR 15% Normalized EBITDA CAGR 18%
Slide 11: Business Overview: Regional Highlights
Americas EMEA Asia Pacific Revenue 11% Property sales 9% GCS and Asset Services 11% Leasing 15% Revenue 106% (100% local currency) Ex. Norland, revenue 24% (17% local currency) Property sales 39% (32% local currency) GCS and Asset Services 249% (243% local currency) Ex. Norland 28% (22% local curren
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 44 Expansions 39 Renewals 27 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: $6.6 billion1,2 Co-Investment: $167.2 million2 3 ASSETS UNDER MANAGEMENT (AUM) OVERVIEW ($ in billions) As of 6/30/2014 See slide 26 for footnotes. ($ in billions) INVESTMEN
Slide 15: Appraisal & Valuation
PREMIER CLIENTS ($ in millions) 132,000+ assignments in 2013 Up 12% 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 HISTORICAL FEE REVENUE YTD Q2
Slide 16: Leasing
As of January 1, 2014; excludes affiliates. OVERVIEW RECENT TRANSACTIONS Credit Suisse Sony King & Wood Mallesons New York, NY New York, NY Sydney, Australia 1.1M SF 500,000 SF 124,000 SF Serve occupiers and investors in formulating and executing leasing strategies Tailored service delivery by prope
Slide 17: Property Sales
Hong Kong Sydney, Australia New Jersey, USA Citigroup Mirvac KBS REIT III $700 Million $427 Million $109 Million Property Acquisition Property Sale (50% interest) Property Sale As of January 1, 2014; excludes affiliates. RECENT TRANSACTIONS Represent investors (sellers and buyers) in commercial real
Slide 18: Commercial Mortgage Services
New York, NY Atlanta, GA Redwood City, CA CWCapital Asset Management Jamestown Pauls Corporation / Mount Kellet Capital Managment $2.5 Billion $180 Million $121 Million Loan Sale Advisory Construction Financing Construction Financing As of January 1, 2014; excludes affiliates. Activity includes loan
Slide 19: Development Services
Hess Tower Knox Logistics Center Denver Union Station Shops at Dakota Crossing Houston, TX Office Riverside, CA Industrial Denver, CO Mixed-Use Washington, DC Retail 2 PROJECTS IN PROCESS/PIPELINE1 OVERVIEW RECENT PROJECTS Merchant builder business model Premier brand in U.S. development 65+ year re
Slide 20: Business Outlook
We are pleased with how 2014 is unfolding Mixed macro global environment but signs of improvement in U.S. and Europe For first half 2014: Property sales in line with expectations for full-year double-digit growth Property leasing pacing ahead of full-year expectations Occupier outsourcing (GCS) shou
Slide 21: Investment Summary
Premier global provider of integrated services to real estate investors and occupiers Global leadership and scale The leading global brand with a balanced and diversified business mix Known for delivering high-quality solutions that create value for clients CBRE has significantly evolved its busines
Slide 22: Appendix
APPENDIX 2 CBRE
Slide 23: Mandatory Amortization and Maturity Schedule
As of June 30, 2014 MANDATORY AMORTIZATION AND MATURITY SCHEDULE ($ in millions) $1,200.0 million revolver facility matures in March 2018. As of June 30, 2014, the outstanding revolver balance was $336.0 million. 1 Global Cash Available Revolver 1,187 20 40 68 255 416 2 352 198 800 - 250.0 500.0 750
Slide 24: Capitalization
CAPITALIZATION Excludes $47.2 million of cash in consolidated funds and other entities not available for Company use at June 30, 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 $85.8 million
Slide 25: Normalized EBITDA Reconciliation
Twelve Months Ended December 31, ($ in millions) TTM Q2 2014 2013 2012 2011 2010 2009 Normalized EBITDA 1 $ 1,079.5 $ 1,022.3 $ 918.4 $ 802.6 $ 681.3 $ 453.9 Adjustments: Cost containment expenses 17.6 17.6 17.6 31.1 15.3 43.6 Integration and other costs related to acquisitions 11.1 12.6 39.2 68.8 7
Slide 26: Footnotes
FOOTNOTES Slide 10 Normalized EBITDA excludes merger-related and other non-recurring charges, gains/losses on trading securities acquired in the Trammell Crow Company acquisition, cost containment expenses, one-time IPO-related compensation expense, integration and other costs related to acquisition
Slide 27: Discontinued Operations
DISCONTINUED OPERATIONS Discontinued Operations (Slides 8, 9, 10, 21, 24 and 25) Under GAAP, the Company has historically classified most of its gains on dispositions of consolidated real estate as income from discontinued operations rather than as revenue and earnings from continuing operations. Th