Cbre Group Inc · NYSE:CBRE
Cbre — Q3 2023 Earnings Presentation
32 slides from Cbre's earnings presentation, Oct 27, 2023
Slide 1: Q3 2023 Earnings Call
CBRE october 27 | 202s O3 2025 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
Q3 2023 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 our
Slide 4: Conference Call Participants
Q3 2023 EARNINGS CONFERENCE CALL Conference Call Participants i M/ Bob Sulentic Emma Giamartino Brad Burke President & Chief Financial Officer Head of Investor Chief Executive Officer Relations & Treasurer 2023 CBRE, Inc. | 4
Slide 5: Consolidated Results Summary
Q3 2023 EARNINGS CONFERENCE CALL Consolidated Results Summary 2023/2022 $ in millions, except per share figures Q3 2023 Q3 2022 % Cha nge - Commercial real estate capital markets Revenue $7868 $7530 A 4% remained under significant pressure in Q3 as interest rates increased 100+ bps Net Revenue 4,430
Slide 6: Advisory Services
Q3 2023 EARNINGS CONFERENCE CALL 7 7 - Total Advisory net revenue declined 17% in Q3, led by a challenging transactional market Advisory Services y ° Y ging $ in millions, totals may not sum due to rounding - Property sales revenue declined 38% in Q3, with varied performance across geographies - EME
Slide 7: Global Workplace Solutions (GWS)
Q3 2023 EARNINGS CONFERENCE CALL Global Workplace Solutions (GWS) $ in millions, totals may not sum due to rounding Net Revenue $2,231 $1,956 $777 $675 Q3'22 Q3'23 =Facilities Mangement ™ Project Management - GWS net revenue grew by 14%, with both Facilities Management and Project Management growing
Slide 8: Real Estate Investments
Q3 2023 EARNINGS CONFERENCE CALL Real Estate Investments REI segment SOP declined significantly, reflecting few U.S development sales and lower operating profit in our Investment Management business Investment Management operating profit decline was led by co-investment losses and lower incentive fe
Slide 9: Updated Financial Outlook
Q3 2023 EARNINGS CONFERENCE CALL Updated Financial Outlook — Completed more than $500M share repurchases in Q3, approaching full-year buyback target — Making counter-cyclical commitments to high target-return investment management and development opportunities within REI business — Fully committed t
Slide 10: Appendix
Appendix
Slide 11: Revenue
Q3 2023 EARNINGS CONFERENCE CALL Revenue $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) +4.5% vs. Q3’22 (+3.4% LC) $7,530 ($162) ($17) Q3'22 Sales Leasing Rest of Adv. Definitions and reconciliations are provided at the
Slide 12: Core EBITDA
Q3 2023 EARNINGS CONFERENCE CALL Core EBITDA $ in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $32 ee oe ($12) ($53) ($3) (28.1 %) vs. Q3'22 (28.5% LC) Q3'22 Advisory OMSRs GWS REI Corporate Q3'23 Ex OMSRs Overhead 2023 CB
Slide 13: TTM Q3'23 Revenue
Q3 2023 EARNINGS CONFERENCE CALL TTM Q3’'23 Revenue $in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue TTM Q3'23 $3,490 $1,722 $395 $313 $718 $1,884 $21,706 $
Slide 14: Q3'23 Revenue
Q3 2023 EARNINGS CONFERENCE CALL Q3’23 Revenue $in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue Q3'23 $827 $370 $107 $81 $163 $465 $5,649 $74 $137 $
Slide 15: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions
Slide 16: Non-GAAP Financial Measures
Q3 2023 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
Q3 2023 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
Q3 2023 EARNINGS CONFERENCE CALL Debt, Leverage and Liquidity $ in millions, totals may not sum due to rounding CBRE Capital Structure as of September 30, 2023 Maturity Profile as of September 30, 2023 Revolving Credit Facilities $673 Senior Term Loans, net 735 4.875% Senior Notes, due 2026 597 2.50
Slide 20: TTM Q3'22 Revenue
Q3 2023 EARNINGS CONFERENCE CALL TTM Q3'22 Revenue $ in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue TTM Q3'22 $3,956 $3,048 $653 $329 $s7™m $1,831
Slide 21: Q3'22 Revenue
Q3 2023 EARNINGS CONFERENCE CALL Q3’22 Revenue $ in millions, totals may not sum due to rounding Global 5 Property Loan p Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue Q3'22 $990 $601 $130 $78 $v77 $458 $4,844 $m $147 $7,530 Le
Slide 22: Summarized Cash Flow Activity
Q3 2023 EARNINGS CONFERENCE CALL Summarized Cash Flow Activity $in millions, totals may not sum due to rounding Nine Months Ended September 30, 2023 2022 Net cash (used in) provided by operating activities (373) 815 Net cash used in investing activities (837) (604) Net cash provided by (used in) fin
Slide 23: Other Financial Metrics
Q3 2023 EARNINGS CONFERENCE CALL Other Financial Metrics Totals may not sum due to rounding Three Months Ended, September June 30, March 31, December 31, September (in millions) 30, 2023 2023 2023 2022 30, 2022 OMSR Gains $22.2 $211 $167 $28.7 $34.7 Amortization ($35.4) ($371) ($36.5) ($38.5) ($39.4
Slide 24: Reconciliation of Net Income to Core Adjusted Net Income and Core EPS
Q3 2023 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 September 30, 2023 2022 Net income attributable to CBRE Group, Inc. $190.6 $446.6 Plus
Slide 25: Reconciliation of Net Income to Core EBITDA
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core EBITDA $ in millions, totals may not sum due to rounding The ont eats Month ended eptember 30, 2023 2022 2023 Net income attributable to CBRE Group, Inc. $190.6 $446.6 $590.0 Net income attributable to non-controlling interests 10
Slide 26: Reconciliation of Resilient and Non-Resilient to Segment Operating Profit
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Resilient and Non-Resilient to Segment Operating Profit $ in millions, totals may not sum due to rounding TTM Q3 2023 Segment Operating Profit Advisory Services 1,362 Global Workplace Solutions 972 Real Estate Investments 188 Total Reportable Segmen
Slide 27: Reconciliation of Revenue to Net Revenue
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended September 30, 2023 2022 Revenue $7,868 $7,530 Less: Pass through costs also recognized as revenue 3,438 2,907 Net Revenue $4,430 $4,623 2023 CBRE, Inc. | 27
Slide 28: Reconciliation of Revenue to Net Revenue and Net Margin
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended September 30, 2023 2022 Advisory Revenue $2,013 $2,434 Less: Pass through costs also recognized as revenue 21 19 Advisory Net Revenue $1,992 $2
Slide 29: Reconciliation of Revenue to Net Revenue and Net Margin
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended September 30, 2023 2022 Global Workplace Solutions revenue $5,649 $4,844 Less: Pass through costs also recognized as revenue 3,417 2,888 Global
Slide 30: Reconciliation of Revenue to Net Revenue and Net Margin
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended September 30, 2023 2022 Global Workplace Solutions Facilities Management revenue $3,843 $3,672 Less: Pass through costs also recognized as reve
Slide 31: Reconciliation of Net Margin
Q3 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Margin $in millions, totals may not sum due to rounding Three Months Ended September 30, 2023 2022 Real Estate Investments net revenue $210 $258 Real Estate Investments Segment Operating Profit $7 $59 Real Estate Investments net margin 31% 23.0%
Slide 32: Reconciliation of Real Estate Investments Business Line Operating Profit
Q3 2023 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 September 30, 2023 2022 Investment Management Operating Profit 29 44 Development Operating Profit