Slide 1: CBRE Group, Inc. Investor Presentation March 2013
CBRE Group, Inc. Investor Presentation March 2013
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 business outlook. These statements
Slide 3: The Global Market Leader
The Global Market Leader GLOBAL LEADERSHIP WITH BROAD CAPABILITIES #1 leasing #1 investment sales #1 outsourcing #1 appraisal and valuation #1 commercial mortgage brokerage #1 commercial real estate investment manager SCALE AND DIVERSITY 400+ offices in over 60 countries1 Serves approximately 80% of
Slide 4: Our Vision
Our Vision Be the preeminent, vertically integrated global commercial real estate services and investment firm serving our clients with market-leading collaboration.
Slide 5: Our Key Strengths
Our Key Strengths Market-leading professionals across business lines and geographies A loyal and diverse client base Most highly regarded, recognized brand in the industry Unmatched service line and geographic footprint Ability and willingness to invest in our business
Slide 6: Our Client Service Model
Our Client Service Model Provide a complete suite of premier services to property investors and occupiers across the globe.
Slide 7: Diversification
Diversification 2012 revenue of $6.5 billion includes $5.7 million of revenue related to discontinued operations. 2012 REVENUE1 BY CLIENT TYPE 2012 REVENUE1 BY GEOGRAPHY
Slide 8: Revenue Diversification
Revenue Diversification Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34% in 2012), Appraisal & Valuation (7% in 2006 and 6% 2012), Investment Management (6% in 2006 and 7% in 2012), Development Services (1% in both 2006 and 2012) and Other (1% in 2006 and 2% in 201
Slide 9: Full Year 2012 Revenue Breakdown
FULL YEAR 2012 Revenue Breakdown Includes revenue from discontinued operations of $5.7 million and $6.7 million for the twelve months ended December 31, 2012 and 2011, respectively. Contains recurring revenue aggregating approximately 59% of total revenue for the twelve months ended December 31, 201
Slide 10: Outsourcing
Outsourcing Represents combined data for CBRE and Trammell Crow Company; does not include joint ventures and affiliates. Revenue includes property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Tram
Slide 11: Leasing
Leasing Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2011. Does not include affiliate offices. Approximately 3,7002 leasing professionals worldwide Tailored service delivery by property type and industry/market specializ
Slide 12: Office Leasing Market Outlook
Office Leasing Market Outlook forecast Office TW Rent Index; % change versus a year ago Office Vacancy rate; % U.S. OFFICE RENT FORECAST & VACANCY
Slide 13: Sales
Sales Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2011. Does not include affiliate offices. Approximately 1,8002 investment sales specialists worldwide Specialization across all major property types $92.5 billion global
Slide 14: Global Sales Transaction Volume
Global Sales Transaction Volume Source: CBRE Research (EMEA and Asia Pacific), RCA (Americas); Data excludes Development sites. Updated for Q4 2012.
Slide 15: Global Investment Management
Global Investment Management CAGR =25% 2012 pro-forma normalized EBITDA margin of 30% CBRE Strategic Partners (SP) US Value 6 fund closed with $1.1 billion of equity commitments, exceeding expectations $92.0 billion in assets under management; 2012 impacted by a large disposition in Q2 $211.5 millio
Slide 16: Global Investment Management Programs
Global Investment Management Programs As of December 31, 2012. Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which ge
Slide 17: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company As of December 31 for each year presented. In Process figures include Long-Term Operating Assets (LTOA) of $1.2 billion for 4Q 12, $1.5 billion for 4Q 11, $1.6 billion for 4Q 10, $1.4 billion for 4Q 09 and $0.4 billion for both 4Q 08 and 4Q 07. LTOA are pr
Slide 18: Historical Performance
Historical Performance No reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursements for 1997 through 2001 have been estimated. For 2002 and forward, reimbursements are included. Includes Insignia activity for the period July 23, 2003 through December 31
Slide 19: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule ($ in Millions) $700.0 million revolver facility matures in May 2015. As of December 31, 2012, the outstanding revolver balance was $73.0 million. As of December 31, 2012 1 Global Cash Revolver Available 1 , 607 71 76 373 424 458 378 370 350 - 250 . 0 500
Slide 20: Capitalization
Capitalization Excludes $94.6 million and $208.1 million of cash in consolidated funds and other entities not available for Company use at December 31, 2012 and December 31, 2011, respectively. Net of original issue discount of $9.5 million and $11.0 million at December 31, 2012 and December 31, 201
Slide 21: Business Outlook
Business Outlook We expect 2013 to be the fourth year in a slow commercial real estate recovery Overall revenue is expected to grow in the mid to high single digits Leasing revenue expected to strengthen modestly in the second half Investment sales revenue should increase in line with improving fund
Slide 22: Appendix
Appendix CBRE
Slide 23: Reconciliation of Global Investment Management Pro-forma Normalized EBITDA
Reconciliation of Global Investment Management Pro-forma Normalized EBITDA Includes depreciation and amortization related discontinued operations of $0.3 million. Includes interest expense related to discontinued operations of $0.2 million. Includes EBITDA related to discontinued operations of $0.5
Slide 24: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Notes: Includes EBITDA related to discontinued operations of $5.6 million for the year ended December 31, 2012, $14.1 million for the year ended December 31, 2011, $16.4 million for the year ended December 31, 2010, and $16.9 million