Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Day (May 2006)
16 slides from Cbre's investor day presentation, May 17, 2006
Slide 1: Business Review Day: Global Investment Management
Exhibit 99.3 Business Review Day Global Investment Management May 17, 2006 Robert Zerbst President, CB Richard Ellis Investors
Slide 2: 2005 Investment Management % of Total Revenues
2005 Investment Management % of Total Revenues Global Investment Management $127.3m 4% 6% Americas 21% EMEA 69% Asia Pacific Global Investment Management CB Richard Ellis | Page 2
Slide 3: Global Investment Management: CB Richard Ellis Investors
Global Investment Management CB Richard Ellis Investors • Independently operated investment management affiliate of CB Richard Ellis Group, Inc. – Founded in 1972 – Registered Investment Advisor • Positioned at the center of the world’s leading real estate services company with 14,500 employees and
Slide 4: Mission
Mission “Our business is to capitalize on real estate investment opportunities for our partners & clients - across the risk/return spectrum & around the globe.” CB Richard Ellis | Page 4
Slide 5: Key Business Drivers
Key Business Drivers Real Estate has become a widely accepted asset class – Performance relative to equities and fixed income – Income and diversification – Increased transparency – Securitization • Accelerating cross-border investment flows – Globalization trend – Increased transparency, standardiz
Slide 6: 2005 Milestones – Historical Highs
2005 Milestones – Historical Highs Total New Investments $5.1B Total Dispositions $2.3B Assets Under Management $17.3B New Equity Capital Raised $4.7B, purchasing power $10.2B CB Richard Ellis | Page 6
Slide 7: CB Richard Ellis Investors Worldwide Platform
CB Richard Ellis Investors Worldwide Platform LONDON LUXEMBOURG 55 1 FRANKFURT SAN FRANCISCO BOSTON PARIS 6 (Menlo Park) 6 8 23 TOKYO NEW YORK MILAN 25 11 5 LOS ANGELES 98 ¦ CBRE Investors Locations / # of Employees CB Richard Ellis | Page 7
Slide 8: CB Richard Ellis Investors Worldwide Platform
CB Richard Ellis Investors Worldwide Platform CB Richard Ellis | Page 8
Slide 9: Why CB Richard Ellis Investors?
Why CB Richard Ellis Investors? Assets Under Management* ($B) • Disciplined, Research Based 20 Investment Process 17.3 16 15.1 14.4 • Focused Investment Teams 12 11.4 10.3 10.0 8.6 8 • Execution Capability 6.1 4 3.7 • CB Richard Ellis Platform 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 • Superio
Slide 10: Focused Investment Teams
Focused Investment Teams DEDICATED TEAM/OPERATIONAL MODEL Quality Control • Strategy Development • Consistency of MANAGEMENT & OVERSIGHT INVESTMENT COMMITTEES Process & Methodology • Investment Decisions • Benchmark Performance STRATEGIES/INVESTOR FOCUS • Dedicated Operating Units Enhanced MANAGED A
Slide 11: Investment Performance
Investment Performance U.S. DISCRETIONARY ACCOUNTS U.K. DISCRETIONARY ACCOUNTS % 25.4% % 30 30% 0.3 30 25 20.1% 20.9% 25% 25 0.3 19.4% 16.4% 17.7% 14.4% 16.0% 20 20% 13.7% 20 14.5% 11.4% 0.2 12.8% 15 15% 15 0.2 10 10% 0.1 10 5% 5 5 0.1 0% 0 0 0.0 One Year Three Years Five Years One Year Three Years
Slide 12: Global Strategy Fund Matrix
Global Strategy Fund Matrix DEDICATED TEAMS MANAGED ACCOUNTS STRATEGIC PARTNERS SPECIAL SITUATIONS MAIN CHARACTERISTICS CORE/CORE + VALUE ADDED SPECIALITY/OPPORTUNISTIC Strategy Separate Accounts Closed End Funds Typical Structure Closed End Funds Open End Funds Joint Ventures Coinvestment No Yes Ye
Slide 13: Competitive Ranking
Competitive Ranking Company Name 1 ING Clarion/Real Estate 2 RREEF/DB Real Estate 3 UBS Realty Investors 4 La Salle Investment 5 JP Morgan Asset Management 6 CB Richard Ellis Investors 7 Morgan Stanley Real Estate 8 INVESCO Real Estate 9 Principal Real Estate 10 Henderson Global Advisors 11 Goldman,
Slide 14: Case Study
Case Study Fund: Strategic Partners US IV, December 2005 Equity: $1.2B, $3.6B Purchasing Power #LP’s: 33 % Offshore: 22% Strategy: Domestic Value Added • Release / Reposition • Development / Redevelopment • Portfolio Accumulation CB Richard Ellis | Page 14
Slide 15: CB Richard Ellis Strategic Partners II, L.P.
CB Richard Ellis Strategic Partners II, L.P. Metrowest Metrowest Class Class“A” “A”Office Office Chicago, Chicago,IL IL The Montebello The Metropolitan Luxury Residential Luxury Residential McKinney Plaza 3500 Maple Class “A” Office Houston, TX New York, NY Class “A” Office Dallas, TX Dallas, TX Ont
Slide 16: Co-Existing with Brokerage Business
Co-Existing with Brokerage Business 1998: • Some investors thought conflicts existed Changes: • Separate line of business • Free to use or not use affiliates • Dedicated teams compensated only on portfolio performance • No referral fees, commission splits or stock in CBRE • Marketed importance of th