Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q4 2010 Earnings Presentation
21 slides from Cbre's earnings presentation, Feb 4, 2011
Slide 1: Fourth Quarter 2010 Earnings Conference Call
CB Richard Ellis Group, Inc. Fourth Quarter 2010 Earnings Conference Call February 4, 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 and our business outlook. These statement
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 Highlights
Business Overview Highlights: Commercial real estate recovery continues with momentum building in the fourth quarter providing a strong finish to 2010. Total company revenue increased 27% for Q4 2010 versus Q4 2009 to $1.7 billion Investment sales posted 40% growth in Q4 2010 versus Q4 2009, which g
Slide 5: Q4 CBRE Wins
Q4 CBRE Wins NEW YORK World Trade Center CBRE was selected to be the leasing agent for the 71 story 3 World Trade Center (2.1M SF) and the 64 story 4 World Trade Center (2.3M SF). These are scheduled to open in late 2014/early 2015. AUSTRALIA BHP Billiton BHP Billiton was represented by CBRE in its
Slide 6: Q4 2010 Performance Overview
Q4 2010 Performance Overview Q4 2010 Q4 2009 Revenue1 $1,653.5 million $1,296.5 million Net Income2 GAAP $95.1 million Adjusted $115.4 million GAAP $64.3 million Adjusted $86.0 million EPS2,3 GAAP $0.30 Adjusted $0.36 GAAP $0.21 Adjusted $0.28 EBITDA4 $241.0 million $167.1 million Normalized EBITDA4
Slide 7: Revenue Breakdown 4th Quarter 2010
Revenue Breakdown 4th Quarter 2010 1. Includes revenue from discontinued operations, which totaled $2.2 million and $3.9 million for the three and twelve months ended December 31, 2010, respectively. 37% 29% 17% 7% 4% 3% 1% 2% ($ in millions) 2010 1 2009 % Change 2010 1 2009 % Change Leasing 614.1 4
Slide 8: Outsourcing
Outsourcing CAGR 14% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q4 2010 Wins 18 new 9 renewals 7 expansions Successes: 18 new contracts signed in Q4 2010 Square footage under management increased by approximately 18% for full year 2010 Americas led
Slide 9: Market Statistics
Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Spring 2011 preliminary US Vacancy US Absorption Trends (in millions of square feet) 4Q09 3Q10 4Q10 4Q11 F 4Q12F 4Q09 4Q10 2009 2010 2011F 2012F Office 16.3% 16.6% 16.4% 16.1% 15.0% 0.6 12.7 -39.7 17.1 16.9 45.6 Industrial 14.3% 14.6%
Slide 10: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing 66% 60% 45% 36% $864.6 $1,174.6 $99.8 $165.9 Fourth Quarter $271.6 $435.4 Full Year $289.5 $419.0 2009 2010
Slide 11: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing 19% 37% 6% 13% $294.9 $332.6 $104.5 $111.2 $62.1 $73.9 Fourth Quarter $144.4 $197.3 Full Year
Slide 12: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing 12% 51% 34% 24% $89.4 $134.6 Full Year $40.4 $45.2 Fourth Quarter $187.6 $233.5 $61.7 $82.5
Slide 13: Development Services
Development Services Balance Sheet Participation $62.0 million co-invested in Development Services at quarter end. $6.7 million in recourse debt to CBRE and repayment guarantees. 1. In Process figures contain Long-Term Operating Assets (LTOA), including $1.6 billion for 4Q 10, $1.4 billion for 4Q 09
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CBRE’s co-investments totaled $99.0 million at December 31, 2010. CAGR 18% CAGR 16.1% ($ in millions) ($ in millions) 215.6 Full Year Revenue 120.9 127.0 13.9 27.1 41.6 19.9 6.6 141.4 2009 2010 Annual Revenue 57.1 68.4 94.0 99.3 126.3 259.
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA Carried interest pertains to certain real estate investment funds from which CBRE earns an additional share of the profits from the fund once its performance meets certain financial hurdles. Dedicated fund team leaders and executives in our in
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule As of September 30, 2010 As of December 31, 2010 1 $ millions 1. $700 million revolver facility matures in May 2015. As of December 31, 2010 the outstanding revolver balance was $17.5 million. - 200.0 400.0 600.0 800.0 1,000.0 1,200.0 2010 2011 2012 2013
Slide 17: Capitalization
Capitalization 1. Net of original issue discount of $12.3 million and $13.5 million at December 31, 2010 and 2009, respectively. 2. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $623.8 million a
Slide 18: Business Outlook
Business Outlook We are still in the early stages of a commercial real estate recovery – although 2011 growth rates not likely to match robust 2010 rates Investment sales and leasing should continue to lead with solid growth, albeit with tougher comparisons Acceleration in outsourcing growth rates l
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 20: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income 1. Includes EBITDA related to discontinued operations of $1.1 million and $16.4 million for the three and twelve months ended December 31, 2010, respectively. 2. Includes depreciation and amortization related to discontinued operations of $
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for share data) 2010 2009 Net income attributable to CB Richard Ellis Group, Inc. 95.1 $ 64.3 $ Cost containment expenses, net of tax 2.0 7.4 Write-down of impaired assets, net of tax 2.7 11.7 Amortization expense related
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