GAAP EPS of $0.66, down 1%
Adjusted EPS of $0.81, up 11%
Revenue and Fee Revenue up 12%
LOS ANGELES–(BUSINESS WIRE)–CBRE Group, Inc. (NYSE:CBRE) today reported strong financial results for the second quarter ended June 30, 2019.
“CBRE had another quarter of strong growth with double-digit revenue increases in leasing, occupier outsourcing and U.S. capital markets,” said Bob Sulentic, the company’s president and chief executive officer. “In addition, the impact of our reorganization, which we announced last year, is driving margin improvement in our advisory services and outsourcing businesses. Cost efficiency was one of the key objectives of this change.”
Looking ahead, Mr. Sulentic said: “We are in a strong strategic position with excellent momentum in our business. In light of this, and our strong performance in the first half, we are raising our 2019 earnings expectations.”
CBRE now expects adjusted earnings-per-share for the full year to be in a range of $3.70 to $3.80. The $3.75 mid-point reflects a 14% increase over 2018 adjusted earnings per share.
Second-Quarter 2019 Results
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
|
|
|
|
|
|
|
|
|
|
% Change from Q2 2018 |
|
|||
|
|
Q2 2019 |
|
|
Q2 2018 |
|
|
USD |
|
|
LC (1) |
|
||
|
Revenue |
$ |
5,714 |
|
|
$ |
5,111 |
|
|
12% |
|
|
15% |
|
|
Fee revenue (2) |
|
2,849 |
|
|
|
2,536 |
|
|
12% |
|
|
15% |
|
|
Adjusted EBITDA (3) |
|
468 |
|
|
|
439 |
|
|
7% |
|
|
8% |
|
|
GAAP net income |
|
224 |
|
|
|
229 |
|
|
-2% |
|
|
-1% |
|
|
GAAP EPS |
$ |
0.66 |
|
|
$ |
0.67 |
|
|
-1% |
|
|
0% |
|
|
Adjusted net income (4) |
|
277 |
|
|
|
253 |
|
|
10% |
|
|
12% |
|
|
Adjusted EPS (4) |
$ |
0.81 |
|
|
$ |
0.74 |
|
|
11% |
|
|
13% |
|
Advisory Services Segment Review
The following table presents highlights of the Advisory Services segment performance (dollars in millions):
|
|
|
|
|
|
|
|
|
|
% Change from Q2 2018 |
|
|||
|
|
Q2 2019 |
|
|
Q2 2018 |
|
|
USD |
|
|
LC |
|
||
|
Revenue |
$ |
2,179 |
|
|
$ |
1,959 |
|
|
11% |
|
|
14% |
|
|
Fee revenue |
|
1,935 |
|
|
|
1,750 |
|
|
11% |
|
|
13% |
|
|
Adjusted EBITDA |
|
334 |
|
|
|
290 |
|
|
15% |
|
|
16% |
|
|
Adjusted EBITDA on fee revenue margin |
|
17.2 |
% |
|
|
16.6 |
% |
|
1% |
|
|
0% |
|
Growth was fueled by the Americas, where all business lines produced double-digit revenue increases (in both US dollars and local currency), except advisory property sales, which grew by 8% (9% local currency).
Advisory leasing revenue rose 19% (21% local currency) and was up 26% (27% local currency) in the Americas and down 1% (up 5% local currency) outside the Americas. In the United States, growth was again robust at 27% and was broad-based across markets and industries.
Capital markets revenue, which includes both advisory property sales and commercial mortgage origination, rose 5% (7% local currency) globally, reflecting strong market share gains.
- Commercial mortgage origination revenue rose 16% (same local currency), fueled by activity with the U.S. Government-Sponsored Enterprises, life insurance companies and banks.
- Advisory property sales revenue rose 2% (4% local currency), representing a solid performance versus global market volumes. Americas advisory property sales increased 8% (9% local currency), as CBRE again made market share gains in U.S. investment sales, according to Real Capital Analytics. Outside the Americas, property sales declined 8% (3% local currency), as performance was tempered by continued weak market fundamentals in residential sales in Asia Pacific. Excluding residential, property sales outside the Americas increased 2% (8% local currency) for the quarter.
Loan servicing revenue continued to grow at a brisk pace, rising 13% (14% local currency). The loan servicing portfolio totals more than $210 billion.
Property and advisory project management revenue and fee revenue increased 11% (14% local currency) and 7% (10% local currency), respectively, while valuation revenue edged up 1% (5% local currency).
Global Workplace Solutions Segment
The following table presents highlights of the Global Workplace Solutions segment performance (dollars in millions):
|
|
|
|
|
|
|
|
|
|
% Change from Q2 2018 |
|
|||
|
|
Q2 2019 |
|
|
Q2 2018 |
|
|
USD |
|
|
LC |
|
||
|
Revenue |
$ |
3,385 |
|
|
$ |
3,035 |
|
|
12% |
|
|
15% |
|
|
Fee revenue |
|
764 |
|
|
|
668 |
|
|
14% |
|
|
19% |
|
|
Adjusted EBITDA |
|
104 |
|
|
|
79 |
|
|
32% |
|
|
34% |
|
|
Adjusted EBITDA on fee revenue margin |
|
13.6 |
% |
|
|
11.8 |
% |
|
2% |
|
|
2% |
|
Global Workplace Solutions again registered robust top- and bottom-line growth. Fee revenue grew at a double-digit rate in local currency in all three global regions.
Sustained growth is being driven by CBRE’s integrated service offering – increasingly enhanced by technology – that is designed to directly meet rising occupier demand for outsourced global real estate solutions. The company is further penetrating key vertical markets, such as life sciences and retail, and seeing particular success with clients that utilize more than one service. These clients have represented an increasing percentage of the new business pipeline for six consecutive quarters.
Real Estate Investments Segment
The following table presents highlights of the Real Estate Investments segment performance (dollars in millions):
|
|
|
|
|
|
|
|
|
|
% Change from Q2 2018 |
|
|||
|
|
Q2 2019 |
|
|
Q2 2018 |
|
|
USD |
|
|
LC |
|
||
|
Revenue |
$ |
150 |
|
|
$ |
117 |
|
|
28% |
|
|
32% |
|
|
Adjusted revenue (5) |
|
169 |
|
|
|
216 |
|
|
-22% |
|
|
-20% |
|
|
Adjusted EBITDA |
|
31 |
|
|
|
70 |
|
|
-56% |
|
|
-55% |
|
As expected, this segment’s adjusted EBITDA was below the year-earlier quarter due primarily to the timing of large asset dispositions in the development business – which were particularly strong in second-quarter 2018. Investment management performance improved compared with second-quarter 2018.
- The in-process development portfolio increased to a record $10.6 billion, up $0.9 billion from first-quarter 2019. The pipeline declined by $0.3 billion during the second quarter to $2.5 billion, reflecting the conversion of prospective projects to in-process activity.
- Investment management assets under management (AUM) totaled $106.7 billion, down $0.5 billion ($.0.4 billion local currency) from second-quarter 2019. Over the past 12 months, AUM has increased $5.0 billion ($6.7 billion local currency).
Subsequent to the end of the second quarter, CBRE announced its intention to acquire Telford Homes, a London-based developer of for-rent multifamily properties in the UK, which is subject to Telford shareholder and regulatory approval.
Adjustments to GAAP Net Income
Second-quarter 2019 adjustments to GAAP net income had a net impact of $53.3 million, including: pre-tax adjustments of:
- $33.8 million of expenses associated with the company reorganization, including related cost-savings initiatives;
- $19.6 million of non-cash acquisition-related depreciation and amortization;
- $9.0 million of integration and other costs related to acquisitions; and
- $8.3 million of net carried interest incentive compensation expense to align with the timing of associated revenue;
- Offset by a $17.4 million net tax adjustment associated with the aforementioned pre-tax adjustments.
Conference Call Details
The company’s second quarter earnings conference call will be held today (Thursday, August 1, 2019) at 8:30 a.m. Eastern Time. A webcast, along with an associated slide presentation, will be accessible through the Investor Relations section of the company’s website at www.cbre.com/investorrelations.
The direct dial-in number for the conference call is 877-407-8037 for U.S. callers and 201-689-8037 for international callers. A replay of the call will be available starting at 1:00 p.m. Eastern Time on August 1, 2019 and will be available for one week following the event. The dial-in number for the replay is 877‑660‑6853 for U.S. callers and 201-612-7415 for international callers. The access code for the replay is 13691608#. A transcript of the call will be available on the company’s Investor Relations website at www.cbre.com/investorrelations. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange filings and public conference calls and webcasts.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. The information contained in, or accessible through, the company’s website is not incorporated into this press release.
|
CBRE GROUP, INC. OPERATING RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018 (Dollars in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue |
|
$ |
2,849,494 |
|
|
$ |
2,535,600 |
|
|
$ |
5,278,219 |
|
|
$ |
4,812,499 |
|
|
Pass through costs also recognized as revenue |
|
|
2,864,579 |
|
|
|
2,575,834 |
|
|
|
5,571,364 |
|
|
|
4,972,887 |
|
|
Total revenue |
|
|
5,714,073 |
|
|
|
5,111,434 |
|
|
|
10,849,583 |
|
|
|
9,785,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
4,445,790 |
|
|
|
3,958,748 |
|
|
|
8,467,824 |
|
|
|
7,578,709 |
|
|
Operating, administrative and other |
|
|
877,397 |
|
|
|
826,282 |
|
|
|
1,670,273 |
|
|
|
1,558,517 |
|
|
Depreciation and amortization |
|
|
106,479 |
|
|
|
113,399 |
|
|
|
212,302 |
|
|
|
221,564 |
|
|
Intangible asset impairment |
|
|
— |
|
|
|
— |
|
|
|
89,037 |
|
|
|
— |
|
|
Total costs and expenses |
|
|
5,429,666 |
|
|
|
4,898,429 |
|
|
|
10,439,436 |
|
|
|
9,358,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of real estate (1) |
|
|
10 |
|
|
|
12,311 |
|
|
|
19,257 |
|
|
|
12,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
284,417 |
|
|
|
225,316 |
|
|
|
429,404 |
|
|
|
438,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income from unconsolidated subsidiaries (1) |
|
|
21,773 |
|
|
|
96,021 |
|
|
|
94,437 |
|
|
|
136,200 |
|
|
Other income (loss) |
|
|
4,369 |
|
|
|
4,009 |
|
|
|
25,222 |
|
|
|
(271 |
) |
|
Interest expense, net of interest income |
|
|
24,600 |
|
|
|
25,396 |
|
|
|
45,792 |
|
|
|
50,633 |
|
|
Write-off of financing costs on extinguished debt |
|
|
— |
|
|
|
— |
|
|
|
2,608 |
|
|
|
27,982 |
|
|
Income before provision for income taxes |
|
|
285,959 |
|
|
|
299,950 |
|
|
|
500,663 |
|
|
|
496,239 |
|
|
Provision for income taxes |
|
|
62,521 |
|
|
|
70,319 |
|
|
|
106,399 |
|
|
|
116,483 |
|
|
Net income |
|
|
223,438 |
|
|
|
229,631 |
|
|
|
394,264 |
|
|
|
379,756 |
|
|
Less: Net (loss) income attributable to non-controlling interests (1) |
|
|
(293 |
) |
|
|
964 |
|
|
|
6,124 |
|
|
|
801 |
|
|
Net income attributable to CBRE Group, Inc. |
|
$ |
223,731 |
|
|
$ |
228,667 |
|
|
$ |
388,140 |
|
|
$ |
378,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to CBRE Group, Inc. |
|
$ |
0.67 |
|
|
$ |
0.67 |
|
|
$ |
1.15 |
|
|
$ |
1.12 |
|
|
Weighted average shares outstanding for basic income per share |
|
|
336,222,471 |
|
|
|
339,081,556 |
|
|
|
336,122,100 |
|
|
|
338,986,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to CBRE Group, Inc. |
|
$ |
0.66 |
|
|
$ |
0.67 |
|
|
$ |
1.14 |
|
|
$ |
1.10 |
|
|
Weighted average shares outstanding for diluted income per share |
|
|
340,508,931 |
|
|
|
343,471,513 |
|
|
|
340,334,315 |
|
|
|
343,031,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
468,492 |
|
|
$ |
439,307 |
|
|
$ |
918,524 |
|
|
$ |
787,114 |
|
|
________________________ |
|
|
(1) |
Equity income from unconsolidated subsidiaries and gain on disposition of real estate, less net (loss) income attributable to non-controlling interests, includes income of $19.3 million and $99.0 million for the three months ended June 30, 2019 and 2018, respectively, and $104.6 million and $134.7 million for the six months ended June 30, 2019 and 2018, respectively, attributable to Real Estate Investments but does not include significant related compensation expense (which is included in operating, administrative and other expenses). In the Real Estate Investments segment, related equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests, and the associated compensation expense, are all included in adjusted EBITDA. |
|
CBRE GROUP, INC. SEGMENT RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2019 (Dollars in thousands) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended June 30, 2019 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory Services |
|
|
Global Workplace Solutions |
|
|
Real Estate Investments |
|
|
Consolidated |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue |
|
$ |
1,935,506 |
|
|
$ |
764,325 |
|
|
$ |
149,663 |
|
|
$ |
2,849,494 |
|
|
Pass through costs also recognized as revenue |
|
|
243,452 |
|
|
|
2,621,127 |
|
|
|
— |
|
|
|
2,864,579 |
|
|
Total revenue |
|
|
2,178,958 |
|
|
|
3,385,452 |
|
|
|
149,663 |
|
|
|
5,714,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
1,309,940 |
|
|
|
3,135,850 |
|
|
|
— |
|
|
|
4,445,790 |
|
|
Operating, administrative and other |
|
|
544,696 |
|
|
|
176,238 |
|
|
|
156,463 |
|
|
|
877,397 |
|
|
Depreciation and amortization |
|
|
74,754 |
|
|
|
29,839 |
|
|
|
1,886 |
|
|
|
106,479 |
|
|
Total costs and expenses |
|
|
1,929,390 |
|
|
|
3,341,927 |
|
|
|
158,349 |
|
|
|
5,429,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of real estate |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
249,568 |
|
|
|
43,525 |
|
|
|
(8,676 |
) |
|
|
284,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (loss) from unconsolidated subsidiaries |
|
|
3,136 |
|
|
|
(325 |
) |
|
|
18,962 |
|
|
|
21,773 |
|
|
Other income |
|
|
1,480 |
|
|
|
1,522 |
|
|
|
1,367 |
|
|
|
4,369 |
|
|
Less: Net income (loss) attributable to non-controlling interests |
|
|
135 |
|
|
|
(105 |
) |
|
|
(323 |
) |
|
|
(293 |
) |
|
Add-back: Depreciation and amortization |
|
|
74,754 |
|
|
|
29,839 |
|
|
|
1,886 |
|
|
|
106,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
328,803 |
|
|
|
74,666 |
|
|
|
13,862 |
|
|
|
417,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with our reorganization, including cost-savings initiatives (1) |
|
|
4,422 |
|
|
|
29,394 |
|
|
|
— |
|
|
|
33,816 |
|
|
Integration and other costs related to acquisitions |
|
|
303 |
|
|
|
— |
|
|
|
8,734 |
|
|
|
9,037 |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
|
— |
|
|
|
— |
|
|
|
8,308 |
|
|
|
8,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
333,528 |
|
|
$ |
104,060 |
|
|
$ |
30,904 |
|
|
$ |
468,492 |
|
|
________________________ |
|
|
(1) |
Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1 2019. |
|
CBRE GROUP, INC. SEGMENT RESULTS—(CONTINUED) FOR THE THREE MONTHS ENDED JUNE 30, 2018 (Dollars in thousands) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended June 30, 2018 (1) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory Services |
|
|
Global Workplace Solutions |
|
|
Real Estate Investments |
|
|
Consolidated |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue |
|
$ |
1,750,180 |
|
|
$ |
668,065 |
|
|
$ |
117,355 |
|
|
$ |
2,535,600 |
|
|
Pass through costs also recognized as revenue |
|
|
208,926 |
|
|
|
2,366,908 |
|
|
|
— |
|
|
|
2,575,834 |
|
|
Total revenue |
|
|
1,959,106 |
|
|
|
3,034,973 |
|
|
|
117,355 |
|
|
|
5,111,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
1,151,238 |
|
|
|
2,807,510 |
|
|
|
— |
|
|
|
3,958,748 |
|
|
Operating, administrative and other |
|
|
527,046 |
|
|
|
148,415 |
|
|
|
150,821 |
|
|
|
826,282 |
|
|
Depreciation and amortization |
|
|
66,992 |
|
|
|
38,966 |
|
|
|
7,441 |
|
|
|
113,399 |
|
|
Total costs and expenses |
|
|
1,745,276 |
|
|
|
2,994,891 |
|
|
|
158,262 |
|
|
|
4,898,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of real estate |
|
|
— |
|
|
|
— |
|
|
|
12,311 |
|
|
|
12,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
213,830 |
|
|
|
40,082 |
|
|
|
(28,596 |
) |
|
|
225,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (loss) from unconsolidated subsidiaries |
|
|
7,808 |
|
|
|
(1 |
) |
|
|
88,214 |
|
|
|
96,021 |
|
|
Other income |
|
|
1,075 |
|
|
|
87 |
|
|
|
2,847 |
|
|
|
4,009 |
|
|
Less: Net (loss) income attributable to non-controlling interests |
|
|
(607 |
) |
|
|
53 |
|
|
|
1,518 |
|
|
|
964 |
|
|
Add-back: Depreciation and amortization |
|
|
66,992 |
|
|
|
38,966 |
|
|
|
7,441 |
|
|
|
113,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
290,312 |
|
|
|
79,081 |
|
|
|
68,388 |
|
|
|
437,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
|
— |
|
|
|
— |
|
|
|
1,526 |
|
|
|
1,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
290,312 |
|
|
$ |
79,081 |
|
|
$ |
69,914 |
|
|
$ |
439,307 |
|
|
________________________ |
|
|
(1) |
Our new organizational structure became effective on January 1 2019. Under the new structure we organize our operations around and publicly report our financial results on three global business segments. Results for 2018 have been presented in conformity with the new structure. |
|
CBRE GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) |
||||||||
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2019 |
|
|
2018 |
|
||
|
Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (1) |
|
$ |
535,618 |
|
|
$ |
777,219 |
|
|
Restricted cash |
|
|
77,607 |
|
|
|
86,725 |
|
|
Receivables, net |
|
|
4,001,003 |
|
|
|
3,668,591 |
|
|
Warehouse receivables (2) |
|
|
1,365,928 |
|
|
|
1,342,468 |
|
|
Property and equipment, net |
|
|
746,490 |
|
|
|
721,692 |
|
|
Operating lease assets (3) |
|
|
949,216 |
|
|
|
— |
|
|
Goodwill and other intangibles, net |
|
|
4,995,070 |
|
|
|
5,093,617 |
|
|
Investments in and advances to unconsolidated subsidiaries |
|
|
307,308 |
|
|
|
216,174 |
|
|
Other assets, net |
|
|
1,740,895 |
|
|
|
1,550,307 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
14,719,135 |
|
|
$ |
13,456,793 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Current liabilities, excluding debt and operating lease liabilities |
|
$ |
4,131,305 |
|
|
$ |
4,471,473 |
|
|
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2) |
|
|
1,349,988 |
|
|
|
1,328,761 |
|
|
Revolving credit facility |
|
|
230,000 |
|
|
|
— |
|
|
Senior term loans, net |
|
|
750,337 |
|
|
|
751,255 |
|
|
4.875% senior notes, net |
|
|
593,201 |
|
|
|
592,781 |
|
|
5.25% senior notes, net |
|
|
422,829 |
|
|
|
422,688 |
|
|
Other debt |
|
|
2,857 |
|
|
|
3,682 |
|
|
Operating lease liabilities (3) |
|
|
1,169,724 |
|
|
|
— |
|
|
Other long-term liabilities |
|
|
678,364 |
|
|
|
876,251 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
9,328,605 |
|
|
|
8,446,891 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
CBRE Group, Inc. stockholders’ equity |
|
|
5,346,637 |
|
|
|
4,938,797 |
|
|
Non-controlling interests |
|
|
43,893 |
|
|
|
71,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
5,390,530 |
|
|
|
5,009,902 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
14,719,135 |
|
|
$ |
13,456,793 |
|
|
________________________ |
|
|
(1) |
Includes $141.8 million and $155.2 million of cash in consolidated funds and other entities not available for company use as of June 30, 2019 and December 31, 2018, respectively. |
|
(2) |
Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. |
|
(3) |
Reflects assets and liabilities recorded as a result of adopting Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” on January 1, 2019 prospectively using the optional transitional method with no adjustment to comparative period financial statements presented for prior periods. |
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations, market share, business outlook, capital deployment, acquisition integration and financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic and business conditions, particularly in geographies where our business may be concentrated; volatility and disruption of the securities, capital and credit markets, interest rate increases, the cost and availability of capital for investment in real estate, clients’ willingness to make real estate or long-term contractual commitments and other factors affecting the value of real estate assets, inside and outside the United States; increases in unemployment and general slowdowns in commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in average cap rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; our ability to diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to maintain EBITDA and adjusted EBITDA margins that enable us to continue investing in our platform and client service offerings; our ability to control costs relative to revenue growth; economic volatility and market uncertainty globally related to the United Kingdom’s withdrawal from the European Union, including concerns relating to the economic impact of such withdrawal on businesses within the United Kingdom and Europe; foreign currency fluctuations; our ability to retain and incentivize key personnel; our ability to compete globally, or in specific geographic markets or business segments that are material to us; the emergence of disruptive business models and technologies; our ability to identify, acquire and integrate synergistic and accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; the ability of our investment management line of business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; the ability of our wholly-owned subsidiary, CBRE Capital Markets, Inc.
Contacts
For further information:
Brad Burke
Investors
214.863.3100
Steve Iaco
Media
212.984.6535
