checkAd

     1377  0 Kommentare CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2022

    CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the fourth quarter and year ended December 31, 2022.

    Consolidated Financial Results Overview

    The following table presents highlights of CBRE performance (dollars in millions, except per share data; totals may not add due to rounding):

     

     

     

     

     

    % Change

     

     

     

     

     

    % Change

     

    Q4 2022

     

    Q4 2021

     

    USD

     

    LC (1)

     

    FY 2022

     

    FY 2021

     

    USD

     

    LC (1)

    Operating Results

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenue

    $

    8,194

     

    $

    8,550

     

    (4.2

    )%

     

    1.1

    %

     

    $

    30,828

     

    $

    27,746

     

    11.1

    %

     

    15.3

    %

    Net revenue (2)

     

    4,975

     

     

    5,566

     

    (10.6

    )%

     

    (5.8

    )%

     

     

    18,777

     

     

    17,010

     

    10.4

    %

     

    14.5

    %

    GAAP net income

     

    81

     

     

    692

     

    (88.3

    )%

     

    (97.0

    )%

     

     

    1,407

     

     

    1,837

     

    (23.4

    )%

     

    (24.5

    )%

    GAAP EPS

     

    0.25

     

     

    2.04

     

    (87.5

    )%

     

    (96.8

    )%

     

     

    4.29

     

     

    5.41

     

    (20.7

    )%

     

    (21.7

    )%

    Core adjusted net income (3)

     

    424

     

     

    610

     

    (30.4

    )%

     

    (36.2

    )%

     

     

    1,863

     

     

    1,810

     

    2.9

    %

     

    4.1

    %

    Core EBITDA (4)

     

    668

     

     

    956

     

    (30.1

    )%

     

    (25.7

    )%

     

     

    2,924

     

     

    2,864

     

    2.1

    %

     

    6.1

    %

    Core EPS (3)

     

    1.33

     

     

    1.80

     

    (26.0

    )%

     

    (32.2

    )%

     

     

    5.69

     

     

    5.33

     

    6.7

    %

     

    7.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cash Flow Results

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cash flow provided by operations

    $

    814

     

    $

    1,164

     

    (30.0

    )%

     

     

     

    $

    1,629

     

    $

    2,364

     

    (31.1

    )%

     

     

    Less: Capital expenditures

     

    99

     

     

    88

     

    12.1

    %

     

     

     

     

    260

     

     

    210

     

    24.0

    %

     

     

    Free cash flow (5)

    $

    715

     

    $

    1,076

     

    (33.5

    )%

     

     

     

    $

    1,369

     

    $

    2,154

     

    (36.5

    )%

     

     

    “Although core earnings declined significantly in the fourth quarter, they slightly exceeded the estimate we provided last quarter. This outcome was driven by better-than-expected growth in several of the more cyclically resilient elements of our business like outsourcing and others that are secularly favored like project management and the logistics asset class – offset by a slightly larger-than-expected decline in transactional revenue,” said Bob Sulentic, CBRE’s president and chief executive officer.

    “For all of 2022, we achieved a solid, 7% growth rate in core earnings-per-share despite the more than doubling of long-term interest rates, sharp equity market decline and the credit crunch that constrained investment activity for most of the second half.

    For 2023, we expect core earnings-per-share to decline by low- to mid-double digits, but still to be the third-highest in CBRE’s history. While the macro environment can certainly change, we expect core earnings-per-share to grow strongly in 2024, exceeding the 2022 peak and reaching a record level in just the first year after a recession.”

    Advisory Services Segment

    Lesen Sie auch

    The following table presents highlights of the Advisory Services segment performance (dollars in millions; totals may not add due to rounding):

     

     

     

     

     

    % Change

     

    Q4 2022

     

    Q4 2021

     

    USD

     

    LC

    Revenue

    $

    2,613

     

     

    $

    3,319

     

     

    (21.3

    )%

     

    (17.4

    )%

    Net revenue

     

    2,595

     

     

     

    3,302

     

     

    (21.4

    )%

     

    (17.6

    )%

    Segment operating profit (6)

     

    500

     

     

     

    744

     

     

    (32.9

    )%

     

    (28.8

    )%

    Segment operating profit on revenue margin (7)

     

    19.1

    %

     

     

    22.4

    %

     

    (3.3 pts)

     

    (3.1 pts)

    Segment operating profit on net revenue margin (7)

     

    19.3

    %

     

     

    22.5

    %

     

    (3.3 pts)

     

    (3.1 pts)

    Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.

    Property Leasing

    • Global leasing revenue declined 7% (3% local currency).
    • The decline was driven by the Americas, where revenue fell 7% (same in local currency).
    • Foreign currency headwinds masked growth in overseas markets. Combined EMEA/APAC leasing revenue was up 7% in local currency, but down 6% in U.S. dollars. Before currency effects, growth was notably strong in North Asia, Pacific and the United Kingdom.
    • Global leasing revenue declined across all major property types, except retail.

    Capital Markets

    • A highly constrained capital environment and difficult comparisons with fourth-quarter 2021 caused global sales revenue to fall 47% (44% local currency).
    • Investment activity weakness was broad-based. Combined EMEA/APAC sales revenue dropped 33% (23% in local currency); however, China, India and Japan showed strong growth before currency effects.
    • In the Americas, sales revenue was down 53% (same local currency) below last year’s robust level. Americas sales revenue increased 90% in fourth-quarter of 2021 versus fourth-quarter 2020, making the current quarter comparison particularly challenging.
    • Global sales revenue was down significantly across all major property types.
    • Most debt capital sources remained on the sidelines throughout the quarter. As a result, global mortgage origination revenue declined 42% (41% local currency).

    Other Advisory Business Lines

    • Loan servicing revenue fell 19% (18% local currency), reflecting lower prepayment fees, which were unusually elevated in last year’s fourth quarter. Excluding prepayment fees, loan servicing revenue increased 2%, compared with fourth-quarter 2021. The servicing portfolio ended the year at $381 billion, up 9% from third-quarter 2022 and 16% for the year.
    • Property management net revenue rose 4% (10% local currency), paced by the Americas, Continental Europe, and Pacific.
    • Valuations revenue rose 4% in local currency but declined 3% in U.S. dollars.

    Global Workplace Solutions (GWS) Segment

    The following table presents highlights of the GWS segment performance (dollars in millions; totals may not add due to rounding):

     

     

     

     

     

    % Change

     

    Q4 2022

     

    Q4 2021

     

    USD

     

    LC

    Revenue

    $

    5,294

     

     

    $

    4,823

     

     

    9.8

    %

     

    15.9

    %

    Net revenue

     

    2,093

     

     

     

    1,855

     

     

    12.8

    %

     

    19.2

    %

    Segment operating profit

     

    259

     

     

     

    198

     

     

    30.5

    %

     

    39.4

    %

    Segment operating profit on revenue margin

     

    4.9

    %

     

     

    4.1

    %

     

    0.8 pts

     

    0.8 pts

    Segment operating profit on net revenue margin

     

    12.4

    %

     

     

    10.7

    %

     

    1.7 pts

     

    1.8 pts

    Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.

    • GWS revenue increased 7% (13% local currency), excluding revenue from Turner & Townsend (60% interest acquired on November 1, 2021).
    • Net revenue increased 6% (12% local currency), excluding Turner & Townsend.
    • Project management net revenue growth was particularly strong even before the Turner & Townsend contributions, rising 14% (21% local currency).
    • Facilities management net revenue rose 3% (9% local currency), supported by significant growth from technology and healthcare clients.
    • The Turner & Townsend business continued to perform ahead of expectations.
    • The GWS new business pipeline increased, driven by a diversified mix of prospects in the financial and professional services, industrial and technology sectors.
    • Excluding contributions from Turner & Townsend, GWS segment operating profit rose 17% (25% local currency) reflecting strong top-line growth, prudent cost management actions and the benefit of one-time items.

    Real Estate Investments (REI) Segment

    The following table presents highlights of the REI segment performance (dollars in millions):

     

     

     

     

     

    % Change

     

    Q4 2022

     

    Q4 2021

     

    USD

     

    LC

    Revenue

    $

    291

     

    $

    413

     

    (29.6

    )%

     

    (23.4

    )%

    Segment operating profit

     

    17

     

     

    156

     

    (89.0

    )%

     

    (91.8

    )%

    Note: all percent changes cited are vs. fourth-quarter 2021, except where noted.

    Real Estate Development

    • Operating loss (8) totaled $6 million compared with a $122 million profit in fourth-quarter 2021.
    • The result reflects sharply lower U.S. asset dispositions versus last year’s robust fourth quarter, as anticipated, as well as losses on development activities in the U.K. and Continental Europe.
    • For full-year 2022, development operating profit of $333 million was the second-highest in company history.
    • The in-process portfolio ended the year at $16.9 billion, down $2.6 billion from third-quarter 2022, reflecting deferred timing of certain new projects in light of market conditions.
    • Industrial and multifamily assets comprised more than two thirds of the in-process portfolio.

    Investment Management

    • Revenue edged up 3% in local currency but fell 6% in U.S. dollars to $140 million.
    • Asset management fees, up 2% (12% local currency), were the primary growth catalyst.
    • Operating profit decreased 42% (39% local currency) to $24 million, in part due to co-investment losses versus a gain in fourth-quarter 2021.
    • Assets Under Management (AUM) increased $5.4 billion from third-quarter 2022 to $149.3 billion, a record high for the company. The increase was attributable to net inflows of capital and positive currency movement. In local currency, AUM was down $0.5 billion, reflecting lower property values.

    Corporate and Other Segment

    • Non-core operating loss totaled $167 million, primarily due to the lower fair-value of the company’s investment in Altus Power, Inc. (NYSE:AMPS), reflecting a decline in the share price during the quarter. Fourth-quarter 2021 non-core operating profit was $169 million, primarily due to a one-time gain recognized upon the merger of CBRE Acquisitions Holdings, Inc. with Altus Power.
    • Corporate overhead expenses decreased by roughly $35 million (24.6%), driven by lower stock compensation, bonus expense and corporate donations, partially offset by higher salary and benefits expenses.

    Capital Allocation Overview

    • Free Cash Flow – During the fourth quarter of 2022, free cash flow was $715 million. This reflected cash provided by operating activities of $814 million, less total capital expenditures of $99 million. Net capital expenditures totaled $97 million. (9)
    • Stock Repurchase Program – The company repurchased approximately 6.1 million shares for $451 million ($73.84 average price per share) during the fourth quarter of 2022, and 22.9 million shares for $1.9 billion ($81.31 average price per share) during all of 2022. There was approximately $2.1 billion of capacity remaining under the company’s authorized stock repurchase program as of December 31, 2022.
    • Acquisitions and Investments – CBRE completed two in-fill acquisitions totaling $114 million in cash and deferred consideration during the fourth quarter.

    Leverage and Financing Overview

    • Leverage – CBRE’s net leverage ratio (net debt (10) to trailing twelve-month Core EBITDA) was 0.14x as of December 31, 2022, which is substantially below the company’s primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):

     

    As of

     

    December 31, 2022

    Total debt

    $

    1,734

    Less: Cash (11)

     

    1,318

    Net debt (10)

    $

    416

     

     

    Divided by: Trailing twelve-month Core EBITDA

    $

    2,924

     

     

    Net leverage ratio

    0.14x

    • Liquidity – As of December 31, 2022, the company had approximately $4.8 billion of total liquidity, consisting of approximately $1.3 billion in cash, plus the ability to borrow an aggregate of approximately $3.5 billion under its revolving credit facilities, net of any outstanding letters of credit.

    Conference Call Details

    The company’s fourth quarter earnings webcast and conference call will be held today, Thursday, February 23, 2023 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.

    Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on February 23, 2023. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13735397#. A transcript of the call will be available on the company’s Investor Relations website at https://ir.cbre.com.

    About CBRE Group, Inc.

    CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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. 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 Commission filings and public conference calls and webcasts.

    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 the company’s future growth momentum, operations, business outlook, capital deployment and financial performance, including core earnings per share. 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, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in capitalization 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; our ability to further 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 continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management 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; the ability of our indirect subsidiary, CBRE Capital Markets, Inc., to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. GSEs, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; variations in historically customary seasonal patterns that cause our business not to perform as expected; 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; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations as well as data privacy and protection regulations, ESG matters and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control.

    Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2021, our quarterly report on Form 10-Q for the quarterly period ended September 30, 2022, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.

    The terms “net revenue,” “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin,” “net debt” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.

    Totals may not sum in tables in millions included in this release due to rounding.

    Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this presentation to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

    (1)

    Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.

    (2)

    Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin.

    (3)

    Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the acquisition of Telford Homes plc in 2019 (the Telford acquisition) (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, write-off of financing costs on extinguished debt, integration and other costs related to acquisitions, asset impairments, provision associated with Telford’s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). Note: Core adjusted EPS has been renamed core EPS for simplicity.

    (4)

    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 certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. It also removes the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments).

    (5)

    Free cash flow is calculated as cash flow provided by operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).

    (6)

    Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, costs associated with workforce optimization, transformation initiatives and integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives.

    (7)

    Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively.

    (8)

    Represents line of business profitability/losses, as adjusted.

    (9)

    For the three months ended December 31, 2022, the company incurred capital expenditures of $99.1 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $2.5 million (reflected in the operating section of the condensed consolidated statement of cash flows).

    (10)

    Net debt is calculated as cash and cash equivalents less total debt (excluding non-recourse debt).

    (11)

    Cash represents cash and cash equivalents (excluding restricted cash).

    CBRE GROUP, INC.

    OPERATING RESULTS

    FOR THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022 AND 2021

    (in thousands, except share and per share data)

    (Unaudited)

     

     

     

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

     

     

    2022

     

     

     

    2021

     

     

    2022

     

     

     

    2021

    Revenue:

     

     

     

     

     

     

     

    Net revenue

    $

    4,975,109

     

     

    $

    5,565,853

     

    $

    18,776,533

     

     

    $

    17,009,501

    Pass through costs also recognized as revenue

     

    3,219,380

     

     

     

    2,984,364

     

     

    12,051,713

     

     

     

    10,736,535

    Total revenue

     

    8,194,489

     

     

     

    8,550,217

     

     

    30,828,246

     

     

     

    27,746,036

     

     

     

     

     

     

     

     

    Costs and expenses:

     

     

     

     

     

     

     

    Cost of revenue

     

    6,498,820

     

     

     

    6,584,255

     

     

    24,239,488

     

     

     

    21,579,507

    Operating, administrative and other

     

    1,314,329

     

     

     

    1,262,960

     

     

    4,649,460

     

     

     

    4,074,184

    Depreciation and amortization

     

    159,561

     

     

     

    162,144

     

     

    613,088

     

     

     

    525,871

    Asset impairments

     

    21,957

     

     

     

     

     

    58,713

     

     

     

    Total costs and expenses

     

    7,994,667

     

     

     

    8,009,359

     

     

    29,560,749

     

     

     

    26,179,562

     

     

     

     

     

     

     

     

    Gain on disposition of real estate

     

    43,854

     

     

     

    51,378

     

     

    244,418

     

     

     

    70,993

     

     

     

     

     

     

     

     

    Operating income

     

    243,676

     

     

     

    592,236

     

     

    1,511,915

     

     

     

    1,637,467

     

     

     

     

     

     

     

     

    Equity (loss) income from unconsolidated subsidiaries

     

    (167,013

    )

     

     

    159,162

     

     

    228,998

     

     

     

    618,697

    Other income (loss)

     

    1,667

     

     

     

    181,139

     

     

    (11,864

    )

     

     

    203,609

    Interest expense, net of interest income

     

    17,698

     

     

     

    15,436

     

     

    68,999

     

     

     

    50,352

    Write-off of financing costs on extinguished debt

     

     

     

     

     

     

    1,860

     

     

     

    Income before (benefit from) provision for income taxes

     

    60,632

     

     

     

    917,101

     

     

    1,658,190

     

     

     

    2,409,421

    (Benefit from) provision for income taxes

     

    (25,461

    )

     

     

    224,227

     

     

    234,230

     

     

     

    567,506

    Net income

     

    86,093

     

     

     

    692,874

     

     

    1,423,960

     

     

     

    1,841,915

    Less: Net income attributable to non-controlling interests

     

    4,981

     

     

     

    882

     

     

    16,590

     

     

     

    5,341

    Net income attributable to CBRE Group, Inc.

    $

    81,112

     

     

    $

    691,992

     

    $

    1,407,370

     

     

    $

    1,836,574

     

     

     

     

     

     

     

     

    Basic income per share:

     

     

     

     

     

     

     

    Net income per share attributable to CBRE Group, Inc.

    $

    0.26

     

     

    $

    2.07

     

    $

    4.36

     

     

    $

    5.48

    Weighted average shares outstanding for basic income per share

     

    314,248,642

     

     

     

    334,079,778

     

     

    322,813,345

     

     

     

    335,232,840

     

     

     

     

     

     

     

     

    Diluted income per share:

     

     

     

     

     

     

     

    Net income per share attributable to CBRE Group, Inc.

    $

    0.25

     

     

    $

    2.04

     

    $

    4.29

     

     

    $

    5.41

    Weighted average shares outstanding for diluted income per share

     

    319,221,283

     

     

     

    339,466,153

     

     

    327,696,115

     

     

     

    339,717,401

     

     

     

     

     

     

     

     

    Core EBITDA

    $

    667,773

     

     

    $

    955,646

     

    $

    2,924,264

     

     

    $

    2,863,653

    CBRE GROUP, INC.

    SEGMENT RESULTS

    FOR THE THREE MONTHS ENDED DECEMBER 31, 2022

    (in thousands, totals may not add due to rounding)

    (Unaudited)

     

     

    Three Months Ended December 31, 2022

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Advisory

    Services

     

    Global Workplace

    Solutions

     

    Real Estate

    Investments

     

    Corporate(1)

     

    Total Core

     

    Other

     

    Total

    Consolidated

    Revenue:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net revenue

    $

    2,594,591

     

     

    $

    2,093,024

     

    $

    290,833

     

     

    $

    (3,339

    )

     

    $

    4,975,109

     

     

    $

     

     

    $

    4,975,109

     

    Pass through costs also recognized as revenue

     

    18,683

     

     

     

    3,200,697

     

     

     

     

     

     

     

     

    3,219,380

     

     

     

     

     

     

    3,219,380

     

    Total revenue

     

    2,613,274

     

     

     

    5,293,721

     

     

    290,833

     

     

     

    (3,339

    )

     

     

    8,194,489

     

     

     

     

     

     

    8,194,489

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Costs and expenses:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of revenue

     

    1,611,896

     

     

     

    4,770,015

     

     

    119,856

     

     

     

    (2,947

    )

     

     

    6,498,820

     

     

     

     

     

     

    6,498,820

     

    Operating, administrative and other

     

    544,557

     

     

     

    304,362

     

     

    334,544

     

     

     

    130,625

     

     

     

    1,314,088

     

     

     

    241

     

     

     

    1,314,329

     

    Depreciation and amortization

     

    83,653

     

     

     

    63,080

     

     

    4,865

     

     

     

    7,963

     

     

     

    159,561

     

     

     

     

     

     

    159,561

     

    Asset impairments

     

     

     

     

     

     

    21,957

     

     

     

     

     

     

    21,957

     

     

     

     

     

     

    21,957

     

    Total costs and expenses

     

    2,240,106

     

     

     

    5,137,457

     

     

    481,222

     

     

     

    135,641

     

     

     

    7,994,426

     

     

     

    241

     

     

     

    7,994,667

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gain on disposition of real estate

     

    6

     

     

     

     

     

    43,848

     

     

     

     

     

     

    43,854

     

     

     

     

     

     

    43,854

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Operating income (loss)

     

    373,174

     

     

     

    156,264

     

     

    (146,541

    )

     

     

    (138,980

    )

     

     

    243,917

     

     

     

    (241

    )

     

     

    243,676

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Equity (loss) income from unconsolidated subsidiaries

     

    (113

    )

     

     

    10

     

     

    (160

    )

     

     

    1

     

     

     

    (262

    )

     

     

    (166,751

    )

     

     

    (167,013

    )

    Other income (loss)

     

    863

     

     

     

    1,568

     

     

    322

     

     

     

    (890

    )

     

     

    1,863

     

     

     

    (196

    )

     

     

    1,667

     

    Add-back: Depreciation and amortization

     

    83,653

     

     

     

    63,080

     

     

    4,865

     

     

     

    7,963

     

     

     

    159,561

     

     

     

     

     

     

    159,561

     

    Add-back: Asset impairments

     

     

     

     

     

     

    21,957

     

     

     

     

     

     

    21,957

     

     

     

     

     

     

    21,957

     

    Adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Integration and other costs related to acquisitions

     

     

     

     

    16,656

     

     

     

     

     

     

     

     

    16,656

     

     

     

     

     

     

    16,656

     

    Carried interest incentive compensation reversal to align with the timing of associated revenue

     

     

     

     

     

     

    (13,428

    )

     

     

     

     

     

    (13,428

    )

     

     

     

     

     

    (13,428

    )

    Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period

     

     

     

     

     

     

    (668

    )

     

     

     

     

     

    (668

    )

     

     

     

     

     

    (668

    )

    Costs incurred related to legal entity restructuring

     

     

     

     

     

     

     

     

     

    633

     

     

     

    633

     

     

     

     

     

     

    633

     

    Costs associated with efficiency and cost-reduction initiatives

     

    42,235

     

     

     

    21,208

     

     

    11,883

     

     

     

    23,281

     

     

     

    98,607

     

     

     

     

     

     

    98,607

     

    Provision associated with Telford’s fire safety remediation efforts

     

     

     

     

     

     

    138,937

     

     

     

     

     

     

    138,937

     

     

     

     

     

     

    138,937

     

    Total segment operating profit (loss)

    $

    499,812

     

     

    $

    258,786

     

    $

    17,167

     

     

    $

    (107,992

    )

     

     

     

    $

    (167,188

    )

     

    $

    500,585

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Core EBITDA

     

     

     

     

     

     

     

     

    $

    667,773

     

     

     

     

     

    _______________

    (1)

    Includes elimination of inter-segment revenue.

    CBRE GROUP, INC.

    SEGMENT RESULTS—(CONTINUED)

    FOR THE THREE MONTHS ENDED DECEMBER 31, 2021

    (in thousands, totals may not add due to rounding)

    (Unaudited)

     

     

    Three Months Ended December 31, 2021

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Advisory

    Services

     

    Global Workplace

    Solutions

     

    Real Estate

    Investments

     

    Corporate(1)

     

    Total Core

     

    Other

     

    Total

    Consolidated

    Revenue:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net revenue

    $

    3,302,043

     

    $

    1,855,377

     

    $

    413,392

     

     

    $

    (4,959

    )

     

    $

    5,565,853

     

     

    $

     

     

    $

    5,565,853

     

    Pass through costs also recognized as revenue

     

    16,572

     

     

    2,967,792

     

     

     

     

     

     

     

     

    2,984,364

     

     

     

     

     

     

    2,984,364

     

    Total revenue

     

    3,318,615

     

     

    4,823,169

     

     

    413,392

     

     

     

    (4,959

    )

     

     

    8,550,217

     

     

     

     

     

     

    8,550,217

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Costs and expenses:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of revenue

     

    1,989,491

     

     

    4,385,584

     

     

    211,248

     

     

     

    (2,068

    )

     

     

    6,584,255

     

     

     

     

     

     

    6,584,255

     

    Operating, administrative and other

     

    587,901

     

     

    260,590

     

     

    250,817

     

     

     

    138,890

     

     

     

    1,238,198

     

     

     

    24,762

     

     

     

    1,262,960

     

    Depreciation and amortization

     

    91,225

     

     

    57,171

     

     

    6,541

     

     

     

    7,207

     

     

     

    162,144

     

     

     

     

     

     

    162,144

     

    Total costs and expenses

     

    2,668,617

     

     

    4,703,345

     

     

    468,606

     

     

     

    144,029

     

     

     

    7,984,597

     

     

     

    24,762

     

     

     

    8,009,359

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gain on disposition of real estate

     

     

     

     

     

    51,378

     

     

     

     

     

     

    51,378

     

     

     

     

     

     

    51,378

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Operating income (loss)

     

    649,998

     

     

    119,824

     

     

    (3,836

    )

     

     

    (148,988

    )

     

     

    616,998

     

     

     

    (24,762

    )

     

     

    592,236

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Equity income from unconsolidated subsidiaries

     

    2,312

     

     

    737

     

     

    143,795

     

     

     

     

     

     

    146,844

     

     

     

    12,318

     

     

     

    159,162

     

    Other income (loss)

     

    929

     

     

    416

     

     

    143

     

     

     

    (1,516

    )

     

     

    (28

    )

     

     

    181,167

     

     

     

    181,139

     

    Add-back: Depreciation and amortization

     

    91,225

     

     

    57,171

     

     

    6,541

     

     

     

    7,207

     

     

     

    162,144

     

     

     

     

     

     

    162,144

     

    Adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period

     

     

     

     

     

    (6,497

    )

     

     

     

     

     

    (6,497

    )

     

     

     

     

     

    (6,497

    )

    Integration and other costs related to acquisitions

     

     

     

    20,207

     

     

     

     

     

     

     

     

    20,207

     

     

     

     

     

     

    20,207

     

    Carried interest incentive compensation expense to align with the timing of associated revenue

     

     

     

     

     

    15,978

     

     

     

     

     

     

    15,978

     

     

     

     

     

     

    15,978

     

    Total segment operating profit (loss) (2)

    $

    744,464

     

    $

    198,355

     

    $

    156,124

     

     

    $

    (143,297

    )

     

     

     

    $

    168,723

     

     

    $

    1,124,369

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Core EBITDA

     

     

     

     

     

     

     

     

    $

    955,646

     

     

     

     

     

    _____________

    (1)

    Includes elimination of inter-segment revenue.

    (2)

    In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of core EBITDA and SOP to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition.

    CBRE GROUP, INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (in thousands)

    (Unaudited)

     

     

    December 31, 2022

     

    December 31, 2021

    Assets:

     

     

     

    Cash and cash equivalents

    $

    1,318,290

     

    $

    2,430,951

    Restricted cash

     

    86,559

     

     

    108,830

    Receivables, net

     

    5,326,807

     

     

    5,150,473

    Warehouse receivables (1)

     

    455,354

     

     

    1,303,717

    Contract assets

     

    529,106

     

     

    474,375

    Income taxes receivable

     

    133,438

     

     

    77,254

    Property and equipment, net

     

    836,041

     

     

    816,092

    Operating lease assets

     

    1,033,011

     

     

    1,046,377

    Goodwill and other intangibles, net

     

    7,061,088

     

     

    7,404,602

    Investments in unconsolidated subsidiaries

     

    1,317,705

     

     

    1,196,088

    Other assets, net

     

    2,415,990

     

     

    2,064,732

     

     

     

     

    Total assets

    $

    20,513,389

     

    $

    22,073,491

     

     

     

     

    Liabilities:

     

     

     

    Current liabilities, excluding debt and operating lease liabilities

    $

    6,915,857

     

    $

    6,876,327

    Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1)

     

    447,840

     

     

    1,277,451

    Revolving credit facility

     

    178,000

     

     

    Senior term loans, net

     

     

     

    454,539

    4.875% senior notes, net

     

    596,450

     

     

    595,463

    2.500% senior notes, net

     

    489,262

     

     

    488,121

    Other debt

     

    470,706

     

     

    32,668

    Operating lease liabilities

     

    1,309,976

     

     

    1,348,985

    Other long-term liabilities

     

    1,499,566

     

     

    1,640,820

     

     

     

     

    Total liabilities

     

    11,907,657

     

     

    12,714,374

     

     

     

     

    Equity:

     

     

     

    CBRE Group, Inc. stockholders' equity

     

    7,853,273

     

     

    8,528,193

    Non-controlling interests

     

    752,459

     

     

    830,924

     

     

     

     

    Total equity

     

    8,605,732

     

     

    9,359,117

     

     

     

     

    Total liabilities and equity

    $

    20,513,389

     

    $

    22,073,491

    _______________

    (1)

    Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.

    CBRE GROUP, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (in thousands)

    (Unaudited)

     

     

     

    Twelve Months Ended December 31,

     

     

    2022

     

     

     

    2021

     

    CASH FLOWS FROM OPERATING ACTIVITIES:

     

     

     

    Net income

    $

    1,423,960

     

     

    $

    1,841,915

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

    Depreciation and amortization

     

    613,088

     

     

     

    525,871

     

    Amortization and write-off of financing costs on extinguished debt

     

    7,741

     

     

     

    8,315

     

    Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets

     

    (202,507

    )

     

     

    (142,929

    )

    Asset impairments

     

    58,713

     

     

     

     

    Net realized and unrealized losses (gains), primarily from investments

     

    30,482

     

     

     

    (41,982

    )

    Provision for doubtful accounts

     

    17,026

     

     

     

    24,489

     

    Net compensation expense for equity awards

     

    160,325

     

     

     

    184,934

     

    Equity income from unconsolidated subsidiaries

     

    (228,998

    )

     

     

    (618,697

    )

    Gain recognized upon deconsolidation of SPAC

     

     

     

     

    (187,456

    )

    Distribution of earnings from unconsolidated subsidiaries

     

    389,276

     

     

     

    520,382

     

    Proceeds from sale of mortgage loans

     

    14,526,920

     

     

     

    17,194,606

     

    Origination of mortgage loans

     

    (13,651,807

    )

     

     

    (17,015,839

    )

    Decrease in warehouse lines of credit

     

    (829,611

    )

     

     

    (106,513

    )

    Tenant concessions received

     

    11,605

     

     

     

    31,176

     

    Purchase of equity securities

     

    (28,232

    )

     

     

    (7,154

    )

    Proceeds from sale of equity securities

     

    30,360

     

     

     

    8,709

     

    Decrease (increase) in real estate under development

     

    94,599

     

     

     

    (54,658

    )

    Increase in receivables, prepaid expenses and other assets (including contract and lease assets)

     

    (503,365

    )

     

     

    (765,959

    )

    Increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)

     

    64,102

     

     

     

    104,749

     

    (Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing

     

    (1,995

    )

     

     

    729,703

     

    (Increase) decrease in net income taxes receivable/payable

     

    (133,244

    )

     

     

    248,293

     

    Other operating activities, net

     

    (219,350

    )

     

     

    (117,777

    )

    Net cash provided by operating activities

     

    1,629,088

     

     

     

    2,364,178

     

     

     

     

     

    CASH FLOWS FROM INVESTING ACTIVITIES:

     

     

     

    Capital expenditures

     

    (260,140

    )

     

     

    (209,851

    )

    Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired

     

    (173,582

    )

     

     

    (781,489

    )

    Contributions to unconsolidated subsidiaries

     

    (385,164

    )

     

     

    (334,544

    )

    Distributions from unconsolidated subsidiaries

     

    87,170

     

     

     

    75,853

     

    Investment in VTS

     

    (100,720

    )

     

     

     

    Investment in Altus Power, Inc. Class A stock

     

     

     

     

    (220,001

    )

    Proceeds from sale of marketable securities - special purpose acquisition company trust account

     

     

     

     

    212,722

     

    Other investing activities, net

     

    (19

    )

     

     

    (23,587

    )

    Net cash used in investing activities

     

    (832,455

    )

     

     

    (1,280,897

    )

     

     

     

     

     

    Twelve Months Ended December 31,

     

     

    2022

     

     

     

    2021

     

    CASH FLOWS FROM FINANCING ACTIVITIES:

     

     

     

    Proceeds from revolving credit facility

     

    1,833,000

     

     

     

    26,599

     

    Repayment of revolving credit facility

     

    (1,655,000

    )

     

     

     

    Proceeds from notes payable on real estate

     

    39,265

     

     

     

    78,428

     

    Repayment of notes payable on real estate

     

    (27,723

    )

     

     

    (109,461

    )

    Proceeds from issuance of 2.500% senior notes

     

     

     

     

    492,255

     

    Repurchase of common stock

     

    (1,850,318

    )

     

     

    (368,603

    )

    Acquisition of businesses (cash paid for acquisitions more than three months after purchase date)

     

    (34,443

    )

     

     

    (17,769

    )

    Units repurchased for payment of taxes on equity awards

     

    (37,932

    )

     

     

    (38,864

    )

    Non-controlling interest contributions

     

    2,427

     

     

     

    862

     

    Non-controlling interest distributions

     

    (893

    )

     

     

    (4,572

    )

    Redemption of non-controlling interest-special purpose acquisition company

    and payment of deferred underwriting commission

     

     

     

     

    (205,110

    )

    Repayment of senior term loans

     

     

     

     

    (300,000

    )

    Other financing activities, net

     

    (34,476

    )

     

     

    (44,396

    )

    Net cash used in financing activities

     

    (1,766,093

    )

     

     

    (490,631

    )

    Effect of currency exchange rate changes on cash and cash equivalents and restricted cash

     

    (165,472

    )

     

     

    (92,116

    )

    NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

     

    (1,134,932

    )

     

     

    500,534

     

    CASH AND CASH EQUIVALENTS AND RESTRICTED CASH,

    AT BEGINNING OF YEAR

     

    2,539,781

     

     

     

    2,039,247

     

    CASH AND CASH EQUIVALENTS AND RESTRICTED CASH,

    AT END OF YEAR

    $

    1,404,849

     

     

    $

    2,539,781

     

     

     

     

     

    SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

     

     

     

    Cash paid during the year for:

     

     

     

    Interest

    $

    89,223

     

     

    $

    41,068

     

    Income tax payments, net

     

    604,366

     

     

     

    330,426

     

     

     

     

     

    Non-cash investing and financing activities:

     

     

     

    Deferred purchase consideration - Turner & Townsend

    $

     

     

    $

    485,414

     

    Non-controlling interest as part of Turner & Townsend Acquisition

     

     

     

     

    774,122

     

    Investment in alignment shares and private placement warrants of Altus Power, Inc.

     

     

     

     

    141,871

     

    Reduction in redeemable non-controlling interest - special purpose acquisition company

     

     

     

     

    211,501

     

    Reduction of trust account - special purpose acquisition company

     

     

     

     

    189,801

     

     

     

     

     

    Non-GAAP Financial Measures

    The following measures are considered “non-GAAP financial measures” under SEC guidelines:
    (i)

    Net revenue

    (ii)

    Core EBITDA

    (iii)

    Business line operating profit/loss

    (iv)

    Segment operating profit on revenue and net revenue margins

    (v)

    Free cash flow

    (vi)

    Net debt

    (vii)

    Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”)

    (viii)

    Core EPS

    These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

    Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.

    With respect to net revenue, net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company’s overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business.

    With respect to Core EBITDA, business line operating profit/loss, and segment operating profit on revenue and net revenue margins, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income tax and the accounting effects of capital spending. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of Core EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The Core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.

    With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company’s net leverage ratio.

    With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments (Altus Power, Inc. and VC investments) that are not directly related to our business segments. These can be volatile and are often non-cash in nature.

    Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in thousands, except share and per share data):

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

     

     

    2022

     

     

     

    2021

     

     

     

    2022

     

     

     

    2021

     

     

     

     

     

     

     

     

     

    Net income attributable to CBRE Group, Inc.

    $

    81,112

     

     

    $

    691,992

     

     

    $

    1,407,370

     

     

    $

    1,836,574

     

     

     

     

     

     

     

     

     

    Plus / minus:

     

     

     

     

     

     

     

    Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions

     

    45,498

     

     

     

    33,833

     

     

     

    166,176

     

     

     

    86,824

     

    Integration and other costs related to acquisitions

     

    16,656

     

     

     

    20,207

     

     

     

    40,702

     

     

     

    44,552

     

    Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue

     

    (13,428

    )

     

     

    15,978

     

     

     

    (4,228

    )

     

     

    49,941

     

    Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period

     

    (668

    )

     

     

    (6,497

    )

     

     

    (5,115

    )

     

     

    (5,725

    )

    Costs incurred related to legal entity restructuring

     

    633

     

     

     

     

     

     

    13,447

     

     

     

     

    Asset impairments

     

    21,957

     

     

     

     

     

     

    58,713

     

     

     

     

    Write-off of financing costs on extinguished debt

     

     

     

     

     

     

     

    1,860

     

     

     

     

    Net fair value adjustments on strategic non-core investments

     

    167,188

     

     

     

    (12,318

    )

     

     

    175,153

     

     

     

    (54,354

    )

    Net gain on deconsolidation upon merger of the SPAC with and into Altus Power, net of associated costs

     

     

     

     

    (156,405

    )

     

     

     

     

     

    (156,405

    )

    Costs associated with efficiency and cost-reduction initiatives

     

    98,607

     

     

     

     

     

     

    117,534

     

     

     

     

    Provision associated with Telford’s fire safety remediation efforts

     

    138,937

     

     

     

     

     

     

    185,921

     

     

     

     

    Impact of adjustments on non-controlling interest

     

    (14,627

    )

     

     

    (3,701

    )

     

     

    (40,124

    )

     

     

    (3,701

    )

    Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core investments

     

    (117,458

    )

     

     

    26,527

     

     

     

    (254,291

    )

     

     

    12,294

     

    Core net income attributable to CBRE Group, Inc., as adjusted

    $

    424,407

     

     

    $

    609,616

     

     

    $

    1,863,118

     

     

    $

    1,810,000

     

     

     

     

     

     

     

     

     

    Core diluted income per share attributable to CBRE Group, Inc., as adjusted

    $

    1.33

     

     

    $

    1.80

     

     

    $

    5.69

     

     

    $

    5.33

     

     

     

     

     

     

     

     

     

    Weighted average shares outstanding for diluted income per share

     

    319,221,283

     

     

     

    339,466,153

     

     

     

    327,696,115

     

     

     

    339,717,401

     

    Core EBITDA is calculated as follows (in thousands, totals may not add due to rounding):

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

     

     

    2022

     

     

     

    2021

     

     

     

    2022

     

     

     

    2021

     

     

     

     

     

     

     

     

     

    Net income attributable to CBRE Group, Inc.

    $

    81,112

     

     

    $

    691,992

     

     

    $

    1,407,370

     

     

    $

    1,836,574

     

    Net income attributable to non-controlling interests

     

    4,981

     

     

     

    882

     

     

     

    16,590

     

     

     

    5,341

     

    Net income

     

    86,093

     

     

     

    692,874

     

     

     

    1,423,960

     

     

     

    1,841,915

     

     

     

     

     

     

     

     

     

    Adjustments:

     

     

     

     

     

     

     

    Depreciation and amortization

     

    159,561

     

     

     

    162,144

     

     

     

    613,088

     

     

     

    525,871

     

    Asset impairments

     

    21,957

     

     

     

     

     

     

    58,713

     

     

     

     

    Interest expense, net of interest income

     

    17,698

     

     

     

    15,436

     

     

     

    68,999

     

     

     

    50,352

     

    Write-off of financing costs on extinguished debt

     

     

     

     

     

     

     

    1,860

     

     

     

     

    (Benefit from) provision for income taxes

     

    (25,461

    )

     

     

    224,227

     

     

     

    234,230

     

     

     

    567,506

     

    Integration and other costs related to acquisitions

     

    16,656

     

     

     

    20,207

     

     

     

    40,702

     

     

     

    44,552

     

    Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue

     

    (13,428

    )

     

     

    15,978

     

     

     

    (4,228

    )

     

     

    49,941

     

    Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period

     

    (668

    )

     

     

    (6,497

    )

     

     

    (5,115

    )

     

     

    (5,725

    )

    Costs incurred related to legal entity restructuring

     

    633

     

     

     

     

     

     

    13,447

     

     

     

     

    Costs associated with efficiency and cost-reduction initiatives

     

    98,607

     

     

     

     

     

     

    117,534

     

     

     

     

    Provision associated with Telford’s fire safety remediation efforts

     

    138,937

     

     

     

     

     

     

    185,921

     

     

     

     

    Net fair value adjustments on strategic non-core investments

     

    167,188

     

     

     

    (12,318

    )

     

     

    175,153

     

     

     

    (54,354

    )

    Net gain on deconsolidation upon merger of the SPAC with and into Altus Power, net of associated costs

     

     

     

     

    (156,405

    )

     

     

     

     

     

    (156,405

    )

    Core EBITDA

    $

    667,773

     

     

    $

    955,646

     

     

    $

    2,924,264

     

     

    $

    2,863,653

     

    Revenue includes client reimbursed pass-through costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Reimbursement related to subcontracted vendor work generally has no margin and has been excluded from net revenue. Reconciliations are shown below (dollars in thousands):

     

    Three Months Ended December 31,

     

     

    2022

     

     

    2021

    Property Management Revenue

     

     

     

    Revenue

    $

    474,491

     

    $

    455,921

    Less: Pass through costs also recognized as revenue

     

    18,683

     

     

    16,572

    Net revenue

    $

    455,808

     

    $

    439,349

     

    Three Months Ended December 31, 2022

     

    GWS (excluding Turner & Townsend)

     

    Turner & Townsend

     

    Total GWS

    GWS Revenue

     

     

     

     

     

    Revenue

    $

    4,935,630

     

    $

    358,091

     

    $

    5,293,721

    Less: Pass through costs also recognized as revenue

     

    3,156,932

     

     

    43,765

     

     

    3,200,697

    Net revenue

    $

    1,778,698

     

    $

    314,326

     

    $

    2,093,024

     

    Three Months Ended December 31, 2021

     

    GWS (excluding Turner & Townsend)

     

    Turner & Townsend

     

    Total GWS

    GWS Revenue (1)

     

     

     

     

     

    Revenue

    $

    4,629,406

     

    $

    193,763

     

    $

    4,823,169

    Less: Pass through costs also recognized as revenue

     

    2,948,545

     

     

    19,247

     

     

    2,967,792

    Net revenue

    $

    1,680,861

     

    $

    174,516

     

    $

    1,855,377

    _______________

    (1)

    Only two months activity for Turner & Townsend presented due to acquisition having occurred on November 1, 2021.

     

    Three Months Ended December 31,

     

     

    2022

     

     

    2021

    Facilities Management Revenue

     

     

     

    Revenue

    $

    3,908,441

     

    $

    3,771,642

    Less: Pass through costs also recognized as revenue

     

    2,579,679

     

     

    2,486,659

    Net revenue

    $

    1,328,762

     

    $

    1,284,983

     

    Three Months Ended December 31, 2022

     

    GWS Project Management (excluding Turner & Townsend)

     

    Turner & Townsend

     

    Total GWS Project Management

    Project Management Revenue

     

     

     

     

     

    Revenue

    $

    1,027,189

     

    $

    358,091

     

    $

    1,385,280

    Less: Pass through costs also recognized as revenue

     

    577,253

     

     

    43,765

     

     

    621,018

    Net revenue

    $

    449,936

     

    $

    314,326

     

    $

    764,262

     

    Three Months Ended December 31, 2021

     

    GWS Project Management (excluding Turner & Townsend)

     

    Turner & Townsend

     

    Total GWS Project Management

    Project Management Revenue

     

     

     

     

     

    Revenue

    $

    857,764

     

    $

    193,763

     

    $

    1,051,527

    Less: Pass through costs also recognized as revenue

     

    461,885

     

     

    19,248

     

     

    481,133

    Net revenue

    $

    395,878

     

    $

    174,516

     

    $

    570,394

    Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in thousands):

     

    Three Months Ended December 31,

    Real Estate Investments

     

    2022

     

     

     

    2021

     

    Investment management operating profit

    $

    23,658

     

     

    $

    40,823

     

    Global real estate development operating (loss) profit

     

    (6,146

    )

     

     

    122,162

     

    Hana and/or segment overhead operating loss

     

    (345

    )

     

     

    (6,861

    )

    Real estate investments segment operating profit

    $

    17,167

     

     

    $

    156,124

     

     


    The CBRE Group Registered (A) Stock at the time of publication of the news with a fall of -1,82 % to 81,00USD on Tradegate stock exchange (22. Februar 2023, 11:25 Uhr).

    Business Wire (engl.)
    0 Follower
    Autor folgen

    CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2022 CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the fourth quarter and year ended December 31, 2022. Consolidated Financial Results Overview The following table presents highlights of CBRE performance (dollars in millions, except …

    Schreibe Deinen Kommentar

    Disclaimer