3f07dcc08967332b42ccfef9c88ceb3e20129cac05e9dbf73124727fd298b959

78c8836deeeecc8d8f3fb58aa780770f76c0ea11e5bd5e995f3f66746204518c

United States

United Kingdom

All other countries

Americas

Europe, Middle East, and Africa (EMEA)

Asia Pacific

Global Investment Management

Development Services

Total Revenue

be7cda8d4d53491f1e957a17c4e73954410af1a8c5e528e38b07faf1ab3309ef

004975c662d223fad4ebd309641319851d675ecde16d45e5d27c6b5990c1eb61

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

e101958001de81347a7c51ee106d4d703709ea90b422f2b32ed698a7ffd1a17e

Revenue (USD, millions)

Cost of revenue (USD, millions)

Operating, administrative and other (USD, millions)

Depreciation and amortization (USD, millions)

Total costs and expenses (USD, millions)

Gain on disposition of real estate (USD, millions)

Operating income (USD, millions)

Equity income from unconsolidated subsidiaries (USD, millions)

Other income (loss) (USD, millions)

Interest expense, net of interest income (USD, millions)

Income before provision for income taxes (USD, millions)

Provision for income taxes (USD, millions)

Net income (USD, millions)

Net income attributable to non-controlling interests (USD, millions)

Net income attributable to CBRE Group, Inc. (USD, millions)

Net income per share attributable to CBRE Group, Inc. - Basic (USD)

Weighted average shares outstanding for basic income per share (shares)

Net income per share attributable to CBRE Group, Inc. - Diluted (USD)

Weighted average shares outstanding for diluted income per share (shares)

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b0957dcd0071c0069fd3b69e7c175b159d374bf9fe7bc24969bd715c81c5a5c2

Proceeds from revolving credit facility (USD, millions)

Repayment of revolving credit facility (USD, millions)

Proceeds from senior term loans (USD, millions)

Repayment of senior term loans (USD, millions)

Repurchase of common stock (USD, millions)

Other financing activities, net (USD, millions)

Net cash provided by (used in) financing activities (USD, millions)

Effect of currency exchange rate changes on cash and cash equivalents and restricted cash (USD, millions)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (USD, millions)

Interest paid (USD, millions)

Income tax payments, net (USD, millions)

Deferred and/or contingent consideration (USD, millions)

Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets (USD, millions)

Net compensation expense for equity awards (USD, millions)

Proceeds from sale of mortgage loans (USD, millions)

Origination of mortgage loans (USD, millions)

Increase (decrease) in warehouse lines of credit (USD, millions)

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

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

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

(Increase) decrease in net income taxes receivable/payable (USD, millions)

Other operating activities, net (USD, millions)

Net cash provided by operating activities (USD, millions)

Capital expenditures (USD, millions)

Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired (USD, millions)

Contributions to unconsolidated subsidiaries (USD, millions)

Acquisition and development of real estate assets (USD, millions)

Other investing activities, net (USD, millions)

Net cash used in investing activities (USD, millions)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF YEAR (USD, millions)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF YEAR (USD, millions)

d14344da4c8149be19cd65f6a0bdf16b0090f2254f500f045c58133ae1e480d2

CBRE’s cash and cash equivalents dropped in Q2 2024 primarily due to a combination of factors. Although the company saw an improvement in its operating activities—with the net cash used in operating activities reducing from **$756 million** to **$205 million**—it still reported a net outflow. Additionally, significant **cash outflows in investing activities** of **$1,307 million** and a **negative impact from currency exchange rate changes** of **$68 million** further contributed to the decline. While financing activities provided **$1,242 million**, these factors together led to a net decrease in cash and cash equivalents and restricted cash of **$338 million** over the six months ended June 30, 2024.  **[0001138118-24-000021_cbre-20240725x8kexx991.htm:11]** 

Why did Cash and cash equivalents drop in Q2 2024?

The spike in Q1 2024 was driven by two main actions: **the issuance of $500 million in senior notes** to support the acquisition of J&J Worldwide Services, Inc. and **an increase in revolving credit facility usage by $820 million**, which marked the first significant use since December 31, 2023.  **[0001138118-24-000014_cbre-20240331.htm:21]** **[0001138118-24-000011_cbre-20240503x8kexx991.htm:2]** **[0001138118-24-000011_cbre-20240503x8kexx991.htm:10]** **[0001138118-24-000014_cbre-20240331.htm:3]** 

What drove the spike in long-term debt in Q1 2024?

Other short-term borrowings surged in Q4 2024 because they increased significantly from **$16 million as of December 31, 2023** to **$222 million as of December 31, 2024**. This surge is likely linked to CBRE's broader financing activities, including the establishment of a **commercial paper program** in December 2024 that allowed the company to issue short-term unsecured notes for general corporate purposes, as well as contributions from its revolving credit facility and other borrowing arrangements, although the documents do not detail more specific reasons.  **[0001138118-25-000005_cbre-20241231.htm:84]** **[0001138118-25-000005_cbre-20241231.htm:127]** **[0001138118-25-000005_cbre-20241231.htm:66]** 

Why did Other short-term borrowings surge in Q4 2024?

The documents do not provide a definitive explanation for the drop in the revolving credit facility in Q4 2024. They note that the Q4 outstanding amount was **$132 million**  **[0001138118-25-000005_cbre-20241231.htm:84]** —in contrast to **$940 million** reported in Q2 2024  **[0001138118-24-000023_cbre-20240630.htm:3]** —but they explain that while there was significant use of the facility related to various capital allocation activities, no explicit reasons are provided for the sharp drop in Q4.  **[0001138118-25-000005_cbre-20241231.htm:66]** **[0001138118-25-000005_cbre-20241231.htm:131]** 

What explains the sharp drop in the Revolving credit facility in Q4 2024?

The increase in **Total Assets** in Q3 2024 was driven by several factors. **Goodwill** rose by **$649 million** and **other intangible assets, net** increased by **$291 million**, likely linked to acquisitions or adjustments from earlier acquisitions. **Warehouse receivables** grew significantly by **$763 million**, reflecting higher loan origination activity. Additionally, there were increases in **real estate under development** by **$157 million** and **operating lease assets** by **$92 million**. Lastly, growth in **contract assets and receivables** indicated higher business activity and revenue growth.  **[0001138118-24-000029_cbre-20240930.htm:3]** **[0001138118-24-000027_cbre-20241024x8kexx991.htm:14]** 

What factors contributed to the Total Assets increase in Q3 2024?

d47b8177698e0bc53ab8a9d9963f057ac08bb71999363ccf76cb8cd52edc86ca

In Q1 2023, the operating cash flow was much lower because **CBRE experienced lower earnings**, received **lower net equity distributions from unconsolidated subsidiaries**, and generated **lower net proceeds from the sale of equity securities** compared to Q1 2022. These negative factors were only partially offset by more favorable timing of cash tax payments and refunds, as well as lower outflows related to accounts payable and accrued expenses, resulting in a significantly larger cash outflow overall.  **[0001138118-23-000015_cbre-20230331.htm:55]** 

Why was Operating Cash Flow much lower in Q1 2023?

Operating cash flow in Q2 2023 was nearly flat primarily due to a combination of factors such as **lower earnings**, **reduced net equity distributions from unconsolidated subsidiaries**, and **lower proceeds from equity securities** compared to the previous period. Additionally, **non-recurring non-cash charges**, which had provided a boost in earlier periods, did not recur in Q2 2023, while **net working capital and real estate development** activities contributed to net cash outflows. Collectively, these elements offset each other, resulting in a nearly flat operating cash flow for the period.  **[0001138118-23-000025_cbre-20230630.htm:64]** 

What led to Operating Cash Flow nearly flat in Q2 2023?

The significant decrease in full-year Operating Cash Flow for FY 2023, which dropped to **$480 million** compared to **$1,629 million** in FY 2022, was primarily driven by a combination of factors. **Lower earnings** (approximately **$400 million lower**) impacted the cash flow, and this was compounded by **adverse net working capital changes**—including delayed receivables collections and higher outflows related to net bonus payments, increased compensation, and other employee benefits. Additionally, **non-cash charges** played a role, such as a decrease in share-based compensation expense and adjustments from net realized gains and acquisitions adjustments. There were also **lower net equity distributions** from unconsolidated subsidiaries, notably in the Real Estate Investments segment, as a result of constrained debt capital availability and reduced asset monetization. Some of these declines were partially offset by **lower non-cash mortgage servicing rights revenue** recorded in FY 2023.  **[0001138118-24-000006_cbre-20231231.htm:60]** 

Why is full-year Operating Cash Flow significantly down in FY 2023?

The documents do not provide any information regarding the factors that contributed to the steeper free cash flow decline in Q1 2023. No details on free cash flow trends or factors are mentioned in the documents presented.  **[0001138118-22-000018_cbre-20220331.htm:6]** **[0001138118-23-000015_cbre-20230331.htm:6]** **[0001138118-23-000013_cbre-20230427x8kexx991.htm:0]** **[0001138118-23-000013_cbre-20230427x8kexx991.htm:2]** 

What factors contributed to the steeper free cash flow decline in Q1 2023?

43f8446b23ee283b2d52fc1dd77e5ad239f1951be0b28e2aadfb610519188380

The operating income in Q1 2023 was significantly impacted by several factors. **Revenue declines** were evident in key segments—Advisory Services experienced about a **40% decrease** in revenue from property sales and loan origination, while Real Estate Investments recorded fewer large asset sales compared to Q1 2022. Additionally, **operational costs** rose—with operating, administrative, and other expenses increasing by **8.9%** and depreciation and amortization expenses by **8.4%**. Furthermore, **gains on real estate dispositions** fell dramatically to **$3.1 million** from **$21.6 million**, and there was an approximate **89.7% decline** in equity income from unconsolidated subsidiaries. These internal challenges were compounded by broader **macroeconomic pressures**, including elevated interest rates, inflation, and stress in the banking system, all contributing to the significant drop in operating income to **$37.4 million** in Q1 2023.  **[0001138118-23-000015_cbre-20230331.htm:4]** **[0001138118-23-000013_cbre-20230427x8kexx991.htm:0]** **[0001138118-23-000013_cbre-20230427x8kexx991.htm:1]** **[CBRE_3356803_1]** **[0001138118-23-000015_cbre-20230331.htm:48]** **[0001138118-23-000015_cbre-20230331.htm:44]** 

Why was Operating income so low in Q1 2023?

The surge in **net income** in **Q4 2023** was driven by multiple factors. **Improved operating income** played a key role, increasing significantly compared to the previous year. Additionally, there was a substantial **equity income recovery** from unconsolidated subsidiaries, which shifted from a loss in the previous period to a strong positive contribution in Q4 2023. The company also benefited from **lower asset impairments**, having recorded none in Q4 2023 compared to millions in the prior quarter. Moreover, **robust revenue growth**—including strong performance in the Global Workplace Solutions segment—helped boost overall results, even as the higher tax provision reflected the improved profitability.  **[0001138118-24-000003_cbre-20240215x8kexx991.htm:0]** **[0001138118-24-000003_cbre-20240215x8kexx991.htm:1]** **[0001138118-24-000003_cbre-20240215x8kexx991.htm:10]** 

What drove the surge in net income in Q4 2023?

The significant EPS jump in **Q4 2023** was primarily driven by **higher net income** resulting from improved operating performance, which increased net income from **$81 million to $477 million** (a **487.9% increase**) compared to Q4 2022. Additionally, **cost reductions** played a major role—CBRE's expenses related to restructuring and efficiency initiatives dropped from **$99 million to $14 million**, and the **$139 million provision** for fire safety remediation recorded in Q4 2022 was absent in Q4 2023. Furthermore, **share repurchases** reduced the weighted average shares outstanding, which further amplified earnings per share.  **[0001138118-24-000003_cbre-20240215x8kexx991.htm:10]** **[0001138118-24-000003_cbre-20240215x8kexx991.htm:0]** **[0001138118-24-000003_cbre-20240215x8kexx991.htm:17]** 

What caused the significant EPS jump in Q4 2023?

f8a2c4d5f29a23505e2ff9b16f0123894d8083f545eb8c0d9f4699d603a713f7

9c01d97a3b1f0e0fecde8f5b4e969080b785ff6d4204866fa5ced95e72baf5fd

CBRE Group Inc (CBRE)

Financials