99de4bd1d6f242362d233246f61bf81dac7c41b317133d736031893c5d6a5d6c

CBRE is the world's largest commercial real estate services and investment firm, providing a comprehensive range of services to real estate investors and occupiers worldwide. The company operates through three main business segments: Advisory Services, Global Workplace Solutions (GWS), and Real Estate Investments (REI) **[0001138118-24-000006_cbre-20231231.htm:3]** **[0001138118-24-000014_cbre-20240331.htm:37]**. CBRE offers services such as property leasing, capital markets, mortgage servicing, property management, valuation, integrated outsourcing, investment management, and development services **[0001138118-24-000006_cbre-20231231.htm:4]** **[0001138118-24-000029_cbre-20240930.htm:40]**.

1. **Global Workplace Solutions (GWS)** - Provides integrated outsourcing services, including facilities and project management, primarily to occupiers of real estate, demonstrating consistent growth across market cycles **[0001138118-24-000014_cbre-20240331.htm:37]** **[0001138118-24-000029_cbre-20240930.htm:40]**.
2. **Advisory Services** - Offers property leasing, capital markets (property sales and mortgage origination), mortgage servicing, property management, and valuation, with transactional components being more cyclical and other services more resilient to macroeconomic conditions **[0001138118-24-000006_cbre-20231231.htm:4]**.
3. **Real Estate Investments (REI)** - Involves investment management and development services, focusing on the U.S., U.K., and Continental Europe, managing assets under management and development projects to diversify revenue streams **[0001138118-24-000014_cbre-20240331.htm:37]**.

e26457c59329714853cf86a57511d41d3daf2358615bd8212ea9d0b44aa585e0

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **United States** (USD million) | **4,145**  **[0001138118-23-000015_cbre-20230331.htm:32]**  | **4,211**  **[0001138118-23-000025_cbre-20230630.htm:33]**  | N/A | N/A | **4,422**  **[0001138118-24-000014_cbre-20240331.htm:32]**  | **4,670**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **5,210**  **[0001138118-24-000029_cbre-20240930.htm:36]**  |
| **United Kingdom** (USD million) | **995**  **[0001138118-23-000015_cbre-20230331.htm:32]**  | **1,056**  **[0001138118-23-000025_cbre-20230630.htm:33]**  | N/A | N/A | **1,085**  **[0001138118-24-000014_cbre-20240331.htm:32]**  | **1,195**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **1,257**  **[0001138118-24-000029_cbre-20240930.htm:36]**  |
| **All Other Countries** (USD million) | **2,271**  **[0001138118-23-000015_cbre-20230331.htm:32]**  | **2,453**  **[0001138118-23-000025_cbre-20230630.htm:33]**  | N/A | N/A | **2,428**  **[0001138118-24-000014_cbre-20240331.htm:32]**  | **2,526**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **2,569**  **[0001138118-24-000029_cbre-20240930.htm:36]**  |

622b905159fd15b9947a62afe8f29fb2a9002fb72a65bb25df2c1f0f4d85d5ee

78c8836deeeecc8d8f3fb58aa780770f76c0ea11e5bd5e995f3f66746204518c

| Metric [Unit: $ million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Advisory Services**    | **2,613**  **[0001138118-23-000005_cbre-20220223x8kexx991.htm:0]**  | **1,853.9**  **[0001138118-23-000015_cbre-20230331.htm:31]**  | **2,041.7**  **[0001138118-23-000025_cbre-20230630.htm:32]**  | **2,012.8**  **[0001628280-23-035352_cbre-20231027x8kexx991.htm:0]**  | **2,591**  **[0001138118-24-000003_cbre-20240215x8kexx991.htm:0]**  | **1,904**  **[0001138118-24-000011_cbre-20240503x8kexx991.htm:0]**  | **2,218**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **2,395**  **[0001138118-24-000027_cbre-20241024x8kexx991.htm:0]**  |
| **Global Workplace Solutions** | **5,294**  **[0001138118-23-000005_cbre-20220223x8kexx991.htm:1]**  | **5,337.7**  **[0001138118-23-000015_cbre-20230331.htm:31]**  | **5,426.1**  **[0001138118-23-000025_cbre-20230630.htm:32]**  | **5,648.7**  **[0001628280-23-035352_cbre-20231027x8kexx991.htm:0]**  | **6,103**  **[0001138118-24-000003_cbre-20240215x8kexx991.htm:1]**  | **5,809**  **[0001138118-24-000011_cbre-20240503x8kexx991.htm:1]**  | **5,944**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **6,346**  **[0001138118-24-000027_cbre-20241024x8kexx991.htm:0]**  |
| **Real Estate Investments** | **291**  **[0001138118-23-000005_cbre-20220223x8kexx991.htm:1]**  | **223.8**  **[0001138118-23-000015_cbre-20230331.htm:31]**  | **255.7**  **[0001138118-23-000025_cbre-20230630.htm:32]**  | **210.4**  **[0001628280-23-035352_cbre-20231027x8kexx991.htm:0]**  | **262**  **[0001138118-24-000003_cbre-20240215x8kexx991.htm:1]**  | **228**  **[0001138118-24-000011_cbre-20240503x8kexx991.htm:1]**  | **232**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **302**  **[0001138118-24-000027_cbre-20241024x8kexx991.htm:0]**  |
| **Corporate, Other and Eliminations** | N/A | **-4.3**  **[0001138118-23-000015_cbre-20230331.htm:31]**  | **-3.5**  **[0001138118-23-000025_cbre-20230630.htm:32]**  | **-3.8**  **[0001628280-23-035352_cbre-20231027x8kexx991.htm:0]**  | N/A | **-6**  **[0001138118-24-000014_cbre-20240331.htm:32]**  | **-3**  **[0001138118-24-000023_cbre-20240630.htm:35]**  | **-7**  **[0001138118-24-000027_cbre-20241024x8kexx991.htm:0]**  |

e41a35f9c3b1df4507edbca6f8d42ebdbfcf75be67eeae4f458b8475c8ef91c2

| Metric                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **AUM - Funds**                             | 66.2  **[0001138118-23-000009_cbre-20221231.htm:69]**  | 66.0  **[0001138118-23-000015_cbre-20230331.htm:51]**  | 64.8  **[0001138118-23-000025_cbre-20230630.htm:58]**  | 64.2  **[0001628280-23-035353_cbre-20230930.htm:57]**  | 65.3  **[0001138118-24-000006_cbre-20231231.htm:55]**  | 64.2  **[0001138118-24-000014_cbre-20240331.htm:42]**  | 64.5  **[0001138118-24-000023_cbre-20240630.htm:51]**  | 67.0  **[0001138118-24-000029_cbre-20240930.htm:49]**  |
| **AUM - Separate Accounts**                 | 73.2  **[0001138118-23-000009_cbre-20221231.htm:69]**  | 72.8  **[0001138118-23-000015_cbre-20230331.htm:51]**  | 72.9  **[0001138118-23-000025_cbre-20230630.htm:58]**  | 71.3  **[0001628280-23-035353_cbre-20230930.htm:57]**  | 72.8  **[0001138118-24-000006_cbre-20231231.htm:55]**  | 70.8  **[0001138118-24-000014_cbre-20240331.htm:42]**  | 69.1  **[0001138118-24-000023_cbre-20240630.htm:51]**  | 71.3  **[0001138118-24-000029_cbre-20240930.htm:49]**  |
| **AUM - Securities**                        | 9.9  **[0001138118-23-000009_cbre-20221231.htm:69]**   | 10.1  **[0001138118-23-000015_cbre-20230331.htm:51]**  | 9.9  **[0001138118-23-000025_cbre-20230630.htm:58]**   | 8.7  **[0001628280-23-035353_cbre-20230930.htm:57]**   | 9.4  **[0001138118-24-000006_cbre-20231231.htm:55]**   | 9.0  **[0001138118-24-000014_cbre-20240331.htm:42]**   | 8.9  **[0001138118-24-000023_cbre-20240630.htm:51]**   | 10.0  **[0001138118-24-000029_cbre-20240930.htm:49]**  |
| **Total AUM**                               | 149.3  **[0001138118-23-000009_cbre-20221231.htm:69]**  | 148.9  **[0001138118-23-000015_cbre-20230331.htm:51]**  | 147.6  **[0001138118-23-000025_cbre-20230630.htm:58]**  | 144.2  **[0001628280-23-035353_cbre-20230930.htm:57]**  | 147.5  **[0001138118-24-000006_cbre-20231231.htm:55]**  | 144.0  **[0001138118-24-000014_cbre-20240331.htm:42]**  | 142.5  **[0001138118-24-000023_cbre-20240630.htm:51]**  | 148.3  **[0001138118-24-000029_cbre-20240930.htm:49]**  |
| **Unpaid Principal Balances**               | 37.9  **[0001138118-23-000009_cbre-20221231.htm:140]**  | 39.5  **[0001138118-23-000015_cbre-20230331.htm:26]**  | 40.3  **[0001138118-23-000025_cbre-20230630.htm:26]**  | 41.1  **[0001628280-23-035353_cbre-20230930.htm:26]**  | 41.5  **[0001138118-24-000006_cbre-20231231.htm:136]**  | 42.1  **[0001138118-24-000014_cbre-20240331.htm:28]**  | 42.9  **[0001138118-24-000023_cbre-20240630.htm:29]**   | 43.8  **[0001138118-24-000029_cbre-20240930.htm:29]**  |
| **Subject to Loss Sharing**                 | 34.2  **[0001138118-23-000009_cbre-20221231.htm:140]**  | 35.8  **[0001138118-23-000015_cbre-20230331.htm:26]**  | 36.8  **[0001138118-23-000025_cbre-20230630.htm:26]**  | 37.5  **[0001628280-23-035353_cbre-20230930.htm:26]**  | 38.0  **[0001138118-24-000006_cbre-20231231.htm:136]**  | 38.7  **[0001138118-24-000014_cbre-20240331.htm:28]**  | 39.5  **[0001138118-24-000023_cbre-20240630.htm:29]**   | 40.4  **[0001138118-24-000029_cbre-20240930.htm:29]**  |

caf57db913224ff70354b141aac662bcba8fe87beab26a87c2a29cb1964e976c

db185a51f5f0c5f353e2a51d49c1c76ccbbe1664c923e216f7176b3a9f43501f

1. Given your assertion that CBRE doesn't need a capital markets recovery to surpass prior peak earnings in 2025, what specific strategies are you implementing to ensure growth in your resilient businesses if the capital markets recovery is slower than expected?

2. You mentioned having considerable capacity in your mortgage origination and investment sales teams without the need to add talent materially; how do you plan to balance this with investing in growth and ensuring you aren't understaffed if there's a sharp uptick in capital markets activity?

3. With the integration of the CBRE project management business with Turner & Townsend expected to start 2025 with considerable momentum, what challenges do you anticipate in merging these operations, and how will you address potential integration risks that could affect projected growth?

4. Office leasing revenue increased significantly, fueled by accelerated demand; however, considering the uncertainties around return-to-office trends, how sustainable is this growth, and what are your expectations for office leasing activity if remote work continues to influence occupier decisions?

5. Considering that the development arm like Trammell Crow Company can introduce earnings volatility and potentially contribute to a conglomerate discount, have you evaluated strategic options such as spinning off or restructuring to unlock shareholder value, especially given real estate asset managers' higher trading multiples?

967f178d1f8c86b15bc1b2d71cd7305985d6d42e72f964bb31a2f44667609956

United States

United Kingdom

All other countries

Americas

Europe, Middle East, and Africa (EMEA)

Asia Pacific

Global Investment Management

Development Services

Total Revenue

4ff9c65d7f1a956b6b1f4e934fc03dc0e5f828d11b70814ff0877c0d74dabea9

- JLL, a global commercial real estate services company publicly traded in the U.S.  **[0001138118-24-000006_cbre-20231231.htm:44]** 
- Colliers International Group Inc. (CIGI), a company with significant commercial real estate or real estate capital markets businesses  **[0001138118-24-000006_cbre-20231231.htm:44]** 
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- Marcus & Millichap, Inc. (MMI), a company with significant commercial real estate or real estate capital markets businesses  **[0001138118-24-000006_cbre-20231231.htm:44]** 
- Newmark Group Inc. (NMRK), a company with significant commercial real estate or real estate capital markets businesses  **[0001138118-24-000006_cbre-20231231.htm:44]** 
- Savills plc (SVS.L), a company with significant commercial real estate or real estate capital markets businesses  **[0001138118-24-000006_cbre-20231231.htm:44]** 
- Walker & Dunlop, Inc. (WD), a company with significant commercial real estate or real estate capital markets businesses  **[0001138118-24-000006_cbre-20231231.htm:44]** 

57478acb92ebd5092f37ba2a8fa0bde3a1482ed4b77c9bed2dd6eed59050316c

262c707041e1c277dad8f6f06569666ebecf2560aca055e824639334e6df0b7d

e312974f0ca29209d4d051591fb033192b11578faff1f73c543407fa530bbb52

**AUM - Funds**

**AUM - Separate Accounts**

**AUM - Securities**

**Unpaid Principal Balances**

**Subject to Loss Sharing**

a85b07dff430563c0914a3baa6046126c9c96466a516a3a3c1060c7667c2949c

fbe3e18a232d195deee523bc5d05b97db600261b5676a234704246b479d23b70

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Core EPS**: Raised to **$4.95 to $5.05**.
  2. **Advisory Segment**: Over **20% SOP growth** expected.
  3. **GWS Segment**: SOP growth in the high teens range.
  4. **REI Segment**: Multiple development asset sales anticipated in Q4.
  5. **Capital Markets**: Investment sales revenue expected to grow by **30%** in Q4.
  6. **Overall Earnings**: Confidence in achieving record EPS in 2025  **[CBRE_3403619_1]** **[CBRE_3403619_3]** **[CBRE_3394283_0]** **[CBRE_3403619_19]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Advisory Segment**: Mid- to high teens SOP growth.
  2. **GWS Segment**: Mid-teens net revenue growth; SOP margin better than 11.3% from 2023.
  3. **REI Segment**: Improved SOP outlook due to large development asset sales in Q4.
  4. **Overall Core EPS**: Increased to **$4.70 to $4.90**.
  5. **Fourth Quarter Expectations**: Over 45% of full year EPS expected.
  6. **Longer-term Outlook**: Confidence in record EPS in 2025  **[CBRE_3394283_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core EPS**: Expected to be **$4.25 to $4.65**.
  2. **GWS Segment**: Mid-teens SOP growth; revenue growth back-end loaded.
  3. **Advisory Services**: Mid-teens SOP growth.
  4. **REI Segment**: Slight SOP decline expected.
  5. **Free Cash Flow**: Approximately **$1 billion**.
  6. **Tax Rate**: Over **19%**, excluding one-time benefits.
  7. **EBITDA Margins**: Expected to increase.
  8. **Revenue Growth in GWS**: Nearly **$900 million** anticipated  **[CBRE_3382625_1]** **[CBRE_3382625_4]** **[CBRE_3382625_2]** **[CBRE_3382625_3]** **[CBRE_3382625_17]** **[CBRE_3382625_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core EPS**: **$4.25 to $4.65**.
  2. **Advisory Segment**: Mid- to high single-digit net revenue growth; mid-teens SOP growth.
  3. **Capital Markets Revenue**: Mid-single digits growth.
  4. **Leasing**: Modest growth.
  5. **Remaining Advisory Business Lines**: Low double-digit net revenue growth.
  6. **GWS Segment**: Mid-teens SOP growth.
  7. **REI Segment**: SOP slightly below 2023.
  8. **Investment Management**: Modest operating profit increase.
  9. **Free Cash Flow**: At least **$1 billion**.
  10. **Net Leverage**: Expected to end 2024 around one turn.
  11. **Cost Savings**: $150 million run rate cost savings initiative  **[CBRE_3373524_4]** **[CBRE_3373524_3]** **[CBRE_3373524_2]** **[CBRE_3373524_1]** **[CBRE_3373524_8]** **[CBRE_3373524_14]** .

553f1613af8a50114905ac30e48f89d734071d01240d0c011baed6cbfc7d2c72

**Quarterly guidance for Q4 2024:**
- **Capital Markets revenue growth**: 30%  **[CBRE_3403619_1]**  (no change from 30%  **[CBRE_3403619_2]** )  
- **Core EPS**: "best fourth quarter core EPS ever"  **[CBRE_3403619_1]**  (no prior guidance)  
- **REI segment development asset sales**: multiple sales expected  **[CBRE_3403619_1]**  (no change from prior guidance  **[CBRE_3403619_2]** )  

**Annual guidance for FY 2024:**
- **Core EPS**: $4.95–$5.05  **[CBRE_3403619_1]**  (no change from $4.95–$5.05  **[CBRE_3403619_2]** )  
- **Free cash flow**: slightly over $1B  **[CBRE_3403619_1]**  (no prior guidance)  
- **Adjusted free cash flow conversion**: 75%–85%  **[CBRE_3403619_1]**  (no prior guidance)  
- **Advisory SOP growth**: over 20%  **[CBRE_3403619_1]**  (no change from over 20%  **[CBRE_3403619_2]** )  
- **GWS SOP growth**: high teens range  **[CBRE_3403619_1]**  (no change from high teens  **[CBRE_3403619_2]** )  
- **Net leverage**: about 1 turn  **[CBRE_3403619_1]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **Core EPS**: expected to exceed prior peak of $5.69  **[CBRE_3403619_1]**  (no prior numeric guidance)  

d183d953429d9de11160e6cd69b9b9728b038e19ca4fb4f8df8d7cbf8c5b6223

| Name               | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert E. Sulentic | Chair, President, and Chief Executive Officer                            | December 2012       | Robert E. Sulentic has been the President and CEO of CBRE since December 2012 and assumed additional responsibilities as Board Chair in November 2023. He has held several senior leadership positions at CBRE  **[0001193125-24-093832_d721540ddef14a.htm:42]** **[0001193125-23-090344_d455060ddef14a.htm:47]** **[0001193125-24-093832_d721540ddef14a.htm:34]** .                     |
| Emma E. Giamartino | Chief Financial Officer                                                  | July 2021           | Emma E. Giamartino has been the CFO of CBRE since July 2021. She previously served as Chief Investment Officer and held various roles in corporate development and M&A at CBRE and Verizon Communications  **[0001193125-24-093832_d721540ddef14a.htm:41]** **[0001193125-23-090344_d455060ddef14a.htm:46]** .                                |
| Daniel G. Queenan  | Chief Executive Officer, Real Estate Investments                         | May 2022            | Daniel G. Queenan has been the CEO of Real Estate Investments at CBRE since May 2022. He has held various leadership roles within CBRE, including CEO of Advisory Services and Group President of Real Estate Investments  **[0001193125-24-093832_d721540ddef14a.htm:42]** **[0001193125-23-090344_d455060ddef14a.htm:47]** .                |
| Chad J. Doellinger | Executive Vice President, General Counsel, and Corporate Secretary       | August 2023         | Chad J. Doellinger has been serving as EVP, General Counsel, and Corporate Secretary at CBRE since August 2023. He was previously the Chief Transformation Officer and a Partner at Greenberg Traurig, LLP  **[0001193125-24-093832_d721540ddef14a.htm:41]** .                                  |
| Vikram Kohli       | Chief Operating Officer                                                  | April 2023          | Vikram Kohli has been the COO at CBRE since April 2023. He has held various leadership positions at CBRE, including CEO of the CBRE Platform and Global Group President of Business Intelligence  **[0001193125-24-093832_d721540ddef14a.htm:41]** .                                             |
| Croft Young        | Chief Investment Officer                                                 | July 2023           | Croft Young has been the CIO at CBRE since July 2023. Before joining CBRE, he was a Managing Director at Morgan Stanley in the Real Estate Investment Banking Group  **[0001193125-24-093832_d721540ddef14a.htm:42]** .                                                                          |
| John E. Durburg    | Chief Executive Officer, U.S. and Canada Advisory business               | May 2022            | John E. Durburg has been the CEO of Advisory Services at CBRE since May 2022. He has held various leadership positions at CBRE, including CEO of Global Workplace Solutions and Global COO  **[0001193125-23-090344_d455060ddef14a.htm:46]** .                                                  |
| Chandra Dhandapani | Chief Executive Officer, Global Workplace Solutions                      | May 2022            | Chandra Dhandapani served as CEO of Global Workplace Solutions at CBRE from May 2022 until her departure on September 8, 2024. She held various leadership roles at CBRE, including Chief Transformation Officer  **[0001193125-23-090344_d455060ddef14a.htm:46]** **[0001138118-24-000023_cbre-20240630.htm:75]** .                         |
| Adam Gallistel     | Co-CEO and Chief Investment Officer, CBRE Investment Management          | April 1, 2025       | Adam Gallistel has been named Co-CEO and CIO of CBRE Investment Management, effective April 1, 2025. He previously served at GIC as Head of Americas Real Estate and Global Real Estate Credit  **[0001193125-24-271999_d916976dex991.htm:0]** **[0001193125-24-271999_d916976d8k.htm:1]** .                                           |
| Andy Glanzman      | Co-CEO and President, CBRE Investment Management                         | December 5, 2024    | Andy Glanzman serves as Co-CEO and President of CBRE Investment Management. He joined CBRE Investment Management in 2010 and became President in January 2022. He assumed the role of Co-CEO effective immediately as of December 5, 2024  **[0001193125-24-271999_d916976dex991.htm:0]** **[0001193125-24-271999_d916976d8k.htm:1]** .|
| Daniel G. Queenan  | Chief Executive Officer, Trammell Crow Company                           | December 2024       | Daniel G. Queenan is currently serving as the CEO of the Trammell Crow Company. He was appointed to lead the company as CEO in December 2024, focusing on growth and investment performance  **[0001193125-24-093832_d721540ddef14a.htm:42]** **[0001193125-24-271999_d916976d8k.htm:1]** .                                               |

1deabaadb36dc0ec2c3d18ef1114e6f12405231847caf8df1dbb741eebbb650c

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **November 19, 2021**  **[0001138118-24-000029_cbre-20240930.htm:71]** **[0001138118-24-000029_cbre-20240930.htm:32]** **[0001138118-24-000029_cbre-20240930.htm:53]**  |
| End Date/Duration        | **Five years** from approval  **[0001138118-24-000029_cbre-20240930.htm:71]** **[0001138118-24-000029_cbre-20240930.htm:32]** **[0001138118-24-000029_cbre-20240930.htm:53]**  |
| Total Additional Amount  | **$4.0 billion**  **[0001138118-24-000029_cbre-20240930.htm:71]** **[0001138118-24-000029_cbre-20240930.htm:32]** **[0001138118-24-000029_cbre-20240930.htm:53]**  |
| Remaining Authorization  | **$1.4 billion** as of September 30, 2024  **[0001138118-24-000029_cbre-20240930.htm:71]** **[0001138118-24-000029_cbre-20240930.htm:32]** **[0001138118-24-000029_cbre-20240930.htm:53]**  |
| Details                  | Offset stock-based compensation and opportunistic repurchases  **[0001138118-24-000023_cbre-20240630.htm:73]** **[0001138118-24-000029_cbre-20240930.htm:71]** **[0001138118-24-000014_cbre-20240331.htm:45]** **[0001138118-24-000006_cbre-20231231.htm:146]** **[0001138118-23-000009_cbre-20221231.htm:153]** **[0001138118-24-000023_cbre-20240630.htm:55]**  |

5575ebb8fbe1bd0c72cbf0ca4409031b6aad2f01726cccb25e135d797c2041f9

23bfa0f074398b1d8ca7e4ac2c629f7d2582dbbb0827a060a1a1bac18091facb

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 2008  **[0001138118-24-000006_cbre-20231231.htm:82]**  | Present  | Current auditor   |

95591247f0752208a7a26be9449b744c77dcfb8d23e4d0f16eef0887ff49a2bf

| Year | Amount Due (in millions) | Debt Type         | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-----------------------|-----------------------|------------------------------------------------------------------------------------|
| 2026     | 599 **[0001138118-24-000029_cbre-20240930.htm:22]**                  | Senior Notes          | 4.875 **[0001138118-24-000029_cbre-20240930.htm:22]**         | 18.0% = (599 / 3,325) * 100 **[0001138118-24-000029_cbre-20240930.htm:22]**                                               |
| 2028     | 758 **[0001138118-24-000029_cbre-20240930.htm:22]**                  | Senior Term Loans     | Variable **[0001138118-24-000029_cbre-20240930.htm:22]**      | 22.8% = (758 / 3,325) * 100 **[0001138118-24-000029_cbre-20240930.htm:22]**                                               |
| 2029     | 496 **[0001138118-24-000029_cbre-20240930.htm:22]**                  | Senior Notes          | 5.500 **[0001138118-24-000029_cbre-20240930.htm:22]**         | 14.9% = (496 / 3,325) * 100 **[0001138118-24-000029_cbre-20240930.htm:22]**                                               |
| 2031     | 495 **[0001138118-24-000029_cbre-20240930.htm:22]**                  | Senior Notes          | 2.500 **[0001138118-24-000029_cbre-20240930.htm:22]**         | 14.9% = (495 / 3,325) * 100 **[0001138118-24-000029_cbre-20240930.htm:22]**                                               |
| 2034     | 977 **[0001138118-24-000029_cbre-20240930.htm:22]**                  | Senior Notes          | 5.950 **[0001138118-24-000029_cbre-20240930.htm:22]**         | 29.4% = (977 / 3,325) * 100 **[0001138118-24-000029_cbre-20240930.htm:22]**                                               |

18b15d292c933538eab5a3ea769291c8f312a48210bf7b0e6ed00c7c336f913c

1. **EPS Guidance**  
   **Q:** Can you discuss any drags on EPS from corporate expenses?  
   **A:** Management expects EPS slightly above the midpoint of their range, with some conservatism due to volatile rates. Corporate expenses will tick up slightly, mainly because bonuses and discretionary compensation will reset to levels aligned with improved financial performance.  **[CBRE_3373524_5]** 

2. **2025 Outlook**  
   **Q:** Has your confidence in returning to peak EPS by 2025 changed?  
   **A:** Management maintains strong visibility into returning to **peak EPS levels by 2025**. They do not need transactional SOP to return to prior peak levels to achieve this, and confidence has not declined since last quarter. The main risk is a delayed recovery this year, which could make the hurdle higher next year.  **[CBRE_3373524_16]** 

3. **Capital Allocation**  
   **Q:** Where do share buybacks fit into your capital deployment plans?  
   **A:** The company balances M&A, co-investments in REI, and share buybacks. Currently, they favor **M&A** due to attractive opportunities like the **J&J acquisition**, which offers returns well above the cost of capital and is more accretive than buybacks. The M&A pipeline is building, and they expect the focus on M&A to continue this year.  **[CBRE_3373524_7]** 

4. **Cost Savings Impact**  
   **Q:** Are cost savings initiatives factored into your outlook?  
   **A:** Yes, **$150 million** of run-rate cost savings are embedded, primarily within the advisory segment. About half will be realized this year, resulting in approximately **100 basis points** of margin expansion in advisory. These savings largely offset higher bonuses and profit-sharing tied to improved financial performance.  **[CBRE_3373524_14]** 

5. **Margin Expectations**  
   **Q:** How are you thinking about margins in advisory and GWS?  
   **A:** **Advisory margins** are expected to improve by about **100 basis points** in 2024 due to cost reductions and transaction recovery. **GWS margins** should remain steady or increase slightly, with the J&J acquisition being slightly accretive. A gradual margin increase is expected as they continue to differentiate the business.  **[CBRE_3373524_8]** 

6. **M&A Appetite**  
   **Q:** Are you pursuing other large acquisitions after J&J?  
   **A:** M&A is fundamental to CBRE's growth strategy. They have a strong balance sheet and are committed to building the business through smart acquisitions that align with their right to win in secularly favored areas. Expect continued M&A activity, but they won't force deals that aren't financially prudent or are hard to integrate.  **[CBRE_3373524_12]** 

7. **Capital Markets Outlook**  
   **Q:** How is capital markets activity trending, and how dependent is it on rates?  
   **A:** After significant declines in 2023, activity decelerated less in Q4, with December showing **single-digit declines**. For 2024, they expect **mid-single-digit** global growth in capital markets activity, assuming no significant uplift. Improvement is dependent on interest rate trends; faster recovery or lower rates could present upside.  **[CBRE_3373524_13]** 

8. **Office Leasing Outlook**  
   **Q:** What gives you confidence that office leasing has bottomed?  
   **A:** Management believes office leasing has stabilized despite lower occupancy and persistent remote work trends. There is widespread corporate pressure to bring employees back, and companies are investing in **Class A spaces** to enhance employee experience. **Class A buildings** are seeing record rents, while lower-quality buildings struggle. They anticipate the office asset class to remain significant with better future prospects.  **[CBRE_3373524_10]** 

9. **Multifamily Market**  
   **Q:** Do you expect issues in multifamily volumes or Trammell Crow returns?  
   **A:** Although there is pressure in multifamily due to recent developments and cost of leverage, management is **bullish long-term**. Trammell Crow is underwriting new projects at returns consistent with historical levels. They expect the market to self-correct over the next couple of years, with factors like high mortgage costs driving rental demand.  **[CBRE_3373524_9]** 

10. **Transactional Margins**  
    **Q:** What are incremental margins on the transactional side?  
    **A:** Incremental margins in the transactional business are in the **low to mid-30%** range across capital markets and leasing. A **5% change in leasing** results in a **3% change in EPS**, while a **5% change in sales** leads to a **2% EPS** change.  **[CBRE_3373524_17]** 

11. **REI Development Returns**  
    **Q:** How are development costs and return hurdles trending in REI?  
    **A:** Development costs are coming under control, with stabilization in cap rates and rental rate growth. CBRE is underwriting projects with spreads that should deliver profitability consistent with historical levels. They have secured a significant volume of development sites with attractive returns due to reduced competition and their strong balance sheet.  **[CBRE_3373524_15]** 

12. **Infrastructure Focus**  
    **Q:** Is infrastructure a strategic target for M&A or investment?  
    **A:** CBRE recognizes the blurred lines between real estate and infrastructure, with exposure in areas like **data centers**. They have capabilities through **Turner & Townsend** and **Trammell Crow** in infrastructure-related services and development. Over time, they aim to do more in infrastructure, but real estate remains their core business for now.  **[CBRE_3373524_11]** 

d8dbf1ef945df54b20e1d5668b8dbcc1205cb74bbfe1d214a00683a3e3e5293f

1. **Capital Markets Recovery Expectations**  
   **Q:** How steep will capital markets recover in 2025?  
   **A:** Management expects a steady capital markets recovery in 2025 rather than a steep one. Buyers and sellers have largely come together for most asset classes except office. There is debt available now and increased interest in multifamily, with slight cap rate compression in multifamily and industrial. They anticipate steady improvement next year but not a precipitous one. ( **[CBRE_3403619_5]** ,  **[CBRE_3403619_9]** )

2. **Growth in Resilient Business Lines**  
   **Q:** Is double-digit growth in resilient lines organic or M&A-driven?  
   **A:** Management expects double-digit growth in resilient business lines over the near, medium, and long term, primarily driven by organic growth in the low double-digit range, supplemented by M&A. They see a growing total addressable market, especially in outsourcing, and have significant opportunities in markets like India and Japan. Resilient lines are expected to deliver **$1.8 billion** of SOP this year, growing at double-digit rates. ( **[CBRE_3403619_6]** )

3. **Leasing Outlook**  
   **Q:** How do you view office leasing growth prospects?  
   **A:** Management sees sustained strength in office leasing, with recent success driven by occupiers targeting prime space first, then moving to B and B+ buildings. They anticipate a continued slow return to the office but not to pre-COVID levels. They believe office space remains important to occupiers' future, and expect leasing success to continue into next year and beyond. ( **[CBRE_3403619_7]** )

4. **Margin Expansion and Cost Actions**  
   **Q:** Is margin expansion in GWS fully reflected, or more to come?  
   **A:** The majority of cost actions were implemented across Q2 and Q3, so the full run-rate impact is not yet seen. Margins in GWS are expected to improve over last year and continue improving into next year. Management anticipates steady improvement through resetting the cost base, focusing on higher-margin contracts, and M&A in technical services. ( **[CBRE_3403619_8]** ,  **[CBRE_3403619_12]** )

5. **Share Buybacks and Capital Allocation**  
   **Q:** How do you prioritize acquisitions versus share buybacks?  
   **A:** Management continues to balance M&A with share buybacks when it makes sense. Despite the higher share price and valuation, they remain interested in buybacks and believe the stock is trading at a significant discount to intrinsic value. They will consider more buybacks than in the past if the valuation remains attractive. ( **[CBRE_3403619_10]** )  

   **Q:** Thoughts on starting a regular quarterly dividend?  
   **A:** They currently prefer the flexibility of buybacks and don't think a dividend is necessary, but it's something they evaluate over time. ( **[CBRE_3403619_22]** )

6. **Data Center Opportunities**  
   **Q:** What are CBRE's opportunities in the data center ecosystem?  
   **A:** CBRE has significant exposure to data centers across its businesses. Trammell Crow Company is capitalizing on land opportunities suitable for data centers. Turner & Townsend is project managing over **110 hyperscale data centers**. CBRE manages between **700 and 800 data centers** on behalf of occupiers. They recently acquired Direct Line, enhancing their capabilities. They have a data center sales business and are exploring strategies to extract more value in this space. ( **[CBRE_3403619_16]** ,  **[CBRE_3403619_20]** )

7. **Rehiring in Capital Markets**  
   **Q:** Do you need to rehire in capital markets to support growth?  
   **A:** Management indicates they have considerable capacity in mortgage origination and investment sales teams. While they are adding talent, they don't need to rehire to grow significantly from current levels. They continue investing in their transactional businesses and expect to add talent to both leasing and capital markets, but it's not necessary for growth. ( **[CBRE_3403619_11]** )

8. **GWS Pipeline and Contracts**  
   **Q:** Can you discuss GWS pipeline, first-generation vs existing?  
   **A:** CBRE is seeing an increase in first-generation outsourcing contracts, which take longer to convert but show significant progress. There's also significant progress in expansions and new wins within the existing client base. Growth often comes from expansions due to vast opportunities within large occupiers where CBRE already has relationships. ( **[CBRE_3403619_13]** )

9. **Potential Spin-off of Trammell Crow**  
   **Q:** Would you contemplate spinning off Trammell Crow?  
   **A:** Management is not considering divesting Trammell Crow Company. It generates high returns, interfaces productively with other parts of CBRE, and creates opportunities like seeding investment funds and collaborating on large projects. Trammell Crow also generates significant cash for investment across CBRE. ( **[CBRE_3403619_17]** )

10. **Loan Servicing Business**  
    **Q:** Why was loan servicing growth flat this quarter?  
    **A:** The underlying growth in loan servicing is **5%**, but reported growth appears lower due to moving some escrow income from loan servicing to the commercial mortgage origination line. ( **[CBRE_3403619_21]** )

1c7567e2e87f4587d9b9c3a571199d67a28cc1c6c87a7817f88586e112ab3dbc

- **Significant Exposure to the Data Center Market**: CBRE manages between **700 and 800 data centers** through its services business and is involved in project management of over **110 hyperscale data centers** via Turner & Townsend  **[CBRE_3403619_20]** . Additionally, Trammell Crow Company's expertise in identifying logistics land sites suitable for data center development is leading to **strong financial returns**  **[CBRE_3403619_16]** .
- **Strategic Value of Trammell Crow Company**: Retaining Trammell Crow Company enhances CBRE's growth prospects due to its ability to generate **high returns** and its productive synergy with other CBRE businesses  **[CBRE_3403619_17]** . TCC was instrumental in creating a **$5 billion** fund in the Investment Management business and is involved in significant projects like **$2 billion-plus manufacturing plants**  **[CBRE_3403619_17]** .
- **Capacity to Capitalize on Market Recovery**: CBRE has **considerable capacity** in its mortgage origination and investment sales teams, allowing it to grow without significant rehiring  **[CBRE_3403619_11]** . The company is investing in both its resilient and transactional businesses, maintaining market leadership in capital markets and leasing  **[CBRE_3403619_11]** .

680769a737cb62c70b0d28c50d6ed5c07c71e30c7c82acbec43de6ed82eaaf7f

- **CBRE's Global Workplace Solutions (GWS) segment is benefiting from a long-term secular double-digit growth profile**, with expectations for this growth to continue, driven by project and program management opportunities across various sectors.  **[CBRE_3382625_11]**
- **The company has significant pent-up profitability in their development business**, including a substantial increase in their in-process development portfolio due to an extremely large industrial project over 2 million square feet in the Sunbelt, positioning them for strong profit growth as market conditions improve.  **[CBRE_3382625_11]** **[CBRE_3382625_6]**
- **CBRE remains confident in achieving record-level earnings in 2025**, with their path to reaching peak earnings unchanged, driven by continued low double-digit growth across resilient lines of business and recovery in transactional revenues.  **[CBRE_3382625_18]**

b4dcbfaf5df50cfd6b65c2bc43642bfc3ababe68bdc3842463fe5431035fbffb

- **Achieving prior peak EPS by 2025 is contingent on market recovery; delays could make this target more challenging.**  **[CBRE_3373524_16]**
- **Capital markets revenue is expected to grow only mid-single digits in 2024, with no significant uplift unless interest rates decrease more than expected.**  **[CBRE_3373524_13]**
- **Corporate costs are expected to increase due to higher bonuses and discretionary compensation, potentially offsetting benefits from cost-saving initiatives.**  **[CBRE_3373524_5]**

860851c93701e3df428a740952ce8e25f86d93e21456365a64a0facf710625db

- **Stabilization and Uptick in Leasing Activity**: CBRE is seeing stabilization in office transaction sizes and an uptick in volume, especially in key markets like New York and tech hubs such as the Bay Area and Austin. This trend indicates improving demand and a potential rebound in the leasing market.  **[CBRE_3394283_0]**
- **Expected Margin Improvement in Global Workplace Solutions (GWS)**: The GWS segment is projected to achieve higher margins in the second half of the year and even higher margins going into next year. Cost containment measures and strategic investments are contributing to this improvement, signaling strong future profitability.  **[CBRE_3394283_0]**
- **Substantial Embedded Profits in Development Pipeline**: CBRE's development arm has a pipeline expected to generate **$750 million** in profits over the next four years. This is driven by projects in data centers, industrial, and multifamily sectors, providing a sustainable and significant source of earnings growth.  **[CBRE_3394283_0]**

70aebf5f7bdd662442e8684665b29e4f715ee5bf5926803dea0b38ea6ec769ed

1. **Guidance Increase and Drivers**  
   **Q:** How much of guidance raise is due to development gains?  
   **A:** Emma explained that they increased their full-year core EPS guidance to **$4.70 to $4.90**, up from **$4.25 to $4.65** previously, driven by higher revenue and SOP in each segment.  **[CBRE_3394283_0]**  Approximately **half** of the guidance increase comes from the REI segment, primarily due to large development asset sales expected to be completed in Q4, signaling an upturn in this business.  **[CBRE_3394283_0]** 

2. **Transaction Activity Outlook**  
   **Q:** What are you seeing in transaction activity and pipelines?  
   **A:** Bob noted that CBRE believes their advisory segment is on the cusp of an inflection point.  **[CBRE_3394283_0]**  They saw **13%** growth in U.S. leasing revenue and a **20%** increase in mortgage origination fees in Q2, exceeding expectations.  **[CBRE_3394283_0]**  Leasing momentum has continued into July, supported by a pickup in demand in many large U.S. office markets.  **[CBRE_3394283_0]**  Emma added that property sales revenue declined only **2%** on a local currency basis, indicating stabilization.  **[CBRE_3394283_0]** 

3. **GWS Margins and Sustainability**  
   **Q:** Is second-half margin improvement sustainable for GWS?  
   **A:** Emma stated that GWS net SOP margin improved by **20 basis points** from Q1 to **10.1%**, better than expected due to decisive cost actions.  **[CBRE_3394283_0]**  They expect full-year margin expansion in GWS, with margins higher in the second half, but not yet reaching their longer-term target run rate.  **[CBRE_3394283_0]**  Going into next year, the run rate will be even higher than where they get to for the full year.  **[CBRE_3394283_0]** 

4. **Turner & Townsend Strategy**  
   **Q:** Would you consider spinning off Turner & Townsend?  
   **A:** Bob emphasized that while Turner & Townsend is different from traditional commercial real estate businesses, it fits nicely within CBRE due to significant synergies.  **[CBRE_3394283_0]**  Since CBRE acquired a **60%** ownership in November 2021, Turner & Townsend's net revenue has grown at a compounded rate of nearly **20%**.  **[CBRE_3394283_0]**  CBRE has no plans to spin it off and sees great long-term value as part of the company.  **[CBRE_3394283_0]** 

5. **Capital Deployment Priorities**  
   **Q:** How do you weigh M&A versus share buybacks?  
   **A:** Emma explained that CBRE prioritizes M&A, focusing on strategic, highly accretive acquisitions that drive strong returns exceeding a hurdle rate above mid-teens.  **[CBRE_3394283_0]**  If they don't have significant M&A opportunities, they will buy back shares.  **[CBRE_3394283_0]**  In the quarter, they repurchased **$50 million** worth of shares at an average price of **$87**.  **[CBRE_3394283_0]** 

6. **Office Leasing Trends**  
   **Q:** Is increased demand in all office types or just Class A?  
   **A:** Bob noted that Class A office space is especially attractive due to companies focusing on employee experience and productivity.  **[CBRE_3394283_0]**  Beyond New York, they are seeing considerable pickup in tech markets like the Bay Area and Austin, driven by AI activity.  **[CBRE_3394283_0]** 

7. **REI Development Gains Sustainability**  
   **Q:** Are development gains sustainable or one-time?  
   **A:** Emma indicated they expect to generate as much as **$750 million** in profits from development over the next four years, with significant earnings embedded in their in-process and pipeline portfolio of nearly **$32 billion**.  **[CBRE_3394283_0]**  Bob added that this does not depend on good luck with asset transitions; it's based on their asset-by-asset review.  **[CBRE_3394283_0]** 

8. **Investment Management Fundraising**  
   **Q:** What are you seeing in fundraising and AUM trends?  
   **A:** Emma stated they have seen a pickup in activity, expecting increased appetite for both core and enhanced return strategies.  **[CBRE_3394283_0]**  AUM is now more than **$142 billion**, with **$3.6 billion** raised thus far in the year.  **[CBRE_3394283_0]** 

9. **Talent Retention and Cost Containment**  
   **Q:** How are you balancing cost cuts with talent retention?  
   **A:** Bob explained that CBRE focuses on eliminating costs that don't contribute to success while investing aggressively in areas that do, such as good office space, technology, and talent.  **[CBRE_3394283_0]**  They have a transformation office focused on making long-term sustainable changes, aiming for consistent operating leverage over time.  **[CBRE_3394283_0]** 

01e092071f6ebefaa3e3cc5858dbc55b5eb8ca29a3741b434494940d8c74b98e

- **Recovery in transactional businesses is heavily dependent on uncertain external factors**, such as interest rate stabilization and buyer-seller psychology, which may hinder growth  **[CBRE_3403619_9]** .
- **CBRE is not considering spinning off Trammell Crow Company**, which could lead to a **conglomerate discount** and limit shareholder value creation  **[CBRE_3403619_17]** .
- **Lack of specific strategic initiatives in the data center sector** may prevent CBRE from fully capitalizing on this growth opportunity  **[CBRE_3403619_20]** .

1d6797281e1dca48e9f64311d7dd0d0f91d1369671b60d5190e3986c264fe3ea

- **Unexpected costs of \$15 million to \$20 million** in the Global Workplace Solutions (GWS) segment negatively impacted the bottom line, requiring **aggressive cost-cutting measures** to address margin pressures.  **[CBRE_3382625_22]**
- The company's earnings were boosted by a **one-time \$50 million tax benefit** in the quarter that **will not repeat**, suggesting that underlying earnings may be weaker than reported.  **[CBRE_3382625_17]** ,  **[CBRE_3382625_10]**
- **Higher interest rates** have slowed down transaction volumes in property sales, as buyers and sellers stay on the sidelines, impacting CBRE's transactional revenue and development business.  **[CBRE_3382625_19]** ,  **[CBRE_3382625_9]** ,  **[CBRE_3382625_20]**

8a5600700d5ef4592d0acf199b20cabdf6264836f012de5fdfc965f74382f519

- **Office tenants continue to shrink on average by around 10-12%, indicating ongoing challenges in the office leasing market.**  **[CBRE_3394283_7]**
- **Acquisition activity remains subdued and is not contributing meaningfully to growth, as upticks are off a very low base and not meaningful.**  **[CBRE_3394283_6]**
- **Global Workspace Solutions (GWS) margins are not expected to reach second-half levels on a run-rate basis, suggesting margin pressures may persist.**  **[CBRE_3394283_1]**

a55ae8f5381cb7d600c065024f8d7de12363ee378f9e2e8846575c37ab3b83f4

1. **Guidance and Outlook**  
   **Q:** Will EBITDA margins and EPS decline in Q2 and for full year?  
   **A:** Management maintains that **EBITDA will not decline from Q1 to Q2**  **[CBRE_3382625_5]** , and **EBITDA margins will be up** for both Advisory and GWS segments and at the consolidated level.  **[CBRE_3382625_5]**  The **EPS midpoint remains unchanged**, with stronger leasing offsetting weaker sales due to postponed rate cuts.  **[CBRE_3382625_4]** 

2. **Capital Allocation and Buybacks**  
   **Q:** How will capital allocation affect share repurchases and M&A?  
   **A:** Due to the **J&J deal**, share repurchases were pulled back in Q1 but have **resumed modestly in Q2**.  **[CBRE_3382625_7]**  The J&J transaction used a large portion of free cash flow, **limiting buybacks for the year**.  **[CBRE_3382625_8]**  Management aims to **deploy at least their free cash flow annually**, balancing M&A and share repurchases.  **[CBRE_3382625_7]** 

3. **Transaction Market Slowdown**  
   **Q:** How are higher interest rates affecting investment sales?  
   **A:** **Higher interest rates have caused buyers and sellers to stay on the sidelines longer**, slowing activity on the sales side.  **[CBRE_3382625_9]**  Sentiment is less bullish than at the start of the year due to delayed rate cuts.  **[CBRE_3382625_4]** **[CBRE_3382625_9]** 

4. **Growth Opportunities**  
   **Q:** Where does management see the most growth potential?  
   **A:** **Project management is a significant growth opportunity**, with expectations of well into double-digit enduring growth.  **[CBRE_3382625_11]**  The **GWS business benefits from long-term secular double-digit growth**.  **[CBRE_3382625_11]**  The development and investment management businesses are at cyclical lows and are positioned for profit growth.  **[CBRE_3382625_11]** 

5. **Office Leasing Trends**  
   **Q:** Is office space rationalization a headwind for GWS?  
   **A:** Management does not see it as a significant headwind; clients view office space as critical and are focusing on **reconfiguring and upgrading spaces to get people back to the office**.  **[CBRE_3382625_13]**  **Leasing activity is increasing**, especially in higher-quality assets.  **[CBRE_3382625_15]** 

6. **Tax Benefit Impact**  
   **Q:** How did the $50 million tax benefit affect EPS?  
   **A:** There was a **$50 million tax benefit** in the quarter that **will not repeat**.  **[CBRE_3382625_10]**  Excluding the tax benefit, the tax rate is around **22%** for the year.  **[CBRE_3382625_16]** 

7. **Cost Issues in GWS**  
   **Q:** What caused the unexpected costs in GWS?  
   **A:** **Higher employee medical claims** contributed to costs, expected to normalize over the year.  **[CBRE_3382625_12]**  Additional costs were related to small initiatives being discontinued, with cost impacts of **$15–$20 million**.  **[CBRE_3382625_21]** 

8. **Industrial Leasing Trends**  
   **Q:** What is the outlook for industrial leasing?  
   **A:** Expected to **grow slightly this year and more next year**; some choppiness in coastal markets but **big occupiers are returning**.  **[CBRE_3382625_14]** 

9. **Discontinued Initiatives**  
   **Q:** What initiatives are being discontinued and why?  
   **A:** Management is discontinuing certain **non-strategic initiatives** that were not delivering expected results; these were small costs relative to the size of the business.  **[CBRE_3382625_20]** 

f2e45827f4b92f8415b30b322a58227045d6e640dc439b631c8530097ce85f69

- CBRE's **transactional businesses have high incremental margins in the low to mid-30% range**, meaning a **5% increase in leasing results in a 3% delta in EPS**, indicating significant earnings growth potential as volumes recover.  **[CBRE_3373524_17]**
- The company believes **office leasing has stabilized**, particularly for **Class A properties where CBRE generates approximately 2/3 of leasing revenue**, positioning them well to benefit from a market recovery.  **[CBRE_3373524_10]**
- CBRE has **hundreds of millions of dollars of profits embedded** in their development pipeline and is **well-positioned for future profitability** as development costs come under control and favorable spreads are secured.  **[CBRE_3373524_15]**

9fbc875db8b7fcd499ec65e75c00c18b59538b42aa02fe3f734ce7088217c247

CBRE Group Inc (CBRE)

Financials