DALLAS, July 25, 2024–(BUSINESS WIRE)–CBRE Group, Inc. (NYSE:CBRE) today announced financial results for the second quarter ended June 30, 2024.
Key Highlights:
CBRE Group reported robust performance for the second quarter of 2024, marked by significant growth across key financial metrics:
- Revenue and Net Revenue: Revenue increased by 9% to $8.391 billion, with net revenue rising 11% to $4.971 billion.
- Resilient Business Net Revenue: The Resilient Business segment saw a notable 14% increase, bolstered by Turner & Townsend’s 18% growth.
- Advisory Transaction Revenue: Revenue from advisory transactions, including leasing and capital markets, grew by 5%. U.S. leasing revenue increased by 13%, and mortgage origination fees surged by 20%.
- Earnings Per Share (EPS): GAAP EPS declined by 34% to $0.42, while Core EPS decreased by 2% to $0.81.
- Capital Deployment: CBRE deployed $1.3 billion of capital year-to-date across mergers and acquisitions (M&A) and real estate investment (REI) co-investments.
- Cash Flow: Net cash flow from operations and free cash flow both improved by approximately $300 million, with free cash flow conversion reaching nearly 90%.
- Full-Year Outlook: The company raised its full-year Core EPS outlook to a range of $4.70 to $4.90, up from the previous range of $4.25 to $4.65.
CEO Commentary:
Bob Sulentic, Chair and CEO of CBRE Group, commented on the quarter’s performance: “CBRE had a successful second quarter for three reasons. First, revenue, profitability, and cash flow exceeded our expectations, with outperformance across all three business segments. Second, we made several sizable capital investments consistent with our strategy to invest in cyclically resilient or secularly favored elements of our business. And third, we made quick, material progress on the cost challenges we identified last quarter.”
Consolidated Financial Results Overview:
The table below summarizes CBRE’s performance for the second quarter of 2024 compared to the same period last year (dollars in millions, except per share data; percentages may not sum due to rounding):
| Operating Results | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $8,391 | $7,720 | +8.7% |
| Net Revenue (3) | $4,971 | $4,478 | +11.0% |
| GAAP Net Income | $130 | $201 | -35.5% |
| GAAP EPS | $0.42 | $0.64 | -34.2% |
| Core Adjusted Net Income (4) | $248 | $258 | -3.8% |
| Core EBITDA (5) | $505 | $504 | +0.3% |
| Core EPS (4) | $0.81 | $0.82 | -1.9% |
Cash Flow Results:
| Cash Flow Results | Q2 2024 | Q2 2023 |
|---|---|---|
| Cash Flow from Operations | $287 | ($11) |
| Capital Expenditures | $67 | $75 |
| Free Cash Flow (6) | $220 | ($86) |
Advisory Services Segment:
The Advisory Services segment also delivered strong performance:
- Detailed highlights of the Advisory Services segment performance were not provided in the released statement.
Conclusion:
CBRE Group’s second-quarter results underscore its resilience and strategic agility in navigating market dynamics. With robust revenue growth, enhanced cash flow, and strategic capital deployment, CBRE continues to strengthen its position as a leader in real estate and advisory services, poised for continued growth in the evolving global market landscape.
