10-K/APeriod: FY2013

CBRE GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2013

Filed September 23, 2014For Securities:CBRE

Summary

This filing is an amendment to CBRE Group, Inc.'s 2013 Annual Report on Form 10-K, primarily to disclose activities related to Iran as mandated by the Iran Threat Reduction and Syria Human Rights Act of 2012. The amendment specifies that a UK subsidiary of CBRE performed services for Melli Bank PLC, a UK-incorporated bank on the Specially Designated Nationals and Blocked Persons (SDN) List. These services included assessing refurbishment costs for two London properties, generating approximately £7,500 in gross revenue and £3,375 in net profit. Additionally, a contract was entered into for tax rate advice, but no services were performed or fees received under this contract before the company placed a hold on further activity upon discovering Melli Bank PLC's SDN status. CBRE states it does not intend to engage in further Iran-related activities.

Financial Highlights

50 data points
Beta

Revenue

$7.18B

Net Income

$316.54M

4.4% Net Margin

EPS (Diluted)

$0.95

Total Assets

$7.00B

Cash & Equivalents

$491.91M

Free Cash Flow

$588.75M

Financial Statements
Beta
Revenue$7.18B
Operating Expenses$6.58B
Operating Income$616.13M
Interest Expense$135.08M
Net Income$316.54M
EPS (Basic)$0.96
EPS (Diluted)$0.95
Shares Outstanding (Basic)328.11M
Shares Outstanding (Diluted)331.76M

Key Highlights

  • 1Amendment to 2013 10-K filing focused on Iran-related disclosure requirements.
  • 2Disclosure of services performed for Melli Bank PLC, a UK bank on the US SDN List.
  • 3Gross revenue of £7,500 and net profit of £3,375 generated from assessing properties for Melli Bank PLC.
  • 4A subsequent contract with Melli Bank PLC was entered but no services were rendered or fees received before activity was halted.
  • 5CBRE Group, Inc. has stated no intention to engage in future Iran-related activities.
  • 6The company is categorized as a large accelerated filer.
  • 7The filing includes updated Sarbanes-Oxley certifications.

Frequently Asked Questions

This amendment (10-K/A) to CBRE Group, Inc.'s 2013 Annual Report is filed to comply with Section 13(r) of the Securities Exchange Act of 1934, which requires disclosure of certain specified activities related to Iran. Specifically, it details transactions with Melli Bank PLC, which is on the Specially Designated Nationals and Blocked Persons (SDN) List.

CBRE's UK subsidiary provided property assessment services for two London properties leased by Melli Bank PLC, generating a gross revenue of £7,500 and a net profit of approximately £3,375. A subsequent contract for tax advice was signed but no services were performed or fees paid before CBRE halted all activity related to Melli Bank PLC upon discovering its SDN status.

No, CBRE Group, Inc. explicitly states in the filing that they do not otherwise intend to enter into any Iran-related activity. The company placed a hold on all activity related to Melli Bank PLC and has committed to not engaging in future Iran-related business.

The financial impact is minimal. The gross revenue from the property assessment services was £7,500, and the net profit was approximately £3,375. No revenue or profit was realized from the subsequent contract as no services were performed. The company has also confirmed it is not pursuing further Iran-related business.