10-KPeriod: FY2015

CBRE GROUP, INC. Annual Report, Year Ended Dec 31, 2015

Filed February 29, 2016For Securities:CBRE

Summary

CBRE Group, Inc. reported strong revenue growth of 20.0% to $10.86 billion for the fiscal year ended December 31, 2015. This growth was significantly driven by the strategic acquisition of Johnson Controls' Global Workplace Solutions (GWS) business in September 2015, alongside robust organic growth across its key service lines. The company demonstrated resilience, with net income attributable to CBRE Group, Inc. rising by 12.9% to $547.1 million, reflecting effective operational management and strategic integration of acquired assets. Geographically, the Americas remained the largest segment, but EMEA showed substantial revenue growth, partly due to the GWS acquisition. The company's diversified service offerings, including advisory services and outsourcing solutions, continue to perform well, indicating a solid market position. CBRE's financial health is further supported by a strong balance sheet, though it carries significant long-term debt, which was managed through strategic refinancing activities.

Financial Highlights

49 data points
Beta

Revenue

$10.86B

99.6% Gross Margin

Net Income

$547.13M

5.0% Net Margin

EPS (Diluted)

$1.63

Total Assets

$11.02B

Cash & Equivalents

$540.40M

Free Cash Flow

$512.43M

Financial Statements
Beta
Revenue$10.86B
Cost of Revenue$40.44M
Gross Profit$10.82B
Operating Expenses$10.03B
Operating Income$835.94M
Interest Expense$118.88M
Net Income$547.13M
EPS (Basic)$1.64
EPS (Diluted)$1.63
Shares Outstanding (Basic)332.62M
Shares Outstanding (Diluted)336.41M

Key Highlights

  • 1Revenue increased by 20.0% to $10.86 billion in 2015, driven by organic growth and the significant acquisition of GWS.
  • 2Net income attributable to CBRE Group, Inc. grew by 12.9% to $547.1 million, indicating improved profitability.
  • 3The company experienced strong organic growth across advisory services (sales, leasing, appraisal, mortgage brokerage) and outsourcing services.
  • 4EMEA segment revenue saw significant growth of 28.2%, bolstered by the GWS acquisition.
  • 5Global Investment Management revenue saw a slight decrease of 1.8% due to foreign currency fluctuations and lower fee income.
  • 6Total debt was managed through several refinancing efforts, including new senior notes issuances and term loan facilities.
  • 7The company did not declare or pay any cash dividends, intending to reinvest earnings for future growth and debt reduction.

Frequently Asked Questions

The primary driver of revenue growth in 2015 was the acquisition of Johnson Controls' Global Workplace Solutions (GWS) business, which closed in September 2015. This was supplemented by strong organic growth across the company's core service lines, including property, facilities, and project management, as well as sales and leasing activities.

The GWS acquisition significantly boosted revenue, particularly in the Americas and EMEA segments. While it increased costs of services and operating expenses due to integration, the overall impact contributed positively to the company's top-line growth and expanded its global workplace solutions offering.

CBRE Group, Inc. has not declared or paid any cash dividends on its common stock since its inception and does not anticipate doing so in the foreseeable future. The company intends to retain future earnings to finance growth and potentially reduce debt.

CBRE has actively managed its debt through refinancing activities, taking advantage of market conditions to issue new senior notes with favorable terms and establish new term loan facilities. The company's credit agreements include covenants that the company is required to maintain, and as of December 31, 2015, it was in compliance with these covenants.