Summary
CBRE Group, Inc. (CBRE) reported strong revenue growth in its 2017 fiscal year, with total revenue reaching $14.2 billion, an increase of 8.7% from the prior year. This growth was primarily driven by robust performance in occupier outsourcing and property management services, along with increased leasing and sales activity across its global segments. The company's diversified business model, spanning advisory and transaction services, property and facilities management, and investment management, positions it well to benefit from global real estate market trends. While the company experienced increased operating expenses, largely due to higher compensation and integration costs from recent acquisitions, it also saw an improvement in its operating income. CBRE continues to focus on expanding its global services platform and leveraging its strong market position. The company's financial health appears stable, supported by healthy cash flow from operations and a revolving credit facility, though it faces the typical industry risks associated with economic cycles and credit market conditions.
Financial Highlights
49 data points| Revenue | $18.63B |
| Cost of Revenue | $14.31B |
| Gross Profit | $4.32B |
| Operating Expenses | $17.57B |
| Operating Income | $1.08B |
| Interest Expense | $136.81M |
| Net Income | $697.11M |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 337.66M |
| Shares Outstanding (Diluted) | 340.78M |
Key Highlights
- 1Reported total revenue of $14.2 billion for fiscal year 2017, an increase of 8.7% compared to 2016.
- 2Occupier outsourcing and property management segments showed strong organic growth.
- 3Operating income increased to $1.07 billion in 2017 from $815 million in 2016.
- 4Assets Under Management (AUM) for Global Investment Management grew to $103.2 billion at year-end 2017 from $86.6 billion in 2016.
- 5The company operated in over 450 offices worldwide with more than 80,000 employees.
- 6CBRE maintained a strong financial position, with a leverage ratio of 0.79x as of December 31, 2017.
- 7The company did not declare or pay any cash dividends and intends to reinvest earnings for growth and debt reduction.