Summary
CBRE Group, Inc. (CBRE) demonstrated robust financial performance in 2018, highlighted by a significant increase in revenue and net income. The company's diverse service offerings, spanning advisory, global workplace solutions, and real estate investments, contributed to this growth. Key drivers included strong organic growth in occupier outsourcing, property management, leasing, and capital markets activities, augmented by positive foreign currency translation effects. Despite increased costs associated with growth and reorganization, CBRE maintained healthy operating margins and demonstrated strong cash flow generation from operations. The company's strategic acquisitions, such as FacilitySource, further bolstered its capabilities. CBRE's commitment to shareholder returns is evident in its active share repurchase program. Looking ahead, CBRE is well-positioned to capitalize on evolving market trends in commercial real estate services, supported by its global platform and a diversified client base.
Financial Highlights
49 data points| Revenue | $21.34B |
| Cost of Revenue | $16.45B |
| Gross Profit | $4.89B |
| Operating Expenses | $20.27B |
| Operating Income | $1.09B |
| Interest Expense | $107.27M |
| Net Income | $1.06B |
| EPS (Basic) | $3.13 |
| EPS (Diluted) | $3.10 |
| Shares Outstanding (Basic) | 339.32M |
| Shares Outstanding (Diluted) | 343.12M |
Key Highlights
- 1CBRE reported a substantial increase in revenue to $21.34 billion in 2018, up 14.6% from $18.63 billion in 2017, driven by strong performance across its service lines and positive foreign currency impacts.
- 2Net income attributable to CBRE Group, Inc. rose significantly to $1.06 billion in 2018, a substantial increase from $697.1 million in 2017, indicating improved profitability.
- 3The company generated robust net cash provided by operating activities of $1.13 billion in 2018, demonstrating strong operational cash flow.
- 4CBRE completed the FacilitySource acquisition in June 2018 for approximately $266.5 million, enhancing its tech-enabled supply chain capabilities for the occupier outsourcing industry.
- 5The company's Global Investment Management segment saw its Assets Under Management (AUM) grow to $105.5 billion at the end of 2018, up from $103.2 billion in 2017.
- 6CBRE continued its share repurchase program, with the board authorizing a new program to repurchase up to $300 million of Class A common stock over three years, effective March 11, 2019.
- 7The company's financial performance is subject to seasonality, with revenues and earnings typically being lowest in the first quarter and highest in the fourth quarter due to transaction completion cycles.