Summary
CBRE Group, Inc. (CBRE) is the world's largest commercial real estate services and investment firm, as indicated by its 2019 revenue. The company offers a broad spectrum of services to both real estate occupiers and investors globally, encompassing leasing, property sales, outsourcing, valuation, investment management, and development. CBRE has a strong global presence with over 100,000 employees across more than 530 offices in over 100 countries. The company's business model is increasingly shifting towards contractual, fee-for-service revenue streams, which are generally more stable and predictable than transaction-based commissions. This strategic shift is supported by a diversified client base, including a significant portion of Fortune 100 companies. For the fiscal year ending December 31, 2019, CBRE reported significant revenue growth, driven by strong performance across its Advisory Services and Global Workplace Solutions segments, and bolstered by the acquisition of Telford Homes. The company also highlighted progress in its Real Estate Investments segment, particularly in investment management services. However, investors should note the company's disclosure of material weaknesses in internal controls within its Global Workplace Solutions segment in the EMEA region, which management is actively working to remediate.
Financial Highlights
47 data points| Revenue | $23.89B |
| Cost of Revenue | $18.69B |
| Gross Profit | $5.21B |
| Operating Income | $1.26B |
| Net Income | $1.28B |
| EPS (Basic) | $3.82 |
| EPS (Diluted) | $3.77 |
| Shares Outstanding (Basic) | 335.80M |
| Shares Outstanding (Diluted) | 340.52M |
Key Highlights
- 1CBRE is the world's largest commercial real estate services and investment firm, based on 2019 revenue.
- 2The company operates in over 530 offices across more than 100 countries, with over 100,000 employees.
- 3CBRE's business is increasingly focused on contractual, fee-for-service revenue, aiming for greater revenue stability.
- 4In 2019, revenue grew to $23.9 billion, driven by organic growth and the acquisition of Telford Homes.
- 5The company reported net income attributable to CBRE Group, Inc. of $1.3 billion for 2019.
- 6A material weakness in internal control over financial reporting was identified in the Global Workplace Solutions segment (EMEA region), which management is addressing.
- 7CBRE does not currently pay dividends, intending to reinvest earnings for growth and debt reduction.