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10-QPeriod: Q3 FY2021

CBRE GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 28, 2021For Securities:CBRE

Summary

CBRE Group, Inc. reported strong financial results for the nine months ended September 30, 2021, demonstrating a significant recovery and growth compared to the same period in 2020. Revenue increased by 13.5% to $19.2 billion, driven by robust performance across all segments, particularly Advisory Services and Real Estate Investments. Net income attributable to CBRE Group, Inc. more than doubled to $1.14 billion from $438.2 million in the prior year period, reflecting improved operational efficiency and higher equity income from unconsolidated subsidiaries. The company's liquidity remains strong, with $2.7 billion in cash and cash equivalents and significant availability under its revolving credit facility. CBRE also continues to execute its capital allocation strategy, repurchasing shares and actively pursuing strategic acquisitions, most notably the planned acquisition of a 60% stake in Turner & Townsend. The company's diversified business model and focus on contractual outsourcing services are providing resilience against macroeconomic headwinds, although foreign currency fluctuations can impact reported results.

Financial Statements
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Key Highlights

  • 1Revenue increased by 13.5% year-over-year to $19.2 billion for the nine months ended September 30, 2021.
  • 2Net income attributable to CBRE Group, Inc. significantly grew to $1.14 billion, more than double the $438.2 million reported in the prior year.
  • 3Operating income showed a substantial increase, reaching $1.05 billion for the nine months ended September 30, 2021, up from $525.9 million in the prior year.
  • 4The company reported strong cash flow from operations, with $1.2 billion generated during the first nine months of 2021.
  • 5CBRE announced the planned acquisition of a 60% ownership interest in Turner & Townsend for approximately $1.3 billion, expected to close in Q4 2021.
  • 6The company maintained a healthy liquidity position with $2.7 billion in cash and cash equivalents and $3.15 billion available under its revolving credit facility as of September 30, 2021.
  • 7Share repurchases continued, with $188.3 million spent in the first nine months of 2021, and $161.7 million remaining capacity under the authorized repurchase program.

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