Cbre Group Inc · NYSE:CBRE
Cbre — Investor Presentation (March 2017)
35 slides from Cbre's investor presentation, Mar 7, 2017
Slide 1: Global market leader in integrated commercial real estate services
CBRE group Global market leader in integrated commercial real estate services March 2017 Exhibit 99.1
Slide 2: Forward-Looking Statements
This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding CBRE’s future growth momentum, operations, market share, business outlook, and financial performance expectations. These state
Slide 3: Global Leadership With Broad Capabilities
Global Leadership With Broad Capabilities #1 Leasing #1 Property Sales #1 Outsourcing #1 Appraisal & Valuation $86.6 billion AUM Investment Management1 Scale And Diversity 450+ offices worldwide2 Serves clients in over 100 countries2 Serves over 90% of the Fortune 100 $322 billion of sales and lease
Slide 4: The Leading Global Brand
Fortune 500 company since 2008; ranked #259 in 2016 Ranked #1 brand for 16 consecutive years Global Real Estate Advisor of the Year five years in a row Ranked among the Most Admired Companies for five consecutive years Ranked among the top few outsourcing service providers across all industries for
Slide 5: CBRE Serves Investors And Occupiers
CBRE Serves Investors And Occupiers CBRE’s integrated, best-in-class offering creates value for clients at every stage of the life cycle Investor deck |
Slide 6: Track Record Of Long-Term Growth
Revenue up 20% Adjusted EPS2 up 12% 2015 To 2016 Track Record Of Long-Term Growth 2003 To 2016 16% Revenue CAGR 18% Adjusted EBITDA1 CAGR See slide 34 for footnotes Investor deck |
Slide 7: Positioned For Long-Term Growth
Positioned For Long-Term Growth Consolidation Leasing and capital markets services continue to consolidate but remain highly fragmented Occupier Outsourcing Recurring contractual revenues Still in early stage of penetration with occupiers Contributes to largely recurring leasing revenues over time1
Slide 8: Key Strategic Priorities
Continue to: Drive market share gains in our core leasing and capital markets businesses with leadership and innovation Enrich our operating platform (Digital & Data Analytics, Research, Marketing, Workplace Strategy, etc.) to support long-term growth Acquire leading companies in our sector that enh
Slide 9: Capital Deployment
Capital Deployment Mergers & Acquisitions Transactions generally fall into two categories: Strategic in-fill acquisitions sourced principally by lines of business Larger, transformational transactions driven by macro strategy Completed over 30 acquisitions since 2013 and over 100 since 2005, includi
Slide 10: Fee Revenue Mix (FY 2006 Versus FY 2016)
73% of total fee revenue5 See slide 34 for footnotes Fee Revenue Mix (FY 2006 Versus FY 2016) Significant growth in contractual revenue Total Fee Revenue4: $3,742 Other1 61% of total fee revenue5 $ in millions (%) – share of total fee revenue Capital Markets2 $1,403 (37%) Leasing $1,479 (40%) Contra
Slide 11: 2016 Revenue by Business Line
Revenue ($ in millions) Contractual Sources Leasing Capital Markets Other Occupier Outsourcing2 Property Management2 Investment Management Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue 2016 $ 6,079 $ 1,045 $ 370 $ 504 $ 2,661 $ 1,699 $ 571 $ 57 $
Slide 12: 2017 Outlook for CBRE
2017 Outlook for CBRE Capital Markets revenue - Property Sales and Mortgage Services – expected to increase at a low to mid-single digit rate Leasing revenue expected to grow at a mid-single digit rate Occupier Outsourcing fee revenue expected to grow by approximately 10%, with a weighting to the se
Slide 13: Key Takeaways
Key Takeaways CBRE: Leads an industry with strong underlying growth dynamics Is well positioned to continue its track record of long-term growth Has developed into a balanced business with a more stable growth profile Is an investment grade company with significant liquidity Is continuing to extend
Slide 14: Business Line Slides
BUSINESS LINE SLIDES CBRE
Slide 15: Occupier Outsourcing
Q4 Full Year New 47 170 Expansions 40 170 Renewals 23 92 Historical Revenue1 Overview 2016 Total Contracts Full service offering Facilities Management – approximately 2.3 billion square feet globally as of 12/31/2015 Project Management Transaction Services Strategic Consulting Ranked among the top f
Slide 16: Property Management
Historical Revenue1 Overview Selected Strategic Accounts ($ in millions) Manages buildings for investors Highly synergistic with property leasing Manages approximately 2.9 billion square feet globally as of 12/31/152 300+ premier properties in major CBDs (approximately 450 million square feet) See s
Slide 17: Investment Management
Capital Raised1 Assets under Management (AUM)* $86.6B as of 12/31/2016 Overview ($ in billions) See slide 35 for footnotes Performance-driven global real estate investment manager More than 500 institutional clients Equity to deploy: approx. $5,500 million1,2 Co-Investment: $139.3 million2 ($ in bil
Slide 18: Appraisal & Valuation
Premier Clients ($ in millions) 467,500+ assignments in 20161 Euromoney Global Valuation Advisor of the Year for five consecutive years Clients include lenders, life insurance companies, special servicers and REITs Overview Historical Revenue Appraisal & Valuation Serving Clients Globally Includes 2
Slide 19: Leasing
Overview Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market specialization Strategic insight and high-level execution driving significant market share gains #1 global market position – $110.8 billion lease vol
Slide 20: U.S. Leasing
U.S. Leasing Largely Recurring Business Over Time With Increasing Market Share 2016 U.S. Leasing Volume - $82 billion Investor deck |
Slide 21: Property Sales
Increased Ownership by Active Portfolio Managers Drives Sales Velocity Strategic advisor (sellers and buyers) in commercial real estate #1 global market share, based on Real Capital Analytics 780 basis point advantage over #2 firm for full year 2015 #1 global market position – $211.4 billion sales v
Slide 22: U.S. Property Sales
2016 U.S. Sales Transactions U.S. Property Sales Highly Diverse Business Across Transaction Size and Asset Class Investor deck |
Slide 23: Commercial Mortgage Services
Recent Transactions A leading strategic advisor for debt and structured finance solutions Highly synergistic with property sales Key services: Loan origination / debt placement Portfolio loan sales Loan servicing $43.3 billion of global mortgage activity in 20161 Commercial loan origination with gov
Slide 24: Development Services
Park District The Boardwalk LA Plaza Principio Commerce Park Dallas, TX Mixed-Use Newport Beach, CA Office Los Angeles, CA Mixed-use North End, MD Industrial Projects In Process/Pipeline1 Overview Recent Projects A premier brand in U.S. development 65+ year record of excellence Partner with leading
Slide 25: Appendix
APPENDIX CBRE
Slide 26: Financial Metrics
Financial Metrics Twelve Months Ended December 31, ($ in millions) 2017 Forecast 2016 2015 Depreciation approx. $ 165 $ 152.8 $ 138.7 Adjusted amortization 1 approx. $ 120 103.0 88.8 Net interest expense approx. $ 135 136.8 112.6 Adjusted income tax rate 2 32.0% 33.4% 35.7% 2016 Currency Effects vs.
Slide 27: Mandatory Amortization And Maturity Schedule
Mandatory Amortization And Maturity Schedule ($ in millions) $2,800 million revolving credit facility matures in March 2021. As of December 31, 2016, the revolving credit facility balance was $0. As of December 31, 20161 Global Cash Undrawn Revolving Credit Facility Investor deck |
Slide 28: Capitalization
Capitalization ($ in millions) As of December 31, 2016 Cash1 $ 689 Revolving credit facility - Senior term loan A2 405 Senior term loan B-12 229 Senior term loan B-22 110 Senior notes – 5.00%2 790 Senior notes – 4.875%2 591 Senior notes – 5.25%2 422 Other debt3,4 - Total debt $ 2,547 Stockholders’ e
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: fee revenue contractual fee revenue net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) diluted income per share attributable t
Slide 30: Reconciliation Of Adjusted EBITDA To EBITDA To Net Income
Twelve Months Ended ($ in millions) December 31, 2016 December 31, 2003 Adjusted EBITDA $ 1,561.0 $ 183.2 Adjustments: Integration and other costs related to acquisitions 125.7 13.6 Cost elimination expenses 78.5 36.8 Carried interest incentive compensation expense1 (15.6) - EBITDA 1,372.4 132.8 Add
Slide 31: Reconciliation Of Net Income To Adjusted Net Income And Adjusted EPS
Twelve Months Ended December 31, ($ in millions, except per share amounts) 2016 2015 Net income attributable to CBRE Group, Inc. $ 572.0 $ 547.1 Integration and other costs related to acquisitions 125.7 48.9 Amortization expense related to certain intangible assets attributable to acquisitions 111.1
Slide 32: Reconciliation Of Revenue To Fee Revenue
Reconciliation Of Revenue To Fee Revenue Twelve Months Ended ($ in millions) December 31, 2016 December 31, 2006 Consolidated revenue $ 13,071.6 $ 4,032.0 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for client
Slide 33: Reconciliation of Segment Revenue to Fee Revenue
Twelve Months Ended December 31, ($ in millions) 2016 2015 Occupier Outsourcing revenue 1 $ 6,078.6 $ 4,034.9 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 3,814.1 2,591.3 Occupier Outsourcing fee re
Slide 34: Footnotes
Footnotes Slide 6 Adjusted EBITDA excludes (from EBITDA) certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, cost elimination expenses and integration and other costs related to acquisitions. Adjusted EPS excludes amortization expense re
Slide 35: Footnotes
Footnotes Slide 17 Excludes global securities business. As of December 31, 2016. Slide 24 As of December 31 for each year presented In Process figures include Long-Term Operating Assets (LTOA) of $0.2 billion for Q4 2016, $0.1 billion for Q4 2015, $0.3 billion for Q4 2014, $0.9 billion for Q4 2013 a