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Mar 31, 2021

CBRE Q1 2021 Earnings Report

CBRE reported strong Q1 2021 results with record revenue and adjusted earnings per share, driven by business diversification and cost structure improvements.

Key Takeaways

CBRE Group, Inc. reported a strong start to 2021, achieving record first-quarter revenue and adjusted earnings per share. The company's performance was driven by its diversified business model and cost-saving measures implemented in 2020. While the office market continues to face pressure, CBRE anticipates strong growth for the full year, surpassing 2019's peak levels.

CBRE achieved the highest first-quarter revenue and adjusted earnings per share in company history.

Performance was propelled by diversification across property types, lines of business, geographic markets, and client types.

Cost actions taken in 2020 to reset the cost structure underpinned earnings growth.

The company expects adjusted earnings per share for the full year 2021 to meaningfully surpass 2019’s peak level.

Total Revenue
$5.94B
Previous year: $5.89B
+0.8%
EPS
$0.86
Previous year: $0.75
+14.7%
Operating Margin
19.7%
Previous year: 15.2%
+29.6%
Segment Operating Profit Advisory
$332M
Previous year: $293M
+13.5%
Segment Operating Profit GWS
$152M
Previous year: $99.3M
+53.3%
Gross Profit
$1.22B
Previous year: $1.18B
+3.6%
Cash and Equivalents
$1.91B
Previous year: $628M
+204.0%
Free Cash Flow
-$223M
Previous year: -$199M
+12.3%
Total Assets
$17.2B
Previous year: $15.7B
+10.0%

CBRE

CBRE

CBRE Revenue by Segment

Forward Guidance

CBRE expects adjusted earnings per share for the full-year 2021 to meaningfully surpass 2019’s peak level, with potential upside from discretionary capital deployment.

Positive Outlook

  • Adjusted earnings per share to meaningfully surpass 2019’s peak level
  • Potential upside from discretionary capital deployment
  • Strong growth even with continued pressure on the office market
  • Vaccine rollouts continue
  • Companies settle into new normal work regimes

Challenges Ahead

  • Continued pressure on the office market
  • Pressure remains very acute right now, particularly in densely populated gateway cities
  • Will remain challenging for some time to come
  • Covid-19-related challenges
  • Tepid demand for projects, such as space fit-outs, which are often tied to leasing activity

Revenue & Expenses

Visualization of income flow from segment revenue to net income