CBRE Q1 2024 Earnings Report
Key Takeaways
CBRE Group, Inc. reported financial results for the first quarter ended March 31, 2024. GAAP EPS was up 10% to $0.41, while Core EPS was down 15% to $0.78. Revenue increased by 7.1% to $7,935 million. The company expects to generate core earnings per share in the range of $4.25 to $4.65 in 2024.
Global leasing revenue rose 4%, driven by office leasing growth.
Global sales revenue declined 11% due to high interest rates and tight credit conditions, except in EMEA where sales revenue increased by 8%.
Mortgage origination revenue jumped 34% due to higher loan fees and interest earnings on escrow balances.
Global Workplace Solutions segment delivered double-digit net revenue growth, but margins fell short of expectations.
CBRE
CBRE
CBRE Revenue by Segment
Forward Guidance
CBRE expects to generate core earnings per share in the range of $4.25 to $4.65 in 2024.
Positive Outlook
- Resilient Businesses’ continued strong performance
- Rapid actions on costs
- Advisory Segment remains on track to achieve its growth target
- Global leasing revenue rose 4% (same local currency), exceeding expectations.
- Even with a second consecutive quarter of very strong business wins, the pipeline remained elevated.
Challenges Ahead
- Persistent inflation kept interest rates higher than expected, which led to underperformance in our property sales transaction activity.
- Margins fell short of expectations in Global Workplace Solutions.
- Weak operating leverage in the quarter reflected certain one-time expenses, including higher-than- anticipated medical claims, and increased costs, which the company is now focused on substantially reducing.
- Sales activity remained under pressure from high interest rates and tight credit conditions.
- Non-core operating loss totaled $71 million, primarily due to the lower value of the company’s investment in Altus Power, Inc.
Revenue & Expenses
Visualization of income flow from segment revenue to net income