CBRE Q2 2023 Earnings Report
Key Takeaways
CBRE Group, Inc. reported financial results for the second quarter ended June 30, 2023. GAAP EPS declined 57% to $0.64 and Core EPS declined 55% to $0.82.
Global leasing revenue declined 16%, in-line with expectations, driven largely by the Americas where revenue fell 22%.
Sales revenue fell 44% due to severely constrained capital availability and a difficult comparison with second-quarter 2022.
Global mortgage origination revenue declined 44%, as most debt capital sources remained largely on the sidelines.
Facilities management net revenue rose 12%, driven largely by growth with both new and existing clients and the continued expansion of the Local business.
CBRE
CBRE
CBRE Revenue by Segment
Forward Guidance
CBRE now expects full-year 2023 Core EPS to decline by 20 to 25% against last year’s record level, with the majority of the decrease due to the delayed capital markets recovery.
Positive Outlook
- Company continues to expect its resilient lines of business, in aggregate – consisting of the entire Global Workplace Solutions business, loan servicing, property management, valuations and the asset management component of investment management – to grow for the full year at a rate that is consistent with its expectations three months ago.
- CBRE believes there is a reasonable path to achieving a record level of Core EPS in 2024
Challenges Ahead
- Full-year 2023 Core EPS to decline by 20 to 25% against last year’s record level
- Majority of the decrease due to the delayed capital markets recovery.
- Reaching record Core EPS in 2024 has become more difficult with the expected delay in the return of capital markets activity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income