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Jun 30, 2023
CBRE Q2 2023 Earnings Report
CBRE's financial performance in Q2 2023 was influenced by growth in Global Workplace Solutions and resilient business lines, but was offset by weaker property sales in Advisory Services.
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
Revenue by Segment
Advisory Services Revenue
CapyFin.comBuilding Ops & Experience Revenue
CapyFin.comReal Estate Investments Revenue
CapyFin.com 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