CBRE Q3 2020 Earnings Report
Key Takeaways
CBRE Group, Inc. reported financial results for the third quarter ended September 30, 2020. The company's performance was impacted by the Covid-19 pandemic, particularly in the sales and leasing businesses. However, internal efforts to improve cash management resulted in increased free cash flow. GAAP EPS was $0.55 and adjusted EPS was $0.73 for the quarter.
Revenue was $5,645 million, a decrease of 4.7% from Q3 2019.
GAAP net income was $184 million, a decrease of 28.2% from Q3 2019.
Adjusted EBITDA was $442 million, a decrease of 2.8% from Q3 2019.
Free cash flow increased 101.4% to $798 million.
CBRE
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CBRE Revenue by Segment
Forward Guidance
CBRE is navigating the Covid-19 pandemic by leveraging resilient aspects of its business, aligning expenses with market demand, and capitalizing on secular growth trends.
Positive Outlook
- Capitalizing on occupier outsourcing trends.
- Leveraging growth in industrial and logistics space.
- Focusing on institutional-quality multifamily assets.
- Expanding workplace experience services.
- Positioning strategy and leadership to capitalize on new secular opportunities arising from Covid-19.
Challenges Ahead
- Covid-19 is putting downward pressure on parts of CBRE's business.
- Property leasing and sales are experiencing a sharp, Covid-driven fall.
- Large occupiers are putting leasing decisions on hold.
- Capital flows into commercial real estate remain severely disrupted.
- The pandemic's continuing effects are causing some occupiers to extend their decision-making timelines or place some decisions temporarily on hold.
Revenue & Expenses
Visualization of income flow from segment revenue to net income