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Dec 31, 2019

CBRE Q4 2019 Earnings Report

CBRE's Q4 2019 financial results were released, showcasing record revenue and earnings.

Key Takeaways

CBRE Group, Inc. reported strong Q4 2019 results, with revenue reaching $7.119 billion, a 13.1% increase year-over-year. GAAP EPS was $1.87, up 63.0%, and adjusted EPS was $1.32, an 8.8% increase. The company anticipates adjusted EPS of $4.05 to $4.25 for 2020.

Revenue reached $7.119 billion, up 13.1% from Q4 2018.

GAAP net income was $638 million, a 61.9% increase year-over-year.

Adjusted EPS increased by 8.8% to $1.32.

Global property sales surged 21%, reaching its highest level ever for a quarter.

Total Revenue
$7.12B
Previous year: $6.29B
+13.1%
EPS
$1.32
Previous year: $1.21
+9.1%
Operating Margin
18.6%
Leasing Revenue Growth
-7%
Property Sales Growth
21%
Gross Profit
$1.59B
Previous year: $1.52B
+4.2%
Cash and Equivalents
$972M
Previous year: $777M
+25.0%
Free Cash Flow
$951M
Previous year: $553M
+72.0%
Total Assets
$16.2B
Previous year: $13.5B
+20.4%

CBRE

CBRE

CBRE Revenue by Segment

Forward Guidance

CBRE expects adjusted earnings-per-share of $4.05 to $4.25 for 2020, indicating growth of 12% at the mid-point of the range.

Positive Outlook

  • Advisory Services fee revenue growth in the mid-single-digit percentage range
  • Similar level of growth anticipated for both leasing and capital markets (property sales and commercial mortgage origination combined)
  • Fee revenue in the GWS segment is expected to increase in the low double-digit percentage range as the pipeline remains strong and renewals/expansions are expected to be in line with the historical average
  • Solid adjusted EBITDA growth in its Advisory Services and GWS business segments
  • Adjusted EBITDA from its REI segment will increase significantly to around $250 million for the year at the midpoint of the company’s outlook

Revenue & Expenses

Visualization of income flow from segment revenue to net income