Exhibit 99.1

 

 

GRAPHIC

CBRE Group, Inc. Investor Presentation November 2011

 


GRAPHIC

Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations, financial performance, and business outlook. These statements should be considered as estimates only and actual results may ultimately differ from these estimates. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that you may hear today. Please refer to our third quarter earnings report, filed on Form 8-K, our current annual report on Form 10-K and our current quarterly report on Form 10-Q, in particular any discussion of risk factors or forward-looking statements, which are filed with the SEC and available at the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any estimates that you may hear today. We may make certain statements during the course of this presentation, which include references to “non-GAAP financial measures,” as defined by SEC regulations. As required by these regulations, we have provided reconciliations of these measures to what we believe are the most directly comparable GAAP measures, which are attached hereto within the appendix.

 


GRAPHIC

Global Market Leader 1. 2. 3. 4. Includes affiliate offices. On a combined basis, including the acquisition of ING CRES which closed July 1, 2011, ING’s Real Estate Investment Management business in Asia (ING REIM) which closed October 3, 2011 and ING REIM Europe, which closed on October 31, 2011. As of September 30, 2011. Based on 2010 revenues versus Jones Lang LaSalle. Scale and Diversity 1.7x nearest competitor4 Thousands of clients; nearly 80% of the Fortune 100 $128.1 billion of transaction activity in 2010 Broad Capabilities #1 leasing #1 investment sales #1 outsourcing #1 appraisal and valuation #1 commercial mortgage brokerage #1 commercial real estate investment management2 $6.6 billion of development projects in process/pipeline3 Leading Global Brand 100+ years 400+ offices in over 60 countries1 #1 in virtually every major global business center Recognized Leadership S&P 500 Only commercial real estate services company in the S&P 500 FORTUNE Only commercial real estate services company in the Fortune 500 The Lipsey Company #1 brand for ten consecutive years IAOP #1 real estate outsourcing firm Newsweek #1 real estate company in “green” rankings

 


Our Objectives Provide a complete suite of market leading services to property owners and occupiers through a fully integrated global business platform and a managed account strategy Our Strategy Establish and maintain the leading position in every major world city. Establish and maintain the leading position in each service we provide. Maintain the most admired, highest quality brand. Recruit, hire and retain the finest people in our industry. Foster and maintain a culture of integrity, excellence and continuous improvement. Lead the industry in revenue and profit growth and retain the industry’s highest operating margins. Our Vision Be the preeminent, vertically integrated, globally capable commercial real estate services firm

 


Diversified revenue spread across broad base of clients Diverse Client Base 2010 Revenue by Client Type

 


GRAPHIC

Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world LTM 9/30/11 revenue of $5.8 billion includes $4.6 million of revenue related to discontinued operations. LTM 9/30/11 Revenue1

 


GRAPHIC

Revenue Diversification Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34% in LTM 9/30/11), Appraisal & Valuation (7% in 2006 and 6% in LTM 9/30/11), Investment Management (6% in 2006 and 4% in LTM 9/30/11), Development Services (1% in both 2006 and LTM 9/30/11) and Other (1% in 2006 and 2% in LTM 9/30/11). Non-contractual revenue includes: Sales (31% in 2006 and 16% in LTM 9/30/11), Leasing (37% in 2006 and 33% in LTM 9/30/11) and Commercial Mortgage Brokerage (3% in 2006 and 4% in LTM 9/30/11). Reflects Trammell Crow Company’s revenue contributions beginning on December 20, 2006. LTM 9/30/11 revenue includes $4.6 million of revenue related to discontinued operations. Contractual revenues1 represented 47% of LTM 9/30/11 revenue, up from 29% in 2006 LTM 9/30/11 Revenue3 2006 Revenue2

 


GRAPHIC

Revenue Breakdown YTD 3rd Quarter 2011 1. 2. 3. 4. Includes revenue from discontinued operations of $2.4 million for the nine months ended September 30, 2011, and $0.7 million and $1.7 million for the three and nine months ended September 30, 2010, respectively. ($ in millions) 2011 2010 1 % Change 2011 1 2010 1 % Change Property & Facilities Management 521.8 437.1 19 1,498.7 1,298.8 15 Leasing 493.3 414.8 19 1,318.1 1,129.5 17 Sales 254.5 207.8 23 640.4 483.4 32 Appraisal & Valuation 91.5 72.5 26 256.6 219.7 17 Investment Management 68.4 35.4 93 155.2 103.8 50 Commercial Mortgage Brokerage 66.9 50.5 32 156.0 106.2 47 Development Services 16.4 20.7 -21 47.9 55.7 -14 Other 21.7 28.1 -23 71.3 68.6 4 Total 1,534.5 1,266.9 21 4,144.2 3,465.7 20 Three months ended September 30, Nine months ended September 30, 36% 32% 15% 6% 4% 4% 1% 2%

 


Property and Facilities Management 1. 2. 3. Revenue1 ($ in Millions) CAGR = 28% 2 Outsourcing Services Revenue includes property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. Represents combined data for CBRE and Trammell Crow Company; does not include joint ventures and affiliates. Global Square Footage Managed 3 (SF in Billions) CAGR = 14%

 


GRAPHIC

#1 Provider of Every Outsourced Real Estate Service Consulting Property/Facilities Management Project Management Transaction Management Global execution of transactions with a portfolio-wide focus Optimize portfolio Lease administration services Multiple-transaction focus Full service outsourcing Program management One-off integrated transaction management/ project management Moves, adds, changes Sourcing and procurement Operations and maintenance Energy services Health, safety and security Environmental sustainability Client accounting Organizational design Portfolio optimization Workplace strategy Land use analysis and strategy Fiscal and economic impact analysis Clients

 


GRAPHIC

Leasing Global Leasing 1. 2. Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2010. Does not include affiliate offices. 1 Approximately 4,2002 leasing professionals worldwide Tailored service delivery by property type and industry/market specialization $62.8 billion global lease transactions in 2010 Despite a sluggish economy, the leasing market posted solid growth through Q3 2011 YTD. Key Facts

 


GRAPHIC

Office Leasing Market Outlook forecast Office TW Rent Index; % change versus a year ago Office Vacancy rate; % U.S. Office Rent Forecast and Vacancy

 


GRAPHIC

Sales Global Sales Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2010. Does not include affiliate offices. 1 Key Facts Approximately 1,5002 investment sales specialists worldwide Specialization across all major property types $65.3 billion global sales in 2010 Recovery of transaction activity continued through YTD Q3 2011 as low priced capital remained available

 


GRAPHIC

Source: CBRE Research, RCA; Data excludes Development sites. Updated for Q3 2011. Global Transaction Volume

 


Global Investment Management: CBRE Investors GIM Revenue ($ in Millions) CAGR =18% Assets Under Management ($ in Billions) CAGR =28% Key Facts1 $94.82 billion in assets under management $157.2 million of co-investments at the end of Q3 2011 As of September 30, 2011, including ING REIM acquisitions on a combined pro forma basis. Includes assets under management of ING REIM Asia and ING REIM Europe, which were acquired on October 3 and October 31, 2011, respectively. 2

 


GRAPHIC

Global Investment Programs Description Assets Under Management1 ($ in billions) Typical Fee Structure Separate Accounts $23.8 Management fees Transaction fees Incentive fees Sponsored Funds $40.2 Management fees Transaction fees LP profits Carried interest Unlisted Securities $12.3 Management fees Incentive fees Listed Securities $18.5 Management fees Incentive fees (1) As of September 30, 2011, including ING REIM acquisitions on a combined pro forma basis.

 


Combined Based on 2010 results as calculated by ING REIM management. 13.3% Margin 14.5% Margin $ in Billions 1 ING REIM Impact on CBRE Financial Results 2010 Results - Stand Alone & Combined $5.1 $0.7 $5.1 $0.7 $0.3 $0.1 Revenue Normalized EBITDA Revenue Normalized EBITDA CBRE ING REIM 1.

 


Global Products Continental Europe UK Asia Americas Separate Accounts Core/Core Plus Funds Value-Add/ Opportunistic Funds N/A Assets Under Management 1 ($ Billions) 7.3 5.0 16.5 2.0 2.9 20.0 0.7 1.4 0.4 6.8 3.4 1.6 0.2 0.7 0.6 0.9 1.2 2.9 0.2 9.8 3.0 7.3 CBRE Investors ING REIM Amounts represent assets under management as of September 30, 2011. Funds of Funds Global Securities Why ING REIM Is The Perfect Fit 1.

 


GRAPHIC

Development Services: 1. 2. 3. Trammell Crow Company Revenue1 ($ in Millions) Includes Trammell Crow Company’s operations prior to the acquisition of Trammell Crow Company on December 20, 2006. Also includes revenue from discontinued operations. In Process figures include Long-Term Operating Assets (LTOA) of $1.4 billion for 3Q 11, $1.6 billion for 4Q 10, $1.4 billion for 4Q 09 and $0.4 billion for both 4Q 08 and 4Q 07. LTOA are projects that have achieved a stabilized level of occupancy or have been held 18-24 months following shell completion or acquisition. As of September 30, 2011. CAGR =4% $6.6 billion in process/pipeline $81.6 million of co-investments Only $16.7 million in recourse debt to CBRE and repayment guarantees Projects In Process/Pipeline ($ in Billions) Key Facts3 2

 


GRAPHIC

($ in Millions) No 1. 2. 3. 4. 5. reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursements for 1997 through 2001 have been estimated. For 2002 and forward, reimbursements are included. Includes Trammell Crow Company activity for the period December 20, 2006 through December 31, 2006. Includes revenue from discontinued operations, which totaled $2.1 million for the year ended December 31, 2007, $1.3 million for the year ended December 31, 2008, $3.9 million for the year ended December 31, 2010 and $4.6 million for the twelve months ended September 30, 2011. Normalized EBITDA excludes merger-related and other non-recurring costs, integration and other costs related to acquisitions, cost containment expenses, one-time IPO-related compensation expense, gains/losses on trading securities acquired in the Trammell Crow Company acquisition and the write-down of impaired assets. Includes EBITDA related to discontinued operations of $6.5 million for the year ended December 31, 2007, $16.9 million for the year ended December 31, 2008, $16.4 million for the year ended December 31, 2010 and $3.0 million for the twelve months ended September 30, 2011. ($ in Millions) 1992 – 2010 CAGR = 16% Average Annual Organic Growth of 9% Revenue 1 Normalized EBITDA and Margin 4 1992 – 2010 CAGR = 22% Historical Performance 5 5 5 3 3 3 2 2 3 5 20 26 34 42 62 90 127 117 151 115 131 183 300 461 653 970 601 454 681 741 5.6% 6.6% 7.9% 8.9% 10.6% 11.9% 10.7% 8.4% 9.9% 8.4% 9.6% 10.1% 11.3% 14.4% 16.2% 16.1% 11.7% 10.9% 13.3% 12.8% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LTM Q3 2011 Normalized EBITDA Normalized EBITDA Margin 360 392 429 469 583 759 1,187 1,403 1,518 1,362 1,362 1,810 2,647 3,194 4,032 6,036 5,130 4,166 5,119 5,798 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LTM Q3 2011 Organic Revenue Revenue From Acquisitions

 


GRAPHIC

Mandatory Amortization and Maturity Schedule $ millions Represents new senior secured sterling tranche A-1 term loan of GBP 187 million, which closed on November 10, 2011. Term Loan A-1 assumes a $1.6/₤ exchange rate. $700.0 million revolver facility matures in May 2015. As of September 30, 2011 the outstanding revolver balance was $41.3 million. Pro forma as of September 30, 2011 1 2 17 68 70 76 340 422 458 378 370 350 0.0 250.0 500.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan A-1 Term Loan B Term Loan C Term Loan D Sr. Subordinated Notes Sr. Unsecured Notes Revolver 1. 2.

 


GRAPHIC

Capitalization Excludes 1. 2. 3. 4. 5. $210.7 million and $26.1 million of cash in consolidated funds and other entities, but not available for company use at September 30, 2011 and December 31, 2010, respectively. Term loan A-1 assumes a $1.6/₤ exchange rate. Net of original issue discount of $11.3 million and $12.3 million at September 30, 2011 and December 31, 2010, respectively. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $485.7 million and $623.8 million at September 30, 2011 and December 31, 2010, respectively. Excludes $676.8 million and $453.8 million of aggregate non-recourse warehouse facilities at September 30, 2011 and December 31, 2010, respectively. ($ in millions) Proforma 9/30/2011 9/30/2011 12/31/2010 Cash 1 576.1 451.9 480.5 Cash in Escrow - 335.0 - Total cash 576.1 786.9 480.5 Revolving credit facility 81.3 41.3 17.5 Senior secured term loan A 315.0 315.0 341.3 Senior secured term loan A-1 2 299.2 - - Senior secured term loan B 297.0 297.0 299.2 Senior secured term loan C 399.0 399.0 - Senior secured term loan D 399.0 399.0 - Senior subordinated notes 3 438.7 438.7 437.7 Senior unsecured notes 350.0 350.0 350.0 Notes payable on real estate 4 13.6 13.6 3.7 Other debt 5 0.1 0.1 0.2 Total debt 2,592.9 2,253.7 1,449.6 Stockholders' equity 1,082.4 1,082.4 908.2 Total capitalization 3,675.3 3,336.1 2,357.8 Total net debt 2,016.8 1,466.8 969.1 As of

 


GRAPHIC

Business Outlook Early-stage cyclical recovery in commercial real estate continues despite sovereign debt challenges in Europe and economic uncertainty in the U.S. Outsourcing fundamentals remain very strong and we continue to expect solid double digit growth Investment sales are expected to continue growing as capital remains available and investors continue to search for yield Leasing growth rates should revert to historical norms as the economy stabilizes We remain focused on cost containment balanced with selective strategic recruiting We continue to expect full year 2011 earnings to be in the range of $0.95 to $1.05 per share

 


GRAPHIC

Appendix

 


GRAPHIC

Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Notes: Includes EBITDA related to discontinued operations of $3.0 million for the twelve months ended September 30, 2011, $16.4 million for the year ended December 31, 2010, $16.9 million for the year ended December 31, 2008 and $6.5 million for the year ended December 31, 2007. Includes interest income related to discontinued operations of $0.1 million for the year ended December 31, 2008 and $0.01 million for the year ended December 31, 2007. Includes depreciation and amortization related to discontinued operations of $0.9 million for the twelve months ended September 30, 2011, $0.6 million for the year ended December 31, 2010, $0.1 million for the year ended December 31, 2008 and $0.4 million for the year ended December 31, 2007. Includes interest expense related to discontinued operations of $1.9 million for the twelve months ended September 30, 2011, $1.6 million for the year ended December 31, 2010, $0.6 million for the year ended December 31, 2008 and $1.8 million for the year ended December 31, 2007. Includes provision for income taxes related to discontinued operations of $0.4 million for the twelve months ended September 30, 2011, $5.4 million for the year ended December 31, 2010, $6.0 million for the year ended December 31, 2008 and $1.6 million for the year ended December 31, 2007. Includes revenue related to discontinued operations of $4.6 million for the twelve months ended September 30, 2011, $3.9 million for the year ended December 31, 2010, $1.3 million for the year ended December 31, 2008 and $2.1 million for the year ended December 31, 2007. ($ in millions) LTM Q3 2011 2010 2009 2008 2007 2006 Normalized EBITDA 1 740.9 $ 681.3 $ 453.9 $ 601.2 $ 970.1 $ 652.5 $ Less: Integration and other costs related to acquisitions 28.0 7.2 5.7 16.4 45.2 7.6 Write-down of impaired assets 10.3 11.3 32.5 100.4 - - Cost containment expenses 3.5 15.3 43.6 27.4 - - Merger-related charges - - - - 56.9 - Loss (gain) on trading securities acquired in the Trammell Crow Company acquisition - - - - 33.7 (8.6) EBITDA 1 699.1 647.5 372.1 457.0 834.3 653.5 Add: Interest income 2 9.2 8.4 6.1 17.9 29.0 9.8 Less: Depreciation and amortization 3 109.8 109.0 99.5 102.9 113.7 67.6 Interest expense 4 150.2 192.7 189.1 167.8 164.8 45.0 Write-off of financing costs 18.1 18.1 29.3 - - 33.8 Goodwill and other non-amortizable intangible asset impairments - - - 1,159.4 - - Provision for income taxes 5 175.7 135.8 27.0 56.9 194.3 198.3 Net income (loss) attributable to CBRE Group, Inc. 254.5 $ 200.3 $ 33.3 $ (1,012.1) $ 390.5 $ 318.6 $ Revenue 6 5,797.7 5,119.2 4,165.8 5,130.1 6,036.3 4,032.0 Normalized EBITDA Margin 12.8% 13.3% 10.9% 11.7% 16.1% 16.2% Year Ended December 31, 1. 2. 3. 4. 5. 6.