EXHIBIT 99.1
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Press Release


FOR IMMEDIATE RELEASE
For further information:
Kristyn FarahmandSteve Iaco
214.863.3145212.984.6535
Kristyn.Farahmand@cbre.com
Steven.Iaco@cbre.com

CBRE GROUP, INC. REPORTS FINANCIAL RESULTS FOR THIRD-QUARTER 2021
Net Income Up 137% and EPS Up 135% to $1.28
Adjusted Net Income Up 93% and Adjusted EPS Up 92% to $1.39
Dallas, TX – October 28, 2021 — CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the third quarter ended September 30, 2021.

“The benefits of our diversification strategy were clearly evident in the third quarter with both earnings per share and adjusted earnings per share 70% or more above the third-quarter 2019 peak,” said Bob Sulentic, president and chief executive officer of CBRE. “Our leaders around the world have been adept at identifying and securing compelling opportunities to grow our business across the four dimensions of diversification – asset types, business lines, client types and geographies. While returning capital to our shareholders, we have committed approximately $2 billion of capital already this year to secularly favored areas, including green energy and infrastructure project management, logistics and multifamily assets and flex office solutions. These investments, and the opportunities they open up for us to make further capital and organic investments in these areas, will position us to drive earnings growth for years to come.”










CBRE Press Release
October 28, 2021
Page 2
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
% Change
Q3 2021
Q3 2020
USD
LC (1)
Operating Results
Revenue$6,798 $5,645 20.4 %18.6 %
Net revenue (2)
4,173 3,249 28.5 %26.5 %
GAAP net income436 184 136.6 %133.2 %
GAAP EPS$1.28 $0.55 134.8 %131.4 %
Adjusted EBITDA (3)
736 442 66.6 %64.6 %
Adjusted net income (4)
474 245 93.4 %90.6 %
Adjusted EPS (4)
$1.39 $0.73 91.9 %89.1 %
Cash Flow Results
Cash flow from operations$973 $866 12.3 %
Less: Capital expenditures45 56 (19.4)%
Free cash flow (5)
$928 $810 14.5 %


Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions):
% Change
Q3 2021
Q3 2020
USDLC
Revenue$2,412 $1,630 48.0 %46.2 %
Net revenue2,402 1,624 47.9 %46.1 %
Segment operating profit (6)
522 287 81.9 %80.2 %
Segment operating profit on revenue margin (7)
21.6 %17.6 %4.0 %4.1 %
Segment operating profit on net revenue margin (7)
21.7 %17.6 %4.1 %4.1 %

The Advisory Services segment rebounded strongly from pandemic-suppressed levels of third-quarter 2020. Third-quarter 2021 revenue growth was very strong, with all business lines exceeding third-quarter 2019 levels. In addition to strong revenue growth, cost-saving actions taken in 2020 contributed to a more than 80% increase in segment operating profit.

Capital markets activity led the segment’s recovery. Global property sales revenue rose 93% (91% local currency) from the weak levels of last year’s third quarter and exceeded the third-quarter 2019 peak level by 27%. Compared with last year’s third quarter, the United States posted a robust increase, with revenue


CBRE Press Release
October 28, 2021
Page 3
up 116%, and CBRE’s market share improved 20 basis points from last year’s third quarter to a market-leading 16.8%, according to Real Capital Analytics. International markets also saw strong increases versus last year’s third quarter, paced by Australia and the United Kingdom.

Commercial mortgage origination revenue jumped 41% (same local currency) from third-quarter 2020. Lending activity rose across all capital sources in step with increased investment market activity, with private lenders leading the upturn. During the quarter, industrial and multifamily assets remained in keen demand, while interest in hospitality, retail and well-leased office assets also increased. Government-Sponsored Enterprise lending picked up from earlier in the year, with an emphasis on affordable housing.

Leasing activity continued to revive. Compared with last year’s third quarter, global leasing revenue increased 58% (57% local currency) and exceeded the third-quarter 2019 peak level by 7%. International markets continued to set the pace for leasing recovery with both EMEA and APAC increasing by double-digit percentages compared with the third-quarter 2019 peak level. United States revenue surged 67% compared with third-quarter 2020 and increased 5% from the third-quarter 2019 peak. Industrial properties once again saw very strong growth. Activity at United States office buildings improved notably compared with both second-quarter 2021 and third-quarter 2020 but remained below pre-pandemic levels.

Loan servicing revenue increased 35% (same local currency) from third-quarter 2020 and the loan servicing portfolio increased 19% to approximately $300 billion at quarter’s end. Valuation revenue continued to bounce back strongly around the globe, rising 27% (25% local currency) from third-quarter 2020. Property management revenue rose 6% (5% local currency) compared with third-quarter 2020.

Global Workplace Solutions (GWS) Segment
The following table presents highlights of the GWS segment performance (dollars in millions):
% Change
Q3 2021
Q3 2020
USDLC
Revenue$4,167 $3,851 8.2 %6.5 %
Net revenue (8)
1,552 1,460 6.3 %4.4 %
Segment operating profit187 161 16.5 %14.4 %
Segment operating profit on revenue margin4.5 %4.2 %0.3 %0.3 %
Segment operating profit on net revenue margin12.1 %11.0 %1.1 %1.1 %

The GWS segment again posted solid revenue growth and 16% operating profit growth across its global business base.

Facilities management, which is largely contractual, saw an increase of 6% (4% local currency) in revenue compared with third-quarter 2020. This increase was propelled by significant strength with local clients.

Project management revenue rose 21% (19% local currency) from third-quarter 2020, reflecting a continued recovery of construction activity following last year’s lockdowns.

The new business pipeline increased markedly from the second quarter and was up relative to third-quarter 2020 and 2019 levels, with representation from financial services, industrial, life sciences and technology companies.


CBRE Press Release
October 28, 2021
Page 4

Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
% Change
Q3 2021
Q3 2020
USDLC
Revenue$224 $170 32.0%27.7%
Adjusted revenue (9)
358 215 66.7%64.7%
Segment operating profit (10)
146 71 104.6%103.1%

Continued strong growth in both development services and investment management drove a sharp increase in segment operating profit in the third quarter.

Global real estate development operating profit (11) nearly doubled from third-quarter 2020 to approximately $100 million, fueled by a strong pace of industrial asset sales at high valuations.

The in-process development portfolio ended the quarter at $16.8 billion, a record level for the company and up $1.6 billion from second-quarter 2021. Build-to-suits and fee development comprised approximately half of the in-process portfolio. The pipeline remained relatively stable at $9.6 billion, largely comprised of industrial and multifamily assets.

Investment management revenue rose 35% (32% local currency) from third-quarter 2020 to $135 million, driven by a record level of asset management fees and higher incentive, acquisition and disposition fees. Operating profit(11) surged 68% (64% local currency) from third-quarter 2020 to $49 million, reflecting strong revenue gains and prudent cost management.

Assets under management ended the quarter at $133.1 billion, a record high for the company and an increase of $4.0 billion ($5.8 billion local currency) from second-quarter 2021. The increase reflected higher asset valuations and strong net capital inflows, partly offset by unfavorable foreign currency movement.

Corporate and Other Segment

Corporate segment expense, which primarily reflects overhead costs, increased to $118.8 million from $77.1 million in the prior-year quarter. The increase was primarily due to an increase in stock compensation expense tied to significant growth in performance this quarter as compared to the three months ended September 30, 2020, when the operating results were impacted by the pandemic.



CBRE Press Release
October 28, 2021
Page 5
Capital Allocation Overview
•Free Cash Flow – During the third quarter of 2021, free cash flow increased 14.5% to $927.5 million. This reflected cash from operating activities of $973.0 million, less total capital expenditures of $45.5 million. Net capital expenditures totaled $39.7 million. (12)
•Stock Repurchase Program – The company spent $100.0 million to repurchase more than 1.0 million shares at an average price of $97.55 per share during the third quarter of 2021, and $188.3 million to repurchase 2.2 million shares at an average price of $87.29 per share during the first nine months of 2021. There was $161.7 million of capacity remaining under the company’s authorized stock repurchase program as of September 30, 2021.
•Acquisitions and Investments – As announced in July 2021, the company signed an agreement to acquire a 60% ownership interest in Turner & Townsend Holdings Limited, a global leader in program management, project management and cost consulting, for approximately $1.3 billion. Of this amount, an initial payment of approximately $0.7 billion will be made in early November, when the transaction is expected to close. In addition, the company made in-fill acquisitions totaling $21.0 million in cash and deferred consideration during the third quarter.
Leverage and Financing Overview
•Leverage – The company’s net leverage ratio (net cash (13) to trailing twelve-month adjusted EBITDA) was (0.31x) as of September 30, 2021, which is substantially below the company's primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):
As of
September 30, 2021
Total debt$1,849 
Less: Cash (14)
2,676 
Net debt (cash) (13)
$(827)
Divided by: Trailing twelve month adjusted EBITDA$2,699 
Net leverage ratio(0.31x)

•Liquidity – As of September 30, 2021, the company had approximately $5.8 billion of total liquidity, consisting of approximately $2.7 billion in cash, plus the ability to borrow an aggregate of approximately $3.1 billion under its revolving credit facilities, net of any outstanding letters of credit.


CBRE Press Release
October 28, 2021
Page 6
Conference Call Details
The company’s third quarter earnings webcast and conference call will be held today, Thursday, October 28, 2021 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on October 28, 2021. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13723947#. A transcript of the call will be available on the company's Investor Relations website at https://ir.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s future growth momentum, operations, market share, business outlook, capital deployment and financial performance as well as the completion of the Turner & Townsend acquisition. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; disruptions to business, market and operational conditions related to the Covid-19 pandemic and the impact of government rules and regulations intended to mitigate the effects of this pandemic, including, without limitation, rules and regulations that impact us as a loan originator and servicer for U.S. Government Sponsored Enterprises (GSEs); our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes


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October 28, 2021
Page 7
in capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect subsidiary, CBRE Capital Markets, Inc., to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. GSEs, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; variations in historically customary seasonal patterns that cause our business not to perform as expected; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, as well as the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; and any inability for us to implement and maintain effective internal controls over financial reporting; and the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the satisfaction of the Turner & Townsend acquisition’s closing conditions.
Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2020, our quarterly report on Form 10-Q for the quarterly period ended June 30, 2021, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
The terms “net revenue,” “adjusted revenue,” “adjusted net income,” “adjusted earnings per share” (or adjusted EPS), “adjusted EBITDA,” “business line operating profit,” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.


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October 28, 2021
Page 8
Totals may not sum in tables in millions included in this release due to rounding.
(1)Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.
(2)Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin.
(3)Adjusted EBITDA represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, costs associated with workforce optimization, transformation initiatives, and integration and other costs related to acquisitions.
(4)Adjusted net income and adjusted earnings per diluted share (or adjusted EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, costs associated with workforce optimization, transformation initiatives and asset impairments.
(5)Free cash flow is calculated as cash flow from operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).
(6)Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate acquired in the Telford Acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, costs associated with workforce optimization, transformation initiatives and integration and other costs related to acquisitions. Prior period results have been recast to conform to this definition.
(7)Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively.
(8)Third-quarter 2021 GWS net revenue growth was negatively impacted by approximately 3% due to a reclassification of pass-through revenue in project management. There was no impact to GWS revenue in the period.
(9)Adjusted revenue for the Real Estate Investments segment reflects revenue for this segment, less the direct cost of revenue, along with equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests. Adjusted revenue also removes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period.
(10)Segment operating profit in the Real Estate Investments segment includes equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests, and the associated compensation expense.
(11)Represents line of business profitability/losses, as adjusted.
(12)For the three months ended September 30, 2021, the company incurred capital expenditures of $45.5 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $5.8 million (reflected in the operating section of the condensed consolidated statement of cash flows).
(13)Net debt (cash) is calculated as cash available for company use less total debt (excluding non-recourse debt).
(14)Cash represents cash and cash equivalents (excluding restricted cash) and excludes $92.2 million of cash in consolidated funds and other entities not available for company use at September 30, 2021.



CBRE Press Release
October 28, 2021
Page 9
CBRE GROUP, INC.
OPERATING RESULTS
FOR THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue:
Net revenue$4,172,973 $3,248,513 11,443,648 9,667,416 
Pass through costs also recognized as revenue2,625,354 2,396,629 7,752,171 7,248,278 
Total revenue6,798,327 5,645,142 19,195,819 16,915,694 
Costs and expenses:
Cost of revenue5,258,947 4,564,579 14,995,252 13,676,790 
Operating, administrative and other1,025,681 794,227 2,811,224 2,355,099 
Depreciation and amortization122,564 127,725 363,727 357,903 
Asset impairments— — — 75,171 
Total costs and expenses6,407,192 5,486,531 18,170,203 16,464,963 
Gain on disposition of real estate (1)
18,530 52,797 19,615 75,132 
Operating income409,665 211,408 1,045,231 525,863 
Equity income from unconsolidated subsidiaries (1)
163,809 32,376 459,535 72,487 
Other income7,693 7,947 22,470 12,974 
Interest expense, net of interest income11,038 17,829 34,916 51,795 
Income before provision for income taxes570,129 233,902 1,492,320 559,529 
Provision for income taxes133,507 49,062 343,279 119,047 
Net income436,622 184,840 1,149,041 440,482 
Less: Net income attributable to non-controlling interests (1)
879 708 4,459 2,258 
Net income attributable to CBRE Group, Inc.$435,743 $184,132 $1,144,582 $438,224 
Basic income per share:
Net income per share attributable to CBRE Group, Inc.$1.30 $0.55 $3.41 $1.31 
Weighted average shares outstanding for basic income per share335,364,942 335,287,245 335,621,337 335,128,531 
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.$1.28 $0.55 $3.37 $1.30 
Weighted average shares outstanding for diluted income per share340,337,159 337,665,848 339,805,292 338,255,859 
Adjusted EBITDA$736,069 $441,764 $1,945,584 $1,139,419 
_______________
(1)Equity income from unconsolidated subsidiaries and gain on disposition of real estate, less net income attributable to non-controlling interests, includes income of $183.2 million and $83.2 million for the three months ended September 30, 2021 and 2020, respectively, and $483.6 million and $144.6 million for the nine months ended September 30, 2021 and 2020, respectively, attributable to Real Estate Investments but does not include significant related compensation expense (which is included in operating, administrative and other expenses). In the Real Estate Investments segment, related equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests, and the associated compensation expense, are all included in adjusted EBITDA.


CBRE Press Release
October 28, 2021
Page 10
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021
(in thousands)
(Unaudited)
Three Months Ended September 30, 2021
Advisory
Services
Global Workplace
Solutions
Real Estate
Investments
Corporate, Other and Eliminations (1)
Consolidated
Revenue:
Net revenue$2,402,141 $1,551,795 $223,832 $(4,795)$4,172,973 
Pass through costs also recognized as revenue10,006 2,615,348 — — 2,625,354 
Total revenue2,412,147 4,167,143 223,832 (4,795)6,798,327 
Costs and expenses:
Cost of revenue 1,433,315 3,788,156 40,224 (2,748)5,258,947 
Operating, administrative and other 466,189 209,232 229,303 120,957 1,025,681 
Depreciation and amortization 76,249 34,580 4,617 7,118 122,564 
Total costs and expenses1,975,753 4,031,968 274,144 125,327 6,407,192 
Gain on disposition of real estate— — 18,530 — 18,530 
Operating income (loss)436,394 135,175 (31,782)(130,122)409,665 
Equity income (loss) from unconsolidated subsidiaries19,567 749 156,479 (12,986)163,809 
Other (loss) income (10,531)617 447 17,160 7,693 
Less: Net income attributable to non-controlling interests140 17 722 — 879 
Add-back: Depreciation and amortization76,249 34,580 4,617 7,118 122,564 
Adjustments:
Integration and other costs related to acquisitions— 16,211 — — 16,211 
Carried interest incentive compensation expense to align with the timing of associated revenue— — 16,959 — 16,959 
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period— — 47 — 47 
Segment operating profit (loss)$521,539 $187,315 $146,045 $(118,830)
Adjusted EBITDA$736,069 
_______________
(1)Includes elimination of inter-segment revenue.


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October 28, 2021
Page 11
CBRE GROUP, INC.
SEGMENT RESULTS—(CONTINUED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020
(in thousands)
(Unaudited)
Three Months Ended September 30, 2020 (3)
Advisory
Services
Global Workplace
Solutions
Real Estate
Investments
Corporate, Other and Eliminations (1)
Consolidated
Revenue:
Net revenue$1,624,164 $1,460,495 $169,612 $(5,758)$3,248,513 
Pass through costs also recognized as revenue5,846 2,390,783 — — 2,396,629 
Total revenue1,630,010 3,851,278 169,612 (5,758)5,645,142 
Costs and expenses:
Cost of revenue 986,777 3,540,856 40,384 (3,438)4,564,579 
Operating, administrative and other 384,692 166,959 147,662 94,914 794,227 
Depreciation and amortization 80,407 33,839 5,902 7,577 127,725 
Total costs and expenses1,451,876 3,741,654 193,948 99,053 5,486,531 
Gain on disposition of real estate— — 52,797 — 52,797 
Operating income (loss)178,134 109,624 28,461 (104,811)211,408 
Equity income (loss) from unconsolidated subsidiaries1,241 247 30,914 (26)32,376 
Other income539 45 117 7,246 7,947 
Less: Net income attributable to non-controlling interests116 39 553 — 708 
Add-back: Depreciation and amortization80,407 33,839 5,902 7,577 127,725 
Adjustments:
Costs associated with transformation initiatives (2)
26,450 17,113 — 11,811 55,374 
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period— — 2,289 — 2,289 
Costs incurred related to legal entity restructuring— — — 1,061 1,061 
Integration and other costs related to acquisitions— — 525 — 525 
Carried interest incentive compensation expense to align with the timing of associated revenue— — 3,767 — 3,767 
Segment operating profit (loss)$286,655 $160,829 $71,422 $(77,142)
Adjusted EBITDA$441,764 
_______________
(1)Includes elimination of inter-segment revenue.
(2)Commencing during the quarter ended September 30, 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees.
(3)Prior-period results have been recast to conform to changes announced in first-quarter 2021 and were previously disclosed in our supplemental financial disclosure provided during that quarter.


CBRE Press Release
October 28, 2021
Page 12
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
September 30, 2021December 31, 2020
Assets:
Cash and cash equivalents (1)
$2,767,820 $1,896,188 
Restricted cash108,302 143,059 
Receivables, net4,445,790 4,394,954 
Warehouse receivables (2)
1,409,038 1,411,170 
Contract assets476,473 471,827 
Income taxes receivable209,753 137,311 
Property and equipment, net722,646 815,009 
Operating lease assets973,335 1,020,352 
Goodwill and other intangibles, net5,220,389 5,189,522 
Investments in unconsolidated subsidiaries845,621 452,365 
Investments held in trust - special purpose acquisition company402,519 402,501 
Other assets, net2,148,674 1,704,885 
Total assets$19,730,360 $18,039,143 
Liabilities:
Current liabilities, excluding debt and operating lease liabilities$5,818,050 $5,544,649 
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2)
1,383,772 1,383,964 
Senior term loans, net760,770 785,678 
4.875% senior notes, net595,224 594,524 
2.500% senior notes, net487,855 — 
Other debt5,311 6,844 
Operating lease liabilities1,257,352 1,325,321 
Other long-term liabilities1,021,347 892,503 
Total liabilities11,329,681 10,533,483 
Non-controlling interest subject to possible redemption - special purpose acquisition company402,519 385,573 
Equity:
CBRE Group, Inc. stockholders' equity7,962,593 7,078,326 
Non-controlling interests35,567 41,761 
Total equity7,998,160 7,120,087 
Total liabilities and equity$19,730,360 $18,039,143 
 
_______________
(1)Includes $92.2 million and $102.9 million of cash in consolidated funds and other entities not available for company use as of September 30, 2021 and December 31, 2020, respectively.
(2)Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.


CBRE Press Release
October 28, 2021
Page 13
CBRE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended September 30,
20212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$1,149,041 $440,482 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization363,727 357,903 
Amortization of financing costs5,080 4,632 
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets(198,131)(179,506)
Asset impairments— 75,171 
Net realized and unrealized gains, primarily from investments(26,898)(12,974)
Provision for doubtful accounts24,489 49,498 
Net compensation expense for equity awards133,308 41,841 
Equity income from unconsolidated subsidiaries(459,535)(72,487)
Distribution of earnings from unconsolidated subsidiaries382,831 103,796 
Proceeds from sale of mortgage loans12,767,544 11,565,281 
Origination of mortgage loans(12,712,118)(11,727,227)
(Decrease) increase in warehouse lines of credit(192)214,659 
Tenant concessions received18,645 28,617 
Purchase of equity securities(5,281)(8,932)
Proceeds from sale of equity securities6,856 11,210 
Increase in real estate under development(123,580)(68,178)
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets)(255,161)610,058 
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)(107,756)(98,977)
Increase (decrease) in compensation and employee benefits payable and accrued bonus and profit sharing176,413 (550,932)
Decrease in net income taxes receivable/payable42,100 118,736 
Other operating activities, net18,739 (12,313)
Net cash provided by operating activities1,200,121 890,358 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(121,409)(190,546)
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired(71,373)(25,923)
Contributions to unconsolidated subsidiaries(400,967)(72,058)
Distributions from unconsolidated subsidiaries63,776 66,409 
Other investing activities, net(25,433)15,631 
Net cash used in investing activities(555,406)(206,487)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility— 835,671 
Repayment of revolving credit facility— (835,671)
Proceeds from notes payable on real estate71,157 40,263 
Repayment of notes payable on real estate(13,944)(24,704)
Proceeds from issuance of 2.500% senior notes492,255 — 
Repurchase of common stock(188,285)(50,028)
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date)(3,421)(34,400)
Units repurchased for payment of taxes on equity awards(36,747)(41,627)
Non-controlling interest contributions652 1,977 
Non-controlling interest distributions(4,026)(2,471)
Other financing activities, net(42,767)(30,050)
Net cash provided by (used in) financing activities274,874 (141,040)
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash(82,714)9,981 
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH836,875 552,812 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD2,039,247 1,093,745 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD$2,876,122 $1,646,557 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$29,131 $60,415 
Income tax payments, net$220,955 $4,137 


CBRE Press Release
October 28, 2021
Page 14
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i)Net revenue
(ii)Adjusted revenue for the Real Estate Investments segment
(iii)Net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “adjusted net income”)
(iv)Diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted (which we also refer to as “adjusted earnings per diluted share” or “adjusted EPS”)
(v)Adjusted EBITDA
(vi)Business line operating profit/loss
(vii)Segment operating profit on revenue and net revenue margins
(viii)Free cash flow
(ix)Net cash
These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to net revenue: net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company’s overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business. Prior to 2021, the company utilized fee revenue to analyze the overall financial performance. This metric excluded additional reimbursed costs, primarily related to employees dedicated to clients, some of which included minimal margin.
With respect to adjusted revenue: the company believes that investors may find this measure useful to analyze the financial performance of our Real Estate Investments segment because it is more reflective of this segment’s total operations.
With respect to adjusted net income, adjusted EPS, adjusted EBITDA, business line operating profit, and segment operating profit on revenue and net revenue margins:  the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions—and in the case of adjusted EBITDA, business line operating profit and segment operating profit on revenue and net revenue margins—the effects of financings and income tax and the accounting effects of capital spending. All of these measures and adjusted revenue may vary for different companies for reasons unrelated to overall operating performance. In the case of adjusted EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary


CBRE Press Release
October 28, 2021
Page 15
use because it does not consider cash requirements such as tax and debt service payments. The adjusted EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses adjusted EBITDA, segment operating profit and adjusted EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net cash, the company believes that investors use this measure when calculating the company’s net leverage ratio.
Net income attributable to CBRE Group, Inc. stockholders, as adjusted (or adjusted net income), and diluted income per share attributable to CBRE Group, Inc. stockholders, as adjusted (or adjusted EPS), are calculated as follows (in thousands, except share and per share data):
Three Months Ended September 30,Nine Months Ended September 30,
20212020
2019 (3)
20212020
Net income attributable to CBRE Group, Inc. $435,743 $184,132 $256,599 $1,144,582 $438,224 
Plus / minus:
Costs associated with transformation initiatives (1)
— 55,374 — — 55,374 
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions17,323 18,774 19,330 52,991 57,281 
Integration and other costs related to acquisitions16,211 525 4,517 24,345 1,544 
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue16,959 3,767 (3,360)33,963 (11,517)
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period47 2,289 — 772 9,289 
Costs incurred related to legal entity restructuring— 1,061 — — 4,995 
Asset impairments— — — — 75,171 
Costs associated with workforce optimization efforts (2)
— — — — 37,594 
Tax impact of adjusted items(12,386)(20,869)(7,244)(27,314)(51,044)
Net income attributable to CBRE Group, Inc., as adjusted$473,897 $245,053 $269,842 $1,229,339 $616,911 
Diluted income per share attributable to CBRE Group, Inc., as adjusted$1.39 $0.73 $0.79 $3.62 $1.82 
Weighted average shares outstanding for diluted income per share340,337,159337,665,848341,100,182339,805,292338,255,859
_______________
(1)Commencing during the quarter ended September 30, 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees.
(2)Primarily represents costs incurred related to workforce optimization initiated and executed in second quarter of 2020 as part of management’s cost containment efforts in response to the Covid-19 pandemic. The charges are cash expenditures primarily for severance costs incurred related to this effort. Of the total costs, $7.4 million was included within the “Cost of revenue” line item and $30.2 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the nine months ended September 30, 2020.
(3)Third-quarter 2019 data included as it is being referenced in the document.


CBRE Press Release
October 28, 2021
Page 16
Adjusted EBITDA is calculated as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net income attributable to CBRE Group, Inc.$435,743 $184,132 $1,144,582 $438,224 
Add:
Depreciation and amortization122,564 127,725 363,727 357,903 
Asset impairments— — — 75,171 
Interest expense, net of interest income11,038 17,829 34,916 51,795 
Provision for income taxes133,507 49,062 343,279 119,047 
Costs associated with transformation initiatives (1)
— 55,374 — 55,374 
Integration and other costs related to acquisitions16,211 525 24,345 1,544 
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue16,959 3,767 33,963 (11,517)
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period47 2,289 772 9,289 
Costs incurred related to legal entity restructuring— 1,061 — 4,995 
Costs associated with workforce optimization efforts (2)
— — — 37,594 
 
Adjusted EBITDA$736,069 $441,764 $1,945,584 $1,139,419 
_______________
(1)Commencing during the quarter ended September 30, 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees.
(2)Primarily represents costs incurred related to workforce optimization initiated and executed in the second quarter of 2020 as part of management’s cost containment efforts in response to the Covid-19 pandemic. The charges are cash expenditures primarily for severance costs incurred related to this effort.


CBRE Press Release
October 28, 2021
Page 17
Adjusted EBITDA for the trailing twelve months ended September 30, 2021 is calculated as follows (in thousands):
Trailing
Twelve Months Ended September 30, 2021
Net income attributable to CBRE Group, Inc.$1,458,347 
Add:
Depreciation and amortization507,552 
Asset impairments13,505 
Interest expense, net of interest income50,874 
Write-off of financing costs on extinguished debt75,592 
Provision for income taxes438,333 
Costs associated with transformation initiatives (1)
99,774 
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period3,081 
Costs incurred related to legal entity restructuring4,367 
Integration and other costs related to acquisitions24,557 
Carried interest incentive compensation expense to align with the timing of associated revenue22,568 
 
Adjusted EBITDA$2,698,550 
_______________
(1)Commencing during the quarter ended September 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees.



CBRE Press Release
October 28, 2021
Page 18
Revenue includes client reimbursed pass-through costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Reimbursement related to subcontracted vendor work generally has no margin and has been excluded from net revenue. Reconciliations are shown below (dollars in thousands):
Three Months Ended September 30,
20212020
Property Management Revenue
Net revenue$422,652 $400,709 
Plus: Pass through costs also recognized as revenue10,006 5,846 
Revenue$432,658 $406,556 
Three Months Ended September 30,
20212020
Facilities Management Revenue
Net revenue (8)
$1,231,101 $1,122,209 
Plus: Pass through costs also recognized as revenue2,248,989 2,162,479 
Revenue$3,480,090 $3,284,688 
Three Months Ended September 30,
20212020
Project Management Revenue
Net revenue (8)
$320,694 $338,286 
Plus: Pass through costs also recognized as revenue366,358 228,304 
Revenue$687,052 $566,590 
Real Estate Investments adjusted revenue is computed as follows (in thousands):
Three Months Ended September 30,
20212020
Real Estate Investments
Revenue$223,832 $169,612 
 
Adjustments:
Less: Cost of revenue40,224 40,384
Add: Gain on disposition of real estate18,530 52,797 
Add: Equity income from unconsolidated subsidiaries156,479 30,914
Less: Net income attributable to non-controlling interests722 553
Add: Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period47 2,289
Net adjustments$134,110 $45,063 
 
Adjusted revenue (9)
$357,942 $214,675 
Below represents a reconciliation of REI business line operating profitability to REI segment operating profit (in thousands):
Three Months Ended September 30,
Real Estate Investments20212020
Investment management operating profit$48,706 $28,955 
Global real estate development operating profit99,701 51,777 
Hana and segment overhead operating loss(2,362)(9,310)
Real estate investments segment operating profit$146,045 $71,422