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 FIRST-QUARTER 2022
•Net Income Up 47% and GAAP EPS Up 48% to $1.16
•Core Adjusted Net Income Up 71% and Core EPS Up 72% to $1.39
Dallas, TX – May 5, 2022 — CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the first quarter ended March 31, 2022.

“The year has started out strong for CBRE with excellent momentum across all three business segments. We continue to execute a strategy to diversify our business – both organically and through investment – broadly across asset types, lines of business, clients and geographies. Our performance for the quarter drives home how effectively this strategy is working,” said Bob Sulentic, CBRE’s president and chief executive officer. “We generate significant cash that is being strategically deployed into growth areas of our business. Notably, Turner & Townsend continues to perform ahead of our expectations, both financially and operationally, and we are enthusiastic about the added dimensions they bring to CBRE, particularly in infrastructure, natural resources and sustainability services. At the same time that we are investing in our business, we are returning cash to shareholders at an elevated clip, with share repurchases totaling $627 million thus far this year.”




CBRE Press Release
May 5, 2022
Page 2
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
% Change
Q1 2022
Q1 2021
USD
LC (1)
Operating Results
Revenue$7,333 $5,939 23.5 %25.5 %
Net revenue (2)
4,376 3,359 30.3 %32.5 %
GAAP net income392 266 47.4 %50.0 %
GAAP EPS$1.16 $0.78 48.4 %51.1 %
Core adjusted net income (3)
469 275 70.9 %75.1 %
Core EBITDA (4)
732 468 56.5 %59.3 %
Core EPS (3)
$1.39 $0.81 72.1 %76.4 %
Cash Flow Results
Cash flow used in operations$(394)$(193)
Less: Capital expenditures42 30 
Free cash flow (5)
$(436)$(223)

First-quarter 2022 operating cash flows include the negative impact of approximately $133 million associated with the timing of certain cash tax payments and refunds.
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions, totals may not add due to rounding):
% Change
Q1 2022
Q1 2021
USDLC
Revenue$2,248 $1,708 31.6 %33.9 %
Net revenue2,231 1,689 32.0 %34.4 %
Segment operating profit (6)
466 333 40.0 %42.3 %
Segment operating profit on revenue margin (7)
20.7 %19.5 %1.2  pts1.2  pts
Segment operating profit on net revenue margin (7)
20.9 %19.7 %1.2  pts1.2  pts



Note: all percent changes cited are vs. first-quarter 2021, except where noted.

Property Sales: Global revenue rose 58% (62% local currency) and was 44% above the pre-pandemic first-quarter peak (Q1 2020).
•United States revenue rose 65% and was 39% above its pre-pandemic first-quarter peak (Q1 2020).


CBRE Press Release
May 5, 2022
Page 3
•Strong growth around the world: Pacific, up 91% (104% local currency); North Asia, up 83% (97% local currency); Continental Europe, up 50% (61% local currency) and the United Kingdom, up 30% (34% local currency).
•CBRE’s share of U.S. investment sales activity increased by 230 basis points versus last year’s first quarter, according to Real Capital Analytics, driven by sizeable gains in retail and office.
•Global office sales continued to rebound sharply and surpassed the prior first-quarter peak (Q1 2019).
•Multifamily and industrial maintained strong momentum while retail recovery continued.

Property Leasing: Global revenue rose 49% (50% local currency) and was 20% above the pre-pandemic first-quarter peak (Q1 2019).
•United States leasing revenue climbed 57% and was 15% above its pre-pandemic first-quarter peak (Q1 2019).
•United Kingdom leasing revenue rose 26% (29% local currency) and was 39% above its pre-pandemic first-quarter peak (Q1 2020).
•Continental Europe, paced by France and Germany, was up 39% (49% local currency) and 19% above its pre-pandemic first-quarter peak (Q1 2019).
•Office revenue rose most significantly compared with the Covid-suppressed level a year ago but remained modestly below the pre-pandemic first-quarter peak (Q1 2019). However, office leasing in EMEA and APAC both surpassed their prior first-quarter peak levels.
•Industrial and retail continued to grow meaningfully.

Commercial mortgage origination: Revenue rose 4% (same local currency).
•Revenue growth was constrained by lower gains on mortgage origination servicing rights from loans sourced for the Government Sponsored Enterprises (GSEs). The GSEs accounted for a greater portion of market-wide lending in last year’s first quarter.
•Aside from the lower gains on GSE servicing rights, mortgage origination revenue rose 22%, reflecting markedly higher activity with debt funds, insurance companies and other private capital sources.

Other Advisory Business Lines:
•Loan servicing revenue rose 8% (same local currency).
◦Portfolio increased 3% from fourth-quarter 2021 to nearly $340 billion.
•Valuation revenue rose 14% (17% local currency), driven by a continued strong increase in the United States and India.
•Property management net revenue rose 7% (10% local currency) with notable growth in Continental Europe.



CBRE Press Release
May 5, 2022
Page 4
Global Workplace Solutions (GWS) Segment
The following table presents highlights of the GWS segment performance (dollars in millions, totals may not add due to rounding):
% Change
Q1 2022
Q1 2021
USDLC
Revenue$4,806 $4,026 19.4 %21.2 %
Net revenue1,866 1,465 27.4 %29.4 %
Segment operating profit203 152 33.2 %36.0 %
Segment operating profit on revenue margin4.2 %3.8 %0.4  pts0.5  pts
Segment operating profit on net revenue margin10.9 %10.4 %0.5  pts0.5  pts

Note: all percent changes cited are vs. first-quarter 2021, except where noted.

Excluding $312.1 million of revenue from Turner & Townsend (60% interest acquired on November 1, 2021), GWS revenue rose 12% (13% local currency). Net revenue increased 9% (10% local currency), excluding $276.9 million from Turner & Townsend.
•Project management net revenue rose 13% (15% local currency), excluding Turner & Townsend contributions.
•Facilities management, which is largely contractual, saw 7% (9% local currency) net revenue growth.
•The new business revenue pipeline is at a record level, with a diversified mix of financial services, defense, automotive, retail and logistics prospects.
•GWS segment operating profit increased by more than $50 million, or 33% (36% local currency), to approximately $203 million. Turner & Townsend contributed nearly $41 million.


CBRE Press Release
May 5, 2022
Page 5
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
% Change
Q1 2022
Q1 2021
USDLC
Revenue$284 $211 34.4%37.6%
Segment operating profit
167 63 164.9%167.2%

Note: all percent changes cited are vs. first-quarter 2021, except where noted.

Real Estate Development: Operating profit (8) surged by nearly $97 million to almost $107 million, driven by the strong pace of co-investment asset monetization.

•The in-process portfolio ended the quarter at $19.8 billion, a record level, and up nearly $1.4 billion from year-end 2021.
•The development pipeline increased $0.8 billion from year-end to $10.1 billion, also a record level.
•Industrial and multifamily assets comprise three quarters of the combined in-process portfolio and pipeline. More than 50% of in-process activity is fee development and build-to-suits.

Investment Management: Revenue rose 14% (17% local currency) to nearly $151 million, driven by higher asset valuations.
•Asset management fees rose 19% (23% local currency).
•As expected, operating profit(8) was down 13% (10% local currency) from the first quarter of 2021, which benefited from a one-time accounting adjustment. Absent the one-time adjustment, operating profit rose 33%.
•AUM increased by $4.9 billion ($6.9 billion local currency) from year-end 2021 to $146.8 billion, a record high.
•Increase driven by strong net capital inflows and higher asset valuations, partly offset by unfavorable foreign currency movement.
•More than 80% of the AUM invested in assets other than office.
Corporate and Other Segment

The Corporate and Other segment produced a loss of $239.7 million.
•There was a net loss of $136.4 million due to fair value adjustments on our strategic non-core non-controlling investment portfolio, primarily reflecting a $117.0 million adjustment on our total investment interests in Altus Power, driven by a decrease in its publicly traded share and warrant prices and alignment-share conversion loss during the quarter.
•Corporate overhead expenses increased by roughly $23.3 million, driven by increases in general compensation and related benefits and incentive compensation.



CBRE Press Release
May 5, 2022
Page 6
Capital Allocation Overview
•Free Cash Flow – During the first quarter of 2022, the company’s free cash outflow was $435.6 million. This reflected cash used in operating activities of $393.5 million, less total capital expenditures of $42.1 million. Net capital expenditures totaled $39.9 million. (9)
•Stock Repurchase Program – The company repurchased approximately 4.2 million shares for $390.8 million ($93.54 average price per share) during the first quarter of 2022. As of May 3, 2022, repurchases for the year totaled approximately 6.9 million shares for $627.4 million ($90.72 average purchase price). There was approximately $1.35 billion of capacity remaining under the company’s authorized stock repurchase program as of May 3, 2022.
•Acquisitions and Investments – During the first quarter of 2022, we completed three in-fill acquisitions for a total of $25.9 million in cash and deferred consideration: a leading project management firm in Spain and Portugal, and retail advisory and regional property agencies in the United Kingdom.
Leverage and Financing Overview
•Leverage – The company’s net leverage ratio (net debt(10) – to trailing twelve-month adjusted EBITDA) was 0.08x as of March 31, 2022, 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
March 31, 2022
Total debt$1,767 
Less: Cash (11)
1,518 
Net debt (10)
$249 
Divided by: Trailing twelve month consolidated adjusted EBITDA (12)
$3,176 
Net leverage ratio0.08x

•Liquidity – As of March 31, 2022, the company had approximately $4.6 billion of total liquidity, consisting of approximately $1.5 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
May 5, 2022
Page 7
Conference Call Details
The company’s first quarter earnings webcast and conference call will be held today, Thursday, May 5, 2022 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 May 5, 2022. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13728580#. 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 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend 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, business outlook, capital deployment and financial performance, including consolidated earnings. 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 or the outbreak of war, 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


CBRE Press Release
May 5, 2022
Page 8
and risk assumption for commercial real estate services; the effect of significant changes 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 certain conflicts and 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, attract 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 data privacy and protection regulations, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies that we do not control.
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, 2021, our latest quarterly report on Form 10-Q, 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,” “core adjusted net income,” “core EPS,” “consolidated adjusted EBITDA,” “business line operating profit,” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin,” “core EBITDA,” 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.


CBRE Press Release
May 5, 2022
Page 9
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)Core adjusted net income and core earnings per diluted share (or core 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 and impact on non-controlling interest 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, and asset impairments. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). Note: Core adjusted EPS has been renamed core EPS for simplicity.
(4)Core EBITDA has been added to highlight operational performance excluding the impact of non-core investments. Core EBITDA removes from consolidated adjusted EBITDA the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments).
(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, inclusive of non-controlling interest, 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 assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. 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)Represents line of business profitability/losses, as adjusted.
(9)For the three months ended March 31, 2022, the company incurred capital expenditures of $42.1 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $2.1 million (reflected in the operating section of the condensed consolidated statement of cash flows).
(10)Net debt is calculated as cash available for company use less total debt (excluding non-recourse debt).
(11)Cash represents cash and cash equivalents (excluding restricted cash) and excludes $139.3 million of cash in consolidated funds and other entities not available for company use at March 31, 2022.
(12)Consolidated adjusted EBITDA represents earnings, inclusive of non-controlling interest, 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 acquisition of Telford Homes plc in 2019 (the Telford acquisition) (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition.



CBRE Press Release
May 5, 2022
Page 10
CBRE GROUP, INC.
OPERATING RESULTS
FOR THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31,
20222021
Revenue:
Net revenue$4,376,029 $3,358,983 
Pass through costs also recognized as revenue2,956,904 2,579,896 
Total revenue7,332,933 5,938,879 
Costs and expenses:
Cost of revenue5,752,194 4,719,546 
Operating, administrative and other1,065,996 828,327 
Depreciation and amortization149,032 122,078 
Asset impairments10,351 — 
Total costs and expenses6,977,573 5,669,951 
Gain on disposition of real estate21,592 156 
Operating income376,952 269,084 
Equity income from unconsolidated subsidiaries42,871 83,594 
Other (loss) income(14,464)2,732 
Interest expense, net of interest income12,826 10,106 
Income before (benefit from) provision for income taxes392,533 345,304 
(Benefit from) provision for income taxes(3,738)76,327 
Net income396,271 268,977 
Less: Net income attributable to non-controlling interests3,974 2,775 
Net income attributable to CBRE Group, Inc.$392,297 $266,202 
Basic income per share:
Net income per share attributable to CBRE Group, Inc.$1.18 $0.79 
Weighted average shares outstanding for basic income per share331,925,104 335,860,494 
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.$1.16 $0.78 
Weighted average shares outstanding for diluted income per share337,140,325 339,580,504 
Consolidated adjusted EBITDA (1)
$595,699 $493,919 
_______________
(1)In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Consolidated adjusted EBITDA and Segment Operating Profit (SOP) to be inclusive of net income attributable to non-controlling interests. Prior period results have been recast to conform to this definition.


CBRE Press Release
May 5, 2022
Page 11
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2022
(in thousands, totals may not add due to rounding)
(Unaudited)
Three Months Ended March 31, 2022
Advisory
Services
Global Workplace
Solutions
Real Estate
Investments
Subtotal
Corporate (1)
OtherTotal Corporate, Other and Eliminations SubtotalConsolidated
Revenue:
Net revenue$2,230,670 $1,866,490 $283,757 $4,380,917 $(4,888)$— $(4,888)$4,376,029 
Pass through costs also recognized as revenue17,778 2,939,126 — 2,956,904 — — — 2,956,904 
Total revenue2,248,448 4,805,616 283,757 7,337,821 (4,888)— (4,888)7,332,933 
Costs and expenses:
Cost of revenue 1,312,291 4,373,967 70,053 5,756,311 (4,114)(3)(4,117)5,752,194 
Operating, administrative and other 480,255 239,386 246,752 966,393 97,363 2,240 99,603 1,065,996 
Depreciation and amortization 74,887 61,969 3,856 140,712 8,320 — 8,320 149,032 
Asset impairments10,351 — — 10,351 — — — 10,351 
Total costs and expenses1,877,784 4,675,322 320,661 6,873,767 101,569 2,237 103,806 6,977,573 
Gain on disposition of real estate— — 21,592 21,592 — — — 21,592 
Operating income (loss)370,664 130,294 (15,312)485,646 (106,457)(2,237)(108,694)376,952 
Equity income (loss) from unconsolidated subsidiaries9,756 863 157,440 168,059 — (125,188)(125,188)42,871 
Other (loss) income(4)1,489 (92)1,393 (6,918)(8,939)(15,857)(14,464)
Add-back: Depreciation and amortization74,887 61,969 3,856 140,712 8,320 — 8,320 149,032 
Add-back: Asset impairments10,351 — — 10,351 — — — 10,351 
Adjustments:
Integration and other costs related to acquisitions— 8,121 — 8,121 — — — 8,121 
Carried interest incentive compensation expense to align with the timing of associated revenue— — 22,856 22,856 — — — 22,856 
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period— — (1,696)(1,696)— — — (1,696)
Costs incurred related to legal entity restructuring— — — — 1,676 — 1,676 1,676 
Segment operating profit (loss)$465,654 $202,736 $167,052 $835,442 $(103,379)$(136,364)$(239,743)
Segment operating profit attributable to non-controlling interests$970 $16,854 $674 $18,498 $— $— $— 
Segment operating profit (loss) attributable to CBRE Group, Inc.$464,684 $185,882 $166,378 $816,944 $(103,379)$(136,364)$(239,743)
Consolidated adjusted EBITDA$595,699 
_______________
(1)Includes elimination of inter-segment revenue.



CBRE Press Release
May 5, 2022
Page 12
CBRE GROUP, INC.
SEGMENT RESULTS—(CONTINUED)
FOR THE THREE MONTHS ENDED MARCH 31, 2021
(in thousands, totals may not add due to rounding)
(Unaudited)
Three Months Ended March 31, 2021
Advisory
Services
Global Workplace
Solutions
Real Estate
Investments
Subtotal
Corporate (1)
OtherTotal Corporate, Other and Eliminations SubtotalConsolidated
Revenue:
Net revenue$1,689,393 $1,464,606 $211,129 $3,365,128 $(6,145)$— $(6,145)$3,358,983 
Pass through costs also recognized as revenue18,619 2,561,277 — 2,579,896 — — — 2,579,896 
Total revenue1,708,012 4,025,883 211,129 5,945,024 (6,145)— (6,145)5,938,879 
Costs and expenses:
Cost of revenue 987,577 3,697,773 40,990 4,726,340 (6,794)— (6,794)4,719,546 
Operating, administrative and other 388,607 176,011 180,980 745,598 82,729 — 82,729 828,327 
Depreciation and amortization 69,754 34,459 10,430 114,643 7,435 — 7,435 122,078 
Total costs and expenses1,445,938 3,908,243 232,400 5,586,581 83,370 — 83,370 5,669,951 
Gain on disposition of real estate— — 156 156 — — — 156 
Operating income (loss)262,074 117,640 (21,115)358,599 (89,515)— (89,515)269,084 
Equity income (loss) from unconsolidated subsidiaries750 (182)56,894 57,462 — 26,132 26,132 83,594 
Other income1 266 427 694 2,038 — 2,038 2,732 
Add-back: Depreciation and amortization69,754 34,459 10,430 114,643 7,435 — 7,435 122,078 
Adjustments:
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period— — 1,099 1,099 — — — 1,099 
Carried interest incentive compensation expense to align with the timing of associated revenue— — 15,332 15,332 — — — 15,332 
Segment operating profit (loss) (2)
$332,579 $152,183 $63,067 $547,829 $(80,042)$26,132 $(53,910)
Segment operating profit attributable to non-controlling interests (2)
$279 $6 $2,736 $3,021 $— $— $— 
Segment operating profit (loss) attributable to CBRE Group, Inc.$332,300 $152,177 $60,331 $544,808 $(80,042)$26,132 $(53,910)
Consolidated adjusted EBITDA (2)
$493,919 
_______________
(1)Includes elimination of inter-segment revenue.
(2)In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of adjusted EBITDA and SOP to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition.



CBRE Press Release
May 5, 2022
Page 13
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 31, 2022December 31, 2021
Assets:
Cash and cash equivalents (1)
$1,657,336 $2,430,951 
Restricted cash135,293 108,830 
Receivables, net5,073,224 5,150,473 
Warehouse receivables (2)
1,194,800 1,303,717 
Contract assets486,388 474,375 
Income taxes receivable81,665 77,254 
Property and equipment, net792,735 816,092 
Operating lease assets1,030,391 1,046,377 
Goodwill and other intangibles, net7,315,630 7,404,602 
Investments in unconsolidated subsidiaries1,124,339 1,196,088 
Other assets, net2,251,351 2,064,732 
Total assets$21,143,152 $22,073,491 
Liabilities:
Current liabilities, excluding debt and operating lease liabilities$6,156,163 $6,876,327 
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2)
1,172,125 1,277,451 
Revolving credit facility210,000 — 
Senior term loans, net442,093 454,539 
4.875% senior notes, net595,705 595,463 
2.500% senior notes, net488,414 488,121 
Other debt30,826 32,668 
Operating lease liabilities1,325,542 1,348,985 
Other long-term liabilities1,439,459 1,640,820 
Total liabilities11,860,327 12,714,374 
Equity:
CBRE Group, Inc. stockholders' equity8,469,971 8,528,193 
Non-controlling interests812,854 830,924 
Total equity9,282,825 9,359,117 
Total liabilities and equity$21,143,152 $22,073,491 
 
_______________
(1)Includes $139.3 million and $125.2 million of cash in consolidated funds and other entities not available for company use as of March 31, 2022 and December 31, 2021, respectively.
(2)Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.


CBRE Press Release
May 5, 2022
Page 14
CBRE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended March 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$396,271 $268,977 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization149,032 122,078 
Amortization of financing costs1,663 1,609 
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets(28,422)(72,045)
Asset impairments10,351 — 
Net realized and unrealized losses (gains), primarily from investments16,690 (2,732)
Provision for doubtful accounts3,303 731 
Net compensation expense for equity awards36,863 35,786 
Equity income from unconsolidated subsidiaries(42,871)(83,594)
Distribution of earnings from unconsolidated subsidiaries146,743 32,986 
Proceeds from sale of mortgage loans3,336,084 4,643,685 
Origination of mortgage loans(3,221,312)(3,909,261)
Decrease in warehouse lines of credit(105,326)(708,491)
Tenant concessions received2,114 1,578 
Purchase of equity securities(8,902)(2,398)
Proceeds from sale of equity securities20,750 3,017 
Increase in real estate under development(41,358)(15,901)
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) (1)
(156,061)161,221 
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)(108,355)(245,522)
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing(725,216)(469,213)
Decrease in net income taxes receivable/payable17,722 41,660 
Other operating activities, net(93,270)2,381 
Net cash used in operating activities(393,507)(193,448)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(42,056)(29,597)
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired(16,792)(2,726)
Contributions to unconsolidated subsidiaries(44,387)(168,392)
Distributions from unconsolidated subsidiaries12,101 6,795 
Other investing activities, net(4,487)16 
Net cash used in investing activities(95,621)(193,904)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility210,000 — 
Proceeds from notes payable on real estate19,368 23,737 
Repayment of notes payable on real estate(13,954)— 
Proceeds from issuance of 2.500% senior notes— 492,255 
Repurchase of common stock(367,863)(61,108)
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date)(13,556)(512)
Units repurchased for payment of taxes on equity awards(31,395)(34,883)
Non-controlling interest contributions210 72 
Non-controlling interest distributions(213)(2,652)
Other financing activities, net(11,606)(14,943)
Net cash (used in) provided by financing activities(209,009)401,966 
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash(49,015)(52,154)
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH(747,152)(37,540)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD2,539,781 2,039,247 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD$1,792,629 $2,001,707 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$12,826 $15,080 
Income tax payments, net$88,649 $38,508 
_______________
(1)First-quarter 2022 operating cash flows include the negative impact of approximately $133 million associated with the timing of certain cash tax payments and refunds.


CBRE Press Release
May 5, 2022
Page 15
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i)Net revenue
(ii)Consolidated adjusted EBITDA
(iii)Business line operating profit/loss
(iv)Segment operating profit on revenue and net revenue margins
(v)Free cash flow
(vi)Net debt
(vii)Core adjusted net income attributable to CBRE Group, Inc. stockholders (which we also refer to as “core adjusted net income”)
(viii)Core EPS
(ix)Core EBITDA
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. Fee revenue excluded additional reimbursed costs, primarily related to employees dedicated to clients, some of which included minimal margin.
With respect to consolidated 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 consolidated 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 may vary for different companies for reasons unrelated to overall operating performance. In the case of consolidated adjusted EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The consolidated 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


CBRE Press Release
May 5, 2022
Page 16
company also uses consolidated adjusted EBITDA, segment operating profit and core 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.
With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments (Altus Power Inc. and VC investments) that are not directly related to our business segments. These can be volatile and are often non-cash in nature.




CBRE Press Release
May 5, 2022
Page 17
Core adjusted net income attributable to CBRE Group, Inc. stockholders (or core adjusted net income), and core EPS, are calculated as follows (in thousands, except share and per share data):
Three Months Ended March 31,
20222021
Net income attributable to CBRE Group, Inc. $392,297 $266,202 
Plus / minus:
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions41,048 18,430 
Integration and other costs related to acquisitions8,121 — 
Carried interest incentive compensation expense to align with the timing of associated revenue22,856 15,332 
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period(1,696)1,099 
Costs incurred related to legal entity restructuring1,676 — 
Asset impairments (1)
10,351 — 
Net fair value adjustments on strategic non-core investments136,364 (26,132)
Impact of adjustments on non-controlling interest(9,063)— 
Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core above(132,718)(339)
Core net income attributable to CBRE Group, Inc., as adjusted$469,236 $274,592 
Core diluted income per share attributable to CBRE Group, Inc., as adjusted$1.39 $0.81 
Weighted average shares outstanding for diluted income per share337,140,325339,580,504
Consolidated adjusted EBITDA is calculated as follows (in thousands, totals may not add due to rounding):
Three Months Ended March 31,
20222021
Net income attributable to CBRE Group, Inc.$392,297 $266,202 
Net income attributable to non-controlling interests (2)
3,974 2,775 
Net income396,271 268,977 
Add:
Depreciation and amortization149,032 122,078 
Asset impairments (1)
10,351 — 
Interest expense, net of interest income12,826 10,106 
(Benefit from) provision for income taxes(3,738)76,327 
Integration and other costs related to acquisitions8,121 — 
Carried interest incentive compensation expense to align with the timing of associated revenue22,856 15,332 
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period(1,696)1,099 
Costs incurred related to legal entity restructuring1,676 — 
Consolidated adjusted EBITDA$595,699 $493,919 
Adjusted EBITDA attributable to non-controlling interests (2)
$18,500 $2,775 
Adjusted EBITDA attributable to CBRE Group, Inc. (2)
$577,199 $491,144 
_______________
(1)Represents impairment charges recorded due to the company exiting its Advisory services business in Russia.
(2)In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Adjusted EBITDA and to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition.





CBRE Press Release
May 5, 2022
Page 18

Core EBITDA is calculated as follows (in thousands):
Three Months Ended March 31,
20222021
Consolidated adjusted EBITDA$595,699 $493,919 
Less: net fair value adjustments on strategic non-core investments$(136,364)$26,132 
Core EBITDA$732,063 $467,787 
Consolidated adjusted EBITDA for the trailing twelve months ended March 31, 2022 is calculated as follows (in thousands):
Trailing
Twelve Months Ended March 31, 2022
Net income attributable to CBRE Group, Inc.$1,962,669 
Net income attributable to non-controlling interests6,540 
Net income1,969,209 
Add:
Depreciation and amortization552,825 
Asset impairments10,351 
Interest expense, net of interest income53,072 
Provision for income taxes487,441 
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period(8,520)
Costs incurred related to legal entity restructuring1,676 
Integration and other costs related to acquisitions52,673 
Carried interest incentive compensation expense to align with the timing of associated revenue57,465 
 
Consolidated adjusted EBITDA$3,176,192 


CBRE Press Release
May 5, 2022
Page 19
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 March 31,
20222021
Property Management Revenue
Revenue$455,872 $427,188 
Less: Pass through costs also recognized as revenue17,778 18,619 
Net revenue$438,094 $408,569 
Three Months Ended March 31,
20222021
Facilities Management Revenue
Revenue$3,800,688 $3,479,500 
Less: Pass through costs also recognized as revenue2,558,159 2,323,011 
Net revenue$1,242,529 $1,156,489 
Three Months Ended March 31, 2022
Project Management
(excluding Turner & Townsend)		Turner & TownsendTotal Project Management
Project Management Revenue
Revenue$692,801 $312,128 $1,004,929 
Less: Pass through costs also recognized as revenue(345,751)(35,217)(380,968)
Net revenue$347,050 $276,911 $623,961 
Three Months Ended March 31, 2021
Project Management
(excluding Turner & Townsend)		Turner & TownsendTotal Project Management
Project Management Revenue
Revenue$546,382 $— $546,382 
Less: Pass through costs also recognized as revenue(238,265)— (238,265)
Net revenue$308,117 $— $308,117 
Below represents a reconciliation of REI business line operating profitability to REI segment operating profit (in thousands):
Three Months Ended March 31,
Real Estate Investments20222021
Investment management operating profit$61,293 $70,161 
Global real estate development operating profit106,705 9,938 
Hana and segment overhead operating loss(946)(17,032)
Real estate investments segment operating profit$167,052 $63,067