CBRE GROUP, INC. Q2 FY2025 earnings call

• Strong momentum continued in Q2 with resilient and transactional businesses achieving double-digit revenue growth; resilient up 17% vs transactional 15%. • Focus on new segments BOE and Project Management; BOE grew mid-teens with operating leverage. • Project Management integration with Turner & Townsend progressing well. • Advisory segment excellent with strong leasing and capital markets activity.

Advisory Services: Revenue rose 14% with 31% SOP growth and 250 basis points margin expansion. Global leasing revenue was highest in Q2 history; U.S. office leasing up 15%, industrial up 15%. Capital markets: global property sales up 19%, U.S. up 25%, mortgage origination fees up >40%. BOE Segment: 18% top line growth and 21% SOP growth. Enterprise businesses strong in tech, healthcare, industrial, and hyperscale data centers; local business had double-digit growth. Project Management: 13% revenue growth and 18% SOP growth. Turner & Townsend integration progressing, legacy CBRE business saw low double-digit growth. Real Estate Investments: Segment operating profit in line with expectations. Investment Management: Recurring revenue growth, AUM ended at $155B. Development: Operating profit in line with expectations, estimated profits in pipeline ~$900M.

• Raised core EPS expectations to $6.10 to $6.20, midpoint represents >20% growth. • Expect to set new earnings peak this year. • Leasing expected mid- to high single-digit growth in back half. • BOE operating leverage work ongoing but not expected to materially impact 2025.

• Macro environment uncertainty. • Interest rate changes impacting capital markets activity. • Challenges in M&A integration. • Market volatility affecting business performance.

Q: Anthony Paolone asked about leasing comps in office and potential synergies in BOE.

A: Bob Sulentic said comps get tougher but office leasing will continue strong; synergies in BOE are being worked on but not quantified yet.

Q: Julien Blouin inquired about Turner & Townsend integration benefits.

A: Bob Sulentic said no unexpected challenges, moving professionals for greater efficiencies and seeing cost and revenue synergies.

Q: Steve Sakwa asked about capital deployment and share buyback.

A: Emma Giamartino said focus on M&A with buybacks as needed, no specific guidance on buybacks in current guide.

Q: Ronald Kamdem asked about BOE benefits runway.

A: Emma Giamartino said margin improvement in BOE from 2024 work, additional leverage expected in 2026.

Q: Alexander Kramm asked about industrial leasing.

A: Robert Sulentic said industrial leasing expected double-digit growth for the year despite some uncertainty.

Q: Jade Rahmani asked about infrastructure focus.

A: Robert Sulentic said focused on infrastructure but no target set yet.

Q: Seth Bergey asked about client behavior in capital markets.

A: Robert Sulentic said clients are powering through with positive expectations, though some choppiness in Europe.

Q: Peter Abramowitz asked about New York City exposure.

A: Robert Sulentic said New York City earnings are ~5-6% of overall company earnings.