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CBRE Group — CBRE REI September 2022 Investor Overview (company IR deck)
CBRE Group (CBRE) · 0 slides · Filed Oct 22, 2026
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Slide 1 — CBRE
CBRE Real Estate Investments Overview September 2022
Slide 2 — Forward-Looking
2 This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding CBRE's future growth prospects, investor sentiment, investment activity, the performance of existing investments, financial performance, and any other statements regarding matters that are not historical fact. These statements are estimates only and actual results may ultimately differ from them. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that you may hear today. Please refer to our second quarter earnings release, furnished on Form 8-K, our most recent annual and quarterly reports filed on Form 10-K and Form 10-Q, respectively, and in particular any discussion of risk factors or forward- looking statements therein, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements that you may hear today. We may make certain statements during the course of this presentation, which include references to “non-GAAP financial measures,” as defined by SEC regulations. Where required by these regulations, we have provided reconciliations of these measures to what we believe are the most directly comparable GAAP measures, which are included in the appendix. REI INVESTOR OVERVIEW Forward-Looking Statements
Slide 3 — Real Estate Investment Businesses Differentiate CBRE
3 REI INVESTOR OVERVIEW Real Estate Investment Businesses Differentiate CBRE One of world’s largest real assets managers with operations on three continents with more than 1,000 employees $146.9 Billion Assets under Management (3) Provide access to best-in class development investments with TCC’s average net IRR’s >30% (2) $19.3 Billion In-Process Portfolio (3) Advisory, $2,063 GWS, $708 REI, $520 2021 CBRE SOP Business Line Operating Profit 2018 (1) 2019 2020 2021 ’18-21 CAGR % Development 195 120 153 351 22% Investment Mgmt. 91 120 142 206 31% Other (3) (31) (38) (37) n/a Segment Operating Profit $284 $210 $258 $520 22% DEVELOPMENT INVESTMENT MANAGEMENT Financial Overview REI within CBRE Leverages CBRE’s global brand Benefits from CBRE’s global infrastructure, leadership and platform Investments supported by CBRE’s robust balance sheet – Aligning interests with REI investors and enhancing returns for CBRE investors Provides CBRE with differentiated capabilities relative to CRE Services peers Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 4 — U.S. Logistics Program – Synergies with REI and CBRE
4 Investing in Secularly Favored Industrial Market Operator: CBRE Property Management capabilities and market intelligence provided by the world’s premier real estate services company Investor: World-class investor-operator platform REI INVESTOR OVERVIEW U.S. Logistics Program – Synergies with REI and CBRE Developer, Investor, Operator Model Developer: Exclusive first access to Trammell Crow’s logistics pipeline Secured Pipeline Assets Portfolio Assets $5.8B Portfolio as of June 30, 2022 50 Portfolio Assets 15 Secured Pipeline Assets E-Commerce: E-commerce sales exploded at the onset of Covid-19, rising to 21.6% of total retail sales in Q2 2020. They remained around 20% in late 2021, up from ~16% pre-Covid Supply Chain: Increased demand and constrained supply drove users of warehouse / logistics space to increase their available inventory of space Environmental Goals: ESG targets from both investors and governments are driving users of industrial real estate to reduce their carbon emissions – with CBRE uniquely capable of helping users of real estate meet their goals through partnership with Altus Power Definitions, endnotes and reconciliations are provided at the end of the presentation (4)
Slide 5 — CBRE Co-Investments Driving Returns and Alignment
5 REI INVESTOR OVERVIEW CBRE Co-Investments Driving Returns and Alignment 2020 2021 2Q'22 Equity Co-Investment Balances $ Millions ’20 ’21 2Q’22 ■Investment Management 143 231 268 ■Trammell Crow 202 339 359 ■Telford 316 320 351 CBRE Co-Investment Balance $661 $890 $978 Align CBRE with Key Partners and Investors: CBRE can stand alongside key investors in projects by investing in deals from our Real Estate Investments businesses Historical Returns Indicate Accretive Use of Capital: Historical returns generated from co-investments represents an attractive use of excess capital that allows CBRE to grow scale, achieve strong returns, and align with investors Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 6 — CBRE Investment Management Snapshot
6 REI INVESTOR OVERVIEW CBRE Investment Management Snapshot 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 By Product Type (3) By Property Type (3) Gross AUM ($B) ■ Direct Private RE 85.2 ■ Indirect Private RE 40.7 ■ Real Estate Credit 2.6 ■ Listed Real Assets 10.8 ■ Private Infrastructure 7.6 Total $146.9 B Gross AUM ($B) ■ Office 28.0 ■ Retail 16.2 ■ Industrial 43.3 ■ Residential 24.2 ■ Other (5) 35.2 Total $146.9 B Key Operating Metrics – AUM $, billions $556M in 2021 Revenue with 91% coming from more highly recurring revenue $206M in 2021 business line operating profit, 62% more recurring in nature Raised $18.5 billion in new capital in 2021 Deployed $16.0 billion in capital in 2021 ING Acquisition Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 7 — Investment Management – Capital Raising
7 REI INVESTOR OVERVIEW Investment Management – Capital Raising 2017 2018 2019 2020 2021 TTM 2Q'22 Capital Raised - $, billions $ Billions ’17 ’18 ’19 ’20 ’21 TTM Capital Raise 11.7 12.3 13.9 12.6 18.5 19.0 Total AUM 103.2 105.5 112.9 122.7 141.9 146.9 Overall Investor Sentiment Denominator Effect and Cautious Optimism: Investors on pause due to broader macro/market uncertainty; Cautious optimism for a bounce Sovereigns and Insurance Companies Active: Largest institutional investors still working diligently to reach their target real assets allocations Lower Redemptions and Strong Fund Balance Sheets: CBRE experiencing lower redemptions relative to the market as a whole Strong Support for Certain Asset Types and Funds: Investors continue to show support for structural growth sectors like logistics and residential Dislocation, Distressed and Takeover Opportunities: Agile and well capitalized investors are taking advantage of near-term distress / dislocation in markets Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 8 — Investment Management AUM Growth Driven by Strong Net Inflows
8 REI INVESTOR OVERVIEW Investment Management AUM Growth Driven by Strong Net Inflows Assets Under Management Waterfall ($, billions) Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 9 — CBRE Development Snapshot
9 REI INVESTOR OVERVIEW CBRE Development Snapshot 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 In-Process by Property Type (3) In-Process % of Total ■Industrial 8.1 42% ■Office 3.0 15% ■Residential 5.2 27% ■Life Science 1.6 8% ■Other 1.4 8% Total $19.3 B 100% In-Process and Pipeline Portfolio $351M in 2021 business line operating profit – 11% of CBRE total Trammell Crow acquired in 2006, Telford Homes acquired in 2019 TCC has generated average net IRR to clients in excess of 30% (2) TCC has recently expanded operations into Continental Europe and the U.K, taking our expertise to a global investor base ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 Pipeline ($B) 3.6 4.2 3.8 3.7 5.8 6.1 9.3 11.5 (3) In-Process ($B) 6.7 6.6 6.8 9.0 13.0 14.9 18.5 19.3 (3) Business Line Operating Profit ($M) 90 114 120 189 120 153 351 544 (6) % of Avg. In-Process (7) 1.5% 1.8% 1.8% 2.2% 1.0% 1.0% 1.9% 2.8% Pipeline In-Process Telford Acquisition Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 10 — Development Process Supporting Continued Growth
10 REI INVESTOR OVERVIEW Development Process Supporting Continued Growth 2017 2018 2019 2020 2021 TTM 2Q'22 Construction Starts Developer, Investor, Operator Model Site, Financial, Market Analysis: TCC professionals conduct analysis and identify favored assets Place Land under Contract: Experienced professionals move quickly to secure land post- diligence Identify Equity Partner: Contact world-class roster of equity partners for project funding Identify Lending Partner: Access debt capital markets in friendly terms that allow for longer hold periods in tumultuous markets Construction Management: Utilize CBRE and own expertise to manage construction and keep costs in check, even amidst inflation Occupancy Execution: Leverage market-leader CBRE and internal teams to lease up properties Monetization: Exit properties creating substantial value for partners and CBRE as a whole REI Investment Committee: CBRE investment team reviews deal before project moves forward Realizations in 2021 are the result of work that began in 2017 – 2019 CBRE shifting focus towards secularly favored asset types like Residential and Industrial $ Billions ’17 ’18 ’19 ’20 ’21 TTM ■Industrial (U.S.) 1.1 0.8 0.6 2.5 2.6 2.9 ■Office 0.4 1.0 1.2 0.7 0.5 0.3 ■Life-Science 0.1 0.1 0.1 0.4 - - ■Residential (TCC) 0.2 0.7 1.1 0.2 0.8 1.1 ■Residential (Telford) - - - - 0.9 0.8 ■Other 0.3 0.6 0.2 - - - Total 2.1 3.2 3.2 3.9 4.9 5.1 Definitions, endnotes and reconciliations are provided at the end of the presentation
Slide 11
Slide 12 — End Notes
12 REI INVESTOR OVERVIEW End Notes 1. Management refined their estimate for 2018 and believe it is a materially accurate representation of the segment’s operating performance for this year 2. Trammell Crow’s Average IRR in excess of 30% represents deals completed from 2012 through 2021 3. As of June 30, 2022 4. Represents Gross AUM 5. ‘Other’ includes hotel, land, mixed-use, securities, infrastructure, private, equity, debt and others 6. Development Business Line Operating Profit represents TTM as of June 30, 2022 7. % of Average In-Process portfolio is calculated based on TTM average for In-Process Portfolio and Development business line operating profit
Slide 13 — Reconciliation of Real Estate Investments Business Line Operating Profit
13 REI INVESTOR OVERVIEW Twelve Months Ended, June 30, December 31, 2022 2021 2020 2019 2018 2017 2016 2015 Investment Management Operating Profit $210 $206 $142 $120 $91 $94 $83 $134 Development Operating Profit 544 351 153 120 195 120 114 90 Other * (9) (37) (38) (31) (3) * * * REI Segment Operating Profit $744 $520 $258 $210 $284 $214 $197 $224 Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit $ in millions, totals may not sum due to rounding * This information is not readily available since the company has gone through segment reorganization in the recent years. REI SOP from 2014 – 2018 is our best estimate and we believe is a materially accurate representation of the segment’s operating performance for those years