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CBRE Group, Inc. Reports Financial Results for Third-Quarter 2019

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Combined Advisory Services and Global Workplace Solutions Segments Record Double-Digit Growth

CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the third quarter ended September 30, 2019.

Bob Sulentic, CBRE's president and chief executive officer, said, "We are pleased to report another solid quarter with continued strong growth in our real estate services business segments – Global Workplace Solutions and Advisory Services. Our global occupier outsourcing, U.S. property sales and commercial mortgage origination business lines were especially strong this quarter. Growth on the bottom line was restrained by a light quarter of development asset sales – which can fluctuate significantly quarter-to-quarter – compared with record earnings from such sales in last year's third quarter.

As we enter the final months of 2019, we are looking ahead to 2020 with cautious optimism. Commercial real estate and macro-economic fundamentals remain favorable, particularly in the Americas, our largest region. Our diversified business and geographic mix positions CBRE to continue thriving, despite ongoing trade and geopolitical uncertainties."

Despite a delay in the expected timing of certain development deals, CBRE maintained its outlook for full-year 2019 adjusted earnings per share of $3.70 to $3.80. The mid-point of this range reflects a 14% increase over full-year 2018, which would extend to a decade the company's track record of delivering double-digit adjusted earnings growth.

Third-Quarter 2019 Results

The following table presents highlights of CBRE performance (dollars in millions, except per share data):

 

 

 

 

 

 

 

 

 

% Change from Q3 2018

 

Q3 2019

 

 

Q3 2018

 

 

USD

 

 

LC (1)

Revenue

$

5,925

 

 

$

5,261

 

 

12.6%

 

 

14.5%

Fee revenue (2)

 

2,910

 

 

 

2,621

 

 

11.0%

 

 

12.8%

Adjusted EBITDA (3)

 

455

 

 

 

463

 

 

(1.9%)

 

 

(1.0%)

GAAP net income

 

257

 

 

 

290

 

 

(11.7%)

 

 

(10.7%)

GAAP EPS

$

0.75

 

 

$

0.85

 

 

(11.0%)

 

 

(10.0%)

Adjusted net income (4)

 

270

 

 

 

270

 

 

0.0%

 

 

1.1%

Adjusted EPS (4)

$

0.79

 

 

$

0.79

 

 

0.7%

 

 

1.9%

Advisory Services Segment Review

The following table presents highlights of the Advisory Services segment performance (dollars in millions):

 

 

 

 

 

 

 

 

 

% Change from Q3 2018

 

Q3 2019

 

 

Q3 2018

 

 

USD

 

 

LC

Revenue

$

2,241

 

 

$

2,059

 

 

8.8%

 

 

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