CBRE Group (CBRE) Q4 2011 earnings summary

Executive summary

• 2011 revenue rose 15.4% to $5.91B as sales, leasing and outsourcing activity improved; reported net income attributable to shareholders was $239.2M.

• Fee-for-services activities represented 39% of revenue; the 2011 ING real estate investment management acquisitions lifted assets under management to $94.1B.

Financial highlights

• Operating income was $462.9M versus $446.4M in 2010; revenue increased $790.1M, including $84.6M from the REIM acquisitions and a $143.8M positive currency translation impact.

• Consolidated net income was $290.3M, including $49.9M from discontinued operations; net income attributable to shareholders was $239.2M versus $200.3M.

• Operating cash flow was $361.2M, down from $616.6M, mainly reflecting higher bonus, commission and tax payments; cash and equivalents ended the year at $1.09B.

Outlook and guidance

• 2012 revenue mix is expected to reflect a full year of contributions from the REIM acquisitions, completed in stages in H2 2011.

• Expected 2012 net capital expenditures are up to $170M, including acquisition-related requirements; $59.4M of Global Investment Management co-investments was expected to be funded in 2012.

• Total pretax REIM acquisition transaction, retention and integration costs were expected to reach ~$150M; significant integration expenses were anticipated in 2012 and beyond.