CBRE
Real Estate
Investments
Overview
September 2022
REI INVESTOR OVERVIEW
Forward-Looking
Statements
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.
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REI INVESTOR OVERVIEW
Real Estate Investment Businesses Differentiate CBRE
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
DEVELOPMENT
Provide access to best-inclass development investments with TCC's average net IRR's >30% (2)
$19.3 Billion
In-Process Portfolio (3)
Financial Overview
Business Line Operating | 2018 (1) | 2019 | 2020 | 2021 | '18-21 CAGR |
Profit | % | ||||
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% |
REI, $520 | |||||||||||
INVESTMENT MANAGEMENT | GWS, $708 | ||||||||||
One of world's largest real assets | |||||||||||
managers with operations on three | |||||||||||
continents with more than 1,000 employees | Advisory, $2,063 | ||||||||||
$146.9 Billion | |||||||||||
Assets under Management (3) | |||||||||||
2021 CBRE SOP | |||||||||||
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Definitions, endnotes and reconciliations are provided at the end of the presentation
REI INVESTOR OVERVIEW
U.S. Logistics Program - Synergies with REI and CBRE
Developer, Investor, Operator Model | Portfolio as of June 30, 2022 | Investing in Secularly Favored | |
Industrial Market | |||
Developer: | E-Commerce: | ||
Exclusive first access to Trammell | E-commerce sales exploded at the | ||
Crow's logistics pipeline | onset of Covid-19, rising to 21.6% of | ||
Investor: | $5.8B | total retail sales in Q2 2020. They | |
remained around 20% in late 2021, | |||
World-classinvestor-operator | up from ~16% pre-Covid | ||
platform | Supply Chain: | ||
Increased demand and constrained | |||
Operator: | supply drove users of warehouse / | ||
logistics space to increase their | |||
CBRE Property Management | |||
Portfolio Assets(4) | available inventory of space | ||
capabilities and market intelligence | Secured Pipeline Assets | ||
provided by the world's premier real | |||
estate services company | 50 Portfolio Assets | Environmental Goals: | |
ESG targets from both investors | |||
and governments are driving users | |||
of industrial real estate to reduce | |||
15 Secured Pipeline Assets | their carbon emissions - with CBRE | ||
uniquely capable of helping users | |||
of real estate meet their goals | |||
through partnership with Altus | |||
Power |
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Definitions, endnotes and reconciliations are provided at the end of the presentation
REI INVESTOR OVERVIEW
CBRE Co-Investments Driving Returns and Alignment
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
Equity Co-Investment Balances
2020 | 2021 | 2Q'22 | |
$ 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 |
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Definitions, endnotes and reconciliations are provided at the end of the presentation
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CBRE Group Inc. published this content on 20 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2022 19:09:02 UTC.