CBRE Group to Issue $1.1 Billion in Senior Notes, Plans Redemption of 2026 Debt

DALLAS, TEXAS – CBRE Group, Inc. announced that it has entered into an underwriting agreement to issue $1.1 billion in senior notes, composed of:

$600 million of 4.800% Senior Notes due 2030, and

$500 million of 5.500% Senior Notes due 2035.

The offering, scheduled to close on May 12, 2025, is led by Wells Fargo Securities, BofA Securities, J.P. Morgan, and NatWest Markets. The notes were offered under CBRE’s existing shelf registration statement filed with the SEC.

Proceeds from the offering will be used to:

Redeem CBRE Services’ 4.875% senior notes due 2026,

Repay borrowings under its commercial paper program, and

Support general corporate purposes.

In a related move, CBRE Services delivered a notice of intent to redeem all outstanding 2026 Notes, conditional upon the successful closing of the new bond offering. The redemption is expected to occur on May 28, 2025.

CBRE Group Q1 2025 Financial Summary

- Revenue: $8.91 billion (up 12.3% YoY)
- Net revenue (excludes pass-through): $5.11 billion (up 15%)
- GAAP net income: $163 million (up 29%)
- GAAP EPS: $0.54 (up 32%)
- Core EPS: $0.86 (up 10%)
- Core EBITDA: $540 million (up 27%)
- Free cash flow (Q1): $(610) million; trailing 12-month: $1.48 billion
- Net cash flow from operations (trailing 12-month): $1.65 billion
- Net leverage ratio: 1.45x (well below 4.25x covenant)

**Segment Performance**

*Advisory Services*
- Revenue: $1.69 billion (up 13%)
- Segment operating profit: $301 million (up 30%)
- Leasing revenue rose 18% globally; U.S. office leasing +38%
- Mortgage origination revenue rose 52%

*Building Operations & Experience (BOE)*
- Revenue: $5.36 billion (up 14%)
- Net revenue: $2.43 billion (up 20%)
- Segment profit: $217 million (up 35%)
- Property management net revenue +36% (boosted by Industrious acquisition)

*Project Management*
- Revenue: $1.63 billion (up 7%)
- Net revenue: $774 million
- Segment profit: $113 million (up 12%)
- Strength from infrastructure and real estate mandates

*Real Estate Investments (REI)*
- Revenue: $233 million (up 2%)
- Segment profit: $25 million (down 27%)
- Investment Management profit: $52 million
- Real estate development loss: $25 million
- Assets Under Management (AUM): $149.1 billion

**Capital Allocation and Liquidity**
- Share repurchases: $585 million (4.6 million shares at avg. $127.98)
- Remaining buyback authorization: $5.2 billion
- Total liquidity: $3.5 billion
- Recent acquisition: full ownership of Industrious

**Cash Flow Summary (Q1 2025)**
- Operating cash flow: $(546) million
- Investing cash flow: $(462) million
- Financing cash flow: $1.26 billion
- Ending cash and equivalents: $1.51 billion

CBRE Q1 2025 Results Summary

CBRE Group, Inc. (NYSE:CBRE) reported strong financial performance for the first quarter of 2025, driven by growth across its diversified business segments.

Highlights:
- GAAP EPS rose 32% year-over-year to $0.54
- Core EPS increased 10% to $0.86
- Revenue grew 12% to $8.9 billion; net revenue up 15% to $5.1 billion
- Resilient Businesses net revenue rose 14% (17% in local currency) to $3.7 billion
- Transactional Businesses revenue up 16% (18% in local currency) to $1.4 billion
- GAAP net income climbed 29% to $163 million
- Core EBITDA rose 27% to $540 million
- Nearly $600 million of shares repurchased since the end of 2024
- Trailing 12-month net cash flow from operations exceeded $1.6 billion
- Trailing 12-month free cash flow nearly $1.5 billion

CEO Bob Sulentic noted that business performance exceeded expectations in Q1, but recent tariff-driven uncertainty has made the outlook less clear, though new business pipelines remain strong.

CBRE Group, Inc. Announces 2025 Executive Compensation and By-Laws Amendment
Dallas, TX – March 5, 2025 – CBRE Group, Inc. (NYSE: CBRE) has announced new compensation targets for its named executive officers and amendments to its corporate By-Laws, effective immediately.

Executive Compensation Updates
The CBRE Board of Directors has approved revised base salaries, annual performance awards, and long-term equity incentives for the following executives:

Name Base Salary Annual Performance Award Target Time Vest Award Target Core EPS Award Target Relative TSR Award Target Total Equity Award Target
Robert E. Sulentic, Chair and CEO $1,350,000 $2,700,000 $5,983,333 $5,983,333 $5,983,333 $17,950,000
Emma E. Giamartino, CFO $775,000 $1,160,000 $1,605,000 $1,605,000 $1,605,000 $4,815,000
Daniel G. Queenan, CEO, Trammell Crow Company $775,000 $1,160,000 $1,355,000 $1,355,000 $1,355,000 $4,065,000
Compensation targets for John E. Durburg, another named executive officer, remain unchanged.

By-Laws Amendment: Removal of Director Term Limits
Effective March 5, 2025, CBRE’s Board of Directors has rescinded the 12-year term limit for directors by amending and restating Article II, Section 2 of the Company’s By-Laws. This change enhances continuity and flexibility in board leadership.

The compensation adjustments and governance changes reflect CBRE’s commitment to leadership stability and long-term value creation for its stakeholders.

CBRE Group, Inc. announced new compensation targets for key executives on March 5, 2025. The updated compensation details are as follows:

- Robert E. Sulentic, Chair and CEO: Base salary of $1,350,000, annual performance award target of $2,700,000, total long-term equity incentive of $17,950,000.
- Emma E. Giamartino, CFO: Base salary of $775,000, annual performance award target of $1,160,000, total long-term equity incentive of $4,815,000.
- Daniel G. Queenan, CEO of Trammell Crow Company: Base salary of $775,000, annual performance award target of $1,160,000, total long-term equity incentive of $4,065,000.
- John E. Durburg's compensation remains unchanged.

Additionally, CBRE amended its bylaws, removing the previous 12-year term limit for directors.