CBRE Group reports Q2 core EPS 82c, consensus 76c

Reports Q2 revenue $7.72B, consensus $7.3B. “Like last quarter, CBRE‘s results slightly exceeded our expectations, driven largely by better-than-expected growth in Global Workplace Solutions and aggregate growth in our resilient lines of business, offset by weaker-than-expected property sales in Advisory Services,” said Bob Sulentic, CEO. “It is notable when considering our performance that the prior-year comparison was especially difficult. We had our best quarter ever for core earnings-per-share in last year’s Q2, driven by exceptionally robust development earnings. To put this in perspective, development earnings in last year’s Q2 exceeded the level of development operating profit in any prior full year except 2021. The economy performed better than we had anticipated going into the quarter in terms of both GDP and employment growth. However, the opposite was true with interest rates, where increases in the last 90 days, coupled with expectations that rates will end the year higher than anticipated last quarter, pressured the elements of our business that are sensitive to commercial real estate capital flows, particularly our sales and financing businesses. We expect this pressure to continue for the remainder of the year. At the same time, we are beginning to see signs in our own business that will eventually lead to improved performance, likely starting next year.”