CBRE (CBRE) 25 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Second Quarter 2024 CBRE Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chandni Luthra, Executive Vice President, Head of FP&A and Investor Relations. Thank you, Sunny.

You may begin.

welcome Second and Conference XXXX everyone, Call. morning, to Quarter CBRE's Earnings Good posted on prepared presentation you today, additional a Earlier we deck Excel that to along supplemental materials. an can follow our with and our remarks file contains use that website

to off many am the of looking already others joined we you excited kick to forward how month. ahead. months I'm to and in call, will weeks today's Before CBRE know to want last I say I have know better getting I and

I'll you cash capital including transactions, M&A of project benefits strategy allocation outlook. from Now remind contains CBRE flow that forward-looking earnings and other combination without and our and today's our statements, business the Turner presentation and and expected and outlook, Townsend limitation, our and concerning management plan synergies business

statements projections Forward-looking cause differ These projected. about statements that future results risks statements materially and events. other may and trends to uncertainties those actual predictions, involve or from are

discussion of SEC filings. other refer earnings our in a forward-looking factors release to this For please these impact the statements, full may morning's that and risks

We the non-GAAP our GAAP directly discussed financial together have measures measures, most these explanations with of comparable presentation our call deck reconciliations provided in of on the appendix. to measures

by joined on and am Emma Chief Sulentic, and Giamartino, CEO; I our today's Bob call Chair our Financial Officer.

over Now X I Bob. to call please Slide the to turn turn as

second quarter our reasons: and Chandni, exceeded CBRE. X everyone. CBRE to for welcome Thanks, successful revenue, a Good cash profitability had first, expectations. flow and morning,

strategy. investments Second, we explicit several consistent elements with our capital sizable made of

touch I'll we material identified we cost quarter. the X. all quick challenges made Third, on briefly progress on last

relative inflection origination Townsend, to this U.S. outlook segments Turner fees. outperformed when revenue our and quarterly XX% provided XX% profits. and the comparing we revenue With expectations XX% mortgage in of increase in M&I on operating that are and expectations, reminder, segment business to a the call. net X our leasing growth both for advisory referenced each revenue & on last our of of Highlights is mind, net point. our We in performance As an included believe segment and cusp results

significant deployment, management Combining secular tailwinds, & commitments create future scale in significant Turner quarter Townsend, our the project business discuss an profound made of the Emma's with on combined given implications following CBRE. CBRE capital in I'll its move an in this support have will with strategy. exceptional will this of of more impact space On we enormous detail remarks. operator the in a

take to favorable at well-positioned believe $XXX of to the projects, of continue opportunities times cycle. make in second by the in available lack development that advantage capital the for can be we approximately investments We real quarter estate million committing harvested

these sheet and enable development Our execute investment businesses identify gives to on and management, capacity and the us our balance to act us brokerage opportunities, them.

of huge enhances Global Line management, in Finally, is our capabilities our acquisition Direct rapidly. market center that growing data a

track margin this top line with to coupled year costs, actions expansion, and QX. business wins on put us with mid- teens segment. growth our high taken line in segment has new Regarding achieve versus improved along progress in resulted on bottom growth This, to mid-teens back GWS in full margin

of a year $X.XX $X.XX core of with full strong account, from to up to to all expectations have for EPS outlook along our $X.XX increased Taking into of previously. range half, this our $X.XX, second we a

results will outlook discuss our greater Now Emma? in Emma second and detail. quarter

businesses of Thanks, improvement our transaction highlighting the activity. hello, and resilient strong everyone. performance begin Bob, I'll by an in and

net Together, and revenue growth strong M&A. from businesses As loan double-digit and increased these investment management reflecting a businesses facilities XX%, our a management, reminder, management, resilient project by include organic contribution valuations property fees. management, servicing,

time first delivered together segments for quarter. markets the with combined XX revenue in increasing Notably, our Advisory consecutive the and and for GWS net second months, double-digit capital leasing growth revenue

Our has assets upturn at multiple in an expect attractive to quarter. development activity, valuations, in sell contracting also to seen complete fourth REI the segment which we

Slide advisory XX% to with expectations, a segment. property for turn revenue revenue please line exceeded rose Globally, office business, X%, U.S., of net the review in revenue. a the including Advisory every of growth XX% sales. leasing X growth Now by led except our in nearly in jump

while the industrial New Retail, York, a driver also exhibited U.S. key CBRE office by small, Leasing markets. July, many was demand for has pickup a relatively continued supported momentum increase. large in activity of a bellwether declined. in in albeit strength

began Revenue basis Property on by local X% reset. X% offset sales. U.S. somewhat decline growth was values in A terms. a only where in U.K. Turning the U.S. to largely to have dollar stabilize, currency property the declining Global X% and in

While in up dollar APAC ticked revenue sales currency. was in local down terms, slightly

are advisory XX% Our compared a by mortgage very until offering the gap to net origination refinancing debt QX business in up decline. overall, net resilient XX% SOP by was driven Advisory's growth, ticked produced aggregate. interest increase XXXX. rose businesses X% with which and in revenue Loan supported origination strong short-term rates funds, fees. And from slightly bridge growth origination rose margins

wins our Please and segment. new pleased that clients business GWS digits. also turn growth balance discussion with improved to expansions. Slide GWS of XX%, double X a of a The we segment's revenue for above organic net expectations, healthy strong and rose delivered the by are

that our appreciated net a in In energy XXXX. the is the by not Bob of addition is and & will driven up than we go technology from delivered end fully double-digit Management on to do call. later robust Product And sales growth. X% deeper sectors. revenue Townsend, believe more pipeline business conversion, Turner

rapidly. revenue capital Net facilities growing is We Line in million basis. market management Most us and nearly estimated rose accelerate in our Management. which of an growth management, Facilities committed an organic data XX% $XXX acquisition, in quarter. billion to went XX% Direct on the Turning the to M&A to center positions that $XX the

Local especially growth OP million margin gross And management annual better has decisive $XXX business had XXXX. business in acquired XX in This business with significant now points small a global of gross a local revenue reflecting revenue net also billion Facilities Canada. U.K.-focused a headroom, started is in We that business XX% basis from $X.X as cost in facilities than rate. XX.X%, actions. to America. GWS' XXXX, expected, compound quarter improved by our North first the Management a

as We year-over-year our margin see to expect expansion results full year in take cost effect. actions those

going discuss better prior REI by Slide turn expected, the project slightly Segment significant X sale profits operating but was absence again approaching than assets. of Please when generate from is year, profit I year, period to plans we the meaningful This consistent we significantly than development although we lower development of are the our with into the sales. now as a results. driven believe

than was lower better to is at as due as offset returns. Investment more expected, by Management thus largely well now higher far than $XXX primarily FX billion. this operating raised AUM we've was co-investment asset billion year The profit adverse $X.X values movements.

have increased However, and asset value stabilizing core Europe. asset have preferred U.S. moderated, of appetite certain seen we enhanced to and the classes evidence declines for Investor and in strategies. in improve with both return continues valuation sentiment

conversion capital flow improved was allocation I'll cash cash on and to the Free X. quarter. meaningfully million $XXX nearly Now flow XX% for Slide discuss and

leverage the the outlook across thus $X.X be turn to free co-investments. and year cash of slightly about net after in billion capital increasing billion now even X expect $X over year M&A with and of for flow far are deploying our end We to XXXX

our that this integral capital our REI to million quarter $X favored Our co-investments. total advancing or XXXX our billion strategy. acquisitions in approximately is this executed in $X.X secularly to examples deployment year-to-date are M&A M&A billion, business enhancing cyclically parts capabilities in strategy The we our brings clear X-year resilient. $X.X and of are in of over of

and years. harvest have as accelerated development a as put in next much in million to the in investments X profits us Our $XXX over position

at Our nearly pipeline billion. portfolio $XX combined and in-process stands now

M&A and many developers data sidelines, co-investments sheet. desirable Over continue the few teams accretive land strong from returns advantage investments and taken balance our to in the center strong sites our growth anticipate in on have multifamily cycle opportune industrial, source years, last highly by and and expect locations. of the this to time highly were supported making We when

Please discussion XX for turn outlook. our of a to Slide

increasing in EPS. quarter, which fourth year the driven to EPS As $X.XX, higher for core range $X.XX full very to are account SOP our full in year revenue each XX% Bob over strong expectations a our for we should segment. by of mentioned, just anticipate We of

advisory, Within SOP by now high growth teens stronger-than-expected we activity. expect driven transaction mid- to

margin and full a For mid-teens SOP XX.X% net the is year in net XXXX. we GWS, better that produced than revenue we growth anticipate

is outlook our cost acquisitions improved of the QX facilities effects in management the actions. and by Our driven

portends believe asset development primarily be For which to to REI, we is QX, business. large upturn SOP our due completed improved outlook expected in this in sales the an

our let longer-term update Before a minute take to on outlook. me I conclude, you

environment. We peak downturns. achieving have macroeconomic trough in record EPS just in A with prior we've supportive earnings increased our compared confidence well improved return following reflects continued assuming the our years to core X of resiliency how business XXXX, EPS, a

next we reasons stronger confidence are are result moves the even several in making. in expect outlook. the We resiliency a as cycle our There for of increased our

on for full growth from double-digit nearly XXXX, across which businesses, year billion in resilient expect of we track contribute First, XXXX. $X.X are our $X.X continued SOP billion up to

rebound activity. earnings to without achieve the transaction difficult predict record cadence of recovery, it's while the Second, we accelerated can an in

I strong described expect we growth Finally, the earlier. plans capital deployment additional from

of call all I'll this the in into sustaining growth double-digit hand a to account, trajectory. Bob. Taking back confidence great With have we that, long-term

some Thanks, about Townsend. Emma. I'll close with Turner & thoughts

commercial are compelling. similarities and real differences Turner Townsend businesses, While significant project traditional & some management to its has estate

Kingdom Transit Australia for rapid real XX and nuclear transit their Abu airports, station large the the sectors. international corporate programs system, natural new traditional be power estate York Townsend complex Sydney constructed Turner the in work & of resources energy over New include the Toronto Examples in the Dhabi's this in first infrastructure, Beyond United project Metropolitan management, green and years. manages and to Authority,

for many span strategically typically it projects. project years larger, involves When programs clients, complex, of include Townsend & individual more an corporate typically assignments. work These and Turner important array

data managing program multiple hyperscale instance, they creation dollar world. around billion or For XXX the advanced currently the plus are of plants and centers manufacturing project

programs. Townsend businesses will the areas the Townsend from marketplace and client practice that of leadership business. Townsend's risk and cost They & cost rapidly cost Turner growth, meaningful of across strategic track through synergies capital in yield and combination management CBRE Turner is oversee revenue large complex record combined the functions. of will largest eliminating & the & team also exceptional bases redundant between the and synergies management. economies Turner decision-making scale an the create X best and have consultancy, world's project secures pricing significant a performance The optimizes growing

to million $X.X in over Since in nearly XX% a compounded acquired CBRE Vincent of Townsend's net Turner XX%. at Clancy of took & XXXX as in our and ownership being has has billion to rate XXXX, growth $XXX the rate Townsend's interest Since XX%, & of from attesting grown annual CEO and revenue compound platform. Turner of CBRE's part benefits a net November grown revenue approximately XXXX

that of is CBRE. combined change to large. enough the It of large The expected more resilient XXXX. business, profile rapidly growth to double-digit billion want stress net SOP will enough growing and business I generate than long-term which of enough is $X.X provide resilient the be to approximately and Finally, $X.X to billion in years positioned of revenue is

line Now questions. operator, the let's open for

Our with Morgan Instructions] Kamdem Ronald Stanley. question first is from [Operator

quarter. great a on Congrats

Just the business. starting with GWS

but the presumably margin full second the to all improvement is You also sort above second being half. much talked going year, the year first higher place is cost impact half to last going half, be in than sort about take the of of

the forward half So how think second sort annualizing business? rate run going of Is that the a do we sort margin? good of about for

XX.X% saw So QX Ronald, actions lot target. in and And within to above you are what above run expect in cost that rate expecting it's that is took at what our we we we QX. the achieved was in what obviously of not we margin a QX and near

year. year, that overall the margin we're XX.X% full be the we that delivered For to last expecting above

going half. higher be higher will to see run run into to rate And to that second the get to the on going margins But year. rate next year, full for in the you're where we So then not second going half a we're get basis. than margins even

and ground? my activity. is seeing you And What rate transaction and helpful. a past what the backdrop seeing starts in then just the we the second That's pipeline? gives Obviously, just and conviction Advisory the green just on you in maybe shoots had you fits but sort X what better have about that seeing expectations confidence given Maybe talk you're can it. are on Got of that these you're

picking to We're coverage on Morgan Ronald, us. first following thrilled up for us. Stanley have of thanks all,

third your quarter, mortgage part things let talk the bit her has anecdotal. to are I'm very the answer the Emma that. into of And to it part we confidence. to -- first other some We The quarter, originations that positive and in activity But is the in pass the quarter. first question are the more leasing continued of had let had and going you to there us about a giving talk little second

So a We're we we're not we lot fact intermediary, get only the for that instance, an do insight are from things. of a different but we principal.

the gives confidence sentiment acting of going or markets for narrower we to development one are there's in seeing at And projects there's year. that capital a there of and maybe year. of us spreads this it's be quarter going That business happen except rate now, we Obviously, fourth other demand rate cuts that before, expect least our in parts were the to are in the than that couple that they out way. are office. didn't bid-ask cut this a

and brokers mortgage before. did active they more stronger and have sales investment are than pipelines Our brokers

Our mechanisms office of where tenants, all measure better. different work we has surveys ] through sentiment [ with kinds gotten and

then anecdotal that we this starting causes the have the point we quarter and gone technical have may that to going brokerage, inflection to quarter. well think we it's then evidence And So an mortgage have and to us that's really of It's profitability have second through quarter transactions nice fourth from more evidence going It's the impact leasing. business. sales. in going impact to on impact on development a the impact to going our third

want that. add might you to Emma, to

Yes.

in up is what more we up we're -- continues pick globally. Ronald, leasing. you're So declining side In slightly, seeing the been we're on strength than that. Industrial that about the the making seeing office has office U.S., to leasing talked is greatest but for

a into continuing think accelerating signs so we early And July, outcome. of great we're be within would seeing And leasing. growth that

expecting So the that of the we're to remainder continue year. through

argue And Globally, again, sales Sales currency the actually a signs basis. strong you early. see globally. market only going that side, And is in On relatively revenue we can into that declines, for still but the activity sales we're seeing the we're local very seeing do down it's quarter stabilizing. was us on flat X% July. it's

to So market. to see anything, call activity in not U.S. going we're uptick an starting we're the but in sales

Our from next question is Anthony Paolone with JPMorgan.

disclosure more about about of I the the Turner and commercial those making between Bob, that businesses. off you point? distinction is talked a this & spinning I Townsend bit you would talked some consider -- at estate just something mean, kind differences you mean real traditional change. and that quite

than you do So does? of as like maybe it the think seemed a what CBRE bit this of different being rest

manufacturing more They're of world able in lot a X-way of around Company, work had there's those landed businesses cooperate. work undertake. successfully. a ability had compounded substantial places by to do, Clancy's synergy. for cooperating than the XX that parts are and our are. of the that Turner & benefit dollar Turner client We've I plant, and to between they than of at and you years mentioned XX%. us, been Anecdotally, world, more grew Anecdotally, we where X -- to in team repetitive. But a Company Townsend what introduce of Since Townsend Crow base many, a part different. bunch it's that program deliver Crow a some & that we it's an couple believe plants and and the from I'm And decade. synergy billion-plus in does us, to numbers, and to basis, there going number they're the different and give believe have major Trammell not having countries Townsend, we and XX% and been to Townsend, for we Vince one on management they've over you projects we anecdote, on been Turner them Turner earlier, whole what those many Tony, the Vince are & operate that's grown wouldn't they've we we going at tenure corporate give Trammell and development I'm his very businesses a of services believe

unique in and to So we synergy us. be no Turner would very of the on today. be term fit long engineering Vince There's They're make mistake to even for a our of and between board & there's a does. Townsend think really, put firms. relative project do a management like public what markets going nicely firms great But them our And and We've about they rest story other company, his companies large large the because program it. so think lot enthusiasm and what he there's we with business company there. really great much public

I part CBRE. they're So of a very hope long-term

the then when sort the going facility a for management, about the be growth is like think high. organic remaining business because sounds facilities just disclosure management project we and to project And has changed, it should of of the piece Okay. have is then pretty it, how

that does lead facility Just where is?

the competitors that rate. Facilities large occupier and the And for enterprise single-digit by which revenue you very most a growth our of term, has where double-digit play at side, that where see management, trajectory that's that's should grow low believe, is long clients X space. Yes. we a organic business supported components. we in globally, One, manage high

are about the should talked past compound in our even grown facilities we'll we is at that bringing and XX% the rate. rate, which a different then double-digit local to as that that the in And that us M&A on low will focused in so over organic within an of business do grow up M&A higher. over time, that And remain the is has know, low decade. higher that's, is expect from that my business mid-teens top So we you on local to management the get and basis, our I where business. sector, And our business range. competitors confident regionally remarks

it. Crow just than we more question just the from coming BOM one How I should the just of [ the ask there? development on ] And much Got Trammell more selling if for as think outlook about and Okay. the guidance. could stuff gains

we segments. all increased X across So guidance

walk Within getting you'd of to and increase expect, mid- activity, is I'll them. Advisory, SOP in to through teens X the So Within due transaction high as increase largely all M&A. we're to GWS, growth.

Our organic as growth are getting SOP GWS we're And growth high year. going with well. the expected to to what the expectations we year mid- in line within into teens for

the is And is fourth seeing very and quarter. for in strong across we our half, what second couple second across business. monetize growth to high of to about contribution of revenue leasing in the very the all going margins when look you're at development those but the you growth probably then you're guidance accelerated strong deals And the half, incremental in growth we increase have see as segments. large that past low SOP REI Advisory, very double-digit and expect sales

growth a about, we've done lot strong year M&A as won late in start we've GWS, then large picks cross this And of expected that contracts we've earlier be second year and we as onboarded. in and the second works. as revenue the again, half half to last both the And up talked very

You're than our run going margins higher rate GWS well. second as higher half the in within to than see

KBW. Jade question next with is from Our Rahmani

Could some what down the participants side, you tenor mortgage you're market from you please tone provide were capital Property still on could characterize but color the and On seeing? commercial year-on-year, surged. quarter. in sales

mortgage saw uptick loan for So on commercial origination, refinancing. in we and a primarily the side, that was strong

loan there very from was bridge agencies quarter. to a is in the providers offering debt banks bridge debt from pick by So that They're short-term all XX% source big And over funds up. loans Volumes and funds. uptick until the in refinancing. increased the

We in well. as banks a decline originations the from actually saw and agencies

come up the the pick So half in that we of down. second as rates to expect year

On side, deal pretty acquisitions flows there in side? the uptick yet? seeing an still are sales debt is you it most of subdued on Or the

slight a seeing such off it's still in increase. -- but not not our it's It's uptick low meaningful contributor acquisitions, we're a We're that base to meaningful. having a

on comment are On so the continue was average, the around Could But retail? seeing activity talk also many years, on XX%. leasing side, office XX%, you tenants past somewhere that about X shrink you substituted an to uptick. and

are and most it, of deals. in and we we're office uptick New volume, So we the seeing increase on in terms as you're of occupiers transacting an seeing transactions, really uptick are side, across -- stabilized in we're our think size terms about in seeing that of we've larger of regionally York talked we

movements terms big obviously, of of, seeing all transaction, in seem those have transaction aren't per rent metrics of to square per We in terms stabilized. footage

uptick, REI driven primarily comment you inflation well products of the the than as on seen is by lastly, to the is you do around historical as for Or to XX% that lower going Are interest rates? be to And multifamily. cost think Could pipeline. that's demand they the due gains. outweighing new as that? of believe the we've I percentage

the clarify you investment Jade, management REI, let ask business? or you say talking about you development When to are me that.

Yes.

Within Sorry, Trammell I have business. the REI, Crow clarified. should

there's it. of kind we're the hear kind generate. building otherwise build the other kind that doing That headlines, The that centers, our strong and ever in skewed We when too wouldn't we of again, data the this things what what's fourth be very to The building -- of generate. to repetitive don't platform, types, a and towards in quarter and data to activity because industrial We happened more generate we're in has X seeing Trammell sell or But a Crow product across of of been going stuff multifamily. mean than position developer. before. we end is I wouldn't benefits there, Company, harvest is it we across up we when number I say. centers certain being be you

things entitlements work that to is profit. the a or Company has at of developing in put then Crow on Trammell a acquisition, land industrial Crow over at is one harvesting and done time Trammell considerable land center that transition from quarter. land generally the used data fourth in up industrial be When significant in to amounts be the to profitability, end you of a and with going land land side on picture data the they've the happens, for results exceptional part can land centers. pretty sites big position Company But The of see development the that that's

a really securing little -- what's that there further, know come ourselves started out back real of couple a slowed That way is capital down. Looking to though, significantly. of been really, the third-party the has important new in We that years. to opportunities went lack through capital development market for last development

But a land own development ourselves, we way cases, are development of this some to projects our land identified we have with it opportunities the closely. and very than done bigger third-party sheet we've good a we've buy process the use number the other in in components is to of capitalized year. and we We've study balance development thing fund capital and -- come in beyond historically -- we've

that And projects slowed online the business. new our we in seeing are number quite where out in and has of what or confident going projects dramatically. down to are projects into multifamily you're comments coming be hearing about profitability particular, We that markets that's coming developing of

the or business. coverage for data quarter are sell huge predominantly not fourth but they've as in sustainable those to center in the the guidance in the generated land example, gains, for due REI regular is in sales. you whether to they data my their center say uptick homebuilders, I as Can and residential developers really team intended parcels, increase have

in sustainable. uptick related to But whether is quarter the REI, around largely is -- in data the comment the center asset is that's So fourth large sales. the

I we embedded in that pipeline in-process profits the focused our portfolio. on really is our one within of and the think pieces Trammell Crow remarks

at underwriting And of that we next that assumptions the that to today generate portfolio $XXX we X are talked million expect profit years. conservative over in relatively about

takes years business and that underappreciated, there towards time portfolio be Now the of amount will weighted But will of we that is that, embedded earnings is much the element that. is these of build out very out be projects. coming more amount significant it do that a think our as in profits sustainable. that of And to

data expecting this so to is that here. an you And there this coming uptick look we're us an at a believe year, that's upturn will that, signal that when from these we sales be center there in business and

all of that. could, what review I If I That's not portfolio. does Jade, that specifically center and to sites. add be address just $XXX said luck depend you on to million our may asset-by-asset industrial to transitioning data And on kinds of good with sites an

out over measuring it that move think will where the for time. it know For unless that acquired we purposes we come today class and it's going to to we asset another

is Citi. Michael with Griffin question from next Our

first might get back right kind of how sense for go would all be weigh Color deployment through certain if other. buying half against weigh at against far there a your so or appreciated. you give time of want us just first stock. been time X there wondering Just Is the the guys a you're like question. M&A hit price you aggressive how those to year, where whether other. amount, to a capital have kind it's my you each of each factors stock of I'm opportunities here to dollar really and can those you Obviously, this

Yes.

enhance of We acquisitions been management. we're and M&A strategic, highly on management and we've our very in capital return terms strong capabilities, project deployment. our and focused consistent So accretive that at looking focused prioritize remain very strategies facilities on will drive a

We up years. expect both few of ticking next ] those over to [ the

underwriting. is that pipeline we are M&A, predict we it's difficult strong, very and always very diligent extremely our Our in to though caution

that focus are to And exceed makes every we would deals our to going and they a that rate deals, the return the we then hurdle sense drive of that on have sense strongest return. and exceed the to repurchases. most so And from share have they make the get in single one

and will back that. M&A don't or year, we've lot the that's where we [ we of half I seen the capital we've expect ] amount of a years, of have simply tremendous X extrinsic in the pipeline trading look exceed value of amount done sure a you've buy deals at so second a So This difficult M&A a amount our [indiscernible] don't and in in that our to far, shares. your compared make we so those year, it's we're of repurchases reason, whatever year. tremendous If but this result deployed for the execute past this of to

Emma, of you of potential give kind opportunities? rates a sense for M&A underwriting hurdle you're can those us

So all above our that. think say our returns. about of pretty cost mid-teens And our much I can capital. deals deals above I the all are of that's of underwritten well at -- Most

Great. I'm That's office for helpful. demand But broadly? And know particularly globally, markets from products any question leasing. wondering the the just A coming of office you that greater York relative Or but as a you in it on on kind [ this all And was there seeing upside? are then product. Tropin I or is to you then other big New if Class the either just domestically kind surprised that bright ] earlier, of it touched my second are spot, side. you called -- out

on AI their easier well-documented that's driven pickup of their seeing Area, in employees, better really because cetera, et for we We're Class dynamic. their employees, quality now that the A productivity the believe in Texas, experience sure, is are seeing of a and companies office to activity many so presence happen considerable pickup. employees, the space. attractive those make by that all Bay the Well, space New it's the focused we're And tech it's the markets. AI, believe But office yes, around Austin, beyond et York, I cetera. And markets, -- in a of

is with ISI. question next Our Sakwa from Evercore Steve

if know on have the buybacks. light I that. follow-up. actual the know I bought been X Most share have of buybacks but asked. I the my didn't you shares or small back a But questions see relatively necessarily the in an average I don't just was guess price quarter,

it average at worth In minimal. off price the of We quarter, shares an $XX was $XX. repurchased million

how containment, just talent maybe, about of I forward? at the maybe Bob, think expected, then talent we little the not that you through And that and obviously, going And how expected much cycle? just to affect maybe thinking are and guess that speak part I a than come does maybe the just And seemed margins of faster on retention or this bit. kind you Great. cost acquisition affect to

perform at high philosophy a a level want in we that Steve, to that business drive in we this have our a we here we do. everything company way about

stuff aggressive that office contribute. good we don't people doesn't those things are space, that of business. build office good contribute, company. don't good every regard One things the doing is technology don't that that of of of we're to space our the that that And on contribute more focusing contribute that the Cost rid in and success getting buyers contribute the projects does costs to of people, technology, more kind,

for so land. quarter. office saw We're And need, what's talent. we second the in analysts, some looking last that we of aggressive on ought Emma buyers We quarter. we of happened happen talent aggressive we you buyers that things buyers. aggressive spectacular rid aggressively a brought the the can is, transformation But in we're We're is stuff and those on reports comment let get to to of, that are and I have

We narrowing investing have investment but and we very an are we're careful. aggressive technology the things being program, in that

that? if to And Emma, you add to want

add. will I Yes,

sustainable on long-term business. office operate is in we making Our change transformation focused our how

we episodic over are operating time. we so to want on And delivering on consistent reduction cost be leverage focused not focused

do. focused you very to expansion. thing on. easy that's can And something see It's we're that So that an not margin

cut everything business we we focused are we back. our on, in technology, as leaders of invest extremely road, on so people, here out, from focused so very are efficiency. really the driving is don't And invest as resources that as down we we smart know have to add All decisions those on that in that

question Stephen Sheldon is Blair. with from Our William next

Nice work here.

a capabilities now to others centers playing are opportunity your comprehensive other thinking about and now might to GWS. differentiation peers direct First, and pursue there of how you'll around the need generally, data solution market? are in relative that that have facility management pieces that and And line, you you just

there's to to back invests we we agree want up that in how to side our how to the M&A. that think to question, that I and I M&I about market Stephen, work And would do answer more have talk understand about on think get CBRE's shares do we M&A.

a sale and a come group businesses leaders of there all, price. up good have of waits for sits something to we for at and don't a of that First group

cyclically is attentive no strategy of areas they in very than example has well And Each businesses a or a are company. of are resilient they're There's will how to sustainably obviously adding capabilities capabilities b, want grow. marketplace, the strategy that Turner very a, that they secularly think adding better We Townsend. in to, & strategy-driven our and that, either do because we favored. for

their you asked marketplace within understand cetera, things differentiate et the manufacturing, can go business business financial acquisitions. that seeking in the it will and at facilities leaders us facilities marketplace wouldn't technology, run. our attractive the to be wouldn't in that clients So and those so to make management the doing that the to they out it look management, if out They long we've that our expect the do sectors business, because in in capabilities various

Turner wasn't were J&J came you've through year, auction. None not to auction. that wasn't those done none deals business The an local we in Those deals auctions. -- through deals were an Townsend, the done auction. through of done wasn't those an done So make auction, Canada, done through the do during the us in an auction. Direct wasn't those of bought last through quarter heard we -- an do Line FM those through &

owners sellers good We of those were pursued fit. thought went to we or businesses a the the of those businesses them because and they

ideas around have business. our We

veteran acts our them approach acquire ideas we integrate them have development XX, an by corporate to that. after Morgan led That's increasingly then Stanley that those on and XX-year team well-developed We to M&A.

expect didn't And in us others us expect facilities should see to other highly management spaces see visible expect do and as aren't a in by result, to more you market. the that the they -- because space deals you should you

then Yes, months. seeing changed just you really guess, I And follow-up now? a environment on Is you the helpful. management, right you're side as just, in can there last it. what that's the investment as few talk over fundraising the Got about look back

Yes. activity We've pickup inactivity. seen a --

a you're and half is I in core of We that but across plus. for which pickup broadly pickup in the a return enhanced in are first market, think seen positive think very in we've expecting the the hearing core a And remainder year. strategies, also activity we indicator the

from with next our Now Abramowitz Peter Jefferies. is question

could comment just of whether dry how from you some pent-up is ask market. about activity. just in guess pretty and more sort much expectation stabilization and to I kind the last that? versus resilience sales a you on could years driving just what the color more give on relative of that's and I there depressed your give on the couple powder sidelines And demand investment wanted color think you the is of

wouldn't circumstance When not coming have become the down. And something. wanted because people trading better to a I said been we bid-ask to be say, years. just It's environment. something rates marketplace important, sell spreads Maybe it's in the going people investment activity back, of that's of is have the have therefore, back. sales you talk attractive Peter, a them bunch going a of last more " been for by to assets pent-up come massive Yes. couple base coming the a sell whether of market really demand. otherwise "Oh, has to assets about that that stabilized, There are going held should

interest we're less Trammell in the do for have Crow is down sellers estate couple massive happened there. the that's What a to wanted people needs principal why don't the happen is years. to last see There the we're going The market. narrowed. business, the those coming place We deals that sidelines with the has very where a has has certainty in not spread volatility our and what's you're to take find there get an of a bid-ask and been and the And jump have assets. seeing place They're on capital rates been to a We've There's quarter. intermediary, grown has action in environment in like there. development where Company around buyers real act. amount action of real them. get to business And fourth in that's to to going been

right. is be trade we're the environment Now to going going to because those assets

sort A as And up of if in pricing then how how below does Class zoom that, office at Bob. commodity that on to look as just leasing at then assets? I half continuing is And those to to volume still [ ask trophy revenues? and of broader guess leasing go algorithm And on ] minus specifically looking wanted I start you the [ I then of pricing seeing pricing improving well first the market, obviously, appreciate the color. between trending? affect trophy kind about I ] mean, are side. kind outlook the overall, of for out the to is Overall, the you your volume, year. and

a she is addition estate does, portfolio, in one real good to other now. actually all things the Emma handles because question our she's that market the she in Peter, to and answer

And so a you consumer as she tell what like. that can feels

So is on York. the locking office Bob about talking New in leasing side, and

For leasing trophy our asset and especially and New much by -- yes, those increasing. in in you look quality transactions, but if assets, across of prices are there York, by type stabilized, pretty assets broadly by But there's pricing are of is big market. differences happening portfolio very what's office

to over hand I at questions closing comments. time. There Thank this further like would to any the you. back are for Bob Sulentic floor no

Thanks for talk we'll joining and quarter. third end to you again us, everyone, the the of at

conference. concludes This today's

Thank lines for time. you your disconnect at this participation. may You your