CBRE (CBRE) 24 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the CBRE Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Chandni Luthra, EVP, Global Head of FP&A and IR. Thank you.

You may begin.

welcome Third 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

business forward-looking of our expected cash and earnings and presentation asset business contains statements flow our strategy, and including sales statements, Today's capital outlook. limitation, allocation without concerning outlook, plans timing the our

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

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

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

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

Throughout facilities on their provided management expectations, noted. a investment property fee results resilient we Emma outlook unless performance remarks, in earnings against loan the July, and management, include to reminder, financial and are valuation call as referring they business. businesses asset otherwise when QX actual management, XXXX Bob our project management Also, relative to management, our site servicing, our in

business fee. sales, origination, development interest in carried management comprise investment and market businesses leasing, fee transactional and Our the incentive

Finally, growth in XXXX Xrd quarter dollars. to Unless we the otherwise versus whenever change the noted, we site percentage referring rates, U.S. are

Bob. turn I X to please over turn that, With Slide call as to the

briefly marked strong advancement of business in gains results, with and the financial comment strategic Chandni, on good continued CBRE's across you, morning, all X key third starting quarter performance. our our and areas, I'll performance financial was by positioning. Thank parts in our operational everyone.

our segments posted second profit with $X.X net resilient which share XX%. included segment by well and strong by with leverage. revenue to record business operating as businesses, Key Turner grew our XX% operating XX% All core demand. double-digit core revenue office a growth, led quarter highest up fueled posted earnings where increase per X posted drivers revenue accelerated & We third along earnings Townsend, on leasing, significant as billion,

In capital point recovery. passed activity markets is the transaction addition, early has and of an in stages inflection

results efforts we the GWS' discussed our cost Operationally, full the course put and on Turner with considerable project margin of will Townsend business The year with the XXXX efficiency earnings is proceeding business pace momentum. quarter management first us on integration & expansion. and reflect call for with CBRE start combined

flow to grew segments. reflecting improve our conversion across free considerably, Consolidated cash our focused cash efforts

in front, and and businesses strategic diversify have market. our opportunities co-investments businesses. GWS our have widened acquisitions infrastructure, services a we addressable our REI Further, Townsend, growing pipeline attractive project opportunities energy in the recent opens our for combination data in business of facilities resulted through management managing investment Turner avenues a data total On M&A CBRE to both & federal centers in and growth strong government efforts and scale and in projects. and center up the We've

are the Japan where our businesses to and SOP. largest advisory point grown contributors India Geographically, the and have they to second fifth

huge these contributors us CBRE's future be them have scale positioned to and for outsized to economies, expect and success disproportionate we continued Our growth in growth.

outlook us previously. EPS a strong XXXX, momentum year year $X.XX full range raise of have QX to core $X.XX up our full our for from $X.XX to to For entering performance and year-to-date $X.XX, prompted to

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

Emma?

XX% resilient our history. earnings by greater streams growth any from expanding our earnings has on potential a earnings has to XX%, businesses believe SOP the expect coming point And business focused providing crisis These them organic today. of can increased which than enduring Thanks, businesses. even at resilient financial by as importantly, double-digit context approximately are growth, to significantly than from Bob. and our global achieve be most we result, out further in our M&A. I'll we on around start resilient boosted our less how transactional We volatile

changed in Our investments our have company. of resilient businesses the complexion

we we it core For prior years core to surpass the during X of of to out experienced downturn the year, the peak downturn. GFC. the context, years fell XX% than less just to next return peak earnings. peak GFC, the took trough trough earnings Coming And EPS during are versus X from XX% poised to

I'll let sales revenue. me X. results. start Now Slide in supported with revenue by exceeded strength through beginning recovery segment's in Advisory each highlights advisory of the property on the net leasing of a walk expectations, you

benefit strong to the our continue from leasing We position market. in office

Greater any expected. the In we about economic QX, primary increasing by is better and fact, secondary global than in for office decision-making XX% Europe. particularly outlook supporting high markets, occupier a U.S. reached revenue the certainty leasing across new and

Revenue in XX%, loan our from that demand return across multifamily a the a benefited to strength all origination rose revenue property U.S., by expected, growth Global increase towards almost to encourage grew skewed the fees. retail. mortgage As office. stronger is across XX% property origination to sales and sales with will which business, highest quality global space increase, This exceeding complemented returned employees the In expectations. activity XX% regions. driven revenue in

by points. addition funds, and margin up picked advisory In XXX Overall, continued the increased almost with SOP basis XX%, originations debt from rose than GSEs. to notably more activity net SOP

foundation XXXX. lays and net local secured including and XXXX. enterprise the for increased strong than to the Through growth the for Within of we XX%, increased outsourcing expectations. for quarter, Slide a line wins in enterprise expansions our segment. with businesses. revenue both of strength existing elevated with X new Overall, GWS in all business, GWS first-generation more Management, a review net Facilities net turn third revenue contract broad-based Please in revenue in This XX%

of its Project by and & geographies Management Turner reinforces more merging sustained improved the XX%, in conviction net revenue SOP net XX types CBRE's cost margin basis XX%, strength Townsend's Turner points, reflecting outperformance rose with Turner again under than efficiency by exhibited asset Townsend GWS's & expectations. management revenue line project business. once our leadership. across Turner business our initiatives. & level Townsend's our expectations, led exceeding & up in Townsend with

X, Slide led more market discuss quarter This and the by as increased better REI results. was of this co-investment billion to been significant $X operating REI prior during incentive raised improving profit year. than Please which from Management, expected the $XXX turn conditions. year. fees AUM to and above Investment reflecting and the than was billion has segment returns, I meaningfully benefited capital

enhanced At and the seeing across have fundraising are activity and increased cleared strategies. we same our time, queue fully interest funds core redemption our return in

growth We in market for backdrop XXXX. considerably expect the to AUM improve

As now $XXX pipeline realize increase our expected, we development million did billion. term. in of quarter. assets in-process which to the large profits exceeds $XX not the long the remain monetize development over continue end track development any to during embedded the the added by and We on quarter, steadily to We the portfolio in profit portfolio our and significant year

quarter flow XX% conversion free up to non-GAAP and The more cash QX on discuss our improved between noncash flow earnings $XXX GAAP meaningfully and leverage improved cash than Free for XX%. Slide driven primarily I'll Now XX-month trailing the by and million, flow delta X. in to cash was items.

cash billion. over development would cash full cash expected remains $X forecast conversion of be The increase primarily will slightly be this flow within the unchanged XX% at year gains for to the slated year XX%. of Our in guidance for free is investing. cash for large not convert because the flow our target QX Adjusting our impact, flow to in EPS for free reported free flow from range to

the we in about X on with Finally, even leverage capital XXXX. track of end net thus across $X.X co-investments and turn of far after to deploying M&A billion are year

as outlook. Slide to discuss turn Please our I XX

range XXXX midpoint expectations with of the to February. at our Our new for core XX% the EPS $X.XX original a in of represent $X.XX outlook compared increase

the in and this We higher achievable outperformance year our are thus believe confidence pipeline. because year of business far in full our our earnings businesses

deliver level expect to we this to GWS, quarter by All Advisory profits. which the fourth fourth exceed in quarter EPS record are core notable segments exceed led years. or prior their is without best of materially prior to by peaks earnings its coming ever, expect that SOP REI It in achieve peak should to our prior earnings a expected We significant margin. returning

SOP grow sales for now narrowing for asset the expectations, we to continue stronger-than-expected quarter. leasing line with for the Advisory, REI, guidance by mostly full SOP driven we completed expect prior year. the growth XX% And in the GWS are teens we high development is multiple expect full to activity. be and year, to fourth our in over Within range expect in

Looking are of new Absent continued the an resilient further unanticipated EPS market peak businesses. core $X.XX almost from guidance in growth prior about XXXX double-digit certainly recovery our next exceed businesses and implies we to in we earnings. by event, that a only XXXX, our midpoint our of transactional prior year, XX% our will fueled

for the Bob Now I'll turn call thoughts. to back closing

Emma. Thanks,

earnings perspective strong in prospects. estate this to capital relates markets, Given the as I'll improvement real on in the market's anticipated CBRE's put focus it

directly markets Real our While across in impacts originations, affect loan Development property business, capital performance Investment the Estate there are and sales, Management. secondary our

easing the and for expect estate the businesses that rate growth market's short capital benefit a capital regardless estate sensitive, real the markets are to a has from these of the interest to and important But of real stress heightened start the excellent Fed's markets several are investor We Since next prospects recently cycle enthusiasm services impacts. strong, long-term share sector. it's recovery enthusiasm new years. CBRE's over monetary

our made in businesses, the on resilient leasing our we've addressable total leadership business large growing building This the and owes global for markets I commented to the progress earlier. market and in that our

of about Our to SOP growth. resilient billion year, double-digit businesses generate this reflecting are expected $X.X

this of foreseeable businesses We continue expect these to for the pace growth future.

line peak profits leasing, and revenue surpassing further earnings considerable for business by prior of room addition, In is to growth. this close with our year largest

are our earnings outlook. a surpass strong to sustain have we next prior the but performance As their in beyond and underpins a to markets and XXXX contribution our growth a relative strong extent lower capital estate result, business markets or to confidence we recovery Real evolved in year. don't which to need diversified our underscores capital peak important CBRE's business, long-term to

With that, questions. operator, we'll take

Instructions] the Citi. Griffin first questions with Our line Michael of come [Operator from

point. I to want markets an of comments about capital inflection kind passing activity Bob, your back the go to

of couple of kind be? in seeing sense a have this from Will just steep look up the year-over-year? quarters you're going As or be an lapping now is kind XX% a how acceleration from acceleration to we XX% what of comps do of sitting perspective? into Curious we you XXXX, recovery here of

going expectation or very to buyers a think office, be not recovery, We largely is it's for come capital we asset steep sellers have be recovery. classes current Our markets I a that to most together think it steady think, together, come for not will close having and obviously.

is debt seen now. actually We've bit positive There now. rate increased leverage cap some There There's is available in industrial, not of multifamily. a multifamily available much. and little compression in interest

think it's going be we precipitous be year, think next there'll So a improvement improvement. a don't we steady but to

improvement. a the steady that it's to be evidence that anticipate doesn't plan Our would suggest of we're And more gathering going anecdotal improvement. a precipitous

of comments And business Are driven? growth in then near helpful. kind get expected medium power lot the a like expected kind term seems curious, lines. just this have I'm just a really resilient to number? of stuff. this of organic we pricing level to do those of nature your sense Can the and assuming of businesses, that was external you it it That's this you that -- the -- back I these growth the going of mean growth over stickiness around some seems double-digit for

could where growth coming from? Just that if is maybe comment of kind on you

-- that these medium near, it's then double-digit medium in to about we businesses, also comment. ask long that feel and and term investment expecting very you good be supplemented and I'll near getting investment double-digit range will growth we're us term, I'll but comment But and organic it's into by M&A that. Emma low mentioned

on we about focus a call mentioned but in started today, before, our talked to which haven't I we lot it. As

outsourcing that Our that It markets. have was lot addressable barely these got total the only we total partially in X Turner that started a strong. in and those total India We've & done, with for addressable now for prominent quite awful organic huge already growing. acquisitions Townsend, growth us. addressable become been is from with is we've But with where addressable an market market market, market X very gotten had sit we've the tapped. Japan businesses for

there. We've got teams great leadership

double-digit strategy, and can them expect to supplement we have able to years significantly a grow M&A. We do to do be capital. But an M&A of come. basis lot We we on through a that think we have for

So I'm to let a Emma that going little about bit. talk

our before, earnings this would $X.X stream talked but to resilience And And we SOP, the year, a think about on it add we've big it so for I SOP. deliver is us. for expect billion of I

double-digit continue. and grown to over point That past continue. both to range, organic has been has that to the low expect years, and number Bob's that that's a in and rate at that we but double-digit we So growth M&A, the organic been of expect

is we'll these from even of through remain our recovery, range to of the at lines business. time. because this always think And is that end XX% about in we growth I resilient around a over of year expect not what XX% appreciated that SOP transaction businesses,

in terms look at M&A, technical a expanded the which in services which we year, $XX are continuing space like also J&J $XX did billion direct market. space, then expand I at opportunities then federal this believe of the billion Management, to earlier a Facilities we into line deals And to government but that the mainly is And believe elsewhere, space, we look center within market. we data and in that's

where want we the -- can at we're a M&A same. right more are We do we takes expect for really of in But as operating strong deliver course, of looking areas time. say, really to a deals we always with to we us that long strong think So leaders return.

come line questions Anthony next of with the JPMorgan Paolone Our from Chase.

it office mean, I company's quarter the from the the grow relates leasing. we history. it question because think like, think you was to first should here best potential being third about leasing My how to mentioned I in

forward so I'm trying to of what some see where the understand demand to be? it just clearing from here there, of normalized pulling goes and or And might there if was kind of like backlog

to came So, great as to been exactly have don't It's through to COVID, of Tony, going a office for bit since pretend go. view we a an unknown all where is little we leasing us of of a There's in because up here's space And news highest our what in we markets rates of well. leased the we've at around those do participation of ever. prime believe. lot being done a number markets,

by B believe being don't toward driven incentive success will recently move buildings which space. space leasing in up, leased office the best move this space it's space However, will when we occupiers to that we've invest give prime that seen to are And targeting they by owners first. landlords thing, believe on is want is buildings, prime the next and of and driven We them prime B+ to A. who

sustained some in to we're office going think see we strength So leasing.

of lot about see believe customers. as continued time XXX a We've with to big got spend people Enterprise go being said going the to not pre-COVID I'll future. a is we're Dallas slow return business. GWS everybody going X this last what We space say talking X occupier to the levels. calls, their conference. week And We've important to with office. office in our I've We think to do on got But we're back or we a

is and to And we've there the to good beyond. So into next is move people sustainable get leasing office be we experiences think success we space seen continue back year office. to in going expect the toward a that creating

you there saw for that's think seems there? this we question -- you expansion actions, about should year? some that how point? margin guys we pressures in next look is, quarter. had whether How thoughts still about if any whether the we in earlier in some Is think we My took should at room into look dialed and back the and it Or you cost margin as like, emerged that? all Okay. year, we second expansion the Or

done across the QX. majority of were and QX actions cost those So

seeing is the you're what rate year So full impact. run this not

into then a of year. continued And next see year. that to benefit to full course, expecting see improvement margins continue margins, you'll the year. margins impact fourth change to the our in that really in our year, business we're improve we -- GWS So to see in going continued Again, margins should should quarter. And strong next our last GWS is this a a over you're through a not step our but for

line with from Our ISI. the next coming question of Steve is Evercore Sakwa

forecast of out, yield in sort cycle down? why a is understand in kind predicated extent figure what coming the stability Transaction want back the not best just of get easing that. can in long occurred, bond predict Is curve one it modest I sharp Fed of certainly the just recovery the to you your is is, the your sharp It's to having it really interest Like out kind trying of as the really But in what end kind versus it don't to recovery? unfolding yield? I I'm a mind business. that laid they've would more Bob, guess recovery a bond to on of more

downstream buyers believe transactions the move up had doing in the this in community that, of is investor and more to contributes I Steve, but end higher coming they maybe a them into it. rates, some sharp interest some prices. all believe, and commented what to to stepping get in would at and a think being of last down leaders market, would absence that thought stability because doing bit, create on among I quickly But the causing little quarter, I recovery they others

for and multifamily for best bit little seen assets have rates we a industrial cap compression the of And already.

think interest totally don't I or down rates rate So interest it's coming about stability.

of psychology, I about it also which course. partially think always in cycles, it's buyer-seller is

buybacks? if And on sort billion just Emma, do temper least sort at a the it's about guys of much of higher using we buybacks, think is enthusiasm does Okay. price buybacks? the versus higher think as today, at kind share share we stock free your does that, $X kind year, free And that where of cash valuation flow don't that Maybe, benefits, of assuming the a you should just go? given How you and cash for the of flow again. kind about next acquisitions

start it our not So saying share by temper I'll and does interest buybacks.

M&A this it with when say, definitely of believe are consider continuing where at we've we're past. We our today, the that is it our today, buybacks at balancing done a place, we will discount to that significant buybacks we trading will in value. remains as sense. more makes valuation I share at look rate intrinsic than We

Our of Sheldon line come the next Blair. with questions from William Stephen

about ask And capitalize to count volumes? of wanted markets, recovery. to incremental early especially to What in are on margins supporting do will higher as be of rehiring at to capital terms in much we capital within the I stages head able First, specifically, markets, seeing need there? are you you

got capacity in mortgage our We've origination team. considerable

And in great talent investment got a we've team, capacity Although our that team. our doing who's recruiting. got we've a in of leader that we're job area business sales adding of to great

So we businesses to to add don't grow need materially. talent those

markets strategy. part about of our market our are growth of the so businesses growing in those of that's We're a I and businesses. doing we nothing important, in an clarifying much it we're But restrain and leader investing important talk transactional comment. make the is We resilient and But growth capital leasing, to should maybe businesses. our the because

side side the to of see to we business, should from both markets we but expect business grow that don't the do us talent you add of leasing where capital to now. to the need and significantly So the are

the I And wanted into great helpful. quarter. GWS the wanted second, margin this trends I maybe That's -- Understood. to drill to in there segment, down

you X, flow-through took should you about we there's higher that actions But the have what talked still years, X, time? X you do there levers prior of margins think about over think just as to keep the maybe next quarters. impact some think some pushing in we about I

mainly number a This resetting. focused there's our really This on -- levers. business. operating base, across our So really piece primarily resetting, stage expenses of is overall the cost first is

focused Enterprise is in are extremely second The contracts, at and in some progress that these we've incrementally our contracts, piece higher focusing on, large very we're especially seen business margins. on and

in businesses -- as those services, continue these should we you at from over traditional we time, that a So to should technical M&A benefit business. higher a our see than margin operate highly do all

that we margin. can time. improve then over contracts even to other existing continue within And to there's will that do So improve things our margins contracts, that our

but So the it delivering years. that next increase will focused know few increase very time, a over steady we're over be that steady on

Our line Morgan next with questions Ronald the of Kamdem come Stanley. from

quick one for me. A

are little Just to sort I'm going GWS guess share? Or wondering about existing you could if overall the more? between you versus was the a back contract. bit sustaining I more wondering, I of are business, engaging just generation guys first enterprises talk pipeline, breakout

We are it of an We've also talked expansions expect, to client over contracts to But to and typically can new that outsourcing even base. clients there. in first-generation we're wins you'd take typically and the about those number years. a longer in take, Those or seeing take you seeing We're sometimes quarters as significant progress last want convert, progress contracts. increase Bob? Anything over our that, significant existing add seeing they year. within

No.

they And they clients the other we've various in the we relationship. lot expansions a prominent with runs you as that them do -- we lot They and around because seeing enormous have want do how estate them. huge are the there's in I'll for U.S. I that we the who an in a X,XXX how give out think day, of these amount always said to do with we door was expand with happy that I And me areas -- a of and example. facilities having leases a have for manufacturer. we're real what one of get get growth for occupiers world. lunch was he business, our we don't telling

you sitting inside side, And the sitting more where from we're more on experiences to yellow lines efficient you're properties to create effectively in, to to that the do of on perspective. able make portfolio if in the demands perform manufacturing the cost be and he's more seat, great

All of for opportunity are there that considering who expansion creates come all number that a yet. of entities others hospitals, And government us. would then to corporations, done continues who And area. it of universities, -- good be the in outsourcing and haven't

second the guess those of Great. business in about be, lines. engage through in and talked where capital guys My of of question last thesis different was quarters for sort wondering going sort you leaders clients sort multiple in business ability you you've seeing lines, are you to just sort of the seen of that I'm acceleration just that? Are X sort markets. I to from

Yes. you're the cutting hear almost and out, totally question. didn't we Unfortunately,

are and engage to in seeing business lines, Clients sort playing out capital share? you of recovering able could you are markets that that. being any multiple as about Sorry anecdotes

We building lot we valuations a management clients. We Well, seeing the especially the markets play that it we capital more. we are capital do debt the Obviously, occupier -- do on financing side, them. of do work we But do, work. for But on work We do those sales on work. for markets occupier. we the out property side, do side, see work. on

markets well. do business is as the the clients. of a investor side They're the we lot in So for there capital

side integrated to plenty be to do, don't as basis and the solutions opposed tend one-by-one with we we Those on that transactional some there's as as are, account have that an basis. on we occupier a clients enormous solutions but interface

Our Jade KBW. Instructions] come questions the with of next [Operator line from Rahmani

talking to at ask about to upside different in about be point Crow. wanted I cycle. this the Quite Trammell

strategies significant First be, joint devising if data for entitled industrial, currently to use be repurposed question of could our would through either for center investments. venture or parcels and such that you've monetize sales land identified our

data position fairly sites a to and run power. land in the center sites. regularly to to core happen fact have is Yes. we does of through the Company one Jade, that's it land land logistics Crow path And identify a competencies logistics land because have Trammell of sites, that logistics acquire big that adequate

seeing returns us. that confident are We strong will quite in we're for result opportunity some there financial

the we've we, that's And incremental portfolio, sheet than little the when on over for alluded profits This to We last the significant sideline. That's that few that pent-up surprisingly, more appears the us in given to more a identify put of capital fact not amount effort a that of our on balance underway have it quarters. in-process proactive land. surface. others into initiative development a prominent the probably business were strategic bit

data aspects And M&A in REI infrastructure. take combining Trammell your you some management center the Would relates of question one of step to Crow around or contemplate further, to space? initial comments and or with something the infrastructure

have a a comments to one tend arm earnings. unlock to the asset way development estate value to predictability tend at multiples. this discount trading Perhaps relates that because intrinsic the high through investors be But an type CBRE Across space managers real very struggle alternative manager asset strategic associated at discount. that businesses transaction with might find be to estate conglomerate coverage Emma's to in real as trade could to

thoughts potentially and this Just out something curious off as or to your Crow capability. building combining data really center about spinning Trammell with

to start want question, are good, not is to in Crow opportunities really returns with example. our I'm and interface really But business an to creates invest and for business, you a saying trading we there's by only good them I Well, give does off really some -- Jade. it high so because it Trammell productively other does contemplating Company it capital. generates that our insights that well-run going parts not of

but early fund before, of the USLP. During We've the knows to COVID management person. development in of We a on. core-plus the exists investment stay-at-home it was to by hard secure sheet None Company own fund meetings, fund It's the is story of Trammell told of Investment a portfolio that plus watches part middle this in fund the era. our industrial how it called started by the business. portfolios. our none And Crow Management scale seeded a together of of was thing using whole Zoom. balance We projects, anybody a done in put business COVID, that that couple started a interface also

with COVID. fund we're business not Trammell our That is probability got together. gives exist kinds Investment areas. other standing in And Management Trammell fund would do looking opportunities all that Started things Company We've Company. Crow From a Trammell all at to and today without billion. of us during $X in Crow that Crow start, Company

and we've got Company. there and project venture Townsend -- land between $X billion-plus & land alluded that development a in example, to plants and we're Another on Trammell management too, Turner handling the Crow acquisition, we manufacturing this

you Turner If to them positions would think Queen and they you tell well them of Townsend, or deals done the Crow that neither Company, & one to Danny Denselancy would talk do have of more alone. those Trammell that. at We

thing That's us to that about the gives confidence business of this go. kind where is going

Company, of with have. for really is on good Crow other businesses. us lot only not So a It kind does our a freestanding business basis to is Trammell a

we all cash generates The use can lot conversion other with invest to a over thing I'll say of immediate that CBRE. is it cash

with done be can that lot that a So business.

the of line questions with from Our Abramowitz Peter Jefferies. come next

And a strong congrats very quarter. on

leasing the Just bit. a into dig wanted to little

You office up globally, called is impressive. which XX%, out it was very

in on industrial of how the side? compare that for trending go office? the things are curious we could any XX% did are of up leasing? sort Just And industrial you on general How What broad-based. if comments to seeing sort

space huge through. we think come to for aware office up, that. demand X on that side burning leasing dramatically the leasing vacancy And a years trending years, they're than that's year, leasing year. do next We better the going back that, to Industrial was But not then over kind better at down this not although of few next year they pipeline or And industrial users the up it took space that and they've and of over is there's lot pick their everybody is leasing after through be got will one last rate expect -- is. the there reasons of Industrial the that some that is and that for of. huge, the portfolios of in

I of That's maybe in longer markets to question, has has here. but -- Fed put recovery. helpful. this back high about kind remained rate the than was the right. Steve's stubbornly then out I go the the sensitivity guess it just curve capital to And playbook, think All

just around continues curious the how on your case, thoughts sort the hear to the if magnitude that thinking So your of to that would markets be recovery? capital impact of

of through of really on months, EPS, the what guidance next going end In we're the level Peter, to the markets. gave, what midpoint the believe with that year. a we're in high And in embeds we few capital confidence we focused that of the $X seeing of happen is the

sales So QX XX%. grow revenue we're in investment to our our by expecting --

So that's number. low a not base. a low off realize it's I

high know visibility we and number record of of above We've -- couple huge of and August number. had months. a has recently. that. there's off that activity sales the into a of September, impact have -- we're over We the gone have and But I rates seeing the X tenure that questions the around have don't gone come been locks rate to lots -- expect through next

activity. lot So our in end year there a of the through shouldn't the be sales of volatility

from come Our Paolone next Chase. Anthony line JPMorgan questions the with of

most attractiveness do if doing just where follow-up. it? kind you I and see there? yourselves I opportunity at money the spend on Like how CBRE's minute revenue of you a I center what data could understand just see that have you ecosystem? was team biggest you in really make And do one the there. wondering

exposure they're land Crow Tony. profit Townsend there. to plays has excess Turner Company hyperscale in We've data the of opportunities is that XXX give centers got a already data that centers, Trammell making about & talked project bunch We to that us of managing.

We data we manage between in data data services that centers we have center a business and where centers occupiers, XXX of XXX on behalf manage business.

business. line early direct And that that that inside Center inside Services centers. small does synergize white the really did just are with acquisition projects that -- has on the the that the and data We and lines Data returns we encouraging,

strong. So that's very

center data Advisory our sales business business very, capable. a have that's in We very

from a specific And doing amount how initiatives could all exploring where and and data more to describe from strategy we prominent going extract we've of we not of can opportunities. we we of centers exposure, expertise, strategic got work where that with things a yet, are positions, we're any as here. those ready lot to go in on We're decent but lot a have

line comes question of the from ISI. next Our Steve with Sakwa Evercore

here one know of but the follow-up. sort kind referenced quarter? realize of I it you just that flattish release, this press it basically quarter. Emma, large, that quick but that was anything the Just just it's was down not abnormal on servicing the loan in I in business. pushed terribly

underlying growth X%. Yes. The is

is you I line. moved the origination growth from X% basically X%. some to actual income but is commercial servicing had loan think to moved escrow be We've the mortgage from see what growth,

Our line with Jade comes Rahmani of from KBW. next question the

With your a which contribution that near quarterly thoughts the is around resilient from instituting what businesses, to are remain expected regular dividend? XX% level,

we of the evaluate of buybacks that we've been Right number and time. past flexibility think we buybacks, now, execute we that on something it's years. Jade, love over to our over the able

long expect we So it's a do that is as dividend as continue but that we that, necessary, to think don't we something to evaluate.

have comments. to Sulentic reached back now like for the would over I our the call Bob We question-and-answer closing session. to of end hand

our talking everybody, results. look Thanks, when to year-end report we and to you forward again we

teleconference. Thank you. This appreciate We conclude your participation. today's does

this You may time. lines day. of your your disconnect the at rest Enjoy