Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32205 | |
Entity Registrant Name | CBRE GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3391143 | |
Entity Address, Address Line One | 2100 McKinney Avenue | |
Entity Address, Address Line Two | Suite 1250 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 979-6100 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | |
Trading Symbol | “CBRE” | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 326,860,554 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001138118 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 1,657,336 | $ 2,430,951 |
Restricted cash | 135,293 | 108,830 |
Receivables, less allowance for doubtful accounts of $93,667 and $97,588 at March 31, 2022 and December 31, 2021, respectively | 5,073,224 | 5,150,473 |
Warehouse receivables | 1,194,800 | 1,303,717 |
Prepaid expenses | 333,672 | 333,885 |
Contract assets | 352,064 | 338,749 |
Income taxes receivable | 43,758 | 44,104 |
Other current assets | 543,400 | 371,656 |
Total Current Assets | 9,333,547 | 10,082,365 |
Property and equipment, net of accumulated depreciation and amortization of $1,330,999 and $1,288,509 at March 31, 2022 and December 31, 2021, respectively | 792,735 | 816,092 |
Goodwill | 4,977,082 | 4,995,175 |
Other intangible assets, net of accumulated amortization of $1,741,193 and $1,725,280 at March 31, 2022 and December 31, 2021, respectively | 2,338,548 | 2,409,427 |
Operating lease assets | 1,030,391 | 1,046,377 |
Investments in unconsolidated subsidiaries (with $713,871 and $813,031 at fair value at March 31, 2022 and December 31, 2021, respectively) | 1,124,339 | 1,196,088 |
Non-current contract assets | 134,324 | 135,626 |
Real estate under development | 361,852 | 326,416 |
Non-current income taxes receivable | 37,907 | 33,150 |
Deferred tax assets, net | 142,748 | 157,032 |
Other assets, net | 869,679 | 875,743 |
Total Assets | 21,143,152 | 22,073,491 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,881,910 | 2,916,331 |
Compensation and employee benefits payable | 1,579,118 | 1,539,291 |
Accrued bonus and profit sharing | 906,343 | 1,694,590 |
Operating lease liabilities | 220,730 | 232,423 |
Contract liabilities | 295,642 | 280,659 |
Income taxes payable | 268,823 | 246,035 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,172,125 | 1,277,451 |
Revolving credit facility | 210,000 | 0 |
Other short-term borrowings | 30,826 | 32,668 |
Total short-term borrowings | 1,412,951 | 1,310,119 |
Other current liabilities | 224,327 | 199,421 |
Total Current Liabilities | 7,789,844 | 8,418,869 |
Long-term debt, net of current maturities | 1,526,212 | 1,538,123 |
Non-current operating lease liabilities | 1,104,812 | 1,116,562 |
Non-current tax liabilities | 124,348 | 144,884 |
Non-current income taxes payable | 54,761 | 54,761 |
Deferred tax liabilities, net | 310,104 | 405,258 |
Other liabilities | 950,246 | 1,035,917 |
Total Liabilities | 11,860,327 | 12,714,374 |
Commitments and contingencies | 0 | 0 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 329,555,402 and 332,875,959 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 3,296 | 3,329 |
Additional paid-in capital | 409,187 | 798,892 |
Accumulated earnings | 8,758,928 | 8,366,631 |
Accumulated other comprehensive loss | (701,440) | (640,659) |
Total CBRE Group, Inc. Stockholders’ Equity | 8,469,971 | 8,528,193 |
Non-controlling interests | 812,854 | 830,924 |
Total Equity | 9,282,825 | 9,359,117 |
Total Liabilities and Equity | $ 21,143,152 | $ 22,073,491 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 93,667 | $ 97,588 |
Accumulated depreciation and amortization | 1,330,999 | 1,288,509 |
Other intangible assets, accumulated amortization | 1,741,193 | 1,725,280 |
Investments in unconsolidated subsidiaries, fair value | $ 713,871 | $ 813,031 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 |
Class A common stock, shares issued (in shares) | 329,555,402 | 332,875,959 |
Class A common stock, shares outstanding (in shares) | 329,555,402 | 332,875,959 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 7,332,933 | $ 5,938,879 |
Costs and expenses: | ||
Cost of revenue | 5,752,194 | 4,719,546 |
Operating, administrative and other | 1,065,996 | 828,327 |
Depreciation and amortization | 149,032 | 122,078 |
Asset impairments | 10,351 | 0 |
Total costs and expenses | 6,977,573 | 5,669,951 |
Gain on disposition of real estate | 21,592 | 156 |
Operating income | 376,952 | 269,084 |
Equity income from unconsolidated subsidiaries | 42,871 | 83,594 |
Other (loss) income | (14,464) | 2,732 |
Interest expense, net of interest income | 12,826 | 10,106 |
Income before (benefit from) provision for income taxes | 392,533 | 345,304 |
(Benefit from) provision for income taxes | (3,738) | 76,327 |
Net income | 396,271 | 268,977 |
Less: Net income attributable to non-controlling interests | 3,974 | 2,775 |
Net income attributable to CBRE Group, Inc. | $ 392,297 | $ 266,202 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 1.18 | $ 0.79 |
Weighted average shares outstanding for basic income per share (in shares) | 331,925,104 | 335,860,494 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 1.16 | $ 0.78 |
Weighted average shares outstanding for diluted income per share (in shares) | 337,140,325 | 339,580,504 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 396,271 | $ 268,977 |
Other comprehensive loss: | ||
Foreign currency translation loss | (81,285) | (52,346) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 108 | 107 |
Unrealized holding losses on available for sale debt securities, net of tax | (1,731) | (678) |
Other, net | 100 | 0 |
Total other comprehensive loss | (82,808) | (52,917) |
Comprehensive income | 313,463 | 216,060 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (18,053) | 2,667 |
Comprehensive income attributable to CBRE Group, Inc. | $ 331,516 | $ 213,393 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 396,271 | $ 268,977 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 149,032 | 122,078 |
Amortization of financing costs | 1,663 | 1,609 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (28,422) | (72,045) |
Asset impairments | 10,351 | 0 |
Net realized and unrealized losses (gains), primarily from investments | 16,690 | (2,732) |
Provision for doubtful accounts | 3,303 | 731 |
Net compensation expense for equity awards | 36,863 | 35,786 |
Equity income from unconsolidated subsidiaries | (42,871) | (83,594) |
Distribution of earnings from unconsolidated subsidiaries | 146,743 | 32,986 |
Proceeds from sale of mortgage loans | 3,336,084 | 4,643,685 |
Origination of mortgage loans | (3,221,312) | (3,909,261) |
Decrease in warehouse lines of credit | (105,326) | (708,491) |
Tenant concessions received | 2,114 | 1,578 |
Purchase of equity securities | (8,902) | (2,398) |
Proceeds from sale of equity securities | 20,750 | 3,017 |
Increase in real estate under development | (41,358) | (15,901) |
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) | (156,061) | 161,221 |
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | (108,355) | (245,522) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (725,216) | (469,213) |
Decrease in net income taxes receivable/payable | 17,722 | 41,660 |
Other operating activities, net | (93,270) | 2,381 |
Net cash used in operating activities | (393,507) | (193,448) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (42,056) | (29,597) |
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired | (16,792) | (2,726) |
Contributions to unconsolidated subsidiaries | (44,387) | (168,392) |
Distributions from unconsolidated subsidiaries | 12,101 | 6,795 |
Other investing activities, net | (4,487) | 16 |
Net cash used in investing activities | (95,621) | (193,904) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 210,000 | 0 |
Proceeds from notes payable on real estate | 19,368 | 23,737 |
Repayment of notes payable on real estate | (13,954) | 0 |
Proceeds from issuance of 2.500% senior notes | 0 | 492,255 |
Repurchase of common stock | (367,863) | (61,108) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (13,556) | (512) |
Units repurchased for payment of taxes on equity awards | (31,395) | (34,883) |
Non-controlling interest contributions | 210 | 72 |
Non-controlling interest distributions | (213) | (2,652) |
Other financing activities, net | (11,606) | (14,943) |
Net cash (used in) provided by financing activities | (209,009) | 401,966 |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (49,015) | (52,154) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (747,152) | (37,540) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 2,539,781 | 2,039,247 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 1,792,629 | 2,001,707 |
Cash paid during the period for: | ||
Interest | 12,826 | 15,080 |
Income tax payments, net | $ 88,649 | $ 38,508 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Mar. 31, 2022 | Mar. 18, 2021 |
2.5% Senior Notes | Senior Notes | ||
Interest rate | 2.50% | 2.50% |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A common stock | Additional paid-in capital | Accumulated earnings | Accumulated other comprehensive loss | Non- controlling interests |
Beginning balance at Dec. 31, 2020 | $ 7,120,087 | $ 3,356 | $ 1,074,639 | $ 6,530,057 | $ (529,726) | $ 41,761 |
Net income | 268,977 | 266,202 | 2,775 | |||
Net compensation expense for equity awards | 35,786 | 35,786 | ||||
Units repurchased for payment of taxes on equity awards | (34,883) | (34,883) | ||||
Repurchase of common stock | (64,142) | (8) | (64,134) | |||
Foreign currency translation loss | (52,346) | (52,238) | (108) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 107 | 107 | ||||
Unrealized holding losses on available for sale debt securities, net of tax | (678) | (678) | ||||
Contributions from non-controlling interests | 72 | 72 | ||||
Distributions to non-controlling interests | (2,652) | (2,652) | ||||
Other | 1,056 | 11 | 1,879 | (834) | ||
Ending balance at Mar. 31, 2021 | 7,271,384 | 3,359 | 1,013,287 | 6,796,259 | (582,535) | 41,014 |
Beginning balance at Dec. 31, 2020 | 7,120,087 | 3,356 | 1,074,639 | 6,530,057 | (529,726) | 41,761 |
Ending balance at Dec. 31, 2021 | 9,359,117 | 3,329 | 798,892 | 8,366,631 | (640,659) | 830,924 |
Net income | 396,271 | 392,297 | 3,974 | |||
Net compensation expense for equity awards | 36,863 | 36,863 | ||||
Units repurchased for payment of taxes on equity awards | (31,395) | (31,395) | ||||
Repurchase of common stock | (390,863) | (42) | (390,821) | |||
Foreign currency translation loss | (81,285) | (59,258) | (22,027) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 108 | 108 | ||||
Unrealized holding losses on available for sale debt securities, net of tax | (1,731) | (1,731) | ||||
Contributions from non-controlling interests | 210 | 210 | ||||
Distributions to non-controlling interests | (213) | (213) | ||||
Other | (4,257) | 9 | (4,352) | 100 | (14) | |
Ending balance at Mar. 31, 2022 | $ 9,282,825 | $ 3,296 | $ 409,187 | $ 8,758,928 | $ (701,440) | $ 812,854 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2021, which are included in our 2021 Annual Report on Form 10-K (2021 Annual Report) , filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our 2021 Annual Report for further discussion of our significant accounting policies and estimates. Considerations Related to the Covid-19 Pandemic and the war in Ukraine From 2010 to early 2020, commercial real estate markets had generally been characterized by increased demand for space, falling vacancies, higher rents and strong capital flows, leading to solid property sales and leasing activity. This healthy backdrop changed abruptly in the first quarter of 2020 with the emergence of the novel coronavirus (Covid-19) and resultant sharp contraction of economic activity across much of the world. There was a significant impact on commercial real estate markets, as many property owners and occupiers put transactions on hold and withdrew existing mandates, sharply reducing sales and leasing volumes. Subsequently commercial real estate markets recovered strongly beginning in 2021 and continuing into the first quarter of 2022. However, it is expected the pandemic has structurally changed the utilization of many types of commercial real estate, which is likely to impact our business. In addition, Russia’s invasion of Ukraine on February 24, 2022 and the ongoing military conflict poses heightened risk, particularly for our operations in central and eastern Europe, and could exacerbate macro-economic challenges, including supply chain disruptions and persistently high inflation, as well as adversely affect business and/or consumer sentiment and overall economic growth. As a result of this conflict, we elected to exit most of our business in Russia, although we have a limited number of employees managing facilities for existing global clients that continue to operate there. See Note 10 (Commitments and Contingencies) for further discussion of Covid-19 considerations. Financial Statement Preparation The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 and the war in Ukraine may have on our business. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In July 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-05, “Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842).” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We adopted ASU 2021-05 in the first quarter of 2022 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, “Disclosures by Business Entities about Government Assistance.” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We adopted ASU 2021-10 prospectively in the first quarter of 2022 and do not expect it to have a material impact on our annual disclosures. Recent Accounting Pronouncements Pending Adoption In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” and ASU 2021-01, “ Reference Rate Reform: Scope, ” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2022, the FASB issued ASU 2022-01, " Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. " This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2022, the FASB issued ASU 2022-02, " Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures. " This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restrucuturings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Turner & Townsend Acquisition
Turner & Townsend Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Turner & Townsend Acquisition | Turner & Townsend AcquisitionOn November 1, 2021, we acquired a 60% ownership interest in, and entered into a strategic partnership with Turner & Townsend Holdings Limited (Turner & Townsend). Turner & Townsend is a leading professional services company specializing in program management, project management, cost and commercial management and advisory services across the real estate, infrastructure and natural resources sectors, and is reported in our Global Workplace Solutions segment. The Turner & Townsend acquisition was funded with cash on hand. The preliminary purchase accounting has been recorded in the accompanying consolidated financial statements (with no changes in the first quarter of 2022). The excess purchase price over the fair value of net assets acquired and non-controlling interest has been recorded to goodwill. The goodwill arising from the Turner & Townsend acquisition consists largely of the synergies and opportunities to deliver a premier project, program and cost management services. The goodwill recorded in connection with the Turner & Townsend acquisition was not deductible for tax purposes. The purchase price allocation for the business combination is preliminary, primarily for intangibles, and subject to change within the respective measurement period which will not extend beyond one year from the acquisition date. |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 2022 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | Warehouse Receivables & Warehouse Lines of Credit Our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. At March 31, 2022 and December 31, 2021, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage-backed securities that will be secured by the underlying loans. A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2021 $ 1,303,717 Origination of mortgage loans 3,221,312 Gains (premiums on loan sales) 8,134 Proceeds from sale of mortgage loans: Sale of mortgage loans (3,327,950) Cash collections of premiums on loan sales (8,134) Proceeds from sale of mortgage loans (3,336,084) Net decrease in mortgage servicing rights included in warehouse receivables (2,279) Ending balance at March 31, 2022 $ 1,194,800 The following table is a summary of our warehouse lines of credit in place as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/17/2022 daily floating rate SOFR rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 840,732 $ 1,335,000 $ 742,124 JP Morgan 10/17/2022 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15,000 7,519 15,000 4,326 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 109,961 650,000 133,084 TD Bank, N.A. (TD Bank) (3) 7/15/2022 daily floating rate LIBOR plus 1.30% 800,000 85,873 800,000 217,672 Bank of America, N.A. (BofA) (4) 5/25/2022 daily floating rate SOFR rate plus 1.30%, with a SOFR adjustment rate of 0.11% 350,000 93,446 350,000 178,600 BofA (5) 5/25/2022 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.11% 250,000 — 250,000 — MUFG Union Bank, N.A. (Union Bank) (6) 6/28/2022 daily floating rate LIBOR plus 1.30% 200,000 34,594 200,000 1,645 $ 3,600,000 $ 1,172,125 $ 3,600,000 $ 1,277,451 _______________________________ (1) Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,335.0 million. This facility has a revised maturity date of October 17, 2022 and a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, with a SOFR adjustment rate of 0.05%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%, with a SOFR adjustment rate of 0.05%. (2) Effective January 15, 2021, the maximum facility was increased to $650.0 million. (3) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of March 31, 2022, the uncommitted $400.0 million temporary line of credit was not utilized. (4) The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.75%, with a LIBOR floor of 0.75%. Effective January 1, 2022, daily floating rate LIBOR was replaced with daily floating rate SOFR, with an adjustment rate of 0.11%. As of March 31, 2022, the sublimit borrowing has not been utilized. (5) Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating SOFR plus 1.30%, with a SOFR adjustment rate of 0.11%, and a maturity date of May 25, 2022. (6) Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30%, removing the LIBOR floor, and a maturity date of June 28, 2022. During the three months ended March 31, 2022, we had a maximum of $1.5 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) We hold variable interests in certain VIEs primarily in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of March 31, 2022 and December 31, 2021, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, Investments in unconsolidated subsidiaries $ 105,169 $ 109,530 Other current assets — 4,219 Co-investment commitments 87,156 90,328 Maximum exposure to loss $ 192,325 $ 204,077 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Topic 820 of the FASB ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 202 1 Annual Report . The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (dollars in thousands): As of March 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,832 $ — $ — $ 6,832 Debt securities issued by U.S. federal agencies — 10,146 — 10,146 Corporate debt securities — 47,806 — 47,806 Asset-backed securities — 3,193 — 3,193 Collateralized mortgage obligations — 592 — 592 Total available for sale debt securities 6,832 61,737 — 68,569 Equity securities 42,488 — — 42,488 Investments in unconsolidated subsidiaries 163,460 14,965 367,855 546,280 Warehouse receivables — 1,194,800 — 1,194,800 Total assets at fair value $ 212,780 $ 1,271,502 $ 367,855 $ 1,852,137 Liabilities Other liabilities — — 1,322 1,322 Total liabilities at fair value $ — $ — $ 1,322 $ 1,322 As of December 31, 2021 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,002 $ — $ — $ 7,002 Debt securities issued by U.S. federal agencies — 9,276 — 9,276 Corporate debt securities — 50,897 — 50,897 Asset-backed securities — 3,428 — 3,428 Collateralized mortgage obligations — 725 — 725 Total available for sale debt securities 7,002 64,326 — 71,328 Equity securities 69,880 — — 69,880 Investments in unconsolidated subsidiaries 229,900 23,741 406,690 660,331 Warehouse receivables — 1,303,717 — 1,303,717 Total assets at fair value $ 306,782 $ 1,391,784 $ 406,690 $ 2,105,256 Liabilities Other liabilities — — 10,700 10,700 Total liabilities at fair value $ — $ — $ 10,700 $ 10,700 Fair value measurements for our available for sale debt securities are obtained from independent pricing services which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument's terms and conditions. The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred on the valuation date, at the mean of the bid and ask prices on such date. The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At March 31, 2022 and December 31, 2021, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (See Note 4). These assets are classified as Level 2 in the fair value hierarchy as a substantial majority of inputs are readily observable. As of March 31, 2022 and December 31, 2021, investments in unconsolidated subsidiaries at fair value using NAV were $167.6 million and $152.7 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above. The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2021 $ 406,690 $ 10,700 Transfer in — — Net change in fair value (38,835) — Purchases/ Additions — (9,378) Balance as of March 31, 2022 $ 367,855 $ 1,322 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments: Valuation Technique Unobservable Input Range Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 14% - 25% Monte Carlo Volatility 69 % Risk free interest rate 2.4 % Other liabilities Discounted cash flow Discount rate 25.0 % During the three months ended March 31, 2022, the company exited its Advisory Services business in Russia in response to the Ukraine conflict. We recorded $10.4 million in non-cash asset impairment charges (primarily comprised of receivables), on a pretax basis, related to the expected disposal of the net assets and anticipated release of non-cash cumulative foreign currency translation losses associated with the disposal group. There were no significant non-recurring fair value measurements recorded during the three months ended March 31, 2022 and 2021. FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows: • Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments. • Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value. • Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 4). • Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed above. It includes our equity investment and related interests in both public and non-public entities. Our ownership of common shares in Altus Power Inc. (Altus) is considered level 1 and is measured at fair value using a quoted price in an active market. Private placement warrants related to Altus are considered level 2 and measured at fair value using observable inputs for similar assets in an active market. Our ownership of alignment shares of Altus and our investment in Industrious and certain other non-controlling equity investments are considered level 3 which are measured at fair value using a Monte Carlo and a discounted cash flow approach, respectively. The valuation of Altus’ common shares, private placement warrants and alignment shares are dependent on its stock price which could be volatile and subject to wide fluctuations in response to various market conditions. • Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Other liabilities - Represents the net fair value of the commitment related to a revolving facility in our Advisory Services segment. Valuations are based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market comparables and recovery assumptions. • Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets, and our revolving credit facilities. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Notes 4 and 8). • Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $440.4 million and $451.8 million at March 31, 2022 and December 31, 2021, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $442.1 million and $454.5 million at March 31, 2022 and December 31, 2021, respectively (see Note 8). • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 4.875% senior notes was $628.1 million and $671.7 million at March 31, 2022 and December 31, 2021, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and discount, totaled $595.7 million and $595.5 million at March 31, 2022 and December 31, 2021, respectively. The estimated fair value of our 2.500% senior notes was $445.5 million and $502.1 million at March 31, 2022 and December 31, 2021. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $488.4 million and $488.1 million at March 31, 2022 and December 31, 2021. • Notes Payable on Real Estate - As of March 31, 2022 and December 31, 2021, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $53.6 million and $48.2 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 50.0%. The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands): Investment type March 31, 2022 December 31, 2021 Real estate investments $ 502,983 $ 453,813 Investment in Altus Power, Inc.: Class A common stock (22 million shares) 163,460 229,900 Alignment shares (1) 73,016 114,727 Private placement warrants (2) 14,965 23,741 Subtotal 251,441 368,368 Other (3) 369,915 373,907 Total investment in unconsolidated subsidiaries $ 1,124,339 $ 1,196,088 _______________ (1) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2022 (the first measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, which were issued on April 11, 2022. (2) These warrants entitle us to purchase one share of Altus Class A common stock at $11.00 per share, subject to adjustment. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended 2022 2021 Revenue $ 581,115 $ 555,856 Operating income 273,693 275,462 Net income (1) 1,452,847 368,217 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings Long-Term Debt Long-term debt consists of the following (dollars in thousands): March 31, December 31, Senior term loan, with interest of 0.75% plus EURIBOR adj, due in full at maturity on December 20, 2023 $ 442,625 $ 455,166 4.875% senior notes due in 2026, net of unamortized discount 598,025 597,911 2.500% senior notes due in 2031, net of unamortized discount 492,961 492,782 Total long-term debt 1,533,611 1,545,859 Less: unamortized debt issuance costs 7,399 7,736 Total long-term debt, net of current maturities $ 1,526,212 $ 1,538,123 We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On March 4, 2019, CBRE Services, Inc. (CBRE Services) entered into an incremental assumption agreement with respect to its credit agreement, dated October 31, 2017 (such agreement, as amended by a December 20, 2018 incremental loan assumption agreement and such March 4, 2019 incremental assumption agreement, collectively, the 2019 Credit Agreement), which (i) extended the maturity of the U.S. dollar tranche A term loans under such credit agreement, (ii) extended the termination date of the revolving credit commitments available under such credit agreement and (iii) made certain changes to the interest rates and fees applicable to such tranche A term loans and revolving credit commitments under such credit agreement. The proceeds from the new tranche A term loan facility under the 2019 Credit Agreement were used to repay the $300.0 million of tranche A term loans outstanding under the credit agreement in effect prior to the entry into the 2019 incremental assumption agreement. On July 9, 2021, CBRE Services entered into an additional incremental assumption agreement with respect to the 2019 Credit Agreement for purposes of increasing the revolving credit commitments available under the 2019 Credit Agreement by an aggregate principal amount of $350.0 million (the 2019 Credit Agreement, as amended by the July 9, 2021 incremental assumption agreement is collectively referred to in this Quarterly Report as the 2021 Credit Agreement). On December 10, 2021, CBRE Services and certain of the other borrowers entered into an amendment of the 2021 Credit Agreement which (i) changed the interest rate applicable to revolving borrowings denominated in Sterling from a LIBOR-based rate to a rate based on the Sterling Overnight Index Average (SONIA) and (ii) changed the interest rate applicable to revolving borrowings denominated in Euros from a LIBOR-based rate to a rate based on EURIBOR. The revised interest rates described above went into effect as of January 1, 2022. The 2021 Credit Agreement is a senior unsecured credit facility that is guaranteed by us. On May 21, 2021, we entered into a definitive agreement whereby our subsidiary guarantors were released as guarantors from the 2021 Credit Agreement. As of March 31, 2022, the 2021 Credit Agreement provided for the following: (1) a $3.15 billion revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and terminates on March 4, 2024 and (2) a €400.0 million term loan facility due and payable in full at maturity on December 20, 2023. The $300.0 million tranche A term loan facility that was also covered under this agreement was repaid on November 23, 2021. On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 (the 2.500% senior notes) at a price equal to 98.451% of their face value. The 2.500% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 2.500% senior notes are guaranteed on a senior basis by us. Interest accrues at a rate of 2.500% per year and is payable semi-annually in arrears on April 1 and October 1. On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 (the 4.875% senior notes) at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 4.875% senior notes are guaranteed on a senior basis by us. Interest accrues at a rate of 4.875% per year and is payable semi-annually in arrears on March 1 and September 1. The indentures governing our 4.875% senior notes and 2.500% senior notes contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers. In addition, these indentures require that the 4.875% senior notes and 2.500% senior notes be jointly and severally guaranteed on a senior basis by CBRE Group, Inc. and any domestic subsidiary that guarantees the 2021 Credit Agreement. In addition, our 2021 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2021 Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the 2021 Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the 2021 Credit Agreement), 4.75x) as of the end of each fiscal quarter. Our coverage ratio of consolidated EBITDA to consolidated interest expense was 52.16x for the trailing twelve months ended March 31, 2022, and our leverage ratio of total debt less available cash to consolidated EBITDA was 0.23x as of March 31, 2022. Short-Term Borrowings Revolving Credit Facility The revolving credit facility under the 2021 Credit Agreement allows for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $320.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. Borrowings under the revolving credit facility bear interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.68% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2021 Credit Agreement). The 2021 Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of January 1, 2022, pursuant to an amendment to the 2021 Credit Agreement entered into on December 10, 2021, the applicable fixed rate for revolving borrowings denominated in Euros has been changed to EURIBOR and the applicable fixed rate for revolving borrowings denominated in Sterling has been changed to SONIA (with SONIA-based borrowings subject to a “credit spread adjustment” of an additional 0.0326% in addition to the interest rate spreads described above). As of March 31, 2022, $210.0 million was outstanding under the revolving credit facility, as well as letters of credit totaling $2.0 million. These letters of credit, which reduce the amount we may borrow under the revolving credit facility, were primarily issued in the ordinary course of business. Borrowings under the revolving credit facility bear interest at LIBOR plus 0.90%. Turner & Townsend had a revolving credit facility with a capacity of £80.0 million and a maturity date of May 5, 2022. This was replaced by a new revolving credit facility on March 31, 2022 with a capacity of £120.0 million, with an additional accordion option of £20.0 million and has a maturity date of March 31, 2027. Existing borrowing under this revolving credit facility bears interest at SONIA plus 0.75% and matures on August 12, 2022. Future borrowings bear interest at the SONIA rate plus 0.75% to 1.75%, determined by reference to gearing (as defined in the March 31, 2022 credit agreement). As of March 31, 2022, $26.3 million (£20.0 million) was outstanding under this revolving credit facility. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 4 for additional information. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for our wholly-owned subsidiary Hana. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We monitor our service arrangements to evaluate whether they meet the definition of a lease. Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification March 31, December 31, Assets Operating Operating lease assets $ 1,030,391 $ 1,046,377 Financing Other assets, net 107,942 110,809 Total leased assets $ 1,138,333 $ 1,157,186 Liabilities Current: Operating Operating lease liabilities $ 220,730 $ 232,423 Financing Other current liabilities 37,076 38,103 Non-current: Operating Non-current operating lease liabilities 1,104,812 1,116,562 Financing Other liabilities 70,750 73,257 Total lease liabilities $ 1,433,368 $ 1,460,345 Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Three Months Ended 2022 2021 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,784 $ 24,214 Right-of-use assets obtained in exchange for new financing lease liabilities 9,415 10,448 Other non-cash increases in operating lease right-of-use assets (1) 25,346 5,940 Other non-cash decreases in financing lease right-of-use assets (1) (989) (1,563) _______________________________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements. |
Leases | Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for our wholly-owned subsidiary Hana. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We monitor our service arrangements to evaluate whether they meet the definition of a lease. Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification March 31, December 31, Assets Operating Operating lease assets $ 1,030,391 $ 1,046,377 Financing Other assets, net 107,942 110,809 Total leased assets $ 1,138,333 $ 1,157,186 Liabilities Current: Operating Operating lease liabilities $ 220,730 $ 232,423 Financing Other current liabilities 37,076 38,103 Non-current: Operating Non-current operating lease liabilities 1,104,812 1,116,562 Financing Other liabilities 70,750 73,257 Total lease liabilities $ 1,433,368 $ 1,460,345 Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Three Months Ended 2022 2021 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,784 $ 24,214 Right-of-use assets obtained in exchange for new financing lease liabilities 9,415 10,448 Other non-cash increases in operating lease right-of-use assets (1) 25,346 5,940 Other non-cash decreases in financing lease right-of-use assets (1) (989) (1,563) _______________________________ |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued therefore as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated. In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing Lender Program (DUS Program), to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans with unpaid principal balances of $35.8 billion at March 31, 2022, of which $31.8 billion is subject to such loss sharing arrangements. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of both March 31, 2022 and December 31, 2021, CBRE MCI had $100.0 million of letters of credit under this reserve arrangement and had recorded a liability of approximately $64.6 million and $64.0 million, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $764.2 million (including $326.7 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at March 31, 2022. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the United States in response to the Covid-19 pandemic. The CARES Act, among other things, permits borrowers with government-backed mortgages from Government Sponsored Enterprises who are experiencing a financial hardship to obtain forbearance of their loans. For Fannie Mae loans that we service, CBRE MCI is obligated to advance (for a forbearance period up to 90 consecutive days and potentially longer) scheduled principal and interest payments to Fannie Mae, regardless of whether the borrowers actually make the payments. These advances are reimbursable by Fannie Mae after 120 days. As of March 31, 2022, total advances for principal and interest were $9.3 million, all of which have already been reimbursed. CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. We could potentially be obligated to repurchase any SBL loan originated by CBRE Capital Markets that remains in default for 120 days following the forbearance period, if the default occurred during the first 12 months after origination and such loan had not been earlier securitized. In addition, CBRE Capital Markets may be responsible for a loss not to exceed 10% of the original principal amount of any SBL loan that is not securitized and goes into default after the 12-month repurchase period. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of both March 31, 2022 and December 31, 2021, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $169.6 million as of March 31, 2022, excluding letters of credit for which we have outstanding liabilities already accrued on our consolidated balance sheet related to our subsidiaries’ outstanding reserves for claims under certain insurance programs as well as letters of credit related to operating leases. The CBRE Capital Markets letters of credit totaling $105.0 million as of March 31, 2022 referred to in the preceding paragraphs represented the majority of the $169.6 million outstanding letters of credit as of such date. The remaining letters of credit are primarily executed by us in the ordinary course of business and expire at the end of each of the respective agreements. We had guarantees totaling $46.4 million as of March 31, 2022, excluding guarantees related to pension liabilities, consolidated indebtedness and other obligations for which we have outstanding liabilities already accrued on our consolidated balance sheet, and excluding guarantees related to operating leases. The $46.4 million primarily represents guarantees executed by us in the ordinary course of business, including various guarantees of management and vendor contracts in our operations overseas, which expire at the end of each of the respective agreements. In addition, as of March 31, 2022, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. While there can be no assurance, we do not expect to incur any material losses under these guarantees. An important part of the strategy for our Real Estate Investments business involves investing our capital in certain real estate investments with our clients. These co-investments generally total up to 2.0% of the equity in a particular fund. As of March 31, 2022, we had aggregate commitments of $115.2 million to fund these future co-investments. Additionally, an important part of our Real Estate Investments business strategy is selective investment in real estate projects. We invest on our own account or co-invest with our clients as a principal in unconsolidated real estate subsidiaries. As of March 31, 2022, we had committed to fund $49.7 million of additional capital to unconsolidated subsidiaries and $100.9 million to real estate projects that were consolidated in our financial statements. On April 28th, 2022, Telford Homes, as part of an industry-wide initiative, made a pledge to the U.K.'s Department for Leveling Up, Housing and Communities (DLUHC) to address the necessary life critical fire safety issues in residential buildings over 11 meters that Telford has developed since Telford’s establishment in 2000. Alongside many other housebuilders in the U.K., Telford is taking part in ongoing discussions with the DLUHC to identify an effective solution to the remediation and related funding of life critical fire safety issues to ensure residents and leaseholders are protected. The applicable guidance and legislation surrounding the remediation of these life critical fire safety issues will likely continue to evolve over the coming months. We are estimating the potential impact of the remediation efforts on our financial position. However, given the complexity and uncertainty of the requirements for remediation, we are unable to estimate the potential impact on our overall financial position as of the filing date. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our benefit from income taxes on a consolidated basis was $3.7 million for the three months ended March 31, 2022 as compared to a provision for income taxes of $76.3 million for the three months ended March 31, 2021. The decrease of $80.1 million is primarily related to the recognition of a net discrete tax benefit of approximately $82.2 million attributable to an outside basis difference recognized as a result of legal entity restructuring offset by an increase in our consolidated pre-tax book income. The recognition of the outside tax basis difference generated tax attribute carry forwards that will offset income generated during the current year and be carried forward. Based on our strong history of earnings and the nature of our business we expect to generate sufficient taxable income within the carry forward period and therefore concludes it is more likely than not that we will realize the full tax benefit of the tax attribute. Accordingly, we have not provided any valuation allowance against the deferred tax asset. Our effective tax rate decreased to (1.0)% for the three months ended March 31, 2022 from 22.1% for the three months ended March 31, 2021. Our effective tax rate for the three months ended March 31, 2022 was different than the U.S. federal statutory tax rate of 21.0% primarily due to the recognition of a net discrete tax benefit of approximately $82.2 million attributable to an outside basis difference recognized as a result of legal entity restructuring. As of March 31, 2022 and December 31, 2021, the company had gross unrecognized tax benefits of $331.2 million and $191.9 million, respectively. The increase of $139.3 million primarily resulted from accrual of gross unrecognized tax benefits related to certain legal entity reorganizations. |
Income Per Share and Stockholde
Income Per Share and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share And Stockholders Equity [Abstract] | |
Income Per Share and Stockholders' Equity | Income Per Share and Stockholders' Equity The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Three Months Ended 2022 2021 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 392,297 $ 266,202 Weighted average shares outstanding for basic income per share 331,925,104 335,860,494 Basic income per share attributable to CBRE Group, Inc. stockholders $ 1.18 $ 0.79 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 392,297 $ 266,202 Weighted average shares outstanding for basic income per share 331,925,104 335,860,494 Dilutive effect of contingently issuable shares 5,215,221 3,720,010 Weighted average shares outstanding for diluted income per share 337,140,325 339,580,504 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 1.16 $ 0.78 For the three months ended March 31, 2022 and 2021, 1,349,842 and 481,341, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect. In February 2019, our board of directors authorized a program for the repurchase of up to $300.0 million of our common stock over three years, effective March 11, 2019. In both August and November 2019, our board of directors authorized an additional $100.0 million under our program, bringing the total authorized repurchase amount under the program to a total of $500.0 million. During the year ended December 31, 2021, we repurchased 3,122,054 shares of our common stock with an average price of $92.03 per share using cash on hand for $287.3 million. During the three months ended March 31, 2022, we repurchased an additional 615,108 shares of our common stock with an average price of $101.88 per share using cash on hand for $62.7 million, fully utilizing the remaining capacity under this program. On November 19, 2021, our board of directors authorized a new program for the repurchase of up to $2.0 billion of our common stock over five years (the 2021 program). During the year ended December 31, 2021, we repurchased 832,315 shares of our common stock with an average price of $102.82 per share using cash on hand for $85.6 million. During the three months ended March 31, 2022, we repurchased an additional 3,563,278 shares of our common stock with an average price of $92.10 per share using cash on hand for $328.2 million. As of March 31, 2022, we had approximately $1.59 billion of capacity remaining under the 2021 program. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue with customers in accordance with FASB ASC Topic, “ Revenue from Contracts with Customers ” (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services. Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Three Months Ended March 31, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,800,688 $ — $ — $ 3,800,688 Advisory leasing 772,722 — — — 772,722 Advisory sales 619,827 — — — 619,827 Property management 455,872 — — (4,888) 450,984 Project management — 1,004,928 — — 1,004,928 Valuation 181,142 — — — 181,142 Commercial mortgage origination (1) 73,890 — — — 73,890 Loan servicing (2) 14,008 — — — 14,008 Investment management — — 150,567 — 150,567 Development services — — 99,655 — 99,655 Topic 606 Revenue 2,117,461 4,805,616 250,222 (4,888) 7,168,411 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 70,980 — — — 70,980 Loan servicing 60,007 — — — 60,007 Development services (3) — — 33,535 — 33,535 Total Out of Scope of Topic 606 Revenue 130,987 — 33,535 — 164,522 Total Revenue $ 2,248,448 $ 4,805,616 $ 283,757 $ (4,888) $ 7,332,933 Three Months Ended March 31, 2021 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,479,501 $ — $ — $ 3,479,501 Advisory leasing 520,216 — — — 520,216 Advisory sales 392,312 — — — 392,312 Property management 427,188 — — (6,145) 421,043 Project management — 546,382 — — 546,382 Valuation 159,590 — — — 159,590 Commercial mortgage origination (1) 33,751 — — — 33,751 Loan servicing (2) 15,388 — — — 15,388 Investment management — — 132,071 — 132,071 Development services — — 78,178 — 78,178 Topic 606 Revenue 1,548,445 4,025,883 210,249 (6,145) 5,778,432 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 106,113 — — — 106,113 Loan servicing 53,454 — — — 53,454 Development services (3) — — 880 — 880 Total Out of Scope of Topic 606 Revenue 159,567 — 880 — 160,447 Total Revenue $ 1,708,012 $ 4,025,883 $ 211,129 $ (6,145) $ 5,938,879 _______________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. Contract Assets and Liabilities We had contract assets totaling $486.4 million ($352.1 million of which was current) and $474.4 million ($338.7 million of which was current) as of March 31, 2022 and December 31, 2021, respectively. We had contract liabilities totaling $303.7 million ($295.6 million of which was current) and $288.9 million ($280.7 million of which was current) as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, we recognized revenue of $77.5 million that was included in the contract liability balance at December 31, 2021. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | Segments We organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. As part of the realignment of our organizational structure and performance measure to how our chief operating decision maker (CODM) views the company, we created a “Corporate, other and elimination” segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the CODM for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amount attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions. This metric excludes the impact of corporate overhead as these costs are now reported under Corporate and other. During fourth quarter of 2021, we changed the definition of SOP to include net income (loss) attributable to non-controlling interest to provide a more meaningful view of the segment’s performance and related margins and to conform to the CODM’s view of the business segments. Prior period segment operating profit for our reportable segments have been recast to conform to this change. Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended 2022 2021 Revenue Advisory Services $ 2,248,448 $ 1,708,012 Global Workplace Solutions 4,805,616 4,025,883 Real Estate Investments 283,757 211,129 Corporate, other and eliminations (4,888) (6,145) Total revenue $ 7,332,933 $ 5,938,879 Segment operating profit Advisory Services $ 465,654 $ 332,579 Global Workplace Solutions 202,736 152,183 Real Estate Investments 167,052 63,067 Total reportable segment operating profit $ 835,442 $ 547,829 Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Three Months Ended 2022 2021 Net income attributable to CBRE Group, Inc. $ 392,297 $ 266,202 Net income attributable to non-controlling interests 3,974 2,775 Net income 396,271 268,977 Adjustments to increase (decrease) net income: Depreciation and amortization 149,032 122,078 Asset impairments 10,351 — Interest expense, net of interest income 12,826 10,106 (Benefit from) provision for income taxes (3,738) 76,327 Carried interest incentive compensation expense to align with the timing of associated revenue 22,856 15,332 Impact of fair value adjustments to real estate assets acquired in the (1,696) 1,099 Costs incurred related to legal entity restructuring 1,676 — Integration and other costs related to acquisitions 8,121 — Corporate and other loss, including eliminations 239,743 53,910 Total reportable segment operating profit $ 835,442 $ 547,829 Our CODM is not provided with total asset information by segment and accordingly, does not measure or allocate total assets on a segment basis. As a result, we have not disclosed any asset information by segment. Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended 2022 2021 Revenue United States $ 4,131,397 $ 3,348,859 United Kingdom 985,999 777,044 All other countries 2,215,537 1,812,976 Total revenue $ 7,332,933 $ 5,938,879 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 and the war in Ukraine may have on our business. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Pending Adoption | Recently Adopted Accounting Pronouncements In July 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-05, “Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842).” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We adopted ASU 2021-05 in the first quarter of 2022 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, “Disclosures by Business Entities about Government Assistance.” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We adopted ASU 2021-10 prospectively in the first quarter of 2022 and do not expect it to have a material impact on our annual disclosures. Recent Accounting Pronouncements Pending Adoption In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” and ASU 2021-01, “ Reference Rate Reform: Scope, ” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2022, the FASB issued ASU 2022-01, " Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. " This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2022, the FASB issued ASU 2022-02, " Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures. " This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restrucuturings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Schedule of Warehouse Receivables | A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2021 $ 1,303,717 Origination of mortgage loans 3,221,312 Gains (premiums on loan sales) 8,134 Proceeds from sale of mortgage loans: Sale of mortgage loans (3,327,950) Cash collections of premiums on loan sales (8,134) Proceeds from sale of mortgage loans (3,336,084) Net decrease in mortgage servicing rights included in warehouse receivables (2,279) Ending balance at March 31, 2022 $ 1,194,800 |
Summary of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/17/2022 daily floating rate SOFR rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 840,732 $ 1,335,000 $ 742,124 JP Morgan 10/17/2022 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15,000 7,519 15,000 4,326 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 109,961 650,000 133,084 TD Bank, N.A. (TD Bank) (3) 7/15/2022 daily floating rate LIBOR plus 1.30% 800,000 85,873 800,000 217,672 Bank of America, N.A. (BofA) (4) 5/25/2022 daily floating rate SOFR rate plus 1.30%, with a SOFR adjustment rate of 0.11% 350,000 93,446 350,000 178,600 BofA (5) 5/25/2022 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.11% 250,000 — 250,000 — MUFG Union Bank, N.A. (Union Bank) (6) 6/28/2022 daily floating rate LIBOR plus 1.30% 200,000 34,594 200,000 1,645 $ 3,600,000 $ 1,172,125 $ 3,600,000 $ 1,277,451 _______________________________ (1) Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,335.0 million. This facility has a revised maturity date of October 17, 2022 and a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, with a SOFR adjustment rate of 0.05%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%, with a SOFR adjustment rate of 0.05%. (2) Effective January 15, 2021, the maximum facility was increased to $650.0 million. (3) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of March 31, 2022, the uncommitted $400.0 million temporary line of credit was not utilized. (4) The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.75%, with a LIBOR floor of 0.75%. Effective January 1, 2022, daily floating rate LIBOR was replaced with daily floating rate SOFR, with an adjustment rate of 0.11%. As of March 31, 2022, the sublimit borrowing has not been utilized. (5) Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating SOFR plus 1.30%, with a SOFR adjustment rate of 0.11%, and a maturity date of May 25, 2022. (6) Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30%, removing the LIBOR floor, and a maturity date of June 28, 2022. |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of March 31, 2022 and December 31, 2021, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, Investments in unconsolidated subsidiaries $ 105,169 $ 109,530 Other current assets — 4,219 Co-investment commitments 87,156 90,328 Maximum exposure to loss $ 192,325 $ 204,077 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (dollars in thousands): As of March 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,832 $ — $ — $ 6,832 Debt securities issued by U.S. federal agencies — 10,146 — 10,146 Corporate debt securities — 47,806 — 47,806 Asset-backed securities — 3,193 — 3,193 Collateralized mortgage obligations — 592 — 592 Total available for sale debt securities 6,832 61,737 — 68,569 Equity securities 42,488 — — 42,488 Investments in unconsolidated subsidiaries 163,460 14,965 367,855 546,280 Warehouse receivables — 1,194,800 — 1,194,800 Total assets at fair value $ 212,780 $ 1,271,502 $ 367,855 $ 1,852,137 Liabilities Other liabilities — — 1,322 1,322 Total liabilities at fair value $ — $ — $ 1,322 $ 1,322 As of December 31, 2021 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,002 $ — $ — $ 7,002 Debt securities issued by U.S. federal agencies — 9,276 — 9,276 Corporate debt securities — 50,897 — 50,897 Asset-backed securities — 3,428 — 3,428 Collateralized mortgage obligations — 725 — 725 Total available for sale debt securities 7,002 64,326 — 71,328 Equity securities 69,880 — — 69,880 Investments in unconsolidated subsidiaries 229,900 23,741 406,690 660,331 Warehouse receivables — 1,303,717 — 1,303,717 Total assets at fair value $ 306,782 $ 1,391,784 $ 406,690 $ 2,105,256 Liabilities Other liabilities — — 10,700 10,700 Total liabilities at fair value $ — $ — $ 10,700 $ 10,700 |
Schedule of Reconciliation for Assets Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2021 $ 406,690 $ 10,700 Transfer in — — Net change in fair value (38,835) — Purchases/ Additions — (9,378) Balance as of March 31, 2022 $ 367,855 $ 1,322 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income |
Schedule of Reconciliation for Liabilities Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2021 $ 406,690 $ 10,700 Transfer in — — Net change in fair value (38,835) — Purchases/ Additions — (9,378) Balance as of March 31, 2022 $ 367,855 $ 1,322 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income |
Fair Value Measurement Inputs and Valuation Techniques | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments: Valuation Technique Unobservable Input Range Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 14% - 25% Monte Carlo Volatility 69 % Risk free interest rate 2.4 % Other liabilities Discounted cash flow Discount rate 25.0 % |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Subsidiaries | The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands): Investment type March 31, 2022 December 31, 2021 Real estate investments $ 502,983 $ 453,813 Investment in Altus Power, Inc.: Class A common stock (22 million shares) 163,460 229,900 Alignment shares (1) 73,016 114,727 Private placement warrants (2) 14,965 23,741 Subtotal 251,441 368,368 Other (3) 369,915 373,907 Total investment in unconsolidated subsidiaries $ 1,124,339 $ 1,196,088 _______________ (1) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2022 (the first measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, which were issued on April 11, 2022. (2) These warrants entitle us to purchase one share of Altus Class A common stock at $11.00 per share, subject to adjustment. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended 2022 2021 Revenue $ 581,115 $ 555,856 Operating income 273,693 275,462 Net income (1) 1,452,847 368,217 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): March 31, December 31, Senior term loan, with interest of 0.75% plus EURIBOR adj, due in full at maturity on December 20, 2023 $ 442,625 $ 455,166 4.875% senior notes due in 2026, net of unamortized discount 598,025 597,911 2.500% senior notes due in 2031, net of unamortized discount 492,961 492,782 Total long-term debt 1,533,611 1,545,859 Less: unamortized debt issuance costs 7,399 7,736 Total long-term debt, net of current maturities $ 1,526,212 $ 1,538,123 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification March 31, December 31, Assets Operating Operating lease assets $ 1,030,391 $ 1,046,377 Financing Other assets, net 107,942 110,809 Total leased assets $ 1,138,333 $ 1,157,186 Liabilities Current: Operating Operating lease liabilities $ 220,730 $ 232,423 Financing Other current liabilities 37,076 38,103 Non-current: Operating Non-current operating lease liabilities 1,104,812 1,116,562 Financing Other liabilities 70,750 73,257 Total lease liabilities $ 1,433,368 $ 1,460,345 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Three Months Ended 2022 2021 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,784 $ 24,214 Right-of-use assets obtained in exchange for new financing lease liabilities 9,415 10,448 Other non-cash increases in operating lease right-of-use assets (1) 25,346 5,940 Other non-cash decreases in financing lease right-of-use assets (1) (989) (1,563) _______________________________ |
Income Per Share and Stockhol_2
Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share And Stockholders Equity [Abstract] | |
Calculations of Basic and Diluted Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Three Months Ended 2022 2021 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 392,297 $ 266,202 Weighted average shares outstanding for basic income per share 331,925,104 335,860,494 Basic income per share attributable to CBRE Group, Inc. stockholders $ 1.18 $ 0.79 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 392,297 $ 266,202 Weighted average shares outstanding for basic income per share 331,925,104 335,860,494 Dilutive effect of contingently issuable shares 5,215,221 3,720,010 Weighted average shares outstanding for diluted income per share 337,140,325 339,580,504 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 1.16 $ 0.78 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Three Months Ended March 31, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,800,688 $ — $ — $ 3,800,688 Advisory leasing 772,722 — — — 772,722 Advisory sales 619,827 — — — 619,827 Property management 455,872 — — (4,888) 450,984 Project management — 1,004,928 — — 1,004,928 Valuation 181,142 — — — 181,142 Commercial mortgage origination (1) 73,890 — — — 73,890 Loan servicing (2) 14,008 — — — 14,008 Investment management — — 150,567 — 150,567 Development services — — 99,655 — 99,655 Topic 606 Revenue 2,117,461 4,805,616 250,222 (4,888) 7,168,411 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 70,980 — — — 70,980 Loan servicing 60,007 — — — 60,007 Development services (3) — — 33,535 — 33,535 Total Out of Scope of Topic 606 Revenue 130,987 — 33,535 — 164,522 Total Revenue $ 2,248,448 $ 4,805,616 $ 283,757 $ (4,888) $ 7,332,933 Three Months Ended March 31, 2021 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,479,501 $ — $ — $ 3,479,501 Advisory leasing 520,216 — — — 520,216 Advisory sales 392,312 — — — 392,312 Property management 427,188 — — (6,145) 421,043 Project management — 546,382 — — 546,382 Valuation 159,590 — — — 159,590 Commercial mortgage origination (1) 33,751 — — — 33,751 Loan servicing (2) 15,388 — — — 15,388 Investment management — — 132,071 — 132,071 Development services — — 78,178 — 78,178 Topic 606 Revenue 1,548,445 4,025,883 210,249 (6,145) 5,778,432 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 106,113 — — — 106,113 Loan servicing 53,454 — — — 53,454 Development services (3) — — 880 — 880 Total Out of Scope of Topic 606 Revenue 159,567 — 880 — 160,447 Total Revenue $ 1,708,012 $ 4,025,883 $ 211,129 $ (6,145) $ 5,938,879 _______________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended 2022 2021 Revenue Advisory Services $ 2,248,448 $ 1,708,012 Global Workplace Solutions 4,805,616 4,025,883 Real Estate Investments 283,757 211,129 Corporate, other and eliminations (4,888) (6,145) Total revenue $ 7,332,933 $ 5,938,879 Segment operating profit Advisory Services $ 465,654 $ 332,579 Global Workplace Solutions 202,736 152,183 Real Estate Investments 167,052 63,067 Total reportable segment operating profit $ 835,442 $ 547,829 |
Reconciliation of Reportable Segment Operating Profit to Net Income | Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Three Months Ended 2022 2021 Net income attributable to CBRE Group, Inc. $ 392,297 $ 266,202 Net income attributable to non-controlling interests 3,974 2,775 Net income 396,271 268,977 Adjustments to increase (decrease) net income: Depreciation and amortization 149,032 122,078 Asset impairments 10,351 — Interest expense, net of interest income 12,826 10,106 (Benefit from) provision for income taxes (3,738) 76,327 Carried interest incentive compensation expense to align with the timing of associated revenue 22,856 15,332 Impact of fair value adjustments to real estate assets acquired in the (1,696) 1,099 Costs incurred related to legal entity restructuring 1,676 — Integration and other costs related to acquisitions 8,121 — Corporate and other loss, including eliminations 239,743 53,910 Total reportable segment operating profit $ 835,442 $ 547,829 |
Summary of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended 2022 2021 Revenue United States $ 4,131,397 $ 3,348,859 United Kingdom 985,999 777,044 All other countries 2,215,537 1,812,976 Total revenue $ 7,332,933 $ 5,938,879 |
Turner & Townsend Acquisition -
Turner & Townsend Acquisition - Narrative (Details) - Turner & Townsend Holdings Limited | Nov. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Percentage of interest acquired | 60.00% |
Goodwill, amount deductible for tax purposes | $ 0 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Narrative (Detail) - Warehouse Agreement Borrowings $ in Billions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Short-term Debt [Line Items] | |
Period of repayment for warehouse lines of credit | 1 month |
Maximum lines of credit principal outstanding | $ 1.5 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Warehouse Receivables Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Warehouse Receivables Activity [Roll Forward] | ||
Beginning balance | $ 1,303,717 | |
Origination of mortgage loans | 3,221,312 | $ 3,909,261 |
Gains (premiums on loan sales) | 8,134 | |
Proceeds from sale of mortgage loans: | ||
Sale of mortgage loans | (3,327,950) | |
Cash collections of premiums on loan sales | (8,134) | |
Proceeds from sale of mortgage loans | (3,336,084) | $ (4,643,685) |
Net decrease in mortgage servicing rights included in warehouse receivables | (2,279) | |
Ending balance | $ 1,194,800 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Detail) - USD ($) | Oct. 18, 2021 | Jun. 30, 2021 | Jun. 28, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 15, 2021 | Jul. 01, 2020 |
Short-term Debt [Line Items] | |||||||
Carrying Value | $ 1,172,125,000 | $ 1,277,451,000 | |||||
Revolving credit facility | $ 210,000,000 | 0 | |||||
Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.11% | ||||||
Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.11% | ||||||
Warehouse Agreement Borrowings | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 3,600,000,000 | 3,600,000,000 | |||||
Carrying Value | 1,172,125,000 | 1,277,451,000 | |||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 1,335,000,000 | 1,335,000,000 | 1,335,000,000 | ||||
Carrying Value | $ 840,732,000 | 742,124,000 | |||||
Line of credit over LIBOR rate | 1.60% | ||||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.05% | 1.60% | |||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.05% | 0.05% | |||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 15,000,000 | 15,000,000 | |||||
Carrying Value | $ 7,519,000 | 4,326,000 | |||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 2.75% | ||||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.05% | ||||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Fannie Mae Multifamily ASAP Program, Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 650,000,000 | 650,000,000 | $ 650,000,000 | ||||
Carrying Value | $ 109,961,000 | 133,084,000 | |||||
Line of credit, LIBOR floor rate | 0.25% | ||||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Fannie Mae Multifamily ASAP Program, Pricing | London Interbank Offered Rate (LIBOR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.45% | ||||||
Warehouse Agreement Borrowings | TD Bank | TD Bank, Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 800,000,000 | 800,000,000 | $ 400,000,000 | ||||
Carrying Value | 85,873,000 | 217,672,000 | |||||
Revolving credit facility | $ 400,000,000 | ||||||
Warehouse Agreement Borrowings | TD Bank | TD Bank, Pricing | London Interbank Offered Rate (LIBOR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.30% | ||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 350,000,000 | 350,000,000 | |||||
Carrying Value | $ 93,446,000 | 178,600,000 | |||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.30% | ||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.11% | ||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | London Interbank Offered Rate (LIBOR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.30% | ||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Sublimit Borrowing Agreement | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 100,000,000 | ||||||
Line of credit over LIBOR rate | 1.75% | ||||||
Line of credit, LIBOR floor rate | 0.75% | ||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 250,000,000 | $ 250,000,000 | 250,000,000 | ||||
Carrying Value | $ 0 | 0 | |||||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.30% | 1.30% | |||||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | Secured Overnight Financing Rate (SOFR) Adjustment | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 0.11% | ||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | |||||||
Short-term Debt [Line Items] | |||||||
Maximum Facility Size | $ 200,000,000 | 200,000,000 | |||||
Carrying Value | $ 34,594,000 | $ 1,645,000 | |||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | London Interbank Offered Rate (LIBOR) | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit over LIBOR rate | 1.30% | 1.30% |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 105,169 | $ 109,530 |
Other current assets | 0 | 4,219 |
Co-investment commitments | 87,156 | 90,328 |
Maximum exposure to loss | $ 192,325 | $ 204,077 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Investments in unconsolidated subsidiaries | $ 713,871 | $ 813,031 |
Warehouse receivables | 1,194,800 | 1,303,717 |
Recurring | ||
Assets | ||
Available for sale debt securities | 68,569 | 71,328 |
Equity securities | 42,488 | 69,880 |
Investments in unconsolidated subsidiaries | 546,280 | 660,331 |
Warehouse receivables | 1,194,800 | 1,303,717 |
Total assets at fair value | 1,852,137 | 2,105,256 |
Liabilities | ||
Other liabilities | 1,322 | 10,700 |
Total liabilities at fair value | 1,322 | 10,700 |
Recurring | Level 1 | ||
Assets | ||
Available for sale debt securities | 6,832 | 7,002 |
Equity securities | 42,488 | 69,880 |
Investments in unconsolidated subsidiaries | 163,460 | 229,900 |
Warehouse receivables | 0 | 0 |
Total assets at fair value | 212,780 | 306,782 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Available for sale debt securities | 61,737 | 64,326 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 14,965 | 23,741 |
Warehouse receivables | 1,194,800 | 1,303,717 |
Total assets at fair value | 1,271,502 | 1,391,784 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 367,855 | 406,690 |
Warehouse receivables | 0 | 0 |
Total assets at fair value | 367,855 | 406,690 |
Liabilities | ||
Other liabilities | 1,322 | 10,700 |
Total liabilities at fair value | 1,322 | 10,700 |
Recurring | U.S. treasury securities | ||
Assets | ||
Available for sale debt securities | 6,832 | 7,002 |
Recurring | U.S. treasury securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 6,832 | 7,002 |
Recurring | U.S. treasury securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | U.S. treasury securities | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | ||
Assets | ||
Available for sale debt securities | 10,146 | 9,276 |
Recurring | Debt securities issued by U.S. federal agencies | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | Level 2 | ||
Assets | ||
Available for sale debt securities | 10,146 | 9,276 |
Recurring | Debt securities issued by U.S. federal agencies | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | ||
Assets | ||
Available for sale debt securities | 47,806 | 50,897 |
Recurring | Corporate debt securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 47,806 | 50,897 |
Recurring | Corporate debt securities | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Assets | ||
Available for sale debt securities | 3,193 | 3,428 |
Recurring | Asset-backed securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 3,193 | 3,428 |
Recurring | Asset-backed securities | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Collateralized mortgage obligations | ||
Assets | ||
Available for sale debt securities | 592 | 725 |
Recurring | Collateralized mortgage obligations | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 2 | ||
Assets | ||
Available for sale debt securities | 592 | 725 |
Recurring | Collateralized mortgage obligations | Level 3 | ||
Assets | ||
Available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Mar. 18, 2021 | Aug. 13, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments in unconsolidated subsidiaries at fair value using NAV | $ 167,600 | $ 152,700 | |||
Asset impairments | 10,351 | $ 0 | |||
Notes payable on real estate | $ 53,600 | 48,200 | |||
4.875% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate of long-term debt | 4.875% | 4.875% | |||
2.5% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate of long-term debt | 2.50% | 2.50% | |||
Estimated Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior term loans | $ 440,400 | 451,800 | |||
Estimated Fair Value | 4.875% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 628,100 | 671,700 | |||
Estimated Fair Value | 2.5% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 445,500 | 502,100 | |||
Actual Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior term loans | 442,100 | 454,500 | |||
Actual Carrying Value | 4.875% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 595,700 | 595,500 | |||
Actual Carrying Value | 2.5% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | $ 488,400 | $ 488,100 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation for Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Investment in Unconsolidated Subsidiaries | |
Beginning balance | $ 406,690 |
Transfer in | 0 |
Net change in fair value | (38,835) |
Purchases/ Additions | 0 |
Ending balance | 367,855 |
Other liabilities | |
Beginning balance | 10,700 |
Transfer in | 0 |
Net change in fair value | 0 |
Purchases/ Additions | (9,378) |
Ending balance | $ 1,322 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) | Mar. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other liabilities, measurement input | 0.250 |
Discount rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.14 |
Discount rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.25 |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.69 |
Risk free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.024 |
Investments in Unconsolidated_3
Investments in Unconsolidated Subsidiaries - Additional Information (Detail) | Mar. 31, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries - Investments (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 11, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 1,124,339 | $ 1,196,088 | |
Real estate investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | 502,983 | 453,813 | |
Class A common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 163,460 | 229,900 | |
Common stock shares (in shares) | 22,000,000 | ||
Class A common stock | Subsequent Event | |||
Schedule of Equity Method Investments [Line Items] | |||
Shares converted to Class A common stock (in shares) | 2,011 | ||
Alignment shares | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 73,016 | 114,727 | |
Alignment shares | Subsequent Event | |||
Schedule of Equity Method Investments [Line Items] | |||
Alignment shares converted (in shares) | 201,250 | ||
Private placement warrants | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 14,965 | 23,741 | |
Warrants, exercise price (in usd per share) | $ 11 | ||
Altus Power, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 251,441 | 368,368 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 369,915 | $ 373,907 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 7,332,933 | $ 5,938,879 |
Operating income | 376,952 | 269,084 |
Net income | 396,271 | 268,977 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 581,115 | 555,856 |
Operating income | 273,693 | 275,462 |
Net income | $ 1,452,847 | $ 368,217 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 18, 2021 | Aug. 13, 2015 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,533,611 | $ 1,545,859 | ||
Less: unamortized debt issuance costs | 7,399 | 7,736 | ||
Long-term debt, net of current maturities | $ 1,526,212 | 1,538,123 | ||
Senior secured term loans | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | |||
Total long-term debt | $ 442,625 | 455,166 | ||
4.875% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.875% | 4.875% | ||
Total long-term debt | $ 598,025 | 597,911 | ||
2.5% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.50% | 2.50% | ||
Total long-term debt | $ 492,961 | $ 492,782 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Long-Term Debt - Narrative (Detail) | Mar. 04, 2019USD ($) | Aug. 13, 2015USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Jul. 09, 2021USD ($) | Mar. 18, 2021USD ($) |
2021 Credit Agreement | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2.00% | |||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | |||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | |||||
Coverage ratio of EBITDA to total interest expense | 52.16 | 52.16 | ||||
Leverage ratio of total debt less available cash to EBITDA | 0.23 | 0.23 | ||||
2.5% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 500,000,000 | |||||
Interest rate of long-term debt | 2.50% | 2.50% | 2.50% | |||
Principal amount of debt issued, percentage of face value | 98.451% | |||||
4.875% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 600,000,000 | |||||
Interest rate of long-term debt | 4.875% | 4.875% | 4.875% | |||
Redemption price percentage | 99.24% | |||||
Tranche A term loan facility | 2019 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Repayments on line of credit | $ 300,000,000 | |||||
Tranche A term loan facility | 2021 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | € | € 300,000,000 | |||||
Revolving credit facility | 2019 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Increase in revolving credit commitment | $ 350,000,000 | |||||
Revolving credit facility | 2021 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | |||||
Euro term loan facility | 2021 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | € | € 400,000,000 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Short Term Borrowings - Narrative (Detail) € in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Mar. 30, 2022EUR (€) | Jan. 01, 2022 | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 210,000,000 | $ 0 | |||
Letters of credit outstanding amount | 169,600,000 | ||||
2021 Credit Agreement | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | 3,150,000,000 | ||||
Credit spread adjustment rate | 0.0326% | ||||
Revolving credit facility | 210,000,000 | ||||
Letters of credit outstanding amount | $ 2,000,000 | ||||
2021 Credit Agreement | Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Line of credit over LIBOR rate | 0.90% | ||||
2021 Credit Agreement | Revolving credit facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement applicable fixed rate spread | 0.68% | ||||
Credit Agreement applicable daily rate spread | 0.00% | ||||
2021 Credit Agreement | Revolving credit facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement applicable fixed rate spread | 1.075% | ||||
Credit Agreement applicable daily rate spread | 0.075% | ||||
2021 Credit Agreement | Canadian, Australian and New Zealand subsidiaries | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | $ 200,000,000 | ||||
2021 Credit Agreement | U.K. subsidiaries | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | 320,000,000 | ||||
2022 Credit Agreement | Revolving credit facility | Turner & Townsend Holdings Limited | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | € | € 80 | ||||
2027 Credit Agreement | Revolving credit facility | Turner & Townsend Holdings Limited | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | € | € 120 | ||||
Revolving credit facility | $ 26,300,000 | 20 | |||
Additional accordion option | € | € 20 | ||||
2027 Credit Agreement | Revolving credit facility | Turner & Townsend Holdings Limited | SONIA | |||||
Debt Instrument [Line Items] | |||||
Line of credit over LIBOR rate | 0.75% | ||||
2027 Credit Agreement | Revolving credit facility | Minimum | Turner & Townsend Holdings Limited | SONIA | |||||
Debt Instrument [Line Items] | |||||
Line of credit over LIBOR rate | 0.75% | ||||
2027 Credit Agreement | Revolving credit facility | Maximum | Turner & Townsend Holdings Limited | SONIA | |||||
Debt Instrument [Line Items] | |||||
Line of credit over LIBOR rate | 1.75% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Operating | $ 1,030,391 | $ 1,046,377 |
Financing | 107,942 | 110,809 |
Total leased assets | $ 1,138,333 | $ 1,157,186 |
Current: | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating | $ 220,730 | $ 232,423 |
Financing | $ 37,076 | $ 38,103 |
Non-current: | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating | $ 1,104,812 | $ 1,116,562 |
Financing | 70,750 | 73,257 |
Total lease liabilities | $ 1,433,368 | $ 1,460,345 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 14,784 | $ 24,214 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 9,415 | 10,448 |
Other non-cash increases in operating lease right-of-use assets | 25,346 | 5,940 |
Other non-cash decreases in financing lease right-of-use assets | $ (989) | $ (1,563) |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 35,800 | |
Letters of credit outstanding | 169.6 | |
Accrued loan loss | 64.6 | $ 64 |
Assets available for recourse | 764.2 | |
Guarantees total | $ 46.4 | |
Co-investments typically range | 2.00% | |
Commitments to investment in future real estate investment | $ 115.2 | |
Commitments to investment in unconsolidated real estate subsidiary | 49.7 | |
Commitments to investments in consolidated projects | 100.9 | |
Forbearance Of Loans, CARES Act | ||
Loss Contingencies [Line Items] | ||
Advances for principal and interest | 9.3 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 326.7 | |
Funded loans subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 31,800 | |
Funded loans not subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 100 | |
SBL Program | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 5 | $ 5 |
Percentage of maximum original principal amount loan loss | 10.00% | |
CBRE Capital Markets | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 105 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
(Benefit from) provision for income taxes | $ (3,738) | $ 76,327 | |
Increase (decrease) in income taxes | (80,100) | ||
Discrete net income tax expense (benefit) | $ (82,200) | $ (82,200) | |
Effective tax rate | (1.00%) | 22.10% | |
Federal statutory tax rate | 21.00% | ||
Unrecognized tax benefits | $ 331,200 | $ 191,900 | |
Increase (decrease) in unrecognized tax benefits | $ 139,300 |
Income Per Share and Stockhol_3
Income Per Share and Stockholders' Equity - Calculations of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic Income Per Share | ||
Net income attributable to CBRE Group, Inc. stockholders | $ 392,297 | $ 266,202 |
Weighted average shares outstanding for basic income per share (in shares) | 331,925,104 | 335,860,494 |
Basic income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 1.18 | $ 0.79 |
Diluted Income Per Share | ||
Net income attributable to CBRE Group, Inc. stockholders | $ 392,297 | $ 266,202 |
Weighted average shares outstanding for basic income per share (in shares) | 331,925,104 | 335,860,494 |
Dilutive effect of contingently issuable shares (in shares) | 5,215,221 | 3,720,010 |
Weighted average shares outstanding for diluted income per share (in shares) | 337,140,325 | 339,580,504 |
Diluted income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 1.16 | $ 0.78 |
Income Per Share and Stockhol_4
Income Per Share and Stockholders' Equity - Narrative (Detail) - USD ($) | Nov. 19, 2021 | Feb. 28, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Nov. 30, 2019 | Aug. 31, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Shares repurchased during the period, value | $ 390,863,000 | $ 64,142,000 | |||||
Capacity remaining under current stock repurchase programs | $ 1,590,000,000 | ||||||
March 2019 Repurchase Program | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Authorized share repurchase amount | $ 300,000,000 | $ 500,000,000 | |||||
Authorized share repurchase term | 3 years | ||||||
Authorized share additional repurchase amount | $ 100,000,000 | $ 100,000,000 | |||||
Shares repurchased during the period (in shares) | 615,108 | 3,122,054 | |||||
Average price per share (in dollars per share) | $ 101.88 | $ 92.03 | |||||
Shares repurchased during the period, value | $ 62,700,000 | $ 287,300,000 | |||||
November 2021 Repurchase Program | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Authorized share repurchase amount | $ 2,000,000,000 | ||||||
Authorized share repurchase term | 5 years | ||||||
Shares repurchased during the period (in shares) | 3,563,278 | 832,315 | |||||
Average price per share (in dollars per share) | $ 92.10 | $ 102.82 | |||||
Shares repurchased during the period, value | $ 328,200,000 | $ 85,600,000 | |||||
Contingently Issuable Shares | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Shares excluded in computation of diluted income per share (in shares) | 1,349,842 | 481,341 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | $ 7,168,411 | $ 5,778,432 |
Total Out of Scope of Topic 606 Revenue | 164,522 | 160,447 |
Total Revenue | 7,332,933 | 5,938,879 |
Corporate, other and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | (4,888) | (6,145) |
Total Out of Scope of Topic 606 Revenue | 0 | 0 |
Total Revenue | (4,888) | (6,145) |
Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 2,117,461 | 1,548,445 |
Total Out of Scope of Topic 606 Revenue | 130,987 | 159,567 |
Total Revenue | 2,248,448 | 1,708,012 |
Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 4,805,616 | 4,025,883 |
Total Out of Scope of Topic 606 Revenue | 0 | 0 |
Total Revenue | 4,805,616 | 4,025,883 |
Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 250,222 | 210,249 |
Total Out of Scope of Topic 606 Revenue | 33,535 | 880 |
Total Revenue | 283,757 | 211,129 |
Facilities management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 3,800,688 | 3,479,501 |
Facilities management | Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 3,800,688 | 3,479,501 |
Advisory leasing | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 772,722 | 520,216 |
Advisory leasing | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 772,722 | 520,216 |
Advisory sales | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 619,827 | 392,312 |
Advisory sales | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 619,827 | 392,312 |
Property management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 450,984 | 421,043 |
Property management | Corporate, other and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | (4,888) | (6,145) |
Property management | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 455,872 | 427,188 |
Project management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 1,004,928 | 546,382 |
Project management | Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 1,004,928 | 546,382 |
Valuation | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 181,142 | 159,590 |
Valuation | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 181,142 | 159,590 |
Commercial mortgage origination | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 73,890 | 33,751 |
Total Out of Scope of Topic 606 Revenue | 70,980 | 106,113 |
Commercial mortgage origination | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 73,890 | 33,751 |
Total Out of Scope of Topic 606 Revenue | 70,980 | 106,113 |
Loan servicing | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 14,008 | 15,388 |
Total Out of Scope of Topic 606 Revenue | 60,007 | 53,454 |
Loan servicing | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 14,008 | 15,388 |
Total Out of Scope of Topic 606 Revenue | 60,007 | 53,454 |
Investment management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 150,567 | 132,071 |
Investment management | Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 150,567 | 132,071 |
Development services | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 99,655 | 78,178 |
Total Out of Scope of Topic 606 Revenue | 33,535 | 880 |
Development services | Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 99,655 | 78,178 |
Total Out of Scope of Topic 606 Revenue | $ 33,535 | $ 880 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 486,400 | $ 474,400 |
Contract assets, current | 352,064 | 338,749 |
Contract liabilities | 303,700 | 288,900 |
Contract liabilities, current | 295,642 | $ 280,659 |
Recognized revenue included in contract liability | $ 77,500 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 7,332,933 | $ 5,938,879 |
Total reportable segment operating profit | 835,442 | 547,829 |
Corporate, other and eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (4,888) | (6,145) |
Total reportable segment operating profit | 239,743 | 53,910 |
Advisory Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,248,448 | 1,708,012 |
Total reportable segment operating profit | 465,654 | 332,579 |
Global Workplace Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,805,616 | 4,025,883 |
Total reportable segment operating profit | 202,736 | 152,183 |
Real Estate Investments | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 283,757 | 211,129 |
Total reportable segment operating profit | $ 167,052 | $ 63,067 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Reportable Segment Operating Profit to Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net income attributable to CBRE Group, Inc. | $ 392,297 | $ 266,202 |
Less: Net income attributable to non-controlling interests | 3,974 | 2,775 |
Net income | 396,271 | 268,977 |
Adjustments to increase (decrease) net income: | ||
Depreciation and amortization | 149,032 | 122,078 |
Asset impairments | 10,351 | 0 |
Interest expense, net of interest income | 12,826 | 10,106 |
(Benefit from) provision for income taxes | (3,738) | 76,327 |
Carried interest incentive compensation expense to align with the timing of associated revenue | 22,856 | 15,332 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | (1,696) | 1,099 |
Costs incurred related to legal entity restructuring | 1,676 | 0 |
Integration and other costs related to acquisitions | 8,121 | 0 |
Total reportable segment operating profit | 835,442 | 547,829 |
Corporate and other loss, including eliminations | ||
Adjustments to increase (decrease) net income: | ||
Total reportable segment operating profit | $ 239,743 | $ 53,910 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 7,332,933 | $ 5,938,879 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 4,131,397 | 3,348,859 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 985,999 | 777,044 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,215,537 | $ 1,812,976 |