CBRE - Earnings call transcript Q4 2018

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Operator

Greetings and welcome to the CBRE Fourth Quarter Earnings Call. At this time, all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure your my with Brad now Relations. Investor is to host, introduce Burke It you. Thank

begin. may You

Brad Burke

Thank the press and on Earlier financial you welcome and our today, conference XXXX results we call. website, earnings cbre.com. issued is a it release our CBRE's announcing posted fourth quarter

On Relations presentation market include operations, be share, with outlook, statements along our our and remarks. This regarding page website, a momentum, These will CBRE's find expectations. from should follow the growth and levels slide statements use actual differ performance deck to considered business forward-looking Investor contains statements. financial presentation estimates. that of you ultimately future you can investment only these results These may estimates prepared

factors For our a reports XX-K X-K and that XX-Q. refer statements, filed quarter these fourth and annual Form full furnished to please forward-looking our discussion impact of on other quarterly earnings on and may report XXXX recent Form Form most the and risks

we be may to what non-GAAP required most we appendix these together reconciliations provided our with SEC These financial have measures. this by believe the can these explanations During are Where GAAP by defined refer measures directly we the regulations. remarks, found reconciliations as within regulations, measures certain comparable of of to presentation.

and Sulentic, Bob Officer, Financial Officer. Please to are Chief slide turn and percentages Additionally, cited on local stated. otherwise call Jim in President fee today and rate revenue revenue growth our Chief in X. all unless our remarks Groch, currency are our our Executive Participating

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

Bob Sulentic

Thank everyone. you, Brad. morning, good And

leasing and growth operating occupier XX% quarter highlighted the outsourcing. of led regional businesses, in year adjusted by those by with XX% to This and positive geographies business The lines. fourth revenue growth ended was in driven with the Our EPS our for services businesses, fee quarter. leverage broad strength business across

ninth our in XX% year, marks revenue. increases in adjusted double-digit For EPS. fee XX% This consecutive rose adjusted year on EPS growth of the

gains in enable to and for both quarter results to we Our produce investments the outcomes. people capital reflect operational hard-to-replicate client have the made the year our

example. and Our business more for services have transaction ago We dedicated than repositioned leasing our employee appetite in a clients working and greater X,XXX is labor to They response years now experience, advisory client professionals. advisory workplace on CBRE alongside business four good advise leasing design this and degree government supply same among optimization, analytics, clients. the revenue other location strong has and competitor is chain in things. particularly contributing incentives, has. to capabilities growth, with differentiation competitive the that and capacity to creating account-based No This to specialists invest

leaders excellence having diligently best were focus to through new XXXX. are record, leadership our moves impact services, our compelling on very These come we the across several our business. in efficiencies January reorganization X. to of and and on roles, took our already puts our worked best an expect sharpens also them enables our we performance operating on financial in across having sector's While we that quarters effect structure for prepare of The one in

in Before call split the we I plan the responsibilities. his Jim, on to announced January hand over comment I'll to

capital. is of Our successfully work, a excellent advantages in and Jim's unique which as scale much and with CBRE sector. our long-term record an resulted strength, proven financial give of Jim investor savvy from allocating a deploying investor

benefit important area. Jim will his thank want this our CFO. in to contributions his many exclusive critically focus from I We greatly for as

nicely. Our search new CFO for is progressing

the the fourth quarter for more will Jim and discuss year our detail. in Now, performance

Jim Groch

Bob. turn to Thanks, slide five. Please

our to devoting capital. and Before discussing investing allocating my full I am our I looking much to performance, how say want attention to forward

look and capabilities forward considerable deploy to over value I also capital to and time with CFO. for opportunities our investment to We add closely capacity have working great our shareholders new built clients. up anticipate for

As Fee all-time growth adjusted reached with revenue, year. EPS quarter across EBITDA double-digit and CBRE Bob and each outstanding highs adjusted noted, all an had metrics.

was For and the local increased quarter, both consolidated adjusted fee EBITDA quarter in predominantly the currency. in EPS XX% rose Adjusted organic. XX% rose revenue XX%, in US Growth dollars.

year, adjusted $X.XX For EBITDA $X.X billion the EPS exceeded prior over adjusted year. and XX% increased of

income Our CBRE. full-year XXXX adjusted new is XX.X% up revenue is net high points margin on of basis for a and over fee XX record

EBITDA. year-end, Late sheet debt balance positioned very times XXXX repay loans. At Our US new X.X quarter, dollar on proceeds the used future. borrowed loan term only €XXX a we net to million term in well for is the and the was adjusted

this expense FX the expect our $XX million, European reduce interest while transaction our annual translation risk from reducing about by We to also business.

billion launched In that line US$X.X five-year close credit of of in term refresh we new a a expect existing we March. our to for addition,

price of the also We at in stock. our of share. early per took Through back opportunistically advantage markets of acquired to buy million average over volatility X.X equity million $XX.XX shares we $XXX an January,

year. providing lines as on everyone XXXX to quarter, business based are which about our questions your segments introducing increases. Leasing was last our hold XX% a this Finally, forecast disclosures time. new strong new produced three in Please turn I All that, We'll quarter, until that our discussed six to our with investor remind those three double-digit Please weeks. we details want for the be performance guidance day. major our day last incredibly revenue of regions over at of segment increase slide globally we investor QX. at

in with XX%, of quarter. the the representing of XX% year. prior on growth growth business, As of top by leasing a in Americas of case in operators is The QX in this and the driven Bob M&A X% and leasing earlier, gains US account-based our share working the X%. our XX% was certainly mostly noted growing work remainder and growth up lead, portion in fourth of tailwind, strong explained by The US accelerating also space that, a overall for the estimate contributed our office space, leasing solutions about flexible market. with accounted customers their is placing market growth. flexible was we

leasing US saw in of square and transactions, increases average the footage number square business price per foot. Our

and office up led led more sales growth the increase, companies space China. by XX% the XX% notably space. adding in Given by XX%, newer, continued a property trading strength, increased was Asia-Pacific Americas Global revenue with economic incremental to are modern

around there China, While uncertainty of China also in seen team domestic trade we growth capital. our business. and in driving have both is and the in from are foreign high activity platform in levels Investments investment

number the continued quarter. a the servicing originated turn the helped seven in multifamily billion has unmatched create our numerous and In Norland, mortgages recurring had been in another The been in along with with $XXX JCI's six XX% for successful row. platform. XX% for of by Workplace originations showed depth recent for XX% fifth our our Freddie Strong integrations mark XXth rose originator and year highlights to which has XX% loan quarter Mac value commercial with the occupier time years, slide This with mortgage XX% US was strong most Growth for year. mentioned the the We business, were the business, smaller ability Fee the of quarter our business for the specialty quarter portfolio by the quarter Our materially XXXX, of organic revenues and agency Global platform the firms. Solutions rose the for which years. an origination the outsourcing driven and enhanced growth. Bob revenue revenue year. to for strength growth. driven CBRE in growth an in clients one Please for FacilitySource, impressive servicing as and also cross breadth of XX%

carried X% of have largest-ever higher example million we improved digital combined An driven with incentive Revenue quarter, and could transactions, which asset quarter rose Investments markets combined platform new FacilitySource solution in services, X an and mark-to-market one a since in despite EBITDA management the management a recently our our Uber. January. XXX of global of we contracts with for co-investment the public $X turbulent not that be our and allowed of the and year-end relationship the for With win As with awarded outsourcing was existing outsourcing in a Host mandate outsourcing a another strength quarter. capabilities and quarter, client. million interest. technology existing of fees management growth. provide growing a in is up fourth facility client offering. in in square growth expanding in securities which tailored is These capabilities These June, public provide CBRE on a fourth CBRE strategic full acquired In Adjusted example, Management XX%, to matched suite by its of of double-digit Global capabilities capabilities facilities portfolio. co-investments year our which were including summarizes foot renamed, a segment. differentiating to record an turn in workplace important to eight we consulting by service, project solid experience us poised pipeline, and Uber to others. Please this loss in business losses reversed slide Investment and the our

a our We XXXX generating $XX.X very of continue XX% investors. record capital attract fund returns our for during significant rose billion, to account the and to record to raising due Capital good for company. separate

in under billion dollars prior increased from billion. to quarter $X.XX.X Assets $X US by management the

remarkable QX Development $XX quarter to in par in year, $X.X This dollars turn year. prior the a Please in billion $X.X had was million on EBITDA summarizes adjusted with which million over a AUM segment. strong and EBITDA, adjusted year, of with Services of up $XXX our billion business US currency. For increased local nine XXXX. slide XX% the

indicator $X Our few over the strong of billion, development of reached a in-process level record anticipated years. a next activity

repayment invested $X As had and business little on development We million million XXXX year-end capital. outstanding projects consumes relatively a in this at reminder, balances. of just $XXX debt guarantees

to expect record was year strongest to performance, we closer be XXXX our XXXX's ever. which XXXX, EBITDA adjusted next Following

XX to for please Now, remarks. closing slide Bob's turn

Bob Sulentic

Jim. new across Thanks, our excellent We business. the momentum global year with start

are aligned our people behind strategy. energized and Our

technology take Cross-border is healthy, structure to XXXX. flows are the resources the a advantage of Our to slower, geopolitical maximum and ongoing new and than organizational in allow CBRE's and growing notwithstanding grow suite tensions. economy them capital solid, Globally, pace moderately of at will expected but tools. trade scale

remain mindful for environment of continues we be business. the While expansion, and current this challenges supportive economic length to a of our potential macro the

As are difficult always, transaction to forecast. volumes

share market XXXX, by in our gains. However, we expect revenue solid in businesses transaction supported growth

outsourcing see in estate expand customers sectors We existing real and continued also mandates. strong accelerates in as interest new momentum

technology driven large and investments addition, outsourcing to and business competitive XXXX. growth another strong operational acquisitions our in in year our continue strategic In by for advantages gains. strong This portends strengthen, of

advisory our to to expect we XXXX, achieving intention solid outsourcing business at similar differentiating Finally, continue also make material and XXXX, further line services. in top modest a leverage level of with while In and the our positive operating we investments in businesses. our products growth,

all discuss will detail forward in We more day in seeing our and York on investor look March New we to at of this everyone X.

another close, everyone I at XXXX. Before thank me for outstanding in year CBRE let

of their now, We are questions. and dedicated efforts very operator, line of on And proud the we'll open shareholders. our behalf for our clients

Operator

you. [Operator Thank Instructions].

from Paolone proceed today line the of question. coming your first Our is Anthony Morgan. with JP Please question with

Anthony Paolone

My think, is, Thanks. Bob, first the XXXX. the you relates mentioned in Good know, business I question – it savings. to you guess, into the I morning. reinvested, as I tax again investment XXXX, in continued

think of Or it means you that incremental comment, that? that is about As level that to XXXX that and continues? investment just

Bob Sulentic

you level that don't why the hit we're investment expecting? Jim,

Jim Groch

Anthony. Sure,

operating commented next expect we leverage modest have that year. We

than will investment rate grow So, revenue that, at growth. our a implies overall, levels slower obviously our that

investment So, more nothing state you grow akin that'll investment business at now. as to state last But where a saw the grows. steady what just bit of a steady year, we're a level

Anthony Paolone

what a I XXXX? do a accurate that close number don't And know pickup on it recall years as was I something quarter it. you a or thereabouts, correctly, the think, in have but you $XX if million was out? something Got final have like if I more tally

Jim Groch

$XX million It about the in did little bit in was end close fourth at a off QX. year million and to the slower start and $XX quarter

Anthony Paolone

half still? a was less bit the And first those than little Okay.

Jim Groch

Yeah, ramped just things as time up. took some

Anthony Paolone

of order million magnitude something right. call bucks it, Though XXX thereabouts? All of, the in still or

Jim Groch

That's right.

Anthony Paolone

on you're what there, landscape, you'd you M&A of types the out comment pricing, deals like Can to? Okay. seeing

Jim Groch

XX about sure. Yeah, We this overall, say, Anthony, market year. did I'd the is healthy. investments

multiples But for steady, underwriting. deals say, later of about a and are healthy thoughtful healthy solid, And open it's – puts companies the more could line. on selling. to the obviously, reasons like more in to as very it companies That, more with obvious to cycle, be I'd a seeing market lot a feels sellers You as market good to we're look consider. say onus us of are of we're a it's come to at lot in

multiples minus plus infill in still deal, or was range X the average. typical on Our

of platform we've unique done. obviously, infill a that least traditional or that's have steady something differently. that at M&A the transactions a But more a trading you at will have range that, deal or If been with deals like pretty software trade the type

Anthony Paolone

Great, thank you.

Operator

The Green proceed next Jason of with question is Evercore. from question. the with line your Please

Jason Green

today, solid that in broadly I in grow? this market, I know continue gives revenue guidance can that just the you're the you're sales there guess that not calling giving a number and seeing out guys is in confidence you transaction you business. the are what for but specifically marketplace to

Bob Sulentic

few Jason, things. a we're seeing

wants lot get and all, into of to estate. commercial of there's a First that available capital still real debt equity

base investors are world We're now haven't real while. see the Rental some a up. to Assets development seen to in new potentially good assets that are we going around growing. in growing is in up, commercial really going which And are attractive York of estate. the New for is Occupancies shape. rates

a it because has So, building way, going interest I interest and active we another business asset on for the think done is professionals, should we takes year with in to that's going and Probably that as in be geopolitically to expect market I was what's on sales. for all given marketplace we course, The raise thing of trade, rates historically. added cetera, but general of won't see think unless et think in what's sales. problems By our suggests, thing. share. good We've we a solid it momentum rates some diminished as expect XXXX, grow quite we've things some some the good probably emerge,

Jason Green

you in of just change rates, and quarter interest XX-year noticeable a activity the Was of investment of as the outlook a the the end. dramatic XQ far start decline those from As till saw in there throughout some sales customers? the

Bob Sulentic

our quarter. share tell good in market our could saw not but I described pressure an around I financing. everywhere. trading GSE really huge, stratify the trading But, three that market say downward had market the some saw was Are you don't closely we think throughout We evident. the We healthy a in Brexit, in UK we significant where think we we There I all world. can quarter clearly of regions saw took type for of related real really to active US we a so, that the wouldn't some. active was in general, here you world. the the circumstance

Jason Green

the question last what you you have there? general. concept do about me, guess, the financing, least at GSEs on the any against then, And it. moving for the of are Got amount that GSE FHFA given new I add And, with been talk your of potential expectations of tomorrow. forward can in testifying he's you these, business of historically,

Bob Sulentic

expand to system that's the lending And and to as make well executive at work crisis unlikely in worked We're continues and GSEs very also to did as to since of crisis multifamily well. part have nicely well system know, the we're coming changes a expecting is – the well. to the likely the months not And, financial the in We to risky as the refering him the same you see be lead time specifically, actually multifamily. quite through performed Mark financial Calabria through the the conservative or to who confirmed but FHFA. programs,

many we see period expect changes years. we stable. that a So, We that pretty gradually time do over incur over will very changes being as think any and of

Jason Green

Great. Thanks.

Operator

Sachs. the question. next with Goldman line proceed Alan Please Wai Our your from of comes question with

Alan Wai

was not margin business had Americas to Seemed question Any leasing thinking me be I the to any a margin. the significant EBITDA I but favorable due and to mix on sales, about? puts takes that and lead Good Thanks. did quite your morning. should there improvement.

Jim Groch

Alan, as in prior did the $XX I a investments million from in we about response quarter the say, quarter have the referenced earlier year. would Anthony. same was I to in to It question compared incremental

that. XX still it we headwind a I headwind. And $XX also higher or want in FX a of We the achieved I'll had cost margin so. to confirm bit quarter. million point – basis about say,

– acquisition a basis point mix also was We about XX had headwind.

Alan Wai

Great, that's helpful.

Jim Groch

being business growth with mix so GWS much of And, quarter. in up course, the

I business a at, quarter we look from So, way in XX the darn margins significant mix, with significant I it's guess, investments, strong and would shift some points. headwind pretty rates a still expanded incremental basis exchange by

Alan Wai

XX%. was only market over markets while EMEA X%, were Your down down broader capital revenues the

you driving the what's can also of on color helpful. be any that UK So, outperformance? type comment would And on

Bob Sulentic

year. Europe. mostly good We Continental That a had last really year was

margin. is suggest that pressure it It see would market quite believe the expected, by did where really did very strong as a in We Your little our share. saw what we didn't, We leasing an in impact well. downward which bit performance. UK. and overall have did continent although a didn't did growth on trading asset UK, relative we And the dominant that, to some numbers see of pressure wasn't we the the way, in we circumstance take it but the saw

Alan Wai

thank you. Great,

Operator

is next your Mitch Please The with from question Securities. question. line proceed with the of JMP Germain

Mitch Germain

story drivers, environment, Thank That's you. leasing seems always co-sell years. that's seems for right? the part like lot and a been In of from been the modernizing couple around, of key it outsourcing, space like the of it last the

think So, year years? that really the what is this unlocking in of the do business line versus couple growth you last

Bob Sulentic

Mitch, things going there several are on.

related. are Some of them market

competitors. us some a our market ones significant are larger to are couple then, pretty of And related. Some more and unique

no big a For are margin. sure, to talent Co-working on the retain is using to just where companies more experience about it. attract, deal. make this There space is dynamic doubt helping office is productive and

prompting X% That's have of small nontrivial. e-commerce impact. the leasing is have large. historically in directions, with on seeing impact, then it – that become you is growth, in which and returns lot I activity sell you're and a warehouse that think of much huge, important. and going thought had a both when seen we Everything that But space the haven't types, e-commerce various the we X%

world sector. that So, the us, is and talking to We I all thousand in invest relates we FM services clients to and a clients, are business have people services. all good business. through share a since our platform traditional our ourselves, these work kind to of and around the take us tenant with rep advisory-related global technology to on our that is working numbers. project advantage management it's to company and we're can of that, is of coming that's ability that our specifically growing as then, disproportionate a all guess, growing in advisory about, And account-based in the we're to and outsourcing, now position supplement of with helping for of build, The the like the super a link it our taking we footprint, account-based

So, of news seeing a for it's in business. play our the the causing there are company. are results good really you're things bunch that leasing been And at

Mitch Germain

that. for thanks Great,

of well? said changing way reorg paying that is part curious, the and performance? employee measure the you You Is And that you some are the shifting process immediate broker as dividends. are – you I'm

Bob Sulentic

the we have focus It's not new it that on the shifting segment. and the we're organization with

So, you're brokerage asking or leasing specifically.

much which he's in in business course, and help that had to drive specifically focused, business before, or we do more person accountability. big of to lines performance never that clients. the about have in greater part expect the greater a advisory we're the those before do improves we've serve way operating Then, we to of a role expect Jack way Durburg, the insight we've never drive client measurement is accountability supposed of lines, which, the these had on we in results. big chief a business help in that and of our we come account-based set of management focus be team the our what through him part officer, the business. work up that we've those to The for care And have the much effort, about rebuilding our we business, and measure With is much

those to accountability all expect insight into of We things business, allow and, better those the conspire performance to to us results. have result, as more a lines of better

some We be eliminated that. on also that's structure costs have We've advantage cost more to we some an just organizational in no costs. gain are to There's eliminating even going and the my about side. more doubt accountable going for mind

Mitch Germain

know October, I And Great. that's it launched then, co-working how coming the me, but back and about? last venture you one from just in

Bob Sulentic

is going well. Hana? quite Hana

both units we'll have soon, opportunities most team strategy expect, That We the a the number we landlords investment is love us. hoped. one toward It's think we is we we've and have, the opportunity and We it's new our time moving toward for and have. the by in along we're running, we we quite and to well units excited had oriented We of of think, is announce and this think very we summer. had well up a it. occupiers some exciting with so, marketplace quite love it. relationships oriented as

Mitch Germain

Thank you.

Operator

question is line the Ridley-Lane Please with Lynch. with America of David of Merrill proceed your Bank question. from Next

David Ridley-Lane

Sure.

have year or, in-process closer in to I XXXX. grown adjusted that be comments a on substantially – little XXXX the XXXX to square will levels. EBITDA here Services just guess, that Just with Development side. trying to The quite in last And amount of a the has bit discussion I'm want

recognize most of the helpful. profits timing So, those maybe would those projects, just of discussion you when on broader be the around

Bob Sulentic

Yeah. a deal David, that process. development put the in year first you period gestation beyond the kind of it for it takes

others. than longer are some And

by longer, the to generally type less staying generally able take can can doing You general, we're take you're that longer. some over warehouses little which, in And and way in news power. you much little year. can a maybe which more longer. core because Office more good very through more a get can it pretty product risky, a finance Multi-family much a it's takes have with quickly is buildings year,

the get if year. it with through bump even portfolio within well. in likely harvest But the you wouldn't in-process you're so, the up marketplace, hit quite and can do you in bump that seeing And that road a a

David Ridley-Lane

FacilitySource And of and then, separately has the been how acquisition, feedback among clients? early the on integration sort

Jim Groch

Yeah. to with our being able in client I talking landed just solution a of plan has played quite different been is of business our of about part be found unique, a David, GWS noted QX, us attack our to in kind global the early on where portfolio of largest contracts ever, good. compelling. we one were kind when able and integration underwriting. the in the It's customize the in of that parts somewhat FacilitySource the parts different to service really way that I think that big

going is So, is to off client well the Integration great response has very that positive. a and been deal start.

David Ridley-Lane

Thank right. you very All much.

Operator

from line Jade question. Rahmani with your KBW. Thank of is next Please you. question the The with proceed

Jade Rahmani

somewhere has very surprised at estimated I accounts XX% was independent Thanks growth lot it research the since and absorption much. leasing of for least space cited to XX% in by and contribution a flex somewhat for that of between you co-working XXXX.

So, on color contribution seems be than the can X%, give only was that market absorption to given why that? the to much you higher growth any

Jim Groch

one just maybe and look margin and the at is what's would for guess turns the tends base estate or vast renews real of to I that I account happening on move. absorption make doesn't comment existing

our that own what analysis our and this year. a are estimate through there's through gone in of those But So, to press and leasing a good actual some in the on of internal City is markets. of kind a of London the is us where in X% total many lot closer maybe US see York –markets was we've you'll of the bigger impact feel our like other impact and vouchers New thing business

Jade Rahmani

overall about your the and your their sustainability the of initiative, this business offering? of the from niche independent other but sustainability away perhaps What of and companies the is view model, some

Bob Sulentic

think time. flexible it's We we think space, morph going or co-working over that to

studied have forming global maybe that their a of that Obviously, We a around more be things later, occupier traditional much it's of able institutional We of like know than or space. of suites part to to that base think employees They chunk for lot space that that they for else oriented, We clients think others it's that they the going the also employees exclusively are something them. to space higher occupier X% to to it's they it's multitenant read X% could space let's absorbed team real. think be space to that research oriented just suggest in know have know those But they are closely. We to the to by the flexible – move big space very like We occupier XX%. are that very on world a they the of it today. that, that. want So, it in the could that. think we that's We our grow. own. reports look want go of margin, into grow co-working. sure and than at X% clients. like notion the have you've We've of a think space that's for they We lot lease,

opportunity this oriented real. going we it's variety of We grow. so, we And participating toward to it is are ways. very a in think think And in

Jade Rahmani

In you Any the trends be terms it bid of changes markets on in participants the size? deal that transactions bid seeing capital whether could terms and are out? environment, number point concentrations, of or pricing any or any you in average listed list of

Bob Sulentic

XXXX be will market. little market. capital that's in Well, in there is kind to But comes growth think sales debt The to of be. of it think in the slowed We've Cap flattish and of be big think a we We pretty amount of of have for XXXX. good markets grow There's market trends. say business stable. the to be capital say expect less plenty information comes flow our wouldn't There's will anything the I market. may shouldn't will stable. next bit. the than capital a less The that. a our that active. will growth year. that seeing rates big We trends are bidders No plenty good said out market we for anything we're I

Jade Rahmani

do M&A, rationale amongst or be to industry? in accelerate compelling penetration the larger or technology rationalize increased the and Turning large for services, you real it amongst estate commercial whether public players drive see mergers any in clients market overhead the consolidate investment share globally to

Jim Groch

generally people time, get an amount consider large and them opportunities each another. in on the organic all our to it questions culture. year. the compare The that an of relatively business where get on time large look so wouldn't opportunities And have of lines you you is it's along are has have growth quickly There's basis at size customers. the the marketplace, you equal over fairly breakage have the of been. against growing mentioned. and for been There what around things in some by the a of some now we're to to you have one to all annual Competitors small comment kind We and opportunities now are a pace those specific been issues industry. also long of the a could activity, But of –

Jade Rahmani

product businesses right in business, set, that ancillary you do niches CBRE's gaps in mix you not obvious or identifiable offering, any are currently look of any you're the offering not when see And you at product active that now? overall

Bob Sulentic

our co-working ask are time in call. into market experienced choices materially participation this more strategy really into was with with team, the for in. multifamily. with our choice board, the that Jade, made We escalated we we cycle, we're we last Host with management the we made We study team, being into the businesses like to market to should question time The going adjacent our good the all that the areas. with our that we're and space or in go Obviously, think We aggressively. our flexible this Hana. a go offering

the we We think our the help in can a businesses should always a we But we're in over we our trading By scanning geographies and regard. now had have do and We way, multifamily for don't business financing all market development globally opportunities where in for places we're our anything have to we've part, multifamily sizable that share business we of business. more. do really sizable XX% lines most expand. and And this reorganization like the we see business. and constantly

So, let's business. advisory take our

back geographies, our our a had look the went we team, much outsourcing organizational our degree, and and leadership going to brokerage We're structure last to more focus you among had our we If have across businesses. business co-mingled business, and the to before now. year advisory

the business, ask of in what We on That's And after. major much financing, going to leader but more leasing, going markets do, reorganization occupier is we confident have ensure he's whether the the leasing, that the have XX and mechanisms or the of one world in not leader powerful. this two, in we're and you understanding we're to to them in each that to we to focus the the around the we're of whether were be aren't Lafitte, things between deeply our we're focus. going divisional presidents we're the one market Mike he's have advisory go understand ask head business, and, is reasons global synergy in agency advisory so if going to extent, capital and leader to that

like is, of fact products we in, we see holes largely the the and of but so, opportunities for we're matter And plenty the improvement.

Jade Rahmani

much. very Thanks

Operator

question James. question. the with Raymond Please your O'Shaughnessy next proceed line from Patrick with The is of

Patrick O'Shaughnessy

leasing indication Any on launch morning. that of good the Hana weigh is far to Hey, activity? your flexible going thus workspace

Bob Sulentic

We leasing look Well, XX%? in obviously, When Most only in of the flexible all, No But will industrial most leasing, of leasing minute leasing office be We is at the world. world, space. a lot awful at just lot what's co-working than first the occupiers right? the space. still look it's space, you there the is all, big majority of leasing the market spaces occupiers X% when that's of our are in an at We and our world. much ago on indication around spaces. Patrick. competitors, activity represent bigger the do do of workspace. their big had question that why around absorption not We in going retail you just the a a activity leasing good

or for Certainly, our arena what doing market co-working not Hana have business. impact a what out agile think so, the leasing the on margin the are in do our And we the with in on foreseeable that or clients don't space will we're future. that big

to maybe in but co-working leasing, move to not went didn't then pressure back see it and in XX%, Now, seeing if fact, more we're on would now. go of Hana but, XX%, XX% or the bit direction a our little of

Patrick O’Shaughnessy

repurchase that share capital market your bit can And an rallied repurchases you. allocation how options? thank about update further remaining and and on on versus now you has your then, other capacity you the a that think thoughts provide Great,

Jim Groch

remaining just authorization. Sure. We've $XX million, approach shares opportunistically, noted. to our under over say, We million just continue of worth purchased buybacks And as $XXX million we'll kept X.X under I capacity would I existing at and it of can, we December ask can't January. $XX.XX but go more price That really authorization, beyond in mostly was week average that. share. for talk an the per about first obviously, back and But

at posture returned capital hasn't We we in shareholders of bit We've also it a returning to use having low to zero. leverage and We've far best a committed is capital leverage higher of think to in highest spoken talked our scarce and our recovery of deploy equally our being is as point think capital of allocation a a if about it's lot we've early As we really and capital with being than philosophy, and approaches the capital. as the our quite shareholders changed. target capital. about to leverage years cycle great time we're comfortable and long-term late where a downturn

Patrick O’Shaughnessy

M&A and given on business business that that to can capital lot be maturely it the have the a to your is cash have today, have that how to the you continue grown? of that suggest to is the philosophy going or capital has expect over time size up given realistic generates for so then, But And of used historically, of that following point, you it the M&A. flow the Great. change, primary business capital just usage does

Bob Sulentic

to We and over acquisitions, exact substantial have know. opportunity The of still amount transformational that, think infill we to make acquisitions, we're don't acquisitions going time.

out will As use real also to turns be best an with over with to period Company back be think, of capital. prepared said, businesses, our estate invest extended Crow to investment of that and the we're buy in shares real increased attention our if we management time, Jim with business. our the Trammell there And cycle, opportunities to investment Hana, with

we look we company, we've real the and those investments our a after and this lots So, capital as our of is is to invest they then advantages of have ability impactful invest got places to to one think to make happen.

Patrick O’Shaughnessy

at bit ahead? indication then, last of those one from still And kind on the embarking this it are is or nervous investors point in development Trammell in there that, Great. is projects a little cycle, big me, Crow this getting business, about full economic any steam

Bob Sulentic

do, has identify And over any that capital raising exceptional. know participate we all the there thoughtful project track us. cycle, not returns third-party we're to business. In pretty a we to we capital with at We're compounded having when make. capital XX%. this want for about our very generated we trouble that The record for been that is They partners investments

Patrick O’Shaughnessy

very you much. Thank

Operator

the for additional to are this I'll Thank you. turn further at management you. questions [Operator time. remarks. no back There floor Instructions]. Thank

Bob Sulentic

forward you you look appreciate us We seeing with and to everyone. our Thanks, day. being investor on

Operator

today's This teleconference. concludes

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

CBRE (CBRE) 13 Feb 192018 Q4 Earnings call transcript