CWK - Earnings call transcript Q4 2021 | Cushman & Wakefield plc

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Operator

Welcome to Cushman & Wakefield’s Fourth Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker [sic – speakers’] remarks, there will be a question-and-answer session. [Operator instructions] It is now my pleasure to introduce Len Texter, Head of Investor Relations, Global Controller and Chief Accounting Officer for Cushman & Wakefield. Mr. begin now may you your conference. Texter,

Len Texter

the and quarter XXXX you, a can release results be statements welcome today’s contains our along today, again fourth Wakefield’s press for financial estimates-only, Please estimates our & on based found Cushman announcing This earnings our actual presentation issued release forecasts with to and we Thank period. Investor ir.cushmanwakefield.com. conference the differ on labeled, Earlier statements turn Relations materially. website considered Forward-Looking forward-looking page future should events. results may These of to and at Statements. call. be Today’s presentation current

During in today’s measures related information of as Reconciliations GAAP measures call, to are non-GAAP found and financial other within definitions we financial refer financial comparable non-GAAP financial our by of non-GAAP guidelines. Also, to rates note outlined that of SEC release measures, and of will the appendix periods of are XXXX currency. please and growth tables our comparison are presentation, local throughout to today’s presentation. earnings and

you with following And we’ll on our presentation, begin along Brett the Chairman. our over with X. White, Executive Brett? of to to I’d Page call like that, those turn For

Brett White

you thank and joining Len everyone you, Thank today. us to

their ability been to serve Wakefield our who around year January was and these is professionals review truly in our quarter another year John our CFO, XXXX me XXXX. who’ll with Joining has I resilience afternoon to times our of this Thorpe, the CEO Xst; team the as outlook financial for for and & Cushman full our some on will outstanding. clients begin, Forrester, and Neil the our and Johnston, thank our fluid To of commentary world. Kevin results provide Economist, want Chief along unpredictable macroeconomic environment;

as efforts, up over EBITDA $X.X delivered and amazing $XXX last XX% momentum with results Revenue over and over basis expanded million, Brokerage our XXX XXXX grew fee improved to of levels. year We our build up XX.X%. growth their in ahead of points the recovery. XX% billion, of Brokerage throughout source of X% year; in record businesses revenue record pre-COVID we adjusted our last year to continue margins delivered by strength XXXX. result even was XX% a to was As a a last year

results, our In strategic in platform. addition and solid solutions. investments providing a in to origination debt Greystone workplace WeWork, investment capabilities our and was of financial We year servicing made continued with and in key multifamily us XXXX

strengthened positions strong Finally, future us operating growth. and for further our cash balance million sheet flow well $XXX of

is over over be Before our the we’ve CEO been to past able truly period business very growth a been handing lead the I’m call role, an was proud accomplish, of John, the this and CEO to company to company both to I investors When are new of stepped to years. formation rapid value recognized through the an and where comprehensive industry estate Wakefield as Cushman Today, now in service space XXXX a with leader. in as exceptional to leading global and delivers commercial real the estate taking company real a offering we and & it of objective six from transformation. has a global that for lead into my the services the honor occupiers. public what player

the congratulate have as our I world. continued employees around team our poised CEO, for platform XX,XXX global sustainable on new I’ll Forrester. and over to him his I look leadership success. CEO, new utmost to turn John, confidence call is And John? continued and as John in chapter. in and my exciting growth well-deserved forward Our success. him our I wish working Chairman in I that, Executive role with John appointment this with the the

John Forrester

Thank you for the kind Brett. words,

over material role significant past environment CEO a with transitioned have the in operating company world-class momentum services months, I’ve enjoying global into into I tailwinds. real a few the leading estate stepped As

like to thrilled contribution new Chief the as I’m Brett to I’d the course, for work Officer. thank & Executive honor opportunity have Thanks alongside Of years to over been the him. Wakefield past to six lead his an to Chairman and and CEO, learn Cushman and to fragmented It’s to what as Brett in sectors work and better market role he market. transitions into as leadership, to has never his positioned I many as increasing and Executive Brett’s vision look Cushman in a leadership been Wakefield & remains forward take share continuing Chairman. with

on let the the observations start current me a for and getting Cushman few environment ahead Before operating results, path with into Wakefield. &

real commercial growing. services strong for market the remains and First, estate

significant power As later our on continued the will sector conditions at call. will I said that market Kevin our the companies Thorpe are provide detailed full-service these a the present material power in there three growth. that picture in more tailwinds highlight particularly tailwinds through will I coming – largest on would the particular, period. outset, But

believed attractive flowing momentum value that outsourcing not to company, volume but office sound, the The our the strong address other directly secular growth customer existing voice appropriate deliver growing create recent talking face more traveled major industry-leading relationships talent. our returns. in our staying with happy data the and in in supplier into and occupiers assets I’ve trends, capital physically, competitive I’m only largest – key in real estate on the a to working widely remain scale. leasing, returns, reinforce priorities and building global a we now I’ve of as close And corporate all generate to our over strategy and to ever to months as sectors driven well illustrating sector and with always to investor and talent, and out and grow our opportunities the seeking to clients by virtually, of our return

past two to and years, the operational over has million has which clearer. and in focus and never $XXX of efficiency, $XXX been Our commitment excellence million resulted year this savings

through four the two past the Over transformation initiatives. have years, strategic we realigned business

the to just materially by investor the our our by improving by occupier efficiency and the then enhancing of operating our is organization company. our improvement finally, units; This agility clients. geography; transitioning guide the functions we business services relentless Firstly, that sector, the to better into organizing support by deliver and focus model; now match services our service how and on streamlining optimizing not

sectors, in work strategic XXXX This, to position strong to beyond. of our generate capabilities We market client and us put and our growing highest internal as technology greater again together to will capture and use with a with scale share a Wakefield in deploy employee. the Cushman help as easiest work ongoing and largest capacity operating and growth has & an leverage in focus for make the to company

highlighted example full resulted our of Greystone’s our volume, the our acquisition XX% round an service last stake In sector. in XXXX, in asset call, strategic which the earnings in focus, FHA of As we drove XXXX. US $XXX of in offering Agency, billion fully and multifamily out Servicing investors a that growth multifamily class up US will XX% to since total volumes, of year XX% the market which businesses, capital

Brokerage quarter. profound to levels. platform, will results. the over and growing. a strong with pandemic, recovery fourth we’ve the multiservice penetrating The to portfolio across continued single-digit in management global tremendous investment company a Capital line EBITDA completed at all both to the on from the quarter Capital largest streams the scale and we recurring and Management building show was and Markets $XXX our the strength exceeded several as record margins. million as WeWork records and all-time recovery serve with for including the city. particularly to and our Americas company. a property estate brought evidenced that, $XXX and highs EBITDA also announced clients. global high of real resulting fourth the Fourth of across profound revenue, throughout in and estate strengthen and complex, we strategic the sector these The partnership by display full a Property focused key been quarter portfolio, particularly segments. the two businesses, continued strategic commercial was fourth all-time Leasing service resiliency of market further occupier at growth in Whilst our high the real of our our year Facilities the investors the continues mandates lines service revenue in quarter years, business. remains and of liquidity growth had heavily commercial the continued is year. addition, – in rebound, with platform multiyear the Overall, We’ve XXXX our and that appetite believe Management to nearly large differentiate further Both a The national increasing past outsourcing strength in broad-based, large, continuing full adjusted transformation for our formation high-value With business strong most Facilities and this of to Markets growing top markets. let sectors, on experienced was record our profitability pre-pandemic the lines our and me to turn quarter impact increasingly We’ve profound our every to win the performance as year realignment In for broader million, Brokerage for result Adjusted of execution company has of

is not our Looking strategic map road forward, changing.

and of services occupier delivering and We around the global in to will world, are a focused clients turn shareholder suite deliver efficiently solutions owner which complete on value. material core

a business, action will and the Cushman Our targets and our analytics talent that unique resonance, excellence, with end, our net-zero we real Wakefield that being with commitments. a science-based a guide taking relentless people set data increasingly own we four environmental will previously growing a the strategic our in announced through with ESG, are how also To of leading area leveraging that our to run that is and leader fundamental and operational impact of a to centricity, clients be value. bold now path platform And consideration estate on and continue pillars client & materially provide insight decision-making. in reduce

and around clients, to communities a the – Kevin world. continue the our and clients to ahead, the with call committed in shareholders teams I’m year commitment we are value people, to macroeconomic our discuss for to our turn optimistic confident the the the for outlook. to which We in operate over drive like day. strategy every making Kevin? world now meaningful that, our for I’d and impact our of our to across And shareholders, our

Kevin Thorpe

commercial to the increasingly XXXX the importantly, are estate a pandemic. clearly becoming both for the economy, year real John. strong And sector. was learned that last estate general, sector real in resilient Thanks, we rebound is year commercial the and what

As variants. featured new and we all waves year know, last

the by it on, apparent evidenced went the becoming less that increasingly by commercial performance was the year throughout sector strong waves, the these estate As became year. real disrupted as

to Looking rates X% grown the healthy of this mid-Xs. XXXX. be economic ever to to GDP projected average remains Monetary grew by at anticipated outlook strong. the is preliminary rate ahead, XXXX economy a – forecast global US are in International X.X% XXXX are These similar to growth of among growth a years and growth real expected the in a the estimate amount, above recorded. to according back-to-back and rates in significantly the Fund, pre-pandemic X.X% growth strongest in The with have by register grow

giving more XXXX. As has commercial strong leasing, the jobs, buildings it more rate, When deals, the conviction a in we property manage, sector. predictor capital markets grows GDP economy solid more for for estate at outlook to more a historically, on means a know typically healthy us been real

continue we impact other inflation of risks. elevated to downside the Lastly, and monitor

speaks these resiliency. the However, for navigating successfully has I to real the months, sector would commercial again challenges which several sector’s emphasize estate been that

below and monitoring are rates the attractive treasury Federal their a rate low But we are half making in and that real estate even remain here, would I drifting levels and the still higher, of still Additionally, Reserve with commercial historical movements. average yield emphasize still interest XX-year spreads interest pre-pandemic sector.

most growth. has Turning to to The shifted economic backdrop from stronger recovery sectors sectors. property the

momentum commercial real the greatly depending varies other But sector and has overall, factors. going product estate course, into the geography, XXXX. Of on type performance

and square year the sector estate demand to real One that with sector. clearest in record-setting industrial the spots such and space XXX in continues these calendar observe Retail the In trends continue of strong the the be square the supply commercial logistics of US, and industrial million outpacing ended continue bright indicating apartments, the underway. XXXX. that is a to was very encouraging well space worst in market demand centers, vacancy life context, recovery, absorbed square XXX sciences, are recovery the truly to office continue prior first feet now time X% many to there Net million are sector ever. for the the million lag is feet the absorption but industrial Likewise, had year, to is over, just expected year, And last XXXX in behind and robust astonishing. data so signs below is for in never XXX self-storage also feet. for we

we best last net year, year sector US square XX the feet instance, saw For million retail of was absorption, which XXXX. surpassed since the

gross activity of every continues in office increasing trended side, absorption Tour higher positive markets. the activity leasing and an is turning On to quarter in rebound, XXXX. number net

pre-pandemic been very US recession the in of has of the million levels robust Importantly, returned nadir has cycle. the office office COVID-XX peak created recovery jobs this employment has employment. already and to X.X since

years. this the took two all So, In from for took cycle, six financial jobs the lost it context, it great than to crisis. less fully recover years

setting And are and new path that resiliency $XXX US XX% year the will to billion, continue back, tremendous According to up registered more ago, sector fourth so, a get a even compared do capital workforce, to recovery. markets And confident demonstrate businesses record. sales continue Real its on quarter quarter momentum. with at a when office we property Capital fourth lastly, agile Analytics, to

previous volume sales real XXXX, year which than billion, is estate higher full types the record $XXX property all the For of XXXX. XX% in set commercial totaled

near-record for attractive fundraising commercial remain estate sits the clearly, drivers remained So, as asset real aggressive and in demand as sector it an at class remains favorable investors levels.

out, the estate over optimistic to if strong with are are I’d difficulty] performance in call be script, continue virus and still Neil. reasons play pandemic to there as to sector. remaining there real [technical most to economy uncertainties probable the the turn Neil? continues the follow And then While to that, the the like strong commercial for

Neil Johnston

and Thanks, everyone. good afternoon, Kevin

efficiency of financial Strong margins. EBITDA drove and our quarter growth, with for revenue pleased XXXX. with of operating very initiatives, the are year the record both execution adjusted and combined fourth We performance full our growth

addition, further strong operating leverage liquidity. strengthened in and our cash improved In strong flow sheet, balance continuing resulting

quarter, than by EBITDA per was prior Adjusted fourth $XXX quarter over XXX EBITDA margin year, of growth revenue by XXXX. for million basis billion, resulting adjusted million benefit $XXX fee prior of an operating the share increase in XX% of or of the $X.X revenue the Adjusted increased of For and fourth about to points XX%, surpassed compared of an quarter increase the of more driven Brokerage initiatives. $X.XX, earnings XX% efficiency year. XX.X%

of For an with increase year-over-year adjusted and strength over of XX%, million, fee the compared management, full adjusted grew increase which points XX%, margins year, our XXX to $XXX strong we initiatives of basis led XXX efficiency a The generated prior over EBITDA our coupled and revenue an business, of operating execution of XX% $X.X and billion, Brokerage an cost year. disciplined increase of of increase XX.X%, EBITDA XXXX. basis of to points of

working year million in Non-office line. per of our the quarter, cash revenue we year. of leasing efficient of at capital, XXXX. levels and increased for our the respectively. quarter up and sectors. earnings was in over XX% continued earnings In delivered fourth As pre-pandemic $X.XX fourth strength management year. increasing from Leasing for the share the operating full revenue Markets the prior the flow fee versus Leasing logistics and XX% revenue X% a of fee Adjusted with exceeded quarter prior momentum for Capital Taking look by the year, the and result reflects industrial service a $X.XX, strong $XXX

momentum. in Americas The and every volumes the quarter. be compared Kevin pre-pandemic up with capital slowing no fourth PM/FM were Capital to saw continuing signs growth largely on. sector. segment which fourth nearly property and respectively the and levels driven the Markets, favorable for continues by fee XXXX, to touched Valuation already service lines Other levels environment XX%, the of investments quarter X% XX% for of revenue office record reached in of in with In improvement We also sector,

of our and growth resilience a lines stability ongoing the year-over-year, PM/FM at is with Management of of been Our teams. commitment clear service of Facilities a full reflection have which Services source Facility X% year

Our flow deep and the on digits half for revenue Americas. continued reflecting mid-single our represents generate year, of was for very PM/FM cleaning just services under up cash COVID-related Facility a stable revenue stream, Services fee demand full which principally the in solid

Turning to our segment. by financial results quarter for the

to quarter, XX% Our Americas This $XXX APAC, versus million respectively, adjusted of growth of the pre-pandemic revenue Markets reflects revenues respectively Brokerage. represents segment a for EBITDA XXXX. EBITDA in improved $XXX improved equates was Leasing improvement Brokerage fourth for adjusted year-over-year, XX% fee and million efficiency activity, we million Americas and positively EMEA growth $XX Brokerage performance an $XX revenue together which versus of strong impacted versus by revenue Capital the of generated This, APAC the million, initiatives, and in XX% where the we operating XX%, rebound by increase of and which fourth and EBITDA, in adjusted EMEA in XX% XX%, year. prior where XX%, level of respectively, led XXXX record fourth In our respectively, resulted and in recorded strong quarter XX% of in quarter. and levels. with an the XX%

consisting at We borrowings of billion. $X facility on quarter end on the Our of cash Net from down was financial our times reported year, X.X of $XXX outstanding the X.X $X.X and revolver. leverage of with our remains strong. of the we at of had position credit ended on fourth billion We liquidity, revolving the times availability end million no XXXX. hand

in onboarding million $XXX venture strategic allocation and framework. with we future invest to optionality within accretive to December, broker well-positioned on Greystone, contributing XX% fund In while maintaining for are capital joint a and closed stake. our opportunities, infill operations our We continue M&A

reflect We which equates full our method equity to joint for in fourth accounted adjusted based immaterial, as close. that an a to expect times The and and contribution streams, Greystone and both statements, contribution on The EBITDA be impact in gains MSR to venture timing investment will the impact servicing given fees. quarter the X basis EBITDA fees, be accretive all a EPS XXXX was investment will financial of the to our to the on multiple times of adjusted EBITDA historical with origination performance. revenue of year including X

forward, particularly multifamily, to this experienced improvement in XXXX growth Looking In continuing of in and and over continue strong well office year, were in momentum QX, the Capital back expect our Leasing Markets experiencing significant retail with above XXXX both Markets revenues logistics of XX% the business sectors. we as as levels and XXXX. Capital

this XXXX consistent single revenue service and growth with last with growth upper momentum expect revenue in we year. growth the growth line the in digits, pre-pandemic continued mid-single Brokerage continue to historical In in in year-over-year anticipating our digits, rates. We non-Brokerage anticipate lines, are

to As investment drive focused we look while to we forward, are growth. efficiency on profitable balancing and drive cost continuing savings,

we from result, a are XXX EBITDA an Greystone our margin basis points adjusted contributions improvement year-over-year, approximately including aiming As of for joint venture.

call continue shareholders. the drive for operator investment, momentum For – that, rate back in below growth, significant turn adjusted Operator? today’s in tax segments for to lines service adjusted our year, an range Q&A we our are management Overall, the of the to we disciplined business, cash effective of on cash ETR. all slightly tax be the well-positioned of to value XX% expect the portion our With adjusted call. we to are our and and seeing focus continued with the profitable I’ll rate with

Operator

we instructions] conducting At the you ahead. [Operator go Anthony first session. Please this a Paolone will from JPMorgan. question-and-answer We much. with line have of very be Thank time, question a

Anthony Paolone

in relates go. My Great, a to Brokerage XXXX. of It runway lot growth first seems thank has you. revenue like leasing question to

single-digit you keep what think higher? upper your wondering might be from might to takes revenue what system that are puts so and And the being know you outlook and for this

Brett White

that. John let’s take – Let’s

John Forrester

Hi, Tony. in We outcomes sectors. see relatively positive all

what in continuing the unlikely – logistics you multifamily, in growth strong Unlike As and sciences to there’s QX, you but we duplicate strong. momentum. saw still know life said,

some the continued And data about in out as now that now bottoming offices, strongly in growth green moving through positive retail. the very actually all rebound over and We’re we watch. sets Kevin shoots mentioned,

move we’re outlook at you see it and as taking through into know combined, So recovery market, we a true the quarter you do Brokerage but for a a the one know growth. good time we

Anthony Paolone

the I then it side, million mentioned that think And see. Okay. to on was had expect expense you you $XXX

I to But system. I think expected if curious that’s in cost than inflation or any pressures in see you’re faster cost anywhere XXXX, returning was from the I believe. just starting

Brett White

Neil?

Neil Johnston

$XXX million we that Tony, took XXXX. sure. out Yes, in

go As on XXXX, we that we into not to focused clearly extent. same but will be costs,

the has considering we factors considered at the the this, business expect are inflation. natural hedge of as look news XXXX inflation. do we against Some a But we good is

go the a the on So, considerations, – we non-fee-earners that just the savings piece back there really coming is final the focused we Other as our of salaries inflation around and up. some in. could result area of that have COVID do

then offsetting things continued said, on out. focus I those But permanent travel. So like that are, cost are as

those the that in we next of look to some So, are expenses weigh year. as factors

Anthony Paolone

right the about levels now? Okay. activity like talk last just the just one pipeline look you Can to And and investment transactions do appetite then your side. or what on

Brett White

Sure.

– you that? Let’s can John, take

John Forrester

a XXXX big actually very was Thanks, our Brett. year acquisitions. for

that the the most since was organization together. single spent year any it we growing So in

and So, of remain across XXXX. value did we success performance are both we in the on you full the fit what opportunistic know we’ll around and and piece focused XXXX, in

are As – built we and there we’ve recurring significantly line by both But markets sector Brokerage there out geography, fragmented in service revenue remarks, prepared diversified still the and lines. said in the fully we in model. a

specific at at any based right state on on as are but know this time, I the you assets. right ready it’s the to we opportunity, time areas and because value execute know say, won’t I So, you

Brett White

to want that, Tony John’s I add just And comments to here.

Greystone the high-quality all group terms. where you difficulty about So, lofty to the know and peer we around deal is year M&A. emblematic way valuations think XXXX the and go a I was finding talked

were long was a very we a that was interested vertical specific deal to have been interested a that and time. in for So,

because in to what instant add We’re transaction professionals. a to platform, partner, able value accretive at done our value. synergy and a a get will what multifamily platform of was looking deal to Greystone our able, highly for offer. to It our we’re And

to great have deals out always that. look for we like So,

We’re very and valuation careful around to ability our integrate.

I that as marketplace exist, emblematic in is where think deal opportunities we’re and dealt to mentioned them that we’re going pursue John a there.

Anthony Paolone

for Thanks Great. help. the

Brett White

Tony. Thanks,

Operator

you. from instructions] Thank line ahead. of Stephen the Your question with Sheldon [Operator next William Blair. Please go

Patrick McIlwee

Stephen. Hi. This on McIlwee is Patrick for

Just a couple of quick ones.

So, you about your about that to how the you’re to first, Greystone of thinking could talk officers? how and those you – integration Thanks. with incentivize brokers plan work and team your closely

Brett White

on focused property Yeah, just very, acquisition we’re single but to John but might that look own, comment that you front, the its highly John, never which quick that very now, course, powerfully. If on did handle how deal I’m what stands like. that, Greystone going investment take snow bit talk we let is on we’re mountain. stands professional the our the on going is on to integration and little platform a of Greystone that, between I’ll a the and own let its But make about will a

John Forrester

we with in off extremely the a great penetrate are offering and in this taking already market that, both And get to we And offering Brett a the ability acquisition our our the I the share powerful to largest the pretty point. a Yes, set a then, joint seeing Markets is us add doing and the taking we’ve Capital is service offering we’re now now. that as three are doesn’t years The delivering player motivation what our us in seeing business, in ago, knowledge share, with at they cost are area, Markets’ work very Capital market our Pinnacle to acquisition of of actually who proving and jointly on debt. can what as more by got to And strengthens seeing we we teams and the revenues it market full the we equity into says, markets. venture nearly bent company stack, all market, are makes which need best very we come aggressive to provides and the But early particularly days is gives say, the attractive, the clients. multifamily from the it, existing multifamily this I said, it that are as colleagues capabilities actually the as platform in of it. build taken those

Brett White

underscore on just, just what And Patrick John said. that, to

So professionals to were an answer folks. in wanted are needed They clinical and property them specifically, our we investment multifamily able that this provide in acquisition.

valuable their business said, So clients retain we rounded They do well gives they together. more as were for service and business makes this provide it. don’t to this need them them as do incentives people to John to clients with for who crying And a them. which toolkit use can

Patrick McIlwee

Thank one And really you. That’s quickly. it. another Got then helpful.

little has contract kind can if your PM/FM create activity to increase understanding transactional clients about so of asset So, how that for an an on that space? my the in of bit ask impacted in off trending a wanted that talk transactional wins. side I activity, to sales you win And things, it’s ability opportunity

Brett White

into detail client this additional opportunity place every an I’ll is first Again, for but let into that value-add think with get John would And is transact which no about time client there’s way, that. to us a new for we services. the cross-sell here, I it

US. Dallas, our business, doing in our in folks the than outsourced looking They out an more them working there lease and with where are this That customer for Brokerage they’re our prevalent Leasing You that at tells large requirement they’re outsourced that a customer. see bring in professionals. in to addition

pitch activity visibility John our But business. that increased to transaction how very gives more We’re able speak us specifically can clients. in to

John Forrester

an but positive like to organization for Cushman & tailwinds facets There’s in a it, lot all of Wakefield. all

As a with interruption the business, we all the no have engagement seek around full-service services in asset. They our the clients.

deals of a level contracts, that pandemic, buildings of part volumes quite Capital management in the point the actually low think of therefore like. to as was fact But there So, in quite been the facilities – the about level of there churn more during of strategy the the cetera, that was Markets’ during COVID, et rising management build-out. I actually versus low of levels that’s I renewals our market. and and and historic

deal stack of the go to of so, period pandemic can us, asset. the out more for largest multifamily existing And share either buyer reposition a an refinance asset. that’s every client of our at client, because Capital top to Markets Brett a market client. with full-service is new and part trading, of asset. – point relationship we to now robust in to overall client volume the the to multifamily there, growth. is of We opportunity or Coming get added something our manage an strategy asset, out that taking building was out that a the it And looking that sell long-term says, can as very again an and provide equity the fastest-growing We sectors. those and new a and to or our a servicing we I’d for on debt that can us we built stack

more because, the revenue, to the journey we of to than the ultimately, whichever as as office return really quite to being the course, to. and back And XX matter amount get to get already lot one gets and or and any a we’re the occupiers believe it’s you of full to volume drive space churn the CapEx to because certainly needs to trailing attractive of XX seek in of going Finally, into management seeing how project months going is certainly to doesn’t growth ago at reposition attractive be home. office office, not months its whether somewhere areas than more offices occupier portfolio

a factors are quite sorry, there there’s driving – So lot of tailwind sector model. full-service the a across full out volume that

Patrick McIlwee

the Understood. strong year. Thank you on congrats the the end of and all for color,

John Forrester

you. Thank

Operator

from with next Thank Please have question you. Stanley. [Operator line Hill We the ahead. instructions] Morgan a go Richard of

Jose Herrera

Herrera everyone. Jose Congratulations It’s great on for quarter Rich. year. the and on Hi,

real Just a fundamentals regarding quick question commercial ‘XX. for estate

for Thank risk guide end just and insight real the any good down do to high market. surprise? anything estate What regarding but potentially You risks curious into could the tailwind that, commercial you then guys could gave think on you. that drive for some and market the the

Brett White

Yeah.

So, could the drive of that the And I Kevin estimated to very performance we out who levels also depress above what moment. which perhaps, market, Thorpe think, I be on can talk our currently. macro actually there importantly, have could at risk the line, more Economist, could question low is Chief the think

do Kevin, to want shot at a So, that? you take

Kevin Thorpe

sure. Yeah, Certainly.

as Ukraine a too risk precisely there’s you to property actually to course, There’s that. that oil. my of of with couple Russia, sector. points it’s I there’s say So, really in how will on view, forming relates the know I’d would soon conflict geopolitical impact just that’s that make say

in believe right, during estate Russia. local see oil to actually prices. raw it’s downside more is degree could drive this commercial just feeds the of think to is Again, with could you even for know to of commercial – generally is real has are see interest supported longer to kind spreads does wild energy fundamentals. exposed that I no But perform with know John where does market, estate Real we very know that with Neil elevated ties speaking real good the it’s inflationary in We’ll fundamentals you countries about not. happens and to possible rates risk making some or you more the way daily by subject long-term know to estate important, remain that know was feel and risk pointed stock demand had investment core that stock on And conflict swings, rates it actually and that even out, So, conflict. all attractive, leases. It up. as estate to Certainly, other link well interest drive periods I low. grounded economic a gas hedge I is There’s through We how horizon, materials some these market to more have a a And lower, inflation. European inflation. what elevated is the not economic of of the right. environment. real and estate real The valuation

ways top warehouse we point mile. a sector, multifamily recent sector, I last resilient glossed sort movements. the live, The focus is And which things. across savings, pandemic, officially secular learning that trends been that the clearly to events. really we’re mirror, The I retail demand, of But inflation, can geopolitical of gaining commercial right. that’s momentum – savings of return interest People strong I a industrial couple whether excess much and e-commerce of is building very rate movements, is to up fueling on still to fueling demand and very that’s of it’s geopolitical the area. climb fading very the interest a this there. mean, in the I Excess curve really in mean, space consumer estate perhaps weeks. over rate inflation, concepts. been to regardless talked some office, demand finally, about, this as has rearview share savings, for officially important the for favorable, in Demographics, sector need are on that’s people place think online the indicating savings what’s to experiential – kind particularly real boosting in areas And the growth

always lot the So, can think a - scenarios. there’s of There helps. I Hopefully, handle it challenges downside to dark that view, these scenarios, dark sector well, really know estate my headwinds. really positioned in is real create always but and you – commercial

Jose Herrera

– definitely Yeah,

Brett White

Great answer, you. Kevin. Thank

Operator

any you further questions? you. have Mr. Thank Hill, do

Jose Herrera

Thank No, you. that’s all.

Operator

remarks. you. I’d back the for like you, sir. closing gentlemen, call of Thank And question-and-answer Ladies Brett we to turn and to White the the Over reached have end session. to

Brett White

year in Great. Great everybody. appreciate support. Thanks XXXX. – thanks, We your

great talk year. Looking Thanks. another year to you forward into a We’ll this in quarter.

Operator

gentlemen, Thank concludes you. Ladies conference. today’s and this

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

Cushman & Wakefield (CWK) 27 Feb 222021 Q4 Earnings call transcript