Earnings call transcript Q3 2022

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Operator

Welcome to Cushman & Wakefield’s Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

It is now my pleasure to introduce Mike Spooner, Head of Investor Relations for Cushman & Wakefield. Mr. the begin may you conference. Spooner,

Mike Spooner

financial welcome Thank Relations today’s third a presentation, Cushman period. website our Wakefield’s can be our ir.cushmanwakefield.com. to XXXX you, press release, earnings Investor with announcing issued at and quarter we conference & today, the on again call. along for results found release This Earlier

of statements on Please presentation contains Today’s be turn forward-looking our forecasts only, results on current statements. and to These the may note page future and estimates considered differ estimates statements should labeled based events. cautionary actual forward-looking materially.

call, refer of within release tables of to we non-GAAP During related financial financial and today’s GAAP SEC the financial appendix definitions measures, other will found non-GAAP measures by as are earnings outlined presentation. financial of our measures non-GAAP today’s Reconciliations of guidelines. and to information

presentation, throughout the XXXX growth note unless the are please currency of local comparisons Also, periods the in to and comparable stated. that rates otherwise

our begin you following For X. we on presentation, along those Page of with will

And call John over with to turn the to CEO, Forrester. our I’d like that,

John Forrester

everybody XXXX. Thanks, segments, our revenue and $X.X fee resulting to X% all continued joining growth you thank reported in call today. three up billion, of top line Mike, versus We’ve across

On EBITDA versus XX%, prior basis, revenue year. while a year-to-date is was up fee adjusted up XX%

globally, volumes of the our activity capital currency impact subdued quarter the While which trading the in line challenges extended lines and versus dollar our drag XXXX. year, continuing in due our have the prior stronger areas, generating to U.S. service service lower same now China the platform namely year, compared experiencing feeling is of of we and majority foreign lockdowns, COVID-related with performed substantial and well are this specific markets Greater headwinds significant in

over revenue in with business. business. continue fully particularly illustrates quarters, this, discipline to the revenue-related a environment real and the our result assume a recessionary to the recurring permeate highly multi-year coming is Looking performance strategy to Notwithstanding sector, build in deployed conditions the general transactional more have will of it the reasonable the the ahead at estate diversified quarter we

This progress continues flight and in position in create the to sectors continued more long-term investments of strategy environment. to us prioritize the to macroeconomic quality. players grow with to share industry the to environments inevitable will through growth for us Fluid strong platform, capital in our successfully allow along our the allocation largest global opportunities current market nicely navigate

our and let the a office sectors Now highlight me that the as in leasing the sector, are quarter. trend In apparent few the continues fades. working through office pandemic to are trends higher to return

largely post-pandemic nearly norms. of matching again, a occupancy to where signing U.S., leases in back at high businesses pre-pandemic the Now XX% nearly are longer-term

significant due of major their cement view of notable high-quality portion a number while offers is small unique growing and sustainability a are between which positive a accounts that now exceptional are clear and built and There fundamentals, others But amenity space of there’s that newly challenges. demand, set but evolving to our that lagging It also supply highly cities, relevant. remains for these office office trends the absorption. disconnect

to years most considerable occupiers of relatively is opportunity our offering in what office generally demand between what sector. unrenovated. as XX% now is supply, market disconnect with old that the than more approximately the a see world’s limited inventory this We XX now However, relative in and

drive that Life secular like grown trends In in versus for illustrating are revenues offer to XX% sectors. skilled year, have the year-to-date advice Sciences, able us opportunity who our companies highly prior emerging

climb demand to come the creating grow will homes. up Globally, tailwind a the in more penetration many recent has curve. continue for will to sector, continued leasing strong we expect industrial years be formation in globally, household to multi-family, the to and population for over growth Turning online years performance continue e-commerce third quarter. as And record countries

The the volume, rates in for of recent the asset rise in terms according mortgage now largest Analytics. XXXX Multi-family will XX% sales accounting Real of in more class than option. make total Capital more renting affordable volume to is

storage. And world’s strong share we doubling such is tailwind as XXXX, the sectors, continue numerous size of for by expected in presents to life years medical six and population sciences, lastly, a to the office aged which over grow, self believe

in investments areas other we’ve in strong years as our secular to markets the and these pivot the Our and growth during agility past are experienced few evolve. reflected demonstrates

performance. facilities property service our line project management to turning Now and

to Our management and previous project their and continued recurring prior in up businesses X% XX% outsourcing global and quarter third respectively. year. year, momentum, versus third resilient the exceptional revenues with the quarter XX% our in occupier quarters, continue remain versus generate increasing growth, prior Consistent

be headwinds expansion, to turn to challenges, within this reducing costs objectives that & by continue The of in most line. secular partner results environment illustrated occupancy impact with our for driven third quarter. their sustainability the prior requirements, the comparisons, market different largest Clients, whether our capital the year reflected Challenging organization. on macro their a or service Cushman keenly in the Wakefield along markedly weakening are in environment are

the Capital year, not half. outperform last do over expect revenue As second set particularly such, XXXX record Markets the we to

be as that in takes the market environment may global position inflationary and recalibrate our to subsequent through We rate toll. on higher to our time our this created teams its and and exceptional interest to position industry-leading and the this recovery. take through navigate While environment are given people an many clients environment remain perhaps advise some will opportunities well-positioned the

industry fundamentals our that robust. our support remain business and longer-term The

strong on doubled careful globally we and down with ample industry on focus already and As balance a diversified our discipline. high investment liquidity, management have sheet a leader cost

in seeking return continuously for maximize highest to We our for shareholders. allocation the value our are capital order

about business our confident and remain of strategy. We performance multiyear our against the the progress

experience by field can conditions opportunity. deliver with and also we the our our confident to insight We and our continue intend community teams realize exceptional that them as service in these know challenging to to navigate day bring recognized the global and dedicated business stand opportunities. global We to the clients Our exceptional pandemic, every we for leaders leadership and were from clients. help

With to in to Neil detail to our turn over call that, the financial discuss I’d like Neil? more performance.

Neil Johnston

you, Thank afternoon, John, and everyone. good

activity and Fee quarter, versus $X.X $XXX declined For capital the for grew the year. billion revenue million the third prior offset lower fee strong prior quarter leasing EBITDA growth of versus year. by and performance, quarter X% prior markets reflects third of on X% Adjusted in revenue third the PMF year.

earlier headwinds higher prior The China. foreign was higher year. in was lockdowns currency of of principally commission in in year commission than brokers expense, in the and by strong to COVID-related the the The decline in payout EBITDA the brokerage half adjusted higher expense due achieving growth result driven first U.S., tiers the

earnings decrease venture, line was these prior the quarter. were joint Offsetting XX% of per year. performed recognized our share expectations Greystone the with $X.XX, for the for from which headwinds quarter versus a in Adjusted earnings

sector Americas increasing leasing Taking perform look prior In well office to fee fee Leasing lines. quarter logistics of during Both the a the the increased pre-pandemic quarter, our XXXX. exceeded third at revenue year. quarter. revenue over continued sector and revenue the industrial XX% levels, service the versus XX% by third

fee segments all prior challenging Markets declining year versus third comparison. a declined Capital revenue with XX% the quarter in

the prior and XXXX in different markedly QX XXX% interest reminder, a capital markets revenues rate grew comparable year a versus environment. As macroeconomic

offering levels Third again with entire businesses, performance X%, our still facilities strong our third quarter And our XXXX across above and on up and non-broker management was were and capital lines, – service PM/FM service markets revenues quarter quarter, by in in this valuation particularly other lines PM/FM XX%. respectively. XX% service project

fee X% driven and revenue Americas PM/FM. XX% by strong the for quarter versus the above Turning declined revenues in a XXXX prior XX% revenue year-over-year up pre-pandemic segment and to Leasing year-over-year, year leasing performance was our Capital challenging results levels. comparison. was improved quarter. fee in Markets

more of higher EBITDA offset EBITDA prior earlier versus achieving higher is increased prior million by in tiers million in our results of principally performance in driven brokers Adjusted joint $XXX expense Greystone The payout year. commission years. venture, brokerage by $X than adjusted

growth performance year grew other. of year, fee EMEA, Capital formally a currency was markets versus and versus sectors. across growth by leasing X% valuation U.S. million In of EBITDA dollar. prior with all result XX% primarily comparison. driven Leasing Adjusted challenging prior a unfavorable by nearly and declined PM/FM, revenue across declined X% a Markets driven of as stronger and $XX headwinds

China. principally impact capital driven for fee line, which was Asia-Pacific, in this markets currency the grew was grew of PM/FM our the In growth Partially of the XX% performance quarter. service which prior business XX% decline driven year, adjusted a the X% revenue of by was lockdowns our COVID-related quarter. local a growth On of in basis, XX% versus offsetting EBITDA for by

and $XX driven our from of subsidies as well joint down prior versus the countries by in was year million EBITDA reflected APAC China in Adjusted earnings in XX% government impact year, of other prior our results. declines venture Vanke as

Moving to sheet. our balance

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

capital and going selective will as of forward. pipeline active an deploy we be consider have We we we opportunities, how disciplined but

business currency lockdowns the conditions, has COVID-related have performed now including our continued impacted China well weakening and While in headwinds. areas certain capital XXXX, in markets profitability, foreign

being part and of our update provide already As in-year year-end a targeted have reduce actions an we result, cost at budgeting as are cost our evaluated earnings call. to Further we spend. will annual actions our implemented process,

as We in finish we fourth somewhat transactional fourth more markets economic materially to the brokerage activity result we revenue quarter. in the with anticipate quarter decline up due leasing in resilience the to uncertainty. expect slowdown the of being As year, in down capital a

the timing initial with of PM/FM assumptions primarily our start against be flat, exiting in We line the of in is quarter to which from to contracts expect new balanced year. contracts, the our operating in the due business

our the are revenues, of As we’ve provides during especially pleased consistently performance of we which periods said, recurring business, PM/FM uncertainty. with

continued Our strong in range driven activity our has anticipate year, and we management full capture well grown project this and growth share from PM/FM market upper-single the business. business by year digit

the for adjusted our above well down programs XXXX margins several versus now years. as full Given the anticipate prior we but result year cost facing, past now the we still a year be are levels over to XXXX EBITDA of headwinds

process XXXX. the for in developing still plan are our We operating of

is As that John will done length assume XXXX, scenarios certainly. in still it mentioned, scenarios while and a with to reasonable businesses that evident, could number play particularly recessionary of the transactional in be of conditions out depth

the of business. anticipate of stable more trends, In our and line be terms resilient to nature top revenues the given we PM/FM recurring

anticipate In comparisons, we first year environment. the given of in the brokerage, the macroeconomic tougher particularly half

a result, adjusted mix will As revenue impact likely EBITDA margin.

to mentioned to we that focused continue ensuring continue provide controls in be areas next up us We’ll XXXX targeted will selectively our guidance for call. invest strong to on a year on full growth As set recovery. earlier, cost earnings while we

turn the call I’ll portion a of back that, the call. to With for today’s operator Q&A

Operator

Our your question. Goldman you. Chandni question the with comes of go Instructions] Sachs. Thank [Operator first with Luthra Please from line ahead

Chandni Luthra

you taking Thank afternoon. good Hi, question. my for

your of basically think guys elaborate pull then have Thank focused mentioned you’ve I cost that please at management. are terms exactly? you I’m the what Could disposal? sorry. you levers perhaps EMEA that are or that what cuts cost So you targeted was on you’ll you APAC, you more to maybe And said these are elaborate that you. Could in already in implemented

John Forrester

Chandni, question. the Hi, John. for is This thanks

moving was work region. the actions that we any across of business, We targeted the We’ve there of actioned not half whole to when this blip one the us. just felt to in was already be likely there. line think a at turn the I cost market began the specific end against

million end answer I’d question tool cost up of the cost Wakefield in highly your showing over management that that focused a structural expand way extremely that been in And of to out some on is actually, Cushman last particular, $XX we, also and three the the our So using XXXX. our as years, have margin. – is is that, been of back period. & million $XXX taken during also

as deployment action taking the on costs in discretionary already in as transactional line extremely in business seeing changes well we’re our strip our that with on cash cautious Now top being we out of areas. of that, are volume to

management cost think I So as the period. extremely done recent we’ve that a well team over

isn’t build said company. in the more as muscle plan We’ve cost a add by Wakefield Neil, structure. in in the That formed close. memory this want is and that call, plans we’ll our we of impact his to deep do guidance on being on out within anything the as actual fully seeing year, you financial Neil peers I’m applied at already point. it the And Cushman that type put & give nothing cost will year, there’s for our to this But that? year-end material already have next to

Neil Johnston

John. I well, think you Yes. it said

Chandni Luthra

Now macro understand but more think I Look, how I kind capital an get trajectory and Help I incremental rates your get at? given leverage comfortable totally just color where given leverage? thank allocation you. you’d where we understand to XXXX, was also the around your just should worse it’s of of that. So about going right? that, environment, incrementally how us around into is And interest think going hoping

Neil Johnston

Sure, Chandni.

strong as feel we’re overall quarter still up moved feel move liquidity, our the very we in range slightly, the very position very in for which Leverage a at in it’s we but in. As we comfortable we look XXXX. into like

on We XXXX, feel as move very but as we next like well-positioned clearly year. are we focused we flow cash go into we’re into

Chandni Luthra

Thank it. you. Got

John Forrester

the adding here. In terms – it’s – John Chandni, a of little just

capital, us in actual relatively to we’ll the first half. careful of of use and terms extremely likely In muted be be

Chandni Luthra

Understood. so Thank much. you

Neil Johnston

Chandni Thanks,

Operator

of Please question. your Anthony Stanley JPMorgan. Our with next question line comes from with the Paolone Morgan proceed –

Anthony Paolone

first Thank clarifying a guess Okay. and just hi, question, you I one.

you think that mentioned in I the sequentially year-over-year? or think, quarter, flat. I Was PM/FM, fourth

Neil Johnston

year-over-year. Tony, really it’s lower little than why reason is things. And it year-to-date is that’s the two a

on roll off. roll are all, plan, of there that in our contracts and First so contemplated as

expect we in is business then to our than a be year throughout growth a more little the the also, of fourth we’ve muted quarter. the So And seen lot in PM/FM Asia-Pacific.

be headwinds some there so FX will there. And

very we feel So the about business. overall, good

We into up expect going next expect this year. to see and that strength nicely year

Anthony Paolone

just and Okay. appreciable to of the change that RFPs things Has there and any pipeline nature? been

John Forrester

John. to in the last nice momentum continues No, is our years businesses PM/FM we’ve of in the this sort Tony, two general seen rate. years at same the the world across three

rate. have a win good really We

showing numbers We have year-to-date. up in actually in a really good That’s and retention rate. this quarter the

And that’s will surrounding we try we revenue to outsourcing. this the totally recessionary it’s economy that corporates do real with continue businesses expect said, cost move well own actually that the Traditionally, as reduce think in at base, to recurring can times, Neil that point. And macro continue on. estate, pretty applied to to their through as so volatility the

Anthony Paolone

you I Okay. that up put I of for your some than maybe in And China, can peers. framework commentary some it maybe big more if just but a around how mean, the on a is business you come bit because drag, all your understand

John Forrester

in point, Vanke the Happy And a John way structured to. estate business been a our we services real remember, We’ve might it’s Tony. this leader at long in China. you here, with venture is Again, joint did Services.

placed I our with where over we now, ago years recurring leader. market that business think two revenue

EBITDA. a means of of flow-through the only So that we structure that

is China year largely we us business likely on hits course, the a year muted transactional very full is that little, the when to straight within line. now EBITDA And – the activity. down see Greater of little So the through just full extremely as it

ultimately, is this released. year a tailwind headwind a Now us what to becomes once

business So particularly in revenue, which there. have revenue this isn’t in recurring But we Asia-Pacific, of estate of pleasing drives because APAC are it material fundamentals volatility extremely to the the large about in overall optimistic ultimately, and business, we growth. continued real terms terms

Anthony Paolone

would to one had look X% think, area I Is your if with trying Got my million, OpEx I target I was the that protect declines. $XXX to that on Okay. reduce you up, at was side. volume just mentioned then And margins? third the try of cost John, kind year-over-year. cost is the you to it. think, last thereabouts, quarter And commensurate

variable I’m not So if that just because that be much to it’s out trying pretty costs to wrong. or understand it or other already of come how maybe are hard at just line the looking may got

Neil Johnston

you’ve are you variable. XX% About of think right. our it I costs, Tony, as know, got

we just So are That’s things those – sort thing. like T&E, already About move of control. things those will initiated cost costs that we of discretionary semi-variable. where move and the like will spend, XX% are are Those revenue. marketing, with have

so quickly our where are savings costs And that costs the And costs already variable we go see will think take But address longer. then XX% and really more will you some very those is it those come about as about actioned. of there in fixed, into where down year. costs, – that’s revenue. costs this the That’s we’ll next as drop are you with that

Anthony Paolone

both just percentages OpEx gave, as well total, that of just cost those And line… you not as across that’s OpEx, Okay. services

Neil Johnston

is absolutely right. That

John Forrester

You are.

Anthony Paolone

Okay.

John Forrester

You’re right.

Anthony Paolone

Okay. Thank you.

Operator

question with Citi. Please the your line comes proceed next of from Our with Michael question. Griffin

Michael Griffin

leasing Thanks. Great. It a can solid. clients, if it’s John’s your Maybe space? to seems from are more less they’re And the they’re sense from go decisions? office your have taking do notice looking these different pretty like space back comments on we or they outlook, demand. making occupier anything you you for still Do when

John Forrester

I’m an month really because elaborate leasing. some higher-quality in now But It was thanks. truly really us on things organization, to a fact to a QX. while globally. the for it us – highlighted we about we’ve of that been assets showed for the in happy quarter focus sorry, tend for Michael, solid talking as on that up

was quality far class good highly more Billion quarter, A sustainable C. real terms in that within and levels both a asset to the I then and Class muted, highly the A flight of meant estate the So traded through that in believe, Class leasing in

terms lease being then So norms. quality. are within to by back there, signed pre-pandemic the to occupiers that, flat And

it see from a office as the occupational before important the there’s commitment market was pandemic. as to therefore, So

evolving some space, the more And of seeing lesser hybrid of of occupiers terms this environment in looking we ultimately, point, takes. this in sectors in at we are slightly are user at amount space. some Now

that of is our which dynamic one the similar remind the call both market, point, utilization that very and revenue of of not everybody specifically we’re the volume utilized. – the relies final back total in But vast absorption ultimately, around the to majority pre-pandemic type on space I’d And norms the of in and amount desk change cities in on deal are seeing. world net the

happen in it’s point. just New located, are visible actually, going very cities, But San other some this very a to more of be Francisco, there many have there’s London, notable be tends – commute that are where headquarters meant where which global major and to York, times leasing on that long market office at terms dynamic challenges

think, B would market sitting new that point, considerable viability at the of quite coming makes on what I the say which the through increases But of see and development refit seeing is C market. which cost the focus difficult, some finally, I we’re construction this in the a will portfolios

as come Grade they isn’t allocated there sustainable release aligned to a more A So up capital satisfy point, actually, to supply because actually will through once to enough those being highly this high-quality at assets will assets, highly demand demand. which globally is corporate sustainable

Michael Griffin

this in to you make pretty know plan Does cross-selling address of muted really past. I just you. And the side focus near-term. how then cross-selling the opportunities just the lines. harder? business about market a being I And the for seemingly one on there. other capital would color that? you’ve one business, across the And appreciate with that talked Got maybe

John Forrester

The by services of of play our clients. suite Wakefield Cushman the organizations provided needs full & like to

lack tenants, provision from provision but very to and of this they tend When the the you’re owner focused capital to streams their quality have return of at down high-quality focused management classes. all them, of of terms on those the retention trading activity ones really the that think get in on across on office a to double the point, of I property particularly there. high-quality so services asset So sales the occupiers of we’re in but income they there’s the to in seeing on focus investor skills, markets,

sell of to deals – doubling be ability just occupiers need who recent also through lid sort of yes, on level whilst a is longer I’d there the our this their of are continues at be services owners markets down broader years. it us refinance at of to to capital that a of set to assets to sorry, So likely for course, point. going a at highlight, muted in the terms actual the sales at may this of there point, holding

can we will next business, also equity period. the that opportunity. in continue not It’s side provide also this So in that’s debt capabilities. sales And our through refinance but the of the it’s where just

Michael Griffin

All right. That’s it for the me. for Thanks time.

Operator

with question. from line Our William with proceed your of Stephen next the Blair. Sheldon question Please comes

Pat McIlwee

Hi, thanks.

You’ve Stephen’s got Pat today. McIlwee team on for

expect leases, office through? So of some of that that flow with to somewhere of kicked has ballpark. leases those these given that in think I can do seen? the that, or bit due But a each some we be think largely pent-up come demand leases you of generally, year, pent-up been to road seeing still just Or down that shorter-term short you’ve been is XX%

Neil Johnston

No.

in years. period the that of or we’re lease we’re that globally. in caution corporate or volatility the in the the towards think most where period part was market I occupiers by normalized relocations there approach And a general with occupiers. now pandemic one I they think Yes, two seeing kicked renewals relatively a by and

this that of continue. falls expect long there’s immune also global be pre-pandemic seeing high of There of may office sort that future norms couple And renewals whilst we’re from don’t kicked to of cans element because GDP GDP be in system now. lease more think and the in and that’s a truly We years, what revenues is. do actually correlation the in job to as particular, settle over particularly and the growth. next they But being the our short-term leasing think on we of will organizations

Pat McIlwee

Understood.

things, exposure line briefly. remarks, had talk more quarter prepared Okay. touched with if DCM which And maybe a in said and But business then just now ask switching relatively in you multi-family on the more bit gears, there. great expectations. can to in with you I and bit of just you quarter the want performed performed side a what saw zone, got you about how end, to that the that specifically you’ve towards

Neil Johnston

prepared it performing the yes, in we’re very remarks, as So we’d quarter. about clear expected the

quarters with ownership relationship our Greystone. into three now We’re

beginning Our go-to-market and really gel teams together. to are

We that a have market sales we’re for found has market been totally U.S. proposition positive grow in share to in equity beginning very multi-family. and that debt us,

we’re the with So market teaming we’re that the doing primary of pleased the part at acquisition as the this with multi-family full-service with U.S. very the globally our provider Greystone be but in team. ultimately, point, the And to plan future. in the in

Pat McIlwee

me. great. Thank all That’s That’s Okay. you. for

Operator

[Operator Patrick line next comes James. proceed with your Raymond Instructions] the from Our question. Please with question O’Shaughnessy of

Patrick O’Shaughnessy

Heyy good evening.

of negative that flow seasonality about then you remainder this probably for over more you there’s last your had $XXX cash year’s in XXXX? million. year-to-date, operating Obviously, the importantly year thinking cash flow and So to But taxes pay cash how some was for earnings. are

Neil Johnston

Patrick. Sure, Yes.

we the In actually cash third cash. million had You’re positive right. quarter, flow, $XX

the see And flow. flow, the was half the things, had the cash impacted is back a inflow This in you unique Our first always outflow we of year. in know, We year half cash an of see that year year. seasonal. the in then as which three we

the year throughout we as performance. we out first, said bonus XXXX the higher significantly paid tied and that was commissions to The

got December, in So this out year. those performance, paid especially the big –

a on this was year. cash that flow drag So

off taxes slightly higher. some roll cash had We also NOLs

impact. our increase some PM/FM payments abnormal and there with then reimbursable business, of working that of was the timing so negative receivables, had a And an mismatch

So difference the of related year. timing majority is the really this

flow XX% in into over remains Cash cash next cash rate As year cash remain our again, cycle, we higher. once we last be we to lower. will conversion. focused And significantly look year, and as the flow year Cash flow XX% to flow next on very was range. conversion that year this then go

Patrick O’Shaughnessy

helpful. All that path right. is you’re actions double-digit then margins cost taking? And there to given That’s adjusted EBITDA the a back APAC,

John Forrester

particular, think China. likely the the APAC reopening think in Patrick, most be path I transactional will I back Greater and in business pickup – the a across of

I there. very As a out have large-scale PM/FM say, business we

from digits So come alone. driving within line necessarily up double service doesn’t to that

to the come We issue with mix do back need transactions.

Given we’re sites. huge OpEx business PM/FM, so we being where much But is of out a whole the very and labor to cost cautious There this amount of isn’t largely actually find that of earlier. immune a not to that. on There’s to client opportunities question there applied therefore, applied APAC huge across our OpEx business. business amount is

Patrick O’Shaughnessy

All Thank right, understood. you.

Operator

Morgan question from comes next your Our proceed Please Ronald of the question. Kamdem line with with Stanley.

Ronald Kamdem

Hey, just question. cash flow quick a the ones back to of couple

the odd years. sense – your sort Granted you talked we XXXX some I back, think I a are mean take and of usually or to? when operating year-to-year cash rate of But flow on of about that run step guess should annual what’s sort the historically seasonality in that the of be I thinking so of differences right? the forth, minds, number sort about you trends year-to-year. the what’s business XXXX the and what’s of

Neil Johnston

Yes.

based the run. I cash use pretty that on So long that two target to adjusted close I think years, if you take the rate would the the of conversion And to XX% is a EBITDA. XX% you’re average over getting

cash as I – it’s think this said, lot a I timing. flow of year’s was

You saw said. was the last very higher I as we’ve significant, think expected, than year

So as the guide you business. look forward that’s probably a to good

Ronald Kamdem

for going terms back commentary of thinking the and there again then some PM/FM got in what comments at remind leasing color you any And XQ, the just that were sort to Okay. I’ve of year-over-year can flat. growth. of us Maybe you Great. on

missed I think that. I

Neil Johnston

and the Yes, that sure. At big this point, given the significant uncertainty fact month. December the fourth is we’re move into such quarter seeing as we a

brokerage. that be given down we around going What conscious not significantly. we then also guidance and guidance protecting are be given and fact specific extremely expect cost that around providing We we are expect to that are is the margin it And cost-focused we’ve we the margin. to saying

So fight difficult our will best it’s higher you against to through. has see the that, which margin We’ll a obviously that to but protect very flow brokerage, do mix.

margin. the that’s what’s so impacting And

Ronald Kamdem

my departments, there, sort the question on just commentary the of was think of those on well. Maybe or is, as Thanks. last how are helpful. really about Maybe verticals, some then industrial, And hotels views you some love I Great. I’d other commentary whatever. think office there as opportunities performing, even

John Forrester

large classes. with deal I’ll So asset the very

talk I the was tape vacancy the in and only logistics, the commentary X% as or U.S. piece generally, think logistics you I that with strong very said leasing still quarter if the rates industrial in in about

likely continue, do So long-term. to through the certainly we that think that, is

of required we robust retail the evolving very it a than think continue in newer line, the is historically. see of the response asset lower I leasing a a real significantly showing pleasing nature by classes. is from to the Retail the amount story growth physical base towards service But although in change world, long-term is in retail and

on centers touched through to that far growth in areas. this year work other that we’ve pleasing in point could from and comes Life I the Sciences. so I seen the growth data similar we do growth secular

at a So classes level. the a location of you in the offices, of look need the the level office, way discussed wrong in to office, asset quality sustainability because office, need make to most it’s of to more same the granular a in way – for be generalization the potentially the

do point. expect nicely on brand the from in at macro economy whole, for as the on quarter be GDP global the but and the through reflecting our we impacts in this strength said, three that very to not the flowing it markets, up position showed leasing I of they’re immune But us, and

Ronald Kamdem

Great. so much. Thanks

Operator

will now for further the no at this closing remarks. questions call are turn John time. over to There Forrester I

John Forrester

Thank members and continue Wakefield, for of clients our Thank your all everybody we you ongoing course, Just today, you. and for & our listening. to all for to time. and Cushman of our at course, team say joining thank for relationships and clients, great support of look here all you forward of those us with our of

Operator

That and today. for please does your conclude you for disconnect you thank ask the that call conference participation your lines. We

Cushman & Wakefield (CWK) 3 Nov 222022 Q3 Earnings call transcript