CBRE GROUP, INC.
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
CBRE$135.51-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001138118-25-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001138118-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 162 previous paragraphs and 216 current paragraphs.
99 unchanged; 59 reworded; 36 added; 4 removed; 0 previous and 22 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
The operating environment for commercial real estate continued to recover in the first half of 2025. This was evident in notably strong occupier demand for office space in most parts of the world, particularly in the U.S. Real estate sales and financing activity also continued to rebound strongly. Demand for facilities and project management services remained underpinned by large occupiers’ growing appetite for outsourcing real estate services. Concerns over rapidly changing U.S. trade policy and higher tariffs have not yet materially affected real estate transaction activity. However, we continue to monitor their potential impacts on investor and occupier sentiment as well as capital deployment and real estate occupancy decisions.
Current report
Cost of revenue increased 16.9% during the quarter as compared to the same period in 2024 primarily due to revenue growth consisting of higher pass-through costs, higher commission expense, and higher indirect reimbursed costs. Foreign currency translation had a 1.1% negative impact on total cost of revenue. Cost of revenue increased slightly to 81.4% of total revenue from 81.0% driven by higher costs to support growth in revenues.
Current report
Gain on disposition of real estate increased by $19 million during the quarter, driven by monetization of real estate development assets in the REI segment.
Current report
Legislative Developments
Current report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA), a budget reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017, was signed into law. The Company is evaluating the impact of the legislation and forthcoming administrative guidance and regulations to our financial statements and results of operations.
Current report
We reported consolidated net income of $378 million for the six months ended June 30, 2025 on revenue of $18.7 billion as compared to consolidated net income of $256 million on revenue of $16.3 billion for the six months ended June 30, 2024.
Current report
Foreign currency translation had a 0.4% negative impact on total revenue during the six months ended June 30, 2025, primarily driven by weakness in the Canadian dollar and Mexican peso, partially offset by strength in the British pound sterling.
Current report
Operating, administrative and other expenses increased 7.2% as compared to the same period last year. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in bad debt expenses. Foreign currency translation had a 0.2% positive impact on total operating expenses during the six months ended June 30, 2025. Operating expenses as a percentage of revenue decreased to 13.2% from 14.1%, as operating expenses grew slower than revenue.
Current report
Gain on disposition of real estate increased by $6 million during the six months ended June 30, 2025, driven by monetization of real estate development assets in the REI segment.
Current report
Cost of revenue increased 14.6%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 0.7% negative impact on total cost of revenue. Cost of revenue of total revenue remained flat at 58.3% for both periods, as costs of revenue increased proportionately with the increase in revenue.
Current report
Operating, administrative and other expenses increased by 3.4%, as compared to the same period in 2024, primarily due to higher business promotion, advertising and travel expenses and employee compensation, driven by the growth in the business. Foreign currency translation had a 0.7% negative impact on total operating expenses.
Current report
Revenue increased 14.0% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Global leasing revenue rose 15.5%, driven by Americas which grew 17.0%, including 18.2% in the United States and the United Kingdom, which grew 22.1%. Property sales revenue increased 15.5%. Foreign currency translation had a 0.4% negative impact on total revenue during the six months ended June 30, 2025, primarily driven by weakness in the Canadian dollar and Australian dollar, partially offset by strength in the British pound sterling.
Current report
(1)Calculated as a percentage of Total Revenue.
Current report
Cost of revenue increased 18.7%, driven primarily by higher pass-through costs. Foreign currency translation had a 1.1% negative impact on total cost of revenue. Cost of revenue was 90.1% of total revenue, and remained flat compared to 90.1% in the second quarter 2024.
Current report
Operating, administrative and other expenses increased 8.0%, primarily due to an increase in bad debt expense. Foreign currency translation had a 1.3% negative impact on total operating expenses during the quarter.
Current report
Revenue increased 16.4% for the six months ended June 30, 2025 as compared to the same period in 2024, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees well as the impact from acquisitions. Foreign currency translation had a 0.3% negative impact on total revenue, primarily driven by weakness in the Canadian dollar and Mexican peso, partially offset by strength in the British pound sterling.
Current report
Cost of revenue increased 16.1%, driven by higher pass-through costs. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue was 90.3% of total revenue, a slight decrease from 90.5% for the six months ended June 30, 2024.
Current report
Operating, administrative and other expenses increased 5.1%, primarily due to increase in bad debt expense, higher business promotion, advertising and travel expenses partially offset by lower acquisition and transaction related costs. Foreign currency translation had a 0.2% positive impact on total operating expenses during the six months ended June 30, 2025.
Current report
Operating, administrative and other expenses increased 6.1%, primarily due to higher business promotion, advertising and travel and higher employee compensation expenses. Foreign currency translation had a 2.6% negative impact on total operating expenses during the quarter.
Current report
Revenue increased 10.9% for the six months ended June 30, 2025 due to continued strong performance from the legacy Turner & Townsend business. Foreign currency translation had a 0.2% negative impact on total revenue, primarily driven by weakness in the Mexican peso, Australian dollar and Canadian dollar, partially offset by strength in the British pound sterling.
Current report
Cost of revenue increased 11.2%, driven by higher pass-through costs and increased professional compensation. Foreign currency translation had a 0.3% positive impact on total cost of revenue. Cost of revenue was 86.5% of total revenue, a slight increase from 86.2% for the six months ended June 30, 2024.
Current report
Depreciation and amortization expense decreased 8.9%, reflecting lower amortization expense due to intangible assets being fully amortized in 2024.
Current report
Revenue decreased 7.3% for the current quarter primarily due to lower development fees from Telford and lower carried interest partially offset by higher asset management fees in the Investment Management business. Foreign currency translation had a 1.8% positive impact on total revenue during the quarter primarily driven by strength in the British pound sterling.
Current report
Operating, administrative and other expenses increased 7.7% primarily due to an increase in total compensation in our investment management line of business. Foreign currency translation had a 1.8% negative impact on total operating expenses.
Current report
Revenue decreased 2.6% for the six months ended June 30, 2025 primarily due to lower development fees from Telford and lower carried interest, partially offset by higher asset management fees in the Investment Management business. Foreign currency translation had a 0.2% positive impact on total revenue during the six months ended June 30, 2025, primarily driven by strength in the British pound sterling.
Current report
Cost of revenue decreased 18.0% for the six months ended June 30, 2025 as compared to the same period in 2024 due to lower construction costs incurred on our real estate development projects. Foreign currency translation had a negligible impact on total cost of revenue during the six months ended June 30, 2025.
Current report
We recorded equity loss from unconsolidated subsidiaries of approximately $9 million versus equity income of $15 million during the same period in 2024, primarily due to negative co-investment returns in the current quarter. Gain on disposition of real estate increased by $6 million compared to the same period in 2024 due primarily to gains recognized upon monetization of real estate development projects.
Current report
Core corporate
Current report
Other (non-core)
Current report
On May 12, 2025, we issued $600 million in aggregate principal amount of 4.800% senior notes due in 2030 and $500 million in aggregate principal amount of 5.500% senior notes due in 2035, generating aggregate net proceeds of approximately $1.1 billion after offering expenses. On May 28, 2025, we used a portion of the proceeds from this offering to redeem in full the $600 million aggregate outstanding principal amount of our 4.875% senior notes due 2026.
Current report
On May 12, 2025, CBRE Services issued $600 million in aggregate principal amount of 4.800% senior notes due June 15, 2030 (the 4.800% senior notes) at a price equal to 99.065% of their face value. The 4.800% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 4.800% per year and is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2025.
Current report
On May 12, 2025, CBRE Services issued $500 million in aggregate principal amount of 5.500% senior notes due June 15, 2035 (the 2035 5.500% senior notes) at a price equal to 99.549% of their face value. The 2035 5.500% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 5.500% per year and is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2025.
Current report
•the impact of fair value adjustments related to unconsolidated equity investments,
Current report
•business and finance transformation,
Current report
•efficiency and cost-reduction initiatives,
Current report
•net fair value adjustments on strategic non-core investments.
Removed paragraphs (4)
Previous report
The operating environment for commercial real estate improved in the first quarter of 2025, continuing the recovery that began in 2024. This was evident in real estate leasing, notably demand for office space in the U.S. Improved liquidity and investor sentiment also led to a continued increase in real estate sales and financing activity. Outsourcing services continued to gain favor with major corporations and other large occupiers of space, boosting demand for facilities and project management services. The business outlook, however, has been clouded by the extreme market volatility triggered by the imposition of sharply increased tariffs on U.S. trading partners and the rapid changes in U.S. trade policy. We continue to assess the impact of market volatility on our clients’ investment, occupancy and capital deployment decisions and on general economic growth in the U.S. and globally.
Previous report
Cost of revenue increased 13.5%, driven by higher pass-through costs. Foreign currency translation had a 2.0% positive impact on total cost of revenue. Cost of revenue was 90.5% of total revenue, slightly down from 90.8% in the first quarter 2024.
Previous report
Operating, administrative and other expenses increased 2.1%, primarily due to higher compensation and benefits costs. Foreign currency translation had a 1.7% positive impact on total operating expenses during the quarter.
Previous report
Revenue increased 2.2% for the current quarter primarily due to higher incentive fees in our investment management services line of business. Foreign currency translation had a 1.7% negative impact on total revenue during the quarter primarily driven by weakness in the euro and British pound sterling.
Reworded paragraphs (59)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the three months ended March 31, 2025 should be read in conjunction with our consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K (2024 Annual Report) as well as the unaudited financial statements included elsewhere in this Quarterly Report.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the three and six months ended June 30, 2025 should be read in conjunction with our consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K (2024 Annual Report) as well as the unaudited financial statements included elsewhere in this Quarterly Report.
Previous wording
We repurchased approximately $407 million worth of shares in the first quarter and nearly $600 million this year through April 21, 2025, while maintaining substantial liquidity to finance future growth.
Current wording
We repurchased approximately $256 million worth of shares in the second quarter and $663 million through June 30, 2025, while maintaining substantial liquidity to finance future growth.
Previous wording
The following table sets forth items derived from our consolidated statements of operations for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
The following table sets forth items derived from our consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
We reported consolidated net income of $163 million for the quarter, on revenue of $8.9 billion as compared to consolidated net income of $126 million on revenue of $7.9 billion in the prior year.
Current wording
We reported consolidated net income of $215 million for the quarter, on revenue of $9.8 billion as compared to consolidated net income of $130 million on revenue of $8.4 billion in the prior year.
Previous wording
Foreign currency translation had a 1.9% negative impact on revenue, reflecting the weakness in the euro, Canadian dollar and British pound sterling.
Current wording
Foreign currency translation had a 1.1% positive impact on revenue, reflecting strength in the British pound sterling and the euro partially offset by the Mexican peso.
Previous wording
Operating, administrative and other expenses increased 7.3% as compared to the same period in prior year. The increase was driven by an increase in third-party fees related to acquisitions and integrations activities. Foreign currency translation had a 1.8% positive impact on total operating expenses during the quarter. Operating expenses as a percentage of revenue decreased to 13.4% in the first quarter 2025 from 14.0% in the first quarter 2024, as operating expenses grew slower than revenue.
Current wording
Operating, administrative and other expenses increased 7.1% during the quarter as compared to the same period in 2024. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in bad debt expense. Foreign currency translation had a 1.2% negative impact on total operating expenses during the quarter. Operating expenses as a percentage of revenue decreased to 13.1% in the second quarter 2025 from 14.2% in the second quarter 2024, as operating expenses grew slower than revenue.
Previous wording
Depreciation and amortization expense increased by 12.0% during the quarter, as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions such as Industrious and J&J Worldwide Services.
Current wording
Depreciation and amortization expense increased by 13.0% during the quarter, as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions such as Industrious.
Previous wording
Interest expense, net of interest income, increased by 38.9%, compared with the first quarter 2024. This increase was primarily due to the impact of increased commercial paper borrowings and the issuance of senior term loans.
Current wording
Interest expense, net of interest income, decreased by 6.3%, compared with the second quarter 2024. This decrease was primarily attributable to increased net investment hedging activity, offset by the impact of increased commercial paper borrowings and the issuance of senior term loans and new senior unsecured notes.
Previous wording
Our provision for income taxes on a consolidated basis was $52 million for the three months ended March 31, 2025 as compared to a benefit from income taxes of $29 million for the three months ended March 31, 2024. The increase of $81 million is primarily related to an increase in current year earnings and a prior year benefit for the reversal of unrecognized tax positions. Our effective tax rate increased to 21.4% for the three months ended March 31, 2025 from (24.3)% for the three months ended March 31, 2024. Our effective tax rate for the three months ended March 31, 2025 is different than the U.S. federal statutory tax rate of 21.0%, primarily due to U.S. state taxes and favorable permanent book tax differences.
Current wording
Our provision for income taxes on a consolidated basis was $61 million for the three months ended June 30, 2025 as compared to a provision for income taxes of $32 million for the three months ended June 30, 2024. The increase of $29 million is primarily related to an increase in current year earnings. Our effective tax rate increased to 20.3% for the three months ended June 30, 2025 from 18.5% for the three months ended June 30, 2024. Our effective tax rate for the three months ended June 30, 2025 is different than the U.S. federal statutory tax rate of 21.0%, primarily due to U.S. state taxes and favorable permanent book tax differences.
Previous wording
The revenue increase reflected growth in leasing activity, particularly for office space, commercial mortgage origination, property sales, and continued growth in the Business, Operations & Experience (BOE) segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased driven by continued strong performance from Turner & Townsend and higher management fees. Revenue increased in the REI segment, driven by higher incentive fees.
Current wording
The revenue increase of 14.3% reflected growth in leasing activity, particularly for office space, commercial mortgage origination and property sales in the Advisory segment and continued growth in the BOE segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased, driven by continued strong performance from the legacy Turner & Townsend business. Revenue decreased in the REI segment, driven by lower carried interest.
Previous wording
Cost of revenue increased 12.2% during the quarter as compared to the same period in 2024 due primarily to revenue growth consisting of higher pass-through costs, higher commission expense, and higher indirect reimbursed costs. Foreign currency translation had a 1.9% positive impact on total cost of revenue. Cost of revenue decreased slightly to 81.5% of total revenue from 81.6%.
Current wording
Cost of revenue increased 14.6% during the six months ended June 30, 2025 as compared to the same period in 2024 primarily due to revenue growth consisting of higher pass-through costs, higher commission expense and higher indirect reimbursed costs. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue increased slightly to 81.5% of total revenue from 81.3%.
Previous wording
We reported equity income of $16 million in the current quarter versus equity loss of $58 million in last year’s first quarter. This was primarily driven by net unrealized gains related to equity investments recognized in the current period compared to unrealized equity losses in the prior quarter, driven by a fair value adjustment related to our non-core strategic equity investment in Altus Power, Inc. (Altus).
Current wording
We reported equity loss of $2 million during the six months ended June 30, 2025 compared to equity loss of $73 million in the same period in 2024. The decrease was primarily driven by higher unrealized equity losses in the prior period, driven by a fair value adjustment related to our non-core strategic equity investment in Altus.
Previous wording
In January 2025, we combined our project management business with our Turner & Townsend majority-owned subsidiary and created a fourth reportable segment, Project Management. In addition, on January 16, 2025, we acquired full ownership of Industrious, a provider of premium flexible workplace solutions, and established a new business segment, BOE, comprised of enterprise and local facilities management, property management and flexible workplace solutions.
Current wording
In January 2025, we combined our project management business with our Turner & Townsend majority-owned subsidiary and created a fourth reportable segment, Project Management. In addition, on January 16, 2025, we acquired full ownership of Industrious, a provider of premium flexible workplace solutions, and established a new business segment, Building Operations & Experience (BOE), comprised of enterprise and local facilities management, property management and flexible workplace solutions.
Previous wording
In connection with the transactions described above, we organized our operations around, and publicly report our financial results on, four reportable business segments: (1) Advisory Services; (2) Building Operations & Experience (BOE); (3) Project Management; and (4) Real Estate Investments (REI).
Current wording
In connection with the transactions described above, we organized our operations around, and publicly report our financial results on, four reportable business segments: (1) Advisory Services; (2) BOE; (3) Project Management; and (4) Real Estate Investments (REI).
Previous wording
Advisory Services provides a comprehensive range of services globally, including property leasing, capital markets (property sales and loan origination), loan servicing, property management, and valuation. BOE provides a broad suite of integrated, contractually based outsourcing services to occupiers and owners of real estate, including facilities management and property management. Our Project Management business delivers program management, project management and cost consultancy services across commercial real estate, infrastructure and natural resources sectors. REI is a major real assets developer, investor and operator and is comprised of two businesses: investment management and real estate development.
Current wording
Advisory Services provides a comprehensive range of services globally, including property leasing, capital markets (property sales and loan origination), loan servicing, and valuation. BOE provides a broad suite of integrated, contractually based outsourcing services to occupiers and owners of real estate, including facilities management and property management. Our Project Management business delivers program management, project management and cost consultancy services across commercial real estate, infrastructure and natural resources sectors. REI is a major real assets developer, investor and operator and is comprised of two businesses: investment management and development services.
Previous wording
The following table summarizes our results of operations for our Advisory Services operating segment for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Advisory Services operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
Revenue increased 13.4% during the quarter compared to the same period in 2024. Global leasing revenue rose 17.6%, driven by Americas which grew 21.4%, including 23.8% in the United States and the United Kingdom, which grew 9.3%. Property sales revenue was up 10.8%. Foreign currency translation had a 1.8% negative impact on total revenue during the quarter, primarily driven by weakness in the euro and Canadian dollar.
Current wording
Revenue increased 14.4% during the quarter compared to the same period in 2024. Property sales revenue grew 19.8%, led by data centers, office and retail sales in the U.S. Global leasing revenue rose 13.7%, led by office and industrial leasing, and driven by Americas which grew 13.2%, including 13.5% in the United States and the United Kingdom, which grew 30.8%. Foreign currency translation had a 0.6% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling and euro partially offset by weakness in the Australian dollar.
Previous wording
For the three months ended March 31, 2025, MSRs contributed $22 million to operating income, offset by $35 million of amortization of related intangible assets. The MSR contribution to first quarter 2024 operating income was $13 million and amortization totaled $34 million. The increase was associated with higher origination activity given an increase in financing activities.
Current wording
For the three months ended June 30, 2025, MSRs contributed $32 million to operating income, offset by $37 million of amortization of related intangible assets. The MSR contribution to second quarter 2024 operating income was $23 million and amortization totaled $34 million. The increase was associated with higher origination activity given an increase in financing activities.
Previous wording
Depreciation and amortization expense increased 3.1% primarily due to higher amortization of mortgage servicing rights as described above.
Current wording
Depreciation and amortization expense increased 11.7% primarily due to higher amortization of mortgage servicing rights as described above.
Previous wording
Cost of revenue increased 14.0%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 1.8% positive impact on total cost of revenue. Cost of revenue increased to 57.1% of total revenue from 56.8% for the same period in 2024, primarily due to escalating commission payouts driven by strong revenue growth.
Current wording
Cost of revenue increased 14.4%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue slightly increased to 57.8% of total revenue from 57.5% for the same period in 2024 primarily due to escalating commission payouts driven by strong revenue growth.
Previous wording
Operating, administrative and other expenses increased by 2.9%, as compared to the same period in 2024, driven by higher marketing and software expense. Foreign currency translation had a 2.4% positive impact on total operating expenses.
Current wording
Operating, administrative and other expenses increased by 3.2% for the six months ended June 30, 2025 as compared to the same period in 2024, driven by higher business promotion, advertising and travel expense and higher software expense. Foreign currency translation had a 0.8% positive impact on total operating expenses.
Previous wording
The following table summarizes our results of operations for our Building Operations & Experience (BOE) operating segment for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Building Operations & Experience (BOE) operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
Revenue increased 13.9%, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees. Foreign currency translation had a 2.0% negative impact on total revenue during the quarter, primarily driven by weakness in the euro, Canadian dollar and British pound sterling.
Current wording
Revenue increased 18.7%, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees and reimbursements as well as the impact from acquisitions. Foreign currency translation had a 1.2% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling partially offset by weakness in the Mexican peso.
Previous wording
Depreciation and amortization expense increased 52.2%, reflecting higher amortization expense related to intangibles from recent acquisitions such as Industrious and J&J Worldwide Services.
Current wording
Depreciation and amortization expense increased 8.9%, reflecting higher amortization expense related to intangibles from recent acquisitions such as Industrious.
Previous wording
The following table summarizes our results of operations for our Project Management operating segment for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Project Management operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
Revenue increased 7.4% due to continued strong performance from Turner & Townsend and higher management fees. Foreign currency translation had a 1.9% negative impact on total revenue during the quarter, primarily driven by weakness in the euro.
Current wording
Revenue increased 14.3% due to continued strong performance from the legacy Turner & Townsend business. Foreign currency translation had a 1.4% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling.
Previous wording
Cost of revenue increased 7.5%, driven by higher pass-through costs and increased professional compensation. Foreign currency translation had a 2.0% positive impact on total cost of revenue. Cost of revenue was 86.3% of total revenue, slightly up from 86.2% in the first quarter 2024.
Current wording
Cost of revenue increased 14.9%, driven by higher pass-through costs and increased professional compensation. Foreign currency translation had a 1.3% negative impact on total cost of revenue. Cost of revenue was 86.5% of total revenue, slightly up from 86.1% in the second quarter 2024.
Previous wording
Depreciation and amortization expense fell 13.8%, reflecting lower amortization expense.
Current wording
Depreciation and amortization expense fell 7.1%, reflecting lower amortization expense due to intangible assets being fully amortized in 2024.
Previous wording
Operating, administrative and other expenses increased 35.2%, primarily due to higher employee compensation expenses. Foreign currency translation had a 3.4% positive impact on total operating expenses during the quarter.
Current wording
Operating, administrative and other expenses increased 18.7%, primarily due to higher employee compensation expenses. Foreign currency translation had a negligible impact on total operating expenses during the six months ended June 30, 2025.
Previous wording
The following table summarizes our results of operations for our Real Estate Investments (REI) operating segment for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Real Estate Investments (REI) operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
(2)In early 2025, management made the decision to wind-down Telford Homes’ legacy construction business. A new Telford entity, Telford Living, is developing residential housing in the UK under a new business model under which the company does not self-perform general contracting.
Current wording
(2)In the first quarter of 2025, management made the decision to wind down Telford Homes’ legacy construction business. A new Telford entity, Telford Living, is developing residential housing in the U.K. under a new business model under which the company does not self-perform general contracting.
Previous wording
Cost of revenue increased 9.3% in the quarter as compared to the same period in 2024 due to higher construction costs incurred on our real estate development projects. Foreign currency translation had a negligible impact on total cost of revenue during the quarter.
Current wording
Cost of revenue decreased 36.8% in the quarter as compared to the same period in 2024 due to lower construction costs incurred on our real estate development projects. Foreign currency translation had a 3.6% negative impact on total cost of revenue during the quarter.
Previous wording
We recorded equity loss from unconsolidated subsidiaries of approximately $7 million versus equity income of $11 million in the first quarter 2024, primarily due to net negative co-investment returns in the current quarter. Gain on disposition of real estate decreased by $13 million compared with first quarter 2024.
Current wording
We recorded equity loss from unconsolidated subsidiaries of approximately $3 million versus equity income of $4 million in the second quarter 2024, primarily due to net negative co-investment returns in the current quarter. Gain on disposition of real estate increased by $19 million compared with second quarter 2024, driven by monetization of real estate development assets in the current period versus none in the prior year quarter.
Previous wording
Operating, administrative and other expenses decreased 12.2% primarily due to a decrease in variable incentive compensation in our investment management line of business. Foreign currency translation had a 1.6% positive impact on total operating expenses.
Current wording
Operating, administrative and other expenses decreased 2.5%, primarily due to a decrease in variable incentive compensation in our investment management line of business. Foreign currency translation had a negligible impact on total operating expenses.
Previous wording
Our Corporate segment primarily consists of corporate overhead costs. Other consists of activities from strategic non-core non-controlling equity investments and is considered an operating segment but does not meet the aggregation criteria for presentation as a separate reportable segment and is, therefore, combined with our core Corporate function and reported as Corporate and other. The following table summarizes our results of operations for our core Corporate and other segment for the three months ended March 31, 2025 and 2024 (dollars in millions):
Current wording
Our Corporate segment primarily consists of corporate overhead costs. Other consists of activities from strategic non-core non-controlling equity investments and is considered an operating segment but does not meet the aggregation criteria for presentation as a separate reportable segment and is, therefore, combined with our core Corporate function and reported as Corporate and other. The following table summarizes our results of operations for our core Corporate and other segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Previous wording
Operating, administrative and other expenses for our core corporate functions rose 43.0% to $183 million for the first quarter of 2025, mainly due to higher costs related to M&A deal and integrations.
Current wording
Operating, administrative and other expenses for our core corporate functions rose 15.7% to $177 million for the second quarter of 2025, mainly due to higher costs related to acquisitions and integration activities.
Previous wording
We recorded equity income of $21 million, reflecting the higher value of our investment in publicly traded Altus. This compares with a $71 million loss in first-quarter 2024, reflecting the lower valuation of our investment in Altus. Altus was acquired by a third party on April 16, 2025.
Current wording
We recorded equity income of $23 million, reflecting the higher value of our investment in publicly traded Altus, which was acquired by a third-party on April 16, 2025. This compares with a $93 million loss during the same period in 2024, reflecting the lower valuation of our investment in Altus.
Previous wording
We believe that we can satisfy our working capital and funding requirements with internally generated cash flow and, as necessary, borrowings under our revolving credit facilities and commercial paper program. Our expected capital requirements for 2025 include up to $381 million of anticipated capital expenditures, net of tenant concessions. During the three months ended March 31, 2025, we incurred $64 million of capital expenditures. As of March 31, 2025, we had aggregate future commitments of $183 million related to co-investments funds in our REI segment, $63 million of which is expected to be funded in 2025. Additionally, as of March 31, 2025, we are committed to fund additional capital of $345 million and $54 million to consolidated and unconsolidated projects, respectively, within our REI segment. As of March 31, 2025, we had $2.1 billion of borrowings available under our revolving credit facilities (under both the Revolving Credit Agreement, as described below, and the Turner & Townsend revolving credit facility) and $1.4 billion of cash and cash equivalents. We intend to maintain available commitments under the Revolving Credit Agreement in an amount at least equal to the amount of commercial paper notes outstanding from time to time. As of March 31, 2025 and December 31, 2024, we had $1.6 billion and $175 million, respectively, in outstanding borrowings under the commercial paper program.
Current wording
We believe that we can satisfy our working capital and funding requirements with internally generated cash flow and, as necessary, borrowings under our revolving credit facilities and commercial paper program. Our expected capital requirements for 2025 include up to $363 million of anticipated capital expenditures, net of tenant concessions. During the six months ended June 30, 2025, we incurred $138 million of capital expenditures. As of June 30, 2025, we had aggregate future commitments of $183 million related to co-investments funds in our REI segment, $21 million of which is expected to be funded in 2025. Additionally, as of June 30, 2025, we are committed to fund additional capital of $328 million and $54 million to consolidated and unconsolidated projects, respectively, within our REI segment. As of June 30, 2025, we had $3.3 billion of borrowings available under our revolving credit facilities (under both the 5-Year Revolving Credit Agreement and 364-Day Revolving Credit Agreement, as described below, and the Turner & Townsend revolving credit facility) and $1.4 billion of cash and cash equivalents. We intend to maintain available commitments under the 5-Year Revolving Credit Agreement in an amount at least equal to the amount of commercial paper notes outstanding from time to time. As of June 30, 2025 and December 31, 2024, we had $1.4 billion and $175 million, respectively, in outstanding borrowings under the commercial paper program.
Previous wording
The second long-term liquidity need is the payment of obligations related to acquisitions. Our acquisition structures often include deferred and/or contingent purchase consideration in future periods that are subject to the passage of time or achievement of certain performance metrics and other conditions. As of March 31, 2025 and December 31, 2024, we had accrued deferred purchase consideration totaling $313 million ($204 million of which was a current liability) and $292 million ($199 million of which was a current liability), respectively, which was included in “Accounts payable and accrued expenses” and in “Other long-term liabilities” in the accompanying consolidated balance sheets set forth in Item 1 of this Quarterly Report.
Current wording
The second long-term liquidity need is the payment of obligations related to acquisitions. Our acquisition structures often include deferred and/or contingent purchase consideration in future periods that are subject to the passage of time or achievement of certain performance metrics and other conditions. As of June 30, 2025 and December 31, 2024, we had accrued deferred purchase consideration totaling $331 million ($221 million of which was a current liability) and $292 million ($199 million of which was a current liability), respectively, which was included in “Accounts payable and accrued expenses” and in “Other long-term liabilities” in the accompanying consolidated balance sheets set forth in Item 1 of this Quarterly Report.
Previous wording
Lastly, as described in Note 13 – Income Per Share and Stockholders’ Equity of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report, in November 2024, our Board of Directors (Board) authorized an additional $5.0 billion to our existing $4.0 billion share repurchase program (as amended, the 2024 program) bringing the total authorized amount under the 2024 program to a total of $9.0 billion as of March 31, 2025. The Board also extended the term of the 2024 program through December 31, 2029. During the three months ended March 31, 2025, we repurchased 3,061,972 shares of our Class A common stock with an average price of $132.94 per share using cash on hand for an aggregate of $407 million. During the period April 1, 2025 through April 21, 2025, we repurchased 1,510,751 shares of our Class A common stock with an average price of $117.93 per share using cash on hand for an aggregate of $178 million. As of March 31, 2025 and April 21, 2025, we had $5.4 billion and $5.2 billion, respectively, of capacity remaining under the 2024 program.
Current wording
Lastly, as described in Note 14 – Income Per Share and Stockholders’ Equity of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report, in November 2024, our Board of Directors (Board) authorized an additional $5.0 billion to our existing $4.0 billion share repurchase program (as amended, the 2024 program) bringing the total authorized amount under the 2024 program to a total of $9.0 billion as of June 30, 2025. The Board also extended the term of the 2024 program through December 31, 2029.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (22)
Current report — wording carried from elsewhere
The revenue increase of 16.2% reflected growth in leasing activity, particularly for office space, commercial mortgage origination and property sales in the Advisory segment and continued growth in the Business Operations & Experience (BOE) segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased driven by continued strong performance from the legacy Turner & Townsend business. Revenue decreased in the Real Estate Investments (REI) segment, driven by lower carried interest.
Current report — wording carried from elsewhere
Depreciation and amortization expense increased by 12.5% during the six months ended June 30, 2025 as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions such as Industrious.
Current report — wording carried from elsewhere
Interest expense, net of interest income, increased by 9.1% for the six months ended June 30, 2025 as compared to the same period in 2024. This increase was primarily due to the impact of increased commercial paper borrowings and the issuance of senior term loans and new senior unsecured notes, partially offset by the impact of net investment hedging activity.
Current report — wording carried from elsewhere
Our provision for income taxes on a consolidated basis was $113 million for the six months ended June 30, 2025 as compared to a provision for income taxes of $3 million for the six months ended June 30, 2024. The increase of $110 million is primarily related to an increase in current year earnings and a prior year benefit for the reversal of unrecognized tax positions. Our effective tax rate increased to 20.8% for the six months ended June 30, 2025 from 1.1% for the six months ended June 30, 2024. Our effective tax rate for the six months ended June 30, 2025 is different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and favorable permanent book tax differences.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, MSRs contributed $55 million to operating income, offset by $72 million of amortization of related intangible assets. For the six months ended June 30, 2024, MSRs contributed $36 million to operating income, offset by $68 million of amortization of related intangible assets. The increase was associated with higher origination activity given an increase in financing activities.
Current report — wording carried from elsewhere
Depreciation and amortization expense increased 6.3% primarily due to higher amortization of mortgage servicing rights as described above.
Current report — wording carried from elsewhere
Depreciation and amortization expense increased 28.4%, reflecting higher amortization expense related to intangibles from recent acquisitions such as Industrious.
Current report — wording carried from elsewhere
A roll forward of our AUM by product type for the six months ended June 30, 2025 is as follows (dollars in billions):
Current report — wording carried from elsewhere
We describe above how we calculate AUM. Also, as noted above, our calculation of AUM may differ from the calculations of other asset managers, and as a result, this measure may not be comparable to similar measures presented by other asset managers.
Current report — wording carried from elsewhere
We recorded equity income of $2 million, compared to a $22 million loss in the second quarter of 2024, reflecting the lower valuation of our investment in Altus at the end of the second quarter of 2024. Altus was acquired by a third-party on April 16, 2025.
Current report — wording carried from elsewhere
Operating, administrative and other expenses for our core corporate functions rose 27.7% to $360 million for the six months ended June 30, 2025, mainly due to higher costs related to acquisitions and integration activities.
Current report — wording carried from elsewhere
During the three months ended June 30, 2025, we repurchased 2,123,191 shares of our Class A common stock with an average price of $120.43 per share for an aggregate of $256 million. During the six months ended June 30, 2025, we repurchased 5,185,163 shares of our common stock with an average price of $127.82 per share for an aggregate of $663 million under the 2024 program. As of June 30, 2025, we had $5.2 billion of capacity remaining under the 2024 program.
Current report — wording carried from elsewhere
On June 24, 2025, we entered into a new 364-day senior unsecured Revolving Credit Agreement (the 364-Day Revolving Credit Agreement, and together with the 5-Year Revolving Credit Agreement, the Revolving Credit Agreements). The 364-Day Revolving Credit Agreement provides for a senior unsecured revolving credit facility available to CBRE Services with commitments in an aggregate principal amount of up to $1.0 billion and a maturity date of June 23, 2026.
Current report — wording carried from elsewhere
The 364-Day Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). The 364-Day Revolving Credit Agreement is fully and unconditionally guaranteed by CBRE Group, Inc.
Current report — wording carried from elsewhere
As of June 30, 2025, no amount was outstanding under the revolving credit facility provided for by the 364-Day Revolving Credit Agreement.
Current report — wording carried from elsewhere
•write-off of financing costs on extinguished debt,
Current report — wording carried from elsewhere
•integration and other costs related to acquisitions,
Current report — wording carried from elsewhere
•carried interest incentive compensation expense (reversal) to align with the timing of associated revenue,
Current report — wording carried from elsewhere
•charges related to indirect tax audits and settlements,
Current report — wording carried from elsewhere
•net results related to the wind-down of certain businesses,
Current report — wording carried from elsewhere
•costs incurred related to legal entity restructuring, and
Current report — wording carried from elsewhere
We believe that investors may find these measures useful in evaluating our operating performance compared to that of other companies because their calculations generally eliminate the effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income taxes and the accounting effects of capital spending.