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What changed in CBRE Group's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of CBRE Group's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+334 added−334 removedSource: 10-K (2025-02-14) vs 10-K (2024-02-20)

Top changes in CBRE Group's 2024 10-K

334 paragraphs added · 334 removed · 254 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThis segment benefits from multiple tailwinds, most notably multi-national corporations’ increased desire to outsource and consolidate real estate services to optimize costs, operational efficiencies and workplace experiences. We serve, typically through multi-year contracts, large global corporations including many Fortune 500 firms through our GWS Enterprise business as well as smaller occupiers with more localized portfolios through our GWS Local business.
Biggest changeGlobal Workplace Solutions Global Workplace Solutions (GWS) is the leading global provider of integrated facilities management and project management solutions for major occupiers of commercial real estate. This segment benefits from multiple tailwinds, most notably multi-national corporations’ increased desire to outsource and consolidate real estate services to optimize costs, operational efficiencies and workplace experiences.
GSEs, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; • changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; • litigation and its financial and reputational risks to us; • our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; • our ability to retain, attract and incentivize key personnel; • our ability to manage organizational challenges associated with our size; • liabilities under guarantees, or for construction defects, that we incur in our development services business; • our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; • our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; • cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; • our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, ESG matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; • changes in applicable tax or accounting requirements; • any inability for us to implement and maintain effective internal controls over financial reporting; • the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; • the performance of our equity investments in companies we do not control; and • the other factors described elsewhere in this Annual Report, included under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates,” “Quantitative and Qualitative Disclosures About Market Risk” or as described in the other documents and reports we file with the SEC.
Government Sponsored Enterprises (GSEs), regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; • changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; • litigation and its financial and reputational risks to us; • our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; • our ability to retain, attract and incentivize key personnel; • our ability to manage organizational challenges associated with our size; • liabilities under guarantees, or for construction defects, that we incur in our development services business; • our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; • our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; • cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; • our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; • changes in applicable tax or accounting requirements; • any inability for us to implement and maintain effective internal controls over financial reporting; • the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; • the performance of our equity investments in companies we do not control; and • the other factors described elsewhere in this Annual Report, included under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates,” “Quantitative and Qualitative Disclosures About Market Risk” or as described in the other documents and reports we file with the SEC.
Our client base is comprised of large occupiers and investors who contract for our services across multi-market portfolios as well as local market clients that we serve on a one-off basis.
Our client base is comprised of large occupiers and investors that contract for our services across multi-market portfolios as well as local market clients that we serve on a one-off basis.
The following factors are among those, but are not only those, that may cause actual results to differ materially from the forward-looking statements: • disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; • volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the U.S.; • poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; • foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; • our ability to compete globally, or in specific geographic markets or business segments that are material to us; • our ability to identify, acquire and integrate accretive businesses; • costs and potential future capital requirements relating to businesses we may acquire; • integration challenges arising out of companies we may acquire; • increases in unemployment and general slowdowns in commercial activity; • trends in pricing and risk assumption for commercial real estate services; • the effect of significant changes in capitalization rates across different property types; • a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; • client actions to restrain project spending and reduce outsourced staffing levels; • our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; • our ability to attract new user and investor clients; • our ability to retain major clients and renew related contracts; • our ability to leverage our global services platform to maximize and sustain long-term cash flow; • our ability to continue investing in our platform and client service offerings; • our ability to maintain expense discipline; • the emergence of disruptive business models and technologies; • negative publicity or harm to our brand and reputation; 5 Table of Contents • the failure by third parties to comply with service level agreements or regulatory or legal requirements; • the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; • our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; • the ability of CBRE Capital Markets to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; • declines in lending activity of U.S.
The following factors are among those, but are not only those, that may cause actual results to differ materially from the forward-looking statements: • disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; • volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the U.S.; • poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; • foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; • our ability to compete globally, or in specific geographic markets or business segments that are material to us; • our ability to identify, acquire and integrate accretive businesses; • costs and potential future capital requirements relating to businesses we may acquire; • integration challenges arising out of companies we may acquire; • increases in unemployment and general slowdowns in commercial activity; • trends in pricing and risk assumption for commercial real estate services; • the effect of significant changes in capitalization rates across different property types; • a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; • client actions to restrain project spending and reduce outsourced staffing levels; • our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; • our ability to attract new user and investor clients; • our ability to retain major clients and renew related contracts; • our ability to leverage our global services platform to maximize and sustain long-term cash flow; • our ability to continue investing in our platform and client service offerings; • our ability to maintain expense discipline; • the emergence of disruptive business models and technologies; • negative publicity or harm to our brand and reputation; 5 Table of Contents • the failure by third parties to comply with service level agreements or regulatory or legal requirements; • the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; • our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; • the ability of our indirect wholly-owned subsidiary CBRE Capital Markets, Inc.
We are global market leaders in most lines of business we serve and drive significant growth from bundling these services, while helping our clients optimize real estate costs, value, investment returns and workplace experiences.
We are global market leaders in most of our lines of business and drive significant growth from bundling our services, while helping clients optimize real estate costs, value, investment returns and workplace experiences.
We are focused on cementing our leadership position in each of our businesses with a strategy that achieves diversification and growth across four dimensions: geographies, clients, property types and services. We are committed to deploying our resources and capital across these four dimensions in parts of our business that have secular tailwinds and/or provide cyclical resilience.
We are focused on cementing our leadership position in each of our businesses with a strategy that achieves diversification and growth across four dimensions: geographies, clients, property types and services. We are committed to deploying our resources and capital across these four dimensions in parts of our business that benefit from secular tailwinds and/or provide cyclical resilience.
We also increasingly serve clients for net-zero program management and energy and sustainability solutions. Our scale, highly diverse capabilities and technology investments in this business allow us to solve our clients’ and industry’s biggest challenges in managing capital projects around the world. Real Estate Investments Real Estate Investments (REI) is a large real assets developer, investor and operator.
We also increasingly serve clients for net-zero program management and energy and sustainability solutions. Our scale, highly diverse capabilities and technology investments allow us to solve our clients’ biggest challenges in managing capital projects around the world. Real Estate Investments Real Estate Investments (REI) is a major real assets developer, investor and operator.
While many of our business lines in this segment are sensitive to changes in macro-economic conditions, their cyclicality is partly offset by the value investors and occupiers place on our insights and consulting services through cycles as they adjust their real estate portfolios and strategies in response to changing market circumstances.
While many of our business lines in this segment are sensitive to changes in macro-economic conditions, their 1 Table of Contents cyclicality is lessened by the value investors and occupiers place on our insights and consulting services through cycles as they adjust their real estate portfolios and strategies to changing market circumstances.
We achieve growth by investing in (a) superior talent and processes that deliver account excellence; (b) capabilities to perform a wide range of technical services in-house that increase our clients’ real estate operational efficiency and reliability while reducing carbon emissions and lowering costs; (c) proprietary technology and data solutions that allow us to amass data at scale and deliver actionable insights to clients for managing complex challenges; and (d) ongoing acquisition activity, including larger companies such as Norland Managed Services, which marked our entry into the local facilities management space, and the Johnson Controls Global Workplace Solutions business, which substantially scaled our core enterprise facilities management business, as well as numerous in-fill transactions.
We achieve growth by investing in (a) superior talent and processes that deliver service excellence; (b) capabilities to perform a wide range of in-house technical services that increase operational efficiency and reliability while lowering costs and carbon emissions; (c) proprietary technology and data solutions that allow us to amass data at scale and deliver actionable insights to clients for managing complex challenges; and (d) ongoing acquisition activity, including the acquisition of larger companies such as Norland Managed Services, which marked our entry into the local facilities management space; the Johnson Controls Global Workplace Solutions business, which substantially scaled our core enterprise facilities management business; J&J Worldwide Services, which markedly increased our facilities-related services to the U.S. federal government; and Direct Line Global, which enhanced our capabilities and participation in the data center management space, as well as numerous in-fill transactions.
This segment is comprised of two businesses: investment management and real estate development. With more than $145 billion (as of December 31, 2023) in assets under management, CBRE Investment Management (IM) is one of the leading investment platforms in global real assets.
This segment is comprised of two businesses: investment management and real estate development. With $146 billion (as of December 31, 2024) in assets under management, CBRE Investment Management (IM) is one of the leading investment platforms for global real assets.
Business Segments We serve clients through three business segments: Advisory Services, Global Workplace Solutions and Real Estate Investments, and a fourth segment, called Corporate and other, which encompasses our platform and non-core investments.
Business Segments As of December 31, 2024, we served clients through three business segments: Advisory Services, Global Workplace Solutions and Real Estate Investments, and a fourth segment, called Corporate and other, which encompasses our platform and non-core investments.
Further, federal, state and local governments in various countries have enacted various laws, regulations and treaties governing climate change, particularly for “greenhouse gas emissions” which seek to tax, penalize or limit their release. Such regulations could lead to increased operational or compliance costs over time.
Further, federal, state and local governments in various countries have enacted various laws, regulations and treaties governing management of climate-related risks, particularly for “greenhouse gas” (GHG) emissions which seek to tax, penalize or limit their release. Such regulations could lead to increased operational or compliance costs over time.
For example, as our investor clients seek to optimize the value and performance of their assets across the real estate lifecycle, we often bring together expertise from property sales, mortgage originations, leasing, valuations and property management.
We also focus on end-to-end client solutions through the bundling of our various services. For example, as our investor clients seek to optimize the value and performance of their assets across the real estate lifecycle, we often bring together expertise from property sales, mortgage originations, leasing, valuations and property management.
TCC has been the largest commercial developer in the U.S. for the last ten years and has a track record of developing best-in-class buildings across multiple property sectors in top-tier markets across the U.S. and Europe.
TCC has been the largest commercial developer in the U.S. for more than a 2 Table of Contents decade and has a track record of developing best-in-class buildings across multiple property sectors in top-tier markets in the U.S. and Europe.
These capabilities, combined with our extensive research and data platform, allow us to generate superior outcomes for our clients, which include nearly 90% of Fortune 100 companies in 2023, and many of the world’s largest institutional real estate investors. The future growth opportunity across our company is enhanced by the large and expanding base of commercial real estate assets globally.
These capabilities, combined with our extensive knowledge platform (research, data, strategy, etc.), allow us to generate superior outcomes for our clients, which include nearly 90% of Fortune 100 companies in 2024, and many of the world’s largest institutional real estate investors. Our growth opportunity is enhanced by the large and expanding total addressable market for our services.
In contrast, our loan servicing, property management and valuations businesses, while a smaller part of our revenue mix, have proven to be more resilient than property sales, mortgage originations and leasing through periods of economic slowdown.
In contrast, our loan servicing, property management and valuations businesses, while a smaller part of our revenue mix, have proven to be more resilient across economic cycles.
For example, in the last five years, we have organically grown our loan servicing revenue at a low double digit compound annual growth rate (CAGR) and revenue in both property management and valuations at a mid-single digit CAGR, despite challenging macroeconomic conditions.
For example, in the last six years, we have organically grown our loan servicing revenue at a low-double digit compound annual growth rate (CAGR) and revenue in property management at a mid-single digit CAGR, despite challenging macroeconomic conditions. We remain committed to growing these resilient business lines further, particularly where they benefit from sustained demand tailwinds.
We are leaders in each of our five primary business lines globally (property leasing, capital markets, mortgage servicing, property management and valuation) and in most key local markets across the world.
We are leaders in each of our five primary business lines globally (property leasing, capital markets, mortgage servicing, valuation and property management) and in most key local markets across the world. We leverage our platform to attract and retain top talent and provide differentiated insights to our clients through our investments in research, data, technology tools and property marketing.
Our project management business, which encompasses CBRE’s wholly-owned services and those delivered by our majority-owned subsidiary Turner & Townsend, delivers program management, project management, and cost consultancy services across commercial real estate, infrastructure and natural resources sectors.
Our project management business delivers program management, project management and cost consultancy services across commercial real estate, infrastructure and natural resources sectors. In early 2025, we completed our plan to merge our wholly owned CBRE Project Management services business into Turner & Townsend, our majority-owned program and project management subsidiary.
We believe the platform – ranging from research to marketing to data/technology to procurement and more – is a distinct advantage because of the level of resources and investment that our scale and financial strength allow us to make in these areas. In this segment, we also account for the value of our investments in non-core, non-controlling equity investments.
We believe the platform – particularly our knowledge platform (research, data/technology, strategy, etc.) as well as marketing, procurement and more – provides a distinct advantage because of the level of resources and investment that our scale and financial strength allow us to make in these areas.
With our combined capabilities, we are a leading global, full-service building consulting, program, project and cost management provider, completing nearly 65,000 projects/programs and managing nearly $2.9 trillion in capital spend annually. We manage a wide range of programs and projects from small repairs/refurbishments in corporate facilities to massive infrastructure projects such as airports and power stations.
Our combined capabilities make us a leading global, full-service building consulting, program, project and cost management provider, which completed nearly 50,000 projects/programs in 2024. We manage a wide range of programs and projects from small repairs/refurbishments in corporate facilities to billion-dollar-plus advanced manufacturing plants to sophisticated infrastructure projects such as data centers, airports and power stations.
Our portfolio represents a diversified mix of projects that we either own 100% or participate economically via co-investment with strategic capital partners as well as fee-based developments, such as built-to-suit projects. Our in-process portfolio and pipeline totaled nearly $30 billion (as of December 31, 2023) and spanned industrial, office, multifamily residential, retail, life sciences and healthcare properties.
Our portfolio represents a diversified mix of projects that are either 100% owned or in which we participate financially via co-investment with strategic capital partners or through fee-based developments, such as built-to-suit projects. Our in-process portfolio and pipeline totaled over $32 billion (as of December 31, 2024) and spanned all major asset classes.
We have a track record of generating high investment returns for the company and our capital partners and our conservative, risk-mitigated capital structures enable us to time asset dispositions when market circumstances are most favorable. 2 Table of Contents We drive growth in this segment by: (a) enabling REI’s real-time access to the broader CBRE global brand, boots-on-the-ground market intelligence, and IM’s and TCC’s own investments in research/data that enable them to identify early and invest in secularly favored markets/products with tailwinds; (b) leveraging CBRE’s balance sheet to create opportunities for co-investment alongside our investor clients in our fund vehicles and developments; and (c) benefiting from the strong and continued partnership between IM and TCC.
We drive growth in this segment by: (a) providing IM and TCC real-time access to the broader CBRE global brand, on-the-ground market intelligence, supplemented by their own investments in research/data, which enables them to identify early and invest in secularly favored markets/products with tailwinds; (b) leveraging CBRE’s balance sheet to create opportunities for co-investment alongside our investor clients in our fund vehicles and developments; and (c) driving strong and ongoing collaboration between IM and TCC.
Examples of this include our recent investments in the global project management firm, Turner & Townsend, and the flexible office platform, Industrious, as well as increased focus on geographies that are well positioned for growth, such as Japan and asset classes such as industrial and multi-family. As a result, we have built a large and more resilient services offering.
In addition, we have increased our focus on geographies, such as Japan, and asset classes, such as industrial, multi-family and data centers, that are positioned for growth. As a result, we have built a larger and more resilient services offering.
Despite this competition, we are the market leaders in most of our business lines, with significant opportunities for continued growth. These opportunities result from clients highly valuing our scale, depth of expertise, technology and data-led insights, as well as their increasing preference for consolidating the number of service providers, which plays to our advantage in delivering integrated solutions globally.
These opportunities result from the high value our clients place on our scale, depth of expertise, technology and data-led insights, as well as their increasing preference for consolidating the number of service providers, which plays to our advantage in delivering integrated solutions globally. Our strong balance sheet enables significant investments in our platform, market-leading talent recruitment and transformational M&A execution.
Advisory Services Advisory Services provides a comprehensive range of services globally, including property leasing; capital markets, which includes property sales and mortgage origination; mortgage servicing; property management and valuation. With a global network of experts that have a deep understanding of their local markets, we offer comprehensive insights and solutions across a wide range of real estate assets.
Advisory Services Advisory Services provides a comprehensive range of services globally, including property leasing; capital markets, which includes property sales and mortgage origination; mortgage servicing; valuation and property management.
We provide these services across virtually all asset types including offices, retail outlets, laboratories, data centers, manufacturing environments, warehouses and mission-critical facilities.
This allows us to deliver tailored property solutions at both a local and global level, while improving quality and experience, reducing cost and mitigating risk. We provide these services across virtually all asset types, including offices, retail outlets, and critical facilities (including data centers, laboratories, government facilities, manufacturing environments, warehouses and other mission-critical facilities).
The costs associated with approximately 62% of our people are fully reimbursed by clients and are mainly in our Global Workplace Solutions and property management businesses. At December 31, 2023, approximately 14% of our employees worldwide were subject to collective bargaining agreements.
At December 31, 2024, we had more than 140,000 employees (including Turner & Townsend employees) worldwide. The costs associated with approximately 62% of CBRE employees (excluding Turner & Townsend employees) are reimbursed by clients and are mainly in our GWS and property management businesses.
We publicly report demographics, including diversity data, for our U.S. workforce annually in our Corporate Responsibility Report, in accordance with reporting requirements by the U.S. Equal Employment Opportunity Commission. 3 Table of Contents Intellectual Property We hold various trademarks and trade names worldwide, including the “CBRE,” “Turner & Townsend” and “Telford” marks.
Equal Employment Opportunity Commission requirements and other relevant information. 3 Table of Contents Intellectual Property We hold various trademarks and trade names worldwide, including the “CBRE,” and “Turner & Townsend” marks. We believe the “CBRE,” Turner & Townsend and “Trammell Crow Company” marks are vitally important in maintaining our leadership position.
Our large balance sheet enables significant investments in our platform, market-leading talent recruitment and transformational M&A execution. Human Capital People are at the center of our business strategy. We have learning & development programs designed to help our professionals succeed and develop future leaders, including: webinars, live virtual and in-person training, self-paced digital learning, coaching, mentoring and on-the-job learning.
We have learning & development programs designed to help our professionals succeed and develop future leaders, including webinars, live virtual and in-person training, self-paced digital learning, coaching, mentoring and on-the-job learning. We also reward our people with competitive pay and benefits, foster an engaging and inclusive workplace and improve productivity through investments in technology, tools and resources.
The growth opportunity in this business is enhanced by investors’ growing appetite for investment alternatives, including real estate, that diversify their holdings and offer the potential for higher returns compared to traditional investment strategies. Much like other parts of our company, IM is diversified across many dimensions – investment strategies, sectors, geographies, risk profiles and execution formats.
IM invests capital on behalf of pension funds, insurance companies, sovereign wealth funds, and other institutional investors in real estate, infrastructure, master limited partnerships and other assets. Its growth opportunity is enhanced by investors’ growing appetite for investment alternatives, including real estate and infrastructure, that diversify their holdings and offer potentially higher returns compared to traditional investment strategies.
Our primary investment categories include private direct real estate, private indirect real estate through third-party operators, listed real assets and private infrastructure. Our real estate development business – Trammell Crow Company (TCC) in the U.S., U.K., and Continental Europe, and Telford Homes in the U.K. multifamily residential market – provides leading-edge development services to real estate investors, owners and occupiers.
Our real estate development business – Trammell Crow Company (TCC) provides leading-edge development services to real estate investors, owners and occupiers.
With facilities management experts in more than 100 countries, we perform mission-critical technical services and maintenance in more locations worldwide than any other provider. This allows us to deliver tailored property solutions at both a local and global level, while increasing quality and experience, reducing cost and mitigating risk.
Our GWS Enterprise business typically serves large global corporations including many of the Fortune 500, through multi-year contracts, while our GWS Local business meets the needs of smaller occupiers with more localized portfolios. With facilities management experts in more than 100 countries, we perform mission-critical technical services and maintenance in more locations worldwide than any other provider.
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We leverage our platform to attract and retain top talent as well as provide differentiated insights to our clients through our at-scale investments in research, data, technology tools and property marketing. We also focus on serving clients end-to-end through the intentional bundling of our various services.
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Examples of how we have expanded our participation in secularly favored and resilient businesses and enlarged our total addressable market include our investments in the global project management firm, Turner & Townsend, in which we hold a majority ownership interest; the flexible office platform, Industrious, in which we acquired full ownership in January 2025; J&J Worldwide Services, a provider of facilities management and related services to the U.S. federal government; and Direct Line Global, a provider of technical facilities management services to data centers.
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We remain committed to growing these resilient business lines further, particularly where there are clear and sustained demand tailwinds. 1 Table of Contents Global Workplace Solutions Global Workplace Solutions (GWS) is the leading global provider of integrated facilities management and project management solutions for major occupiers of commercial real estate.
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On January 1, 2025, we combined our project management business with our Turner & Townsend subsidiary and increased our ownership in the combined entity to 70%. We will publicly report financial results for a fourth business segment, Project Management, beginning in the first quarter of 2025.
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IM invests capital on behalf of pension funds, insurance companies, sovereign wealth funds, and other institutional investors in real estate, infrastructure, master limited partnerships and other assets. We often hold a co-investment in many of our investment funds and programs.
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We also will establish a new business segment, Building Operations & Experience, in 2025, comprised of enterprise and local facilities management, property management and flexible workplace solutions, including Industrious. Our four business segments beginning in 2025 will be (1) Advisory Services; (2) Building Operations & Experience; (3) Project Management; and (4) Real Estate Investments.
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We also reward our people with competitive pay and benefits, foster an engaging and inclusive workplace, and improve productivity through investments in technology, tools and resources. At December 31, 2023, we had more than 130,000 employees (including Turner & Townsend employees) worldwide, of which 34.5% are female and 65.5% are male.
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With a global network of experts that have a deep understanding of their local markets, we offer comprehensive insights and solutions across a wide range of real estate assets, including offices, retail outlets, and critical facilities (including data centers, laboratories, government facilities, manufacturing environments, warehouses and other mission-critical facilities).
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Diversity, Equity & Inclusion (DE&I) We are committed to increasing the diversity of our workforce, strengthening an inclusive culture where everyone is valued and supported in achieving their full potential, and investing in the communities where we live and work.
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Much like other parts of our company, IM is diversified across many dimensions – investment strategies, sectors, geographies, risk profiles and execution formats. We hold a co-investment in many of our investment funds and programs, which span private direct real estate, private indirect real estate through third-party operators, listed real assets and private infrastructure.
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These efforts are led by our Chief Culture Officer, a senior executive level position reporting directly to our Chief Executive Officer, and include collaborating with partners to increase outreach to and help develop diverse talent, organizing internal events to foster belonging and building a diverse talent pool and interview process.
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We have a track record of generating high investment returns for our capital partners and the company and our conservative, risk-mitigated capital structures enable us to time asset dispositions when market circumstances are most favorable.
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We spent nearly $2 billion with diverse suppliers in 2023, with a goal to lift that annual spend to $3 billion by the end of 2025. Also, we made significant financial contributions to nonprofit organizations that are helping to improve education and career development opportunities for people in diverse and underrepresented communities.
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In this segment, we also account for the value of our investments in non-core, non-controlling equity investments.
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We believe the “CBRE” and “Trammell Crow Company” marks are vitally important in maintaining our leadership position.
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Despite this competition, we are the market leaders in most of our business lines, with significant opportunities for continued growth.
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Environmental Sustainability We have developed measurable environmental and sustainability goals for 2035, grounded in science and an assessment of where our operations have the most significant potential to impact on the environment, as well as the areas where we can most effectively mitigate that impact.
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Human Capital Our primary focus is to ensure our people meet the needs of our business strategy, providing them with an experience where employees feel valued and supported, and have opportunities for growth and development.
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These include a goal to reduce absolute Scope 1 and 2 greenhouse gas emissions 68% from the 2019 base year. Additional information about our approach to corporate social responsibility and to environmental, social and governance (ESG) issues is available in the CBRE Corporate Responsibility Report.
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This means not only concentrating on the basics such as onboarding, payroll and benefits, but also responding to the business’ needs such as acquiring talent, growing our employees through learning and development, talent and performance management practices.
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At December 31, 2024, approximately 14% of employees worldwide (excluding Turner & Townsend employees) were subject to collective bargaining agreements. We are dedicated to fostering an inclusive culture where everyone feels valued, supported and a sense of belonging, and we are committed to ensuring everyone has an equal opportunity to succeed.
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These efforts, led by our Chief People Officer, are embedded across our business. Our workforce is enriched by individuals from a variety of backgrounds, perspectives, and work and life experiences, and we welcome all applications. Our annual Corporate Responsibility Report includes public disclosures of demographics, including diversity data, for our U.S. workforce, in accordance with U.S.
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Sustainability We have measurable sustainability goals to achieve Net Zero GHG emissions by 2040 for corporate operations, buildings managed for clients, real estate development and supply chain, and two near-term 2030 targets to reduce absolute Scope 1 and 2 emissions by 50% and reduce emissions from properties we manage for clients per square foot by 55% from a 2019 baseline.
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These targets have been validated by the Science Based Targets initiative (SBTi). Additional information about our science-based targets and roadmap to reduce emissions can be found in our Climate Transition Strategy at www.cbre.com/corporatesustainability and in our Corporate Responsibility Report, which outlines our approach and progress on a broader range of environmental, social and governance (ESG) issues.
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(CBRE Capital Markets) to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; • declines in lending activity of U.S.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs a result, fires, earthquakes, floods, hurricanes, other 14 Table of Contents natural disasters, building defects, acts of war, terrorist attacks, mass shootings or infrastructure disruptions may result in significant loss of life or injury, and, to the extent we are held to have been negligent in connection with our management of the affected properties, we could incur significant financial liabilities and reputational harm.
Biggest changeTo the extent we are held to have been negligent in connection with our management of the affected properties (due to human error or otherwise), we could incur significant financial liabilities and reputational harm, including, but not limited to, as a result of litigation, government scrutiny, fines or penalties.
We compete across a variety of business disciplines within the commercial real estate services and investment industry, including property management, facilities management, project and transaction management, tenant and landlord leasing, capital markets solutions (property sales and commercial mortgage origination) and mortgage services, real estate investment management, valuation, loan servicing, development services and proprietary research.
We compete across a variety of business disciplines within the commercial real estate services and investment industry, including property management, facilities management, project and transaction management, tenant and landlord leasing, capital markets solutions (property sales and commercial mortgage origination) and mortgage servicing, real estate investment management, valuation, loan servicing, development services and proprietary research.
In addition, competitive conditions, particularly in connection with increasingly large clients, may require us to compromise on certain contract terms with respect to the payment of fees, the extent of risk transfer, or acting as principal rather than agent in connection with supplier relationships, liability limitations, credit terms and other contractual 12 Table of Contents terms, or in connection with disputes or potential litigation.
In addition, competitive conditions, particularly in connection with increasingly large clients, 12 Table of Contents may require us to compromise on certain contract terms with respect to the payment of fees, the extent of risk transfer, or acting as principal rather than agent in connection with supplier relationships, liability limitations, credit terms and other contractual terms, or in connection with disputes or potential litigation.
Where competitive pressures result in higher levels of potential liability under our contracts, the cost of operational errors and other activities for which we have indemnified our clients will be greater and may not be fully insured. A significant portion of our loan origination and servicing business depends upon our relationships with U.S. Government Sponsored Enterprises.
Where competitive pressures result in higher levels of potential liability under our contracts, the cost of operational errors and other activities for which we have indemnified our clients will be greater and may not be fully insured. A significant portion of our loan origination and servicing business depends upon our relationships with U.S. Government Sponsored Enterprises (GSEs).
Furthermore, our efforts to comply with developments in these laws may adversely impact our business. 9 Table of Contents We have committed additional resources to expand our worldwide sales and marketing activities, to globalize our service offerings and products in select markets and to develop local sales and support channels.
Furthermore, our efforts to comply with developments in these laws may adversely impact our business. 9 Table of Contents We have committed resources to expand our worldwide sales and marketing activities, to globalize our service offerings and products in select markets and to develop local sales and support channels.
Our Real Estate Investments businesses, including our real estate investment programs and co-investment activities, subject us to performance and real estate investment risks which could cause fluctuations in our earnings and cash flow and impact our ability to raise capital for future investments.
Our REI businesses, including our real estate investment programs and co-investment activities, subject us to performance and real estate investment risks which could cause fluctuations in our earnings and cash flow and impact our ability to raise capital for future investments.
Risks Related to our Business Environment Our performance is significantly related to general economic, political and regulatory conditions and, accordingly, our business, operations and financial condition could be materially adversely affected by economic slowdowns, liquidity constraints, significant rises in interest rates, significant public health events, fiscal or political uncertainty and possible subsequent downturns in commercial real estate asset values, property sales and leasing activities in the geographies or industry sectors that we or our clients serve.
Risks Related to our Business Environment Our performance is significantly related to general economic, political and regulatory conditions and, accordingly, our business, operations and financial condition could be materially adversely affected by economic slowdowns, liquidity constraints, inflationary pressures, significant rises in interest rates, significant public health events, fiscal or political uncertainty and possible subsequent downturns in commercial real estate asset values, property sales and leasing activities in the geographies or industry sectors that we or our clients serve.
We are subject to changing rules and regulations promulgated by a number of governmental and self-regulatory organizations, including the SEC, the New York Stock Exchange and the Financial Accounting Standards Board.
We are subject to changing rules and regulations promulgated by a number of governmental and self-regulatory organizations, including the SEC, the New York Stock Exchange (NYSE) and the Financial Accounting Standards Board.
Periods of economic weakness or recession, fiscal or political uncertainty, market volatility, declining employment levels, declining demand for commercial real estate, falling real estate values, disruption to the global capital or credit markets, significant rises in interest rates or the public perception that any of these events may occur, may materially and negatively affect the performance of some or all of our business lines.
Periods of economic weakness or recession, fiscal or political uncertainty, market volatility, declining employment levels, declining demand for commercial real estate, falling real estate values, disruption to the global capital or credit markets, inflationary pressures, significant rises in interest rates or the public perception that any of these events may occur, may materially and negatively affect the performance of some or all of our business lines.
Our investment management, development services, capital markets (including property sales and mortgage origination) and mortgage services businesses are sensitive to credit cost and availability as well as financial liquidity.
Our investment management, development services, capital markets (including property sales and mortgage origination) and mortgage servicing businesses are sensitive to credit cost and availability as well as financial liquidity.
Because the disposition of a single significant investment may affect our financial performance in any period, our real estate investment activities could cause fluctuations in our earnings and cash flows. In many cases, we have limited control over the timing of the disposition of these investments and the recognition of any related gain or loss, or incentive participation fee.
Because the disposition of a single significant investment may affect our financial performance in any period, our real estate investment activities could cause fluctuations in our earnings and cash flows. In certain cases, we have limited control over the timing of the disposition of these investments and the recognition of any related gain or loss, or incentive participation fee.
A number of our services, including the services provided by our indirect wholly-owned subsidiaries, CBRE Capital Markets and CBRE Investment Management, are subject to regulation by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), or other self-regulatory organizations and state securities regulators and compliance failures or regulatory action could adversely affect our business.
A number of our services, including the services provided by our indirect wholly-owned subsidiaries, CBRE Capital Markets and CBRE Investment Management, are subject to regulation by the SEC, Financial Industry Regulatory Authority (FINRA), or other self-regulatory organizations and state securities regulators and compliance failures or regulatory action could adversely affect our business.
Our international operations require us to comply with a broad range of complex legal and regulatory environments in which we operate.
Our international operations require us to comply with a broad range of complex legal, geopolitical and regulatory environments in which we operate.
A significant actual or potential theft, loss, corruption, exposure, fraudulent use or misuse of client, employee or other personal information or proprietary business data, whether by third parties or as a result of employee malfeasance or otherwise, perceived or actual non-compliance with our contractual or other legal obligations regarding such data or intellectual property or a violation of our privacy and security policies with respect to such data could result in significant remediation and other costs, fines, litigation or regulatory actions against us.
A significant actual or potential theft, loss, corruption, exposure, fraudulent use or misuse of client, employee or other personal information or proprietary business data, whether by third parties or as a result of employee malfeasance or otherwise, 18 Table of Contents perceived or actual non-compliance with our contractual or other legal obligations regarding such data or intellectual property or a violation of our privacy and security policies with respect to such data could result in significant remediation and other costs, fines, litigation or regulatory actions against us.
While we believe that we currently have adequate cash flows to service the interest rates currently applicable to our indebtedness, if interest rate were to continue to rise significantly, we might be unable to maintain a level of cash flows from operating activities sufficient to meet our debt service obligations at such increased rates.
While we believe that we currently have adequate cash flows to service the interest rates currently applicable to our indebtedness, if interest rates were to rise significantly, we might be unable to maintain a level of cash flows from operating activities sufficient to meet our debt service obligations at such increased rates.
The infrastructure disruptions we may experience as a result of such events could also disrupt our ability to manage real estate for clients or may adversely affect the value of our real estate investments in our investment management and development services businesses.
The infrastructure and supply chain disruptions we may experience as a result of such events could also disrupt our ability to manage real estate for clients or may adversely affect the value of our real estate investments in our investment management and development services businesses.
Our policies, procedures and programs to safeguard the health, safety and security of our employees and others may not be adequate. We have approximately 130,000 employees (including Turner & Townsend employees) as well as independent contractors working in over 100 countries.
Our policies, procedures and programs to safeguard the health, safety and security of our employees and others may not be adequate. We have approximately 140,000 employees (including Turner & Townsend employees) as well as independent contractors working in over 100 countries.
In the future, we may acquire more equity investments that are not consolidated, which could increase our exposure to the risks described above. Item 1B. Unresolved Staff Comments. None. 21 Table of Contents
In the future, we may acquire more equity investments that are not consolidated, which could increase our exposure to the risks described above. Item 1B. Unresolved Staff Comments. None. 22 Table of Contents
Although we are the largest commercial real estate services firm in the world in terms of 2023 revenue, our relative competitive position varies across geographies, property types and services and business lines.
Although we are the largest commercial real estate services firm in the world in terms of 2024 revenue, our relative competitive position varies across geographies, property types and services and business lines.
If our clients are unable to obtain credit on favorable terms, there may be fewer property leasing, disposition and acquisition transactions. For example, in 2023, central banks around the world continued to raise interest rates in efforts to rein in inflation, reducing credit availability.
If our clients are unable to obtain credit on favorable terms, there may be fewer property leasing, disposition and acquisition transactions. For example, in 2023, central banks around the world raised interest rates in efforts to rein in inflation, reducing credit availability.
A significant portion of our loan origination and servicing business (which we conduct through certain of our wholly-owned subsidiaries) depends upon our relationship with the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), collectively the Government Sponsored Enterprises (GSEs).
A significant portion of our loan origination and servicing business (which we conduct through certain of our wholly-owned subsidiaries) depends upon our relationship with the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), collectively the GSEs.
The departure of any of our key employees, or the loss of a significant number of key revenue producers, if we are unable to quickly hire and integrate qualified replacements, including diverse talent, could cause our business, financial condition and results of operations to materially suffer.
The departure of any of our key employees, or the loss of a significant number of key revenue producers, if we are unable to quickly hire and integrate qualified replacements, could cause our business, financial condition and results of operations to materially suffer.
Brokerage of real estate sales and leasing transactions and the provision of property management and valuation services require us and our employees to maintain applicable licenses in each U.S. state and certain non-U.S. jurisdictions in 18 Table of Contents which we perform these services.
Brokerage of real estate sales and leasing transactions and the provision of property management and valuation services require us and our employees to maintain applicable licenses in each U.S. state and certain non-U.S. jurisdictions in which we perform these services.
We are unable to predict how any of these new laws, rules, regulations and proposals will be implemented or in what form, or whether any additional or similar changes to laws or regulations, including the interpretation or implementation thereof, will occur in the future.
We are unable to predict how any of these new laws, rules, regulations and proposals will be implemented or in what form, or whether 20 Table of Contents any additional or similar changes to laws or regulations, including the interpretation or implementation thereof, will occur in the future.
As of December 31, 2023, we are required to comply with the GDPR as well as the U.K. equivalent and other global data protection laws (including in Switzerland, Japan, 17 Table of Contents Singapore, China, United Arab Emirates, Australia, and Brazil), the implementation of which exposes us to parallel data protection regimes, each of which potentially authorizes similar fines and other enforcement actions for certain violations.
As of December 31, 2024, we are required to comply with the GDPR as well as the U.K. equivalent and other global data protection laws (including in Switzerland, Japan, Singapore, China, United Arab Emirates, Australia, and Brazil), the implementation of which exposes us to parallel data protection regimes, each of which potentially authorizes similar fines and other enforcement actions for certain violations.
Furthermore, while we have certain business interruption and cyber insurance coverage and various contractual arrangements 16 Table of Contents that can serve to mitigate costs, damages and liabilities, any such event could result in substantial recovery and remediation costs and liability to customers, business partners and other third parties.
Furthermore, while we have certain business interruption and cyber insurance coverage and various contractual arrangements that can serve to mitigate costs, damages and liabilities, any such event could result in substantial recovery and remediation costs and liability to customers, business partners and other third parties.
As of December 31, 2023, we had over $1.5 billion invested in certain companies and projects that we do not control that were accounted for under the cost/measurement alternative method of accounting, equity method or fair value.
As of December 31, 2024, we had over $1.4 billion invested in certain companies and projects that we do not control that were accounted for under the cost/measurement alternative method of accounting, equity method or fair value.
International economic trends, foreign governmental policy actions and the following factors may have a material adverse effect on the performance of our business: • difficulties and costs of staffing and managing international operations among diverse geographies, languages and cultures; • currency restrictions, transfer-pricing regulations and adverse tax consequences, which may affect our ability to transfer capital and profits; • adverse changes in regulatory or tax requirements and regimes or uncertainty about the application of or the future of such regulatory or tax requirements and regimes; • responsibility for complying with numerous, potentially conflicting and frequently complex and changing laws in multiple jurisdictions ( e.g. , with respect to data privacy and protection, sustainability, corrupt practices, embargoes, trade sanctions, employment and licensing); • the impact of regional or country-specific business cycles and economic instability, including those related to public health or safety events; • greater difficulty in collecting accounts receivable or delays in client payments in some geographic regions; • rising interest rates and less available and more expensive debt capital resulting from efforts by central banks outside the U.S. to rein in inflation; • foreign ownership restrictions in certain countries, particularly in Asia Pacific and the Middle East, or the risk that such restrictions will be adopted in the future; and • changes in laws or policies governing foreign trade or investment and use of foreign operations or workers, and any negative sentiments towards multinational companies as a result of any such changes to laws or policies as well as other geopolitical risks.
International economic trends, foreign governmental policy actions and the following factors may have a material adverse effect on the performance of our business: • difficulties and costs of staffing and managing international operations among diverse geographies, languages and cultures; • currency restrictions, transfer-pricing regulations and adverse tax consequences, which may affect our ability to transfer capital and profits; • adverse changes in regulatory, tax or trade policies or uncertainty about potential changes in such regulatory, tax or trade policies; • responsibility for complying with numerous, potentially conflicting and frequently complex and changing laws in multiple jurisdictions ( e.g. , with respect to data privacy and protection, sustainability, corrupt practices, embargoes, trade sanctions, employment and licensing); • the impact of regional or country-specific business cycles and economic instability, including those related to public health or safety events; • greater difficulty in collecting accounts receivable or delays in client payments in some geographic regions; • potential interest rate and /or inflation rate increases and less available and more expensive debt capital; • foreign ownership restrictions in certain countries, particularly in Asia Pacific and the Middle East, or the risk that such restrictions will be adopted in the future; and • changes in laws or policies governing foreign trade or investment and use of foreign operations or workers, and any negative sentiments towards multinational companies as a result of any such changes to laws or policies as well as other geopolitical risks.
The success of our Global Workplace Solutions segment depends on our ability to enter into mutually beneficial contracts, deliver high quality levels of service and accurately assess working capital requirements. Contracts for our Global Workplace Solutions clients often include complex terms regarding payment of fees, risk transfer, liability limitations, termination, due diligence and transition timeframes.
The success of our GWS business depends on our ability to enter into mutually beneficial contracts, deliver high quality levels of service, manage our contractual obligations and accurately assess working capital requirements. Contracts for our Global Workplace Solutions clients often include complex terms regarding payment of fees, risk transfer, liability limitations, termination, due diligence and transition timeframes.
Such governmental, investor and societal attention to ESG matters, including expanding mandatory and voluntary reporting, diligence, and disclosure on topics such as climate change, human capital, labor and risk oversight, could expand the nature, scope, and complexity of matters that we are required to control, assess and report.
Such attention to sustainability matters, including expanding mandatory and voluntary reporting, diligence, and disclosure on topics such as climate change, human capital, labor and risk oversight, could expand the nature, scope, and complexity of matters that we are required to control, assess and report on.
As of December 31, 2023, our total debt, excluding notes payable on real estate (which are generally non-recourse to us) and warehouse lines of credit (which are recourse only to our wholly-owned subsidiary, CBRE Capital Markets, and are secured by our related warehouse receivables), was $2.8 billion. For the year ended December 31, 2023, our interest expense was $243.2 million.
As of December 31, 2024, our total debt, excluding notes payable on real estate (which are generally non-recourse to us) and warehouse lines of credit (which are recourse only to our wholly-owned subsidiary, CBRE Capital Markets, and are secured by our related warehouse receivables), was $3.6 billion. For the year ended December 31, 2024, our interest expense was $440 million.
Our global operations present significant management and organizational challenges. It might become increasingly difficult to maintain effective standards across a large enterprise and effectively institutionalize our knowledge. It might also become more difficult to maintain our culture, effectively manage and monitor our personnel and operations and effectively communicate our core values, policies and procedures, strategies and goals.
It might become increasingly difficult to maintain effective standards across a large enterprise and effectively institutionalize our knowledge. It might also become more difficult to maintain our culture, effectively manage and monitor our personnel and operations and effectively communicate our core values, policies and procedures, strategies and goals.
Our ability to conduct a global business may be adversely impacted by disruptions to the infrastructure that supports our businesses and the communities in which they are located.
Our ability to conduct a global business may be adversely impacted by disruptions to the physical infrastructure and supply chain that support our businesses and the communities in which they are located.
During the year ended December 31, 2023, approximately 45% of our revenue was transacted in foreign currencies. We also report our results in U.S. dollars.
During the year ended December 31, 2024, approximately 43.6% of our revenue was transacted in foreign currencies. We also report our results in U.S. dollars.
Any such action could affect us in substantial and unpredictable ways and could have an adverse effect on our businesses, financial condition, results of operations and prospects. Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social and governance (ESG) matters, that could expose us to numerous risks.
Any such action could affect us in substantial and unpredictable ways and could have an adverse effect on our businesses, financial condition, results of operations and prospects. Evolving corporate governance and public disclosure regulations and expectations, including with respect to sustainability matters, could expose us to risks.
Statements about our ESG related initiatives and goals, and progress against those goals, may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
Statements about our sustainability initiatives and goals, and progress against those goals, reflect our current plans, which are based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
Telford Homes, our residential development subsidiary in the U.K., is subject to certain U.K. laws and requirements that obligates U.K. homebuilders to remediate or fund the remediation work relating to certain fire-safety issues on their constructed buildings. The aggregate costs and liabilities related to these remediations are uncertain and may be material.
Telford Homes, our residential development subsidiary in the U.K., is subject to certain U.K. laws and requirements that obligates U.K. homebuilders to remediate or fund the remediation work relating to certain fire-safety issues on their constructed buildings.
Due to the different tax laws in the many jurisdictions where we operate, we are often required to make subjective determinations. The tax authorities in the various jurisdictions where we carry on business may not agree with the determinations that are made by us with respect to the application of tax law.
The tax authorities in the various jurisdictions where we carry on business may not agree with the determinations that are made by us with respect to the application of tax law.
In addition, it is possible that in some jurisdictions, regulations could be changed to limit our ability to act for certain parties where potential conflicts may exist even with informed consent, which could limit our market share in those markets. There can be no assurance that potential conflicts of interest will not materially adversely affect us.
In addition, it is possible that in some jurisdictions, regulations could be changed to limit our ability to act for certain parties where potential conflicts may exist even with informed consent, which could limit our market share in those markets.
As of December 31, 2023, we had a net investment of approximately $337.0 million and had committed $180.4 million to fund future co-investments in our investment funds, approximately $128.0 million of which is expected to be funded during 2024.
As of December 31, 2024, we had a net investment of approximately $361 million and had committed $205 million to fund future co-investments in our investment funds, approximately $74 million of which is expected to be funded during 2025.
Further, the facilities management and project management businesses within our Global Workplace Solutions segment are often impacted by transition activities in the first year of a contract as well as the timing of starting operations on these large client contracts.
Further, our Global Workplace Solutions business is often impacted by transition activities in the first year of a contract as well as the timing of starting operations on these large client contracts.
Security breaches and other disruptions of our information and technology networks, as well as that of third-party vendors, could compromise our information and intellectual property and expose us to liability, reputational harm and significant remediation costs, which could cause material harm to our business and financial results.
Failure to maintain the security of our information and technology networks, including personal information and other client information, intellectual property and proprietary business information could materially adversely affect us. 17 Table of Contents Security breaches and other disruptions of our information and technology networks, as well as that of third-party vendors, could compromise our information and intellectual property and expose us to liability, reputational harm and significant remediation costs, which could cause material harm to our business and financial results.
As of December 31, 2023, we were involved as a principal in 36 real estate projects that were consolidated in our financial statements with invested equity of $526.7 million and co-invested with our clients in approximately 132 unconsolidated real estate projects with a net investment of $358.8 million.
As of December 31, 2024, we were involved as a principal in 44 real estate projects that were consolidated in our financial statements with invested equity of $649 million and co-invested with our clients in approximately 125 unconsolidated real estate projects with a net investment of $340 million.
Infrastructure disruptions, climate change, natural disasters and other events may disrupt our ability to manage real estate for clients or may adversely affect the value of real estate investments we make on behalf of clients.
Infrastructure disruptions, risks related to climate change, including physical and transition risks, social activism, geopolitical tensions, and other similar events may disrupt our ability to manage real estate for clients or may adversely affect the value of real estate investments we make on behalf of clients.
These changing rules, regulations and stakeholder expectations have resulted in, and are likely to continue to result in, increased general and administrative expenses and increased management time and attention spent complying with or meeting such regulations and expectations.
These and other legal and regulatory requirements continue to evolve in scope and complexity, making compliance more difficult and uncertain. These changing rules, regulations and stakeholder expectations have resulted in, and are likely to continue to result in, increased general and administrative expenses and increased management time and attention spent complying with or meeting such regulations and expectations.
Many of these laws and regulations are subject to change and uncertain interpretation and could result in claims, increased cost of operations or otherwise harm our business.
Our business is subject to complex and evolving United States and international laws and regulations regarding privacy, data protection, and cybersecurity. Many of these laws and regulations are subject to change and uncertain interpretation and could result in claims, increased cost of operations or otherwise harm our business.
Should we fail to accurately assess working capital requirements, the cash flows generated by this business may be adversely impacted. In addition, if we do not accurately assess the creditworthiness of a client or if a client’s creditworthiness changes during the term of the contract, we could potentially be unable to collect on any outstanding payments.
In addition, if we do not accurately assess the creditworthiness of a client or if a client’s creditworthiness changes during the term of the contract, we could potentially be unable to collect on any outstanding payments.
Although we and our vendors continue to implement new security measures and regularly conduct employee training, our information technology and infrastructure may nevertheless be vulnerable to cyberattacks by third parties or breached due to employee error, malfeasance or other disruptions.
Although we and our vendors continue to implement new security measures and regularly conduct employee training, our information technology and infrastructure may nevertheless be vulnerable to cyberattacks by third parties or breached due to employee error, malfeasance or other disruptions. These risks have been heightened in connection with the ongoing conflict between Russia and Ukraine and in the Middle East.
This may include disruptions as a result of political instability, public health crises, attacks on our information technology systems, war or other hostilities, terrorist attacks, interruptions or delays in services from third-party data center hosting facilities or cloud computing platform providers, employee errors or malfeasance, building defects, utility outages, the effects of climate change and natural disasters such as fires, earthquakes, floods and hurricanes.
This may include disruptions as a result of political instability, public protests, environmental activism, public health crises (including new or resurging pandemics), attacks on our information technology systems, war or other hostilities, terrorist attacks, interruptions or delays in services from third-party data center hosting facilities or cloud computing platform providers, employee errors or malfeasance, building defects, utility outages, and the physical effects of climate change, including the acute impacts of extreme weather events occurring more frequently or with more severe effects.
Additionally, liabilities incurred to comply with more stringent future environmental requirements could adversely affect any or all of our lines of business. 20 Table of Contents Risks Related to our Internal Controls and Accounting Policies If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and our results of operations and stock price could be materially adversely affected.
Risks Related to our Internal Controls and Accounting Policies If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and our results of operations and stock price could be materially adversely affected.
In the event Telford Homes is unable to satisfy its obligations and liabilities under such government requirements and U.K. laws, Telford Homes and potentially its affiliates could face material business interruption, litigation, liabilities and reputational damage.
For additional information, see Note 22 – Telford Fire Safety Remediation, in the notes to the consolidated financial statements included in this Annual Report. In the event Telford Homes is unable to satisfy its obligations and liabilities under such government requirements and U.K. laws, Telford Homes and potentially its affiliates could face material business interruption, litigation, liabilities and reputational damage.
Over time, these conditions could result in declining demand for commercial real estate, decreased value of any real estate investments we hold in those regions or result in increases in our operating costs. The buildings we manage for clients, which include some of the world’s largest office properties and retail centers, are used by people daily.
These conditions could also result in declining demand for commercial real estate in certain regions or with certain clients, decreased value of any real estate investments we hold in those regions, or increases in our operating costs and in the costs of managing client properties over time.
These initiatives and goals within the scope of ESG could be difficult and expensive to implement and we 19 Table of Contents could be criticized for the accuracy, adequacy or completeness of the disclosure.
These initiatives and goals could be difficult and expensive to implement and we could be criticized for the scope or nature of such initiatives, or for any revisions thereto, or the accuracy, adequacy or completeness of related disclosures.
We had committed additional capital of $230.1 million and $73.9 million to consolidated and unconsolidated projects, respectively, as of December 31, 2023.
We had committed, but not funded, additional capital of $330 million and $67 million to consolidated and unconsolidated projects, respectively, as of December 31, 2024.
If we are unable to adequately address such ESG matters or if we fail to achieve progress with respect to our goals within the scope of ESG on a timely basis, or at all, or if we or our borrowers fail or are perceived to fail to comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results.
Nevertheless, if we fail or are perceived to fail to achieve progress with respect to our sustainability-related goals on a timely basis, or at all, or if we or our borrowers fail or are perceived to fail to comply with all laws, regulations, policies and related interpretations, this could negatively impact our reputation and our business results, as well as expose us to government enforcement actions, fines and private litigation.
Risks Related to Our Indebtedness Our debt instruments impose operating and financial restrictions on us, and in the event of a default, all of our borrowings would become immediately due and payable.
If a joint venture participant or affiliate acts contrary to our interest, it could harm our brand, business, results of operations and financial condition. 15 Table of Contents Risks Related to Our Indebtedness Our debt instruments impose operating and financial restrictions on us, and in the event of a default, all of our borrowings would become immediately due and payable.
If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed will remain the same, and our net income and operating cash flows, including cash available for servicing our indebtedness, will correspondingly decrease.
If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed will remain the same, and our net income and operating cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. 16 Table of Contents Additionally, our ability to refinance portions of our indebtedness in advance of their maturity dates depends on securing new financing bearing interest at rates that we are able to service.
An increasing number of companies that rely on information and technology networks have disclosed breaches of their security, some of which have involved sophisticated and highly targeted attacks on portions of their websites or infrastructure.
When geopolitical conflicts develop, critical infrastructures may be targeted by state-sponsored cyberattacks even if they are not directly involved in the conflict. An increasing number of companies that rely on information and technology networks have disclosed breaches of their security, some of which have involved sophisticated and highly targeted attacks on portions of their websites or infrastructure.
The lenders under our credit agreements also have the right in these circumstances to terminate any commitments they have to provide further borrowings thereunder.
The lenders under our credit agreements also have the right in these circumstances to terminate any commitments they have to provide further borrowings thereunder. In addition, a default under our credit agreements, senior notes or commercial paper program could trigger a cross default or cross acceleration under our other debt instruments.
Failure to timely report cybersecurity incidents under these rules could also result in regulatory investigations, litigation, monetary fines, sanctions, or subject us to other forms of liability.
Efforts to comply with such reporting requirements could divert management’s attention from our cybersecurity incident response and could potentially reveal system vulnerabilities to threat actors. Failure to timely report cybersecurity incidents under these rules could also result in regulatory investigations, litigation, monetary fines, sanctions, or subject us to other forms of liability.
In addition, changes in tax laws or regulations and multi-jurisdictional changes enacted in response to the action items provided by the Organization for Economic Co-operation and Development (OECD) increase tax uncertainty and could impact the company’s effective tax rate and provision for income taxes.
In addition, changes in tax rules or the outcome of tax assessments and audits could have an adverse effect on our results in any particular quarter. 21 Table of Contents In addition, changes in tax laws or regulations and multi-jurisdictional changes enacted in response to the action items provided by the Organization for Economic Co-operation and Development (OECD), including the OECD’s accord to set a minimum global corporate tax rate of 15%, increase tax uncertainty and could impact the company’s effective tax rate and provision for income taxes.
Further, new and emerging regulatory initiatives in the U.S., EU and U.K. related to climate change and ESG could adversely affect our business, including, for example, initiatives such as the European Commission’s May 2018 “action plan on financing sustainable growth” and Taskforce on Climate-related Financial Disclosures (TCFD)-aligned disclosure requirements in the U.K.
Further, new and emerging regulatory initiatives, particularly in the EU, U.K. and California, related to climate change and sustainability matters, could adversely affect our business, including, for example, the EU Corporate Sustainability Reporting Directive, the EU Corporate Sustainability Due Diligence Directive, and Taskforce on Climate-related Financial Disclosures (TCFD)-aligned disclosure requirements in the U.K. and other jurisdictions.
In addition, a default under our credit agreements or senior notes could trigger a cross default or cross acceleration under our other debt instruments. 15 Table of Contents We have limited restrictions on the amount of additional recourse debt we are able to incur, which may intensify the risks associated with our leverage, including our ability to service our indebtedness.
We have limited restrictions on the amount of additional recourse debt we are able to incur, which may intensify the risks associated with our leverage, including our ability to service our indebtedness. In addition, in the event of a credit-ratings downgrade, our ability to borrow and the costs of such borrowings could be adversely affected.
Exposure to additional tax liabilities and changes in tax laws and regulations could adversely affect our financial results. We operate in many jurisdictions with complex and varied tax regimes and are subject to different forms of taxation resulting in a variable effective tax rate.
We operate in many jurisdictions with complex and varied tax regimes and are subject to different forms of taxation resulting in a variable effective tax rate. Due to the different tax laws in the many jurisdictions where we operate, we are often required to make subjective determinations.
Such third parties are also vulnerable to security breaches and compromised security systems, for which we may not be indemnified and which could materially adversely affect us and our reputation.
Such third parties are also vulnerable to security breaches and compromised security systems, for which we may not be indemnified and which could materially adversely affect us and our reputation. 19 Table of Contents Legal and Regulatory Related Risks We are subject to various litigation and regulatory risks and may face financial liabilities and/or damage to our reputation as a result of litigation or regulatory investigations or proceedings.
Recently, there has been heightened interest from advocacy groups, government agencies and the general public in ESG matters and increasingly regulators, customers, investors, employees and other stakeholders are focusing on ESG matters and related disclosures.
In recent years, there has been heightened interest from regulators, customers, investors, employees and other stakeholders on sustainability matters and related disclosures.
If we were to experience significant employee attrition or turnover, it could lead to increased recruitment and training costs as well as operating inefficiencies that could adversely impact our results of operation. We and our competitors use equity incentives and sign-on and retention bonuses to help attract, retain and incentivize key personnel.
Competition for employee talent can be intense and we may not be able to successfully recruit, integrate or retain sufficiently qualified personnel. If we were to experience significant employee attrition or turnover, it could lead to increased recruitment and training costs as well as operating inefficiencies that could adversely impact our results of operation.
If we are unable to attract and retain these qualified personnel, our growth may be limited, and our business and operating results could materially suffer. 13 Table of Contents If we are unable to manage the organizational challenges associated with our global operations, we might be unable to achieve our business objectives .
Any such misaligned incentives could have a material negative impact on our business and operating results. 13 Table of Contents If we are unable to manage the organizational challenges associated with our global operations, we might be unable to achieve our business objectives . Our global operations present significant management and organizational challenges.
The techniques used to obtain unauthorized access, disable, or degrade service, or sabotage systems, change frequently, may be difficult to detect, and often are not recognized until launched against a target. To date, we have not experienced any cybersecurity breaches that have been material, either individually or in the aggregate.
The techniques used to obtain unauthorized access, disable, or degrade service, or sabotage systems, change frequently, may be difficult to detect, and often are not recognized until launched against a target. The rapid evolution and increased adoption of AI technologies may intensify these security risks.
We are also subject to an increasing number of reporting obligations in respect of material cybersecurity incidents. These reporting requirements have been proposed or implemented by a number of regulators in different jurisdictions, may vary in their scope and application, and could contain conflicting requirements.
These reporting requirements have been proposed or implemented by a number of regulators in different jurisdictions, may vary in their scope and application, and could contain conflicting requirements. Certain of these rules and regulations may require us to report a cybersecurity incident before we have been able to fully assess its impact or remediate the underlying issue.
We also manage the critical facilities (including data centers) that our clients rely on to serve the public and their customers, where unplanned downtime could potentially disrupt other parts of their businesses or society.
We also manage the critical facilities (including data centers, laboratories, government facilities, manufacturing environments, warehouses and other mission-critical facilities) that our clients rely upon to serve the public and their customers.
In addition, the other participants and operators may become bankrupt or have economic or other business interests or goals that are inconsistent with ours. If a joint venture participant or affiliate acts contrary to our interest, it could harm our brand, business, results of operations and financial condition.
In addition, the other participants and operators may become bankrupt or have economic or other business interests or goals that are inconsistent with ours.
For example, in 2023, commercial real estate capital markets remained under significant pressure. As a result, we experienced a sustained slowdown in property sales and debt financing activity. Furthermore, the Covid-19 pandemic engendered structural changes to the utilization of many types of commercial real estate, which will likely have ongoing repercussions for our business.
For example, in 2023 and early 2024, commercial real estate capital markets were under significant pressure. As a result, we experienced a sustained slowdown in property sales and debt financing activity.
Our businesses could also suffer from political or economic disruptions (or the perception that such disruptions may occur) that affect interest rates or liquidity or create financial, market or regulatory uncertainty.
Our businesses could also suffer from geopolitical or economic disruptions (or the perception that such disruptions may occur) or currency fluctuations that affect interest rates, capital availability and cost, or heighten financial, market or regulatory uncertainty. We also make co-investments alongside our investor clients in our development and investment management businesses.
Under GDPR, fines of up to 20 million Euros or up to 4% of the annual global revenues of the infringer, whichever is greater, may be imposed for violations.
For example, when the European Union General Data Protection Regulation (GDPR) became effective in 2018, it resulted in greater compliance burdens for us with respect to cross-border transfers of personal information. Under GDPR, fines of up to 20 million Euros or up to 4% of the annual global revenues of the infringer, whichever is greater, may be imposed for violations.
Further, if we fail to deliver the high-quality levels of service expected by our clients, it may result in reputational and financial damage, and could impact our ability to retain existing clients and attract new clients. Our Global Workplace Solutions segment also requires us to accurately model the working capital needs of this business.
Further, if we do not have adequate governance, processes, technology, quality assurance or expertise available to appropriately manage contracts with our clients and our obligations under such contracts, or if we fail to deliver the high-quality levels of service expected by our clients, it may result in reputational and financial damage, and could impact our ability to retain existing clients and attract new clients.
In addition, we make significant investments in new systems and tools to achieve competitive advantages and efficiencies. Implementation of such investments in information technology could exceed estimated budgets and we may experience challenges that prevent new strategies or technologies from being realized according to anticipated schedules.
Implementation of such investments in information technology, including generative AI tools, could be complicated, heavily dependent on the quality, accuracy and relevance of data inputs and methodologies, require sophisticated infrastructure and skilled talent, have ethical and societal implications, and could exceed estimated budgets. We may experience challenges that prevent new strategies or technologies from being realized according to anticipated schedules.
Further, we may choose to communicate certain initiatives and goals, regarding environmental matters, diversity, responsible sourcing and social investments and other ESG related matters, in our SEC filings or in other public disclosures.
Further, we have announced, and may from time to time announce, certain initiatives, including goals, targets and objectives, related to greenhouse gas emissions targets and other sustainability matters, in our SEC filings or in other public disclosures.
However, there can be no assurance that we will be able to prevent any material events from occurring in the future. Our business is subject to complex and evolving United States and international laws and regulations regarding privacy, data protection, and cybersecurity.
To date, we have not experienced any cybersecurity breaches that have been material, either individually or in the aggregate. However, there can be no assurance that we will be able to prevent any material events from occurring in the future.
Although we maintain insurance coverage for most of this risk, insurance coverage is unavailable at commercially reasonable pricing for certain types of exposures. Additionally, our insurance policies may not cover us in the event of grossly negligent or intentionally wrongful conduct.
Our businesses are exposed to various litigation and regulatory risks, especially within our valuations business. Although we maintain insurance coverage for most of this risk, insurance coverage is unavailable at commercially reasonable pricing for certain types of exposures.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+2 added−1 removed12 unchanged
Biggest changeOur collaboration with these third-parties includes periodic audits, threat assessments and consultation on security enhancements. Risks from Cybersecurity Threats While we are subject to ongoing cybersecurity threats, we do not believe that the risks from these threats have materially affected, or are reasonably likely to materially affect the company, including our business strategy, results of operations or financial condition.
Biggest changeOur collaboration with these third-parties includes periodic audits, threat assessments and consultation on security enhancements. Risks from Cybersecurity Threats We have experienced, and may in the future experience, whether directly or through our service providers or other channels, cybersecurity incidents.
Each year, we engage a third-party expert to oversee a cybersecurity incident response exercise to test pre-planned response actions from our incident response plan and to facilitate group discussions regarding the effectiveness of our cybersecurity incident response strategies and tactics. • Third-Party Suppliers and Service Providers: We conduct periodic vendor security reviews and risk assessments for prospective and current third-party technical suppliers and service providers.
Each year, we engage a third-party expert to oversee a cybersecurity incident response exercise to test pre-planned response actions from our incident response plan and to facilitate group discussions regarding the effectiveness of our cybersecurity incident response strategies and tactics. • Third-Party Suppliers and Service Providers: We conduct periodic vendor security reviews and risk assessments for prospective and significant current third-party technical suppliers and service providers.
Risk Factors—Risks Related to our Information Technology, Cybersecurity and Data Protection” in this Annual Report. 22 Table of Contents Board Oversight of Cybersecurity Risks Our Board of Directors (Board) is responsible for the oversight of our risk management program and regularly reviews information regarding our most significant strategic, operational, financial, legal and compliance risks, including cybersecurity risks.
Risk Factors—Risks Related to our Information Technology, Cybersecurity and Data Protection” in this Annual Report. 23 Table of Contents Board Oversight of Cybersecurity Risks Our Board of Directors (Board) is responsible for the oversight of our risk management program and regularly reviews information regarding our most significant strategic, operational, financial, legal and compliance risks, including cybersecurity risks.
Incident response plans focus on cyber risk issues, including detection, response and recovery; cyber threats, with a focus on external communication and legal compliance; and breach simulations and penetration testing through internal and external exercises.
Incident response plans focus on cyber risk issues, including detection, response and recovery; cyber threats, including external communication and legal compliance; and breach simulations and penetration testing through internal and external exercises.
His background includes extensive experience as an enterprise CISO. Our CISO, in conjunction with other digital & technology leaders, implement and oversee processes for the regular monitoring of our information systems. This includes escalation protocols to identify, assess and escalate cyber incidents. We also deploy security measures and regular system audits to identify potential vulnerabilities.
His background includes extensive experience as an enterprise CISO. Our CISO, in conjunction with other digital & technology leaders, implements and oversees processes for the regular monitoring of our information systems. This includes escalation protocols to identify, assess and escalate cyber incidents. We also deploy security measures and regular system audits to identify potential vulnerabilities.
Protection measures include network firewalls, network intrusion detection and prevention, penetration testing, vulnerability assessments and remediation processes, threat intelligence, anti-malware and access controls, plus data loss prevention and monitoring. • Security Awareness / Training: All employees are required to adhere to our Standards of Business Conduct, which identifies an employee’s responsibility for information security.
Protection measures include, but are not limited to, network firewalls, network intrusion detection and prevention, penetration testing, attack surface management, vulnerability assessments and remediation processes, threat intelligence, anti-malware and access controls, plus data loss prevention and monitoring. • Security Awareness / Training: All employees are required to adhere to our Standards of Business Conduct, which identifies an employee’s responsibility for information security.
Removed
For additional information regarding risks from cybersecurity threats, see “Item 1A.
Added
While prior incidents have not been material and have not had a material impact on us, future incidents could have a material impact on our business strategy, results of operations or financial condition.
Added
Although our processes are designed to help prevent, detect, respond to and mitigate the impact of such incidents, there is no guarantee that they will be sufficient to prevent or mitigate the risk of a cyberattack or the reputational, operational, legal or financial impacts that may result. For additional information regarding risks from cybersecurity threats, see “Item 1A.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed3 unchanged
Biggest changeAs of December 31, 2023, we occupied offices, excluding affiliates, in the following geographical regions: Sales Offices (1) Corporate Offices Total Americas 258 1 259 Europe, Middle East and Africa (EMEA) 257 1 258 Asia Pacific 160 1 161 Total 675 3 678 ________________________________________________________________________________________________________________________________________ (1) Includes 124 offices of Turner & Townsend, including 36 in the Americas, 58 in EMEA, and 30 offices in APAC regions.
Biggest changeAs of December 31, 2024, we occupied offices, excluding offices occupied by affiliates, in the following geographical regions: Sales Offices (1) Corporate Offices Total Americas 274 1 275 Europe, Middle East and Africa (EMEA) 267 1 268 Asia Pacific 165 1 166 Total 706 3 709 ________________________________________________________________________________________________________________________________________ (1) Includes 129 offices of Turner & Townsend, including 41 in the Americas, 57 in EMEA, and 31 offices in APAC regions.
In addition, we believe there is adequate alternative office space available at acceptable rental rates to meet our needs, although adverse movements in rental rates in some markets may negatively affect our profits in those markets when we enter into new leases. 23 Table of Contents
In addition, we believe there is adequate alternative office space available at acceptable rental rates to meet our needs, although adverse movements in rental rates in some markets may negatively affect our profits in those markets when we enter into new leases. 24 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

2 edited+0 added−0 removed1 unchanged
Biggest changeWe believe that any losses in excess of the amounts accrued therefore as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated.
Biggest changeWe believe that any losses in excess of the amounts accrued as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated.
Item 4. Mine Safety Disclosures. Not applicable. 24 Table of Contents PART II
Item 4. Mine Safety Disclosures. Not applicable. 25 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

12 edited+0 added−1 removed2 unchanged
Biggest changeIssuer Purchases of Equity Securities Open market share repurchase activity during the three months ended December 31, 2023 was as follows (dollars in millions, except per share amounts): Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) October 1, 2023 - October 31, 2023 204,786 $ 68.36 204,786 November 1, 2023 - November 30, 2023 80,468 69.51 80,468 December 1, 2023 - December 31, 2023 — — — 285,254 $ 68.69 285,254 $ 1,466 ________________________________________________________________________________________________________________________________________ (1) In November 2021, our board of directors authorized a program for the company to repurchase up to $2.0 billion of our Class A common stock over five years, effective November 19, 2021 (the 2021 program).
Biggest changeIssuer Purchases of Equity Securities Open market share repurchase activity during the three months ended December 31, 2024 was as follows (dollars in millions, except per share amounts): Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) October 1, 2024 - October 31, 2024 21,324 $ 119.48 21,324 November 1, 2024 - November 30, 2024 2,301,758 134.80 2,301,758 December 1, 2024 - December 31, 2024 1,665,592 132.61 1,665,592 3,988,674 $ 133.81 3,988,674 $ 5,822 ________________________________________________________________________________________________________________________________________ (1) In November 2024, our 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 December 31, 2024.
Any future determination to pay cash dividends will be at the discretion of our board of directors and will depend on our financial condition, acquisition or other opportunities to invest capital, results of operations, capital requirements and other factors that the board of directors deems relevant. Recent Sales of Unregistered Securities None.
Any future determination to pay cash dividends will be at the discretion of our Board of Directors (Board) and will depend on our financial condition, acquisition or other opportunities to invest capital, results of operations, capital requirements and other factors that the Board deems relevant. Recent Sales of Unregistered Securities None.
The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors. 25 Table of Contents Stock Performance Graph The graph below matches the 5 Year Cumulative Total Return of holders of CBRE Group, Inc.’s common stock with the cumulative total returns of the S&P 500 Index and a customized peer group of eight companies that includes: JLL, a global commercial real estate services company publicly traded in the U.S., as well as the following companies that have significant commercial real estate or real estate capital markets businesses within the U.S. or globally, that in each case are publicly traded in the U.S. or abroad: Colliers International Group Inc.
The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors. 26 Table of Contents Stock Performance Graph The graph below matches the 5 Year Cumulative Total Return of holders of CBRE Group, Inc.’s common stock with the cumulative total returns of the S&P 500 Index and a customized peer group of eight companies that includes: JLL, a global commercial real estate services company publicly traded in the U.S., as well as the following companies that have significant commercial real estate or real estate capital markets businesses within the U.S. or globally, that in each case are publicly traded in the U.S. or abroad: Colliers International Group Inc.
(CIGI), Cushman & Wakefield plc (CWK), ISS A/S (ISS), Marcus & Millichap, Inc. (MMI), Newmark Group Inc. (NMRK), Savills plc (SVS.L), and Walker & Dunlop, Inc. (WD). These companies are or include divisions with business lines reasonably comparable to some or all of ours, and which represent our current primary competitors.
(CIGI), Cushman & Wakefield plc (CWK), ISS A/S (ISS), Marcus & Millichap, Inc. (MMI), Newmark Group Inc. (NMRK), Savills plc (SVS.L), and Walker & Dunlop, Inc. (WD). These companies are reasonably comparable to us, or include divisions with business lines reasonably comparable to some or all of ours, and represent our current primary competitors.
All rights reserved. 26 Table of Contents This graph shall not be deemed incorporated by reference by any general statement incorporating by reference this Annual Report into any filing under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate this information by reference therein, and shall not otherwise be deemed filed under the Securities Act or the Exchange Act.
All rights reserved. 27 Table of Contents This graph shall not be deemed incorporated by reference by any general statement incorporating by reference this Annual Report into any filing under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate this information by reference therein, and shall not otherwise be deemed filed under the Securities Act or the Exchange Act.
The graph assumes that the value of the investment in our common stock, in each index, and in the peer group (including reinvestment of dividends) was $100 on December 31, 2018 and tracks it through December 31, 2023. Our stock price performance shown in the graph below is not necessarily indicative of future stock price performance.
The graph assumes that the value of the investment in our common stock, in each index, and in the peer group (including reinvestment of dividends) was $100 on December 31, 2019 and tracks it through December 31, 2024. Our stock price performance shown in the graph below is not necessarily indicative of future stock price performance.
Fiscal year ending December 31. (2) Copyright© 2024 Standard & Poor’s, a division of S&P Global.
Fiscal year ending December 31. (2) Copyright© 2025 Standard & Poor’s, a division of S&P Global.
Prior to that, from June 10, 2004 to March 18, 2018, our Class A common stock traded on the NYSE under the symbol “CBG.” As of February 15, 2024, there were 44 stockholders of record of our Class A common stock. This figure does not include beneficial owners who hold shares in nominee name.
Prior to that, from June 10, 2004 to March 18, 2018, our Class A common stock traded on the NYSE under the symbol “CBG.” As of February 11, 2025, there were 48 stockholders of record of our Class A common stock. This figure does not include beneficial owners who hold shares in nominee name.
We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses.
Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash. We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses.
Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash.
Our stock repurchase program does not obligate us to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
The remaining $1.5 billion in the table represents the amount available to repurchase shares under the 2021 program as of December 31, 2023. Our stock repurchase program does not obligate us to acquire any specific number of shares.
The Board also extended the term of the 2024 program through December 31, 2029. During the fourth quarter of 2024, we repurchased an aggregate of $534 million of our common stock under the 2024 program. The remaining $5.8 billion in the table represents the amount available to repurchase shares under the 2024 program as of December 31, 2024.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN (1) AMONG CBRE GROUP, INC., THE S&P 500 INDEX (2) , AND PEER GROUP 12/31/18 12/19 12/20 12/21 12/22 12/23 CBRE Group, Inc. $ 100.00 $ 153.07 $ 156.64 $ 271.00 $ 192.21 $ 232.49 S&P 500 100.00 131.49 155.68 200.37 164.08 207.21 Peer Group 100.00 142.68 117.35 172.95 112.48 127.72 ________________________________________________________________________________________________________________________________________ (1) $100 invested on December 31, 2018 in stock or index-including reinvestment of dividends.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN (1) AMONG CBRE GROUP, INC., THE S&P 500 INDEX (2) , AND PEER GROUP 12/31/19 12/20 12/21 12/22 12/23 12/24 CBRE Group, Inc. $ 100.00 $ 102.33 $ 177.04 $ 125.57 $ 151.88 $ 214.21 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 Peer Group 100.00 85.50 140.81 89.11 104.84 121.11 ________________________________________________________________________________________________________________________________________ (1) $100 invested on December 31, 2019 in stock or index-including reinvestment of dividends.
Removed
In August 2022, our board of directors authorized an additional $2.0 billion under this program, bringing the total authorized amount under the 2021 program to a total of $4.0 billion. During the fourth quarter of 2023, we repurchased an aggregate of $19.6 million of our common stock under the 2021 program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

102 edited+47 added−49 removed38 unchanged
Biggest changeWe also use core EBITDA and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs. 45 Table of Contents Core EBITDA is calculated as follows (dollars in millions): Year Ended December 31, 2023 2022 Net income attributable to CBRE Group, Inc. $ 986 $ 1,407 Net income attributable to non-controlling interests 41 17 Net income 1,027 1,424 Adjustments: Depreciation and amortization 622 613 Asset impairments — 59 Interest expense, net of interest income 149 69 Write-off of financing costs on extinguished debt — 2 Provision for income taxes 250 234 Carried interest incentive compensation reversal to align with the timing of associated revenue (7) (4) Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (5) Costs incurred related to legal entity restructuring 13 13 Integration and other costs related to acquisitions 62 40 Costs associated with efficiency and cost-reduction initiatives 159 118 Provision associated with Telford’s fire safety remediation efforts — 186 One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired (34) — Net fair value adjustments on strategic non-core investments (32) 175 Core EBITDA $ 2,209 $ 2,924 Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data): Year Ended December 31, 2023 2022 Net income attributable to CBRE Group, Inc. $ 986 $ 1,407 Plus / minus: Carried interest incentive compensation reversal to align with the timing of associated revenue (7) (4) Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (5) Costs incurred related to legal entity restructuring 13 13 Integration and other costs related to acquisitions 62 40 Costs associated with efficiency and cost-reduction initiatives 159 118 Provision associated with Telford’s fire safety remediation efforts — 186 One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired (34) — Net fair value adjustments on strategic non-core investments (32) 175 Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions 167 166 Asset impairments — 59 Write-off of financing costs on extinguished debt — 2 Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core investments (82) (254) Impact of adjustments on non-controlling interest (33) (40) Core net income attributable to CBRE Group, Inc., as adjusted $ 1,199 $ 1,863 Core diluted income per share attributable to CBRE Group, Inc., as adjusted $ 3.84 $ 5.69 Weighted average shares outstanding for diluted income per share 312,550,942 327,696,115 46 Table of Contents Net revenue and gross revenue from resilient business lines is calculated as follows (dollars in millions): Year Ended December 31, 2023 2022 Net revenue from resilient business lines Facilities management $ 5,806 $ 5,137 Property management 1,840 1,777 Project management 3,124 2,735 Valuation 716 765 Loan servicing 317 311 Asset management fees (1) 539 536 Total net revenue from resilient business lines 12,342 11,261 Pass through costs also recognized as revenue 13,673 12,051 Total revenue from resilient business lines $ 26,015 $ 23,312 ________________________________________________________________________________________________________________________________________ (1) Asset management fees is included in Investment management revenue. 47 Table of Contents
Biggest changeWe also use core EBITDA and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs. 47 Table of Contents Core EBITDA is calculated as follows (dollars in millions): Year Ended December 31, 2024 2023 Net income attributable to CBRE Group, Inc. $ 968 $ 986 Net income attributable to non-controlling interests 68 41 Net income 1,036 1,027 Adjustments: Depreciation and amortization 674 622 Interest expense, net of interest income 215 149 Provision for income taxes 182 250 Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 8 (7) Integration and other costs related to acquisitions 93 62 Costs incurred related to legal entity restructuring 2 13 Costs associated with efficiency and cost-reduction initiatives 259 159 Provision associated with Telford’s fire safety remediation efforts 33 — Impact of fair value non-cash adjustments related to unconsolidated equity investments 9 — Charges related to indirect tax audits and settlements 76 — One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired — (34) Net fair value adjustments on strategic non-core investments 117 (32) Core EBITDA $ 2,704 $ 2,209 Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data): Year Ended December 31, 2024 2023 Net income attributable to CBRE Group, Inc. $ 968 $ 986 Adjustments: Integration and other costs related to acquisitions 93 62 Costs incurred related to legal entity restructuring 2 13 Costs associated with efficiency and cost-reduction initiatives 259 159 Impact of fair value non-cash adjustments related to unconsolidated equity investments 9 — Provision associated with Telford’s fire safety remediation efforts 33 — Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 8 (7) Charges related to indirect tax audits and settlements 76 — One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired — (34) Net fair value adjustments on strategic non-core investments 117 (32) Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions 199 167 Interest expense related to indirect tax audits and settlements 16 — Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core investments (191) (82) Impact of adjustments on non-controlling interest (18) (33) Core net income attributable to CBRE Group, Inc., as adjusted $ 1,571 $ 1,199 Core diluted income per share attributable to CBRE Group, Inc., as adjusted $ 5.10 $ 3.84 Weighted average shares outstanding for diluted income per share 308,033,612 312,550,942 48 Table of Contents Net revenue and gross revenue from resilient business lines is calculated as follows (dollars in millions): Year Ended December 31, 2024 2023 Net revenue from resilient business lines Facilities management $ 6,907 $ 5,806 Property management 2,123 1,840 Project management 3,433 3,124 Valuation 751 716 Loan servicing 331 317 Recurring investment management fees (1) 537 539 Total net revenue from resilient business lines 14,082 12,342 Pass-through costs also recognized as revenue 14,899 13,673 Total revenue from resilient business lines $ 28,981 $ 26,015 ________________________________________________________________________________________________________________________________________ (1) Recurring investment management fees is included in Investment management revenue. 49 Table of Contents
For additional information on our segments, see Note 19 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
For additional information on our segments, see Note 19 – Segments of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
(CBRE Services) and Relam Amsterdam Holdings B.V., a wholly-owned subsidiary of CBRE Services, entered into a new 5-year senior unsecured Credit Agreement (the 2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced the previous credit agreement.
(CBRE Services) and Relam Amsterdam Holdings B.V., a wholly-owned subsidiary of CBRE Services, entered into a new 5-year senior unsecured Credit Agreement (2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced the previous credit agreement.
Income Taxes Income taxes are accounted for under the asset and liability method in accordance with the “ Accounting for Income Taxes ” topic of the FASB ASC (Topic 740). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carry forwards.
Income Taxes Income taxes are accounted for under the asset and liability method in accordance with FASB ASC Topic 740, “ Accounting for Income Taxes ” (Topic 740). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carry forwards.
These significant judgements include: (i) determining what point in time or what measure of progress depicts the transfer of control to the customer; (ii) applying the series guidance to certain performance obligations satisfied over time; (iii) estimating how and when contingencies, or other forms of variable consideration, will impact the timing and amount of recognition of revenue and (iv) determining whether we control third party services before they are transferred to the customer in order to appropriately recognize the associated fees on either a gross or net basis.
These significant judgements include: (i) determining what point in time or what measure of progress depicts the transfer of control to the customer; (ii) applying the series guidance to certain performance obligations satisfied over time; (iii) estimating how and when contingencies, or other forms of variable consideration, will impact the timing and amount of recognition of revenue and (iv) determining whether we control third party services before they are transferred to the customer in order to appropriately recognize the associated revenue on either a gross or net basis.
On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 (the 4.875% senior notes) at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc.
On August 13, 2015, CBRE Services issued $600 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 (the 4.875% senior notes) at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc.
The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding senior term loans, approximately $437.5 million, under the previous credit agreement, the payment of related fees and expenses and other general corporate purposes.
The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding senior term loans, approximately $437 million, under the previous credit agreement, the payment of related fees and expenses and other general corporate purposes.
This measures may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt.
These measures may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt.
Our AUM is intended principally to reflect the extent of our presence in the real estate market, not the basis for determining our management fees.
Our AUM is intended principally to reflect the extent of our presence in the real estate market, not to be the basis for determining our management fees.
The estimates were developed using the best available data, including (i) industry data, (ii) fire safety assessments (also known as PAS assessments and include fire risk appraisal of external wall construction) which identified remediation work to be performed on specific buildings, and (iii) bids from subcontractors.
The estimates were developed using the best available data, including (i) industry data, (ii) fire safety assessments (also known as Publicly Available Specification (PAS) assessments and include fire risk appraisal of external wall construction) which identified remediation work to be performed on specific buildings, and (iii) bids from subcontractors.
While we believe the resulting tax balances as of December 31, 2023 and 2022 are appropriately accounted for in accordance with Topic 740, as applicable, the ultimate outcome of such matters could result in favorable or unfavorable adjustments to our consolidated financial statements and such adjustments could be material.
While we believe the resulting tax balances as of December 31, 2024 and 2023 are appropriately accounted for in accordance with Topic 740, as applicable, the ultimate outcome of such matters could result in favorable or unfavorable adjustments to our consolidated financial statements and such adjustments could be material.
(5) Represents deferred obligations, excluding contingent considerations, related to previous acquisitions, which are included in accounts payable and accrued expenses and other long-term liabilities in the consolidated balance sheets at December 31, 2023 set forth in Item 8 of this Annual Report.
(5) Represents deferred obligations, excluding contingent considerations, related to previous acquisitions, which are included in accounts payable and accrued expenses and other long-term liabilities in the consolidated balance sheets at December 31, 2024 set forth in Item 8 of this Annual Report.
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.
The second long-term liquidity element 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.
For information about our future estimated payment obligations for these plans, see Note 14 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. ________________________________________________________________________________________________________________________________________ (1) Reflects gross outstanding long-term debt balances as of December 31, 2023, assumed to be paid at maturity, excluding unamortized discount, premium and deferred financing costs.
For information about our future estimated payment obligations for these plans, see Note 14 – Employee Benefit Plans of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. ________________________________________________________________________________________________________________________________________ (1) Reflects gross outstanding long-term debt balances as of December 31, 2024, assumed to be paid at maturity, excluding unamortized discount, premium and deferred financing costs.
The timing and amount of revenue recognition in a period could vary if different judgments were made. Our revenues subject to the most judgment are brokerage commission revenue, incentive-based management fees, development fees and third party fees associated with our occupier outsourcing and property management services.
The timing and amount of revenue recognition in a period could vary if different judgments were made. Our revenues subject to the most judgment are sales and lease commission revenue, incentive-based management fees, development fees and third party fees associated with our occupier outsourcing and property management services.
We are paying the federal tax liability for the Transition Tax in annual interest-free installments over a period of eight years through 2025 as allowed by the Tax Act. The next installment is due in 2024 for the 2023 fiscal year. In addition, as of December 31, 2023, the total amount of gross unrecognized tax benefits totaled $413.5 million.
We are paying the federal tax liability for the Transition Tax in annual interest-free installments over a period of eight years through 2025 as allowed by the Tax Act. The next installment is due in 2025 for the 2024 fiscal year. In addition, as of December 31, 2024, the total amount of gross unrecognized tax benefits totaled $347 million.
(11) See Note 22 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. 40 Table of Contents Indebtedness We use a variety of financing arrangements, both long-term and short-term, to fund our operations in addition to cash generated from operating activities.
(11) See Note 22 – Telford Fire Safety Remediation of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. 40 Table of Contents Indebtedness We use a variety of financing arrangements, both long-term and short-term, to fund our operations in addition to cash generated from operating activities.
Of this amount, we expect an insignificant amount of cash settlement in less than one year. See Note 15 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. (8) See Note 13 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Of this amount, we expect an insignificant amount of cash settlement in less than one year. See Note 15 – Income Taxes of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
The 2023 Credit Agreement provides for a senior unsecured term loan credit facility comprised of (i) tranche A Euro-denominated term loans in an aggregate principal amount of €366.5 million and (ii) tranche A U.S.
The 2023 Credit Agreement provides for a senior unsecured term loan credit facility comprised of (i) tranche A Euro-denominated term loans in an aggregate principal amount of €367 million and (ii) tranche A U.S.
Discussion regarding our financial condition and results of operations for the year ended December 31, 2022 and comparisons between the years ended December 31, 2022 and 2021 are included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s 2022 Annual Report filed with the SEC on February 27, 2023.
Discussion regarding our financial condition and results of operations for the year ended December 31, 2023 and comparisons between the years ended December 31, 2023 and 2022 are included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s 2023 Annual Report filed with the SEC on February 20, 2024.
We have the option to perform a qualitative assessment with respect to any of our reporting units and indefinite-lived intangible assets to determine whether a quantitative impairment test is needed.
We have the option to perform a qualitative assessment with respect to any of our reporting units and indefinite-lived intangible 43 Table of Contents assets to determine whether a quantitative impairment test is needed.
As of December 31, 2023, we had $3.7 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 $1.3 billion of cash and cash equivalents.
As of December 31, 2024, we had $3.3 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 $1.1 billion of cash and cash equivalents.
(3) See Note 12 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
See Note 12 – Leases of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Our Revolving Credit Agreement, 5.950% senior notes, 4.875% senior notes and 2.500% senior notes are fully and unconditionally guaranteed by CBRE Group, Inc. 41 Table of Contents Combined summarized financial information for CBRE Group, Inc.
Our 5.950% senior notes, 5.500% senior notes, 4.875% senior notes and 2.500% senior notes are fully and unconditionally guaranteed by CBRE Group, Inc. 41 Table of Contents Combined summarized financial information for CBRE Group, Inc.
(4) Reflects gross outstanding notes payable on real estate as of December 31, 2023 (none of which is recourse to us, beyond being recourse to the single-purpose entity that held the real estate asset and was the primary obligor on the note payable), assumed to be paid at maturity, excluding unamortized deferred financing costs.
(4) Reflects gross outstanding notes payable on real estate as of December 31, 2024 ($9 million of which is recourse to us, beyond being recourse to the single-purpose entity that held the real estate asset and was the primary obligor on the note payable), assumed to be paid at maturity, excluding unamortized deferred financing costs.
Because not all companies use identical calculations, our presentation of net revenue, core EBITDA, core adjusted net income and core EPS may not be comparable to similarly titled measures of other companies. Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients and generally has no margin.
Because not all companies use identical calculations, our presentation of net revenue, core EBITDA, core adjusted net income and core EPS may not be comparable to similarly titled measures of other companies. Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients and is passed through to the client generally with no margin.
Business.” We generate revenue from both stable, resilient sources (large multi-year portfolio and per-project contracts) and non-recurring sources, including commissions on transactions. Our revenue mix has become more weighted towards resilient revenue sources, particularly occupier outsourcing, and our dependence on cyclical property sales and lease transaction revenue has declined.
We generate revenue from both resilient sources (large multi-year portfolio and per-project contracts) and non-recurring sources, including commissions generated by transactions. Our revenue mix has become more weighted towards resilient revenue sources, particularly occupier outsourcing, and our dependence on cyclical property sales and lease transaction revenue has declined.
See Note 15 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for further information regarding income taxes. Telford Fire Safety Remediation As of December 31, 2023, the company had an estimated liability of $192.1 million on the balance sheet which represents management’s best estimate of future losses associated with overall remediation efforts.
See Note 15 – Income Taxes of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for further information regarding income taxes. 44 Table of Contents Telford Fire Safety Remediation As of December 31, 2024, the company had an estimated liability of $204 million on the balance sheet which represents management’s best estimate of future losses associated with overall remediation efforts.
Revenue Recognition To recognize revenue in a transaction with a customer, we evaluate the five steps of the Accounting Standards Codification (ASC) Topic 606 revenue recognition framework: (1) identify the contract; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations and (5) recognize revenue when (or as) the performance obligations are satisfied.
Revenue Recognition To recognize revenue in a transaction with a customer, we evaluate the five steps of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, “ Revenue from Contracts with Customers ” revenue recognition framework: (1) identify the contract; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations and (5) recognize revenue when (or as) the performance obligations are satisfied.
Dollar-denominated term loans in an aggregate principal amount of $350.0 million with weighted average interest rate of 5.8% as of December 31, 2023, both requiring quarterly principal payments beginning on December 31, 2024 and continuing through maturity on July 10, 2028.
Dollar-denominated term loans in an aggregate principal amount of $350 million with weighted average interest rate of 4.9% as of December 31, 2024, both requiring quarterly principal payments beginning on December 31, 2024 and continuing through maturity on July 10, 2028.
See Note 22 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for further information. Investments in unconsolidated subsidiaries – fair value option We have elected the fair value option for certain of our investments in non-public entities to align with our strategy for these investments.
See Note 22 – Telford Fire Safety Remediation of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for further information. 45 Table of Contents Investments in unconsolidated subsidiaries – fair value option We have elected the fair value option for certain of our investments in non-public entities to align with our strategy for these investments.
Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue).
Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Our MSRs are initially recorded at fair value.
The term loan borrowings under the 2023 Credit Agreement are guaranteed on a senior basis by CBRE Group, Inc. and CBRE Services. On June 23, 2023, CBRE Services issued $1.0 billion in aggregate principal amount of 5.950% senior notes due August 15, 2034 (the 5.950% senior notes) at a price equal to 98.174% of their face value.
On June 23, 2023, CBRE Services issued $1.0 billion in aggregate principal amount of 5.950% senior notes due August 15, 2034 (the 5.950% senior notes) at a price equal to 98.174% of their face value. The 5.950% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc.
As of December 31, 2023 and 2022, we had accrued deferred purchase consideration totaling $530.2 million ($264.1 million of which was a current liability) and $574.3 million ($117.3 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 8 of this Annual Report.
As of December 31, 2024 and 2023, we had accrued deferred purchase consideration totaling $292 million ($199 million of which was a current liability) and $530 million ($264 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 8 of this Annual Report.
In determining the estimated fair value of these investments, we utilize appropriate valuation techniques including discounted cash flow analyses and Monte Carlo simulations. Key inputs to the discounted cash flow analyses include projected cash flows, terminal growth rate, and discount rate.
In determining the estimated fair value of these investments, we utilize appropriate valuation techniques including discounted cash flow analyses and Monte Carlo simulations. Key inputs to the discounted cash flow analyses include projected cash flows, terminal growth rate, and discount rate. Key inputs to Monte Carlo simulations include stock price, volatility, risk free rate, and dividend yield.
For additional information on goodwill and intangible asset impairment testing, see Notes 2 and 9 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
For additional information on goodwill and intangible asset impairment testing, see Note 2 – Significant Accounting Policies and Note 9 – Goodwill and Other Intangible Assets of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Overview CBRE is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). We serve clients through three business segments – Advisory Services, Global Workplace Solutions (GWS) and Real Estate Investments (REI) – which are described in “Item 1.
Overview CBRE is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). In 2024, we served clients through three business segments – Advisory Services, Global Workplace Solutions (GWS) and Real Estate Investments (REI) – which are described in “Item 1. Business” in this Annual Report.
The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors. 38 Table of Contents As more fully described in Note 22 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report, on March 16, 2023, Telford Homes entered into a legally binding agreement with the U.K. government, under which Telford Homes will (1) take responsibility for performing or funding remediation works relating to certain life-critical fire-safety issues on all Telford Homes-constructed buildings of 11 meters in height or greater in England constructed in the last 30 years (in-scope buildings) and (2) withdraw Telford Homes-developed buildings from the government-sponsored Building Safety Fund (BSF) and Aluminum Composite Material (ACM) Funds or reimburse the government funds for the cost of remediation of in-scope buildings.
As more fully described in Note 22 – Telford Fire Safety Remediation of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report, on March 16, 2023, Telford Homes entered into a legally binding agreement with the U.K. government, under which Telford Homes will (1) take responsibility for performing or funding remediation works relating to certain life-critical fire-safety issues on all Telford Homes-constructed buildings of 11 meters in height or greater in England constructed in the last 30 years (in-scope buildings) and (2) withdraw Telford Homes-developed buildings from the government-sponsored Building Safety Fund (BSF) and Aluminum Composite Material (ACM) Funds or reimburse the government funds for the cost of remediation of in-scope buildings.
See Note 11 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. Figures do not include scheduled interest payments. Assuming each debt obligation is held until maturity, we estimate that we will make $965.6 million of interest payments, $144.8 million of which will be made in 2024.
See Note 11 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. Figures do not include scheduled interest payments. Assuming each debt obligation is held until maturity, we estimate that we will make $918 million of interest payments, $164 million of which will be made in 2025.
Different assumptions could result in different values being attributed to assets and liabilities. Since these values impact the amount of annual depreciation and amortization expense, different assumptions could also impact our statement of operations and could impact the results of future asset impairment reviews.
Since these values impact the amount of annual depreciation and amortization expense, different assumptions could also impact our statement of operations and could impact the results of future asset impairment reviews.
The indentures governing our 5.950% senior notes, 4.875% senior notes and 2.500% senior notes contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers. Our 2023 Credit Agreement is fully and unconditionally guaranteed by CBRE Group, Inc. and CBRE Services.
The indentures governing our 5.950% senior notes, 5.500% senior notes, 4.875% senior notes and 2.500% senior notes contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers.
Amounts do not include scheduled interest payments. The notes have either fixed or variable interest rates, ranging from 3.00% to 9.00% at December 31, 2023.
Amounts do not include scheduled interest payments. The notes have either fixed or variable interest rates, ranging from 3.0% to 8.1% at December 31, 2024.
Our expected capital requirements for 2024 include up to $319.9 million of anticipated capital expenditures, net of tenant concessions. During the year ended December 31, 2023, we incurred $293.2 million of capital expenditures, net of tenant concessions received.
Our expected capital requirements for 2025 include up to $360 million of anticipated capital expenditures, net of tenant concessions. During the year ended December 31, 2024, we incurred $279 million of capital expenditures, net of tenant concessions received.
Current-year activity primarily includes a one-time gain of approximately $34.2 million associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired.
In 2023, we recognized a one-time gain of approximately $34 million associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired.
Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash. We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses.
We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses.
The following table summarizes our results of operations for our Corporate and other segment for the years ended December 31, 2023 and 2022 (dollars in millions): Year Ended December 31, (1) 2023 2022 Elimination of inter-segment revenue $ (17) $ (16) Costs and expenses: Cost of revenue (2) (3) (11) Operating, administrative and other 460 432 Depreciation and amortization 56 33 Total costs and expenses 513 454 Operating loss (530) (470) Equity income (loss) from unconsolidated subsidiaries 27 (167) Other income (loss) 13 (19) Add-back: Depreciation and amortization 56 33 Adjustments: Integration and other costs related to acquisitions 39 — Costs incurred related to legal entity restructuring 13 13 Costs associated with efficiency and cost-reduction initiatives 14 32 Segment operating loss $ (368) $ (578) ________________________________________________________________________________________________________________________________________ (1) Percentage of revenue calculations are not meaningful and therefore not included.
The following table summarizes our results of operations for our Corporate and other segment for the years ended December 31, 2024 and 2023 (dollars in millions): Year Ended December 31, (1) 2024 2023 Elimination of inter-segment revenue $ (17) $ (17) Costs and expenses: Cost of revenue (2) 26 (3) Operating, administrative and other 723 460 Depreciation and amortization 57 56 Total costs and expenses 806 513 Operating loss (823) (530) Equity (loss) income from unconsolidated subsidiaries (134) 27 Other income 25 13 Add-back: Depreciation and amortization 57 56 Adjustments: Integration and other costs related to acquisitions 76 39 Costs incurred related to legal entity restructuring 2 13 Costs associated with efficiency and cost-reduction initiatives 151 14 Charges related to indirect tax audits and settlements 76 — Segment operating loss $ (570) $ (368) ________________________________________________________________________________________________________________________________________ (1) Percentage of revenue calculations are not meaningful and therefore not included.
Core EBITDA and core adjusted net income exclude carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, efficiency and cost-reduction initiatives, integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, a one-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired, fair value changes on certain non-core non-controlling equity investments, non-cash depreciation and amortization expense related to certain assets attributable to acquisitions and restructuring activities and related impact on income taxes and non-controlling interest.
Core EBITDA and core adjusted net income represent earnings before the portion attributable to non-controlling interests, net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, costs incurred related to legal entity restructuring, efficiency and cost-reduction initiatives, integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, charges related to indirect tax audits and settlements, a one-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired, fair value changes on certain non-core non-controlling equity investments, the impact of fair value adjustments related to unconsolidated equity investments, non-cash depreciation and amortization expense related to certain assets attributable to acquisitions and restructuring activities and related impact on income taxes and non-controlling interest.
We had an estimated liability of approximately $192.1 million (of which $82.2 million was current) and $185.9 million (of which $51.6 million was current) as of December 31, 2023 and 2022, respectively, related to the remediation efforts.
We had an estimated liability of approximately $204 million (of which $102 million was current) and $192 million (of which $82 million was current) as of December 31, 2024 and 2023, respectively, related to the remediation efforts.
(6) Represents outstanding reserves for claims under certain insurance programs, which are included in other current and other long-term liabilities in the consolidated balance sheets at December 31, 2023 set forth in Item 8 of this Annual Report. Due to the nature of this item, payments could be due at any time upon the occurrence of certain events.
(6) Represents outstanding reserves for claims under certain insurance programs, which are included in other current and other long-term liabilities in the consolidated balance sheets as of December 31, 2024 set forth in Item 8 of this Annual Report.
Advisory Services The following table summarizes our results of operations for our Advisory Services operating segment for the years ended December 31, 2023 and 2022 (dollars in millions): Year Ended December 31, 2023 2022 Revenue: Net revenue: Property management $ 1,840 21.7 % $ 1,777 18.0 % Valuation 716 8.4 % 765 7.7 % Loan servicing 317 3.7 % 311 3.2 % Advisory leasing 3,503 41.2 % 3,872 39.2 % Capital markets: Advisory sales 1,611 19.0 % 2,523 25.5 % Commercial mortgage origination 424 5.0 % 563 5.7 % Total segment net revenue 8,411 99.0 % 9,811 99.3 % Pass through costs also recognized as revenue 88 1.0 % 72 0.7 % Total segment revenue 8,499 100.0 % 9,883 100.0 % Costs and expenses: Cost of revenue 5,147 60.6 % 5,980 60.5 % Operating, administrative and other 2,076 24.4 % 2,055 20.8 % Depreciation and amortization 289 3.4 % 311 3.1 % Asset impairments — 0.0 % 10 0.1 % Total costs and expenses 7,512 88.4 % 8,356 84.5 % Operating income 987 11.6 % 1,527 15.5 % Equity income from unconsolidated subsidiaries 4 0.0 % 15 0.1 % Other income 46 0.5 % 1 0.0 % Add-back: Depreciation and amortization 289 3.4 % 311 3.1 % Add-back: Asset impairments — 0.0 % 10 0.1 % Adjustments: One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired (34) (0.4) % — 0.0 % Costs associated with efficiency and cost-reduction initiatives 72 0.9 % 46 0.5 % Segment operating profit and segment operating profit on revenue margin $ 1,364 16.0 % $ 1,910 19.3 % Segment operating profit on net revenue margin 16.2 % 19.5 % 32 Table of Contents Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenue decreased by $1.4 billion, or 14.0%, in 2023 with declines across most lines of business, except property management and loan servicing.
Advisory Services The following table summarizes our results of operations for our Advisory Services operating segment for the years ended December 31, 2024 and 2023 (dollars in millions): Year Ended December 31, 2024 2023 Revenue: Net revenue: Property management $ 2,123 22.1 % $ 1,840 21.7 % Valuation 751 7.8 % 716 8.4 % Loan servicing 331 3.4 % 317 3.7 % Advisory leasing 3,932 40.9 % 3,503 41.2 % Capital markets: Advisory sales 1,774 18.5 % 1,611 19.0 % Commercial mortgage origination 596 6.2 % 424 5.0 % Total segment net revenue 9,507 99.0 % 8,411 99.0 % Pass-through costs also recognized as revenue 99 1.0 % 88 1.0 % Total segment revenue 9,606 100.0 % 8,499 100.0 % Costs and expenses: Cost of revenue 5,858 61.0 % 5,147 60.6 % Operating, administrative and other 2,099 21.9 % 2,076 24.4 % Depreciation and amortization 272 2.8 % 289 3.4 % Total costs and expenses 8,229 85.7 % 7,512 88.4 % Operating income 1,377 14.3 % 987 11.6 % Equity income from unconsolidated subsidiaries 1 0.0 % 4 0.0 % Other income 5 0.1 % 46 0.5 % Add-back: Depreciation and amortization 272 2.8 % 289 3.4 % Adjustments: Costs associated with efficiency and cost-reduction initiatives 40 0.4 % 72 0.9 % One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired — 0.0 % (34) (0.4) % Segment operating profit and segment operating profit on revenue margin $ 1,695 17.6 % $ 1,364 16.0 % Segment operating profit on net revenue margin 17.8 % 16.2 % 32 Table of Contents Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue increased 13.0% in 2024 as compared to the same period in 2023.
(10) Due to the nature of guarantees, payments could be due at any time upon the occurrence of certain triggering events, including default. Accordingly, all guarantees are reflected as expiring in less than one year.
This amount does not include capital committed to consolidated projects of $330 million as of December 31, 2024. (10) Due to the nature of guarantees, payments could be due at any time upon the occurrence of certain triggering events, including default. Accordingly, all guarantees are reflected as expiring in less than one year.
As of December 31, 2023, we had aggregate future commitments of $180.4 million related to co-investments funds in our Real Estate Investments segment, $128.0 million of which is expected to be funded in 2024.
As of December 31, 2024, we had aggregate future commitments of $205 million related to co-investments funds in our REI segment, $74 million of which is expected to be funded in 2025.
A roll forward of our assets under management (AUM) by product type for the year ended December 31, 2023 is as follows (dollars in billions): Funds Separate Accounts Securities Total Balance at December 31, 2022 $ 66.2 $ 73.2 $ 9.9 $ 149.3 Inflows 4.2 6.4 1.2 11.8 Outflows (3.1) (4.2) (2.1) (9.4) Market (depreciation) appreciation (2.0) (2.6) 0.4 (4.2) Balance at December 31, 2023 $ 65.3 $ 72.8 $ 9.4 $ 147.5 AUM generally refers to the properties and other assets with respect to which we provide (or participate in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, securities portfolios and investments in operating companies and joint ventures.
We recorded equity income from unconsolidated subsidiaries of approximately $117 million in 2024 as compared to equity income of $216 million in the same period in 2023, which included an unusually large gain on a development portfolio asset sale. 35 Table of Contents A roll forward of our assets under management (AUM) by product type for the year ended December 31, 2024 is as follows (dollars in billions): Funds Separate Accounts Securities Total Balance at December 31, 2023 $ 65.3 $ 72.8 $ 9.4 $ 147.5 Inflows 3.7 9.0 0.8 13.5 Outflows (3.3) (5.9) (1.5) (10.7) Market (depreciation) appreciation (1.7) (2.5) 0.1 (4.1) Balance at December 31, 2024 $ 64.0 $ 73.4 $ 8.8 $ 146.2 AUM generally refers to the properties and other assets with respect to which we provide (or participate in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, securities portfolios and investments in operating companies and joint ventures.
Based on our initial assessment we anticipate Pillar Two top-up taxes to be immaterial. 31 Table of Contents Segment Operations We organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions; and (3) Real Estate Investments. We also have a Corporate and other segment.
The impact of Pillar Two top-up taxes was insignificant for 2024. 31 Table of Contents Segment Operations As of December 31, 2024, our operations were organized around, and we publicly report financial results for, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions; and (3) Real Estate Investments. We also have a Corporate and Other segment.
(2) The majority of this balance represents our warehouse lines of credit, which are recourse only to our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) and are secured by our related warehouse receivables. See Notes 5 and 11 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
(2) The majority of this balance represents our warehouse lines of credit, which are recourse only to our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) and are secured by our related warehouse receivables.
The following table sets forth items derived from our consolidated statements of operations for the years ended December 31, 2023 and 2022 (dollars in millions): Year Ended December 31, 2023 2022 Revenue: Net revenue: Facilities management $ 5,806 18.2 % $ 5,137 16.7 % Property management 1,840 5.8 % 1,777 5.8 % Project management 3,124 9.8 % 2,735 8.9 % Valuation 716 2.2 % 765 2.5 % Loan servicing 317 1.0 % 311 1.0 % Advisory leasing 3,503 11.0 % 3,872 12.6 % Capital markets: Advisory sales 1,611 5.0 % 2,523 8.2 % Commercial mortgage origination 424 1.3 % 563 1.8 % Investment management 592 1.9 % 595 1.9 % Development services 360 1.1 % 515 1.7 % Corporate, other and eliminations (17) (0.1) % (16) (0.1) % Total net revenue 18,276 57.2 % 18,777 60.9 % Pass through costs also recognized as revenue 13,673 42.8 % 12,051 39.1 % Total revenue 31,949 100.0 % 30,828 100.0 % Costs and expenses: Cost of revenue 25,675 80.4 % 24,239 78.6 % Operating, administrative and other 4,562 14.3 % 4,649 15.1 % Depreciation and amortization 622 1.9 % 613 2.0 % Asset impairments — 0.0 % 59 0.2 % Total costs and expenses 30,859 96.6 % 29,560 95.9 % Gain on disposition of real estate 27 0.1 % 244 0.8 % Operating income 1,117 3.5 % 1,512 4.9 % Equity income from unconsolidated subsidiaries 248 0.8 % 229 0.7 % Other income (loss) 61 0.2 % (12) 0.0 % Interest expense, net of interest income 149 0.5 % 69 0.2 % Write-off of financing costs on extinguished debt — 0.0 % 2 0.0 % Income before provision for income taxes 1,277 4.0 % 1,658 5.4 % Provision for income taxes 250 0.8 % 234 0.8 % Net income 1,027 3.2 % 1,424 4.6 % Less: Net income attributable to non-controlling interests 41 0.1 % 17 0.1 % Net income attributable to CBRE Group, Inc. $ 986 3.1 % $ 1,407 4.6 % 29 Table of Contents Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 We reported consolidated net income of $985.7 million for the year ended December 31, 2023 on revenue of $31.9 billion as compared to consolidated net income of $1.4 billion on revenue of $30.8 billion for the year ended December 31, 2022.
The following table sets forth items derived from our consolidated statements of operations for the years ended December 31, 2024 and 2023 (dollars in millions): Year Ended December 31, 2024 2023 Revenue: Net revenue: Facilities management $ 6,907 19.3 % $ 5,806 18.2 % Property management 2,123 5.9 % 1,840 5.8 % Project management 3,433 9.6 % 3,124 9.8 % Valuation 751 2.1 % 716 2.2 % Loan servicing 331 0.9 % 317 1.0 % Advisory leasing 3,932 11.0 % 3,503 11.0 % Capital markets: Advisory sales 1,774 5.0 % 1,611 5.0 % Commercial mortgage origination 596 1.7 % 424 1.3 % Investment management 650 1.8 % 592 1.9 % Development services 388 1.1 % 360 1.1 % Corporate, other and eliminations (17) 0.0 % (17) (0.1) % Total net revenue 20,868 58.3 % 18,276 57.2 % Pass-through costs also recognized as revenue 14,899 41.7 % 13,673 42.8 % Total revenue 35,767 100.0 % 31,949 100.0 % Costs and expenses: Cost of revenue 28,811 80.6 % 25,675 80.4 % Operating, administrative and other 5,011 14.0 % 4,562 14.3 % Depreciation and amortization 674 1.9 % 622 1.9 % Total costs and expenses 34,496 96.4 % 30,859 96.6 % Gain on disposition of real estate 142 0.4 % 27 0.1 % Operating income 1,413 4.0 % 1,117 3.5 % Equity (loss) income from unconsolidated subsidiaries (19) (0.1) % 248 0.8 % Other income 39 0.1 % 61 0.2 % Interest expense, net of interest income 215 0.6 % 149 0.5 % Income before provision for income taxes 1,218 3.4 % 1,277 4.0 % Provision for income taxes 182 0.5 % 250 0.8 % Net income 1,036 2.9 % 1,027 3.2 % Less: Net income attributable to non-controlling interests 68 0.2 % 41 0.1 % Net income attributable to CBRE Group, Inc. $ 968 2.7 % $ 986 3.1 % 30 Table of Contents Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 We reported consolidated net income of $968 million for the year ended December 31, 2024 on revenue of $35.8 billion as compared to consolidated net income of $986 million on revenue of $31.9 billion for the year ended December 31, 2023.
For additional information on all of our short-term borrowings, see Notes 5 and 11 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
We also maintain warehouse lines of credit with certain third-party lenders. For additional information on all of our short-term borrowings, see Note 5 – Warehouse Receivables & Warehouse Lines of Credit and Note 11 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Additionally, as of December 31, 2023, we are committed to fund additional capital of $230.1 million and $73.9 million to consolidated and unconsolidated projects, respectively, within our Real Estate Investments segment.
Additionally, as of December 31, 2024, we are committed to fund additional capital of $330 million and $67 million to consolidated and unconsolidated projects, respectively, within our REI segment.
Historical Cash Flows Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Operating Activities Net cash provided by operating activities totaled $479.9 million for the year ended December 31, 2023, a decrease of $1.1 billion as compared to the year ended December 31, 2022.
Historical Cash Flows Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Operating Activities Net cash provided by operating activities totaled $1,708 million for the year ended December 31, 2024 as compared to $480 million in the prior year.
Transactional revenue and earnings within our Advisory Services segment (notably property sales and leasing) have historically been highest in the year’s fourth quarter due to the focus on completing transactions prior to year-end. However, our consolidated results have become less seasonal in recent years, as our reliance on transactional revenue has decreased.
Non-recurring transactional revenue and earnings within our Advisory Services segment (notably property sales and leasing) have historically been highest in the year’s fourth quarter due to a focus on completing transactions prior to year-end, but such seasonality has decreased as transactions have comprised a smaller proportion of our total revenue.
For a detailed discussion of our revenue recognition policies, see the Revenue Recognition section within Note 2 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. Goodwill and Other Intangible Assets As of December 31, 2023, our consolidated balance sheet included goodwill of $5.1 billion and other intangible assets of $2.1 billion.
For a detailed discussion of our revenue recognition policies, see the Revenue Recognition section within Note 2 – Significant Accounting Policies of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Non-GAAP Financial Measures Net revenue, segment operating profit on revenue margin, segment operating profit on net revenue margin, core EBITDA, core adjusted net income and core earnings per diluted share (or core EPS) are not recognized measurements under accounting principles generally accepted in the United States, or GAAP.
New Accounting Pronouncements See New Accounting Pronouncements discussion within Note 3 – New Accounting Pronouncements of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. 46 Table of Contents Non-GAAP Financial Measures Net revenue, segment operating profit on revenue margin, segment operating profit on net revenue margin, core EBITDA, core adjusted net income and core earnings per diluted share (or core EPS) are not recognized measurements under accounting principles generally accepted in the United States, or GAAP.
Other income was $46.2 million in 2023 versus $1.4 million in 2022. Current-year activity primarily includes a one-time gain of approximately $34.2 million associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired.
Other income decreased to $39 million from $61 million, driven primarily by a one-time gain of approximately $34 million recognized in 2023 associated with the remeasurement of an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired.
The estimates and assumptions are based on historical experience and on other factors that we believe to be reasonable. Actual results may differ from those estimates. We believe that the following critical accounting policies represent the areas where more significant judgments and estimates are used in the preparation of our consolidated financial statements.
We believe that the following critical accounting policies represent the areas where more significant judgments and estimates are used in the preparation of our consolidated financial statements.
Assumptions must often be made in determining fair values, particularly where observable market values do not exist. Assumptions may include discount rates, growth rates, cost of capital, royalty rates, tax rates and remaining useful lives. These assumptions can have a significant impact on the value of identifiable assets and accordingly can impact the value of goodwill recorded.
Assumptions may include discount rates, growth rates, cost of capital, royalty rates, tax rates and remaining useful lives. These assumptions can have a significant impact on the value of identifiable assets and accordingly can impact the value of goodwill recorded. Different assumptions could result in different values being attributed to assets and liabilities.
The OECD and other countries continue to publish guidelines and legislation which include transition and safe harbor rules. We continue to monitor new legislative changes and assess the global impact of the Pillar Two Model Rules.
We continue to monitor new legislative changes and assess the global impact of the Pillar Two Model Rules.
Due to the many variables inherent in the estimation of these fair values and the relative size of our goodwill and indefinite-lived intangible assets, if different assumptions and estimates were used, it could have an adverse effect on our impairment analysis. 43 Table of Contents We did not incur any impairment losses as a result of our 2023 annual impairment tests, as it was determined that it is more likely than not that the estimated fair values of our reporting units and indefinite-lived intangible assets were substantially in excess of their carrying values as of December 31, 2023.
We did not incur any impairment losses as a result of our 2024 annual impairment tests, as it was determined that it is more likely than not that the estimated fair values of our reporting units and indefinite-lived intangible assets were substantially in excess of their carrying values as of December 31, 2024.
Depreciation and amortization expense increased by $9.2 million, or 3.6%, in 2023 due to continued investment in technology. 34 Table of Contents Real Estate Investments The following table summarizes our results of operations for our Real Estate Investments (REI) operating segment for the years ended December 31, 2023 and 2022 (dollars in millions): Year Ended December 31, 2023 2022 Revenue: Investment management $ 592 62.1 % $ 595 53.6 % Development services 360 37.9 % 515 46.4 % Total segment revenue 952 100.0 % 1,110 100.0 % Costs and expenses: Cost of revenue 186 19.5 % 322 29.0 % Operating, administrative and other 784 82.4 % 1,082 97.5 % Depreciation and amortization 15 1.6 % 16 1.5 % Asset impairments — 0.0 % 49 4.4 % Total costs and expenses 985 103.5 % 1,469 132.4 % Gain on disposition of real estate 27 2.9 % 244 22.0 % Operating loss (6) (0.6) % (115) (10.4) % Equity income from unconsolidated subsidiaries 216 22.6 % 380 34.3 % Other income (loss) — 0.0 % (1) (0.1) % Add-back: Depreciation and amortization 15 1.6 % 16 1.5 % Add-back: Asset impairments — 0.0 % 49 4.4 % Adjustments: Carried interest incentive compensation reversal to align with the timing of associated revenue (7) (0.8) % (4) (0.4) % Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — 0.0 % (5) (0.5) % Costs associated with efficiency and cost-reduction initiatives 21 2.3 % 12 1.1 % Provision associated with Telford’s fire safety remediation efforts — 0.0 % 186 16.8 % Segment operating profit and segment operating profit on revenue margin $ 239 25.1 % $ 518 46.7 % Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Macroeconomic conditions had a significant impact on the REI segment.
Depreciation and amortization expense increased 26.7%, primarily due to increased amortization expense on intangibles related to the J&J Worldwide Services and certain other in-fill acquisitions. 34 Table of Contents Real Estate Investments The following table summarizes our results of operations for our Real Estate Investments (REI) operating segment for the years ended December 31, 2024 and 2023 (dollars in millions): Year Ended December 31, 2024 2023 Revenue: Investment management $ 650 62.6 % $ 592 62.1 % Development services 388 37.4 % 360 37.9 % Total segment revenue 1,038 100.0 % 952 100.0 % Costs and expenses: Cost of revenue 224 21.6 % 186 19.5 % Operating, administrative and other 862 83.0 % 784 82.4 % Depreciation and amortization 13 1.3 % 15 1.6 % Total costs and expenses 1,099 105.9 % 985 103.5 % Gain on disposition of real estate 142 13.7 % 27 2.9 % Operating income (loss) 81 7.8 % (6) (0.6) % Equity income from unconsolidated subsidiaries 117 11.3 % 216 22.6 % Other income 6 0.6 % — 0.0 % Add-back: Depreciation and amortization 13 1.3 % 15 1.6 % Adjustments: Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 8 0.8 % (7) (0.8) % Costs associated with efficiency and cost-reduction initiatives 3 0.3 % 21 2.3 % Provision associated with Telford’s fire safety remediation efforts 33 3.2 % — 0.0 % Segment operating profit and segment operating profit on revenue margin $ 261 25.1 % $ 239 25.1 % Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue increased 9.0% in 2024 as compared to 2023.
Accordingly, the entire balance has been reflected as expiring in less than one year. (7) As of December 31, 2023, we have a remaining federal tax liability of $54.8 million associated with the Transition Tax on mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.
(7) As of December 31, 2024, we have a remaining federal tax liability of $30 million associated with the Transition Tax on mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.
Our acquisitions require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value. The difference between the purchase price and the fair value of net assets acquired is recorded as goodwill.
Goodwill and Other Intangible Assets As of December 31, 2024, our consolidated balance sheets included goodwill of $5.6 billion and other intangible assets of $2.3 billion. Our acquisitions require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value.
On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 (the 2.500% senior notes) at a price equal to 98.451% of their face value. The 2.500% senior notes are unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group, Inc.
Interest accrues at a rate of 5.950% per year and is payable semi-annually in arrears on February 15 and August 15 of each year. On March 18, 2021, CBRE Services issued $500 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 (the 2.500% senior notes) at a price equal to 98.451% of their face value.
(parent) and CBRE Services (subsidiary issuer) is as follows (dollars in millions): December 31, 2023 2022 Balance Sheet Data: Current assets $ 7 $ 9 Non-current assets (1) 1,733 13 Total assets (1) 1,740 22 Current liabilities $ 48 $ 206 Non-current liabilities (2) 2,994 1,805 Total liabilities (2) 3,042 2,011 Year Ended December 31, 2023 2022 Statement of Operations Data: Revenue $ — $ — Operating loss (1) (3) Net (loss) income (70) 6 ________________________________________________________________________________________________________________________________________ (1) Increase in non-current assets is due to legal entity restructurings that were executed at December 31, 2023.
(parent) and CBRE Services (subsidiary issuer) is as follows (dollars in millions): December 31, 2024 2023 Balance Sheet Data: Current assets $ 29 $ 7 Non-current assets 1,730 1,733 Total assets 1,759 1,740 Current liabilities $ 1,072 $ 48 Non-current liabilities (1) 5,817 2,994 Total liabilities (1) 6,889 3,042 Year Ended December 31, 2024 2023 Statement of Operations Data: Revenue $ — $ — Operating income (loss) 99 (1) Net income (loss) 57 (70) ________________________________________________________________________________________________________________________________________ (1) Includes $3.3 billion and $933 million of intercompany loan payables to non-guarantor subsidiaries as of December 31, 2024 and 2023, respectively.
Foreign currency translation had a 0.3% benefit on total operating expenses during the year ended December 31, 2023. In connection with the origination and sale of mortgage loans for which the company retains servicing rights, we record servicing assets or liabilities based on the fair value of the retained mortgage servicing rights (MSRs) on the date the loans are sold.
In connection with the origination and sale of mortgage loans with servicing rights retained, we record servicing assets or liabilities based on the fair value of mortgage servicing rights (MSRs) on the date the loans are sold.
For the year ended December 31, 2023, MSRs contributed to operating income $83.8 million of gains recognized in conjunction with the origination and sale of mortgage loans, offset by $144.0 million of amortization of related intangible assets.
For the year ended December 31, 2024, MSRs contributed $123 million to operating income, offset by $138 million of amortization of related intangible assets. For the year ended December 31, 2023, MSRs contributed $84 million to operating income, offset by $144 million of amortization of related intangible assets.
Depreciation and amortization expense decreased mainly due to lower amortization expense compared with 2022, when loan payoffs in our Capital Markets loan servicing business increased amortization. 33 Table of Contents Global Workplace Solutions The following table summarizes our results of operations for our Global Workplace Solutions (GWS) operating segment for the years ended December 31, 2023 and 2022 (dollars in millions): Year Ended December 31, 2023 2022 Revenue: Net revenue: Facilities management $ 5,806 25.8 % $ 5,137 25.9 % Project management 3,124 13.9 % 2,735 13.8 % Total segment net revenue 8,930 39.7 % 7,872 39.7 % Pass through costs also recognized as revenue 13,585 60.3 % 11,979 60.3 % Total segment revenue 22,515 100.0 % 19,851 100.0 % Costs and expenses: Cost of revenue 20,345 90.4 % 17,948 90.4 % Operating, administrative and other 1,242 5.5 % 1,080 5.4 % Depreciation and amortization 262 1.2 % 253 1.3 % Total costs and expenses 21,849 97.1 % 19,281 97.1 % Operating income 666 2.9 % 570 2.9 % Equity income from unconsolidated subsidiaries 1 0.0 % 1 0.0 % Other income 2 0.0 % 7 0.0 % Add-back: Depreciation and amortization 262 1.2 % 253 1.3 % Adjustments: Integration and other costs related to acquisitions 23 0.1 % 40 0.2 % Costs associated with efficiency and cost-reduction initiatives 52 0.3 % 28 0.1 % Segment operating profit and segment operating profit on revenue margin $ 1,006 4.5 % $ 899 4.5 % Segment operating profit on net revenue margin 11.3 % 11.4 % Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenue increased by $2.7 billion, or 13.4%, in 2023, driven by new clients and expansion of services to existing clients, augmented by in-fill acquisitions.
Depreciation and amortization expense decreased 5.9% primarily due to lower amortization of mortgage servicing rights as described above and due to accelerated depreciation expense recorded in the first half of 2023, as part of cost savings initiatives that did not recur this year. 33 Table of Contents Global Workplace Solutions The following table summarizes our results of operations for our Global Workplace Solutions (GWS) operating segment for the years ended December 31, 2024 and 2023 (dollars in millions): Year Ended December 31, 2024 2023 Revenue: Net revenue: Facilities management $ 6,907 27.5 % $ 5,806 25.8 % Project management 3,433 13.7 % 3,124 13.9 % Total segment net revenue 10,340 41.1 % 8,930 39.7 % Pass-through costs also recognized as revenue 14,800 58.9 % 13,585 60.3 % Total segment revenue 25,140 100.0 % 22,515 100.0 % Costs and expenses: Cost of revenue 22,703 90.3 % 20,345 90.4 % Operating, administrative and other 1,327 5.3 % 1,242 5.5 % Depreciation and amortization 332 1.3 % 262 1.2 % Total costs and expenses 24,362 96.9 % 21,849 97.1 % Operating income 778 3.1 % 666 2.9 % Equity (loss) income from unconsolidated subsidiaries (3) 0.0 % 1 0.0 % Other income 3 0.0 % 2 0.0 % Add-back: Depreciation and amortization 332 1.3 % 262 1.2 % Adjustments: Integration and other costs related to acquisitions 17 0.1 % 23 0.1 % Costs associated with efficiency and cost-reduction initiatives 65 0.3 % 52 0.3 % Impact of fair value non-cash adjustments related to unconsolidated equity investments 9 0.0 % — 0.0 % Segment operating profit and segment operating profit on revenue margin $ 1,201 4.8 % $ 1,006 4.5 % Segment operating profit on net revenue margin 11.6 % 11.3 % Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenue increased 11.7% in 2024 as compared to 2023, reflecting a double-digit increase in facilities management, led by the Enterprise and Local business, and growth in project management due to continued strong growth from Turner & Townsend.
This was partially offset by $110.8 million in increased outflow related to acquisitions where cash was paid after 90 days of the acquisition date and net outflows related to our short-term borrowings. 39 Table of Contents Summary of Contractual Obligations and Other Commitments The following is a summary of our various contractual obligations and other commitments as of December 31, 2023 (dollars in millions): Payments Due by Period Contractual Obligations Total Less than 1 year Total gross long-term debt (1) $ 2,855 $ 9 Short-term borrowings (2) 682 682 Operating leases (3) 2,204 239 Financing leases (3) 317 38 Total gross notes payable on real estate (4) 38 8 Deferred purchase consideration (5) 537 268 Total contractual obligations $ 6,633 $ 1,244 Amount of Other Commitments Other Commitments Total Less than 1 year Self-insurance reserves (6) $ 180 $ 180 Tax liabilities (7) 55 24 Co-investments (8) (9) 254 202 Letters of credit (8) 237 237 Guarantees (8) (10) 206 206 Telford’s fire safety remediation provision (11) 192 82 Total other commitments $ 1,124 $ 931 The table above excludes estimated payment obligations for our qualified defined benefit pension plans.
The increased outflow was primarily driven by higher payments of deferred purchase consideration, share repurchase, and taxes on equity awards; partially offset by proceeds from our commercial paper program, net proceeds from the revolver, and lower inflows from fixed term debt financing compared to prior year. 39 Table of Contents Summary of Contractual Obligations and Other Commitments The following is a summary of our various contractual obligations and other commitments as of December 31, 2024 (dollars in millions): Payments Due by Period Contractual Obligations Total Less than 1 year Total gross long-term debt (1) $ 3,320 $ 36 Short-term borrowings (2) 906 906 Operating leases (3) 2,576 199 Financing leases (3) 432 43 Total gross notes payable on real estate (4) 200 100 Deferred purchase consideration (5) 276 207 Total contractual obligations $ 7,710 $ 1,491 Amount of Other Commitments Other Commitments Total Less than 1 year Self-insurance reserves (6) $ 197 $ 197 Tax liabilities (7) 30 30 Co-investments (8) (9) 272 142 Letters of credit (8) 272 272 Guarantees (8) (10) 211 211 Telford’s fire safety remediation provision (11) 204 102 Total other commitments $ 1,186 $ 954 The table above excludes estimated payment obligations for our qualified defined benefit pension plans.
For additional information on all of our long-term debt, see Note 11 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report. Short-Term Borrowings On August 5, 2022, we entered into a new 5-year senior unsecured Revolving Credit Agreement (the Revolving Credit Agreement).
All intercompany balances and transactions between CBRE Group, Inc. and CBRE Services have been eliminated. For additional information on all of our long-term debt, see Note 11 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
The estimated remediation costs for in-scope buildings are subjective, highly complex and dependent on a number of variables outside of Telford Homes’ control.
We recognized additional provision in the year ended December 31, 2024 based on additional information obtained and evaluations performed allowing for a more refined estimate on a building-by-building basis. The estimated remediation costs for in-scope buildings are subjective, highly complex and dependent on a number of variables outside of Telford Homes’ control.
During the year ended December 31, 2023, we repurchased 7,867,348 shares of our Class A common stock with an average price of $82.59 per share using cash on hand for an aggregate of $649.8 million. As of December 31, 2023, we had $1.5 billion of capacity remaining under the 2021 program.
The Board also extended the term of the 2024 program through December 31, 2029. During the year ended December 31, 2024, we repurchased 5,110,624 shares of our Class A common stock with an average price of $126.02 per share using cash on hand for an aggregate of $644 million.
Key inputs to Monte Carlo simulations include stock price, volatility, risk free rate, and dividend yield. 44 Table of Contents Changes in the fair value of equity investments under the fair value option are recorded as equity income from unconsolidated subsidiaries in the Consolidated Statements of Operations.
Changes in the fair value of equity investments under the fair value option are recorded as equity income from unconsolidated subsidiaries in the Consolidated Statements of Operations.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

13 edited+1 added−1 removed6 unchanged
Biggest changeThe following table sets forth our revenue derived from our most significant currencies (dollars in millions): Year Ended December 31, 2023 2022 United States dollar $ 17,470 54.7 % $ 17,470 56.7 % British pound sterling 4,393 13.8 % 4,084 13.2 % Euro 3,003 9.4 % 2,854 9.3 % Canadian dollar 1,195 3.7 % 1,232 4.0 % Australian dollar 867 2.7 % 769 2.5 % Indian rupee 663 2.1 % 534 1.7 % Chinese yuan 516 1.6 % 534 1.7 % Japanese yen 485 1.5 % 407 1.3 % Swiss franc 427 1.3 % 392 1.3 % Singapore dollar 413 1.3 % 354 1.1 % Other currencies (1) 2,517 7.9 % 2,198 7.2 % Total revenue $ 31,949 100.0 % $ 30,828 100.0 % ________________________________________________________________________________________________________________________________________ (1) Approximately 46 currencies comprise 7.9% of our revenue for the year ended December 31, 2023, and approximately 48 currencies comprise 7.2% of our revenue for the year ended December 31, 2022. 48 Table of Contents Although we operate globally, we report our results in U.S. dollars.
Biggest changeThe following table sets forth our revenue derived from our most significant currencies (dollars in millions): Year Ended December 31, 2024 2023 United States dollar $ 20,166 56.4 % $ 17,470 54.7 % British pound sterling 4,968 13.9 % 4,393 13.8 % Euro 3,239 9.1 % 3,003 9.4 % Canadian dollar 1,083 3.0 % 1,195 3.7 % Australian dollar 941 2.6 % 867 2.7 % Indian rupee 756 2.1 % 663 2.1 % Japanese yen 528 1.5 % 485 1.5 % Swiss franc 491 1.4 % 427 1.3 % Chinese yuan 490 1.4 % 516 1.6 % Singapore dollar 430 1.2 % 413 1.3 % Other currencies (1) 2,675 7.4 % 2,517 7.9 % Total revenue $ 35,767 100.0 % $ 31,949 100.0 % ________________________________________________________________________________________________________________________________________ (1) Approximately 46 currencies comprise 7.4% and 7.9% of our revenue for the year ended December 31, 2024 and 2023, respectively. 50 Table of Contents Although we operate globally, we report our results in U.S. dollars.
Our international operations also are subject to, among other things, political instability and changing regulatory environments, which affect the currency markets and which as a result may adversely affect our future financial condition and results of operations.
Our international operations also are subject to, among other things, political instability and changing tax, trade and regulatory environments, which affect the currency markets and which as a result may adversely affect our future financial condition and results of operations.
See Note 7 of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for additional information on fair value methodology used to value the swap at December 31, 2023. We apply FASB ASC (Topic 815), “ Derivatives and Hedging, ” when accounting for derivative financial instruments.
See Note 7 – Fair Value Measurements of the Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report for additional information on fair value methodology used to value the swaps at December 31, 2024. We apply FASB ASC Topic 815, “ Derivatives and Hedging, ” when accounting for derivative financial instruments.
Based on dealers’ quotes, the estimated fair values of our 5.950% senior notes, 4.875% senior notes and 2.500% senior notes were $1.0 billion, $600.2 million and $424.0 million, respectively, at December 31, 2023. We utilize sensitivity analyses to assess the potential effect on our variable rate debt.
Based on dealers’ quotes, the estimated fair values of our 5.950% senior notes, 5.500% senior notes, 4.875% senior notes and 2.500% senior notes were $1.0 billion, $509 million, $600 million and $426 million, respectively, at December 31, 2024. We utilize sensitivity analyses to assess the potential effect on our variable rate debt.
Our Real Estate Investments business has significant euro and British pound denominated assets under management, as well as associated revenue and earnings in Europe. In addition, our Global Workplace Solutions business also derives significant revenue and earnings in foreign currencies, such as the euro and British pound sterling.
Our Real Estate Investments (REI) business segment has significant euro and British pound denominated assets under management (AUM), as well as associated revenue and earnings in Europe. In addition, our Global Workplace Solutions (GWS) business segment derives significant revenue and earnings in foreign currencies, such as the euro and British pound sterling.
As a result, the strengthening or weakening of the U.S. dollar may positively or negatively impact our reported results. A hypothetical 10% adverse change in the value of the U.S. dollar relative to the British pound sterling during the year ended December 31, 2023, would have decreased pre-tax income by $5.4 million.
As a result, the strengthening or weakening of the U.S. dollar may positively or negatively impact our reported results. A hypothetical 10% increase in the value of the U.S. dollar relative to the British pound sterling during the year ended December 31, 2024, would have decreased pre-tax income by $10 million.
Historically, we have entered into interest rate swap agreements to attempt to hedge the variability of future interest payments due to changes in interest rates. As of December 31, 2023, we did not have any outstanding interest rate swap agreements. The estimated fair value of our senior term loans was approximately $746.5 million at December 31, 2023.
We have entered into interest rate swap agreements to attempt to hedge the variability of future interest payments due to changes in interest rates. The estimated fair value of our senior term loans was approximately $708 million at December 31, 2024.
A hypothetical 10% adverse change in the value of the U.S. dollar relative to the euro would have increased pre-tax income by $6.3 million.
A hypothetical 10% increase in the value of the U.S. dollar relative to the euro would have decreased pre-tax income by $9 million.
If interest rates were to increase 100 basis points on our outstanding variable rate debt at December 31, 2023, the net impact of the additional interest cost would be a decrease of $7.6 million on pre-tax income and a decrease of $7.6 million in cash provided by operating activities for the year ended December 31, 2023. 49 Table of Contents
If interest rates were to increase 100 basis points on our outstanding variable rate debt as of December 31, 2024, the net impact of the additional interest cost would be a decrease of $11 million on pre-tax income for the year ended December 31, 2024. 51 Table of Contents
Our businesses could suffer from the effects of rapid changes in and high levels of interest rates, reduced access to debt capital or liquidity constraints, downturns in general macroeconomic conditions, regulatory or financial market uncertainty, or unanticipated disruptions such as public health crises like Covid-19 and geopolitical events like the wars in Ukraine and in the Middle East (or the perception that such disruptions may occur).
Our businesses could suffer from adverse effects of high interest rates, a rapid increase in interest rates, limited access to debt capital or liquidity constraints, downturns in general macroeconomic conditions, regulatory or financial market uncertainty, or unforeseen disruptions such as geopolitical events and public health crisis (or the perception that such disruptions may occur).
During the year ended December 31, 2023, approximately 45.3% of our revenue was transacted in foreign currencies.
During the year ended December 31, 2024, 43.6% of our revenue was transacted in foreign currencies.
Our business has been significantly impacted this year by the sharp appreciation of the U.S. dollar against these and other foreign currencies. Further fluctuations in foreign currency exchange rates may continue to produce corresponding changes in our AUM, revenue and earnings. Our foreign operations expose us to fluctuations in foreign exchange rates.
Fluctuations in foreign currency exchange rates may continue to produce corresponding changes in our AUM, revenue and earnings. Our foreign operations expose us to fluctuations in foreign exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional (reporting) currency, which is the U.S. dollar.
In July 2023, we entered into a cross currency swap to effectively hedge the foreign currency exposure related to our new U.S. denominated term loan entered into by a euro functional entity.
As of December 31, 2024, we had seven outstanding cross-currency swaps to effectively hedge foreign currency exposure related to certain foreign subsidiaries and a U.S. dollar denominated term loan entered into by a euro functional entity.
Removed
These fluctuations may impact the value of our cash receipts and payments in terms of our functional (reporting) currency, which is the U.S. dollar. On July 10, 2023, we entered into a cross currency swap to effectively hedge the foreign currency exposure related to our new euro-denominated term loan that was executed on that date.
Added
During 2024, we entered into four cross-currency swaps with a total USD notional value of $875 million to effectively hedge the foreign currency exposure related to certain Euro denominated entities and two cross-currency swaps with a total USD notional value of $165 million to effectively hedge the foreign currency exposure related to certain Japanese Yen denominated entities.

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