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CBRE: P R E S S R E L E A S E Corporate Headquarters

The following excerpt is from the company's SEC filing.

400 South Hope Street

Floor

Los Angeles, CA 90071

www.cbre.com

FOR IMMEDIATE RELEASE

For further information:

Steve Iaco

Senior Managing Director

Investor Relations & Corporate Communications

212.984.6535

CBRE GROUP, INC. REPORTS ROBUST REVENUE AND

EARNINGS GROWTH FOR THE THIRD

QUARTER OF 2015

Fee Revenue up 14% (21% in local currency)

Normalized EBITDA

up 18% (24% in local currency)

Adjusted Earnings Per Share up 28% to $0.51

Company Increases Expected 2016 Adjusted EPS Accretion

Fr om Global Workplace Solutions Acquisition

Los Angeles, CA October 27, 2015 CBRE Group, Inc. (NYSE:CBG) today reported robust revenue and earnings growth for the third quarter ended September 30, 2015.

Third-Quarter 2015 Results*

Revenue for the quarter totaled $2.7 billion, an increase of 19% (26% in local currency

). Fee revenue

increased 14% (21% in local currency) to $1.9 billion. The third quarter of 2015 included approximately $237 million of revenue from the acquisition of the Global Workplace Solutions business from Johnson Controls, which was completed on September 1, 2015. Excluding the acquired Global Workplace Solutions business, revenue and fee revenue were both up 9% (16% in local currency).

On a U.S. GAAP basis, net income rose 39% to $149.1 million. GAAP earnings per diluted share rose 38% to $0.44.

Adjusted net income

rose 30% to $171.7 million, while adjusted earnings per share

improved 28% to $0.51. For the third quarter of 2015, adjustments totaled $22.6 million, which included integration and other costs associated with the Global Workplace Solutions acquisition.

increased 18% to $344.6 million and EBITDA

rose 12% to $326.6 million. Normalized EBITDA margin on fee revenue was 17.8%, approximately a 60 basis point increase from the prior-year third quarter.

*All percentage changes versus prior-year periods are in U.S. dollars except where noted.

CBRE Press Release

Foreign currency movement, including the marking of currency hedges to market, reduced EBITDA by approximately $16.9 million (or $0.03 per share, net of tax) as compared to the prior-year third quarter.

Management Commentary

The third quarter was an eventful period for CBRE, said Bob Sulentic, the companys president and chief executive officer. We continued to post double-digit growth on the top- and bottom-lines with broad-based strength in our business around the world. While doing this, we completed our largest acquisition in nearly a decade the Global Workplace Solutions business from Johnson Controls. We also continued to make gains through investments in initiatives that help us to deliver great client outcomes and drive growth.

CBREs three regional businesses each achieved sizeable increases in revenue despite the impact of foreign currency translation, which tempered growth rates outside the U.S. Growth was particularly notable in EMEA (Europe, the Middle East & Africa), where revenue surged 28% (42% in local currency). This increase was fueled by healthy gains across the region, including France, Germany, the Netherlands, Spain, Switzerland and the United Kingdom. Asia Pacific produced 12% revenue growth (29% in local currency) led by Australia, Greater China and India. In the Americas, CBREs largest business segment, revenue grew by double digits 17% (19% in local currency).

Amid strong capital flows into commercial real estate, CBREs capital markets businesses continued to perform exceptionally well. Property sales rose significantly across all regions with global revenue up 11% (19% in local currency), and commercial mortgage services, which is predominately an Americas business, saw revenue improve 32% (33% in local currency).

Global leasing also remained strong, although weak foreign currencies restrained growth. In local currency, leasing revenue rose 12% with strong growth in Australia, France, Greater China and India. When translated into US dollars, the global leasing revenue growth rate was 6%. The growth rate in the United States slowed modestly but remained strong at 9%.

Occupier outsourcing revenue (excluding related transaction revenue, which is accounted for in sales and leasing revenue), improved 42% (49% in local currency), while fee revenue (excluding related transaction revenue) increased 45% (53% in local currency). The increases included a one-month contribution from the acquired Global Workplace Solutions business. Excluding the acquired Global Workplace Solutions business, outsourcing revenue (excluding related transaction revenue) rose 8% (15% in local currency) and fee revenue increased 6% (14% in local currency).

Valuation revenue rose 4% (14% in local currency), which reflected higher volumes of appraisal and consulting assignments.

Investment Management also performed well in the quarter, with a 9% (19% in local currency) increase in revenue and a 48% rise in normalized EBITDA.

Global Workplace Solutions Acquisition Update

The integration of the Global Workplace Solutions business is proceeding well. CBRE now expects:

An increase to high-single digits from mid-single digits in the percentage accretion to 2016 adjusted earnings per share from the acquired business.

A $0.03 to $0.04 contribution to adjusted earnings per share for the last four months of 2015. The calendar-year fourth quarter has typically been a seasonally slower period for the acquired Global Workplace Solutions business due to its fiscal year previously ending September 30th. As a result, the accretion for the last four months of 2015 is not indicative of the expected higher run-rate contribution in 2016.

Third-Quarter 2015 Segment Results

Americas Region

(U.S., Canada and Latin America)

Revenue rose 17% (19% in local currency) to $1.6 billion. Fee revenue rose 16% (18% in local currency) to $1.1 billion. Excluding the acquired Global Workplace Solutions business, revenue was up 11% (13% in local currency).

Normalized EBITDA increased 16% to $218.1 million and EBITDA increased 9% to $203.6 million.

Operating income rose 10% to $150.3 million.

EMEA Region

(primarily Europe)

Revenue improved 28% (42% in local currency) to $737.9 million. Fee revenue rose 16% (29% in local currency) to $458.0 million. Revenue growth was broad-based across the region with strong increases even after the negative effects of currency movement. Excluding the acquired Global Workplace Solutions business, revenue was up 7% (20% in local currency).

Normalized EBITDA increased 51% to $56.7 million and EBITDA increased 49% to $55.8 million.

Operating income increased 96% to $39.6 million.

Asia Pacific Region

(Asia, Australia and New Zealand)

Revenue increased 12% (29% in local currency) to $285.3 million. Fee revenue rose 5% (22% in local currency) to $215.3 million. Excluding the acquired Global Workplace Solutions business, revenue was up 2% (18% in local currency).

Normalized EBITDA increased 28% to $29.2 million and EBITDA increased 22% to $27.7 million.

Operating income increased 29% to $24.0 million.

Global Investment Management

(investment management operations in the U.S., Europe and Asia Pacific)

Revenue rose 9% (19% in local currency) to $114.1 million, primarily driven by higher carried interest tied to significant property disposition activity.

Normalized EBITDA increased 48% to $30.2 million and EBITDA increased 37% to $29.0 million.

Operating income increased 53% to $24.2 million.

Assets Under Management (AUM) totaled $86.0 billion. Compared with the third quarter of 2014, AUM was up $1.6 billion in local currency, but down when converted into U.S. dollars.

Development Services

(real estate development and investment activities primarily in the U.S.)

Revenue increased 17% to $18.6 million.

EBITDA decreased to $10.5 million.

Operating income improved more than 130% to $2.0 million.

Development projects in process totaled $6.7 billion, up $1.3 billion from the end of 2014. The pipeline inventory totaled $4.0 billion, unchanged from year-end 2014, as projects have been converted from pipeline to in-process.

Nine-Month Results

Revenue for the nine months ended September 30, 2015 totaled $7.2 billion, an increase of 14% (21% in local currency). Fee revenue increased 12% (19% in local currency) to $5.2 billion. Excluding the acquired Global Workplace Solutions business, both revenue and fee revenue increased 10% (17% in local currency).

On a U.S. GAAP basis, net income rose 31% to $367.1 million. GAAP earnings per diluted share rose 30% to $1.09.

Adjusted net income rose 25% to $417.7 million, while adjusted earnings per share improved 24% to $1.24. For the nine months ended September 30, 2015, adjustments totaled $50.6 million, which included integration and other costs associated with the Global Workplace Solutions acquisition.

Normalized EBITDA increased 19% to $895.1 million and EBITDA rose 16% to $869.7 million.

Foreign currency movement, including the marking of currency hedges to market, reduced EBITDA by approximately $31.0 million (or $0.06 per share, net of tax) as compared to the prior-year nine month period. Without currency effects, adjusted earnings per share would have increased 30%.

Business Outlook

As we enter the fourth quarter, 2015 is clearly emerging as another exceptional year for CBRE, Mr. Sulentic said. The actions we have taken to upgrade our talent base, enhance our service offering, materially strengthen our operating platform, particularly data and technology, and fortify our financial position are yielding strong results for our clients...


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