CBRE Group · 10-Q · Item 2 MD&A

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the

reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that

may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the

three and six months ended June 30, 2026 should be read in conjunction with our consolidated financial statements and related

notes included in our 2025 Annual Report on Form 10-K (2025 Annual Report) as well as the unaudited financial statements

included elsewhere in this Quarterly Report.

In addition, the statements and assumptions in this Quarterly Report that are not statements of historical fact are

forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities

Exchange Act of 1934, each as amended, including, in particular, statements about our plans, strategies and prospects as well as

estimates of industry growth for the next quarter and beyond. For important information regarding these forward-looking

statements, please see the discussion below under the caption “Cautionary Note on Forward-Looking Statements.”

Beginning with first-quarter 2026 results, we reclassified amortization associated with MSRs (mortgage servicing

rights) to net against the related revenue (commercial mortgage origination). Historically, we have recognized the

corresponding MSR intangible asset as an amortization expense over the estimated mortgage service period. Prior year amounts

have been reclassified to conform with the 2026 presentation.

Business Environment

T1The strong recovery of the commercial real estate market continued in the first half of 2026. This is reflected in

increased property leasing and sales activity, particularly in the U.S. Leasing activity in the U.S. remained strong across all

property types, led by industrial and office, while global activity continued to strengthen in international markets as well.

During the second quarter, investment sales activity improved significantly in the U.S., while growth was more modest in

overseas markets. Investment activity has been supported by broad capital availability, improved occupancy market

fundamentals and narrower bid-ask spreads. Large occupiers’ growing appetite for outsourcing services continued to underpin

demand for facilities management and project management activities, while T2the outsized growth of Artificial Intelligence

investments and data center buildouts has fueled continued strong demand for critical infrastructure services. T3Through the first

half of 2026, the ongoing Middle East conflict has had limited impact on CBRE’s business except for a slowdown in

fundraising from capital sources based in the region.

Capital Allocation

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Results of Operations

The following table sets forth items derived from our consolidated statements of operations for the three and six

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Revenue:

Facilities management

Property management

Critical infrastructure

Project management

Advisory leasing

Valuation

Loan servicing

Other portfolio services

Capital markets:

Advisory sales

Commercial mortgage origination

Investment management

Development services

Corporate, other and eliminations

(4)

(7)

Total revenue

Costs and expenses:

Pass-through costs (2)

Cost of revenue, excluding pass-through costs

Operating, administrative and other

Depreciation and amortization

Total costs and expenses

Gain on disposition of real estate

5

Operating income

Equity income (loss) from unconsolidated subsidiaries

4

(5)

(2)

—%

Other income

6

6

7

Interest expense, net of interest income

Write-off of financing costs on extinguished debt

—

2

—

2

Income before provision for income taxes

Provision for income taxes

Net income

Less: Net income attributable to non-controlling interests

Net income attributable to CBRE Group, Inc.

Core EBITDA

________________________________________________________________________________________________________________________________________

(1)Calculated as a percentage of total revenue.

(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are

reimbursable by clients and the corresponding amounts owed are reflected within Revenue.

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Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

We reported consolidated net income of $204 million for the quarter, on revenue of $11.2 billion as compared to

consolidated net income of $215 million on revenue of $9.7 billion in the prior year.

Revenue increased 15.5% reflecting double-digit growth across the Advisory Services, Building Operations &

Experience (BOE) and Project Management segments, partially offset by a decrease in revenue in the Real Estate Investments

(REI) segment.

Foreign currency translation had a 1.2% positive impact on revenue, reflecting strength in the euro, Australian dollar

and British pound sterling partially offset by weakness in the Indian rupee.

Pass-through costs increased 13.1% during the quarter as compared to the same period in prior year primarily due to

revenue growth in the BOE and Project Management segments. Foreign currency translation had a 1.1% negative impact on

pass-through costs.

T5Cost of revenue, excluding pass-through costs increased 17.1% during the quarter as compared to the same period in

prior year primarily reflecting business growth and higher employee compensation and commission expenses. Foreign currency

translation had a 1.3% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-

through costs increased to 40.2% of total revenue from 39.7% driven by higher costs to support growth in revenues.

Operating, administrative and other expenses increased 20.5% during the quarter as compared to the same period in

prior year. The increase was primarily due to an increase in the provision related to fire safety remediation efforts for buildings

historically developed by our subsidiary, Telford Homes (see Note 17 – Telford Fire Safety Remediation). In addition,

operating, administrative and other expenses increased due to higher employee compensation expense, driven by business

growth. Foreign currency translation had a 1.3% negative impact on total operating expenses during the quarter. Operating,

administrative and other expenses as a percentage of revenue increased to 13.7% in the second quarter 2026 from 13.1% in the

second quarter 2025, as operating expenses grew higher than revenue.

Depreciation and amortization expense increased by 31.0% during the quarter, as compared to the same period in prior

year, reflecting higher amortization expense related to intangible assets from recent acquisitions, such as Pearce.

Gain on disposition of real estate decreased by $14 million during the quarter, driven by lower sales of real estate

development assets in the REI segment, compared to the prior year.

We recorded equity income from unconsolidated subsidiaries of approximately $4 million, compared to equity loss of

Interest expense, net of interest income, increased by 1.7%, compared with the second quarter 2025. This increase was

primarily attributable to increased commercial paper borrowings and the issuance of $750 million in senior notes, offset by the

impact of net investment hedging activity.

Our provision for income taxes on a consolidated basis was $68 million for the three months ended June 30, 2026 as

compared to a provision for income taxes of $61 million for the three months ended June 30, 2025. The increase of $7 million

is primarily related to an increase in earnings. Our effective tax rate increased to 21.6% for the three months ended June 30,

2026 from 20.3% for the three months ended June 30, 2025. Our effective tax rate for the three months ended June 30, 2026 is

different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and permanent book tax

differences.

Legislative Developments

The Organization for Economic Co-operation & Development (OECD) Pillar Two Model Rules established a

minimum global effective tax rate of 15% on country-by-country profits of large multinational companies. European Union

member states along with many other countries adopted or expect to adopt the OECD Pillar Two Model effective January 1,

2024 or thereafter. In January 2026, the OECD issued a comprehensive Side by Side Package, which introduces additional

administrative guidance intended to enhance coordination and simplify aspects of the global minimum tax framework. The

package includes several new safe harbors including the new Side by Side and Ultimate Parent Entity safe harbors that may

deem certain top-up taxes to be zero in jurisdictions with qualifying minimum tax regimes, such as the United States. We will

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continue to monitor additional administrative guidance and legislative action to incorporate the guidance into local law to assess

the global impact of the Pillar Two Model Rules. The impact of Pillar Two top-up taxes is expected to be insignificant for 2026.

On July 4, 2025, the U.S. federal government enacted, H.R.1, the One Big Beautiful Bill Act (OBBBA), a budget

reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from

the Tax Cuts and Jobs Act of 2017. The 2026 impacts of the OBBBA are insignificant based on our current operations.

We reported consolidated net income of $522 million for the six months ended June 30, 2026 on revenue of

$21.8 billion as compared to consolidated net income of $378 million on revenue of $18.6 billion for the six months ended

Revenue increased 17.0%, reflecting double-digit growth across the Advisory Services, BOE and Project Management

segments, partially offset by a decrease in revenue in the REI segment.

Foreign currency translation had a 2.6% positive impact on total revenue during the six months ended June 30, 2026,

primarily driven by strength in the euro and British pound sterling, partially offset by weakness in the Indian rupee.

Pass-through costs increased 15.1% during the six months ended June 30, 2026 as compared to the same period in

2025 primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a 2.6%

negative impact on pass-through costs.

Cost of revenue, excluding pass-through costs increased 19.4% during the six months ended June 30, 2026 as

compared to the same period in 2025 reflecting business growth and higher employee compensation and commission expenses.

Foreign currency translation had a 2.6% negative impact on total cost of revenue, excluding pass-through costs. Cost of

revenue, excluding pass-through costs increased to 40.2% of total revenue from 39.4%.

Operating, administrative and other expenses increased 21.4% during the six months ended June 30, 2026 as compared

to the same period last year primarily due to an increase in the provision related to fire safety remediation efforts for buildings

historically developed by our subsidiary, Telford Homes (see Note 17 – Telford Fire Safety Remediation). In addition,

operating, administrative and other expenses increased due to higher employee compensation expense, driven by business

growth. Foreign currency translation had a 2.6% negative impact on total operating expenses during the six months ended

June 30, 2026. Operating, administrative and other expenses as a percentage of revenue increased to 13.8% from 13.3%, as

operating expenses grew higher than revenue.

Depreciation and amortization expense increased by 29.6% during the six months ended June 30, 2026 as compared to

the same period in 2025, reflecting higher depreciation and amortization expense related to assets acquired from recent

acquisitions, such as Pearce.

Gain on disposition of real estate increased by $287 million during the six months ended June 30, 2026, driven by

monetization of real estate development assets the REI segment.

We reported equity loss of $5 million during the six months ended June 30, 2026 primarily driven by fair value

adjustments related to our equity investments, compared to equity loss of $2 million in the same period in 2025.

Interest expense, net of interest income, increased by 9.2% for the six months ended June 30, 2026, compared to the

same period in 2025. This increase was primarily attributable to increased commercial paper borrowings and the issuance of

$750 million in senior notes, offset by the impact of net investment hedging activity.

Our provision for income taxes on a consolidated basis was $180 million for the six months ended June 30, 2026 as

compared to a provision for income taxes of $113 million in 2025. The increase of $67 million is primarily related to an

increase in current year earnings. Our effective tax rate increased to 23.4% in six months ended June 30, 2026 as compared to

20.8% in 2025. Our effective tax rate for the six months ended June 30, 2026 is different than the U.S. federal statutory tax rate

of 21.0% primarily due to the U.S. state taxes and permanent book tax differences.

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Segment Operations

We organize our operations around, and publicly report our financial results for, four reportable business segments: (1)

Advisory Services; (2) BOE; (3) Project Management; and (4) REI.

Advisory Services provides a comprehensive range of services globally, including leasing, capital markets (property

sales and mortgage origination), loan servicing, and valuation. BOE provides a broad suite of integrated, contractually based

outsourcing services to occupiers and owners of real estate, including facilities management, property management and critical

infrastructure. Our Project Management business delivers program management and cost consultancy services across

commercial real estate, infrastructure and natural resources sectors. REI is a major real assets developer, investor and operator

and is comprised of two businesses: investment management and development services.

We also have a Corporate and Other segment. Corporate primarily consists of corporate overhead costs, and costs

associated with our platform that are not allocated to segments, including corporate leadership costs. Other consists of activities

from strategic non-core, non-controlling equity investments and is considered an operating segment but does not meet the

aggregation criteria for presentation as a separate reportable segment and is, therefore, combined with Corporate and reported

within Corporate and Other. It also includes eliminations related to inter-segment revenue. For additional information on our

segments, see Note 16 – Segments of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this

Quarterly Report.

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Advisory Services

The following table summarizes our results of operations for our Advisory Services operating segment for the three

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Revenue:

Advisory leasing

Valuation

Loan servicing

Other portfolio services

Capital markets:

Advisory sales

Commercial mortgage origination

Total segment revenue

Costs and expenses:

Pass-through costs (2)

8

Cost of revenue, excluding pass-through costs

Operating, administrative and other

Depreciation and amortization

Total costs and expenses

Operating income

Equity loss from unconsolidated subsidiaries

(2)

(1)

(3)

—

Other income

—

2

1

3

Add-back: Depreciation and amortization

Adjustments:

Net non-cash mortgage servicing rights

4

Impact of fair value non-cash adjustments related to

unconsolidated equity investments

—

2

—

2

Business and finance transformation

4

—

6

—

Costs associated with efficiency and cost-reduction

initiatives

—

—

(5)

—

Segment operating profit

________________________________________________________________________________________________________________________________________

(1)Calculated as a percentage of total segment revenue.

(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are

reimbursable by clients and the corresponding amounts owed are reflected within Revenue.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Revenue increased 17.7% during the quarter compared to the same period in 2025. Global leasing revenue rose 23.5%,

led by office and industrial. The Americas grew 23.7%, with 23.5% growth in the United States; Europe, Middle East and

Africa (EMEA); which grew 26.5% and Asia Pacific (APAC) which grew 18.9%. Property sales revenue grew 20.0%, driven

primarily by growth in the U.S. across industrial, multifamily, retail and office, with Asia Pacific and EMEA also contributing

to growth in the period.

Foreign currency translation had a 0.9% positive impact on total revenue during the quarter, primarily driven by

strength in the Australian dollar and euro partially offset by weakness in the Japanese yen and Indian rupee.

Cost of revenue, excluding pass-through costs increased 18.0%, primarily reflecting business growth and higher

commission expense, salaries and bonus. Foreign currency translation had a 1.0% negative impact on total cost of revenue,

excluding pass-through costs.

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Operating, administrative and other expenses increased by 10.8%, as compared to the same period in 2025, primarily

due to higher employee compensation and bonus, and higher business promotion and advertising expense, driven by growth in

the business. Foreign currency translation had a 1.3% negative impact on total operating expenses.

For the three months ended June 30, 2026, gross income from mortgage servicing rights (MSR) was $27 million,

offset by $38 million of amortization of related intangible assets, resulting in a net reduction to commercial mortgage

origination revenue of $11 million. For the three months ended June 30, 2025, the comparable amounts were $33 million and

$37 million, respectively, resulting in a net reduction of $4 million. T6The increased net reduction reflects lower origination gains,

as recent originations have shifted to shorter loan terms in a higher rate environment, with amortization remaining elevated on

the servicing book established during the prior low-rate period.

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 MSR on the date the loans are sold. 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. Subsequent to the initial

recording, MSRs are amortized in proportion to and over the period that the servicing income is expected to be received based

on projections and timing of estimated future net cash flows and assessed for impairment based on the fair value each reporting

period. During the first quarter of 2026, we began reclassifying amortization associated with MSRs to net against the related

revenue (commercial mortgage origination). Historically, the corresponding MSR intangible assets were amortized through

amortization expense over the estimated mortgage service period. Prior year amounts have been reclassified to conform with

the fiscal 2026 presentation.

Revenue increased 19.7% for the six months ended June 30, 2026 as compared to the same period in 2025. Property

sales revenue increased 29.9%, led by industrial, multifamily, retail and office in the U.S. and APAC. Global leasing revenue

rose 21.9%, led by office, industrial and data centers leasing driven by Americas including 22.2% in the United States, EMEA

which grew 21.9% and APAC which grew 20.6%.

Foreign currency translation had a 1.8% positive impact on total revenue during the six months ended June 30, 2026,

primarily driven by strength in the euro and Australian dollar, partially offset by weakness in the Japanese yen and Indian

rupee.

Cost of revenue, excluding pass-through costs increased 20.6%, primarily reflecting business growth and higher

commission expense, salaries and bonus. Foreign currency translation had a 1.8% negative impact on total cost of revenue,

excluding pass-through costs.

Operating, administrative and other expenses increased by 10.2% for the six months ended June 30, 2026 as compared

to the same period in 2025, primarily due to higher employee compensation and bonus and higher business promotion and

advertising expense, driven by growth in the business. Foreign currency translation had a 2.7% negative impact on total

operating expenses.

For the six months ended June 30, 2026, gross income from MSRs was $53 million, offset by $76 million of

amortization of related intangible assets resulting in a net reduction to commercial mortgage origination revenue of $23 million.

For the six months ended June 30, 2025, the comparable amounts were $55 million and $72 million, respectively, resulting in a

net reduction of $17 million. The increased net reduction reflects lower origination gains, as recent originations have shifted to

shorter loan terms in a higher rate environment, with amortization remaining elevated on the servicing book established during

the prior low-rate period.

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Building Operations & Experience

The following table summarizes our results of operations for our BOE operating segment for the three and six months

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Revenue:

Facilities management

Property management

Critical infrastructure

Total segment revenue

Costs and expenses:

Pass-through costs (2)

Cost of revenue, excluding pass-through costs

Operating, administrative and other

Depreciation and amortization

Total costs and expenses

Operating income

Equity loss from unconsolidated subsidiaries

(2)

—

Other income

5

3

4

Add-back: Depreciation and amortization

Adjustments:

Integration and other costs related to acquisitions

3

Net results related to the wind-down of certain

businesses (3)

5

—

6

—

Business and finance transformation

—

—

Segment operating profit

________________________________________________________________________________________________________________________________________

(1)Calculated as a percentage of total segment revenue.

(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are

reimbursable by clients and the corresponding amounts owed are reflected within Revenue.

(3)Management made the decision to wind down certain businesses within the BOE Segment.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Revenue increased 14.6%, primarily driven by strong growth in critical infrastructure and facilities management.

Critical infrastructure reflected expansion of CBRE’s work for data centers, as well as contribution from the recent Pearce

acquisition. Facilities management was once again driven by strong growth in our local facilities management business, notably

in the Americas. Enterprise facilities management revenue growth was led by strong activity across the technology, media and

telecom sectors. Foreign currency translation had a 1.4% positive impact on total revenue during the quarter, primarily driven

by strength in the euro partially offset by weakness in the Indian rupee.

Pass-through costs increased 10.9% during the quarter as compared to the same period in 2025 primarily due to

revenue growth in the BOE segment. Foreign currency translation had a 1.3% negative impact on pass-through costs.

Cost of revenue, excluding pass-through costs increased 19.3%, driven primarily by professional compensation costs

associated with revenue growth. Foreign currency translation had a 1.6% negative impact on total cost of revenue, excluding

pass-through costs. Cost of revenue, excluding pass-through costs was 36.8% of total revenue, and increased compared to

Operating, administrative and other expenses increased 11.1%, primarily due to higher employee compensation.

Foreign currency translation had a 1.5% negative impact on total operating expenses during the quarter.

Depreciation and amortization expense increased 77.0%, reflecting higher amortization expense related to intangible

assets from recent acquisitions, such as Pearce.

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Revenue increased 17.4% for the six months ended June 30, 2026 as compared to the same period in 2025, reflecting

double-digit growth in critical infrastructure, facilities management and property management, primarily due to growth in new

client wins driving increased management fees and reimbursements as well as the impact from recent acquisitions. Foreign

currency translation had a 2.8% positive impact on total revenue, primarily driven by strength in the euro and British pound

sterling, and partially offset by weakness in the Indian rupee.

Pass-through costs increased 14.6% during the six months ended June 30, 2026 as compared to the same period in

2025 primarily due to revenue growth in the BOE segment. Foreign currency translation had a 2.8% negative impact on pass-

through costs.

Cost of revenue, excluding pass-through costs increased 21.3%, driven primarily by professional compensation costs

associated with revenue growth. Foreign currency translation had a 2.8% negative impact on total cost of revenue, excluding

pass-through costs. Cost of revenue, excluding pass-through costs was 36.7% of total revenue, an increase from 35.5% for the

Operating, administrative and other expenses increased 17.9%, primarily due to higher employee compensation.

Foreign currency translation had a 2.8% negative impact on total operating expenses during the six months ended June 30,

Depreciation and amortization expense increased 64.1%, reflecting higher expenses related to intangible assets from

recent acquisitions, such as Pearce.

Project Management

The following table summarizes our results of operations for our Project Management operating segment for the three

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Segment revenue

Costs and expenses:

Pass-through costs (2)

Cost of revenue, excluding pass-through costs

Operating, administrative and other

Depreciation and amortization

Total costs and expenses

Operating income

Other income

1

1

1

1

Add-back: Depreciation and amortization

Adjustments:

Integration and other costs related to acquisitions

1

2

3

9

Segment operating profit

________________________________________________________________________________________________________________________________________

(1)Calculated as a percentage of total segment revenue.

(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are

reimbursable by clients and the corresponding amounts owed are reflected within Revenue.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Revenue increased 19.1% due to strong infrastructure activity in the United Kingdom, Europe and the Middle East, as

well as strong gains in real estate projects in North America and Asia. Foreign currency translation had a 1.1% positive impact

on total revenue during the quarter, primarily driven by strength in the euro, Australian dollar and British pound sterling

partially offset by weakness in Indian rupee.

Pass-through costs increased 22.2% during the quarter as compared to the same period in 2025 primarily due to

increased client programs. Foreign currency translation had a 0.6% negative impact on pass-through costs.

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Cost of revenue, excluding pass-through costs increased 13.8%, driven by increased professional compensation and

third party spend. Foreign currency translation had a 1.5% negative impact on total cost of revenue, excluding pass-through

costs. Cost of revenue, excluding pass-through costs was 33.5% of total revenue, and down from 35.1% in the second quarter

Operating, administrative and other expenses increased 13.6%, primarily due to higher employee compensation related

expenses. Foreign currency translation had a 3.4% negative impact on total operating expenses during the quarter.

Revenue increased 17.3% for the six months ended June 30, 2026, led by strong business activity in the United

Kingdom, Europe, Asia, North America and the Middle East, as well as increased revenue from pass-through costs. Foreign

currency translation had a 2.7% positive impact on total revenue, primarily driven by strength in the British pound sterling and

euro, and partially offset by weakness in the Indian rupee.

Pass-through costs increased 17.3% during the six months ended June 30, 2026 as compared to the same period in

2025 primarily due to increased client programs. Foreign currency translation had a 1.8% negative impact on pass-through

costs.

Cost of revenue, excluding pass-through costs increased 16.3%, driven by increased professional compensation, third

party spend and higher reimbursable expenses. Foreign currency translation had a 3.5% negative impact on total cost of

revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs was 34.4% of total revenue and slightly

Operating, administrative and other expenses increased 12.0%, primarily due to higher employee compensation related

expenses and higher office management and administrative salaries. Foreign currency translation had a 3.4% negative impact

on total operating expenses during the six months ended June 30, 2026.

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Real Estate Investments

The following table summarizes our results of operations for our REI operating segment for the three and six months

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Revenue:

Investment management

Development services

Total segment revenue

Costs and expenses:

Cost of revenue

Operating, administrative and other

Depreciation and amortization

9

3

6

Total costs and expenses

Gain on disposition of real estate

5

Operating (loss) income

Equity income (loss) from unconsolidated subsidiaries

8

(2)

1

(9)

Add-back: Depreciation and amortization

9

3

6

Adjustments:

Carried interest incentive compensation (reversal)

expense to align with the timing of associated revenue

3

7

Net results related to the wind-down of certain

businesses (2)

5

8

Costs associated with efficiency and cost-reduction

initiatives

—

(1)

—

1

Provision associated with Telford’s fire safety

remediation efforts

—

—

Segment operating profit

________________________________________________________________________________________________________________________________________

(1)Calculated as a percentage of total segment revenue.

(2)Management made the decision to wind down the legacy Telford Homes’ construction self-delivery business.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

T7Revenue decreased 10.2% for the current quarter primarily due to lower fees from development services, partially

offset by increased investment management revenue. Foreign currency translation had a 1.4% positive impact on total revenue

during the quarter primarily driven by strength in the euro and British pound sterling.

Cost of revenue decreased 57.1% in the quarter as compared to the same period in 2025 due to lower construction

management costs incurred on our real estate development projects. Foreign currency translation had a negligible impact on

total cost of revenue during the quarter.

Operating, administrative and other expenses increased 70.9% primarily due to an increase in the provision related to

fire safety remediation efforts for buildings historically developed by our subsidiary, Telford Homes (see Note 17 – Telford

Fire Safety Remediation). This was partially offset by a decrease in total compensation in our investment management and

development services lines of business. Foreign currency translation had a 0.5% negative impact on total operating expenses.

Gain on disposition of real estate decreased by $14 million compared with second quarter 2025, driven by lower

monetization of real estate development assets in the current period versus higher sales in the prior year quarter.

We recorded equity income from unconsolidated subsidiaries of approximately $8 million versus equity loss of

$2 million during the same period in 2025 primarily due to higher sales in the current period.

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Below is a rollforward of our assets under management (AUM) by product type for the three months ended June 30,

2026 (dollars in billions):

Funds

Separate Accounts

Securities

Total

Inflows

Outflows

Market (depreciation) appreciation

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. 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. Our assets under management

consist of:

•the total fair market value of the real estate properties and other assets either wholly-owned or held by joint

ventures and other entities in which our sponsored funds or investment vehicles and client accounts have invested

or to which they have provided financing. Committed (but unfunded) capital from investors in our sponsored

funds is not included in this component of our AUM. The value of development properties is included at estimated

completion cost. In the case of real estate operating companies, the total value of real properties controlled by the

companies, generally through joint ventures, is included in AUM; and

•the net asset value of our managed securities portfolios, including investments (which may be comprised of

committed but uncalled capital) in private real estate funds under our fund of funds investments.

Our calculation of AUM may differ from the calculations of other asset managers, and as a result, this measure may

not be comparable to similar measures presented by other asset managers.

Revenue decreased 12.5% for the six months ended June 30, 2026 primarily due to due to lower management and

development fees from development services. Foreign currency translation had a 2.9% positive impact on total revenue during

the six months ended June 30, 2026, primarily driven by strength in the euro and British pound sterling.

Cost of revenue decreased 50.0% for the six months ended June 30, 2026 as compared to the same period in 2025 due

to lower construction management costs incurred on our real estate development projects. Foreign currency translation had a

2.4% negative impact on total cost of revenue during the six months ended June 30, 2026.

Operating, administrative and other expenses increased 71.8%, primarily due to an increase in the provision related to

fire safety remediation efforts for buildings historically developed by our subsidiary, Telford Homes (see Note 17 – Telford

Fire Safety Remediation) and an increase in total compensation in our development services lines of business resulting from an

increase in development sales during the six months ended June 30, 2026. Foreign currency translation had a 2.9% negative

impact on total operating expenses.

Gain on disposition of real estate increased by $267 million compared to the same period in 2025 driven by higher

monetization of real estate development assets in 2026.

We recorded equity income from unconsolidated subsidiaries of approximately $1 million primarily due to sales in the

current year. We recorded equity loss of $9 million during the same period in 2025 due to negative co-investment returns.

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Below is a rollforward of our assets under management (AUM) by product type for the six months ended June 30,

2026 (dollars in billions):

Funds

Separate Accounts

Securities

Total

Inflows

Outflows

Market (depreciation) appreciation

We describe above how we calculate AUM. Also, as noted above, our calculation of AUM may differ from the

calculations of other asset managers, and as a result, this measure may not be comparable to similar measures presented by

other asset managers.

Corporate and Other

Our Corporate segment primarily consists of corporate overhead costs. Other consists of activities from strategic non-

core non-controlling equity investments and is considered an operating segment but does not meet the aggregation criteria for

presentation as a separate reportable segment and is, therefore, combined with our core Corporate function and reported as

Corporate and other. The following table summarizes our results of operations for our core Corporate and other segment for the

three and six months ended June 30, 2026 and 2025 (dollars in millions):

Three Months Ended June 30, (1)

Six Months Ended June 30, (1)

Elimination of inter-segment revenue

$(4)

$(7)

Costs and expenses:

Cost of revenue (2)

(2)

5

(4)

1

Operating, administrative and other

Depreciation and amortization

Total costs and expenses

Gain on disposition of real estate (2)

—

—

—

Operating loss

Equity income (loss) from unconsolidated subsidiaries

—

2

(3)

Other loss

—

—

(1)

(1)

Add-back: Depreciation and amortization

Adjustments:

Integration and other costs related to acquisitions

Charges related to indirect tax audits and settlements

—

—

—

(1)

Business and finance transformation

Costs associated with efficiency and cost-reduction initiatives

9

1

Segment operating loss

________________________________________________________________________________________________________________________________________

(1)Percentage of revenue calculations are not meaningful and therefore not included.

(2)Primarily relates to inter-segment eliminations.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Core Corporate

Operating, administrative and other expenses for our core corporate functions rose 16.4% to $206 million for the

second quarter of 2026, mainly due to higher management incentive compensation related to our strong performance.

Other (Non-core)

We had no equity losses in the second quarter of 2026. This compares with $2 million of equity income in the second

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Core Corporate

Operating, administrative and other expenses for our core corporate functions rose 12.8% to $406 million for the six

months ended June 30, 2026, mainly due to higher management incentive compensation related to our strong performance.

Other (Non-core)

We recorded equity loss of $3 million in the six months ended June 30, 2026, driven by a fair value adjustment related

to our equity investments. This compares with equity income of $23 million recognized during the same period in 2025,

primarily reflecting the higher value of our investment in Altus, which was sold in the second quarter of 2025.

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Liquidity and Capital Resources

T8We believe that we can satisfy our working capital and funding requirements with internally generated cash flow and,

as necessary, borrowings under our revolving credit facilities and commercial paper program. Our expected capital

requirements for 2026 include approximately $500 million of anticipated capital expenditures, net of tenant concessions.

During the six months ended June 30, 2026, we incurred $195 million of capital expenditures. As of June 30, 2026, we had

aggregate future commitments of $177 million related to co-investment funds in our REI segment, approximately $50 million

of which is expected to be funded in 2026. Additionally, as of June 30, 2026, we are committed to fund additional capital of

$145 million and $63 million to consolidated and unconsolidated projects, respectively, within our REI segment. As of June 30,

2026, we had $2.9 billion of borrowings available under our revolving credit facilities (under both the 5-Year Revolving Credit

Agreement and 364-Day Revolving Credit Agreement, as described below) and $1.5 billion of cash and cash equivalents. At

any point in time, we intend to maintain available commitments under the 5-Year Revolving Credit Agreement in an amount at

least equal to the amount of commercial paper notes outstanding. As of June 30, 2026 and December 31, 2025, we had

$1.6 billion and $852 million, respectively, in outstanding borrowings under the commercial paper program.

We have historically relied on our internally generated cash flow, our revolving credit facilities and commercial paper

program to fund our working capital, capital expenditures, share repurchases, and general investment requirements (including

in-fill acquisitions) and have not sought other external sources of financing to help fund these requirements. In the absence of

extraordinary events, large strategic acquisitions or large returns of capital to shareholders, we anticipate that our cash flow

from operations, our revolving credit facilities and commercial paper program will be sufficient to meet our anticipated cash

requirements for the foreseeable future, and at a minimum for the next 12 months. Given compensation is our largest expense

and our sales and leasing professionals are generally paid on a commission and/or bonus basis that correlates with their revenue

production, the negative effect of difficult market conditions is partially mitigated by the inherent variability of our

compensation structure. We may seek to take advantage of market opportunities to refinance existing debt instruments, as we

have done in the past, with new debt instruments at interest rates, maturities and terms we deem attractive. We may also, from

time to time in our sole discretion, purchase, redeem, or retire our existing senior notes, through tender offers, in privately

negotiated or open market transactions, or otherwise.

On May 4, 2026, we issued $750 million in aggregate principal amount of 5.250% senior notes due 2036, generating

aggregate net proceeds of approximately $735 million, after offering expenses. We used the net proceeds from this offering to

repay borrowings under our commercial paper program.

On November 13, 2025, we issued $750 million in aggregate principal amount of 4.900% senior notes due 2033,

generating aggregate net proceeds of approximately $742 million, after offering expenses. We used the net proceeds from this

offering to repay borrowings under our commercial paper program used in connection with the Pearce acquisition and other

corporate purposes.

On May 12, 2025, we issued $600 million in aggregate principal amount of 4.800% senior notes due 2030 and

$500 million in aggregate principal amount of 5.500% senior notes due 2035, generating aggregate net proceeds of

approximately $1.1 billion after offering expenses. On May 28, 2025, we used a portion of the proceeds from this offering to

redeem in full the $600 million aggregate outstanding principal amount of our 4.875% senior notes due 2026.

As noted above, we believe that any future significant acquisitions we may make could require us to obtain additional

debt or equity financing. In the past, we have been able to obtain such financing for material transactions on terms that we

believed to be reasonable. However, it is possible that we may not be able to obtain acquisition financing on favorable terms, or

at all, in the future.

Our long-term liquidity needs, other than those related to ordinary course obligations and commitments such as

operating leases, generally consist of the following: the first is the repayment of the outstanding and anticipated principal

amounts of our long-term indebtedness. If our cash flow is insufficient to repay our long-term debt when it comes due, then we

expect that we would need to refinance such indebtedness or otherwise amend its terms to extend the maturity dates. We cannot

make any assurances that such refinancing or amendments would be available on attractive terms, if at all.

The second long-term liquidity need is the payment of obligations related to acquisitions. Our acquisition structures

often include deferred and/or contingent purchase consideration in future periods that are subject to the passage of time or

achievement of certain performance metrics and other conditions. As of June 30, 2026 and December 31, 2025, we had accrued

deferred purchase consideration totaling $241 million ($132 million of which was a current liability) and $279 million

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($149 million of which was a current liability), respectively, which was included in “Accounts payable and accrued expenses”

and in “Other long-term liabilities” in the accompanying consolidated balance sheets set forth in Item 1 of this Quarterly

Report.

Lastly, as described in Note 14 – Income Per Share and Stockholders’ Equity of the Notes to Consolidated Financial

Statements (Unaudited) set forth in Item 1 of this Quarterly Report, in November 2024, our Board of Directors (Board)

authorized an additional $5.0 billion to our existing $4.0 billion share repurchase program (as amended, the 2024 program)

bringing the total authorized amount under the 2024 program to a total of $9.0 billion as of June 30, 2026. The Board also

During the three months ended June 30, 2026, we repurchased 3,096,341 shares of our common stock with an average

price of $133.94 per share for an aggregate of $414 million under the 2024 program. During the six months ended June 30,

2026, we repurchased 6,678,628 shares of our common stock with an average price of $141.55 per share for an aggregate of

$945 million under the 2024 program. During the period from July 1, 2026 through July 27, 2026, we repurchased 305,558

shares of our common stock with an average price of $140.73 per share for an aggregate of $43 million. As of both June 30,

2026 and July 27, 2026, we had $3.9 billion of capacity remaining under the 2024 program. These stock repurchases were

funded with cash on hand and proceeds from our commercial paper program.

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 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.

Historical Cash Flows

Operating Activities

Net cash used in operating activities totaled $687 million for the six months ended June 30, 2026 as compared to net

cash used in operating activities of $489 million during the six months ended June 30, 2025. The increase in net cash used in

operating activities was driven by net outflows associated with working capital movements, largely due to higher accounts

receivable due to revenue growth and the timing of cash collections.

Investing Activities

Net cash used in investing activities totaled $209 million for the six months ended June 30, 2026 as compared to net

cash used in investing activities of $467 million during the six months ended June 30, 2025. The decrease in net cash used in

investing activities for the six months ended June 30, 2026 was driven by proceeds from the disposition of real estate assets,

offset by cash paid for the acquisition and development of real estate and capital expenditures. In addition, net cash used in

investing activities was higher in the prior year, due to the acquisition of Industrious in the first quarter 2025.

Financing Activities

Net cash provided by financing activities totaled $527 million for the six months ended June 30, 2026 as compared to

net cash provided by financing activities of $1,160 million for the six months ended June 30, 2025. The decreased cash inflow

was primarily driven by lower net proceeds from the issuance of commercial paper and long-term debt, offset by higher cash

outflows to repurchase common stock.

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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. We also use several funding sources to avoid becoming overly dependent on one financing

source, and to lower funding costs.

Long-Term Debt

On July 10, 2023, CBRE Group, Inc. (CBRE Group), CBRE Services, Inc. (CBRE Services) and Relam Amsterdam

Holdings B.V., a wholly-owned subsidiary of CBRE Services (Relam Borrower), entered into a 5-year senior unsecured Credit

Agreement (2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced the previous credit agreement.

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 (Tranche A (Euro) Loans) and (ii) tranche A U.S.

Dollar-denominated term loans in an aggregate principal amount of $350 million (Tranche A (USD) Loans) with weighted-

average interest rate of 4.0% as of June 30, 2026, both requiring quarterly principal payments beginning on December 31, 2024

and continuing through maturity on July 10, 2028. The proceeds of these 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.

On March 13, 2025, CBRE Group, CBRE Services and Relam Borrower entered into Amendment No. 1 to the 2023

Credit Agreement, which provided for, among other things, the ability of Relam Borrower to obtain incremental commitments

and loans under the 2023 Credit Agreement in an aggregate principal amount of $750 million (or the Euro equivalent). On

March 14, 2025, CBRE Group, CBRE Services and Relam Borrower entered into Amendment No. 2 and Incremental

Assumption Agreement to the 2023 Credit Agreement, pursuant to which Relam Borrower incurred incremental term loans (i)

denominated in Euros in the aggregate principal amount of €425 million (Incremental Euro Term Loans) and (ii) denominated

in U.S. Dollars in the aggregate principal amount of $125 million (Incremental USD Term Loans). The Incremental Euro Term

Loans have the same terms applicable to, and constitute the same class as, the Tranche A (Euro) Loans, and the Incremental

USD Term Loans have the same terms applicable to, and constitute the same class as, the Tranche A (USD) Loans under the

2023 Credit Agreement. The proceeds of the Incremental Euro Term Loans and the Incremental USD Term Loans were used

for working capital and other general corporate purposes (including the partial repayment of borrowings under the commercial

paper program) and to pay fees and expenses incurred in connection with entering into the amendments to the 2023 Credit

Agreement. On June 24, 2025, CBRE Group, CBRE Services and Relam Borrower entered into Amendment No. 3 to the 2023

Credit Agreement, for the purpose of, among other things, amending the financial covenants to remove the interest coverage

ratio covenant and to increase certain baskets and thresholds in the 2023 Credit Agreement in a manner consistent with the

terms of the Revolving Credit Agreements described below.

The term loan borrowings under the 2023 Credit Agreement are fully and unconditionally guaranteed on a senior basis

by CBRE Group and CBRE Services.

On May 4, 2026, CBRE Services issued $750 million in aggregate principal amount of 5.250% senior notes due

June 1, 2036 (the 5.250% senior notes) at a price equal to 98.947% of their face value. The 5.250% senior notes are unsecured

obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of 5.250% per

year and is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2026.

On November 13, 2025, CBRE Services issued $750 million in aggregate principal amount of 4.900% senior notes due

January 15, 2033 (the 4.900% senior notes) at a price equal to 99.813% of their face value. The 4.900% senior notes are

unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of

4.900% per year and is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2026.

On May 12, 2025, CBRE Services issued $600 million in aggregate principal amount of 4.800% senior notes due

June 15, 2030 (the 4.800% senior notes) at a price equal to 99.065% of their face value. The 4.800% senior notes are unsecured

obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of 4.800% per

year and is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2025.

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On May 12, 2025, CBRE Services issued $500 million in aggregate principal amount of 5.500% senior notes due

June 15, 2035 (the 2035 5.500% senior notes) at a price equal to 99.549% of their face value. The 2035 5.500% senior notes are

unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of

5.500% per year and is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15,

On February 23, 2024, CBRE Services issued $500 million in aggregate principal amount of 5.500% senior notes due

April 1, 2029 (the 2029 5.500% senior notes) at a price equal to 99.837% of their face value. The 2029 5.500% senior notes are

unsecured obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of

5.500% per year and is payable semi-annually in arrears on April 1 and October 1 of each year.

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. 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. The 2.500% senior notes are unsecured

obligations of CBRE Services and are guaranteed on a senior basis by CBRE Group. Interest accrues at a rate of 2.500% per

year and is payable semi-annually in arrears on April 1 and October 1 of each year.

The indentures governing our outstanding senior notes described above 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 senior notes are fully and unconditionally guaranteed by CBRE Group.

Combined summarized financial information for CBRE Group (parent) and CBRE Services (subsidiary issuer) is as

follows (dollars in millions):

Balance Sheet Data:

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities (1)

Total liabilities (1)

Six Months Ended

Statement of Operations Data:

Revenue

$—

$—

Operating loss

(1)

(7)

Net loss

________________________________________________________________________________________________________________________________________

(1)Includes $7.4 billion and $8.3 billion of intercompany loan payables to non-guarantor subsidiaries as of June 30, 2026 and December 31, 2025,

respectively. All intercompany balances and transactions between CBRE Group and CBRE Services have been eliminated.

For additional information on all of our long-term debt, see Note 12 – Long-Term Debt and Short-Term Borrowings of

the Notes to Consolidated Financial Statements set forth in Item 8 included in our 2025 Annual Report and Note 10 – Long-

Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of

this Quarterly Report.

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Short-Term Borrowings

On June 24, 2025, we entered into a 5-year senior unsecured Revolving Credit Agreement (the 5-Year Revolving

Credit Agreement) which replaced our prior revolving credit agreement dated August 5, 2022. The 5-Year Revolving Credit

Agreement provides for a senior unsecured revolving credit facility available to CBRE Services with commitments in an

aggregate principal amount of up to $3.5 billion and a maturity date of June 24, 2030.

The 5-Year Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit

facility commitment (whether used or unused). In addition, the 5-Year Revolving Credit Agreement also includes capacity for

letters of credit not to exceed $300 million in the aggregate and capacity for swingline loans not to exceed $300 million in the

aggregate. The 5-Year Revolving Credit Agreement is fully and unconditionally guaranteed by CBRE Group.

As of June 30, 2026, no amount was outstanding under the revolving credit facility provided for by the 5-Year

Revolving Credit Agreement. $24 million of letters of credit were outstanding as of June 30, 2026. Letters of credit are issued

in the ordinary course of business and would reduce the amount we may borrow under this revolving credit facility. As of

December 31, 2025, no amount was outstanding under this revolving credit facility. $17 million of letters of credit were

On June 23, 2026, we entered into a new 364-day senior unsecured Revolving Credit Agreement (the 364-Day

Revolving Credit Agreement, and together with the 5-Year Revolving Credit Agreement, the Revolving Credit Agreements),

which replaced our prior 364-day revolving credit agreement dated June 24, 2025. The 364-Day Revolving Credit Agreement

provides for a senior unsecured revolving credit facility available to CBRE Services with commitments in an aggregate

principal amount of up to $1.0 billion and a maturity date of June 22, 2027.

The 364-Day Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit

facility commitment (whether used or unused). The 364-Day Revolving Credit Agreement is fully and unconditionally

guaranteed by CBRE Group.

As of both June 30, 2026, and December 31, 2025 no amount was outstanding under the revolving credit facility

provided for by the 364-Day Revolving Credit Agreement.

On December 2, 2024, CBRE Services established a commercial paper program pursuant to which we may issue and

sell up to $3.5 billion of short-term, unsecured and unsubordinated commercial paper notes with up to 397-day maturities,

under the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended. Amounts

available under the program may be borrowed, repaid and re-borrowed from time to time. Payment of the commercial paper

notes is guaranteed on an unsecured and unsubordinated basis by CBRE Group. The program notes and the guarantee will rank

pari passu with all other unsecured and unsubordinated indebtedness. The proceeds from issuances under the program may be

used for general corporate purposes. The company intends to maintain available commitments under the Revolving Credit

Agreement in an amount at least equal to the amount of commercial paper notes outstanding from time to time. As of June 30,

2026, we had $1.6 billion in outstanding borrowings under the commercial paper program with a weighted-average annual

interest rate of 4.08%. As of July 27, 2026 and December 31, 2025, we had $1.6 billion and $852 million, respectively, in

outstanding borrowings under the commercial paper program.

Turner & Townsend previously maintained a £120 million revolving credit facility pursuant to a credit agreement

dated March 31, 2022, with an additional accordion option of £20 million, that was scheduled to mature on March 31, 2027.

Effective June 30, 2026, the Turner & Townsend credit agreement for the revolving credit facility was terminated and the

facility has not been subsequently replaced as of the date of this report. As of December 31, 2025, no amount was outstanding

under the Turner & Townsend revolving credit facility.

We also maintain warehouse lines of credit with certain third-party lenders. See Note 4 – Warehouse Receivables &

Warehouse Lines of Credit of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly

Report.

For additional information on all of our short-term borrowings, see Note 5 – Warehouse Receivables & Warehouse

Lines of Credit and Note 12 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements

set forth in Item 8 included in our 2025 Annual Report and Note 4 – Warehouse Receivables & Warehouse Lines of Credit and

Note 10 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements (Unaudited) set

forth in Item 1 of this Quarterly Report.

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Off –Balance Sheet Arrangements

We do not have off-balance sheet arrangements that we believe could have a material current or future impact on our

financial condition, liquidity or results of operations. Our off-balance sheet arrangements are described in Note 12 –

Commitments and Contingencies of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this

Quarterly Report and are incorporated by reference herein.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted

in the United States, or GAAP, which require us to make estimates and assumptions that affect reported amounts. 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. A discussion of such critical

accounting policies, which include revenue recognition, business combinations, goodwill and other intangible assets, income

taxes, and contingencies can be found in our 2025 Annual Report. There have been no material changes to these policies and

New Accounting Pronouncements

See Note 2 – New Accounting Pronouncements of the Notes to Consolidated Financial Statements (Unaudited) set

forth in Item 1 of this Quarterly Report.

Non-GAAP Financial Measures

Core EBITDA is not a recognized measurement under accounting principles generally accepted in the United States, or

U.S. GAAP. When analyzing our operating performance, investors should use this measure in addition to, and not as an

alternative for, their most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. We

generally use this non-GAAP financial measure to evaluate operating performance and for other discretionary purposes. We

believe this measure provides a more complete understanding of ongoing operations, enhances comparability of current results

to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of

selected costs and charges that may obscure the underlying performance of our business and related trends. Because not all

companies use identical calculations, our presentation of core EBITDA may not be comparable to similarly titled measures of

other companies.

We use core EBITDA as an indicator of the company’s operating financial performance. Core EBITDA represents

earnings before the portion attributable to non-controlling interests, depreciation and amortization, asset impairments, net

interest expense, write-off of financing costs on extinguished debt, income taxes, further adjusted for the following items (Other

adjustments):

•net non-cash mortgage servicing rights,

•integration and other costs related to acquisitions,

•carried interest incentive compensation (reversal) expense to align with the timing of associated revenue,

•charges related to indirect tax audits and settlements,

•net results related to the wind-down of certain businesses,

•impact of fair value non-cash adjustments related to unconsolidated equity investments,

•business and finance transformation,

•costs associated with efficiency and cost-reduction initiatives,

•provision associated with Telford’s fire safety remediation efforts, and

•net fair value adjustments on strategic non-core investments.

We believe that investors may find this measure useful in evaluating our operating performance compared to that of

other companies in our industry because their calculations generally eliminate the effects of acquisitions, which would include

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impairment charges of goodwill and intangibles created from acquisitions, the effects of financings, income taxes and the

accounting effects of capital spending.

Core EBITDA is not intended to be a measure of free cash flow for our discretionary use because they do not consider

certain cash requirements such as tax and debt service payments. This measure 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. We also use core EBITDA as a significant component when

measuring our operating performance under our employee incentive compensation programs.

Core EBITDA is calculated as follows (dollars in millions):

Three Months Ended June 30,

Six Months Ended June 30,

Net income attributable to CBRE Group, Inc.

Net income attributable to non-controlling interests

Net income

Adjustments:

Depreciation and amortization

Interest expense, net of interest income

Write-off of financing costs on extinguished debt

—

2

—

2

Provision for income taxes

Net non-cash mortgage servicing rights

4

Integration and other costs related to acquisitions

Carried interest incentive compensation (reversal) expense to align with the

timing of associated revenue

3

7

Charges related to indirect tax audits and settlements

—

—

—

(1)

Net results related to the wind-down of certain businesses (1)

8

Impact of fair value non-cash adjustments related to unconsolidated equity

investments

—

2

—

2

Business and finance transformation

Costs associated with efficiency and cost-reduction initiatives

9

—

6

Provision associated with Telford’s fire safety remediation efforts

—

—

Net fair value adjustments on strategic non-core investments

1

(2)

6

Core EBITDA

________________________________________________________________________________________________________________________________________

(1)Management made the decision to wind down the legacy Telford Homes’ construction self-delivery business and certain businesses within the BOE

Segment.

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Cautionary Note on Forward-Looking Statements

This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of

1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange

Act. The words “anticipate,” “believe,” “could,” “should,” “propose,” “continue,” “estimate,” “expect,” “intend,” “may,”

“plan,” “predict,” “project,” “will,” “forecast,” “target,” and similar terms and phrases are used in this Quarterly Report to

identify forward-looking statements. Except for historical information contained herein, the matters addressed in this Quarterly

Report are forward-looking statements. These statements relate to analyses and other information based on forecasts of future

results and estimates of amounts not yet determinable. These statements also relate to our future prospects, developments and

business strategies.

These forward-looking statements are made based on our management’s expectations and beliefs concerning future

events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which

are difficult to predict and many of which are beyond our control. These uncertainties and factors could cause our actual results

to differ materially from those matters expressed in or implied by these forward-looking statements.

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;

•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 economic or commercial activity;

•trends in pricing and risk assumption for commercial real estate services;

•the effect of significant changes in supply/demand and 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 occupier 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;

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•negative publicity or harm to our brand and reputation;

•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. (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. Government Sponsored Enterprises, regulatory oversight of such activity and

our loan 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-rating 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 Quarterly Report on Form 10-Q, included under the headings

“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting

Policies and Estimates,” “Quantitative and Qualitative Disclosures About Market Risk” and Part II, Item 1A,

“Risk Factors” or as described in our 2025 Annual Report, in particular in Part I, Item 1A “Risk Factors”, or as

described in the other documents and reports we file with the Securities and Exchange Commission (SEC).

Forward-looking statements speak only as of the date the statements are made. You should not put undue reliance on

any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results,

changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by

applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will

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make additional updates with respect to those or other forward-looking statements. Additional information concerning these and

other risks and uncertainties is contained in our other periodic filings with the SEC.

Investors and others should note that we routinely announce financial and other material information using our

Investor Relations website (https://ir.cbre.com), SEC filings, press releases, public conference calls and webcasts. We use these

channels of distribution to communicate with our investors and members of the public about our company, our services and

other items of interest. Information contained on our website is not part of this Quarterly Report or our other filings with the

SEC.

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