CBRE Group, Inc. Reports Improved Adjusted Earnings for the Third Quarter of 2012

  CBRE Group, Inc. Reports Improved Adjusted Earnings for the Third Quarter of
  2012

                 Total Revenue Rose 1% (5% in local currency)

              Outsourcing Revenue Up 7% (11% in local currency)

Business Wire

LOS ANGELES -- October 30, 2012

CBRE Group, Inc. (NYSE:CBG) today reported an 8% increase in adjusted earnings
for the third quarter ended September 30, 2012.

Third-Quarter 2012 Results

  *Revenue for the quarter was $1.56 billion, up 1% (5% in local currency)
    from $1.53 billion in the third quarter of 2011.
  *Excluding selected charges^1, net income^2 was $83.6 million, or $0.26 per
    diluted share, for the current quarter, up 8% from $77.7 million, or $0.24
    per diluted share, in the third quarter of 2011. For the current quarter,
    selected charges (net of income taxes), which primarily related to the
    acquisition of the ING REIM businesses (completed in 2011), cost
    containment expenses and an intangible asset impairment related to the
    discontinuation of a U.K. trade name, totaled $43.9 million. For the same
    period in 2011, selected charges totaled $13.9 million.
  *On a U.S. GAAP basis, net income was $39.7 million, or $0.12 per diluted
    share, for the third quarter of 2012 compared with $63.8 million, or $0.20
    per diluted share, for the third quarter of 2011.
  *Excluding selected charges, Earnings Before Interest Taxes Depreciation
    and Amortization (EBITDA)^3 increased marginally to $195.3 million for the
    third quarter of 2012 from $194.8 million a year earlier. EBITDA ^
    (including selected charges) was $163.6 million for the third quarter of
    2012, compared with $179.0 million for the same period last year. For the
    current quarter, selected charges, which primarily related to the
    aforementioned acquisition of the ING REIM businesses, cost containment
    expenses and an intangible asset impairment, reduced EBITDA by $31.7
    million. For the same period in 2011, selected charges totaled $15.8
    million.

Management Commentary

“Many investors and occupiers turned more cautious in the third quarter.
Concerns about Europe’s ongoing sovereign debt crisis and Asia’s slowing
growth, which have been weighing on markets for most of the year, were
heightened by unease about weakening corporate profit outlooks as well as U.S.
fiscal policy and political uncertainty,” said Brett White, CBRE’s chief
executive officer. “CBRE was not immune from these macro trends. Nevertheless,
our strong brand, best-in-class professionals and diversified global platform
enabled us to modestly improve on last year’s performance in this cautious
market environment. We also continued to carefully manage expenses, and
preserved our industry-leading margins. During the third quarter, we took
steps to further align our cost base with reduced business volumes in certain
parts of our business. This was particularly true in Europe, where the ongoing
debt problems continue to adversely affect transaction activity, most notably
in France.”

Outsourcing continued to grow solidly, with revenue up 7% globally (11% in
local currency) and 13% in the Americas. CBRE remains at the forefront of an
industry-wide trend in which property occupiers are hiring third-party service
providers to manage their real estate in order to reduce costs and improve
efficiency. The Company signed a record 67 total outsourcing contracts in the
quarter, surpassing its previous record (54 total contracts) achieved in the
first quarter of 2012. In EMEA and Asia Pacific, CBRE signed four contracts
with new clients and expanded three contracts with existing clients during the
quarter.

CBRE continued to benefit from last year’s acquisition of the ING real estate
investment management businesses, which added significant recurring, fee-based
revenue to the Company’s business mix. Fueled by contributions from the ING
REIM businesses, global investment management revenue rose 48% during the
third quarter, and this segment’s contributions to total Company normalized
EBITDA increased significantly.

Geographically, the Americas was the Company’s best-performing region, with 4%
overall revenue growth. Double-digit revenue increases in Americas outsourcing
and commercial mortgage brokerage more than offset declines in sales and
leasing. EMEA revenue fell 17% (9% in local currency) primarily due to the
continued effects of sovereign debt issues. On a positive note, the U.K.
business proved resilient, with overall revenue edging up 2%. Property sales
activity was a source of particular strength in the U.K., with revenue rising
17% as CBRE claimed a greater share of investment activity in a market that is
increasingly attracting offshore capital due to its relative safe-haven
status. Asia Pacific revenue declined 4%, but rose 2% in local currency.

“The current recovery, unlike past ones, remains frustratingly slow and
inconsistent, and is subject to quick swings in market sentiment,” Mr. White
said. “We expect these variable conditions to persist until global economic
growth and job creation shift into higher gear. In the meantime, we remain
highly focused on operating efficiently while investing in our platform, as we
help our clients navigate this choppy environment. CBRE is well positioned for
the uncertain market environment because of the strength of our brand, people
and diverse platform.”

Third-Quarter 2012 Segment Results

Americas Region (U.S., Canada and Latin America)

  *Revenue rose 4% to $996.4 million, compared with $954.2 million for the
    third quarter of 2011.
  *EBITDA rose 2% to $128.7 million from $126.2 million for the prior-year
    third quarter.
  *Operating income totaled $105.4 million compared with $107.0 million in
    last year’s third quarter.
  *Growth in outsourcing and commercial mortgage brokerage more than offset
    softer sales and lease transaction revenue.

EMEA Region (primarily Europe)

  *Revenue was $228.7 million, a decrease of 17% (9% in local currency) from
    $276.0 million in the third quarter of 2011.
  *EBITDA, before selected charges, was $7.2 million, compared with $21.1
    million in the prior-year third quarter. Including selected charges,
    current-quarter EBITDA swung to a loss of $8.1 million. There were no
    selected charges in the comparable period of 2011.
  *The region reported an operating loss of $31.7 million, compared with
    operating income of $17.5 million for the same period in 2011. Operating
    loss for the third quarter of 2012 included an approximately $20 million
    non-cash write-off of a trade name in the U.K., and cost containment
    expenses of $15.3 million, for a total of $35.3 million in charges. The
    non-amortizable intangible asset impairment is included in the calculation
    of operating loss but not in EBITDA.
  *The weaker results reflected the continued impact of Europe’s sovereign
    debt crisis and related economic difficulties as well as the negative
    effect of currency movement.

Asia Pacific Region (Asia, Australia and New Zealand)

  *Revenue was $200.0 million, a decrease of 4% (a 2% increase in local
    currency) from $208.1 million in the third quarter of 2011.
  *EBITDA, before selected charges, was $18.7 million, compared with $22.3
    million in the prior-year third quarter. Including selected charges,
    current-quarter EBITDA was $16.4 million versus $21.8 million in the
    prior-year period.
  *Operating income was $13.9 million, compared with $19.3 million for the
    third quarter of 2011.
  *The weaker results reflected the impact of slower economic growth, which
    resulted in lower sales and leasing activity throughout much of the
    region, as well as the negative effect of currency movement.

Global Investment Management Business (investment management operations in the
U.S., Europe and Asia)

  *Revenue rose 48% to $114.3 million from $77.4 million in the third quarter
    of 2011.
  *EBITDA, before selected charges, rose 84% to $36.9 million from $20.0
    million in the prior-year third quarter. Including selected charges in
    both periods, current-quarter EBITDA rose to $22.7 million from $6.2
    million in the third quarter of 2011.
  *Operating income was $12.1 million, compared with an operating loss of
    $0.3 million for the third quarter of 2011.
  *The improved performance was driven by contributions from the ING REIM
    Europe and Asia businesses, acquired in the fourth quarter of 2011. The
    global real estate securities business was acquired from ING on July 1,
    2011, and is therefore fully included in both the current and prior-year
    quarters.
  *Assets under management totaled $90.4 billion at the end of the third
    quarter, a decrease of 1% from the second quarter of 2012 and 4% from
    year-end 2011. The decrease from year end was in part driven by a
    non-traded REIT’s decision to internalize its management, as previously
    reported.

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

  *Revenue was $17.8 million compared with $18.8 million for the third
    quarter of 2011.
  *Operating income improved to $3.9 million, compared with an operating loss
    of $0.4 million for the third quarter of 2011. The 2011 period included
    real estate asset impairments, which did not recur in the current year, as
    well as higher incentive compensation.
  *EBITDA was $3.8 million in both the current-year and prior-year periods.
    The improvement reflected in operating income in the current year was
    offset by equity losses from unconsolidated subsidiaries and activity
    associated with non-controlling interests; equity loss from unconsolidated
    subsidiaries and non-controlling interests are included in the calculation
    of EBITDA, but not in operating income.
  *Development projects in process totaled $4.6 billion, down $0.1 billion
    from the second quarter of 2012 and $0.3 billion from year-end 2011. The
    inventory of pipeline deals totaled $1.9 billion, up $0.5 billion from the
    second quarter of 2012 and $0.7 billion from year-end 2011.

Nine-Month Results

  *Revenue for the nine months ended September 30, 2012 was $4.5 billion, an
    increase of 9% (11% in local currency) from $4.1 billion for the same
    period in 2011.
  *Excluding selected charges, net income was $217.5 million, or $0.67 per
    diluted share, for the current-year-to-date period, up 17% and 18%,
    respectively, from $185.2 million, or $0.57 per diluted share, in the
    prior-year period. Selected charges (net of income taxes), which primarily
    related to the acquisition of the ING REIM businesses, cost containment
    expenses and the impairment of assets, totaled $74.9 million for the nine
    months ended September 30, 2012 and $25.8 million for the same period in
    2011.
  *On a U.S. GAAP basis, net income was $142.6 million, or $0.44 per diluted
    share, for the nine months ended September 30, 2012, compared with $159.4
    million, or $0.49 per diluted share, in the same period in 2011.
  *Excluding selected charges, EBITDA increased 16% to $566.8 million for the
    first nine months of 2012 from $487.7 million a year earlier. EBITDA ^
    (including selected charges) rose 13% to $515.9 million for the current
    nine-month period from $458.1 million for the same period a year earlier.
    Selected charges, which primarily related to the acquisition of the ING
    REIM businesses, cost containment expenses and the impairment of assets,
    reduced EBITDA by $50.9 million for the nine months ended September 30,
    2012 and $29.6 million for the same period in 2011.

Conference Call Details

The Company’s third-quarter earnings conference call will be held on Tuesday,
October 30, 2012 at 5:00 p.m. Eastern Time. A webcast will be accessible
through the Investor Relations section of the Company’s Web site at
www.cbre.com/investorrelations.

The direct dial-in number for the conference call is 800-230-1951 for U.S.
callers and 612-332-0342 for international callers. A replay of the call will
be available starting at 10 p.m. Eastern Time on October 30, 2012, and ending
at midnight Eastern Time on November 5, 2012. The dial-in number for the
replay is 800-475-6701 for U.S. callers and 320-365-3844 for international
callers. The access code for the replay is 268007. A transcript of the call
will be available on the Company’s Investor Relations Web site at
www.cbre.com/investorrelations.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered
in Los Angeles, is the world’s largest commercial real estate services firm
(in terms of 2011 revenue). The Company has approximately 34,000 employees
(excluding affiliates), and serves real estate owners, investors and occupiers
through more than 300 offices (excluding affiliates) worldwide. CBRE offers
strategic advice and execution for property sales and leasing; corporate
services; property, facilities and project management; mortgage banking;
appraisal and valuation; development services; investment management; and
research and consulting. Please visit our Web site at www.cbre.com.

Note: This release contains forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform Act
of 1995, including statements regarding our future growth momentum,
operations, financial performance, and business outlook. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results and performance in future periods
to be materially different from any future results or performance suggested in
forward-looking statements in this release. Any forward-looking statements
speak only as of the date of this release and, except to the extent required
by applicable securities laws, the Company expressly disclaims any obligation
to update or revise any of them to reflect actual results, any changes in
expectations or any change in events. If the Company does update one or more
forward-looking statements, no inference should be drawn that it will make
additional updates with respect to those or other forward-looking statements.
Factors that could cause results to differ materially include, but are not
limited to: general conditions of financial liquidity for real estate
transactions, including the impact of the European sovereign debt crisis and
potential “fiscal cliff” in the U.S.; our leverage and our ability to perform
under our credit facilities; commercial real estate vacancy levels; employment
conditions and their effect on vacancy rates; property values; rental rates;
interest rates; our ability to leverage our platform to grow revenues and
capture market share; continued growth in trends toward use of outsourced real
estate services; our ability to control costs relative to revenue growth and
expand EBITDA margins; our ability to retain and incentivize producers; our
ability to identify, acquire and integrate synergistic and accretive
businesses; expected levels of interest, depreciation and amortization expense
resulting from completed acquisitions; maintaining our effective tax rate;
realization of values in investment funds to offset related incentive
compensation expense; a decline in asset values in, or a reduction in earnings
or cash flow from, our investment programs, as well as related litigation,
liabilities and reputational harm; and our ability to comply with laws and
regulations related to our international operations, including the
anti-corruption laws of the U.S. and other countries.

Additional information concerning factors that may influence the Company's
financial information is discussed under “Risk Factors”, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”,
“Quantitative and Qualitative Disclosures About Market Risk” and
“Forward-Looking Statements” in our Annual Report on Form 10-K for the year
ended December 31, 2011, and under “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”, “Quantitative and Qualitative
Disclosures About Market Risk” and “Forward-Looking Statements” in our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as well as
in the Company’s press releases and other periodic filings with the Securities
and Exchange Commission. Such filings are available publicly and may be
obtained on the Company’s Web site at www.cbre.com or upon written request
from the CBRE Investor Relations Department at investorrelations@cbre.com.

^1 Selected charges include integration and other costs related to
acquisitions, amortization expense related to incentive fees and customer
relationships acquired in the ING REIM and Trammell Crow Company (TCC)
acquisitions, cost containment expenses and the write-down of impaired assets,
including a non-amortizable intangible asset.

^2 A reconciliation of net income attributable to CBRE Group, Inc. to net
income attributable to CBRE Group, Inc., as adjusted for selected charges, is
provided in the section of this press release entitled “Non-GAAP Financial
Measures.”

^3 EBITDA represents earnings before net interest expense, income taxes,
depreciation and amortization, while amounts shown for EBITDA, as adjusted (or
normalized EBITDA), remove the impact of certain cash and non-cash charges
related to acquisitions, cost containment and asset impairments. Our
management believes that both of these measures are useful in evaluating our
operating performance compared to that of other companies in our industry
because the calculations of EBITDA and EBITDA, as adjusted, generally
eliminate the effects of financing and income taxes and the accounting effects
of capital spending and acquisitions, which would include impairment charges
of goodwill and intangibles created from acquisitions. Such items may vary for
different companies for reasons unrelated to overall operating performance. As
a result, our management uses these measures to evaluate operating performance
and for other discretionary purposes, including as a significant component
when measuring our operating performance under our employee incentive
programs. Additionally, we believe EBITDA and EBITDA, as adjusted, are useful
to investors to assist them in getting a more complete picture of our results
from operations.

However, EBITDA and EBITDA, as adjusted, are not recognized measurements under
U.S. generally accepted accounting principles, or GAAP, and when analyzing our
operating performance, readers should use EBITDA and EBITDA, as adjusted, in
addition to, and not as an alternative for, net income as determined in
accordance with GAAP. Because not all companies use identical calculations,
our presentation of EBITDA and EBITDA, as adjusted, may not be comparable to
similarly titled measures of other companies. Furthermore, EBITDA and EBITDA,
as adjusted, are not intended to be measures of free cash flow for our
management’s discretionary use, as they do not consider certain cash
requirements such as tax and debt service payments. The amounts shown for
EBITDA and EBITDA, as adjusted, also differ from the amounts calculated under
similarly titled definitions in our debt instruments, which are further
adjusted to reflect certain other cash and non-cash charges and are used to
determine compliance with financial covenants and our ability to engage in
certain activities, such as incurring additional debt and making certain
restricted payments.

For a reconciliation of EBITDA and EBITDA, as adjusted to net income
attributable to CBRE Group, Inc., the most comparable financial measure
calculated and presented in accordance with GAAP, see the section of this
press release titled “Non-GAAP Financial Measures.”


CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(Dollars in thousands, except share data)
(Unaudited)

                 Three Months Ended               Nine Months Ended
                  September 30,                     September 30,
                  2012            2011           2012            2011        
Revenue           $ 1,557,147     $ 1,534,463       $ 4,508,253     $ 4,141,786
                                                                    
Costs and
expenses:
Cost of             915,245         894,607           2,610,944       2,448,184
services
Operating,
administrative      482,362         469,138           1,405,461       1,279,019
and other
Depreciation
and                 40,102          31,308            124,895         79,871
amortization
Non-amortizable
intangible         19,826         -               19,826         -           
asset
impairment
Total costs and     1,457,535       1,395,053         4,161,126       3,807,074
expenses
                                                                    
Gain on
disposition of     3,983          3,595           5,231          11,594      
real estate
                                                                    
Operating           103,595         143,005           352,358         346,306
income
                                                                    
Equity income
from                2,875           6,714             19,870          38,961
unconsolidated
subsidiaries
Other income        151             (5,809      )     4,635           (5,809      )
(loss)
Interest income     1,895           2,493             5,783           7,063
Interest           43,651         39,080          132,043        107,014     
expense
Income from
continuing
operations          64,865          107,323           250,603         279,507
before
provision for
income taxes
Provision for      22,160         47,290          102,353        117,032     
income taxes
Income from
continuing          42,705          60,033            148,250         162,475
operations
Income from
discontinued       -              -               -              16,911      
operations, net
of income taxes
Net income          42,705          60,033            148,250         179,386
Less: Net
income (loss)
attributable to    2,996          (3,774      )    5,693          19,987      
non-controlling
interests
Net income
attributable to   $ 39,709        $ 63,807         $ 142,557       $ 159,399     
CBRE Group,
Inc.
                  
Basic income
per share
attributable to
CBRE Group,
Inc.
shareholders
Income from
continuing
operations        $ 0.12          $ 0.20            $ 0.44          $ 0.50
attributable to
CBRE Group,
Inc.
Income from
discontinued
operations         -              -               -              -           
attributable to
CBRE Group,
Inc.
Net income
attributable      $ 0.12          $ 0.20           $ 0.44          $ 0.50        
CBRE Group,
Inc.
                                                                    
Weighted
average shares
outstanding for    322,331,850    318,867,447     321,289,017    317,718,150 
basic income
per share
                                                                    
Diluted income
per share
attributable to
CBRE Group,
Inc.
shareholders
Income from
continuing
operations        $ 0.12          $ 0.20            $ 0.44          $ 0.49
attributable to
CBRE Group,
Inc.
Income from
discontinued
operations         -              -               -              -           
attributable to
CBRE Group,
Inc.
Net income
attributable to   $ 0.12          $ 0.20           $ 0.44          $ 0.49        
CBRE Group,
Inc.
                                                                    
Weighted
average shares
outstanding for    327,309,341    323,714,703     326,380,448    323,584,637 
diluted income
per share
                                                                    
EBITDA ^(1)       $ 163,553       $ 178,992        $ 515,891       $ 458,131     

__________________________

(1)  Includes EBITDA related to discontinued operations of $1.9 million for
      the nine months ended September 30, 2011.


CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(Dollars in thousands)
(Unaudited)

                    Three Months Ended         Nine Months Ended
                     September 30,               September 30,
                      2012       2011        2012         2011      
Americas
Revenue              $ 996,380     $ 954,213     $ 2,855,899     $ 2,602,156
Costs and
expenses:
Cost of services       638,138       600,168       1,818,162       1,644,835
Operating,
administrative and     232,108       231,181       665,157         646,071
other
Depreciation and      20,744      15,855      58,555        43,517    
amortization
Operating income     $ 105,390    $ 107,009    $ 314,025      $ 267,733   
EBITDA               $ 128,749    $ 126,156    $ 379,304      $ 319,659   
                                                                 
EMEA
Revenue              $ 228,737     $ 275,958     $ 674,367       $ 742,013
Costs and
expenses:
Cost of services       150,729       165,450       426,486         452,461
Operating,
administrative and     86,662        89,853        248,751         244,830
other
Depreciation and       3,181         3,191         9,674           7,706
amortization
Non-amortizable
intangible asset      19,826      -           19,826        -         
impairment
Operating (loss)     $ (31,661 )   $ 17,464     $ (30,370   )   $ 37,016    
income
EBITDA               $ (8,141  )   $ 21,089     $ 507          $ 45,470    
                                                                 
Asia Pacific
Revenue              $ 199,950     $ 208,055     $ 568,396       $ 557,101
Costs and
expenses:
Cost of services       126,378       128,989       366,296         350,888
Operating,
administrative and     56,792        56,835        159,433         152,801
other
Depreciation and      2,905       2,979       8,458         6,950     
amortization
Operating income     $ 13,875     $ 19,252     $ 34,209       $ 46,462    
EBITDA               $ 16,448     $ 21,817     $ 42,047       $ 51,696    
                                                                 
Global Investment
Management
Revenue              $ 114,306     $ 77,426      $ 359,180       $ 185,302
Costs and
expenses:
Operating,
administrative and     91,658        71,770        282,952         175,268
other
Depreciation and       10,524        6,281         39,803          12,947
amortization
Gain on
disposition of        -           345         -             345       
real estate
Operating income     $ 12,124     $ (280    )   $ 36,425       $ (2,568    )
(loss)
EBITDA^(1)           $ 22,658     $ 6,154      $ 77,925       $ 14,614    
                                                                 
Development
Services
Revenue              $ 17,774      $ 18,811      $ 50,411        $ 55,214
Costs and
expenses:
Operating,
administrative and     15,142        19,499        49,168          60,049
other
Depreciation and       2,748         3,002         8,405           8,751
amortization
Gain on
disposition of        3,983       3,250       5,231         11,249    
real estate
Operating income     $ 3,867      $ (440    )   $ (1,931    )  $ (2,337    )
(loss)
EBITDA               $ 3,839      $ 3,776     $ 16,108       $ 26,692    

_________________________

(1)  Includes EBITDA related to discontinued operations of $1.9 million for
      the nine months ended September 30, 2011.

Non-GAAP Financial Measures

The following measures are considered “non-GAAP financial measures” under SEC
guidelines:

(i)     Net income attributable to CBRE Group, Inc., as adjusted for
          selected charges

(ii)      Diluted income per share attributable to CBRE Group, Inc., as
          adjusted for selected charges

(iii)     EBITDA and EBITDA, as adjusted for selected charges

The Company believes that these non-GAAP financial measures provide a more
complete understanding of ongoing operations and enhance comparability of
current results to prior periods as well as presenting the effects of selected
charges in all periods presented. The Company believes that investors may find
it useful to see these non-GAAP financial measures to analyze financial
performance without the impact of selected charges that may obscure trends in
the underlying performance of its business.


Net income attributable to CBRE Group, Inc., as adjusted for selected charges
and diluted net income per share attributable to CBRE Group, Inc. shareholders,
as adjusted for selected charges are calculated as follows (dollars in
thousands, except per share data):

                  Three Months Ended             Nine Months Ended
                   September 30,                   September 30,
                   2012           2011            2012           2011
                                                                   
Net income
attributable to    $ 39,709        $ 63,807        $ 142,557       $ 159,399
CBRE Group, Inc.
Non-amortizable
intangible asset     15,018          -               15,018          -
impairment, net
of tax
Cost containment
expenses, net of     13,521          -               13,521          -
tax
Integration and
other costs
related to           10,681          8,390           25,418          16,769
acquisitions,
net of tax
Amortization
expense related
to ING REIM and
TCC incentive
fees and             4,623           1,924           20,984          5,528
customer
relationships
acquired, net of
tax
Write-down of
impaired assets,    -              3,532          -              3,532
net of tax
Net income
attributable to
CBRE Group,        $ 83,552        $ 77,653        $ 217,498       $ 185,228
Inc., as
adjusted
                                                                   
Diluted income
per share
attributable to    $ 0.26          $ 0.24          $ 0.67          $ 0.57
CBRE Group, Inc.
shareholders, as
adjusted
                                                                   
Weighted average
shares
outstanding for     327,309,341    323,714,703    326,380,448    323,584,637
diluted income
per share
                                                                   
EBITDA and EBITDA, as adjusted for selected charges are calculated as follow
(dollars in thousands):
                                                                   
                   Three Months Ended              Nine Months Ended
                   September 30,                   September 30,
                   2012            2011            2012            2011
                                                                   
Net income
attributable to    $ 39,709        $ 63,807        $ 142,557       $ 159,399
CBRE Group, Inc.
Add:
Depreciation and     40,102          31,308          124,895         80,396
amortization^(1)
Non-amortizable
intangible asset     19,826          -               19,826          -
impairment
Interest             43,651          39,080          132,043         108,367
expense^(2)
Provision for        22,160          47,290          102,353         117,032
income taxes
Less:
Interest income     1,895          2,493          5,783          7,063
                                                                   
EBITDA^(3)         $ 163,553       $ 178,992       $ 515,891       $ 458,131
                                                                   
Adjustments:
Cost containment     17,578          -               17,578          -
expenses
Integration and
other costs          14,215          9,921           33,313          23,704
related to
acquisitions
Write-down of       -              5,889          -              5,889
impaired assets
                                                                   
EBITDA, as         $ 195,346       $ 194,802       $ 566,782       $ 487,724
adjusted ^(3)

_________________________

       Includes depreciation and amortization related to discontinued
^(1)  operations of $0.5 million for the nine months ended September 30,
       2011.
^(2)   Includes interest expense related to discontinued operations of $1.4
       million for the nine months ended September 30, 2011.
^(3)   Includes EBITDA related to discontinued operations of $1.9 million for
       the nine months ended September 30, 2011.


EBITDA and EBITDA, as adjusted for selected charges for segments are
calculated as follows (dollars in thousands):

                    Three Months Ended             Nine Months Ended
                     September 30,                   September 30,
                       2012          2011        2012       2011    
Americas
Net income
attributable to      $  48,403         $ 54,908      $ 142,634     $ 136,432
CBRE Group, Inc.
Add:
Depreciation and        20,744           15,855        58,555        43,517
amortization
Interest expense        35,403           30,197        106,367       81,769
Royalty and
management              (6,921   )       (7,188  )     (20,779 )     (20,703 )
service income
Provision for           32,283           34,196        96,000        83,523
income taxes
Less:
Interest income        1,163          1,812       3,473       4,879   
EBITDA               $  128,749        $ 126,156     $ 379,304     $ 319,659
Integration and
other costs            -              10          -           116     
related to
acquisitions
EBITDA, as           $  128,749       $ 126,166    $ 379,304    $ 319,775 
adjusted
                                                                   
                                                                   
EMEA
Net (loss) income
attributable to      $  (17,893  )     $ 3,929       $ (18,956 )   $ 14,321
CBRE Group, Inc.
Add:
Depreciation and        3,181            3,191         9,674         7,706
amortization
Non-amortizable
intangible asset        19,826           -             19,826        -
impairment
Interest expense        2,175            30            6,738         187
Royalty and
management              3,182            3,507         8,966         9,660
service expense
(Benefit of)
provision for           (13,473  )       10,680        (11,339 )     14,468
income taxes
Less:
Interest income        5,139          248         14,402     872     
EBITDA               $  (8,141   )     $ 21,089      $ 507         $ 45,470
Cost containment       15,331         -           15,331      -       
expenses
EBITDA, as           $  7,190         $ 21,089     $ 15,838     $ 45,470  
adjusted
                                                                   
                                                                   
Asia Pacific
Net income
attributable to      $  10,001         $ 6,585       $ 17,670      $ 15,672
CBRE Group, Inc.
Add:
Depreciation and        2,905            2,979         8,458         6,950
amortization
Interest expense        1,124            1,395         3,188         2,624
Royalty and
management              3,704            3,468         11,700        10,314
service expense
(Benefit of)
provision for           (1,182   )       7,550         1,653         17,085
income taxes
Less:
Interest income        104            160         622         949     
EBITDA               $  16,448         $ 21,817      $ 42,047      $ 51,696
Cost containment        2,247            -             2,247         -
expenses
Integration and
other costs            -              512         -           1,896   
related to
acquisitions
EBITDA, as           $  18,695        $ 22,329     $ 44,294     $ 53,592  
adjusted
                                                                   
                                                                   
Global Investment
Management
Net income (loss)
attributable to      $  291            $ (17     )   $ 1,957       $ (12,249 )
CBRE Group, Inc.
Add:
Depreciation and        10,524           6,281         39,803        13,472
amortization^(1)
Interest                7,162            4,097         20,981        14,186
expense^(2)
Royalty and
management              35               213           113           729
service expense
Provision for
(benefit of)            4,966            (4,156  )     15,911        (1,223  )
income taxes
Less:
Interest income        320            264         840         301     
EBITDA^(3)           $  22,658         $ 6,154       $ 77,925      $ 14,614
Integration and
other costs             14,215           9,399         33,313        21,692
related to
acquisitions
Write-down of          -              4,455       -           4,455   
impaired assets
EBITDA, as           $  36,873        $ 20,008     $ 111,238    $ 40,761  
adjusted^(3)
                                                                   
                                                                   
Development
Services
Net (loss) income
attributable to      $  (1,093   )     $ (1,598  )   $ (748    )   $ 5,223
CBRE Group, Inc.
Add:
Depreciation and        2,748            3,002         8,405         8,751
amortization
Interest expense        2,691            3,361         8,602         9,601
(Benefit of)
provision for           (434     )       (980    )     128           3,179
income taxes
Less:
Interest income        73             9           279         62      
EBITDA               $  3,839          $ 3,776       $ 16,108      $ 26,692
Write-down of          -              1,434       -           1,434   
impaired assets
EBITDA, as           $  3,839         $ 5,210      $ 16,108     $ 28,126  
adjusted

_________________________

(1)  Includes depreciation and amortization related to discontinued
      operations of $0.5 million for the nine months ended September 30, 2011.
(2)   Includes interest expense related to discontinued operations of $1.4
      million for the nine months ended September 30, 2011.
(3)   Includes EBITDA related to discontinued operations of $1.9 million for
      the nine months ended September 30, 2011.


CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)

                                                 September 30,  December 31,
                                                  2012            2011
Assets:
Cash and cash equivalents ^(1)                    $  776,260      $  1,093,182
Restricted cash                                      64,600          67,138
Receivables, net                                     1,127,992       1,135,371
Warehouse receivables ^(2)                           465,794         720,061
Real estate assets ^(3)                              465,369         464,468
Goodwill and other intangibles, net                  2,615,027       2,622,732
Investments in and advances to unconsolidated        214,231         166,832
subsidiaries
Other assets, net                                   1,039,504      949,359
Total assets                                      $  6,768,777    $  7,219,143
                                                                  
Liabilities:
Current liabilities, excluding debt               $  1,344,636    $  1,688,034
Warehouse lines of credit ^(2)                       458,306         713,362
Revolving credit facility                            72,658          44,825
Senior secured term loans                            1,643,308       1,683,561
Senior subordinated notes, net                       440,129         439,016
Senior notes                                         350,000         350,000
Other debt                                           9,139           125
Notes payable on real estate ^(4)                    365,590         372,912
Other long-term liabilities                         565,905        510,145
Total liabilities                                    5,249,671       5,801,980
                                                                  
CBRE Group, Inc. stockholders’ equity                1,340,432       1,151,481
Non-controlling interests                           178,674        265,682
Total equity                                         1,519,106       1,417,163
                                                                 
Total liabilities and equity                      $  6,768,777    $  7,219,143

     
       Includes $66.9 million and $208.1 million of cash in consolidated funds
^(1)   and other entities not available for Company use at September 30, 2012
       and December 31, 2011, respectively.
^(2)   Represents loan receivables, the majority of which are offset by
       related warehouse lines of credit facilities.
^(3)   Includes real estate and other assets held for sale, real estate under
       development and real estate held for investment.
       Represents notes payable on real estate of which $13.6 million are
^(4)   recourse to the Company as of both September 30, 2012 and December 31,
       2011.

Contact:

CBRE Group, Inc.
Gil Borok
Chief Financial Officer
310-405-8909
or
Nick Kormeluk
Investor Relations
949-809-4308
or
Steve Iaco
Corporate Communications
212-984-6535
 
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