7 Things We Learned From June Investor Overview; Reiterate OW and $180 PT

Research evidence excerpt

7 Things We Learned From June Investor Overview; Reiterate OW and $180 PT

IdeaMand program delivery with predictive AI models

• Operational Efficiency: Disciplined two-track deployment — external AI for

commoditized work, Ellis AI Core for proprietary workflows. Targeting ~25%

reduction in HR and shared services costs.

5) What key data points does management believe underscore that the business

mix is defensible with low risk of disintermediation?

• Advisory services: In US sales ~3.5% mix of volume from deals <$2.5M in

total consideration. In US leasing ~6% mix of volume from deals <$1M in

total consideration.

• Building operations and experience: Of Enterprise Facility Management’s

~45,000 employees, 85%+ are typically on client site, implying low-risk of

disintermediation

• Project management: Manage complex capital programs with multiple

stakeholders, requiring a physical presence on site

• Real estate investments: The physical creation of assets as well as

investments is protected from disintermediation

6) Operating leverage and disciplined cost management driving margin gains

across three largest segments with continued runway ahead. CBRE provided

segment-level evidence of operating leverage across its three largest segments.

Since 2023, BOE generated +70 bps of operating leverage on gross revenue, +50bps

in PJM, and +250bps in Advisory. Key focus for investors will be leveraging AI and

other tools to drive further margin upside.

7) Capital allocation remains a core part of the growth algorithm. CBRE disclosed

~$7bn of cumulative free cash flow generation from 2021-2025, alongside ~$6bn of

M&A , ~$2.4bn of gross capital co-invested into Real Estate Investments and ~

$4.5bn of share repurchases. The company has retired ~47mn shares since 2021 at