The real estate is suffering multiple headwinds, and that was reflected in CBRE Group, Inc.’s (NYSE:CBRE) FY2022 results, and particularly in the results of its fourth quarter. In Q4, core EPS was $1.33 which represents a ~26% year-over-year decline. In fact, most of the key business indicators were down in the fourth quarter. Revenue was down ~4%, net revenue decreased ~11%, core EBITDA came in ~30% lower, GAAP EPS suffered a ~88% decline, and core EPS was ~26% lower.
Still, given the headwinds, things could have been much worse. These headwinds include a weakening economy, rising interest rates, market declines, and constrained credit availability. Despite these headwinds, the company was able to slightly exceed expectations thanks to strength in the Advisory and Global Workplace Solutions segments. Looking at the whole year, things are not as bad, with full year core EPS growing ~7% to $5.69, net revenue up ~10%, and Core EBITDA slightly higher. CBRE stock also managed to deliver a ~75% free cash flow conversion.
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