CBRE Group Inc.

The positive outlook reflects our view that CBRE will operate with net debt to EBITDA of 1.0x-1.5x over the next 12-24 months while maintaining its market-leading position in CRE services. We could revise our outlook to stable over the next 12-24 months if the company embarks on a large debt-financed acquisition or repurchases shares at a more aggressive pace than we expect, or if operating performance materially weakens, such that leverage rises above 1.5x. We could raise the ratings over the next 12-24 months if CBRE continues to operate with leverage well below 1.5x. An upgrade would also be predicated on the firm maintaining its market-leading position, stable operating performance through an economic downturn, and no new large-scale acquisitions. U.S.

...CBRE Group Inc.'s No. 1 global market position in commercial real estate (CRE) services and its recurring revenue should lead to steady cash flow. S&P Global Ratings expects CBRE to maintain its leading market position in CRE services and expects demand for property and facilities management to propel revenue growth. We expect improving macroeconomic trends will lead to growth in the advisory leasing and capital markets segments as well. The company surpassed pre-pandemic EBITDA much faster than we anticipated on stronger-than-expected operating performance, lowering leverage despite a decline in earnings during the pandemic-driven contraction in 2020. For full-year 2022, CBRE expects core earnings growth in the low to midteens across its various business segments. While office leasing is still below pre-pandemic levels in the U.S., originations have surpassed 2019 levels in Europe, the Middle East, and Africa and Asia-Pacific. We expect further revenue growth to stem from strong momentum...

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