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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from _______________ to _______________
Commission File Number
001-32205
___________________________________________________________
cbre-20220331_g1.jpg
CBRE GROUP, INC.
(Exact name of registrant as specified in its charter)
___________________________________________________________
Delaware94-3391143
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
2100 McKinney Avenue, Suite 1250
Dallas, Texas
75201
(Address of principal executive offices)(Zip Code)
(214) 979-6100
(Registrant's telephone number, including area code)
_____________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share“CBRE”New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
The number of shares of Class A common stock outstanding at May 3, 2022 was 326,860,554.



FORM 10-Q
March 31, 2022
TABLE OF CONTENTS
Page


PART I – FINANCIAL INFORMATION
Item 1.    Financial Statements
CBRE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share data)
March 31,
2022
December 31,
2021
ASSETS
Current Assets:
Cash and cash equivalents$1,657,336 $2,430,951 
Restricted cash135,293 108,830 
Receivables, less allowance for doubtful accounts of $93,667 and $97,588 at
   March 31, 2022 and December 31, 2021, respectively
5,073,224 5,150,473 
Warehouse receivables1,194,800 1,303,717 
Prepaid expenses333,672 333,885 
Contract assets352,064 338,749 
Income taxes receivable43,758 44,104 
Other current assets543,400 371,656 
Total Current Assets9,333,547 10,082,365 
Property and equipment, net of accumulated depreciation and amortization of $1,330,999 and $1,288,509 at
   March 31, 2022 and December 31, 2021, respectively
792,735 816,092 
Goodwill4,977,082 4,995,175 
Other intangible assets, net of accumulated amortization of $1,741,193 and $1,725,280 at
   March 31, 2022 and December 31, 2021, respectively
2,338,548 2,409,427 
Operating lease assets1,030,391 1,046,377 
Investments in unconsolidated subsidiaries (with $713,871 and $813,031 at fair value at
   March 31, 2022 and December 31, 2021, respectively)
1,124,339 1,196,088 
Non-current contract assets134,324 135,626 
Real estate under development361,852 326,416 
Non-current income taxes receivable37,907 33,150 
Deferred tax assets, net142,748 157,032 
Other assets, net869,679 875,743 
Total Assets$21,143,152 $22,073,491 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses$2,881,910 $2,916,331 
Compensation and employee benefits payable1,579,118 1,539,291 
Accrued bonus and profit sharing906,343 1,694,590 
Operating lease liabilities220,730 232,423 
Contract liabilities295,642 280,659 
Income taxes payable268,823 246,035 
Short-term borrowings:
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase)1,172,125 1,277,451 
Revolving credit facility210,000  
Other short-term borrowings30,826 32,668 
Total short-term borrowings1,412,951 1,310,119 
Other current liabilities224,327 199,421 
Total Current Liabilities7,789,844 8,418,869 
Long-term debt, net of current maturities1,526,212 1,538,123 
Non-current operating lease liabilities1,104,812 1,116,562 
Non-current tax liabilities124,348 144,884 
Non-current income taxes payable54,761 54,761 
Deferred tax liabilities, net310,104 405,258 
Other liabilities950,246 1,035,917 
Total Liabilities11,860,327 12,714,374 
Commitments and contingencies  
Equity:
CBRE Group, Inc. Stockholders’ Equity:
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 329,555,402 and 332,875,959 shares
   issued and outstanding at March 31, 2022 and December 31, 2021, respectively
3,296 3,329 
Additional paid-in capital409,187 798,892 
Accumulated earnings8,758,928 8,366,631 
Accumulated other comprehensive loss(701,440)(640,659)
Total CBRE Group, Inc. Stockholders’ Equity8,469,971 8,528,193 
Non-controlling interests812,854 830,924 
Total Equity9,282,825 9,359,117 
Total Liabilities and Equity$21,143,152 $22,073,491 
The accompanying notes are an integral part of these consolidated financial statements.
1

CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except share and per share data)
Three Months Ended
March 31,
20222021
Revenue$7,332,933 $5,938,879 
Costs and expenses:
Cost of revenue5,752,194 4,719,546 
Operating, administrative and other1,065,996 828,327 
Depreciation and amortization149,032 122,078 
Asset impairments10,351  
Total costs and expenses6,977,573 5,669,951 
Gain on disposition of real estate21,592 156 
Operating income376,952 269,084 
Equity income from unconsolidated subsidiaries42,871 83,594 
Other (loss) income(14,464)2,732 
Interest expense, net of interest income12,826 10,106 
Income before (benefit from) provision for income taxes392,533 345,304 
(Benefit from) provision for income taxes(3,738)76,327 
Net income396,271 268,977 
Less: Net income attributable to non-controlling interests3,974 2,775 
Net income attributable to CBRE Group, Inc.$392,297 $266,202 
Basic income per share:
Net income per share attributable to CBRE Group, Inc.$1.18 $0.79 
Weighted average shares outstanding for basic income per share331,925,104 335,860,494 
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.$1.16 $0.78 
Weighted average shares outstanding for diluted income per share337,140,325 339,580,504 
The accompanying notes are an integral part of these consolidated financial statements.
2

CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
Three Months Ended
March 31,
20222021
Net income$396,271 $268,977 
Other comprehensive loss:
Foreign currency translation loss(81,285)(52,346)
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax108 107 
Unrealized holding losses on available for sale debt securities, net of tax(1,731)(678)
Other, net100  
Total other comprehensive loss(82,808)(52,917)
Comprehensive income313,463 216,060 
Less: Comprehensive (loss) income attributable to non-controlling interests(18,053)2,667 
Comprehensive income attributable to CBRE Group, Inc.$331,516 $213,393 
The accompanying notes are an integral part of these consolidated financial statements.
3

CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

Three Months Ended
March 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$396,271 $268,977 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization149,032 122,078 
Amortization of financing costs1,663 1,609 
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets(28,422)(72,045)
Asset impairments10,351  
Net realized and unrealized losses (gains), primarily from investments16,690 (2,732)
Provision for doubtful accounts3,303 731 
Net compensation expense for equity awards36,863 35,786 
Equity income from unconsolidated subsidiaries(42,871)(83,594)
Distribution of earnings from unconsolidated subsidiaries146,743 32,986 
Proceeds from sale of mortgage loans3,336,084 4,643,685 
Origination of mortgage loans(3,221,312)(3,909,261)
Decrease in warehouse lines of credit(105,326)(708,491)
Tenant concessions received2,114 1,578 
Purchase of equity securities(8,902)(2,398)
Proceeds from sale of equity securities20,750 3,017 
Increase in real estate under development(41,358)(15,901)
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets)(156,061)161,221 
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)(108,355)(245,522)
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing(725,216)(469,213)
Decrease in net income taxes receivable/payable17,722 41,660 
Other operating activities, net(93,270)2,381 
Net cash used in operating activities(393,507)(193,448)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(42,056)(29,597)
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired(16,792)(2,726)
Contributions to unconsolidated subsidiaries(44,387)(168,392)
Distributions from unconsolidated subsidiaries12,101 6,795 
Other investing activities, net(4,487)16 
Net cash used in investing activities(95,621)(193,904)
The accompanying notes are an integral part of these consolidated financial statements.
4

CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
(Dollars in thousands)

Three Months Ended
March 31,
20222021
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility210,000  
Proceeds from notes payable on real estate19,368 23,737 
Repayment of notes payable on real estate(13,954) 
Proceeds from issuance of 2.500% senior notes
 492,255 
Repurchase of common stock(367,863)(61,108)
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date)(13,556)(512)
Units repurchased for payment of taxes on equity awards(31,395)(34,883)
Non-controlling interest contributions210 72 
Non-controlling interest distributions(213)(2,652)
Other financing activities, net(11,606)(14,943)
Net cash (used in) provided by financing activities(209,009)401,966 
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash(49,015)(52,154)
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH(747,152)(37,540)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD2,539,781 2,039,247 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD$1,792,629 $2,001,707 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$12,826 $15,080 
Income tax payments, net$88,649 $38,508 
The accompanying notes are an integral part of these consolidated financial statements.
5

CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(Dollars in thousands)

CBRE Group, Inc. Stockholders'
Class A
common
stock
Additional
paid-in
capital
Accumulated
earnings
Accumulated
other
comprehensive loss
Non-
controlling
interests
Total
Balance at December 31, 2021$3,329 $798,892 $8,366,631 $(640,659)$830,924 $9,359,117 
Net income— — 392,297 — 3,974 396,271 
Net compensation expense for equity awards— 36,863 — — — 36,863 
Units repurchased for payment of taxes on equity awards— (31,395)— — — (31,395)
Repurchase of common stock(42)(390,821)— — — (390,863)
Foreign currency translation loss— — — (59,258)(22,027)(81,285)
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax— — — 108 — 108 
Unrealized holding losses on available for sale debt securities, net of tax— — — (1,731)— (1,731)
Contributions from non-controlling interests— — — — 210 210 
Distributions to non-controlling interests— — — — (213)(213)
Other9 (4,352)— 100 (14)(4,257)
Balance at March 31, 2022$3,296 $409,187 $8,758,928 $(701,440)$812,854 $9,282,825 

CBRE Group, Inc. Stockholders'
Class A
common
stock
Additional
paid-in
capital
Accumulated
earnings
Accumulated
other
comprehensive loss
Non-
controlling
interests
Total
Balance at December 31, 2020$3,356 $1,074,639 $6,530,057 $(529,726)$41,761 $7,120,087 
Net income— — 266,202 — 2,775 268,977 
Net compensation expense for equity awards— 35,786 — — — 35,786 
Units repurchased for payment of taxes on equity awards— (34,883)— — — (34,883)
Repurchase of common stock(8)(64,134)— — — (64,142)
Foreign currency translation loss— — — (52,238)(108)(52,346)
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax— — — 107 — 107 
Unrealized holding losses on available for sale debt securities, net of tax— — — (678)— (678)
Contributions from non-controlling interests— — — — 72 72 
Distributions to non-controlling interests— — — — (2,652)(2,652)
Other11 1,879 — — (834)1,056 
Balance at March 31, 2021$3,359 $1,013,287 $6,796,259 $(582,535)$41,014 $7,271,384 
The accompanying notes are an integral part of these consolidated financial statements.
6

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.    Basis of Presentation
Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2021, which are included in our 2021 Annual Report on Form 10-K (2021 Annual Report), filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our 2021 Annual Report for further discussion of our significant accounting policies and estimates.
Considerations Related to the Covid-19 Pandemic and the war in Ukraine
From 2010 to early 2020, commercial real estate markets had generally been characterized by increased demand for space, falling vacancies, higher rents and strong capital flows, leading to solid property sales and leasing activity. This healthy backdrop changed abruptly in the first quarter of 2020 with the emergence of the novel coronavirus (Covid-19) and resultant sharp contraction of economic activity across much of the world. There was a significant impact on commercial real estate markets, as many property owners and occupiers put transactions on hold and withdrew existing mandates, sharply reducing sales and leasing volumes. Subsequently commercial real estate markets recovered strongly beginning in 2021 and continuing into the first quarter of 2022. However, it is expected the pandemic has structurally changed the utilization of many types of commercial real estate, which is likely to impact our business. In addition, Russia’s invasion of Ukraine on February 24, 2022 and the ongoing military conflict poses heightened risk, particularly for our operations in central and eastern Europe, and could exacerbate macro-economic challenges, including supply chain disruptions and persistently high inflation, as well as adversely affect business and/or consumer sentiment and overall economic growth. As a result of this conflict, we elected to exit most of our business in Russia, although we have a limited number of employees managing facilities for existing global clients that continue to operate there.
See Note 10 (Commitments and Contingencies) for further discussion of Covid-19 considerations.
Financial Statement Preparation
The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 and the war in Ukraine may have on our business. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.
7

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
2.    New Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In July 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-05, “Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842).” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We adopted ASU 2021-05 in the first quarter of 2022 and the adoption did not have a material impact on our consolidated financial statements and related disclosures.
In November 2021, the FASB issued ASU 2021-10, “Disclosures by Business Entities about Government Assistance.” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We adopted ASU 2021-10 prospectively in the first quarter of 2022 and do not expect it to have a material impact on our annual disclosures.
Recent Accounting Pronouncements Pending Adoption
In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform: Scope,” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact.
In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method." This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact.
In March 2022, the FASB issued ASU 2022-02, " Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures." This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restrucuturings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact.
8

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
3.    Turner & Townsend Acquisition
On November 1, 2021, we acquired a 60% ownership interest in, and entered into a strategic partnership with Turner & Townsend Holdings Limited (Turner & Townsend). Turner & Townsend is a leading professional services company specializing in program management, project management, cost and commercial management and advisory services across the real estate, infrastructure and natural resources sectors, and is reported in our Global Workplace Solutions segment. The Turner & Townsend acquisition was funded with cash on hand. The preliminary purchase accounting has been recorded in the accompanying consolidated financial statements (with no changes in the first quarter of 2022). The excess purchase price over the fair value of net assets acquired and non-controlling interest has been recorded to goodwill. The goodwill arising from the Turner & Townsend acquisition consists largely of the synergies and opportunities to deliver a premier project, program and cost management services. The goodwill recorded in connection with the Turner & Townsend acquisition was not deductible for tax purposes. The purchase price allocation for the business combination is preliminary, primarily for intangibles, and subject to change within the respective measurement period which will not extend beyond one year from the acquisition date.
4.    Warehouse Receivables & Warehouse Lines of Credit
Our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. At March 31, 2022 and December 31, 2021, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage-backed securities that will be secured by the underlying loans.
A rollforward of our warehouse receivables is as follows (dollars in thousands):
Beginning balance at December 31, 2021$1,303,717 
Origination of mortgage loans3,221,312 
Gains (premiums on loan sales)8,134 
Proceeds from sale of mortgage loans:
Sale of mortgage loans(3,327,950)
Cash collections of premiums on loan sales(8,134)
Proceeds from sale of mortgage loans(3,336,084)
Net decrease in mortgage servicing rights included in warehouse receivables(2,279)
Ending balance at March 31, 2022$1,194,800 
9

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following table is a summary of our warehouse lines of credit in place as of March 31, 2022 and December 31, 2021 (dollars in thousands):
March 31, 2022December 31, 2021
LenderCurrent
Maturity
PricingMaximum
Facility
Size
Carrying
Value
Maximum
Facility
Size
Carrying
Value
JP Morgan Chase Bank, N.A. (JP Morgan) (1)
10/17/2022
daily floating rate SOFR rate plus 1.60%, with a SOFR adjustment rate of 0.05%
$1,335,000 $840,732 $1,335,000 $742,124 
JP Morgan10/17/2022
daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05%
15,000 7,519 15,000 4,326 
Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2)
Cancelable
anytime
daily one-month LIBOR plus 1.45%, with a
LIBOR floor of 0.25%
650,000 109,961 650,000 133,084 
TD Bank, N.A. (TD Bank) (3)
7/15/2022
daily floating rate LIBOR plus 1.30%
800,000 85,873 800,000 217,672 
Bank of America, N.A. (BofA) (4)
5/25/2022
daily floating rate SOFR rate plus 1.30%, with a
SOFR adjustment rate of 0.11%
350,000 93,446 350,000 178,600 
BofA (5)
5/25/2022
daily floating rate SOFR rate 1.30%, with a
SOFR adjustment rate of 0.11%
250,000  250,000  
MUFG Union Bank, N.A. (Union Bank) (6)
6/28/2022
daily floating rate LIBOR plus 1.30%
200,000 34,594 200,000 1,645 
$3,600,000 $1,172,125 $3,600,000 $1,277,451 
_______________________________
(1)Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,335.0 million. This facility has a revised maturity date of October 17, 2022 and a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, with a SOFR adjustment rate of 0.05%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%, with a SOFR adjustment rate of 0.05%.
(2)Effective January 15, 2021, the maximum facility was increased to $650.0 million.
(3)Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of March 31, 2022, the uncommitted $400.0 million temporary line of credit was not utilized.
(4)The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.75%, with a LIBOR floor of 0.75%. Effective January 1, 2022, daily floating rate LIBOR was replaced with daily floating rate SOFR, with an adjustment rate of 0.11%. As of March 31, 2022, the sublimit borrowing has not been utilized.
(5)Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating SOFR plus 1.30%, with a SOFR adjustment rate of 0.11%, and a maturity date of May 25, 2022.
(6)Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30%, removing the LIBOR floor, and a maturity date of June 28, 2022.
During the three months ended March 31, 2022, we had a maximum of $1.5 billion of warehouse lines of credit principal outstanding.
10

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
5.    Variable Interest Entities (VIEs)

We hold variable interests in certain VIEs primarily in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements.

As of March 31, 2022 and December 31, 2021, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands):
March 31,
2022
December 31,
2021
Investments in unconsolidated subsidiaries$105,169 $109,530 
Other current assets 4,219 
Co-investment commitments87,156 90,328 
Maximum exposure to loss$192,325 $204,077 
6.    Fair Value Measurements

Topic 820 of the FASB ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2021 Annual Report.
11

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (dollars in thousands):
As of March 31, 2022
Fair Value Measured and Recorded Using
Level 1Level 2Level 3Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities$6,832 $ $ $6,832 
Debt securities issued by U.S. federal agencies 10,146  10,146 
Corporate debt securities 47,806  47,806 
Asset-backed securities 3,193  3,193 
Collateralized mortgage obligations 592  592 
Total available for sale debt securities6,832 61,737  68,569 
Equity securities42,488   42,488 
Investments in unconsolidated subsidiaries163,460 14,965 367,855 546,280 
Warehouse receivables 1,194,800  1,194,800 
Total assets at fair value$212,780 $1,271,502 $367,855 $1,852,137 
Liabilities
Other liabilities  1,322 1,322 
Total liabilities at fair value$ $ $1,322 $1,322 
As of December 31, 2021
Fair Value Measured and Recorded Using
Level 1Level 2Level 3Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities$7,002 $ $ $7,002 
Debt securities issued by U.S. federal agencies 9,276  9,276 
Corporate debt securities 50,897  50,897 
Asset-backed securities 3,428  3,428 
Collateralized mortgage obligations 725  725 
Total available for sale debt securities7,002 64,326  71,328 
Equity securities69,880   69,880 
Investments in unconsolidated subsidiaries229,900 23,741 406,690 660,331 
Warehouse receivables 1,303,717  1,303,717 
Total assets at fair value$306,782 $1,391,784 $406,690 $2,105,256 
Liabilities
Other liabilities  10,700 10,700 
Total liabilities at fair value$ $ $10,700 $10,700 
Fair value measurements for our available for sale debt securities are obtained from independent pricing services which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument's terms and conditions.
The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred on the valuation date, at the mean of the bid and ask prices on such date.
The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At March 31, 2022 and December 31, 2021, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the
12

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
issuance and purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (See Note 4). These assets are classified as Level 2 in the fair value hierarchy as a substantial majority of inputs are readily observable.
As of March 31, 2022 and December 31, 2021, investments in unconsolidated subsidiaries at fair value using NAV were $167.6 million and $152.7 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above.
The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands):
Investment in Unconsolidated SubsidiariesOther liabilities
Balance as of December 31, 2021$406,690 $10,700 
Transfer in  
Net change in fair value(38,835) 
Purchases/ Additions (9,378)
Balance as of March 31, 2022$367,855 $1,322 
Net change in fair value, included in the table above, is reported in Net income as follows:
Category of Assets/Liabilities using Unobservable InputsConsolidated Statements of Operations
Investments in unconsolidated subsidiariesEquity income from unconsolidated subsidiaries
Other liabilitiesOther income
The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments:
Valuation TechniqueUnobservable InputRange
Investment in unconsolidated subsidiariesDiscounted cash flowDiscount rate
14% - 25%
Monte CarloVolatility69 %
Risk free interest rate2.4 %
Other liabilitiesDiscounted cash flowDiscount rate25.0 %
During the three months ended March 31, 2022, the company exited its Advisory Services business in Russia in response to the Ukraine conflict. We recorded $10.4 million in non-cash asset impairment charges (primarily comprised of receivables), on a pretax basis, related to the expected disposal of the net assets and anticipated release of non-cash cumulative foreign currency translation losses associated with the disposal group.
There were no significant non-recurring fair value measurements recorded during the three months ended March 31, 2022 and 2021.
FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows:
Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments.
Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value.
Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 4).
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CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed above. It includes our equity investment and related interests in both public and non-public entities. Our ownership of common shares in Altus Power Inc. (Altus) is considered level 1 and is measured at fair value using a quoted price in an active market. Private placement warrants related to Altus are considered level 2 and measured at fair value using observable inputs for similar assets in an active market. Our ownership of alignment shares of Altus and our investment in Industrious and certain other non-controlling equity investments are considered level 3 which are measured at fair value using a Monte Carlo and a discounted cash flow approach, respectively. The valuation of Altus’ common shares, private placement warrants and alignment shares are dependent on its stock price which could be volatile and subject to wide fluctuations in response to various market conditions.
Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value.
Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value.
Other liabilities - Represents the net fair value of the commitment related to a revolving facility in our Advisory Services segment. Valuations are based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market comparables and recovery assumptions.
Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets, and our revolving credit facilities. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Notes 4 and 8).
Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $440.4 million and $451.8 million at March 31, 2022 and December 31, 2021, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $442.1 million and $454.5 million at March 31, 2022 and December 31, 2021, respectively (see Note 8).
Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 4.875% senior notes was $628.1 million and $671.7 million at March 31, 2022 and December 31, 2021, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and discount, totaled $595.7 million and $595.5 million at March 31, 2022 and December 31, 2021, respectively. The estimated fair value of our 2.500% senior notes was $445.5 million and $502.1 million at March 31, 2022 and December 31, 2021. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $488.4 million and $488.1 million at March 31, 2022 and December 31, 2021.
Notes Payable on Real Estate - As of March 31, 2022 and December 31, 2021, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $53.6 million and $48.2 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value.

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CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)

7.    Investments in Unconsolidated Subsidiaries

Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 50.0%. The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands):
Investment typeMarch 31, 2022December 31, 2021
Real estate investments$502,983 $453,813 
Investment in Altus Power, Inc.:
Class A common stock (22 million shares)
163,460 229,900 
Alignment shares (1)
73,016 114,727 
Private placement warrants (2)
14,965 23,741 
Subtotal251,441368,368
Other (3)
369,915 373,907
Total investment in unconsolidated subsidiaries$1,124,339 $1,196,088 
_______________
(1)The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2022 (the first measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, which were issued on April 11, 2022.
(2)These warrants entitle us to purchase one share of Altus Class A common stock at $11.00 per share, subject to adjustment.
(3)Consists of our investments in Industrious and other non-public entities.
Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands):
Three Months Ended
March 31,
20222021
Revenue$581,115 $555,856 
Operating income273,693 275,462 
Net income (1)
1,452,847 368,217 
_______________
(1)Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income.

15

CBRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
8.    Long-Term Debt and Short-Term Borrowings

Long-Term Debt

Long-term debt consists of the following (dollars in thousands):
March 31,
2022
December 31,
2021
Senior term loan, with interest of 0.75% plus EURIBOR adj, due in full at maturity on December 20, 2023
$442,625 $455,166 
4.875% senior notes due in 2026, net of unamortized discount
598,025