CBRE Group Inc

Greetings and welcome to the first quarter 2026 CBRE earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shadneet Luthra. Thank you. You may begin.

Good morning, everyone, and welcome to CBRE's first quarter 2026 earnings conference call. Earlier today, we posted a presentation deck on our website that you can use to follow along with our prepared remarks and an Excel file that contains additional supplemental material. Today's presentation contains forward-looking statements, including without limitation, statements concerning our business outlook, business plan, seasonality, and capital allocation strategy, as well as our earnings and cash flow outlook. These statements involve risks and uncertainties that may cause actual results and trends to differ materially. For a full discussion of the risks and other factors that may impact these statements, please refer to this morning's earnings release in our SEC file. We've provided reconciliations of the non-GAAP financial measures discussed on our call to the most directly comparable GAAP measures, together with explanations of these measures in our presentation deck appendix. Throughout our remarks, when we cite financial performance relative to expectations, we are referring to actual results against the outlook we provided on our fourth quarter 2025 earnings call in February, unless otherwise noted. Also, as a reminder, our resilient businesses include facilities management, critical infrastructure services, property management, project management, loan servicing, valuation, other portfolio services, and recurring investment management fees. Our transactional businesses comprise property sales, leasing, mortgage origination, carried interest and incentive fee in the investment management business, and development fee. Finally, beginning this quarter, our financial results reflect the financial reporting changes we discussed on our fourth quarter earnings call and in our March 24th 8K. Prior period results have been recast accordingly. I'm joined on today's call by Bob Selentik, our chair and CEO, and Emma Giammartino, our chief financial officer. Now, please turn to slide three as I turn the call over to Bob.

Thank you, Chaudhny, and good morning, everyone. CBRE continued to generate strong financial results while making important strategic gains during the first quarter of 2026. Together, our three services segments, advisory, building operations and experience, and project management grew revenue by 20% and operating profit by nearly 30%. Additionally, profits from our data center land development program were delivered earlier in the year than anticipated. Our resilient businesses grew revenue by 18%. This reflects our strategy to grow businesses that are resistant to real estate cycles or benefit from secular tailwinds, which support strong through-cycle growth. Simultaneously, our transactional businesses achieve their highest growth rate of the current cycle at 22%, reflecting our strategy to maintain and extend our market leadership position in sales, leasing, financing, and real estate development. These businesses generate excellent margins and cash flow while providing data and market insights that help us across CBRE. Our work related to infrastructure assets has become a source of significant profits and growth spanning all four business segments. This consists of the services we perform for data centers, as well as power, telecom, and transportation assets, among others. This is also central to our strategy. We generated more than $3 billion of total revenue from infrastructure activities in 2025 and nearly $950 million in the first quarter. Within the BOE segment specifically, we've created a dedicated critical infrastructure services business line. This business line includes work for data centers along with the telecom and power assets captured in the Pierce business we acquired last year. Revenue in this business line totaled $1.7 billion in 2025 and $580 million in the first quarter and is expected to grow in excess of 60% this year. The strong momentum we saw during the first quarter in infrastructure services and across other parts of our business has continued in the early weeks of the second quarter. Considering this, we are upgrading our EPS expectations to a range of $7.60 to $7.80 for the year, which would result in more than 20% growth at the midpoint of the range. This assumes that the economic environment remains supportive. Emma will describe our outlook in more detail after she reviews the quarter. Emma?