\n| \n (1)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nLocal currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (2)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nNet revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (3)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nCore adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the acquisition of Telford Homes plc in 2019 (the Telford acquisition) (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, asset impairments, provision associated with Telford\u2019s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital \u201cVC\u201d related investments). Note: Core adjusted EPS has been renamed core EPS for simplicity.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (4)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nCore EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, provision associated with Telford\u2019s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. It also removes the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital \u201cVC\u201d related investments).\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nFree cash flow is calculated as cash flow from operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (6)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nSegment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, provision associated with Telford\u2019s fire safety remediation efforts, and costs associated with efficiency and cost-reduction initiatives. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (7)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nSegment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (8)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nRepresents line of business profitability\/losses, as adjusted.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (9)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nRepresents difference between net fair value adjustments, pre-tax, recorded on strategic non-core investments of $182.0 million during the three months ended September 30, 2022, as compared to $4.5 million during the three months ended September 30, 2021.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (10)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nFor the three months ended September 30, 2022, the company incurred capital expenditures of $64.3 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $4.9 million (reflected in the operating section of the condensed consolidated statement of cash flows).\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (11)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nNet debt is calculated as cash and cash equivalents less total debt (excluding non-recourse debt).\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (12)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nCash represents cash and cash equivalents (excluding restricted cash).\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n CBRE GROUP, INC.<\/i><\/b><\/p>\n OPERATING RESULTS<\/i><\/b><\/p>\n FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021<\/i><\/b><\/p>\n (in thousands, except share and per share data)<\/i><\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n September 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Nine Months Ended<\/b><\/p>\n September 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n | | | | | | | | | | | | | | |