CBRE Group, Inc. (NYSE:CBRE) Q2 2023 Earnings Call Transcript

Patrick O’Shaughnessy: Hey, good morning. The development in process pipeline ticked down a little bit in the second quarter, probably not a huge surprise. Given the current macro, would you expect that in-process pipeline to kind of be flattish for the next few quarters if it doesn’t really make sense to kick off new projects?

Bob Sulentic: Flattish or potentially grow, Patrick, because what happens is they stay in process to you sell them. And if we start new projects that, they’ll move from pipeline to in-process.

Patrick O’Shaughnessy: Got it. Thank you. And then Hana – at least Hana segment overhead is now a net positive to operating income over the past 12 months. What are your updated expectations and outlook for that business?

Bob Sulentic: Yes. Hana is kind of a net for us now is the best we could explain it. We’ve invested in Industrious. That’s our quote flex bet. It’s a very good company. We’re bullish on Flex as an opportunity. We’ve got a 40% position with some additional debt in the business, and we’re very supportive of Jamie Hodari and his team as they grow that business, and Hana is fading away.

Emma Giamartino: And Patrick, I’ll add just a reminder that when we invest in Industrious, we actually sold our operations, the core of our operations from Hana to Industrious. And so it Industrious operates all those properties today.

Patrick O’Shaughnessy: Got it. Appreciate it. Thank you.

Operator: Thank you. Ladies and gentlemen, we have reached the end of our question-and-answer session. I would now like to hand the call back to Bob Sulentic for closing remarks. Please go ahead, sir.

Bob Sulentic: Thanks, everyone, for joining us, and we’ll talk to you again at the end of the third quarter.

Operator: Thank you, sir. Ladies and gentlemen, that then concludes today’s conference. Thank you for joining us. You may now disconnect your lines.