And because many, many people are on the sidelines, many developers are on the sidelines, we have the CBRE parent company balance sheet available to us. We’ve been able to secure a good number of development opportunities with really good spreads between current cap rates and yields on the projects. So that out in the future, we think we’re well positioned for that business. And in Emma’s comments, you might have noticed that she said, we’ve got hundreds of millions of dollars of profits captured in that in-process and pipeline portfolio development deals. We’re quite excited about that.
Michael Griffin: Great. Thats it for me. Thanks for the time.
Operator: Thank you. Next question is coming from Alex Kramm from UBS. Your line is now live.
Alex Kramm: Yes. Hey, good morning, everyone. And maybe nitpicky here a little bit, but can you just talk about your 2025 commentary from this morning, I think a quarter ago, you were still talking about achieving records. Now I think you’re just hoping to get back to peak. So not sure if, it’s the environment has changed or adjusting your I guess outlook incorporates a more conservative recovery in general. So maybe just compare and contrast, how we should be thinking about your long-term outlook as you go into 2025?
Emma Giamartino: So I want to be clear that we see a — we have strong visibility into returning to our peak level of EPS in 2025. And that confidence has not declined since last quarter — is at least equal to and potentially slightly above especially, if we achieve our expectations for 2024. And I can simply break down the components of how we’ll get there between our Resilient SOP and our transactional SOP. Within our resilience line of business, like I said before, we expect $1.8 billion of SOP this year, that should continue to grow at least a 10% rate next year. And we have a high level of confidence in delivering that outcome. And then on the transactional side, we do not need our transactional SOPs to return anywhere near to peak levels of earnings like we did in 2022 and they don’t even need to return to our level of transactional SOP in 2019.
So hopefully, that puts some perspective on our ability to achieve that outcome. The main risk is that the recovery would get delayed this year and it would make that hurdle on the transactional side slightly higher next year.
Alex Kramm: All right. Fair enough. And then just maybe a quick follow-up on the cost base. I mean, it looks — I mean obviously, you guys cost program in place. Since you’ve done a lot over the last few years, can you maybe just remind us where you think incrementals are on the transactional side and break it out maybe between capital markets and leasing, as we had potentially a recovery here?
Emma Giamartino: So overall, on our transactional business, our incremental margins are in the low to mid-30s. This is both across capital markets and leasing, and to put some more context around that a 5% change in leasing, results in a 3% delta in EPS. And on the sales side, a 5% change in sales would be a 2% change in EPS.
Alex Kramm: Make sense. Thanks.
Operator: Thank you. We reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further closing comments.
Bob Sulentic: Thanks very much, everyone, and we look forward to connecting with you again in 90 days.
Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
