4. CBRE Group, Inc. (NYSE:CBRE)
Number of Hedge Fund Holders: 54
CBRE Group, Inc. (NYSE:CBRE) functions as a commercial real estate services and investment company operating in the U.S., the U.K., and internationally. Its Advisory Services segment offers strategic advice for leasing office, industrial, and retail spaces, along with property sales, mortgage financing, management services, and valuation.
The Global Workplace Solutions segment provides facilities management and project management services under the Turner & Townsend brand. The Real Estate Investments segment delivers investment management services under the Trammell Crow Company and Telford Homes brands.
During Mad Money’s episode, in relation to the company, Cramer said:
“We’ve gotten used to people coming on air and warning us about the looming demise of commercial real estate. Well, someone better tell the people at CBRE, which does everything from commercial real estate advisory and transaction services to valuation property management. The fact that this stock could be up almost 40% for the quarter tells me, maybe we should think twice before being so negative on commercial real estate.”
In the second quarter, CBRE Group (NYSE:CBRE) made significant acquisitions totaling approximately $290.9 million, primarily focused on Direct Line Global, a leading provider of technical facilities management services catering to data center owners and operators.
The acquisition strengthens the company’s service offerings, especially for some of the world’s largest technology companies in hyperscale, co-location, and enterprise markets.
Additionally, the giant acquired a provider of local facilities management technical services based in Canada during Q2, further broadening its capabilities in that region. During the quarter, CBRE Group (NYSE:CBRE) also announced plans to merge its project management business with Turner & Townsend.
The new combined business is expected to be reported as a distinct business segment starting in 2025. The integration is expected to create a premier project, program, and cost management business, with over 20,000 employees serving clients across more than 60 countries.
Third Avenue Management stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its first quarter 2024 investor letter:
“Data Center Services: As data centers have evolved into a distinct sub-set of many real estate mandates, the services provided for “more traditional” property types have expanded into this niche sector. As a result, some of the leading real estate services companies (including Fund holdings CBRE Group, Inc. (NYSE:CBRE), JLL, and Savills plc) have dedicated teams with the capabilities to support facilities management, leasing, advisory, investment sales, and other solutions. Such activity requires limited capital investment but can generate meaningful recurring revenues and transactional fees. For example, CBRE manages approximately 700 data centers globally and has advised on more than $6.0 billion of data center transactions.”
