Jade Rahmani

Giamartino walked segment by segment, flagged advisory moderating from this year and REI roughly flat, and said leverage exists but is not substantial.

Sulentic addressed the disintermediation risk head-on across transactions, project management and facilities management, arguing labor intensity and platform tools protect the work.

Bob acknowledged AI cost control challenges without quantifying adoption percentage. COO Vikram Kohli oversees AI usage and cost management. Taking a measured approach where benefit must balance cost before expanding.

Emma confirmed no pipeline slowdown with Q2 pipeline stronger than beginning-of-year expectations. Activity continues to grow as long as 10-year remains around 4% to 4.5%.

Emma confirmed no fraud in CBRE's loan portfolio, citing rigorous underwriting. Loan loss reserves at ~$70M increase steadily with book growth but no spikes seen.

Emma said BOE margins flat in 2026 due to proactive growth investments (data center solutions, Industrious, local Americas) offsetting operating leverage, with incremental expansion expected beyond 2026. Project Management expects some margin expansion.

Bob attributed growth to large leases in premium buildings plus smaller lease renewals in second-generation spaces. Expected vacancy to start declining by midyear next year.

Emma provided segment-level outlook: Advisory near peak margins and sustainable; BOE delivering margin expansion this year with more synergies next year; Project Management also expecting incremental expansion from cost synergies.

Bob confirmed demand spreading from Class A to lower-quality buildings being upgraded, with new office development starting. Cited a CBRE-owned Dallas site where large users are now interested, something that wouldn't have happened 3-4 years ago.

Emma clarified Q1 slightly above and Q2 slightly below expectations due to timing; combined H1 tracking at 85% FCF conversion, high end of target range.

Bob detailed extensive infrastructure exposure across Turner & Townsend, a $10 billion AUM infrastructure fund, Trammell Crow data center land work, and 700-800 managed data centers.

Bob noted Turner & Townsend at capacity despite some hyperscaler pullback; Trammell Crow development pipeline well protected by GMP contracts and contingencies against tariff-related cost increases.

Emma attributed Advisory margins to higher-margin transaction revenue beating expectations; BOE margins driven by continued run-rate benefit from mid-2024 cost savings.

Emma confirmed GWS restructuring is complete with costs dropping to near-zero in 2025, tax rate normalizing to 22%, and $500M Q4 buyback plus remainder in Jan-Feb.

Paul said DHI aims to hold total rental inventory around $3 billion, split $2.7 billion multifamily and about $320 million build-for-rent.

Wheat said valuation is a component of distribution strategy but committed to distributing majority of cash flow. Dividend kept consistent with reluctance to reduce; share repurchase is the toggle mechanism.

Wheat said last 3 quarters had one-off warranty/litigation events. This quarter's 40bp benefit from favorable litigation outcome plus lower warranty costs. Expects normal 40-50bp negative impact going forward.

Romanowski said anything helping buyers reach monthly payment or down payment thresholds would be helpful. First-time buyers need to solve for both. Impact depends on policy details.

Murray said it depends on the community, where pace drives better returns they'll pass savings through, where supply is scarce they may improve margins. A balanced approach.

Romanowski said they still solve for monthly payment. Lower market rates reduce buydown cost but they may also step down further if needed. Expects a balance of both outcomes.

Romanowski said buyer preference still favors lower rate over base price cuts as it produces the most attractive monthly payment and builds more principal equity over time.

Hansen said they mainly use incentives rather than base price cuts, which are limited to targeted situations on completed aged inventory. Did not quantify price declines broadly.

Murray said competitive pressures exist market by market but builders are generally taking a rational approach. Hansen echoed that most builders are balancing pace and price rather than slashing prices.

Modest ASP declines expected to continue, largely driven by incentive costs rather than base price cuts. Generally 1-2% sequential changes.

Management emphasized rate stability over a specific rate level. Noted tighter trading band in Q3 correlated with stronger sales environment.

Dallas praised operational teams on turnover and cost management. Florida renewals strong even while new lease softer. Atlanta generally strong. Chicago and Minneapolis outperforming for 4-6 quarters due to virtually no new supply over last decade creating catch-up growth.

Dallas attributed Midwest strength to decade of no development creating catch-up growth. Not a reason to pivot strategy, remains long on Sunbelt/Southeast for household formation and net migration.

Diane estimated about 25% of YTD deliveries from Millrose. Stuart expanded that they're focused on managing option costs across all land banking structures, not just Millrose.

Stuart pushed back on the single-source concern, emphasizing the business benefits from diverse land bank partners competing on cost. He framed it as building an industry solution rather than being dependent on Millrose alone.