- Premier real estate service company in the world.
- Commercial real estate fundamentals are deteriorating but will crash as many expect and therefore many real estate operation prices are selling at steep discount to net asset value.
- the outsourcing segment, which have recurring revenue and is not affected by occupancy as maintenance has to performed on a building if it is empty or not, valuation alone equals to market cap of CBG and you get other segments for free.
- The company has an international network of services in growing markets.
- Top skilled management that can navigate difficult market conditions.
- Commercial real estate prices do not affect their results as much as lack of transactions. Transactions over the last 6 months have been almost non existent but that is a temporary event that can reverse quickly.
The valuation of CBG has gotten really attractive after their earnings release, which has declined by some 80%. The company represent good value at these levels for the long term holding.