SEC Filings

CBRE Now Has $100 Million Of Cash Posted To Banks On Its Currency Swaps

The collateral appears in the quarterly report as the company's hedge book grows to $6.0 billion and its derivative liabilities rise to $361 million.

CBRE Group, which provides commercial real estate services and investment management, had $100 million of cash collateral posted against its derivative contracts at September 30, according to its 10-Q filed Thursday. The prior quarter's report said neither CBRE nor its counterparties had been required to post collateral.

From none required to $100 million out

The cash went out under collateral exchange agreements with the banks on the swaps. CBRE booked it in Other current assets and counted it as an outflow from investing activities in its cash flow statement.

The second-quarter report said no collateral was required at June 30, 2026 or December 31, 2025. The new filing says CBRE held no collateral at either September 30, 2026 or year-end 2025, and posted none at year-end.

The agreements carry date and exposure thresholds, after which either side may have to hold or post collateral as positions change. CBRE says it considers counterparty credit risk remote, given its diversified pool of banks.

A swap book that keeps growing

CBRE uses cross-currency swaps to hedge the dollar value of its foreign investments and says it does not enter derivatives for speculative or trading purposes. The notional amount of its net investment hedge swaps climbed to $6.0 billion at September 30 from $3.9 billion at December 31, 2025. The filing says they mature between 2028 and 2045.

Derivative liabilities stood at $361 million, against $292 million at year-end. Derivative assets rose to $95 million from $63 million.

CBRE does not net the collateral against those fair values, and presents derivative balances on a gross basis.

Buybacks, commercial paper and the quarter

The company deployed $1.2 billion on share repurchases this year through October 20, funded with cash on hand and commercial paper. Commercial paper borrowings were $1.2 billion at September 30, versus $852 million at year-end, and $910 million at October 20.

Third-quarter revenue rose 12.7% to $11.5 billion, and net income attributable to CBRE was $443 million, up from $363 million a year earlier, according to the earnings release. CBRE shares closed Thursday at $131.24, down 2.53%.

On October 20, CBRE agreed to acquire data center services firm Onnec Group for £460 million (about $610 million) upfront, with up to £300 million more tied to an earnout.

The company has $1.7 billion of cash and cash equivalents as of September 30, against the $100 million now sitting with its swap counterparties.