CBRE Group Inc., the world's largest commercial real estate brokerage, turned a profit in the second quarter as property sales rose in most countries, including the U.S.
The Los Angeles firm said Tuesday that income from arranging transactions to buy or rent space in offices, warehouses and other commercial properties helped revenue increase 13% from a year earlier to $1.6 billion.
Europe and Asia posted modest increases in property sales revenue despite slowing economic activity in both regions while sales revenue in the Americas jumped 23%. Income from arranging leases increased only slightly, however, reflecting the soft market conditions that persist in many parts of the world.
"The recovery continues to progress, but at a historically slow pace and with a high degree of inconsistency and uncertainty across global markets," Chief Executive Brett White said.
Second-quarter net income was $75.9 million, or 23 cents a share, up 24% from $61.2 million, or 19 cents, a year earlier.
Excluding selected charges, profit would have been 27 cents a share, beating analysts' estimates by a penny and representing an improvement from 21 cents in the same quarter last year.
CBRE's mortgage brokerage business, which is focused primarily in the United States, saw revenue climb 36%. That increase reflects improvement in the country's debt-financing market, the company said.
CBRE shares fell 66 cents, or 4%, to $15.58 before earnings were announced.