CBRE is expanding the real estate management services it provides to other… (Carolyn Cole, Los Angeles…)
CBRE Group Inc., the world's largest commercial real estate brokerage, reported a 9% jump in revenue during the second quarter led in part by thriving property markets in Australia, Singapore and China.
Profit was down from the same period last year, however, as the Los Angeles company spent $25.8 million to refinance debt and reduce future interest payments.
Second-quarter net income was $69.9 million, or 21 cents a share, down from $75.9 million, or 23 cents, a year earlier. Excluding selected charges, profit would have been 31 cents a share, 3 cents below analysts' estimates.
The real estate services company earns income primarily from arranging transactions to buy or rent space in offices, warehouses and other commercial properties. Revenue from property sales was strong in the second quarter.
"Interest rate increases haven't dampened investors' enthusiasm for real estate," said analyst Craig Silvers, president of Bricks & Mortar Capital in Culver City.
CBRE is also expanding the real estate management services it provides to other companies, Chief Executive Robert Sulentic said. It also showed 22% growth in its business of brokering mortgages for property owners and investors.
CBRE shares climbed 12 cents, or 0.5%, to $24.48 on Thursday before earnings were announced. In after hours trading, they fell 8 cents.