CBRE Group Inc., the world’s largest commercial real estate brokerage, reported a 12% jump in revenue during the second quarter to $2.4 billion, fueled in part by investors pouring more money into properties around the globe.
Profit for the Los Angeles company was up 19% to $125 million, or 37 cents a share, compared with $5.5 million, or 32 cents, in last year’s second quarter.
Excluding selected charges, profit would have been 42 cents a share, a penny under an average of analysts’ estimates.
The company continued to capitalize on a strong flow of investment capital into commercial real estate, Chief Executive Bob Sulentic said. Commissions on property sales arranged by the brokerage surged 23% worldwide. Commissions from leasing were up 9%.
Revenue from real estate transactions was broad as CBRE reported income growth from the Americas, Europe, the Middle East and Asia, where India was among the strongest contributors.
The company also reported 9% growth in fees collected for managing real estate for other businesses.
“It was a good quarter with solid growth in all areas,” said analyst Craig Silvers, president of Bricks & Mortar Capital. “They’re hitting on all cylinders. No negative surprises.”
CBRE shares closed down 57 cents, or 1.5%, at $37.18.