Shares in CB Richard Ellis Group Inc. tanked Tuesday after the world's largest real estate broker said late Monday that its third-quarter profit rose 25 percent, but still missed Wall Street's expectations.
CBRE reported third-quarter net income of $115 million (48 cents per share), up 25 percent from $92 million (39 cents), from the same period a year earlier. Third quarter net income excluding items was 55 cents a share, less than the estimate of 57 cents according to a Bloomberg survey.
Revenue for the El Segundo-based firm increased 54 percent to $1.5 billion.
CBRE said its U.S. leasing numbers were "affected by uncertainty surrounding domestic economic growth." The company said falling prices and constricted debt financing will continue to hurt its performance in the fourth quarter.
The firm said its European sales rose 50 percent while its Asia Pacific region, which include Australia and New Zealand, increased 54 percent.
In North America, revenues rose 46 percent, mostly because of the acquisition of Trammell Crow Co., the company said.
CBRE added that the results included $33 million in expenses related to the acquisition of Trammell, which was for $1.9 billion in December.
Shares in CBRE were down 9.5 percent, or $2.53, to $24.21 in afternoon trading Tuesday on the New York Stock Exchange.
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