(Reuters) – CBRE Group Inc (NYSE:) forecast annual profit largely above estimates on Thursday, betting on demand from businesses like leasing and loan servicing as the commercial property market remains under pressure from higher interest rates.
The Dallas-based company expects full-year earnings per share to be in the range of $4.25 to $4.65, the mid-point of which was above analysts’ estimates of $4.34, according to LSEG data.
The company’s shares rose 6.5% in premarket trade.
The upbeat full-year forecast comes after the company, which provides services such as leasing, management and sale of properties, had trimmed its forecasts for two straight quarters in 2023 on weak commercial property markets.
While property sales revenue across regions continued to year-on-year decline, with buyers and sellers firmly on sidelines of the market, property leasing revenues edged up 1%, led by growth in Europe.
Other segments such as loan servicing and facilities management fueled the bulk of revenue growth.
CBRE reported fourth-quarter revenue of $8.95 billion, beating analysts’ estimates of $8.44 billion.
The company’s adjusted earnings per share of $1.38 also topped analysts’ estimates of $1.18.
