Grubb & Ellis Co.'s (GBE) third-quarter loss narrowed amid higher revenue, but the bottom line missed analysts' expectations.
The commercial real-estate service and investment firm was hit hard by the downturn in that market, but has seen signs of improvement of late. Demand for space in offices, shopping centers, apartments and hotels has been slack amid the tepid economic recovery.
Nevertheless, larger rival CB Richard Ellis Group Inc. (CBG) last month reported its third-quarter profit more than tripled while Jones Lang LaSalle Inc.'s (JLL) earnings jumped 88%.
Grubb & Ellis posted a loss of $14.8 million, or 27 cents a share, compared with a year-earlier loss of $21.4 million, or 34 cents a share. Analysts polled by Thomson Reuters most recently forecast a 24-cent loss.
Revenue rose 6% to $144.3 million. The company said last month it expected to report $144 million, falling short of analysts' then-estimates.
Revenue in Grubb's management-services segment, its largest on that basis, slid 3.2%. Transaction-services revenue jumped 29% but the unit's loss widened amid higher commissions and related costs. At the investment-management business, revenue dropped 24%.
Shares closed Monday at $1.08 and were inactive premarket. The stock has retreated 16% so far this year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; firstname.lastname@example.org