Los Angeles Business Journal

Earnings Roundup: CBRE, Macerich, PennyMac

By Business Journal Staff Wednesday, February 5, 2014

After the markets closed on Wednesday, CBRE Group Inc. reported fourth-quarter net income of more than $114 million or 34 cents a share, down 36 percent from the same period a year earlier.

Adjusted earnings were $221 million (67 cents). Analysts surveyed by Thomson Reuters on average expected the Los Angeles real estate services giant to report adjusted earnings of 66 cents. Revenue rose 11 percent to $2.2 billion, compared with the Wall Street consensus of $2.17 billion.

For the current fiscal year, CBRE said it expects full-year earnings in the range of $1.55 to $1.60 a share, compared with the analyst average of $1.65 a share.

Shares on Wednesday had closed down 6 cents, or less than 1 percent, to $26.72 on the New York Stock Exchange.

Macerich

Macerich Co. on Tuesday reported fourth-quarter net income of less than $145 million, or $1.03 per share, 19 percent lower than in the same period a year earlier.

Adjusted funds from operations, a key industry metric for real estate investment trusts, was more than $140 million (94 cents). Analysts surveyed by Thomson Reuters had expected the Santa Monica mall owner to report 83 cents. Revenue rose 15 percent to more than $289 million, also above the Wall Street consensus of $270 million.

For the current fiscal year, Macerich is expecting FFO in the range of $3.50 to $3.60 a share, compared with the analyst average of $3.46 a share.

Shares on Wednesday closed up 87 cents, or 1.5 percent, to $57.49 on the New York Stock Exchange.

PennyMac

PennyMac Financial Services on Wednesday reported profit and revenue figures that fell short of analysts’ estimates due to a drop in loan origination.

The Moorpark company reported net income of $6.4 million (32 cents) for the fourth quarter ended Dec. 31 on revenue of $90 million.

Analysts on average had expected net income of 34 cents a share on revenue of $101 million, according to Thomson Financial Network.

The company produces and services U.S. residential mortgage loans and is an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust. Stanford Kurland, the former president of Countrywide Financial, is chief executive of both companies.

The company reported growth in all categories, including mortgage banking, which rose 4 percent to nearly $76 million.

“Loan production volumes were lower, driven by a decline in the U.S. origination market. Nevertheless, our mortgage banking revenues increased quarter-over-quarter and we remained focused on expense management,” said Kurland in a prepared statement.

Shares closed down 20 cents, or more than 1 percent, to $16.87 on the New York Stock Exchange.

In its quarterly filing, PennyMac Mortgage Investment Trust reported growing profit and falling revenue for the fourth quarter, citing higher costs from servicing its growing portfolio.

The Moorpark real estate investment trust posted net income of $52.7 million (69 cents a share) in the quarter ended Dec. 31, compared with $49.2 million (83 cents) in the same period a year earlier. The company’s net investment income fell 20 percent to $96 million.

The REIT primarily invests in distressed residential mortgages and other mortgage-related assets but also does correspondent lending, originating and packaging loans for sales to banks. Revenue from its correspondent lending business fell 4 percent from the third quarter to $18 million.

For the year, the company reported net income of $200 million ($2.96 a share), compared with $138 million ($3.14) the year prior. The company’s net investment income rose 25 percent to more than $405 million.

Shares closed down a penny to $23.38 on the New York Stock Exchange.