July 25 (Reuters) - Canadian property manager FirstService Corp reported an 18 percent fall in second-quarter adjusted profit due to weakness in the U.S. foreclosure services sector.
The company’s revenue rose 5 percent to $593.2 million in the quarter, but revenue from its property services segment, which includes foreclosure services, fell 29 percent to $87.5 million.
The company manages and maintains single-family properties in the United States on a temporary basis for lenders and mortgage servicers.
Foreclosures in the United States were down 11 percent in the first half of 2012, according to RealtyTrac, a real estate information company.
Adjusted income fell to $13.7 million, or 45 cents per share, from $16.6 million, or 54 cents per share, a year earlier.
The company’s gross margin fell 2.3 percentage points to 34.8 percent in the quarter.
However, helped by lower tax costs, net profit attributable to common shareholders rose to $8.4 million, or 28 cents per share, from $3.4 million, or 11 cents per share a year earlier.
Firstservice’s revenue from its commercial real estate business, which operates in 37 countries around the world, rose 19 percent to $291.6 million.
Revenue at its residential property management business rose 9 percent to $214.1 million.
Shares of the Toronto-based company closed at C$25.77 on Tuesday on the Toronto Stock Exchange.