Marcus & Millichap Inc. reported a net loss in its fourth quarter Tuesday as the company had costs rise as a result of its IPO last fall.
The Calabasas commercial real estate brokerage reported a net loss of $8.7 million for the fourth quarter ended Dec. 31, compared with income of $13 million for the same period a year earlier. Revenue increased 1 percent to $149 million.
Operating expenses for the fourth quarter rose more than 26 percent to $157.3 million, which the company said was mainly due to costs associated with going public.
Chief Executive John Kerin said the firm has worked extensively on recruitment and that despite the loss, business looks good going forward.
“Our performance was driven by continued strength in the apartment and retail sectors, which have traditionally been our leading business units. We also achieved growth in office and specialty property sales such as hospitality and in our mortgage brokerage revenue, reflecting our emphasis on growth through diversification,” he said in a statement.
For the year, the company reported net income of $8.2 million, compared with $28 million in 2012. Revenue rose 13 percent to $436 million.
The company went public in an Oct. 31 IPO that raised $72 million, less than the $104 million the company had hoped to raise when it first filed a prospectus in September. The company dropped its IPO price to $12 a share, after initially announcing it expected to price the stock at $14 to $16 a share.
Shares lost 32 cents, or 1.8 percent, to close at $17.20 on the New York Stock Exchange.