JLL has recorded declines in revenue and earnings during its third quarter, as sluggish deal activity continues to take its toll on the industry.
Overall revenue for the third quarter was down 2% year-on-year at $5.1bn (£4.2bn), while fee revenue fell by 13% to $1.8bn. Revenue from LaSalle decreased by 13% to $110.1m.
Revenue from the capital markets division dived by 28% to $435.8m during Q3, compared with the same period in the previous year. The markets advisory business posted an 11% decline to $992.4m.
Capital markets was hit by the “dampened” transaction market resulting from the rising interest rate environment, according to JLL. Within the markets advisory division, leasing declined across all asset classes, particularly in relation to large-scale deals.
However, also within the markets advisory business, the property management division posted double-digit growth.
The work dynamics division recorded a 6% increase in revenue to $3.5bn, boosted by new contract wins, while revenue from JLL Technologies was up by 4% at $58.9m.
Adjusted EBITDA was down by 23% at $205.2m, compared with Q3 last year.
JLL chief executive Christian Ulbrich (pictured) said: “JLL’s third-quarter financial results reflected continued focus on diversifying our business. During the quarter, fee revenue expanded across our resilient business lines while the industry-wide slowdown in investment sales and leasing transactions continued.
“Our investments in technology and the improved efficiency of our operating model position us to expand margins even if a slower transaction environment persists. When combined with our global scale and ‘One JLL’ approach, these factors will enable long-term growth and shareholder value creation.”
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