Jones Lang LaSalle has outperformed in the first quarter, with net profit surging to $14m at the end of March from $1m at the same time last year.
Excluding charges related to restructuring and acquisitions, the company reported an adjusted net profit of $22m – or 50 cents a share – comfortably beating Wall Street analysts’ average expectation of 20 cents a share.
The one-off costs included $2m of intangible amortisation related to the second quarter 2011 purchase of King Sturge.
The Chicago-based company also raised its half-year dividend by 33% from 15 cents to 20 cents a share.
Revenue grew 18% to $813m, driven by double-digit growth in all geographic segments and services business lines. This growth was achieved despite lower transactional market activity in many of its core markets.
Strong revenue growth in the quarter resulted in improved operating income and margins in each of its operating segments.
The European division increased its revenue from $168m to $213m and reduced its operating loss – which it traditionally makes in the first quarter – from $13.1m to $10.5m.
The Americas division made an operating profit of $11.8m, Asia Pacific $7m and LaSalle Investment Management $27.1m.
“We drove strong first-quarter revenue and profit growth by building both market share and margins,” said chief executive Colin Dyer. “World real estate markets continue their cyclical recovery, and we will continue our successful drive for revenue and margin growth.”
bridget.o’connell@estatesgazette.com
