Jones Lang LaSalle has delivered a record first six months this year with a 50% increase in revenue to $847m (£458m) compared to the same period in 2005.
All the firm’s operating segments achieved strong increases in revenue for both the second quarter and year to date.
This resulted in net profits rising to $70.8m (£38.3m) or $2.08 (£1.12)per share for the year-to-date on last year’s figures of net profits of $16.2m (£8.75m) or $0.48 (£0.26) per share.
Revenues were buoyed by a $109.5m (£59.15m) incentive fee paid to LaSalle Investment Management from a single client on the basis of a “final asset portfolio valuation that was completed at the end of the quarter”.
JLL’s chief executive officer Colin Dyer said: “Strengthened with this quarter’s last incentive fee and by robust underlying growth throughout the firm, we will continue to invest aggressively in people and infrastructure to increase our competitive momentum.”
In the Americas, revenue increased 48% to $248m (£134m) in the first half over the same period in 2005.
Transaction revenue was up 66% and management service revenue was up 35% for the first half on last year’s figure.
Operating expenses for the year increased 46%.
Europe saw a 21% rise in revenue to $239m (£130m) for the first half of the year.
For the first half capital markets revenue was up 66% and agency leasing was up 16% on last year’s half year.
Driven primarily by the investment market, Germany’s revenue was up 60% for both the second quarter and year to date.
So far this year, France has seen a 71% rise in revenue while Central and Eastern Europe saw a 65% rise.
The UK charted an 11% rise on 2005. Europe’s operating costs increased 18%.
Asia Pacific saw a 17% rise in revenue to $134m (£72.4m) over the same period last year.
Japan and Hong Kong’s combined revenue was flat year on year but JLL expects growth in the second half of 2006 to be driven by a strong pipeline.
Australia contributed approximately 46% to the region’s revenue growth with the remainder delivered by China, India and Singapore.
LaSalle Investment Management (LIM)’s revenue for the first half rose to $234m (£126.4m) up from $79m (£43m) last year.
The increase was driven by a $117m (£63m) increase in incentive fees over 2005 as a result of two significant fees paid in the quarter. Advisory fees rose 34% to $81m (£44m).
LIM’s assets under management grew to almost $37bn (£20bn) for the year so far compared with $28bn (£15.13bn) a year ago.
Total investments made during the first half of 2006 on behalf of clients totalled $6.4bn (£3.5bn).
This included the $3.4bn (£1.8bn) acquisition of US REIT, CenterPoint Properties Trust in a joint venture with CalPERS.
References: EGi News 26/07/06
