News

JLL’s results withstand King Sturge takeover hit

News

Bridget O’Connell

04 November 2011

Jones Lang LaSalle turned in a strong set of third-quarter results despite taking a hit on profit from its purchase of King Sturge.

The New York Stock Exchange-listed property services firm reported a net profit of $34m (£21m), down from $37m in the same period last year, largely as a result of expenses incurred in buying the UK partnership.

Stripping out the $21m of acquisition and amortisation charges, profit rose by 30% to $50m, or $1.12 a share.

Revenue for the quarter jumped by 28% to $903m, the result of growth in all three of its geographic regions and a strong performance from its fund management division, LaSalle Investment Management.

Rival CBRE last week announced a 12% hike in global net profits to $64m and a 21% rise in global revenue to $1.5bn.

A comparison of JLL’s and CBRE’s Q3 EMEA numbers (see table) reveals that JLL is catching up to its rival but has not closed the gap.

JLL’s Q3 revenue in EMEA was 46% higher year-on-year at $247m, to which King Sturge contributed $60m. CBRE had EMEA revenue of $276m in Q3. Year-to-date revenue at the end of the nine months was 29% higher at $633m.

Operating expenses, which include a full quarter of King Sturge costs, were $247m, a 49% year-on-year increase.

EMEA earnings before interest, taxes, depreciation and amortisation for Q3 were up from $7m to $10m. This would be a loss of $6m if the $16m of restructuring costs related to the King Sturge buy were deducted, and compares with $21m at CBRE. Year-to-date EBITDA rose from $13m to $14m.

In the Americas, revenue rose by 22% to $379m, led by capital markets and hotels, property and facility management, and leasing.

Operating expenses in the Americas were up by 26% driven by higher commission expense while EBITDA came in at $46m for the quarter and $107m for the year-to-date.

“Our third-quarter results were solid, and we continue to see healthy business pipelines into our seasonally strong fourth quarter,” said Colin Dyer, president and chief executive.

“While helping our clients keep a careful watch on market conditions, we are extending our winning competitive position.”

Jones Lang LaSalle turned in a strong set of third-quarter results despite taking a hit on profit from its purchase of King Sturge. The New York Stock Exchange-listed property services firm reported a net profit of $34m (£21m), down from $37m in the same period last year, largely as a result of expenses incurred in buying the UK partnership. Stripping out the $21m of acquisition and amortisation charges, profit rose by 30% to $50m, or $1.12 a share. Revenue for the quarter jumped by 28% to $903m, the result of growth in all three of its geographic regions and a strong performance from its fund management division, LaSalle Investment Management. Rival CBRE last week announced a 12% hike in global net profits to $64m and a 21% rise in global revenue to $1.5bn. A comparison of JLL’s and CBRE’s Q3 EMEA numbers (see table) reveals that JLL is catching up to its rival but has not closed the gap. JLL’s Q3 revenue in EMEA was 46% higher year-on-year at $247m, to which King Sturge contributed $60m. CBRE had EMEA revenue of $276m in Q3. Year-to-date revenue at the end of the nine months was 29% higher at $633m. Operating expenses, which include a full quarter of King Sturge costs, were $247m, a 49% year-on-year increase. EMEA earnings before interest, taxes, depreciation and amortisation for Q3 were up from $7m to $10m. This would be a loss of $6m if the $16m of restructuring costs related to the King Sturge buy were deducted, and compares with $21m at CBRE. Year-to-date EBITDA rose from $13m to $14m. In the Americas, revenue rose by 22% to $379m, led by capital markets and hotels, property and facility management, and leasing. Operating expenses in the Americas were up by 26% driven by higher commission expense while EBITDA came in at $46m for the quarter and $107m for the year-to-date. “Our third-quarter results were solid, and we continue to see healthy business pipelines into our seasonally strong fourth quarter,” said Colin Dyer, president and chief executive. “While helping our clients keep a careful watch on market conditions, we are extending our winning competitive position.”