Jones Lang LaSalle’s share price jumped by 12.4% after the firm announced strong Q3 results in which it trumped rival CBRE’s performance in the same period.
Both firms delivered strong top-line growth in the three months to the end of September, but JLL had the better quarter in terms of revenue growth, up 19% against CBRE’s 11%.
JLL generated $1.1bn (£683m) in global revenue, up 19% from $949m over the same period last year. CBRE, the world’s largest property services firm in terms of revenue with more than 34,000 employees in 300 offices (excluding affiliates) worldwide, posted an 11% like-for-like increase from $1.6bn to $1.7bn.
At the bottom line JLL, which has more than 40,000 staff in 1,000 locations in 70 countries, delivered adjusted net income of $67m – a 22% hike from $55m the previous year. CBRE lagged slightly in terms of growth, posting a 19% increase in net income to $99.7m.
The companies both delivered an increase in earnings per share but JLL posted the greatest increase of 21% to $1.49 for the third quarter. CBRE’s increased by 15% from $0.26 to $0.30.
After announcing its results on 30 October, CBRE’s shares rose by 4.23% to $24.40, reflecting a market capitalisation of $8.1bn. JLL’s shares rose by 12.4% following its Q3 update to $95.6, giving it a market cap of $4.2bn.
In terms of EMEA revenue, JLL performed better over the period with a 30% increase to $318.4m, ahead of CBRE’s turnover of $285.5m, which was up by a quarter. Both firms reported double-digit revenue growth in every service line.
JLL, led by Guy Grainger in the UK, said its adjusted operating income, which excluded the King Sturge amortisation, was $18m for the quarter compared with $5m in 2012.
CBRE, led by UK chief Ciaran Bird, posted ?operating income of $12.6m compared with an operating loss of $31.7m the previous year when the firm had one-off costs.
Bridget.O’Connell@estatesgazette.com
