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Third quarter boosts JLL profits despite overall decline in 2019

News

Louise Dransfield

05 November 2019

JLL has recorded robust figures for the third quarter across the EMEA region, but over the first nine months of 2019 reported a 43% decline in its profits.

For the three months ended 30 September, JLL has posted a 14% increase in its adjusted EBITDA in local currency in EMEA to $24.6m (£19.1m) on a like-for-like basis. This increase in profit was attributed to “stable revenues and the results of cost management initiatives”.

However, for the nine months ended 30 September, adjusted EBITDA was down by 43% in local currency to $16m.

Revenue was up by 12% in local currency to $862.6m for the quarter and up by 5% for the nine-month period to $2.4bn.

JLL also reported a fall in adjusted EBITDA for LaSalle to $36.5m for the third quarter, compared with $59.2m in 2018.

JLL said that its EMEA revenue and fee revenue “reflected solid annuity growth” in its project and development services and property and facility management business streams, but this was partially offset by softness in UK leasing, while “capital markets was in line with a decline in regional capital markets volumes (on a US dollar basis) from the prior-year quarter”.

Overall, the group posted solid figures, with adjusted EBITDA up by 29% in local currency to $299.9m for the third quarter and up by 17% to $622m for the nine months ended 30 September, compared with 2018.

Total revenue was also up by 15% for the third quarter in local currency to just under $4.5bn and by 13% over the nine months to $12.6bn.

JLL global chief executive Christian Ulbrich (pictured) said: “Record revenue, continued margin expansion in our real estate services business and significant progress in the integration of our HFF acquisition drove another very successful quarter for JLL.”

JLL’s net debt stood at just over $1.5bn, an increase of $589.4m over the summer due to its acquisition of capital markets services provider HFF.

Cash provided by operating activities for the third quarter of 2019 was $231.6m.

To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette

JLL

JLL has recorded robust figures for the third quarter across the EMEA region, but over the first nine months of 2019 reported a 43% decline in its profits. For the three months ended 30 September, JLL has posted a 14% increase in its adjusted EBITDA in local currency in EMEA to $24.6m (£19.1m) on a like-for-like basis. This increase in profit was attributed to “stable revenues and the results of cost management initiatives”. However, for the nine months ended 30 September, adjusted EBITDA was down by 43% in local currency to $16m. Revenue was up by 12% in local currency to $862.6m for the quarter and up by 5% for the nine-month period to $2.4bn. JLL also reported a fall in adjusted EBITDA for LaSalle to $36.5m for the third quarter, compared with $59.2m in 2018. JLL said that its EMEA revenue and fee revenue “reflected solid annuity growth” in its project and development services and property and facility management business streams, but this was partially offset by softness in UK leasing, while “capital markets was in line with a decline in regional capital markets volumes (on a US dollar basis) from the prior-year quarter”. Overall, the group posted solid figures, with adjusted EBITDA up by 29% in local currency to $299.9m for the third quarter and up by 17% to $622m for the nine months ended 30 September, compared with 2018. Total revenue was also up by 15% for the third quarter in local currency to just under $4.5bn and by 13% over the nine months to $12.6bn. JLL global chief executive Christian Ulbrich (pictured) said: “Record revenue, continued margin expansion in our real estate services business and significant progress in the integration of our HFF acquisition drove another very successful quarter for JLL.” JLL’s net debt stood at just over $1.5bn, an increase of $589.4m over the summer due to its acquisition of capital markets services provider HFF. Cash provided by operating activities for the third quarter of 2019 was $231.6m. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette