On Mar 15, 2013, we reiterated our long-term recommendation on
Jones Lang Lasalle Inc. (JLL)
at Neutral. This reflects the company's extensive foothold in the
domestic and international real estate markets and its continued
investment in industry-leading research. However, a decrease in
demand for Jones Lang's services owing to a relative decline in
real estate fundamentals is a major concern.AGREE RLTY CORP (ADC): Free Stock Analysis
ReportFED RLTY INV (FRT): Free Stock Analysis ReportHSBC HOLDINGS (HBC): Free Stock Analysis ReportJONES LANG LASL (JLL): Free Stock Analysis
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Jones Lang's broad range of real estate product services with a
worldwide portfolio of approximately 2.6 billion square feet makes
it an industry leader in property and corporate facility management
services. Also, its investment management business is one of the
largest and most diverse in the real estate sector. The segment
recorded an increase of 5% year over year to $285.4 million in
revenues, and with $47 billion of assets under management at the
end of the year.
In addition, Jones Lang has a strong balance sheet that provides
it with an operating flexibility to protect and enhance market
positions. The company's outstanding debt decreased $105 million
during 2012. On long-term revolving credit facility, it also
decreased from the prior year.
Moreover, in the current quarter, global banking giant
HSBC Holdings plc (HBC)
named Jones Lang 'exclusive global facilities management provider'
for its 58 million square feet portfolio. The assignment represents
the largest ever outsourcing of facilities management service to a
single provider by a financial company. This augurs well for
its long-term growth.
Jones Lang came up with modest results in the fourth quarter of
2012, with adjusted earnings of $2.60 per share, lagging the Zacks
Consensus Estimate by a penny. However, adjusted earnings were
ahead of $2.56 per share reported in the year-ago quarter. Results
for the quarter were benefited by a decent hike in revenues, but
higher expenses acted as a dampener.
Following the release of the fourth quarter and full year 2012
results, the Zacks Consensus Estimate for full year 2013 moved down
0.8% to $6.24 per share. Also, the Zacks Consensus Estimate for
full year 2014 inched down 0.7% to $7.11 per share. With the Zacks
Consensus Estimates marginally moving down for both full year 2013
and 2014, Jones Lang now has a Zacks Rank #3 (Hold).
Other Stocks to Consider
REITs that are currently performing better than Jones Lang include
Agree Realty Corp. (ADC)
and Federal Realty Investment Trust (FRT)
. Both the stocks carry a Zacks Rank #2 (Buy).