We maintain our Neutral rating for
Jones Lang LaSalle Inc.
), a leading full-service real estate firm that provides
corporate, financial, and investment management services to
corporations and other real estate owners, users, and investors
Jones Lang divides its business into two primary segments: Real
Estate Services (RES) and Investment Management (IM). The RES
segment is sub-divided into three geographic regions - the
Americas, EMEA (Europe, Middle East, Africa) and Asia Pacific.
These units collectively manage owned or leased properties in
international locations, represent tenants for the acquisition
and disposal of properties, provide leasing to agencies, service
corporate properties, manage property and provide valuation
services. The IM division provides real estate
investment-management services across the globe, mainly to
institutions, corporations, and affluent individuals.
Jones Lang reported third quarter 2012 net income of $49.5
million or $1.10 per share compared to $33.9 million or $0.76 in
the year-earlier quarter. Excluding non-recurring items, earnings
were $55.0 million or $1.23 per share during the reported quarter
versus $49.5 million or $1.12 in the year-ago quarter. Recurring
earnings for the reported quarter exceeded the Zacks Consensus
Estimate of $1.18.
The company has a broad range of real estate product and
services, and an extensive knowledge of domestic and
international real estate markets. These enable it to operate as
a single-source provider of real estate solutions.
With a worldwide portfolio of approximately 2.1 billion square
feet, Jones Lang is an industry leader in property and corporate
facility management services. Its investment management business
is one of the largest and most diverse in the real estate sector
with nearly $47 billion of assets under management.
CBRE GROUP INC (CBG): Free Stock Analysis
JONES LANG LASL (JLL): Free Stock Analysis
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In addition, Jones Lang continually invests in industry-leading
research to identify emerging trends and anticipate conditions to
respond to the shifting market and client business trends. This
enables the company to develop new investment products and
services tailored to the specific investment goals and objectives
of its clients, thereby maintaining profitable long-term
relationships during challenging market conditions.
However, Jones Lang depends on a vibrant global real estate
market to fuel its growth engine. Although global real estate
fundamentals are gradually picking up, transaction volumes are
yet to reach its pre-recession peak values. As such, we remain
circumspect about the long-term earnings prospect of the company.
Jones Lang currently retains a Zacks #3 Rank (short-term Hold
rating). However, we have a Neutral recommendation and a Zacks #5
Rank (short-term Strong Sell rating) for
CBRE Group, Inc.
), one of the competitors of Jones Lang.