We maintain our Neutral rating for
Jones Lang LaSalle Incorporated
(
JLL
), 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 worldwide.
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.
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.
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 #4 Rank (short-term Sell
rating). However, we have a Neutral recommendation and a Zacks #3
Rank (short-term Hold rating) for
CBRE Group, Inc.
(
CBG
), a competitor of Jones Lang.
CBRE GROUP INC (CBG): Free Stock Analysis
Report
JONES LANG LASL (JLL): Free Stock Analysis
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