Jones Lang's Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Jones Lang LaSalle Incorporated JLL reported third-quarter 2024 adjusted earnings per share (EPS) of $3.50, which beat the Zacks Consensus Estimate of $2.67. The reported figure also increased from the prior-year quarter’s $2.19.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results reflect better-than-anticipated revenues. The company benefited from accelerated growth in transactional revenues and continued strength in its resilient lines of business. JLL also gained from its cost management efforts.Revenues of $5.87 billion surpassed the Zacks Consensus Estimate of $5.59 billion. The figure increased by 14.8% from the year-ago quarter.Per Christian Ulbrich, CEO of JLL, "JLL achieved strong third-quarter revenue and profit growth fueled by continued high demand for our outsourcing services and an acceleration in transactional activity.”JLL’s Segment-Wise PerformanceDuring the third quarter, the Markets Advisory segment’s revenues came in at $1.14 billion, reflecting a year-over-year increase of 15.3% (in USD). The rise was driven by Leasing, which reported double-digit growth in most geographies, particularly in the United States, Greater China, India, the United Kingdom and Australia. Leasing growth was led by the office sector, which witnessed increased deal size and transaction volumes. The industrial sector was flat year over year, ending a multi-quarter trend of declines in the sector as the deal size rebounded.Meanwhile, growth in Property Management revenues was driven by expansion in the United States and Asia Pacific, including incremental revenues in the United States associated with pass-through expenses.Revenues for the Capital Markets segment were $498.8 million, increasing 14.5% (in USD) year over year. With investor sentiment strengthening, this segment achieved broad-based revenue growth across all business lines. A rise in Investment Sales, Debt/Equity Advisory and Other revenues, excluding Net non-cash MSR, was witnessed due to increased activity in the office, industrial and hotel sectors, particularly in the United States and Europe.JLL’s Work Dynamics segment reported revenues of $4.07 billion, up 15.8% (in USD) year over year. The uptick in revenues was driven by continued strong performance in Workplace Management with mandate expansions in the United States. Project Management revenues also grew year over year in mid-single digits due to a rise in management fees.However, the JLL Technologies segment reported revenues of $56.7 million, declining 3.9% (in USD) from the prior-year quarter levels. The fall was partially due to lower contract signings in service offerings over the last 12 months, offset by growth in software offerings.Revenues in the LaSalle segment fell 8% (in USD) year over year to $101.3 million. The decline in revenues was due to a decrease in assets under management (AUM) over the last 12 months, particularly in North America and Europe. It reflected lower fees in Europe as a result of structural changes to a lower-margin business.As of Sept. 30, 2024, LaSalle had $84.6 billion of AUM, down from $92.9 billion as of Sept. 30, 2023. This resulted from dispositions and withdrawals, net valuation decreases, foreign currency decreases, and a decline in uncalled committed capital and cash held, partially offset by acquisitions.JLL’s Balance SheetJLL exited the third quarter of 2024 with cash and cash equivalents of $437.8 million, up from $424.4 million at the end of the second quarter.As of Sept. 30, 2024, the net leverage ratio was 1.4, down from 1.7 as of June 30, 2024. The corporate liquidity was $3.39 billion as of the third quarter's end, up from $2.45 billion as of the second quarter’s end.JLL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise Jones Lang LaSalle Incorporated price-consensus-eps-surprise-chart | Jones Lang LaSalle Incorporated QuotePerformance of Other Broader Real Estate Market StocksCBRE Group Inc. CBRE reported a third-quarter 2024 core EPS of $1.20, ahead of the Zacks Consensus Estimate of $1.06. The reported figure increased by 66.7% year over year.Results reflected double-digit revenue and segment operating profit growth, with significant operating leverage in Advisory Services, Global Workplace Solutions and Real Estate Investments business segments. The company expects a strong fourth quarter across all three segments and increased its 2024 core EPS outlook. CBRE currently carries a Zacks Rank #2.Mid-America Apartment Communities MAA, commonly known as MAA, reported a third-quarter 2024 core FFOper share of $2.21, which surpassed the Zacks Consensus Estimate of $2.18. However, the reported figure fell 3.5% year over year from $2.29.Results reflected healthy demand despite elevated new supply and strong average physical occupancy for the same-store portfolio. The company witnessed low levels of resident turnover. However, an increase in same-store portfolio property operating expenses partly marred the positives. MAA currently carries a Zacks Rank #3 (Hold).Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. 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