JLL Reports Record Third-Quarter Performance for 2015
Adjusted EPS Up 11 Percent to $2.52; Fee Revenue Grows to $1.3 Billion
(firmenpresse) - CHICAGO, IL -- (Marketwired) -- 10/28/15 -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share of $2.52, up from $2.27 in the prior year. Third-quarter fee revenue totaled $1.3 billion, up 17 percent in local currency from the third quarter of 2014. All percentage variances are calculated on a local currency basis.
"We completed another record quarter at JLL, with double-digit fee revenue growth across all service lines and geographic segments, healthy margin expansion and continued outstanding performance by LaSalle Investment Management," said Colin Dyer, President and CEO. "We continue to invest strategically in the long-term growth of our company, and have excellent momentum as we move into 2016," Dyer added.
Consolidated fee revenue for the third quarter was $1.3 billion, up 17 percent from 2014. Growth was broad-based, led by Leasing, up $50 million or 19 percent, Capital Markets & Hotels, up $31 million or 26 percent, and Project & Development Services, up $13 million or 21 percent.
Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.2 billion for the third quarter, compared with $1.1 billion last year. The firm continued to invest in technology and people for its clients in support of the growing business.
LaSalle Investment Management''s advisory fees grew 7 percent; total revenue increased 3 percent driven by substantial incentive fees as certain funds near the end of their stated investment periods. LaSalle also recognized significant equity earnings from net valuation increases and investment dispositions.
Adjusted EBITDA margin calculated on a fee revenue basis was 14.8 percent for the third quarter, compared with 14.1 percent last year.
Adjusted earnings per share reached $2.52 for the third quarter, up 11 percent from last year despite a negative foreign exchange impact of approximately $0.23, or 10 percent compared with a year ago.
The firm''s total net debt was $435 million at quarter end, a decrease of $87 million from the second quarter of 2015.
Net interest expense for the third quarter was $6.8 million, down from $7.4 million in the third quarter of 2014 primarily due to lower average borrowings compared with last year.
Reflecting confidence in the firm''s cash generation, the Board of Directors declared a semi-annual dividend of $0.29 per share, a 7 percent increase from the $0.27 per share payment made in June 2015. The dividend payment will be made on December 15, 2015, to shareholders of record at the close of business on November 13, 2015.
Real Estate Services
Fee revenue for the quarter was $592 million, an increase of 16 percent from 2014. Revenue growth compared with last year was broad-based with Leasing up 17 percent; Advisory, Consulting and Other up 17 percent; Property & Facility Management up 16 percent; and Project & Development Services up 15 percent. Growth in the region was primarily led by U.S. markets including New York, Los Angeles and Atlanta.
Fee-based operating expenses, excluding restructuring and acquisition charges, were $530 million for the quarter, compared with $473 million last year.
Operating income was $62 million for the quarter, compared with $48 million in 2014. Year-to-date operating income was $143 million, up from $112 million in 2014.
Adjusted EBITDA was $77 million for the quarter, compared with $60 million last year. Adjusted EBITDA margin for the quarter, calculated on a fee revenue basis, was 13.0 percent, compared with 11.4 percent in 2014. Year-to-date Adjusted EBITDA was $190 million, up from $150 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 11.6 percent, compared with 10.6 percent in 2014.
Real Estate Services
EMEA''s performance during the third quarter was significantly higher in local currencies than in U.S. dollars due to the continued strength of the U.S. dollar against European currencies.
Fee revenue for the quarter was $333 million, an increase of 25 percent from 2014. Revenue growth was driven by Capital Markets & Hotels up 35 percent; Advisory, Consulting and Other up 35 percent; Project & Development Services up 27 percent; and Leasing up 23 percent compared with last year. Growth in the region was led by the U.K., Germany and France.
Fee-based operating expenses, excluding restructuring and acquisition charges, were $307 million for the quarter, compared with $282 million last year.
Operating income was $26 million for the quarter, compared with $16 million in 2014. Year-to-date operating income was $56 million, up from $36 million in 2014.
Adjusted EBITDA was $33 million for the quarter, compared with $23 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 10.0 percent for the quarter, compared with 7.6 percent in 2014. Year-to-date Adjusted EBITDA was $74 million, up from $54 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 8.1 percent, compared with 6.4 percent in 2014.
Real Estate Services
Asia Pacific''s performance during the third quarter was significantly higher in local currencies than in U.S. dollars due to the continued strength of the U.S. dollar, particularly against the Australian dollar and Japanese yen.
Fee revenue for the quarter was $233 million, an increase of 20 percent from 2014. Revenue growth was driven by Capital Markets & Hotels up 48 percent, Leasing up 19 percent, and Property & Facility Management up 18 percent, compared with last year. Growth in the region was led by Australia, India and China''s tier one cities, including Beijing and Shanghai.
Fee-based operating expenses, excluding restructuring and acquisition charges, were $220 million for the quarter, compared with $203 million last year.
Operating income was $13 million for the quarter, compared with $15 million in 2014. Year-to-date operating income was $34 million, up from $32 million in 2014.
Adjusted EBITDA was $17 million for the quarter, compared with $16 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 7.1 percent for the quarter, compared with 7.5 percent in 2014. Year-to-date Adjusted EBITDA was $44 million, up from $40 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 6.8 percent, compared with 6.5 percent in 2014.
Total segment revenue was $155 million for the quarter, compared with $162 million last year. This included advisory fee growth of 7 percent, $69 million of incentive fees and $21 million of equity earnings.
Incentive fees and equity earnings were notable for the quarter, despite a tough 2014 comparable. Incentive fees were driven by the sale of assets as LaSalle realized gains from legacy investments, whereas equity earnings were primarily valuation driven.
Operating expenses were $92 million for the quarter, compared with $95 million last year. Operating income was $63 million for the quarter, compared with $68 million last year.
Adjusted EBITDA was $63 million for the quarter, compared with $68 million last year. Adjusted EBITDA margin was 40.9 percent, compared with 42.0 percent in 2014. Year-to-date Adjusted EBITDA was $130 million, up from $108 million in 2014. Year-to-date Adjusted EBITDA margin was 36.3 percent, compared to 34.0 percent in 2014.
Capital raise was $838 million for the quarter and $3.8 billion year-to-date.
Assets under management were $57.2 billion as of September 30, 2015, up from $56.0 billion as of June 30, 2015. The net increase in assets under management resulted from $2.5 billion of acquisitions and takeovers, $1.7 billion of dispositions and withdrawals, $0.7 billion of net valuation decreases and $1.1 billion of net foreign currency increases.
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit .
200 East Randolph Drive Chicago Illinois 60601 ? 30 Warwick Street London W1B 5NH ? 9 Raffles Place #39-00 Republic Plaza Singapore 048619
Statements in this news release regarding, among other things, future financial results and performance, achievements, plans and objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives and dividend payments of JLL to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to JLL''s business in general, please refer to those factors discussed under "Business," "Management''s Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in JLL''s Annual Report on Form 10-K for the year ended December 31, 2014, on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015, and in other reports filed with the Securities and Exchange Commission. There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by the Company''s Board of Directors. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, JLL expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in JLL''s expectations or results, or any change in events.
Management will conduct a conference call with shareholders, analysts and investment professionals on Wednesday, October 28, 2015 at 9:00 a.m. EDT.
If you would like to participate in the teleconference, please dial into one of the following phone numbers five to ten minutes before the start time (the passcode will also be required):
U.S. callers: +1 844 231 9804
International callers: +1 402 858 7998
Passcode: 49805888
We are also offering a live webcast. Follow these steps to participate:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log on to
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, please call the Webcast Hotline +1 800 744 9473 and provide your Event ID (102889).
Supplemental information regarding the third-quarter 2015 earnings call has been posted to the Investor Relations section of the company''s website: .
Available: 12:00 p.m. EDT Wednesday, October 28, 2015 through 11:59 p.m. EST Saturday, November 28, 2015 at the following numbers:
U.S. callers: +1 855 859 2056 or + 1 800 585 8367
International callers: +1 404 537 3406
Passcode: 49805888
An audio replay will be available. Information and the link can be found on the company''s website: .
If you have any questions, please contact JLL''s Investor Relations department at: .
1. Consistent with U.S. GAAP ("GAAP"), gross contract vendor and subcontractor costs ("gross contract costs") which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining "fee revenue" and "fee-based operating expenses," respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins.
Adjusted operating income excludes the impact of restructuring and acquisition charges. "Adjusted operating income margin" is calculated by dividing adjusted operating income by fee revenue. Below are reconciliations of revenue and operating expenses to fee revenue and fee-based operating expenses, as well as adjusted operating income margin calculations, for the three and nine months ended September 30, 2015 and 2014.
*See note 4 for more information on restructuring and acquisition charges
2. Net restructuring and acquisition charges are excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and nine months ended September 30, 2015 and 2014. Adjusted net income in the table below for the three and nine months ended September 30, 2014 no longer incorporates an adjustment to exclude the net intangible amortization related to the 2011 King Sturge acquisition; such amounts were $0.5 million and $1.6 million of amortization expense for the three and nine months ended September 30, 2014, respectively. There was no comparable activity during the three and nine months ended September 30, 2015.
Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share for each net income total:
*See note 4 for more information on restructuring and acquisition charges
3. Adjusted EBITDA represents earnings before interest expense net of interest income, income taxes, depreciation and amortization, adjusted for restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are non-GAAP financial measures, they are used extensively by management and are useful to investors and lenders as metrics for evaluating operating performance and liquidity. EBITDA is used in the calculations of certain covenants related to the firm''s revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not calculated under GAAP, the firm''s adjusted EBITDA and EBITDA may not be comparable to similarly titled measures used by other companies.
Below is a reconciliation of net income to EBITDA and adjusted EBITDA:
4. Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting. For purposes of segment operating results, the allocation of restructuring and acquisition charges to the segments has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.
Restructuring and acquisition charges presented in the Financial Statement Notes for the three and nine months ended September 30, 2014 includes a pre-tax benefit of $2.2 million associated with acquisition-related activity that was presented within Operating, administrative and other expenses in the consolidated statements of operations for the quarter and reclassified for full-year 2014 reporting comparability.
Restructuring and acquisition charges of $18 million in the quarter ended September 30, 2015 include $13 million related to the write-off of an indemnification asset which arose from prior period acquisition activity. This write-off is offset by the recognition of a tax benefit of an equal amount in the provision for income taxes, and therefore has no impact on net income.
Excluding the impact of this item, the adjusted provision for income taxes for the three months ended September 30, 2015 of $38.5 reflects a 25.4 percent effective tax rate on adjusted income before taxes of $151.7 million.
5. Each geographic region offers the firm''s full range of Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development services; and advisory, consulting and valuations services. LaSalle Investment Management provides investment management services to institutional investors and high-net-worth individuals.
6. The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the firm''s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, to be filed with the Securities and Exchange Commission shortly.
7. EMEA refers to Europe, Middle East and Africa. MENA refers to Middle East and North Africa. Greater China includes China, Hong Kong, Macau and Taiwan. Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.
8. Certain prior year amounts have been reclassified to conform to the current presentation.
Contact:
Christie B. Kelly
Title: Global Chief Financial Officer
Phone: +1 312 228 2316
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 28.10.2015 - 06:30 Uhr
Sprache: Deutsch
News-ID 1394984
Anzahl Zeichen: 3437
contact information:
Contact person:
Town:
CHICAGO, IL
Phone:
Kategorie:
Commercial Real Estate
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 251 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"JLL Reports Record Third-Quarter Performance for 2015
"
steht unter der journalistisch-redaktionellen Verantwortung von
JLL (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
