Post Earnings Coverage as Jones Lang LaSalle’s Revenue Surged 25%; Increased Dividend by 6%

Upcoming AWS Coverage on Paramount Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on Jones Lang LaSalle Inc. (NYSE: JLL). The Company disclosed its first quarter fiscal 2017 financial results on May 05, 2017. The financial and professional services Company outperformed revenue and earnings estimates. Register with us now for your free membership at:

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One of Jones Lang LaSalle’s competitors within the Property Management space, Paramount Group, Inc. (NYSE: PGRE), reported on May 04, 2017, its results for the quarter ended March 31, 2017. AWS will be initiating a research report on Paramount Group in the coming days.

Today, AWS is promoting its earnings coverage on JLL; touching on PGRE. Get our free coverage by signing up to

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Earnings Reviewed

For the three months ended March 31, 2017, Jones Lang LaSalle’s consolidated revenue was $1.62 billion and consolidated fee revenue was $1.36 billion, each representing a 25% increase against the prior year. Revenue growth occurred across all geographic segments and reflected expansion of both transactional and annuity businesses. The Company’s revenue numbers surpassed analysts’ consensus of $1.45 billion.

During Q1 2017, Jones Lang LaSalle’s consolidated operating expenses were $1.6 billion, compared with $1.3 billion in Q1 2016, up 26%. The Company’s consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.3 billion for the reported quarter, up 27% compared with $1.1 billion in the prior year’s same quarter. Adjusted EBITDA was $73.9 million compared with $85.0 million in 2016. The Company’s adjusted EBITDA margin, calculated on a fee-revenue basis, was 5.4% in USD and 5.0% in local currency compared with 7.6% in Q1 2016.

Jones Lang LaSalle’s net income attributable to common shareholders was $10.8 million, or $0.24 per share, in Q1 2017 compared with $25.7 million, or $0.56 per share, in Q1 2016. Adjusted diluted earnings per share were $0.45 compared with $0.82 in the prior year’s same quarter, thus topping Wall Street’s estimates of $0.38 per share.

Business Segment Performance

During Q1 2017, Jones Lang LaSalle’s Americas Real Estate Services total revenue was $722.8 million, up 20% on a y-o-y basis. The segment’s fee revenue was $678.4 million for the reported quarter, an increase of 21% compared to the year ago same period. The Company noted that more than 70% of fee revenue growth was from organic expansion and reflected strong transactional performance, primarily in the US leasing business.

The segment’s operating income was $37.5 million in Q1 2017, up 16% from $32.4 million in Q1 2016, while adjusted EBITDA totaled $63.6 million for the reported quarter compared with $54.6 million in the prior year’s corresponding quarter. Americas Real Estate Services reported adjusted EBITDA margin of 9.4% in USD and local currency compared with 9.8% in Q1 2016.

For Q1 2017, Jones Lang LaSalle’s EMEA revenue was $499.5 million and fee revenue was $359.7 million, reflecting increases of 49% and 55%, respectively, from Q1 2016. The segment reported operating loss of $29.4 million compared with a loss of $15.8 million in the year ago same period. EMEA’s adjusted EBITDA was a loss of $19.2 million compared with a loss of $7.6 million in Q1 2016. The segment’s adjusted EBITDA margin was negative 5.3% in USD and negative 5.5% in local currency compared with negative 3.0% in Q1 2016.

Jones Lang LaSalle’s Asia/Pacific segment reported revenue of $304.7 million, up 15% on a y-o-y basis and fee revenue of $233.6 million, growing 13% from the year ago comparable quarter. The Company stated that over 80% of the fee revenue increase was from organic expansion. The Asia/Pacific segment’s operating income was $4.3 million in the reported quarter compared with an operating loss of $1.2 million in the prior year’s same quarter. Adjusted EBITDA was $9.9 million compared with $3.0 million in Q1 2016. The unit’s adjusted EBITDA margin totaled 4.2% in USD and 4.0% in local currency compared with adjusted EBITDA margin of 1.5% in the year ago same period, reflecting strength of transaction volume as well as expense control initiatives.

For Q1 2017, the Company’s LaSalle segment total revenue of $88.2 million fell 9% from a tough comparable in 2016, which benefited from transaction fees related to the successful launch of the LaSalle Logiport REIT. The segment’s Equity earnings were $4.6 million compared with $12.7 million in 2016. LaSalle’s operating income was $14.4 million in Q1 2017, down compared to $21.6 million in Q1 2016. The segment’s adjusted EBITDA was $19.6 million compared with $35.1 million in the prior year’s corresponding quarter.

Asset Under Management

As of March 31, 2017, the Company’s assets under management were $58.0 billion, down 1% in local currency from $60.1 billion as of December 31, 2016, and generally in-line with the balance as of March 31, 2016. The net decrease in assets under management during 2017 resulted from $3.5 billion of dispositions and withdrawals and $1.4 billion of foreign currency decreases, partially offset by $2.5 billion of acquisitions and $0.3 billion of net valuation increases.

Balance Sheet

Jones Lang LaSalle’s total net debt was $1.4 billion as of March 31, 2017, an increase of $254.5 million from year end, reflecting the annual first-quarter payout of variable compensation to employees, partially offset by improved working capital management.

The Company’s Board of Directors declared a dividend of $0.35 per share, up 6% from the $0.33 per share payment made in December 2016. The dividend payment will be made on June 15, 2017, to shareholders of record at the close of business on May 15, 2017.

Stock Performance

On Monday, May 22, 2017, the stock closed the trading session at $113.46, rising 1.21% from its previous closing price of $112.10. A total volume of 196.07 thousand shares have exchanged hands. Jones Lang LaSalle’s stock price advanced 1.48% in the last month, 15.33% in the past six months, and 1.14% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 12.29%. The stock is trading at a PE ratio of 17.07 and has a dividend yield of 0.62%.

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