European markets lead operating income, rising 58%
Jones Lang LaSalle, the world’s second-largest commercial real estate broker, has reported that fourth-quarter profit gained 31 per cent on investment fees and property sales and management in Europe.
Net income climbed to US$105.4 million, or US$3.16 a share, from US$80.9 million, or US$2.37, a year earlier, the Chicago-based company said yesterday. Revenue rose 22 per cent to US$861.8 million for the three months ended Dec 31.
Investment fees and revenue from property management and real estate sales in Europe and Asia ‘more than offset the impact to our clients of disruptions in the debt markets’, chief executive Colin Dyer said.
Jones Lang shares have dropped 30 per cent over the past 12 months as competitor CB Richard Ellis, the largest commercial broker, fell 50 per cent. Borrowing costs for apartment buildings, offices, retail properties and hotels have risen as much as 1.25 percentage points in the past three months.
‘We continue to feel that JLL’s brand and reputation stand out,’ JMP Securities analyst William Marks said in a Jan 7 note to investors. ‘Its diversified business model (by service line and geography) is second to none.’
Jones Lang was projected to have net income of US$2.85 a share, according to the average estimate of three analysts in a Bloomberg survey. The shares rose US$1.31, or 1.9 per cent, to US$69.80 in New York Stock Exchange composite trading.
European markets led Jones Lang’s operating income for the quarter, climbing 58 per cent to US$47.3 million from a year earlier. Operating income from the Asia-Pacific region gained 20 per cent to almost US$22 million. The US fell 18 per cent to US$34.7 million for the quarter, the company said.
For the full year, net income rose to a record US$257.8 million, up 46 per cent from 2006. — Bloomberg
Source : Business Times - 31 Jan 2008
