Jones Lang LaSalle Incorporated JLL reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.15, which beat the Zacks Consensus Estimate of $5.80. The reported figure increased from the prior-year quarter’s $5.36.
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Results reflect better-than-anticipated revenues. The company benefited from an acceleration in transactional activity and sustained growth in resilient revenues. JLL also gained from its cost management efforts.
Revenues of $6.81 billion surpassed the Zacks Consensus Estimate of $6.48 billion. The figure increased by 15.8% from the year-ago quarter.
Per Christian Ulbrich, CEO of JLL, "Throughout 2024, our focus on operating efficiency helped drive significant margin expansion and free cash flow generation. Clients continue to look to JLL for innovative real estate management solutions, industry expertise and data-driven insights. With our strong momentum amidst an improving real estate cycle, JLL’s talent and differentiated platform position us well to gain market share and drive profitable growth in 2025.”
For the full year 2024, adjusted EPS was $14.01, higher than the prior-year tally of $10.39, while surpassing the Zacks Consensus Estimate of $13.64. This was backed by an 12.9% increase in revenues to $23.43 billion, while surpassing the Zacks Consensus Estimate of $23.11 billion.
JLL’s Segment-Wise Performance
During the fourth quarter, the Markets Advisory segment’s revenues came in at $1.33 billion, reflecting a year-over-year increase of 10.9% (in USD). The rise was driven by Leasing, led by the office sector. Most geographies witnessed double-digit leasing revenue growth, particularly in the United States, India and Greater China.
Meanwhile, growth in Property Management revenues was driven by expansion in the United States and several countries in Asia Pacific, largely due to greater pass-through costs, as management fees were flat for the fourth quarter.
Revenues for the Capital Markets segment were $706.4 million, increasing 31.5% (in USD) year over year. The rise was led by Investment Sales and Debt/Equity Advisory, most notably in the United States and Asia Pacific across all asset classes, with residential and industrial leading the way. Investor sentiment and greater interest rate stability supported year-over-year accelerated activity.
JLL’s Work Dynamics segment reported revenues of $4.56 billion, up 14.9% (in USD) year over year. The uptick in revenues was driven by continued strong performance in Workplace Management, largely from a balanced mix of client wins, mandate expansions and incremental pass-through costs in the United States. Project Management also delivered double-digit revenue growth across geographies, as higher pass-through costs resulted in management fee increases.
Revenues in the LaSalle segment increased 39.3% (in USD) year over year to $160.6 million. The rise in revenues was due to higher incentive fees on asset dispositions in Asia Pacific. It was partially offset by a decline in advisory fees reflecting reduced fees in Europe as a result of structural changes to a lower-margin business and declines in assets under management (AUM) over the last 12 months.
As of Dec. 31, 2024, LaSalle had $88.8 billion of AUM, down from $89 billion as of Dec. 31, 2023. This was due to modest valuation declines, as well as net dispositions and withdrawals.
However, the JLL Technologies segment reported revenues of $59.3 million, declining 9.5% (in USD) from the prior-year quarter levels. The fall was due to lower contract signings in technology solutions over the last 12 months, partially offset by modest growth in software services.
JLL’s Balance Sheet
JLL exited the fourth quarter of 2024 with cash and cash equivalents of $416.3 million, down from $437.8 million at the end of the third quarter.
As of Dec. 31, 2024, the net leverage ratio was 0.7, down from 1.7 as of Sept. 31, 2024. The corporate liquidity was $3.62 billion as of the fourth quarter's end, up from $3.39 billion as of the third quarter’s end.
JLL currently carries a Zacks Rank #3 (Hold). 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 Quote
Performance of Other Broader Real Estate Market Stocks
CBRE Group Inc. CBRE reported fourth-quarter 2024 core EPS of $2.32, ahead of the Zacks Consensus Estimate of $2.21. The reported figure also increased 68.1% year over year.
Results reflected revenue growth in its resilient lines of business. The quarter marked the best quarter ever for core earnings and free cash flow with broad-based strength across its Advisory Services, Global Workplace Solutions and Real Estate Investments business segments. CBRE currently carries a Zacks Rank #3.
Iron Mountain Incorporated IRM reported fourth-quarter adjusted funds from operations per share of $1.24, beating the Zacks Consensus Estimate of $1.20. This figure jumped 11.7% year over year.
Results reflected solid performances in the storage and service segments and the data center business. However, higher interest expenses in the quarter undermined the performance to an extent. The company issued its outlook for 2025 and raised its dividend by 10.6% from the prior payment. IRM currently carries a Zacks Rank #3.
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