We maintain our Neutral rating on Jones Lang LaSalle, Inc. (JLL), a leading real estate investment trust (REIT), as we anticipate it to perform in line with the broader market.
Chicago-based Jones Lang is a leading full-service real estate firm that provides corporate, financial, and investment management services to corporations and other real estate owners, users, and investors worldwide. A broad real estate product and service range, and extensive knowledge of domestic and international real estate markets enable the company to operate as a single-source provider of real estate solutions.
With about 185 corporate offices across the globe, Jones Lang operates in more than 1,000 locations in 60 countries. Jones Lang is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the largest and most diverse in the real estate sector with nearly $43 billion of assets under management.
Jones Lang continually invests in industry-leading research to identify emerging trends and anticipate future conditions to respond to the shifting market and business trends of its clients. This enables the company to develop new investment products and services tailored to the specific investment goals and objectives of its clients, thereby maintaining profitable long-term relationships during challenging market conditions.
However, given its international presence, Jones Lang often faces unfavorable foreign currency movements, impacting its top-line growth. The Real Estate Services business segment is also cyclical in nature and experiences fluctuations in revenue and operating margins. This in turn could negatively affect the long-term earnings expectations of the company.
Jones Lang presently has a Zacks #3 Rank that translates into a short-term ‘Hold’ rating, indicating that the stock is expected to perform in line with the overall U.S. equity market for the next 1–3 months. We also have a ‘Neutral’ recommendation and a Zacks #3 Rank for Grubb & Ellis Company (GBE), a competitor of Jones Lang.
GRUBB & ELLIS (GBE): Free Stock Analysis Report
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