Jones Lang LaSalle Incorporated JLL has lately been on an acquisition spree. Recently, the company acquired the Rosebank, Johannesburg-based Trussard Property Consultants to boost its South African business. Moreover, this Chicago-based real estate operations firm is set to ink a deal for acquiring Big Red Rooster to expand its Project and Development Services (“PDS”) and Retail businesses.
The addition of Trussard Property Consultants, a real estate leasing and investment agency business, is expected to suitably complement JLL’s portfolio and help the latter meet broader strategic client requirements. Again, for Trussard, association with an international player like JLL will enable it to offer wide-ranging property-specific services to clients.
On the other hand, the acquisition of Big Red Rooster, a provider of design and brand strategy solutions to top retailers and consumer brands, is consistent with JLL’s disciplined growth plans. The deal would also support JLL’s project and development strategies, adding to its retail multi-site and brokerage services capabilities.
In fact, of late, JLL has been making a series of acquisitions. During the first nine months of 2015, the company completed as many as 12 acquisitions in Australia, Canada, England, Germany, Japan, Poland, Sweden, Turkey and the U.S. Moreover, during its third-quarter earnings release in late October, JLL revealed that it has either announced or executed 15 acquisitions in 2015 alone. Also, since the beginning of 2014, the company had closed 25 buyouts.
Just prior to this, JLL revealed deals to acquire Corrigo Incorporated, a leading cloud-based facility and service management solutions provider; CIB, LLC, a leading provider of brokerage services; and CIB Management, LLC, a popular commercial property manager. Other recent acquisitions include those of Avenue9, Martin Potts & Associates, Guardian Property Asset Management, and Oak Grove Commercial Mortgage, LLC.
Going forward, we believe such strategic acquisitions would help the company leverage an improving market environment. Importantly, aided by robust growth in fee revenues, JLL reported third-quarter 2015 earnings surprise of 29.23%. JLL currently carries a Zacks Rank #2 (Buy). Moreover, the stock has a Zacks Growth Style Score of ‘A’, reflecting its solid growth potential. According to our style score system, a stock with a favorable Zacks Rank and Zacks Growth Style Score of ‘A’ (or ‘B’) is highly desirable.
Other top-ranked stocks in the real estate space include Henderson Land Development Co. Ltd. HLDCY, CBRE Group Inc. CBG and Reis, Inc. REIS. All three stocks hold the same Zacks Rank as JLL.
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