Jones Lang LaSalle Incorporated (NYSE:JLL) Q4 2015 Earnings Conference Call - Preliminary Transcript

Feb 03, 2016 • 09:00 am ET

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Jones Lang LaSalle Incorporated (NYSE:JLL) Q4 2015 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Welcome to the Fourth Quarter 2015 Earnings Conference Call for Jones Lang LaSalle Incorporated. As a reminder, today's call is being recorded. A transcript will be posted in the Investor Relations section at jll.com.

Any statements made about future results and performance or about plans, expectations and objectives are forward-looking statements. Actual results and performance may differ from those included in the forward-looking statements as a result of factors discussed in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2014 and in our other reports filed with the SEC. The Company disclaims any undertaking to publicly update or revise any forward-looking statements.

Now we'll turn to Colin Dyer, Chief Executive Officer for opening remarks.

Executive
Colin Dyer

Thank you. Hello everybody, and welcome to this review of our 2015 results for both the fourth quarter and the full year. Christie Kelly, our Chief Financial Officer joins today's call as usual, and we also welcome Grace Chang, our new Managing Director of Corporate Finance and Investor Relations.

Grace comes to JLL from 20 years of US and international experience at GE, where she held increasingly senior finance and real estate positions. She will lead our global corporate finance initiatives and serve as principle contact between JLL and the institutional investor community. If you have any difficult questions, please ask Grace.

Christie will review our financial performance in detail in a few minutes. But let me begin by summarizing our results. An excellent fourth quarter helped us complete another record year at JLL and LaSalle. Fee revenue totaled $1.l7 billion for the quarter, 14% above the fourth quarter at 2014 in local currency terms. For the year fee revenue increased 17% to $5.2 billion. Adjusted net income was $206 million for the quarter or $4.53 a share up 14% from last year and that's after a 42% negative currency impact.

For the year, adjusted net income totaled $455 million or $10.01 per share, 26% higher than in 2014 a gain after a full year currency impact of $0.87. We continue to grow through acquisition activity, closing or announcing 24 transactions during the year. And our investment grade balance sheet will allow us to continue to grow through additional acquisitions and significant technology investments. So thinking as a whole, we had a very strong quarter and year with broad-based double digit fee revenue growth across all of our service lines for the year.

LaSalle investment management produced annual revenue growth of 16% in local currency and also generated significant equity earnings in 2015. To put the results in the context of market and economic conditions in 2015, the global economy continued to grow at 3%. Our own real estate markets all grew in local currency terms. For the detail please see the slides that we posted in the investor relation section of jll.com.

Slide 2 shows 2015 activity in capital markets and leasing. Full year investment market volumes were $704 billion, marginally below 214 levels in US dollars. However, at constant