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

Feb 03, 2016 • 09:00 am ET

Previous

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

Share
Close

Loading Event

Loading Transcript

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.

(Forward-Looking Cautionary Statements)

Now I will turn the call to Colin Dyer, CEO, 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 CFO, joins us on today's call as usual and we also welcome Grace Chang our new Managing Director of Finance and IR. 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 principal 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 $1.7 billion for the quarter, 14% above the fourth quarter of 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 after a $0.42 negative currency impact. For the year, adjusted net income totaled $455 million, or $10.01 per share, 26% higher than in 2014, again after a full year (ph) currency impact of $0.87.

We continued 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 taken 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 have posted in the Investor Relations section of JLL.com.

Slide 2 shows 2015 activity in capital markets and leasing. Full year investment market volumes were $704 billion marginally below 2014 levels in US dollars. However, at constant currency rates investment volumes increased to $765 billion, 8% ahead of 2014. Fourth quarter volumes were flat in local currency, but down 8% in dollars from the record final quarter of 2014.

The American market also reached a record $314 billion, 4% higher than 2014. Some momentum was lost in Q4, however, down 9% on the prior year. EMEA markets transacted $267 billion, which was 4% below 2014, but 14% higher if you