Jones Lang LaSalle 2Q16 Earnings Call Notes

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Jones Lang LaSalle’s (JLL) CEO Colin Dyer on Q2 2016 Results

No Brexit impact outside of UK

“We anticipate that capital markets activity in the UK will rebound once buyers and sellers can agree on pricing that could happen relatively quickly. Leasing recovery may take longer since corporate occupiers who hesitate to make occupancy decisions until the politics of Brexit voting clarified. Such things as passporting, employee rights to work outside of their native countries and so forth. As I said that may take some time.”

” we have no indications that Brexit has impacted markets outside of the UK – not in Europe, the Americas, nor Asia Pacific.”

CRE has weathered year’s issues well despite more cautious tone from investors and occupants

“Looking globally across our markets, the world’s leading commercial real estate markets have weathered the years political and economic issues quite well even as investors and corporate occupiers strike a more cautious tone. We see no catalyst for a breakdown in fundamentals indeed we anticipate the slow economic growth environment continue to contribute to an extended cycle and a flight to quality in which gateway markets and prime properties can be expected to continue to outperform.”

Cycle seems elongated

“I’ve said in my remarks that interestingly this cycle seems to be elongated beyond where one might have expected. The interest rate – so take a few of the factors that you watch. Interest rates have not come off the floor that often helps to bring a cycle to a close. There is plenty of confidence, but quite sensible equity in the market.”

M&A markets are open

“we, first of all, are seeing M&A opportunities right across our business. As I said earlier on this is a point in a cycle where sellers are happy to sell because they believe pricing is fair, buyers such as ourselves have cash and confidence. So it’s a liquid market currently across the world. There are no regions where you can say that there is no M&A to be done.”

Christian Ulbrich

Increased caution will certainly affect full year volumes

“However, increased caution among those investors and corporate occupiers will certainly affect full-year volumes. We now see global market investment sales down by 10% to 15% compared with 2015 to about $600 billion. But even at this level, that translates to one of the most active years since we started recording global transactional activity in 2003.”