Jones Lang LaSalle 3Q16 Earnings Call Notes

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Jones Lang LaSalle (JLL) Q3 2016 Results
Christian Ulbrich

New CEO

“First, I’m honored to have been asked to follow Colin Dyer and lead this great company. Colin served us as an exceptional leader throughout his 12 years as our CEO. He helped create a truly global company, led and nurtured our 2020 Strategy for focused growth and championed priorities ranging from data and technology to diversity and sustainability.”

Expect 2017 to rebound closer to the $700 billion level we saw in 2014, 2015

“In 2017, we anticipate that volumes will rebound closer to the $700 billion level we saw in 2014 and 2015. Our current projection for full year leasing volume shows them completing 2016 at about 430 million square feet, 5% lower than last year. In 2017, we see leasing volumes at level similar to this year. These market projections indicate continued robust market conditions for our transaction business into 2017.”

There’s concern from Europe about investing in the UK, but not as much from Asian investors

“Mitch, it’s a mixed picture. From a continental European perspective, there’s tremendous concern around what will happen to the UK. And as you know, I think the leadership in the – political leadership in the UK doesn’t really know themselves what they are aiming for, and they are still trying to get their picture together. The further you move away from the UK, and particularly to Asia, the Chinese, the Malaysians, the Indonesians who have been investing heavily in the UK, they are not too concerned about the UK breaking away from the EU. So their interest is still very, very strong, and I would put the Americas somewhere in the middle of the two with regards to their interest.”

Slightly lower interest with more emphasis on Asian investors money

“I think it’s fair to say that the overall interest is slightly less than we have seen in previous quarters, and that has been a trend during this year. We still have strong enough interest to get to – as we have mentioned, to new record levels, low yields in many places around the world, but the list of interest is slightly shorter. And as I mentioned before, you have, I would say, an even greater importance towards the Asian investors on big deals out there than we had before, particularly when we talk about UK investment. But also in some other places they play a more important role than they have played before.”

We’re in a fully healthy environment even if it’s not a record

“I mean, overall, we will see, going forward, an environment which I would call more of the same. We are in a fully healthy environment for the type of services we are delivering. Even if it’s not a record year from volumes in most markets around the globe, it is still on a very high level, and therefore I think we are pretty confident on our ability to continue to drive growth and to take market share.”