Jones Lang LaSalle 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Capital markets and leasing: Americas doing better than Asia. China down 33% ytd

“The regional divisions we’ve seen throughout 2014 continued, with the Americas and EMEA outperforming Asia Pacific. As you’ll see on the slide, overall transactional volumes in Asia Pacific were marginally higher than in the third quarter of 2013, but below 2013 levels on a year-to-date basis. There was a significant divergence within this with Australia up 23% and China down 33% year-to-date.”

Continued momentum in leasing

“While gross absorption declined in the Americas and EMEA in the quarter, the sense in the marketplace is one of continued momentum. Many U.S. tenants renewed and extended leases earlier in the cycle to lock-in lower rents”

Outlook remains strong

“For the fourth quarter of 2014, our outlook remains positive. Our pipelines are strong, as Christie mentioned, in what is traditionally our busiest quarter. And our business strategy is delivering superior results across the range of our operations.”

Retail just 5% of the business

“our retail activity, including management leasing and capital markets work, in the U.S, is — it’s less than 5% of our U.S. revenues, David. What generally happens when you have bankruptcies is that the properties get recycled, obviously, sometimes back into retail use or if they’re particularly off pitch sites then they’ll be converted into — redeveloped or converted into other uses. We haven’t had a huge amount of historical experience with them, but it’s not a huge part of our business either.”

$10 of bids for every $1 of purchase

“we’ve generally got a rule of thumb, which is that for the final dollar that ends up making the purchase, there’s sort of $10 have come in and they bid at a credible level. So the weight of money that we’re currently seeing, making offers for particular high-quality assets, is still very strong.”

Pipelines are full and don’t show any sign of slowing down

“When you look at the markets themselves, we can see pipelines, as we mentioned, which are full. Those generally give us an indication 3- to 6-months ahead and there’s no slacking up in that picture either. And then after that, the general sense we have, or our forecasters have, of continued, steady, economic recovery with, as I mentioned in my comments, forecast GDP growth next year globally which is up further on this year. So all those factors together give us confidence in the numbers that we have forecast.”