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JLL reported a 44% increase in third-quarter net income Wednesday and said it intends to launch a new $500 million accelerated share repurchase, as growth in leasing and capital-markets work lifted the commercial-property services company.
Net income attributable to common shareholders rose to $319.8 million from $222.8 million a year earlier. Revenue increased 12% to $7.281 billion, while diluted earnings per share rose 49% to $6.85 from $4.61, according to JLL’s third-quarter results release.
Adjusted diluted earnings increased 50% to $6.76 a share from $4.50. Adjusted EBITDA rose 33% to $460.2 million. Both are non-GAAP measures and should be read alongside reported results.
Buyback planned, not completed
The company said it intended to execute the $500 million accelerated share repurchase imminently, which would bring full-year repurchases to more than $1 billion. The new transaction was described as planned, not completed.
Chief Executive Christian Ulbrich said JLL had raised its full-year adjusted earnings-per-share target range, with 37% growth at the midpoint. He cited the strength of its business pipeline and operating trends.
“JLL’s record third quarter at the top and bottom line reflected our track record of converting growth into margin-accretive profit,” Ulbrich said.
Leasing growth accelerates
Leasing Advisory revenue grew 27% in local currency, led by U.S. industrial, office and data-center activity. Capital Markets Services revenue rose 21% in local currency, with growth across sectors and regions.
Real Estate Management Services revenue increased 9% in local currency. Within that business, Workplace Management grew 10% and Project Management grew 14%.
The company reported 22% local-currency growth across its Advisory revenue grouping and 9% growth in its Resilient revenue grouping. Local-currency comparisons adjust for exchange-rate movements and are non-GAAP measures.
Quarterly cash flow edges lower
Cash from operating activities was $609.7 million, down 1% from $617.1 million a year earlier. Free cash flow, a non-GAAP measure, fell 2% to $556 million from $567.6 million.
For the first nine months, operating cash flow rose to $342.8 million from $182.3 million. Net income attributable to common shareholders increased to $694.4 million from $390.4 million, while revenue grew 11% to $20.596 billion.
JBizNews Desk | Chicago
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